Post on 21-Jan-2016
transcript
SOCIAL PROTECTION FOR THE INFORMAL ECONOMY
Koen Rossel-Cambier, International Training Centre
of the ILO
Group work
1. What are the main characteristics of the informal economy?
2. What are the barriers to entry into the ‘formal’ economic and social protection system?
3. What are the respective roles of governmental and non/governmental organisations in addressing these situations?
What seems to be the problem?
• Poverty> the working poor• Underemployment• Disrespect for fundamental
rights• Lack of social protection• Child labour• Occupational safety and
health hazards• Low quality products• Saturated markets• Misallocation of resources• ………….
What is the ‘Informal Economy’
Defining characteristic: not recognized, registered, regulated or protected under the law
Many different kinds of informal jobs and informal enterprises in urban and rural areas
‘Sector’ suggests specific industry group or economic activity
Increasing informalization of production and employment relationships
Differentiated from the criminal or illegal economy: majority produce legal goods and services
What the informal economy is not
• A marginal phenomenon• A transient phenomenon• Completely unorganised, unstructured,
unregulated• A men’s world only• Mere petty traders, parking boys and prostitutes• Mostly tax evaders and others disrespecting the
law• The same as the underground or illegal economy• Mainly illiterates and always income poor
Informal economy workers: Who are they?
• Women and men– owner/employers of
micro/enterprises• Paid workers
• Apprentices
• Unpaid family workers
– Own account workers
Informal economy enterprises
• Fixed location or not• Covered premises or
open air• Independent or not• Long standing or just
starting• Traditional or modern
Why is the informal economy growing
Legal and institutional frameworks inappropriate, constraining or ineffective, lack of good governance
Global employment deficit: not enough jobs Failure of macro-economic policies Increasing poverty and feminization of poverty Demographic factors, including migration and the
impact of HIV/AIDS Benefits of globalization not inclusive and fair Flexible specialization and global chains
What may be the solution?
• Ignoring the informal economy
What may be the solution?
• Acting against it
What may be the solution?
• Forbidding it
How to reduce decent work deficits in the
Informal Economy
In the SHORT AND MEDIUM TERM, to promote the conducive legal and policy frameworks to upgrade jobs and enhance the capacity of workers and employers to move from informal to formal decent work
In the LONGER TERM, to create enough jobs that are protected, recognized and decent for all workers
In the IMMEDIATE TERM, to ensure that those in the informal economy are recognized and protected under labour law and have improved rights, social protection, organization and representation
Enhancing Rights in the Informal Economy
All those who work have rights at work irrespective of where they work
ILO Declaration and labour standards provide solid international basis for application to the IE
Rights deficit due to how standards are expressed and enforced through national law and practice. Therefore: Improve labour legislationStrengthen labour administration and enforce labour rightsPromote legal literacy, especially for women workers Improve regulatory framework for businesses
Improving Social Protection
Statutory social security (preventive and protective) provisions: social insurance, universal benefits and social assistance programmes
Decentralized schemes of social protection Linking decentralized schemes with other social
protection systems for equity and efficiency reasons Improving occupational safety and health, with attention
to hazardous occupations and vulnerable groups Strengthening HIV/AIDS services
Organization and Representation in the
Informal Economy Framework of law and governance protecting freedom
of association and right to organize and bargain collectively: fundamental right and enabling right
Strengthening organization and representation:The role of national and local governmentsThe role of trade unionsThe role of employers’ organizationsThe role of cooperativesThe role of other social actors
Formation and strengthening of strategic alliances
Meeting the global demand for decent employment
Not enough jobs in the formal economy, hence interest in the employment creation potential of the informal economy
1991 ILC Discussion on the Informal Sector:“there can be no question of the ILO helping to ‘promote’ or ‘develop’ an informal sector as a convenient, low-cost way of creating employment unless there is at the same time an equal determination to eliminate progressively the worst aspects of exploitation and inhuman working conditions in the sector”.
Meeting the global demand for decent employment Promoting employability and productivity and upgrading
employment through education, training, skills development Securing property rights Quality job creation through enterprise development ILO Recommendation concerning General Conditions to
Stimulate Job Creation in SMEs, 1998 (No.189): Creation of an enabling policy and legal framework Development of enterprise culture Development of effective service infrastructure Representation and organization Improving market opportunities and access Sending the message that job quality is good business for SMEs.
Thanks!