Investigating the Role of Youth in Gender Equitable and Inclusive Trade

Young women and men play critical roles in trade, as entrepreneurs, skilled workers, cross-border traders, and consumers, yet face structural and capacity barriers to participating in trade. This paper investigates the participation of young women and men in trade with a focus on their entrepreneurial and employee roles. It considers the challenges faced by small and medium-sized enterprises (SMEs), which youth are more likely to own or run. In the absence of age-disaggregated data, the authors use the World Bank Enterprise Surveys to assess the characteristics and the barriers faced by SMEs engaged in global value chains. This is complemented by literature and qualitative evidence that can be applied to the experience of youth. The paper then investigates the situation of youth in employment by considering the gap in skilled labour faced by trading firms that can be addressed by youth, with a particular focus on digital skills. A gender mainstreaming approach is applied throughout to assess the differences in the experiences of young women and men. The analysis then considers successful policy, private sector, and partner interventions to address these gaps and highlights the newer trend of integrating youth considerations in trade agreements. Findings suggest that the primary challenge faced by youth-owned or -led smaller trading firms is access to finance and that greater integration in global value chains allows SMEs to overcome barriers related to factors of production. Trading firms may provide more stable and skilled employment for young women and increased opportunities for youth if successful policies and programmes to address a labour-skills mismatch are scaled. Youth participation in leadership and decision-making can address sustainability and impact gaps through a holistic approach involving capacity building and mentorship. Existing experience and evidence show initial successes and provide insight into approaches stakeholders can take at the level of trade agreements, policy, and implementation to ensure young women and men fully benefit from trade and trade outcomes are enhanced as a result. The paper ultimately argues that policies and programmes to encourage and ensure the full participation of youth in trade in all their roles can address market gaps and enhance trade.