"Economia Informal - PowerPoint"
Economía Informal: Desafíos y oportunidades para los sindicatos Puntos para la discusión 1. ¿Es La “Economía Informal” un problema para nosotros? 2. Definir “Economía Informal” 3. Analizar situaciones actuales en el mundo 4. Identificar causas del informatización 5. Addressing the issue of “Informal Economy” 6. Developing trade union policies and strategies on “Informal Economy” 2 1. ¿Es La “Economía Informal” un problema para nosotros? 3 ILO’s Decent Work Commitment All those who work have rights at work, irrespective of where they work and how they work! The commitment and goal of the ILO is to promote “Decent Work” along the entire continuum from the informal to the formal end of the economy in development-oriented, poverty reduction-focused and gender-equitable ways. 4 Who Enjoys Decent Work? This Group has major This Group enjoys limitations on Decent Work a good level of Decent Work Socially Excluded, Vulnerable Workers and Families 0% 100% = Priority Target of our Activities This Group has some limitations in Decent Work 5 2. Defining Informal Economy 6 Historical Overview First appearance of the concept - “informal sector” - in 1972 when ILO issued a report on Kenya. During the 70s and 80s, the common interpretation was: “informal sector” would be a transitory phenomenon, and economic progress would help the informal workers move into the formal sector. “Dilemma” in early 90s – whether the international community should promote the informal sector as a provider of employment and incomes or seek to extend regulation and social protection to it. (+) 7 Development in 1990s Further informalization and flexibilization of work and workers as the process of globalization and information technology accelerated; The early perception proved to be wrong: the size of the informal sector has expanded although the volume of world trades and investments expanded significantly; It became clear that informal sector is not a temporary or residual phenomenon, and that large scale, determined actions must be taken to address the issue. (+) 8 So, What Happened? 1970s-1980s 1990s-2000s Formal Sector Formal Employment Majority of Economic Became smaller Sectors were Formal and smaller Informal employment expanded and emerged in all kinds of economic Certain particular activities were activities 9 considered to be in informal sector From “informal sector” to “informal economy” The term, “Informal sector”, has been found to be an inadequate as well as misleading term; Use of “informal economy” to reflect these dynamic, heterogeneous and complex aspects of a phenomenon which is not a “sector”. (+) 10 Defining “Informal Economy” 1. All currently unregistered economic activities which contribute to the officially calculated (or observed) Gross National Product 2. Those activities which are not recorded in the national income accounts 3. Income-generation activities which take place outside of the formal regulatory framework 4. Units engaged in the production of goods or services with the primary objective of generating employment and incomes to the persons concerned 5. Units in small unregistered enterprises, both employers and employees, as well as self-employed persons who work in their own or family businesses 11 Formal Definition of “Informal Economy” All economic activities by workers and economic units that are – in law or in practice – not covered or insufficiently covered by formal arrangements. (Conclusions concerning decent work and the informal sector: at the 90th International Labour Conference, 2002) 12 Description of Informal Workers Unrecognized, unprotected workers in an unregulated or unregistered economy who are trying to sell their labour or products for survival (to an unidentifiable employer) Little capital and few fixed assets Excluded from the protections provided by collective bargaining and labour laws Self-employed, employed casually without a contract, members of family business, or homeworkers employed on a piece-work basis Mostly women or young workers 13 Major Segment of “Informal Economy” Status of Employment Type of enterprise Owner / Operator Micro-enterprise Self-employed / Own account unit / Own-account Family business Wage worker Micro-enterprise / Sub-contracting chain / No fixed unit 14 7 Essential Securities Denied to Informal Workers ① Labour market security ② Employment security ③ Job security ④ Work security ⑤ Skill reproduction security ⑥ Income security ⑦ Representation security 15 Methods for Empirical Studies Labour Employ- Job Work Skill Income Repre- market ment security security repro- security sentation Type security security duction security Of security Workers 16 Negativity Impact of Informal Economy Unfair competition for formal enterprises No tax income for the states No social security contributions for the states No decent wages for workers (less savings and spending) More occupational injuries/diseases Damage to the environment 17 Comparison between the informal and formal economy Informal Formal Ease of entry Difficult entry Reliance on indigenous Reliance on overseas resources resources Family ownership Corporate ownership Small scale of operation Large scale Labour-intensive Capital intensive Adapted technology Imported technology Skills acquired outside Formally acquired skills, formal school system often expatriate Unregulated, competitive Protected markets (tariffs, markets quotas, trade licenses) 18 3. Current Situation of “Informal Economy” around the World 19 Trends of Informal Economy Globalization and flexibility of labour markets 80% of world population - insufficient coverage of social protection 50% of world population – no social protection Majority of those in developing countries Majority of those in informal economy Particularly women and young people 20 Informal Economy in % GNP 1999/2000 Informal Economy in South Asia and Pacifique 60 52.6 50 44.6 43.4 38.4 36.8 40 35.6 31.1 30 26 23.1 19.4 18.4 20 15.6 13.1 10 0 a e sh am a s n a a E lia al na si ta nd nk ne di si AG ep de go ne hi is tn ay In La pi la N C k ER la e on do ai al lip Pa Vi ng i M Th Sr M In i AV Ph Ba Source: “Size and Measurement of the Informal Economy in 110 Countries around the world”, F.Schneider , July 2002. 21 22 23 Size of Informal Economy 1 Middle- Low-Income High-Income Income Countries Countries Countries Share of Formal Wage Employment 17% 58% 84% in Total Employment Source: World Development Report 1995. Washington D.C. World Bank 24 Size of Informal Economy 2 Latin-America Africa Asia / Caribbean Non- Agricultural 57% 78% 45-85% Employment Urban 40% 61% 40-60% Employment New Jobs 83% 93% N/A Source: Charmes, Jacques. 2000. Informal Sector, Poverty, and Gender: A review of Empirical Evidence. Paper comissioned for World Development Report 2000/2001 25 4. Identifying Causes of Informalization of workers 26 Causes of Informalization Demand-side causes (pull-effect) Supply-side causes (push-effect) Structural causes (promotional-effect) 27 Demand-side Causes (pull-effects) Pressure on reducing production costs due to over- competition and profit-oriented business minds (needs for cheap labour) Needs of urban poor for cheap goods and services High tax and social protection burdens Bribery and cumbersome procedures for formalization Less incentives for OSHE investment Avoidance of trade unions Illegal activities (needs to be hidden) 28 Supply-side Causes (push-effects) Unemployment and poverty Difficulty (or impossibility) to find employment with formal employer Shrink of employment and wages in public service sectors Fall of the prices of agricultural products Population growth / migration Lack of education, skill and/or training chances Miss-match between demand and supply HIV/AIDS 29 Structural Causes Lack of political will (no national policies) Lack of sustainable economic development or systems for fair redistribution of wealth Lack of legislation or defects in labour and social laws (no standards) Lack of legal systems, effective enforcement of law, or effective labour inspections (no justice) Lack of comprehensive social protection schemes Lack of primary/secondary education and vocational training/re-training (no opportunities) 30 Specific Reasons for Low Social Protection Coverage Conventional social security systems rely on the employer/employee relationship as a basis for coverage Low and irregular income of informal economy workers reduce their capacity to make contribution Ignorance of social security rights and obligations Legislative requirements, particularly those concerning employment status, exclude some informal sector workers from participation Bureaucracy (insufficiency or inability) Geographic accessibility of social protection institutions 31 Economic Restructuring and Crisis 1. Structural Adjustment Programme (SAP) 2. Neo-liberal economic policies i. Unemployment and underemployment ii. Much less employment in formal (particularly public) sector iii. Lower wages insufficient to support a family 32 Gender Issues More and more women enter into labour force but into informal economy, because: Little education and skill Less access to resources / training opportunities Direct and indirect discrimination Family responsibilities 33 Effect of Globalization Expansion of trade and investment FDI and international capital flow Diffusion of technology Competition for investment Emergence of multinational companies Global production chains Labour migration 34 End of Cold War End of the old East-West line power politics Beginning of new paradigm with hot war over economic initiatives Domestic wars, ethnic wars (cleansing) Terrorism organizations Mafia organizations Increasing number of refugees 35 5. Addressing the issue of “Informal Economy” 36 Three Key Development Objectives Better governance Better social dialogue (tripartism) Better international framework 37 Action List for Immediate Objectives i. Enhancing rights and principles at work ii. Improving social protection iii. Strengthening representation of workers iv. Achieving sustainable economy and creating decent employment v. Improving legal and institutional framework vi. Eradicating poverty vii. Achieving better demographic planning 38 i) Enhancing Rights and Principles at Work International Labour Standards and ILO Declaration on F.P.R.W. ILO MNE Declaration / OECD guidelines / UN Global Compact National and local legislation/regulations/ institutions Private voluntary initiatives (PVI) – Code of conduct – Framework Agreements – Social labeling 39 ii) Improving Social Protection Extending and adapting statutory social insurance Encouraging micro-insurance and area- based schemes Promoting cost-effective tax-based social benefits Establishing and promoting cooperatives Improving occupational health and safety HIV/AIDS 40 iii) Strengthening Representation and Voices of Workers Right to organize and bargain collectively Promotion of workers’ and employer’s organization Enhancement of tripartism and social dialogue at national and local level Promotion of cooperatives 41 iv) Creating Decent Employment Creating quality jobs Enhancing employability Investing in knowledge and skills – Education – Training and skill development Developing enterprises – Micro-enterprises 42 v) Improving Legal and Institutional Framework 1. Full coverage and application of labour legislation and administration (protection/minimum standards/ benefits) in the informal economy; 2. Simplified, transparent, incorruptible, consistent and affordable legal systems (for greater compliance) Commercial and business regulations governing the establishment and operation of enterprises; The laws pertaining to property rights, which could affect the ability to transform assets into productive capital Labour legislation governing employment relationships and the rights and protection of workers 43 vi) Eradicating Poverty 1. Comprehensive national policies, strategies and programmes for poverty reduction 2. Alliance with international community on poverty eradication initiatives (e.g. PRSP) 3. Efforts for abolishment of child labour 44 vii) Achieving Better Demographic Control Strong initiatives for social policy on: Population growth Surplus labour Rural-urban migration 45 6. Developing trade union policies and strategies on “Informal Economy” 46 Development and Implementation of External Policies 1. Labour Standards and labour legislation 2. Promoting good governance and sound labour administration 3. Tax policy and local government regulations 4. Social protection (social safety nets) 5. Macroeconomic policy and SAP 6. Employment-intensive infrastructure projects 7. Promotion of small and medium-sized enterprises 8. Human capital development 9. Access to credit 47 Development and Implementation of Internal Policies Establishing priorities and strategies for organizing; Setting up structures and developing special services; Formalization of access and membership; Building broader alliances and community-based unions; Participation in ILO/ILS mechanism; International trade union networking, code of conducts and framework agreements; The gender dimension; Mobilizing young people; and Awareness-raising and the media. 48 Online Resources on Informal Economy ILO Informal Economy Website http://www.ilo.org/public/english/employment /infeco/publ.htm#espanol 49 “The biggest space in the world is the space for improvement”