Ilo decent work agenda and informal economy benefits economics essay
These inherent systemic problems are compounded by the prevailing orthodoxy in macroeconomic policy.
This is part of the more general point that liberalization and structural reform need to be pursued as part of a coherent overall development strategy and not seen as panaceas to be always implemented as broadly and as quickly as possible.
The difficult challenge of finding a better way of meeting these needs has to be faced as an integral part of the reform process.
Decent work and the informal economy
Levels of taxation and business start-up costs will obviously need to be reviewed from this standpoint. The point could be extended to one of whether the current external orientation of economic policies is resulting in the relative neglect of domestic demand as a source of growth and employment creation. For example, a narrow and rigid view on the limits to fiscal deficits rules out consideration of the argument that in a situation of excess capacity it would make sense to run a fiscal deficit to boost aggregate demand and employment. In sub-Saharan Africa, the primary employment problem is not unemployment but underemployment. Differences are more likely to revolve over whether it is feasible to improve over the current situation or over what needs to be done. This is seen as the route to maximizing the national benefits from globalization. Open unemployment rates are surprisingly high in a number of these countries, contradicting the conventional wisdom that unemployment is not an option in developing countries without systems of unemployment insurance. This concern arises out of the possibility that an exclusive focus on achieving export-led growth could result in the neglect of potential sources of domestic growth. Takes stock of the current global labour market situation, assesses the most recent employment developments and forecasts unemployment levels.
If the root problem is excessive market power enjoyed by TNCs and major buyers in these global production systems then issues of anti-competitive behaviour will have to be dealt with.
Identified the role of strong private sector growth in creating jobs, and outlined how jobs that do the most for development can spur a virtuous cycle. As more and more developing countries undertake financial liberalization, including of their capital accounts, they become increasingly exposed to exchange rate instability.
Conversely, it is difficult to raise interest rates during a boom caused by a surge of capital inflows. The latter question arises because from a global perspective not all countries can successfully pursue export-led strategies at the same time.
In this section. The North would benefit from higher growth and employment creation that would diffuse tensions over the perceived export of jobs and reduce protectionist pressures.
Ilo definition of informal sector
This view often pre-empts the serious consideration of promising alternative approaches. This process not only raises their incomes but, accompanied by the right complementary policies, can also contribute to reducing important non-income aspects of poverty. Trends , ILO. It is true that there is implicit recognition of the employment issue in poverty reduction strategies since they typically do deal with programmes such as micro-finance, the development of rural infrastructure, increasing agricultural productivity, and support to micro-enterprises. Doing this would provide an analytical and policy framework for addressing the employment creation in a comprehensive rather than in the current piecemeal fashion. IFC Jobs Study. The root causes of informality include elements related to the economic context, the legal, regulatory and policy frameworks and to some micro level determinants such as low level of education, discrimination, poverty and, as mentioned above, lack of access to economic resources, to property, to financial and other business services and to markets. With such a framework complementarities between individual programmes can be identified and exploited. However, where that balance should lie is ultimately a political decision and not a technocratic one. Similarly, it will also be important to extend basic social protection to workers in the informal economy. Such questions need to be pursued further. Policies tackling structural drivers of informality Extension of social security coverage Improved compliance with the law including with international labour standards Labour market institutions and formalization Organization of informal workers and employer Integrated approaches to formalization DWA — SDG Relationship Informality is addressed directly in just one SDG target, namely SDG 8. As more and more developing countries undertake financial liberalization, including of their capital accounts, they become increasingly exposed to exchange rate instability. Hence one can make a strong claim to include a dynamic social protection system and redistributive measures as an integral part of a set of policies to enhance the employment impact of globalization. The approach should be comprehensive involving the promotion of rights, decent employment, social protection and social dialogue.
This includes demand-side policies such as promoting linkages between informal and informal sector enterprises through sub-contracting and providing marketing support to informal sector firms.
The problem lies mainly with the systemically important countries. Policies tackling structural drivers of informality Extension of social security coverage Improved compliance with the law including with international labour standards Labour market institutions and formalization Organization of informal workers and employer Integrated approaches to formalization DWA — SDG Relationship Informality is addressed directly in just one SDG target, namely SDG 8.
Takes stock of the current global labour market situation, assesses the most recent employment developments and forecasts unemployment levels.
At the same time there is evidence that precarious and low-productivity employment in the informal sector has expanded as a share of total employment.
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