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.
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