Transcript économie informelle

INFORMAL ECONOMY: CHALLENGES AND
OPPORTUNITIES FOR TRADE UNIONS
TOGO LOMÉ
POINTS TO DISCUSS
1. Does the "informal economy" pose a challenge to
us?
2. Defining the "informal economy"
3. Analysing the current situation around the world
4. Determining the causes of informalization
5. Dealing with the issue of the "informal economy"
6. Developing trade union policies and strategies for
the "informal economy"
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1. Does the "informal economy" pose a
challenge to us? (TRADE UNIONISTS)?
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ILO'S COMMITMENT TO DECENT WORK
Everyone who works has rights at work,
regardless of their place of work and how
they work!
The ILO's commitment and objective is to promote "decent work" throughout the continuum of
the informal sector toward formalization of the economy in a manner oriented towards
development and poverty reduction based on gender equality.
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WHO BENEFITS FROM DECENT WORK?
Group has very limited
possibilities of decent work
This group benefits
from a good level of
decent work
Socially excluded, vulnerable workers and
families
0%
100%
= Priority target of our activities
This group has certain
limits to decent work
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2. DEFINING THE INFORMAL ECONOMY
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HISTORIC OVERVIEW
Concept - "informal sector" - first mentioned in 1972,
when the ILO published a report about Kenya.
During the 1970s and 1980s, the common
interpretation was: "informal sector" would be a
temporary phenomenon, and economic progress
would assist the passage of informal sector
workers to the formal sector.
The dilemma in the 1990s: whether the international
community should promote the informal sector as
a provider of work and income or seek to extend
regulation and social protection to this sector
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DEVELOPMENT DURING THE 1990s
Greater informalization and flexibility of labour and workers
insofar as the process of globalization and information
technology accelerated
The earlier idea turned out to be wrong: the size of the informal
sector grew even though the volume of international
transactions and investments increased considerably;
It has become clear that the informal sector is not a temporary
or residual phenomenon, and that definitive actions must
be taken on a large scale to resolve the problem.
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SO, WHAT HAS HAPPENED?
1970-1980
1990-2000
Formal Sector
Most Economic sectors
are formal
Formal sector jobs
reduced considerably
Some specific activities were considered
to be part of the informal sector
Informal labour has increased
and emerged in all types of
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economic activity
FROM THE INFORMAL SECTOR TO THE
INFORMAL ECONOMY
We have found the term "informal sector" inadequate and even misleading;
Prefer to use "informal economy" to take into account these dynamic, heterogeneous and
complex aspects of a phenomenon which is not a "sector".
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DEFINING THE "INFORMATION ECONOMY"
1. All undeclared economic activities currently that contribute to
the officially calculated (and observed) gross national product
2. These activities which are not recorded in national accounts
3. Income-generating activities that are carried out outside of the
formal regulatory framework
4. Units involved in the production of goods or services whose
main objective is the creation of jobs and income for the
persons concerned
5. Units in unauthorized small enterprises, employers and
employees, as well as independent workers who work for their
own enterprises or family enterprises
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FORMAL DEFINITION OF THE INFORMAL ECONOMY
All economic activities by workers and economic units
that - in law or practice - are not covered or not
sufficiently covered by formal provisions.
(Submissions concerning decent work and informal sector: at
the 90th International Labour Conference, 2002) Geneva
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DESCRIPTION OF INFORMAL WORKERS
Unrecognized, workers not protected in an unregulated or
clandestine economy, who try to sell their labour or products
to survive (to any unidentifiable employer)
 Little capital and lack of resources
 They are excluded from the protection provided by collective
bargaining and labour laws
 Independent workers, workers employed randomly without
employment contracts, members of family businesses, or homebased workers employed on a piecework basis
 Mainly woman and young workers
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MAIN SEGMENTS OF THE INFORMAL ECONOMY
Job status
Owner
Types of enterprises
Micro-enterprise
Independent/ self-employed
worker
Employee
Self-employed / family
company
Micro-enterprises /
subcontracting chain / no
fixed service
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7 ESSENTIAL ISSUES DENIED TO INFORMAL
WORKERS
TUESDAY 12/06/2012 (8.30AM/10AM)
①
Labour market security
②
Employment security
③
Job security
④
Work safety
⑤
Skills reproduction security
⑥
Income security
⑦
Representation security
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Methods for empirical studies
Type
Labourers
Labour
market
security
Employm Job
ent
security
security
Work
security
Skills
Income
reproduct security
ion
security
Represent
ation
security
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NEGATIVE IMPACT OF INFORMAL ECONOMY
Unfair competition for formal enterprises
No income tax for State
No social security contributions for State
No decent wages for workers (less spending and
expenses)
No occupational accidents and illnesses
Environmental damage
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COMPARISON BETWEEN THE FORMAL AND
INFORMAL ECONOMIES
Informal
Easy entry
Use of local resources
Family-owned
Small-scale operation
High intensity labour
Adapted technology
Skills acquired outside of formal
schooling system
Competitive unregulated markets
Formal
Difficult entry
Dependence with respect to outside
resources
Ownership of enterprises
Large-scale
High capital intensity
Imported technology
Protected markets (customs duties,
quotes, trading licenses)
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3. CURRENT SITUATION OF THE "INFORMAL
ECONOMY" AROUND THE WORLD
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INFORMAL ECONOMY TRENDS
Globalization and flexibility of labour markets
80% of world population - insufficient social protection
cover
50% of world population - no social protection
Most people in developing countries
Most people in the informal economy
Particularly women and young people
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SIZE OF INFORMAL ECONOMY 1
Share of
formal sector
jobs out of
total jobs
Low-income
countries
Middleincome
countries
Highincome
countries
17%
58%
84%
Source: World Development Report 1995. Washington D.C. World Bank
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SIZE OF INFORMAL ECONOMY 2
Latin America
/ Caribbean
Africa
Asia
Nonagriculture
jobs
57%
78%
45-85%
Urban jobs
40%
61%
40-60%
New jobs
83%
93%
N/A
Source: Charmes, Jacques. 2000. Informal Sector, Poverty, and Gender: A review of Empirical
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Evidence. Paper commissioned for World Development Report 2000/2001
I) STRENGTHENING FUNDAMENTAL
PRINCIPLES AND RIGHTS AT WORK
International Labour Standards / ILO Declaration /
Follow up
Declaration on MNE / OECD Guide / UN Global
Compact
National and local legislation / regulations and
institutions
Voluntary private initiatives (VPI)
 Ethics guidelines
 Framework agreements
 Social labelling
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4. DETERMINING THE CAUSES OF
INFORMALIZATION OF WORKERS
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CAUSES OF INFORMALIZATION
Linked to demand (pull effect)
Offer (push effect)
Structural causes (promotional effect)
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LINKED TO DEMAND (PULL EFFECT)
Pressure to reduce production costs due to the over-competitive
and profitmaking spirit of enterprise (need for cheap labour)
Needs of the poor in urban areas for cheap products and
services
High social protection fees and charges
Corrupt and cumbersome procedures for formalization
Less incentives for HST investments
Tendency to avoid trade unions
Illegal activities (need to be hidden)
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OFFER (PUSH EFFECT)
Unemployment and poverty
Difficulty (or impossibility) of finding work with a formal
employer
Reduction of the number of jobs and wages in public service
sectors
Population growth / migration
Lack of education, skills and / or training
Mismatch between demand and supply
HIV / AIDS
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STRUCTURAL CAUSES
Lack of political intent (lack of national policies)
Lack of sustainable economic development or fair wealth
redistribution systems
Lack of legislation, shortcomings in labour and employment
laws (no standards)
Lack of legal systems, effective application of the law, or
effective labour inspections (no justice)
Lack of complete social protection systems
Lack of primary / secondary education and vocational training
/ retraining (no possibilities)
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ECONOMIC RESTRUCTURING AND
CRISES
1. Structural Adjustment Programme (SAP)
2. Neoliberal economic policies
i.
ii.
Unemployment and underemployment rate
Far less jobs in the formal sector (especially
the public sector)
iii. Fall in wages insufficient to provide for a
family
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GENDER ISSUES
More women are entering the world of work, and
particularly the informal economy, because:
 Lack of education and skills
 Limited access to resources and
training possibilities
 Direct or indirect discrimination
 Family responsibilities
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IMPACT OF GLOBALIZATION
Increase in exchanges and investments
 FDI and international capital movements
Spread of technology
Competition for investments
Rise of multinational companies
International sectors of production
Migration of workers
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END OF COLD WAR
 End of old political East-west quarrels
 Start of new paradigm of a hot war with respect to
economic initiatives
 International wars, ethnic (cleansing) wars
 organizations to fight terrorism
 mafia organizations
 Increase in the number of refugees
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5. DEALING WITH THE PROBLEM OF THE
"INFORMAL ECONOMY"
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THREE MAJOR DEVELOPMENT OBJECTIVES
Better governance
Better social dialogue (tripartism)
Improvement of international
framework
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LIST OF ACTIONS FOR IMMEDIATE
OBJECTIVES
i.
Strengthening rights and principles at work
ii. Improving social protection
iii. Strengthening the representation of workers
iv. Achieving a sustainable economy and
creating decent jobs
v.
Improving the legal and institutional framework
Eradicating poverty
vi.
Developing better population planning
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III) STRENGTHENING THE REPRESENTATION
OF WORKERS' VOICES
Right to join trade unions and collective bargaining
Promotion of workers' and employers'
organizations
Improvement of tripartism and social dialogue at
national and local level
Promotion of cooperatives
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IV) CREATING DECENT JOBS
Creating quality jobs
Improving employability
Investing in knowledge and skills: education, training and
skills development
Developing enterprises
 Micro-enterprises
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V) IMPROVEMENT OF THE LEGAL AND
INSTITUTIONAL FRAMEWORK
1.
2.



Complete coverage and application of labour legislation and
administration (protection / minimum standards and welfare
benefits) in the informal economy;
For greater compliance with simplified, transparent, incorruptible,
consistent and accessible legal systems
Commercial rules and cases that govern the creation and
operation of enterprises;
Laws on ownership rights, which could affect the ability to
transfer assets into productive capital
Labour legislation governing labour relations and the rights and
protection of workers
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VI) BEATING POVERTY
1. Holistic national policies, strategies and programmes to
reduce poverty
2. Alliance with the international community on initiatives
to eradicate poverty (DSRP, for example)
3. Efforts made to abolish child labour
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VII) ACHIEVING BETTER POPULATION
CONTROL
Major social policy initiatives on:
 Population growth
 surplus labour
 rural exodus
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6. DEVELOPING TRADE UNION
POLICIES AND STRATEGIES FOR
THE INFORMAL ECONOMY
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DEVELOPMENT AND APPLICATION OF
EXTERNAL POLICIES
1. Labour standards and law
2. Promoting good governance and strong labour
administration
3. Fiscal policy and local government regulations
4. Social protection (social protection nets)
5. Macroeconomic policy and PAS
6. High labour intense infrastructure projects
7. Promotion of small and medium enterprises
8. Appreciation of human capital (HR development)
9. Access to credit
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DEVELOPMENT AND APPLICATION OF
EXTERNAL POLICIES
Establishing priorities and strategies to organize;
Setting up of structures and creating certain special
services;
Formalizing access and membership;
Building larger and community-based alliances of trade
unions;
Participating in ILO / NIT schemes;
International network or trade unions, codes of
conduct and framework agreements;
Gender dimension;
Mobilizing young people; and
Raising awareness and media
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ONLINE RESOURCES ABOUT THE
INFORMAL ECONOMY
ILO website on the informal economy
http://www.ilo.org/employment/lang--fr/index.htm
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"THE GREATEST SPACE IN THE WORLD
IS THE SPACE FOR IMPROVEMENTS"
THANK YOU FOR LISTENING: BEN
SAID DIA