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1.15 Building an employment agenda: Working Out of Poverty

Written by: International Labour Organization

Article Overview: Employment, and the promotion of enterprise that creates it, remains the most effective route to poverty eradication. The objective of full employment is essential – an issue on which the European Union has given political leadership. Most policy prescriptions, however, do not view job creation as an explicit objective of economic and social policies, but rather as a hopedfor result of sound macroeconomic policies. At the ILO, we believe that sound macroeconomic policies are essential for desired growth, but such growth must be employment-intensive to effectively reduce poverty. While the main challenge remains at the national level, development cooperation has a role to play. Donor countries and institutions, especially international financial institutions, should build this in as an integral part of their vision.

1.15 Building an employment agenda: Working Out of Poverty

Employment, and the promotion of enterprise that creates it, remains
the most effective route to poverty eradication. The objective of full employment
is essential – an issue on which the European Union has given political
leadership. Most policy prescriptions, however, do not view job creation as
an explicit objective of economic and social policies, but rather as a hopedfor
result of sound macroeconomic policies. At the ILO, we believe that
sound macroeconomic policies are essential for desired growth, but such
growth must be employment-intensive to effectively reduce poverty. While
the main challenge remains at the national level, development cooperation
has a role to play. Donor countries and institutions, especially international
financial institutions, should build this in as an integral part of their vision.

It is important for labour ministries and employers’ and workers’ organizations
to be actively involved in national and international poverty reduction
strategies. Our challenge is to work together to reinforce tripartism
in the negotiations with bilateral donors and with the multilateral institutions
at the national level. This will advance the battle to end poverty on several
fronts. First, it will ensure that essential elements for the reduction of
poverty are not overlooked – such as a high rate of employment generation,
and extension of social protection to the poor. Second, the strengthening of fundamental principles and rights at work and social dialogue will advance
democratic governance and the participatory nature of the poverty
reduction process. Third, the strengthening of these rights, particularly for
women, will also enhance the bargaining position of working people living in
poverty and promote greater gender equity. Finally, it will create the
enabling environment for entrepreneurship, investment and enterprise creation,
which is at the root of more opportunities for employment and sustainable
livelihoods.

Related Articles
  1.4 Our experience: Working Out of Poverty
  1.17 Building partnerships: Working Out of Poverty
  1.5 Skills development for sustainable livelihoods: Working Out of Poverty
  Preface: Working Out of Poverty
  The agenda

Article Tags: bilateral donors, democratic governance, development cooperation, donor countries, employment generation, enterprise creation, explicit objective, full employment, international financial institutions, international poverty, multilateral institutions, participatory nature, policy prescriptions, political leadership, poverty eradication, poverty reduction strategies, social dialogue, social policies, sound macroeconomic policies, sustainable livelihoods



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