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4.6 Conclusions: Working Out of Poverty

 
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4.6 Conclusions: Working Out of Poverty
   

Comparative studies of countries that have achieved sustainable propoor growth during the recent period of rapid global economic integration show that the quality of public and private institutions matters. By supporting the innovative potential of markets at the same time as assuring a reasonable degree of social security to people, institutional strength is increasingly recognized as a determining factor for growth and the capacity to rebound from unexpected shocks. Research has shown that countries that have benefited most from integration into the world economy are those that have complementary institutions in place which are able to bring about the social bargains required to maintain or restore macroeconomic stability.

This chapter has argued that improving the governance of labour markets is central to increasing social cohesion and sustainable growth, and thus the reduction of poverty. This is particularly important to the design of strategies to integrate the informal economy into the legal and institutional framework for the economy as a whole. The values that inspire the work of the ILO, expressed in its Constitution and the ILO Declaration on Fundamental Principles and Rights at Work, are a strong foundation for countries to build institutional frameworks for the governance of labour markets that meet the twin imperatives of fairness and efficiency.

Focusing on the goal of decent work for all provides a constructive perspective for examining how rights at work and the institutions of informal and formal labour markets relate to the achievement of employment creation, poverty reduction and competitiveness in a global economy. The effectiveness of mechanisms for the governance of the labour market is critical to ensuring that integration into global markets enlarges opportunities for decent work and addresses potentially disruptive adjustments to employment.

Social dialogue can make an important contribution to these goals. Furthermore, by raising the rate of productivity growth, well-functioning labour market institutions create the conditions for faster sustainable growth without endangering macroeconomic stability.

Participation and empowerment are increasingly recognized as vital to poverty reduction. Trade unions, employers’ organizations and government departments, public agencies and local authorities, as well as community organizations, play a central role in creating an environment in which increasing opportunities for decent work lead to social inclusion and improved livelihoods.

Sustainable growth requires coordinated action from the local to the global level to ensure that individual and collective initiative is encouraged.

In practical terms this comes down to social mobilization and organization.

The shared experience of working together means that, for many people, the focal point for building the institutions for sustainable development is the workplace – be it the field, the street, the home, a mine, a factory or an office. Local organizations of employers and workers hold the potential to group together by occupation and industry and form cohesive broadbased national movements that in turn link to similar movements in other countries. The community of work, brought together internationally in the ILO, is the apex of a pyramid of organizations built around the need to cooperate together to make full use of societies’ human resources productively and thus improve conditions of work and life. This rich network is a largely untapped resource that must be harnessed to the multilateral drive for poverty reduction. A strong commitment by the ILO’s tripartite constituents can make an enormous difference for those women and men striving to find opportunities to work out of poverty. To learn more about this author, visit International Labour Organization's Website.

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International Labour Organization
(Visit International's Website)
As the world's only tripartite multilateral agency, the ILO is dedicated to bringing decent work and livelihoods, job-related security and better living standards to the people of both poor and rich countries. It helps to attain those goals by promoting rights at work, encouraging opportunities for decent employment, enhancing social protection and strengthening dialogue on work-related issues. The ILO is the international meeting place for the world of work. We are the experts on work and employment and particularly on the critical role that these issues play in bringing about economic development and progress. At the heart of our mission is helping countries build the institutions that are the bulwarks of democracy and to help them become accountable to the people. The ILO formulates international labour standards in the form of Conventions and Recommendations setting minimum standards of basic labour rights: freedom of association, the right to organize, collective bargaining, abolition of forced labour, equality of opportunity and treatment and other standards addressing conditions across the entire spectrum of work-related issues.