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4.6 Conclusions: Working Out of Poverty

Guest post by: International Labour Organization

Article Overview: Institution building for decent work and poverty reduction

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.

Related Articles
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  Recommendations for future research - Factors Impeding the Poverty Reduction Capacity of Micro-credit: Some Field Observations from Malawi and Ethiopia
  6.0 Propositions and conclusion: Enterprise solutions to poverty
  1.19 Building trust: Working Out of Poverty

Article Tags: comparative studies, complementary institutions, employment creation, global economic integration, global economy, ilo declaration, informal economy, institutional framework, institutional frameworks, institutional strength, labour market, labour markets, macroeconomic stability, poverty reduction, private institutions, social cohesion, social dialogue, strong foundation, twin imperatives, world economy



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