Literature Review On The Decent Work in the Informal Economy in Cambodia

Transcription

1 Literature Review On The Decent Work in the Informal Economy in Cambodia By Nuth Monyrath, EIC Researcher ILO/EIC- 2005/01/25 1

2 Decent Work in the (IE) in Cambodia 1. Overview 2. Concept and characteristics 3. Decent work and the informal economy 4. Cambodia s policies towards decent work 5. Conclusion and recommendations ILO/EIC- 2005/01/25 2

3 1. Overview: why decent work needs to be addressed in the IE? Declaration of Philadelphia (1944) Universal Declaration of Human Rights (1948) Cambodian Constitution (1993) Report of the Director General of the ILO (1999) Absence of employment opportunity Inadequate social protection Denial of workers rights and benefits Exclusion from social dialogue ILO/EIC- 2005/01/25 3

4 2. Concept and characteristics Definitions 1. Informal sector: International Conference of Labor Statisticians 2. Informal economy: employer of micro or informal enterprises, self-employed and informal workers. Informality: Production unit: not captured by statistics, do not enjoy resources and do not fully comply with regulation Workers are undeclared and do no enjoy social benefit under the law ILO/EIC- 2005/01/25 4

5 2. Concept and characteristics of IE Characteristics and magnitude Formal sectors: garment, tourism and public administration Activities of informal economy Provide some example Workforce in the IE: stable at 85% in (agriculture 65%) Own account workers (40%) and unpaid family workers (44%) (2001) IE contribution to GDP: 70% in 1998, 64% in 2000, 62% in 2003 ILO/EIC- 2005/01/25 5

6 Workforce in the (%) 100% 90% 19% 22% 24% 80% 70% 60% 50% 40% 81% 78% 76% Others Agriculture 30% 20% 10% 0% Source: EIC Estimates ILO/EIC- 2005/01/25 6

7 GDP in the (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 45% 51% 51% 55% 49% 49% Source: EIC Estimates Others Agriculture ILO/EIC- 2005/01/25 7

8 2. Concept and characteristics Factors of proliferation of IE Lack of transparency, excess bureaucracy: time and cost of doing business Inadequate economic growth and the surplus of labor force Increase of vulnerable workers due to mass poverty ILO/EIC- 2005/01/25 8

9 3. Decent work deficit 1. Employment deficit 2. Right deficit 3. Social protection deficit 4. Representational deficit ILO/EIC- 2005/01/25 9

10 3. Decent work and the IE Employment Deficit Workers could not find work in the formal economy Problems of access to credit institution, market, training, education, skills, technology. Workers have low income and productivity ILO/EIC- 2005/01/25 10

11 3. Decent work and the IE Right Deficit Workers are not protected and regulated by labor and commercial legislations. So, workers are exposed to poor working conditions Informal economy is confused with illegal activities. Informal workers face extortion, harassment ILO/EIC- 2005/01/25 11

12 3. Decent work and the IE Social Protection Deficit Insecurity of work, income and absence of protection at workplace Low income and productivity force people to work with serious occupational safety and hazards HIV/AIDs ILO/EIC- 2005/01/25 12

13 3. Decent work and the IE Representation Deficit Informal workers possess no voice, so their interests have been ignored by policy makers There is lack of common interests in the informal economy due to heterogeneity of occupations ILO/EIC- 2005/01/25 13

14 4. Policies towards decent work 1. Inclusion of the IE in a legal framework 2. Enterprise development for better productivity and quality of work 3. Microfinance and saving facility 4. Access to training for improved productivity and employment opportunities 5. Social protection enhancement 6. Voice representation improvement ILO/EIC- 2005/01/25 14

15 4. Policies towards decent work Inclusion of IE in a legal framework Views on the informal economy Basis for integration Universal declaration of human rights Constitution Commitment under international conventions Current legislations Labor legislation Business legislation Extending and creating norms for the IE ILO/EIC- 2005/01/25 15

16 4. Policies towards decent work Enterprise development for productivity and work quality Low productivity and incomes; MSEs (the most vulnerable conditions) Clear relation between decent work deficit and low productivity and incomes Recommendation 189 of ILO: Job creation in MSEs Government s policy: enabling environment for enterprise development Examples of initiatives for enterprise development (MPDF and SME Cambodia) ILO/EIC- 2005/01/25 16

17 4. Policies towards decent work Microfinance and saving facility One of MSE constraints is access to finance Micro-finance institution need to be supported and equipped with technical skills to manage their resources productively (reach the poor) An example from the UPDF ILO/EIC- 2005/01/25 17

18 4. Policies towards decent work Training for better productivity and work Job in the formal economy requires skills; Better skills lead to better productivity and income Training in Cambodia is very limited as offered by MYES and some NGOs More research and study on skills and techniques for better productivity and employability Training linked with better productivity should be promoted (E.g. AAC) ILO/EIC- 2005/01/25 18

19 4. Policies towards decent work Social protection enhancement Extending social protection to the IE Strengthening capacity of officials responsible for the management and organization of social insurance GRET (Group de Recherche et d Échanges Technologiques) and health insurance schemes Encouraging and promoting community based social security scheme for sustainability and viability Training is best way to avoid occupational and safety health hazards (Example of ILO, CSARO, JFPR) ILO/EIC- 2005/01/25 19

20 4. Policies towards decent work Voice representation improvement Role of national and local governments Role of civil society Role of unions & community based organizations (CBOs) Role of employer s organization ILO/EIC- 2005/01/25 20

21 5. Conclusions and recommendations Conclusions Huge proportion of the IE in Cambodia Work deficit in the IE Lack of employment in the formal economy No legal protection Exposed to very poor working conditions without social security schemes Workers possess no voice vis-à-vis other stakeholders including public administration Cambodia: commitment by ratifying ILO core conventions but more policy and programs are further needed ILO/EIC- 2005/01/25 21

22 5. Conclusions and recommendations Recommendations 1. Need more surveys and studies of problems in the informal economy 2. Extend legislations and reinforce capacity of law enforcement agencies 3. Create of good quality job and improve productivity 4. Study more the constraints of IE and initiate policy and programs 5. Provide more training with quality and quantity 6. Enhance microfinance to rural and urban poor 7. Extend legislation and enact the social insurance schemes from lessons learned in other successful countries 8. Improve voice representation with prospect to different roles of union, governments and employers organization ILO/EIC- 2005/01/25 22