DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

SABBAVARAM, VISAKHAPATNAM, A.P., INDIA

PROJECT TITLE:
ROLE OF ILO IN ERADICATION OF POVERTY

SUBJECT: LABOUR LAW 2

NAME OF THE FACULTY: Pr0f. CH. Lakshmi

NAME OF THE CANDIDATE - POLAM KRISHNA CHAITHANYA

REDDY

ROLL NUMBER - 2017064

SEMESTER - VI

ACKNOWLEDGEMENT
I w0uld like t0 express my special thanks 0f gratitude t0 my teacher Pr0fess0r CH. Lakshmi
wh0 gave me the g0lden 0pp0rtunity t0 d0 pr0ject 0f “Role of ILO in Eradication of Poverty”
which c0vers different aspects 0f which als0 helped me in d0ing a l0t 0f research and field
w0rk and I came t0 kn0w ab0ut s0 many new things I am really thankful t0 Madam.
 ROLE OF ILO IN ERADICATION OF POVERTY
ABSTRACT

P0verty is n0t having en0ugh material p0ssessi0ns 0r inc0me f0r a pers0n's needs.
P0verty may include s0cial, ec0n0mic, and p0litical elements. Abs0lute p0verty is the
c0mplete lack 0f the means necessary t0 meet basic pers0nal needs, such as f00d, cl0thing
and shelter. The thresh0ld at which abs0lute p0verty is defined is always ab 0ut the same,
independent 0f the pers0n's permanent l0cati0n 0r era.
G0vernments and n0n-g0vernmental 0rganizati0ns try t0 reduce p0verty. Pr0viding
basic needs t0 pe0ple wh0 are unable t0 earn a sufficient inc0me can be hampered by
c0nstraints 0n g0vernment's ability t0 deliver services, such as c0rrupti0n, tax av0idance,
debt and l0an c0nditi0nalities and by the brain drain 0f health care and educati0nal
pr0fessi0nals. Strategies 0f increasing inc0me t0 make basic needs m0re aff0rdable typically
include welfare, ec0n0mic freed0ms and pr0viding financial services.
In 1944, the Declarati0n 0f Philadelphia set 0ut a clear rati0nale f0r the ILO t0
engage in the fight against p0verty in all f0rms in all c0untries. Since then, such c0mmitment
has translated int0 p0licy advice, standard setting, research and data c0llecti0n, and c0ncrete
technical assistance pr0grammes f0r p0verty eradicati0n in p00r and rich c0untries alike.
Breaking the cycle 0f p0verty inv0lves full empl0yment and decent w0rk . This has
been a maj0r thrust 0f the ILO appr0ach. Evidence sh0ws that decent and pr0ductive j0bs,
sustainable enterprises and ec0n0mic transf0rmati0n play a key r0le in reducing p0verty.
While devel0pment assistance remains imp0rtant, c0untries that managed t0 pull themselves
0ut 0f p0verty were th0se that were able t0 m0ve fr0m l0w t0 higher pr0ductive activities,
while strengthening instituti0ns f0r g0vernance and s0cial pr0tecti0n f0r w0rkers and their
families.
Decent j0bs and livelih00ds matter particularly f0r th0se wh0 are m0st excluded and
m0st vulnerable. During the 1995-2010 peri0d, ILO technical c00perati0n pr0grammes have
helped nearly 0ne milli0n children escape the sc0urge 0f child lab0ur. ILO’s r0le in standard
setting c0ntributes t0 nati0nal framew0rks and legislati0n t0 supp0rt impr0vements in
w0rking lives, dignity and respect f0r fundamental rights. The recent c0nventi0n 0n d0mestic
w0rkers, ratified by twenty-tw0 c0untries, pr0vides a universal benchmark f0r decent
treatment. If ratified w0rldwide, it w0uld reach m0re than 53 milli0n 0f d0mestic w0rkers,
many 0f wh0m p00r 0r living 0n the edge 0f p0verty.
 CHAPTERISATION

1. INTRODUCTION

2. OVERVIEW OF POVERTY TRENDS

3. ILO’s STAND ON POVERTY

4. REASONS OF POVERTY DESCRIBED BY ILO

5. ILO’s POLICIES AND INITIATIVES TO TACKLE POVERTY

6. DECENT WORK AND POVERTY ERADICATION

7. CONCLUSION

8. BIBLIOGRAPHY
 1. INTRODUCTION

F0r many p00r pe0ple, w0rk is 0ne 0f the maj0r r0utes f0r escaping p0verty. As
such, f0r p00r pe0ple acr0ss the gl0be, the desire f0r pr0ductive w0rk that pr0vides an
adequate and secure livelih00d has been f0und t0 be a near universal aspirati0n. H0wever,
there is an 0ng0ing need t0 ensure that 0pp0rtunities f0r ec0n0mic gr0wth translate int0 a
better quality 0f ec0n0mic 0pp0rtunities f0r the p00r. The maj0rity 0f p00r pe0ple in the
devel0ping w0rld already have j0bs, but these are pred0minantly in the inf0rmal ec0n0my,
where c0nditi0ns are usually insecure and inc0mes inadequate. This suggests that fighting
p0verty is n0t s0lely a questi0n 0f generating ec0n0mic gr0wth and empl0yment
0pp0rtunities but rather ensuring that the quality 0f available w0rk is such that it can lead t 0
p0verty reducti0n.

The c0ncept 0f decent w0rk is a resp0nse t0 this challenge, pr0p0sing an appr0ach t0

ec0n0mic gr0wth that translates int0 fair and sustainable 0pp0rtunities f0r the p00r,
particularly the w0rking p00r. In the0ry at least, the Decent W0rk Agenda pr0vides a useful
and flexible way 0f thinking ab0ut h0w t0 c0mbine ec0n0mic gr0wth with s0cial justice t0
ensure that devel0pment is sustainable and fair. But what is the extent 0f its influence in
p0licy-making? Have devel0pment act0rs applied this idea in practice and f0und it useful?
And d0es it pr0vide a valuable appr0ach t0 rec0very fr0m the gl0bal financial crisis?

The main finding 0f this pr0ject is that decent w0rk including b0th pr0ductive
empl0yment and s0cial pr0tecti0n is a necessary c0nditi0n f0r ending p0verty in all its f0rms
in devel0ped c0untries as well as emerging and devel0ping c0untries. With0ut pr0ductive
j0bs, enterprise devel0pment, s0cial pr0tecti0n and rights, eff0rts t0 reduce p0verty will be
either inc0mplete 0r unsustainable. The rep0rt stresses, h0wever, that t0 be effective in
ending p0verty, decent w0rk p0licies need t0 be well designed and adapted t0 c0untry
circumstances.

Empl0yment and s0cial p0licies can help individuals t0 find a j0b, impr0ve their
existing w0rking and inc0me c0nditi0ns and assist them in transiti0ning t0 new and better
j0bs. The rep0rt pr0vides many examples 0f such p0licies, in b0th devel0ped and devel0ping
c0untries. One general less0n that emerges is that it is crucial t0 c0nceive these p0licies as
part 0f a strategy with a view t0 impr0ving synergies between the different t00ls.
 Lab0ur market instituti0ns are an essential c0mplement t0 internati0nal lab0ur
standards in terms 0f reaching the p00r. These eff0rts must be supp0rted thr0ugh effective
lab0ur administrati0ns and inspecti0ns, and enhanced access t0 justice. Vari0us c0untries
have effectively c0vered traditi0nally vulnerable gr0ups by implementing legislati0n
c0nsistent with internati0nal lab0ur standards.

At the S0cial Summit, G0vernments c0mmitted themselves t0 achieving equality and

equity between w0men and men. The F0urth W0rld C0nference 0n W0men, Beijing, 1995,
identified as a pri0rity t0 “review, ad0pt and maintain macr0ec0n0mic p0licies and
devel0pment strategies that address the needs and eff0rts 0f w0men in p0verty”. M0re0ver, it
emphasized the need t0 “devel0p gender-based meth0d0l0gies and c0nduct research t0
address the feminizati0n 0f p0verty”. M0re recently, the Ec0n0mic and S0cial C0uncil itself
res0lved t0 pr0m0te a c00rdinated and c0herent p0licy 0f gender mainstreaming and urged
that “issues acr0ss all areas 0f (United Nati0ns) activity sh0uld be defined in such a manner
that gender differences can be diagn0sed”.

The relati0nship between p0verty and empl0yment lies in the extent t0 which inc0me
generated fr0m empl0yment permits w0rkers and their dependants t0 0btain g00ds and
services necessary t0 meet minimum needs. P0verty reducti0n thus calls f0r the creati0n 0f
regular and g00d-quality j0bs in the lab0ur market. The interl0cking pr0blems 0f p0verty
and empl0yment differ between different gr0ups and particularly between w0men and men.
Even in the same s0ci0-ec0n0mic setting, w0men and men bec0me imp0verished thr0ugh
different pr0cesses and face different 0pp0rtunities and c0nstraints in accessing the lab0ur
market. Theref0re, a successful p0verty reducti0n strategy must address b0th br0ad s0ci0-
ec0n0mic and gender specific p0licy issues.

The lack 0f ec0n0mic 0pp0rtunities f0r the p00r and inherent ec0n0mic and s0cietal
biases against w0men have acquired new urgency with the accelerating pace and impact 0f
gl0balizati0n and liberalizati0n. P0licies are needed that pr0tect the p00r and vulnerable
gr0ups fr0m the v0latility 0f the gl0bal ec0n0my. Otherwise, the adverse c0nsequences 0f
gr0wing insecurity can quickly 0utweigh the p0tential benefits that new markets and
0pp0rtunities aff0rd f0r w0rld devel0pment and human pr0gress. The recurrent and
persistent ec0n0mic crises 0f recent years, particularly the devel0ped c0untries experience,
serve 0nly t0 underline the urgency 0f the challenge facing nati0nal and internati0nal p0licy
makers in addressing the pr0blems 0f p0verty, empl0yment and gender equality.
 2. OVERVIEW OF POVERTY TRENDS

Giving a pers0n anything under the guise that he will be lifted 0ut 0f p0verty with0ut
his hard w0rk is making them lazy, where if we make it a habit f 0r the pe0ple t0 w0rk and
earn his living, he will be teaching it t0 all his family and this is the aim 0f sustainable
devel0pment where the pe0ple devel0p by l00king int0 0pp0rtunities and earn their
livelih00d, but if the s0cial welfare schemes which inv0lve distributi0n 0f m0ney in India are
enc0uraged, then it bec0me a challenge t0 bring the pe0ple wh0 are dependent 0n these
schemes a challenge and further c0ntribute t0 inflati0n.
Gainful empl0yment is still the m0st reliable way 0f escaping p0verty. H0wever,
access t0 b0th j0bs and decent w0rking c0nditi0ns remains a challenge. Sixty-six per cent 0f
empl0yed pe0ple in devel0ping ec0n0mies and 22 per cent in emerging ec 0n0mies are in
either extreme 0r m0derate w0rking p0verty, and the pr0blem bec0mes even m0re striking
when the dependents 0f these “w0rking p00r” are c0nsidered. Thus, it is n0t just
unempl0yment 0r inactivity that traps pe0ple in p0verty, they are als0 held back by a lack 0f
decent w0rk 0pp0rtunities, including underempl0yment 0r inf0rmal empl0yment.
During the last half century, humanity has achieved hist0rically unprecedented
advances in nutriti0n, health, educati0n, life expectati0n and reducti0n in material p0verty.
Nati0nal experiences differ and vary 0ver time but advancements have generally benefited
pe0ple in b0th devel0ped and devel0ping c0untries. Pe0ple in the devel0ping w0rld have
rec0rded hist0rically unprecedented ec0n0mic and s0cial pr0gress between 1950 and 1990.
Despite this dramatic pr0gress, the gl0bal challenge 0f p0verty remains. Over 1.5 billi0n
pe0ple still live 0n less than $1 per day, and the number 0f abs0lute p00r c0ntinues t0 gr0w.
There are cl0se t0 1 billi0n adults unable t0 read 0r write. Three quarters 0f a billi0n pe0ple
have n0 access t0 health services. Malnutriti0n affects 0ver 800 milli0n pe0ple. Many
milli0ns lack access t0 safe water and many milli0ns m0re have a life expectancy 0f less than
40 years. The greatest number 0f pe0ple bel0w the p0verty line live in Asia, but the depth 0f
p0verty, which measures h0w far inc0mes fall bel0w the p0verty line, is greater in sub-
Saharan Africa than in any 0ther regi0n.1
In additi0n, child lab0ur remains a seri0us pr0blem in the p0verty agenda t0day.
Acc0rding t0 ILO estimates, the number 0f fully w0rking children between ages 5 and 14 is
at least 120 milli0n, 0r ab0ut 250 milli0n if th0se f0r wh0m w0rk is a sec0ndary activity are

1
A more effective labour market approach to fighting poverty, Cynthia Samuel-Olonjuwon, ILO Regional
Director for Africa, ILO.ORG, last accessed February 2020.
included.2 A large number 0f them w0rk in 0ccupati0ns and industries that are plainly
danger0us and hazard0us. Reas0ns f0r child lab0ur are many, but the 0ne which f0rms the
c0re is the reas0n 0f p0verty, because 0f living in p0verty when pe0ple hear the s0und 0f
m0ney they send their children t0 w0rk t0 any type 0f w0rk, they need m0ney t0 get 0n,
many p00r have a c0mm0n misc0ncepti0n that if 0ur child g0es t0 w0rk, he will earn
m0ney, whereas if he g0es t0 sch00l, we d0n’t kn0w whether he will study well and get a j0b
t0 earn m0re m0ney. But what they d0n’t understand is when a child g0es t0 sch00l, he will
learn if n0t as much he will get a j 0b, but his educati0n w0uld help him t0 n0t be expl0ited
by the s0ciety and t0 live al0ng with the advancements in the s0ciety.

The relationship between employment and poverty

Empl0yment c0ntributes t0 p0verty reducti0n and pr0m0tes equality between w0men
and men. It is, h0wever, imp0rtant t0 review at the 0utset the c0nditi0ns under which
empl0yment has a p0sitive impact 0n well-being and equality. First, the rate 0f gr0wth 0f
0verall empl0yment must be sufficient t0 abs0rb new entrants int0 the lab0ur f0rce in
pr0ductive and remunerative w0rk, as well as take care 0f existing unempl0yment and
underempl0yment. Sec0nd, empl0yment creati0n sh0uld result in the equitable distributi 0n
0f j0bs between th0se bel0w and ab0ve p0verty inc0mes f0r individuals and families. Third,
empl0yment, sh0uld, apart fr0m being pr0ductive, be linked t0 a s0cial wage and the
enf0rcement 0f c0re lab0ur standards, t0 ensure adequate remunerati0n and s0cial pr0tecti0n
and decent w0rking c0nditi0ns. The ab0ve-menti0ned imply the existence 0f the right type 0f
macr0-ec0n0mic framew0rk, lab0ur-market and s0cial p0licies, and efficient lab0ur-market
instituti0ns, designed t0 facilitate equal access t0 gainful and decent empl0yment f0r men
and w0men. There is c0nvincing empirical evidence acr0ss c0untries and in different regi0ns
0f the w0rld that empl0yment d0es have a direct and p0sitive impact 0n p0verty.
In industrialized c0untries, the l0wering 0f the rate 0f unempl0yment is usually
p0verty reducing. The excepti0n w0uld be in cases where the decline in unempl 0yment
c0mes as a result 0f an expansi0n in l0w-paid w0rk that d0es n0t pr0vide inc0mes high
en0ugh t0 lift the w0rkers c0ncerned 0ut 0f p0verty. In devel0ping c0untries, this
presumpti0n d0es n0t necessarily h0ld since the rate 0f 0pen unempl0yment is a p00r
indicat0r 0f what the level and incidence 0f p0verty are. This is because regular wage
empl0yment is n0t the d0minant m0de 0f empl0yment in devel0ping c0untries. Instead, the
maj0rity 0f the empl0yed are in s0me f0rm 0f self-empl0yment (smallh0lder farming, petty
2
Social protection for the eradication of poverty: Goals, Targets and Indicators, International Labour Office.
pr0ducti0n in the inf0rmal sect0r). There is c0nsiderable underutilizati0n 0f lab0ur and the
returns t0 w0rk are 0ften insufficient t0 stave 0ff p0verty. F0r these w0rkers, ec0n0mic
adversity is abs0rbed thr0ugh a fall in inc0me, increased w0rk and increased
underempl0yment, and n0t 0pen unempl0yment. M0re0ver, in the absence 0f unempl0yment
benefits, very few w0rkers, even th0se in regular wage empl0yment, can aff0rd t0 remain
unempl0yed. In all these cases, deteri0rati0n in empl0yment c0nditi0ns and a rise in p0verty
will n0t be captured in the rate 0f unempl0yment.

3. ILO’s STAND ON POVERTY

The ILO’s w0rk 0n p0verty reducti0n generally, and the PRS pr0cess specifically, is
gr0unded in s0cial justice and the twin c0ncepts 0f entitlements and equity. The starting
p0int is the fact that w0rk is the main, 0ften the 0nly, way f0r p00r pe0ple t0 get and stay 0ut
0f p0verty.
This appr0ach, based 0n the principles 0f s0cial justice, can be expressed as a right t 0
inclusi0n, pr0tecti0n, and access t0 decent w0rk and decent inc0mes. P00r pe0ple lack
entitlements because their ability t0 c0mmand, f0r example, decent w0rk depends 0n the
entitlement relati0ns in any given s0ciety. F0r a p00r pers0n, access t0 decent w0rk depends
0n what they 0wn (0ften n0t a l0t), what exchange p0ssibilities are 0ffered (0ften very few),
what is given, and what is taken away. P0verty reducti0n is theref0re ab0ut increasing the
end0wments 0f the p00r, their entitlements and their v0ice.
The achievement 0f these rights inv0lves the devel0pment 0f b0th ec0n0mic and
s0cial capabilities. PRSs, as nati0nal p0licy framew0rks, are increasingly imp0rtant in
determining the pathway 0f ec0n0mic and s0cial devel0pment in many c0untries. The value
added by ILO engagement, as c0mpared t0 0ther devel0pment partners, in the PRS pr0cess is
in its ability t0 w0rk with c0nstituents t0 highlight the imp0rtance 0f the inclusi0n 0f lab0ur
issues: empl0yment, redistributi0n, equity and s0lidarity. These sh0uld be intrinsic t0 macr0-
ec0n0mic p0licies in every c0untry.
“The ILO sees employment as fundamental to the fight against poverty and
social exclusion, and has developed an international strategy for the promotion of freely
chosen productive employment – the Global Employment Agenda. The Agenda’s main
aim is to place employment at the heart of economic and social policies; it provides a
useful conceptual foundation for engaging in PRSs at country level.”3
This appr0ach underlines that ec0n0mic gr0wth is an essential but n0t sufficient
c0nditi0n f0r p0verty reducti0n. P0verty reducti0n inv0lves gr0wth with a substantial
re0rientati0n in fav0ur 0f the p00r (0ften referred t0 as ‘pr0-p00r gr0wth’). It includes
changes in instituti0ns, laws, regulati0ns and practices that are part 0f the pr0cess that creates
and perpetuates p0verty.
“In the 0rganizati0n 0f its 0wn w0rk the ILO is already well placed t0 take up that
r0le. The End t0 P0verty Initiative – 0ne 0f the seven centenary initiatives ad0pted by the
ILO in the framew0rk 0f its 100th anniversary in 2019 – has been designed specifically as the
vehicle f0r this w0rk t0 be taken f0rward. It is supp0rted by a str0ng alignment 0f the p0licy
0utc0mes 0f the Pr0gramme and Budget f0r 2016–17 with the SDGs which can be further
strengthened when the G0verning B0dy elab0rates the ILO’s Strategic Plan f0r 2018–21.”4
“M0re0ver, it will be imp0rtant f0r the clear synergies between the End t0 P0verty
Initiative and 0ther centenary initiatives t0 be expl0ited t0 the full in rec0gniti0n 0f their key
imp0rtance t0 the 2030 Agenda and its integrated character. The W0men at W0rk Initiative is
an essential resp0nse t0 SDG 5 0n the achievement 0f gender equality and the emp0werment
0f all w0men and girls; the Green Initiative must be the ILO’s c 0ntributi0n t0 the urgent
acti0n t0 c0mbat climate change and its impacts called f0r under SDG 13; the Enterprises
Initiative 0pens new means 0f acti0n and 0pp0rtunities f0r partnership acr0ss the 2030
Agenda; the G0vernance Initiative aims t0 make the ILO’s 0wn decisi0n- making m0re
effective and s0 impr0ve its capacity t0 interact in the multilateral system; the Standards
Initiative res0nates str0ngly with the pr0m0ti0n 0f peaceful and inclusive s0cieties with
access t0 justice f0r all, and effective, acc0untable and inclusive instituti0ns under SDG 16;
and the very ambiti0n 0f the Future 0f W0rk Initiative is t0 equip the ILO t0 better
understand and resp0nd t0 transf0rmati0nal changes acting 0n the w0rld 0f w0rk and s0 t0
pursue its s0cial justice mandate – indeed, the 15-year sc0pe 0f the SDGs pr0vides an
appr0priate time frame 0f applicati0n f0r the mega drivers 0f change addressed by the
initiative.”5

3
WORLD EMPLOYMENT SOCIAL OUTLOOK, Transforming jobs to end poverty, International Labour Office –
Geneva: ILO, 2016 , ISBN 978-92-2-130388-6
4
ibid
5
The End to Poverty Initiative, The ILO and the 2030 Agenda, The End to Poverty Initiative, The ILO and the
2030 Agenda.
 Many rural w0rkers, especially in agriculture, experience severe difficulties and gaps
in pr0tecti0n as regards freed0m 0f ass0ciati0n, f0rced lab0ur, child lab0ur, discriminati0n,
wages, w0rking time, 0ccupati0nal safety and health and s0cial security. F0r example, 70 per
cent 0f child lab0ur is f0und in agriculture and b0nded lab0ur is prevalent in certain
c0untries. The level 0f accidents and w0rk-related illness in rural areas acc0unts f0r half the
gl0bal t0tal, with an average 0f 170,000 agricultural w0rkers killed at w0rk annually.6
“Rural w0rkers 0ften fall 0utside the sc0pe 0f nati0nal lab0ur laws. In a number 0f
cases, they are explicitly excluded, either fully 0r partially, fr0m the relevant laws, 0r, when
they are c0vered under the law, they are excluded fr 0m pr0tecti0n in practice. Such
exclusi0ns are 0ften due t0 their empl0yment status (e.g., self-empl0yed, smallh0ld farmers,
casual and seas0nal w0rkers) 0r because they bel0ng t0 vulnerable gr0ups (e.g., w0men,
migrant w0rkers, indigen0us pe0ples, l0wer castes) making them particularly susceptible t0
abuse. In additi0n, lab0ur inspecti0n is 0ften n0n-existent 0r weak.”7
When the alleviati0n 0f p0verty made it t0 the centre 0f the gl0bal devel0pment
p0licy debate during 1990s culminating in the Millennium Summit in 2000, the term and
c0ncept 0f s0cial pr0tecti0n was absent in the discussi0ns
S0cial security systems as a means 0f p0verty alleviati0n did n0t play a r0le in the
debates 0n “halving” p0verty as 0ne 0f the targets 0f the Millennium Devel0pment G0als, as
well as a means t0 make a meaningful c0ntributi0n t0 a number 0f 0ther MDGs
The MDGs were an eff0rt t0 intr0duce gl0bal s0cial g0vernance by f0rmulati0n
0utc0mes rather than c0ncrete g0vernance t00ls: rights, pr0cesses and p0licies necessary t0
achieve g0als were missing The absence 0f s0cial pr0tecti0n in the designing 0f the MDGs
was partly due t0 the fact that ILO standards in s 0cial security were n0t ready t0 supp0rt a
wider s0cial p0licy and devel0pment agenda. Situati0n has changed with the ad0pti0n 0f
S0cial Pr0tecti0n Fl00rs Rec0mmendati0n n0 202 (2012).8
The g0al that all pe0ple sh0uld live in a minimum 0f s0cial security can clearly serve
as a devel0pment 0bjective, but S0cial pr0tecti0n can als0 alternatively be seen as means t0
achieve a set 0f related maj0r 0bjectives such as the alleviati0n 0f p0verty and the reducti0n
0f inequality, achieving access t0 health care f0r all, achieving gender equality etc.
In any case the establishment and maintenance 0f at least fl00rs 0f s0cial pr0tecti0n
available t0 all sh0uld be seen as indispensable devel0pment p0licy t00l. Whether pe0ple
6
Decent Work and Poverty Reduction Strategies, A reference manual for ILO staff and constituents, National
Policy Group, Policy Integration Department.
7
ibid
8
ibid
have access t0 s0cial security is measurable (alth 0ugh still maj0r eff0rt is needed t0 make
data available everywhere) and gaps in pr 0tecti0n can be filled by c0ncrete p0licy t00ls
rather than fuzzy the0retical p0licy c0ncepts.

4. REASONS OF POVERTY DESCRIBED BY ILO

What constitutes one of the biggest obstacles to peace and social justice? The
Declaration of Philadelphia, adopted by the ILO in 1944 and annexed to its
Constitution, makes it clear: poverty.
The persistence 0f p0verty is a m0ral indictment 0f 0ur times. While there are s0me
signs 0f pr0gress, the fact remains: never have we seen s 0 much wealth while s0 many
c0ntinue t0 live in abject p0verty. P0verty is a c0mplex, deep-seated, pervasive reality.
Virtually half the w0rld lives 0n less than US$2 a day. M0re than 1 billi0n pe0ple struggle 0n
$1 a day 0r less. And an even greater challenge lies bey0nd what statistics can measure
p0verty breeds a gr0wing sense 0f p0werlessness and indignity, 0f being unable t0 think,
plan 0r dream bey0nd the daily struggle t0 survive.
F0r individuals, p0verty is a nightmare. It is a vici 0us circle 0f p00r health, reduced
w0rking capacity, l0w pr0ductivity and sh0rtened life expectancy. F0r families, p0verty is a
trap. It leads t0 inadequate sch00ling, l0w skills, insecure inc0me, early parenth00d, ill
health and an early death. F0r s0cieties, p0verty is a curse. It hinders gr0wth, fuels instability,
and keeps p00r c0untries fr0m advancing 0n the path t0 sustainable devel0pment. F0r all 0f
us and f0r all these reas0ns the c0st 0f p0verty in shattered human lives is far t00 high. But
there is an0ther face t0 p0verty. Pe0ple living in c0nditi0ns 0f material deprivati0n draw 0n
en0rm0us reserves 0f c0urage, ingenuity, persistence and mutual supp0rt t0 keep 0n the
treadmill 0f survival. After all, f0r m0st pe0ple living in p0verty, there is n0 safety net and
little state supp0rt. Simply c0ping with p0verty dem0nstrates the resilience and creativity 0f
the human spirit. In many ways, the w0rking p00r are the ultimate entrepreneurs. Pe0ple in
p0verty g0 thr0ugh each day with the will t0 survive, but with0ut the supp0rt and
p0ssibilities t0 m0ve up the ladder 0f 0pp0rtunity. Imagine where their eff0rts c0uld take
them if that ladder were in place. Our c0mm0n resp0nsibility is t0 help put it there.
After all, the p00r d0 n0t cause p0verty. P0verty is the result 0f structural failures and
ineffective ec0n0mic and s0cial systems. It is the pr0duct 0f inadequate p0litical resp0nses,
bankrupt p0licy imaginati0n and insufficient internati0nal supp0rt. Its c0ntinued acceptance
expresses a l0ss 0f fundamental human values.
 T0 be sure, p0verty is a gl0bal phen0men0n that 0ccurs in every s0ciety. N0 nati0n is
immune. In 20 industrialized c0untries, f0r example, 0ver 10 per cent 0f the p0pulati0n, 0n
average, was living bel0w the p0verty line in the mid 1990s.9
The Internati0nal F00d Study Institute had a brief 0n a c0llecti0n 0f extensive studies
that analyzed the causes 0f p0verty, analyzing h0useh0ld data and reviewing empirical
research in 20 c0untries. They f0und that s0me 0f the maj0r causes 0f p0verty were the
inability 0f p00r h0useh0lds t0 invest in pr0perty and educati0n, limited access t0 credit, in
s0me cases these instances pr0duce m0re p0verty thr0ugh inherited p0verty. The systematic
exclusi0n 0f ethnic min0rities, scheduled castes, tribes, w0men and pe0ple with disabilities
and health issues. Persistence 0f p0verty is partially attributed t0 these classes n0t having
access t0 instituti0ns and markets.10
War and vi0lence may be s0me 0f the primary causes 0f p0verty. P0litical vi0lence
and 0rganized crime have affected 39 c0untries since 2000, in th0se c0untries the p0verty
level is twice that 0f n0n-vi0lent c0untries. These tw0 items, p0verty and vi0lence may als0
feed themselves. When asked why y0ung pe0ple j0ined gangs and rebel gr0ups in half a
d0zen c0untries, tw0 thirds 0f the resp0ndents said that unempl0yment was their main
reas0n, 0nly 0ne tenth cited a belief in the cause.11
1. INEQUALITY AND MARGINALIZATION
“Inequality” is an easy, but s0metimes misleading term used t0 describe the systemic
barriers leaving gr0ups 0f pe0ple with0ut a v0ice 0r representati0n within their c0mmunities.
F0r a p0pulati0n t0 escape p0verty, all gr0ups must be inv0lved in the decisi0n-making
pr0cess especially when it c0mes t0 having a say in the things that determine y0ur place in
s0ciety. S0me 0f these may be 0bvi0us, but in 0ther situati0ns, it can be subtle.
Gender inequality, caste systems, marginalizati 0n based 0n race 0r tribal affiliati0ns
are all ec0n0mic and s0cial inequalities that mean the same thing: Little t 0 n0 access t0 the
res0urces needed t0 live a full, pr0ductive life. When c0mbined with different c0mbinati0ns
0f vulnerability and hazards which c0mprise the rest 0f this list a marginalized c0mmunity
may bec0me even m0re vulnerable t0 the cycle 0f p0verty.

9
M.F. Forster: Trends and driving factors in income distribution and poverty in the OECD area, Labour Market
and Social Policy Occasional Paper No. 42 (Paris, OECD, 2000), table 5.1
10
Root Causes of Violent Conflict in Developing Countries." BMJ: British Medical Journal. 324 (7333): 342–345.
2002.
11
"The economics of violence". The Economist. 16 April 2011. Accessed on July 2015.
2. HUNGER, MALNUTRITION, AND STUNTING
Y0u might think that p0verty causes hunger (and y0u w0uld be right!), but hunger is
als0 a cause and maintainer 0f p0verty. If a pers0n d0esn’t get en0ugh f00d, they’ll lack the
strength and energy needed t0 w0rk (0r their immune system will weaken fr 0m malnutriti0n
and leave them m0re susceptible t0 illness that prevents them fr0m getting t0 w0rk).
The first 1,000 days 0f a child’s life (fr0m w0mb t0 w0rld) are key t0 ensuring their
future health and likelih 00d 0f staying 0ut 0f p0verty. If a m0ther is maln0urished during
pregnancy, that can be passed 0n t0 her children, leading t0 wasting (l0w weight f0r height)
0r stunting (l0w height f0r age). Child stunting, b 0th physical and c0gnitive, can lead t0 a
lifetime 0f impacts: Adults wh0 were stunted as children earn, 0n average, 22% less than
th0se wh0 weren’t stunted. In Ethi0pia, stunting c0ntributes t0 GDP l0sses as high as 16%.
3. POOR HEALTHCARE SYSTEMS, ESPECIALLY FOR MOTHERS AND
CHILDREN
Extreme p0verty and p00r health 0ften g0 hand in hand. In c0untries where health
systems are weak, easily preventable and treatable illnesses like malaria, diarrhea, and
respirat0ry infecti0ns can be fatal especially f0r y0ung children. And when pe0ple must
travel far distances t0 clinics 0r pay f0r medicine, it drains already vulnerable h0useh0lds 0f
m0ney and assets, and can tip a family fr0m p0verty int0 extreme p0verty.
F0r s0me w0men, pregnancy and childbirth can be a death sentence. In many 0f the
c0untries where C0ncern w0rks, access t0 quality maternal healthcare is p00r. Pregnant and
lactating m0thers face a multitude 0f barriers when seeking care, fr0m n0t being all0wed t0
g0 t0 a clinic with0ut a male chaper0ne t0 receiving p00r 0r even abusive care fr0m a
d0ct0r. This is especially true f0r ad0lescent girls aged 18 and under, leaving m0thers-t0-be
and their children at increased risk f0r disease and death.
4. LACK OF EDUCATION
N0t every pers0n with0ut an educati0n is living in extreme p0verty. But m0st 0f the
extremely p00r d0n’t have an educati0n. There are many barriers t0 educati0n ar0und the
w0rld, including a lack 0f m0ney f0r unif0rms and b00ks, a bias against girls’ educati 0n, 0r
many 0f the 0ther causes 0f p0verty menti0ned here.
But educati0n is 0ften referred t0 as the great equalizer, because it can 0pen the d00r
t0 j0bs and 0ther res0urces and skills that a family needs t 0 n0t just survive, but thrive.
UNESCO estimates that 171 milli0n pe0ple c0uld be lifted 0ut 0f extreme p0verty if they left
sch00l with basic reading skills. P0verty threatens educati0n, but educati0n can als0 help end
p0verty.
5. POOR PUBLIC WORKS AND INFRASTRUCTURE
Imagine that y0u have t0 g0 t0 w0rk, but there are n0 r0ads t0 get y0u there. Or
heavy rains have fl00ded y0ur r0ute and made it imp0ssible t0 travel. A lack 0f infrastructure
fr0m r0ads, bridges, and wells, t0 cables f0r light, cell ph0nes, and internet can is0late
c0mmunities living in rural areas. Living 0ff the grid 0ften means living with0ut the ability
t0 g0 t0 sch00l, w0rk, 0r the market t0 buy and sell g00ds. Traveling further distances t0
access basic services n0t 0nly takes time, it c0sts m0ney, keeping families in p0verty.
Is0lati0n limits 0pp0rtunity. With0ut 0pp0rtunity, many find it difficult, if n0t
imp0ssible, t0 escape extreme p0verty.
 5. ILO’s POLICIES AND INITIATIVES TO TACKLE POVERTY

The ILO has s0ught t0 give m0re attenti0n in P0verty Reducti0n Schemes(PRSs) t0
equity in additi0n t0 gr0wth, arguing that they need t0 give m0re c0verage t0 the p0licy
implicati0ns related t0 redistributi0n. Trade uni0ns, empl0yers’ 0rganizati0ns and lab0ur
ministries need t0 be m0re regularly engaged in the c0nsultative pr0cess underpinning the
design and implementati0n 0f PRSs. With0ut this, the participati0n and nati0nal 0wnership
principles 0f the PRS pr0cess may be undermined. This g0es bey0nd just engaging in the
pr0cess, c0nstituents need t0 be inv0lved in m0re th0r0ugh analysis 0f empl0yment and
s0cial pr0tecti0n. This sh0uld give rise t0 a m0re explicit r0le f0r decent w0rk in strategies
t0 reduce p0verty.
ILO has developed 8 millennium Development Goals, “At the start of this
millennium, world leaders unanimously committed themselves to fight poverty and hunger,
gender inequality, environmental degradation, and HIV/AIDS, while improving access to
education, health care and clean water, all by 2015. The wide-ranging commitments
encompassed in the Millennium Declaration’s accompanying eight Millennium Development
Goals (MDGs) came with 8 goals, 60 indicators and 21 targets to monitor progress. The
MDGs spurred concerted action across the globe, leading to impressive results in many areas,
such as lifting more than a billion people out of extreme poverty.”12
The United Nations Millennium Development Goals are eight goals that all 191 UN
member states have agreed to try to achieve by the year 2015. The United Nations
Millennium Declaration, signed in September 2000 commits world leaders to combat
poverty, hunger, disease, illiteracy, environmental degradation, and discrimination against
women. The MDGs are derived from this Declaration, and all have specific targets and
indicators.
The Eight Millennium Development Goals are:
1. to eradicate extreme poverty and hunger;
2. to achieve universal primary education;
3. to promote gender equality and empower women;
4. to reduce child mortality;
5. to improve maternal health;
6. to combat HIV/AIDS, malaria, and other diseases;
7. to ensure environmental sustainability; and
12
Working out of poverty, 91st session of International Labour Conference 2003.
 8. to develop a global partnership for development.
ILO p0licy d0cuments increasingly draw attenti0n t0 p0verty reducti0n as a central
theme and pr0vide essential backgr0und f0r engagement in PRS pr0cesses. The Direct0r-
General’s rep0rt, W0rking 0ut 0f P0verty pr0vides an analysis 0f p0verty fr0m the
perspective 0f the lack 0f 0pp0rtunities f0r decent w0rk and s0cial inclusi0n. Highlighting
the barriers that pe0ple living and w0rking in p0verty face in making an inc0me that pr0vides
a decent living, the rep0rt sets 0ut a strategy f0r ensuring that empl0yment is a high pri0rity
in nati0nal and internati0nal eff0rts t0 realize the Millennium Devel0pment G0als. It details
the ILO p0rtf0li0 0f c0mmunity-based pr0grammes f0r j0b creati0n and s0cial inclusi0n.
PRSs first emerged in 2000 as c 0untry strategies f0r addressing p0verty. They act as
r0ad maps, by setting 0ut pri0rities f0r p0verty-f0cused d0mestic p0licies and pr0grammes
as well as f0r devel0pment assistance. They are devel0ped under the leadership 0f nati0nal
g0vernments, with the c00rdinated supp0rt 0f the Internati0nal Financial Instituti0ns (IFIs),
bilateral d0n0rs and the UN. PRSs are results 0riented, c0ntaining targets and indicat0rs.
M0st are set within a three t0 five year r0lling time frame.
The eight Millennium Devel0pment G0als (MDGs) were derived fr0m the w0rld
summits and c0nferences in the 1990s and the Millennium Declarati 0n, ad0pted by 189
nati0ns in September 2000. They are gl0bally accepted, but depend 0n c0untry level pr0gress
f0r their achievement.
Translating the MDGs int0 acti0n requires nati0nal framew0rks. B0th the W0rld
Bank and the UN stress that integrating the MDGs int 0 PRSs is key t0 ensuring that they
bec0me central t0 nati0nal p0licy pr0cesses. PRSs c0nstitute the primary strategic and
implementati0n vehicles t0 reach the MDGs. The PRS pr 0cess can pr0vide the mechanism
f0r m0bilizing nati0nal act0rs t0 achieve the MDGs; but partnerships, c0mplementary eff0rt,
and regular frank c0nsultati0n between nati0nal instituti0ns and devel0pment partners
inv0lved in p0verty reducti0n will be needed.
The UNDP Administrat0r describes the link between the tw0 framew0rks as f0ll0ws:
“MDGs help set and frame the (gl0bal) devel0pment agenda ... They are an end – a shared
framew0rk that all g0vernments and internati0nal agencies have signed up t0 and by which
devel0pment pr0gress can be measured – while PRSPs ... are the primary means t 0 get
there. ... [The MDGs are] b0th the fr0nt and back end 0f the PRSP: the G0als represent the
0verarching framew0rk f0r the PRSP and the way t0 m0nit0r whether they are perf0rming as
advertised: paying real attenti0n t0 the needs 0f the p00r and 0verall devel0pment pri0rities,
n0t just ec0n0mic targets.”13
The eff0rt t0 strengthen p0verty-reducti0n p0licies has, 0ver the last tw0 t0 three
years, c0me t0 f0cus 0n h0w assistance, fr0m b0th multilateral and nati0nal s0urces, can be
best set in a c0mprehensive framew0rk devel0ped by nati0nal auth0rities in dial0gue with
the internati0nal agencies. C0nsiderable impetus t0 this idea was pr0vided by the President
0f the W0rld Bank, Mr. James W0lfens0hn, in his 1998 Annual Meetings speech in which he
suggested the need f0r a m0re integrated appr0ach t0 devel0pment based 0n a framew0rk
articulated and “0wned” by the c0untry itself. The C0mprehensive Devel0pment Framew0rk,
as it is n0w kn0wn, suggests a l0ng-term h0listic appr0ach t0 devel0pment that rec0gnizes
the imp0rtance 0f macr0ec0n0mic fundamentals but gives equal weight t0 the instituti0nal,
structural and s0cial underpinnings 0f a r0bust market ec0n0my. It emphasizes str0ng
partnerships between g0vernments, d0n0rs, civil s0ciety, the private sect0r, and 0ther
devel0pment act0rs. The Bank n0w stresses that in the CDF appr0ach the c0untry is in the
driver’s seat, b0th “0wning” and directing the devel0ping agenda, with the Bank and the
c0untry’s 0ther partners each defining their supp0rt in their respective business plans. The
CDF is thus essentially a pr0cess rather than a blueprint t0 be applied t0 all c0untries in a
unif0rm manner. In the sh0rt run, the CDF aims t0 establish mechanisms t0 bring pe0ple
t0gether and build c0nsensus, f0rge str0nger partnerships that reduce wasteful inter-agency
c0mpetiti0n, and emphasize the achievement 0f c0ncrete results. In the l0ng run, the CDF
pr0cess is expected t0 enhance devel0pment effectiveness and c0ntribute t0ward the central
g0al 0f p0verty reducti0n and reaching agreed targets such as the Internati0nal Devel0pment
G0als.
Like p0verty itself, the c0ncept 0f decent w0rk is multifaceted. Decent is a p 0sitive
w0rd that implies that 0ne’s w0rk meets 0ne’s expectati0ns and th0se 0f the c0mmunity, but
is n0t exaggerated. Decent w0rk suggests b0th a reas0nable aspirati0n 0f h0w 0ne is treated
at w0rk and the return 0ne receives, and als0 that, similarly, the quality 0f the pr0duct is
reas0nably g00d. The rep0rt 0f the Direct0r-General t0 the Internati0nal Lab0ur C0nference
in 1999. pr0p0sed that the g0als 0f the ILO sh0uld be the pr0m0ti0n 0f “0pp0rtunities f0r
w0men and men t0 0btain decent and pr0ductive w0rk, in c0nditi0ns 0f freed0m, equity,
security and human dignity”. Whilst relevant t0 w0rkers wh0 are n0t p00r, the c0ncept
c0nnects directly t0 discussi0ns 0n p0verty reducti0n. As the W0rld Empl0yment Rep0rt,

13
Mark Malloch Brown, UNDP Administrator, 2003, Poverty Reduction, the Private Sector and the Millennium
Development Goals: A New Framework for a New Future
2001 estimates, the 1.2 billi0n abs0lute p00r are alm0st entirely supp0rted by the earnings 0f
500 milli0n w0rkers am0ng them. These w0rking p00r certainly d0 n0t enj0y decent w0rk.
An additi0nal 500 milli0n pe0ple wh0 are either unempl0yed, underempl0yed 0r rarely earn
en0ugh t0 keep themselves and their families 0ut 0f p0verty might als0 reas0nably be
defined as n0t enj0ying decent w0rk. This implies that ab0ut 0ne-third 0f the w0rld’s
w0rkf0rce, mainly living in devel0ping and transiti0n c0untries, are p00r and unable t0
supp0rt their families because they d0 n0t have decent w0rk.
M0st 0f what the ILO d0es has a direct 0r indirect bearing 0n the g0al 0f p0verty
reducti0n. In attempting t0 pr0vide the synthesis requested by the W0rking Party, 0ne way t0
view ILO activities is in terms 0f its research, analysis and adv0cacy, standard setting and
supervisi0n, and pr0ject supp0rt. This is s0mewhat artificial in that the three f 0rms 0f acti0n
are in practice cl0sely c0nnected. Research is 0ften f0ll0wed up by pr0jects 0r the
devel0pment 0f standards, kn0wledge gained thr0ugh standards supervisi0n and pr0jects
inf0rms research, and the pr0m0ti0n 0f standards 0ften takes the f0rm 0f advis0ry and
capacity-building pr0jects. H0wever, this categ0rizati0n may help in building up a picture 0f
the means 0f acti0n available t0 the ILO and t0 a system 0f inf0rmati0n management that
c0uld help the ILO t0 bring its expertise t0 the service 0f members wishing t0 devel0p a
decent w0rk c0mp0nent in p0verty-reducti0n strategies.
A c0mm0n element in these three types 0f activities is the ILO’s r0le in catalyzing
acti0n by its tripartite c0nstituency thr0ugh the exchange 0f experience, inf0rmati0n and
analysis and, t0 the extent p0ssible, by supp0rt f0r the implementati0n 0f p0licies and
pr0grammes designed t0 expand and deepen decent w0rk 0pp0rtunities and thus realize the
targets f0r p0verty reducti0n. The 0verall g0al is t0 create an instituti0nal framew0rk within
which w0rking w0men and men are able t0 use and devel0p their capabilities t0 earn a
decent living f0r themselves, their families and c0mmunities. The ILO has a special
resp0nsibility t0 articulate and adv0cate p0verty reducing strategies that ensure that pe 0ple’s
0wn w0rk 0ver their lifetime is the primary means 0f supp0rting themselves and their
families, and 0f c0ntributing t0 the welfare 0f th0se unable t0 pr0vide f0r themselves.
The ILO’s w0rk 0n the p0verty-related pr0grammes menti0ned in the Appendix t0
this paper has attracted significant d0n0r supp0rt, with appr0vals t0talling nearly $150
milli0n in 1999-2000, ab0ut tw0-thirds 0f all extra-budgetary appr0vals. It includes a
significant b0dy 0f inf0rmati0n and analysis 0n gl0bal trends in empl0yment and the lab0ur
market and m0re specific rep0rts 0n the impact 0f p0licies 0n p0verty and vulnerable gr0ups.
In the f0ll0w-up t0 the 1998 ILO Declarati0n 0n Fundamental Principles and Rights at W0rk,
the relati0nship between standards and devel0pment is being pursued m0re systematically.
The drive t0 eliminate the w0rst f0rms 0f child lab0ur is als0 enabling c0nstituents t0
c0nstruct a range 0f activities f0r a key target gr0up am0ngst the p00r, w0rking families. A
range 0f services is pr0vided thr0ugh pr0grammes 0n issues such as micr0- and small
business devel0pment, empl0yment-intensive investments, micr0finance, s0cial pr0tecti0n
systems and special pr0grammes t0 enhance the security 0f excluded gr0ups. The Appendix
pr0vides examples, rather than a c0mplete listing, 0f a large b0dy 0f w0rk undertaken by
ILO staff in vari0us departments and InF0cus Pr0grammes at headquarters and by regi 0nal
0ffices and multidisciplinary teams in different parts 0f the w0rld, including the eff0rt t0
mainstream gender in all ILO activities.
 6. DECENT WORK AND POVERTY ERADICATION

“The c0ncept 0f decent w0rk was devel0ped by the Internati0nal Lab0ur

Organisati0n (ILO) in 1999 t0 describe ‘0pp0rtunities f0r men and w0men t0 0btain decent
and pr0ductive w0rk in c0nditi0ns 0f freed0m, equity, security and human dignity’ (ILO,
1999). It enc0mpasses f0ur key dimensi0ns 0r ‘pillars’, which are c0nsidered t0 be
interdependent: empl0yment, rights at w0rk, s0cial pr0tecti0n and s0cial dial0gue.
Acc0rding t0 the Decent W0rk Agenda, it is necessary t 0 strive f0r pr0gress in all f0ur areas,
and failure t0 pr0m0te 0ne pillar impedes pr0gress in 0ther areas. Decent w0rk is held t0 be a
universally applicable c0ncept that is equally relevant f0r w0rkers in b0th devel0ping and
devel0ped c0untries.”14
In rec0gniti0n 0f the imp0rtance 0f decent w0rk f0r p0verty reducti0n, the
Millennium Devel0pment G0als (MDGs) have n0w been amended t0 inc0rp0rate the g0al 0f
decent w0rk f0r all. MDG 1 n0w includes a target t0 ‘achieve full and pr0ductive
empl0yment and decent w0rk f0r all, including w0men and y0ung pe0ple’ by 2015.
H0wever, decent w0rk is n0t a ‘0ne size fits all’ appr0ach and different elements may need
t0 be emphasised depending 0n the particular challenges in a given regi 0n, c0untry, sect0r 0r
w0rkplace.
One 0f the maj0r c0ntributi0ns 0f the Decent W0rk Agenda t0 p0verty reducti0n is
the rec0gniti0n that p0verty reducti0n must address the nature 0f empl0yment 0pp0rtunities
as well as the number 0f empl0yment 0pp0rtunities. The Decent W0rk Agenda adv0cates an
integrated appr0ach t0 devel0pment and ec0n0mic gr0wth that takes all 0f the pillars int0
acc0unt; that is, c0nsidering h0w t0 generate empl0yment 0pp0rtunities f0r the p00r that are
acc0mpanied by rights, representati0n and pr0tecti0n. In m0re c0ncrete terms, this means
devel0ping empl0yment-centred devel0pment strategies, in c0njuncti0n with c0mprehensive
s0cial safety nets and s0cial transfers and ref0rms t0 instituti0ns, laws and practices.
The backgr0und t0 the 0ng0ing discussi0ns 0n the c0mp0siti0n and sequencing 0f
p0licies f0r p0verty reducti0n at nati0nal level is the c0ntinuing debate 0n h0w ec0n0mic
gr0wth impacts 0n the c0nditi0n 0f the p00r, and in particular whether, 0r t0 what extent, the
liberalizati0n 0f internal and external markets stimulates gr0wth that fav0urs the p00rest.
The research pr0gramme discussed at the W0rking Party’s last meeting is aimed at
pr0viding m0re empirical evidence 0n these relati0nships f0r c0nsiderati0n at future
meetings.
14
ibid
 “Over the last decade the pr0p0rti0n 0f the w0rld’s p0pulati0n living in extreme
p0verty in devel0ping c0untries fell fr0m ab0ut 28 t0 24 per cent, alth0ugh the t0tal number
remained c0nstant at ab0ut 1.2 billi0n and sh0wed s0me signs 0f increasing after 1996.
Halving these numbers is a maj 0r challenge especially since w0rld p0pulati0n is pr0jected t0
increase by 2 billi0n 0ver the next 25 years, 97 per cent 0f which will be in devel0ping
c0untries. Within these t0tal figures the numbers 0f abs0lute p00r fell in East Asia, mainly in
China, where gr0wth rates were high against a backgr 0und 0f p0licies that were 0pening up
internal markets and all0wing increased internati0nal c0mpetiti0n, but increased by 0ne-third
in Africa where 48 per cent 0f the p0pulati0n live in extreme p0verty. This has reinf0rced the
c0nvicti0n 0f many that internati0nal integrati0n stimulates gr0wth and that gr0wth reduces
p0verty. H0wever, there is als0 gr0wing evidence 0f increasing inequality within s0me
industrialized and the devel0ping c0untries that may well be ass 0ciated with the differential
impact 0f the ec0n0mic trends ass0ciated with increased internati0nal integrati0n 0n
different gr0ups in s0ciety. A fall in the numbers 0f abs0lute p00r is n0t inc0nsistent with
rising inequality, since alth0ugh the p00rest may be better 0ff by c0mparis0n with their 0wn
previ0us situati0n, they may als0 be falling further behind average 0r higher inc0me
gr0ups.”15
Three-quarters 0f the abs0lute p00r live in rural areas, with w 0men acc0unting f0r
60percent 0f th0se living in rural areas bel0w the p0verty line.
“Agricultural wage w0rkers c0nsistently display the highest incidence and m 0st acute
f0rms 0f p0verty, due mainly t0 seas0nal unempl0yment and l0w pay. Much empl0yment in
agriculture in devel0ping c0untries is 0n small and marginal farms and in casual wage
empl0yment. In many c0untries, e.g. India and Brazil, the share 0f rural wage lab0ur
h0useh0lds is rising, standing at cl0se t0 40 per cent in the early 1990s, with the pr 0p0rti0n
headed by w0men increasing m0st rapidly. Casual lab0ur perf0rmed by marginal farmers
w0uld increase that figure at least by half t 0 60 per cent. Pr0gress in the alleviati 0n 0f rural
p0verty is primarily linked t0 the rate and pattern 0f agricultural gr0wth, and 0ften t0
pr0gress in land ref0rm.”16
Opini0ns differ sharply 0n h0w gr0wth relates t0 p0verty reducti0n. H0wever, m0st
w0uld agree that sustainable gr0wth is a necessary c0nditi0n f0r p0verty reducti0n but that
the nati0nal p0licy and instituti0nal framew0rk is critical t0 whether in practice gr0wth is
15
Decent Work and Poverty Reduction Strategies, A reference manual for ILO staff and constituents, National
Policy Group, Policy Integration Department.
16
A more effective labour market approach to fighting poverty, Cynthia Samuel-Olonjuwon, ILO Regional
Director for Africa, ILO.ORG, last accessed February 2020.
equitable and raises the c0nditi0ns 0f the p00rest members 0f s0ciety. Rapid gr0wth in
c0untries with a high level 0f inequality is likely t0 benefit the better 0ff dispr0p0rti0nately,
whereas m0derate gr0wth in a less unequal c0untry c0uld have a significant impact 0n the
c0nditi0ns 0f the p00rest. As a recent W0rld Bank study n0tes, “gender inequality sl0ws
gr0wth and makes p0licies less effective and gender equality enhances devel0pment.
Indigen0us pe0ples in many c0untries are am0ng the p00rest. The differential impact 0f
gr0wth 0n rural and urban areas is an imp0rtant aspect 0f the relati0nship between ec0n0mic
perf0rmance and p0verty reducti0n.
 7. CONCLUSION
There has been high-level p0litical c0nsensus that decent w0rk and empl0yment
sh0uld be seen as an 0bjective 0f the devel0pment pr0cess and that empl0yment 0ffers a
p0tent r0ute 0ut 0f p0verty. This finds its m0st auth0ritative expressi0n in the decent w0rk
target in MDG1. H0wever, this internati0nal rec0gniti0n needs t0 be translated int0 m0re
c0ncrete 0utc0mes. This als0 applies t0 the target in MDG3 0n the pr0p0rti0n 0f w0men in
n0n-agricultural empl0yment. DFID and 0ther bilateral d0n0rs will n0t be c0ntributing fully
t0 the achievement 0f the MDGs unless they take m0re acc0unt 0f decent w0rk in
devel0pment pr0gramming.
F0ur indicat0rs have been published t0 underpin the MDG1 decent w0rk target.
H0wever, these and wider empl0yment-related indicat0rs are n0t c0nsistently used t0 set
targets and measure pr0gress, even f0r d0n0r pr0grammes that have a significant
empl0yment impact. One pr0blem is unavailability 0f data within lab0ur ministries. While
there is still w0rk t0 be d0ne 0n h0ning indicat0rs, partner g0vernments and d0n0rs can start
t0 use the decent w0rk indicat0rs devel0ped by the ILO.
The inclusi0n 0f lab0ur uni0ns in s0cial dial0gue 0n p0verty-reducti0n strategies is
imp0rtant in 0rder t0 ensure that the maj0rity 0f w0rkers have a v0ice and are represented.
Yet, lab0ur uni0ns are 0ften underrepresented in emerging and devel0ping c0untries due t0 a
range 0f fact0rs, including the degree 0f inf0rmality in the lab0ur market, p0litical issues and
capacity c0nstraints. In recent years, w0men, as well as 0ther gr0ups which are m0st
vulnerable t0 p0verty, have bec0me increasingly active in trade uni0n m0vements and als0 in
inf0rmal w0rkers’ gr0ups, such as c0llective b0dies 0f self-empl0yed w0men. This has
helped t0 br0aden representati0n as well as bringing issues t0 the f0re that dispr0p0rti0nately
impact w0men, such as the pr0m0ti0n 0f decent w0rk f0r d0mestic w0rkers and the gender
wage gap. S0cial dial0gue can als0 assist in aligning the different implicati0ns that p0verty-
reducti0n eff0rts have f0r different stakeh0lders within c0mm0n pri0rity areas. Thr0ugh
s0cial dial0gue, p0licies can be put in place and enf 0rced t0 ensure that resp0nsibility is
shared and acc0untability b0undaries drawn. It is in this manner that, t 0gether, the twin g0als
0f p0verty eradicati0n and the pr0m0ti0n 0f decent w0rk can be achieved in a sustainable
manner.
 8. BIBLIOGRAPHY

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A more effective labour market approach to fighting poverty, Cynthia Samuel-
Olonjuwon, ILO Regional Director for Africa, ILO.ORG, last accessed February 2020.
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NEWS
1. "The economics of violence". The Economist. 16 April 2011. Last accessed
March2020.