The Global Fairness Initiative (GFI),an international non-profit based inWashington D.C. is leading efforts toextend labor rights and social safetynets to vulnerable workers, whilesimultaneously creating incentivesfor formalizing businesses andcreating economic growth.

Project PartnersInstituto Nicaragüensede EstudiosHumanísticos (INEH),Nicara

Poliarquía Consultores,Argentina

Just Governance Group

Labor rights and strong workforce participation is one of thefundamental pillars to sustainable economic development.Furthermore, as poor informal sector workers represent nearly 80%of developing populations, inclusive economic models thatintegrate the informal and formal sector are needed to generategrowth and reduce poverty. GFI’s program “Promoting InformalLabor Rights (PILAR) is building this pillar in Guatemala andNicaragua by engaging informal sector workers, governments,employers, and civil society representatives in order to developpolicies and actions that that encourage formalization and extendlabor rights to workers.

Public Opinion and the Debate on Informality

As part of the PILAR program, GFI conducted a national publicopinion survey on the obstacles and barriers to formalization, andopportunities to extend labor rights to the informal sector. Surveysand focus group discussions targeted informal and formal workers’organizations, private sector representatives, public officials,academics, and influential citizens. By gaining a multi-stakeholderperspective on the informal sector situation in each country, GFI isbetter targeting policy changes, designing and conducting trainings,as well as promoting public-private partnerships that help createeconomic opportunities for marginalized workers.

Improving Transparency and Access to Information

Well developed and effectively implemented Government programs start with good data. Obviousthough this may sound, it is often one of the most overlook and underfunded aspects of effectivepolicy creation and implementation in many economies. Whether targeting trade or pro-pooreconomic policies, Governments must begin with the right information and analysis of existingconditions in order to deliver effective programs.

PILAR (Promoting Informal Labor Rights)local solutions for a global economy O

ur Work

“I have been working since I was 14 to make enoughmoney for my little brother to attend school”

says a young woman who works as a housemaid in Chimaltenango,Guatemala. Domestic home-workers, primarily adolescent girls represent asignificant percentage of Guatemala’s informal sector workforce. Throughthe PILAR program, GFI is working with these young women to help themexercise their rights to decent wages and a safe working environment.

Confronting Informality, Creating Opportunity

Did you know?• More than 65% of Central American

workers are in the informal sector?

• The majority of informal sector workers arewomen, children, and indigenous

• 67% of informal workers in Guatemalawould like to be enrolled in social securityand want the opportunity to formalize theirbusinesses

• Most informal workers do not know how toregister their businesses

• 76% of Guatemalan workers surveyed didnot know the minimum wage

• 72% of workers in Nicaragua felt that thelack of respect for labor rights and socialsafety nets was a serious problem for thecountry

• Guatemalan and Nicaraguan informalworkers would like to establish fixedlocations to sell their products and haveaccess to childcare services

• Only a third of workers polled in Guatemalawere enrolled in social security but 78%would be willing to pay to be enrolled ifsupport mechanisms were provided

Proper data and statistics create afundamental base for reform and helpdecision-makersunderstand where resourcesare used most effectively and where thegreatest impacts can be achieved. As part ofthe PILAR Program, GFI conducted atechnical assessment of the Guatemalan andNicaraguan Governments’ abilities to collectand provide data on the informal sector.Written in collaboration with Argentinepartner, Poliarquía Consultores, the reportdraws from interviews with members ofgovernment, labor unions, civil society andthe private sector as well as academicresearch and publications from local andinternational organizations. The report drawson international standards to design modulesforgathering, analyzing, and disseminatingdata on the informal sector. In addition,training modules and materials as well ascountry specific action plans have beendeveloped and introduced in capacity buildingworkshops with a broad range of publicofficials in both countries. The ultimate goalof the data assessments are to help Guatemalaand Nicaragua build a strong culture ofstatistical data gathering and analysis acrosssectors and to increase capacity for generatingaccurate and legitimate employmentinformation.

PILAR Goals:• Improve data collection on the informal

sector• Extension of labor rights provisions to

informal workers• New policies that encourage formalization

Public ResponseThe PILAR program andresults of the public opinionsurvey have generatedattention on a national levelin both countries. GFI’sCentral American ProjectDirector appeared on nationalGuatemalantelevision and local reporters in both Guatemala City andManagua have taken to the streets, interviewing informal

workers about theirsituation and discussing theexpansion of theireconomic opportunitieslabor rights and socialsafety nets.

Upcoming Events:Training and capacity building with

informal worker communities

National Roundtable on Findings ofAdministrative Barriers to

Formalization Report

2010 National Summit on theinformal sector in Guatemala City

and Managua