nov. 16, 06 international forum on the eradication of poverty session 5 mainstreaming decent work...
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Nov. 16, 06
INTERNATIONAL FORUM ON THE ERADICATION OF POVERTY
SESSION 5
MAINSTREAMING DECENT WORK
INTO POVERTY REDUCTION STRATEGIES
Marty Chen
Harvard University
WIEGO
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PRESENTATION
• WHY should Decent Work be mainstreamed into poverty reduction strategies?
• WHAT does mainstreaming Decent Work into poverty reduction strategies mean?
• HOW can Decent Work be promoted to reduce poverty?
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WHY SHOULD DECENT WORK BE MAINSTREAMED INTO
POVERTY REDUCTION STRATEGIES?
# 1 – Employment – or, more precisely, ‘decent work’ – is a key pathway to poverty reduction.
# 2 – This is because the main – if not only – source of income for the poor is what they earn.
# 3 – Increasing the quality and quantity of employment opportunities is, therefore, the key link between economic growth and poverty reduction.
# 4 – Yet, until recently, most poverty reduction strategies did not include a central focus on employment.
# 5 – In September 2005, “productive employment and decent work” were officially recognized as central objectives in achieving MDGs in a Ministerial Declaration framed by the UN General Assembly
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WHAT DOES MAINSTREAMING DECENT WORK INTO POVERTY REDUCTION
STRATEGIES MEAN?# 1 - Most of the world’s poor – especially in developing countries – are working. But the working poor are not able to work their way out of poverty.
# 2 - ILO estimates suggest that there are some 550 million working poor earning less than US$ 1 per day (ILO 2004)
# 3 - The challenge, therefore, is:• to create more and better employment opportunities • to ensure the poor gain access to these opportunities• to increase the income and reduce the risks of the working poor
# 4 - The vast majority of the working poor earn their living in the informal economy where on average:
• earnings are low • risks are high
# 5 - Poverty reduction is not possible without addressing the root causes of the low incomes and high risks of the working poor.
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HOW SHOULD DECENT WORK BE PROMOTED TO REDUCE POVERTY?
THREE-PART STRATEGY
#1 – generating new and better employment opportunities
#2 – ensuring poor gain access to new employment opportunities
#3 - increasing incomes and reducing risks for the working poor
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HOW SHOULD DECENT WORK BE PROMOTED TO REDUCE POVERTY?
Component # 1
Promotion of employment-intensive growth: i.e., ensuring economic growth produces more and better employment opportunities
This requires increasing demand through macro-economic and sectoral policies (esp. agriculture and manufacturing) and increasing productivity through investments and market access.
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HOW SHOULD DECENT WORK BE PROMOTED TO REDUCE POVERTY?
Component # 2
Increased access and competitiveness of the poor: i.e., ensuring that the poor gain access to new employment opportunities
This requires targeted employment policies as well as skills training and job matching.
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HOW SHOULD DECENT WORK BE PROMOTED TO REDUCE POVERTY?
Component # 3
Increased returns to the working poor: i.e., increasing the incomes and reducing the risks of the working poor
This requires addressing the root causes of low incomes and high risks of the working poor. These include:
• lack of productive assets
• lack of economic rights
• lack of social protection
• lack of organization and representation
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CONCLUSION
Reducing poverty requires promoting Productive Employment and Decent Work
Promoting Decent Work for the poor requires increasing their:• market access• productive assets• economic rights• social protection
Promoting the access, assets, rights, and protection of the working poor requires increasing their:
• visibility: in official data and plans• voice: in policy-making bodies