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PRESS STATEMENT:

INTERNATIONAL LABOUR CONFERENCE ADOPTS NEW CONCLUSIONS ON THE INFORMAL ECONOMY

The General Conference of the International Labour Conference of the International Labour Organisation (ILO) meeting in its 90th session in Geneva, 2002, has adopted a new approach to the informal economy. Firstly, the original concept of the "informal sector" which was developed by the ILO in the 1970s has now been broadened to the concept of the whole "informal economy".

The definition of the informal economy has been dealt with as follows:

"Although there is no universally accurate or accepted decription or definition, there is a broad understanding that the term 'informal economy' accommodates considerable diversity in terms of workers, enterprises and entrepreneurs with identifiable characteristics. ..... Workers in the informal economy include both wage workers and own-account workers. Most own-account workers are as insecure and vulnerable as wage workers and move from one situation to another. Because they lack protection, rights and representation, these workers often remain trapped in poverty."

(Clauses 3 & 4) Having clearly identified the kinds of workers found in the informal economy, the report goes on to identify various causes of the problems (Clauses 5 to 12) followed by means to address the informal economy and ways to remove barriers to entry to formal systems (Clauses 13 to 23).&

The main thrust of the conclusions is to promote the following policies and programmes:

  • "governments to provide an enabling framework at national and local levels to support representational rights" (Clause 23) This presents a big challenge, particularly with respect to the newly-recognised category of own-account workers, who normally find themselves outside of the scope of national labour legislation due to the fact that they are not in an employer-employee relationship.
  • "Public authorities should include such organisations in public policy debates, and provide them access to the services and infrastructure they need to operate effectively and efficiently and protect them from harrassment or unjustified or discriminatory eviction" (Clause 23) - a clear reference to the relationship between street vendors and local authorities, which has also not traditionally not been seen as a labour or work issue in the past.
  • "Policies and programmes should focus on bringing marginalised workers and economic units into the economic and social mainstream ..... Statistical and other research should be focused and designed to give effective support to these policies and programmes" (Clause 24)
  • "To increase job quantity and quality, emphasis should be placed on investing in people, especially the most vulnerable" (Clause 26)
  • "Poverty reduction strategies ..... should specifically address the problems in the informal economy" (Clause 26)
  • "Governments have a lead responsibility to extend the coverage of social security, in particular to groups in the informal economy which are currently excluded" (Clause 29)
  • "An important objective for both employers' and workers' organisations is to extend representation throughout the informal economy. Workers and employers in informal activities may wish to join existing trade unions and employers' organisations, or they may wish to form their own. Employers' and workers' organisations play a critical role in either strategy: extending membership and services to employers and workers in the informal economy, and encouraging and supporting the creation and development of new membership-based, accessible, transparent, accountable and democratically managed representative organisations, including bringing them into social dialogue processes." (Clause 31)
  • "The ILO approach should ..... be comprehensive involving the promotion of rights, decent employment, social protection and social dialogue .... (and) should focus on assisting member States in addressing governance, employment-generation and poverty-reduction issues" (Clause 35)
  • The efforts of the ILO should "be reflected in the programme and regular budget and technical assistance priorities and supported by adequate regular budget and extra-budgetary resources" (Clause 36)

The International Co-ordinator of StreetNet (international alliance of street vendors) Pat Horn participated in the Committee on the Informal Economy at the ILO Conference. StreetNet is very happy with the Conclusions on Decent Work in the Informal Economy. These conclusions are likely to provide a clear consensual framework for its policy discussions and organising work in relation to street vendors throughout the world.


Issued by: Pat Horn, StreetNet
(insert StreetNet and Geneva contact details as per the last statement)

N.B. The full conclusions are likely to be put up on the ILO website by next week (www.ilo.org), under the 90th session of the International Labour Conference.

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