1.18 Building bridges: Working Out of Poverty
1.18 Building bridges: Working Out of Poverty
back alleys of the marketplace, the informal economy, the rural subsistence
economy and the care economy.This presents a major challenge.
As many as 4 billion people – two-thirds of the world’s population – live
largely outside formal legal systems, mainly in developing and transition
countries where poverty is most severe. The most fundamental elements of
a market economy, such as respect for contracts and recognition of titles to
property, are often not available to wage workers, self-employed workers or
micro and small businesses in this huge and growing informal economy.
How can we make the most of improved efforts to reduce poverty if
only the tip of the iceberg – the formal economy – is under the influence of
public policy? Likewise, global markets do not respond to the needs of the
poor because with only US$2 a day, they have little influence on markets.
We need to develop appropriate bridging mechanisms, rules and systems.
Decent work is a common framework for a progressive process of upgrading.
The main point is not to impose unattainable standards or
unrealistic goals, but to recognize that decent work has a moving threshold.
It is possible to respect basic standards at all levels of development. Societies
can agree on new goals as circumstances change and put in place a process
to reach them over time. Above all, this calls for new thinking.
A new approach must be based on the reality that most people live and
work in the informal economy not by choice but out of a need to survive.
Wage workers, own-account workers and small businesses in the informal
economy face similar problems of insecurity and vulnerability. Unable to
find other jobs or start businesses in the formal economy, they lack protection,
rights and representation, and often remain trapped in poverty. Especially
in circumstances of high unemployment, underemployment and
poverty where opportunities in the formal economy are scarce, the informal
economy is the only source of income-generating work. Although many
business people operating in the informal economy display extraordinary
creativity, dynamism and innovation, they rarely have the means to cross the
threshold into formal recognition and obtain the security it can provide for
further investment and the creation of more and better jobs.
A sound poverty reduction strategy must place great emphasis on the
participation of working people living in poverty in policies to improve their
lives. The ILO has always stood for the transformative power of organizing:
whether it is used to organize governments, employers or workers, the freedom
for people to band together and develop common strategies and solutions
is fundamental to social progress. How can our tripartite experience be
helpful to facilitate organizing to end poverty in the rural and urban informal
economy?
In addition, just as the property assets of the poorest are too often untitled
and therefore not “bankable” or able to be used as collateral for loans
at regular banks, the knowledge and skills of the poor are not recognized in
the formal market or educational systems. What are the best ways to certify
or accredit the skills of people in the informal economy?
118 Building bridges Working Out of Poverty - To learn more about this author, visit International Labour Organization's Website.
Like this article? Share it with your friends
The majority of people in developing countries live and work in the
back alleys of the marketplace, the informal economy, the rural subsistence
economy and the care economy.This presents a major challenge.
As many as 4 billion people – two-thirds of the world’s population – live
largely outside formal legal systems, mainly in developing and transition
countries where poverty is most severe. The most fundamental elements of
a market economy, such as respect for contracts and recognition of titles to
property, are often not available to wage workers, self-employed workers or
micro and small businesses in this huge and growing informal economy.
How can we make the most of improved efforts to reduce poverty if
only the tip of the iceberg – the formal economy – is under the influence of
public policy? Likewise, global markets do not respond to the needs of the
poor because with only US$2 a day, they have little influence on markets.
We need to develop appropriate bridging mechanisms, rules and systems.
Decent work is a common framework for a progressive process of upgrading.
The main point is not to impose unattainable standards or
unrealistic goals, but to recognize that decent work has a moving threshold.
It is possible to respect basic standards at all levels of development. Societies
can agree on new goals as circumstances change and put in place a process
to reach them over time. Above all, this calls for new thinking.
A new approach must be based on the reality that most people live and
work in the informal economy not by choice but out of a need to survive.
Wage workers, own-account workers and small businesses in the informal
economy face similar problems of insecurity and vulnerability. Unable to
find other jobs or start businesses in the formal economy, they lack protection,
rights and representation, and often remain trapped in poverty. Especially
in circumstances of high unemployment, underemployment and
poverty where opportunities in the formal economy are scarce, the informal
economy is the only source of income-generating work. Although many
business people operating in the informal economy display extraordinary
creativity, dynamism and innovation, they rarely have the means to cross the
threshold into formal recognition and obtain the security it can provide for
further investment and the creation of more and better jobs.
A sound poverty reduction strategy must place great emphasis on the
participation of working people living in poverty in policies to improve their
lives. The ILO has always stood for the transformative power of organizing:
whether it is used to organize governments, employers or workers, the freedom
for people to band together and develop common strategies and solutions
is fundamental to social progress. How can our tripartite experience be
helpful to facilitate organizing to end poverty in the rural and urban informal
economy?
In addition, just as the property assets of the poorest are too often untitled
and therefore not “bankable” or able to be used as collateral for loans
at regular banks, the knowledge and skills of the poor are not recognized in
the formal market or educational systems. What are the best ways to certify
or accredit the skills of people in the informal economy?
118 Building bridges Working Out of Poverty - To learn more about this author, visit International Labour Organization's Website.
Like this article? Share it with your friends
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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