ILO Local Development and Decent Work Resource

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

Publications of the International Labour Offi ce enjoy copyright under Protocol 2 of the Universal Copyright The designations employed in ILO publications and electronic products, which are in conformity with United Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever that the source is indicated. For rights of reproduction or translation, application should be made to the ILO on the part of the International Labour Offi ce concerning the legal status of any country, area or territory or of its Publications (Rights and Permissions), International Labour Offi ce, CH-1211 Geneva 22, Switzerland, or by authorities, or concerning the delimitation of its frontiers. email: [email protected]. The International Labour Offi ce welcomes such applications. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their All rights reserved. Neither the physical disc nor any portion of the material recorded hereon may be transferred authors, and publication or electronic production does not constitute an endorsement by the International Labour or reproduced, in any form or by any means, whether by sales, lease, rental, loan or gift, without the prior written Offi ce of the opinions expressed in them. consent of the ILO. The user accepts that the parties make this data available without warranty of any kind. The parties do not accept ILO responsibility for the validity or completeness of any data contained in this CD-ROM, including inaccuracies, Local Development and Decent Work Resource Kit errors or omissions or for any consequences arising from the use of such data or of the software contained in the Manila, International Labour Offi ce, 2006 CD-ROM. Neither the authors, nor the ILO or collaborating institutions shall be liable for damages or other claims and demands arising out of the use of the data. ISBN: 92-2-119421-3 / 978-92-2-119421-7 Reference to names of fi rms and commercial products and processes does not imply their endorsement by the International Labour Offi ce, and any failure to mention a particular fi rm, commercial product or process is not a sign of disapproval.

ILO publications and electronic products can be obtained from 19/F Yuchengco Tower, RCBC Plaza, Ayala Avenue, Makati City, Philippines, or direct from ILO Publications, International Labour Ofﬁ ce, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications and electronic products are available free of charge from the above address, or by email: [email protected] Visit our website: http://www.ilo.org/publns

International Labour Ofﬁ ce []Ó 2 Ô CONTENTS SEARCH PRINT HELP EXIT Copyright 38 PART 1 LOCAL DEVELOPMENT AND DECENTRALIZATION IN 4 MESSAGE FROM LMP THE PHILIPPINES AND THE DECENT WORK AGENDA 5 MESSAGE FROM LPP 75 PART 2 TERRITORIAL DIAGNOSIS AND ANALYSIS 6 ACKNOWLEDGEMENTS 120 PART 3 BROAD-BASED PARTICIPATION THROUGH SOCIAL 8 PREFACE DIALOGUE 11 ACRONYMS 159 PART 4 DESIGNING PROGRAMMES FOR LOCAL 13 OVERVIEW DEVELOPMENT AND DECENT WORK 14 What is the LDDW Resource Kit? 393 PART 5 TECHNICAL ISSUES IN IMPLEMENTATION, 18 How to Use the LDDW Resource Kit MONITORING AND EVALUATION 20 Ways to Search the LDDW Resource Kit 438 GLOSSARY 25 Resource Index

International Labour Ofﬁ ce []Ó 3 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

MESSAGE

Throughout the past two decades, decentralization participatory mechanisms to implement our own task is to promote, share and disseminate has been key to Philippine local legislature local development strategies. knowledge that will improve the effectiveness and and governance. Ever since the passage of effi ciency of our local offi cials in the planning, the Local Government Code in 1991, the local We are most grateful to the International Labour implementation and monitoring of projects. We will government units (LGUs), specifi cally the 1,502 Organization (ILO) for developing the Local be pleased to hold LDDW Resource Kit Orientation municipalities, are in the frontline of the battle Development and Decent Work (LDDW) Resource Workshops as one of our knowledge sharing against poverty. The League of Municipalities of Kit. The Kit is a collection of practical and easy- workshop series in the newly opened Mayor’s the Philippines (LMP) plays a vital role in rallying to-use tool designed to help and enable us, local Development Center. the municipalities towards governance reforms planners, to make better decisions and better work and the effi cient delivery of services to its people. with the local stakeholders to implement action Once again, we would like to congratulate and plans in our effort to promote socio-economic thank ILO for continuously providing relevant We are pleased to note that there have been development, reduce poverty and improve the and practical resources and products for the signifi cant recognitions by national and quality of life of our communities. benefi t of our municipalities. We look forward to international agencies of our role as a catalyst championing the use of the LDDW Resource Kit! of change. There have been momentous efforts The launch of the LDDW Resource Kit comes at from many LGU partners in providing us with a timely juncture. It coincides with our recently much needed resources, planning tools and launched Mayor’s Development Center, whose Hon. Ramon Guico National President League of Municipalities of the Philippines

International Labour Ofﬁ ce []Ó 4 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

MESSAGE

Since the enactment of the Local Government I welcome and commend the work of the we work together with local businesses, unions, Code of 1991, we local government offi cials International Labour Organization (ILO) and its and civil society organisations to bring that boost have been fazed with the daunting challenges of tripartite constituents in formulating the framing to all members of our communities. providing basic social services. the Local Development and Decent Work (LDDW) Resource Kit. It pleases me that ILO is piloting the application To empower our citizenry, we tasked ourselves to of the LDDW Resource Kit so that relevant and ensure that our constituents have decent work and This collection of practical, easy-to-use tools hands-on experience in using the tools can be gainful employment for them to contribute to the will help local development planners select and generated. overall development of their families and be assets review their decisions and choices, implement in their respectful communities. and re-evaluate action plans from an integrated The LPP and the rest of the Union of Local perspective, and bring decent work into local Authorities of the Philippines (ULAP) members In short, it is the fundamental responsibility planning frameworks and strategies. will benefi t from the LDDW Resource Kit. I look of every local government unit to promote forward to receiving the valuable, user-friendly opportunities for each household to grow It is important that we develop a vision where the tools and start our improved planning processes. fi nancially and socially. economy and society are intertwined, and where

Hon. Erico B. Aumentado National President League of Provinces of the Philippines

International Labour Ofﬁ ce []Ó 5 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEACKNOWLEDGEMENTS KIT FOR LOCAL DEVELOPMENT AND DECENT WORK: OBJECTIVES, USERS, CONTENT

The Philippine Local Development and Decent Alice Fernando, ILO Manila The National Policy Group, Policy Integration Work Resource Kit is the product of many efforts Gwen Fabros, ILO Manila Department, ILO, provided fi nancial and technical and contributions. Minette Rimando, ILO Manila support, coordinated the contributions of ILO Rowena Ferranco, ILO Geneva experts in Headquarters, Geneva, and conducted Overall Technical Guidance ILO-wide consultations with technical units. Amelita King Dejardin, National Policy Group, The ILO Sub-Regional Offi ce for Southeast Asia Policy Integration Department, ILO Geneva and the Pacifi c in Manila organized national-level Local Support activities in consultation with the Department The support extended by Mayor Raul Banias, Formulation and Conceptualisation of Labor and Employment, National Economic Concepcion, Iloilo province, and Mayor Enrico Simon White, International Consultant and Development Authority and the Department Elumba, La Castellana, Negros Occidental Amelita King Dejardin, ILO Geneva of Interior and Local Government; coordinated province, was crucial to the whole process. David Lamotte, ILO Manila the contributions of ILO experts and national Their insights on the Philippine local governance Aurelio Parisotto, ILO Manila consultants to the Resource Kit; and undertook and development context and needs were very Eugene Gonzales, National Consultant necessary consultations with the National Steering valuable. Committee and Technical Working Group of the Editing Philippine Decent Work Action Plan. Experts who drafted tools Maria Teresa Tatlonghari-Mateo Bing Baguioro, National Consultant, Philippines Sef Alba Carandang The Department of Labor and Employment, Rodolfo Baldemor, ILO Project Expert, Philippines Regional Offi ce VI coordinated closely with Jose Maria Batino, National Consultant, Design and Layout Local Government Units of Concepcion and La Philippines Jet Hermida, creativejet Castellana to organise local-level workshops, Linda Deelen, Specialist on Micro Finance, ILO visits and consultations; facilitated and organized Bangkok Organisational and Administrative Support meetings with provincial and regional government Martha Mildred Espano, ILO Project Expert, Lourdes Kathleen Santos-Cacho, ILO Manila offi cials and non-government institutions; and Philippines Jac Saez, ILO Manila provided overall support to local activities. Eugene Gonzales, National Consultant, Philippines

International Labour Ofﬁ ce []Ó 6 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

(occupation safety and health); Ann-Brit Nippierd Girlie de Guzman, National Consultant, Philippines David Lamotte (enterprise development); Shingo RESOURCE KIT FOR LOCAL DEVELOPMENT AND DECENT WORK: OBJECTIVES, USERS,(cooperatives, CONTENT employers’ activities); Huseyin Amelita King Dejardin, Specialist on Development Miyake (labour standards); Junko Nakayama Polat (indigenous populations); Shauna Olnay Policy, ILO Geneva (skills development); Aurelio Parisotto (enterprise (social dialogue); Giovanna Rossignotti (workers’ Gerardo Ramon Miguel Largoza, National development and employment); Diane Lynn organisation, enterprise development); William Consultant, Philippines Respall (programme ofﬁ cer for labour standards); Salter (working conditions); Jürgen Schwettman Domingo Nayahangan, ILO Project Expert, Temesgen Samuel (rights and labour standards); (cooperatives); Constance Thomas (labour Philippines Lourdes Kathleen Santos-Cacho (programme standards and equality); Corinne Vargha (decent Ma. Asuncion Ortiz, National Consultant, ofﬁ cer for employment); Ma. Concepcion work, labour standards) Philippines Sardaña (IPEC project); Carmela Torres (skills William Salter, Specialist on Working Conditions, development) ILO Geneva; Acting Director, TRAVAIL Asha d’Souza, Project Expert, ILO Geneva ILO Bangkok Mari Luz Quesada-Tiongson, National Consultant, Cris Donnges (employment-intensive Philippines infrastructure); Ginette Forgues (local development Manuela Tomei, Specialist on Fundamental strategies, health insurance); Alcestis Mangahas Principles and Rights, ILO Geneva (forced labour, child labour); John van Rijn Simon White, International Consultant (employment-intensive infrastructure); Tsuyoshi Marife Yap, National Consultant, Philippines Kawakami (occupational safety and health)

Experts who reviewed and commented on draft ILO Geneva tools, and provided technical inputs and references Girma Agune (skills development); Claude Akpokavie (workers’ activities); Roy Chacko ILO Manila (employers’ activities); Anne Drouin (social Anna Lucila Asanza (STEP project); Naomi security); Martin Gasser (local development, Turin Cassirer (gender equality); Mitchell Duran (IPEC Centre); Ann Herbert (agricultural sector); Slava project); Sylvia Fulgencio (programme ofﬁ cer for Korovkin (skills development); Katherine Landuyt social protection); Kenichi Hirose (social security); (labour standards and equality); Seiji Machida

International Labour Ofﬁ ce []Ó 7 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

PREFACE

This Local Development and Decent Work (LDDW) “Decent work” sums up the aspirations of locally, and ensuring equal access to opportunities Resource Kit was conceived and developed in men and women for “work in conditions of and benefi ts of development. As recognized by the framework of the Philippine National Action freedom, equity, security and human dignity”. the World Commission on the Social Dimension Plan for Decent Work (2002-2005) that was It is concerned with the quantity, quality and of Globalization, “decentralized approaches to adopted by the Philippine Government, employers’ sustainability of employment. In the perspective policy design and implementation are likely to be organizations and trade unions in 2001. of the International Labour Organization, “decent more effective based on better knowledge of real work” consists of multiple but interrelated situations and constraints, more participatory, The Philippines was among the fi rst countries to dimensions: adequate and secure incomes, fair closer to the needs and demands of people, and adopt “decent work and productive employment” terms and conditions of employment, a healthy easier to monitor.”2 as an explicit objective of its national development and safe working environment, social security, plans and as a central instrument of poverty freedom from forced labour, discrimination and In the Philippines, decentralization is a key reduction. By making “poverty reduction through child labour, respect for one’s rights at work, and feature of governance. Since the passage of the local development” one of its priorities, the voice and representation in decision-making over Local Government Code in 1991, the role of local Philippine National Action Plan for Decent Work matters affecting employment and the workplace. government units (LGUs) in promoting national sought to support these national development Achieving decent work calls for the integration of development has grown, and efforts from national goals and to show the importance of decent work economic and social objectives and policies. and international agencies to provide LGUs in poverty reduction and development. The Action with resources, planning tools and participatory Plan was also the Philippine contribution to the The emphasis given to development at the local mechanisms to formulate and implement ILO Global Decent Work Pilot Programme, which level is strategic and necessary. The key to development strategies have become signifi cant. aimed to demonstrate integrated and practical poverty reduction for communities facing endemic Using these tools, certain provinces, cities and approaches for promoting decent work in different poverty lies in improving economic opportunities, municipalities have taken the lead and emerged socio-economic contexts. 1 increasing the availability of basic social services as models of good governance. The delivery

1 The ILO Decent Work Pilot Programme, 2000-2005, included Bahrain, Bangladesh, Denmark, Ghana, Morocco, Panama and the Philippines. It supported national initiatives aimed at reducing decent work deﬁ cits, strengthened national capacity to integrate decent work into national policy, and demonstrated the utility of an integrated decent work-based approach to addressing different socio-economic issues. 2 World Commission on the Social Dimension of Globalization, 2004, A Fair Globalization: Creating Opportunities for All, Geneva: ILO

International Labour Ofﬁ ce []Ó 8 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

of social services, the effective participation of employment programmes. Economic development institutions, aiming at their full participation in citizens and visible improvements in well-being strategies tend to emphasize economic growth, policy formulation. The approach is premised have been achieved as a result. but, in practice, this has not automatically led to on the idea that if local economic development more and better jobs, improved livelihoods and is to bring sustainable benefi t and contribute How can success be replicated? The on-going poverty alleviation. Broader and integrated policies signifi cantly to poverty alleviation, it must be efforts of the major actors, most notably the that promote employment, social protection, rights inclusive and fair. Enterprises and markets League of Municipalities of the Philippines, the at work and social dialogue are necessary. The may underpin development, but divisive social model provinces and cities, as well as agencies LDDW Resource Kit aims to address these gaps. inequities and gender inequality must be and donors participating in the Philippines addressed for results to be sustainable. Development Forum (PDF)’s Working Group The LDDW Resource Kit is a collection of easy-to- on Decentralization and Local Governance, use tools, designed to help development planners The kit was developed in collaboration with local deserve the encouragement of the national and and practitioners make better choices, integrating users and national stakeholders. Among the international development community. decent work issues into local planning and partners have been the Department of Labour implementation frameworks. It deals with a wide and Employment (DOLE), the Department of the The promotion of productive and decent work range of topics concerning local economic growth, Interior and Local Government (DILG), together needs to be more effectively integrated into local job creation and job preservation, improvement with the Local Government Academy (LGA), and development strategies. While employment is of the quality of jobs, making local development the Social Policy Group of the National Economic widely recognized as a strategic way out of poverty, benefi t the poor, ensuring equal opportunities and Development Authority (NEDA). Vital local and is a major driver of political consensus at for all, protection of rights, and promotion of partners include mayors, local government staff, national and local levels, it is rarely an explicit voice, representation and social dialogue in local non-government organisation representatives and objective against which economic and social governance. the development practitioners of the municipalities strategies and targets are assessed and adopted. of Concepcion and La Castellana. Although the high number of working poor shows The uniqueness of the LDDW approach lies in that having a job is not enough, and while families its emphasis on the Decent Work policy agenda After initial consultations, a pilot application are equally concerned with the quality and that adds a social perspective to economic process was launched in Angono, Concepcion, sustainability of employment, the number of jobs development. The approach fosters social dialogue Dumaguete, La Castellana, Marikina and Guimaras created almost always receives sole attention in and capacitating actors to interact with public Province. The ILO is proud to have worked with

International Labour Ofﬁ ce []Ó 9 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

the authorities and stakeholders, indeed the be of use in other areas of the country as actors Although the LDDW Resource Kit was developed champions of these six local areas, without whom step forward to pursue economic and social with the Philippine development planners and the kit could not have been put together. development in their own localities. We expect practitioners as its primary audience, we believe that experience, good practice and know-how that the kit is relevant for local development efforts Having beneﬁ ted from a pilot application and in embedding decent work in local development in other developing countries. Many of the tools in practical inputs from local and national partners, would accumulate in the course of wider the kit were based or drawn from a much wider the ILO hopes that the LDDW Resource Kit would application of the kit. knowledge base and ILO experience in many countries.

Linda Wirth Azita Berar-Awad Director Director Sub-regional Ofﬁ ce for Employment Policy Department South-East Asia and the Paciﬁ c (Former Director, NPG Policy Integration Department)

International Labour Ofﬁ ce []Ó 10 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

ACRONYMS

AI Accessibility Indicators LCE Local Chief Executive AIP Annual Investment Plan LD Local Development A&R Assumptions and Risks LDC Local Development Council BDS Business Development Service LDDW Local Development and Decent Work CBMS Community Based Monitoring System LED Local Economic Development CBO Community Based Organisation LESD Local Economic and Social Development CBT Community Based Training LFC Local Finance Committee CCG Corporate Community Groups LGC Local Government Code CES Community Enterprise System LGPMS Local Governance Performance Management System CSO Civil Society Organisation LGU Local Government Unit DA Department of Agriculture LQ Location Quotient DILG Department of the Interior and Local Government LSB Local Special Bodies DME Design, Management and Evaluation MBN Minimum Basic Needs DSWD Department of Social Welfare and Development MBN-CBPIMS MBN-Community-Based Poverty Indicator and Monitoring DTI Department of Trade and Industry System EIIP Employment-Intensive Infrastructure Programs MDG Millennium Development Goals GSIS Government Social Insurance System MOA Memorandum of Agreement ICT Information Communication Technology MoV Means of Veriﬁ cation IKSPs Indigenous Knowledge Systems and Practices MPDC Municipal Planning and Development Coordinator ILO International Labour Organization MSEs Micro and Small Enterprises IMT Intermediate Means of Transport NAPC National Anti-Poverty Commission IPs Indigenous Peoples NEDA National Economic and Development Authority IPRA Indigenous Peoples Rights Act NGO Non-Government Organisation IRA Internal Revenue Allotment NIPAS National Integrated Protected Areas System IRAP Integrated Rural Accessibility Planning ODA Ofﬁ cial Development Assistance I-WEB Improve your Working Environment and Business

International Labour Ofﬁ ce []Ó 11 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEODL KITOpen FOR and Distance LOCAL Learning DEVELOPMENT AND DECENT WORK:RDC OBJECTIVES, Regional USERS, Development CONTENT Council OFW Overseas Filipino Worker SIYB Start and Improve Your Business OSH Occupational Safety and Health SSS Social Security System OVI Objectively Viable Indicators TEP Transition Enterprise Projects PDF Philippines Development Forum UNDP United Nations Development Programme P/E Ratio Population/Employment Ratio VCA Value Chain Analysis PESO Public Employment Service Ofﬁ cers WIND Work Improvement in Neighborhood Development PPP Public Private Partnerships WISE Work Improvement in Small Enterprises POs Partner Organisations WISH Work Improvement for Safe Home PRA Participatory Research Approach

International Labour Ofﬁ ce []Ó 12 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

WHAT IS THE LDDW RESOURCE KIT?

The Local Development and Decent Work (LDDW) The LDDW Resource Kit responds to these WHO CAN USE THE LDDW RESOURCE KIT? Resource Kit is a collection of practical and easy- challenges in the following ways: to-use tools that are designed to help and enable The Resource Kit has been designed primarily local planners, decision-makers and development • By highlighting the decent work dimensions of for “local planners and local development practitioners to make decisions and implement economic and social development and poverty practitioners”. The term “local development actions. These are resources based on local reduction at local level, and showing ways of practitioners” encompass all local actors who help development knowledge and practices in the preserving, improving and creating employment design and shape the development priorities and Philippines and other countries. opportunities. directions of the locality. • By encouraging the integration of social and The purpose of this Resource Kit is to ADD VALUE economic issues and objectives into local and Specifi cally, the Resource Kit has been prepared to current planning frameworks in the country regional planning processes that focus on for three types of users: particularly at local levels, by addressing two key poverty reduction and decent work. challenges that confront local decision-makers, • By encouraging participatory planning • Local Government Unit staff: Mayor, Local local governments, communities and their processes and social dialogue that engage Government Unit Councillors (Sangguniang organisations, namely: all sectors of society and give equal voice to Bayan), Local Development Councils and diverse interest groups in the community – the Committees, Local Economic and Development • The need to explicitly and more deliberately poor, women and men, indigenous peoples, Offi cers, Local Poverty Reduction Action address the problems of poverty, social ethnic and religious minorities, and people with Offi cers, Local Planning Offi cers, and other exclusion and problems of work in local disabilities. Development Workers development strategies. • By supporting local governments, local • Departmental staff located in regional and • The need for local, regional and national organisations of workers and employers, provincial offi ces working at the municipal and planning frameworks to converge more closely entrepreneurs and producers, and civil society barangay level to ensure coherence and integration among and community organisations in their efforts • Professional staff located in public, private, priorities, strategies, and programmes across to promote economic development, reduce labour and community organisations at local policy areas and on different levels. poverty and improve the quality of life of their level (i.e., municipality and barangay) constituents at local level.

International Labour Ofﬁ ce []Ó 14 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEIn addition to these KIT people, FOR othersLOCAL may DEVELOPMENT use the of local AND development DECENT knowledge WORK: and OBJECTIVES, tools found in USERS,• Identify CONTENT key local employment challenges Resource Kit, among them: the Resource Kit most useful. and possible ways to improve and sustain local employment opportunities, or to create • Planning offi cials located at provincial, regional HOW WILL THE LDDW RESOURCE KIT an environment that creates more local and national levels. HELP? opportunities • Non-government organisations (e.g., farming • Effectively engage all sectors of the local associations, fi shing associations, women groups, First of all, the relevance and usefulness of each community (especially the voiceless and chambers of commerce, labour unions). tool in this kit depends on two key factors: (1) the marginalised sectors of the community) in local • Regional and Provincial Development political and institutional context within which local economic and social development Committees. planners, local leaders and other stakeholders • Make practical and strategic decisions, and • Local Government Academy, Department of the plan, negotiate, discuss and decide local priorities choose and design development strategies, Interior and Local Government. and actions; and (2) the roles and mandate of actions and projects the different governmental and non-governmental • Implement and evaluate actions and projects The Resource Kit may also be harnessed by local institutional actors concerned. • Mobilize external support and resources development stakeholders, such as the Philippines • Draw up integrated, feasible and strategically Development Forum. The Philippines Development The tools contained in this Resource Kit help local oriented land use plans, infrastructure plans, Forum or PDF is the primary mechanism of the planners and local development practitioners to: and whatever other plans are required of them. national government for facilitating substantive • Pass resolutions in their Sanggunian at the policy dialogue among stakeholders on the • Appreciate and use decent work as a municipal and provincial levels, which have a country’s development agenda. Participated development goal and framework for assessing practical and strategic benefi t to local economic by representatives from national government local needs, diagnosing problems and charting and social development. agencies and the international development development strategies • Engage external agencies, such as Regional partners’ community, it also serves as a process for • Recognise the inter-linkages between poverty Development Councils, and National developing consensus and generating commitments and the lack of decent work Government line agencies, in development among different stakeholders on various thematic • Assess and respond to local development needs matters concerning their local community. concerns through working groups. The members and opportunities that support employment of the PDF’s Working Group of Decentralization and creation, promote social inclusion, and reduce Local Government in particular may fi nd the wealth vulnerability and inequality,while promoting economic development

International Labour Ofﬁ ce []Ó 15 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETYPE OF TOOLS KIT FOR LOCAL DEVELOPMENTTOPICS AND COVERED DECENT BY WORK: THE TOOLS OBJECTIVES, USERS,Part 3: Broad-based CONTENT Participation through Social Dialogue The Resource Kit contains four (4) types of tools: The tools of the LDDW Resource Kit cover a wide Contains tools that promote a broad-based range of topics, local issues and concerns. They participatory approach to local development INFORMATION TOOL: Practical concise information are based on the Decent Work concept. It is planning and decision-making, with a special on specifi c topics of relevance to the local therefore important for all users of this Kit to read emphasis on the value of social dialogue. development practitioner. and discuss the tools in Part I. Part 4: Designing Programmes for Local ASSESSMENT TOOL: List of questions or data to The LDDW Resource Index lists the titles of the Development and Decent Work be collected, or guides for measuring and scoring tools and gives a very brief description of the Covers the technical areas of local development that can be applied by the local development content of each tool. interventions, especially those that concern practitioner to assess specifi c local economic and employment and decent work as a whole. The social needs, capacities and opportunities. Part 1: Local Development and Decentralisation in tools deal with substantive policy and strategic the Philippines and the Decent Work Framework questions about the quantitative and qualitative ACTION TOOL: Practical ideas and suggestions Provides the framework of the Local Development aspects of decent work – employment creation to help local development practitioners translate and Decent Work, which is the basis of the whole and promotion, incomes, working conditions and visions and plans into effective local actions and Resource Kit. It is therefore very important to go occupational health and safety, social protection, strategies. through this part in order to understand the other and special issues such as child labour. The tools tools, their value to local development and how are presented under several sections. These CASE STUDIES: Brief descriptions of examples of they link to each other. sections are: good practices of local development incorporating Decent Work agenda from within the Philippines Part 2: Territorial Diagnosis and Analysis Section One: Strengthening Local Economic and abroad. Consists of general diagnostic and assessment Growth tools, which are useful for doing a general Section Two: Creating More Jobs (Employment diagnosis of the economic, social and institutional Opportunities) situation and work issues of the community. Section Three: Making Local Development Benefi t the Poor

International Labour Ofﬁ ce []Ó 16 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCESection Four: Improving KIT FOR the QualityLOCAL and DEVELOPMENT Conditions AND DECENT WORK: OBJECTIVES, USERS, CONTENT of Work and Life Section Five: Promoting Equality, Rights and Voice

Part 5: Technical Issues in Implementation, Monitoring and Evaluation Provides tools about common technical issues in implementing local development actions and projects. Implementation issues include impact monitoring and evaluation, project design, coordination and partnerships, and resource mobilisation.

International Labour Ofﬁ ce []Ó 17 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

HOW TO USE THE RESOURCE KIT

1. The Resource Kit has been designed to be 3. What is decent work, and how does it • Tool 5.01 describes the logical framework for used in a fl exible manner. The tools cover a contribute to poverty reduction and local problem identifi cation and diagnosis, and for wide range of topics and questions. Some of development? In order to better understand the selecting ways to address the problem. them will be much more relevant to certain decent work framework, the rationale behind • Part 2 contains assessment tools for analysing localities and groups of people. Local planners the tools and how the tools complement each trends in poverty and decent work outcomes. and development practitioners can “pull out” other, users are encouraged to read Part 1: These will indicate what and where the and use a tool that is most relevant to the Local Development and Decentralisation in the problems are, and where further investigation specifi c issue or need they are dealing with. Philippines and Decent Work. The tools in Part might be necessary to obtain a better diagnosis The Resource Index gives an overview of the 1 will also help local planners and development of the problem. topics and questions that the tools address. practitioners to use the Resource Kit more • Tool 4.04.03 helps diagnose local livelihoods in effectively. poor communities 2. However, users should not lose sight of • Tool 4.03.06.2 helps assess social vulnerability, the integrated framework that binds the 4. The fi rst task in planning, especially in strategic which should be looked into when assessing tools together. The collection of tools has planning for local development, is problem employment and poverty. been designed to assist local planners and diagnosis and situation analysis. There are development practitioners to look at the several methods and steps that local planners 5. Part 4 of the kit covers the technical areas of multiple, inter-related aspects of a particular and development practitioners apply to do this decent work in the context of poverty reduction issue or problem. Users are encouraged to task. The kit does not contain an exhaustive and local development. Some of these tools are apply an integrated approach, which is one set of diagnostic tools for local development more relevant than others depending on the that recognises the inter-linkages between planning. However, users can consult the problem at hand and the priority objectives that social and economic issues, balances social following relevant tools: users have identifi ed. The results of problem and economic objectives, and strengthens the identifi cation, diagnosis and prioritisation will role of decent work in poverty reduction and indicate the most relevant topics and tools. overall local development.

International Labour Ofﬁ ce []Ó 18 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCE6. In formulating KIT general FOR and LOCAL sectoral plansDEVELOPMENT (such 7. TheAND tools DECENT in Part 3 are WORK: relevant forOBJECTIVES, organising USERS, CONTENT as municipal comprehensive development and facilitating participation and social plans, land use plans, investment plans, dialogue, which are indispensable processes in infrastructure and agricultural plans), the successful local development. ﬁ ndings of assessments of poverty, decent work, local economy and livelihoods are 8. Part 5 tools are relevant for concerns a valuable guide in deciding on priorities, about developing local development plans, interventions, and resources allocation. In this implementation and resource mobilisation. regard, the tools mentioned in item number 4 above are relevant.

International Labour Ofﬁ ce []Ó 19 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

WAYS TO SEARCH THE RESOURCE KIT

There are several ways to ﬁ nd the tools/information you need:

Resource Index – lists the tools which can be Introduction to each Part and Section - describes identiﬁ ed and located through their tool number. the relevance and usefulness of the tools The tool number gives the Part and Section in contained in a particular Part or Section. which the tool is located Other tools in the same Section or Part - it is always Cross-references – at the end of each tool, there is helpful to look at the other tools in the same a list of other relevant or complementary tools in Part or Section because they deal with the same the Resource Kit subject. The exception is Section 5 of Part 4, which deals with different special issues Tabs for each Part of the Kit – from the tabs at the top left of each page, there are drop down menus Search function – the Search button that is visible that contain the tools belonging to each Part of the on every page of the Resource Kit will allow users Resource Kit to search for any word or phrase. All occurrences of the exact word/phrase being search will be highlighted throughout the entire kit

International Labour Ofﬁ ce []Ó 20 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

NAVIGATING THE RESOURCE KIT

MAIN PAGE SECTIONS PAGE

On the main page, click on the navigation buttons at the bottom On the section pages, click on the big arrow to go to the next to perform the indicated tasks page

Contents: go to the Contents page Click to go to the Contents page Search: activates the Find or Search function Print: activates the Print function Help: for help on navigating through the Resource Kit Exit: closes the Resource Kit

International Labour Ofﬁ ce []Ó 21 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

NAVIGATING THE RESOURCE KIT

TABLE OF CONTENTS RESOURCE INDEX

Click on a part or section title to go to that particular part or Click on a tool title listed in the Resource Index to go to that section in the Resource Kit particular tool

Click on the big arrow to go to the next page

International Labour Ofﬁ ce []Ó 22 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

NAVIGATING THE RESOURCE KIT

GENERAL PAGE NAVIGATION

• Click on the section navigation tab to activate the drop down • Click on a hyperlink to to browse that link on your internet menu for a particular section of the Resource Kit browser

• Click on the ILO logo to go to the ILO website • Click on a related tool in the Cross-References section to go to that particular tool • Click on the left/right arrows Ó Ô to go to the previous/next page Click on the left/right circled arrows [ ] to go to pages that were already viewed

• Click to perform the indicated tasks

International Labour Ofﬁ ce []Ó 23 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

CONTENTS OF A TOOL

Each tool has the following parts:

Tool Number – consists of the Part, Section (if any) and sequence of the tool

Type of Tool – a tool can be an Information Tool, Assessment Tool, Action Tool or Case Studies

Title – reﬂ ects the topic of the tool

Objective – what is the tool about, in what way is it useful

Body of the Tool – main contents

Acknowledgements – this appears when a tool has been taken from a particular source and thus has to be cited

Relevant resources – other sources where more information or tools can be obtained

Cross-references – other tools in the Resource Kit that are directly relevant to the subject of the tool at hand; in principle, most but not all the tools within the same Section or Part are inter-related.

International Labour Ofﬁ ce []Ó 24 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCE INDEX

PART 1: LOCAL DEVELOPMENT AND DECENTRALISATION IN THE PHILIPPINES AND THE DECENT WORK AGENDA

TOOL NUMBER TITLE AND BRIEF DESCRIPTION

1.01 Local Development and Decent Work Approach: An Overview INFORMATION TOOL: Presents an overview of the Local Development and Decent Work approach, on which this whole Resource Kit is based. It is recommended that every user of this kit should go over this Tool.

1.02 The Decent Work Framework INFORMATION TOOL: Introduces the concept of decent work, its relevance to local development and the 10 dimensions of decent work; this tool includes an overview of the 4 strategic ways to achieve decent work, and how these are related to local development.

1.03 Local governance and decentralisation: some key concepts INFORMATION TOOL: Explains the concepts of local governance and decentralisation, which are useful for understanding the setting in which local decisions are made, and for understanding other tools in this Resource Kit. Also gives some guidelines for determining the magnitude of decentralised governance that exists in a particular territory in any given country.

1.04 Decentralisation and local development in the Philippines INFORMATION TOOL: Describes the legislative framework for decentralized planning and local development in the Philippines; identiﬁ es potentials and constraints under the current Local Government Code; and highlights recent policies and attempts at promoting sub-national regional development, which goes beyond the physical boundaries of Local Government Units (LGUs).

1.05 Ingredients for successful local economic and social development INFORMATION TOOL: Highlights some of the essential ingredients that underpin successful local development.

International Labour Ofﬁ ce []Ó 25 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEPART 2: TERRITORIAL KIT FOR DIAGNOSIS LOCAL DEVELOPMENTAND ANALYSIS AND DECENT WORK: OBJECTIVES, USERS, CONTENT

TOOL NUMBER TITLE AND BRIEF DESCRIPTION

2.01 Territorial diagnosis ASSESSMENT TOOL: Gives practical guidelines on information collection and suggests the types of information that may be relevant for creating a local area proﬁ le, and in assessing a territory’s opportunities and threats.

2.02 How to measure and monitor decent work gaps at local level ASSESSMENT TOOL: For selected dimensions of decent work, gives a checklist of information requirements, suggests relevant Philippine statistics and MBN indicators, and cites speciﬁ c Assessment Tools in this kit for identifying and monitoring “decent work gaps”.

2.03 Assessing your local economy ASSESSMENT TOOL: Suggests practical activities and measurements that can be used to assess the local economy. It uses simple explanations that can be understood by people who have no background in economics.

2.04 Value chain analysis INFORMATION TOOL: Gives a general description of Value Chain Analysis and some examples of how it can be applied to some products.

2.05 Integrated Rural Accessibility Planning (IRAP) INFORMATION TOOL: Describes the IRAP methodology, which is used by LGUs in the Philippines for assessing the access of communities and families to basic goods, services and facilities.

International Labour Ofﬁ ce []Ó 26 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEPART 3: BROAD-BASED KIT FOR PARTICIPATION LOCAL DEVELOPMENT THROUGH SOCIAL AND DIALOGUE DECENT WORK: OBJECTIVES, USERS, CONTENT

TOOL NUMBER TITLE AND BRIEF DESCRIPTION

3.01 The role of key stakeholders in local development INFORMATION TOOL: Highlights the importance of broad-based participation in local development, and suggests the roles of government, private sector and business community, worker organisations, CBOs and NGOs, and external development agencies.

3.02 The added value of social dialogue INFORMATION TOOL: Explains what “social dialogue” is and how it adds value to local development processes.

3.02.1 Assessing local social dialogue institutions and processes ASSESSMENT TOOL: A checklist of questions for assessing the strengths and weaknesses in the capacity of the community to engage in meaningful social dialogue and participatory planning processes.

3.02.2 Tips for improving collaboration and social dialogue in local development ACTION TOOL: A tool for local planners and development practitioners, it describes the critical factors in the area that affect successful collaboration and social dialogue among local stakeholders. By looking at these factors, one can assess the quality of collaboration in the area and identify ways of facilitating and improving it.

3.03 What unions and worker organisations can do to promote local development ACTION TOOL: A tool that is meant for trade unions and other worker organisations, it suggests some actions that these organisations can take to promote local development.

3.04 Techniques and approaches to better negotiations by indigenous peoples (and other marginalised sectors) ACTION TOOL: Suggests ways of how indigenous peoples organisations (and other marginalised sectors) and representatives can effectively express their concerns in local development planning. Also addresses LGUs and suggests what they can do to ensure the participation of indigenous peoples’ organisations in the local development process.

International Labour Ofﬁ ce []Ó 27 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETOOL NUMBER KIT FOR LOCAL DEVELOPMENT AND DECENT TITLE WORK: AND BRIEF OBJECTIVES, DESCRIPTION USERS, CONTENT

3.05 Community mobilisation strategies ACTION TOOL: Successful local development strategies depend on the support, commitment and contributions of the different members of the community. How do local planners and leaders mobilise community support and participation? This tool identiﬁ es seven key elements of a good community mobilisation strategy.

3.06 Advocacy and representation in local development processes ACTION TOOL: A tool that is meant for LGUs and other local stakeholders, it describes the process of “social justice advocacy” and lists the necessary knowledge, skills and attitudes of a good “social justice advocate”.

International Labour Ofﬁ ce []Ó 28 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEPART 4: DESIGNING KIT FOR PROGRAMMES LOCAL DEVELOPMENT FOR LOCAL DEVELOPMENT AND DECENT AND DECENT WORK: WORK OBJECTIVES, USERS, CONTENT

TOOL NUMBER TITLE AND BRIEF DESCRIPTION

Section One: STRENGTHENING LOCAL ECONOMIC GROWTH

4.01.01 Strategies for making your local economy grow ACTION TOOL: Describes nine practical strategies that local planners and development practitioners can apply to develop their economies. There is no single approach that addresses all concerns, but local leaders could examine the local situation and priority issues, and assess which strategies are most suitable.

4.01.02 Tips for mobilising private sector investments for local development ACTION TOOL: Describes practical ways for engaging and attracting private investments into the local economy.

4.01.03 The role of cooperatives in local development INFORMATION TOOL: Gives a general description of cooperatives and the main ways that they could promote local development, with two relevant Philippine examples.

4.01.04 Short case studies in local economic development CASE STUDIES: Gives a brief description of four successful cases in local development and main lessons.

4.01.05 Some examples of Philippine planning experiences – clustered planning CASE STUDIES: Describes cases where some municipal LGUs have banded together to do “clustered planning”.

International Labour Ofﬁ ce []Ó 29 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETOOL NUMBER KIT FOR LOCAL DEVELOPMENT AND DECENT TITLE WORK: AND BRIEF OBJECTIVES, DESCRIPTION USERS, CONTENT

Section Two: CREATING MORE JOBS (EMPLOYMENT OPPORTUNITIES)

4.02.01 Approaches to local job creation ACTION TOOL: Gives a general overview on the range of job creation strategies that can be used in local communities.

4.02.02 Creating local jobs through small enterprise development ACTION TOOL: Suggests strategies for developing and strengthening small enterprises.

4.02.03 Creating local jobs through employment-intensive infrastructure programmes INFORMATION TOOL: Introduces the employment potential of labour-based, equipment supported (LBES) technology in infrastructure development.

4.02.04 Creating local jobs through worker cooperatives INFORMATION TOOL: Deﬁ nes worker cooperatives (owned and managed by workers) and gives an overview of how worker cooperatives can create and preserve local jobs.

4.02.05 Skills development and employability INFORMATION TOOL: Discusses the importance of orienting local skills development strategies towards employability and key competencies.

4.02.06 Community-based training approach ACTION TOOL: Describes the steps in a community-based training approach, and presents an example of a project in Mindanao that uses this approach.

4.02.07 The Start and Improve Your Business (SIYB) Program INFORMATION TOOL: Describes the goals, history, implementation strategy, and components of the SIYB Program, a management-training program with a focus on starting and improving micro and small businesses as a strategy for creating more and better employment in developing economies and economies in transition.

International Labour Ofﬁ ce []Ó 30 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETOOL NUMBER KIT FOR LOCAL DEVELOPMENT AND DECENT TITLE WORK: AND BRIEF OBJECTIVES, DESCRIPTION USERS, CONTENT

Section Three: MAKING LOCAL DEVELOPMENT BENEFIT THE POOR

4.03.01 Who are the poor? What does it mean to be poor? INFORMATION TOOL: Clariﬁ es the concept of poverty: what are its dimensions and how is it measured? How is poverty related to inequality and social exclusion? The concept of poverty used by local governments and leaders determines: how we analyse poverty, whom we consider as poor, what poverty eradication goals and targets we set, and what strategies and policies we adopt for eradicating poverty.

4.03.02 Relevance of “decent work” to local poverty reduction: diagnosis and action INFORMATION TOOL: Explains how a “decent work” perspective improves poverty diagnosis and, therefore, planning poverty reduction interventions at the local level.

4.03.03 Analysing livelihoods of poor communities and areas ASSESSMENT TOOL: Introduces the sustainable livelihoods framework for understanding how livelihoods develop and for designing ways to support livelihood strategies especially of people living in poverty. Describes methods that can be used to analyse livelihoods.

4.03.03.1 Guidelines for supporting livelihoods of poor communities ACTION TOOL: Provides guidelines and for supporting livelihoods especially of those who live in poverty.

4.03.04 Local poverty monitoring and target-setting – the Philippine MBN approach INFORMATION TOOL: Presents the main features of the MBN Approach and the indicators that have been used by LGUs to monitor poverty and set priorities and targets for reduced poverty.

4.03.05 Problems of the informal economy INFORMATION TOOL: Clariﬁ es the scope of the informal economy and explains why people in the informal economy are often poor, disadvantaged and vulnerable.

International Labour Ofﬁ ce []Ó 31 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETOOL NUMBER KIT FOR LOCAL DEVELOPMENT AND DECENT TITLE WORK: AND BRIEF OBJECTIVES, DESCRIPTION USERS, CONTENT

4.03.05.1 Strategies for improving incomes and employment in the informal economy ACTION TOOL: Identiﬁ es the broad types of strategies that local governments and local institutions can implement in order to improve incomes and employment conditions in the informal economy.

4.03.06 Social protection from risks: what and why INFORMATION TOOL: Explains basic concepts of risks, vulnerability and social protection, and how social protection contributes to income security, preservation and creation of employment, and poverty reduction at the local level.

4.03.06.1 Developing social protection in your local community ACTION TOOL: Provides a framework for planning local strategies for strengthening social protection, especially for those exposed to high risks.

4.03.06.2 Assessing social risks and vulnerabilities in the local community ASSESSMENT TOOL: Guides local planners and development practitioners in identifying risks, and assessing which groups in the local community face the highest risk and are most vulnerable. Gives an overview of types of risks, and suggests indicators for assessing risks and vulnerability.

4.03.06.3 Providing better social protection for women ACTION TOOL: Gives information on women-speciﬁ c issues with respect to social protection, suggests ways of incorporating these in local initiatives and ways that local women can also help to reduce their vulnerabilities.

4.03.06.4 Extending social protection to local communities ACTION TOOL: Guides implementation and monitoring of strategy and local measures by giving tips, practical ideas.

4.03.06.5 Sample of a community survey for health micro-insurance ASSESSMENT TOOL: Health risks are among the most common risks to income, and health insurance is one of the most important forms of social protection. This tool is an example of a survey questionnaire for determining the need and capacity for a health micro-insurance scheme.

International Labour Ofﬁ ce []Ó 32 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETOOL NUMBER KIT FOR LOCAL DEVELOPMENT AND DECENT TITLE WORK: AND BRIEF OBJECTIVES, DESCRIPTION USERS, CONTENT

4.03.07 Assessing the potential for local microfi nance ASSESSMENT TOOL: Helps local planners and development practitioners assess the demand and supply of fi nance services in the area, and assess whether a micro-fi nance scheme is a real need.

4.03.07.1 Improving local access to fi nancial services ACTION TOOL: Gives an overview of micro-fi nance and two most important fi nancial services – savings and loans.

Section Four: IMPROVING THE QUALITY AND CONDITIONS OF WORK AND LIFE

4.04.01 Overview of the key elements of job quality INFORMATION TOOL: Introduces the concept of “job quality” and its relevance to local economic and social development. Brieﬂ y explains the key elements of job quality – working conditions, work environment, health and safety at the workplace.

4.04.01.1 How to assess job quality in work places and enterprises ASSESSMENT TOOL: Provides speciﬁ c guidelines for assessing needs and aspirations of workers and employers particularly with regards to decent work dimensions.

4.04.01.2 Twelve ways to improve local jobs ACTION TOOL: Suggests broad types of actions that local planners and development practitioners can do to improve the quality of local jobs.

4.04.02 Improve working conditions and productivity of small enterprises ACTION TOOL: Based on experiences in many countries, including the Philippines, presents the Work Improvement in Small Enterprises (WISE) method, which shows practical, low-cost and effective ways of improving working conditions and productivity in small enterprises.

International Labour Ofﬁ ce []Ó 33 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETOOL NUMBER KIT FOR LOCAL DEVELOPMENT AND DECENT TITLE WORK: AND BRIEF OBJECTIVES, DESCRIPTION USERS, CONTENT

4.04.02.1 Simple, low-cost ways of improving working conditions in the “informal sector” ACTION TOOL: Proposes an integrated approach to improving productivity and working conditions, shows innovative and simple ways of preventing occupational hazards and diseases, and presents two practical instruments (I-WEB and WISH) that can be used by local development people, micro entrepreneurs, owner-operators, own-account workers, and home-based workers.

4.04.03 Health, safety and working conditions in agriculture ACTION TOOL: Gives an overview of occupational health and safety hazards in agriculture, proposes national and local actions to prevent health and safety risks, and presents the WIND manual as practical instrument t than can be used at local level.

Section Five: PROMOTING EQUALITY, RIGHTS AND VOICE

4.05.01 Fundamental rights at work INFORMATION TOOL: Gives an introduction to the fundamental rights at work and why rights are important for development.

4.05.02 Relation between rights at work and poverty reduction INFORMATION TOOL: Explains how the violation of people’s fundamental rights at work traps them in poverty, and why strategies that address these rights problems are indispensable in poverty reduction.

4.05.03 Gender equality helps local development and poverty reduction INFORMATION TOOL: Describes the inﬂ uence gender has on local development needs and opportunities and the importance of mainstreaming gender issues into all local development planning processes.

4.05.03.1 Gender: the challenges of women and work INFORMATION TOOL: Describes the inﬂ uence of gender on employment and the workplace.

International Labour Ofﬁ ce []Ó 34 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCE KIT FOR LOCAL DEVELOPMENT AND DECENT WORK: OBJECTIVES, USERS, CONTENT TOOL NUMBER TITLE AND BRIEF DESCRIPTION

4.05.04 Equality of opportunities: issues affecting indigenous peoples INFORMATION TOOL: Calls the attention of local planners and development practitioners to the issues and concerns speciﬁ c to indigenous peoples and ethnic minority communities, where poverty is often very high. Cites the Philippine national policy and legal framework on indigenous peoples, and suggests the broad issues and principles for integrating their concerns in local development.

4.05.05 Identifying problems of child labour in the community ASSESSMENT TOOL: Gives an overview of the problems of child labour, the risks that working children face, and guidelines for mapping the extent and nature of problems of child labour in a particular sector and territory.

4.05.05.1 Reducing child labour in your community ACTION TOOL: Provides a framework for devising strategies to reduce the incidence of child labour in the community. It suggests actions that Local government units (LGUs), local planners and leaders, employers and business organisations, and community organisations could implement at local level.

4.05.05.2 Planning a conference or workshop about reducing child labour ACTION TOOL: Presents the Training Package on the Design, Management and Evaluation (DME) of Action Programmes on Child Labour, which shows how to plan, organise and conduct such a workshop or conference.

International Labour Ofﬁ ce []Ó 35 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEPART 5: TECHNICAL KIT FOR ISSUES LOCAL IN IMPLEMENTATION, DEVELOPMENT MONITORING AND DECENT AND WORK:EVALUATION OBJECTIVES, USERS, CONTENT

TOOL NUMBER TITLE AND BRIEF DESCRIPTION

5.01 Factor analysis and logical framework for programme/project formulation INFORMATION TOOL: Gives a logical framework for formulating and designing a programme or project.

5.02 Tips on writing project proposals INFORMATION TOOL: Outlines the basic requirements of a funding application, and describes the purpose and structure of most funding applications and offer tips to make a funding application more successful.

5.03 The 7 Cs of implementation: putting plans and projects into action INFORMATION TOOL: Provides key principles in putting plans and project into action.

5.04 Overview of LGU fi nancing options for local development INFORMATION TOOL: Describes some of the options that can be used by Local Government Units when fi nancing local development. It will describe local taxation and revenue raising options, donor agencies, investments mechanisms and government funding sources. Presents examples of how some LGUs have developed and selected the fi nancing options for their development projects.

5.05 Tips in budgeting for local development INFORMATION TOOL: Brings to the attention of LGUs and other local stakeholders key issues and possible actions that could make LGU budgets and expenditures contribute better to local development.

5.06 Ten steps towards building public-private partnerships ACTION TOOL: Suggests opportunities and practical ways of building partnerships.

International Labour Ofﬁ ce []Ó 36 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCETOOL NUMBER KIT FOR LOCAL DEVELOPMENT AND DECENT TITLE WORK: AND BRIEF OBJECTIVES, DESCRIPTION USERS, CONTENT

5.07 Overseas Filipino Workers: partners in local development INFORMATION TOOL: Gives basic facts and ﬁ gures about Overseas Filipino Workers (OFWs) and explains how their remittances can be a resource for local development.

5.08 Tips for dealing with external factors INFORMATION TOOL: Gives some tips as to how Local Government Units (LGUs) and local communities can anticipate external factors – or conditions that are beyond their control and orient their plans accordingly.

5.9 Impact evaluation ASSESSMENT TOOL: Stresses the importance and uses of impact monitoring and assessment in implementation and planning. Provides guidelines for evaluating impact.

5.10 The Local Governance Performance Management System (LGPMS) INFORMATION TOOL – Provides an overview of the an overview on the LGPMS and its value as a self-assessment tool that LGUs can use to monitor and evaluate their own development, towards improving service delivery to their constituents.

International Labour Ofﬁ ce []Ó 37 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

PART ONE: LOCAL DEVELOPMENT AND DECENTRALISATION IN THE PHILIPPINES AND THE DECENT WORK FRAMEWORK

INTRODUCTION discussing some factors for the success of local development. Part 1 is an important component of the Local Development and Decent Work Resource Kit. It It is recommended that all users of this Resource contains information tools that explain the decent Kit read the tools in Part 1 because this will help work framework and how it is relevant and useful them better understand and apply the rest of the to local development. It also contains a tool other tools in this Resource Kit.

International Labour Ofﬁ ce []Ó 39 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 1.01 INFORMATION TOOL

LOCAL DEVELOPMENT AND DECENT WORK APPROACH – AN OVERVIEW

OBJECTIVE National development is strongly shaped by Local reality has a national context processes that occur on the ground, within National reality has a local face This tool presents an overview of the Local speciﬁ c geographical regions of the country. The Development and Decent Work framework, on local context – political power, social institutions, which this whole Resource Kit is based. Every organisations and networks, culture, norms and LOCAL user of this kit should go over this tool. The topics values, culture, the economic order – make a covered by this tool are: difference. As a result, development within a particular country is always characterised by • Why a local focus? signiﬁ cant variations from one place to another. • Why focus on work? NATIONAL • Why the emphasis on “decent work” and what Even in the context of globalisation, local is it? development has become critical. Although Aspire nationally/ globally; products, resources and capital can be sourced • How does “decent work” contribute to local act locally development? more easily now than before from any part of the • What are the phases of the local development world, the location of economic activity has grown process? WHY A “LOCAL” FOCUS? in importance. An evidence of this is that only a • What are the “decent work” aspects of each restricted number of regions (for example, Cebu phase of the process? LOCAL REGIONS – SPRINGBOARDS OF THE LOCAL in Central Visayas and Subic in Central Luzon) DEVELOPMENT PROCESS in countries scattered across the continents are actually involved and effectively integrated Macro economic and social factors and policies in global production systems and world trade, are critical for national development but the local resulting in uneven spatial development and aspects of development should not be overlooked. income inequalities between regions within many developing countries.

International Labour Ofﬁ ce []Ó 40 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

This is further manifested by the emergence facilitate communication, mutual confi dence and overlooked both from the point of view of attaining of city-regions (for example, Metro Manila trust. Workers realise income-raising gains from equity as well as social cohesion. and Jakarta) all over the world in the last few rapid search and rehire processes, which are decades. These city-regions are dense masses of made possible by easy access to many potential The development of regions, considering their interrelated economic activities with typically high employers and which could compensate for high growth potentials, would help promote sustainable productivity levels, growing faster than other areas job turnover, and from dense opportunities for new growth of the national economy through a of the national territory and generating the bulk learning and skills. more rational population distribution, increased of high-earning employment. They are engines of employment opportunities and enhanced national economies whether of advanced or less- AIM NATIONALLY, ACT LOCALLY productivity. developed countries. The ability of countries to attain higher levels of “Free market forces” would not be suffi cient to Large-scale city-regions achieve gains in growth, compete globally, and achieve a better promote development at the local level. Reliance productivity not only because of well-developed quality of life is very much dependent on the on markets alone could lead to the under-supply infrastructure but also due to the dynamics capacity and potential of their municipalities, of important conditions for maximising the of backward and forward inter-linkage among provinces or regions to attract, breed and sustain collective advantages and potentials of any given fi rms, the dense local labour markets, and the expanding production and livelihood systems. region. relationships, habits and social networks (social assets) through which knowledge, learning It is therefore important to give attention to Local level policy interventions or public action and innovation are created and shared. The the development potentials at the municipal, by local governments, civic associations, public- advantages available to all fi rms and workers from provincial or regional levels. Macro development private partnerships and/or other institutional being part of a city-region are bigger than the strategies need to be accompanied by policy arrangements may be necessary for the following: sum of each one’s gains, and promote a cycle of instruments that address development issues from ever-increasing advantages for the region. Firms a bottom-up, locally defi ned perspective. • Ensure the adequate provision of certain “public realise productivity gains and high fl exibility in goods” which are critical conditions for local their internal and market operations from having Regional development policy is especially economic development, such as skills training, easy access to different suppliers and buyers, important in countries where unequal labour market information, technological direct access to large pools of diverse and development between regions are fairly research, and minimum level of social and specialised skills, and face-to-face contacts that characterised by these imbalances and can not be income security

International Labour Ofﬁ ce []Ó 41 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

• Discourage or stop negative practices that Fund in “highly indebted poor countries” (HIPC) powers and resources from central agencies to may be hazardous for the whole region, such have to apply a broad-based people’s participation local bodies. as emergence of low-trust or relations marked process. by confl icts between manufacturers and Decentralisation refers to “the restructuring or subcontractors or between employers and Governance is defi ned as: “the system of values, reorganisation of authority so that there is a workers, bad product quality which could refl ect policies and institutions by which a society system of co-responsibility between institutions of on the area’s reputation, and exploitative labour manages its economic, political and social affairs governance at the central, regional and local levels practices which generate short-term gains for through interactions within and among the state, according to the principle of subsidiarity, thus one fi rm. civil society and private sector.” It is a way a increasing the overall quality and effectiveness of society organises itself to make and implement the system of governance, while increasing the Because these policy interventions are oriented decisions – achieving mutual understanding, authority and capacities at the local levels.”1 The towards the coordination of local production agreement and action. It comprises the concept of subsidiarity proposes that functions or systems and common goods, they call for a high mechanisms and processes for citizens and tasks be devolved to the lowest level of social order degree of social and political engagement in which groups to articulate their interests, mediate that is capable of completing them. fi rms, workers, and other stakeholders are brought their differences and exercise their legal rights into meaningful public debate about the issue and and obligations. It is the rules, institutions and Decentralisation and strengthening of local preferred collective outcome. practices that set limits and provide incentives for governance institutions have been expected to individuals, organisations and fi rms. lead to: PEOPLE’S PARTICIPATION AND LOCAL GOVERNANCE DECENTRALISATION OF GOVERNMENT SYSTEMS • More transparent and accountable decision- The emphasis on people’s empowerment and making participation, especially of people living in poverty, The scope and magnitude of decision-making • Direct participation of people in decision- has also reinforced the role of local institutions power and autonomy of local governments, local making, hence creation of solid social in national governance and the focus on local policy makers and stakeholders are determined by • Improved effi ciency in the delivery of services development. For example, the current poverty the extent of decentralisation that has taken place reduction policy frameworks (called Poverty in the country. In many developing countries, Reduction Strategy Paper or PRSP) being applied government systems are being reformed in favour 1 Robertson Work, “The role of participation and partnership in decentralised governance: A brief synthesis of policy lessons and by the World Bank and the International Monetary of decentralised structures and devolution of recommendations of nine country case studies on service delivery for the poor”, UNDP New York

International Labour Ofﬁ ce []Ó 42 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

• Better targeting of poverty-reducing investments downgrading labour and social costs to entice wage and self-employment, formal and informal. It and transfers investors. refers to any means of making a living. • Increased mobilisation of resources for the local • In the absence of information about other area regions, regional policy makers could be Through work, individuals, families and duplicating resource allocations in the same communities obtain the means to meet their Which form or nature of decentralisation is “growth industry”. needs, make their dreams come true, and improve appropriate and effective is the subject of • Isolated attempts to strengthen speciﬁ c regions their lives. Income from work empowers people to ongoing debate and analysis (see Tool 1.04: may intensify income disparities and dilute other make choices. Decentralisation and Local Development in the efforts to equalise regional income distribution. Philippines). Decentralisation has taken many Work responds to, and integrates the economic different forms in different countries at different These risks point to the equally important issues of and social needs and aspirations of people and times, and even exactly the same variety of policy coordination and coherence between central communities. (The term “economic” might often decentralisation may have different effects and regional policy, regulatory oversight, and refer to production, income, wage, investment under different conditions. This is because appropriate spatial distribution (decentralisation) of and markets. “Social” might often be used to refer countries differ in history, traditions and their own political power between central authority and local to health, education, quality of life and equity. In institutional, political, economic and geographic government units. reality, the “economic” and “social” dimensions of context. people’s aspirations and human development are not mutually exclusive but are closely interwoven.) LOCAL-NATIONAL COHERENCE AND COORDINATION WHY FOCUS ON WORK? Work is a strategic way out of poverty. Investment While local policy interventions and a bottom-up WORK IS AN IMPORTANT PART OF PEOPLE’S LIVES and economic growth leads to sustainable poverty perspective are critical for regional and national reduction if it creates opportunities for decent progress, there are risks associated with regional People and their aspirations about their working employment for many people. Although public actions. lives should guide the choice of local development support and social assistance (cash transfers, food strategies. subsidies, etc.) help poor families and individuals • Competition among regions could result in meet their basic needs, these are not sustainable irrational wars over investment and subsidies, Work is central to human existence and survival. means of lifting people out of poverty, and these poaching another region’s resources, and Work can take many forms: paid and unpaid, perpetuate dependence and poverty.

International Labour Ofﬁ ce []Ó 43 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

WHY “DECENT” WORK? • Fair and just treatment at work Social protection • Dignity and respect Having work is not enough. Not any kind of work • Security of income is good for local development. Some work trap In any country, everybody would have a notion • Access to minimum health services people in cycle of poverty and deprivation. of what is a good or decent quality of work, and • Means to meet emergencies and needs in spite would most probably have a national or local of loss of income A most glaring example is that most poor people term for it. The International Labour Organization work. Their problem is not “unemployment” coined the term “decent work” in 2000, and Social dialogue per se but low earnings and insecure, irregular has since used this concept as a framework for employment and income, which force them to supporting people’s aspirations in 175 member • Voice and representation work extremely long hours and on multiple jobs, States. • Participation in local development councils fall into huge debt that they can pay only with • Collective bargaining their labour, allow their young children to work for The Diagram “Decent Work Circle” illustrates the • Freely elected representatives and ofﬁ cials pay, or accept jobs even on unfair terms. Some different features of work that make a particular • Independent and strong people’s organisations work under very unhealthy, unsafe or inhuman job, livelihood or economic activity of “decent conditions, or are treated unfairly. quality”. The nature and qualitative aspects of a Fundamental rights at work person’s job or livelihood determine the quality of “Decent Work” is a term that sums up people’s life of that person and his or her family. • Universal human rights aspirations for: • Rights at work Work consists of four pillars: employment, social - Equality, freedom from discrimination • Adequate income protection, social dialogue and fundamental rights - Freedom from forced labour • Secure income at work, which are inter-related and affect or - Freedom of organisation and expression • Economic means for health care and reinforce each other. - Freedom from child labour emergencies • Some savings, a pension or insurance for old Employment age • Enough time after work for the family • Having a job or a source of livelihood • Health and safety • Income that is adequate and secure, regular

International Labour Ofﬁ ce []Ó 44 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

DECENT WORK CIRCLE DECENT WORK DEFICITS: VICIOUS CIRCLE

Local private business sector • No job, no livelihood - capacity of local enterprises • Have work but: - market links - Low, seasonal earnings Public enterprises Education, skills development - Part-time Investment Placement services; job - Insecure, casual, irregular information, counseling - Work for debt Equal opportunities policies - Reliance on child labour - Reliance on unpaid labour

EMPLOYMENT

• Restricted access to land, credit, Policy & regulatory Governance training, education, information environment DECENT • Poor representation in institutions • No property rights governance structures FUNDAMENTAL EMPLOYMENT POOR QUALITY Infrastructure & SOCIAL Organizations • No control over own labour • Weak civil society RIGHTS AT OF EMPLOYMENT facilities DIALOGUE Mechanisms for • Exploitation of child labour organizations WORK • Restrictions on basic human Access to/ DECENT QUALITY consultation, • Isolated, unorganised rights POOR QUALITY Allocation of OF LIFE negotiation • Decision-making limited to • No knowledge about rights and OF LIFE males or “household heads” resources, etc. justice system • Excluded from decision-making SOCIAL PROTECTION

• Insufﬁ cient income for Legal & judicial system Public social assistance minimum needs Public services • Little access to basic services Enforcement structures • Exposed to health, safety Customary law Social security, health insurance risks Community values Cooperative, mutual help schemes • Exposed to natural risks Attitudes, prejudices Private insurance • No or little savings Family & community networks • No access to credit Occupational health & safety code, • No job security etc. • No alternative income sources

The boxes outside the circle refer to institutions and policies that affect The Diagram “Decent Work Deﬁ cits: Vicious Circle” illustrates problems, gaps or each of the four dimensions. “deﬁ cits” in any of the four dimensions of work that may exist and lead to poor quality of life.

International Labour Ofﬁ ce []Ó 45 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

HOW DOES “DECENT WORK” CONTRIBUTE SOCIAL PROTECTION REINFORCES EMPLOYMENT • It encourages compromise and builds TO LOCAL DEVELOPMENT? AND INCOME GENERATION consensus among local stakeholders around common objectives. Productive and gainful employment establishes • When people have something to rely on in times • It promotes networks and organisations which the link between economic growth and poverty of hardship, they are more ready to venture into are important social assets of the area. reduction. Employment creates wealth and is new (risky) economic activities or to try new a strategic way out of poverty and vulnerability. technologies. It is not easy for a farmer, a ﬁ sher RIGHTS ARE FUNDAMENTAL TO EMPLOYMENT However, employment cannot be promoted and or a low-paid wageworker to be entrepreneurial PROMOTION AND SOCIAL PROTECTION supported through job creation strategies alone. and innovative if his/her family is highly vulnerable to the negative effects of a business • Respect for people’s human rights ensures an FOUR PRINCIPAL ELEMENTS REINFORCE EACH failure. inclusive development where each individual OTHER: • By securing access to basic food, health and enjoys equal opportunities to employment and educational needs, social security preserves treatment at work. • Generation and preservation of gainful human capital (health, education, skills) even in • Equal rights and access to resources, services employment and incomes as an explicit times of emergency. and economic opportunities is necessary for objective • How many businesses or livelihoods have fallen a person to engage in gainful and source of • Minimum income security, health security, apart because earnings and assets were used to livelihood. security of basic needs as an explicit objective cover health care costs? • Without basic freedoms, an individual could not • Voice, representation and social dialogue for participate in decision-making processes that greater participation in the decision-making SOCIAL DIALOGUE IS CRITICAL FOR PEOPLE’S affect his or her life and work. process PARTICIPATION • Rights as the foundation for an inclusive and However, development strategies have been just local development • Social dialogue recognises the existence of dominated by an emphasis on economic growth differing and sometimes competing interests – the aggregate rate of growth of domestic product and views in the community and society as a per capita as the central immediate objective and whole. indicator of development, and the accumulation • It is a process of consultation, negotiation, of physical capital and investment as the means bargaining and conﬂ ict resolution. of attaining this objective. It has been widely, but

International Labour Ofﬁ ce []Ó 46 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

mistakenly, assumed that economic development stakeholders in a defi ned territory. This opportunities, support to entrepreneurial (i.e. growth, modernisation, effi ciency, enterprise process enable these stakeholders to activities, facilitating the access to (new) markets, support) would automatically create jobs, reduce design and implement jointly a common infrastructure, and job creation. poverty and raise people’s quality of life. development strategy that makes use of local resources and competitive LOCAL DEVELOPMENT advantage of the territory in a global However, many who have studied local economies context with the fi nal objective of creating have increasingly realised that the success of PARTICIPATORY PROCESS OF NEGOTIATION AND decent jobs and stimulating economic economic policy interventions and enterprise CONSENSUS activity. performance have depended a lot on the local institutional, social and political conditions of the Local development may be defi ned as a process There are many other defi nitions of local area. of negotiation, dialogue and consensus between development and “local economic development”. actors (leaders, offi cials and representatives Common among these various defi nitions is the Finally, the ultimate development goal – better of local government, organisations, groups, following elements in the process: quality of life for all – necessarily requires the communities) within a determined geographical combination of economic growth, equity and area with the purpose of bringing about a common a. They require participation and partnerships. poverty reduction, and ecological sustainability. undertaking and goal, which combines economic b. They are based on territory. and social interests and objectives towards the aim c. They entail the mobilisation of local resources LOCAL DEVELOPMENT PLANNING AND of improving the quality of life of citizens in that and comparative advantages. IMPLEMENTATION PROCESS territory. d. They are owned and managed by local stakeholders in the territory. It is possible to identify six (6) phases in the The Local Economic Development Programme local development planning and implementation of the International Labour Organization uses the ECONOMIC AND SOCIAL INTEGRATION process. However, in practice, these phases following defi nition: are not mutually exclusive; some phases are Many have used the term “LED” or “local continuous and two or more phases may run at LED is a participatory process that economic development” to refer essentially to the the same time. The whole process is not linear; it encourages partnership arrangements “economic” dimension of local development – does not move from one stage to the next stage. between the main private and public local economic growth, identifi cation of investment

International Labour Ofﬁ ce []Ó 47 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

The six phases of Local Development Planning and The Local Development Planning and Implementation are described brieﬂ y below. Inside LDDW Concerns: Implementation Process the shaded boxes are listed the speciﬁ c Local • Assess progress and problems regarding

STRENGTHENING Development and Decent Work (LDDW) concerns decent work. AND/OR CREATING A for each phase. • Identify what and where inequalities exist. “FORUM” • Pay attention to differences between 1. Territorial diagnosis women and men, and between ethnic and other social groups in the territory. SENSITISING DESIGNING THE LOCAL DEVELOPMENT Objective: • Certain decent work indicators may STRATEGY To acquire initial knowledge about the local have to be incorporated into local data territory – issues, resources, opportunities, collection, and for baseline surveys or TERRRITORIAL DIAGNOSIS COORDINATION OF mapping of interest groups and stakeholders; and assessments. IMPLEMENTATION about the overall planning framework (e.g. extent STRUCTURES or nature of decentralisation) of local development. 2. Sensitisation, awareness-raising ACTION – IMPLEMENTATION Scope: MONITORING a. This is a preliminary or rapid assessment of Objectives: EVALUATION major socio-economic and political indicators a. To build and strengthen the ownership of and trends of the territory, paying careful the local development process among local attention to “decent work” dimensions and to stakeholders; EMBEDDING DECENT WORK INTO THE PROCESS inequalities and differences between men and b. To enable different members of the local women, and between segments (e.g. ethnic community to appreciate that each has an The Local Development and Decent Work groups) of the local population. important contribution to make, and that Framework provides additional value to b. Sources of data collection are available the local development process has to be conventional local economic development statistics, reports and rapid appraisal methods. participatory and inclusive. approaches by (1) explicitly incorporating the Data collection should be updated during the Decent Work perspective into local development whole LD process. agenda, and (2) integrating economic and social concerns and objectives.

International Labour Ofﬁ ce []Ó 48 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

Scope: 3. Strengthening or creating a participatory a. Activities to help stimulate interest, involvement mechanism or forum LDDW concerns: and support of various groups and members of the local community, such as small focused Objectives: • Respect for fundamental rights is an group discussions, workshops visit to other a. To strengthen an existing mechanism that important pre-requisite for a people’s territories and small training courses where could facilitate participatory local development participation. people can exchange views, knowledge and planning and implementation, compromise • Organisations of workers and employers experiences; and and consensus-building around a local have a role in local development. b. Quick impact activities that require or involve development strategy; and/or • Social dialogue – consultation, consultation, joint decision-making and b. If a participatory mechanism does not exist, negotiation, compromise and consensus consensus or compromise. to establish such a mechanism, taking into - enrich the participatory process. account the local governance context and responds to the views of the people in the LDDW concerns: territory. 4. Designing the Local Development Strategy

• Make sure that local people understand Scope: Objective: the role of decent work in local a. Calls for a careful analysis of the local a. To produce a shared vision, a set of priorities development, and importance of equity governance context and local institutional for a speciﬁ ed period, a strategy for getting and inclusiveness in successful local structures there and clear objectives and indicators for development. b. Requires local political support assessing success. • Enable the people to understand each c. To be truly participatory, inclusive and other’s aspirations for decent work and effective, a forum requires active and capable Scope: ways local development could address representative organisations. a. More intensive diagnosis and assessment: these aspirations. d. Often needs to be accompanied by activities assessments of problems and issues, as well aimed at strengthening the capacity of local as opportunities, resources and strengths; organisations. Special activities are often in-depth analysis of speciﬁ c issues; feasibility necessary to involve the poorer and socially studies and assessments of various proposals, excluded segments of the local population. etc.

International Labour Ofﬁ ce []Ó 49 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

b. Strategic planning – identifying priority issues 5. Coordination of implementation 6. Action: implementation, monitoring, and and objectives, action planning, defi ning evaluation resources. Objectives: a. To assign roles and responsibilities, and Objectives: LDDW concerns: determine arrangements and measures that will a. To engage the various local stakeholders in the • Employment and income generation, ensure coherence, convergence and smooth implementation, monitoring and evaluation; and social protection should be explicit coordination of different implementation b. To deliver a coherent and integrated strategy; objectives of local development strategies. structures; c. To ensure relevance, effectiveness and • It is important to assess potential and actual b. If necessary, set up coordinating unit or effi ciency of implementation impact of strategies and programmes on mechanism. local employment, incomes and social Scope protection. Scope: a. various arrangements and activities based on • The effect of strategies and programmes a. Institutional mapping and assessment; action plans; monitoring and evaluation; review are often not the same throughout the commitments; designation or assignment and revision of strategies and plans. local community; some benefi t more than of coordination, taking into account local others or some suffer from consequences governance and institutional context. while others gain. One needs to assess the LDDW concerns: differential impact on women and men, on • What is the actual impact of strategies different ethnic and other social groups. LDDW concerns: and plans on decent work, poverty and • Data on selected decent work indicators • Stakeholders play different roles in quality of life? Where is progress being may be necessary for assessing the likely implementation. made? impact of local plans on decent work. • Transparency and accountability in • Who are benefi ting? Who are losing or • The local development strategy should take implementation bearing social and economic costs? into account the interrelationship between • Delivering a coherent and integrated • Who are participating? Who are excluded local strategies, national plans and policy strategy and why? frameworks, national and global markets • What can be improved? and trends.

International Labour Ofﬁ ce []Ó 50 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.01 Local Development and Decent Work Approach – An Overview

RELEVANT RESOURCES CROSS-REFERENCES

• Martin Gasser, Carmelo Salzano, Roberto • Tool 1.02, Information Tool: The Decent Work di Meglio and Alfredo Lazarte-Hoyle, Local Framework Economic Development in Post-Crisis • Tool 1.04, Information Tool: Decentralisation Situations. An Operational Guide. (Geneva: ILO) and Local Development in the Philippines • Carmelo Salzano, Applying the comprehensive LED Approach. The case of Croatia. (Geneva: ILO) 2002. • ILO Resource Database on Poverty, Local Development and Decent Work http://www.ilo.org/dyn/dwresources/dwbrowse. home

International Labour Ofﬁ ce []Ó 51 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 1.02 INFORMATION TOOL

THE DECENT WORK FRAMEWORK

OBJECTIVE DECENT WORK: BASIC CONCEPTS AND members perform for a family-based/owned PRINCIPLES business or trade, for which they do not receive This information tool: payment. Decent work means: “opportunities for women • Defi nes “decent work” and men to obtain decent and productive work in Work could be performed in a factory, in the • Explains why decent work is important for conditions of freedom, equity, security and human market, in an offi ce, on the farm, in a boat, on the a decent life, poverty reduction and local dignity” street sidewalk without a permanent workplace, development or at home. It could be a business or job that is • Discusses the features of decent work that Work can take many forms. It can be paid and fully registered with the appropriate government should be examined in order to identify areas of unpaid, wage and self-employment, formal and agencies; but it could also be a job or livelihood improvement informal. It refers to any means of making a living. that is not declared or registered. • Discusses the four strategic pillars of the decent work agenda Work could be a job with a wage or salary involving “DECENT WORK” SUMS UP PEOPLE’S ASPIRATIONS • Presents the policy interventions that are an employee-employer relationship. It could also IN THEIR WORKING LIVES relevant for each pillar be self-employment - an independent exercise of an activity, trade or occupation, where the Everybody, everywhere, has a sense of what person concerned controls the means, process decent work means in their own lives, and in and outputs of production. Examples of self- relation to their society. employment are: farming a small plots of land; small-scale, municipal fi shing, operating a little What is decent work for you? What is your idea sari-sari store, weaving baskets and selling them in of decent work for your children, and for your the market, sewing dresses at home for individual community? It may be some or all of the following, clients; running a small business with one or more and much more: employees. Work could be paid or unpaid. The most common unpaid work is that which family

International Labour Ofﬁ ce []Ó 52 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

• Being able to earn a living, having a job, a trade, DECENT WORK IS RELATIVE AND AREA-SPECIFIC • Elimination of discrimination (Conventions 100 a profession or a business. and 111) • Having an income that is “adequate” enough Because countries and local areas differ in social • Elimination of forced labour (Conventions 29 and to cover the daily needs of your family, put and economic situations, none can aim for the 105) your children through school, put food on the same absolute conditions of work. Each area will • Abolition of child labour (Conventions 138 and table, build a home, and get medical care when have to carry out an assessment of its situation, 182) someone in the family is sick. and set its own specifi c targets for improving the • Having some means to cover your basic needs level of decent work. In 1998, all member states of the International in your old age, or in unexpected emergencies. Labour Organization adopted the Declaration of • Working in a safe workplace where you are not BUT THERE IS A UNIVERSAL PRINCIPLE Fundamental Principles and Rights at Work through likely to get sick or meet an accident that could which they committed themselves to promote and disable you from working. This universal principle, which applies everywhere respect in good faith these principles and rights. • Having equal access to resources and regardless of the level of economic development of opportunities that are necessary to secure work a society, is the respect for basic human rights – DECENT WORK HAS 10 FEATURES and to advance oneself. • Freedom from oppression and forced labour • Being treated equally and with respect. • Freedom from discrimination 1. Employment opportunities – All persons (women • Being able to participate in making decisions • Freedom of association and men) who want work should be able to fi nd on matters that affect the welfare of your family • The right of children to learn and develop rather work. and your work, through your own freely chosen than work representatives or organisations. 2. Not unacceptable work – This requires that These rights are embodied in the United work should be freely chosen and not forced on ALL HAVE A RIGHT TO DECENT WORK Nations’ Universal Declaration of Human individuals along with the condition that certain Rights and in eight fundamental International forms of work are not acceptable, such as: Everyone has a right to decent work – farmers, Labour Conventions of the International Labour farm workers, fi shers, home-based workers, Organization: • Forced labour, a situation where a person is factory workers, street vendors, pedicab drivers, • Freedom of association and collective obliged to work or perform a service under construction workers, government employees, bargaining (Conventions 87 and 98) threat of any penalty and for which the nurses, managers, and so on. person has not offered himself/herself for

International Labour Ofﬁ ce []Ó 53 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

work voluntarily, such as work to pay off 4. Fair and equal treatment in employment – There 6. Fair balance of work and family life – Workers debt (debt bondage) and slavery; and should be fair and equitable treatment and with family responsibilities (those who have • Child labour, work performed by children opportunity in work. This means absence of young children, elderly and sick to care for) or young persons below the minimum age discrimination at work and in access to work should be able to exercise their right to engage (below 15 years old) for employment that on grounds of sex, national origin, race and in work if they wish to, without being subject is considered inappropriate for their age age, and absence of harassment on these to discrimination. Family responsibilities fall and maturity and endangers their health, same grounds. Discrimination includes any heaviest on women. safety and morals, especially in hazardous distinction, exclusion or preference that has occupations and without the supervision the effect of nullifying or impairing equality 7. Safe work environment – Physical work and guidance of their parents or legal of opportunity or treatment in employment environment should avoid extreme conditions guardians. or occupation. Discriminatory practices may (heat, dust, noise, and workload) and ensure be deliberate and or unconsciously done; a safe working environment with appropriate Also, workers should have the freedom to join some are due to biases and misconceptions prevention of work-related accidents, injuries workers’ organisations. of persons who make decisions and apply the and occupational diseases. rules and regulations; some are embedded in 3. Adequate earnings and productive work – It is the rules and regulations themselves. 8. Stability and security of work – Workers and essential for the workers to have acceptable their families have a need to limit insecurity livelihoods. For many people, “adequate 5. Decent hours of work – Working time associated with the possible loss of work and earnings” or an “adequate living wage” are arrangements concerning daily and weekly livelihood. Work that is not secure and stable the most important characteristic of a “decent working hours, regular and overtime work, (could be lost anytime, of short duration) or work”. Income from work could be in the form breaks and rest periods, should reﬂ ect fair and whose income is not regular or not predictable of wage or income from goods or services acceptable practices, and be compatible with falls short of one’s idea of a “decent work”. that one produced and sold or exchanged. social and family life. Work intensity, which The loss of one’s source of livelihood has There should be remuneration for all work leads to excessive hours, threatens physical serious adverse effects on the person and on carried out, and the remuneration from work, and mental health, and interferes with the his/her family. The risk of losing one’s source of especially in the case of wage workers, should balance between work and family. income is higher in some types of employment correspond to a fair and living wage. Work for or livelihood than others. For example, work equal value should ensure equal pay. security is low in seasonal, temporary and

International Labour Ofﬁ ce []Ó 54 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

casual jobs, and in “no work-no pay” jobs. 10. Social dialogue and workplace relations Local Government Units (LGUs), local planners Some livelihoods provide a regular ﬂ ow of – Workers and employers should be able and development practitioners are in a position to income, while others provide income only to express themselves on matters (plans, help their municipalities improve their decent work irregularly. rules, policies, programmes, and new situation. It is important to integrate actions and developments) that affect them. They can measures that reduce problems of work into the 9. Social protection – Social protection consists express their views through collectively local development plans. of public and private arrangements that help chosen representatives. It is therefore individuals and their families cope with the important that workers and employers are It is not be possible to achieve a perfect situation negative effects (such as poor nutrition, poor able to organise themselves and represent where everyone who needs a job has one, or where health, and no education) of loss of income or their interests freely in consultations and everyone’s work is ideal in all aspects. However, it loss of job. People are exposed to many risks negotiations. Social dialogue may take several is possible to make improvements, and to achieve that could lead to loss of income, a job or a forms: consultation and collective bargaining progress towards a better situation. As situations livelihood, such as death, old age, sickness, between employees and their employer; become better, it is also natural that persons or accidents on the job, disasters and natural consultation and negotiation between a community will want to aspire for even a much calamities. The incidence of risks is high for groups of workers and groups of employers better situation in their work or livelihood. some people and some areas, and lower for in the same industry or sector; exchange others. People, families and communities of information and views, consultation and FOUR PILLARS IN AN INTEGRATED AGENDA are vulnerable to these risks if they have no negotiation among economic actors (e.g. resources or means of support to fall back suppliers, traders, buyers), among workers, Decent work can be achieved through an on in case of sudden loss of income and loss employers and the government in one area. integrated agenda consisting of four strategic of job. Work conditions should therefore be pillars that are inter-connected and reinforce each mindful of the need to safeguard the health, “DECENT WORK FOR ALL” – A GOAL FOR other. pensions and livelihoods, and to provide LOCAL DEVELOPMENT • Creation of greater employment and income adequate ﬁ nancial and other protection in the opportunities for women and men event of work-related injuries, health and other Decent work gaps are inter-connected and are • Extending social protection contingencies. often linked to social and economic policies and • Promoting social dialogue institutions, which affect peoples’ working lives • Achieving universal respect for fundamental and labour market institutions. principles and rights at work

International Labour Ofﬁ ce []Ó 55 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

workers’ health and safety; and the protection of POLICY INTERVENTIONS workers from exploitative terms and conditions of

Quality Broad Social employment. 1. PROMOTION OF PRODUCTIVE AND Employment Security or REMUNERATIVE EMPLOYMENT Protection Social dialogue is a means by which workers, Basic Rights Sustained employers and private business sector, and The objective of this pillar is creating enough at Work Social Participation government engage in debate and negotiation on opportunities for everyone who seeks work. Above how to achieve decent work. all, this objective requires that decent employment – either wage or self-employment – be an Respect for fundamental principles and a right at explicit and central concern of all economic and work is indispensable for the achievement of all social policies, from local to national as well as Employment is the essential instrument for raising the other three strategic objectives – employment, international levels. living standards, widening access to incomes and social protection, and social dialogue. The social security and providing security of income. basic rights at work are: freedom of association; Policies for full employment imply that the rate It is fundamental to the fi ght against poverty and freedom from forced labour; freedom from child of growth of the economy is at least in line with social exclusion. But this means that employment labour; and freedom from discrimination. These the rate of growth of the labour force. These cannot be any kind, but one that is freely chosen fundamental rights ensure that no individual or also imply a sectoral composition of economic and productive, provides an adequate income, social group (defi ned, for example, on the basis growth that ensures a close relationship between has a certain level of constancy to provide income of gender, ethnicity, religion, age, HIV/AIDS growth and employment generation. This calls for security, and does not jeopardise life and health. infection, having a disability, etc) is excluded a combination of policies and programmes that from employment and income opportunities, and address the economic environment and the labour Broad social protection refers to the social security that each one has the capability to realise and market. which society provides for its members through develop his/her potentials and participate fully in public measures in order to offset the absence the development process. They are a precondition Elements that address the economic environment of reduction of income from work resulting for the construction of a socially legitimate labour from contingencies, and to provide people with market. • Clear understanding of the multiple interactions healthcare and benefi ts for families and children; and trade-offs between macroeconomic the prevention of occupational risks that endanger polices (fi scal, monetary and exchange rate

International Labour Ofﬁ ce []Ó 56 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

policies) and employment. Support measures health facilities; promoting ICT skills and • Active policies that reduce or avoid exclusion to those sectors with higher employment/ diffusion of ICT technology and discrimination from opportunities in the output elasticities (i.e., those sectors where • Promotion of sustainable livelihoods by labour market on grounds of sex, age, ethnicity, employment growth contributes much to strengthening the positive link between religion or exclusion of specifi c regions or economic growth) employment and environmental protection and industries, and that promote remuneration • Measures for the small enterprise sector sustainable use of natural resources above the poverty line (including cooperatives) to ensure its full • Linking labour market policies with social participation in and contribution to growth of Elements that address the labour market should aim protection and labour standards - A high rate output and employment, such as: encouraging at enhancing the effi ciency of labour markets and of job creation does not guarantee that the networks and linkages among enterprises; ensuring equity of its outcomes: jobs created are of decent, acceptable quality ensuring that commercial and product (e.g. with adequate level of earnings or job regulations do not inhibit new business growth • Demand–oriented policies that encourage security) or that all groups of the population and growth of self-employment; lowering the the creation of job opportunities by acting on would have equal access to these jobs (high costs and unnecessary bureaucratic hurdles the price of labour (i.e. wages) or by support social inclusion). Conversely, the protection to enterprise creation and facilitating access to direct employment creation (e.g. incentives for of employment (high job security) does not markets, credit and business training; property new jobs created; promotion of labour-based guarantee social inclusion of all those excluded rights that are clear and protected technology for example in construction and from employment. Some countries, particularly • Promotion of trade and investment through infrastructure) some European countries have shown that it is measures such as: development of appropriate • Supply-oriented labour market policies that possible to combine high job mobility (in and infrastructure and skills; identifying sectors preserve jobs and maintain workers in the out of jobs) with high-income security by linking where there is comparative advantage; labour market, essentially through training labour market policies with social protection and governance structures that are transparent and and re-training by matching their skills with labour standards. accountable the requirements of continuous technological • Promotion of technological change for higher upgrading and changing work organisation; Ideally, some regular review of employment and productivity and job creation and improved also through universal free quality primary macroeconomic developments and policies should standards of living, such as modernising and secondary education, fi ght against child take place with the participation of social partners, transport, communications, education and labour that keeps children and youth away from in order to analyse the situation in the economy education

International Labour Ofﬁ ce []Ó 57 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

and labour market and discuss best policy Income and health security through social security ‘formal economy’, where workers have a defi ned mixes combining both growth and employment relationship with an employer, and (generally) objectives. Social security refers to public and community some capacity to contribute on their own behalf arrangements of providing social protection. The to formal schemes of social security. For such 2. BROAD SOCIAL PROTECTION principal vehicles for publicly mandated provisions workers, provision through public social security of social security are as follows: schemes is complemented in most countries by Social protection or social security refers to: benefi ts from occupational schemes providing Social insurance – It has been shown over pension and other benefi ts. • Income security and health - the combination of many years that the possible occurrence of public and private mechanisms and measures, sickness, accident, unemployment, and so on However, the general economic, social, and which offset the absence or reduction of income can be effectively addressed by pooling risks, demographic environment in which social security from work that result from life contingencies (for and the techniques and tools of insurance. For schemes must operate around the world has example, death, old age, sickness, accident) or those individuals who are (economically) able to changed dramatically. There are now large and other emergencies and calamities (for example, contribute to schemes of social insurance, this increasing numbers of workers and citizens, fl ood, volcanic eruption, drought); and provide is generally therefore the technique of choice for especially in developing countries, who work in people with healthcare and benefi ts for families providing the relevant forms of protection. the informal economy, or who work under casual and children and short-term employment arrangements. • Prevention of occupational risks that endanger Social assistance - For those who cannot readily Their needs with respect to housing, nutrition, workers’ health and safety at work afford to contribute to insurance schemes, parallel education and health may be addressed by • Protection of workers from exploitative terms schemes of tax-fi nanced social assistance (like alternative models of social security where and conditions of employment SSS & GSIS) can often be designed to provide the formal (institutionalised) social security similar benefi ts. approach is complemented by micro-fi nance and Social protection is not simply the protection of micro-insurance founded on an occupational, vulnerable groups. All workers and other members Social insurance and social assistance are community, or area basis. of society have a right to a ‘minimum’ level of generally formed under a public mandate social protection. and refl ect the principle of solidarity. These are adapted most naturally to the provision of benefi ts for workers in the ‘organised sector’ or

International Labour Ofﬁ ce []Ó 58 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

Social protection helps poverty reduction: security enhances labour productivity and social and negotiation among several actors and stability. It also encourages people to venture into stakeholders on issues of common interest or of • Poverty prevention, mainly through schemes new, thus more risky, growth areas or skills and confl ict. The objectives of social dialogue are: a of social insurance, generally for those in occupations. common understanding of a problem or issue; a formal/‘organised’ employment, self-fi nanced consensus and agreement on how to address that from contributions (perhaps complemented Better working conditions and prevention of issue; and, commitment and involvement in the by private insurance through commercial occupational health and safety risks implementation of agreements. companies), and for those in the informal economy/ ‘unorganised’ sector, community- or Working conditions refer to working time, wages In the world of work, the principal actors are occupationally-based, schemes that are often and overtime, manner of payment, maternity Government, workers and employers. In the NGO-initiated and in which direct contributions protection, protection from unfair and exploitative context of local development, social dialogue may be supplemented by foreign assistance work practices, and provision of welfare facilities involves many more stakeholders, such as • Poverty eradication through social assistance, and other benefi ts. suppliers and buyers, middlemen, contractors and such as schemes fi nanced from public sub-contractors, tenants and landowners, small revenues and possibly complemented by Safety and health concerns refer to the risk producers, farmers and fi shers. schemes fi nanced from foreign assistance. of occupational accidents and diseases, and environmental hazards; their impact on the health Social dialogue on issues concerning work Social protection or social security helps of workers, members of their family (in case of could be a tripartite process (i.e., involving communities deal with external changes due to home-based enterprises) and residents of the representatives from government, employers and globalisation and economic liberalisation. The community; and measures aimed at reducing workers), bipartite only (i.e., trade unions and presence of a minimum level of social protection these risks or safeguarding workers, families and/ employers’ organisations), with or without indirect enables countries that are highly integrated in or residents from the effects of these occupational government involvement, or tripartite-plus, which global markets like the Philippines to manage hazards. means involving other development stakeholders. and adjust to the uncertainties and pressures of competition in international trade. It cushions 3. SOCIAL DIALOGUE Social dialogue is an important tool for local people from the negative effects of downturns in development. It provides a means for different global markets and prices on incomes and basic Social dialogue refers to all types of information sectors of the local community to share needs, thus protecting human capital. Income sharing, information exchange, consultation information and come to an agreement on

International Labour Ofﬁ ce []Ó 59 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.02 THE DECENT WORK FRAMEWORK

how to deal with local development issues. It Most of the 177 member States of the International RELEVANT RESOURCES promotes democratic involvement among the main Labour Organization have also ratifi ed these stakeholders in local development. Structures particular Conventions. The Philippines, for example, • ILO: Decent work. http://www.ilo.org/public/ and processes for successful social dialogue has ratifi ed seven of the eight Conventions. The english/decent.htm have the potential to resolve important problems. members of the ILO adopted the Declaration of • ILO: Reducing the decent work defi cit. A global Social dialogue also encourages good governance, Fundamental Principles and Rights at Work. challenge http://www.ilo.org/public/english/ advances social and industrial peace and stability, standards/relm/ilc/ilc89/rep-i-a.htm and boosts economic progress. These rights pave the way for other rights to be • ILO: Working out of poverty recognised and respected. There are other labour • Anker, et al: Measuring decent work with 4. FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK rights and related Conventions that contribute to the statistical indicators http://www.ilo.org/public/ achievement of decent work. These include the right english/standards/relm/ilc/ilc91/pdf/rep-i-a.pdf The fundamental principles and rights at work are to a (living) minimum wage, to ensure that workers • ILO Resource Database on Poverty, Local embodied in the Universal Declaration of Human and their dependents can satisfy their basic needs. Development and Decent Work http://www.ilo. Rights and in the eight fundamental International The right to a healthy and hazard-free working org/dyn/dwresources/dwbrowse.home Labour Conventions of the International Labour environment, to preserve the physical integrity of Organization. workers, is also vital. Promoting fundamental labour rights does not mean dismissing the importance of CROSS-REFERENCES These principles and rights were recognised and other labour rights. Fundamental principles and endorsed universally. At the United Nations World rights at work are also tools, that shape the process • Tool 2.02, Assessment Tool: How to measure Summit on Social Development, the international by which conditions of work, such as maximum and monitor decent work gaps at the local level community recognised, for the fi rst time, that working time or minimum wages, are fi xed and • Tool 4.05.01, Information Tool: Fundamental combating poverty means paying attention to both enforced. rights at work the quantity and the quality of jobs. The heads of • Tools in Part 3 and Part 4 explain in greater State and government who gathered in Copenhagen This Local Development and Decent Work Resource detail the strategies and ways in achieving for that Summit committed themselves to promote Kit contains many tools that will help local planners decent work in local development. employment-driven development policies. They and development practitioners integrate decent work also declared that ILO standards in four areas were into the local development agenda and process. fundamental and should be respected by all.

International Labour Ofﬁ ce []Ó 60 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 1.03 INFORMATION TOOL

LOCAL GOVERNANCE AND DECENTRALISATION – SOME KEY CONCEPTS

OVERVIEW GOVERNANCE Governance is not only about the State or about political affairs. Economic activities, the Local development occurs within a particular DEFINITION interrelationships among enterprises, their local governance setting. Local governance and behaviour, and the operation of capital, labour and decentralisation establish the institutional and … “the system of values, policies and institutions product markets are governed by rules, policies political environment of local development. by which a society manages its economic, political and values, which are adopted and implemented and social affairs through interactions within and by private and public actors and organisations. OBJECTIVE among the state, civil society and private sector. Employment arrangements and conditions are It is a way a society organises itself to make governed as well by a set of rules, values and This tool explains the concepts of local governance and implement decisions – achieving mutual institutions. and decentralisation. Familiarity with these key understanding, agreement and action.” (Source: concepts is useful for: Robertson Work, UNDP) LOCAL GOVERNANCE • Assessing and understanding the local institutional and political conditions in It includes the mechanisms and processes for Local governance, or governance at the municipal, which local decisions policies are made and citizens and groups to articulate their interests, provincial or regional levels, is determined by implemented mediate their differences and exercise their legal the degree and nature of decentralisation of • Understanding other tools in this Resource Kit rights and obligations. governance. Decentralisation, brieﬂ y, refers to the that use same concepts scope and magnitude of decision-making power It refers to rules, institutions and practices that and autonomy of local institutional actors. This tool suggests some guidelines for determining set limits and provide incentives for individuals, the magnitude of decentralised governance that organisations and ﬁ rms. LOCAL ECONOMIC GOVERNANCE exists in a particular territory in any given country. Governance operates at every level of human This refers to the mandate and autonomy of local relations and activities: household, village, institutions (public and private) to manage, lead municipality or city, nation, region, the globe. and regulate the affairs of the local economy.

International Labour Ofﬁ ce []Ó 61 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.03 LOCAL GOVERNANCE AND DECENTRALISATION

The localisation of economic governance has increasing the authority and capacities of sub- • Political decentralisation is where political come about through two main trends – the national levels.” (Source: Robertson Work, UNDP) power and authority have been decentralised to recognition that support systems are more regional, provincial or municipal levels, and this effective when decentralised; the increasing role The concept of subsidiarity means that functions may be manifested in situations where regional, of local governments. Economic development is or tasks should be devolved to the lowest level of provincial or municipal units of government are increasingly localised in city-regions, industrial social order that is capable of completing them. elected. It aims to give citizens or their elected districts or clusters. representatives more power in public decision- Therefore, decentralisation relates to the role of, making, and assumes that greater participation ROLE OF LOCAL GOVERNMENTS and the relationship between, central and regional, would lead to decisions that are better informed provincial or municipal institutions – public, and relevant to diverse interests. Local governments are key players in local private or civic. development, but they are among many players. • Fiscal decentralisation refers to some level of Evidently, their effectiveness and importance However, decentralisation has often been allocation of resources to local governments depend on many factors, not least of which are associated with governance by the state or by to allow them to function properly under any budget and capacity. Even in relatively affl uent public institutions. type of decentralisation. Without resources, countries, most local authorities spend a small local governments cannot function, so fi scal proportion of their budgets on direct economic PUBLIC SECTOR DECENTRALISATION decentralisation is the most comprehensive development support. form of decentralisation. Arrangements for Three broad types of public sector decentralisation resource allocation are usually negotiated DECENTRALISATION between local and central authorities, and • Administrative decentralisation aims at are dependent on several factors including Decentralised governance refers to “the transferring decision-making authority, concerns for interregional equity, availability restructuring or reorganisation of authority so that resources and responsibilities for the delivery of central and local resources and local fi scal there is a system of co-responsibility between of a select number of public services from management capacity. institutions of governance at the central, regional the central government to other lower levels and local levels according to the principle of of government, agencies, and fi eld offi ces of subsidiarity, thus increasing the overall quality and central government line agencies. effectiveness of the system of governance, while

International Labour Ofﬁ ce []Ó 62 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.03 LOCAL GOVERNANCE AND DECENTRALISATION

Four forms of decentralisation* is autonomous and fully independent from the ASSESSING THE STRENGTHS AND devolving authority. Devolution usually transfers LIMITATIONS OF DECENTRALISATION IN • Deconcentration redistributes authority and responsibilities for services to municipalities that THE PHILIPPINES responsibility from one level of the central elect their own mayors and councils, raise their government to another while maintaining own revenues, and have independent authority SETTINGS DIFFER FROM ONE COUNTRY TO ANOTHER the same hierarchical level of accountability. to make investment decisions. In a devolved It is often regarded as the weakest form of system, local governments have clear and legally UNDP’s overview of decentralisation worldwide: decentralisation and used most frequently in recognised geographical boundaries over which unitary states. they exercise authority and within which they • Some 80 percent of developing countries • Delegation is the redistribution of authority perform functions. including the transitional economies of Eastern and responsibility to local units of government • Divestment or market decentralisation refers to and Central Europe are experimenting with or agencies, not necessarily local offi ces of transfer of public functions from government some form of decentralisation. the delegating authority, or semi-autonomous to voluntary, private or non-governmental • In 1999, 96 of 126 countries reported had organisations not wholly controlled by the institutions with clear benefi ts to an involvement at least one elected sub-national level of central government, but ultimately accountable of the public. This often involves contracting government. 42 had two or more elected sub- to the delegating unit or authority. For example, out partial service provision or administration national levels. governments delegate responsibility when functions, deregulation or full privatisation. • In 1997, 52 countries had some degree of fi scal they create public enterprises or corporations, decentralisation. Of these, 48 had at least one housing authorities, transportation authorities In reality, the lines between the types and forms of elected sub-national level. or regional development corporations, which decentralisation mentioned above are not clearly • In 1998, of 75 developing and transition may be exempt from constraints on civil service defi ned. All government systems are likely to have countries with populations greater than 5 personnel and may be able to charge users elements of devolution, deconcentration and million, 63 countries claimed to be embarking directly. delegation. on some form of fi scal decentralisation. • Devolution refers to full transfer of responsibility, decision-making, resources and revenue generation to a local level of public authority that

*Source: www.worldbank.org/publicsector/decentralisation

International Labour Ofﬁ ce []Ó 63 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.03 LOCAL GOVERNANCE AND DECENTRALISATION

The decentralised governance setting will differ Two ways to obtain a good picture of the degree of PLANNING AND BUDGETING PROCESS from one country to another. Some of the specifi c decentralisation in a country: elements on which country situations will differ • Consider the political, fi scal and administrative There are many types of planning systems used are: issues at all levels of government. in developing countries. Some systems are very • National framework for decentralisation • Look at practice at the local level - local council centralised, others are decentralised but top-down • Policy formulation aspects elections, participatory budgeting practices, and others have extensive bottom-up features. The • Fiscal capacity - resource mobilisation, local local government’s borrowing powers and tax budgeting process is similarly diverse. In some revenue generation collection capacity, prevalence of NGOs and countries, local governments have a signifi cant control • Service delivery advocacy groups, community organising and over their budget. In others, central governments • Role of different levels – macro, meso, micro freedom of voice. Ascertain what decisions can essentially perform this function or all locally prepared - in decentralisation be made at local level, not least in terms control plans and budgets are subject to binding central • Role of different domains and actors – public, over resource allocation. guidelines and/or strict central review. A common private and civil society – in decentralisation concern in developing counties is that the planning system is not well linked to the budgeting process, particularly where there is heavy local dependence on Questions to ask: the centre. Enabling environment and institutional structure: • Are decentralised government powers and responsibilities clearly defi ned? Powers and Questions to ask: responsibilities of existing levels of government may be reasonably defi ned by the constitution • How many levels of administration are used and laws, but this is not common in developing countries. There are also cases in which certain for planning and budgeting? functions are explicitly assigned concurrently to more than one level of government. In the most • From what level is the planning process in extreme scenario, local governments have few or no formally guaranteed independent rights or decentralised systems initiated, and at what powers. level are local plans ultimately approved? • What degree of decision-making autonomy is allowed to decentralised levels of government? • Is the decentralised planning process • To what extent do decentralised levels of government have local political legitimacy? Local political adequately linked to the budgeting process? legitimacy (through elections) builds accountability of local government offi cials to their local • How is the decentralised planning process constituents. coordinated and integrated with higher levels?

International Labour Ofﬁ ce []Ó 64 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.03 LOCAL GOVERNANCE AND DECENTRALISATION

SYSTEM OF INTERGOVERNMENTAL FINANCE possibilities, including independent local taxes, RELEVANT RESOURCES fees and charges; taxes shared with higher levels Local governments require access to adequate of government; intergovernmental transfers; • Robertson Work, The role of participation funds if they are to be able to meet their and loans from higher levels of government or and partnership in decentralised functional responsibilities. There are several commercial credit institutions. governance: A brief synthesis of policy lessons and recommendations of nine country case studies on service delivery Questions to ask: for the poor, UNDP New York http://www. • Do local governments have access to sufﬁ cient aggregate resources from all sources to meet undp.org/governance/docs/DLGUD_Pub_ their basic responsibilities? participationandpartnershippdf.pdf • What is the status of local own-source revenues? Local governments rarely have access to • Paul Smoke, “Understanding Decentralization substantial own-sources of revenue, especially in rural areas. The typical challenge for local in Asia. An Overview of Key Issues and governments is: Challenges” in Planning and Financing 1. To identify the most productive sources of local revenue and concentrate efforts on them; of Rural Development in Asia. Regional and Development Dialogue, Vol. 20, No. 2, 2. To develop, as appropriate, new high-potential sources allowed under prevailing legal and Autumn 1999, pp. 1-17 ISSN 0250-6505, administrative framework. copyright 1999 United Nations Centre for • What is the structure of shared taxes and intergovernmental transfers? There may be several Regional Development http://www.virtualref. issues: com/uncrd/675.htm 1. Intergovernmental transfers are often unpredictable, and rely on annual negotiations in central government budgeting process. 2. The criteria for funds allocation may not be transparent so that local governments and their constituents have no way of knowing if they are being treated fairly. 3. The criteria for funds allocation may not make sense. 4. There may be little link between local own-source revenues and resource transfers. • Do local governments have any access to public or private sources of loans for capital investments?

(Source: Paul Smoke)

International Labour Ofﬁ ce []Ó 65 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 1.04 INFORMATION TOOL

DECENTRALISATION AND LOCAL DEVELOPMENT IN THE PHILIPPINES

OVERVIEW BASIC MANDATE OF LGUS ADMINISTRATIVE DECENTRALISATION: LOCAL DEVELOPMENT PLANNING Local development occurs within a local The Local Government Code (LGC) of 1991 or governance context. The decision-making power Republic Act no. 7160 (RA 7160) states in Section The overall purposes for granting and enumerating and autonomy of local governments, local policy 2 (a), Declaration of Policy: powers, duties and responsibilities of LGUs are: makers and stakeholders are determined by the extent of decentralisation. “It is hereby declared the policy of the “efﬁ cient and effective governance and State that the territorial and political … the promotion of the general welfare” OBJECTIVE subdivisions of the State shall enjoy (Section 16, RA 7160). genuine and meaningful local autonomy This tool: to enable them to attain their fullest Pursuant to the above section, Municipal and • Describes the legislative framework for development as self-reliant communities City Mayors and Governors shall “Direct the decentralised planning and local development and make them more effective partners in formulation of the municipal (city/provincial) process in the Philippines - the powers and the attainment of national goals. Toward development plan, with the assistance of the responsibilities of Local Government Units this end the state shall provide for a municipal (city/provincial) development council, (LGUs). It is by no means comprehensive, and more responsive and accountable local and upon approval thereof by the Sangguniang readers are advised to consult the Relevant government structure instituted through a Bayan (panglungsod/panlalawigan), implement Resources listed at the end of the tool. system of decentralisation whereby local the same’ (Sections 444[b1ii], 455[b1ii], • Highlights the potentials as well as constraints government units shall be given more 465[b1ii]). This is consistent with Section 106 for local development under the current Local powers, authority, responsibilities, and which requires each local government unit from Government Code. resources.” the barangay to the provincial level to “have a • Highlights recent policies and attempts at comprehensive multi-sectoral development plan promoting local development, which goes initiated by its development council and approved beyond the physical boundaries of LGUs. by its Sanggunian”. The development councils shall also “assist the corresponding Sanggunian

International Labour Ofﬁ ce []Ó 66 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.04 DECENTRALISATION AND LOCAL DEVELOPMENT IN THE PHILIPPINES

in setting the direction of economic and social major plans and programs of the LGU LGUs are automatically appropriated 40 percent development and coordinating development efforts and its accomplishments during the of internal revenue taxes, the largest single within its territorial jurisdiction”.1 year under review. Presentation is appropriation outside of payments for sovereign performance-oriented indicating types debt. (Section 284, RA 7160) This Internal After preparation and approval by the respective of services delivered and projects Revenue Allotment (IRA) is also required by law Sanggunians, “Copies of the development plans undertaken in the social or economic to be automatically released to LGUs in quarterly of local government units shall be furnished the fi elds.” tranches fi ve (5) days after the end of every Department of Interior and Local Government. quarter. (Section 286, RA 7160) (Section 287) Thereafter: Also included in the Annual Report are “Plans and programs for the Ensuing Year – (which) describe Section 287 requires that: “On or before March 31 of each year, the visions, directions, plans, and budgetary every local chief executive shall submit thrusts of the LGU for the coming year.” (Art. 190 “Each local government unit shall an annual report to the Sanggunian [f and h], IRR, RA 7160) appropriate in its annual budget no less concerned on the socioeconomic, than 20 percent of its annual internal political, and peace and order conditions The LGC does not provide specifi c guidelines for revenue allotment for development and other matters concerning the LGU, local development planning. projects.” which shall cover the immediately preceding calendar year. A copy of the FISCAL DECENTRALISATION The remaining 80 per cent is usually appropriated report shall be forwarded to the DILG…” for operating expenses such as salaries, utilities, (Art. 189, Implementing Rules and Local Government Units (LGUs) are the only etc. Regulations [IRR] of RA 7160) Included government entities that automatically get a share in the Annual Report are “Plans Programs from the taxes collected annually by the national Given the limitations of the national tax collection and Accomplishments - (which) describe government. All other government agencies have system, LGUs are given tax and borrowing in narrative and pictorial manner the to pass through an annual appropriation process, powers through Sections 128 to 383 (Book which requires Congressional approval of their 2 - Local Taxation and Fiscal Matters, RA

1 Section 107 sets out the composition of the development councils. programs and budgets. 7160). In addition, Section 23 allows LGUs to Generally, these councils are composed of the chief executives of negotiate and secure grants and donations even the next lower level of the LGU, NGOs, and a representative of the congressman/woman. without clearance or approval from the national

International Labour Ofﬁ ce []Ó 67 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.04 DECENTRALISATION AND LOCAL DEVELOPMENT IN THE PHILIPPINES

government as long as these do not have national LGC POTENTIALS AND LIMITS FOR LOCAL local autonomy. For this purpose, people’s security implications. However, LGUs have to DEVELOPMENT PLANNING organisations, NGOs, and the private report the nature, amount, and terms of such sector shall be directly involved in the assistance to Congress and the President. STRENGTHS AND POTENTIALS following plans, programs, and activities of LGUs: MANDATE OF LOCAL GOVERNMENT UNITS An examination of the LGC reveals a huge IN LOCAL DEVELOPMENT potential for formulating and implementing plans 1. Local special bodies in the direction of local economic and social 2. Delivery of basic services and facilities Under the Local Government Code (1991), the development. 3. Joint ventures and cooperative LGU is vested with powers that are directly related programs or undertakings to the promotion of general welfare: primary health LGUs are required by law to be automatically 4. Financial and other forms of assistance care, education, basic facilities such as water and and regularly provided with funding through 5. Preferential treatment for organisations sanitation, access roads, and so on. their internal revenue allotments (IRA). Other and cooperatives of marginalised government units are not as fortunate. fi shermen Poverty reduction is the overarching goal of local 6. Preferential treatment for cooperatives development. Local Government Units have a LGUs are also quite free to formulate their development responsibility for poverty diagnosis and formulating development plans and budgets with the 7. Financing, construction, maintenance, local poverty reduction action plans. The National assistance of Local Development Councils (LDCs) operation, and management of Anti-Poverty Commission (NAPC), National at the barangay, town/city, and provincial levels. infrastructure projects.” Economic and Development Authority (NEDA) These councils are required by the LGC to have and the Department of the Interior and Local at least ¼ of its membership composed of NGOs Local Special Bodies (LSBs) include Local Government (DILG) have prepared “A Guidebook operating in the territory. In addition, Art. 62 of the Bids and Awards Committees, Local Health for Local Poverty Diagnosis and Planning”, which IRR states that Boards, Local School Boards, Local Peace and gives a conceptual framework for looking at the Order Councils, and People’s Law Enforcement processes that lead people into poverty and guides “LGUs shall promote the establishment Boards. These bodies provide offi cial venues for Local Government Units in local poverty diagnosis and operation of people’s organisations, participatory planning and implementation of and planning of local poverty reduction strategies NGOs, and the private sector, to make local development plans. Through LSBs, ideas, and programmes. them active partners in the pursuit of information, technical, fi nancial, and human

International Labour Ofﬁ ce []Ó 68 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.04 DECENTRALISATION AND LOCAL DEVELOPMENT IN THE PHILIPPINES

resources outside of the LGU bureaucracy and increase the tasks and responsibilities of LGUs. have to prepare for the next election. From a budget can be mobilised for local economic and The salaries of LGU offi cials and staff and planning perspective, a strategic plan requires a social development (LESD). operating expenses usually eat up a substantial time frame of at least 5 years. Therefore, a mayor portion of the LGUs’ IRA leaving only a small needs to be sure that he or she will be re-elected The Sanggunian at the municipal and provincial amount for LESD. to be able to plan strategically. In reality, one can level is required to have three (3) sectoral never be sure of re-election. representatives – one (1) each from women, There are two main ways that LGUs can overcome agricultural/industrial workers, from other sectors this major limitation – raising revenues and Given their small budgets, LGUs fi nd it diffi cult including the urban poor, indigenous cultural granting franchises basic facilities and services. to hire the human resources needed for LESD. communities, and the disabled. (Section 446[b] To raise revenues, LGUs can either raise local This is why they need to mobilise People’s and Section 467[b]) This presents opportunities taxes, charges, and fees, borrow money from Organisations, NGOs and the Private Sector to for these sectors to directly participate in local government or private sources, issue bonds, compliment their limited staff. They can also legislation and policy-making. secure grants and donations, or combine these tap technical assistance from government line actions. To grant franchises, the respective agencies such as the Department of Labour CONSTRAINTS Sanggunians (Bayan/panglungsod) can pass the and Employment (DOLE), National Economic relevant local laws by a majority vote. (Sections Development Authority (NEDA), Department The biggest limitation is the small budget that 447 [3] and 458 [3]) of Trade and Industry (DTI), Department of individual LGUs get. The LGC requires them Agriculture (DA), Department of Social Welfare to employ a minimum of 20 appointed offi cials Tool 5.04 gives an overview of fi nancing options for and Development (DSWD), and others. such as the Planning and Development Offi cer, LGUs and presents short case studies describing Engineer, Health Offi cer, Architect, Veterinarian, local fi nancing innovations. Overall, these challenges cannot override the huge Population Offi cer, Cooperative Offi cer, etc. The potential of LGUs to lead the way towards local LGC also requires LGUs to provide a host of basic Another major constraint is the term limit of 3 economic and social development. services and facilities. (Section 17, RA 7160) In years imposed on elected LGU offi cials. This addition, hundreds of circulars, executive orders, gives newly elected offi cials a very short period and directives from the DILG, the Offi ce of the to learn the mechanics and dynamics of local President and other government agencies further development. By the time they learn, they will

International Labour Ofﬁ ce []Ó 69 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.04 DECENTRALISATION AND LOCAL DEVELOPMENT IN THE PHILIPPINES

REGIONAL DEVELOPMENT Over the past decades, different strategies POLICY AND LEGISLATIVE FRAMEWORKS and schemes for regional development, which OVERALL EXPERIENCE go beyond the territorial limits of LGUs, have The medium-term development plan provides the been adopted and tried: the Integrated Area policy framework and broad guidelines for regional Regional development goals (e.g. the dispersal of Development approach in the 1970s, which led to development. industrialisation away from Metro Manila, a focus a number of IAD projects; the Countryside Agro- on depressed regions, a more balanced economic Industrial Development Strategy in late 1980s, The Local Government Code contributes to and social development across regions, or which involved the establishment of Regional the policy framework for regional planning and reduction of inter-regional disparities) have been Industrial Centres; the development of growth development: enshrined in presidential policy and administrative networks and Area Development Plans in the agenda since 1960s when the Government 1990s, which promoted industrial, agricultural • It encourages local governments to group became more conscious and explicit about the and tourism linkages over a much wider area themselves, develop alliances and form spatial aspects of policies and programmes. But encompassing multiple cities, provinces, islands partnerships with civil society in managing regional planning institutions had little say until and regions, such as the Cagayan de Oro-Iligan development. after 1987 when serious efforts were taken to Corridor (CIC), the North western Luzon Growth • It recognises metropolitan arrangements decentralise powers to regional ad local bodies: Quadrangle (NWLQ) and the Brunei Darussalam- consisting of clusters of LGUs. inclusion of the private sector in Regional Indonesia-Malaysia-Philippine-East ASEAN Growth Development Council (RDC) membership involving Area (BIMP-EAGA) involving Mindanao. LGUS AND REGIONAL DEVELOPMENT citizens, business groups and NGOs, abolition of the NACIAD and transfer of its functions over What is clear from above is that there has been However, the link or coherence between the Integrated Area Development projects to the RDCs increasing political recognition of the importance substantive planning role of LGUs under the LGC and the Offi ce of Provincial Governor, and the of developing linkages among economic units, and the function of regional planning institutions, passage of the Organic Acts for Muslim Mindanao activities, services and institutions over a much specifi cally the Regional Development Councils and the Cordilleras and the Local Government wider area beyond the limits of political and and regional offi ces of the National Economic Code. administrative units (the LGUs). Development Authority, is not clear.

International Labour Ofﬁ ce []Ó 70 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 1.04 DECENTRALISATION AND LOCAL DEVELOPMENT IN THE PHILIPPINES

A number of issues have also prevented the RELEVANT RESOURCES LGUs from fully contributing to balanced regional development: • The Local Government Code of 1991 (R.A. 7160) http://www.dilg.gov.ph/ • Discrepancy in the share of LGUs in the LocalGovernmentCode.aspx#b2t3c1 national tax revenue relative to the costs of their • Rules and Regulations Implementing the Local functions Government Code of 1991 (R.A. 7160) as • Disparity between LGUs with respect to their Compiled by Arellano V. Busto. shares of the national tax revenue • Ruben G. Mercado, Regional Development in • Disparities between LGUs in their capacities to the Philippines: A review of experience, state generate revenue of the art and agenda for research and action. • Disparities between LGUs with respect to Philippine Institute for Development Studies. access to commercial sources of ﬁ nance Discussion Paper Series NO. 2002-03. http:// www3.pids.gov.ph/ris/pdf/pidsdps0203.PDF • Rosario Manasan, Decentralisation and service delivery study: Public expenditure management. Philippine Institute for Development Studies. • Rosario Manasan, Fiscal decentralisation: The case of the Philippines. Philippine Institute for Development Studies.

International Labour Ofﬁ ce []Ó 71 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 1.05 INFORMATION TOOL

INGREDIENTS FOR SUCCESSFUL LOCAL ECONOMIC AND SOCIAL DEVELOPMENT

OVERVIEW INGREDIENTS FOR SUCCESSFUL LOCAL They encourage local residents to look at new ECONOMIC AND SOCIAL DEVELOPMENT possibilities and new development alternatives. There are some communities that make things These communities also display a commitment happen and those that continually struggle to BELIEF AND EXPECTATION IN SUCCESS to quality and excellence in business and survive. Experience shows that there are a number community life. They look for good practice in of key ingredients for successful local economic Successful local development requires local local development and constantly search for new and social development. communities to develop community attitudes approaches. and behaviours that demonstrate a belief and OBJECTIVE expectation that their efforts will achieve a positive COLLABORATION BETWEEN KEY AGENCIES outcome. Successful communities take charge This tool discusses some of the essential of their situation and organise to address their Collaboration does not occur easily. It requires ingredients that underpin successful local development problems. They display a positive constant attention to organisational relationships economic and social development. mind-set and a belief in a better future for their and a commitment to collaboration by lead local community. agencies. Communities that are successful in their It focuses on the ‘soft’ issues or community development efforts take a participatory approach features of development, which are often Local communities with a belief and expectation to community decision-making. They ensure overlooked by a more technical approach to for success do not wait for national or regional that collaboration between key local agencies development. government to come and solve their problems. leads to joint decisions. This kind of collaboration They take action themselves and develop a ‘can is fostered by a strong sense of identity as a Through this tool, local development practitioners do’ spirit. They commit local resources, such as community. It involves mechanisms to maintain and planners will appreciate the importance time, money and energy to local development. local interest and sustain the involvement of all of strengthening and supporting community Successful communities display a willingness to collaborating parties beyond the ﬁ rst rush of processes that enhance these ingredients. experiment, make changes and take risks. enthusiasm.

International Labour Ofﬁ ce []Ó 72 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 1.05 INGREDIENTS FOR SUCCESSFUL LOCAL ECONOMIC AND SOCIAL DEVELOPMENT

Successful collaboration requires local agencies may also be volunteers––local people with a the long term, rather than dependence on quick- to fi nd a compromise and to positively manage commitment to their community. fi x solutions. They have a clear framework for community confl ict. It involves open and frequent economic and social development and a shared communication between all stakeholders. It also Leaders must have a belief in the processes of vision that combines the best of old and new requires cooperation between the public, private local development and possess the appropriate development ideas. and community sectors as well as the integration skills, knowledge and attitudes to manage change. of economic, social, cultural and environmental Successful local communities recognise the need objectives. Leadership is a constant challenge. Existing for change management. They are capable of leaders and local organisations should be adjusting to periods of economic restructuring, Collaboration is not only about local agencies continuously looking for new leaders. Current where some local industries may decline, by collaborating with one another, it is also about leaders must show that new leaders are welcome refocusing on new areas of potential growth. collaboration between local and external agencies. and that local decision-making is shared. This may involve provincial, regional and They take a global focus to development, with national government agencies, but it might also It is important to involve women leaders as well an awareness of both their own comparative involve national trade union bodies or business as men. It is also important to involve young advantages and the opportunities created by associations and chambers of commerce. leaders as well as old. The encouragement and increased trade. acceptance of women in leadership roles and the Collaboration on local projects and businesses active involvement of young people is critical to Successful local communities are also active can achieve a critical mass by building business success in local development. in provincial and regional structures. They linkages through, for example, networks or clusters. understand the need to go beyond their own ABILITY TO MANAGE CHANGE AND TAKE A borders and participate in networks, structures and LOCAL LEADERSHIP AND VISION STRATEGIC OUTLOOK organisations that affect their broader environment.

Successful local development requires a core Success in local development requires local These communities use strategic planning of local leaders who are committed in terms of communities to take a strategic outlook in terms processes to undertake a realistic appraisal of the their time and priorities to local development. of their planning and action. Communities that feasibility of potential opportunities. They constantly These leaders may be paid (e.g., the local mayor, are successful in their development efforts display research and rank the range of development councilors or a barangay captain), but they a commitment to participatory processes over options that are open to them and continually

International Labour Ofﬁ ce []Ó 73 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 1.05 INGREDIENTS FOR SUCCESSFUL LOCAL ECONOMIC AND SOCIAL DEVELOPMENT

identify the range of resources they can access that is focused on what is possible and on a • Servicing citizens as customers from within their boundaries as well as beyond. constant search for the next new opportunity. • Measuring success by results achieved rather They evaluate and adjust their strategy and action than inputs applied plans on a regular basis. THE ROLE OF THE LOCAL GOVERNMENT • Investing resources for long-term benefi ts rather UNIT than spending for short-term pay offs OPPORTUNITY-SEEKING, CREATIVITY AND • Forming horizontal alliances and collaborating ENTREPRENEURSHIP Successful local development can also require with stakeholders to achieve common goals an effective Local Government Unit (LGU). While rather than acting hierarchically to impose Local communities that are successful in local local development can be undertaken by other uniformity development display a continued alertness to new community organisations, the involvement, support • Engaging in a process of joint problem-solving development opportunities. They are engaged in a and leadership of the LGU is often very important. that taps into the creativity and resources of all never-ending search for ‘best practice’ processes, local stakeholders development options and resources. The Local Development and Decent Work approach represents a fresh way of viewing public LGUs need to examine the roles they perform in They look for possible linkages with the outside leadership. It is characterised by the following local development and to look for ways to improve world and with development activities that surround behaviours: their functions in this fi eld. them. • Engaging and enabling others through CONCLUSION They develop the ability to respond quickly and participatory and consensus building activities positively to new opportunities, as well as the ability rather than directing or announcing Most of the ingredients referred to in this tool to fashion opportunities and options into their own • Activity that is mission and vision driven rather are concerned with community factors. They local, customised approach. than program driven are all ingredients that can be created by a local • Creating opportunities rather than reacting to community. Local development practitioners Opportunism in local development means that problems that get out of hand and planners should keep these ingredients in local communities are aware of their own resources • Acting in an entrepreneurial manner with fl exible mind and constantly look for ways to nurture and and how these can be applied in different ways in authority to achieve results through innovation strengthen them wherever possible. response to new development opportunities. It is and experimentation rather than acting in a about developing an enterprising, ‘can do’ attitude centralised, hierarchical manner

International Labour Ofﬁ ce []Ó 74 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

PART TWO: TERRITORIAL DIAGNOSIS AND ANALYSIS

INTRODUCTION here because they are part of local development A more in-depth investigation into the causes planning in the country. Moreover, they are equally and processes of particular problems should be Part 2 contains assessment tools for collecting and relevant in assessing and promoting decent work. undertaken to guide planning. analysing information that would give a picture The tools in Part 2 are concerned with determining of the general situation in the local area. The and assessing overall trends in the local area Part 2 can be supplemented with assessment assessment tools contain: – for example, the level and incidence of different tools found in Part 3 and Part 4 of this Resource • Guidelines or checklists for relevant information dimensions of poverty, and extent and nature of Kit. The tools in Parts 3 and 4 are concerned that should be collected and analysed gaps in decent work. One can use these tools to with speciﬁ c issues and technical ﬁ elds, and are • Indicators or measurements for decent work determine overall development performance of to be used for obtaining in-depth information and poverty the local community and to evaluate impact of on a particular area of concern – for example, • Suggestions on possible sources of relevant development plans and project interventions. the nature and extent of social risks and information vulnerabilities. The tools will help determine what is happening, The tools that are already extensively used by the not why it is happening or what the causes are. LGUs and institutionalised in the Philippines, such as the MBN indicators and IRAP, are included

International Labour Ofﬁ ce []Ó 76 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 2.01 ASSESSMENT TOOL

TERRITORIAL DIAGNOSIS

OBJECTIVE PURPOSE OF TERRITORIAL DIAGNOSIS AND decision-makers should decide and choose SITUATIONAL ANALYSIS the most important information they need. For Before taking or planning action, it is important to example, comprehensive local development plans fi rst address the question “Where are we now?”, In general, the purpose of territorial diagnosis and require comprehensive information on the social, which will help you to address the next question, situational analysis is to acquire knowledge about economic and institutional situation of the local “Where do we want to go?”. Territorial diagnosis the local economy and the community, and its community. In some cases, the municipality, and situation analysis is the fi rst step in planning resources, strengths and weaknesses in order to city or province already has the necessary socio- and implementing local development strategies. help local planners and stakeholders to identify economic and institutional data. In other cases, Its purpose is to acquire knowledge about the a priority objective for action. The amount of only some additional information might have to be local economy and the community, its resources, information that should be obtained, what topics collected. More specifi cally focused projects would strengths and weaknesses, in order to help local should be covered and the depth of analysis to be likely require a more limited amount of data. planners and stakeholders to identify a priority made depend on, briefl y, two main factors: objective for action. In many cases, it is always useful to begin with 1. Whether the diagnosis is meant to be used a rapid assessment rather than an ambitious This assessment tool gives practical guidelines in formulating a comprehensive development research that tries to cover many issues in depth on information collection and suggests the types plan, or to be used in formulating at one time. The results of the rapid assessment of information that may be relevant for creating interventions or actions on a specifi c question/ would usually be able to indicate main trends and a local area profi le, and in assessing a territory’s problem (or a limited set of concerns) key issues, which can be used for the following: opportunities and threats. It also identifi es the 2. The amount of fi nancial and human relevant analytical tools that can be found in this resources, and time available to the planners 1. Sensitise local stakeholders with suffi cient resource kit. and local stakeholders information about the territory, its assets and resources, and engage local communities to Collecting and analysing information demands do further analysis time, people and money. Local planners and 2. Formulate proposals for quick-impact measures and to begin long-term strategy

International Labour Ofﬁ ce []Ó 77 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

3. Advise how existing policies can be adjusted accessible information. One can use conduct local area meetings, organize towards more economically, socially and qualitative scores, for example: low, medium focus group discussions involving specifi c environmentally sustainable development in or high; poor, average or excellent. groups or members of the community, and the long term 4. Limited resources to collect information limit sample survey of individuals, households or 4. Monitor and assess on-going performance the availability of data. enterprises. and fi nal outcomes of LED actions 5. Not having complete and comprehensive data 8. Before and when collecting data, ask: 5. Guide and focus succeeding data collection should not stop the process. • What information already exists about the and analysis oriented towards more specifi c 6. Relative data is often more meaningful and local area, the local economy and the local topics for which information is not adequate useful for decision-making than absolute data, employment and labour market situation? as long as the data is consistent and useful • What will this information be used for? A FEW TIPS ON DATA COLLECTION as an indicator for comparative analysis. An • Will it help to make decisions? example of an absolute data is simply the • Is it possible to get a set of initial data 1. Take advantage of the best available number of working-age adults in a year or cheaply, i.e., through a workshop or information within the resources and in a place. Examples of relative data and meeting with experts and knowledgeable constraints comparative analysis are: (i) the number or people, and then fi ll in the gaps later? 2. Beware of data bias – this occurs when only proportion of working-age adults who are the data that is already available is used to not employed in the previous year compared WHERE AND HOW TO BEGIN make decisions. Readily available information to the number or proportion of working-age is often limited in content or focus; they are adults not employed at all in the current year; 1. Collect and review all assessments and usually about formal and/or big business (ii) the number or proportion of working –age studies (current and recent) on the economic activities, are about wage employment in the adults not employed in a village compared to and social development of the area that have formal sector; and often excludes the activities the number or proportion in another village. been completed. This will help identify the of the poor and those working in the informal What is the trend – increasing or higher in one aspects of the situation, guide the directions economy, such as the self-employed and than in another? and methods of the information collection micro entrepreneurs. 7. The main methods of collecting information process, and avoid repeating work already 3. When hard data is not available, it is possible that can be considered, reviewed or used done. to use qualitative data or descriptions are: obtain data from existing records, 2. Create a basic local area profi le – basic to incorporate non-quantifi able or easily visual observation, interview key informants, economic, employment and demographic

International Labour Ofﬁ ce []Ó 78 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

profi le. Much of these data can be collected • Measurement of poverty level has no access or has diffi culty to reach these through rapid assessment. In some cases, • Assessment of local situation regarding facilities and services? the data already exists and needs only to be decent and productive employment - Tool 2.05: Integrated Rural Accessibility organized and/or updated. • Livelihood assessment Planning (IRAP) 3. Annex 2.01A gives a Checklist of Information • Identifi cation of people exposed and 2. Local situation regarding decent and for Creating a Local Area Profi le, which lists vulnerable to high risks of income loss productive employment: Are people’s needs for and describes the types of data that may be • SWOT analysis (Strengths, Weaknesses, decent and productive employment being met gathered to draw a local area profi le. The local Opportunities, Threats) in the local area? What are the major problems planner or decision-maker is not expected to • Mapping of relevant institutions providing and who are most affected? obtain and analyse all the information in the key services or performing important - Tool 2.02: How to measure and monitor list. This checklist is meant to guide the user functions in the area decent work gaps at local level in identifying the information that might be - Tool 4.04.01.1: How to assess job quality in required. Annex 2.01B provides a guide for doing a SWOT work places and enterprises 4. Conduct assessments and analyses Analysis. Annex 2.01C provides a Checklist of 3. Local economy: Are local incomes generated 5. There are many types of analysis that can Information for Local Institutional Mapping. in the local area leaking out rather than help direct and design local development circulating and accumulating in the loca area? strategies. The choice of what additional RELEVANT TERRITORIAL DIAGNOSIS TOOLS Are local economic activities few and limited or information to collect and what kind of IN THE RESOURCE KIT diverse? analysis to do depends on what questions - Tool 2.03: Assessing your local economy and issues need to be addressed for decision- The list below gives some of the common 4. Local livelihoods: What is the capacity of the making. Examples of analyses that may be concerns that emerge in making decisions and local community and especially the households undertaken: planning for local development. Under each topic, and persons living in poverty, to initiate, sustain • Analysis of the local economy – markets; the assessment tools that may be used and that and diversify means of livelihood? What are the supply chain analysis or value chain are available in this resource kit are specifi ed. strengths and resources for local livelihoods? analysis; “leakage” (income that is leaving What are the constraints? the area) in the economy 1. Basic facilities and services that are necessary - Tool 4.03.03: Analysing livelihoods of poor • Availability of basic facilities and services in for people’s basic needs: Does the community communities and areas the area have access to these basic facilities? Who

International Labour Ofﬁ ce []Ó 79 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

5. Risks and social vulnerability: What are the ACKNOWLEDGMENTS risks to sustained income and employment in the local area? Which groups of the local • The Institutional Mapping Checklist was area are highly exposed to these risks and are taken from: Martin Gasser, Carmelo Salzano, not protected by any means in case of loss of Roberto di Meglio and Alfredo Lazarte-Hoyle, income or emergencies? Local Economic Development in Post-Crisis - Tool 4.03.06.2: Assessing social risks and Situations. An Operational Guide. Geneva: vulnerabilities in the local community International Labour Offi ce, 2003. 6. Situation and constraints in local microfi nance: • The Checklist for Local Area Profi le was What is the demand and supply of fi nancial drawn from: William Trousdale, The Manual. services in the area? Is there a need for Strategic Planning for Local Economic microfi nance scheme? Development. Volume I: Concepts and - Tool 4.03.7: Assessing the potential for local Process. (Editing Draft), UN HABITAT and EPI microfi nance EcoPlan International, Inc., September 2004.

International Labour Ofﬁ ce []Ó 80 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

ANNEX 2.01A CHECKLIST OF INFORMATION FOR CREATING A LOCAL AREA PROFILE

HUMAN AND SOCIAL CAPITAL RELEVANT ASPECT BASE DATA Leadership, partnerships and organization Capacity and resources See Annex 2.01C: Checklist of Information for Local Institutional Mapping See Tool 3.02.1: Assessing local social dialogue institutions and processes Knowledge and information Business, market and economic Issues related to costs of business start-up and operation (permit fees, taxes, regulations, lease rates, labour costs, land costs) Historical review of the development of the area and local economy Inventory of businesses and business services by sector, type, size, number of employees, products/services, sales Estimation of size, characteristics of informal, barter, non-legal economy Listing of largest employers Identiﬁ cation of primary markets and linkages for existing producers Identiﬁ cation of key economic leakages – when and why local money leaves the local economy Foreign investment and trade Taxation policy (e.g. property taxes, exemptions, etc.) Taxes Cost of business start-up (typical start-up costs, business permit fees and time requirements, land, taxes, labour costs, lease rates)

International Labour Ofﬁ ce []Ó 81 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

HUMAN AND SOCIAL CAPITAL RELEVANT ASPECT BASE DATA Quality of life Living standards, cost of living Heritage, culture, recreation, social services and health facilities and resources Unique local features/identity that inﬂ uence quality of life, retain local population, attract new residents Demographic Poverty and income levels (e.g. poverty mapping by village, district, etc. Population & household size, growth rates Population age & sex distribution and projections Ethnic composition (indigenous and tribal populations & communities, population by caste, ethnic origin, race, colour, etc.) Mobility: out and in-migration rates Household and family Household size and family structure Household income Skills, competency and innovation Institutional Educational institutions by size, programmes, research capabilities Government resources and services Business facilities (management training, technical assistance programmes, business development associations and centres, business incubators, convention-trade shows Non-government institutions and service agencies Other programmes and opportunities that might help local economic development efforts

International Labour Ofﬁ ce []Ó 82 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

HUMAN AND SOCIAL CAPITAL RELEVANT ASPECT BASE DATA Literacy and educational attainment Literacy rate of working-age population – men, women Distribution of working-age population by highest educational attainment or number of years of schooling completed – men, women Children of school age who are enrolled in school and out of school – girls, boys Local Knowledge and Experience Level of entrepreneurial spirit Successful and unsuccessful past local economic development initiatives (why did failures occur, best practices, business closures, recent business start-ups) Level of entrepreneurial activity and small business development to assess local area capacity FINANCIAL CAPITAL RELEVANT ASPECT BASE DATA Financial Financial services Availability of fi nancial services (e.g. accounting, fi nancial analysis, land valuation, tax information, etc.) Access to fi nancing (credit) Availability of fi nancing for business development and expansion (e.g. government programmes, banks, other lenders, microfi nance Local government budgets Local taxes, user fees, transfer payments, grants

International Labour Ofﬁ ce []Ó 83 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

INFRATSRUCTURE, TECHNOLOGY AND PHYSICAL CAPITAL RELEVANT ASPECT BASE DATA Technology, machines, tools, factories Condition of physical plants Plant, factory and business technology assessment Location Geographic aspects Location in relation to regional markets, major urban centres, transportation linkages Built environment Applicable data on buildings and land use Non-residential building inventory (age, size, availability, lease rates, competitiveness) Residential building inventory, availability or vacancy rates, lease rates Land inventory – availability of land, zoning and use regulations, status Infrastructure Quality, capacity and availability of certain Communications, telecommunications facilities and utilities Utility (water, sewer, etc) infrastructure (also see Tool 2.3) Energy infrastructure (capacity, costs, reliability) Waste management Transportation infrastructure (major roads and highways, rail access, ports, airports, bus/truck services, shipping services NATURAL CAPITAL RELEVANT ASPECT BASE DATA Resources Primary resources Minerals, forests, land, water, etc. Resource processing Type, quantity, markets Living systems Quality of life Climate, topography Aesthetics Natural and scenic resources Ecosystem services Economic support Flood control, waste treatment and recycling, pollution absorption and puriﬁ cation, soil management

International Labour Ofﬁ ce []Ó 84 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

SOCIO-ECONOMIC SITUATION AND DYNAMICS RELEVANT ASPECT BASE DATA General economic picture Local economic indicators Local area GDP, share of different sectors Basic living basket cost Inﬂ ation and devaluation rate Average income per capita – men, women Poverty incidence Labour market situation Labour force and employment Labour force participation by sex, age, occupation, industry Labour force by skills classiﬁ cation, education and training Employment and unemployment rates and numbers by sex, age, occupation Wage-earners – men, women Self-employed (own-account workers, employers) - men, women Unpaid family workers – men, women Wages Minimum wage and prevailing wage for relevant occupations Minimum wage – men, women Gender Women’s issues related to the local economy (see Tool 4.05.03) Job opportunities for women Women’s constraints for entering the job market, level of participation, economic expectations

International Labour Ofﬁ ce []Ó 85 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

ANNEX 2.01B SWOT ANALYSIS

Strengths inside the local area List strengths Strengths are local assets and resources. Examples: people who possess certain skills and talents, the local culture, crafts, natural resources, capable and active local organizations, effi cient local government, local industries and businesses, etc. Questions to ask: • What are the local area’s strongest resources? • What are the primary economic opportunities in the area? • What opportunities exist to maximise the strength of this resource? • What resources could, with support, promotion or investment, can become strength? List top 3 strengths to build on: • Which strengths would generate the biggest improvements and benefi ts? • What strengths are the easiest to support? Weaknesses inside the local area List of weaknesses Weaknesses refer to inadequacies of the area and to local conditions that hamper local development or make it diffi cult for the local community from improving the quality of life in the area. Examples: low quality of infrastructure, skills and entrepreneurial capacity; weak or ineffective local government; red tape; indifference and lack of social awareness in the community; social confl icts; lack of land and water resources; etc.

International Labour Ofﬁ ce []Ó 86 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

Questions to ask: • What are the liabilities and problems that can hamper the area from achieving economic development and generating employment opportunities for its people? • What are the biggest weaknesses or problems in the area? Think back to what stimulated this planning process. • What problems are faced by businesses in dealing with the local government and other levels of government? • What are the needs and constraints that restrict the accomplishment of business and economic development initiatives (e.g. poor management experience, poor knowledge of markets)? • What are the obstacles that people face in securing better jobs or means of livelihood? List top three weaknesses to reduce: • Which are impossible to change? Put this aside. • Where can the biggest changes occur? • Which are the easiest to address? Opportunities from outside the local area List of opportunities Opportunities are conditions, developments and institutions outside the local territory that present potential benefi ts for the area. Examples: market prices and demand; policies, laws, regulations; programmes; people and organizations; new technology, etc. Questions to ask: • What opportunities exist that could reinforce, maximise or support the existing strengths that have been identifi ed in the previous questions? • What opportunities exist that could be used to reduce the existing weaknesses that have been identifi ed in the previous questions?

International Labour Ofﬁ ce []Ó 87 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

List top three opportunities to exploit or to take advantage of: • Which are impossible to take advantage of? Dismiss these. • Which opportunities could result in the biggest changes or improvements? • Which opportunities are the easiest to support or to take advantage of? Threats from outside the area List of threats Threats are external sources of dangers and risks for the local economy and the people of the area. Examples: unstable oil prices and risk of more increases, changing preferences of buyers of local products, opposition from other political parties, cheap imports that compete with local products, reduced demand for overseas workers, typhoon and natural disasters, etc. Questions to ask: • What obstacles and other factors outside the local area might hamper efforts of the local area in making improvements? • What threats exist that might reduce or counteract the strengths and the opportunities that have been identiﬁ ed? • What threats exist that might reinforce the weaknesses that have been identiﬁ ed? List top three threats to reduce, avoid or to change: • What could be done in order to minimize the negative effects of these threats or reduce the likelihood that these threats will occur? • Which threats are impossible to remove or reduce? What can be done in case these threats become a reality?

International Labour Ofﬁ ce []Ó 88 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

ANNEX 2.01C CHECKLIST OF INFORMATION FOR LOCAL INSTITUTIONAL MAPPING

INSTITUTIONAL/POLITICAL INFORMATION Category Sub-categories Administrative boundaries (represented in a map) Local and decentralized institutions dealing with social and economic development Detailed composition of municipal structures, including human and physical resources NGOs with ongoing or planned activities dealing with social and economic development Private sector organizations Chambers of Commerce Producers’ associations Cooperatives Banks Microﬁ nance institutions Schools, training institutions and universities Research institutions Non-government organizations (NGOs) and grassroots/community- Education based organizations Gender issues Youth Environment Economic development Community development Poverty alleviation Planning Vulnerable groups (tribal communities, immigrants, refugees, internally displaced persons etc.)

International Labour Ofﬁ ce []Ó 89 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

INSTITUTIONAL/POLITICAL INFORMATION Category Sub-categories Employers’ and self-employed persons’ associations Trade unions Organizations for management of common services Business development services: Market access Infrastructure Policy/advocacy Input supply Training and technical assistance Technology and product development Finance/micro-ﬁ nance : Loans Insurance Other relevant matters Irrigation systems Mechanical pool Storage facilities Other relevant matters Religious organizations and entities

International Labour Ofﬁ ce []Ó 90 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

LEGAL FRAMEWORK FOR DECENTRALIZATION REGARDING INCENTIVES AND REGULATIONS REGARDING INVESTMENTS IN SOCIAL AND ECONOMIC SECTOR Category Sub-categories Regional, provincial, municipal and/or city laws and regulations Special business promotional framework For small and micro-enterprises For farm development For agricultural development For tourism For industrial or other sectoral development Investment attraction policy, industrial zones, etc. Banking policy, rules Legislation for the creation, ﬁ nancing and administration of Civil society entities associations and professional organizations Entrepreneurial associations Cooperatives Other relevant associations/organizations ONGOING AND PLANNED DEVELOPMENT INITIATIVES Category Sub-categories International cooperation programmes with activities in the social Infrastructure and economic sectors Technical assistance Credit Training Tool and equipment Business services Other relevant matters National/regional/local investment plans impacting on the social and economic environment Private initiatives related to key strategically economic sectors

International Labour Ofﬁ ce []Ó 91 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.01 TERRITORIAL DIAGNOSIS

ONGOING AND PLANNED DEVELOPMENT INITIATIVES Category Sub-categories Decentralized investment programmes for social and economic infrastructures Inter-fi rm cooperation and synergies/industrial clusters Between fi rms within the territory; with fi rms outside the area In which sector or industry Cooperation among private and public actors Which institutions and/or fi rms are involved Nature of cooperation Source: Martin Gasser, Carmelo Salzano, Roberto di Meglio and Alfredo Lazarte-Hoyle, Local Economic Development in Post-Crisis Situations. An Operational Guide. Geneva: International Labour Offi ce, 2003.

International Labour Ofﬁ ce []Ó 92 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 2.02 ASSESSMENT TOOL

HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

OVERVIEW WHAT ARE THE GAPS IN DECENT WORK IN These gaps are bigger and more serious in YOUR AREA? some local areas and for certain groups of the Prior to designing strategies and projects to population than for others. In order to reduce the address problems of work, it is recommended The reality for most people is that their actual decent work gaps between aspiration and reality, that the baseline situation be measured and work situation is lower than their decent work we need to identify these gaps in decent work and determined. In order to assess the performance of aspirations. We can call these “decent work gaps”. understand why these gaps exist. local development interventions and their impact on decent work, it is recommended that decent Poverty, social dissatisfaction and social conﬂ icts can often be traced to decent work gaps, for work gaps be monitored at regular intervals. Decent work aspirations example: OBJECTIVE • The lack of employment itself “Decent work This assessment tool lists questions and data gap” • Inadequate and irregular incomes requirements for identifying and monitoring • Lack of ﬁ nancial capability to acquire food, shelter, health care and education “decent work gaps” in the locality. Actual work situation • Heavy work load in unsafe and unhealthy working conditions • Absence of any hope for advancement and a sense of hopelessness.

FOUR TYPES OF DECENT WORK GAPS:

Rights Gap refers to denial of freedom of association, forced labour, child labour and discrimination.

International Labour Ofﬁ ce []Ó 93 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

Employment Gap refers to the inability of people to WHY SHOULD WE MEASURE DECENT WORK fi nd and secure a source of livelihood and to earn GAPS? Three Major Steps to Follow For Assessing enough to get their families over the minimum Decent Work Gaps poverty line. It refers to precarious employment, to It is important to look at problems of work – long hours of work that result in little earnings. “decent work gaps”. Poverty, social dissatisfaction 1. Assess reality and know the current and social confl icts can often be traced to situation – What are the problems? Social Protection Gap refers to income insecurity defi ciencies in “decent work”. Gaps between Where are the biggest gaps in “decent and job insecurity. It refers to exposure to people’s decent work aspirations and their work”? risks (such as illness, death, natural disaster, reality exist everywhere. The gaps are bigger in 2. Set specifi c goals and targets for the retrenchment) that could threaten your ability to some local areas and for certain groups of the immediate future (1 or 2 years) and the meet your basic needs combined with little or no population than for others. In order to bridge medium-term future (3-5 years) – What ability to protect yourself and your family against reality and aspiration, we need to start by facing are the major problems that should be those risks and their consequences. the gaps in decent work and understand why addressed? Where should improvements these gaps exist and persist. be made? Social Dialogue Gap refers to lack of or limitations 3. Adopt and implement strategies, in organisations, institutions and attitudes that DATA GATHERING measures and programmes to move hinder workers and employers from having their from reality to goals and targets voices heard. Agricultural workers, domestic In the Philippines, some data that are collected workers, employers and entrepreneurs of small nationally and at the barangay and municipal based monitoring systems. Local planners and micro enterprises, home-based workers, levels could be used to determine the situation of and development practitioners need to collect workers in the informal economy, and migrant the municipality with respect to “decent work”, additional information to diagnose the situation workers often face specifi c problems and barriers and to identify where there are problems. Some of and establish a baseline, and at regular intervals to organising and representing themselves in the MBN indicators currently used widely by Local or after a certain period of time, in order to monitor consultative and decision-making bodies. Government Units are useful. the progress and impact of local development interventions on decent work. However, for most of the features of decent work, data are not being collected systematically under any of the current statistical or community-

International Labour Ofﬁ ce []Ó 94 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

GUIDE TO DATA REQUIREMENTS CROSS-REFERENCES

To measure and monitor decent work gaps • Tool 1.02, Information Tool: The Decent Work at the level of the community (barangay and Framework municipality), refer to the attached Table 2.02, • Tool 2.05 Information Tool: Integrated Rural which presents selected dimensions of Decent Accessibility Planning (IRAP) Work. For each dimension of decent work, • Tool 3.02.01, Assessment Tool: Assessing the table gives the corresponding information local social dialogue institutions and processes requirements, suggestions on relevant Philippine • Tool 4.03.02, Information Tool: Relevance statistics and MBN indicators that can be used, of decent work to local poverty reduction: suggestions for additional information to be diagnosis and action collected, and reference to speciﬁ c assessment • Tool 4.03.03, Analysing livelihoods of poor tools in this Resource Kit that should be used. communities and areas • Tool 4.03.04, Information Tool: Local poverty Another assessment tool in this Resource Kit, Tool monitoring and target-setting - Philippine 4.04.01.1, gives speciﬁ c guidelines for measuring MBN indicators job quality in workplaces and enterprises. • Tool 4.03.06.2, Assessment Tool: Assessing social risks and vulnerabilities in the local community • Tool 4.04.01.1, Assessment Tool: How to assess job quality in work places and enterprises • Tool 4.05.01, Information Tool: Fundamental rights at work • Tool 4.05.05, Assessment Tool: Identifying problems of child labour in the community

International Labour Ofﬁ ce []Ó 95 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

TABLE 2.02: SELECTED DIMENSIONS OF DECENT WORK AND THEIR DATA REQUIREMENTS

LDDW Assessment Tool and suggestions for Relevant Philippine Statistics, MBN Dimension of Decent Work Information Requirement additional information or other sources of data or Indicator methods for gathering data 1. Remunerative Work Employment opportunities can be Philippine Labour Force Surveys: measured in terms of how many are Data on employment level, employed out of the whole population employment, unemployment and in the area. The lack of employment underemployment rates are available opportunities can be measured by the for the whole country, and by region number of those who are not employed or province. The data can be obtained but looking for work (unemployed) from the National Statistics Offi ce and the number of those who are and its regional or provincial offi ces, underemployed. Underemployment and the Bureau of Labour Statistics can refer to those who are working for of the Department of Labour and less than a certain average hours per Employment and its regional offi ces. week (for example, less than 40 hours, or those working for 40 hours or more but looking for more work because of low earnings.

International Labour Ofﬁ ce []Ó 96 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

LDDW Assessment Tool and suggestions for Relevant Philippine Statistics, MBN Dimension of Decent Work Information Requirement additional information or other sources of data or Indicator methods for gathering data MBN-CBPIMS indicators: MBN indicators refer to households. The • Number of households whose problem of lack of employment needs to be head is employed established at individual level. The LGU might • Number of households whose decide to analyse the data on individuals members aged 15 (or 18) years (working age) for a more precise assessment of old and above are employed the employment situation. It is important to distinguish the employment CBMS indicator: situation of men and women. Employment rate. To get this indicator, the LGU must count adult persons who want to work and looking for work or are working, those who are employed. 2. Unacceptable Work MBN-CBPIMS indicator: This Resource Kit contains Tool 4.05.05, - an 2.1. Child labour • Children 18 years old and below assessment tool for assessing the child labour child not engaged in hazardous situation in several industries. occupation. It would be more direct and precise to get information on the number of children below 15 years old that are working, and assess the nature of the work they are engaged in.

International Labour Ofﬁ ce []Ó 97 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

LDDW Assessment Tool and suggestions for Relevant Philippine Statistics, MBN Dimension of Decent Work Information Requirement additional information or other sources of data or Indicator methods for gathering data 2.2. Forced labour Forced labour: Number of persons The MBN-CBPIMS and CBMS do Local planners and practitioners could who are obliged to work or perform a not have indicators on forced labour, undertake a special investigation into this issue. service under threat of any penalty and particularly those workers who are for which the person has not offered working as a form of debt. himself/herself for work voluntarily, such as work to pay off debt (debt bondage) and slavery 3. Adequate Earnings MBN-CBPIMS indicator: To determine how many individuals are engaged • Number of households whose in occupations or trades that generate low income is above the “poverty earnings, local planners and development threshold” practitioners could do any of the following:

CBMS indicators on household income 1. Examine the nature of occupation or level: livelihood of income-earners of households • Proportion of households with below the poverty and food threshold. income less than the poverty Differentiate between men and women. threshold 2. Identify the occupations or trades in the • Proportion of households who community that are known to generate have income less than the food below-subsistence earnings, and count threshold the number of workers (men and women) • Proportion of households who eat engaged in them. less than 3 meals a day 3. Include in the MBN survey the number of individuals who are in debt.

International Labour Ofﬁ ce []Ó 98 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

LDDW Assessment Tool and suggestions for Relevant Philippine Statistics, MBN Dimension of Decent Work Information Requirement additional information or other sources of data or Indicator methods for gathering data 4. Stability and security of The risk of losing one’s source of MBN indicators on employment do The LGU might consider including in the MBN work income is higher in some types of not measure this aspect of income survey the number of working individuals who employment or livelihood than others. security. are engaged in For example, work security is low in • “no work-no pay” occupations or trades seasonal, temporary and casual jobs, • seasonal activities and in “no work-no pay” jobs. Some livelihoods provide a regular ﬂ ow of income, while others provide income only irregularly. 5. Fair and equal treatment in Inhabitants of the same locality do The MBN indicators could be used employment not experience the same employment to point out if discrimination or situation. This may be traced exclusion of certain groups of people is to differences in circumstances happening in the community. and opportunities. It is important To do this, one can compare the MBN to determine which are due to indicators of certain groups of people discrimination. to the rest of the population: Women, members of ethnic minorities, • Girls versus the boys people with disabilities, and people • Women versus the men living with HIV/AIDS often face • Ethnic minorities versus the rest of discrimination at work and are over the community represented among the poor. • People with disabilities versus those without disabilities

International Labour Ofﬁ ce []Ó 99 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

LDDW Assessment Tool and suggestions for Relevant Philippine Statistics, MBN Dimension of Decent Work Information Requirement additional information or other sources of data or Indicator methods for gathering data Discrimination against certain • People with HIV/AIDS versus those groups of people could be direct and without HIV/AIDS explicit - clear exclusions made by the provisions of rules, regulations One should then proceed to assess the and laws, and in practices of reasons for these inequalities. institutions. It could also be indirect or unintentional, but the effects of certain rules and regulations could be the disqualiﬁ cation of certain groups of people. Discrimination can also be traced to the attitudes and biases of people who implement the rules and programs.

6. Safe work environment Information on the number or The LGU and its development partners may frequency of work-related accidents want to obtain additional information: and injuries in the municipality • Identify the occupations that are most could perhaps be obtained from hazardous (high rate of accidents, high the Department of Labour and incidence of illnesses) in the municipality, Employment, which has a regional and determine the number of people who ofﬁ ce in every region. The public are engaged in these or exposed to (e.g. health worker or clinic might be able to children are exposed to hazards of work give some indication of the frequency performed at home) occupations. of sicknesses and injuries that are due to work hazards.

International Labour Ofﬁ ce []Ó 100 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.02 HOW TO MEASURE AND MONITOR DECENT WORK GAPS AT LOCAL LEVEL

LDDW Assessment Tool and suggestions for Relevant Philippine Statistics, MBN Dimension of Decent Work Information Requirement additional information or other sources of data or Indicator methods for gathering data The CBPIMS and CBMS include one • Identify most common illnesses and health relevant indicator: complaints recorded by primary health Children 18 years old and below not workers and see which ones can be traced engaged in hazardous occupation to the work environment.

7. Social protection This Resource Kit contains Tool 4.03.06.2 – an assessment tool for assessing vulnerabilities and gaps in social protection. 8. Social dialogue and 1. Which social groups (by gender, One MBN indicator is relevant: This Resource Kit contains Tool 3.02.1 – an workplace relations age, ethnicity or tribe, religion, • Family members involved in at assessment tool for assessing local social income class, workers/employers, least one people’s organization dialogue institutions and processes. occupation and trade) are or association, community represented by the existing development civil society organizations in the community and which are not? However, this indicator does not show 2. To what extent are these whether these organizations are part organizations consulted and of consultative and decision-making engaged in the poverty diagnosis processes at local level, and whether and planning process in the all major social groups or interest barangay and municipality levels? groups are represented. 3. In what way and to what extent are the different social groups represented in the planning and decision-making process?

International Labour Ofﬁ ce []Ó 101 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 2.03 ASSESSMENT TOOL

ASSESSING YOUR LOCAL ECONOMY

OVERVIEW and internal inﬂ uences; and it helps build BROAD TRENDS collaborative efforts to deal with economic Assessing the trends in a local economy is problems and opportunities. It also helps LGUs A “desktop” survey (review of literature and fundamental to informed decision-making, and in proactively encouraging local economic growth secondary data) of major economic trends in the the development of new options, choices and and development. regional or national economy reveals broad issues strategies for local development. the local community needs to consider. Local people can analyse their own economy OBJECTIVE but a specialist skills may be needed. Analysis This information may include, for example, can start with a broad overview or “snapshot” of sectoral employment, demand for goods and This assessment tool discusses a variety of economic activity and trends. People can use services, availability of capital and technology, or frameworks and activities that local development simple techniques and basic calculated measures. labour force changes. practitioners and planners can use to assess their Subsequently, analysis can proceed to detailed local economy. feasibility studies of options that may require a Local libraries, local government, economic specialist’s skills. development agencies or chambers of commerce INTRODUCTION should be able to assist community members FIRST LEVEL OF ANALYSIS: AN OVERVIEW access a range of existing publications and The analysis of the local economy involves far OF LOCAL ECONOMY information sources such as census data, media more than collecting data. It creates greater releases, documents or informed people. understanding of the strengths and weaknesses Most economic analyses start with an overview of a locality. It gives early warning of adjustments of the local economy. This provides a context RESOURCE BASE MANAGEMENT needed in the community to emerging external for more detailed analysis. An overview usually consists of three parts: Take stock of community assets (i.e., natural resources, physical infrastructure, labour, housing, government, organisation), which are not distributed or accessible equally to all.

International Labour Ofﬁ ce []Ó 102 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.03 ASSESSING YOUR LOCAL ECONOMY

This is not just a simple listing of assets and SECOND LEVEL OF ANALYSIS: OTHER support 40 local jobs. If a signifi cant resources. It can include changes to the INDICES AND MEASURES amount of this money and employment community resource base over time. leaks out of the community, through local A second level of analysis involves calculated people shopping, holidaying, purchasing Strengths, such as good agricultural soil, scenery, indices and measures. These include multipliers, business inputs, investing, or sending or a skilled workforce, need to be identifi ed, as location quotients and population/ employment their children to school outside the well as weaknesses such as poor roads, risk of ratios. These are relatively simple measures that community, the multiplier will be low. fl ooding, or declining housing stock. local people are able to calculate readily. Multipliers will be high if much of this income and employment is captured LOCAL ACTIVITIES AND TRENDS EMPLOYMENT MULTIPLIERS locally.

Assessing the composition and performance of Local economies can be divided into export and Employment = Total employment in community the local economy involves segmenting the local non-export sectors. The export sector draws in Multiplier Export employment in community economy into sectors such as primary industry, money from outside the local community. The services, or retail. non-export sector is the goods and services that circulate within the local community and reﬂ ects An employment multiplier is the measure of every The value of sales, employment, or level of how much economic activity is “captured” locally. job in the export sector compared to every job in production can measure the level of activity of the total economy (export plus non-export): different sectors. Multipliers measure the linkage between these sectors. They express how much money and EXAMPLE: A local community may have Communities can also identify basic trends in local employment earned by the export sector ends up a total of 500 jobs, 200 of which are in employment, sales, and shifts between sectors. in local hands and how much “leaks” out of the the export sector. Therefore, the local community. economy has an Employment Multiplier It might be useful to compare different sectors of 2.5 (i.e., 500 jobs divided by 200 jobs, in the local economy, e.g., low-income sectors EXAMPLE: Export industries such as equals 2.5). This means that one job in and high-income sectors; export and non-export agriculture, tourism or retirees may draw the export sector generates 2.5 jobs in sectors; tradable and non-tradable sectors. in two million pesos in wages, sales, the whole community. That is, one job in transfer payments or investment, and the export sector gives rise to 1.3 jobs in

International Labour Ofﬁ ce []Ó 103 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.03 ASSESSING YOUR LOCAL ECONOMY

the non-export sector. This ratio can be Location quotients estimate the degree of malls and retail outlets. An LQ of less improved by increasing the number of specialisation in a community’s economy. They than 1 in a sector suggests a gap in the local jobs in the export sector. measure the proportion of employment in each local economy and an opportunity for new sector of the local economy and compare this with businesses in that particular sector. You may wish to use this formula to set targets and the proportion in the national economy. priorities for local development. For example, you An LQ of 1 in a sector means that the community P/E ratio for = Total Community Population may want to focus on creating local jobs that have has the same proportion of employment a particular Employment in the particular a high Employment Multiplier. in that sector as the national economy. If a sector sector local community has a greater proportion of Concentration and specialisation employment in a particular sector, than the proportion of employment in that sector in the A population/employment (P/E) ratio is simply Location Quotients and Population/Employment national economy, it will have a LQ > 1. the population of the community divided by the Ratios can help you to look more closely at the number of jobs in each sector: dynamics of employment in the local economy. EXAMPLE: A community may have 12 per cent of its employed workforce in the EXAMPLE: One community may have a P/ Location Quotients (LQ) and Population/ retail sector, while nationally only nine per E ratio for the community services sector Employment (P/E) Ratios, used together, indicate cent of the workforce is in retail goods. that is as follows: specialisation sectors in the local economy and The location quotient for that sector in the in which sectors there are “gaps” and potential community would be: P/E for Community services = Community development opportunities. population (12,000) divided by LQ = 12/9 = 1.3 Employment in community services (567) = 21 LQ = Community employment in a sector This means that the community has a Total employment in the community relatively higher degree of specialisation in This means that every job in the community services sector “supports” National employment in the sector that sector. This may be the case in highly urbanized cities with a large number of 21 people in the community. Clearly not Total national employment every community services worker serves exactly 21 people. The P/E ratio is just

International Labour Ofﬁ ce []Ó 104 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.03 ASSESSING YOUR LOCAL ECONOMY

an average relationship of population and with other communities or with the national a good way of engaging people in participatory employment. The more people per job in economy. Communities need to be well aware of discussions. a particular sector the less specialised the the assumptions inherent in all indicators. economy is in that sector and vice versa. The purpose of the activity is to consider the major inﬂ uences on the establishment, development Together LQ and P/E give a picture of the local ASSESSMENT ACTIVITIES FOR SMALL and changes that have occurred within the local economy. GROUPS: WHERE ARE WE NOW? community.

As already described, an LQ that is less than The following provide some practical exercises for Form small discussion groups. Ask each one (1) means that the community has a higher groups of people who want to look at the question group to prepare a time line of the history of proportion of employment in that sector than “Where are we now?” The answer to this question the community indicating the mile stones in: the national economy does. Also, fewer local may involve a historical understanding of how • The formation and evolution of towns or people per job in a sector may mean a relative the local economy and its community has been settlements specialisation in the sector. Monitoring LQ and P/E established and changed; it may also involve an • Specifi c historical events • Introduction or changes in agricultural over time can enhance these indications. understanding of the current capacity, needs and events opportunities that exist for development. • Development of local government or LQ and P/E provide a signpost for further other governing institutions investigation rather than a clear solution. None A SIMPLE HISTORY OF THE COMMUNITY’S • Introduction of major industries provide an accurate picture and should never be DEVELOPMENT • Development or changes to used to prompt immediate solutions. infrastructure • Any other special or signifi cant events There can be a great deal of value in local Communities need to draw on a variety of communities becoming aware of where they Have each group write down their information sources and never use economic have come from, how they were fi rst established discussions on fl ip chart paper. A chart indicators in isolation. Economic analysis is most and what changes have occurred. One of the layout may assist in organising the powerful if communities can track indicators over advantages of this exercise is that it immediately discussion of these groups. Once each time and involve local people fully in the process of involves the older people of the community who group has completed this task, bring the whole group back together and have each analysing their own economy. Economic analysis can begin to share their perspectives on the group report to the whole on its fi ndings. is not absolute. It largely relies on comparison, history of the town. Thus, this activity provides

International Labour Ofﬁ ce []Ó 105 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.03 ASSESSING YOUR LOCAL ECONOMY

WEALTH CREATION IN THE LOCAL ECONOMY Questions for small discussion groups: The capacity for a local economy to create wealth 1. What is wealth? Have each group consider the question: “What is wealth?” is fundamental to its ability to create jobs and - Each group should write their answers in 1-3 statements. Have each group report back to the improve the life of its residents. whole. The whole group should discuss fi ndings. - Consider the positive and negative aspects/attitudes of wealth. - Encourage participants to identify how local wealth creation can improve employment The purpose of this activity is to help participants opportunities and the provision of goods and services. understand some of the dynamics behind wealth creation in their area and assess the factors which 2. Historical comparisons: Have each group consider: promote wealth creation. - What affected wealth in the past in our area? (i.e., how did people become wealthy in the past? Say, 20 or 30 years ago.) - What affects wealth creation today in our area? (i.e., how do people become wealthy today?) ASSESSING THE LOCAL CAPACITY FOR LOCAL ECONOMIC AND SOCIAL DEVELOPMENT 3. Local economic capacities: Have each group consider: - What are the constraints of wealth creation in your community? This may be in the form of Conduct a brainstorming session on the too many small marginal businesses, poor overall appearance of the area, too many unskilled capacity of the community for development people, out-migration, and so on. through an assessment of its STRENGTHS and 4. What are the ways in which the community can create wealth? WEAKNESSES. - Write each example on a single piece of paper or card. Try to contain the list to fi ve to seven different examples. • Strengths: are the positive things in the - Each group must now compare these suggestions in pairs and to choose which they prefer community that encourage development (e.g., and why. Write down the ‘whys’ - why is one suggestion better than another - to produce a high population, high level of participation in criteria of assessment. If there are negative criteria (e.g., “this suggestion relies on a limited community affairs, town is well located). market”) then, these should be turned into positive criteria (e.g., “utilises a broad market”). - Create a matrix. On the vertical axis list each suggestion in order of preference. On the • Weaknesses: the more negative things that horizontal axis list each of the criteria used to assess each suggestion. make development more diffi cult; they may - Then ask which suggestion is best by applying each criterion. To help assess each suggestion also become needs. (e.g., dirty appearance of by a single criterion it may be useful to ask: Which is best? Which is next best? And so on. the town, town is dependent upon one major industry.)

International Labour Ofﬁ ce []Ó 106 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.03 ASSESSING YOUR LOCAL ECONOMY

Brainstorming is a group discussion technique economy refers to the ways in which the dollars which provides a process for participants to • Listen to the full explanation of an idea. which ﬂ ow out of the community can be restricted. think creatively and freely about any given topic. Do not interrupt others until they are ﬁ nished explaining their idea. Brainstorming is an activity in which the facilitator The purpose of this activity is to introduce the • Nobody has all the answers. Group poses a question or statement to the group and success depends upon every concept of import replacement and to begin the participants respond with random comments member sharing ideas, opinions and identifying new opportunities for business and answers. observations. development. • Pay attention to silence. A silent individual or group may indicate that there is something more to learn Guidelines for effective brainstorming Form small discussion groups that consider • Encourage far-fetched ideas. They may session: the following: trigger more practical ones. • The task of the facilitator is to ensure 1. Consumer needs: Ask each group to • The more ideas the better. Be open to that everyone gets a chance to discuss create a list of the goods and services new ideas. Avoid promoting your own their ideas. that any household may require in ideas and issues • Ask participants to write down their any one week. List these goods and • Finally, ask the participants to group ideas legibly (letters should be at least services and indicate, approximately, the similar ideas and the corresponding 1” high) on cards or papers cut to 4” x quantities of these that are required. cards/papers together. 8” size. Only one idea should be put on 2. Analyse consumer spending: Indicate on one card. They should feel free to write this list where these goods and services as many ideas as they can. are purchased. Which of these are • Reinforce and encourage all ideas. IMPORT REPLACEMENT/SUBSTITUTION purchased from outside the community? Use masking tape to place the ideas OPPORTUNITIES Which of these are purchased from on a blackboard or wall where all outside the region? Which of these are participants can read them. purchased from outside the country? • There are no wrong ideas. If there are Conduct small discussion groups on the concept Now, look more closely at those goods comments, these should be limited to of import replacement (“plugging the leaks in and services that are purchased within how an idea may be improved upon or the local economy”). Whenever local businesses the community and within the region. to clarify the idea. or residents purchase products or services from Are these purchased at local shops? • Feel free to add ideas or to combine Where do these shops (and other ideas. outside their community, money leaks from the local economy. Plugging the leaks from the local

International Labour Ofﬁ ce []Ó 107 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.03 ASSESSING YOUR LOCAL ECONOMY

COMMUNITY ECONOMIC MAPPING suppliers) purchase these goods and You should create discussion groups of services from? The purpose of community economic mapping a manageable size (i.e., 8 to 15 people 3. Opportunity identifi cation: Consider those is to create a discussion on development issues in each group). Using large sheets of fl ip chart paper (which may need to be taped goods and services that are imported into facing the community and to improve the the community and into the region. Are together to form a large enough sheet), understanding of the community in terms of its there any of the goods or services that have each group draw a map of their are purchased from outside the area that development potential. community. could be supplied from within? List these. Are there any goods that are produced Based on the maps, ask the participants to identify On this map from outside the area that could be which businesses are overcrowded or missing. • Identify the location of local businesses • Identify wealthier areas/households produced from within? List these. From This will help them identify opportunities for new these two lists, have each group select • Identify consumer outlets. (e.g., food, economic activities. the fi ve items which they believe can be clothing, alcohol) produced locally in a feasible way. (By • Identify sites where manufacturing feasible, we mean someone or a group in occurs the community has previous experience • Identify sites where farming occurs, producing the item or is willing to take note seasonal rotations or variation of the risk in trying to produce it. More farming sites studies on marketing, fi nancing, and • Identify sites where animals (stock) are production may have to be done later.) kept • Identify sites of recreation • Identify trading or market sites • Identify transportation routes of visitors, local residents (including walking trails), commercial transporters • Identify key visitor services, such as petrol stations, accommodation, information, souvenir shops, and consumer goods (e.g., snacks, food)

International Labour Ofﬁ ce []Ó 108 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.03 ASSESSING YOUR LOCAL ECONOMY

RELEVANT RESOURCES CROSS-REFERENCES

• Cavaye J, (2000) Our Community, Our Future: • Tool 2.01, Assessment Tool: Territorial A Guide To Rural Community Development, diagnosis. This tool provides a detailed chapter 8, p90-120 checklist for assessing socio-economic and • Jensen RC, (1997) Introduction to Economic political situation and resources, and mapping Impact (Multiplier) Analysis the presence, objectives and activities of • Hustedde RJ, Shaffer R, Pulver G, (1993) stakeholders and institutions. Community Economic Analysis: A How To • Tool 2.02, Assessment Tool: How to measure Manual http://www.ncrcrd.iastate.edu/pubs/ and monitor decent work gaps at local level. contents/141.htm This tool focuses on the quantitative and qualitative aspects of employment. • Tool 4.01.01, Action Tool: Strategies to making your local economy grow • Section One, Part 4 of this Resource Kit focuses on issues regarding local economic growth. • Section Two, Part 4 of this Resource Kit focuses on the creation and preservation of jobs.

International Labour Ofﬁ ce []Ó 109 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 2.04 INFORMATION TOOL

VALUE CHAIN ANALYSIS

OVERVIEW DEFINITION OVERALL PROCESS

Value Chain Analysis (VCA) is a tool that can be A VALUE CHAIN IS: Value Chain Analysis, as applied to local used by enterprises and local government units development, undergoes the following process: (LGUs) to improve existing businesses in a locality. • A sequence of economic activities required to It can also generate new business opportunities bring a product or service to the fi nal consumer • Select the main product(s) or service(s) that for products and services that support existing • Includes producers, processors, input suppliers, affect the livelihoods of people in a locality or businesses. exporters, retailers, etc. community • Includes both vertical and horizontal linkages • Analyse the different steps in the processing Individual companies started using VCA as a • Can be defi ned by a particular fi nished product and delivery of a specifi c product/service before management tool in the 1980s to improve their or service it reaches a customer. competitiveness. More recently, development - e.g., wood furniture, fresh mangos for • Determine how activities at each step can be agencies have become more active in applying export, etc. improved to “add more value” to the product it on local and national governments and and to “create the greatest possible value” for economies. Note that Value Chain Analysis is applied on the customer a specifi c product (or service), and not on a • Identify possible new economic opportunities in OBJECTIVE sector. Other analytical tools in local economic value-adding activities. development usually examine economic This information tool gives a general description (agriculture, manufacturing) or social sectors Ultimately, the aim of VCA is to improve the of Value Chain Analysis and some examples of (labourers, women, farmers, indigenous peoples, competitiveness of a locality’s main product or how it can be applied to some products. It is not a etc.) service so that it can maintain or improve market comprehensive paper on VCA. Additional reading share, thus maintaining or creating more jobs and materials are recommended under Relevant economic opportunities. Resources.

International Labour Ofﬁ ce []Ó 110 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.04 VALUE CHAIN ANALYSIS

VCA can also highlight the distribution of beneﬁ ts raw material to a ﬁ nal product or service among buyers, exporters and producers in delivered to a buyer/customer. Cluster activities Local Market Export Market the chain. This can give local and national into main stages. development planners some ideas on how to 3. Based on your objectives, gather and analyse

maximise the benefi ts to the local economy. Local Consumer Foreign the relevant statistics for each stage, starting Consumer Peak Season: from the end-user. FOCUS March to June 4. Recommend specifi c actions to add more Retailer, Foreign value to the product or to create the greatest 35-40 Retailer, 162 As mentioned earlier, VCA focuses on specifi c value for the customer. products or services rather than broad sectors. It also focuses on: Wholesaler, Foreign Mapping is perhaps the most important step in 28-30 Wholesaler, 108 VCA. Following are the steps in mapping: • Relationships between activities and actors that Local Trader, Local defi ne them as a “network” rather than as mere 11-20 Exporter, 54 • Identify fi nal markets competitors. • Identify key functions/activities • Value added and other quantitative information • Identify participants (suppliers, producers, at each activity. Grower, 9 - 28 wholesalers, etc.) performing each function • Specifi c improvements at the activity level. • Map participants according to functions they perform SAMPLE VALUE CHAIN: PRICE OF FRESH STEPS IN VALUE CHAIN ANALYSIS • Map inter-relationships between participants PHILIPPINE MANGO (PHP/KG., 2003) 1. Using available data (local, national, and Below is an example of 3 value chains for As can be seen from the example, the grower can international government studies, reports, garments showing the number of workers involved get greatest benefi t if he/she can sell directly to internet, etc.) identify the main products at each stage as well as the relationships that exist the exporter instead of selling to the local trader. In and services that have the greatest effect on between input suppliers, producers, wholesalers reality, there are more complex value chains that communities’ livelihoods. and retails. can be constructed for fresh as well as processed 2. Map all the activities and processes that Philippine mangoes. transform these products and services from

International Labour Ofﬁ ce []Ó 111 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.04 VALUE CHAIN ANALYSIS

• Production – inspection and ﬁ nishing; pressing;

Chain 1 Chain 2 Chain 3 machining operations (assembly); laying and National US German cutting; pattern making and grading; sourcing inputs • Inputs – suppliers of yarn and cloth; suppliers Retail 1,800 ? 1,200 of accessories (buttons, zips, etc.); suppliers of packaging materials, hangers, plastic bags, boxes; equipment suppliers Wholesale 180

The single, double, triple, and quadruple lines that represent the relationships are mapped according

Production 12,000 16,000 6,000 to the following deﬁ nitions Homeworkers 6,000 • Market-Based Relationships – One line: “arms length” transactions between buyers and sellers; open market; many suppliers, many

Inputs Suppliers of customers; little or no formal cooperation Suppliers of Accessories Equipment among participants Yarn & Cloth & Packaging Suppliers 8,200 Material 800 • Balanced Network – Two lines: fairly equal 4,200 decision making among participants; fi rms form networks in which they cooperate and no one Source: Dorothy McCormick and Hubert Schmitz, Manual for Value Chain Research on Homeworkers in the fi rm exercises undue control over others Garment Industry • Directed Network – Three lines: A lead fi rm directs fi rms operating separately or in The stages are defi ned as follows: • Wholesaling – delivery to retailer; transport to networks; controlled by fi rm(s) who determine warehouse near fi nal market; consolidating product specifi cations, trade rules, etc.; for • Retail – sale to fi nal consumer; branding; orders from various producers example, a buyer-driven chain advertising

International Labour Ofﬁ ce []Ó 112 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.04 VALUE CHAIN ANALYSIS

• Hierarchy – Four lines: Vertically integrated enterprise that controls various functions along Chain 1 Chain 2 Chain 3 value chain National US German

Mapping relationships is important to fi nd out who Retail 2.10 10.20 13.20 dominates or controls the chain and how they can be infl uenced to improve value for the customer and maximise benefi t to the other participants in the chain. Wholesale 2.20

Different variables for the same chains can be analysed. The ﬁ gure below shows workers’ hourly Production 1.80 2.10 2.20 wages across the 3 chains and through the 4 Homeworkers stages. 1.20

The above discussion and examples cannot substitute for training and more reading on VCA. Inputs Suppliers of The reader is advised to visit the websites and Suppliers of Accessories Equipment Yarn & Cloth & Packaging Suppliers read the materials under the next section. 2.40 Material 2.80 2.40

Source: Dorothy McCormick and Hubert Schmitz, Manual for Value Chain Research on Homeworkers in the Garment Industry

International Labour Ofﬁ ce []Ó 113 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.04 VALUE CHAIN ANALYSIS

RELEVANT RESOURCES • Frank Lusby and Henry Panlibuton, Value For more information, contact: Chain Analysis, SEEP Network Annual General • ILO Resource Centre, SRO Manila • A Handbook for Value Chain Research, Meeting, Action for Enterprise (AFE), 2004 http://www.ids.ac.uk/ids/global/pdfs/ • Dorothy McCormick and Hubert Schmitz, ValuechainHBRKMMNov2001.pdf Manual for Value Chain Research on CROSS-REFERENCES • Conceptual Studies on Global Value Chains, Homeworkers in the Garment Industry, http:// http://ww.ids.ac.uk/ids/global/valchnconcep1. www.wiego.org/papers/2005/unifem/ 22_ • Tool 2.03, Action Tool: Assessing your local html McCormack_Schmitz_Manual_GVC_Garment_ economy • The Global Value Chain Initiative, http://www. Sector.pdf • Tool 4.01.01, Action Tool: Strategies for making ids.ac.uk/globalvaluechains/concepts/index. • Jörg Meyer-Stamer, Regional Value Chain your local economy grow html. Initiatives: An Opportunity for the Application of • Magdi M. Amin, Use of Value Chain Analysis to the PACA-Approach, Mesopartner, 2004, http:// support Investment Climate Reform, The World www.mesopartner.com Bank, 2004 • O. Miehlbradt and Mary McVay, Jim Tanburn, • John Humphrey, Shaping Value Chains Editor, From BDS to Making Markets Work for for Development: Global Value Chains in the Poor, Annual BDS Seminar, International Agribusiness, Deutsche Gesellschaft für Labour Organization, 2005 Technische Zusammenarbeit (GTZ) GmbH, • http://www.mindtools.com 2005

International Labour Ofﬁ ce []Ó 114 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 2.05 INFORMATION TOOL

INTEGRATED RURAL ACCESSIBILITY PLANNING (IRAP)

OVERVIEW OBJECTIVE and livelihood possibilities, the lack of prospects for improving their lives, and the distance from The Integrated Rural Accessibility Planning (IRAP) This information tool discusses the IRAP method markets and resources. Therefore, part of the is a method used for local level development and how it is applied to local development and solution is ending a community’s state of isolation and poverty reduction planning. It focuses on poverty reduction. by linking it to the centre, by bringing services the accessibility of basic services and facilities and resources to the community, or by minimising as a basis for decision-making on allocation of A BRIEF BACKGROUND the distance and time travelled to gain access to resources. IRAP method has been adopted in facilities, markets, inputs, jobs and the like. This is the Philippines at the national level, and is used The long years of application of IRAP in the where the issue of access to services, information systematically by many LGUs. Philippines have proven that LGUs fi nd the tool and opportunities becomes paramount to ease the useful and relevant in their development planning poverty levels in rural communities. The IRAP method: activities. The capacity to apply IRAP is in place • Helps LGUs identify and prioritise problems and nationwide at local, provincial, regional and RURAL TRANSPORT IN THE PHILIPPINES needs, and carry out interventions to improve national levels: LGU planning offi ces (municipal & access to basic services and needs. provincial), regional DILG, NEDA, state universities A study conducted by the ILO in 1989 in the • Sets geographic targets and optimises use and and colleges. Philippines to determine the daily travel patterns of distribution of available resources including rural households had the following fi ndings: labour. ACCESSIBILITY AND POVERTY ALLEVIATION • Helps provide a common “language” for • Most travel activities were aimed at obtaining planners, decision-makers and communities The improvement of access to basic goods and basic goods and services. in the deliberation of needs and interventions services is a major weapon in the fi ght against • Majority of these activities were done on foot through common set of information that refl ects poverty. and away from the roads (water collection, the actual needs of the community. A major constraint in developing rural fi rewood gathering, going to school, selling communities is the problem of isolation – the produce, going to market, etc.). lack of access to basic services, employment • Most were confi ned within villages.

International Labour Ofﬁ ce []Ó 115 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.05 INTEGRATED RURAL ACCESSIBILITY PLANNING (IRAP)

The nature of rural transport does not involve the Accessibility may be classifi ed into physical access households to transport themselves and their traditional concept of motor vehicles running on and social aspects of accessibility. goods in order to meet their needs. paved roads. Rather, rural transport involves the manual movement of people and goods on tracks • Physical access looks into the presence or The underlying principle of accessibility planning and trails and with occasional use of intermediate absence of a service or facility in a community, is to reduce the time spent on achieving access, modes of transport such as animal-drawn vehicles physical distance between households and and, hence have more time available for other and carriages. these facilities, and the amount of time to reach social and economic activities. a resource or facility. IRAP: THE METHOD • Social aspects of accessibility refer to household IRAP AS A TOOL arrangements with regards to work, which ACCESSIBILITY PLANNING have an infl uence on the needs and mobility IRAP is a simple planning procedure that of specifi c members of the household. These examines rural communities’ access to the basic The ILO developed the concept of “accessibility include: the division of labour between services, goods and facilities, and the nature of planning” - the IRAP method - as an alternative members of the household by sex and age; transport and mobility of these communities, as a method in local level planning. the value given to different kinds of work way of determining local development needs and performed by members; the importance given directions. There are two elements of rural transport - mobility to investment in education and health; and and accessibility, which are important in designing the notions as to what resources women and Local governments and development agencies ways to improve the reach or coverage of basic men need for their productive and reproductive can use the tool in infrastructure and local services and resources. activities. development planning. By using the tool, LGUs and agencies can identify and prioritise access • Mobility - concerned with the ability of the THE IRAP PROCESS problems and improvement interventions towards people to move around and relates to the use of improved living conditions in the community. Local tracks, trails, and footpaths. Rural Accessibility Planning focuses on the planners can use the tool, as part of their regular • Accessibility - involved in the citing of services household, and measures its access needs in planning activities, to defi ne priorities for different and facilities. terms of the time spent to get access. Because sectors and communities. of poor access, a lot of time is spent by rural

International Labour Ofﬁ ce []Ó 116 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.05 INTEGRATED RURAL ACCESSIBILITY PLANNING (IRAP)

THE IRAP PROCESS prepared. The indicators are calculated by considering be defi ned. Where national targets exist, these will be the number of households (N) in a target area, the used to defi ne overall objectives, e.g. all households in average time spent to reach each facility/service (T), the an area should have direct access to potable water, not Steps 1 and 2: Data Collection and Processing frequency of travel to each facility in a given period (F) exceeding a distance of 500 meters, all year around. and an acceptable/target travel time (Tm) to get access The targets should be realistic and attainable, based on The fi rst step of Accessibility Planning is to carry out a in a sector. The AI=N x (T-Tm) x F formula is used to the available resources. situational analysis that identifi es the access problems calculate the Accessibility Indicator. In addition, based in target areas; both regarding the mobility of the on the gathered information, accessibility maps are Step 7: Project Identifi cation population and the location of services and facilities. prepared in order to have a better visual presentation The local communities, organisations (government of access profi les in target areas and to see alternative The results of the above mentioned workshop contribute and NGOs) and individuals are involved in this process solutions to access problems. to identifi cation of a set of interventions/projects which in terms of providing the needed information. Local would most effi ciently reduce the time and effort enumerators are trained to carry out the needed survey Step 4: Prioritisation involved in obtaining access to supplies, services and and to process the data. Data comprises secondary data facilities. These interventions are related to transport (population, agriculture outputs, etc.) and primary data. The larger the value of AI, the worse is the access (rural transport infrastructure, low cost means of At the household level, primary data is collected on problem. The target areas are then ranked/prioritised transport or transport services), and non-transport time taken and the manner in which households obtain accordingly. The target area with the worst access services (e.g. better distribution or the most appropriate access to services and facilities. The collected data is indicator in a particular sector gets the highest priority locations of services). processed and analysed, which results in a demand- for access interventions in that sector. oriented access or transport needs in target areas. Step 8: Implementation, monitoring and evaluation Steps 5 and 6: Data Validation and Defi ning Targets and Step 3: Preparation of Accessibility Profi les, Indicators Objectives The identifi ed projects are then considered and and Maps integrated into the overall local development planning The access profi les will be presented and the gathered system for implementation, monitoring and evaluation. Access profi les of target areas cover a set of basic data validated in a training workshop which is The target communities and organisations are involved information on both locations of services and facilities participated in by representatives of local authorities, not only in planning but they also contribute to and the diffi culties that people have in gaining access to organisations and communities. During the workshop, implementation and maintenance of what has been them. For each sector, accessibility indicators (AI) are the sectoral objectives for access improvements will planned.

International Labour Ofﬁ ce []Ó 117 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.05 INTEGRATED RURAL ACCESSIBILITY PLANNING (IRAP)

Data that are collected using the IRAP indicators facilities such as water supply, health centres, • Providing training for the production and contain both physical and social inventories schools and markets. maintenance of IMTs and profi les that will guide the identifi cation and prioritisation of community needs and ACCESS AND ACCESS-RELATED INTERVENTIONS Siting of Facilities and Services interventions. Following are some possible interventions that may • Installing safe water supplies Households using a common facility should be result from the accessibility planning process: • Better distribution of health centres, schools, grouped into a service area. This service area etc. is then compared with another service area to Infrastructure • Improvement of the system of supply of determine which is experiencing diffi culty in agricultural inputs accessing a facility. The analysis involves taking • Improvement/development of tracks, foot paths, • Development of market facilities into account the number of the households foot bridges • Improved distribution of food processing affected and the average amount of time spent by • Rehabilitation, maintenance and construction of facilities, e.g. mills the households to reach and use the facility. selected roads • Transport / Mobility Environment friendly measures The interventions that emanate from the planning • Improvement of effi ciency of existing low cost process relate to improving people’s access. Intermediate means of transport (IMT), e.g. • Development of wood lots, introduction of fuel Actions that may be adopted based on IRAP animal drawn carts, bicycles, donkeys, trailers effi cient cooking technologies, etc. fi ndings may be grouped into two: • Development / introduction of alternative low- • Improved sanitation measures cost IMT • Improvement of mobility - through improvement RATIONALISING LOCAL DECISION-MAKING in the rural transport system, such as rural Enabling Environment for Mobility road improvements, upgrading of village level The identifi cation of interventions to improve transport infrastructure and improvement of • Facilitating credits to purchase IMT accessibility is best done at the local level on the low-cost means of transport and transport • Facilitating transport services by improving basis of understanding local conditions. IRAP as services. their operation and management systems and a local-level planning tool provides the opportunity • Bringing goods and services closer to the increasing their availability for effective participation by the local governments people - through a better location of basic and rural communities involved. In identifying

International Labour Ofﬁ ce []Ó 118 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 2.05 INTEGRATED RURAL ACCESSIBILITY PLANNING (IRAP)

priority interventions, the process aims to balance RELEVANT RESOURCES and maximise the use of local resources including labour; socio-economic impact and sustainability; • Chris Donnges: Improving Access in Rural and local participation and tripartite social Areas, March 2003, ILO ASIST-AP, Bangkok. dialogues or public/private partnerships. http://bravo.ilo.org/public/english/employment/ recon/eiip/download/guidelines_irap.pdf The application of IRAP allows local governments • The IRAP Guidebook: Integrated Rural and other concerned agencies to build a Accessibility Planning for Local Governments databank of accessibility information for a 2002, ILO IRAP III Project, Philippines. certain community. This information, in turn, will • Innovations (IRAP: Empowering Local facilitate the prioritisation of access needs and Government Units in Development Planning), interventions. The generated information will be of 1997, ILO IRAP II Project, Philippines. great use to the LGUs in the following manner: • CIARIS Learning and Resources Centre on Social Inclusion website: http://ciaris.ilo.org/ • It provides a profi le of the local accessibility pages/english/tos/actcycle/planifi c/methodes/ conditions as well as a ranking of sectoral fi che_3.htm concerns and geographical targets. • International Labour Organization Regional • It helps LGUs identify and develop access Offi ce for Asia and the Pacifi c publication on improvement interventions. the Fourth Expert Group Meeting on IRAP -: • It provides LGUs with bases for projects that http://www.ilo.org/public/english/employment/ will not only improve access but also promote recon/eiip/publ/reference/ratp.htm employment and livelihood opportunities for the rural population thereby helping in the For more information, contact: reduction of poverty. • ILO Resource Centre, SRO Manila. • It aids LGUs in investment planning, particularly • ASIST- AP, ILO Bangkok. in identifying and prioritising projects for integration into their annual investment plans.

International Labour Ofﬁ ce []Ó 119 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.07 INFORMATION TOOL

THEPART START THREE: AND BROAD-BASED IMPROVE YOUR PARTICIPATION BUSINESS (SIYB) THROUGH PROGRAM SOCIAL DIALOGUE

INTRODUCTIONKEYWORDS: Business plan, capacity-building, or informal networks. However, they can be Part 3 gives special attention to: economic growth, entrepreneur, institution- distinguished because of their specifi c social Successfulbuilding, management, local development marketing, requires micro the and identity, for example, the youth, an indigenous • Social dialogue - a process by which different involvementsmall enterprises, of the tradebroadest union, possible training cross-section community, families with migrant workers, sectors of the local community, including those of the local community. benefi ciaries of agrarian reform, coastal or small with competing interests and views, can share fi shermen, factory-based wage workers, home information, negotiate and reach an agreement Because of the multiplicity of stakeholders and workers, micro entrepreneurs, farmers, and so on. on how to deal with local development issues. concerns in the community, it is important for • Strengthening the participation of people who local planners and development practitioners Part 3 contains tools that are designed to assist tend to be excluded or exclude themselves from to (a) identify the various stakeholders in the the LGUs, local planners and decision-makers, consultative and decision-making processes development of the local community, and (b) and development practitioners in engaging the – such as the poor, cultural minority groups, ensure that they are engaged in the local planning different groups of people who make up the poor women, people with disabilities and implementation processes. community and making sure that they are able • Participation of trade unions and workers’ to participate effectively in local development organisations The different segments of the population might processes. not be organised, either as formal associations

International Labour Ofﬁ ce []Ó 121 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.01 INFORMATION TOOL

THE STARTROLE OF AND KEY IMPROVE STAKEHOLDERS YOUR BUSINESS IN LOCAL (SIYB)DEVELOPMENT PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, Although they might not be organised, either as Since the municipality is part of the bigger economic growth, entrepreneur, institution- formal associations or informal networks, some society and economy, some stakeholders in the Thisbuilding, information management, tool: marketing, micro and segments of the population could be distinguished development of the local community may not be •small Discusses enterprises, the importance trade union, of traininga broad, because of their specifi c social identity, for residents of the community. These include other participatory approach to local development, example, the youth, an indigenous community, municipal, provincial and national government • Explains the benefi ts that local government families with migrant workers, benefi ciaries of offi cials, investors and entrepreneurs, regional units and local communities would gain from agrarian reform, coastal or small fi shermen, and national organisations of workers, business the participation of civil society organisations, factory-based wage workers, home workers, associations etc. including business and worker organisations, micro-entrepreneurs, farmers, and so on. By the in local development planning, implementation nature of their gender, age, ethnicity, income It is common to see development that is controlled and monitoring. class, occupation, trade or source(s) of livelihood, or initiated by only a few stakeholders. The people in the community would naturally have local government, for example, may undertake ENSURING BROAD-BASED PARTICIPATION some concerns, views and needs that are different development activities on its own. Large private from each other. businesses may make investments and pursue Successful local development requires the development on their own. Even NGOs have involvement of broadest possible cross-section of Because of diverse stakeholders and concerns in been known for undertaking development efforts the local community. the community, it is important for local planners on their own and not involving a wider range of and development practitioners to people. There are many different groups in the community or social segments of the local population that • Identify the various stakeholders in the Sometimes it is not necessary to involve everyone need to be involved. These groups are referred to development of the local community and in in development efforts. However, when it comes to as “stakeholders” because they have a stake, or specifi c economic and social issues, and local development planning and action, the best an interest, in the local community and its future. • Ensure that they are engaged in the local results come from engaging as many different planning and implementation processes. sectors of the local society as possible.

International Labour Ofﬁ ce []Ó 122 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.01 THE ROLE OF KEY STAKEHOLDERS IN LOCAL DEVELOPMENT

Understanding the possible roles that different THE ROLE OF LOCAL GOVERNMENT THE ROLE OF REGIONAL AND NATIONAL stakeholders can play in local development will GOVERNMENT help you to fi nd ways to involve these groups more The LGU is the most important government effectively. agency involved in development planning and Government agencies that operate at a higher level management at the local level. Local governments than the LGU are important stakeholders in local THE ROLE OF GOVERNMENT AGENCIES perform the following functions: development. While they each have different levels and fi elds of responsibility, they can contribute to Government agencies are very important for local • Design and enforcement of local policies, laws local development efforts. Some of the ways they development. They perform three essential roles: and regulations can do this include: • Planning for local social and economic • Representation: Local communities elect development (integrating different fi elds of • Provide information that informs local people to represent them and their interest in planning at the local level is a very important development (e.g., economic, population, trade government, whether at the local level, or at role) information) higher levels • Connect local people to national and regional • Guide and support the LGU and other local • Policies and laws: Governments set policies line agencies or departments development agencies and laws that infl uence local development • Guide and support other local development • Provide funds, training or advice for local opportunities agencies development projects • Resources: Governments have resources to • Coordinate and integrate local development • Promote local projects to a broader audience apply to local development. These may be efforts fi nancial resources, skills, technical assistance, • Access and manage funds that can be used for THE ROLE OF THE PRIVATE SECTOR training, etc. local development • Bring different stakeholders together to consider The private sector is essential to local economic It is important to distinguish between local local development issues and social development. It is the private sector governments and other levels of government that invests its time and money into local when considering the role of government in local development activities – usually in the form of development. local businesses. People in business take a calculated risk and invest in activities that can benefi t the whole community. These activities

International Labour Ofﬁ ce []Ó 123 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.01 THE ROLE OF KEY STAKEHOLDERS IN LOCAL DEVELOPMENT

can create local jobs and provide local services that create a “win-win” situation for everyone) • National and regional chambers of commerce and products. They can also attract money from • Work closely with local worker organisations can support the development of local chapters outside the local community (e.g., through the to ensure that the quality of local jobs is • Provide access to larger networks of support sale of their products and services, and through maintained and improved attracting new investors). • Work closely with other stakeholders to identify THE ROLE OF WORKER ORGANISATIONS new development opportunities It is useful to understand the different roles the • Form a local business association or chamber Workers are a special resource for local local private sector and the broader private sector of commerce that represents the sector in local communities. They earn wages to bring home can perform in local development. development discussions to their families,, they participate in productive • Create trading linkages between large local activities in the local economy, and have an THE ROLE OF THE LOCAL BUSINESS COMMUNITY businesses and small ones important view on the local community and its development potential. When workers form The local private sector is a great resource for local THE ROLE OF PROVINCIAL, REGIONAL AND NATIONAL organisations, they can become important development because it can perform the following BUSINESSES AND BUSINESS NETWORKS stakeholder in local planning and development functions: processes. Here again, there is a difference The private sector that is located outside of between the contributions local and external • Provide local services (e.g., transport, advice) the local community can also support local worker organisations can offer local development. and products (e.g., food, equipment, housing, development. This is possible through the furniture) following functions: THE ROLE OF LOCAL WORKER ORGANISATIONS • Create jobs for local women and men • Lessen the amount of money leaving the local • Local communities can seek support for their To become effective stakeholders in the process economy (by using local money to provide local projects from large businesses located outside of local planning and development, local workers services and local products) their community need to be organised. Worker organisations • Attract new investors from within the local • External businesses can invest in local can contribute to local economic and social community or from outside of it businesses and other development projects development by: • Partner with the government or community • Local businesses can win contracts with large, sector on local projects that beneﬁ t the whole external businesses Taking an active role in local development community (i.e., public-private partnerships committees and forums

International Labour Ofﬁ ce []Ó 124 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.01 THE ROLE OF KEY STAKEHOLDERS IN LOCAL DEVELOPMENT

• Raising awareness among workers about local See Tool 3.03 for more information on trade THE ROLE OF EXTERNAL DEVELOPMENT development and decent work, and the various unions and workers’ organisations. AGENCIES development activities being undertaken as a part of a local development program THE ROLE OF COMMUNITY-BASED AND There are many kinds of external agencies • Mobilising their members for local development OTHER NON-GOVERNMENT ORGANISATIONS that can support development efforts. These meetings, events and projects include organisations such as the United Nations • Participating in alliances and partnerships with Community-based and non-government (including the International Labour Organization), other local stakeholders in development projects organisations offer a particular beneﬁ t to local donor agencies, international development • Mobilising provincial, regional and national economic and social development. While these agencies, international NGOs, and foreign support for local development activities and stakeholders may not have many ﬁ nancial embassies. projects resources (although some NGOs do), they can perform a range of important functions, including: Depending on the agency, these external THE ROLE OF PROVINCIAL, REGIONAL AND NATIONAL stakeholders can contribute to local economic and WORKER NETWORKS • Provide mechanisms for local people, especially social development in the following ways: those who might not otherwise be represented, While they are located outside of the local to participate in local planning and development • Funds, training, advice and information for local community, provincial, regional and national activities. development projects worker networks can contribute to local economic • Focus on key issues of community or public • Marketing and information – to promote the and social development efforts in the following concern local development initiative to a wider audience ways: • Lobby the government and other stakeholder for • Written resources, such as books, guides, assistance and reports, which can be used in local • Help local workers organise themselves (e.g., • Help local communities to speak with one voice development planning and management through awareness raising, training, education, fund raising) CROSS-REFERENCES • Promote local worker initiatives at a broader level • Tool 3.03, Action Tool: What unions and • Provide access to larger networks of support worker organisations can do to promote local development

International Labour Ofﬁ ce []Ó 125 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.02 INFORMATION TOOL

THE STARTADDED ANDVALUE IMPROVE OF SOCIAL YOUR DIALOGUE BUSINESS (SIYB) PROGRAM

OVERVIEWKEYWORDS: Business plan, capacity-building, governments, employers, workers, and other of various stakeholders and with a speciﬁ c set economic growth, entrepreneur, institution- stakeholders on issues of common interest of functions, or by making the consultation or Socialbuilding, dialogue management, is an essential marketing, ingredient micro toand all relating to economic and social development. As negotiation processes a regular way of dealing with developmentsmall enterprises, issues. trade It has union, an important training role in such, social dialogue is an important element to certain issues. Institutions for social dialogue are improving quality of local employment, promoting successful local development. often deﬁ ned by their composition and functions. rights and extending social protection. However, social dialogue involves much more The Philippines has a strong and extensive legal OBJECTIVE than simply talking. Information and views are and institutional setup for social dialogue in the exchanged in an effort to reach a common workplace. Tripartism is enshrined in the Labour This information tool discusses the concept of agreement. Agreements are necessary so that all Code. This tradition is rooted in the belief that social dialogue and explains, in practical terms, stakeholders can come to a common view on a consensus building through involvement of how social dialogue can be used to add-value to particular problem and how to address it. relevant stakeholders in decision-making results local development processes. in credible decisions, promotes industrial peace Social dialogue takes many different forms. It and good governance. The country has tripartite WHAT IS SOCIAL DIALOGUE? can exist as a tripartite process (i.e., involving institutions for social dialogue at the national and representatives from government, employers and regional levels. Regional, provincial and municipal Social dialogue is an important element of local workers) or it may consist of bipartite relations only development councils may be regarded as local development and the achievement of social (i.e., trade unions and employers’ organisations), institutions or forums for social dialogue on local and economic development goals. It is a means with or without indirect government involvement. development matters. whereby different sectors of the local community They can be bipartite, tripartite or ‘tripartite plus’, share information and come to an agreement on i.e., involving other development stakeholders. WHAT CAN SOCIAL DIALOGUE ACHIEVE? how to deal with local development issues. The social dialogue process may be The main goal of social dialogue itself is to Social dialogue is the exchange of information institutionalised, for example, by the creation of a promote consensus building and democratic between, or among representatives of committee or a body consisting of representatives involvement and enhance ownership of the

International Labour Ofﬁ ce []Ó 126 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.02 THE ADDED VALUE OF SOCIAL DIALOGUE

process among the main stakeholders in local context. There are many different approaches to • All those involved exercise continuous control development. social dialogue. over the participatory process.

Structures and processes which provide for HOW CAN SOCIAL DIALOGUE WORK AT THE Social dialogue at the local level can be used to successful social dialogue have the potential to LOCAL LEVEL? address a number of important issues affecting resolve important economic and social problems. local development. These include, for example: Social dialogue also encourages good governance, At its core, social dialogue at the local level advances social and industrial peace and stability, is about the equal participation of all relevant • Building consensus on the key local challenges and boosts economic progress. stakeholders. Participation is an approach to and priorities for development development made-up of certain characteristics • Finding ways to improve local working BASIC ELEMENTS that vary according to the problems to be conditions and social protection addressed and the objectives to be achieved. • Managing social and economic change while Social dialogue could take the simplest form Local projects work best if they contain at least maintaining consensus and stability in society of exchanging information to something more three characteristics of participation: • Finding ways to create new local jobs that offer elaborate. While information sharing does security and good living standards not necessarily involve discussion or action, • The participatory approach is objective-oriented • Seeking practical and effective ways of creating information sharing is essential to start to those instead of activity-oriented. Enhancing the adequate and sustainable employment for the processes. capacities of the local people to participate unemployed and under-employed in social dialogue and other development • Protecting the rights of those who work in the Another important element to social dialogue is processes is essential. community as well as their families consultation and discussion. This goes beyond • Responsibilities are redistributed to the • Improving the quality of employment for those the mere sharing of information and requires an main participants in all stages of the project who work in micro and small enterprises engagement by the parties through an exchange cycle (i.e., preparation, implementation and • Identifying the dangers of child labour in the of views, which in turn can lead to more in-depth evaluation). While conventional forms of community and organising to reduce child dialogue. development often rely on a centralised, top- labour down approach to project management, a Effective social dialogue should take into account participatory approach involves social dialogue the cultural, historical, economic and political and a shared decision-making structure.

International Labour Ofﬁ ce []Ó 127 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.02 THE ADDED VALUE OF SOCIAL DIALOGUE

CREATING A FAVOURABLE ENVIRONMENT Representatives of organised business or RELEVANT RESOURCES FOR SOCIAL DIALOGUE worker organisations do not exist in many local communities. In this case, it is important for local • See http://www.ilo.org/public/english/dialogue/ It is important to create a favourable environment development practitioners to look for ways to help themes/sd.htm for social dialogue in the local community. Such local workers and local businesses to organise • Tayo Fashoyin (2003) Social Dialogue and an environment contains: themselves. This may involve inviting provincial Labour Market Performance in the Philippines, representatives of national or regional business or InFocus Programme on Social Dialogue, Labour • Strong, independent workers’ and employers’ worker organisations to come to the community Law and Labour Administration, Working organisations with the technical capacity and and describe the kinds of support they can offer. Paper 14, International Labour Ofﬁ ce, Geneva, access to the relevant information for informed February http://www.ilo.org/public/english/ and substantive participation Another common problem is that many self- dialogue/ifpdial/downloads/papers/philippines.pdf • Political will and commitment to engage in employed and home-workers do not participate social dialogue on the part of all the parties in local social dialogue organisations. These CROSS-REFERENCES • Respect for the fundamental rights of freedom people are easily excluded from business or of association and collective bargaining worker organisations. As a result, they can also be • Tool 1.02, Information Tool: The Decent Work • Appropriate institutional support, like funding excluded from valuable tripartite-led social security Framework and setting-up of tripartite boards systems. Thus, local development practitioners • Tool 2.01, Assessment Tool: Territorial diagnosis should ﬁ nd ways to get local businesspeople and • Tool 3.02.1, Assessment Tool: Assessing local Governments must take an active role to ensure local workers involved in these social dialogue social dialogue institutions and processes that social dialogue works. At the national level, organisations. • Tool 3.02.2, Action Tool: Tips for improving government should create a stable political and collaboration and social dialogue in local civil climate that enables autonomous employers’ The LGU should work with business and worker development and workers’ organisations to operate freely, organisations to ensure they are fully involved in • Tool 3.03, Action Tool: What unions and without fear of reprisal. Government has to local development planning, decision-making, worker organisations can do to promote local provide essential support for the parties’ actions implementation and monitoring. These local development by providing the legal, institutional and other organisations provide an important link to regional • Tool 3.04, Action Tool: Techniques and frameworks, which enable the parties to act and national structures that can also support approaches to better negotiations by indigenous effectively. particular local development initiatives. peoples (and other marginalised sectors)

International Labour Ofﬁ ce []Ó 128 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.02.1 INFORMATIONASSESSMENT TOOLTOOL

THEASSESSING START ANDLOCAL IMPROVE SOCIAL YOURDIALOGUE BUSINESS INSTITUTIONS (SIYB) PROGRAM AND PROCESSES

OVERVIEWKEYWORDS: Business plan, capacity-building, be able to identify strengths and weaknesses in 1. Are there local trade unions or other forms economic growth, entrepreneur, institution- the capacity of the local community to engage in of workers’ organisations located in your Becausebuilding, socialmanagement, dialogue marketing, is a vital to micro the success and meaningful, development-oriented social dialogue. community? ofsmall local enterprises, development, trade it isunion, important training for local - If a trade union or workers’ organisation planners and development practitioners to be able Three areas of concern are addressed in this exists in the community, what type of to assess the capacity of communities for active checklist: (1) local institutions, (2) local processes workers are members? involvement in local development. for social dialogue, and (3) collaboration and - Are local women properly represented partnerships. in local trade unions or worker OBJECTIVE organisations? ASSESSING LOCAL INSTITUTIONS - Are home-workers properly represented This tool lists key questions that local development in local trade unions or worker (LD) planners and practitioners could use in order The existence, capacity and performance of organisations? to: local institutions should be assessed ﬁ rst. Refer - Do trade unions or worker associations to Tool No. 2.01 on Territorial diagnosis for a undertake regular membership drives? • Identify key local partners and stakeholders comprehensive checklist for identifying institutions - What types of local workers are • Assess the strengths and weaknesses in and stakeholders that should be engaged in the not represented by trade unions or the capacity of the community to engage local development process. other forms of worker organisations? in meaningful social dialogue and actively (Agricultural workers, non-wage earners, participate in planning and implementation The checklist of institutions below examines only seasonal migrant workers, etc.) the representation of various stakeholders in social - Are local trade unions or worker This checklist provides a series of issues dialogue. For social dialogue to be successful, organisations actively supported by concerning social dialogue at the local level that it requires local institutions that can effectively regional or national structures? can be investigated. By using this checklist, local represent local stakeholders. 2. Are there business or employer organisations development (LD) practitioners and planners will located in your community? - If your community contains business or

International Labour Ofﬁ ce []Ó 129 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.02.1 ASSESSING LOCAL SOCIAL DIALOGUE INSTITUTIONS AND PROCESSES

employer organisations, what kinds of LOCAL PROCESSES FOR SOCIAL DIALOGUE • Is there a local process in place for dealing with businesses are represented? disputes between local workers and employers? - Are micro and small enterprises represented The existence and performance of local processes • Are there processes for informing local people in any formal organisation? for social dialogue is the second issue to assess. (i.e., residents, workers, employers) about their - Are women entrepreneurs represented in Workers, employers, government and other human rights, including their rights at work? any formal organisation? stakeholders need to have an opportunity to come - Do local businesses or employer together to participate in social dialogue for local COLLABORATION AND PARTNERSHIPS organisations undertake regular development. Thus, it is important to assess these membership drives? processes and determine their effectiveness in Finally, it is important to assess the extent of achieving full participation by all stakeholders in collaboration and partnership between social 3. Are there organisations that represent local local development planning and decision-making. partners. While there may often be conﬂ ict civil society? and dispute between social partners, local - How many local people are represented by Issues for consideration include the following: development requires collaboration and these organisations? partnership by all parties. Thus, it is important to - Are these civil society organisations truly • Does the Local Government Unit (LGU) provide assess the extent to which social partners work representing the interest of their groups? an opportunity for representatives from workers, together to achieve common local development business and community organisations to come goals. 4. Are there organisations that represent local together to discussion local economic and social indigenous groups? development? Issues for consideration include the following: - How many indigenous people are • How much information sharing occurs between represented by these organisations? local government, worker, business and • Are there any local projects being implemented - Can these organisations take decision on community organisations? in partnership between the public and private behalf of the community? • Do national or regional line-agencies or sectors? departments provide an opportunity for • Are there any local projects in which worker and 5. Are there organisations that represent local representatives from workers, business and business or employer organisations participate? women? community organisations to come together • Do local trade unions or worker organisations - How many women are represented by these to discuss local economic and social lobby their regional or national structures for organisations? development? support on local development projects?

International Labour Ofﬁ ce []Ó 130 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.02.1 ASSESSING LOCAL SOCIAL DIALOGUE INSTITUTIONS AND PROCESSES

• Do local business associations or chambers • There are there new opportunities for CROSS-REFERENCES of commerce lobby their regional or national partnerships between the public and private structures for support on local development sector? • Tool 3.02, Information Tool: The added value of projects? • What local structures or processes exist to social dialogue • Do local trade unions or workers’ organisations promote and monitor collaboration between the • Tool 2.01, Assessment Tool: Territorial diagnosis encourage and facilitate their members to public and private sectors and between worker participate in local development projects? and employer organisations? • Are their local community organisations that collaborate with regional or national Successful local development requires effective development organisations? social dialogue by all social partners to ensure • Do business or employer organisations ownership of the development process. Local encourage their members to participate in local development practitioners and planners must be development projects? able to assess the effectiveness of social dialogue • Do local trade unions or worker organisations in their community and identify strengths and promote local development issues and raise weaknesses in the capacity of the local community awareness among their members regarding to meaningfully engage in development -oriented local development matters? social dialogue. • Do business or employer organisations promote local development issues and raise awareness Representation of all social partners is essential, among their members regarding local as well as the opportunity for these partners to development matters? come together to participate in social dialogue for • Does the LGU encourage partnerships between local development. the public and private sector? If so, how? • What are the barriers to local partnerships between the public and private sector?

International Labour Ofﬁ ce []Ó 131 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.02.2 INFORMATIONACTION TOOL TOOL

THETIPS START FOR IMPROVING AND IMPROVE COLLABORATION YOUR BUSINESS AND (SIYB)SOCIAL PROGRAM DIALOGUE IN LOCAL DEVELOPMENT

OBJECTIVEKEYWORDS: Business plan, capacity-building, THESE SIX FACTORS ARE DESCRIBED IN FURTHER Factors related to MEMBERSHIP CHARACTERISTICS: economic growth, entrepreneur, institution- DETAIL BELOW. Thisbuilding, action management, tool discusses marketing, six factors micro to successful and 1. Mutual respect, understanding and trust: collaborationsmall enterprises, and describestrade union, some training of the ways Factors related to the ENVIRONMENT: Members of the collaborative group share an these factors infl uence collaboration. understanding and respect for each other 1. History of collaboration or cooperation in and their respective organisations: how they KEY FACTORS IN SUCCESSFUL the community: A history of collaboration or operate, their cultural norms and values, COLLABORATION cooperation exists in the community and limitations, and expectations. offers the potential collaborative partners 2. Appropriate cross-section of members: The There are six broad factors of infl uence that affect and understanding of roles and expectations collaborative group includes representatives successful collaboration: required in collaboration and enables them to from each segment of the community who will • Environment trust the process. be affected by its activities. • Membership 2. Collaborative group seen as a leader in the 3. Members see collaboration as in their self- • Process/structure community: The collaborative group (and by interest: Collaborating partners believe the • Communication implication, the agencies in the group) is benefi ts of collaboration will offset costs such • Purpose perceived within the community as a leader as loss of autonomy and “turf”. • Resources - at least in relation to the goals and activities it 4. Ability to compromise: Collaborating partners intends to accomplish. are able to compromise, since the many 3. Favourable Political/Social Environment: decisions within a collaborative effort cannot Political leaders, opinion-makers, persons who possibly fi t the preferences of every member control resources, and the general public who perfectly. support (or at least do not oppose) the mission of the collaborative group.

International Labour Ofﬁ ce []Ó 132 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.02.2 TIPS FOR IMPROVING COLLABORATION AND SOCIAL DIALOGUE IN LOCAL DEVELOPMENT

Factors related to PROCESS/ STRUCTURE: Factors related to COMMUNICATION: Factors related to RESOURCES:

1. Members share a stake in both process and 1. Open and frequent communication: Collaborative 1. Suffi cient funds: The collaborative group has an outcome: Members of a collaborative group feel group members interact often, update one adequate, consistent fi nancial base to support “ownership” of both the way the group works another, discuss issues openly, and convey all its operations. and the results or product of its work. necessary information to one another and to 2. Skilled convener: The individual who convenes 2. Multiple layers of decision-making: Every level people outside the group. the collaborative group has organising and (upper management, middle management, 2. Established informal and formal communication interpersonal skills and carries out the role with operations) within each organisation in the links: Channels of communication exist fairness. collaborative group participates in decision- on paper, so that information fl ow occurs. making. In addition, members establish personal LOCAL DEVELOPMENT AND SOCIAL 3. Flexibility: The collaborative group remains connections - producing a better, more DIALOGUE IN MARIKINA open to varied ways of organising itself and informed and cohesive group working on a accomplishing its work. common project. This case study provides an overview of the 4. Development of clear roles and policy tripartism mechanism established by the City of guidelines: The collaborating partners Factors related to PURPOSE: Marikina and the lessons that are drawn from its clearly understand their roles, rights and success. responsibilities; and how to carry out those 1. Concrete, attainable goals and objectives: Goals responsibilities. and objectives of the collaborative group are From the 1970’s until the early 1990’s, Marikina 5. Adaptability : The collaborative group has the clear to all partners and can realistically be was characterized by industrial, social and ability to sustain itself in the midst of major attained. physical deterioration. The special industrial zone changes, even if it needs to change some 2. Shared vision: Collaborating partners have the status was withdrawn the 1970s; foreign dumping major goals, members, etc., in order to deal same vision with clearly agreed upon mission, caused the collapse of the shoe industry. Not with changing conditions. objectives and strategy. surprisingly, it was a hotbed of industrial unrest. 3. Unique purpose: The mission and goals or Worse, Marikina was plagued by fl oods and crime. approach of the collaborative group differ, at least in part, from the mission and goals or Marikina today is multi-awarded and one of approach of the member organisations. the most livable cities in Metro Manila. There

International Labour Ofﬁ ce []Ó 133 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.02.2 TIPS FOR IMPROVING COLLABORATION AND SOCIAL DIALOGUE IN LOCAL DEVELOPMENT

is industrial peace in the city which has been a series of formal and informal dialogues. A • The tripartite agenda focused on the strike-free since 1997.The Marikina River has tripartite agreement that stipulated a no-strike for development needs of Marikina and all the been rehabilitated; infrastructures vastly improved. new enterprises in the fi rst three years and the stakeholders; The barangays and streets are clean and traffi c establishment of dispute settlement procedure • The institutionalization of the tripartite discipline restored. Crime has abated. City with full recognition of labor rights was forged system was preceded by confi dence-building governance is modern and professional with in 1995 and renewed in 1998. Tripartism was measures; IT-based systems and transparent walls. With institutionalized through the Workers Assistance • Mechanisms were put in place to implement increased investments in ICT/BPO, SMEs, and Offi ce which has a secretariat led by a former tripartite decisions; commerce, the city’s dream of becoming “Little labor leader. The Tripartite Agreement serves as • There is consensus to sustain tripartism in Singapore” is slowly being realized. the guidelines in dealing with labor management support of a better future for Marikina. concerns in the city. The factors that account for Marikina’s successful transformation include: (a) the role of a visionary The following are the lessons from the tripartite leader in arresting decline and initiating reforms); system of Marikina: and b) institutionalizing social dialogue and tripartism in the industrial front to build a regime • The success in developing a tripartite system of industrial peace. Marikina is said to have the depends on the political will and commitment to most successful tripartite accord in the country. conduct social dialogue among the parties; Industrial peace has become a base for future • The participation of independent workers’ and growth where there is assurance of peace and employees’ organizations with access to relevant stability. information; • Appropriate institutional support is necessary; The tripartism mechanism was put in place • Fundamental labor rights must be respected; through several initiatives. Mayor Bayani Fernando • There should be information sharing and reached out to labor and business sectors through consultation beyond cosmetic issues; formal and informal meetings and symbolic • Government attitude to system gestures such as the inclusion of a labor leader institutionalization needs to be serious and in the electoral line-up, He then arranged for sustained;

International Labour Ofﬁ ce []Ó 134 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.02.2 TIPS FOR IMPROVING COLLABORATION AND SOCIAL DIALOGUE IN LOCAL DEVELOPMENT

ACKNOWLEDGEMENTS CROSS-REFERENCES

The key factors in successful collaboration were • Tool 3.02, Information Tool: The added value of based upon examination of 18 major studies by social dialogue the Amnest Wilder Foundation and elaborated in • Tool 3.02.1, Assessment Tool: Assessing local the publication Collaboration - What makes it work! social dialogue institutions and processes

The documentation of the Marikina experience was based on a case study presented by Dr. Rene E. Ofreneo, School of Labor and Industrial Relations, University of the Philippines during the Technical Workshop on Employment Generation, Peace and Security, August 2006

International Labour Ofﬁ ce []Ó 135 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.03 INFORMATIONACTION TOOL TOOL

THEWHAT START UNIONS AND AND IMPROVE WORKER YOUR ORGANISATIONS BUSINESS (SIYB) CAN PROGRAMDO TO PROMOTE LOCAL DEVELOPMENT

OBJECTIVEKEYWORDS: Business plan, capacity-building, WORKERS – VOICE AND REPRESENTATION workers, self-employed workers in general or economic growth, entrepreneur, institution- THROUGH THEIR ORGANISATIONS those who practice liberal professions, who should Thisbuilding, action management, tool is primarily marketing, for trade micro unions and and nevertheless enjoy the right to organise. othersmall workers’enterprises, organisations, trade union, which training have a role It is through organisation that workers acquire in local development and poverty reduction. the critical strength to speak with one voice and Trade unions (or labour unions) are the most This tool suggests a range of actions that can inﬂ uence policy decisions in their favour. common institution of “voice” through which be undertaken by trade unions and workers’ Article 2 of Convention No. 87 provides that workers have traditionally organised for the organisations to participate meaningfully in local workers and employers, without distinction purposes of maintaining or improving the conditions development efforts that beneﬁ t their members, whatsoever, shall have the right to establish and to of their working lives. They may do this through their families and their communities. join organisations of their own choosing. The right collective bargaining with employers and through to form and to join organisations for the promotion other means. This tool is also relevant to local development and defence of workers’ interests without previous practitioners and planners. Some parts of this tool authorisation is a fundamental right, which should Other types of worker organisations may exist, give practical, action-oriented ideas on how they be enjoyed by all workers without distinction although they are often not legally constituted can support and promote the involvement of trade whatsoever. institutions. This is especially the case at unions and worker organisations in local economic the community level where workers, such as and social development. By virtue of the principles of freedom of own-account workers, workers in intermittent association, all workers - with the sole exception employment arrangements and unpaid family of members of the armed forces and police workers, often get together to overcome problems - should have the right to establish and to join that they cannot address individually and that the organisations of their own choosing. The criterion local government might be unable or unwilling for determining the persons covered by that right, to solve. A common characteristic between trade therefore, is not based on the existence of an unions and other types of worker organisations is employment relationship, which is often non- that they are membership-based and therefore can existent, for example in the case of agricultural legitimately claim to speak on behalf of workers.

International Labour Ofﬁ ce []Ó 136 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.03 WHAT UNIONS AND WORKER ORGANISATIONS CAN DO TO PROMOTE LOCAL DEVELOPMENT

GENERAL ROLE OF TRADE UNIONS AND The rights of labour unions under the Philippine is the economic and social advancement of the OTHER WORKER ORGANISATIONS: DEFENCE Labour Code (Chapter III) are: workers. When trade unions, in accordance with AND PROMOTION OF THE INTERESTS OF the national law and practice of their respective WORKERS • Act as representative of its members for the countries and at the decision of their members, purpose of collective bargaining decide to establish relations with a political party The Philippine Labour Code guarantees the right • To be certifi ed as exclusive representative or to undertake constitutional political action of ALL workers to self-organisation, and recognises of all employees in an appropriate collective as a means towards the advancement of their the role of all worker organisations to bargain bargaining unit for purposes of collective economic and social objectives, such political collectively for their interests, and undertake bargaining relations or actions should not be of such a activities for mutual support and protection. • To be furnished by the employer with annual nature as to compromise the continuance of the audited fi nancial statements after the union trade union movement or its social or economic Article 243 of the Philippine Labour Code states: has been duly recognised by the employer or functions, irrespective of political changes in the certifi ed as the sole and exclusive bargaining country. “All persons employed in commercial, representative of employees in the bargaining industrial and agricultural enterprises unit ROLE IN LOCAL DEVELOPMENT and in religious, charitable, medical or • To own property, real or personal, for the use educational institutions whether operating and benefi t of the organisation and members Trade unions and worker organisations are for profi t or not, shall have the right • To sue and be sued important social partners in local development. to self-organisation and to form, join, • To undertake all other activities designed to Local development practitioners and planners or assist labour organisations of their benefi t the organisation and its members, may often think that trade unions and worker own choosing for purposes of collective including cooperative, housing welfare and organisations are only concerned with narrow bargaining. Ambulant, intermittent and other projects not contrary to law workplace issues. While this may be true in itinerant workers, self-employed people, some instances, many trade unions and worker rural workers and those without any According to the principles stated in the resolution organisations recognise that employment issues defi nite employers may form labour on the independence of the trade union movement are life issues, affecting the workplace, the home, organisations for their mutual aid and adopted by the International Labour Conference and the local community. Thus, trade unions protection.” at its 35th Session (1952), the fundamental and and worker organisations can become important permanent mission of the trade union movement partners in local development, by (a) representing

International Labour Ofﬁ ce []Ó 137 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.03 WHAT UNIONS AND WORKER ORGANISATIONS CAN DO TO PROMOTE LOCAL DEVELOPMENT

and expressing the distinct concerns and SOME ACTIONS THAT TRADE UNIONS AND assigned to specifi c committees formed as part of interests of workers in consultations and planning WORKER ORGANISATIONS CAN UNDERTAKE a local development strategy. These people can processes, and (b) mobilising the support of the represent the views of their members and take workers’ community behind local development RAISE AWARENESS AMONG WORKERS information back to their members. goals, targets and projects. Local trade unions and worker organisations MOBILISE THEIR MEMBERS FOR LD MEETINGS, Local trade unions and worker organisations have can conduct a variety of activities that raise the EVENTS AND PROJECTS a direct link with information on employment awareness of workers about local development issues and challenges. The resolution of issues and the various development activities being Local development (LD) requires the participation regarding wages and other terms and conditions of undertaken as a part of a development of a broad cross-section of the local community. employment, especially when these affect incomes program. They can help local workers to see the Because they have broad membership base, and the local economy, require the engagement of connections between local development and their local worker organisations can support local trade unions. own employment concerns and opportunities. development efforts by mobilising their members Trade unions and worker organisations can hold for LD meetings, events and projects. Along with the other tripartite partners (i.e., meetings with their members, provide information employers and government) trade unions leafl ets, and distribute invitations to public PARTICIPATE IN ALLIANCES AND PARTNERSHIPS and worker organisations make the principle meetings. WITH OTHER LOCAL STAKEHOLDERS IN of tripartism and social dialogue a real life DEVELOPMENT PROJECTS experience. However, certain basic conditions TAKE AN ACTIVE ROLE IN LOCAL DEVELOPMENT have to be present to ensure that trade unions COMMITTEES AND FORUMS Trade unions and worker organisations can and worker organisations can participate in local take on specifi c LD projects and become active development in a very practical manner. This Local development requires the participation of partners in the local development process. This includes freedom of association and the right to all local social partners (i.e., local stakeholders). kind of participation may involve time, energy bargain collectively. Trade unions and worker organisations can and commitment on behalf of the trade union promote local development efforts by ensuring and worker organisation and its representatives. Trade unions can solicit the support of their they are properly represented in all local It might also involve fundraising, advocacy and regional and national trade union movements. development committees and forums. Trade union physical participation. and worker organisation representatives can be

International Labour Ofﬁ ce []Ó 138 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.03 WHAT UNIONS AND WORKER ORGANISATIONS CAN DO TO PROMOTE LOCAL DEVELOPMENT

MOBILISE PROVINCIAL, REGIONAL AND NATIONAL and contributions. They should continuously look other social partners. While this is necessary to SUPPORT FOR LOCAL DEVELOPMENT ACTIVITIES for opportunities for direct participation by trade address workplace concerns between employers AND PROJECTS unions and worker organisations in local projects and workers, it is also necessary for local and process. development. Local worker organisations are usually part of a national network of workers. These networks Some of the ways local planners and development IDENTIFY AREAS OF COMMON INTEREST have national and regional structures that offer practitioners can maximise the involvement of support and guidance to local structures. Local workers and unions in local development include While worker organisations may take a narrow view trade unions and worker organisations can tap the following: on the interests of their workers, it is important into these broader structures and enlist their that local development practitioners and planners support. This support might bring funds, training, RECOGNISE LOCAL UNIONS AND WORKER fi nd areas where workers’ interests and local information or assistance with advocacy at regional ORGANISATIONS development are similar. or national levels. It is important to recognise local unions and PROMOTE OPPORTUNITIES AFFILIATIONS AND WHAT LOCAL PLANNERS AND worker organisations and the roles they can ENDORSEMENTS DEVELOPMENT PRACTITIONERS DO TO perform in local development. This can be done ENCOURAGE INVOLVEMENT OF TRADE through formal processes or simply by ensuring Worker organisations can be encouraged to UNIONS AND WORKER ORGANISATIONS that these bodies are invited to relevant meetings support LD efforts through the use of affi liations and events. and endorsements. Local unions and worker Successful local development requires the full organisations can formally affi liate themselves and equal participation of all local social partners. CREATE A PLATFORM FOR INFORMATION SHARING with a local development agency. This helps the Trade unions and worker organisations are a vital AND SOCIAL DIALOGUE local development agency to display community resource for the community. Local development support for their efforts. Similarly, local trade practitioners and planners should work with local Effective participation requires relevant processes unions can endorse certain LD initiatives or trade unions and worker organisations. They and mechanisms. It is important to create a projects, thereby offi cially showing their solidarity should ensure these groups are aware of local platform for information sharing and social for these efforts. development activities and seek their support dialogue between local worker organisations and

International Labour Ofﬁ ce []Ó 139 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.03 WHAT UNIONS AND WORKER ORGANISATIONS CAN DO TO PROMOTE LOCAL DEVELOPMENT

BUILD LOCAL CAPACITY AND CAPABILITIES RELEVANT RESOURCES CROSS-REFERENCE

Local development organisations of all kinds, • See: http://www.ilo.org/public/english/dialogue/ • Tool 3.02, Information Tool: The added value of including worker organisations, require speciﬁ c index.htm social dialogue capacities and capabilities if they are going to perform effectively and beneﬁ t the local community. This often requires local development practitioners and planners to consider the development of local organisations.

International Labour Ofﬁ ce []Ó 140 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.04 INFORMATIONACTION TOOL TOOL

THETECHNIQUES START AND AND IMPROVE APPROACHES YOUR TOBUSINESS BETTER (SIYB)NEGOTIATION PROGRAM BY INDIGENOUS PEOPLES (AND OTHER MARGINALISED SECTORS) KEYWORDS: Business plan, capacity-building, economic growth, entrepreneur, institution- OVERVIEW and actors for the recognition and promotion • The Indigenous Peoples Rights Act (IPRA) building, management, marketing, micro and of their economic and social development small enterprises, trade union, training The indigenous peoples’ share (and of other aspirations Indigenous Peoples is defi ned in the marginalised groups) of development benefi ts • Measures that local governments could take Indigenous Peoples Rights Act as a group of is dependent not only upon the existence of an in order to facilitate or encourage indigenous people or homogenous societies identifi ed enabling regulatory framework, but also upon peoples (and other marginalised groups) in their by self-ascription and ascription by others, their capacity to negotiate with the state and/ community to participate in local planning and who have continuously lived as organised or the private sector fair and adequate terms implementation processes community on communally bounded and and conditions. This, in turn, depends on the defi ned territory, and who have, under existence of representative, strong and technically LEGAL AND POLICY FRAMEWORK claims of ownership since time immemorial, equipped indigenous and tribal organisations occupied, possessed and utilised such and/or communities. National laws: territories, sharing common bonds of language, customs, traditions and distinctive OBJECTIVE • The Philippine Constitution (1987) cultural traits, or who have, through resistance to political, social and cultural inroads This action tool is meant for indigenous peoples The Constitution mandates the recognition of colonisation, non-indigenous religious (and other marginalised groups), and for LGUs. and promotion of the rights of indigenous cultures, became historically differentiated peoples (Sec. 22, Article II) and provides from the majority of Filipinos. Indigenous The tool suggests: for the protection of the rights of indigenous peoples shall likewise include peoples who peoples to their ancestral domains to ensure are regarded as indigenous on account of • Approaches and techniques that indigenous their economic, social and cultural well-being their decent from the populations which peoples (and other marginalised groups) could (Sec. 4, Article XII). inhabited the country, at the time of conquest use to effectively negotiate with local authorities or colonisation, or at the time of inroads of

International Labour Ofﬁ ce []Ó 141 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.04 TECHNIQUES AND APPROACHES TO BETTER NEGOTIATION BY INDIGENOUS PEOPLES AND OTHER MARGINALISED SECTORS

non-indigenous religions and cultures, or the plans and programs for national, regional and • The Comprehensive Agrarian Reform Law (R.A. establishment of present state boundaries, local development which may affect them No. 6657) who retain some or all of their own social, To establish their own peoples’ organisations economic, cultural and political institutions, to enable them to pursue and protect their Pursuant to Section 9 of the Comprehensive but who may have been displaced from their legitimate and collective aspirations Agrarian Reform Law, Department of Agrarian traditional domains or who may have resettled To be granted the means to fully develop their Reform administrative Order No. 04, Series of outside their ancestral domains. own institutions and initiatives 1996, providing for regulations governing the issuance of Comprehensive Agrarian Reform The IPRA provides for the recognition of the • The Local Government Code of 1991 (R.A. No. Program Beneﬁ ciary Certiﬁ cates to indigenous rights of the indigenous peoples: 7160) peoples, was issued.

To freely pursue their economic, social and The Local Government Code provides for International instrument cultural development representation of marginalised sectors, To use commonly accepted justice systems, including indigenous peoples, in the local International Labour Organization (ILO) Convention confl ict resolution institutions, peace building legislative bodies. It also provides for on Indigenous and Tribal Peoples in Independent process and other customary laws the creation of tribal barangays through Countries (No. 169) – The Convention (Art. To participate in decision-making that may legislation. 6.2) provides the framework for discussions affect their lives and destinies and to maintain and negotiations between government (as well and develop their own indigenous political • The National Integrated Protected Areas System as private entities) and indigenous and tribal institutions Law (R.A. No. 7586) peoples through consultations aimed at reaching To be given mandatory representation in agreement or full and informed consent. policy making bodies and local legislative The NIPAS law provides for the recognition councils of the rights of indigenous peoples within COMMON REASONS FOR NEGOTIATION To determine their own priorities for protected areas. Under its implementing development by guaranteeing their rules and regulations (DAO 25, S. 1992), A. Legal ambiguity/infi rmity - Indigenous peoples participation in the formulation, the delineation of ancestral domains within negotiate when they clearly have rights under implementation and evaluation of policies, protected areas is provided. the law but these rights are not specifi cally defi ned or are not recognised for want of

International Labour Ofﬁ ce []Ó 142 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.04 TECHNIQUES AND APPROACHES TO BETTER NEGOTIATION BY INDIGENOUS PEOPLES AND OTHER MARGINALISED SECTORS

proper guidelines. Negotiation is resorted to for GUIDELINES TO BETTER NEGOTIATIONS Know and exercise the rights attendant to the the purpose of achieving clarity or to resolve negotiation complex issues that could not be resolved PREPARATORY PHASE: effi ciently through litigation. The community’s credibility as a party to Identify and understand the issue the negotiation is important, and one way to B. Inequalities of power - Indigenous peoples demonstrate this credibility is for the negotiators negotiate when they fi nd themselves without Negotiation presupposes the existence of an to show mastery of the attendant rights and suffi cient power to enforce recognition of these important problem or issue to be resolved with entitlements accorded by law and public policy. A rights. other parties or stakeholders. It is therefore negotiating position must be argued on the basis imperative for concerned communities and of facts, not of values. C. Devolution of authority - Negotiation is used to negotiators to know and understand the issue facilitate devolution of authority e.g. over the thoroughly before taking part in a negotiation. Create a representative negotiating team natural resources. Relevant information may be obtained through the conduct of research within the community and The negotiating team must be truly representative D. Ecological emergencies - Negotiation is used outside. of the community. It is important for the team to enlist indigenous peoples cooperation in to be composed of qualifi ed members of the resource management. Determine and defi ne the community’s position on community of different ages and from different the issue sectors of the community. This is for the purpose E. Political culture - Indigenous peoples generally of ensuring that all necessary interests and views prefer to negotiate rather than engage in Through extensive consultations, determine are represented. The team must clearly have the adversarial court proceedings. and defi ne the community members’ collective full support and confi dence of the community. position on the issue. This may be in the form of a solution or goal, based on common priority Gather information about the other parties to the needs and interests, and needs to be determined negotiation and defi ned. Likewise, the strengths and weaknesses of this position have to be identifi ed In developing an appropriate negotiating strategy, and understood. it is essential for the community and its negotiating team to have prior knowledge of the other parties

International Labour Ofﬁ ce []Ó 143 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.04 TECHNIQUES AND APPROACHES TO BETTER NEGOTIATION BY INDIGENOUS PEOPLES AND OTHER MARGINALISED SECTORS

to the negotiation, including their constituency, NEGOTIATION PHASE: 3. Promote indigenous knowledge systems and their needs and interests, and the goals they want practices to achieve from the negotiations. 1. Promote mutual respect and understanding Indigenous knowledge systems and practices Decide who to negotiate with The objective of negotiation is not to win at all (IKSP) could be a wellspring of information which cost and at the expense of the other parties. It may be used to support propositions leading to the The success of the negotiation depends on, is to promote mutual respect and understanding resolution of an issue. By tapping relevant IKSPs, among others, being able to negotiate with the and develop a relationship of lasting co-existence a negotiating position could be strengthened right people. And the right people are invariably as a means of attaining legitimate goals. signifi cantly. Among others, IKSPs could provide the true decision-makers and implementers, or Demonstrated good faith and sincerity in the the basis for making arrangements to have the their expressly authorised representatives. process of negotiation is a potent ingredient in the negotiations take place in the community itself, development of this kind of relationship. to assert the use of the local language and Develop a sound negotiating strategy procedures. 2. Be assertive without being aggressive Negotiations need not result to victory or defeat. 4. Draw from related laws and policies It is much more desirable that in the course of Experience has indicated that the best way to negotiation, the parties discover ways to promote pursue a negotiating position is to be forthright A negotiating position that is founded on existing one another’s rightful interests and reasonable in a positive and tactful manner. Aggressiveness laws and policies could gain tremendous goals. A good negotiating strategy is one that invariably breeds hostility and disdain. Patience strength and indisputable legitimacy. Parties inspires mutual cooperation among the parties is always a key element to successful negotiation, in a negotiation may fi nd it diffi cult to assume a and contributes to the attainment of a “win-win” but patience must not be allowed to deteriorate position that is clearly contrary to law and public solution to the problem. into passivity, which is a very ineffective policy or against generally accepted principles. way of getting an issue favourably resolved. Unreasonable parties in a negotiation must 5. Deal pressure intelligently and resolutely however be dealt with fi rmly and resolutely. It is not uncommon for parties to employ pressure in seeking acceptance of their proposals. Negotiators may resort to technicalities and legal

International Labour Ofﬁ ce []Ó 144 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.04 TECHNIQUES AND APPROACHES TO BETTER NEGOTIATION BY INDIGENOUS PEOPLES AND OTHER MARGINALISED SECTORS

manoeuvres to weaken the positions of opposing community ownership of the agreements and respect for their culture, allows their genuine parties. When this happens, it is necessary to ensures that the corresponding commitments are involvement in the development process and show that one understands these tactics and is not given due course. paves the way for the equitable delivery of basic being intimidated by them. To keep the balance, services to them. support groups may be mobilised to generate 2. Ensure proper implementation of agreements favourable public opinion. 2. Formulate clear and culture-sensitive There is no denying the importance of properly procedures for negotiation 6. Keep community members and support groups implementing existing agreements. The extent informed by which concessions gained in the course of Indigenous peoples look for a level playing ﬁ eld negotiation would be honoured by the other when entering into negotiations, including clear Considering that the authority and power to party is to some extent dependent on how far and culture-sensitive rules and procedures the negotiate is derived from the collective will of the community itself would honour its own formulation of which they have participated. the community members, it is essential to keep commitments. Moreover, the credibility of the them, and other support groups, informed of the community to engage in further negotiations is 3. Provide relevant information developments in the negotiation. It is likewise anchored on its ability to properly implement essential to maintain regular consultations with the current agreements. The full disclosure of relevant information in a community and the other stakeholders. This will medium that they can easily understand is a not only work to ensure continuing support but WHAT LOCAL GOVERNMENTS SHOULD/ powerful conﬁ dence-building measure that could also to keep the negotiating position credible. CAN DO TO FACILITATE OR ENCOURAGE readily encourage the indigenous peoples to enter NEGOTIATIONS BY INDIGENOUS PEOPLES into negotiations. POST-NEGOTIATION PHASE: 1. Create a legal and policy framework conducive 4. Initiate the negotiation process 1 Submit resulting agreements to the community to negotiation for validation It is often imperative for the local government to The local legal and policy framework could be proactive and initiate the negotiation process. Final agreements resulting from the negotiations go along way in encouraging or facilitating In so doing, it sends the signal to the indigenous need to be submitted to the community for negotiations with indigenous peoples if it peoples that it is ready for negotiations rather than validation. The validation process strengthens recognises their rights, shows recognition of and use the all too familiar coercive mechanisms.

International Labour Ofﬁ ce []Ó 145 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.04 TECHNIQUES AND APPROACHES TO BETTER NEGOTIATION BY INDIGENOUS PEOPLES AND OTHER MARGINALISED SECTORS

5. Let the indigenous peoples chose their 7. Effectively implement agreements resulting from RELEVANT RESOURCES representatives negotiations • Effective Negotiation by Indigenous Peoples: An The importance and necessity of allowing Agreements resulting from negotiations that are Action Guide with Special Reference to North the indigenous peoples to choose their own implemented to the satisfaction of the indigenous America. Russel Lawrence Barsh – Krisma representatives to the negotiations cannot be peoples and all other legitimate stakeholders are Bastien. ILO, 1997 http://www-ilo-mirror.cornell. denied. In cases where the indigenous peoples’ potent sources of motivation and encouragement edu/public/english/employment/strat/poldev/ representatives are assigned, the negotiations for subsequent negotiations. Unimplemented or papers/1998/indneg/index.htm usually lose steam in no time. ineffectively implemented agreements are often • Integrating Indigenous Knowledge in Project cited by indigenous peoples as reason enough for Planning and Implementation. Alan R. Emery. 6. Demonstrate local government sincerity and them to shun negotiations altogether. Partnership publication of the International Labour fairness Organization, World Bank, Canadian International Development Agency and KIVU Nature, Inc. 2000 The indigenous peoples are generally sensitive to http://www.kivu.com/wbbook/ikhomepage.html processes that they perceive to be insincere and • Cry out for Peace: Social and Psychological Notes unfair, especially where they have so much at on Peace Making in Local Governance. Montiel, stake in the undertaking, such as the loss of their Cristina Jayme and Fr. Briones, Adelfo V. Ateneo rights to land and resources. Center for Social Policy and Public Affairs. 1995 • Republic Act No. 8371. Indigenous Peoples Rights Act (IPRA). 1997

CROSS-REFERENCES

• Tool 3.02, Information Tool: The added value of social dialogue • Tool 4.05.04, Information Tool: Equality of opportunities: issues affecting indigenous peoples

International Labour Ofﬁ ce []Ó 146 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.05 INFORMATIONACTION TOOL TOOL

THECOMMUNITY START AND MOBILISATION IMPROVE YOUR STRATEGIES BUSINESS (SIYB) PROGRAM

OVERVIEWKEYWORDS: Business plan, capacity-building, OBJECTIVE RESPONDING TO POVERTY AND UNEMPLOYMENT economic growth, entrepreneur, institution- Successfulbuilding, management, local economic marketing, and social micro development and This action tool Poverty and unemployment are experiences requiressmall enterprises, the combined trade efforts union, of training a range shared by many. Whilst national and regional of different groups. These groups include • Provides local development practitioners and statistics indicate the extent and nature of poverty government, the private sector, unions and the planners with a number of practical issues and unemployment, it is at the local level that the community sector. to be considered when designing strategies human face of these issues is seen. When friends, to mobilise their local communities for local children, parents or associates begin to lose While effective policies are required at a national, economic and social development. their jobs, the signs of poverty or disadvantaged regional, or provincial level, there is growing • Discusses some of the common motivations increase (such as deteriorations in health, social international experience that demonstrates the and elements that are found in all successful disruptions, increased family pressures), local signiﬁ cant impact that local communities can mobilisation strategies. people begin to recognise the evils of poverty and have upon this situation. What is required is a unemployment and the need for local action. means through which local communities can COMMON INTERESTS Thus, local communities can be mobilised work in a strategic and coordinated manner to around the need to respond to poverty and address some of the causes and consequences Before examining some of the practical strategies unemployment. of unemployment, poverty and other forms of that may be applied to community mobilisation, underdevelopment. it is valuable to appreciate some of the common LOCAL COMMITMENT interests that local agencies share. It is through Community mobilisation will not create any jobs or these common interests that the motivation and Local people have a commitment to their area. reduce poverty in itself. However, it is an essential rationale for local action is established. Simply because they live in the area and have prerequisite for local development. There are three main forms of common interests their friends and family there, local residents that local agencies often share: have a very tangible interest in the area the policies and programs that affect it. Thus, they are the ones who experience the consequences

International Labour Ofﬁ ce []Ó 147 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.05 COMMUNITY MOBILISATION STRATEGIES

of globalisation, new policy initiatives, government the social, cultural and economic makeup of the unite. Whilst unemployment or poverty may be programs, development proposals, and so on. This community, and the development issues at hand. the main issue, these are negative issues that interest and commitment to the area can unite a can sometimes disempower local action. Thus, it community and act as a catalyst for local action. There are seven broad elements that should may be better to develop a theme for community be considered when designing a community mobilisation, which is more positively framed, MANY PEOPLE ARE FRUSTRATED BY POWERLESS mobilisation strategy. such as a ‘local job creation’, ‘building a better SITUATIONS community’, ‘giving our children a better future’, 1. NEED FOR A VEHICLE OR MECHANISM etc. A positive, action oriented theme will assist Often the residents of local communities in the process of uniting people for a common are frustrated by the lack of consultation by Some form of organisation is required to facilitate purpose. government and development agents. They may local action and community mobilisation. This see opportunities for change but have no means organisation may already exist, or it may have to 3. MAXIMISE THE USE OF LOCAL RESOURCES, through which these can be raised, assessed be created speciﬁ cally for this purpose. It may be ENERGY AND INITIATIVE or implemented. Community mobilisation can a Local Government Unit (LGU), a barangay, a be organised on the basis of consultation and local women’s organisation, union, or community Community mobilisation should endeavour to empowerment. Local residents can be encouraged organisation. apply all available local resources to the task of to take action and initiative, rather than simply local economic and social development. This can waiting for national or regional government The chosen organisation must be one that all be achieved through: authorities to give them dole outs. parties will be happy to be associated with and it must be based within the local community. In • Identiﬁ cation of local resources SEVEN KEY ELEMENTS TO COMMUNITY some cases, more than one organisation will be • Co-ordination of all local stakeholders MOBILISATION involved, but usually there will need to be a lead • Creating a positive environment for change agency with overall responsibility. which encourages local people to seek new There are a vast range of strategies that local opportunities and utilise their resources and development practitioners and planners can 2. NEED TO DEFINE A COMMON THEME OR PURPOSE energy. employ to mobilise the local community for LESD. The choice and application of these strategies Community mobilisation requires a common All three should be considered when designing a will depend on the size of the local community, theme or purpose on which local people can community mobilisation strategy.

International Labour Ofﬁ ce []Ó 148 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.05 COMMUNITY MOBILISATION STRATEGIES

4. INCREASE LOCAL ACCESS TO EXTERNAL 5. FOCUS ON ACTION 7. RECOGNISING, REWARDING AND CELEBRATING RESOURCES LOCAL ACHIEVEMENT AND SUCCESS Community mobilisation should have a strong Just as local resources are to be maximised, a action orientation through the design and As part of the process of creating positive community mobilisation strategy should increase implementation of local strategies. The process environment for change, any community local access to external resources, such as must not become a forum for people to talk about mobilisation process must recognise its funding programmes, external advice, training, their problems only. Instead, it should provide a achievements and the achievements of others and so on. This can be achieved through a means through which local action is formulated, in the community. Achievement may include, process which: implemented and monitored. It is also important for example, the local business that expanded that the results of these actions––no matter how to create new jobs, or the unemployed person • Identifi es appropriate external resources small they may be initially––are recognised and who began her own business, or the chamber of • Creates increased credibility for funding built upon. commerce that established a work experience applications, etc., through greater community scheme. It is also important to ‘keep up the spirits’ unity and broad representation 6. LOCAL OWNERSHIP IS ENHANCED of those involved. • Harnesses collective advocacy and lobbying for support Bureaucratic and political infl uence over the CONCLUSION process must be minimised. These infl uences may Community mobilisation strategies should not be used to achieve the aims of the process, but Local action towards social and economic become dependent on outside support. Instead, ownership and control must remain local. development can lead to many new and positive they should be designed on the understanding Community mobilisation processes should allow changes in an environment where people have that the better organised the local community is, different groups to take specifi c responsibilities. often been frustrated or depressed by the growth the greater chance it has of obtaining external Small committees, for example, may be formed to of poverty and unemployment in their community. support. address particular topics or to mobilise designated The focus of all community mobilisation strategies groups. It is always important to feedback to the should be to nurture and facilitate the energy, community any progress that is being made, such goodwill and commitment that all local people as information, achievement, problems, and new share for improving the quality of life in the area, opportunities. Sometimes regular community and to improve the infl uence the community can meetings are good for this purpose. have with external agencies.

International Labour Ofﬁ ce []Ó 149 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.05 COMMUNITY MOBILISATION STRATEGIES

CROSS-REFERENCE

• Tool 4.05.1, Information Tool: Fundamental rights at work

International Labour Ofﬁ ce []Ó 150 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.01.07 3.06 INFORMATIONACTION TOOL TOOL

THEADVOCACY START ANDAND REPRESENTATIONIMPROVE YOUR BUSINESS IN LOCAL (SIYB) DEVELOPMENT PROGRAM PROCESSES

OBJECTIVEKEYWORDS: Business plan, capacity-building, ADVOCACY advertising, etc) of a “central communication economic growth, entrepreneur, institution- idea” using the most effective and effi cient way Thisbuilding, action management, tool provides marketing, information micro that willand DEFINITIONS to reach the consumer. It requires a thorough assistsmall enterprises,practitioners trade to be union, more effectivetraining advocates understanding of the consumer or audience. and representatives of their interest groups. It 1. Value-neutral advocacy: Advocacy is the is meant for all local development practitioners pursuit of infl uencing outcomes - including OBJECTIVES – local government offi cials, community leaders, public policy and resources allocation decision trade union leaders, workers’ organisations, private within political, economic, and social systems Social Justice Advocacy has purposeful results: business sector, NGOs, etc. and institutions - that directly affect people’s lives. 1. To enable social justice advocates gain access Specifi cally, this tool: 2. Social justice advocacy: Advocacy consist and voice in the decision making of relevant of organised effort and actions - based on institutions; • Defi nes “social justice advocacy” – its overall the reality of “what is”- to infl uence public 2. To change the power relationships within and objectives and processes attitudes and to enact and implement laws among these institutions, thereby changing the • Lists the necessary knowledge, skills, and and policies that will make real a vision of institutions themselves; and attitudes of a good advocate “what should be” – a just, equitable society 3. To bring a clear improvement in people’s lives. • Suggests tactics and venues for advocacy in the centred on the dignity of the individual. These LGU efforts draw their strength from the people PROCESS to who advocates and their organisations are accountable to. Advocacy efforts are done mainly to address 3. Social Marketing: This term originated from issues concerning the power structure. It involves the advertising industry but some of its mainstreaming within society. Therefore, it principles and techniques apply to advocacy. It necessitates planned, conscious and sustained emphasises integrated communication (public efforts or series of actions. These actions are relations, interactive, in-store, direct marketing aimed at infl uencing the government for a specifi c

International Labour Ofﬁ ce []Ó 151 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.06 ADVOCACY AND REPRESENTATION IN LOCAL DEVELOPMENT PROCESSES

Policy Change

It is necessary to set realistic expectations. It ADVOCATE RESOURCES TOOLS STRATEGIES POLICY ACTORS • Rewards is also necessary to establish your milestones • Expertise • Personal Lobby • Inﬂ uence the agenda • Responsible POLICY • Legitimacy • Advertising & • Inﬂ uence the evaluation • Responsive CHANGE because advocacy involves a long process. Once • Prestige Promo • Coalition building • Practical policy change is achieved, it is necessary that it is • Coercion • Mass Action • Coercion • Fearful translated to actual operations in terms of policy implementation, organisations and budget.

project, program and/or to benefi t specifi c groups Policy Actors WHAT MAKES A GOOD ADVOCATE? of individuals. This requires understanding of policies and the policy process. Policy players who are instrumental in changing Knowledge the policy are necessary. This entails dealing Advocate Resources with them as a collective body while establishing Advocates need to know: relations with the potential allies and turning a. Rewards – success in the change process the non-allies into allies. There is a need to look 1. The system. Where decisions are made, b. Expertise – knowledge, skills and experience. at their motivations for policy change because who makes them, and how they are made c. Legitimacy and Prestige – credibility and there are always opposing sectoral interests and – formally and informally, at the local, national, integrity of advocates concerns. A background check is necessary to regional and international levels. fi nd out why people engaged in policy behave the 2. Power relationships within a system and what Tools and Strategies way they do. The ideal situation is to have allies in infl uences decision-makers and decision- government. making systems. For effective advocacy, the organisation must use • Civil society a mix of tools and strategies that are concrete and The power base of every issue and leader are its • The media – local, national and applicable. constituencies. The bottom line of every action international is responsiveness and relevance to one’s own • The state constituencies. • The market – local businesses (and multinational corporations)

International Labour Ofﬁ ce []Ó 152 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.06 ADVOCACY AND REPRESENTATION IN LOCAL DEVELOPMENT PROCESSES

3. Who the stakeholders are and on which issues 8. Organise a campaign, including grassroots Attitudes they agree or confl ict. mobilisation, strategy development, and taking 4. Entry points to decision-making systems, how action in ways that are appropriate for one’s 1. Hope, a belief that change is possible despite to intervene in the policy and budget process, context and the risks that people face. overwhelming odds. and how to counter corruption. 9. Build relationships – with obvious and unlikely 2. Willingness and confi dence to challenge allies, within and outside of decision-making entrenched, institutionalised power and the Skills systems at all levels – that can survive powerful, despite possible risks or threats. disagreement and allow working with former 3. Non-discrimination, both a belief and practice Advocates need to be able to: adversaries. of equality and inclusion, regardless of one’s 10. Work in coalitions and other collaborative race, class, caste, gender, sexual orientation, 1. Work with people who are different from them. relationships. Mediate differences. religion, ethnicity, disability, credentials, or 2. Listen to one’s members and constituents, 11. Generate pressure through grassroots other differences. allies, and opponents. mobilising and organising. Infl uence 4. Belief in democratic values and processes. 3. Learn from experience and exchange with international decision-making systems by Belief in people’s capacity to make their own others, in formal and informal ways. generating domestic pressures. decisions and, at times, mistakes. Recognition 4. Stay grounded in reality – “what is” – while 12. Negotiate and drive a hard bargain. that there are different roles for different maintaining a vision of what you want, what is 13. Tell stories that inspire and motivate others. people at different times. possible or “should be”, and how to get there. 14. Create, gather, analyse, synthesise and 5. Respect for the experiences and points-of- 5. Analyse who has a stake in an issue – friends, disseminate complex and diverse information, view of others. Willingness to listen attentively, foes, and the undecided – what motivates including data, statistics and anecdotes. and to disagree without personalising them, the positions they take, and possible 15. Communicate effectively. Make public differences. common ground or ways to defuse opposition. argument and messages understandable and 6. Understanding the risks that people take. 6. Analyse opportunities to act, when to persuasive. 7. Ability to express warmth, anger, negotiate, when to compromise, and when to 16. write and edit quickly to take advantage of disappointment, humour and playfulness in hold fi rm. sudden opportunities. ways that strengthen a team effort. 7. Adapt to new situations. Seize the moment 17. Build a team. 8. Commitment, patience, and stamina to and try something new, despite inevitable 18. Raise money and build a solid fi nancial base engage in a long struggle to achieve and tensions or uncertainty. for an organisation. maintain a signifi cant change.

International Labour Ofﬁ ce []Ó 153 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.06 ADVOCACY AND REPRESENTATION IN LOCAL DEVELOPMENT PROCESSES

9. Willingness to be transparent – open – with 3. Local Chief Executives – From Punong PILLARS colleagues, including sharing critical feedback Barangay to Mayor to Governor, these offi cers in a supportive and safe environment. are in charge of planning development 1. Logos – message: arguments, facts 10. Sharing responsibilities, obligations, and programs and projects for appropriation and 2. Ethos – messenger, speaker, traits of speaker, accountability within a community of approval by the legislative bodies. eloquence advocates. Balance modesty and being in 4. Regional Development Council/Regional Line 3. Pathos – recipient, audience, mood the background with confi dence and being Agencies – These representatives of national 4. Agora – context, setting, television, medium, assertive. government departments also design and huge crowd, small meeting. 11. Celebration of both substantive victories, like implement programs and projects that affect winning a new law, and “process” victories, local communities. PRINCIPLES/TECHNIQUES like an organisation’s members meeting with elected offi cials or journalists. BASICS OF PERSUASION 1. Storytelling. It is a message delivered to the audience by way of a narration of an incident Immediate advocacy context An important aspect of advocacy work involves or an event. Storytelling is effective because the use of language to infl uence the attitudes, it allows the audience to participate in the In local development, the following bodies provide preferences, and actions of other people. If the formulation of the message through the a venue/target for advocacy: objective of advocacy is to infl uence decisions, images he or she creates in his or her own advocates need to convince other people to mind as the story is told. Without being fully 1. Local Special Bodies - (LSBs) include Local support the position on issues, problems and aware of it (which is perhaps why it is most Development Councils, Local Bids and policies. effective), the audience is in fact actively Awards Committees, Local Health Boards, participating in the unfolding of the story. The Local School Boards, Local Peace and Order DEFINITION audience is focused, but may not be the case Councils, and People’s Law Enforcement if the message is delivered by way of facts and Boards. Persuasion is an attempt to evoke a change in statistics. 2. Sanggunian Barangay/Bayan/Panglungsod/ attitude and/or behaviour. 2. Liking/Association. A well-liked person or one Panlalawigan – These are legislative bodies at who others can easily associate with, has a different levels of local government. better chance of getting others to see things his way compared to one who is detested or

International Labour Ofﬁ ce []Ó 154 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.06 ADVOCACY AND REPRESENTATION IN LOCAL DEVELOPMENT PROCESSES

disliked. This principle has been termed ‘the pregnancy cannot hope to achieve the same his or her desire to get the message across, bedrock of persuasion’. Being liked at the degree of authority and credibility, as would an he or she fails to take into account the mood, onset is a great icebreaker. It can be likened OB gynaecologist. disposition and the thinking of the audience. to some extent to the war being won without 5. Repetition. Frightening though it may sound, The tendency to centre on the message having to fi re a single shot. The target is it has been said that a lie told a thousand and to ignore the message recipient can be disarmed by charm or by association even times becomes the truth. For a public that avoided but it requires a degree of self-control before the message is conveyed. As the is preoccupied with, among other things, and discipline that needs honing. One cannot saying goes, a smile goes a long way. the daily rigors of having to eke a living, a conquer the world if he or she cannot begin 3. Humour. People feel good when they get a message has to be repeated often before it by conquering him/herself. To place oneself in good laugh. Laughter relaxes the individual is noticed and eventually absorbed by the the shoes of another, to listen, to be conscious or the audience. It lowers people’s defences audience. Technology has made it possible of feedback and to empathise are traits that and creates an opening for a message to be for people to attend to a thousand different are acquired only with a conscious effort to do conveyed more effectively. When you laugh things at the same time. Thus to be able to so. and the whole world laughs with you, there capture the imagination of the public that is 8. Conformity and Social Proof. As a general very well can be a whole world ready to be too busy to listen, repetition is necessary. rule, nobody wants to stick out like a sore convinced as well. 6. Simplicity and Clarity. For the same reason thumb. To do so would expose an individual 4. Authority. The opinion and views of an expert that people are too preoccupied with their to ridicule and contempt, an experience that on a given subject is more likely to be believed personal concerns to be able to pay attention is unwelcome to anyone. The possibility than the opinion or views of the man-on- to messages, it would help greatly that the of being scorned and rejected by others is the street. By invoking authority on a given message be simple and clear. Faced with a stimulus for an individual to conform or act in subject, an expert can succeed in convincing message that is complicated and confusing, a certain way. Societal dictates have been a those who are not knowledgeable about a the audience knee-jerk response would be very powerful tool of persuasion, sometimes given issue to accept their views. Lawyers, to say that there are enough complications to the detriment of both the group and the fi nancial advisers and preachers for example to deal with to have to endure even more individual. are more likely to persuade others about and with that, the message is thrown out the 9. Know the Audience. Identifying the audience their views in the area of their expertise. window. can be likened to the process of targeting On the other hand, a lawyer speaking on 7. Role Playing: Listening, Feedback and Empathy. the market. To do so would save a great the importance of the fi rst three months of A common mistake of the advocate is that in deal of time and effort knowing the type of

International Labour Ofﬁ ce []Ó 155 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.06 ADVOCACY AND REPRESENTATION IN LOCAL DEVELOPMENT PROCESSES

audience one is faced serves as the basis for it as a positive. This is quite effective as this medium. In contrast with ﬁ ery and the correct persuasion approach. Without it engages the audience and allows the bombastic message delivery that may be any information about the audience, one audience to rethink the point in a different inappropriate. can be said to be groping in the dark. One light. The twist captures the imagination of 16. Small Steps Principle. They say that an entire can actually tailor his or her message on the the audience. elephant can be eaten provided it is done basis of the audience one is faced with at the 13. Counter-intuitive. This technique provides slowly and in bite size pieces. One cannot moment. concessions to the audience or the party to hope to persuade another to eat an elephant 10. Reciprocation. The audience is made to feel be convinced that allows him to warm up to whole. This is one way to describe the small obliged or compelled to reciprocate acts of the persuader. The line “I am not brilliant”, steps principle wherein it may be easier to kindness or generosity they encounter from “I don’t have the answers” or “I am just a have an individual commit to small things at the persuader. This includes the giving of simple man” is a concession that is given but a moderate pace than it is to have him or her concessions in order to gain some compulsion in actuality is a good technique to appear less commit immediately to a large matter. The on the part of the audience to reciprocate. intimidating and more open and reasonable. initial reluctance is overcome by the fact that 11. Scarcity. It has been said that one realises 14. Know Thy Self. To be able to improve in one’s what is being asked of him/her is not exactly a the importance of something when it is gone persuasion skills, one must know where one big thing (not yet at least). or it is about to go. Hence, there is a sudden stands in terms of one’s weaknesses and 17. Surprise Principle. The element of surprise demand for a particular thing if it is on the strengths. The individual must take stock can have both a moving and powerful impact verge of disappearing or becoming scarce. of his skills (or the lack of it) so as to know on the audience. His is true particularly in Less can be more in given situations. The what to concentrate on in terms of skills advertising campaigns that use this to make scarcity or the rarity of the thing can persuade improvement. To be able to reach a desired a forceful conveyance. The jolt awakens the many to want it and search for it. Being destination requires knowledge of one’s audience into internalising the theme that over exposed, on the other hand, can make current disposition. is being conveyed such as the need to stop persons such actors, for example, less in 15. Personalising. Technological advancement in smoking immediately. demand by the public. the era of television has made this persuasion 18. Cognitive Dissonance. This occurs when an 12. Turning Negatives into Positives (and principle more important. Because TV inconsistency (an unacceptable act) in our Vice Versa). This technique involves the is now available even in our own homes actions leads us to convince ourselves of the acknowledgement of certain negative and bedrooms, there is a certain degree of validity of this inconsistency. It is our way of assertions but turning it around and explaining intimacy that is appropriate when one uses justifying an act and convincing ourselves of

International Labour Ofﬁ ce []Ó 156 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.06 ADVOCACY AND REPRESENTATION IN LOCAL DEVELOPMENT PROCESSES

its validity. Hence, we are more convinced by from the advocate’s organisation. The telephone dialogue may be used to induce mutual change others if they play on this dissonance. or cell phone can be used or meriendas, lunches, among those who participate. Its basic assumption 19. Non-Verbal Communication. Actions speak etc. can be organised to communicate with media is that the stability or rigidity of a person’s point of louder than words. A classic American people. view is due to his/her refusal to listen to alternative example of this would be the Presidential points of view because they are too threatening, debate between Clinton and Bush, wherein More formal press conferences can be organised e.g., proponents feel threatened by NGOs and Bush was caught looking at his watch during for more urgent or important issues. The most POs because they think NGOs and POs would the debate conveying the message that he important things to remember in working with the want to put a project to a stop; on the other hand, was perhaps uninterested or bored or both. media are to be sure about your objective, clear NGOs and POs feel threatened by the project Eye focus, a ﬁ rm handshake, a smile. Non- and complete but concise with your message, and because it will cause damage to the community. verbal communication is vital in persuasion. to be accurate with your data and information. To reduce this threat, and to create good 20. Knowing the Enemy/the Competition. This Otherwise, you will lose your credibility. conditions for authentic listening and change, the is very important if one is to persuade the participants should share common experience audience of the superiority or the correctness 2. Rally/Picket with mutual problem to stimulate their attention, of his or her product or message. To identify interest, uncertainty, and desire to search for both the strengths and weaknesses of the This involves mass mobilisation of constituents, better understanding. And then you should follow enemy is a basic input in persuasion. “Know usually to demonstrate mass support for an issue as closely as possible the three guidelines for your enemy” is the basic tenet if one is to and to make the broader public aware of the effective dialogue: emerge victorious in Sun Tzu’s “The Art of issue. Creative means are needed to maintain War”. participation as these activities are physically and 1. Satisfy the other participant/s that you emotionally demanding understand his/her point of view by re-stating SOME TOOLS USED IN POLICY PERSUASION it for him/her as clearly as possible in your 3. Dialogue own words; 1. Working with the Media 2. Find the condition under which you would This is a discussion with a key individual who accept the other participant’s point of view as This can be as simple as feeding persons from could be instrumental in instituting change or valid; and, the print and broadcast (radio and TV) media with an inﬂ uential person who could sway the key 3. Find where the other participant’s point of verbal or written data, opinions, or statements individual about the issue or problem. The view is similar to your point of view.

International Labour Ofﬁ ce []Ó 157 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 3.06 ADVOCACY AND REPRESENTATION IN LOCAL DEVELOPMENT PROCESSES

4. Public Hearing ACKNOWLEDGMENTS RELEVANT RESOURCES

This is usually a meeting called by public ofﬁ cials • This tool was taken from the Successor • Manual of the Successor Generation Project, to consult constituencies about a project or Generation Project of CO Multiversity and CO Multiversity and CODE-NGO, 2003. a decision to be made. It is important to pay CODE-NGO. attention to how we communicate our positions to ensure that public consultations and hearings do not become a boxing arena for “pro” and anti “positions”. The guidelines for a dialogue could be used here.

International Labour Ofﬁ ce []Ó 158 Ô CONTENTS SEARCH PRINT HELP EXIT 160 Section One STRENGTHENING LOCAL ECONOMIC GROWTH

182 Section Two CREATING MORE JOBS (EMPLOYMENT OPPORTUNTIES)

215 Section Three MAKING LOCAL DEVELOPMENT BENEFIT THE POOR

315 Section Four IMPROVING THE QUALITY AND CONDITIONS OF WORK AND LIFE

353 Section Five PROMOTING EQUALITY, RIGHTS AND VOICE

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.07 INFORMATION TOOL

THEPART START FOUR ANDSECTION IMPROVE ONE: YOUR STRENGTHENING BUSINESS (SIYB) LOCAL PROGRAM ECONOMIC GROWTH

INTRODUCTIONKEYWORDS: Business plan, capacity-building, Section One, Part 4 of this Resource Kit includes economic growth, entrepreneur, institution- action tools which suggest strategies for making Makingbuilding, local management, economies marketing, grow or stimulating micro and local local economies grow, as well as case studies economicsmall enterprises, transformation trade union, is a major training goal and which describe the application of these strategies. challenge for all local governments and local It also includes information on the role of leaders. cooperatives in local economies,

International Labour Ofﬁ ce []Ó 161 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.01.01 INFORMATIONACTION TOOL TOOL

THESTRATEGIES START AND FOR IMPROVE MAKING YOURYOUR LOCALBUSINESS ECONOMY (SIYB) GROW PROGRAM

OVERVIEWKEYWORDS: Business plan, capacity-building, STIMULATE NEW IDEAS AND • Organisation of a competition through local economic growth, entrepreneur, institution- DEVELOPMENT POSSIBILITIES newspapers for the best job creation idea. Therebuilding, is a management, wide variety of marketing, strategies microthat LGUs and • Publication of a weekly “New Ideas” column andsmall local enterprises, communities trade can union, implement training to promote Local communities can undertake initiatives in the local newspaper or producing a similar greater employment and economic opportunities. that generate community interest in economic program on local radio. There is no single approach or framework that development and stimulate new ideas and • Create local discussion groups that focus on provides all the answers. Instead, as a local possibilities for improving the local economy and local job creation issues. development planner or practitioner, you will need job opportunities. These initiatives motivate the • Organise tours to other communities to observe to consider a range of approaches and use those wider community to become involved in planning developments, interesting initiatives and new that can be applied to your community. for local development and contributing ideas and businesses. time to practical projects. • Monitor new creative business ideas and OBJECTIVE franchise concepts emerging nationally and Some examples of these initiatives: internationally, and publicise these. This tool describes a range of practical strategies • Organise idea generation workshops in schools that LGUs and local communities can employ to • Community planning events that enable local and community centres. develop their economies. residents to identify strengths, weaknesses • Create an “Ideas Bank” in the LGU or encourage and a shared vision for the future of their local community and business organizations to The following strategies provide a framework for community. This may include idea generation do so. identifying and formulating local actions that can workshops to engage local people in processes be done to enhance local economic activities and that produce new local development ideas. create new job opportunities: • Community fairs and celebrations that bring the community together to share and enjoy its activities and achievements.

International Labour Ofﬁ ce []Ó 162 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

IMPROVE THE PERFORMANCE OF LOCAL and the quality of the workforce within a specialised centre serving the needs of farmers BUSINESSES business. The ILO has an “Improve Your and agricultural businesses. It includes Business” (IYB) training package that can policies to encourage businesses to specialise Local communities can undertake initiatives that help in this aspect. (See Tool 4.02.07: The in personal services, professional services, improve the performance and profi tability of local Start and Improve Your Business [SIYB] wholesale and warehousing enterprises to businesses. Actions can be designed to help Program and Tool 2.04: Value Chain Analysis.) locate and expand in the community. existing businesses perform better, expand their Methods for doing this include: (i) training market share, increase their productivity and programmes, (ii) identifying and mobilising Some specifi c suggestions: profi tability, and thus, enhance their capacity to capital resources, and (iii) encouraging the create jobs. adoption of new technology. Management 1. Encourage product diversifi cation training and employee skill training help obtain • Campaign to examine the development Some overall examples of these initiatives: more productivity for resources used. of value-added products and product diversifi cation (turning existing local 1. Business and industry retention and expansion: 3. Commercial and retail development or products into consumer ready goods). These initiatives require community leaders redevelopment: These initiatives involve • Co-ordinate group marketing exercises to work closely with existing local businesses targeting the community to become a strong (especially relevant for the craft sector). to fi nd out what conditions are necessary retail centre for the surrounding rural area, or • Provide information on alternative and for these businesses to remain viable in the possibly a specialised retail centre. Improving specialty crops and vegetables for community and to provide them with the the business sector’s ability to capture money farmers. required support. In addition to the fact that is a must. This can be achieved by identifying • Survey local resident’s attitudes towards most new jobs come from existing businesses areas that need improvement, such as business products. This can provide (rather than new businesses), it is often easier • Providing outstanding personal service, existing fi rms with confi dence to alter or and less expensive to keep existing businesses • Merchandising and display practices, diversify their products or services. into a community. • Merchandise lines, • Customer relations and more. 2. Promote new technologies and methods 2. Improving the effi ciency of existing fi rms: • Provide information on new technology Improved effi ciency can be accomplished by 4. Agricultural business opportunities: These and methods in various business sectors. strengthening the management capabilities initiatives focus on the community becoming a

International Labour Ofﬁ ce []Ó 163 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

3. Recognise and encourage business 5. Business support networks 8. Assist local businesses to stay in the performance • Creation and strengthening of business community • Sponsor local business appreciation awards support networks such as business sector • Use retired management people as and events. associations, “Business After Five Clubs” volunteers/consultants to help maintain and (where business people visit different improve local businesses. 4. Marketing assistance enterprises and resource agencies to learn • Systematic visits to all local businesses to • Introduce mail-order marketing for local new ideas, resources, and processes), survey and collate relevant information on products. “Entrepreneurs Breakfast Club”, mutual their production needs, problems, labour • Establish local arts and crafts counters support networks for sharing resources and requirements, concerns and plans; could or shelves in local motels, hotels and expertise, etc. involve retired executives as volunteers restaurants. to collect as well as share information on • Franchise good local ideas to other 6. Expand access to fi nancial capital government programs of assistance, etc. communities. • Establish a revolving loan fund to provide • Encourage more active involvement by local • Regularly monitor government purchasing direct loan guarantees and other necessary government in economic planning and patterns and needs to see what could be fi nancial assistance to qualifi ed businesses. action, choosing to buy locally made goods, supplied locally. providing expertise and space in unused • Brokerage service for exporting overseas. 7. Promotional activities buildings, applying for grants to develop • Direct market approaches such as farmers • Organise regular special events such as infrastructures, appointing specialist markets, colourful roadside stalls, pick your monthly market, swap-meet, fun days, employment offi cers, changing attitudes own facilities, etc. specialist conferences, workshops, of key personnel (e.g., Planning and • Use special rate levies on the business exhibitions Development Offi cers, Public Employment community to fund a marketing and public • Sponsor special sporting events. Service Offi cers [PESO], etc.) from being relations campaign. • Production and publication of Profi le Sheets reactive to proactive. • Organise retail improvement seminar and newspaper stories on local crafts followed up by individual on site people, identities, unique businesses, etc. consultations. • Package the unique features of the community as a theme or an event.

International Labour Ofﬁ ce []Ó 164 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

PROMOTE ENTREPRENEURSHIP AND Business Competition’, a youth enterprise • Organise workshops on the establishment THE ESTABLISHMENT OF NEW LOCAL centre, etc. of new home-based industries in such ENTERPRISES • Organise a competition for new enterprising areas as bed and breakfast provision, food ideas. preparation, craft production, etc. Local communities can undertake initiatives to • Coordinate publicity regarding success • Introduce new art/craft areas using local encourage the formation of new businesses and stories and making available more widely of natural materials. an enterprising spirit within a community. These “How to...” information. initiatives include a range of support services to • Organise regular idea generation workshops 3. Provide a local “One Stop Shop” where people help potential new entrepreneurs research and and entrepreneurship training programs. can gain information and assistance about develop a viable business idea and obtain access The ILO has a “Generate Your Business establishing a business to the appropriate skills and resources. Idea/Start Your Business” (GYB/SYB) training package that may be helpful. (See 4. Workspaces Increasingly, small communities are discovering Tool 4.02.07) • Develop local industrial or commercial the new business potential in alternative tourism, workspace small specialist manufacturing, information 2. Stimulate new business ideas • Provide a regular updated register of technology sectors, and alternative or specialty • Research and promote interesting business available workspace areas. agricultural production. ideas from outside the community such as looking at national newspapers and 5. Facilitate extension of fi nancial support Some examples of these initiatives: entrepreneur-focused magazines. • Encourage local loan sources for new • Explore new trends and their potential businesses such as local credit unions. 1. Cultivate the entrepreneurial spirit business opportunities e.g. women in • Establish a local investment or microfi nance • Provide an integrated small business the workforce; growing proportion of fund. advisory service that supports local people senior citizens: more awareness of fi tness • Develop an ‘Angel’ network involving retired so they can develop an idea into a business and health, growing appreciation of the or semi-retired business people who are reality. environment; “green tourism”; experiential willing to provide venture capital for a local • Establish projects that foster an enterprising holidays, etc. project in exchange for the excitement of spirit among local youth such as the ‘Youth • Develop a series of rural specialty shops. being involved in a new local enterprise.

International Labour Ofﬁ ce []Ó 165 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

• Provide informal group guarantee Local communities can undertake initiatives to 3. Promotional activities arrangements where a group of people “plug the leaks” from the local economy. • Plan “Buy Local” campaigns to counter collectively take out a small loan and agree the reasons people give for shopping out to guarantee each other. Some examples of these initiatives: of town. Such reasons may include higher • Support existing fi nancial institutions prices, better selection, inconvenience, etc. establishing separate accounts dedicated to 1. Improve marketing of local products • Coordinate monthly and annual business local economic development. • Establish matchmaker program to identify awards for excellence - targeting various products and services imported from sectors. 6. Encourage retired business people to settle in outside the area that could be provided by the community and use their experience and local businesses. 4. Retain services within the community talents to help others. • Publication of a local business service • Apply “local administration” arrangements directory. to LGU program and projects instead PLUG THE LEAKS IN THE LOCAL ECONOMY • Provide community recognition awards of hiring outside contractors whenever for best employees - the aim is to make possible. See also Tool 4.02.03 on Creating Communities can limit the amount fl owing out customer service more friendly and effi cient. Local Jobs through Employment-Intensive or “leaking” from their local economy. Leaks • Market locally produced goods and services, Infrastructure Programs. occur whenever residents, especially families through business directories, special sales, • Help establish a community-owned of Overseas Filipino Workers (OFWs) spend etc. company to help retain services. at regional shopping centres, invest in out-of- • Provide employee training programs to • Schemes to conserve energy, water, soil, town businesses, spend holidays or their leisure improve the quality of service. and local resources such as old homes time away from home, or pay for services from and buildings with historical or aesthetic fi rms from outside the area. Leaks also snowball 2. Stimulate businesses for local needs value. because if residents travel to buy one item that • Identify local consumer needs and buying • Community recycling and waste separation is not available locally, they tend to buy other habits, and publication of the results. programs. items while they are out of town. Obviously no • Coordinate a door-knock campaign of every • Identify needed services to a community community can keep all the pesos that circulate, resident asking what was needed to keep which are presently unavailable. but it is important that communities improve their them in the community. • Reduce infrastructure costs of local ability to retain as much local income as possible. government - using a reward system for

International Labour Ofﬁ ce []Ó 166 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

employees to suggest improvements to Some examples of these initiatives: Some specifi c suggestions: productivity and cost reduction. 1. Tourism development: These initiatives focus 1. Develop, renovate attraction sites, facilities 5. Recovering lost resources: Some communities on identifying opportunities for developing a • Promote the redevelopment (i.e., have had successful campaigns to contact community event, facility or attraction that restoration) of local heritage areas. former residents. School records may be brings people to the community to spend • Coordinate heritage trail development helpful in identifying and locating “community recreational dollars that may create new jobs. - offering visitors a framework with points of alumni.” Targeted mailings can explain the It will usually incorporate development activities reference. benefi ts of retiring in the home town to former targeted at a specifi c type of tourist such as, for • Use museum exhibits to improve attraction residents approaching retirement age, sell example, the eco-tourist (i.e., the tourist who of buildings and services. corporate executives on locating a branch plant is interested in the environment) or tourists • Promote retirement support services. back home, or encourage young families to who want to learn more about culture and • Renovate unused farm cottages/buildings raise their children in the wholesome home- traditions. for non-farm enterprises and/or attractions. town environment. These can be some of • Attract businesses that encourage people the best contacts for economic development. 2. Attraction of the retirement industry: This to stop, such as a hot bread shop, antique Overseas Filipinos can also be encouraged to strategy emphasises the amenities of life that shop, country gardens, etc. return to their community and invest in a local attract retired people to live in the community. • Promote alternative interpretive forms of business. Retirees in a community mean additional tourism. business activity and should be considered • Survey local residents regarding what ATTRACT NEW VISITORS AND CONSUMERS an industry. The elderly import income to they feel they miss by living in a rural the community, living on prior savings or community, and trying to respond with Local communities can undertake initiatives that investments in the form of social security, practical projects. improve the attraction of the community so others private pensions, stocks, bonds, real estate or • Develop facilities/activities targeting children may wish to live there, retire there, and visit as a savings accounts. They require basic services e.g. special playgrounds, activity books tourist or shop as they pass through. such as groceries, housing and health care, focusing on things to do in the region. and tend to spend income locally. • Develop possible base tourism sites/ products in the area.

International Labour Ofﬁ ce []Ó 167 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

2. Beautifi cation recreational trail, a hand made treasure trail • Develop a systematic signage system for Coordinate town beautifi cation and landscaping featuring quality crafts people. towns by-passed that covers all major - including improvements to town entrances. • Targeted packaging of a community services and shops. publication e.g. ‘Spend a day in...’ brochure, • Form a community “image” committee. 3. Improvements in quality of life incorporating a series of tourist drives, • Regularly publish (in larger urban centre) Make improvements in the quality of life preparation of car rally packages, etc. the benefi ts of moving to one’s community to encourage people to live there, such as • Develop a theme(s) for the town. e.g., comparing housing costs, etc. maintaining or establishing a full range of medical • Prepare and distribute a local promotional • Establish local information centre with services, increasing recreation opportunities, etc. brochure, post cards, maps and T-shirts volunteer ambassadors. • Promote the town’s famous “sons” and 4. Marketing schemes “daughters”. ATTRACT NEW INVESTMENTS AND • Coordinate local tourism marketing initiatives • Fill empty shop windows with local displays, RESOURCES that promote packaged weekends to etc. selected villages across the country. • Creatively use murals on toilet blocks, bus Previously, attracting new business and industries • Organise special market days. stops, playgrounds, public buildings, shops, was usually the fi rst and only strategy community • Stage an annual award, exhibitions, etc. leaders consider for increasing income or attracting entrants from around the country • Promote the “only one in the Philippines” employment. It involves seeking new basic e.g. Wood Carving Annual Award Exhibition. attractions or the unique “lifestyle” of the employers to locate in the community. It could • Coordinate and co-operatively market home- community. be a major employer, but for small communities stay accommodation, local guides, local • Produce local town song/jingle. it would more realistically be small employers. resorts, etc. • Identify and promote specifi c themes or Through this opportunity the employment base • Develop a town strategy to get passing traffi c events based on cultural, historical or of the community is broadened. This involves to stop. natural strengths. bringing in new pesos or dollars for investment, • Promote special features e.g. unique meals/ and new people and ideas to expand the goods 5. Publicity, Information campaigns dishes/drinks, etc. or services exported from the area to bring in • Develop a publication on regional special • Publish regular calendar of local events. additional income. interest trails e.g., fl ower trail, sea coast

International Labour Ofﬁ ce []Ó 168 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

Now there is a growing appreciation that there are • Regularly monitor all government programs 4. Encourage retired people and families of OFWs other effective strategies for small communities and services. to remain in the area rather than move away aside from recruiting compatible new businesses/ • Regularly review available philanthropic • Recreation, housing and home care are all industries. There is a wide range of grants, foundation funds and donor agencies. important business areas. services and new programs that can be monitored • Attract someone with a unique collection to • Remittances and income from investments and attracted which can generate additional establish a permanent museum, exhibition earned by retirees and OFWs are often income, employment and opportunities for locals. centre or display. signifi cant for local purchasing and • Make full use of government employment investment. What can be done: and training schemes. • Lobby for specifi c projects, offi ces, facilities 5. Make the community attractive to new 1. Targeted searches for new businesses and services. businesses • Targeted searches for fi rms that might be • Attract part-time presence of government • Encourage higher enrolment at local most suited to one’s community and its agencies through provision of shared offi ce educational institutions and enhanced future e.g. traditional crafts for a historical facilities. education services and facilities. crafts space, manufacture of period • Develop local industrial, offi ce or furniture for a historical workspace, etc. 3. Attract people who are likely to start new commercial parks, workspaces, buildings. • Targeted searches for fi rms that might be businesses • Design new services and target the interested in a local branch operation or • Encourage former residents with business corporate sector for sponsorship. local franchise. success to “come home” and start a • Identify and target government offi cials • Target professionals to establish businesses, business or invest in ventures started by sympathetic to community development. (especially those with “weekenders” within others. • Develop “one stop” information/service the region) through the provision of shared • Organise business and lifestyle attraction centres that provide an outlet for a range of offi ce space complexes. campaign - attracting people with business government departments and agencies. skills in the area. 2. Targeted hunting for services, new programs 6. Publicity • Study local consumer needs and • Regularly promote the community and its expenditure to identify new services that commercial advantages, such as producing could be attracted. a video or a community fact book.

International Labour Ofﬁ ce []Ó 169 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.01 xxx STRATEGIES FOR MAKINGxxxxxxxx YOUR LOCAL ECONOMY GROW

IMPROVE LOCAL INFRASTRUCTURE CO-OPERATE WITH NEIGHBORS RELEVANT RESOURCES

Local communities can undertake initiatives that Local communities can undertake initiatives that • Rocky Mountain Institute, Take Charge, a improve local infrastructure. Wherever possible, involve collaboration or partnership with other manual for rural economic development, it is essential for Local Government Units to pay LGUs, in particular within their province and Colorado, USA. (http://www.rmi.org) attention to achieving sound and well-maintained region. • The Start and Improve Your Business Program infrastructure. Adequate infrastructure (e.g., water, http://www.ilo.org/dyn/empent/empent.portal?p_ sewer, transportation, and telecommunications) Many communities may have limited resources docid=SIYBHEAD&p_prog=S&p_subprog=BD is necessary to protect public health and the to foster economic development. Clusters of environment, and to support desired social and communities or LGUs could give consideration to CROSS-REFERENCES economic development. forming organisational structures for the purpose of planning and developing co-operative and • Tool 2.03, Assessment Tool: Assessing your complementary economic development activities. local economy Co-operative ventures can provide cost-effective • Tool 4.01.02, Action Tool: Tips for mobilising community services and facilities at levels that private sector investments for local development provide the quality-of-life residents desire. • Tool 4.02.07, Information Tool: The Start and Clusters of communities have opportunity to Improve Your Business (SIYB) Program enhance the political power of the area, and pool • Tool 2.04, Information Tool: Value Chain resources to promote and develop the area. Analysis • Tool 4.02.03, Information Tool: Creating local jobs through employment-intensive infrastructure programs

International Labour Ofﬁ ce []Ó 170 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.01.02 INFORMATIONACTION TOOL TOOL

THETIPS START FOR MOBILISING AND IMPROVE PRIVATE YOUR SECTOR BUSINESS INVESTMENTS (SIYB) PROGRAM FOR LOCAL DEVELOPMENT

OVERVIEWKEYWORDS: Business plan, capacity-building, sacrifi cing the LGU’s strategic development its tight coordination of investments promotion economic growth, entrepreneur, institution- objectives. and approval and its investor-friendly Accordingbuilding, management, to the Galing marketing,Pook Foundation, micro and the role 2. Introduce tax incentives. procedures. ofsmall LGUs enterprises, is “to create trade the union, climate training for economic 3. By itself or through other parties, ensure the 2. Use your province, city, or town’s unique activities, not to substitute for private initiative”. provision of the necessary infrastructure and comparative advantage. Is your location However, if the private sector still does not inputs for economic growth – roads, water, strategic for locating transport terminals? What participate in strategic initiatives after all efforts, electricity, telecommunications, etc. are your natural and cultural tourist attractions? the LGU may have to come in. 4. Facilitate access to needed capital, expertise, What are the endemic biological resources that human resources, and equipment. have commercial value? What crops grow well OBJECTIVE 5. Actively promote investments and market in your locality and not in other places? What linkages. do you have that other LGUs don’t have? Use This action tool provides some practical 6. Maintain peace and order and preserve the these to your advantage. suggestions on how to attract private sector locality’s unique cultural heritage. 3. Identify natural clusters of enterprises in investments for local development. 7. Invest in human resource development and the locality and fi nd appropriate ways to training. support them. Clusters provide opportunities CREATING A CONDUCIVE CLIMATE FOR for suppliers, fi nanciers, marketing, and INVESTMENTS LESSONS FROM LGU EXPERIENCES other service providers. They also facilitate information fl ow and innovation. When Some ways of creating a climate conducive for The following lessons are based on studies of the developed and promoted, they can enhance economic development activities: actual experience of some Philippine LGUs. the prestige of the locality and even the nation. 1. The consistency of policies and the Some examples are the furniture industry 1. Reduce the cost of doing business and the simplifi cation of procedures attract investors of Cebu, the fi ne jewelry of Meycauayan, transaction cost (time, money) required by more than the provision of tax incentives. This Bulacan, the Pili nut industry of Albay, etc. taxation and regulatory functions without is based on the experience of Cebu City with

International Labour Ofﬁ ce []Ó 171 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.01.02 TOOLTIPS No: FOR xxx MOBILISING PRIVATE SECTOR INVESTMENTSxxxxxxxx FOR LOCAL DEVELOPMENT

4. Distinguish between livelihood and growth 5. Position your LGU for economic transformation. ACKNOWLEDGEMENTS enterprises. Develop different strategies This requires a change in mindset in both the for each. Livelihood enterprises are usually elected LGU offi cials and the bureaucracy. The The material is largely based on the book entitled micro, household-based, with limited growth LGU must be more entrepreneurial, customer- Kaban Galing 3: Transforming the Local Economy and employment creation potential. They are oriented, effi cient, facilitative, outward-looking, (2001), Galing Pook Foundation. supported for the purpose of alleviating poverty. and strategic. Microfi nance is usually the main type of service 6. Be clear about the potentials and limits of they need. From among or independent of your development vision and strategy. You CROSS-REFERENCES these are the small to medium-sized growth can’t have it all. Some of your objectives and • Tool 2.03, Assessment Tool: Assessing your enterprises which have greater prospects for targets may confl ict. Environmental and social local economy growth and employment generation. These concerns may be negatively affected by some • Tool 4.01.01, Action Tool: Strategies for making will need more complex services that the LGU economic activities. Be clear and consistent your local economy grow may need to assist them in getting from other from the beginning about your priorities – your government and private agencies. musts and wants. Don’t be too ambitious.

International Labour Ofﬁ ce []Ó 172 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.01.03 INFORMATION TOOL

THE STARTROLE OF AND COOPERATIVES IMPROVE YOUR IN LOCAL BUSINESS DEVELOPMENT (SIYB) PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, Cooperatives can be very large organisations with SIX PRINCIPLES OF COOPERATIVE economic growth, entrepreneur, institution- thousands of members. They can be national or BEHAVIOUR Thisbuilding, information management, tool describes marketing, the waysmicro and even international agencies. cooperativessmall enterprises, can help trade local union, economies training grow. However, it is the local cooperative that has most The International Co-operative Alliance has set The benefi ts of cooperative development will be relevance to local development in the Philippines. down six principles as guidelines for accepted highlighted along side some of the concerns or cooperative behaviour: issues to watch. Cooperatives are important because they: • Promote economic fairness by ensuring 1. Open and voluntary membership equal access to markets and services for 2. Democratic control WHAT ARE COOPERATIVES OR COOPS? their members and membership is open and 3. Limited interest on shares voluntary. 4. Return of surplus (profi ts) to members Cooperatives are associations of people who join • Contribute both directly and indirectly to the 5. Cooperative education together to meet their common economic, social eradication of poverty. They help those who are 6. Cooperation among cooperatives or cultural needs, jointly owned and democratically poor to escape from poverty through self-help controlled. There are more than 800 million efforts, and protect those who are at risk of TYPES OF COOPERATIVES women and men members of cooperatives around becoming poor. the world, and an additional 100 million non- • Help improve the living and working conditions • Marketing cooperatives: These coops provide a members work as employees in cooperatives. of women and men. mechanism for farmers and other producers to Because the people who use their services own • Make essential infrastructure and services promote and sell their produce cooperatives, the decisions taken by cooperatives available in areas neglected by the state and • Multi-purpose cooperatives: Multi-purpose balance the need for profi tability with the wider investor-driven enterprises. cooperatives provide new services and extended interests of the community. networks in rural areas • Local development cooperatives: These grassroots cooperatives promote members’ education and help disadvantaged groups

International Labour Ofﬁ ce []Ó 173 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.03 xxx THE ROLE OF COOPERATIVESxxxxxxxx IN LOCAL DEVELOPMENT

• Service cooperatives: These organisations 1. Provide greater market competition • Enhance the coverage and effectiveness of provide services to the local community (e.g., 2. Provide greater economies of scale social protection by providing the socially jeepney, tricycle, catering services) 3. Expand returns excluded with basic social services • Producer cooperatives: The coops include fruit 4. Can be used to develop skills • Strengthen tripartism and social dialogue by growers, rice and sugar cane growers, as well 5. Can teach people about participation and defending the interests of the rural poor and as food processing enterprises. democracy unprotected workers • Worker cooperatives: These cooperatives are 6. Can be a cost-effective way of providing new owned and managed by their workers local services COOPERATIVES PROMOTE LOCAL • Financial cooperatives: These include credit 7. Can be a mechanism for maintaining services DEVELOPMENT IN FOUR MAIN WAYS unions and other kinds of cooperative microthat might otherwise be lost fi nance agencies 8. Provide a mechanism for the promotion of 1. BY PROMOTING DECENT EMPLOYMENT social equity (e.g., by involving disadvantaged Grassroots cooperatives emphasise the role people) Cooperatives can become key actors in the of cooperatives as self-help organisations at creation of local quality employment in various a local level, controlled by their members. HOW COOPERATIVES ADVANCE DECENT fi elds: in some cases, enterprises have become Many concentrate on single-sector activities, WORK the main local employer. Cooperative enterprises requiring simple management skills. Some provide goods and services required by local avoid incorporation (and government control) by Cooperatives have the potential to advance decent customers, or by customers beyond the registering as pre-cooperatives or associations. work in local communities because they: boundaries of the local community. To do this, Mostly, the inspiration comes from local cooperative enterprises must employ people. populations, who often adopt traditions of self- • Promote fundamental principles and rights at Sometime, cooperatives have used labour- help, such as the savings clubs. work by encouraging freedom of association intensive techniques to create more local jobs. and work place democracy BENEFITS FROM WELL-FUNCTIONING • Create greater opportunities for women and 2. BY PROMOTING SOCIAL NETWORKS AND COOPERATIVES men to secure decent employment and CAPITAL income by enabling their members to combine There are at least eight kinds of benefi ts that resources, skills and talents Coops have an important economic function, but should result when cooperatives function well: they also have a unique social function. Coops can

International Labour Ofﬁ ce []Ó 174 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.03 xxx THE ROLE OF COOPERATIVESxxxxxxxx IN LOCAL DEVELOPMENT

be used to build or strengthen social networks. sharing, have strengthened trust in representative forces in small scale cooperatives can provide They encourage local people to work together. democracy and have developed a sense of them with the economic, social and political belonging within the community. Thus, it is leverage they need to break out of the vicious 3. BY STRENGTHENING PARTICIPATION AND LOCAL not rare to observe how cities become highly circle of poverty and social exclusion. DEMOCRACY committed to partnerships between local authorities and other local development actors. For micro entrepreneurs: Cooperatives can be Cooperatives can be used to create strong ties set up by a group of enterprises or by individual among different groups in the local community. COOPERATIVES AS POTENTIAL VEHICLES entrepreneurs wishing to benefi t from shared The manner in which these ties are created and FOR EMPOWERMENT services, cheaper goods, easier access to markets the general behaviour of the communities result or higher prices for their products. But what they from an internal characteristic of cooperatives, Cooperatives are potential vehicles for all have in common is that, as a group, members namely internal democracy. The structure of coops empowerment due to the sheer number of are able to create economies of scale and increase creates an in-house arena for training participants cooperatives that exist across the globe and their infl uence and bargaining power. Cooperatives in democracy. the enormous number of women and men that provide the setting for collective problem-solving they represent. Empowerment has always been and the articulation of strategic and basic needs. 4. BY FORGING PARTNERSHIPS BETWEEN LGUS fundamental to the cooperative idea, where people AND OTHER DEVELOPMENT ACTORS get together to achieve goals that they would not For poor disadvantaged groups: As cooperatives be able to achieve on their own. The members have both economic and social objectives and Cooperatives can be used to build partnerships themselves decide the goals. are based on values of solidarity, equality and in the local community. One important kind of caring for others, they are able to play a strong partnership is between the LGU and coops. For women: Since cooperatives are organised advocacy role and provide a voice for vulnerable In a representative democracy such as the on the principle of one person - one vote, the and disadvantaged groups of society. Moreover, Philippines, local elected authorities have a cooperative form of enterprise provides women the support and mutual encouragement that a clear mandate from voters and are accountable with the opportunity of participating on equal group of entrepreneurs can give each other can to them. Experiences in several countries and terms with men. In many developing countries also be crucial in helping to maintain or boost their territories show that dialogue and the existence women work individually, often isolated, in the self-confi dence. of mechanisms of information, consultation, informal economy, operating at a low level of co-programming and, in some cases, power activity and reaping marginal income. Joining

International Labour Ofﬁ ce []Ó 175 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.03 xxx THE ROLE OF COOPERATIVESxxxxxxxx IN LOCAL DEVELOPMENT

EXAMPLES OF COOPERATIVES IN THE from the ranks of the unemployed and workers members undertake the work while the polishing PHILIPPINES from the informal economy - now receive above process is attended to by the visually impaired. average minimum wage inclusive of additional 1. KAAKBAY ENTREPRENEUR-WORKERS benefi ts agreed upon by the worker-members. In BBMC also has a bag production unit in which COOPERATIVE: ESTABLISHING BETTER the meantime, the ILO has helped in replicating its deaf-mute worker-members are in charge. For CONDITIONS OF WORK this cooperative in other areas of the country to the mentally challenged worker-members, the strengthen the workers’ cooperative and increase cooperative runs a computer centre where basic The Kaakbay Entrepreneur-Workers Cooperative in the number of workers benefi ted. computer services are provided to students and Quezon City, Philippines is a workers’ cooperative other people in the community. engaged in the manufacture of fi ling devices such 2. BIGAY-BUHAY MULTIPURPOSE COOPERATIVE: as binders, folders and box organisers. It was PROVIDING SELF-EMPLOYMENT FOR PEOPLE Other than demonstrating that the people with organised in May 1998 by 16 worker-members WITH DISABILITIES disabilities can be productive members of society, who sought to improve their conditions of work. the founders of BBMC also sought to establish a Many of them came from an investors-owned fi rm Bigay-Buhay Multipurpose Cooperative, or BBMC different working arrangement for disabled people. manufacturing the same products. for short, is a workers’ cooperative primarily In a developing country like the Philippines where among people with disabilities. It was organised many establishments and facilities do not provide They started with a working capital of less than in 1991 with a vision of enabling disabled people a working environment conducive for disabled US $3,000 and monthly sales of US $6,000. They to become economically productive rather than people, they found self-employment and the began with borrowed equipment and salaries mere benefi ciaries of welfare services from the creation of specifi c work places/ workshops for below minimum wage. By the second year of their Government and other civil society organisations. people with disabilities to be more effective than operation, they generated substantial profi ts even The name of the cooperative literally means, “give employment in regular businesses. This solves to as they had adjusted their wages to conform to the life” which is equated to independent living by a large extent the mobility problems particularly of minimum wage. By the third year of operation, disabled people through the provision of work. orthopaedically- and visually- impaired persons. the cooperative reached 40 regular worker- The concept is being propagated in other areas of members, 10 probationary worker-members BBMC’s businesses are adapted to the various the Philippines to reach out to a greater number of and monthly sales averaging USD20,000. The disabilities of its members. It has a carpentry disabled people. The estimate is that 10% of the worker-members - whose additional number came workshop producing mainly desks, tables and population - roughly eight million - has some form chairs. Its orthopaedically-impaired worker- of disability.

International Labour Ofﬁ ce []Ó 176 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.03 xxx THE ROLE OF COOPERATIVESxxxxxxxx IN LOCAL DEVELOPMENT

RELEVANT RESOURCES CROSS-REFERENCE

Useful websites: • Tool 4.02.04, Information Tool: Creating local jobs through worker cooperatives • ILO Cooperative Branch: http://www.ilo.org/ employment/coop • International Co-operative Alliance: http://www. coop.org • ICA Equality Committee: http://www.ica.coop/ gender/index.html • University of Wisconsin Centre for Cooperatives: http://www.uwcc.wisc.edu/ • SEWA: http://www.sewa.org

International Labour Ofﬁ ce []Ó 177 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.01.04 INFORMATIONCASE STUDIES TOOL

THESHORT START CASE AND STUDIES IMPROVE IN LOCAL YOUR ECONOMICBUSINESS (SIYB)DEVELOPMENT PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, in time for July’s announcement of the town’s decided instead to use the city’s accumulated economic growth, entrepreneur, institution- Internal Revenue Allotment (IRA) by the national annual budget surplus, which had already grown Thisbuilding, case management, studies tool discusses marketing, the micro highlights and of Department of Budget and Management. The to more than PhP 50 million. asmall number enterprises, of successful trade casesunion, in training local economic LGU’s budget offi ce reviews departmental budgets development to give ideas on possible strategies in August to prepare for the Sanggunian’s Only the engineering design of the road project that LGUs can adopt. evaluation and approval by October. was bidded out to a private company. Instead of awarding the construction phase to a contractor, THE INTEGRATED DEVELOPMENT PROGRAM Signifi cant funding was raised from the the LGU decided to implement the project “by OF IROSIN, SORSOGON (1992-1997) Department of Agrarian Reform (DAR), the administration”. It beefed up its engineering Department of Social Welfare and Development offi ce and mobilised the barangays to provide The LGU convened a multi-sectoral planning (DSWD), the Countryside Development Funds of a local labour and monitor the project. This strategy workshop in 1992 to map out strategies for Congressman and two Senators. Irosin’s combined ensured that the funds for the project were spent the town’s development. Mayor Eddie Dorotan IRA and local revenues also increased from PhP effi ciently and went back into the local economy. reached out to involve POs, NGOs, cooperatives, 740,000 in 1992 to PhP 23 million in 1997. government line agencies, the military, and even, Impressed with the project, then President Fidel the rebel New People’s Army in a year-round DALAN SA KAUSWAGAN: A ROAD PROJECT Ramos, a Congressman and two Senators also process of participatory planning, implementation, OF SAN CARLOS CITY, NEGROS OCCIDENTAL contributed to it. The city was also able to access monitoring and evaluation of Irosin’s development funds from the DAR for roads leading to agrarian projects. Originally, the city planned to borrow PhP 50 reform communities. million from the Development Bank of the January was used for evaluating previous year Philippines fi nance the construction of an all- BOHOL’S INVESTMENT PROMOTION performance. From February to December, weather road network that would link 5 of the city’s PROGRAM monthly monitoring meetings with coordinators 8 upland barangays. The road network would also and stakeholders were held. June was for be an integral part of the strategic Negros Cross- Given its relatively sparse population, the province planning and budgeting the next year’s directions Island Link. In 1994, Mayor Rogelio Rebulgado of Bohol had only a small IRA. To spur growth,

International Labour Ofﬁ ce []Ó 178 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.01.04 xxx SHORT CASE STUDIES IN xxxxxxxxLOCAL ECONOMIC DEVELOPMENT

reduce unemployment, underemployment, and BREAKING FINANCIAL BARRIERS IN SAN Like San Carlos City, a special unit under the out-migration, Gov. Rene Relampagos initiated the FERNANDO, PAMPANGA Municipal Engineer implemented infrastructure Bohol Investment Promotion Program. Through projects to cut down on costs and corruption. The consultation workshops, the province’s investment From a lahar-swamped town unable to pay its unit claimed they were able to generate savings of priorities were set – Eco-Cultural Tourism, Agro- utility bills and remit the national government’s at least 30%. Industrialisation, and Light Manufacturing. share of locally collected taxes, in two years’ time San Fernando was no longer in the red and built Initially, there was resistance from the bureaucracy The main strategies developed included: up its equipment pool to rehabilitate the town’s and business. But these faded as communication basic infrastructure. lines were kept open and the fruits of the tough • Involving the residents in formulating policies on measures were seen in the form of the delivery of investment promotion Almost simultaneously, Mayor Rey Aquino basic services and infrastructure. • Providing timely and appropriate business streamlined the LGU bureaucracy, increased tax and fi nancial advice to the province and the collection and succeeded in converting the town municipalities into a component city. ACKNOWLEDGEMENTS • Establishing and maintaining a data base that could be used for policy and technical He terminated the services of 200 casuals, The material was based on draft case studies assistance adopted austerity measures to decrease the LGU’s provided by the Philippines-Canada Local • Aggressively promoting the province as an overhead. He also installed a bundy clock and Government Support Program (LGSP) – Canadian investment and tourist destination nationally monitoring cameras to keep employees on their International Development Agency (CIDA). and internationally toes. • Providing fi scal and non-fi scal incentives through the Bohol Investment Code adopted by A tax enforcement unit was created to build a data RELEVANT RESOURCES the Sanggunian Panlalawigan in 1999. bank and intensify tax collection. Top taxpayers were honoured in annual rites. The unit regularly Transforming the Local Economy. Kaban Galing: Through the encouragement of the LGU, met with the business community to thresh out The Philippine Case Bank on Innovation and Boholanos living abroad were also encouraged to problems. Exemplary Practices in Good Governance, Galing increase their remittances three-fold to US$ 3.5 Pook Foundation, 2001. million or PhP 192 million a month.

International Labour Ofﬁ ce []Ó 179 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.01.05 INFORMATIONCASE STUDIES TOOL

THESOME START EXAMPLES AND IMPROVE OF PHILIPPINE YOUR BUSINESSPLANNING (SIYB)EXPERIENCES PROGRAM – CLUSTERED PLANNING

OBJECTIVEKEYWORDS: Business plan, capacity-building, • Setting up community colleges building, strategic planning, and feasibility studies economic growth, entrepreneur, institution- • Construction of a port in Batan to serve as a for the union. Thisbuilding, tool discussesmanagement, examples marketing, of how micro some and transhipment point for products of the union municipalsmall enterprises, local government trade union, units training (LGUs) have • Transformation of Altavas as the Union’s The CPEU was planning to turn over its operations banded together in order to carry out “clustered commercial district to a federation of municipal cooperatives. This did planning”. not materialise because the cooperative of one of The CPEU was governed by an Executive the towns became inactive. Disagreements and THE CENTRAL PANAY ECONOMIC UNION Council composed of the mayors of the 5 towns. competition among the mayors for projects also (CPEU) Its chairpersonship was rotated among the 5 weakened the union. New mayors with priorities mayors. Day-to-day operations were handled by a other than the union added to its difﬁ culties. The CPEU consisted of the towns of Jamindan and Technical Committee composed of the Municipal Tapaz in the province of Capiz and Libacao, Batan, Planning and Development Coordinators (MPDC) CLUSTERED DEVELOPMENT IN SURIGAO and Altavas in the province of Aklan. The LGUs and the Municipal Engineers of the 5 towns. DEL SUR of the 5 municipalities banded together to attract development resources to the area and combat The strategies used by the union were: Seven towns of Surigao del Sur province banded poverty and insurgency. They were all either 5th or together to form the MACASALTABAYAMI Alliance: 6th class municipalities when they got together in • Complementation of roles and resources Marihatag, Cagwait, San Agustin, Lianga, Tago, 1993. • Cooperation in the provision of social services Bayabas, and San Miguel. An Executive Board • Joint marketing to funders and investors consisting of the mayors of the 7 towns and The original plans of the union were quite • Joint lobbying for development projects from representatives of the Department of Trade and ambitious. Some of these were: the national government Industry (DTI), Department of Agriculture, and NGOs was constituted as the policy-making body • Construction of Inter-municipal road networks Each LGU contributed PhP 100,000 to a revolving of the alliance. The mayor of Cagwait became • Establishment of sustainable villages based on fund. The Philippines-Canada Local Government the Chair while his MPDC served as executive the advantages of each town Support Program (LGSP) facilitated institution- coordinator supported by the 6 other MPDCs.

International Labour Ofﬁ ce []Ó 180 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.04 SOMETOOL No: EXAMPLES xxx OF PHILIPPINE PLANNING EXPERIENCESxxxxxxxx – CLUSTERED PLANNING

Together, they formulated development plans, STRATEGIC WATERSHED PLANNING most of the water originates, which LGU packaged project proposals, made sectoral APPROACH receives most of the water, which LGUs are studies, and conducted monitoring and evaluation positively or negatively affected, etc. Agree of projects. The Naga City Government uses the watershed on respective responsibilities and coordinate planning approach. The basic unit of planning is watershed protection measures. The alliance’ overall goal was “Balanced and the watershed and not political boundaries. The Sustainable Growth, Poverty Alleviation, and delineation of the watershed involves the following Social Development”. Its strategies were Agri- steps. ACKNOWLEDGEMENTS Industrialisation and Integration of the towns’ respective comparative advantages. • Identifi cation of the watershed boundaries using This material is based on the book entitled Kaban a topographic map - This involves locating the Galing 3: Transforming the Local Economy (2001) The alliance produced a master plan and land main river and tributaries that fl ow into the river. and Kaban Galing 5: Promoting Excellence use plans for its members. It was able to attract The highest points in the map are also identifi ed in Urban Governance (2001), Galing Pook interest from foreign donors and investors. A and linked. These constitute the ridgelines Foundation. chamber of commerce covering the 7 towns was of the watershed. The resulting map is then also formed. Still, it had its problems. There was validated. suspicion that the alliance would benefi t only • Identifi cation of Ecological Zones – These are one town – Cagwait. Some towns did not share areas with similar ecological characteristics information in the industry planning activities. as shown in their land use pattern, slope, and Also, some did not contribute to the alliance’ the interface between communities and their operating fund. natural environment. Examples are: coastal zones, agricultural zones, urban, natural forests, New mayors were elected in 1998. By instituting etc. reforms in its structure and operations the alliance • Determination of Local Government Boundaries managed to move on in spite of some diffi culties. – Identify LGUs whose jurisdiction covers part of the watershed. • Determination of Local Government Responsibilities – Find out from which LGU

International Labour Ofﬁ ce []Ó 181 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.07 INFORMATION TOOL

THEPART START 4 SECTION AND IMPROVE TWO: CREATING YOUR BUSINESS MORE JOBS (SIYB) (EMPLOYMENT PROGRAM OPPORTUNITIES)

INTRODUCTIONKEYWORDS: Business plan, capacity-building, Investment may be made by formal enterprises, Section Two of Part 4 contains tools that provide economic growth, entrepreneur, institution- which have the potential to create several jobs. ideas and suggestions about strategies and local Decentbuilding, work management, is not possible marketing, without micro work. and The important employment potential (direct and initiatives that can be taken by local planners and small enterprises, trade union, training indirect) of public investments in infrastructure development practitioners in order to stimulate Job creation depends on investment and the needs to be better exploited. In many rural job creation and preserve jobs. These tools creation of the demand for labour. This in turn communities, however, individuals invest their pay attention to the role of small enterprises is infl uenced by many factors, among others, labour, some land and space, and a bit of and cooperatives, infrastructure investment, resources and skills in the area, investment physical or fi nancial capital to generate income microfi nance and skills training. The fi rst tool climate and infrastructure in the community, for themselves, their families and, perhaps, one includes pro-active measures to link people to jobs economic opportunities brought about by markets. casual worker. and minimise job losses. Some factors lie within the control of the local community, but others lie in higher government Job opportunities may be wage employment or structures and macro economic and sectoral self-employment in own-account work and micro policies. or small entrepreneurial ventures.

International Labour Ofﬁ ce []Ó 183 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.02.01 INFORMATIONACTION TOOL TOOL

THEAPPROACHES START AND TO IMPROVE LOCAL JOB YOUR CREATION BUSINESS (SIYB) PROGRAM

OVERVIEWKEYWORDS: Business plan, capacity-building, INITIATIVES TO IMPROVE THE JOB LINKING • Compile a skills registers to identify skills that economic growth, entrepreneur, institution- CAPACITY OF A COMMUNITY AND THUS different locals are willing to share with others. Jobbuilding, creation management, depends on marketing, investments micro and and the THE FLOW OF PEOPLE INTO JOBS • Provide a free job advertisement in the local creationsmall enterprises, of the demand trade forunion, labour. training (Please refer newspaper for out-of-work people to advertise to the tools in Section One of Part 4) This in turn Most people still fi nd employment through their skills. is infl uenced by many factors, among others, social networks rather than through newspapers • Provide a free radio spot service for out of work resources and skills in the area, economic or employment services. There is a lot that people to advertise their skills. opportunities brought about markets, and a local communities can do to enhance its job suitable investment climate and infrastructure in linking capacity, particularly for those most 2. Job-linking the community. disadvantaged. Community action can also help to fi ll job vacancies more quickly, discover hidden job • Provide resources and networks to the local There are many things that Local Government opportunities and help counter attitudinal rather Public Employment Service Offi ce (PESO) and Units (LGUs), local leaders and community than market reasons why some employers may not mandate it to implement appropriate actions organisations can do to stimulate and facilitate the be increasing their workforce. from this list. creation of more and better job opportunities. • Organise a door-knock campaign targeting local What can be done: employers making them aware of employment OBJECTIVE schemes. 1. Information dissemination on skills and jobs • Organise a job-mate scheme that links a job This action tool discusses some practical ideas seeker to a job-mate: The job-mate provides and suggestions about local initiatives that local • Prepare publicity summarising all forms of job one-to-one mentor support in the search for development planners and practitioners can assistance available locally (e.g., the Philippine work. undertake. Job Net program of the Department of Labour • Establish a casual labour exchange which and Employment (DOLE) providing job hunting provides a focus for notifying casual work support, referrals and matching). opportunities and provides a direct link to the out of work with appropriate skills.

International Labour Ofﬁ ce []Ó 184 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.02.01 xxx APPROACHES TOxxxxxxxx LOCAL JOB CREATION

• Establish a unit or labour pool that co-ordinates 4. Training INITIATIVES TO IMPROVE THE the seasonal needs of farmers with people PRODUCTIVITY AND PROFITABILITY looking for work. • Coordinate training efforts with provincial and OF EXISTING BUSINESSES AND THUS, • Organise an “Employ Me” competition where regional training centres such as the Technical ENHANCE JOB SAVING AND JOB CREATION school graduates and the unemployed enter a Education and Skills Development Authority POTENTIAL poem, essay or cartoon on the theme “Employ (TESDA) of the DOLE. Me”; publish the best in the local newspaper. • Organise community job clubs where job International experience has clearly shown that seekers can learn job search skills and support more jobs are created through business expansion 3. Facilitate job placement each other through sharing information and job than through new business start-ups. See Tool leads. 4.01.01 for initiatives that focus on business • Organise a local group training scheme where a retention and improvement. group of employers collectively employ a group 5. Directly encourage job creation of trainees. • Organise a regular door knocking campaign • Make full use of government employment INITIATIVES TO ENCOURAGE THE of businesses to fi nd out skill shortages and programs to create local jobs. FORMATION OF NEW BUSINESSES develop immediate short courses to fi ll local job • Publicly recognise and thank employers who needs. employ local young people. Tool 4.02.07 and Tool 4.01.01 includes a range • Establish a Local Employment Trading Scheme • Promotion campaigns to encourage employers of support to help potential new entrepreneurs where employment skills are bartered. to create extra jobs - use of incentive prizes. research and develop a viable business idea • Organise a local support program for redundant • Co-ordination of an ‘Adopt a School’ program by and obtain access to the appropriate skills and workers as soon as possible after the local businesses - Educational Compacts. resources. Increasingly, small communities redundancy or preferably prior to the closure are discovering the new business potential in of a factory or offi ce including a systematic alternative tourism, small specialist manufacturing, telephone program regarding job vacancies of information technology sectors, and alternative/ every business within a certain radius of the specialty agricultural production. community. • Make maximum use of counselling services provided by DOLE.

International Labour Ofﬁ ce []Ó 185 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.02.01 xxx APPROACHES TOxxxxxxxx LOCAL JOB CREATION

INITIATIVES TO ATTRACT NEW BUSINESS, CROSS-REFERENCES INDUSTRY PROGRAMS, SERVICES AND FUNDING FROM OUTSIDE THE AREA • Tool 2.03, Assessment Tool: Assessing your local economy Previously, some people considered that local • Tool 4.01.01, Action Tool: Strategies for making economic action was only about attracting outside your local economy grow industries. Now there is a growing appreciation • Tool 4.02.07, Information Tool: The Start and that this may not be the most effective strategy for Improve Your Business (SIYB) Program small communities. However, there is a range of • Tool 4.03.03, Assessment Tool: Analysing initiatives that can be taken to recruit compatible livelihoods of poor communities and areas new businesses/industries. Moreover, there is a • Tool 4.03.03.1, Action Tool: Guidelines for wide range of grants, services and new programs supporting livelihoods of poor communities that can be monitored and ‘head hunted’ which can generate additional income, employment See the rest of the Tools in Section Three, Part and opportunities for locals. See Tool 4.01.01 for 4. These tools tackle speciﬁ c topics mentioned suggested actions. above.

International Labour Ofﬁ ce []Ó 186 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.02.02 INFORMATIONACTION TOOL TOOL

THECREATING START LOCAL AND IMPROVE JOBS THROUGH YOUR BUSINESS SMALL ENTERPRISE (SIYB) PROGRAM DEVELOPMENT

OVERVIEWKEYWORDS: Business plan, capacity-building, DESIGNING A LOCAL ENTERPRISE • To increase the number, variety and quality of economic growth, entrepreneur, institution- DEVELOPMENT STRATEGY employment opportunities for local people in Smallbuilding, enterprises management, have amarketing, great potential micro to and the private sector. generatesmall enterprises, new employment trade union, opportunities. training It is A TWO-PRONGED APPROACH • To increase the opportunities for local enterprise also a sector that already provides an important development within specifi c sectors (e.g., contribution to the economic and social well-being Creating jobs through small enterprise tourism, value adding, manufacturing). in most communities. It is therefore necessary development requires a two-pronged approach: • To improve enterprise practice in the area and that direct and specifi c measures be introduced to to promote high quality and effi ciency wherever support it. • Promote the expansion and increased possible. profi tability of the existing enterprise base. • To increase the volume of enterprise conducted OBJECTIVE • Promote the survival of new start-up and the area and to prevent the loss of enterprises. enterprise to other areas. This action tool provides local development planners and practitioners with a range of local AIMS OF THE STRATEGY POSSIBLE ELEMENTS IN LOCAL initiatives that can be taken to create jobs in small ENTERPRISE DEVELOPMENT STRATEGY enterprises. The design of a local enterprise development strategy may include some or all of the following BUILDING A LOCAL CAPACITY AND FOCUS FOR purposes: ENTERPRISE DEVELOPMENT

• To improve the success of new enterprise start- There is a need for all local communities to create ups in the area. a focus for the development of the enterprise • To improve the proﬁ tability and survival of sector. This will promote local cooperation, existing enterprises. linkages, access to resource and the better use of existing resources. There are a variety of possible

International Labour Ofﬁ ce []Ó 187 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.02TOOL No: xxx CREATING LOCAL JOBS THROUGH SMALLxxxxxxxx ENTERPRISE DEVELOPMENT

structures and organisations that can be used for can provide an important service and resource to PROVIDING ACCESS TO FINANCE this purpose, including: this sector. Access to fi nance is an issue faced by many Local enterprise association or chamber of PROVIDING ADVICE AND TRAINING enterprises in the Philippines and enterprise commerce failure as a result of being under-capitalised Practical timely advice and training can be of great is a common problem. Thus, an enterprise Local or regional enterprise associations value to local enterprise development. There are development strategy must come to terms with can provide a means of focus for enterprise a number of features to consider when providing this issue. development; they can maximise current these services: resources; provide advocacy to government on Some local strategies that have worked well in behalf of the local private sector; and can be • It should be confi dential. different communities include: sensitive and responsive to local issues. • It must be informal - allowing the enterprise person to feel at ease and able to ask questions. Promoting fi nance networks and ‘angels’ Development boards or commissions • It must be accessible; advice can be provided from a central location or, when the enterprise is Family and friends are one of the most common Usually these organisations have a broader established, at the site of the enterprise itself. sources of enterprise fi nance. Those people who planning and development remit than just that • Training is best provided outside of normal work do not have family or friends with the fi nancial of enterprise development. However, they can hours; in short bursts; and based upon the capacity to invest in an enterprise may need be a vehicle for community leadership and the development needs of the enterprises they are assistance in getting into other networks to help mobilisation of resources for this purpose. targeting. One of the troubles with many training them fi nd an investor or ‘angel’. programs is that they are often aimed a helping Local government people prepare a enterprise plan to get started Improving access to bank fi nance in enterprise while there is very little training While local government’s role is usually not related available for people once they are in enterprise. Some people just need a little assistance in to enterprise development, a local government that Training that would help them improve their approaching the local bank. This may be through is committed to the growth of the local enterprise enterprise. referral or introduction to the local bank manager sector and the promotion of local entrepreneurship or loans offi cer, or assistance in the preparation of a detailed enterprise plan.

International Labour Ofﬁ ce []Ó 188 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.02 CREATING LOCAL JOBS THROUGH SMALL ENTERPRISE DEVELOPMENT

Establishing alternative fi nance schemes PROVIDING WORKSPACE a book-keeping service are other elements of a shared work space that combine to assist new A number of local communities have developed Shared workspaces have become recognised enterprises to successfully start and expand. alternative microfi nance schemes that aim to as a valuable way of promoting new enterprise provide enterprise fi nance through means other development within a specifi c community. Whilst TARGETING SPECIFIC GROUPS than a conventional banks - although a number there are a number of variations, the main idea of these schemes use the resources and skills of of these facilities is that they provide a place for a In some cases communities can focus their local banks at some point in their operations (e.g., new enterprise to work from, which may or may attention on specifi c groups of residents and for debt recovery or administration). not be cheaper than market rate, which provide provide a range of support measures tailored to an ‘easy in, easy out’ leasing arrangement allowing suit the needs, circumstances and opportunities Note: Before launching into action to address the a new enterprise to move in and begin enterprise of these groups. Some examples of this type issue of fi nance for small enterprise it is important without the fear of a long term commitment. of targeting include enterprise development to investigate carefully the role that fi nance Access to enterprise advice, training, information, programs that are oriented toward: should play in a local enterprise strategy, and and shared services such as a common reception, that a community should consider the following answering service, facsimile, photocopier and • Women questions: • Young men and women • Women and men from indigenous communities 1. Is there a problem with access to fi nance for enterprises in the community? (Local bank • Unemployed people managers may say “no”; whereas those people without suffi cient collateral may say “yes”. Who is right?) TARGETING SPECIFIC INDUSTRY SECTORS 2. If there is a problem in this area, can it be specifi ed? (i.e., are there certain groups of who are having trouble getting fi nance - such as people wanting to start a new enterprise, or an Many communities have found value in providing unemployed person) What, on average, is the amount of funds these people require? What are a set of specially tailored support services to the funds to be used for? Equipment? Working capital? enterprises that are operating within a specifi c 3. What resources are there in the community to begin to address this issue? (There may be, for industry sector. Whilst there can be many example some local bank managers who are prepared to look at new approaches, or a group of variations to programs of this sort, they often local investors willing to invest in local enterprises.) comprise the following elements:

International Labour Ofﬁ ce []Ó 189 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.02TOOL No: xxx CREATING LOCAL JOBS THROUGH SMALLxxxxxxxx ENTERPRISE DEVELOPMENT

• Facilitating networks and the sharing of government authorities often have different ESTABLISHING AND MAINTAINING A LOCAL OR information between enterprises operating in attitudes (i.e., many have negative attitudes) REGIONAL ENTERPRISE DATABASE the sector. toward home-based enterprises. Thus, attention • Establishing joint training, research and should be given to creating a positive policy for Regional enterprise databases can provide development initiatives. home-based enterprises. Such a policy should: a powerful tool for the identifi cation of new • Promoting schemes for group marketing and enterprise opportunities that may exist within bulk purchase of raw material. • Provide a statement of aims and purposes of the area and outside of it. It is about improving • Increasing access to external funding such a policy (e.g., to promote employment, the information fl ow to enterprises about the opportunities. improve quality of life, increased incomes, commercial opportunities that exist within their • Promoting good practice and processes for expanding local products and services). region. Information is obtained, collated and innovation. • Recognise the value of home-based enterprises provided with the following uses in mind: • Commissioning studies that enhance the - particularly in terms of employment. understanding of the sector including its size, • Recognise the key areas of concern for local • Regional purchases: Local and international current levels of operation, current operators, government, including: land use and land enterprises can use the purchase inquiry perceived constraints and opportunities. zoning concerns, health and safety, noise levels, service to identify potential suppliers from within • Improving market information. parking, etc. the region. Inquirers receive a list of potential • Promoting better access to specialist resources, • Recognise the key factors infl uencing the suppliers drawn from the database within one advice and training. success and growth of home-based enterprises. working day. • Promoting a better understanding of labour • Outline the anticipated development path for • Sourcing products for export: Importers from market needs within the sector. home based enterprises e.g., beginning in the overseas and export agencies can source • Identifying diversifi cation opportunities. home and growing out into a more formal site products and services available from export. • Commissioning studies for the assessment of within the area. As well as holding details on products currently new export opportunities. • Outline strategies that can facilitate the export, the database contains those products movement of home based enterprises along this and services that are not currently being DESIGNING A HOME-BASED ENTERPRISE POLICY path, through, for example, information, access exported, but which have the potential for to training, access to fi nance, advisory services, export. Home-based enterprises are an unseen resource access to work space, access to enterprise • Import substitution: The database can be within many communities. However, local support services, etc. searched for potential suppliers of imported

International Labour Ofﬁ ce []Ó 190 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.02TOOL No: xxx CREATING LOCAL JOBS THROUGH SMALLxxxxxxxx ENTERPRISE DEVELOPMENT

goods and those suppliers made aware of • Demonstrate the community’s pro enterprise IMPROVING LOCAL ENTERPRISE PRACTICES import substitution opportunities. attitudes. • Investment facilitation: As local governments • Establish mechanisms for regular dialogue with There is a need for enterprise proprietors to are often contacted by overseas or inter- members of the enterprise community gain exposure to new ideas, techniques and to state enterprise people with varying interests, • Develop a detailed data base on local enterprise have their skills and knowledge base enhanced including joint venture manufacturing and activities and plans, including a register of all (especially in terms of marketing, merchandising direct investment opportunities, the database goods and services. and retail practices). Improving customer service can be accessed to make such parties aware • Ascertain and respond to problems and is an important part of improving enterprise of regional capacities which may lead to new constraints to growth identifi ed by local performance overall. contacts being made. enterprises. • Export stimulation through joint marketing: • Ascertain and respond to the needs and Local enterprise clubs, associations or business Many enterprises are unable to individually expectations of the labour market. chambers can bring their members together to enter export markets due to their size and the • Support practical initiatives which directly consider their business practices. Some examples cost associated with such ventures. enhance the productivity and competitiveness of seminars or workshops that may be run by • Other opportunities: There are many other of local enterprises, and assist in expanding these groups include: possible uses of this sort of information, their market share. including joint ventures, the identifi cation • Identify opportunities for “plugging the leaks” in • Marketing equals profi ts of distributors for goods and services, the local economy and encourage inter-trading • Team building for success and informing those who register of amongst local enterprises. • How to value a small enterprise media, educational, training or investment • Create mechanisms for enhanced co-operation • Drive your advertising peso further opportunities. and communication between the private sector • Be motivated to win and all levels of government. • Christmas retailing strategies A database can assist development planners, • Create an environment conducive to the policy makers, service providers and enterprises attraction of outside enterprise, industry and gain relevant and current information that will investment. assist their work in the area. In addition, such information can:

International Labour Ofﬁ ce []Ó 191 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.02TOOL No: xxx CREATING LOCAL JOBS THROUGH SMALLxxxxxxxx ENTERPRISE DEVELOPMENT

CONCLUSION RELEVANT RESOURCES CROSS-REFERENCES

This tool has sought to describe a number of • ILO, Start and Improve Your Business training • Tool 2.03, Assessment Tool: Assessing your different actions that can be taken by local package. http://www.ilo.org/dyn/empent/ local economy. communities to improve the state of their empent.portal?p_docid=SIYBHEAD&p_ • Tool 4.01.01 Action Tool: Strategies for making enterprise sector and to enhance its potential to prog=S&p_subprog=BD your local economy grow. provide new, interesting and long-term jobs. The • ILO, I-WEB. Improve Your Work Environment • Tool 4.03.03, Assessment Tool: Analysing choice of any one of these actions, or indeed any and Your Business for Micro entrepreneurs. livelihoods of poor communities and areas actions not listed above, should be dependent Action Manual. (Geneva: ILO) 2003. • Tool 4.03.07, Assessment Tool: Assessing the upon the existing capacities and opportunities of • For more information on these entrepreneurship potential for local microﬁ nance. the local enterprise community and the needs, training packages, contact ILO Manila. • Tool 4.03.07.1, Action Tool: Improving local threats and limitations that it may face. access to ﬁ nancial services. • Tool 4.04.02, Action Tool: Improve working To be effective, any local strategy will require conditions and productivity of small enterprises. broad community participation and endorsement • Tool 4.04.02.1, Action Tool: Simple and low- of the chosen directions and actions. It will cost ways of improving working conditions in need a local agency to focus on coordination the “informal sector”. and the achievement of successful outcomes. Most of all, it will require a commitment to best practice, customer service (i.e. customer-oriented enterprises) and opportunism.

International Labour Ofﬁ ce []Ó 192 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.02.03 INFORMATION TOOL

THECREATING START LOCAL AND IMPROVE JOBS THROUGH YOUR BUSINESS EMPLOYMENT-INTENSIVE (SIYB) PROGRAM INFRASTRUCTURE PROGRAMMES

OBJECTIVEKEYWORDS: Business plan, capacity-building, It is important to differentiate between optimal show the following advantages of labour-based economic growth, entrepreneur, institution- (and effi cient) and a maximum (and possibly options: Thisbuilding, information management, tool discusses marketing, an overviewmicro and of ineffi cient) use of labour. The latter may occur employment-intensivesmall enterprises, trade infrastructure union, training programs, when income generation and job creation are the • Costs are 10 percent to 30 percent lower than and explains the issues accompanying the use of principal objective. This is the case in disaster equipment-based options labour-based, equipment-supported technology in relief or food for work projects that are temporary • Foreign exchange requirements are reduced by order to help job creation at the community level. and where the required quality and productivity 50 percent to 60 percent are not high. • For the same amount of investment, 2 to 5 This tool is based on “A Guide for Employment- times more employment is generated Intensive Infrastructure Programs: Labour Policies The International Labour Organization emphasises and Practices”, published by the International the importance of making employment-intensive PROJECT IMPLEMENTATION MODES Labour Organization, which draws from years of approaches sustainable by optimising the use experience in many countries across the world. of labour. It does not want to see employment- BY CONTRACT intensive programs degenerate into situations INTRODUCTION where cost-effectiveness and quality aspects are In this mode, private entities are contracted ignored. by a government agency to implement, say, a “Labour-based technology” aims at applying a construction or maintenance project. Private labour/equipment mix that gives priority to labour, COST ADVANTAGES contractors are able to act in a fl exible, but supplements it with light equipment where unbureaucratic manner and, therefore, reward necessary for reasons of quality or cost. In the A rule of thumb is: when the minimum wage in a good performance and operate effi ciently. In this literature, “employment-intensive” and “labour- country is below US$4, there is a good possibility mode, the government agency can impose certain intensive” are generally used as synonyms of that Employment-Intensive Infrastructure conditions in the contract that require the use of “labour-based”. Programs (EIIP) will be cost-effective. Comparative employment-intensive approaches. studies in countries like Cambodia, Ghana, etc.

International Labour Ofﬁ ce []Ó 193 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.03 CREATING TOOLLOCAL No: JOBS xxx THROUGH EMPLOYMENT-INTENSIVExxxxxxxx INFRASTRUCTURE PROGRAMMES

BY ADMINISTRATION based works in line with international labour • Type and level of remuneration (cash or kind) standards. However, the experience of long- • Seasonal fl uctuations in the local labour market Several LGUs prefer to implement some term projects strongly suggests that operations (agricultural and industrial) construction and maintenance projects “by consistent with these standards are more likely • Traditions (if any) infl uencing participation in administration”. (In the guide, this mode is called to achieve longer-term success and development wage employment “force account”.) This helps reduce cost by doing objectives. The ILO Guide lists summaries • Relevant national laws and regulations away with contractor’s margins and management of provisions of relevant international labour • Desired gender mix in the work force and supervision fees. However, it also requires conventions related to the following rights of • Social targeting objectives more time and effort from LGU personnel, usually, temporary workers and “one-person” contractors: • Interest in spreading employment opportunities the Municipal Engineer. The LGU can directly around community apply EIIP in this mode. However, large projects • Equality • Desired level of productivity in work force may be diffi cult to implement in this mode. • Freedom from Forced Labour • Ensuring that labour is voluntary • Freedom of Association CONSTRUCTION AND MAINTENANCE • Minimum Age SUGGESTIONS • Minimum Wages It should be noted that construction projects • Protection of Wages The ILO Guide gives suggestions on several topics. combine one-time, high-level investments with • Safety and Health A sample of these is below. short-term employment. Maintenance projects • Other employment conditions, e.g., workers combine constant low-level investments with compensation Recruitment – When there is an overabundant longer-term employment of fewer workers. The labour supply, the guide lists some methods of LGU can adjust its EIIP depending on its labour KEY INFORMATION NEEDED rationing jobs such as lotteries, job rotation, etc. situation. Job rationing systems must be transparent. All The following information are important for the work must be covered by a signed employment LABOUR STANDARDS design and implementation of employment- contract. intensive infrastructure programmes: It is recommended that International Labour Wages – Legally established minimum wages Standards should be applied in EIIP. It may be • Personnel requirements at different stages of should be respected. Where applicable minimum diffi cult in the short term to implement labour- the project wages are clearly too high or too low, formal

International Labour Ofﬁ ce []Ó 194 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.03 CREATING TOOLLOCAL No: JOBS xxx THROUGH EMPLOYMENT-INTENSIVExxxxxxxx INFRASTRUCTURE PROGRAMMES

exemptions can be considered. Motivation and discipline – Transparency and ACKNOWLEDGEMENTS supervisors’ attitudes and behaviour can be critical Basis of Remuneration – For employment-intensive in maintaining motivation and discipline. Due This tool is based on A Guide for Employment- works, productivity-based remuneration is process and fairness should guide disciplinary Intensive Infrastructure Programs: Labour Policies preferable to time-based remuneration. However, systems. and Practices (1998) by David Tajgman and Jan abuses must be prevented or minimised. When de Veen of the Development Policies Department, appropriate, time-based remuneration can be Management and supervisory training – Good International Labour Offi ce, Geneva combined with productivity-based remuneration. supervision requires a well-organised training program. Remuneration in kind – poses delivery and RELEVANT RESOURCES administrative challenges. It is most appropriate Safety and health – Safe drinking water, fi rst aid where food or selected consumption items are kits, and latrines and urinals are the minimum • Labour-Based Road Construction Methods scarce and market mechanisms are unresponsive. requirements at the worksite. – Management Manual, ILO-ASIST, 1997. http:// www.iloasist.org/Downloads/tmlbt.pdf Protection of wage payment – According to studies, Social security and insurance – Relevant national • Building Local Government Capacity for Rural wage payment on time is most important to keep social security programs need to be respected. Infrastructure Work, ILO-ASIST, 2003. http:// work going and workers happy. www.ilo.org/public/english/employment/recon/ Duration and termination of employment – eiip/download/buildcapacity.pdf Attendance – Regular attendance is essential and Conditions concerning termination of employment • Mr. Constante Llanes Jr., Project Manager, this must be made explicit. Transparent record should be well set out in documentation and Central Labour-Based Unit, Comprehensive keeping of attendance is important. When there is communicated to workers. Agrarian Reform Program, Department of Public high absenteeism, the cause and remedy need to Works and Highways. be identifi ed. Rights of association – Associations of community groups can be extremely effective in identifying, Other labour regulations – Mandatory weekly rest, executing, supervising, and maintaining labour- CROSS-REFERENCE annual paid holiday (when applicable), and sick based infrastructure projects. Workers and leave need to be in place. employers should be free to organise and join • Tool 2.05, Information Tool: Integrated Rural organisations of their own choice. Accessibility Planning (IRAP)

International Labour Ofﬁ ce []Ó 195 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.02.04 INFORMATION TOOL

THECREATING START LOCAL AND IMPROVE JOBS THROUGH YOUR BUSINESS WORKER COOPERATIVES (SIYB) PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, • Protection and representation (especially in the • Active member participation: The active economic growth, entrepreneur, institution- informal sector which cooperatives can help to participation of members in the management of Thisbuilding, information management, tool provides marketing, an overview micro and on formalise) a cooperative reduces costs, enhances cost- workersmall enterprises, cooperatives trade and union, how these training cooperatives • Greater stability effectiveness, and facilitates capital mobilisation can contribute to the creation of more and better • Joint innovation (sharing of ideas among • Membership value: Cooperatives aim at jobs in their local communities. members) boosting the self-employment opportunities of their members and therefore favour labour INTRODUCTION Because cooperatives are member-based, not intensive production processes capital-based, they have a speciﬁ c employment • Representation of interests: Cooperative Cooperatives create jobs because they pool creation potential. members can much better defend their resources, ideas and capital. Cooperatives are interests than individual producers and not the only way to create jobs, but they are a • Economies of scale: The cooperative consumers, in particular when the cooperative valid option for individuals who have not enough organisational form enables independent society is integrated into a vertical structure resources to start their own businesses. They can entrepreneurs and workers in the informal • Stability: Due to risk sharing between members, succeed where individuals may fail. sector to carry out joint economic activities at cooperatives are generally more stable than reduced costs individual enterprises Because cooperatives have a double nature • Economies of scope: The joint production of • Innovation: Cooperative members learn from as associations of people and as businesses, goods and services facilitates division of labour each other and innovate together cooperatives have a distinct employment creation and specialisation and therefore enhances • Legal protection: Joining a cooperative helps potential that differs from that of other enterprises. productivity small-scale producers to obtain legal protection • Increased bargaining power: Cooperatives and to limit their personal liability to the amount • Synergies between members combine the supply and demand of their ﬁ xed in the by-laws • Greater bargaining power members and thus increase their bargaining • Members participation makes management power cheaper

International Labour Ofﬁ ce []Ó 196 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.02.04 xxx CREATING LOCAL JOBS THROUGHxxxxxxxx WORKER COOPERATIVES

WHAT IS SPECIAL ABOUT COOPERATIVE admitted to membership by a joint decision of the • They build up their own operating capital from ENTERPRISES? work force after she or he has worked for a short savings and from investing in the cooperative. probationary period. People who stop working for Outside capital, obtained from those who • Cooperatives are locally owned, creating the cooperative give up their membership when are not fellow–workers, has no infl uence on and retaining profi ts and jobs within their they leave their jobs. authority to take decisions or on internal power, communities. both of which rest with the workers • Cooperatives are democratically controlled, WHY CHOOSE WORKER COOPERATIVES? • Control in common of the means of putting into practice the principles of social production, thereby working jointly towards the justice and equal opportunity. • Often, workers’ coops are formed to overcome “socialisation” of those means, which are thus • Cooperatives operate in the competitive market, obstacles that individuals face. Individuals transferred from private to common ownership and combine commercial and social objectives. may lack fi nances, power, ideas, and skills. By • Democracy - on technical, fi nancial, economic • Remote shareholders seeking short-term gain working together cooperatively, many of these and social issued, control is exercised on the do not control cooperatives. obstacles can be addressed. Thus, workers in basis of one man, one vote a cooperative work together, negotiate together, • Management is structured hierarchically WORKERS’ COOPERATIVES innovate together, and complement each other’s according to competence but there is however; skills and experiences. democratic control, consultation and decision- WHAT ARE WORKERS’ COOPERATIVES? • The primary purpose of a workers’ cooperative making in respect of general management is to control the management and objectives policy and its execution A workers’ cooperative is an enterprise, which of the enterprise, and ownership and use of its • The endeavour to obtain the largest possible is owned and controlled by the people who assets. This requires some kind of voting system profi t has to yield pride of place to the idea of work in it. This gives the people who work in where each member of the workforce shall have producing to satisfy social needs the cooperative control over their work and their only one vote and that a majority or some higher • The cooperative offers to a greater extent than working environment and the ability to decide how proportion of the votes shall be decisive. any other form of organisation the possibility of the enterprise will develop. making economic democracy a reality, whilst CHARACTERISTICS OF WORKER COOPERATIVES directing production towards the satisfaction of Usually all the people who work in the cooperative social needs on a permanent full-time basis are members of • The workers in the business also own the • Economic democracy and recognition of it. Anyone joining the cooperative is normally business carrying out a task in the right way vis-à-vis

International Labour Ofﬁ ce []Ó 197 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.02.04 xxx CREATING LOCAL JOBS THROUGHxxxxxxxx WORKER COOPERATIVES

the community will have an infl uence upon the 9. Negotiating for preferential purchasing prices Control by the workers whole of society and help to raise its level to a for materials spares or machines higher plane. In recent years, there has been 10. Savings and credit facilities Control can hardly be said to lie with the workforce increasing interest in this form of organisation, 12. Commercial advice/ training if it is possible for the enterprise to be ‘sold up’ particularly in the building industry 13. Technical advice/ training without their consent, and it is therefore customary 14. Timely information of changes in any of the to stipulate that, whatever the form of ownership BENEFITS OR SERVICES THAT MEMBERS MAY above structure, the enterprise cannot be dissolved DERIVE FROM WORKERS’ COOPERATIVES 15. Name any other benefi t/service except with the consent of the members. Even then, the assets realised shall not be distributed 1. Provision of resident status through Identity KEY OPERATIONAL ISSUES TO CONSIDER WHEN to the members. This is to prevent the members Cards FORMING A WORKERS’ COOPERATIVE at any particular time cashing in, for their own 2. Legal / political protection through benefi t, assets which have been built up by the • General license Distinction between reward for capital and reward efforts of their predecessors in the enterprise • Party patronage or any other means for labour and which should be handed on for others in the • Or any other means future. 3. Security for property (day and/or night Those who provide capital should receive the watchmen) fair reward for doing so in the form of interest at Meetings 4. Welfare assistance in case of crisis, sickness, an agreed rate. But any trading surplus, which death etc. remains after the payment of this interest, is All of the members of a workers’ cooperative 5. Use of commonly owned facilities regarded as having been created by the effort of regularly meet together to make decisions about • Premises the workforce. It should therefore be regarded how the cooperative is organised. These decisions • Machinery as reward for these efforts, to be used as the are made on the basis of one member, one vote. • Any other facility workforce decides and not for further reward of However, decisions may not always be arrived at 6. Additional income from commonly owned those who provide capital. ‘Labour hire capital, by voting and many cooperatives use a process of property capital does not hire labour’ discussion by consensus. 7. Reduced costs from joint purchasing 8. Secure sales through joint marketing

International Labour Ofﬁ ce []Ó 198 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.02.04 xxx CREATING LOCAL JOBS THROUGHxxxxxxxx WORKER COOPERATIVES

Shares owned undistributed profi ts because these are MAIN PRINCIPLES UNDERLYING DAILY OPERATION needed to maintain the business in the future. A workers’ cooperative does not have shares in In addition, if it is decided that the cooperative Workers’ cooperatives operate along the following the normal sense. Instead, members usually have should cease trading, it is not legally possible principles: one nominal share, which is simply a membership using the recommended cooperative structure for ticket. This share is given up when they leave the the members to distribute any commonly owned • A general meeting of all members controls cooperative. profi ts or surpluses amongst themselves. The the coop; each member has one vote so that reason for this is that the surpluses have been everyone has an equal say in the running of the The money needed to fi nance a workers’ created by all members past and present for the business. cooperative takes the form of loans to the long-term maintenance of the cooperative and • The money needed to fi nance the cooperative cooperative as opposed to the sale of shares in the provision of employment in it. It is therefore is borrowed on simple loan terms (i.e., so that a conventional company. These loans, whether only right that any surpluses left over after the ownership remains with the members) from commercial or private sources, receive cooperative has ceased to trade should be • If it is decided that the cooperative should interest at agreed rates, which are not linked to the transferred to another cooperative to carry on cease trading and be dissolved, it is not profi tability of the cooperative. Or to put it another the provision of employment, which the dead possible for the members of the cooperative to way, a workers’ cooperative arranges fi nance by cooperative can no longer do. benefi t individually from this action (i.e., the hiring the capital it needs. The loans may be given principle of common ownership) by the members of the cooperative as well as Social objectives • A workers’ cooperative has social as well as raised from outside sources. fi nancial objectives. Workers’ cooperatives generally agree to commit Dissolution – and the principle of common themselves to promoting the well-being of people A properly set up workers cooperative will fulfi ll all ownership who work in the cooperative, the people with these principles in a simple and straightforward whom they trade and also the community at way. Any surpluses or profi ts made by a workers’ The members of a worker’ cooperative take large. Many are motivated by the desire to provide cooperative are dealt with in one of these three from it a fair wage for their work plus a bonus socially useful goods or services. ways: (1) retained in the business; (2) distributed from any profi t made. If a member decided to as a bonus to members; or (3) used to support the leave, there is no share-out of the commonly social objectives of the cooperative.

International Labour Ofﬁ ce []Ó 199 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOLTOOL No: No: 4.02.04 xxx CREATING LOCAL JOBS THROUGHxxxxxxxx WORKER COOPERATIVES

It must be remembered that a cooperative is still a RELEVANT RESOURCES CROSS-REFERENCE business which has to function efﬁ ciently in order to survive in the same competitive commercial • ILO Cooperative Branch: http://www.ilo.org/ • Tool 4.01.03, Information Tool: The role of world as other businesses. The formation of a employment/coop cooperatives in local development. cooperative is neither a soft option nor an excuse • International Co-operative Alliance: http://www. for adopting slipshod business practices. coop.org • ICA Equality Committee: http://www.ica.coop/ In setting up a workers’ cooperative, brieﬂ y gender/index.html members need:

• People with skills who are committed to working in the cooperative • Products to sell or services to offer • Premises to operate from • A legal structure for the cooperative • A business plan to show that the business is viable • An estimate of the amount of money needed to start and run the business

International Labour Ofﬁ ce []Ó 200 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.02.05 INFORMATION TOOL

THESKILLS START DEVELOPMENT AND IMPROVE AND YOUR EMPLOYABILITY BUSINESS (SIYB) PROGRAM

OVERVIEWKEYWORDS: Business plan, capacity-building, EMPLOYABILITY – ABILITY TO FIND, A comprehensive skills development strategy economic growth, entrepreneur, institution- SECURE, ENRICH AN OCCUPATION aimed at enhancing employability of the poor will Thebuilding, principal management, asset of populations marketing, is micro said toand be need to look at and address many factors at local theirsmall labour. enterprises, Increasing trade theunion, productivity training of this Employability refers to an individual’s ability to and national levels. Employability is the result asset, through improvements in education, fi nd, create, preserve, enrich a job or occupation, of processes and conditions occurring at many training, health and nutrition, is therefore one of and go from one to another obtaining in exchange levels – personal, familial and community, as well the keys to raising the earnings, improving their not only an economic reward but also a personal, as in the economic sectors, which determine the position and mobility in the labour market, and social and professional satisfaction. At the same magnitude and type of employment opportunities, reducing inequalities in income distribution. time, the external environment – labour markets, the content of policies and institutional actions the nature of employment opportunities that are that infl uence the operation of markets and Education and training enhance an individual’s available, infrastructure and mobility, and social investments, and the movement, education and employability and capacity to respond to and seize and cultural norms, infl uences employability. training of people. economic and employment opportunities. Skills development policies and programmes, Within the parameters posed by the national and OBJECTIVE while not responsible for generating employment, institutional environment, LGUs and local planners must support individuals so that they become have a role to play in supporting and directing This information tool discusses skills development more effective at identifying and capturing training opportunities in their areas, and ensuring and its role in enhancing people’s employability, opportunities, and transform them from being that these strengthen the employability of people. and raises some key issues that local planners and passive actors who are treated essentially as a development leaders should bear in mind when “labour supply or labour reserve” and recipients of TRAINING FOR EMPLOYABILITY planning and implementing skills development training courses, to active actors who have a role strategy in their local areas. in cultivating opportunities and developing their Following from the previous statements, training own “occupational projects”. for employability means:

International Labour Ofﬁ ce []Ó 201 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.02.05 xxx SKILLS DEVELOPMENTxxxxxxxx AND EMPLOYABILITY

• To strengthen the capacity of individuals so that KEY COMPETENCIES personal autonomy, knowing one’s rights and they enhance their occupational possibilities responsibilities and knowing how to exercise them, – This involves the development of key Technical occupation-specifi c skills that are in participation and leadership, and communication. competencies that they can use throughout demand now may be less in demand in the future their lives, not necessarily in the same job or or elsewhere. Key competencies are abilities that Local skills development strategies should aim productive activities. are valuable throughout one’s lives and across at enabling the local population to acquire these • To train individuals for continuous learning occupations. key competencies. Sessions or workshops and – This means learning how to learn, learning practical exercises that are aimed at building how to be, learning how to do and learning how Key competencies are crosscutting (across these competencies can be designed for particular to undertake. occupations) competencies, attitudinal groups, and incorporated in school and vocational • To support people so that they are able competencies and technical-sectoral training programmes. to identify internal and external obstacles competencies that are needed to build up a that interfere with the achievement of their versatile labour profi le. Men and women who Developing the key competencies of out-of-school objectives, and to appreciate the demands and possess these key competencies increase their youths and young people – women and men competencies required in the world of work – mobility to shift between jobs and occupations preparing for a professional life or at the beginning This includes sharing information and guidance and their capacity to search for employment of their work live – is especially valuable for them on the diversity of alternatives, demands and solutions – from independent employment, micro- and for the development of local communities. possibilities in the educational and labour entrepreneurial venture, employment in activities market; eliminating stereotypes that pigeonhole that can turn out to be competitive, etc. Mobility to jobs as being feminine and masculine; and shift from one occupation to another is especially orchestrating the search and/or generation of valuable in situations when jobs are lost or certain work. activities lose their market. • To stimulate and strengthen the capacity of each individual to defi ne and manage their Crosscutting and attitudinal competencies own professional or occupational path, which is include: self-confi dence, feeling of belonging to necessary in the uncertain setting in which work a group and team work, capacity to identify and life evolves and will evolve. analyse problems, planning and decision-making,

International Labour Ofﬁ ce []Ó 202 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.05 SKILLS DEVELOPMENTxxxxxxxx AND EMPLOYABILITY

RELEVANT RESOURCES CROSS-REFERENCES

• A Training Policy Model for Enhancing • Tool 4.02.06, Action Tool: Community-based Employability and Gender Equity: The training approach. FORMUJER Programme, Draft Version. • Tool 4.05.03.1, Information Tool: Gender: The Montevideo, ILO CINTERFOR, 2004. challenges of women and work. • ILO, Reader’s Kit on Gender, Poverty and Employment. Module 5. Investing in Human Capital: Focus on Training. ILO, Geneva, 2000. http://www.ilo.org/public/english/employment/ skills/informal/gpe/informa/pack/index.htm

International Labour Ofﬁ ce []Ó 203 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.02.06 INFORMATIONACTION TOOL TOOL

THECOMMUNITY-BASED START AND IMPROVE TRAINING YOUR APPROACH BUSINESS (SIYB) PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, especially affect school leavers or out-or-school services, including credit, technical assistance economic growth, entrepreneur, institution- youths who require skills which are actually “in and market information, to launch and sustain Thisbuilding, action management, tool discusses marketing, a systems micro approach and to demand”. Many of them migrate from rural to income generating activities. community-basedsmall enterprises, tradetraining. union, The training tool describes the urban areas in search of work, but only add to the elements and steps in planning, implementing and numbers of urban unemployed. The CBT differs from conventional vocational providing follow-up to skills training projects at the training programmes in three ways: community level. COMMUNITY-BASED TRAINING: OVERVIEW • It identifi es potential income generating INTRODUCTION The Community-Based Training (CBT) is a activities and related training needs before response to the training of rural and urban designing the content and duration of specifi c Employment and income generation continues poor for employment and income generation. training programs. to be the main strategy for alleviating poverty This was developed by the International Labour • It involves the local community directly in each in developing countries. However, the ability Organisation, together with national partners in phase of the identifi cation, design and delivery of developing economies to create wage many countries, based on years of experience in process. employment opportunities to meet the needs of community-based training programmes. • It facilitates the necessary post-training support an expanding labour force is increasingly limited. services, including credit, to ensure that Self-employment is an important alternative for The CBT consists of a set of procedures for individuals or groups can initiate and sustain many. Yet, support services and government systematically: the income generating activity for which training programmes that exploit self-employment was provided. potentials are few. In most countries, existing • Identifying employment and income generating training systems continue to be mainly designed opportunities at the local level, for formal wage employment and for occupations • Designing and delivering appropriate training The TREE training project in Mindanao uses or trades that do not exist in the informal sector. programmes, and the CBT, and this is presented in brief in Annex This narrow range of skills training opportunities • Providing the necessary post-training support 4/02/06 below.

International Labour Ofﬁ ce []Ó 204 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.06 COMMUNITY-BASED TRAINING APPROACH

MAJOR STEPS IN THE CBT The SC elects it own Chair and decides on the • Conduct of viability/feasibilities studies. frequency of its meetings. It agrees on the CBT • Selection of priority economic projects, where The CBT involves six (6) steps: project policies that are essentially based on training will be required, based on the results of the project document (PRODOC), including the the local surveys and needs analysis. STEP 1: INSTITUTIONAL PLANNING AND criteria for selecting target areas, benefi ciary PROGRAMME PREPARATION groups, local implementing partners and strategies In the current CBT practice, these economic for service delivery. projects have usually been non-farm and informal • Starts with the assessment of existing enterprises (e.g. product-oriented, service- government policies, programmes and priorities STEP 2: IDENTIFICATION OF ECONOMIC oriented, and construction-related). related to training for employment and income OPPORTUNITIES AND TRAINING NEEDS generation. A viability or feasibility study should be prepared • Identifi es existing training resources and This step is done at the level of the local for each selected priority economic project. Based additional needs in terms of programmes, communities selected for the CBT project based on the feasibility study, a Training Proposal is facilities, equipment, and personnel. on the criteria set by the SC. prepared for technical and fi nancial assistance of • Organises a Steering Committee (SC) to identify the CBT Project. target groups and areas which a CBT Project • Selection of the modalities for community shall cover. participation in the activities, and organisation The Local Training Committee and Local Resource • Organises trains and mobilises a project staff. of local structures, such as Local Training Committee start to be directly involved at this stage Committees (LTC), Local Resource Committee of the Project. The CBT project staff mobilises the The SC usually consists of a Training Agency (LRC) and Credit Sub-Committee. Committees by discussing with them the results (e.g. Tech-Voc), Department of Labour, Trade and • Training of local training and employment of the survey, the viability/feasibility study and the Industry, Employers’ groups, Trade unions, other coordinators from the institutional partners to contents of the training proposal especially the NGOs involved in training, and Local Government carry out surveys of economic opportunities and cost requirements and sources of funds. Units. The institutional partners usually sign training needs. a Memorandum of Agreement (MOA), which • Discussion of potential economic opportunities, indicates their roles, responsibilities, as well as and preparation of short-list of potential their contributions to the CBT project. activities.

International Labour Ofﬁ ce []Ó 205 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.06 COMMUNITY-BASED TRAINING APPROACH

STEP 3: TRAINING ORGANISATION AND At this stage, enterprise and entrepreneurship At this stage of the CBT methodology, the Credit- PREPARATION development modules are included in the training sub Committee is mobilised. The objective is to activities. The objective is to prepare the trainees link the trainee-graduates to credit providers or This step solely involves the preparation of training to implement their economic project based to discuss with them ways and means to raise activities. Under this step, the local CBT project on the viability/feasibility study. The trainees start-up working capital for the enterprise. Trainee- staff carries out the following preparations: decide on post-training activities such as raising graduates usually need direct and on-the-job capital or accessing credit, where to put their coaching in their fi rst enterprise ventures. This • Identifi cation and selection of the actual enterprise, how to acquire tools and equipment is the role of the CBT project staff to provide trainees, and production (or service) tools and equipment, technical advice in the start-up activities. • Recruitment or designation of trainers and how to market their products or services, how to instructors (usually from the national training sustain their enterprise and other related plans. STEP 6: MONITORING, EVALUATION AND agency or from the community) DOCUMENTATION • Development of training content and materials STEP 5: PROVISION OF POST-TRAINING SUPPORT (in certain cases training syllabus and materials SERVICES This step involves post-training collection of data are already prepared by the training agency) and information on the activities of the trainees. • Procurement of training tools and materials The fi fth step is the provision of follow-up services The CBT project staff carries out the monitoring • Preparation of training venue to the trainee-graduates. of the results of the training intervention on the • Preparation of training plans or schedules trainees, specifi cally: (i) how the skills acquired in • Group formation the training are being utilised; and (ii) the impact STEP 4: TRAINING DELIVERY • Linking the trainees with credit institutions or of the training on the lives of the trainees and their programmes communities. Experiences and case studies are • Organisation and conduct of training sessions • Creating revolving funds prepared for institutional studies and improvement and workshops • Assistance in developing and marketing the of the CBT methodology. • Monitoring of activities trainees’ products or services • Evaluation of trainee performance • Post-training advisory or consultancy services Monitoring and evaluation are centred on the • Feedback mechanism is put in place through on appropriate technologies rate of increase of monthly incomes of the trainee progress report and end-of-training reports benefi ciaries before and after the training. It • Completion of training

International Labour Ofﬁ ce []Ó 206 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.06 COMMUNITY-BASED TRAINING APPROACH

also focuses on the impact of the training on the RELEVANT RESOURCES CROSS-REFERENCES families of the trainees and on the communities. • International Training Centre of ILO, Community • Tool 4.02.5, Information Tool: Skills THE CBT MANUAL Based Training for Employment and Income development and employability Generation Manual, ITC of ILO, Turin. • Tool 4.03.05.1, Action Tool: Strategies for The CBT methodology prepared in non-specifi c • For more information, contact: ILO Manila. improving incomes and employment in the local country format is discussed in detail in a CBT economy Manual, consisting of six volumes corresponding to the six steps described above. Adaptations have already been made in many countries in accordance with specifi c situations and needs of the economy, the implementing agencies, and the specifi c needs of target groups.

International Labour Ofﬁ ce []Ó 207 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.06 COMMUNITY-BASED TRAINING APPROACH

Annex 4.02.06: ILO-TREE Project in Mindanao (An example of a community-based training approach)

The TREE Methodology is a people-centred, • Linking the Target Groups with the Formal compete with the formal economic sector. community-driven training strategy, which aims at Economic Sector creating economically empowered communities. The concept supports a transition economy It is managed by small corporate community The fi gure on the following page shows the for the poor under a market system. It is the groups operating mini economic systems that sequence and scope of these elements. missing mechanism in the on-going anti-poverty are catalysed by an indigenous community fund development intervention in Mindanao. scheme. Its development goal is poverty reduction TRANSITION ENTERPRISE PROJECTS OR TEP and social stability. The strategy involves skills and CORPORATE COMMUNITY GROUPS OR CCG entrepreneurship training, followed up by activities These are small, short-gestation, one-cycle that are planned and implemented by the target enterprise projects using practical and adult- A CCG refers to a small group of poor people groups (participants) themselves. oriented business forecasting techniques that are organised with corporate personality, trained, suited to the educational preparation of the target oriented and committed to social and economic TREE METHODOLOGY - ELEMENTS groups. The transition enterprises are designed development as a tool to fi ght poverty. to introduce basic corporate concepts such The TREE Methodology is composed of six as strategic time frames, markets, production, These are groups of 25 – 50 poor individuals who principal elements: fi nancing, and operations management. The are organised, registered, and provided training on objective is to initiate the target groups into the the economic principles, concepts and strategies • Practical and Rapid Community Assessment world of entrepreneurship through actual practice. of the TREE Methodology. Their operations and • Provision of Skills Training and Transition Furthermore, the TEP are designed to work within capability building revolve around fi ve basic Enterprise Development a Community Enterprise System run and managed elements such as skills training and enterprise • Implementation of Transition Enterprise Plans by the community and powered by their own development, community enterprise system, • Organising Small Corporate Community Groups Community Fund. The target groups are given community fund scheme, linking with the formal • Installing Community Fund and Community the opportunity of choosing whether to remain sector economy and continues skills upgrading, Enterprise System participating in a small rural economy that will be leadership training and group management energised through the TREE Project, or to join and development.

International Labour Ofﬁ ce []Ó 208 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.06 COMMUNITY-BASED TRAINING APPROACH

TRAINING FOR RURAL ECONOMIC EMPOWERMENT (TREE) METHODOLOGY

Institutional Development of Actors & Target Groups

Organizing Linking The CCG With Community Provision of Implementation of Installing Co-Fund & Corporate Communities & The Assessment & Training & Transition Enterprise Community Enterprise Community Groups Formal Economic Planning Capability Bldg. project System in the CCG (CCG) Sector

• Community • Production/service • Implementation • Organizing • Training the CCG • Management & assessment & skills training of Transition Corporate on the Co-Fund skills upgrading planning • Entrepreneurship Enterprise Plans Community scheme • Expanding • Identiﬁ cation training • Monitoring Groups (CCG) • Provision of start- individual and of economic • Preparation & Evaluation • Organizing up capital for the group enterprise opportunities & of Transition of transition the trainees Co-Fund projects needs Enterprose Plan enterprise into corporate • Training the CCG • Participation • Organizing (TEP) activities commuity groups on the workings in Community economic & • Provision of • Training members of a community development enterprose project technical advisory in group enterprise system & the formal ideas management economy • Preparation of system project or training proposals

SOCIAL & ECONOMIC PREPARATION PARTICIPATION IN DEVELOPMENT

Monitoring and Evaluation

International Labour Ofﬁ ce []Ó 209 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.06 COMMUNITY-BASED TRAINING APPROACH

The concept is neither a cooperative nor COMMUNITY FUND OR CO-FUND REFERENCE MATERIAL a people’s organisation but a “community corporation” energising rural economies in The Co-Fund is a micro-fi nance facility and • ILO-TREE Primer. ILO-USDOL Project, Project transition. scheme that is owned and managed by a CCG to Management Offi ce, Suite B 202, Plaza de power the community enterprise system and the Luisa Bldg. R. Magsaysay Avenue, Davao City, COMMUNITY ENTERPRISE SYSTEM OR CES individual enterprises of the members. It utilises Tel. Nos. (082) 225-19-72 and (082) 225- the principles of partnership venture in TEPs. 19-73 (Telefax), E-mail Address: ilodavao@ The CES is a mini economic system owned and It provides interest-free capital assistance and moscom.com managed by a CCG, powered by a Community- adopts profi t and loss-sharing scheme (Indigenous owned Fund or Co-Fund, and catalysed by a and Islamic fi nancing). It also promotes social structured methodology on training, enterprise entrepreneurship and socialised profi ts, total development, organising and linking with the participation in management, and individual and formal sector. group investments.

It is the basic economic system that is installed in The Co-Fund: the community structure through the corporate community groups (CCG). It revisits basic • Adopts to productive and acceptable indigenous principles of community economics, velocity of practices and religious tenets; money transfers through transition enterprises, • Catalyses employment and self-employment forward and backward linkages, developing among the members of the CCG; and, internal production and market systems, saving on • Is speciﬁ cally designed to address basic economic added values, primary and secondary economic theories and human development enterprise units, and linking with “big brother” principles. companies. The concept operates on the basic free capitalist It is based on the principle of freeing capital for principles and social enterprise. the poor, a real egalitarian and free enterprise system.

International Labour Ofﬁ ce []Ó 210 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.02.07 INFORMATION TOOL

THE START AND IMPROVE YOUR BUSINESS (SIYB) PROGRAM

OVERVIEWKEYWORDS: Business plan, capacity-building, THE SIYB PROGRAM GOALS economic growth, entrepreneur, institution- Start Your Business (SYB) was developed in 1991. Thebuilding, Start management,& Improve Your marketing, Business micro(SIYB) and The long term development goal of SIYB is to Since IYB focused on existing businesses, SYB programsmall enterprises, is a management-training trade union, training program with contribute to economic growth in general and was developed to address the needs of potential a focus on starting and improving micro and small the creation of more and better jobs in micro and micro and small-scale entrepreneurs who wanted businesses as a strategy for creating more and small enterprises (MSEs) in particular. to start a business, but did not know how. better employment in developing economies and economies in transition. The short-term development goal is to strengthen Start & Improve Your Business is today a globally local business development service (BDS) recognized ILO trademark and the program has OBJECTIVE providers to deliver business management training been introduced in more than 80 countries. that will make it possible for micro and small- This tool describes the goals, history, scale entrepreneurs to start and improve their IMPLEMENTATION STRATEGY implementation strategy, and components of the businesses, thereby creating sustainable jobs for SIYB Program. This tool is lifted almost entirely themselves and for others. The program follows an institution-building from the Start and Improve Your Business strategy by working with existing local and national Program website-http://www.ilo.org/dyn/empent/ THE HISTORY organisations. SIYB project staff train trainers from empent.portal?p_docid=SIYBHEAD&p_prog=S&p_ Partner Organisations (POs) who in turn train the subprog=BD Improve Your Business (IYB) started as a training micro and small-scale entrepreneurs. program - “Look After Your Firm” - developed by the Swedish Employers’ Federation in the The cost of training trainers is covered by the SIYB early 1970’s. In 1977, the Swedish International project, but cost recovery of training entrepreneurs Development Authority (SIDA) funded a project is the responsibility of the PO. Often this is a mix within the ILO that adapted the original Swedish between participant’s fee and a small subsidy initiative to the needs of small-scale entrepreneurs provided by the organisation. in developing economies.

International Labour Ofﬁ ce []Ó 211 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.07 THE START AND IMPROVE YOUR BUSINESS (SIYB) PROGRAM

To ensure sustainability, SIYB projects seek to business but have vague ideas about what to do. The Business Awareness module consist of a create a market culture in which POs charge The training is designed to support such potential Handbook and a Workbook, which through a the full cost for providing the training and entrepreneurs in generating a feasible business number of steps and exercises aims at sensitising entrepreneurs are willing to make the initial idea that matches their entrepreneurial skills as entrepreneurs to the basics of what is required to investment and pay for the service provided. This well as the needs in the local communities. The run a business. It focuses on: strategy makes it possible for SIYB to reach large GYBI material consists of one Handbook including numbers of entrepreneurs. When donor funding exercises and it focuses on: 1. Business idea stops and pilot projects are phased out, local and 2. Challenges in starting a business national institutions continue delivering training to 1. Entrepreneurial characteristics 3. Swot analysis of business idea entrepreneurs. National master trainers who have 2. Personal assessment 4. Develop business idea into business plan been educated during the course of the project 3. Identiﬁ cation of a good business idea 5. Estimate start up capital assist the POs. 4. SWOT analysis of business idea 6. Action plan for starting the business

TRAINING OF ENTREPRENEURS The main outcome at the end of the training is a The Business Planning module consists of a concrete business idea that suits the participants’ Handbook and a Workbook and focuses on more The SIYB training interventions basically consist of personal characteristics. It may also happen in speciﬁ c management skills needed to run a 4 packages: the course of the training that some participants business. The training assists entrepreneurs step- decide that they should not go into business. by-step in developing their own business plan by 1.Business idea generation training (GYBI) going through the following 10 steps: 2. Business start-up training (SYB) 2. Start Your Business (SYB) 3.Business management training (IYB) 1. Business idea 4. Advanced business management training (EYB) SYB targets potential micro and small-scale 2. Marketing entrepreneurs who already have a realistic 3. Managing people 1. Generate Your Business Idea (GYBI) business idea as well as those who have been 4. Legal responsibilities running a business for less than 12 months. The 5. Estimation of sales revenue GYBI training targets potential micro and small SYB programme consists of a Business Awareness 6. Start-up capital entrepreneurs who are eager to start their own and a Business Planning module. 7. Setting prices 8. Cash ﬂ ow planning

International Labour Ofﬁ ce []Ó 212 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.07 THE START AND IMPROVE YOUR BUSINESS (SIYB) PROGRAM

9. Develop and analyse business plan The main outputs of the training are specifi c TARGET GROUPS 10. Action plan for starting business actions that the participants should implement to improve their business in any or all of the above The ultimate benefi ciaries are potential and The main output of the training is a simple areas. existing micro and small-scale entrepreneurs. business plan that the participants can use to Direct benefi ciaries are Partner Organisations raise start-up funds from family, investors, or 4. Expand Your Business (EYB) (POs), which go through a capacity building banks. process before they provide SIYB training to EYB is for growth-oriented enterprises that have entrepreneurs. 3. Improve Your Business (IYB) been established for many years and now wish to expand business operations, yet does not know Partner organisations can be private or public IYB is for business owners and managers who quite how. The needs of growth-oriented fi rms are sector, profi t or non-profi t business development have been running a business for more than substantially different from those of the businesses service (BDS) providers, government departments, 12 months. It deals with business management participating in SYB and IYB training. chambers of commerce, trade unions, quasi- concepts in a detailed manner by applying a governmental small enterprise development modular approach based on the training need of The EYB kit consists of one detailed Handbook, organisations, NGOs, business associations and the business owner. which focuses on advanced management training consultancy companies. in the areas of: The IYB material kit consists of a set of six To qualify as partner organisations, these manuals each of which deals with one particular 1. Financial management institutions will usually have element of a basic business management system: 2. Sales and marketing management • A mandate for small enterprise development 3. Strategic management • A focus on supporting micro, small and 1. Marketing 4. Human resource management medium-sized enterprises 2. Buying 5. Export links • A portfolio comprising one or several business 3. Stock control development services 4. Costing The main output of the training is a strategic • A track record in training 5. Business planning business expansion plan. • Resources or access to resources 6. Record keeping • Network linkages to other local business support services providers

International Labour Ofﬁ ce []Ó 213 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.02.07 THE START AND IMPROVE YOUR BUSINESS (SIYB) PROGRAM

In the long term, the goal of SIYB is to contribute RELEVANT RESOURCES TARGET GROUPS to economic growth in general and the creation Direct Benefi ciaries are Ultimate Benefi ciaries of more and better jobs in micro and small • ILO, Start and Improve Your Business training organisations such as: are individuals who: enterprises (MSEs) in particular. package. http://www.ilo.org/dyn/empent/ Employers’ Have a business idea empent.portal?p_docid=SIYBHEAD&p_ Associations prog=S&p_subprog=BD Trade unions Are forced to fi nd self- employment For more information, contact: ILO Resource Centre, SRO Manila. Chambers of Have or have access to commerce vocational skills Business development Can read and write CROSS-REFERENCES providers SED organisations Want to start a • Tool 4.01.01, Action Tool: Strategies for making business your local economy grow • Tool 4.02.01, Action Tool: Approaches to local Vocational & technical Want to improve their schools business job creation Community based Want to expand their organisations business

International Labour Ofﬁ ce []Ó 214 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.07 INFORMATION TOOL

THEPART START FOUR ANDSECTION IMPROVE THREE: YOUR MAKING BUSINESS LOCAL (SIYB) DEVELOPMENT PROGRAM BENEFIT THE POOR

INTRODUCTIONKEYWORDS: Business plan, capacity-building, Part 4 – Section Three focuses on these protection, suggests methods for assessing risks economic growth, entrepreneur, institution- individuals and groups. The tools suggest and vulnerabilities, and offers practical steps and Certainbuilding, individuals management, and groupsmarketing, of people micro and strategies for poverty reduction, focusing on ways of extending social protection at the local experiencesmall enterprises, more deprivation trade union, because training of the lack poor communities. Emphasis is given to social level. Special attention to women’s speciﬁ c needs of decent work and higher exposure to risks than protection and improving access to ﬁ nancial is called for. others, because of geographical location, age, sex, resources.This section contains tools that explain occupation, physical condition, etc. the concepts of risks, vulnerability and social

International Labour Ofﬁ ce []Ó 216 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.03.01 INFORMATION TOOL

THEWHO START ARE THE AND POOR? IMPROVE WHAT YOUR DOES BUSINESS IT MEAN (SIYB)TO BE POOR?PROGRAM

OVERVIEWKEYWORDS: Business plan, capacity-building, HOW DO WE CONCEIVE POVERTY? of dignity, powerlessness or inability to make economic growth, entrepreneur, institution- any change in one’s life. Poor people, when Povertybuilding, reduction management, is the marketing,overarching micro goal ofand the Poverty is material deprivation: The conventional, they are asked to assess their situation have Philippinesmall enterprises, Government. trade union,Local Government training Units traditional concept of poverty is material often stressed their perceptions of poverty in have a responsibility for poverty diagnosis and deprivation, measured against a material standard terms of ‘vulnerability’, ‘lack of self-respect’ and formulation of local poverty reduction action plans. of well-being, such as a level of food consumption ‘powerlessness’. But the choice of concept and defi nition of poverty or the extent to which households have access is critical. It determines how poverty is analysed to basic services such as primary child health The Basic Needs Strategy of the International and what poverty eradication goals and targets care, potable water and shelter. The “poverty Labour Organization, conceived in the 1970s, are we set. It drives the choice of strategies and line” is a monetary measurement of a household’s expanded the notion of poverty beyond income policies for eradicating poverty. A broad defi nition consumption (expenditure or income) of minimum and consumption to encompass other essential of poverty, which includes more than income or food requirements and essential or basic needs. elements of well-being, notably those that are consumption level, implies a different thinking It should include the monetary value of goods usually provided partly or completely outside the about the strategies to reduce poverty. and services provided free by the Government market mechanisms, such as education, health, and the local community, but the poverty line water supply and housing. In addition, the basic OBJECTIVE often uses only private expenditure or income needs concept included access to participation in because of diffi culties in measuring consumption decision-making in society. This tool of state-provided commodities and access to other • Defi nes the concept of poverty and its resources. Poverty is a dynamic process: Poverty is not only dimensions about the satisfaction (or absence of satisfaction) • Explains how poverty is related to inequality and Poverty is broader and includes material and of a person’s basic needs (health, knowledge social exclusion non-material dimensions: Since the 1990s, it or education, nutrition). But it is also about a • Clarifi es how poverty is measured has become widely recognised that poverty goes person’s capability to meet his/her needs, which beyond material deprivation to include other include physical but also social, psychological non-material forms of deprivation, such as loss needs. Poverty means lack of resources (e.g.

International Labour Ofﬁ ce []Ó 217 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.01 WHO ARE THE POOR? WHAT DOES IT MEAN TO BE POOR?

human and physical capital) that enable people to HOW POVERTY IS RELATED TO INEQUALITY (e.g. arising from attitudes towards disadvantaged create, initiate, sustain or improve their livelihoods. AND SOCIAL EXCLUSION ethnic groups, or vicious circles in the case of less Poor people generally have few assets. Most educated children of less educated parents). of them continue to be poor because they are POVERTY AND INEQUALITY excluded or marginalised from many development The most widely used measures of inequality opportunities and services. Inequality is different from poverty but related (income, consumption, assets) generally look at to it. Inequality concerns variations in living inequalities between households. This fails to People meet their needs through a variety standards and the distribution of income, wealth take into account inequality between individuals of resources, and they gain access to these and resources across a whole population. Poverty in the same household. Nutritional indicators are resources through a variety of institutional focuses only on those who below a certain commonly used for measuring inequality between relationships, such as the market, family and kin, threshold level (such as a poverty line). individuals. It is also important to consider the community, and the State. Cash income from inequality between groups of people, for example, paid work obtained through the labour market or Inequality between people (or groups of people) how one ethnic group compared to another. from selling goods produced from own-account can cover many dimensions, such as education, production is only one of these resources. Other health and nutrition, security, power, social Small changes in income distribution can have resources include common property resources inclusion, income or consumption, and assets. large effects on income poverty – headcount, that are obtained free in rural areas, usually depth and severity of poverty. Inequality also governed by traditional rules of the community, Inequality in living standards is more easily affects poverty indirectly through its impact on and free health and primary education services observed. But inequality in opportunities is growth. Income distribution is one of determinants provided by the State. as important, although seldom examined. of economic growth. A substantial component of inequality in Rules, relationships and traditional practices people’s living standards may reﬂ ect inequality POVERTY AND SOCIAL EXCLUSION govern an individual’s access to resources and of opportunities, with people favoured or services from the family and kin, community, disfavoured according to where they live, parental Social exclusion can be regarded as a description markets and State. Such rules and practices circumstances and so on. The relative importance of individual disadvantage – a situation where entitle people to resources differently, and often of these different sources of inequality is important one has no access (or is denied access) to unequally, on the basis of gender, ethnicity, age in discussing appropriate policy responses. Some resources, goods and services because of rules, and other social factors. processes could be persistent or inter-generational practices, institutions and social relationships. For

International Labour Ofﬁ ce []Ó 218 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.01 WHO ARE THE POOR? WHAT DOES IT MEAN TO BE POOR?

example, labour, credit and insurance markets language, religion, political or other opinion, Vulnerability may be caused by lack of economic are fundamental for livelihood and security. In national or social origin, property birth or other resources to protect persons/households from these markets, certain groups of people may be status, and which has the purpose of nullifying or the effects of sudden shocks and contingencies excluded because they are considered high credit impairing the recognition, enjoyment or exercise (death, drought) but often is induced by the mere or insurance risks, or because they belong to by all persons, on an equal footing of all rights and fact of belonging to an ethnic group, or gender, stigmatised social groups regarded by employers freedoms. and hence low status and limited access to social or creditors as less reliable, less trustworthy, networks. or less productive. In all these markets, a Many forms of discrimination continue to be person’s rights (e.g. property) and social identity practised worldwide: in all regions of the world, HOW POVERTY IS MEASURED (characteristics such as their language, race, people are denied rights to franchise, political sex, kinship, education, occupation, religion and participation and the exercise of citizenship The National Anti-Poverty Commission (NAPC), geographical origin) act as basis for rationing and because of some real or perceived distinction. National Economic and Development Authority access. Social exclusion often leads people into They may be denied equal rights to food, shelter, (NEDA) and the Department of the Interior poverty. work, health care, education or credit. and Local Government (DILG) have prepared A Guidebook for Local Poverty Diagnosis and POVERTY AND DISCRIMINATION Planning, which gives a conceptual framework POVERTY AND VULNERABILITY for looking at the processes that lead people Discrimination based on ethnic origin, sex, creed into poverty and guides Local Government Units or social group can lead to, and also make it The poor, and particularly women, are often in local poverty diagnosis and planning of local more diffi cult to escape from poverty. However, described as “vulnerable groups”. “Vulnerability”, poverty reduction strategies and programmes. discrimination may occur outside the context of defi ned as greater exposure to risk and insecurity, poverty. often accompanies poverty and contributes to it, but it is not a synonym for poverty. If a household Discrimination is defi ned as any distinction, contracts debt, its income may increase and exclusion, restriction or preference which is based may go beyond the “poverty line”. However, its on any social group such as sex, race, colour, exposure to risk may also have increased.

International Labour Ofﬁ ce []Ó 219 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.01 WHO ARE THE POOR? WHAT DOES IT MEAN TO BE POOR?

CROSS-REFERENCES

• Tool 1.02, Information Tool: The Decent Work Framework • Tool 2.02, Assessment Tool: How to measure and monitor decent work gaps at local level • Tool 4.03.04, Information Tool: Local poverty monitoring and target setting: Philippine MBN approach • Tool 2.05, Information Tool: Integrated Rural Accessibility Planning (IRAP)

International Labour Ofﬁ ce []Ó 220 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.03.02 INFORMATION TOOL

THERELEVANCE START ANDOF DECENT IMPROVE WORK YOUR TO BUSINESS LOCAL POVERTY (SIYB) REDUCTION:PROGRAM DIAGNOSIS AND ACTION

OVERVIEWKEYWORDS: Business plan, capacity-building, OBJECTIVE social beneﬁ ts (such as health insurance, accident economic growth, entrepreneur, institution- insurance in case of injuries on the job, maternity Povertybuilding, reduction management, is the marketing,overarching micro goal ofand the This information tool: beneﬁ ts). Philippinesmall enterprises, Government. trade union,Local Government training Units • Explains how Decent Work complements and have a responsibility for poverty diagnosis and adds value to the current Philippine framework There are three other ways through which people formulating local poverty reduction action plans. for poverty diagnosis and poverty reduction can meet their basic needs for survival (food and The National Anti-Poverty Commission (NAPC), planning at the local level nutrition, health, water and sanitation, clothing, National Economic and Development Authority • Suggests how poverty diagnosis can be shelter) and improve the quality of life: (NEDA) and the Department of the Interior improved with a few additional information on and Local Government (DILG) have prepared “decent work gaps” • Social support from spouse, family, clan or “A Guidebook for Local Poverty Diagnosis and community – particularly for those who are Planning”, which gives a conceptual framework VALUE-ADDED OF THE DECENT WORK economically dependent such as young for looking at the processes that lead people FRAMEWORK children, the sick and elderly; and for adult into poverty and guides Local Government Units workers in case of loss of income or inadequate in local poverty diagnosis and planning of local FIGHTING POVERTY THROUGH WORK income poverty reduction strategies and programmes. • State provision – basic goods or services in case From the Decent Work perspective, employment of substantial reduction in or loss of income; Decent work is one strategic way out of poverty. At (productive and remunerative work) is one of guarantees a minimum level of living for the the same time, poverty in many situations is the the strategic ways out of poverty. Income from whole population result of problems and shortfalls in decent work. employment gives individuals and their families a • Social insurance – to replace lost income due Therefore, it is important to understand what these command over goods and services necessary in to risks and life contingencies (e.g. death of decent work problems are, and to address them in meeting basic needs. Income from employment breadwinner, sickness, accident) or calamities poverty reduction strategies. also allows individuals and their families to (e.g. typhoon, volcano eruption, El Niño) for a contribute to a social insurance or to be eligible for certain amount or period

International Labour Ofﬁ ce []Ó 221 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.02 RELEVANCE OF DECENT WORK TO LOCAL POVERTY REDUCTION: DIAGNOSIS AND ACTION

The State could give people access to these POVERTY CAN PARTLY BE TRACED TO “DECENT earnings suffi cient for only certain periods goods and services through public transfers and WORK GAPS” of the year. Income falls below subsistence subsidies but the coverage of State-provisioning level during certain months. depends on the availability of public resources Although productive employment is a route out of – Employment or livelihood that is irregular and on the priorities of fi scal policies (tax, public poverty, defi ciencies in employment, or “decent or unpredictable: Some occupations are expenditure) at a certain period of time. But it is work gaps”, often lead people and families into “no work-no earnings”, or “no catch- neither feasible nor sustainable to rely mainly on poverty and prevent them from breaking out of it. no earnings” occupations, thus provide public transfers and subsidies. Moreover, public no income security. Examples of such transfers cultivate and perpetuate dependency It is therefore not enough to identify those who occupations are coastal fi shing, day labourer, and dole-out mentality, and erode self-respect. have work and those who have no work. It is doing laundry for other households. For equally important to assess the kind of work (some some, the days when there are no earnings Social support from family, relatives and the qualitative aspects) people are engaged in. to buy food or medicines are not few but community in case of need is an indigenous, common. traditional and widely common form of social The qualitative aspects of employment that are – Wage employment could be regular but protection. These often take the form of group- directly related to income poverty are: adequacy offers no job security (e.g. short-term based self-help and social insurance schemes. of earnings or level of wage rates, and the duration, can be terminated anytime Indigenous forms continue to play a signifi cant regularity, security and stability (or irregularity without cause, no contractual obligation; no role in the lives of local communities. These and precariousness) of employment and thus of dismissal benefi t to help worker while she/he schemes have two main limitations: situations income. seeks a new job) where whole communities are at risk (e.g. whole villages devastated by fl ood or typhoon, crop Examples of qualitative aspects of employment that • Inadequacy of earnings harvests destroyed by locusts or drought); and contribute and perpetuate income poverty: – Low wage rates (wage employment) benefi ts are small and often highly inadequate to – Below subsistence earnings even if compensate loss of income. • Lack of stability and security of work and one works for long hours, because of income: low productivity (due to few skills, poor – Employment or livelihood that is seasonal: technology, etc.) and poor markets (in Some occupations, such as farming, fi shing, the case of own-account workers, small fruit harvesting, are seasonal and generate

International Labour Ofﬁ ce []Ó 222 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.02 RELEVANCE OF DECENT WORK TO LOCAL POVERTY REDUCTION: DIAGNOSIS AND ACTION

producers or micro business operators). • Discrimination and unequal treatment with are costly and cannot be met by one’s earnings – Seasonality and irregularity of work respect to recruitment, promotion, wages, type such as sickness and accident. In this way, of occupations, skills training, access to micro- social protection coverage contributes to the • Unacceptable work, which perpetuates the credit, and other resources necessary to secure improvement of the survival needs and well- vicious cycle of poverty an employment being of workers and their families. Workers – Child labour: work performed by children – Based on gender who are commonly unprotected and have no or young persons below the minimum age – Based on ethnic group, language, religion means to deal with these risks are: casual wage (below 15 years old) for employment that is – Based on other grounds workers; contractual workers; home-based considered inappropriate for their age and workers under subcontracting arrangements; maturity and endangers health, safety and • Hazardous working environment (work places domestic helpers; workers in micro and morals especially in hazardous occupations and occupations), which damages ones health small establishments; artisans, own-account and without the supervision of and guidance and capacities to work, and causes diseases workers, and small producers, farmers, ﬁ shers, of their parents or legal guardians. Child and/or accidents. Health and safety hazards are business-owners-operators; street vendors and labour means loss of education and loss costly (ﬁ nancially and socially) to the individual, other mobile workers in the informal economy. of future opportunities for decent jobs his/her family, the LGU and the community. and incomes. But child labour in wage Some occupations are more hazardous to • Social dialogue gaps - no voice, no employment is often a survival strategy of health and life than others. Although what is representation, a situation where one has no families living in poverty especially in areas hazardous to men and women is generally say over matters that affect one’s work and where children are regarded as a source of the same, women may be more vulnerable income, where there are legal and social/ cheap labour. to certain hazards than others due to their political obstacles to freely chosen organisations – Forced labour: a situation where a person is reproductive health concerns. and representatives, or where workers are obliged to work or perform a service under excluded from consultative and planning bodies threat of penalty, and for which a person • Absence or inadequacy of social protection, in the local community. The Guidebook for has not offered himself or herself for work a situation of vulnerability to loss of work and Local Poverty Diagnosis and Planning places voluntarily, such as work to ay off a debt and income because one has no resources or strong importance on the participatory process. slavery. People in extreme poverty by debt entitlements (rights) to programmes that would The presence of social dialogue gaps inhibits and by need are vulnerable to forced labour cover, to a certain degree, the substantial loss the participatory process. situations. of income, or to certain life contingencies that

International Labour Ofﬁ ce []Ó 223 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.02 RELEVANCE OF DECENT WORK TO LOCAL POVERTY REDUCTION: DIAGNOSIS AND ACTION

The following section shows how Philippine be traced to “decent work gaps”. It is therefore MBN-CBPIMS poverty indicators (such as MBN indicators) can important as a ﬁ rst step to determine these be used to measure “decent work gaps”. “decent work gaps”. • Head of household gainfully employed • Other members of the household 18 years old Part 4 of this Resource Kit contains action tools on USEFUL MBN INDICATORS ON INCOME AND and above gainfully employed ways to address problems and issues. EMPLOYMENT • Household with above poverty threshold level • Children below 18 years old engaged in USING THE PHILIPPINE POVERTY The MBN-CBPIMS and CBMS monitoring systems hazardous occupation INDICATORS TO MEASURE “DECENT WORK provide some information on “decent work GAPS” gaps”. Employment and income are the poverty CBMS Indicators (Guidebook) aspects that are assessed by current poverty The analysis of the employment and livelihood monitoring tools of Philippine LGUs (such as the • Proportion of households with income greater situation in the local community would lead to the MBN-CBPIMS, CBMS). These poverty-monitoring than the poverty threshold identiﬁ cation of alternative strategies and options, tools include 2-3 indicators on income and • Proportion of households with income greater including: employment: than the food threshold • Proportion of households who eat less than 3 • Improvement of productivity and markets of MBN Indicators (MBN Approach, 2000) meals a day existing sources of incomes; • Employment rate • Creation of alternative sources of income during • Head of family employed low season, taking into account workload, and • Other family members 15 years old and above But there is a limitation of MBN income and overall livelihood systems; employed employment indicators: • Promotion of new areas of employment, and • Families with income above subsistence business development. threshold level The above-mentioned income indicators will show • Children 18 years old and below not engaged in that there is a problem of low or subsistence In order to design strategies on employment and hazardous occupation income in the community. But, these indicators incomes, one needs to know where the problem will not show the problem of income insecurity or lies. As said earlier, part of the problem may irregularity of work, and will not capture the other

International Labour Ofﬁ ce []Ó 224 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.02 RELEVANCE OF DECENT WORK TO LOCAL POVERTY REDUCTION: DIAGNOSIS AND ACTION

aspects of work that actually cause poor incomes. WHO ARE ENGAGED IN POOR QUALITY adaptability and readiness to learn and try new In order to formulate a poverty reduction strategy OCCUPATIONS? things are assets. that focuses on employment and income, we need to understand much better the nature and Further analysis of the employment situation patterns of employment or sources income in the would identify WHO are engaged in these poor RELEVANT RESOURCES community, the problems and the causes for low quality occupations. Are they men or women, (subsistence or below subsistence) and irregular mothers with young children, teenagers still living • ILO, Working out of Poverty, Geneva 2003 incomes. with their parents or adult relatives, adult men http://www.ilo.org/public/english/standards/relm/ with young families, or persons belonging to a ilc/ilc91/pdf/rep-i-a.pdf ADDITIONAL INFORMATION TO STRENGTHEN particular ethnic group or tribe, community in the CURRENT MBN INDICATORS upland or island barangay, etc? CROSS-REFERENCES The LGU could improve current poverty data by: WOMEN’S EMPLOYMENT PATTERNS • Tool 1.02, Information Tool: The Decent Work • Looking at the nature of employment - which We need to pay attention to women’s as well as to Framework occupations and livelihoods suffer from men’s employment patterns and opportunities. We • Tool 2.02, Assessment Tool: How to measure insecurity and irregularity of income? often forget to differentiate the livelihood activities and monitor decent work gaps at local level • Looking at individuals, not only at households of young and adult women. Women play important • Tool 2.05, Information Tool: Integrated Rural - What proportion of all workers (above 15 roles in the livelihood systems in communities but Accessibility Planning (IRAP) years old, not only household heads, not only these are usually invisible because we look only • Tool 4.03.1, Information Tool: Who are the poor? breadwinners, not only husbands) in the or primarily at the male breadwinner. Moreover, What does it mean to be poor? barangay and municipality are in seasonal, we relegate women to household or home-based • Tool 4.03.04, Information Tool: Local poverty irregular and insecure occupations? What work. monitoring and target setting – Philippine MBN proportion of all workers are in occupations with approach subsistence earnings? THE YOUTH

We need to pay attention to the youth as a separate group. Their skills, expectations and

International Labour Ofﬁ ce []Ó 225 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.03.03 INFORMATIONASSESSMENT TOOLTOOL

THEANALYSING START ANDLIVELIHOODS IMPROVE OF YOUR POOR BUSINESS COMMUNITIES (SIYB) ANDPROGRAM AREAS

OVERVIEWKEYWORDS: Business plan, capacity-building, WHY ANALYSE LIVELIHOODS? gainfully employed or how many households lie economic growth, entrepreneur, institution- below the subsistence income level. Mostbuilding, people management, in poor regions marketing, and communities micro and A livelihood analysis is useful for: aresmall engaged enterprises, in a constant trade union, struggle training to secure a RELEVANCE TO DECENT WORK livelihood in the face of very difﬁ cult conditions. • Designing and implementing effective poverty People’s livelihood and the quantitative and reduction measures Poverty and decent work gaps occur and persist qualitative aspects of decent work affect each • Designing ways to promote gainful, decent in the context of the forms of livelihood that people other. employment undertake or are obliged to follow. • Analysing the local situation, and prioritising the OBJECTIVE ways forward for local development The sustainable livelihoods framework helps us • Identifying ways to enhance people’s livelihood better understand decent work gaps and how we This assessment tool: strategies and livelihood goals (increased can reduce these gaps. The analysis of decent • Explains the sustainable livelihoods framework, income, better health, etc.) work gaps enriches the analysis of livelihood which is an approach for understanding how strategies. There is a two-way interaction between livelihoods develop, and for designing ways to A livelihood analysis begins with people, and people’s livelihood strategies and decent work. support livelihood strategies especially of people it looks especially at the situation of people living in poverty living in poverty, those who are marginalised, or • Livelihood strategies entail some form of work • Suggests and describes methods for gathering “vulnerable groups”. (whether paid or unpaid; for own-consumption, information or data that can be used to analyse cash payment or exchange; in a factory, at livelihoods It is important to look at how people earn a living. home or on a farm; and so on), which possess It is not enough to know how fast or how slow quantitative and qualitative “decent work” The analysis of livelihoods in local areas the local economy is growing (gross domestic characteristics or “decent work gaps”. These complements the assessment of the local product), how much income or jobs agriculture or characteristics inﬂ uence livelihood outcomes. economy (Tool 2.03) and decent work gaps (Tool manufacturing is creating, how many people are 2.02).

International Labour Ofﬁ ce []Ó 226 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

• At the same time, decent work gaps infl uence • The capability of individuals and groups to does not degrade or destroy the natural resource people’s livelihood strategies. For example, exercise choices may be constrained by social base. because farming is seasonal and generates (e.g., beliefs and practices) and governance inadequate income, subsistence farm families factors (e.g., nepotism, corruption, etc.) that are Vulnerability context are the conditions that affect would adopt livelihood strategies to survive not immediately obvious. the life of a villager, household or group. The during the lean months and to reduce income context consists of long-term trends (climate, risks (drought, pest, etc). SUSTAINABLE LIVELIHOODS - BASIC national politics, economic conditions) and short- DEFINITIONS term sudden shocks (sudden price fl uctuations, Analysing livelihoods offers a basis for improving violence, fi ghting). poverty reduction strategies and providing decent The Sustainable Livelihoods Framework is a way employment because it takes an all round view of of looking at how an individual, a household or a Assets or capital are resources that an individual, the circumstances of the poor: community behaves under specifi c conditions to household or group can make use of to make survive and make a living. The different elements a living. There are 5 types of assets – human • What appears to be the main source of of the framework (see fi gure below) defi ne the (skills, knowledge, good health, time, etc); natural household income might actually be making a context in which villagers or village communities (trees, land types, clean air, coastal resources, smaller contribution to the family livelihood than make their living. The framework shows the etc); physical (water supply, transport system, is expected from initial impressions inter-relationships between assets, policies and energy, roads, etc.); fi nancial (bank deposits, cash • Limited access to assets varies from group institutions, and other factors that cause problems savings, etc); and social (relationships of trust, to group, from place to place and from one or create opportunities. informal networks with neighbours, membership income level to another. Poorer groups typically in organisations, access to political power holders, have more limited access to assets and are Livelihood: Comprises assets (material and non- etc). more constrained in their choice of livelihood material or social resources), capabilities and strategies than richer groups activities that people require for a means of living Policies, institutions and processes are the existing • Different social groups in the community (not just people’s employment opportunities). social and institutional arrangements within which typically experience different risks in their Sustainable livelihood: A livelihood that can cope individuals, households and groups construct and livelihoods; these need to be understood if with and recover from stresses and shocks, and adapt their livelihoods. It determines their access vulnerability is to be reduced. can be maintained and enhanced (improved, to assets and opportunities, and their returns to strengthened, and expanded). It is a livelihood that (gains from) assets and livelihood strategies. It

International Labour Ofﬁ ce []Ó 227 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

A Framework For Analysis BASIC STEPS IN ANALYSIS

Sustainable Livelihoods Framework First step involves discussions and gathering information about people’s livelihoods in a particular place (a region, province, municipality Livelihood or city) and how livelihoods have changed Assets over time. It looks in detail at shocks, trends Human and seasonality in relation to the main types of livelihoods of local people. Natural Policy, Vulnerability Social Livelihood Livelihood Institutions & Context Strategies Outcomes Processes Second step involves an identiﬁ cation and analysis Physical Financial of the available assets that vulnerable people utilise. Assets are not just related to what most people ‘own’ (such as household items) but also includes skills, assets in the natural environment consists of: government agencies, private business Livelihood outcomes are the achievements or (such as forests, ﬁ sheries), assets in relation to organisations, NGOs, laws and regulations, results of livelihood strategies. Outcomes can be labour, and assets in terms of social relations policies, etc. Some rules are informally applied. examined in relation to the following: (such as political connections or self help groups). See the types of assets in the previous section. Livelihood strategies are the combination of • More income, activities and choices that people make in order • Increased well-being, Third step examines the vulnerable peoples’ to achieve their livelihood goals. These include: • Reduce vulnerability, knowledge of and interactions/effects of policies how people combine income generating activities; • Improved food security, (both national and local), institutions (both the way they use their assets; which assets • More sustainable natural resource base, government and non-government) and processes they choose to invest in; how they manage and • Social relations and status, (in terms of people’s access). Some useful preserve existing assets and income. • Dignity and self-respect. ‘tools’ to guide discussions with small groups or individually are given below. In total, these steps constitute an “overview of local livelihoods”.

International Labour Ofﬁ ce []Ó 228 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

Skill and care are needed to understand what • Know when to stop data collection. It is groups; one must guard against this by ensuring really matters and which are likely to be critical important to avoid spending too much time and that all view points of silent groups are included. steps in reducing poverty. Throughout the process, resources on information collection and have the above framework and various tools should be little time and resources for analysis. Individual and household case studies used fl exibly and as required. – constitutes more detailed information than key OVERVIEW OF PRINCIPAL RESEARCH informant interviews. These typically involve semi- SOME USEFUL TIPS METHODS structured list of questions allowing for a mixture of qualitative and quantitative data to be collected. • Begin by obtaining a broad understanding or This section presents and describes some of the Ideally individuals and households are purposively overview of livelihoods. This can lead later to research methods and tools that could be used for selected to represent different livelihood in-depth investigations. obtaining information. circumstances so that a range of experience can • The scale of enquiry should match the scope be compared. Because random sampling method and needs of the local plan or proposed RAPID APPRAISAL METHODS is not used, there is danger that cases chosen support. You might decide that you need only represent interviewer’s biases or not typical of a general understanding of issues, which could Secondary data – information and statistics certain group of people. Case studies should be covered by low-cost informal research that are already available, including reports of always be used together with other methods methods. Or you might want to carry out a government, academic institutions, NGOs rigorous analysis of all aspects of the livelihoods, PARTICIPATORY RESEARCH METHODS and use individual, household and group Key informants – are individuals who are research methods. Multi-sectoral and large approached for their views on livelihood issues, Participatory research methods are suitable for projects require a broad livelihood investigation. using semi-structured list of questions. For collecting qualitative information, ordering of Small and narrowly focused projects do not livelihood analysis, the key informants should priorities and preferences, income and wealth need the same broad research. be diverse – government offi cials, private ranking, and the purposive involvement of social • Detailed investigations may be needed where entrepreneurs, traders, community leaders, groups in problem solving. These methods there is lack of clarity about benefi ciaries, or teachers, farmers, women of different ages and are useful for analysing historical, social and understanding about the circumstances of the occupations, ordinary citizens, etc. This method is environmental context of livelihoods, and obtaining poor and how they differ from the better off. relatively low cost. It is critical to be aware of the a bottom-up (people’s) perspective of policies and existence of and potential dominance of certain institutions.

International Labour Ofﬁ ce []Ó 229 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

Various participatory research approach (PRA) PRA method Brief description Useful for collecting information on: methods and their uses in livelihood analysis are given in the table below: Timelines Historical proﬁ les of longer-term events or trends Vulnerability context, policy change

Seasonal calendars Graphical depiction of seasonal events or trends Vulnerability context, assets, strategies SAMPLE SURVEYS Transect walks Land-use maps based on walking through particular Quantity and quality of natural capital Surveys complement participatory research areas methods. To ensure that survey work is more Resource maps Maps identifying natural and other resources Existence of shared natural capital precise and effective in verifying data, sample Social maps Maps locating key social features Access to services and infrastructure surveys should be preceded by qualitative overview of the community. Sample surveys are Preference ranking Ordinal ranking based on pair wise comparisons, with Livelihood strategies, assets, access to particularly useful for generating quantitative reasons stated for the choices made services data on specifi c livelihood attributes, notably the Matrix ranking Preference ranking based on defi ned criteria with Access to infrastructure, livelihood strategies, scoring investment choices distribution of assets and activity profi les in a Wealth ranking Assigning households to well-being categories Strategies and assets needed to exit from population and over a period of time. This would poverty , relations between social groups help: Venn diagrams Diagrammatic representation of key institutional Social capital relations between social groups, interactions institutional and policy environment • Calculate total household income and show seasonal variation

• Divide household income between sources, Sample Timeline of Drought & Natural Disasters between subsistence and cash income and between different household members • Compare communities and wealth groups for 1936 1939 1956 1960 1962 1964 1965 patterns of income sources Drought Drought Drought Rice Primary Land Major pest Drought Milk, • Compare levels of critical assets between Cholera Supply from School set-up Settlement attack rice supplied by different groups broke out Nueva Ecija government • Identify major constraints in accessing services

International Labour Ofﬁ ce []Ó 230 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

Sample Seasonal Analysis: Food Availability and Employment Opportunities SUGGESTED METHODS FOR

MONTHS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ANALYSING SPECIFIC PARTS OF LIVELIHOODS

PERIOD FOOD/ ÁÁ Á EMPLOYMENT ¶¶· ¹¼¼¼ ¹ À METHODS FOR IDENTIFYING FACTORS OF VULNERABILITY FOOD AVAILABLE The “vulnerability context” refers to the seasonality, trends and shocks that affect people’s livelihoods. The key characteristic of these factors is that they cannot be controlled by local people themselves, at

PRESENT SITUATION EMPLOYMENT/ least in the short and medium term. It is INCOME therefore important to ﬁ nd indirect means of lessening the negative impact of these factors on people’s livelihoods. There are two aspects of vulnerability that FOOD AVAILABLE should be examined: • The extent to which different groups are exposed to particular trends, shocks and EMPLOYMENT/ seasonality; INCOME • The sensitivity of their livelihoods to these BEFORE GROUP FORMATION factors

International Labour Ofﬁ ce []Ó 231 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

The table on the right illustrates the type of Economic information Assets Livelihood strategies Access to services information that might be gathered through a survey. • Production levels • Productive assets • Remittances received • Service providers • Income (cash, in-kind) • Quality of shelter • Migration patterns • Standards of delivery • Consumption levels • Access to infrastructure • Income by sources (cash, in- • Fees and charges METHODS FOR INVESTIGATING ASSETS • Cash costs of production • Access to training and kind) for various household • Non-cash costs education members • Seasonal prices • Skills • Access to rural resources • It is important to understand the following • Seasonal wages for different • Household labour availability for urban dwellers, and vice aspects of assets: tasks • Nutrition versa • Financial services and • Seasonal variation in • Levels of assets and their distribution conditions strategies among individuals, households, groups, neighbourhoods and communities (disaggregating gender and age data is essential throughout the investigation) The table below shows some examples of types of methods that can be used to get information about these. • Changes in asset status over time (cycles within

a year as well as longer-term changes) Information Needed Method • The roles assets play in livelihoods or how Events and trends that cause stress Key informants assets are utilised (some assets fulﬁ l multiple Existence of trends and sudden changes in such trends functions) and interactions between assets Historical occurrence of ﬂ oods, droughts, epidemics, local environmental trends and Timelines cycles METHODS FOR ANALYSING POLICIES AND Level of food stores across the ear, rainfall, crop planting and harvesting schedules, Seasonal diagrams, sample surveys INSTITUTIONS food process, changes in health status Relative vulnerability factors to different groups Preference ranking What is the social, political and institutional Trends Secondary data - rainfall, temperatures - meteorological context of livelihoods? The overall context can be - producer and consumer prices - prices, economic broken down into six aspects: - population density - demographic - degradation of environment - resource stocks - morbidity - health • Social relations – the way in which aspects such as gender, ethnicity, culture, history, religion

International Labour Ofﬁ ce []Ó 232 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

and kinship affect livelihoods of different groups ASSETS METHODS within a community or neighbourhood • Social and political organisation – decision- Human capital – Secondary sources – provide a good overview refers to life expectancy, health and nutrition, literacy, making processes, civic bodies, social rules education, skills, as well as ability to command labour Participatory methods – suitable for ﬁ nding about provision of services and norms, democracy, leadership, power and beyond one own direct labour and facilities that enhance human capital, and for uncovering barriers to access authority, rent-seeking behaviour Possible indicators: • Governance – the form and quality of Public expenditure per capita Sample surveys – useful for collecting less controversial data, including government systems (structure, power, Physicians per 1000 people indicators of human capital Primary school pupils/teacher ratio effectiveness, efﬁ ciency, rights and Life expectancy at birth representation) Under 5 years old mortality rate Literacy rate • Service delivery – behaviour, effectiveness and Educational attainment responsiveness’ of state and private services Social capital – Community-wide survey of associations and organisations, their delivery agencies Refer to ways in which people’s social relationships, membership and activities • Resource access institutions – how institutions networks, associations and institutional linkages represent strategic livelihood resources Social maps – identify and locate social relations that determine access to resources function • Policy and policy processes – the effect on Possible indicators: Timelines – to track changes Extent of membership in groups livelihoods of key policies and legislation, and Degree of participatory decision-making in groups Matrix/preferential ranking – relative priority of people give to social the way policy is determined % of household income from remittances networks % household expenditure for gifts and income transfers to other people Venn diagrams – establish roles, responsibilities, and expectations METHODS FOR INVESTIGATING LIVELIHOOD Old age-dependency ratio STRATEGIES Natural assets Sample survey – to determine distribution of privately owned natural assets, such as land, customary tenure land that is treated as private, Livelihood strategies are the combination of private housing plots, livestock, privately owned trees, etc activities and measures that people take to achieve Stakeholder analysis, key informants, focus group discussions – to certain goals (livelihood outcomes), which depend examine rules of access, property rights regime, barriers to access

on threats or risks they face, the opportunities Participatory methods (e.g. mapping, transect walks, timelines, available to them, their own capabilities. They will seasonal calendars) – to examine quality and management of assets, and track changes use their assets in different ways, might exchange

International Labour Ofﬁ ce []Ó 233 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

one asset for another (e.g. sell land to obtain a ASSETS METHODS permit to work overseas for cash remittance), invest in new assets; undertake money-making Physical assets – Sample surveys Personal/household assets (can be counted) include: and non-monetary activities for various reasons. items that enhance income (e.g. sewing machine, Group methods using structured checklists Livelihood strategies are not constant. agricultural implements); house quality and facilities (e.g. furniture, cooking utensils); piped water, electricity, waste Participatory methods - to understand management issues for shared disposal & other services; personal consumption items assets Participatory methods: (e.g. radios, TV)

Physical assets under shared ownership, for example, • Group discussions – to describe evolving ploughs, pumps, tractors, rice threshing machines patterns of activities in the community, provide Financial assets – Preference ranking and matrix scoring – to compare importance of interpretations of reasons for changes Include credit, savings, pensions, insurance different credit sources and different options for savings, insurance • Key informant interviews – to uncover patterns and cash generation of activity or strategies adopted by those Seasonal calendars – to reveal variations in savings and credit patterns households or families that have managed to in same year

escape poverty Life-cycle proﬁ les – to capture major changes over a longer period of • Diagrammatic methods – to distinguish groups time, such as pension or dependency

or household members that specialise in Key informants and semi-structured interviews – to understand wider particular income-generating activity, and those ﬁ nancial environment the use mixed strategies Financial and economic analysis – to determine the viability and • Seasonal calendars – to capture peaks and sustainability of existing credit and savings organisations declines in time allocation to different activities Sample survey – to determine individuals’ or households’ credit • Preference ranking – to reveal people’s criteria courses, conditions and costs of borrowing for decision-making about their strategies, how they choose to invest • Wealth ranking – to produce an initial identiﬁ cation of poor and better-off households

International Labour Ofﬁ ce []Ó 234 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

Sample survey: ASPECTS TO BE EXAMINED POSSIBLE METHODS

Performance of organisations Structured interviews with key • Useful for capturing income data – composition What are the mechanisms through which people’s views are captured and included in informants development planning process? Are these distinct for men and women? Validate these with reports and of income or sources of income; income How do government or quasi-government organisations link with civil society groups? How communities disparities between different groups do they hold themselves accountable to their clients? Are there gaps in civil society organisations? • Permits comparison of income sources Are policies and development plans adequately resourced (in human and fi nancial terms)? – Across and within social groups What is the role of the local political representative or body? – Between men and women – Between poor and better-off households Social relations and processes Interviews with key informants, using • Important to obtain information from men and How do different social groups relate to one another? semi-structured questions Which groups are excluded from mainstream society and why? women How does authority work in the community – role of elected leaders? • Attention to seasonality factor How to members of the community make their problems known to the political leaders or authority? What is the likelihood that such problems will be acted upon? • Divide sample households according to How does the community deal with confl icts and grievances? dominant strategies they pursue, and into poor/ better-off Policy and policy processes Case studies How are policies framed? Are local interests represented? Interviews with people selected How are different interests represented in the policy process? Who is included and through snowball sampling procedure KEY QUESTIONS FOR ANALYSIS excluded? Existing evaluation reports Which actors have the greatest infl uence on policy change? Are policies and plans supported by appropriate budget allocations? Are budgets used After gathering information using the above effectively? methods, the analysis should answer the following Is policy coherent and independent of special interests? key questions:

• What speciﬁ c (human, social, natural, physical, or ﬁ nancial) assets of the community should poverty reduction programs focus on for maximum impact on livelihoods?

International Labour Ofﬁ ce []Ó 235 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.03 ANALYSING LIVELIHOODS OF POOR COMMUNITIES AND AREAS

Wealth Criteria % of ACKNOWLEDGEMENTS CROSS-REFERENCES Category Households

Rich Big lands, cash, big 10 • Department for International Development • Tool 2.03, Assessment Tool: Assessing your house, tractor, farm (DfID), Sustainable Livelihoods Guidance Sheets local economy. animals, business vehicles, etc. • Sustainable Livelihoods Distance Learning • Tool 4.03.04, Information Tool: Local poverty Guide, DFID/IDS monitoring and target-setting – The Philippine Middle Small landholdings, little 25 cash, small house, a few MBN approach farm animals RELEVANT RESOURCES • Tool 2.02, Information Tool: How to measure and monitor decent work gaps at local level Poor Nipa hut, very small 55 landholding, no savings, • http://www.livelihoods.org • Tool 4.03.02, Information Tool: Relevance agricultural labour work, • DFID (2001) Sustainable Livelihoods - building of “decent work” to local poverty reduction: tenant on strengths, London http://www.livelihoods. diagnosis and action Poorest Landless, small hut, org/info/pcdl/self/self_instruction_materials5. wage labour, food insecure html • ILO (1999) Decent Work, Report of the Director- General to the International Labour Conference • What are the main external, long-term and 87th Session, Geneva, June 1999, International sudden, short-term shocks that the community Labour Offi ce, Geneva http://www.ilo.org/public/ should be protected from or prepared for? english/standards/relm/ilc/ilc87/rep-i.htm • What specifi c improvements policy, institutions, • New Economics Foundation, Communities and processes (related to the previous 2 Count, September 1998 questions) can make a signifi cant impact on • Kumar, S. (2002) Methods for Community enhancing livelihood strategies and outcomes? Participation: A Complete Guide for Practitioners, Vistaar Publications, New Delhi The answers to the above questions should then guide local development planners in crafting poverty reduction programs and projects.

International Labour Ofﬁ ce []Ó 236 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.03.1 4.01.07 INFORMATIONACTION TOOL TOOL

THEGUIDELINES START AND FOR IMPROVESUPPORTING YOUR LIVELIHOODS BUSINESS (SIYB) OF POOR PROGRAM COMMUNITIES

OBJECTIVEKEYWORDS: Business plan, capacity-building, THE DIVERSIFICATION OF LIVELIHOOD ACTIVITIES IS necessity and poverty. By contrast, a household economic growth, entrepreneur, institution- IMPORTANT FOR POVERTY REDUCTION. may have a diverse set of livelihood activities Thisbuilding, action management, tool provides marketing, some guidelines micro andfor involving several individuals with specialised single supportingsmall enterprises, livelihoods trade of union, poor households training and A diverse portfolio of activities contributes to the occupations or trades. individuals in the local area. security of rural livelihoods because it improves its long-run ability to easily recover or adjust to Better-off households are able to diversify into INTRODUCTION sudden changes or sudden shocks. In the same more favourable labour markets that offer better way that diversity in livelihoods and economic returns, while poor families tend to diversify in The sustainable livelihoods framework (Tool activities is important for whole regions and the unfavourable labour markets. This is related to 4.03.03) emphasises a focus on people, their country, diversity is also important for individuals the difference in their asset status. The poor assets, activities and access, rather than on and families. In general, increased diversity possess few assets (for example, low human sectors (e.g. health, agriculture, tourism) and their promotes greater fl exibility because it allows more capital, landless) and often face barriers to entry performance, which is the conventional entry point possibilities for substitute between opportunities into profi table or remunerative labour and product of policy. that are in decline and those that are expanding. markets for many possible reasons, including low assets (example - need for skills), and poor ability A livelihood is the totality comprising the assets, CAPABILITY TO DIVERSIFY IS BENEFICIAL TO to negotiate the bureaucratic procedures and the activities and the access to said assets and HOUSEHOLDS AT OR BELOW THE POVERTY LINE. obstacles. activities that determine the living gained by the HAVING ALTERNATIVES CAN MAKE A DIFFERENCE. individual or household. Based on the livelihood framework, an effective There is a critical difference between individual poverty reduction strategy should involve and household. An individual who takes on facilitating the poor to gain better access to multiple occupations or livelihood activities opportunities, or to create their own opportunities. can typically do so only in part-time, casual, A local economic development plan that aims low-income occupations or trades. Individual at supporting the growth of a particular sector diversifi cation tends to be closely associated with or sub-sectors of rural economic activity would

International Labour Ofﬁ ce []Ó 237 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.03.1 GUIDELINES FOR SUPPORTING LIVELIHOODS OF POOR COMMUNITIES

be inadequate in reducing poverty since it does can also mean fewer numbers of poor people so not address the problem of lack of access to • Improved access to high-quality education, location is not a precise criterion. opportunities and assets among the poor. information, technologies and training, and • Assets (or lack of them) – Assets are better nutrition and health fundamental to livelihood strategies. For Men and women have different assets and access • More secure access to, and better management this reason, policies and projects that target to resources, and thus, opportunities. Women of, natural resources individuals or families that already possess rarely own land, may have a lower education, • Better access to basic and facilitating assets are likely to improve the incomes of usually have skills in less technical skills, and infrastructure those who are already better off rather than the their access to productive resources and decision- • More secure access to ﬁ nancial resources poor. making may occur indirectly through men. • A more supportive and cohesive social • Substitution between assets and activities Typically, women face narrower labour markets environment – This is a key attribute of viable and resilient (e.g. narrower range of jobs, home-based and • A policy and institutional environment that rural livelihoods. Substitution between assets is unpaid activities rather than paid) than men, supports multiple livelihood strategies and facilitated by the possession of a diverse range and gain lower or unequal earnings. Because of promotes equitable access to competitive of assets rather than just a few, and by working these constraints to women, diversiﬁ cation is a markets for all markets that enable one type of assets to be less feasible option for women than for men. It is converted into another. Substitution between therefore important to ensure that women’s needs DESIGNING ACTIONS TO SUPPORT activities makes livelihoods more resilient and and constraints are addressed, and that women LIVELIHOODS thus better able to adapt to unforeseen trends are not trapped into marginal and low-income and hazards. activities when improving livelihood security at CRITERIA FOR EVALUATING ALTERNATIVE ACTIONS • Options – Being poor is often a case of being household level. (Poverty reduction policies and project proposals) trapped with no options. Poverty reduction requires facilitating the widening of choices and CORE OBJECTIVES TO BEAR IN MIND • Location – Remoteness is typically associated options, by taking action to improve information, with greater poverty and few livelihood options. encourage mobility, and reduce regulatory In assessing livelihoods in local development, and Therefore, it may be valid to target remote restrictions on feasible courses of action. in formulating measures to support livelihoods of locations rather than those already well • Knowledge – A policy or project must be the poor, it would be helpful to bear in mind a few integrated into diverse economic activities. designed on the basis of accurate, adequate core objectives: However, one must be aware that remoteness knowledge about the livelihood strategies of the

International Labour Ofﬁ ce []Ó 238 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.03.1 GUIDELINES FOR SUPPORTING LIVELIHOODS OF POOR COMMUNITIES

people the policy/project is expected to help. economic appraisal techniques), past experience, A project is a discreet funding package, Untested assumptions about the livelihoods of existing skills, and established partnerships comprising an activity of set of activities that can families cannot be made. Appearances can be and opportunities, to support existing positive contribute to, but not necessarily achieve on its deceptive and therefore need to be investigated. directions of change. Estimates should be made of own, a particular development objective. Project indicative investment costs and returns to different activities are not an end themselves. They are HOW TO IDENTIFY ENTRY POINTS (OR PRIORITIES) scenarios, with indications of the degree of risk means of achieving sustainable reduction in OF PROJECTS involved. Without such analysis, it is impossible poverty. Projects need to be fl exible so that new to assess trade-offs between alternative uses of opportunities are identifi ed and acted upon as The results of a livelihood analysis (Tool 4.03.03) resources. they arise. may identify many different entry options for supporting livelihoods. This does not mean Entry points usually refer to livelihood assets, or to Most projects that support livelihoods of the poor that new projects should embrace all aspects policies, institutions and processes. focus on assets, activities or policies, institutions of livelihoods. Projects should be designed to and processes. address specifi c entry points. A project that tries to SOME ELEMENTS OF ACTIONS AND ISSUES do everything will become complex and diffi cult to BETTER ACCESS TO HUMAN CAPITAL manage. The livelihoods approach provides an organising The emphasis should be on identifying, together framework for trying to improve the effectiveness Equity of access and innovative approaches to the with partners and potential benefi ciaries, the of local development and poverty reduction delivery of rural education and health are designed “best bet” entry points that will have a signifi cant strategies/policies. The components of this to increase the human capital of the poor. Lack of impact on the livelihoods of the poor. A balance is framework are broad and lack detail since the education in particular is recognised as limiting required between what is desirable (based on local key constraints and policy issues that arise will be the options open to the individual, both directly priorities) and what is feasible. This often requires specifi c to local circumstances. The task of the by excluding people from all but unskilled jobs, a negotiation between the local planner or donor local planner and development practitioner is to and indirectly, by limiting the range of livelihood organisation and recipients about which changes select those elements of the particular process options that people might consider as within in livelihood quality will be pursued. that appear most promising for accelerated their reach. Poor educational attainment has change in order to secure better outcomes for been identifi ed as a critical constraint inhibiting When prioritising entry points, it is important poor people. diversifi cation of livelihoods. to draw on a range of tools (among others,

International Labour Ofﬁ ce []Ó 239 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.03.1 GUIDELINES FOR SUPPORTING LIVELIHOODS OF POOR COMMUNITIES

ACCESS TO FINANCIAL CAPITAL and increasing the mobility of people, resources • Support to agricultural outputs (e.g. certifi ed and outputs. Future infrastructure will depend seeds) The popular emphasis on micro-credit through on innovative approaches to provision and • Facilitation of rural small scale industries group lending schemes addresses the lack of maintenance. Reliance on national government • Active encouragement of backward and forward fi nancial capital available to the poor and their and irregular project fi nance cannot be depended linkages to agriculture (e.g. input delivery, inability to acquire assets that would permit them upon to keep existing infrastructure in good machinery repair services, food processing, to engage in income-generating activities. There repair or to make heavy investments in new food trading) are many models and experiments in micro- infrastructure. Decentralisation helps in giving credit provision from which to adapt and choose LGUs more say in priorities and fi nancing, INSTITUTIONAL ISSUES GOVERNING ACCESS appropriate elements for local solutions. although LGU resources are far from adequate. Private investments need to be explored. Access involves issues of local institutions, rural Credit policy is not only about micro-credit administration, authority, power, and governance. schemes. There is also scope to facilitate the ACCESS TO NATURAL CAPITAL In some cases, regulations or institutional spread of rural fi nancial institutions that are behaviour, hamper – rather than facilitate self-sustaining on the basis of savings and loans Some projects could aim at improving the quality - people from starting up small businesses or organised according to conventional banking of land, a major natural asset in rural areas. self-employment activities. These include complex criteria. This requires the appropriate regulatory These include soil conservation, soil regeneration, registration and licensing requirements, and side- and guarantee provisions that would enable provision of irrigation, reforestation. Strategies that payments to speed up offi cial processes. Reform the formation of such institutions and ensure aim at providing people access to land include in terms of effi ciency, effectiveness, transparency confi dence in them in the long term. resettlement and land distribution. and fairness in state operations may be the focus of actions. ACCESS TO PHYSICAL CAPITAL SUPPORT TO LIVELIHOOD ACTIVITIES

Rural infrastructure plays a signiﬁ cant role in Many rural strategies aim at promoting certain poverty reduction by contributing to the integration livelihood activities: of national economies, improving the functioning of markets, speeding the ﬂ ow of information,

International Labour Ofﬁ ce []Ó 240 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.03.1 GUIDELINES FOR SUPPORTING LIVELIHOODS OF POOR COMMUNITIES

RELEVANT RESOURCES CROSS-REFERENCES

• Frank Ellis, Rural livelihoods and diversity • Tool 4.03.03, Assessment Tool: Analysing in developing countries (New York: Oxford livelihoods of poor communities and areas University Press) 2000. • Tool 4.02.05, Information Tool: Skills • ILO, Modular Package on Gender, Poverty and development and employability Employment. Reader’s Kit. ILO, 2000. http:// • Tool 4.02.06, Action Tool: Community-based www.ilo.org/public/english/employment/skills/ training approach informal/gpe/informal/pack/english.htm • Tool 4.03.05.1, Action Tool: Strategies for improving incomes and employment in the informal economy • Tool 4.03.07, Assessment Tool: Assessing the potential for local microﬁ nance • Tool 4.03.07.1, Action Tool: Improving local access to ﬁ nancial services

International Labour Ofﬁ ce []Ó 241 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.03.04 INFORMATIONASSESSMENT TOOLTOOL

THELOCAL START POVERTY AND IMPROVEMONITORING YOUR - MBN BUSINESS INDICATORS (SIYB) OF PROGRAM THE PHILIPPINE GOVERNMENT

OVERVIEWKEYWORDS: Business plan, capacity-building, MINIMUM BASIC NEEDS THE STEPS IN THE MBN PROCESS economic growth, entrepreneur, institution- Thebuilding, Local management, Government Unitsmarketing, of the microPhilippines and The Minimum Basic Needs is a framework for 1. SITUATIONAL ANALYSIS havesmall adoptedenterprises, and tradeused union,several training poverty poverty analysis, planning and target-setting that monitoring tools in the past decade. Among has been widely used in the Philippines. In 1995, Provides data requirements needs for local those that are widely used in the country are: through Proclamation No. 548 and Administrative development planning. Analysis may coincide the MBN-Community-Based Poverty Indicator Order No. 194 by President Fidel Ramos, then with the preparation of the socio-economic proﬁ le and Monitoring System (MBN-CBPIMS), the Presidential Commission to Fight Poverty (PCFP) of each locality. It should generate three sets of Community-Based Monitoring System (CBMS), adopted the MBN Approach as the key strategy information: and Integrated Rural Accessibility Planning for convergence among government and non- (IRAP). government institutions under the Social Reform • Family and community proﬁ le: minimum basic Agenda. needs, analysis of problems OBJECTIVE • Administrative capability – sectoral facilities, The MBN serves as basis for: managerial skills of local chief executives, This information tool existence of NGOs, POs • Setting priorities among primary requirements • Socio-cultural and political environment • Explains the steps in MBN for survival, security and enabling needs of the – physical, geographical and topographical • Lists the MBN Indicators used by the MBN- family and community characteristic, cultural beliefs, health practices, CBPIMS and CBMS. • Situation analysis, planning, implementation, leadership monitoring and evaluation 2. PLANNING

Planning for MBN may be integrated in the local development planning process. Since the Local Development Council (LDC) is the basic planning

International Labour Ofﬁ ce []Ó 242 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.04 LOCAL POVERTY MONITORING - MBN INDICATORS OF THE PHILIPPINE GOVERNMENT

structure, the LCE as area manager and LDC 3. IMPLEMENTATION Social Welfare and Development, Department chairman should activate the local development of the Interior and Local Government-Local councils. • See to it that all concerned sectors are Government Academy, National College of Public mobilised. Administration and Governance, United Nations • Set specifi c, measurable, attainable and time- • Ensure the implementation of work plan. Development Programme, and the United Nations bound targets for the local area vis-à-vis MBN Children’s Fund. indicators. 4. MONITORING • Identify and prioritise programmes that address The 33 MBN Indicators cover ten basic needs in the minimum basic needs of target families/ • Use baseline data on MBN indicators three areas: areas using the MBN indicators. • Use other standard monitoring indicators • Determine resources needed to carry out agreed upon by inter-agency committee SURVIVAL programmes. (barangay or municipality level) • Identify corresponding persons from • Install monitoring system at community and • health government, NGOs and people’s organisations household levels • food and nutrition who will implement programme. • Analyse and deposit data in local unit’s • water and sanitation • Determine extent of community support to databank • clothing implement and sustain programme, determine requirements of implementation. 5. EVALUATION OF OUTPUTS, OUTCOMES AND SECURITY • Phase the programme activities and draft work IMPACT schedule. • income and livelihood • Finalise local development plans. • shelter • Prepare work and fi nancial plan. 33 MBN INDICATORS • peace and order, and public safety • Integrate work plan in local development plan to ensure that MBN programmes are prioritised. Thirty-three (33) Minimum Basic Needs (MBN) ENABLING NEEDS: were identifi ed in the early 1990s through regional consultations that were led by the Presidential • basic education and literacy Commission to Fight Poverty, Philippine Institute • family care and psychosocial needs for Development Studies, Department of • participation in community affairs

International Labour Ofﬁ ce []Ó 243 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.04 LOCAL POVERTY MONITORING - MBN INDICATORS OF THE PHILIPPINE GOVERNMENT

MBN-CBIS AND MBN-CBPIMS MBN 33 INDICATORS

In 1995, a Community-based Information System Basic Needs Requirements (referred to a MBN-CBIS) was set up to collect Survival and analyse data on the 33 MBN indicators at the barangay level. A. Food and nutrition 1. Newborns with birth weight of at least 2.5 kgs. 2. No severely and moderately underweight children under 5 years old 3. Pregnant and lactating mothers provided with iron and iodine supplements The currently used barangay-level poverty 4. Infants breastfed for at least four months monitoring system, MBN-Community Based B. Health 5. Deliveries attended by trained personnel Poverty Indicator and Monitoring System (MBN- 6. 0-1 year olds are fully immunised CBPIMS), is an improved version of the MBN- 7. Pregnant women given at least 2 doses of tetanus toxoid 8. Not more than 1 diarrhoea episode per child below 5 years old CBIS system. Using enhanced data gathering 9. No deaths in the family due to preventable causes within the year instruments and techniques, which were 10. Couples with access to family planning 11. Couples practicing family planning in the least 6 months developed by the National Statistics Ofﬁ ce, data 12. Solo parent availing of health services can be aggregated up to provincial level. Data are updated annually. Out of the 33 MBN indicators, C. Water and sanitation 13. Access to potable water (faucet/deep well within 250 m) 24 indicators are considered “core poverty 14. Access to sanitary toilets (water-sealed, antipolo, ﬂ ushed) indicators”. D. Clothing 15. Family members with basic clothing (at least 3 sets of internal and external clothing)

The MBN-CBPIMS is meant to assist the local Security government unit identify who and where the E. Shelter 16. House owned, rented or shared poor are, and what the poor needs in terms of 17. Housing durable for at least 5 years their MBNs. It is thus a tool for identifying target families needing priority action and attention, and F. Peace and order/ public safety 18. No family member victimised by crime against person (i.e. rape, murder, physical injury) provides the basis for planning, budgeting and 19. No family member victimised by crime against property (i.e. theft, burglary, etc) programming local level actions. 20. No family member displaced by natural disaster 21. No family member victimised by armed conﬂ ict

International Labour Ofﬁ ce []Ó 244 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.04 LOCAL POVERTY MONITORING - MBN INDICATORS OF THE PHILIPPINE GOVERNMENT

THE COMMUNITY-BASED MONITORING G. Income and employment 22. Head of family employed SYSTEM (CBMS) 23. Other members of the family 15 years old and above employed 24. Families with income above subsistence threshold

The CBMS is another organized way of collecting Enabling and processing poverty-related information at the local level. It aims to provide both national and H. Basic education and literacy 25. Children aged 3-6 attending day care/preschool 26. Children 6-12 years old in elementary school local governments with up-to-date information for 27. Children 13-16 years in high school policymaking and program implementation. 28. Family members 10 years old and above able to read and write and do simple calculation

The CBMS worksheet of the “A Guidebook for I. People’s participation 29. Family members involved in at least 1 people’s organisation/association, community Local Poverty Diagnosis and Planning” uses 13 development 30. Family members are able to vote at elections basic needs indicators. These indicators are grouped into three areas of concern, namely, J. Family care/psychological needs 31. Children 18 years old and below not engaged in hazardous occupation survival, security and enabling, which are the 32. No incidence of domestic violence same areas covered by the MBN indicators 33. No child below 7 years old left unattended presented above. However, the CBMS and MBN indicators are not the same. Moreover, in the CBMS, income and livelihood are considered as an “enabling” area rather than a “security” area.

Another tool that may be used to generate poverty- related data is the Local Governance Performance Management System or LGPMS. The LGPMS, along with the MBN-CBPIMS and CBMS, are also being used to help LGUs assess and intensify their efforts towards the achievement of the Millennium Development Goals (MDGs).

International Labour Ofﬁ ce []Ó 245 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.04 LOCAL POVERTY MONITORING - MBN INDICATORS OF THE PHILIPPINE GOVERNMENT

LIST OF 13 CBMS INDICATORS RELEVANT RESOURCES

Area of Concern Indicators • Local Government Academy-Department of the Interior and Local Government, Government Survival of the Philippines, A Primer on the Philippines A. Health 1. Proportion of children 0-5 years old who died to total number of children aged 0-5 Minimum Basic Needs (MBN) Approach to years old Improved Quality of Life. B. Nutrition 2. Malnutrition prevalence – proportion of children aged 0-5 years old who are malnourished (ﬁ rst. Second, third degree) • National Economic and Development Authority and UNDP, A Primer on the Minimum Basic C. Water and sanitation 3. Proportion of households without access to safe water 4. Proportion of households without sanitary toilet facilities Needs – Community-Based Poverty Indicator Security and Monitoring System (MBN-CBPIMS). • Government of the Philippines, A Guidebook for D. Shelter 5. Proportion of households who are squatters 6. Proportion of households who are living in makeshift housing Local Poverty Diagnosis and Planning. E. Peace and order 7. Proportion of households with members victimised by crimes Enabling CROSS-REFERENCES F. Income and livelihood 8. Proportion of households with income less than the poverty threshold 9. Proportion of households with income less than the food threshold • Tool 2.05 Information Tool: Integrated Rural 10. Proportion of households who eat less than 3 meals a day Accessibility Planning (IRAP) 11. Employment rate • Tool 4.03.02, Information Tool: Relevance G. Basic education 12. Elementary school participation rate 13. Secondary school participation rate of “decent work” to local poverty reduction: diagnosis and action • Tool 5.10, Information Tool: The Local Governance Performance Management System

International Labour Ofﬁ ce []Ó 246 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.03.05 INFORMATION TOOL

THEPROBLEMS START OFAND THE IMPROVE INFORMAL YOUR ECONOMY BUSINESS (SIYB) PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, WHO ARE IN THE INFORMAL ECONOMY? contract or unregistered workers; owner-operators economic growth, entrepreneur, institution- of micro shops and enterprises, and many more. Workbuilding, in the management, “informal economy” marketing, is amicro means and A DIVERSE GROUP OF WORKERS AND ENTERPRISES ofsmall survival enterprises, for the poortrade and union, those training with very BUT SHARING A COMMON CHARACTERISTIC These different groups share one important low incomes. In many low-income and under- characteristic: because they are not recognized developed areas, “informal enterprises” and The term “informal economy” is used to refer to under the legal and institutional frameworks, “informal employment” constitute 40% to 80% of the expanding and diverse group of workers and which govern or regulate business operations and the local economy. enterprises in rural and urban areas who are not employment, these groups suffer from several forms recognized or not protected under existing legal of exclusion. Therefore, local economic development and and regulatory frameworks governing business poverty reduction could not be achieved without and/or employment. They receive little or no legal social and labour addressing and solving the problems of people in protection, they are unable to enforce contracts the “informal economy” – the producers, business We see informal workers, producers and or enjoy security of property rights, and they owners-operators and workers. entrepreneurs in our everyday settings: street suffer from poor or restricted access to productive vendors; shoe shiners; garbage collectors; resources, services and facilities. They are This tool provides a guide for mapping the size food peddlers; homeworkers such as sewers, socially “invisible” – they are not covered or are and composition of the informal economy and shoemakers and embroiderers who make inadequately counted by national statistics; they points out their basic problems, which explains products for subcontractors and are paid on are rarely able to organize themselves and have why poverty and vulnerability are high in the piece-rate basis; basket-makers, mat-weavers little or no representation in policy-making bodies. informal economy. and many other handicraft makers; paid domestic workers or house helpers; wage workers employed Strategies for dealing with these problems are in small business units, sweatshops and hidden covered in a subsequent tool. factories; wage workers without employment

International Labour Ofﬁ ce []Ó 247 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.05 PROBLEMS OF THE INFORMAL ECONOMY

GUIDE FOR MAPPING THE SIZE AND COMPOSITION Production OF THE INFORMAL ECONOMY units by Jobs by status in employment type

Identifying and mapping the size and composition Contributing Members of Own-account workers Employers family Employees producers’ of the informal economy in a particular territory is workers cooperatives not easy and not precise because relevant data Informal Formal Informal Formal Informal Informal Formal Informal Formal are not always available. Formal sector 12 However, a rapid appraisal can be done using the enterprises matrix on the right as a guide. Informal sector 34 5678 enterprises Informal sector enterprises: These are private Households unincorporated enterprises (owned by individuals 910 and households that have no separate legal identity from their owners), whose employment Source: “Guidelines concerning a statistical defi nition of informal employment”, Seventeenth International Conference of Labour Statisticians (ICLS), Geneva, size is below a certain level (which is determined nationally according to national conditions but is workers, such as maids, laundresses, watchmen, Unshaded cells: Are the focus of concern – they usually between 5-10 workers), and/or which are gardeners, and drivers. refer to types of jobs that represent the different not registered under specifi c forms of national segments of the informal economy. legislation, such as commercial acts, tax and Dark grey cells: Refer to jobs that by defi nition do social security laws and professional groups not exist in the type of production unit in question. Cells 1 and 5: Contributing family workers regulatory acts (as distinct from local regulations – no contract of employment and no legal or governing trade licenses and business permits). Light grey cells: Refer to jobs which exist in the social protection arising from the job, in formal type of production units in question but which are enterprises (Cell 1) or informal enterprises (Cell Households (production units): These are not relevant to our concerns. 5). Contributing family workers who hold an households producing goods for their own employment contract, receive wage and social fi nal use, and those employing paid domestic protection, etc., would be considered as having formal employment.

International Labour Ofﬁ ce []Ó 248 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.05 PROBLEMS OF THE INFORMAL ECONOMY

Cells 2, 6 and 10: Employees who have informal • All contributing (unpaid) family workers are inquire into non-wage and non-formal sources jobs, whether employed by a formal enterprise considered to have informal jobs, irrespective of income of household members but these (Cell 2) or informal enterprise (Cell 6) or as paid of the characteristics of the enterprise for which surveys do not obtain enough information about domestic workers by households (Cell 10). they work. the income sources to establish their nature and • Activities of persons engaged in the production character. Cells 3 and 4: Own-account workers (Cell 3) and of goods for own fi nal use by their household employers (Cell 4) who have their own informal are considered informal jobs. Current estimations of the size of the informal enterprises. The informal nature of their jobs • Employees, including paid domestic workers, economy are based on “proxy” data taken from follows directly from the characteristics of the are considered to have informal jobs if their household surveys or a combination of both enterprise that they own. employment relationship is not subject to household and enterprise surveys. These proxy standard labour legislation, taxation, social data are: Cell 7: Employees working in informal enterprises protection or entitlement to certain employment but having formal jobs. For example, this may benefi ts for reasons including: undeclared job a) Categories of work approach - From the Labor occur when enterprises are defi nes as informal or employee(e.g. illegal immigrants), the job is Force Survey, which is based on households, in terms of the size criteria (e.g. less than 5 casual or of short duration, hours of work are two categories of work are used: own-account, employees). below a certain level; employer is not registered; self-employed workers, unpaid family workers. the employee’s place of work is not inside the b) Residual employment approach - Uses the Cell 8: Members of informal producers’ premises of the employer difference between employment data from cooperatives. the Labor Force Survey and employment data PHILIPPINE INFORMAL ECONOMY from the Census/Survey of Establishments as Cell 9: Producers of goods for own fi nal use by estimate. their household, such as subsistence farming and The exact size and composition of the Philippine subsistence fi shing. informal economy cannot yet be determined There are limitations to both approaches to because of gaps in the data collected by national estimating the size of the informal economy. Informal jobs: Own-account workers, employers statistical systems. The survey of enterprises The fi rst approach does not adequately capture and members of cooperatives are considered covers only visible enterprises, and excludes informal employees (see Cells 2, 6 and 10 of to have an informal job if their enterprise is an businesses of very small scale, and with non- matrix above). As regards the second approach, informal enterprise. permanent locations. Household surveys could the difference could be the result of failure of

International Labour Ofﬁ ce []Ó 249 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.05 PROBLEMS OF THE INFORMAL ECONOMY

Establishment Surveys to cover smaller formal – because they tend to have less resources, lower RELEVANT RESOURCES enterprises. education and skills; have to combine family responsibilities with earning an income; and • Decent work and the informal economy. ILO. Geneva. POVERTY AND THE INFORMAL ECONOMY face direct and indirect discrimination in the job 2002. http://www.ilo.org/public/english/standards/relm/ market. ilc/ilc90/pdf/rep-vi.pdf A poor individual cannot afford not to work, When the term “informal sector” was fi rst used by • Guidelines concerning a statistical defi nition of informal especially in regions where he/she has no social the International Labour Organization in 1972, it employment, Seventeenth International Conference of security, unemployment insurance and other was meant to describe a poverty situation in the Labour Statisticians (ICLS), Geneva, http://www.ilo.org/ formal or informal forms of social safety net. Any labour market: public/english/bureau/stat/download/papers/def.pdf job is better than no income at all. This is one of • Sandra Yu, Chapter 2. The Philippine informal the reasons why the size of the informal economy “…very small-scale units producing and sector, ILO, Manila, draft July 2001. http://www.ilo. is expanding non-stop. People who cannot fi nd a distributing goods and services, and consisting org/dyn/infoecon/docs/110/F1293290257/Ch2%20- job in formal establishments fi nd their way into the largely of independent, self-employed producers, %20Phils%20_revised%2012%20mar_.pdf informal economy – by undertaking any form of some of whom also employ family labour and/or a • Maria Eufemia C. Yap, M.D. Extending Social Security business, trade or job which does requires little or few hired workers or apprentices; which operate to the Informal Sector, ILO, Manila, draft April 2002. no capital, technology or skill; by doing odd jobs with very little capital or none at all; which utilize a http://www.ilo.org/dyn/infoecon/docs/110/F1381426333/ here and there; or by hiring out their labour under low level of technology and skills; which therefore Ch5%20-%20Socsec%20_revised%20Apr%202002_.pdf casual arrangements without a verbal or written operate at a low level of productivity; and which • ILO, Informal Economy Resource Database http://www.ilo. employment contract. generally provide very low and irregular incomes org/dyn/infoecon/iebrowse.home and highly unstable employment for those who People with little or no education, few skills, no or work in it…” (The dilemma of the informal sector, CROSS-REFERENCES little cultivable land, and no capital generally take ILO, Geneva, 1991) up some form of informal livelihood. • Tool 4.03.05.1, Action Tool: Strategies for improving However, not all who work in the informal incomes and employment in the informal economy Out of choice and necessity, more and more economy earn low incomes and are poor. Some • Tool 4.04.02.1, Action Tool: Simple, low-cost ways of women are looking for employment or sources self-employed workers earn more than unskilled or improving working conditions in the “informal sector” of income, but they often end up in jobs at the low-skilled workers in formal establishments. • Tool 4.05.03.1, Information Tool: Gender: the challenges lower income segments of the informal economy of women and work

International Labour Ofﬁ ce []Ó 250 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.05.1 4.01.07 INFORMATIONACTION TOOL TOOL

THESTRATEGIES START AND FOR IMPROVE IMPROVING YOUR INCOMES BUSINESS AND (SIYB) EMPLOYMENT PROGRAM IN THE INFORMAL ECONOMY

OBJECTIVEKEYWORDS: Business plan, capacity-building, they face and the causes of low incomes may First of all, their economic fortunes are linked economic growth, entrepreneur, institution- be very different from one group to another. For to the economic performance of the enterprise Thisbuilding, tool focusesmanagement, on specifi marketing, c problems micro and and example, the problems of owner-operators of small employing them. It is thus assumed that if constraintssmall enterprises, of people trade working union, in training the informal businesses are different from wage workers. the income and profi tability of the enterprise economy and identifi es the broad strategies that improves, the workers’ situation would eventually local governments and local institutions can OWN-ACCOUNT WORKERS AND MICRO also improve. Therefore, the focus of most implement in order to improve the incomes and ENTREPRENEURS development assistance to the informal economy employment conditions in the informal economy. has been the informal enterprise, the micro The biggest group in the informal economy seems entrepreneur and own-account worker. WHAT ARE THE PROBLEMS OF THE to be own-account workers - owner-operators of INFORMAL ECONOMY? micro enterprises and production units who do not Second, two groups of wage workers are not employ workers on regular basis and often rely on visible because they perform their work outside The most visible problem of people working in unpaid family labour; artisans; subsistence fi shers conventional workplaces – within their homes, in the informal economy, whether they are vendors, and farmers, etc. Briefl y, their problems may be houses, garages, backyard workshops: producers, owner-operators of a small workshop, grouped as follows on table Examples of issues or workers, may be low and irregular, insecure and problems of Own-account workers and micro • Paid domestic workers – househelpers, incomes. However, they often have many other entrepreneurs. gardeners and drivers, whose employment problems which are interrelated and which cause relationship is often not subject to standard low incomes and make it diffi cult for them to WAGE WORKERS IN INFORMAL ENTERPRISES AND labour legislation, taxation, social protection or improve their situation. HOUSEHOLDS entitlement to employment benefi ts because the employee is undeclared, the job is casual It would help to differentiate the different groups Wage workers in the informal economy are and of short duration, or the employer is nor of people in the informal economy and look at generally forgotten or socially invisible. registered. their problems separately because the obstacles

International Labour Ofﬁ ce []Ó 251 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.05.1 STRATEGIES FOR IMPROVING INCOMES AND EMPLOYMENT IN THE INFORMAL ECONOMY

Examples of Issues and Problems of Own-account Workers and Micro Entrepreneurs

ECONOMIC AND TECHNICAL ASPECTS

Market 1. Producing a product that has no or limited market demand Competition from many similar producers and products within a limited market 2. Poor product quality 3. No knowledge about the market 4. Poor linkages to market 5. Reliance on many intermediaries

Productivity 1. Poor product quality and delivery due to poor equipment and technology, skills and/or organization of production 2. Unreliable sources of raw materials 3. High incidence of accidents and illness due to unsafe and unhealthy working conditions

Business management 1. Lack of business development and management skills 2. No management practices\

Regulatory environment 1. Many regulations and multiple regulatory ofﬁ ces 2. Regulations are not clear and are complex 3. Regulations present obstacles to micro businesses 4. Bribes 5. Police harassment

Productive resources (fi nance, land, 1. Informal producers and enterprise owners possess little resources of their own training, technical extension services, 2. Institutions or agencies are biased in favour of bigger, formal establishments business services, information) 3. Procedures and requirements are many, not understandable or diffi cult to comply with 4. Some laws or rules may directly or indirectly discriminate against certain groups of the population 5. Absence of local-based offi ces providing business, technical and fi nancial services

SOCIAL ASPECTS

Health and safety 1. High level of job-related health and safety hazards in certain industries and occupations 2. Many suffer from health problems (e.g. diminished eye sight, back pains, respiratory illnesses) 3. Because the home is often also the place of work, children are also endangered 4. People have little or no knowledge about the dangers of chemicals used at work 5. People do not use protective measures because they are considered costly, uncomfortable or not helpful

International Labour Ofﬁ ce []Ó 252 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.05.1 STRATEGIES FOR IMPROVING INCOMES AND EMPLOYMENT IN THE INFORMAL ECONOMY

Social protection 1. People are not covered by any social insurance and health insurance in case of accident, illness, incapacity or death 2. No safety net in case of natural disaster, business failure or crop failure 3. Emergency expenses are covered through help from relatives and friends, loan sharks, own savings or sale of few assets 4. Constant indebtedness due to no work-no income

Child labour As micro enterprises and households rely heavily on unpaid family labour, child labour is also often engaged. The major problem is where children are exposed to hazardous working environment and when work takes them out of school and prevents them from gaining an education.

Voice and representation Very few are members of organizations People have no time to participate in organizations or do not see practical beneﬁ t in organizing Interests of poor people in informal economy are not expressed by formal organizations People do not have the capacity (language, skills, self-esteem) to participate and express their views in meetings There may be laws or practices that directly or indirectly restrict people in informal economy from organizing

Statistically invisible They are not counted in national statistics on establishments which cover enterprises in ﬁ xed locations and those with a certain employment size (in the Philippines 10 or more workers). Their incomes or contribution to the local economy are not adequately counted in national accounting systems.

• Homeworkers or outworkers – while often elsewhere, and usually paid at piece-rate basis. wrongly regarded as own-account workers, As disguised wage workers, homeworkers are their outputs are actually produced under excluded from entitlements to wages, beneﬁ ts, strict speciﬁ cations set by a subcontractor (a job and social security under labour legislation. trader, middle agent of an enterprise, exporter or buyer) who often provide the design, raw materials, are often only parts of a whole product which is assembled and controlled

International Labour Ofﬁ ce []Ó 253 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.05.1 STRATEGIES FOR IMPROVING INCOMES AND EMPLOYMENT IN THE INFORMAL ECONOMY

Examples of Issues and Problems of Wage Workers in Informal Enterprise and Households

ECONOMIC ASPECTS

Wage rates Low wage rates due to competition from other worker or little bargaining power of workers to negotiate for better wage rates Low wage rates because enterprises cannot afford to pay more Workers do not know the existing wage rates of other workers or other areas Poor enforcement of legal minimum wage in the informal economy

Productivity Poor quality of work due to: Lack of suitable skills Poor health and nutrition Low motivation on the worker’s part Problems of the enterprise - poor equipment, management, production organization, working environment

SOCIAL ASPECTS

Regularity and security of work Work is highly irregular and casual; no job security No work-no pay arrangements No employment security because of few or unsuitable skills, few jobs available in the area

Rights and labour protection Workers are vulnerable to unfair and exploitative labour practices, such as: non-payment or late payment of wages and beneﬁ ts extremely long hours of work without overtime pay debt bondage (payment of debt with labour) physical and sexual violence (e.g. individual workers working along inside homes)

Health and safety Same as own-account workers

Social protection Same as own-account workers

Child labour Same as own-account workers

Voice and representation Same as own-account workers

Statistically invisible Same own-account workers

International Labour Ofﬁ ce []Ó 254 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.05.1 STRATEGIES FOR IMPROVING INCOMES AND EMPLOYMENT IN THE INFORMAL ECONOMY

Labour and social protection is weak in the STRATEGIES FOR IMPROVING INCOMES It is therefore important to assess these national informal economy because: AND EMPLOYMENT policies, laws and regulatory institutions and determine in what ways they exclude and • Although labour laws may apply to all workers POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK: constrain enterprises and workers in the informal having employee-employer relationship, most ENSURE COORDINATED, COHERENT NATIONAL AND economy from obtaining better incomes and workers’ rights, including minimum wage, LOCAL POLICIES, LAWS AND REGULATIONS employment conditions, and achieving growth. workers’ benefi ts, dispute settlement, union Legal and institutional reforms may be necessary. organizing and collective bargaining, are First of all, it is important to bear in mind that enforceable only among those having clear improving incomes and employment of people Local level employer-employee relationships in the formal in the informal economy would require policy sector. coherence between national and local policies and At the sub-national level, local governments, • Labour inspectors do not visit small strategies. depending on the decentralization framework, establishments (e.g. less than 5-10 workers) implement national policies and laws, enact and • Government bodies that are responsible for National level enforce local regulations, and provide incentives resolving workers’ complaints against violations and services, which may positively or negatively of law are normally not accessible to informal National policies, legislation, regulations and affect small enterprises, producers and workers workers for various reasons- their offi ces are institutions affect enterprises and employment in the informal economy. These local frameworks located in capital cities or urban centres, they in the informal economy, either positively or also need to be assessed and reforms adopted use legal and formal language that workers are negatively. As stated earlier in Tool 4.03.05, where necessary. not familiar with, and may require the presence these frameworks generally exclude the informal of lawyers; staff may have bad attitude and not economy from productive services and resources, Areas of local government responsibility which receive poor workers properly; case resolution and from effective protection of property and should be reviewed for possible biases against could take time and repeated costly visits by labour rights. Some are biased in favour of informal enterprises and workers are: workers. formal, bigger enterprises at the expense of micro • Most often, informal workers do not know their enterprises, effectively hampering growth among • Business registration requirements and rights under the law. the latter. For example, policies and procedures procedures of fi nancial institutions often favour formal • Land use and building permits enterprises. • Local taxation

International Labour Ofﬁ ce []Ó 255 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.05.1 STRATEGIES FOR IMPROVING INCOMES AND EMPLOYMENT IN THE INFORMAL ECONOMY

• Access to and use of local water, marine and Integrated approach: productivity, market, incomes Training schemes: forest and mineral resources and social protection • Technical skills • Business management skills As a response, local governments may change or Micro entrepreneurs and own-account workers • Adult literacy and numeracy simplify regulations and procedures, train local would benefi t from a strategy that combines: staff to assist the diverse groups in the informal Financial services: economy, and set up specifi c offi ces to deal with • Measures aimed at raising productivity, market • Savings the requirements of these groups. integration and incomes, and • Credit • Measures aimed at reducing their exposure LOCAL PROMOTIONAL PROGRAMMES AND and vulnerability to health and safety hazards Infrastructure: MEASURES FOR MICRO ENTERPRISES AND OWN- at work and to sudden life risks (e.g. death, • Clean water ACCOUNT WORKERS illness). • Sanitation • Power In addition to ensuring a favourable legal, policy Productivity, market and incomes • Roads to markets and institutional environment, local governments • Work places with adequate facilities and local organizations can adopt and undertake Technical and business advisory services: a number of programmes and measures to • New technology, skills, equipment Social protection improve incomes and employment in the informal • Change in work organization economy. What these programmes and measures • Better or cheaper sourcing of inputs Promotion of access to existing national and other are would depend on the priority reasons for low • Change in product social and health insurance systems: incomes and the nature of problems. • Improvement of product design • Dissemination of information • Quality control • Setting up a local unit for information and The long experience of many organizations in advice, processing of papers, reception of addressing the problems of the informal economy Marketing assistance: claims shows that an integrated approach is the most • Market study effective way. • Networking Promotion of health and safety at the workplace: • Trade fairs • Information dissemination on hazards and low- cost ways of protection from hazards

International Labour Ofﬁ ce []Ó 256 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.05.1 STRATEGIES FOR IMPROVING INCOMES AND EMPLOYMENT IN THE INFORMAL ECONOMY

• Mobilization of local health centres and for a product, organize joint trade fairs. They can Promoting employability, productivity and personnel to provide medical information and undertake joint action and express their needs to employment security advice, and to identify job-related health and the local government with greater strength. safety hazards • Skills training • Improvement of shelter conditions - water, However, it is well known that competition is also • Adult literacy and numeracy sanitation and lighting facilities as many people very high in the informal economy because many • Vocational counselling and job placement work in their homes own-account workers and entrepreneurs are services engaged in the same product and business. This • Job information services Support to local social insurance scheme may result in limited incentive for joint action. • Mobilize these services especially for the youth • Assess and identify groups who are most and young workers vulnerable and in greatest need of social LOCAL PROGRAMMES AND MEASURES FOR insurance (see Tool 4.03.06.2 – Assessing INFORMAL WAGE WORKERS Promoting and protecting workers’ rights and social risks and vulnerabilities in the local entitlements community) Integrated strategy: employability, rights and social • Invite experts to help people assess their needs protection • Information dissemination to employers on and capacity to pay workers rights and entitlements • Disseminate information An integrated strategy to assisting informal wage • Legal literacy for workers workers would combine measures aimed at: • Setting up an offi ce or service that provides Organization, collective action, and voice legal advice and assistance to workers in case • Promoting their employability, productivity and of serious unfair practices such as non-payment In certain situations, there are benefi ts for micro employment security in the labour market or late payment of wages, violence and worst entrepreneurs and own-account to organize • Protecting their fundamental rights as worker forms of child labour themselves into small associations so that they and their entitlements under the national labour • Setting up an offi ce or service to conciliate and could combine efforts and resources where laws mediate disputes necessary, for example: bulk purchase of inputs, • Enhancing their social protection • Ensure that there are no legal and institutional share costly transport facilities and equipment, obstacles to workers freedom to organize achieve economies of scale and accept big orders

International Labour Ofﬁ ce []Ó 257 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.05.1 STRATEGIES FOR IMPROVING INCOMES AND EMPLOYMENT IN THE INFORMAL ECONOMY

• Provide a local forum where workers can RELEVANT RESOURCES CROSS-REFERENCES express their concerns and needs, and seek solutions • Decent work and the informal economy, ILO, • Tool 4.03.05, Information Tool: Problems of the Geneva, 2002 http://www.ilo.org/public/english/ informal economy Enhancing social protection standards/relm/ilc/ilc90/pdf/rep-vi.pdf • Tool 4.02.4, Information Tool: Creating local jobs • Disseminate information on existing national through worker cooperatives and other social and health insurance systems, • Tool 4.03.03.1, Action Tool: Guidelines for and identify who could benefi t from said supporting livelihoods of poor communities systems and how. • Tool 4.03.06, Information Tool: Social protection • Promote of health and safety at the workplace, from risks: what and why through education of workers and employers • Tool 4.03.06.1, Action Tool: Developing social by local health personnel, low-cost ways of protection in your local community improving conditions of work and low-cost • Tool 4.03.06.2, Assessment Tool: Assessing protective devices social risks and vulnerabilities in the local • Provide support to workers who wish to set community up local social insurance or health insurance • Tool 4.03.06.3, Action Tool: Providing better schemes, mutual help support, savings and social protection for women micro-fi nance (see tools on social protection, • Tool 4.03.06.4, Action Tool: Extending social Tools 4.03.06 and 4.03.06.1 – 5) protection to local communities • Support micro-fi nancial schemes (see Tool • Tool 4.03.06.5, Assessment Tool: Sample of a 4.03.07) community survey for health micro-insurance • Tool 4.03.07, Assessment Tool: Assessing the potential for local microfi nance

International Labour Ofﬁ ce []Ó 258 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.03.06 INFORMATION TOOL

THESOCIAL START PROTECTION AND IMPROVE FROM YOUR RISKS: BUSINESS WHAT AND (SIYB) WHY PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, WHAT IS SOCIAL PROTECTION? The objectives of social protection are: economic growth, entrepreneur, institution- Thisbuilding, information management, tool explains marketing, basic microconcepts and Social protection is the protection which society • To offset the substantial loss of income from regardingsmall enterprises, social protection trade union, and trainingits role in provides for its members against risks and the work resulting from various forms of social risks, alleviating risks and vulnerabilities of individuals, negative consequences of these risks. Human examples of which are indicated below families and communities. As local planners beings are exposed to different kinds of risks, • To increase access to basic social services, and local development practitioners, the events and circumstances in daily life which, if such as health care and benefi ts for children, information contained in this tool will enable not prepared for, may lead to a person’s inability with a view to enhancing individual and family you to make informed decisions and craft plans to cope with such risks fi nancially, psychologically security. for your constituents in an appropriate manner and even physically. that encompasses and takes into consideration WHAT IS MEANT BY RISKS AND important components in social protection Thus, government interventions such as the VULNERABILITIES? WHAT ARE EXAMPLES that play important roles in the development national social security and health insurance OF RISKS THAT PEOPLE ARE CONFRONTED of communities, municipalities and provinces. systems or private initiatives through cooperatives WITH? It is recommended for users to read this tool or local communities help to guard against the before using the other tools in this section (Tools adverse impact of substantial reductions in Risks are events or circumstances that expose a 4.03.06.1 to 4.03.06.5). earnings brought about by some of these events person or groups to possible loss or injury. This and circumstances. The International Labour term is often used interchangeably with the term Convention 102 on Social Security Minimum vulnerability since vulnerability is defi ned as Standards can serve as a good reference to know susceptibility or openness to attack, being hurt or more about such risks and interventions. injured. Vulnerability, however, covers a broader scope since the term includes those most affected by risks together with the lack of protection against the negative consequences (such as loss of income and inability to gain a living) of these risks.

International Labour Ofﬁ ce []Ó 259 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.06 SOCIAL PROTECTION FROM RISKS: WHAT AND WHY

In our everyday life, we are surrounded by various • Empower the members of the community as • Philippine Health Insurance Corporation (PHIC) risks. There are various types of risks and these they learn to identify various risks and decide • Home Development Mutual Fund or Pag-ibig can be understood from two perspectives: how to cope with them according to their own Fund needs and preferences. 1. The degree of uncertainty and • Increase their self-assurance and their belief in Over the years, the systems and mechanisms of 2. The relative size of the loss involved. their ability to infl uence their situations. the formal social security have not considered those sectors in the population whose incomes Social risks are events or circumstances that Social protection plays an important role in are irregular and unstable. This has led to the cause distress (oftentimes fi nancially) to a person improving living standards and increasing the mushrooming of various traditional mechanisms or household, usually resulting in a drastic productivity of people within a community. When among low-income communities that provide, reduction in income. Some typical examples people are taught and provided with opportunities albeit in a limited fashion, some forms of social of social risks include sickness, maternity, to be able to prevent the consequences or security to its members. These community-based unemployment, work-related injury, invalidity, occurrence of certain risks, then they are also initiatives provide a variety of social protection old age and death. Assessment Tool 4.03.06.2 protected from the ill-effects of such risks. In this benefi ts. Examples of these include: explains at length the major categories of risks manner, people are able to pro-actively improve that a social security program may cover and gives their living conditions as well as their capacities • Community Based Health Insurance examples for each of these categories. to generate income. Social protection also • Death Benefi ts or Mortuary Assistance contributes to social cohesion. • Scholarship Benefi ts WHAT IS THE IMPORTANCE OF SOCIAL • Crop Insurance PROTECTION? There are fi ve institutions in the Philippines • Loan Protection that are mandated to implement social security Social protection schemes, when organised at the schemes for all workers. These formal social WHAT ARE EXAMPLES OF STATE- community level help: security systems however are traditional designed SPONSORED SOCIAL PROTECTION POLICIES for workers in the formal economy. These are: AND PROGRAMS? • Increase the social integration of poor and vulnerable members of the community by • Social Security System (SSS) A key function of government is to provide and allowing them better participation in local and • Government Service Insurance System (GSIS) implement various social protection policies national development. • Employees Compensation Commission (ECC) and programmes for the benefi t of its citizenry.

International Labour Ofﬁ ce []Ó 260 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.06 SOCIAL PROTECTION FROM RISKS: WHAT AND WHY

Below are some examples of state policies and employers’ and workers’ representatives are closely Child-labour reduction programmes – These programmes: involved in administering it. programmes promote the development of human resources and increase access and opportunity Old-age pensions – that help governments care for Rehabilitation measures designed to facilitate return for all groups. These are usually accompanied by their older and ageing populations by public old- to work – Most people with a work disability are not comprehensive strategies for broad-based poverty age income support schemes or by occupational in the labour force. In an effort to integrate and reduction, or the reduction of child labour. or private pension plans, or retirement savings normalise the circumstances of disabled people, schemes, etc. mechanisms are implemented to help workers with Measures to assist the unemployed to fi nd work disabilities to return to work rather than simply to – Some countries implement certain social Short-term sickness benefi ts – If workers fall sick, pay them cash benefi ts. protection measures that guard against the risk of they need to have an alternative or replacement not being able, temporarily or permanently, to earn income. This need is widely recognised by Health care – Medical care is provided to maintain, a living and meet individual and family needs. social security schemes. Thus, most of these restore or improve the health of the persons Such measures include training and re-training schemes aim to not only provide security in such protected and their ability to work and to attend to programmes, vocational guidance and placement circumstances, but also to reduce or eliminate the their personal needs. The minimum content of the services. Efforts must be made therefore to fi nancial pressure on workers to carry on working benefi t covers general practitioner care, including seriously look at the coherence and synergy when sick. home visits; specialist care in hospitals and similar between labour market and employment policies institutions for in-patients and out-patients, and and social protection policies. Invalidity pensions – These are the benefi ts that such specialist care as may be available outside are typically provided by social insurance pension hospitals; essential pharmaceutical supplies; Social funds – which, through agencies, channel schemes. The need for such benefi ts is more pre-natal, confi nement and hospitalisation where grant funding to small-scale projects to help poor widely acknowledged. necessary. communities design and implement their own projects to meet their own stated needs. Workers’ compensation – These usually cover Social safety nets – these provide income security all cash benefi ts and services, in the event of and access to basic social services to the poorest Other social insurance arrangements – countries industrial accidents and occupational diseases. population groups, and/or those needing assistance such as Sri Lanka, Korea, and Japan have The costs are covered entirely out of compulsory after economic downturns, natural disasters, or systems that offer social insurance cover to groups employer contributions. In this scheme, both household-specifi c emergencies that lower income. of informal economy workers.

International Labour Ofﬁ ce []Ó 261 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.06 SOCIAL PROTECTION FROM RISKS: WHAT AND WHY

The following are examples of private-based social FORMAL SOCIAL SECURITY SCHEMES IN THE PHILIPPINES protection programmes:

• Social Security System (SSS): The SSS offers a comprehensive range of benefi ts as insurance Market-based programmes – Some private banks for retirement, death, disability, maternity, sickness, old age, death and work-related injuries. In or companies sell life or health insurance policies, addition, low interest loans are also made available to members especially during calamity and pension plans for retirement and access to credit emergency situations as well as for housing and educational needs. The SSS covers all workers when needed. NOT employed by government. • Government Service Insurance System (GSIS): The GSIS also offers a defi ned set of benefi ts and Informal arrangements – that support community is funded from salary-based contributions of all government employees. Except for maternity or family members through informal insurance benefi ts, all other benefi ts offered by GSIS are similar to those from SSS. arrangements. Arrangements can include • Employees Compensation Commission (ECC): The ECC assists workers and their dependents in marriage, children, mutual community support, the event of employment-related injury, sickness, disability or death. This is done through the savings or investments in human, physical, and provision of meaningful and adequate income benefi ts for medical and other needs. Employers real assets, and investments in social capital. pay the contribution to the EC fund with no counterpart from the employees. The fund is There are different institutions and players collected and administered by the SSS and GSIS. involved in offering these such as health services • Philippine Health Insurance Corporation (PHIC): PHIC is tasked to administer health care providers (Bangladesh), trade unions (Nepal), contributions and to develop a social health insurance system that will ensure affordable, cooperatives (Philippines), community-based adequate and accessible health care services for all Filipinos. Under this system, medical organisations (India), etc. services are obtained from accredited doctors and hospitals. Medical expenses are paid or reimbursed by PHIC using a ceiling of fees pegged according to the severity of illness suffered by KAPANIDUNGAN SA KALUSUGAN: AN EXAMPLE OF the member or by qualifi ed dependents A SOCIAL PROTECTION PROGRAM IMPLEMENTED • Home Development Mutual Fund (PAG-IBIG Fund): This fund is a savings scheme generated by THROUGH A PUBLIC-PRIVATE PARTNERSHIP voluntary contributions from employees in both the public and private sector with mandatory counterparts from their employers. The fund’s primary aim is to be able to provide fi nancing for The Kapanidungan sa Kalusugan (KSK), a social housing needs of members through savings. health insurance scheme being implemented in the Province of Batanes, Philippines is a social protection program initiated by a non- Source: M.E. C. Yap, Extending Social Security to the Informal Sector (Chapter 5), ILO Working Paper 10, May 2004.

International Labour Ofﬁ ce []Ó 262 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.06 SOCIAL PROTECTION FROM RISKS: WHAT AND WHY

governmental organisation called HEALTHDEV access through the health service providers in the has happened due to the wholehearted support of Institute. Through a Memorandum of Rural Health Unit in the municipalities. the Provincial Government of Batanes, the partner Understanding with the provincial government People’s Organisations and the assistance of the of Batanes, the KSK was initiated in 2003 by Presently, KSK has enrolled about 10 per cent of NGO partner. mobilising Federation of barangay Health Workers, the population and is expanding quickly. This a people’s organisation with chapters in all of the fi ve municipalities of the province. The provincial government established the social EXAMPLES OF COMMUNITY BASED INITIATIVES THAT PROVIDE SOCIAL PROTECTION IN THE health insurance offi ce of KSK and has expanded PHILIPPINES its Provincial Health Board to include the mayors of all of the fi ve municipalities. Furthermore, the • Health Care: These usually come in the form of free outpatient consultations and check-ups. mayors agreed to be part of the formation of an In some cooperatives, free medicines are given and partial reimbursements are also provided to Inter Local Health Zone to share in the fi nancing help defray hospitalisation, laboratory tests and surgery. and human resources to set-up the necessary • Death Benefi t or Mortuary Assistance: This benefi t is usually provided as a grant and is often health facilities to provide health care services limited to members of a cooperative or organisation. Mortuary assistance funds come mainly to the KSK members. The NGO, HEALTHDEV, from members’ contributions. then provides the technical guidance and initiates • Scholarship Benefi ts: Scholarship grants are also sometimes provided to children of regular the transfer of technology to the social health members of primary cooperatives. Grants come in the form of partial or full tuition coverage or insurance offi ce who performs the day-to-day allowances for daily expenses, books, school supplies, uniforms and board and lodging. administrative and operational functions. • Crop Insurance and Loan Protection: In the Philippines, loan protection and deposit guarantee services are provided for affi liates of the National Confederation of Cooperatives through the The KSK enrolls on a voluntary basis the different Coop-Life Mutual Benefi ts Services Association (CLIMBS). The Philippine Crop Insurance households in a municipality who seek to access a Commission, on the other hand, provides crop insurance as facilitated by the cooperatives. package of benefi ts of health care services both on an outpatient and inpatient basis. An agreed upon monthly premium is paid in exchange for a set Source: M.E.C. Yap, Extending Social Security to the Informal Sector (Chapter 5), ILO Working Paper 10, May 2004 of health care services that members are able to

International Labour Ofﬁ ce []Ó 263 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.03.06 SOCIAL PROTECTION FROM RISKS: WHAT AND WHY

WHAT ARE THE CONTRIBUTIONS AND RELEVANT RESOURCES CROSS-REFERENCES MAJOR INTERVENTIONS OF THE ILO IN SOCIAL PROTECTION? • Social Protection Sector: Enhance the Coverage • Tool 4.03.06.1, Action Tool: Developing social and Effectiveness of Social Protection for all as protection in your local economy The International Labour Organization (ILO) has part of ILO’s Decent Work Strategy. ILO June • Tool 4.03.06.2, Assessment Tool: Assessing adopted a strategy for increasing social protection 2000. social risks and vulnerabilities in the local through its DECENT WORK FRAMEWORK. This • Pension Schemes, Social Security Vol. 4. ILO economy framework aims to initiate and sustain social 1997. • Tool 2.05, Information Tool: Integrated Rural protection. • Administration of Social Security. Social Security Accessibility Planning (IRAP) Vol 2. ILO 1998. This framework aims to initiate and sustain social • Social Security Financing. Social Security Vol 3. protection programmes in ﬁ ve major areas, ILO 1997. namely: • Social Security: A New Consensus. ILO 2001. • Social Security Pensions: Development and • Social Security Reform. Colin Gillion and John Turner, et al. • Occupational Safety and Health (Eds.) ILO 2000. • Conditions of Work • Social Protection. Coudouel, A. and K. • International Migration Ezemenari, et al. ILO April 2001. • HIV/AIDS in the workplace • Introduction to Social Security. ILO 1984. • HIV-AIDS: An ILO Code of Practice. ILO 2000. http://www.ilo.ru/aids/docs/ilo/hiv_a4_e-f.pdf

International Labour Ofﬁ ce []Ó 264 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.06.1 4.01.07 INFORMATIONACTION TOOL TOOL

THEDEVELOPING START AND SOCIAL IMPROVE PROTECTION YOUR BUSINESS IN YOUR LOCAL(SIYB) COMMUNITYPROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, by companies). In addition, social protection Aside from State-run national programmes, many economic growth, entrepreneur, institution- programmes also improve income distribution. other forms of social protection are delivered and Thisbuilding, action management, tool suggests marketing, guidelines micro on how and implemented by non-government institutions, bestsmall to enterprises, approach the trade problem union, of training local risk and These realities and issues are very important private organisations and other civil society vulnerability in a systematic way. This tool lists because more and more, there is growing groups. These various approaches have come some practical ideas and techniques to help evidence that in countries where great inequality about through the attempts by different institutions development practitioners and planners help local in income distribution and wealth exist, there is an and organisations to reduce social risks and communities cope with the most common forms of associated slow growth due to poor policy choices, vulnerabilities experienced by their beneﬁ ciaries risks that they encounter. civil unrest, absence of unity and social cohesion and constituents. in communities and populations. SOCIAL PROTECTION AND ECONOMIC Thus, in the Philippines and in many parts of the GROWTH WHAT ARE SOME OF THE WAYS BY WHICH world the wide range of experience has led to the COMMUNITIES ARE ASSISTED IN DEALING accumulation of a good body of knowledge and It has often been said that economic growth and WITH RISKS AND VULNERABILITIES? practical methods in social protection. development, as well as fair and equal income distribution, are needed to reduce poverty. An essential step needed in planning and crafting There are many types of social risks and Social protection programmes contribute to social protection policies is identifying and vulnerabilities that communities are exposed to poverty reduction by lessening or preventing developing ways of addressing and managing (see Tool 4.03.06.2). However, due to limited extreme swings in income cycles, by ensuring social risks or weaknesses. There are currently resources and limited capacities, government and long-term investments in human resources, many ways to do this. The approaches differ civil society organisations have had to prioritise the and by compensating and assisting people primarily with respect to the “delivery system” social risks that they seek to address, and often who are affected by policy changes meant to or vehicle by which the interventions are implement programmes that focus on a particular promote economic growth and development (for implemented. risk, with the belief that mitigating the negative example, downsizing and outsourcing of services

International Labour Ofﬁ ce []Ó 265 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

consequences of these risks would facilitate the of their own constituents or member-benefi ciaries. during times of crisis or catastrophe of some of its development process. Some of these may be supported by international members. Material and non-material support is development agencies that also seek to contribute extended to those who have been affected. Social protection approaches and interventions to the betterment of the plight of marginalised range from national, formal programmes to and vulnerable groups. These schemes are Over the past two decades, as more and more civil traditional and non-traditional community-based usually limited in scale or coverage; they are often society groups have involved themselves in more initiatives. confi ned to specifi c geographical communities or local communities in the Philippines, other forms sectors. They tend to focus on a few key social of non-traditional initiatives have arisen. These NATIONAL PROGRAMMES needs and risks that are believed to have the include microfi nance and livelihood initiatives greatest impact in the development (or lack of it) that are sometimes tied to health programmes These are programmes implemented by the in their communities. as a means not only to improve the individual’s State or Government using its vast network and income but also to ensure access to preventive capacity for scale or reach. These are usually Some traditional community-based initiatives and curative health services. There have also operationalised in the form of policies or legislation encompass the provision of fi nancial support been some very creative means of providing social enacted by the President upon approval by through a system of forced saving or fund-pooling, security in the form of community-based early Congress and the Senate, and carried out by the known in the Philippines as paluwagan. Groups child development centres or day care centres appropriate branches and units of Government. of individuals put forward an agreed amount of and community rehabilitation programs for the money and the pooled fund is awarded to one chronically ill. Many of these efforts are still TRADITIONAL AND NON-TRADITIONAL member each month with a rotation system so that deeply rooted in traditional Filipino values like COMMUNITY-BASED INITIATIVES all members who contribute get to have a turn in Bayanihan. receiving the pooled funds. This is considered These schemes arise usually as an off-shoot of traditional as a similar system has already been in a perceived inability of the State to carry out its practice for a long time among Filipino ancestors. responsibilities, hence driving civil society groups – non-governmental organisations and peoples’ Another traditional mechanism is known as organisations, to craft and implement their own damayan. The spirit of solidarity is invoked social protection measures, specifi c to the needs among families, clans, ethnic groups especially

International Labour Ofﬁ ce []Ó 266 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

Innovative practices and programmes that are successfully implemented in the Philippines

Lead Agencies or Champions Practices and Programmes Risk(s) Addressed Key Insights and Observations (Philippines)

EDUCATION

Increasing the coverage of existing Life cycle risks – education and Government Agencies like the Dept of A successful model that is being implemented in some municipalities in La Early Child Development (ECD) formation of young children, Social Welfare and Development, Dept of Union Province where Early Child Development Programmes have managed Programmes need for caretakers for children Education to empower mothers and caregivers and to organise them and expand the especially if both parents are trying range of social protection services to include access to health care. These to earn a living International and local non-government programmes are most effective at the community and LGU level. organisations like Save the Children, Plan International, ORT

Providing counselling and tutoring to Life cycle risks – costs of Government Agency – Dept of Education, Some private academic institutions and universities have spearheaded as keep children in school and reduce educating children, providing Commission on Higher Education part of their community extension work to conduct tutoring and counselling repetition rates sufﬁ cient training to make children Academic Institutions sessions to children in the public school system. This is done to augment the responsible and economically Local and International NGOs poor quality of education in public schools due to a high teacher to student productive citizens ratio, lack of textbooks and classrooms.

These activities are best done through a partnership between government and private organisations. The public educational systems can provide the structure and mechanism to implement the program while private organisations can ﬁ eld human resources and extend technical support to counselling since government personnel are too burdened with responsibilities that they will not have the time to do this.

Designing scholarship programmes Life cycle risks – education of International and Local Agencies and Deserving and gifted students coming from poor families are given tied to school attendance children Foundations. opportunities to get quality education through scholarship opportunities provided them and to ensure regular attendance in classes. National and local governments that own and operate State Universities and Local Colleges

International Labour Ofﬁ ce []Ó 267 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

Lead Agencies or Champions Practices and Programmes Risk(s) Addressed Key Insights and Observations (Philippines)

HEALTH EDUCATION AND DISEASE PREVENTION

Providing nutrition supplementation Health risks and Life cycle Government Agencies – Dept of Health, Nutrition surveillance and supplementation are programmes that are for malnourished children risks such as susceptibility to Dept of Education, Dept of Social Welfare frequently done by government and many civic organisations. This is driven by diseases like tuberculosis and and Development the belief that poor nutrition leads to a poor economy due to a stunted brain other infections, also poor brain International and Local Organisations development which eventually does not allow a future workforce to be globally development due to poor nutrition – UNICEF, health NGOs, etc competitive due to an inability to apply the necessary skills and knowledge needed to thrive.

This initiative is effective when implemented at the LGU level where the facilities of a Rural Health Unit can be harnessed and mobilised together with barangay Health Workers to assist in the activities.

Providing information sessions on sex Academic Institutions, Private Foundations, In this era where the threat of HIV-AIDs and other Sexually Transmitted education and employment for teens International and Local Organisations, Diseases are very real coupled with uncontrollable population explosion, Government Agencies like Youth services that provide information on reproductive health, gender and sexuality Commission have been advocacies of some schools and civil society groups. There is an effort to inﬂ uence and shape the young minds to be responsible.

Increasing investment in water and Health risks - illnesses brought Government Agencies – Dept of Health, Access to safe and potable water coupled with proper sanitation and waste sanitation provision about by poor environmental Dept of Public Works and Highways, Local disposal are pressing and urgent needs in many communities. The absence sanitation and lack of clean water Government Units of these basic services exposes local communities to many health risks and source illnesses. Thus, the provision of these services can signiﬁ cantly provide social Private Organisations and International protection to many communities. Development Agencies

Ensuring availability and accessibility Health risks Government Agencies – Local Government Health, a basic need is one service that is provided by many groups all in the of social services such as health care, Units, Dept of Health, Dept of Social effort to lessen risks of complications due to illness and the loss of income due especially for women Welfare and Development, PHIC to disease including the risk of deepening poverty due to high costs of health Civil society organisations – NGOs, care services. Cooperatives, Civic Groups

International Labour Ofﬁ ce []Ó 268 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

Lead Agencies or Champions Practices and Programmes Risk(s) Addressed Key Insights and Observations (Philippines)

HOUSING AND PUBLIC WORKS

Expanding the coverage of land Life cycle risks – shelter and Government Agencies – National Housing Decent shelter and housing is a basic need. The phenomenon of urban and housing relocation and titling housing Authority, Metro Manila Development migration and squatters becomes more and more present especially in big programmes Authority cities where people perceive that there will be more job opportunities for them. Thus, the issue of land ownership and housing then become very real to Civil Society Groups – Urban Poor these individuals as they do not mind packing themselves in congested, small Networks, Local NGOs, Extension rooms, exposed even to the elements simply because they do not have homes. Programs of Academic Institutions

SUBSIDIES, TRAINING, LIVELIHOOD OPPORTUNITIES

Increasing the coverage of non- Life cycle risks – retirement and Government Agencies – Philippine Health Traditionally, in the Philippines, families are characterised as being closely- contributory pensions. ageing Insurance Corporation, Social Security knit and extended. This means that the aged and infi rm are cared for System, Government Service Insurance even if families have fi nancial and material diffi culties in doing this. Thus, Increasing the coverage of housing Health risks – care for the elderly System, PAG-IBIG Funds through a tax based system, the economically active workers are required subsidies to become members of the state-implemented social security programmes Civil Society Groups especially cooperatives whose contributions then are used to provide for pensions. Also the social health insurance scheme covers for free all retirees and elderly. There is also a programme being implemented by PHIC to cover for indigents whose premiums are paid for both by the national and local government. In this case, the indigent families benefi t from health services but do not need to pay premiums as these are under sponsorship.

Locally, cooperatives also implement some mechanism to establish pension funds to take care of members when they retire as well as their dependents.

Some cooperatives and private organisations also provide some additional housing subsidies for their members and their dependents to help defray housing costs and rental or to enable them to build their own homes for their families.

International Labour Ofﬁ ce []Ó 269 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

Lead Agencies or Champions Practices and Programmes Risk(s) Addressed Key Insights and Observations (Philippines)

Expanding targeted training and job Life cycle risks – job opportunities, Government Agencies – Technical Community-based training programmes for practical sources of livelihood search programmes capabilities to be able to compete Education and Skills Development are being disseminated in communities in order to provide opportunities for in a global market Authority (TESDA), Dept of Labour and household members to augment family income. Employment

Corporate Foundations and Private Firms (Local and International)

Undertaking public works Life cycle risks - loss of income Government Agencies – Local Government Farm to market roads are needs in many far ﬂ ung hard to reach communities programmes designed to maintain generating opportunities due to lack Units, Dept of Public Works and Highways in the Philippines. Although this innovative programme is very limited in productivity. of access International Agencies especially JICA scale and reach, there have been some efforts to make more communities accessible to markets in order to ensure a more sustainable livelihood and economic activity.

WHAT IS THE POSSIBLE MIX OF POLICIES of risks that various sectors of the population are the necessary network and scale to be able to IN SOCIAL SECURITY? exposed to, the government alone cannot respond reach even the most far-ﬂ ung communities. to the needs of its citizenry. In order to ensure Furthermore, government structures and systems Although it is recognised globally that social that a comprehensive social security coverage of are here to stay. In contrast, the private sector has protection is a basic human right – a core various risks takes place, a mix of policies and limited reach and is not as permanent as public need, good and value – and as such it should programmes, which are implemented both by the institutions. be available to all members of society, there public and private sector, has to be put in place. is no one policy or programme that singularly However, the burden of providing social responds to this need and challenge. The State, as Traditionally, the delivery of basic social protection DOES NOT rest on the shoulders of mandated by its constitution, has some systems services such as education, health care, water government alone. While national level policies and structures in place that seek to protect its and sanitation, are viewed to be solely the and systems are necessary, there is room for the citizens and its labour force from certain risks. responsibility of government. This is because active intervention and practical action by Local However, due to the complex and broad nature the government bureaucracy and system has Government Units (LGUs) and community-based

International Labour Ofﬁ ce []Ó 270 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

non-governmental and peoples’ organisations. HOW DO WE GO ABOUT CHOOSING THE Local development planners and policy makers The enactment of the Local Government Code of APPROPRIATE MIX? should bear in mind that certain populations 1991 has put the LGUs in the frontline of delivery or sectors in a community experience a higher of social protection policies and programmes to FIRST STEP:UNDERSTANDING AND ANALYSING degree of vulnerability and have a greater need their constituents. And, as in the case of national MAIN RISKS AND MOST AFFECTED POPULATIONS IN for social protection. At the same time, limitations government, a limited resource pool provides the COMMUNITIES in material and human resources do not enable impetus for LGUs to establish strong partnerships the LGUs to attend to all the needs of the entire and links with the private sector and civil society The fi rst step in choosing an appropriate mix population at the same time. It is therefore in order that they will truly be able to carry out of risk-reducing policies or programmes is necessary to prioritise which sectors of the responsive and appropriate social protection identifying and analysing the main risks facing population should receive attention, based on: programmes in their communities. the population and its causes. This is followed by an identifi cation of the population groups most 1. Identifi cation of the different sectors and sub- Thus, social protection can comprise of a mixture affected by these risks. Users and readers of this sectors in the community; of schemes both from government and the private tool should refer to the Assessment Tool 4.03.06.2 2. Knowledge about their distinct characteristics sector in order to cover a broad range of risks for a more thorough discussion of how best to and circumstances; and that communities are exposed to. This is best assess risks and vulnerabilities. 3. Assessment of risks that they are exposed done after a thorough assessment of risks that a to, and the negative impact of these risks on community is exposed to and a rigorous selection Is this population more prone to natural calamities these groups. of priorities in view of limited resources. Such an such as typhoons and fl oods? Excessively initiative is best driven and orchestrated by LGUs high population growth? An aging population? The table on the succeeding page explains because they have the mandate and structure Inaccessibility and lack of basic health services? the range of major risks that communities and to carry out a comprehensive planning and These are just examples of questions that a populations may be vulnerable to. implementation of programmes and policies. development planner must seek to answer.

International Labour Ofﬁ ce []Ó 271 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

Major risks

After identifying the groups and their Major Risk Groups Defi nition or Examples characteristics, it is important to assess how Life Cycle Risks Refer to expenditure requirements related to children’s education, marriage, maternity and retirement social protection can play a role in reducing risks among others. Life cycle events are events that commonly occur in the life of a person and families. While households are generally aware when these events will occur, the high likelihood and frequency and vulnerabilities. Please note that the use of of their occurrence create an on-going uncertainty among households about the suffi ciency of income the terms risks and vulnerabilities in this tool is or assets to cover the cost associated with these events. deliberate based on the defi nition of these terms Death Risks Refer to the costs that a household incurs resulting from the death of a family member. The degree of in Information Tool 4.03.06. uncertainty regarding death is greater than those due to other life cycle events, Although every person will die one day, it is uncertain as to when this will happen. SECOND STEP: IDENTIFYING GROUPS CURRENTLY Property Risks Refer to situations such as loss or destruction of assets in a household, especially those that are COVERED BY EXISTING SOCIAL PROTECTION necessary in the performance of an economic activity. Loss of crops or produce, illness or death of livestock, homes destroyed by fi re or damage to equipment due to fl ooding are some examples of PROGRAMMES AND DETERMINING GAPS property that people need to be protected against.

Health Risks Risks due to illness, accidents or injuries are circumstances that will require persons or families to After understanding and analysing the risks and seek and pay for medical treatment. The cost of treatment may be a one-time expense or a series of vulnerabilities in a population, it is important to payments over time due to prolonged treatment. A corollary risk brought about by illness is the inability to work and earn a living, either temporarily or permanently, hence loss of income. identify which of the affected groups are presently enrolled in or covered by existing social protection Disability Risks These are similar to health risks. However, there may be a greater degree of loss to a household when a member becomes disabled since prolonged treatment and rehabilitation may be required. Again, the interventions. The Assessment Tool: Assessing disability may prevent the household member from generating income for the family. Social Risks and Vulnerabilities in the Local Mass, Covariant Risks Refer to the threat of an event that may affect a signifi cant portion of a population at the same time. Community (Tool 4.03.06.2) will be a very helpful Examples of these events are epidemics, natural disasters – earthquakes, typhoons, fl oods, volcanic complementary tool for doing this second step. eruption, war and political and economic crisis. These risks tend to be diffi cult or impossible to predict. They usually affect many people all at the same time and the cost related to these risks are usually much more than those incurred from other risks. A further step is to make an assessment on the Source: M.E.C. Yap, Extending Social Security to the Informal Sector (Chapter 5), ILO Working Paper 10, May 2004. effectiveness of these instruments individually and in combination. Some questions that need to be asked and answered are: do the specifi c objectives of each intervention complement each

International Labour Ofﬁ ce []Ó 272 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.1 DEVELOPING SOCIAL PROTECTION IN YOUR LOCAL COMMUNITY

other? Are the outcomes delivered in a cost- This action plan will serve as guide and template RELEVANT RESOURCES effective manner? for all concerned to ensure that all immediate and intermediate steps are taken to contribute • Social Protection, 2001 http://www.ilo.org/ By asking and answering these questions, to the achievement of medium and long-term public/english/protection/info/imprep2k-01/ planners will be able to capture and gain goals of the overall poverty reduction strategy in a index.htm a better sense of the gaps in coverage and community. • Social Security: A New Consensus, 2001 http:// cost-effectiveness of existing interventions. A www.ilo.org/public/english/protection/secsoc/ good analysis of existing programmes and The Action Tool: Extending Social Protection To downloads/353sp1.pdf policies, together with information on alternative Local Communities (Tool 4.03.06.4) is a very good • Social Security Pensions: Development and interventions and the challenges and limitations complementary guide for doing this ﬁ nal step Reform, 2000 http://www.ilo.org/public/english/ that confront the effective implementation of comprehensively and correctly. bureau/inf/pr/2000/14.htm social protection interventions provides the basis for determining the most effective mix of such initiatives. CROSS-REFERENCES

THIRD STEP: DEVELOPING AN ACTION PLAN • Tool 4.03.06, Information Tool: Social protection from risks: what and why. After identifying the most common and prevalent • Tool 4.03.06.2, Assessment Tool: Assessing risks, the population group most affected and social risks and vulnerabilities in the local understanding present social protection coverage community. and gaps, the fi nal step is to develop a road • Tool 4.03.06.4, Action Tool: Extending social map or action plan that specifi es the objectives, protection to local communities. required resources, realistic timetables and persons responsible for each of the key actions steps identifi ed.

International Labour Ofﬁ ce []Ó 273 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.06.2 4.01.07 INFORMATIONASSESSMENT TOOLTOOL

THEASSESSING START ANDSOCIAL IMPROVE RISKS YOURAND VULNERABILITIES BUSINESS (SIYB) IN PROGRAM THE LOCAL COMMUNITY

OBJECTIVEKEYWORDS: Business plan, capacity-building, WHO ARE THE VULNERABLE OR AT-RISK deeply rooted in structures and systems that have economic growth, entrepreneur, institution- GROUPS IN THE COMMUNITIES? WHAT already been in existence for a long time. On the Thisbuilding, assessment management, tool provides marketing, information micro and and TYPES OF VULNERABILITIES OR RISKS DO other hand, there are risks that are temporary, techniquessmall enterprises, that local trade policy union, makers, training planners THEY USUALLY FACE? immediate and relevant only to particular and development practitioners can use to assess circumstances or situations. Naturally, those risks social and economic vulnerability and risks that In crafting and designing the appropriate policy that are deep-rooted also have been in existence confront and are experienced by people in the interventions, it is important that the vulnerable for a long time and tend to affect many people. communities. This assessment tool is a further groups are fi rst identifi ed. As in many situations, Thus, to a development planner and policy maker, elaboration and guide in going about the fi rst limitations in various resources do not allow the the approach to take in mitigating or lessening two steps on determining and assessing risks in implementation of policies that encompass all the negative consequences of these risks require communities. It will also be helpful to refer to the groups immediately. Thus, it is important to start more intensive, long-term planning as well as the other accompanying tools on social protection as with groups who have the most diffi culty in coping involvement of more stakeholders. these help to enlighten and make this assessment with the social and economic challenges that tool easier to utilise. confront them. Risks that may be considered temporary and immediate usually result from specifi c events or After they have been identifi ed, a necessary circumstances. These may be localised in impact. next step is to list down all the risks that these This means that these events or circumstances groups face and to name the sources of their affect only certain groups or persons either vulnerabilities. There are many ways by which the through a geographical divide or a cultural divide. identifi cation of major sources of risks faced by the poor can be done. It is important to understand and observe the nature of risks and the different types of risks Risks can be classifi ed according to various because, as had been repeatedly mentioned in the features. There are risks whose causes are various tools, the development of different social

International Labour Ofﬁ ce []Ó 274 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

protection schemes and strategies are dependent the mother needs to take care of her child. Loss that put a signifi cant fi nancial impact on the to a large extent on the nature of risks and their of employment can occur very commonly during earnings and income fl ow of workers. Happy and different types. maternity when a woman worker is asked to “positive” occasions like marriages, births, fi estas choose between supporting the child and making and other cultural and religious celebrations It has been observed that exposure to risks not out a living. and obligations can create the same economic only adversely affect the fl ow of income of workers stresses as “negative” events like illness, death but even simultaneously increase expenditure Death or disability: There is income loss when and unemployment. even as the income is greatly reduced. The an economically productive member of the family following are common risks that a population gets disabled or dies. Funeral expenses bring Another useful way of understanding risks is especially women confront (Lund and Srinivas, about additional drain to income. classifying them according to the statistical 2000): probability of the risk occurring. This provides Loss of assets: Property or assets are lost due a good basis for customising different schemes Ill health: both short- and long-term illnesses to fi re, fl oods, theft, drought, and riots and civil according to the communities’ needs. and emergency care do not allow people to unrest. For many informal sector workers who be productive or to work, thus increasing the are street vendors and peddlers, loss of goods HOW DO I ANALYSE RISKS AND possibility of losing a job due to long or frequent or destruction of wares to sell by police, local VULNERABILITIES IN LOCAL absences from work. government authorities and extortion is also very COMMUNITIES? common. Reproduction and child rearing: These two events After having identifi ed and listed down the sources are considered risks and are important because Unemployment: Some structural and cyclical of risks and vulnerabilities, each type of risk they simultaneously increase the risk to the health events in the economy may lead to income loss. should be described, assessed, documented and of women, interrupt fl ow of income and may also The risks mentioned above can also lead to mapped according to its: increase expenditures on care both for the mother income loss due to unemployment. and child. Cost of caring and rearing children kick • Frequency – To be able to arrive at this in when both parents are working. Child rearing Increased expenditure for social events: Normally, information, one needs to ask the question: costs consist of expense paid for caregivers or social events are happy occasions and are not How many times a year are people exposed to day care centres or the cost of earning a smaller seen as risks. In reality however, these events or are affected by the risk? income due to loss of working opportunity when can also be considered “economic stress events”

International Labour Ofﬁ ce []Ó 275 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

Typology of risks by nature of risks • Severity and scope – It is also important to know the extent by which the individual, Typology of Risks Example family or community has been affected by the

Low frequency • Serious illness, emergency hospitalisation, being widowed. occurrence of the risk event. Some helpful Occurs infrequently in a person’s lifetime questions to answer are – How have people

High frequency • Chronic illness, occupational health hazards or minor illness. been affected by this risk? Have they lost their Occurs frequently in a person’s lifetime homes? Did they get sick? Did they have to

Idiosyncratic • Non-communicable illnesses affecting workers or family members borrow money because of an expense incurred Occurs randomly and affects the • Occupational health risks due to the occurrence of this risk? How many individual or household • Loss of assets due to use of particular type of damaged seeds • Flooding in the zone where the worker lives or works people are affected? • Destruction and looting of assets by vandals (or by regulating authorities) and • Impact on individuals or groups – Although confi scation by regulating authorities, with fi nes paid to reclaim assets. These may include destruction of vegetables, fruit stocks, confi scation of carts and stalls, somehow similar to the point above on severity, removal of license to vend in certain areas. it is also important to fi nd out the impact

Covariate • Flooding, infl ation, drought or effect of the risk event on an individual’s Occurs randomly but affects many • Area riots that affect all workers / household / enterprises in the area. Large situation. Relevant to questions to ask include – individual workers/households/entire covariate shocks may be very diffi cult to deal with rapidly, are often diffi cult to What has happened to the individuals or groups community simultaneously anticipate and even in cases where this may be possible, may be devastating to the populations concerned. Unregistered workers or small businesses do not have that have been affected by these risks? What access to any recompense or safety net should any of these events happen to them. has been the impact of exposure to these risks Repeated shocks • Persistent drought on their day-to-day living and on their future? Occurs as a series of repeated risk events • Repeated fl ooding and typhoons What has been the effect on their income? affecting individuals or the community – for example, covariate and repeated What has been the effect on the level of social

Source: interaction between groups and families? What Lund and Srinivas, Learning from experience: A gendered approach to social protection for workers in the informal economy, ILO-STEP, ILO, 2000. has been the effect on the people’s access to social services?

International Labour Ofﬁ ce []Ó 276 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

WHAT ARE SOME INDICATORS OF RISKS achieved. Indicators help planners, programme The table below are guides for setting up AND VULNERABILITIES? implementers and decision makers in making indicators of risks and need for social protection decisions. in a community. The information needed to fi ll up Indicators are descriptions, characteristics or this table below can be accessed through primary measures that are used for determining the nature In order to identify and measure risks and or secondary data collection. and magnitude of a certain problem or condition, vulnerabilities, and determine the need for social for monitoring changes, and fi nding out whether protection, it is necessary to use indicators that are progress towards a specifi c objective has been most relevant or suitable for the area or population.

Indicators of exposure to risk

Risk Frequency of Exposure Severity Scope Possible Sources of Information

Natural or weather How many times in one year in How were the people and communities • How many households or individuals were affected Branches of PAGASA or PhilVolcs related catastrophes a community? affected? per calamity or catastrophe? DSWD or DOH Records and other calamities Examples: • Who are these households or individuals? National and Regional Disaster • Typhoons • Loss of property • When feasible, it is helpful to plot the households or Coordinating Councils • Flooding • Destroyed homes individuals affected according to geographical area. • Drought • Individuals who got sick due to exposure • Earthquake to ﬂ ood waters, rainy weather, congested • Fire evacuation areas • Deaths due to natural calamities Illness How many times in one year in • In what way did the illness affect the • How many individuals or households were affected? Records and data from DOH, Rural • Minor illness a household? individual or household? • How many deaths occurred due to these illnesses? Health Units, Public Hospitals • Serious illness • Loss of income due to inability to work • How many private and public health facilities and Records from DSWD • Emergency because of illness or in order to take care personnel – outpatient clinics, rural health units, Household surveys through barangay hospitalisation of the sick barangay health stations, hospitals, private and health workers and local government • Chronic illness • Loss of assets that were sold or loaned public doctors, midwives, nurses are available in the ofﬁ ces • Work related out in order to get funds for payment of local community that people can go to for their health illnesses bills care needs? • Accidents • Prevalence of some common illnesses: • How many children have been orphaned due to • Disability Tuberculosis, Diarrhoea, Pneumonia, death of parents? Upper Respiratory Infection, Heart • How many have been widowed due to death of Illness spouse?

International Labour Ofﬁ ce []Ó 277 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

Risk Frequency of Exposure Severity Scope Possible Sources of Information

Unemployment Unemployment Rate per • How are unemployed households • Percent of population in a community affected per • Informal inquiries from existing quarter affected? income class, especially Income Classes C, D and E local cooperatives and rural banks • Increase in loans incurred in the community; • More requests for assistance for jobs and • Observation and informal other fi nancial needs from Local Chief assessments from Mayor’s Offi ce, Executives and local leaders DSWD records, etc • Decrease in level of business and • Inquiries from local usurers, commercial activity in local communities pawnshops • Local registration records (Mayor’s permit, etc) to check on increase in informal economy businesses – market vendors, tricycle and jeepney operators, cigarette vendors, newspaper vendors, other small household businesses Life cycle events Listing of key events in Estimated expenditure per event How many households and individuals are involved?• Enrolment records of local public Social events households: enrolment of schools children in school, births, • Household surveys marriages, cultural and • Birth, marriage, and other civil religious celebrations, registry records obligations • Local fi estas and traditions in communities

It is to be noted that the information that may required. It is simply a matter of collating existing community is exposed to is natural calamities. be required to make the table above useful may information and organising these according to how The other information that can be obtained from not always be available in the form and manner they can best help to determine the population’s the indicators mentioned point out levels of risks that is needed. Government ofﬁ ces such as the level of exposure to risks and vulnerabilities. For and exposures depending on the absence of Department of Health, the Department of Social example, if the particular community is within the facilities or excessively high prevalence of disease Welfare and Development and statistics ofﬁ ces typhoon belt and regularly suffers from weather- that are noted in these communities. regularly gather similar data and information and related catastrophes, then, it is correct to say that are good sources for the information that may be one of the greatest risks that the people of the

International Labour Ofﬁ ce []Ó 278 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

INDICATORS FOR CAPACITIES TO DEAL similar interventions to help poor households allocate for social protection. This may not be very WITH RISKS AT THE LOCAL LEVEL obtain steady and affordable credit; it is easy to determine especially in terms of private important to especially look at the number of expenditures. INDICATORS ABOUT COVERAGE OF SOCIAL benefi ciaries of these schemes and the percent PROTECTION PROGRAMMES AND SCHEMES of poor population who benefi t from these In relation to public spending for social protection, schemes; a way to determine this is to examine the budget This set of indicators looks at the existence and • Percent of poor and non-poor covered by allocations of various local government department coverage of various forms of social protection in social health insurance (e.g. PhilHealth) or units in terms of what they earmark for the local community. An example of mechanisms other formal and non-formal health insurance administering and implementing social protection or structures is cooperatives that provide access to schemes; through health facilities, welfare facilities and local credit or consumer goods and can help alleviate • Extent to which cooperatives and other branches of social security agencies. or mitigate vulnerabilities in times of need. community-based organisations exist and People also devise ways and adopt arrangements provide services; how many members do these In order to determine private expenditure, some aimed at minimising their exposure to risks and cooperatives have; percent of membership from indirect sources of information include levels of the consequences, such as alternate cropping, the local community; number of members who contributions to health insurance, to credit unions irrigation, and multiple income sources. are poor and other signifi cant demographic and other similar agencies. Also, the following can The table below can be used to list and assess characteristics of members; be used as indicators to assess private strategies the existing social protection mechanisms at the • Extent and awareness of key programmes such for reducing vulnerability: local level. Users should fi ll-in the table according as HIV/AIDS or those concerning reproductive to the circumstances in their own setting and health; number and percent of people in the • Percent of poor households receiving donations local communities. This table is not meant to be community covered by these programmes; (or dole-outs), average amount of donation, comprehensive; it is only an example of how the source of donations; assessment can be done. INDICATORS ABOUT FINANCIAL CAPACITY FOR • Percent of poor households with savings SOCIAL PROTECTION accounts, including average amount of savings; In order to be able to fi ll-in this table, the following • Percent of poor households with more than one indicators may be assessed: As development planners and policy makers, it is source of income; important to determine the level of expenditures • Percent of poor farmers using irrigation or • Existence of micro-fi nance schemes, and other that both the public and private sectors of society planting several different crops

International Labour Ofﬁ ce []Ó 279 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

Listing and assessment of social protection mechanisms at local level

Social Protection Mechanism Key Implementers Target Benefi ciaries Percent of Poor Population Risks addressed Remarks (Examples of Actual Who are the main player and Who are the people and Covered Issues Programme or Scheme) drivers of the scheme? households that are served or How many of the benefi ciaries Who administers the scheme? intended to be served by these of the scheme are poor? It is schemes? best to determine an income level that will help to defi ne who belong to the poor population based on this arbitrary parameter.

EXAMPLE OF HOW TO FILL UP THIS TABLE

Microﬁ nance Schemes Rural Banks, Cooperative Informal sector workers: Five percent of poor members All risks that lead to a decrease This mechanism serves as Banks, farmers, ﬁ sher folk, small of the community (example in income or loss of capacity a general measure to assist Examples: Primary and secondary entrepreneurs, only) to earn a living that has led to individuals and households who Loans through Credit cooperatives situations of worsening poverty are exposed to risks such as ill Cooperatives, Cooperative Federations (e.g. among households and among health and loss of assets. This Rural Banks, NATTCO), individuals mechanism provides access to Quedancor, People’s Credit some funds to augment needs Finances Corp, International of households. It may also be and Local Funding Agencies used to serve as start-up capital (e.g. Peace and Equity for small livelihood projects. Foundation, CARD, PSPI)

INDICATORS OF OUTCOMES one can then assume that this community has separate by rural/urban and, ideally, by different not coped well with the various risks that it has potentially vulnerable groups, including elderly These set of indicators are meant to capture the been exposed to and that the community has not and widows effect of exposure to risks and vulnerabilities on benefi ted from social protection programmes that • Levels of “permanent” versus “temporary” the population. Indicators of poor outcomes imply may or may not be in place. poverty. Although this classifi cation is quite high risks and/or poor level of social protection. arbitrary, it is a useful way to determine For example, if, in a community, the poverty Examples of outcome indicators are: poverty in terms of time – households that headcount increases, the dropout rate is high, continue to remain in diffi culty and poverty or malnutrition and child labour are increasing, • Poverty headcount and depth, If possible with continuing absence of source of regular

International Labour Ofﬁ ce []Ó 280 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

income or livelihood for more than six months who do not have proper nutrition. Household Level can be considered “permanent”. On the other • Percent of the population in your community hand, those who experience unexpected or who are continuously in debt or who pawn • Identify the Name, Age, Sex, Civil Status, extraordinary loss of income but have regular assets and regularly utilise illegal loan sharks Educational Attainment of respondents sources of livelihood and have the capacity to and usurers. • Indicate the number of household members be able to slowly recover from this loss can be who are working considered “temporary”. CHECKLIST • Identify present occupation and main source of • Prevalence of seasonal hunger, i.e. families or income households who during certain periods of the The following is a checklist for fi nding out whether • How much does the family spend monthly on year, are not able to eat three full meals a day people are well prepared to cope with social and food, education, utilities – water, electricity, • Child malnutrition rates economic diffi culties. The items in this checklist telephone, etc, personal necessities, • Unemployment rates and estimates of are aspects that a development planner may look entertainment, transportation, health care, underemployment at in order to describe, characterise or measure others? • Primary school dropout rate (for boys and girls) the level of social protection in the community or • Which benefi ts would you value most highly • Incidence of child labour including the number the extent of the need for social protection. It can (please rank): health, pension, accident and and percent of households who depend on also help to show which aspects are of greatest death, education, unemployment, housing, earnings of child workers need and thus must be prioritised. maternity? • Hours worked by children • How much are you willing to pay in order to • Estimated percent of children or families The checklist can be converted into a survey receive protection from the possible negative left vulnerable or destitute as a result of questionnaire if planners have decided that a consequences of being exposed to such risks communicable diseases that have affected more detailed and systematic data gathering such as illness and hospitalisation? members of their family especially the main activity is required to arrive at appropriate income earner of the family. Examples of programmes and policies. You can seek the help Community Level communicable diseases include tuberculosis of a social scientist or researcher to ensure that and dengue hemorrhagic fever. These illnesses the questionnaire is designed and implemented in • How many groups in the community suffer are those that are transmitted from one a correct manner that ensures the completeness, from extreme poverty? (It is important to person to another and are prevalent in many accuracy and validity of data obtained. defi ne a range or level of income that is used congested, unsanitary places and affect those as parameter to identify extreme poverty. For

International Labour Ofﬁ ce []Ó 281 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.2 ASSESSING SOCIAL RISKS AND VULNERABILITIES IN THE LOCAL COMMUNITY

example, monthly household income below COMMUNITY SURVEY AND OTHER METHODS RELEVANT RESOURCES 6000 pesos) • How many in the community are dependent Tool 4.03.06.5 provides an example of a survey • Social Protection, 2001. http://www.ilo.org/ upon seasonal employment and income? instrument that may be used to gather valuable public/english/protection/info/imprep2k-01/ • What is the status of peace and security in your data about households and the community. It index.htm community? Are there high crime rates? Of is a survey instrument that has been developed • Lund and Srinivas, Learning from experience: violent crimes? Of crimes against property? for municipalities in the Philippines under an A gendered approach to social protection for • Do those who are extremely poor belong to a ILO-STEP Community Survey for Health Micro- workers in the informal economy, ILO-STEP, particular barrio, religion or ethnic group? Insurance Project. As much as is possible, it ILO, 2000. http://www.ilo.org/public/english/ • Are there any policies or programmes available should be fi lled out in the presence of those support/publ/bookssp.htm to help the poor? administering it, so that help may be given to • Risk and Vulnerability Assessments: Concepts • How would you characterise the skill level of the the respondents if it is needed. The layout of the and Methods. Kalanidhi Subbarao. Asian labour force in the community? survey is particularly important since it is best to Development Bank. http://www.adb.org/ • Is information on market opportunities use the simplest design possible. Documents/Events/2002/SocialProtection/ accessible or is it limited? subbarao_presentation1.pdf • Are there children who are labourers or who Other than conducting a survey, other forms of • World Labour Report 2000: Income Security work for a living or for businesses in your gathering information and data include: and Social Protection in a Changing World: community? Does your community allow the ILO 2000. http://www.ilo.org/public/english/ employment or use of children as labourers or • Obtaining existing information and data from standards/relm/gb/docs/gb279/pdf/esp-7.pdf workers? various government and statistics offi ce that • How many individuals in your community have regularly document and monitor certain key permanent physical or mental disability? social and economic indicators CROSS-REFERENCES • Have you experienced natural or weather- • Key informant interviews and focus group related calamities in your community? discussions may also be conducted among • Tool 4.03.06, Information Tool: Social protection • To what extent has your community been members of a population to generate insight from risks: what and why effected by economic downturns and crises? and information on the various indicators and • Tool 4.03.06.5, Assessment Tool: Sample of a • Is your community in a state or war, confl ict or measures. community survey for health micro-insurance violence?

International Labour Ofﬁ ce []Ó 282 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.06.3 4.01.07 INFORMATIONACTION TOOL TOOL

THEPROVIDING START BETTERAND IMPROVE SOCIAL YOUR PROTECTION BUSINESS FOR (SIYB) WOMEN PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, GENDER DIMENSION OF DEVELOPMENT occupations, which often require few skills and are economic growth, entrepreneur, institution- poorly paid. Thisbuilding, action management, tool discusses marketing, practical microsuggestions and on WHAT ARE SOME OF THE KEY ISSUES IN howsmall to enterprises, address the trade social union, protection training needs of one INCORPORATING A “GENDER DIMENSION” IN This situation is very prevalent in developing of the most vulnerable groups in the population DEVELOPMENT INTERVENTIONS? countries like the Philippines where the challenge – women. Speciﬁ cally, this tool: of gender awareness is great. The principle that men and women should be • Discusses issues and challenges faced in equal in all spheres – political, economic, social • In the rural areas, where most of the Filipino relation to social protection and women; some and cultural – is in many countries already written women are, many of them are engaged in suggestions are provided in order that possible into the basic laws of the land. The adoption of various agricultural activities, which more often pitfalls may be avoided legal standards, the drafting of plans of action, than not lie outside the scope of any social • Suggests what social protection areas are the setting up of new study groups and advisory protection. required for local women in order to guide bodies – all these measures bear witness to the • In addition, women are usually assigned program decision makers and implementers growing importance attached to the status of tasks such as processing and packaging of in ensuring that women’s needs and risks are women. agricultural produce, weaving and the sale of addressed. goods produced, all of which are considered • Discusses strategies on how to incorporate an Through the years, in many parts of the world, extensions of the tasks women carry out in their explicit gendered dimension to development there has been a considerable increase in homes. interventions, as well as ways that local women the number of women actively involved in the can implement them to help reduce their own economic life of communities and countries. EQUAL TREATMENT IN SOCIAL PROTECTION social and economic vulnerabilities. Although the activity rates and participation of women have indeed increased, the nature and All workers, women and men, who are engaged structure of female employment has undergone in economic activities, are entitled to protection very little change. Women workers continue against all social risks covered by the relevant to be concentrated in a fairly small number of scheme. This holds true for all forms of livelihood

International Labour Ofﬁ ce []Ó 283 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.3 PROVIDING BETTER SOCIAL PROTECTION FOR WOMEN

and economic sectors in which both women and before, during and after childbirth. Most countries allowances, and milk or layette coupons among men are employed. Thus, it must be remembered which possess the necessary facilities now others. that women should receive the same benefi ts and additionally cover the cost of care and hospital rights in all aspects, especially in social protection treatment during pregnancy, confi nement and the Expanding maternity leave where the same rules should apply to both men post-natal period, either through social security or and women whenever they fi nd themselves in through national health services. Although such In the strictest sense, maternity leaves should identical situations with regard their employment. is not yet the practice in the Philippines, there are consist of two components: efforts to expand coverage under the Philippine WHAT ARE SOME STRATEGIES OR WAYS BY Health Insurance Corporation to cover for prenatal • The right of an employed woman to take a leave WHICH SOCIAL PROTECTION FOR LOCAL WOMEN IS care among women. This is done in the light of of absence when she gives birth to a child, ENSURED AND IMPROVED? high rates of maternal mortality as well as more with the guarantee that she would be able to births attended to by traditional birth attendants keep her job, her seniority and her pension In providing and extending social protection rather than doctors. Efforts are also underway entitlement; and specifi c to women, development planners and to accredit midwives in PhilHealth so that they • The right to receive a cash benefi t equal to all practitioners should identify the specifi c risks and may receive compensation for the pre-, intra- and or part of her previous earnings and payable vulnerabilities that women are particularly exposed post-natal care they provide many of the Filipino throughout the duration of her maternity leave. to. The relevant policies and programmes are women. In doing this, a mechanism to ensure the then formulated as additions to the basic social delivery of quality care to women by monitoring Increasing maternity benefi ts protection schemes that are provided for both and accrediting midwives is in place. women and men in general. The following are These are amounts proportionately paid to the specifi c areas to improve social protection for local Universalising maternity grants benefi ciary’s previous earnings. It must be noted women: that when maintenance of the women’s full wage In many countries, social security schemes is guaranteed, she may well receive a higher net Expanding health care and maternity benefi ts provide lump-sum cash benefi ts or benefi ts in income during maternity leave that when she kind on the birth of a child to help cover the is working since, generally speaking, maternity In the movement towards generalised medical and cost or to supply certain needs connected with benefi ts are not subject to tax. maternity insurance, or national health services, the birth. These grants usually come in the the main emphasis is on medical care for women form of maternity grants, pre-natal or post-natal

International Labour Ofﬁ ce []Ó 284 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.3 PROVIDING BETTER SOCIAL PROTECTION FOR WOMEN

Extension of coverage emphasis on using transfers to increase family to. Then, through a concerted effort with private income to the neediest groups. organisations and nongovernmental/people’s Originally, maternity leave and maternity benefi ts organisations, small steps can be taken towards were usually granted only to wage-earning women, Lowering the qualifi cations for receipt of benefi ts these direction to ensure a more stable assistance but now the tendency is to extend these benefi ts to women. to all women who are obliged to interrupt their In Canada, women with dependent children are occupational activities because of childbirth. entitled to long-term assistance without being Recognising the growing incidence of single-parent The challenge to legislators and decision makers required to seek employment. Similarly, in New households is to establish the appropriate systems and Zealand, a “domestic purpose benefi t” has mechanisms to provide these benefi ts. This is been in place since 1973, providing a minimum Given that one-parent households are no longer where nongovernmental organisations, people’s guaranteed income to mothers with children to the exception; some countries have adopted a organisations and cooperatives can provide much maintain, and to single women whose resources strategy of reforming laws and introducing specifi c assistance. When people are mobilised and are below a specifi ed level. benefi ts for these family types. In Denmark, organised so that a mechanism to coordinate Hungary and Norway, family allowances are higher and track them is put in place, then it is possible In Israel, a minimum income is guaranteed for single mothers. France, on the other hand, to pool funds over a period of time from which for all residents, with four types of assistance has lowered the income requirements for means- benefi ts to women who give birth are drawn from. administered by a national agency: supplementary tested (average) benefi ts. cash benefi ts linked to the size of the family; free Broadening the range of contingencies covered health insurance; rent subsidies; and the payment Maternity leave has also been extended in certain under social protection of national insurance contributions. countries to include days when children are sick. There are also benefi ts which are given exclusively In other countries, contingencies such as In the Philippine setting, such examples as to women in situations of isolation (widows, for the rent and purchase of housing, long-term illustrated above may presently be diffi cult to instance). They usually start with allowances unemployment and even divorce are placed under carry out without the appropriate and necessary extended to widows not old enough to claim a the ambit of social protection. Efforts are being political will to drive this effort. The call and pension (which may take the form of a surviving made to coordinate employment, social security, challenge for local legislators is to understand spouse’s insurance scheme). It has also been social assistance and fi scal policies, with special well the needs, characteristics and risks to which possible to give subsistence allowances to orphans vulnerable groups, especially women are exposed or those children whose parents are separated.

International Labour Ofﬁ ce []Ó 285 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.3 PROVIDING BETTER SOCIAL PROTECTION FOR WOMEN

Again, this is something that may not yet be Sweden has gone so far as to institute a vocational HEALTH AND SOCIAL SERVICES acceptable to the Philippine setting, largely training allowance which is independent of family because the Philippines is a largely Catholic income and has set aside a proportion of public Social welfare in developing countries usually country where divorce is not allowed and works jobs reserved for women. covers the whole population, many of whom are unmarried women with children are still looked not eligible for the cash grants provided by social down upon. However, the single-parent Targeting older women security. In addition to fi ghting poverty, health and phenomenon remains to be signifi cant and social welfare activities are more concerned with relevant to the Filipinos due to the large number Finally, it must be noted that because of the providing supplementary or family allowances. of Overseas Filipino Workers who leave families weakening social safety nets from extended behind while they earn a living in other countries. families, older women have become more EXTENDING SOCIAL PROTECTION TO Some support structures to help single mothers vulnerable. Special-purpose benefi ts may be WOMEN - CHALLENGES can be put in place to help women cope with introduced to deal with this, such as housing and the dual responsibilities of raising children and rent allowances, as well as transfers to cover the THE CHALLENGE OF EXTENDING SOCIAL keeping a home. Again, a concerted public- cost of care provision. PROTECTION TO WOMEN IN THE PHILIPPINES private sector effort is necessary and much creativity and innovation must be done through COLLECTIVE SCHEMES FOR LOCAL WOMEN Although much has been accomplished around the leadership of local chief executives and the PROTECTION the world in terms of taking a gendered dimension local government. in many development interventions, the challenge COMMUNITY FACILITIES of ensuring the social security of women remains Improving vocational training for women large and daunting. This is especially true in In an effort to limit the amount of time parents developing countries like the Philippines, where Although not directly linked to social security, take off from work, some countries have chosen limitation of fi nancial resources, the absence of several countries have taken specifi c steps to lower the age at which children start school. political will and deep-seated cultural factors all to help some categories of women who fi nd Collective facilities set up and managed by contribute towards the slow progress in addressing it more diffi cult than others to obtain access the State cannot always satisfy the entire need and focusing on the needs of Filipino women. to employment; these are usually fi rst-time for such child-minding. However, parents, jobseekers and women who have left the labour enterprises and local authorities may be asked to The strategies presented above are concrete force to temporarily bring up their own children. contribute to the cost to ensure long-term viability. steps that can serve as kick-off or springboards of

International Labour Ofﬁ ce []Ó 286 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.3 PROVIDING BETTER SOCIAL PROTECTION FOR WOMEN

action. Much can be done at the local level, where Protection Convention, 1919 (No. 3), and the RELEVANT RESOURCES autonomy in terms of prioritisation and governance Maternity Protection Convention (Revised), 1952 is in place due to the Local Government Code. The (No. 103). • Women and Social Security: Progress Towards opportunity therefore to implement a comprehensive Equality of Treatment. Anne-Marie Brocas, et al. social protection scheme with a bias for and focus Convention No. 3, which applies to all women International Labour Offi ce – Geneva 1990. on women can be done through a concerted effort employed in industrial and commercial • Learning from Experience: A Gendered and with the political will of local leaders. undertaking, provides for 12 weeks’ maternity Approach to Social Protection for Workers in the leave, to be taken in two parts, one before and the Informal Economy. Frances Lund and Smita It must be emphasised however that local other after childbirth, the latter being compulsory. Srinivas. ILO. 2000. http://www.ilo.org/public/ government units cannot do it alone. There must be It recognises the woman’s right to benefi ts suffi cient english/support/publ/textsp.htm a tight and strong link and network especially with for maintenance of herself and her child, and her • Social Security Principles. Social Security Vol. the private sector as well as the nongovernmental right to receive free medical care. This Convention 2. ILO 1998. http://www.ilo.org/public/english/ organisations whose scope and reach in the also makes it unlawful for an employer to give a support/publ/textsp.htm communities may be deeper than the public sector. woman notice of dismissal during her maternity • Social Security: A Workers’ Education Guide. leave or during any period of sickness resulting ILO 1992. Policies and regulations like the setting up of day from pregnancy or delivery. It provides for breaks • ILO, Modular Package on Gender, Poverty and care centres in the workplace and prioritising and during the working day to allow her to breastfeed Employment. Reader’s Kit. ILO, 2000. http:// giving expanded maternity benefi ts to women are her child. www.ilo.org/public/english/employment/skills/ some examples of mechanisms to illustrate the effort informal/gpe/informal/pack/english.htm to take on a gendered approach in ensuring social Convention No. 103 is much broader in scope, in protection for its citizens. that it applies to all women employed in industrial CROSS-REFERENCE and non-industrial undertakings and to women in WHAT ARE ILO STANDARDS ON THE PROTECTION OF agricultural occupations, including wage earners • Tool 4.03.06, Information Tool: Social protection WOMEN? working at home. In addition, women should from risks: what and why receive benefi ts suffi cient to maintain herself and • Tool 4.05.03.1, Information Tool: Gender: the The International Labour Conference has adopted her child. The rate of cash payments should be challenges of women and work two Conventions concerning the protection of pegged at not less than two-thirds of previous women before and after childbirth – the Maternity earnings.

International Labour Ofﬁ ce []Ó 287 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.06.4 4.01.07 INFORMATIONACTION TOOL TOOL

THEEXTENDING START ANDSOCIAL IMPROVE PROTECTION YOUR BUSINESSTO LOCAL COMMUNITIES(SIYB) PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, of “universal coverage” is the most important and schemes must, as much as possible, economic growth, entrepreneur, institution- task; rely on strong ties and relationships that are Thisbuilding, action management, tool explains marketing, the most important micro and 2. Social protection requires an institutional based on trust and solidarity. It must build on conceptssmall enterprises, on social trade protection union, to training guide and help approach. The roles of workers, employers, cohesive social measures to implement and development practitioners, planners and decision civil society, local government units and enforce its policies and programmes. makers. More importantly, this tool suggests the state should be clearly identifi ed and 6. Social protection makes the community more strategies to encourage full implementation of specifi ed in order to ensure the viability and productive. An adequate social protection social protection and other related policies. It is sustainability of social protection policies and system will ensure a safe and healthy meant to expand the current understanding of programmes; workplace for workers and their families, social protection given the changing nature of the 3. Social protection must embody an explicit thereby resulting in higher productivity and global economy and the workplace by highlighting gendered dimension. Foremost in the agenda growth in the long run. special areas of concern. of extending social protection is ensuring that gender concerns are brought into the EXTENDING SOCIAL SECURITY TO LOCAL KEY PRINCIPLES IN EXTENDING SOCIAL mainstream. Social security should to take COMMUNITIES IN THE PHILIPPINES PROTECTION FOR ALL into account specifi c gender needs such as maternity protection and reproductive health There is still a lot of work that needs to be done It is important to remember and consider the issues; to ensure that social security is extended to following foundational principles when considering 4. Social protection is an integrated form of risk the most vulnerable and marginalized groups the extension of social protection: management. Risk pooling allows individuals in many local communities in the Philippines. to experience greater overall protection against Many development experts believe that in order 1. Social protection is a basic human right. This contingencies than if they rely on their own to make forward movement in the Philippines, means that it should be treated as a human private savings; the growth of community-based schemes and right extending to all kinds of work, and 5. Social protection should support local private initiatives must be encouraged. The guaranteed by the state. The achievement participation. Social protection mechanisms government then takes on the role of coordinator

International Labour Ofﬁ ce []Ó 288 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.4 EXTENDING SOCIAL PROTECTION TO LOCAL COMMUNITIES

of these initiatives, ensuring and minimising existing private initiatives so that they mesh measures for some time now, these have not overlaps, and assisting in targeting and prioritising well with the public social security system; really managed to benefi t a signifi cant number the vulnerable in the provision of social security 3. Broad consensus and high levels of in the population, especially those who do not measures. In the long run, the most sustainable commitment are crucial and essential to the belong to the formal economy. Some examples private programmes may then be brought under success of the social security schemes; of existing statutory social security schemes are a government “umbrella” agency whose aim is to 4. Good governance and sustainability should the programmes offered by the Social Security provide universal coverage. Even in the face of be prerequisites of any programme; this is System (SSS) and the Philippine Health Insurance fi scal pressures, local development practitioners especially true for private schemes such as Corporation (PhilHealth). For the SSS, a person can still fi nd creative ways of broadening the micro-fi nancing, since many case studies can enroll as a self-employed worker and can scope of social security by noting the following have shown that these efforts often suffer from enjoy benefi ts such as access to loans, pension realities: problems of long-term fi nancial viability as well and other similar privileges. For PhilHealth, every as transparency and accountability. Filipino citizen is required to be a member of GENERAL CONDITIONS FOR THE EXTENSION this social health insurance scheme. Currently, OF SOCIAL SECURITY COVERAGE OPTIONS FOR THE EXTENSION OF SOCIAL premium rates for a household are at one hundred SECURITY COVERAGE pesos (P 100.00) a month. As a PhilHealth 1. There is no unique solution to the goal of benefi ciary, one is able to consult an accredited universal coverage; every programme must There are a number of options or possibilities that government Rural Health Unit or Main Health be designed to suit local needs, preferences may be considered when planning and thinking Centre for his/her outpatient needs, including and resources. In each case, it is important to about extending social security coverage in treatment for Tuberculosis and Family Planning. observe the principles of equity, solidarity, and communities: In addition to this, one can also be admitted to any social justice in extending social protection; PhilHealth accredited hospital (public or private) 2. It may be unrealistic to rely only on a formal EXTENDING EXISTING STATUTORY SOCIAL SECURITY and enjoy a set of benefi ts covering Room and social security scheme to cover the self- SCHEMES Board, Laboratory Procedures, Medicines (while employed workers and workers in the informal in the hospital) and Doctors’ Fees. Although economy; important work remains to be done This simply means enforcing the existing these may not totally cover for all of the family’s in fi rst identifying those who lie outside the programmes and schemes formulated and needs, these two social security measures can coverage of safety nets, extending coverage required by the state for its citizens. It is a known signifi cantly help families protect themselves to them, and bringing into the mainstream reality that despite the existence of social security against risks that they may encounter.

International Labour Ofﬁ ce []Ó 289 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.4 EXTENDING SOCIAL PROTECTION TO LOCAL COMMUNITIES

ENCOURAGING THE DEVELOPMENT OF MICRO- and a small portion divided for each member ESTABLISHING TAX-FINANCED MEANS-TESTED INSURANCE SCHEMES who participated. These are just examples of BENEFITS (SUCH AS SOCIAL ASSISTANCE OR initiatives that have been implemented in a SAFETY NETS) In the Philippines, it is very diffi cult for the limited way to communities especially in the poor to get approval for loans and credits in big rural areas. Oftentimes, these schemes become Like Option 3 above, this measure is also being fi nancing institutions like banks and lending very appealing to the people as they cut the implemented in a limited way in the Philippines. centres as they do not have suffi cient resources bureaucratic red tape experienced when dealing This requires a well orchestrated system wherein that serve as collateral. Thus, many of them with agencies of government. both the national and local governments are resort to borrowing from loan sharks and usurers working seamlessly in determining and prioritising who charge exorbitant interest rates that instead INTRODUCING TAX-FINANCED UNIVERSAL BENEFITS those who need the services most. The means- lead to worsening poverty. Thus, over the past SCHEMES tested (average) benefi ts imply that citizens are two decades, the Philippines has witnessed classifi ed according to economic class based on a the blossoming of cooperatives and people’s This option is one that is implemented in the tool that looks into a household’s income-earning organisations that offer micro-fi nance and micro- Philippines in a very limited way. Many European capacity and their ability to be able to provide for a insurance schemes that are within the reach countries however have an extensive tax- family’s essential package of needs and services in of the poor. Several community-based groups fi nanced social security scheme that allows all order to survive decently. Thus, families that are driven by nongovernmental organisations (NGO) of its citizens to benefi t from a package of social not able to meet their own minimum basic needs have extended some sort of protection for their protection measures. Such initiatives require will receive more assistance from government. benefi ciaries and members by putting up some close coordination between the national and There are also various social assistance packages funds-pooling mechanisms that target two local government in the strict implementation of that are provided especially during unusual important concerns – health and livelihood. For tax rules and regulations as well as an effi cient calamities or disasters that affect these families. some communities, the people are organised and honest collection mechanism. There must in order that they communally work towards also be strong political will to ensure that social a common micro-enterprise. The earnings security benefi ts are prioritised. In this way, there of these are divided into setting aside funds is coverage of all citizens, including those who are for some savings and programmes in health, elderly as well as the jobless. others for expanding the livelihood activity

International Labour Ofﬁ ce []Ó 290 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.4 EXTENDING SOCIAL PROTECTION TO LOCAL COMMUNITIES

STRATEGY FOR EXTENDING SOCIAL reputation of trustworthiness in order to be able to With a mission to provide universal coverage at PROTECTION TO LOCAL COMMUNITIES IN entice NGOs and private sector organisations to affordable premiums, PhilHealth has expanded its THE PHILIPPINES partner and work with government in coordinating programme to include those from the “informal” and ensuring effi ciency in implementing these economy through the “Individually Paying The Philippines faces a huge task of extending social security measures. Programme” (IPP) and the poorest of the poor social protection cover to the most vulnerable through its “sponsorship programme”. It has even groups in our local communities. A good strategy A “two-pronged” approach may be taken, extended its services to retirees through its “non- must begin with an assessment and description of combining the option of extending the coverage of paying programme”. PhilHealth currently has a those individuals who are not covered by existing statutory social security schemes such as SSS and membership of 43.6 Million Filipinos or 54 per schemes. To establish future policies, we must PhilHealth, with the option of promoting micro- cent of the country’s population. The sponsorship know the characteristics of these vulnerable insurance schemes undertaken by communities. programmed has 6.3 Million benefi ciaries while groups, such as their age, income, occupation, Local development practitioners can fi nd creative the IPP covers 1.3 Million members. needs, and willingness to pay for social protection. ways of broadening the scope of social protection in order to eventually arrive at universal coverage. PhilHealth has pilot-tested an initiative that taps Since the government has few resources available and partners with organised groups such as for social services, we can and should take cooperatives. This is currently being implemented advantage of strong local and private sector CASE STUDIES IN SOCIAL PROTECTION IN in two sites – Sogod District, Southern Leyte initiatives. This can be done by developing THE PHILIPPINES Province and in selected municipalities in the sustainable micro-insurance schemes, Province of Cavite. Thus, if a cooperative or cooperatives, and linking these efforts to the PHILIPPINE HEALTH INSURANCE CORPORATION organised group wishes to enroll its members government, which can serve as a guarantor (PHILHEALTH) collectively in PhilHealth, it will undergo an of last resort. Government back-up is critical evaluation using the Performance Standards for to keeping these programmes sustainable. In Since 1995, PhilHealth has assumed the Philippine Credit Cooperatives and Other Types the long run, the best option is to bring all of responsibility of administering the former Medicare of Cooperatives (COOP-PESOS). Based on this these schemes together under the “umbrella” of programme for government and private sector assessment, a cooperative or group may then be government. An important preliminary step to employees. It provides hospitalisation and accredited or qualifi ed in different levels. The achieve this is to ensure that the government, both out-patient benefi ts to its members and their level of accreditation then determines the kind of national and local, maintains its credibility and benefi ciaries in times of need and illness. functions and responsibilities this cooperative or

International Labour Ofﬁ ce []Ó 291 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.4 EXTENDING SOCIAL PROTECTION TO LOCAL COMMUNITIES

group is able to perform in relation to PhilHealth SOCIAL SECURITY SYSTEM (SSS) payment” scheme. Under this project, an informal ranging from marketing, enrolment of members, economy worker would open a savings account collection of premiums, monitoring, information SSS, which is an example of the social insurance with a participating bank and would deposit small and education, assigning members to providers, approach, provides replacements incomes for amounts into this account even on a daily basis and out-patient benefi ts monitoring. Groups workers in times of death, disability, sickness, toward the accumulation of the monthly SSS that have the highest level of accreditation (Level maternity, and old age. Several initiatives were contribution. The participating bank would then A) are allowed to identify their own accredited undertaken to expand coverage and include remit the member’s monthly contribution through providers and assign their members to them. The informal economy workers. These initiatives an automatic debit arrangement. However, there selected providers however need to also undergo have allowed household helpers earning at least has been limited success here since hours of work evaluation and inspection based on accreditation Php1000, the self-employed, farmers, fi sher folk, are lost just to remit small deposits to the bank. guidelines for Rural Health Units and hospitals and other informal economy workers such as This suggests that it would be helpful to organise to ensure that the provider can deliver services ambulant vendors and even watch-your-car boys informal economy workers so that a few may be under the Outpatient Consultation and Diagnostic to participate in the scheme. As of December entrusted to collect and deposit SSS contributions Benefi t Package. Accredited Outpatient Providers 2002, SSS has covered about 24.3 million on behalf of the many. receive a capitation payment – a fi xed amount members, of which 4.5 million members are self- paid per household per year. PhilHealth will also employed or in the informal sector. NOVALICHES DEVELOPMENT COOPERATIVE, INC. provide the management of the accredited groups (NOVADECI) with comprehensive training on the National Nevertheless, SSS continues to have problems Health Insurance Programme to equip the group with compliance. The following reasons have Founded in 1976 by a group of pork vendors, with skills needed for Information, Education, often been cited for non-registration: lack of time, it started out as a credit cooperative to meet its Communication (IEC) dissemination and lack of information, lack of regular employment, member’s needs. Aside from its loan and fi nancial marketing. The accredited groups and partners the cost of contributions, and the diffi culty of services, it now offers insurance, medical health also received incentives for premiums collected contacting SSS representatives. services, as well as training and education. It is and remitted to PhilHealth now recognised as one of the country’s premiere To get around the problem of one-time payments cooperatives, having more than 6000 members that are seen as heavy, SSS and DOLE together and a staff of 100. with PSBank and DBP launched the “easy-

International Labour Ofﬁ ce []Ó 292 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.4 EXTENDING SOCIAL PROTECTION TO LOCAL COMMUNITIES

Market vendors comprise about 60 per cent of its should not be over 55 years old and must be confederations with a combined reach of 100,000 members and it is worth noting that 85 per cent able to pay a one-time membership fee of Php farmers, fi shers and rural women in 28 provinces are informally employed. 200 plus an annual contribution of Php 600. nationwide. As benefi ts, a member is provided with free Lending has remained the cooperative’s main medical consultations, free maternity care, free The PAKISAMA Mutual Benefi t Association covers activity. However, it has diversifi ed its services into annual medical check-ups and discounted the following risks: death or permanent disability the following: lab examinations, dental and optical services. of the insured person, death of a dependent of the Members are also provided hospitalisation benefi ts insured person, hospitalisation of insured person 1. Direct social security services: health care of up to Php 10000 while immediate family or dependents. Risk coverage may extend to all programmes, cooperative drugstores, Damayan members’ hospitalizationhospitalisation benefi ts children on a proportionate basis (if only one child death benefi t, loan guarantee programme, old of up to Php 5000. The programme is mainly is covered, full benefi ts will be paid). age retirement pension, total/partial disability funded through fi xed contributions from members, pension, share protection benefi t; services fees collected from NOVADECI’s clinic COOP-LIFE MUTUAL BENEFIT SERVICES 2. Indirect social security services: savings and laboratory and sales of medicine from the ASSOCIATION (CLIMBS) products (saving/time deposit), loan products cooperative pharmacy. To ensure the sustainability (regular loan, instant loan, emergency loan, of the programme, its board of directors decided CLIMBS is a mutual benefi t cooperative society appliance loan, educational loan); that membership in the NHCP would be set up in 1971 to develop cooperative banking 3. Non-social security services: consumer retails compulsory for NOVADECI members and the and insurance for its members. Starting with 6 and merchandising (market services, credit NHCP members will be re-insured with an external cooperatives, it has grown to 173 cooperatives line, instalment sales, consumers club), insurance provider. with 66,569 members. The major social protection educational services (scholarship grants, programmes and services offered are the fi nancial counselling, staff development), PAKIKISAMA MUTUAL BENEFIT ASSOCIATION, INC following. sports development, computer banking technology, management info systems training Pakikisama Mutual is a subsidiary of the Mutual Assistance Systems: Community members Pambansang Kilusan ng mga Magsasaka contribute when there is a death in the family. For An applicant of the NOVADECI Health Care (PAKISAMA), and serves as the insurance arm of a uniform benefi t of Php 5000, a member may Programme must have a fi xed deposit of at least its constituency. PAKISAMA is a national peasant join by paying Php 48 as premium and another Php 1000 with the cooperative. The applicant confederation composed of 30 local peasant P48 as equity annually. When a member reaches

International Labour Ofﬁ ce []Ó 293 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.4 EXTENDING SOCIAL PROTECTION TO LOCAL COMMUNITIES

66, he/she is withdrawn from the system and is RELEVANT RESOURCES CROSS-REFERENCES entitled to receive the accumulated equity plus earnings from his equity. • ILO, Social Security: a new consensus (2001). • Tool 4.03.05.01, Action Tool: Strategies for http://www-ilomirror.cornell.edu/public/english/ improving incomes and employment in the Life Saving Plan: Cooperatives pay Php 1 protection/socsec/download/aconsens.pdf informal economy monthly to CLIMBS for every Php 1000 deposit • ILO, Introduction to social security (1984). • Tool 4.03.06, Information Tool: Social protection of a cooperative member. Members are assured • ILO, World Labour Report (2000). from risks: what and why that in case of death, CLIMBS will pay his/her • ILO/ISSA, Social security pensions: development • Tool 4.03.06.1, Action Tool: Developing social benefi ciaries an amount equal to the member’s and reform (2000). http://www.ilo.org/public/ protection in your local economy deposit plus Php 1000. english/support/publ/textsp.htm • Tool 4.03.06.2, Assessment Tool: Assessing • ILO/ISSA, Training methods on social security (5 social risks and vulnerabilities in the local Loan Protection Plan: Payments for loans obtained volumes). economy by members are insured by CLIMBS. The • ILO/SSPDB, Gender equality and the extension • Tool 4.03.06.3, Action Tool: Providing better premium is based on the age of the member and of social protection (2003). social protection for women the amount of the loan. • Learning from Experience: A Gendered • Tool 4.03.07.1, Action Tool: Improving local Approach to Social protection for Workers in access to fi nancial services Members Protection Plan: An optional insurance the Informal economy. Frances Lund and Smita programme for cooperative members. Srinivas. ILO. 2000. http://www.ilo.org/public/ english/support/publ/textsp.htm Cooperative Employees Retirement Plan: Designed • HIV-AIDS: An ILO Code of Practice. ILO.2000. for permanent employees of cooperatives or self- • Maria Eufemia C. Yap, M.D. Extending Social help associations. The pension is based on the Security to the Informal Sector, International premium paid, which is shared on a 50-50 basis Labour Offi ce, Manila, draft April 2002. between the employer and employee. http://www.ilo.org/dyn/infoecon/docs/110/ F1381426333/Ch5%20-%20Socsec%20_ Cooperative Offi cer Protection Plan: Group revised%20Apr%202002_.pdf protection coverage for a board of directors, managers, and selected members of cooperatives.

International Labour Ofﬁ ce []Ó 294 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.06.5 4.01.07 INFORMATIONASSESSMENT TOOLTOOL

THESAMPLE START OF ANDA COMMUNITY IMPROVE YOUR SURVEY BUSINESS FOR HEALTH (SIYB) MICRO-INSURANCE PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, This questionnaire was developed under a pilot economic growth, entrepreneur, institution- project of the International Labour Organization Thisbuilding, is a questionnairemanagement, designed marketing, to microassess and health - STEP in the Philippines. riskssmall and enterprises, vulnerabilities trade inunion, a municipality, training and the local capacity to extend social protection in As much as is possible, this questionnaire should health. Local Government Units (LGUs) and local be ﬁ lled out in the presence of those administering organisations may use this or adapt it to their it, so that help may be given to the respondents if communities. it is needed. The layout of the survey is particularly important since it is best to use the simplest design possible.

International Labour Ofﬁ ce []Ó 295 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

HEALTH MICRO-INSURANCE PROJECT OF MUNICIPALITY OF ANGONO, RIZAL and THE INTERNATIONAL LABOUR ORGANIZATION COMMUNITY SURVEY

PERSONAL INFORMATION

1. Name

2. Sex Male 3. Age Female

4. Address Sitio barangay Municipality

Province Region

5. Civil Status Single Widower Others Married Separated

6. Educational Attainment Lower than Elementary Did not ﬁ nish High School Finished Elementary Level Finished High School

Some College Education Vocational Training Finished College

7. Your status in the household Head of the Family/Bread winner Co-bread winner Others, please specify

8. Number of household members (including children), extended family, helpers who share within one roof and share household expenditure: (Put a check mark) 1-5 6-10 11-15 over 15

9. Number of Household Members who are Working 1 2 3 4 5 6 7 8 9 10 or more

International Labour Ofﬁ ce []Ó 296 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

10. Present Occupation or Main Source of Income

Vendors Non-corporate construction workers Small-transport drivers Home-workers • Painter • Tricycle • Self-employed • Carpenter • Pedicab • Industrial home-workers • Plumber • Jeepney • Mason • F/X • Electrician • Fisherman • Farmer

11. Other Sources of Income

Others • Repair persons • Luggage persons • Massage persons • Small scale miners • Guest relations ofﬁ cers • Laundry persons • Barkers • Entertainers • Butchers • Beauticians

12. Does your household receive income from outside of the country or from other relatives? Yes No

13. Monthly Family Income 1,000-1,999 5,000-5,999 9,000-9,999 13,000-13,999 2,000-2,999 6,000-6,999 10,000-10,999 14,000 –14,999 3,000-3,999 7,000-7,999 11,000-11,999 15,000 –above 4,000-4,999 8,000-8,999 12,000-12,999

14. Do you belong to an organisation? Yes No Name of Organisation/s: SOURCES OF VULNERABILITY

1. As of now, how many hours on average do you 0-8 hours 41-48 hours work in a week? 9-16 hours 49-56 hours 17-24 hours 57-64 hours 25-32 hours Others – please specify 33-40 hours (Not applicable – no employment at this time)

International Labour Ofﬁ ce []Ó 297 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

2. What months of the year do you feel that you are January July earning enough or more than enough? February August March September April October May November June December

3. What months of the year do you feel that you are January July not earning enough? February August March September April October May November June December

4. Are you a migrant from another town/ province? Yes No

5. Do you or others in your household own land? (Multiple answers OK.) 6. How strong is the danger of your being evicted? Yes, the land on which the dwelling is located. Almost a certainty Yes, agricultural land. There is a danger of this, but it is small No, we are renting the land where our house is located. No such danger No, we are just renting our agricultural land. No, we are just occupying the land without payment

International Labour Ofﬁ ce []Ó 298 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

7. Where do you work? 8. How would you describe your workplace? Home/residential lot (but not store) Well-lighted Neighbourhood workshop or cooperative’s premises (but not store) Dimly lit Employer’s premises (regular ofﬁ ce or factory) Well ventilated Shop (retail store, sari-sari store) in or near your home which you own No air Someone else’s store Too hot Street/stall/cart in or near your home (belongs to you) Too cold Farm belonging to you Just right temperature Farm belonging to someone else Spacious Others – please specify ______ Crowded (Not applicable – no employment at this time)

9. In your workplace, are you exposed to any of the following? 10. What is the quantity and quality of water in your home? (Multiples answers OK) sharp objects that can be harmful. Can be used for drinking (potable). dangerous chemicals Can be used for drinking as long as it is boiled. dust from cloth, etc. that can be inhaled Cannot be used for drinking even if it is boiled. other harmful materials – please specify ______ The quantity is suffi cient. Pollution from vehicles The quantity is insuffi cient (Not applicable – not exposed to any such thing) Do not have fl owing water at home Buy water from water lorry that delivers at home

International Labour Ofﬁ ce []Ó 299 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

Social Protection Needs

1. How much do you usually spend in a month for the following: 2. Who is the person in the family who decides how much funds to allocate for expenses in the household? Please write if self, spouse, father, mother, eldest sister, eldest brother, or others. Food Food Education Education Household Utilities (Electricity, Water, Telephone Bills) Household Utilities (Electricity, Water, Telephone Bills) Personal Necessities (Clothing, toiletries, etc) Personal Necessities (Clothing, toiletries, etc) Entertainment Entertainment Transportation Transportation Health Health Others Others

3. Are you a member or a policy holder of any of the following: 4. If you were given a chance to choose beneﬁ ts for social protection such as insurance, which Government Social Insurance Service (GSIS) among the following will you save on? After checking items below, can you rank them according to your priorities? (number 1 for highest priority, number 2 for second priority, and so on). Social Security Systems (SSS) PhilHealth Rank Pag-Ibig Health Insurance ______ Private Life Insurance. If so, please identify: ______ Pension or Old Age Insurance ______ Private Health Insurance. If so, please identify: ______ Death/Life Insurance ______ Mutual Help Groups. If so, please identify: Accident/Disability Insurance ______ Education Plan ______ Unemployment Insurance ______ Housing ______ Maternity Care Beneﬁ ts ______ Others ______

International Labour Ofﬁ ce []Ó 300 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

5. Are you willing to voluntarily pay contributions for the above beneﬁ ts that you identiﬁ ed? Yes No

6. If your answer is no, what are the probable reasons why you may not want to contribute? Not obliged Not entitled No trust in scheme High contributions Not attractive Covered by relatives No need Need information Don’t know Others Health Financing

1. Whenever you or anyone in your family gets sick, who do you go to for medical 2. In the last two years, which of the following conditions prompted you or any member of your family consultation? to seek consult or medical attention? Private Physician Children’s diseases Government Physician Maternity care Traditional healers such as hilot, kumadrona Delivery Does not seek professional help Chronic conditions like diabetes, hypertension, etc. Stays at home to get well Injury Buys medicines that I took when I got sick House Rely on herbal medicines to get well Work Accidents

3. Which facility do you or anyone in your family usually go to for medical attention? Please 4. Why do you or anyone in your family usually go to this facility? list name of facility. Good service Private out-patient clinic ______ Staff attends to my needs immediately Rural Health Unit or barangay health station ______ Doctors, staff are friendly Private hospital ______ Others: ______ Government hospital ______ Affordable Others (please specify) ______ Accessible None Complete facility Clean Others: ______

International Labour Ofﬁ ce []Ó 301 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

5. How much do you usually pay for: 6. How do you usually pay for your healthcare needs? (You may choose more than one.) (a) Medical consultation: ______ Personal savings (b) Hospitalization: ______(c) Medicines: ______ Sell some assets (d) Diagnostic services (laboratory, x-ray): ______ Borrow money from friends and relatives Borrow money from a lending institution Medicare/Health Insurance Assistance from Government Assistance from NGO Stay in a charity ward if hospitalisation is needed Others: _

7. Do you have health insurance? Yes No 8. If yes, are you the principal holder of the policy or a beneﬁ ciary? Member Beneﬁ ciary

9. Is your health insurance enough to answer your health needs? 10. If your organisation or any organisation in the community or the local government ofﬁ ce Yes No establishes a health insurance project for workers who do not have access to PhilHealth, would you be willing to join? Yes No

11. If no, what are your primary reasons? 12. What services do you want to be included in a health insurance? Out patient consultation Out patient diagnostic examinations Medicines Hospitalization Surgical care Maternity care Dental Care Programmes on preventive health care and occupational safety Others:

International Labour Ofﬁ ce []Ó 302 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.06.5 SAMPLE OF A COMMUNITY SURVEY FOR HEALTH MICRO-INSURANCE

13. How much are you willing to pay for a health insurance? 14. If a Health Insurance Scheme is set up in the municipality, which organisation do you want to Php 50/month or 600/year handle the funds? Php 60/month or 700/year An organisation composed of chosen representatives of the different organized groups in the community Php 67/month or 800/year A cooperative or self-help group in the area with a good track record Php 75/month or 900/year Organisation that has been providing health insurance services in the area. Please name the Php 85/month or 1000/year organisation. Php 90/month or 1100/year Php 100/month or 1200/year Php 125/month or 1500/year Php 170/month or 2000/year Php 200/month or 2400/year

15. Do you have other suggestions on how we can improve a health micro-insurance scheme for your community?

Thank you very much for your participating in this survey. You have made a valuable contribution to our goal of providing social protection for everyone

ACKNOWLEDGMENTS

ILO STEP Project, ILO Sub-Regional Ofﬁ ce, Manila

International Labour Ofﬁ ce []Ó 303 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.01.074.03.07 INFORMATIONASSESSMENT TOOLTOOL

THEASSESSING START ANDTHE IMPROVEPOTENTIAL YOUR FOR BUSINESSLOCAL MICROFINANCE (SIYB) PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, IS A MICROFINANCE PROGRAMME REALLY economic growth, entrepreneur, institution- NEEDED? Thisbuilding, assessment management, tool helps marketing, local development micro and plannerssmall enterprises, and practitioners trade union, to assess training both the Many development planners still have unrealistic demand and supply of fi nancial services in a expectations about what credit can do. It is true specifi c region or community. It is meant for that credit often removes liquidity bottlenecks for development practitioners who want to use small-scale investments, but, credit can do little, if microfi nance as a tool for employment creation anything, to turn a poor manager into a good one, and poverty alleviation. and credit alone will not create the demand for the goods to be produced. This tool discusses the step-by-step process to assess whether a microfi nance programme Poverty, underemployment and low productivity is really needed and whether it is the most have multiple causes. The lack of fi nancial appropriate response to the problem. resources is not necessarily the main one. Consequently, fi nance cannot bring about change if the problem is the absence of skills, good management, markets and infrastructure.

Before even proposing a microﬁ nance programme, all conditions that will make the program effective should be present.

International Labour Ofﬁ ce []Ó 304 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07 ASSESSING THE POTENTIAL FOR LOCAL MICROFINANCE

QUESTIONS TO ASK

The following questions are meant to bring out the hidden assumptions about ﬁ nancial schemes.

• Indicate how the creation of a microfi nance program would contribute to the attainment of your objectives. What makes you think that a microfi nance program is an appropriate solution to the problem? • What are the obstacles to income generation faced by the target group? What measures, in addition to fi nancing, are being taken to remove these obstacles? • How would the microfi nance program contribute to employment creation and income generation? • Are there other reasons that would justify the provision of fi nancial services to the target group? • Is the program expected to become a durable, fi nancially self-suffi cient delivery mechanism? • What is the evidence that self-fi nancing by an individual, a household or a group of people, is insuffi cient to meet their fi nancial needs? • What is the evidence that banks or other fi nancial institutions would not deal adequately with the target group? • Sometimes the provision of training, sensitisation and/or technical assistance can change the attitudes of banks or other fi nancial institutions. Have you checked this? Could or should this be an activity? • How will changes in the policy environment (price stability, monetary policy measures, interest rate policy) affect the success of the program?

International Labour Ofﬁ ce []Ó 305 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07 ASSESSING THE POTENTIAL FOR LOCAL MICROFINANCE

ASSESSING FINANCIAL NEEDS AND THE REPAYMENT CAPACITY QUESTIONS TO ASK:

Borrowing might increase the target group’s 1. Finance gap dependency temporarily (and sometimes permanently). Therefore, it is essential to make • What are the needs for fi nance (credit) as expressed by the target group? sure that personal and family savings are truly • How much can be covered by permanent, periodical and ad hoc savings and other self- insuffi cient to fi nance the envisaged activities. fi nancing mechanisms? Is the target group in fact unable to mobilise • Do existing formal and informal suppliers of fi nance fail to provide the needed resources? enough resources internally? Will the activities • What are the concrete reasons for this gap between the supply and demand for fi nancial or investments undertaken generate suffi cient services? surplus to repay the loans? • What makes you think that borrowers in all likelihood will be able to repay a loan?

2. Group liability and solidarity mechanisms

Group-based delivery mechanisms sometimes reach areas where no bank would go. However, they only work if the group members are in some way linked to each other. Therefore, it is important to know what bonds a group.

Note that households are not necessarily homogenous units and that men and women may have different strategies for income generation, consumption, savings and investment.

• Do you envisage the use of groups as a disbursement and collection mechanism? • Have the beneﬁ ciaries already formed groups with other than ﬁ nancial purposes? • What sorts of activities are normally collectively undertaken (common cultivation of land, festivities organisation, sales of cash crop, etc.)?

International Labour Ofﬁ ce []Ó 306 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07 ASSESSING THE POTENTIAL FOR LOCAL MICROFINANCE

• What makes you think that solidarity would develop among the group and that members who would not pay back their loans would be sanctioned? • Who is in control of the income generated by the household: the head of household or the individual household members? Who makes the expenditure decisions?

3. Income Generating Capacity

The activity must produce a surplus that leaves the borrower with a net income after repayment of principal and interest; otherwise, credit will lead to increased indebtedness.

• From how many activities do households normally derive a stable cash income? Are the income generating activities seasonal? • Has a market study been carried out for key income generating activities? • Do members of the target group have the capacity and know-how to commercialise new products? • To what extent are the needs and opportunities for commercialisation of the produced goods and services anticipated in the dispositions of the fund? • What is the likelihood that most borrowers are likely to start the same activity?

4. Risks

One can never be sure that a borrower can manage all the risks related to their activities. This will of course inﬂ uence the proﬁ tability of the program and should lead the program designer to take the necessary precautions in terms of interest rates, loan terms and accompanying measures such as training, sensitisation and counselling.

• How regular can the supply of raw materials or other essential inputs be required for the activity to be ﬁ nanced? • Is the economic activity familiar to the borrower? • Do borrowers have the technical and managerial skills and experience to undertake the activity for which they want the credit?

International Labour Ofﬁ ce []Ó 307 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07 ASSESSING THE POTENTIAL FOR LOCAL MICROFINANCE

5. Senior claims

This includes all those debt obligations that individuals, households and groups are likely to honour before paying back a loan to a microﬁ nance program. When push comes to shove, are the following debt obligations more important to the target group than paying back a debt to the microﬁ nance program?

• Emergencies (illness, incapacity to work, death)? • School fees? • Social festivities? • Other family obligations?

6. Savings

• Do the intended project beneﬁ ciaries have some form of informal savings? Explain! • How do they use their savings (consumption, investment, social protection / insurance)? • Is the target group organised in savings associations? • Should minimum savings limits be established for individuals and/or groups before giving them access to credit? If yes, why? • Are there formal savings facilities in the area such as banks, post ofﬁ ce savings banks or mobile counters? • Are there any obstacles facing the target group to save with such institutions?

International Labour Ofﬁ ce []Ó 308 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07 ASSESSING THE POTENTIAL FOR LOCAL MICROFINANCE

ASSESSING THE LOCAL FINANCIAL MARKET QUESTIONS TO ASK: done to remove these obstacles? • What sources of fi nance exist within half a day’s Once deciding that credit would in 1. Informal sources (i.e., moneylenders, friends, family walking distance from the area covered by the project? principle make sense and leave the and savings clubs) • Does the target group want formal credit? What are target group generally better off, their main concerns (speed of transaction, amount, one cannot automatically conclude • What sources of informal credit are normally and repayment schedule)? that a microfi nance program is available to the individuals of the target group(s)? In • What do you think is the main reason why banks or needed. There are other alternatives which circumstances? Do people have a preference other formal institutions do not lend to the target group? - fi rst check whether the resources for a specifi c form of informal credit? If so, which? - Lack of collateral? can be obtained locally. • Are there certain periods in the year when most - High transaction costs? households go heavily into debt? If so, who is - Diffi cult monitoring and follow-up? lending the money? - Insuffi cient coverage of operational and risk related • Over a period of how many weeks or months are costs by interests and other incomes? such informal loans paid back? • How is the repayment schedule established? 3. Policy and regulatory environment • What is the interest rate on such loans? • How does the lender make sure beforehand that the • Are there any Central Bank directives for distributing borrower will pay back the loan? credit to specifi c target groups? (Quotes sectors, preferential treatment for certain categories of 2. Formal sources (banks, savings institutions, special activities)? funds, NGOs, etc.) • Is there a history of subsidised credit in the project area? If so, does it still exist? Is the target group • What sources of formal fi nancial services do concerned? members of the target group use? • Are there other funds set up by aid agencies in the • Is access to these sources particularly diffi cult for area? For which target group(s)? Are they effective? If women? If so, why? Is there anything that can be yes, why? If no, why? Lessons learnt?

International Labour Ofﬁ ce []Ó 309 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07 ASSESSING THE POTENTIAL FOR LOCAL MICROFINANCE

SELECTION OF FINANCIAL INTERMEDIARY QUESTIONS TO ASK:

RELEVANT RESOURCES 1. Banks

• ILO Social Finance Programme, Revolving • Is there a bank with experience of lending to the target group identifi ed? Loan and Guarantee Funds, Checklist for a • Are interest rates and other fees charged affordable for the target group? better design and management of ILO technical • How promptly does the bank normally respond to a loan application? cooperation programmes, ILO, 1999 http://www. • Are the loan amounts appropriate in view of the target group’s repayment capacity? ilo.org/public/english/employment/fi nance/ • Is the bank capable of collecting information to evaluate the risks? download/revolving.pdf • Are collateral requirements realistic? • R.Chua and G. Llanto, Assessing the effi ciency • Can the expected self-fi nancing requirements be met? and outreach of micro-fi nance schemes, ILO, 1996. http://www.ilo.org/public/english/ 2. Financial NGOs employment/ent/papers/wpap15.htm • Do people in the target group have access to fi nancial facilities of projects or NGOs operating in the area? CROSS-REFERENCE • How would you assess an NGO’s capacity to build up a suitable mechanism for the target group that would eventually be fi nancially sustainable? • Tool 4.03.07.1, Action Tool: Improving local • Does the NGO have enough qualifi ed staff? access to fi nancial services. • Does the NGO have adequate budgetary support? • How is the NGO perceived by other aid agencies when it comes to management of micro- credits? • Is the collection of loan repayments a source of confl ict between the NGO and the target population? • Does the NGO have any potential to sanction non-repayment? If so, how?

International Labour Ofﬁ ce []Ó 310 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOLTOOL No: No: 4.03.07.1 4.01.07 INFORMATIONACTION TOOL TOOL

THEIMPROVING START ANDLOCAL IMPROVE ACCESS YOUR TO FINANCIAL BUSINESS SERVICES (SIYB) PROGRAM

OBJECTIVEKEYWORDS: Business plan, capacity-building, include moneylenders, pawnbrokers and rotating GROUP LENDING economic growth, entrepreneur, institution- savings and credit associations. Thisbuilding, tool discussesmanagement, a brief marketing, overview microof and Group lending is a way to address the lack of microfismall enterprises, nance and thetrade two union, most trainingimportant There are two most important micro-fi nance collateral that is common to poor households. microfi nance products: savings and loans. This products: savings and loans. The principle of group lending is the use of is meant for development practitioners who have social collateral - that people who trust each identifi ed a need for improved access to fi nancial FINANCIAL PRODUCTS: LOANS other can come together and form a group to services in local communities. guarantee each other’s loans. In the group To understand the main issues related to credit, lending methodology, if one person is unable to WHAT IS MICROFINANCE? it is important to be familiar with the standard repay his/her loan, other members in the group lending methodologies. This section will therefore has to take on that responsibility. Group lending Microfi nance is the provision of fi nancial services fi rst give an overview of lending methodologies, can be divided into two kinds, the solidarity group to low-income clients, including the self-employed. and next discuss the design of loan products on approach and the village banking approach. Financial services generally include savings and the basis of six loan parameters. credit; however, some micro-fi nance organisations Solidarity groups - This approach was pioneered also provide insurance and payment services. Put INDIVIDUAL LENDING in 1976 in Bangladesh under a system, which simply, microfi nance is banking with the poor. later became known as the Grameen Bank. Small Individual lending is the most bank-like approach groups, usually 4 to 6 members, guarantee each Microfi nance institutions can be formal or to microfi nance. It involves relatively large loans other’s loans and support each other in other informal. Formal microfi nance institutions with standard collateral such as real estate, social ways. In the Grameen Bank, groups come include NGOs, credit unions, government vehicles, or other assets with market value. together to form village level centres of about 25 banks, commercial banks or non-bank fi nancial Loans are normally secured by guarantors. to 30 people. Each group meets weekly to collect institutions. Informal microfi nance providers Individual lending tends to target more established repayments, issue new loans, make savings businesses, which have suffi cient assets to secure deposits, and discuss any issues that concern the the loan. members.

International Labour Ofﬁ ce []Ó 311 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07.1 IMPROVING LOCAL ACCESS TO FINANCIAL SERVICES

Village Banking - The second form of group Loan purpose: Microfi nance institutions offer business cycle, which is the time required for lending came out of a strong vision to create a range of loan products, which can include the business to produce or procure something stand-alone village institutions. In the classic working capital loans, housing loans, short-term of value and sell it to generate income. In some Village Banking model, a village bank has an emergency loans, long-term loans for machinery business activities, the business cycle is very internal account, which is its source of loans. and equipment, and loans for buying durable short; in others it is much longer. Each village bank has its own president and consumer goods such as TVs and refrigerators. treasurer who manage the bank and the internal Grace period: A grace period is a period in the account. Many versions of this model exist, with Loan size: A loan is both an opportunity and a beginning of the loan, when the client is not similarities to the Grameen model but with a few liability. It must not be so large that the client required to pay the principal or principal and key differences. Village banking is favoured by the becomes enslaved to the microfi nance institution. interest. The rationale is that certain business very poor, who prefer to work under the protection It has to be both recoverable by the institution and activities need time to generate enough profi ts, of a large group of individuals. useful to the client. Micro-lenders often start with and therefore clients should not begin repayment small loans, expanding to larger subsequent loans. of the loan immediately. CREDIT UNIONS Starting with small loans allows the institution to keep its risks down. In the beginning it has limited Collateral: It is diffi cult for an agency to assess the Credit unions are common in both in developed information on a client’s repayment capacity and reputation of new borrowers. Collateral serves as a and developing countries, often formed by people has to trust the social collateral offered through a way to guarantee the promise of repaying a loan. in the same sector or company. They rely heavily group structure. As a long-term relationship is built It generally takes the form of tangible assets that on savings as a way to raise funds to on-lend to and the client’s business grows, the institution can be confi scated by the micro-lender and sold their members. They use both individual and increases the loan size. to recover the loan. group lending methodologies. Loan duration: It is natural to prefer long-term Interest rates: The small loan sizes necessary LOAN PARAMETERS loans. People think that the more time they have to serve the poor may result in costs per loan to repay a loan, the more they can do with the requiring interest rates that are signifi cantly higher The following loan parameters make up the design money. But the longer they have a loan, the more than commercial bank rates (though signifi cantly of a microfi nance loan product. The parameters it costs them in terms of interest. Therefore it is lower than informal sector rates). Microfi nance are interrelated and have to be adapted to suit the not necessarily true that a long-term loan is better. institutions can only provide services to the poor business activities of the client: The duration of a loan should relate to the client’s on a durable basis, if they are able to recover

International Labour Ofﬁ ce []Ó 312 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07.1 IMPROVING LOCAL ACCESS TO FINANCIAL SERVICES

their costs. A balance must be reached between VOLUNTARY SAVINGS Financial sustainability in microfi nance means that what clients can afford and what microfi nance an institution can cover all its costs from its client institutions need to earn to cover all of their costs. Under a voluntary savings scheme, clients payments on a permanent basis, without donor have a choice: they can save if they want, but grants or subsidised loans. Besides the costs of FINANCIAL PRODUCTS: SAVINGS they are not obliged to do so in order to get administering the programme, such costs include a loan. Microfi nance institutions that provide devaluation of funds due to infl ation, in-kind SAVINGS PRIOR TO GETTING A LOAN such schemes, usually offer a range of savings donations and grants, and losses due to non- products, e.g. term deposits or quick savings. recoverable loans. The microfi nance institution Microfi nance institutions often use this savings may also need to pay interest for its loan fund in method to determine clients’ commitment to their GENDER CONSIDERATIONS order to conduct the lending operation. business and to the repayment of their loans. For the institution, the main advantage of this form Programmes trying to target the lowest income Achieving fi nancial sustainability depends on: of savings is that it generates additional funding groups often focus on women. Research shows to on-lend. Yet, since this type of savings poses a that women are the majority of the poor and are • Appropriate interest rates: Interest rates need to condition for clients to obtain a loan, it can reduce more infl uenced than men by social pressures cover all costs in a reasonable timeframe given access to micro-credit. to repay loans. Compared with men, women also the loan portfolio; tend to spend a larger share of their business • Loan recovery: Microfi nance institutions must COMPULSORY SAVINGS THROUGHOUT A LENDING income on the household. A complicating factor be able to maintain very high loan recovery so PROGRAMME in some women-targeted programmes is the ghost that they are able to continue to operate and client syndrome, when women apply for loans but revolve their loan fund, without increasing costs Under this type of savings, microfi nance in fact serve as a “front end” or entry point to the through losses of non-recoverable loans; institutions require that their clients have to save a loan scheme by male borrowers. • Effi ciency: Maintaining low costs is an important fi xed percentage of the loan, or a fi xed amount. It requirement of sustainability. also instills the discipline of savings, yet it implies SUSTAINABILITY CONSIDERATIONS • Loan fund: The size of the loan fund also a higher effective cost to the client. affects the time needed for the microfi nance Sustainability is the ability to support oneself programme to become sustainable. With a large without any external help on a permanent basis. loan fund, more can be lent, more income can

International Labour Ofﬁ ce []Ó 313 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.03.07.1 IMPROVING LOCAL ACCESS TO FINANCIAL SERVICES

be earned from interest (assuming high loan RELEVANT RESOURCES CROSS-REFERENCE recovery), and therefore the institution can reach fi nancial sustainability sooner; • Alidri, P., Van Doorn, J., El-Zoghbi, M., Houtart, • Tool 4.03.07, Assessment Tool: Assessing the M., Larson, D., Nagarajan, G., Tsilikounas, potential for local microfi nance. Retention rate: Retention also contributes to C., Introduction to Microfi nance in Confl ict- sustainability. Follow-on clients tend to ask for affected communities, ILO 2002. http://www. larger loans, they require less monitoring and they ilo.org/public/english/support/publ/xtextmicr. tend to be less risky because the microfi nance htm#b6425 organisation has got to know them. • Ledgerwood, J., Microfi nance Handbook, World Bank 1999. http://books.google.com. ph/books?id=luaAHdTKMM8C&dq=Microfi n ance+Handbook+World+Bank&pg=PA241& ots=t0YtcMJSi8&sig=oYDdc_mmWPQ65eQ_ bciwO8nHcPg&prev=http://www.google.com.ph/ search%3Fhs%3D3Aa%26hl%3Dtl%26client %3Dfi refox-a%26rls%3Dorg.mozilla%253Aen- US%253Aoffi cial_s%26q%3DMicrofi nance%2 BHandbook%2BWorld%2BBank%26btnG%3D Hanapin%26meta%3D&sa=X&oi=print&ct=res ult&cd=1#PPP1,M1 • L. Mayoux, Microfi nance and the empowerment of women, ILO 2000. http://www.ilo.org/public/ english/employment/fi nance/download/wpap23. pdf

International Labour Ofﬁ ce []Ó 314 Ô CONTENTS SEARCH PRINT HELP EXIT PART FOUR SECTION FOUR OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

PART 4 SECTION FOUR: IMPROVING THE QUALITY AND CONDITIONS OF WORK AND LIFE

INTRODUCTION • They directly affect the health and well-being Section Four of Part 4 focuses on improving the of workers and other people exposed to the conditions in which people work, and places Decent work is not possible without work. workplace (like children in home-based work). especially attention to health and safety at the However, not any work enables a person and Everyone has a right to life. workplace. his/her family to live a decent life. • Labour is the most valuable asset of workers, especially those who are poor. A healthy and This section contains several practical tools for A job or livelihood activity might be precarious safe workplace preserves this valuable asset. carrying out simple, often inexpensive ways of and insecure – does not offer a secure source • Poor working conditions not only harm workers’ improving working conditions, while also raising of income. Earnings might be too low for daily health but also decrease enterprise productivity the productivity of enterprises and micro and own- survival and nutrition. Hazards in the workplace and therefore income from the business or account businesses. might be weakening the health of people work. Poor health and accidents mean: inability exposed to it. The risks of fatal accidents and of workers and enterprise owners-operators to serious injuries might be very high. One might be work effectively, loss of productive time and subjected to daily abuse and inhuman treatment. poor quality work. • Poor health and high incidence of accidents in Why are working conditions, and occupational a local community impose a cost on local public health and safety a signiﬁ cant part of local health services and local resources. development?

International Labour Ofﬁ ce []Ó 316 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01 INFORMATION TOOL

OVERVIEW OF THE KEY ELEMENTS OF JOB QUALITY

OBJECTIVE WHAT IS JOB QUALITY? • The fundamental rights at work (see below) are important elements of job quality, as are issues This information tool The term ‘job quality’ refers to a range of inter- that are basic to workers’ needs for economic connected employment concerns that, between security, such as wages and job security. • Discusses the concept of ‘job quality’ and them, determine for each worker whether his or to its relevance to local economic and social her experiences at work are positive or negative. WHY IS JOB QUALITY IMPORTANT AND FOR development. WHOM? • Explains the contribution of the work • Some of these relate to the physical working environment, working conditions and health environment, and especially on the effects of Job quality is a key issue not only for workers but and safety at the workplace to the overall work on the health and safety of the worker. In also for employers because job quality affects health situation of the community, workers’ the case of home-based work, in particular, the business performance. Whereas some people productivity and incomes, and thus to local working environment translates to the impact imagine that better job quality can be achieved development. on the health of the whole family who may be only through signiﬁ cant investment, or that it will affected by dust or noise caused by work, by impose a cost on businesses, the reality is that This tool will help planners and practitioners chemicals used in the course of work, or by better job quality can be a way to improve results appreciate the qualitative aspects of employment, machine or other hazards. for both employers and workers. The other tools the impact these have on poverty, and the • Job quality concerns also include the effects in this section provide practical information on strategies that can be designed and implemented of the non-physical work environment, such as how to achieve improvements in productivity to reduce poverty. employee-management relations, the respect and competitiveness through simple, low-cost for workers’ dignity, as shown through issues improvements in working conditions or other such as sexual harassment and stress at aspects of job quality. work, the amount of time that people need to work, and protection for particular groups of Job quality issues such as safety and health or workers with special needs, such as pregnant or remuneration are issues for the whole community, breastfeeding women. since they have such an important impact on

International Labour Ofﬁ ce []Ó 317 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01 OVERVIEW OF THE KEY ELEMENTS OF JOB QUALITY

economic and social life in the community, protection, support for breastfeeding)? Is the life, maternity and disability? Do they provide and they are therefore major issues for local workplace free from harassment and violence? benefi ts in case of unemployment? Do they developers. Does the organisation of work contribute to provide decent pensions to retired workers? workers’ well-being? Are basic work-related Where national schemes do not provide ASPECTS OF JOB QUALITY TO ASSESS welfare facilities available? protection in any of these areas, are other • Safety and health concerns: Are workers at schemes available to workers? Workers’ (and employers’) priorities concerning risk of occupational accidents and diseases? • Equality at work: Do all workers have the same the different aspects of job quality may be Do environmental hazards affect the health of opportunities and treatment, regardless of their different, so in deciding which aspects of job workers or residents? Is fi rst aid and other help, race, colour, sex, religion, political opinion, quality should be focused on, the views of the including information and training, available? national extraction or social origin? Do men and different groups concerned should be found out Are measures taken to promote health in the women receive equal pay for the same work and taken into account. They will include some or workplace? and also for work of equal value? all of the following: • Job security: Do workers have written • Freedom of association: Do workers and employment contracts? Do they enjoy security employers have the right to establish and to • Remuneration: Are salaries and fringe benefi ts of tenure? join organisations to further and defend their enough to sustain workers and their families? • Human resource development and management: interests, without interference? Do workers Do they meet the requirements of relevant laws Are there education and education enjoy protection against acts of anti-union and regulations, collective agreements and opportunities for workers? Do workers have discrimination? Is collective bargaining contracts? Are they paid on time? prospects of promotion and incentives for practiced between employers or employers’ • Conditions of work: Does working time improvement? Are employers aware of best organisations and workers’ organisations to correspond to workers’ preferences? Does practices in contemporary management regulate terms and conditions of employment? the amount of time spent at work provide methods? Are there good relations between • Freely chosen employment: Are any workers adequate rest and time for personal life? Is employers and workers, and mechanisms for subject to forced or bonded labour? overtime properly paid? Are men and women dialogue between them to prevent or resolve • Absence of child labour: Are children working workers able to combine work with their family problems? below the legal minimum age for work, or responsibilities? Is there adequate maternity • Social security: Are workers covered by working in hazardous work below the minimum protection for women workers (job protection national social security schemes? Do these age for such work? Are children under 18 and non-discrimination, leave, benefi ts, health provide adequate protection relating to health, working in the worst forms of child labour

International Labour Ofﬁ ce []Ó 318 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01 OVERVIEW OF THE KEY ELEMENTS OF JOB QUALITY

(slavery and similar practices and forced or available based on best national or international RELEVANT RESOURCES compulsory labour, prostitution or pornography, practice. illicit activities such as drugs, or work likely to • Job Quality and Small Enterprise Development, harm the health, safety or morals of children)? The last four elements of job quality concerns Working Paper No 4 Series on Job Quality mentioned above incorporate the eight ILO in Micro and Small Enterprise Development, SOURCES OF JOB QUALITY STANDARDS Conventions (Forced Labour: Numbers 29, 105; International Labour Organization, Geneva Freedom of Association and Collective Bargaining: http://www.ilo.org/dyn/empent/docs/ Many of the job quality concerns listed briefl y Numbers 87, 98; Non-Discrimination: Numbers F111PUB1728_01/PUB1728_01.pdf above are dealt within national laws, regulations or 100, 111; Minimum Age: Numbers 138, 182) collective agreements. identifi ed by the ILO as being fundamental to the CROSS-REFERENCES rights of human beings at work, irrespective of the Many have been the subject of ILO Conventions or levels of development of individual member States. • Tool 1.02, Information Tool: The Decent Work Recommendations, known as international labour These rights are a precondition for all others in Framework standards. These standards provide guidance that they provide for the necessary implements to • Tool 4.04.01.1, Assessment Tool: How to assess on measures to be taken by governments, strive freely for the improvement of individual and job quality in work places and enterprises employers and workers. If a country ratifi es an collective conditions of work. • Tool 4.04.01.2, Action Tool: Twelve ways to ILO Convention, it accepts a legal obligation to improve local jobs implement the requirements of the Convention. • Tool 4.04.02, Action Tool: Improve working conditions and productivity of small enterprises On the other hand, some of the job quality • Tool 4.04.02.1, Action Tool: Simple, low-cost concerns (e.g. sexual harassment) have not ways of improving working conditions in the been explicitly dealt with in international labour “informal sector” standards. In these cases, guidance may still be • Tool 4.04.03, Action Tool: Health, safety and working conditions in agriculture

International Labour Ofﬁ ce []Ó 319 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 ASSESSMENT TOOL

HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

OVERVIEW OBJECTIVE JOB QUALITY ASSESSMENT

Decent work defi nes the elements of job quality, This assessment tool: Job quality assessment looks at the needs of and provides the basis for assessing the quality of employers and workers. Job quality needs are employment at the work place (see Information • Discusses a method for assessing the needs expressed and defi ned by: Tool 1.02). and aspirations of workers and employers particularly with regards to specifi c work-related • International and local technical standards To come up with responsive interventions to dimensions as set out in laws, regulations and accepted address job quality concerns of workers and • Suggests practical approaches, including partial industry practice – these provide objective employers, local planners need to undertake an or targeted assessment, in assessing the quality standards. assessment of these concerns. The assessment of employment in their communities in order • The views of employers and workers as to what must be cost-effective in its effort to identify for them to design appropriate interventions to is acceptable - these are also important in workplace and employment issues to be urgently progressively achieve quality and decent jobs. assessing job quality. Hence, the second aspect addressed and subsequent policies, programs of the inquiry would deal with the demands and interventions to be implemented and further With the assessment of the quality of local expressed by employers and employees, to improved. employment, local planners and development be assessed in terms of available institutional practitioners will gain an understanding of mechanisms that supply the needed protection the needs, demands, and available support or developmental support. mechanisms, as well as recommendations on • Opinions of experts (individuals and institutions) what could be done (policies and programmes) in the fi elds of job quality – Their views and who could provide service or support. are valuable not only for a more accurate assessment, but also on the appropriateness and responsiveness of recommendations that can be provided in improving overall job quality.

International Labour Ofﬁ ce []Ó 320 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

PREPARATION FOR ASSESSMENT OF THE QUALITY whether one serves as the cause or effect THE JOB QUALITY CHECKLIST OF LOCAL EMPLOYMENT • Assessing business indicators vis-à-vis the perceived and actual business constraints THE CHECKLIST IS A POWERFUL GUIDE FOR THESE There are a number of tasks to perform: • Deciding what workplaces and what job TASKS: quality elements should be the initial focus, if • Developing relevant local indicators for each appropriate • Identifying priority job quality issues in the of the job quality dimensions. The table below workplace gives a list of questions that could be asked in WHAT SHOULD BE ACHIEVED BY THE JOB QUALITY • Determining to what extent the issues are determining appropriate indicators. ASSESSMENT? affecting the workers and employers • Developing approaches for adaptation and local • Serving as a framework in implementing application of: At the end of the process, the following should practical job quality improvements • Identifying relevant international and local have been achieved: standards that defi ne minimum conditions of THE CHECKLIST IS APPROPRIATE FOR THREE work • Identifi ed priority workplace and employment USERS: • Identifying stakeholders that provide regulatory, issues that must be addressed protective, and developmental support to • Translated the needs into demand through 1. Micro and small enterprises: Considering their industries and enterprises effective communication of job quality requisites economic and social signifi cance, their job • Identifying needs and assessing workplace- and strategies quality is generally wanting and at times could level needs and demands of employees and • Formulated recommendations for appropriate be deplorable. There is growing evidence employers on job quality issues interventions, to include description of possible that practical and low-cost improvements are • Examining the relationship between policy, programme, and project interventions, very much acceptable to these enterprises international and national standards, the identifi cation of delivery mechanisms for especially those that redound to higher prevailing working conditions as defi ned by targeted interventions, information on local productivity. laws, and the institutions that implement the conditions that may affect social acceptability minimum standards of recommended interventions, communication 2. Larger enterprises: These enterprises often • Examining the signifi cant relationships between inputs, and delivery mechanisms, and pursue better job quality measured in various business indicators and working conditions, • Recommended the necessary follow-through indicators from worker satisfaction through activities

International Labour Ofﬁ ce []Ó 321 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

lower absenteeism, turnover and fewer THE CHECKLIST IS DIVIDED INTO THREE A FEW NOTES BEFORE USING THE JOB QUALITY grievances, up to higher productivity and CATEGORIES: CHECKLIST: improved business performance 1. Information: The questions under this 1. The checklist could give a comprehensive 3. Local planners: The checklist serves as a category are designed for getting background picture of local job quality for most situations. simple guide in the conduct of job quality information needed in reaching decisions, but assessment. The use and applicability of the which do not constitute one. 2. It is important to pilot test the checklist in checklist should conform to local planners’ several enterprises before the conduct of the specifi c intentions and objectives of the 2. Compliance: The questions under this category job quality assessment in order for the local assessment. Depending on the needs, a should lead to a “Yes” or “No” response, which planners to determine how to use the checklist more basic assessment could be undertaken most of the time can be further qualifi ed. to capture adequately the issues confronting wherein only selected questions from the These questions allow easy identifi cation of them and develop strategies and set priorities checklist are used, for example, only one or priority issues. in improving job quality in enterprises. two questions in each dimension. Alternatively, a more detailed assessment of a particular 3. Analysis: These questions are critical, and are 3. While the checklist can be used for all dimension could also be implemented. For expected to draw the attention of enterprises enterprises, the information that could be example, if the motivation for undertaking and local planners to the issues and factors recorded in the information, compliance the job quality assessment is concern over affecting job quality problems. and analysis items in the different job quality the high number and cost of work-related dimensions could be specifi c to certain types accidents or illnesses, the occupational safety of enterprises or workplaces. In the last column and health dimension could be used in detail – Type of Workplace, the user of the checklist and expanded, while other dimensions may be can indicate in this column the specifi c excluded from the assessment or treated only workplace which the information corresponding briefl y. to the checklist item refers to.

International Labour Ofﬁ ce []Ó 322 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

Job Quality Checklist

Dimensions Information Compliance Analysis Type of Workplace

Remuneration levels • What statutory monetary benefi ts are • Are the levels of remuneration for • How do the salaries and fringe benefi ts provided? workers at par with the requirements of for workers and their families compare to • What are the modes and regularity of relevant laws and regulations, collective the present standards of living? salary payments? agreements and contracts? • What are the bases (e.g. minimum wage laws, sales and profi ts) for computing salary payments? • What are the average profi t1 levels for the business owners?

Conditions of work • What are the average working hours? • Is overtime work properly paid? • What major factors (e.g. time frame in • What work-related welfare2 facilities are • Is premium pay provided for work completing the job order, availability of available? rendered on holidays, rest days and night power) affect the working hours? shift? • In general, how is the workers’ well being • Do leave arrangements between the enhanced by the working conditions? employers and workers satisfy existing regulations on leave credits? • Is there adequate maternity protection for women workers (job protection and non- discrimination, leave beneﬁ ts, hazard-free work-station)? • Is there incidence of stress at work, prohibited drugs or alcohol use, harassment or violence?

Safety and health concerns • What are the gaps in the safety and • Is there somebody or a group of persons • What simple, innovative and inexpensive health concerns reported by owners and delegated to assess safety and health methods are applied in the workplaces to workers vis-à-vis actual observations? conditions? address safety and health concerns? • What is the rate3 of injuries/ accidents • Are owners and workers aware of • How do the enterprises assess and and illnesses? the safety and health standards that monitor safety and health hazards? enterprises have to implement? • Are there safety and health policies and safety operating procedures being implemented in workplaces?

1 An appropriate local defi nition and commonly used term for average profi t among target enterprises should be fi xed. 2 Welfare facilities include drinking water, separate toilets for male and female workers, rest areas, lockers, fi rst-aid kits, and other essential facilities to provide comfort to workers, reduce fatigue and maintain health. 3 Use rate of injuries/ accidents and illnesses as defi ned by national occupational safety and health standards and published in national statistics.

International Labour Ofﬁ ce []Ó 323 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

Dimensions Information Compliance Analysis Type of Workplace

Job security • What are the views of employers in • Do employers and their workers have • Aside from contracts, what other modes relation to the hassles of registering legally binding contracts? (e.g. verbal agreement) are practiced in a business and its advantages (e.g. • Do workers enjoy security of tenure? ﬁ xing the conditions of employment and ﬁ nancial assistance, networking, pre- • Are the enterprises registered with any length of tenure? condition to exportation)? government entity? • Do workers feel secured with the stability of their enterprises?

Social security • What national social security or • Are there adequate mechanisms for • How are the difﬁ culties employers and alternative social protection schemes are health, life, maternity, disability and workers encounter in accessing to available for workers? unemployment insurance? available social protection schemes being • Who bears the medical costs in case • Are workers paid while on leave due addressed? of work-related injuries/ accidents or to work-related injuries/ accidents or illnesses? illnesses and do they get compensation as covered by insurance? • Are workers eligible for pension after retirement?

Equality at work • What are the reasons for the prevailing • Are equal opportunities among workers, • What are the more serious areas of ratio of male workers vis-à-vis female regardless of race, colour, sex, religion, inequality? workers? political inclination and social origin, • How are awareness to gender issues and • What types of sexual harassment happen satisfactory in terms of parameters such equality among female and male workers in workplaces? as remuneration, access to learning new strengthened? • How do employers view the ability of skills, and others? • What organisations victims of sexual female workers and the need to give them • Do men and women receive equal pay for harassment can turn to? opportunity to work? the same work or for work of equal value? • Is there a committee set up to deal with cases of sexual harassment, as mandated in the Anti-sexual Harassment Act?

Freedom of association • What organisations/ industry associations • Are workers free and encouraged to • How is the participation of workers in can employers afﬁ liate with? organise themselves to protect their decision-making strengthened? • Up to what extent can workers take interests? • What can workers/ employers say about necessary decisions that affect their work? • Is the right to collective bargaining the independence workers enjoy in recognised and practiced between performing their job? employers/ employers’ organisations and workers/ workers organisations to regulate terms and conditions of employment?

International Labour Ofﬁ ce []Ó 324 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

Dimensions Information Compliance Analysis Type of Workplace

Freely chosen employment • What are the employers and workers’ • Is there bonded labour or any exploitative • If there is any, how have bonded views of the advantages/ disadvantages apprenticeship arrangements? labour and exploitative apprenticeship of a situation (if it exists) of bonded arrangements come about? labour or any exploitative apprenticeship • What are the means for workers to get arrangements? out of any existing exploitative work arrangements and freely choose their employment? • In cases of exploitative work arrangements, what are the measures taken by the government and concerned private organisations to combat exploitation and related abuses?

Absence of child labour • In what types of jobs and sectors are • Are employers and workers aware of • What are the measures taken by the children working in? legislation and related prohibitions on government and concerned private • What is the existing legislation on child labour? organisations to combat child labour and prohibition of child labour? • Generally, are these child workers promote its elimination? • What are the personal views of employers/ relatives of the employers or workers? • If the presence of child labour has workers on employing child labour? diminished or increased substantially over • In cases where there is child labour, what the past few years, why is this so? are the occupational hazards to health and morals, child workers are exposed to?

Human resource • What are the concerns of the workplace • Are there opportunities for both workers • On what conditions, if it is practiced, do development and in terms of work organisation (e.g. change and employers for training and education the employers allow their workers to have management layout, increase working space, and on advanced skills or new job-related cash advances? improve housekeeping)? skills and knowledge? • What are the employers/ employees’ • What are the incentives for improvement • Do employers avail of training on expectations in terms of remuneration in offered by employers to their workers? contemporary management methods? the next two years (e.g. at least a 20% • What are the reasons for high labour • Are there regular interactions or formal increase)? turnover? meetings between employers and • How do the workers view their prospects workers? for promotion? • What are the reasons for conﬂ icts between employers and workers? • How are these conﬂ icts resolved?

International Labour Ofﬁ ce []Ó 325 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

HOW TO COLLECT THE INFORMATION the community, 2) getting previous works on concerned government/ private institutions REQUIRED FOR JOB QUALITY ASSESSMENT assessing job quality conditions, 3) determining and non-governmental organisations (NGOs). the feasibility of the research thrust, 4) validating Specifi c informal sector groups and self-help COLLECTING IMPORTANT INFORMATION (DESK industry and geographical focus, and 5) identifying groups (e.g. association looking after groups REVIEW) key institutions and informants, including contact of market vendors) are also sources of these persons. reports. Collecting the required information is very • Database and statistics of national and local important in preparing for an assessment of job The type of background and other information and government units, and specialised organisations quality. Data can be collected through the use potential sources for a desk review are suggested (e.g. national safety councils) can be a good of different methodologies such as review of below: source of the profi les of enterprises that have background information and literature, interviews, become benefi ciaries of these organisations community mapping, direct observations and • National or trade-specifi c surveys conducted through trainings and assistance programmes. group discussions. Collecting information in by the government, non-governmental • Reports of externally funded projects by different ways is very useful in order to have a organisations (NGOs) and other stakeholders. project proponents - government or private complete picture of the issues and concerns on These studies provide information about the organisations including the academe, show different aspects of job quality. One methodology different sectors of enterprises, and some of the program outputs vis-à-vis the objectives. or two may not be suffi cient to gather the them may actually discuss various aspects Most of these projects have delved on various relevant information on the aspects of job quality of job quality including working conditions. aspects of job quality including trade and needed for assessing the same. Much more, The surveys at times show specifi c prevailing market issues and concerns. The reports are the methodology also dictates the depth of data economic settings on which industries thrive also available with the project sponsor. to be gathered. Also, one methodology can be and existing structures and social support. • Special reports on particular industries or used to validate information provided by the other • Informal sector reports (published and sectors as featured by government agencies, methodologies. unpublished) have essentially depicted the employers’ groups, trade unions and others are conditions of micro and small enterprises very useful. These reports normally boast of the The entire process of collecting relevant (MSEs). These reports come from the contributions of a specifi c sector (e.g. export information begins with an initial desk review projects initiated and funded by international winners) on the local and national economy. for the purpose of 1) acquiring information on organisations including the International • Information on national legislation and the country, industry, profi le of enterprises and Labour Organization (ILO) in collaboration with enforcement measures provide data on relevant

International Labour Ofﬁ ce []Ó 326 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

legislations that impact on the job quality. It is organisations, local NGOs, universities and this information and how the information would important to look at the various enforcement research institutions. be analysed will guide the interviewers in making agencies and their mandates, and select a more defi nite selection of useful informants. the data required for the assessment of job INTERVIEWING KEY INFORMANTS For example on general economic background, quality. Working conditions is with the labour the likely sources of information are literatures department, while market and trade concerns The fi eld assessment begins with interviews with available on national income statistics, labour are among the areas of the trade and industry individuals or groups of individuals who have the statistics, from the Department of Labour and department. most ideas about the different parameters of job Employment or Trade and Industry or labour • Case studies in book or monograph forms or quality. associations. other descriptive studies including unpublished Selection of the key informants or experts in theses and dissertations on specifi c groups of specifi c subject matters and service providers has In the development of guide questions enterprises or specifi c occupations/ categories a direct bearing on the quality of information that (questionnaire) include the 1) profi le of the of workers are also relevant sources. can be gathered. The general list of possible key community (social and economic status, physical • Newspaper, magazine and special reports which informants include: offi cials of national agencies, infrastructure and basic services, types of are products of investigative journalism often local government units or community-based occupation, and enterprises with working children, feature special groups of enterprises surfacing structures, enforcement authorities including the accidents, or worker problems), 2) business issues on working conditions including elements labour inspectorate, heads of smaller sectoral problems/ issues and perceived causes/ solutions, of job quality, by way of communicating to organisations such as industry associations, 3) worker-related problems/ issues and perceived government and other concerned organisations. offi cers of NGOs and self-help groups or causes/ solutions, 4) employment and workplace • Websites are also a source of updated associations. It is very important to have a cross practices, and 5) solutions applied to address materials. Specifi c areas of job quality could section of profi les of key informants. identifi ed problems. also be used as search topics in fi nding materials in the internet. The table below (see Table on Background Interview with entrepreneurs and workers are Information) presents a guide on information and conducted to fi nd out the profi le of the enterprise Materials on local job quality conditions can issues and possible literature and key informant and respondent, profi le of job quality conditions, be sourced from United Nations’ agencies and sources. views and concerns of entrepreneurs/ workers and international organisations, government agencies workplace practices, prevailing problems including including specialised organisations, sectoral A list of needed information, possible sources of job quality issues, perceived solutions and

International Labour Ofﬁ ce []Ó 327 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

expected behaviour and employment practices. their working conditions. After identifying the different characteristics of the community – age enterprises covered by the study, select the group, size of enterprise, gender, type of sector, There may be a need to have probing questions respondents (entrepreneurs/ workers) to be type of work, etc. for job quality – related problems as well as interviewed. The respondents must represent asking respondents on their views on improving

Table on Background Information4

Information and issues Sources of literature Source of key informants I. General profi le of the community - general economic National and local income and labour statistics, economic and Department of Trade & Industry, Department of Labour & background (GDP size and growth, per capita income, labour labour market studies done by universities, research institutes & Employment, industry & labour associations, local government force), conditions of infrastructure and basic services ministries units for city/province-specifi c information, NGOs, research institutions II. Legislation and regulatory environment – business registration Relevant studies about policies, labour laws, social security Department of Trade & Industry, Department of Labour & and licensing, laws and policies concerning conditions of legislation and occupational safety and health regulations Employment, social security, health insurance providers, business employment, social security legislation and safety and health or trade associations legislation III. Job quality conditions in enterprises National and local economic planning offi ces or social Department of Trade & Industry, Department of Labour & a. Income distribution, poverty situation, equality issues between development ministries departments for poverty data Employment, Department of Health and similar agencies, could women and men. Social security offi ces for estimates of coverage provide overviews of job quality conditions. b. Normal working hours in different sectors c. Insurance and pension schemes and benefi ts from childcare Labour department and specialised agencies (labour statistics, Workers and employers’ organisations, offi cials and research and maternity leave available OSH agencies, vocational training providers, inspectorate, labour departments d. Working environment, prevention of occupational accidents relations offi ce) for studies on working conditions, OSH, training and diseases and environmental hazards Universities and research institutes with studies on labour market Specifi c branches of government agencies such as bureau e. Access to further education and training possibilities conditions and industrial relations of women and young workers, OSH agencies, inspectorate, f. Use of contemporary management and participatory methods vocational training providers g. Freedom of association, and to what extent workers and Labour force survey employers organise h. Bonded and child labour, exploitative apprenticeship arrangements i. Role of government in monitoring, extending support and providing information on job quality issues to enterprises

4 Adopted from Yu and Batino, “Rapid Assessment of Job Quality Needs and Demand In Micro and Small Enterprises” March 2004

International Labour Ofﬁ ce []Ó 328 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

SELECTING AND MAPPING THE SITE Sample Map5 Preparing a checklist to guide observation is also important (see the Site Guide Checklist on Site selection is a crucial element of assessing the following page). The Site Guide Checklist the quality of local employment. The selection is items must include (1) settlement patterns and purposive – the site to be selected must possess density of houses, (2) social and economic the characteristics required by the assessment structure and evidence of variation, (3) physical and the study in general. The characteristics of an infrastructure and services (e.g. power and water acceptable site can be based an industry or sector, distribution) available, (4) public transportation, demographics, poverty status, government priority, (5) community services (e.g. health centres, geographical location and types of infrastructure government offi ces) available, (6) enterprises and present. livelihood strategies, (7) distance to services and markets (accessibility), (8) working children and Once the desired sectors or characteristics are work conditions, (9) unemployment, and (10) decided upon, it would be useful to map key identifi cation of key informants. locations of target sites/ enterprises such as industrial areas, farm lands, locations of principal DIRECT OBSERVATION OF ENTERPRISES contractors and their subcontractors, wide rural or semi-rural areas, commercial areas, marketplaces Direct observation is a sound basis to examine and locations of informal sector enterprises. It behaviour and practices within the enterprise as is important to know where (localities) specifi c they relate to job quality. A systematic observation sectors/ enterprises are found then a list could puts visual representation and elaboration to the be developed. The maps are not expected to be conditions found in the enterprises including very detailed, but they should contain very useful those described by employers and workers. reference as to streets and landmarks. The maps Observations allow a “third party” to assess the should contain markings where target enterprises needs of enterprises and discover their good are located and possibly an estimate of the practices. number of enterprises. 5 Adopted from Yu and Batino, “Rapid Assessment of Job Quality Needs and Demand In Micro and Small Enterprises” March 2004 The visit to enterprise to conduct an observation

International Labour Ofﬁ ce []Ó 329 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

Site Guide Checklist6 can coincide with the key informant interviews with entrepreneurs/ workers. It is recommended Possible links to job quality that the conduct of observation be team-based Observations conditions of enterprises and be conducted by at least two researchers who

• Settlement patterns and density of possess adequate background on the different houses components of job quality. • Social and economic structure and evidence of variation • Physical infrastructure and services It is important that the researchers use an available – • Street conditions observation checklist as guide. A sample Direct • Availability of power Observation Guide is provided below. This Direct • Sources of water and distribution Observation Guide can be expanded depending system • Sanitary conditions (presence of on the extent and frequency of the observations. standing water and human/animal Use the checklist to record the details of the waste) and drainage system • Phone connection enterprise, processes, activities and work • Solid waste disposal practices in relation to the job quality components, • Community buildings • Public transportation occupational hazards workers are exposed to, • Presence of services in the community good practices and improvement actions. The (availability) • Distances to services and markets researchers can be aided by video or still camera (accessibility) during their documentation. • Enterprises and livelihood strategies, places important for livelihoods • Working children and work conditions The timing of the observation is also crucial. It should be scheduled when production activities are on going, and if possible during peak production periods. There is fuller range of operations during said periods; hence, job quality conditions become more apparent.

6 Adopted from Yu and Batino, “Rapid Assessment of Job Quality Needs and Demand In Micro and Small Enterprises” March 2004

International Labour Ofﬁ ce []Ó 330 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

Direct Observation Guide7

Time/ Date Location Worker Activity Work position Equipment used Tools used Hazardous? (Yes/ No); Explain 10:00 am/ Cutting Peter James Cutting Operator Circular saw Pliers Yes section Lathe machine Clamp 1. Exposure to wood dust 1 Sept. 2004 2. Possible cuts/ lacerations in using equipment 3. Injuries from wood splinters in cutting operations 4. Exposure to high levels of noise from circular saw and lathe machine

STRUCTURED GROUP DISCUSSIONS Local planners and other users of this tool 1. For information collected on the profi le of can refer to the Rapid Assessment of Job the community, the data can be analysed by Structured group discussions’ participants must Quality Needs and Demand in Micro and Small assessing the following: be representatives of the target groups. The Enterprises developed by Yu and Batino for the discussions can be with 10-12 entrepreneurs and, ILO, for more detailed guidance on structured • Magnitude of enterprises’ activities in the separately, with 10-12 workers. group discussions. community • Availability and accessibility of resources (e.g. Any discussion must have a guide indicating the workers, materials and fi nances), market for purpose of the exercise, as well as how data may HOW TO ANALYSE THE INFORMATION goods and services, basic services (e.g. water, be collected and analysed. Pile sorting, problem- GATHERED power and transportation), and support services ranking and problem-analysis are examples of on health and training activities that these discussions could have. It The analysis of the information gathered from • Impressions on working conditions in is important to compare the responses of the the different methodologies of data collection enterprises, and effect of the same on the employers and the employees, as signifi cant could vary considering the intentions of using a conditions of the community and vice-versa variations will likely emerge. methodology. • Concentration of enterprises based on political structure

7Adopted from Yu and Batino, “Rapid Assessment of Job Quality Needs and Demand in Micro and Small Enterprises” March 2004

International Labour Ofﬁ ce []Ó 331 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

• Possible constraints and opportunities related items that are the subject of analysis are the or problems. The analysis can also show the to enterprise activities and working conditions following: ranking of problems and solutions, and this can improvements instigate the community to arrive at a consensus • Summary and list of possible issues, problems • Physical layout of the workplace, work fl ow and and identify the more feasible solutions. and constraints based on the gathered data and locations of hazardous operations and materials initial observation. • Work distribution and seasonality of work WHAT TO DO WITH YOUR RESULTS • Productivity of workers and machines, 2. Information obtained from interviews of key bottlenecks The usefulness of the results of the assessment of informants: • Occupational hazards present job quality in the local community can be shown • Presence of child workers and reasons why by the actual benefi ts that could redound from the After taking into consideration the general profi le • Working hours assessment. Overall the assessment can: of respondents, the data gathered from the • Trainings available/ needed questionnaire can be analysed by looking in-depth • Provide profi le of the target enterprises and into the problems that have surfaced and the 4. Structured discussions: describe the state of the industry perceived seriousness, and the corresponding • Reveal the most critical job quality conditions to solutions or recommended actions obtained from The information obtained from the structured be addressed the viewpoints of the respondents and one’s own group discussions are analysed based on their • Indicate the business problems and needs that perspective. respective purposes and the kind of activities could infl uence job quality issues conducted in the discussions. If the discussion • Uncover the level of awareness among the 3. Direct observations of the enterprise: focused on determining the interrelationships entrepreneurs and workers of current policies among different problems and job quality and institutions concerned with job quality With data from the Direct Observation Guide, issues (e.g. business problems vis-à-vis job issues the analysis of the listing of conditions needing quality problems), then the analysis could show • Explore good and innovative practices that improvement shows the presence of the hazards the causality, the progression, similarity and entrepreneurs and workers implement in the workplace whereby one can deduce the coincidence of the different factors involved. The • Explore perception on job quality issues (e.g. types of improvements necessary. Among the qualitative analysis can be compared with the key occupational safety and health, employment informant interviews and complement the fi ndings conditions, workers organisations) of in the latter, let’s say on the seriousness of issues participants of the assessment

International Labour Ofﬁ ce []Ó 332 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.1 HOW TO ASSESS JOB QUALITY IN WORK PLACES AND ENTERPRISES

• Prioritise the most important problems of RELEVANT RESOURCES enterprises, including the most critical job quality problems Yu and Batino, Rapid Assessment of Job • Assess the willingness and level of Quality Needs and Demand In Micro and Small preparedness of the target groups to improve Enterprises. March 2004 job quality conditions • Reveal the importance of practical interventions in the decision of enterprises to undertake CROSS-REFERENCES changes • Identify the resources within or accessible to the • Tool 1.02, Information Tool: The Decent Work community for improving job quality Framework • Provide ideas on the interrelationships among • Tool 4.04.01, Information Tool: Overview of the different problems and job quality issues key elements of job quality • Arrive at a consensus for selected sectors or • Tool 4.04.01.2, Action Tool: Twelve ways to industry, on the most important job quality improve local jobs problems they face • Tool 4.04.02, Action Tool: Improve working • Generate and prioritise solutions on different conditions and productivity of small enterprises levels – policy, laws, programmes and projects • Tool 4.04.02.1, Action Tool: Simple, low-cost • Create awareness for national and local ways of improving working conditions in the planners on the real job quality issues in the “informal sector” community and workplaces which they have to • Tool 4.05.01, Information Tool: Fundamental consider in the strategies rights at work • Compare the problems prioritised and solutions • Tool 4.05.03.1, Information Tool: Gender: the generated to earlier ﬁ ndings challenges of women and work • Synthesise the short-term, medium-term and long-term solutions

International Labour Ofﬁ ce []Ó 333 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.01.2 ACTION TOOL

TWELVE WAYS TO IMPROVE LOCAL JOBS

OBJECTIVE 3. Conduct a regular local competition for “small, 7. Take advantage of brief periods of public low-cost and clever” improvements in job awareness to job quality/working conditions/ This tool suggests some practical ways and ideas quality/working conditions/OSH, to encourage OSH issues (for example, after a local workplace that local planners and leaders could do in order practical action by local businesses and accident or a well-reported international incident to raise awareness about job quality and working workplaces. occurs), to market “fl agship” programs or other conditions, stimulate community initiatives and awareness, consultative, and outreach activities. mobilise support from various institutions and 4. Start at home: develop and implement an organisations. action plan to improve job quality/working 8. Actively seek sources of fi nancial support for conditions/OSH for people employed by the efforts to improve job quality/working conditions/ 1. Liaise with and pressure regulatory and other local government. OSH. agencies (labour inspectors, health offi cials, agricultural or industry extension workers 5. Establish links with informal workers and and others) to be active in the community organisations that interact with them: they are CROSS-REFERENCES in promoting job quality/working conditions/ an important part of the community and the Occupational Safety and Health (OSH) issues. local economy (for example, ensure that there • Tool 4.04.01, Information Tool: Overview of the are safe, secure and decent places for vendors key elements of job quality 2. During each planning period, undertake a in markets or on the streets and that they do • Tool 4.04.01.1, Assessment Tool: How to assess fl agship initiative to improve job quality/working not suffer harassment from police or other local job quality in work places and enterprises conditions/OSH issues for a particular group or offi cials). • Tool 4.04.02, Action Tool: Improve working local area, as a demonstration of what changes conditions and productivity of small enterprises can be made. 6. Mention job quality/working conditions/OSH • Tool 4.04.02.1, Action Tool: Simple, low-cost issues in all possible speeches and interviews ways of improving working conditions in the with media outlets. “informal sector” • Tool 4.04.03, Action Tool: Health, safety and working conditions in agriculture

International Labour Ofﬁ ce []Ó 334 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02 ACTION TOOL

IMPROVE WORKING CONDITIONS AND PRODUCTIVITY OF SMALL ENTERPRISES

OVERVIEW WISE: WORK IMPROVEMENT IN SMALL Southern Luzon and Manila). In 1997, WISE ENTERPRISES was institutionalised as a regular approach to Small and medium enterprises are very important improving working conditions in enterprises for the growth of the local economy and for the HISTORY IN THE PHILIPPINES throughout the country. creation of jobs. The survival and competitiveness of businesses depend on several critical factors; The WISE method sharply improves conditions OVERVIEW OF WISE METHOD among these are productivity and quality of at the workplace and increases productivity in products. small enterprises. It adapts to local conditions and An action-learning approach - stresses practical emphasises practical actions and local knowledge advice (“How to”), low-cost solutions, and effects Better working conditions and strong worker and experience. on productivity and quality. motivation contribute to raising productivity and ensuring product quality. The WISE method was developed and tested Target group - the owner-manager of small by the International Labour Organization (ILO) enterprises. But the support and involvement of OBJECTIVE through many years of practical experience with workers are important. owners and managers of small and medium- This action tool sized enterprises in many countries, including the Because the practical actions adopted by Philippines. Through the collaboration of the ILO owner-managers concern and beneﬁ t workers, • Discusses simple and effective ways of and the Department of Labor and Employment, the actions lead to the support of workers. In improving conditions at the workplace that also the Philippines was among the ﬁ rst countries to enterprises where owner-managers desire a long- directly affect productivity. test the WISE method as early as in the 1980s. term improvement and growth of their businesses, • Introduces the WISE method and Action From 1994 to1996, the Department of Labor and the involvement of their workers is very important. Manual, which are designed to help owners Employment, with assistance from the ILO and So an understanding of WISE by workers would and managers of small and medium-sized the United Nations Development Programme add value to the improvement process. enterprises, together with their workers, make (UNDP), applied the WISE guides for assessment their workplaces safer and more productive. and action in four pilot regions (Davao, Cebu,

International Labour Ofﬁ ce []Ó 335 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02 IMPROVE WORKING CONDITIONS AND PRODUCTIVITY OF SMALL ENTERPRISES

Two components 1. Materials storage and handling – The storage 3. Productive machine safety – Machine safety is and handling of parts and products is an often taken for granted or ignored by managers • Training course for owner-managers (those who essential part of all production processes. and workers because it is seen as costly or make decisions) of small enterprises Done effi ciently, it ensures that work fl ows ineffi cient. However, using techniques such as • Action Manual - easy-to-follow book with simple smoothly and helps to avoid many delays modern feeding and ejection devices, it is often but powerful checklist, easy-to-apply ideas and and bottlenecks. Done poorly, it could lead possible to increase productivity while at the illustrations to damaged materials, higher capital costs same time eliminating accident risks. Where and accidents. Racks, carts and other low- machine guards must be used, they are not Follows 6 basic principles cost ways of storing and handling materials necessarily costly and they do not necessarily help recover misused space, reduce capital reduce productivity. 1. Build on local practice cost, simplify control of inventory, eliminate 2. Focus on achievements unnecessary operations and upgrade 4. Control of hazardous substances – Hazardous 3. Link working conditions with other overall factory or workplace orderliness and substances of any form can be found in almost management goals appearance. all small and medium enterprises. Exposure 4. Use learning by doing to many chemical substances causes fatigue, 5. Encourage exchange of experience 2. Work-station design – Most work is carried headache, dizziness and irritation of eyes and 6. Promote workers’ involvement out at work-stations where workers perform respiratory passages, which reduce productivity the same task hundreds of times a day. The and quality, and increase absences from work SUBJECT AREAS COVERED benefi ts from small improvements are therefore and turnover of workers. High levels of dust, multiplied many times. Awkward and strained oil, paints and other sprays etc. interfere with The WISE Manual and training programme provide work postures and movements mean lower effi cient operations, require extra inspection basic principles and many examples of simple, productivity, poorer quality of products as well and cleaning, and could spoil materials and inexpensive and practical improvements that as greater worker fatigue and body pains. fi nal products. Through simple and inexpensive have a direct impact on production facilities and Simple improvements such as jigs, fi xtures, ways it is possible to control most of these operation, workers’ health and safety, and their stable work surfaces, placing tools and problems. motivation and effi ciency. materials within easy reach of worker using them can have large benefi ts. 5. Lighting – Better lighting and related visual improvements very often increase productivity

International Labour Ofﬁ ce []Ó 336 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02 IMPROVE WORKING CONDITIONS AND PRODUCTIVITY OF SMALL ENTERPRISES

and reduce diffi culties and strain for workers. 8. Work organisation – Improvements in the way A training manual, Work Improvement in Small This is especially important for rapid or detailed production is organised and scheduled can Enterprises. Package for Trainers, is available from work or for quality products. Better lighting have a very large impact on both productivity the ILO for trainers who would like to organise and does not need to result in higher cost. Use of and motivation of workers. Techniques such conduct training courses and provide technical daylight and regular cleaning and maintenance as reorganising and combining tasks, setting assistance to local entrepreneurs and workers. It can improve lighting while reducing the up buffer stocks, introducing multi-skilling contains detailed guides, training materials and electricity bill. of workers, developing group work-stations, practical tips on how to set up successful WISE using product-based organisations have training courses, and how to manage and follow 6. Work-related welfare facilities and services numerous advantages. Among the advantages up workplace changes adopted by trainees in their – During the working day, workers need to is smoother and more effi cient workfl ow, higher respective enterprises. drink water or some beverage, eat meals and product quality, greater fl exibility, reduced snacks, and wash their hands, visit the toilet, downtime of expensive machines and reduced The Package for Trainers consists of the following and rest to recover from fatigue. Welfare need for supervision. modules: facilities are not a luxury. They are essential to higher productivity and they improve workers’ TRAINING COURSE Module 1: How to use this package health, moral, motivation, job satisfaction and Module 2: Outline of the training steps attendance. The WISE training course focuses on people who Module 3: Training steps make decisions in small enterprises, and builds on Module 4: Outline of WISE materials, and their 7. Work premises – most small enterprises are action at the workplace level. Through the training potential roles located in buildings that were not carefully course, the participants: Module 5: Training materials. designed for their current use. New equipment is often placed wherever there is the most • Identify potential improvements The training materials include the action checklist, space, which gradually results in a haphazard • Develop low-cost solutions based on local transparencies showing basic WISE technical layout. Much can be done even in old buildings experience rules; examples of low-cost improvements, action to improve ceilings, walls and fl oors. The • Apply solutions in the enterprises plan forms and follow-up result forms. impact of simple measures on ventilation, heat and pollution can be signifi cant.

International Labour Ofﬁ ce []Ó 337 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02 IMPROVE WORKING CONDITIONS AND PRODUCTIVITY OF SMALL ENTERPRISES

THE ACTION MANUAL 2. Basic principles and many examples of simple, RELEVANT RESOURCES inexpensive and practical improvements Trainees use the Action Manual during WISE 3. Procedure for systematic implementation • For more information about WISE in the training courses. of improvements especially those that are Philippines, contact: complicated and diffi cult. It also explains • Department of Labor and Employment (DOLE) But owner-managers can also use the Action how improvement can become a permanent • ILO Manila Manual by themselves. In this situation, it is best process in the enterprise. for owner-managers to work together so that they could get free advice, learn from each other how CROSS-REFERENCES same problems have been solved and, in general, ACKNOWLEDGEMENTS benefi t from the knowledge and experience of • Tool 4.04.01, Information Tool: Overview of the others. The contents of this tool were taken from the key elements of job quality following sources: • Tool 4.04.02.1, Action Tool: Simple, low-cost Contents • J.E. Thurman, A.E. Louzine and K. Kogi, Higher ways of improving working conditions in the productivity and a better place to work. Practical “informal sector” The Action Manual contains three parts: ideas for owners and managers of small and medium-sized industrial enterprises. Action 1. An easy-to-apply checklist: a tool for identifying Manual. (Geneva: ILO, 1988) http://www.ilo. improvements that can be made in the org/public/english/protection/condtrav/publ/wc- enterprise. It is designed to introduce the am-88.htm owner-manager to the technical subjects. The • International Labour Offi ce, WISE. Work checklist is introduced and applied during improvement in small enterprises. Package for WISE training courses. However, the checklist trainers. (Bangkok: ILO, 2004) is simple enough to be used by owners- http://www.ilo.org/public/english/protection/ managers by themselves. Owner-managers condtrav/workcond/workcond_pamphlets.htm can ask supervisors and workers to fi ll out the checklist and discuss with them their fi ndings.

International Labour Ofﬁ ce []Ó 338 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 ACTION TOOL

SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

OVERVIEW everyone – the worker and owner-operator, their OCCUPATIONAL HEALTH AND SAFETY Unsafe or poor working conditions are common families, the welfare of the community, the local HAZARDS IN THE INFORMAL ECONOMY in micro enterprises and home-based income- economy, and LGU resources. generating activities. These economic units make • Explains that innovative and simple means to The “informal economy” refers to “all economic up a very important part of the local economy. prevent occupational accidents, diseases and activities by workers and economic units that are – environmental hazards can be implemented in law or in practice – not covered or insufﬁ ciently OBJECTIVES with the introduction of simple and low cost covered by formal arrangements” (ILO 2002). This improvements in working practices, equipment consists of: This action tool is addressed to LGUs, local and tools. development practitioners, owner-operators of • Suggests two practical instruments that can • Productive activities and employment in micro enterprises and home-based workers. This be used by owners and operators of micro economic or production units that are mainly tool does 3 things: enterprises, own-account artisans, home- owned and operated by individuals, either based workers, community health workers alone or in partnership with members of the • Proposes an integrated approach to improving and development practitioners for identifying same household, and that employ one or more productivity, incomes as well as the health and introducing low-cost and simple ways of employees on a continuous basis in addition and safety and working conditions in micro improving working conditions: to the unpaid family worker and/or casual enterprises, own-account work, and home- – WISH - Work Improvement for Safe Home employee (commonly referred to as the informal based activities, which result in beneﬁ ts to – I-WEB - Improve your Working Environment sector, ILO 2000). Typically these units operate and Business on a small scale, with a low level of organisation and little or no division between labour and capital. They are engaged in the production and distribution of goods and services with the main objective of generating employment and income to the persons concerned.

International Labour Ofﬁ ce []Ó 339 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

• Other forms of informal employment, which long hours of work. Risks can be especially high Specifi cally, the LGU, local planners and may be in the formal or informal sector. These for pregnant women and their babies. Children development practitioners can support and include casual workers of formal enterprises and older people may also be at greater risk from facilitate the following actions: but who are not on declared payrolls of the some causes. company, and home workers who assemble • Building awareness of policy makers, municipal goods or make parts of products for a specifi c The most prevalent health problems are: authorities and labour inspection services in formal enterprise under subcontracting muscular-skeletal disorders and low back pain, building local institutional support arrangements. allergic reactions and other respiratory disorders, • Information and promotional activities to raise physical strain, fatigue and stress. Injuries with the awareness and modify attitudes of owner- Inadequate safety and health standards, poor tools are also frequent. operators and home-based workers with working conditions and environmental hazards are regards to occupational safety and health and especially notable in enterprises and businesses in NEED FOR AN INTEGRATED APPROACH working conditions the informal sector. • Introduction of measures for the improvement An integrated approach combines the goals of of working and living conditions and the For many owner-operators, their home is their health and safety, social protection, productivity reduction of accidents and diseases, and workplace. The distinction between working and and competitiveness, employment creation and combining this action with small entrepreneurial living conditions often becomes blurred. The protection of the environment. development services interaction between occupational hazards and • Training of owner-operators of micro enterprises poor living conditions can aggravate the health This approach calls for actions that effectively and home-based workers on how to improve problems of people working in informal, home- combine two groups of measures and services: the health and safety standards in their based economic activities. workplace, which will also improve their • Those that enable micro enterprises and home- productivity Some of the most prevalent hazards are: poor based workers to increase their income, and • Development of basic forms of access to health lighting, lack of ventilation, excessive heat, poor • Those that assist them in improving their care services, e.g. through mutual funds housekeeping, inadequate work space and working conditions and health contribute in • Incorporation of occupational health into public working tools, lack of protective equipment, a signifi cant way to higher productivity and health care services and community health exposure to hazardous chemicals and dusts, and enterprise growth. programmes at local level and training of health

International Labour Ofﬁ ce []Ó 340 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

care personnel in occupational health to enable and supervising home workers in their group concepts and approaches of two other ILO them to extend occupational health service. or their neighbours in practicing homework in resources – Improve Your Business (IYB) package, • Provision of basic sanitation, waste disposal, a safe and healthy way. The handbook gives and the Work Improvements in Small Enterprises access to potable water and basic infrastructure easy examples of good working conditions and (WISE) tools. • Establish link between fi rst aid and prevention environment. These measures result in benefi ts at workplace to home workers, their families, their friends and The I-WEB approach uses the adult learning • Pilot surveys in certain enterprise areas or community. process whereby participants draw lessons from clusters to identify specifi c hazards related to their businesses and their in-class experiences working and living conditions WISH was developed based on the WISE as they learn new ways of doing business and methodology and checklist (see Tool 4.04.02), and organising work. It combines self-diagnosis, WISH – WORK IMPROVEMENT FOR SAFE based on the experience of home-based workers structured learning exercises and back-home HOME in Thailand. application. This process enables the participants to refl ect on their business, learn from other WISH is meant for home-based economic units participants, provide their own solutions and and workers – work carried out inside the home. I-WEB – IMPROVE YOUR WORKING test out these solutions. At the end of a training Home-based workers may be owner-operators ENVIRONMENT AND YOUR BUSINESS programme, participants would have a set of of home-based economic units, own-account action plans which could be combined into a workers and home workers (they produce for The I-WEB approach was developed by the business plan. orders under subcontracting arrangements). International Labour Organization (ILO) to address some of the issues in the context of a business The I-WEB training package consists of two tools: WISH aims to help home-based workers remove training programme, with emphasis on those occupational hazards inside the home, and aspects of job quality that are directly related to I-WEB Manual - designed to be used in a learning improve the level of health and safety of the home productivity. process, which combines training, self-assessment as a workplace. and counselling. It is based on practical work and pilot tests in The WISH handbook is meant for trainees of and several countries in three continents. The fi rst This manual shows how to take simple, effective participants of the Home Work Safety programme. I-WEB manual was developed and tested in and low-cost actions which improves safety and The handbook serves to guide trainees in assisting the Philippines. It also draws from well-tested health at the workplace and at the same time

International Labour Ofﬁ ce []Ó 341 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

raises productivity. It encourages owners and operators to make concrete improvements. The I-WEB MANUAL Contents method is based on pilot studies, extensive ﬁ eld experience and careful analysis of real needs of Module One: The entrepreneur Module Four: Encouraging People to Produce informal, micro enterprises. How to improve yourself as an entrepreneur More What qualities and skills do you need to run How to recruit the right workers for the right I-WEB Training Guide – provides guidelines and your business? job session plans which make use of different learning Organising a network of micro-entrepreneurs How to motivate your workers methodologies. Planning to improve your business Module Five: Handling Finances in Your This guide explains how to organise and carry out Module Two: Sell by Knowing What Customers Business training designed to improve safety, health and Want Handling your money working conditions in the informal workplaces. The Know your customers Understanding your costs training approach is participatory, involving owners Know your competitors Recording your transactions and operators of the businesses or economic Strategies to attract customers Knowing the value of your business units, and emphasises voluntary participation in the implementation of concrete improvements, Module Three: Producing Goods at the Right Module Six: Practical Planning to Improve Your use of local examples and practical systematic Quality, Quantity and Reduce Cost Business activities in the workplaces of the participants, How to improve your production How planning can improve your business the establish of safety and health committees to How to handle raw materials How to prepare your business plan promote mutually supportive improvements and How to maximise use of tools and equipment the use of feedback on hazards for preventive Improving your work environment purposes in the form of a record keeping system.

International Labour Ofﬁ ce []Ó 342 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

RELEVANT RESOURCES • International Labour Offi ce (2002b): Decent WISH Handbook – Contents Work and the Informal Economy; Report of • ILO, Work Improvement for Safe Home, Bangkok, the Director-General; International Labour Introduction ILO, May 2003. (Original in Thai) http://www.ilo. Conference, 90th Session; Report VI; The Checklist org/public/english/region/asro/bangkok/library/ International Labour Offi ce, Geneva, 2002 Material handling and storage download/pub06-22.pdf http://www.ilo.org/public/english/standards/relm/ Working areas or workstations • ILO, I-WEB. Improve Your Work Environment and ilc/ilc90/pdf/rep-vi.pdf Machine and equipment safety Your Business for Micro-entrepreneurs. Action • International Labour Offi ce. WISE. Work Environment and worksite Manual. (Geneva: ILO) 2003. improvements in small enterrprises. Package Welfare and health promotion in workplace • ILO, I-WEB. Improve Your Work Environment and for trainers (Bangkok: ILO, 2004) and work organisation Your Business for Micro-entrepreneurs. Trainer’s http://www.ilo.org/public/english/protection/ Guide. (Geneva: ILO) 2003 condtrav/workcond/workcond_pamphlets.htm See Annex 4.04.02.1: WISH Checklist • V. Forestieri, Improvement of working conditions and environment in the informal sector through For more information on these resources, please safety and health measures, International Labour contact ILO Manila. Offi ce (2000): Resolution concerning statistics of employment in the informal sector, adopted CROSS-REFERENCES by the Fifteenth International Conference of Labour Statisticians (January 1993); in: Current • Tool 4.04.01, Information Tool: Overview of the International Recommendations on Labour key elements of job quality Statistics, 2000 Edition; International Labour • Tool 4.04.02, Action Tool: Improve working Offi ce, Geneva, 2000 conditions and productivity of small enterprises • Vanessa S. Sater and Marilou Renales, MD. • Tool 4.05.03, Information Tool: Gender equality Improving Working Conditions in the Informal helps local development and poverty reduction Sector, International Labour Offi ce, Manila, draft • Tool 4.05.03.1, Information Tool: Gender: the March 2002. http://www.ilo.org/dyn/infoecon/ challenges of women and work docs/110/F966605059/Ch6%20-%20OSH%20_ revised%2012%20mar_.pdf

International Labour Ofﬁ ce []Ó 343 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

ANNEX 4.04.02.1: WISH CHECKLIST

HOW TO USE THE CHECKLIST: 3. Make or use pallets to hold, handle or move raw materials, goods and products. 1. Read through the checklist and make sure you understand all items before Yes No Require improvemen by______starting the survey in the existing workplace. 2. Conduct a walk-thru survey of the workplace, following the checklist by 4. Put cupboards, racks, tables, etc, which need to be moved frequently on 2.1 Mark in at the item that is related to the workplace. wheels. 2.2 Mark in “Yes” when the item is likely to improve the condition of the Yes No Require improvemen by______workplace. 2.3 Mark in “No” when the item is not likely to improve the condition of 5. Use the carts, movable racks, slides or other mechanical aids when moving the workplace heavy loads. 2.4 Suggest an improvement by putting a mark in “Require improvement Yes No Require improvemen by______by” and put the description in the given blank. 3. Before ending the survey, ensure that all items in the checklist that related 6. Provide a clear, wide and smooth passageway for handling and moving raw to the workplace have been checked. materials or products. 4. Collect all the good items and improvement items to encourage the safety at Yes No Require improvemen by______homework. Working Areas or Working Stations THE CHECKLIST FOR WISH (WORK IMPROVEMENT FOR SAFE HOME) 7. Install the switches and control buttons at a convenient level and distance Materials Handling and Storage from the worker so that these are within easy reach. Yes No Require improvemen by______1. Clear everything out of the work area which is not in frequent use. Yes No Require improvemen by______8. Use lever, pulley or other mechanical tools to reduce the effort required by a worker to carry load. 2. Make or use convenient shelves or racks speciﬁ cally for keeping tools, raw Yes No Require improvemen by______materials, spare parts and products. Yes No Require improvemen by______

International Labour Ofﬁ ce []Ó 344 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

9. Use forceps, clamps or other tools to hold materials or items while work is 15. Use tools to push, pull, dig or scoop materials into machines in order to being done. prevent danger and increase productivity. Yes No Require improvemen by______ Yes No Require improvemen by______

10. Adjust the height of machine, equipment and workstations to an effective 16. Check machines and equipment prior to use, and make sure machines level to avoid bending postures or high-hand positions. are maintained properly and damage parts are repaired. Yes No Require improvemen by______ Yes No Require improvemen by______

11. Change working methods so that workers alternate standing and sitting 17. Give clear instructions on how to use the machine correctly, and post position while they work. these instructions in the worksites. Yes No Require improvemen by______ Yes No Require improvemen by______

12. Provide chairs or benches with suitable height and a sturdy backrest. Environment and Worksite Yes No Require improvemen by______18. Know how to use, stock and protect the danger from daily used chemicals. Machine and Equipment Safety Yes No Require improvemen by______

13. Put proper guards on moving parts, pinch points and sharp points of 19. Substitute harmful chemical with less harmful chemical; for example, machines, such as belt, power transmission, pulley, cutter, etc., to prevent use soap or detergent to wash hands instead of using a solvent or other harm on workers. chemical. Yes No Require improvemen by______ Yes No Require improvemen by______

14. Use safety devices and warning signs to stop the operation of machines 20. Keep the paint, glue and harmful chemicals such as thinner, benzene, when the parts of a worker’s body are in danger. pesticide etc. in closed or covered containers and in a safe place, away Yes No Require improvemen by______from the reach of children. Yes No Require improvemen by______

International Labour Ofﬁ ce []Ó 345 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

21. Know or provide safety information about chemicals that are used at work 28. Use natural light in full capacity for the workplace. – how to use them safely, protection from hazards, and fi rst-aid measures Yes No Require improvemen by______when users and others are exposed to the chemical. Yes No Require improvemen by______29. Paint walls white or in soft tone color, and keep the wall clean all the time. Yes No Require improvemen by______22. Label the chemical name on each bottle or container. Yes No Require improvemen by______30. Use a matt surface instead of shiny surface to reduce glare or refl ection. Yes No Require improvemen by______23. Workers who are exposed to chemicals must wash their hands with soap before they eat or drink, and take a bath and change clothes after fi nishing 31. Re-arrange the local light or use adjustable lamps especially for tasks that the job each day. require precision. Yes No Require improvemen by______ Yes No Require improvemen by______

24. Provide or use specifi c clothes for work especially when using harmful 32. Clean and maintain light fi xtures and replace bulbs regularly. chemicals, and wash these clothes separately. Yes No Require improvemen by______ Yes No Require improvemen by______33. Put a ceiling and insulator to block the heat from the roof and wall. 25. Provide or use appropriate and adequate personal protectors, such as Yes No Require improvemen by______safety glasses, face shield, respirators with chemical cartridges, boots and gloves etc. 34. Increase natural ventilation by putting more openings in the roof or wall, Yes No Require improvemen by______windows or open doorways. Yes No Require improvemen by______26. Know how to use and maintain the personal protectors correctly. Yes No Require improvemen by______35. Move sources of heat, noise, fume or chemical vapour out of the workplace and residence, or put a suffi cient shield around these sources. 27. Carry out a daily inspection of personal protectors. Yes No Require improvemen by______ Yes No Require improvemen by______

International Labour Ofﬁ ce []Ó 346 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.02.1 SIMPLE, LOW-COST WAYS OF IMPROVING WORKING CONDITIONS IN THE “INFORMAL SECTOR”

36. Provide enough ﬁ re extinguishers within easy reach and be sure workers 44. In cases where a group works in the same workplace, provide a locker know how to use them. where each one can keep their personal belongings. Yes No Require improvemen by______ Yes No Require improvemen by______

37. Provide at least two unobstructed exits such as doors and windows. 45. Provide ﬁ rst-aid equipment, medicines and trained ﬁ rst-aid personnel. Yes No Require improvemen by______ Yes No Require improvemen by______

38. Check that all electrical lines to be in good condition and safe all the time. 46. Use buffer stocks to keep the workﬂ ow constant. Yes No Require improvemen by______ Yes No Require improvemen by______

39. Eliminate frayed, irregular, entangled or octopus wiring connections. 47. Use quality circles or group work to improve productivity and quality. Yes No Require improvemen by______ Yes No Require improvemen by______

Welfare and health promotion in workplace and work organization 48. Rearrange the steps or order of the operations to improve effectiveness and ﬂ ow of production. 40. Set a reasonable working period and have a short break to relax or Yes No Require improvemen by______exercise. Yes No Require improvemen by______

41. Provide a supply of adequate fresh drinking water in workplace. Yes No Require improvemen by______

42. Have clean and hygienic toilets and bathrooms. Yes No Require improvemen by______

43. Provide a separate, comfortable and hygienic place for meal. Yes No Require improvemen by______

International Labour Ofﬁ ce []Ó 347 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.03 ACTION TOOL

HEALTH, SAFETY AND WORKING CONDITIONS IN AGRICULTURE

OVERVIEW APPROACH TO HEALTH AND SAFETY IN The high risks in agriculture may be aggravated by AGRICULTURE ﬁ ve factors: Occupational health and safety in agriculture is important for agricultural growth and productivity, OCCUPATIONAL HAZARDS IN AGRICULTURE 1. Health services in rural communities are and the well-being of rural workers and usually less well developed and have fewer communities. There is worldwide recognition that agriculture resources than health services in urban (together with mining and construction) is centres. OBJECTIVE particularly hazardous. 2. Rural communities are not well informed about health hazards or might take these risks This action tool: • High frequency and fatality rates of injury due as natural and part of their livelihood. to machines such as tractors and harvesters. 3. Poverty is often most acute in rural areas, and • Discusses an overview of occupational health Poisoning, death and, in certain cases, cancer incomes are often most subject to ﬂ uctuation, and safety hazards in agriculture due to exposure to pesticides and other resulting in poorer living conditions and less • Proposes that national level as well as local agrochemicals capacity to take preventive action. level actions are required to prevent and reduce • Allergies, respiratory disorders and lung 4. General situation of public health (water health and safety risks diseases, zoonotic infections and parasitic supply, sanitation, insects, endemic • Explains the WIND manual as a practical diseases due to multiple contact with animals, diseases, environmental pollution) might instrument that could be used by farmers and plants, poisonous animals and biological agents not be favourable to good working and living rural communities to improve health, safety and • Noise-induced hearing loss, musculoskeletal conditions working conditions in agriculture disorders (repetitive motion disorders, back 5. Climate disorders), stress and psychological disorders Working conditions will vary from area to area depending on working methods: from highly mechanised extensive methods in commercial plantations to traditional intensive methods in

International Labour Ofﬁ ce []Ó 348 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.03 HEALTH, SAFETY AND WORKING CONDITIONS IN AGRICULTURE

small-scale subsistence agriculture. Dependence This strategy should consist of actions at different • Incorporation of OSH diagnosis and prevention on weather changes to perform agricultural work levels. in primary health care services is an obstacle to more efﬁ cient operations and • Incorporation of OSH and working conditions may completely modify working conditions making AT THE NATIONAL LEVEL: awareness-raising and prevention in agricultural them more difﬁ cult and dangerous (for example, development projects rainstorm while harvesting, gust of wind during • National policy for the improvement of • Support to prevention of occupational accidents application of pesticides). occupational health and safety, working and and diseases in agriculture living conditions of rural workers • Protection of the environment The people who are most vulnerable to safety and • National legislation – appropriate, health risks are: farmers of family subsistence comprehensive OSH regulations WIND: WORK IMPROVEMENT IN agriculture, daily paid labourers in plantations, • Building of institutional capacity to develop NEIGHBOURHOOD DEVELOPMENT seasonal and migrant workers, and child workers. and implement OSH programmes, and support They are most vulnerable because most often promotional, and preventive measures WIND is a programme that promotes practical they lack information about Occupational Safety • Strengthening of the inspection services responses to the special problems of agricultural and Health (OSH) risks and prevention, are not • Strengthening of rural infrastructure and safety and health. The responses are simple and reached by health and OSH services, and are not support for development of rural income- inexpensive, directed especially for application by covered by any form of social protection. generating capacities small farmers.

NEED FOR AN INTEGRATED APPROACH AT THE LOCAL LEVEL: WIND builds on the well-tried methodology of WISE - “Work Improvement in Small Enterprises Occupational safety and health (OSH), working • Awareness raising, information and training of (Tool 4.04.02). Its approach is participatory and and living conditions in agriculture have to be farmers and agricultural workers in OSH and action-oriented – it relies on, and responds to, addressed with a well-deﬁ ned strategy and must working conditions farmers’ own initiatives, knowledge and resources. be integrated into the rural development policy • Training of health care workers and agricultural It addresses the needs of men and women covering both commercial agriculture and small- extension workers in OSH – how to evaluate together. scale farming. OSH and working conditions, diagnosis, safety measures WIND is based on seven years of experience in many provinces in Vietnam, and has been tested,

International Labour Ofﬁ ce []Ó 349 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.03 HEALTH, SAFETY AND WORKING CONDITIONS IN AGRICULTURE

translated and adapted in Thailand and the situation, and may perhaps lead to more ideas. Workstation design and work tools Philippines. The 42 checkpoints are grouped into six (6) subject areas: Farmers and their families also work inside their WIND MANUAL (VIETNAM VERSION) houses. They have to sort and pack agricultural Materials storage and handling products and also do cooking and other family The WIND Manual contains: tasks at home. Farmers need appropriate Farmers have to store and handle many kinds of workstations and work tools for these jobs. Well- • An Action Checklist materials. They are heavy and different in size and designed workstations prevent pains in the back, • Checkpoints and practical ideas on how to shape. neck, arms and legs, resulting in higher effi ciency. improve safety, health and working conditions in agricultural workplaces • Keep passageways clear and in good condition • Adjust the work height so that work is done at • Some examples for the movement of people and materials. elbow level or slightly lower than elbow level • Eliminate sudden height differences and holes • Provide stable chairs or benches with sturdy The Action Checklist is a simple but powerful on transport routes. backrests. guide to identify possible points for improvement • Construct wide enough and stable bridges over • Choose work method to alternate standing and in agricultural workplaces. It is recommended that canals. sitting, and to avoid bending and squatting the Checklist should be followed when carrying out • Use multi-level shelves and racks near the work postures as much as possible. a walk-through survey of selected workplace. area for storing materials, tools and products. • Put frequently use tools, switches and materials • Provide containers or baskets of appropriate within easy reach of farmers. The Manual has selected 42 checkpoints that are sizes and with good grips to carry materials and • Choose tools than can be operated with useful for improving safety, health and working farm products. minimum force. conditions, gives practical suggestions and • Use carts, boats, vehicles or animals to carry • Provide a home for each tool illustrates these with examples from Vietnam. heavy materials. • Use jigs, clamps or other fi xtures to hold items Special focus has been placed by the Manual on • Attach large enough wheels to carts and hand while work is being done. solutions that can easily be implemented even trucks to work effectively on fi eld routes. by farmers on small farms. WIND emphasises • Use roller conveyors or other mechanical learning from existing local good examples. The devices for moving or lifting heavy materials. suggestions may be adapted to your own local

International Labour Ofﬁ ce []Ó 350 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.03 HEALTH, SAFETY AND WORKING CONDITIONS IN AGRICULTURE

Machine safety • Use daylight and bright walls for lighting up the variety of nutritious foodstuffs. workplace. • Build clean, hygienic toilets and washing Farmers need to use many kinds of machines. • Avoid continuous exposure to excessive heat or facilities. They are useful but can also be dangerous. cold. • Provide resting corners and facilities for • Select safer pesticides and use the minimum recovery from fatigue. • Purchase safe machines and maintain them amount. • Use proper protective devices such as clothes, properly. • Keep pesticides, agro-chemicals and spraying boots, shoes, hats, helmets to protect from • Attach proper guards to dangerous moving devices in a safe and designated place. injuries or contact with hazardous substances. parts of machines. • Put labels on pesticides and agro-chemicals. • Provide ﬁ rst aid equipment. • Use appropriate feeding devices to avoid danger • Establish safe methods to treat bottles and cans • Take special care of pregnant women and and increase production. of used pesticides and chemicals. farmers with disabilities • Make the emergency controls clearly visible and • Collect safety and health information such as • Keep children safe and prevent them from attach local language labels to the controls and the safe use of agro-chemicals and disseminate having accidents or diseases. switches. the information to the community. • Ensure safe use of electricity for machines and • Be aware of animals, insects or worms that may Work organisation equipment. harm farmers. Work layout and working time Work environment and control of hazardous agents Welfare facilities • Organise a better work layout to reduce It is important to reduce exposure to strong Safe drinking water at the workplace, nutritious distance for carrying materials. sunlight and heat. Framers are also increasing food, hygienic toilets, short breaks and rest • Insert frequent short breaks during the working use of many kinds of agro-chemicals such as corners are basic necessities for healthy farm day. pesticides. Problems caused by agro-chemicals work. Pregnant women, farmers with disabilities • Take regular weekly breaks and longer holidays. can spread even to the community and and children need special attention. • Perform community jobs together. consumers of agricultural products. • Share family responsibilities to avoid • Provide adequate supply of drinking water and overburdening a particular member of the • Increase the use of natural ventilation to refreshment at the farm. family. improve indoor climate. • Ensure regular timing of meals and have a

International Labour Ofﬁ ce []Ó 351 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.04.03 HEALTH, SAFETY AND WORKING CONDITIONS IN AGRICULTURE

ACKNOWLEDGEMENTS RELEVANT RESOURCES CROSS-REFERENCES

Ton That Khai and Tsuyoshi Kawakami, Work • Valentina Forestieri, SafeWork, The ILO • Tool 4.04.01, Information Tool: Overview of the Improvement in Neighbourhood Development. Programme on Occupational Safety and Health key elements of job quality WIND Programme. Training Programme on Safety, in Agriculture, Geneva, ILO, October 1999. • Tool 4.04.02, Action Tool: Improve working Health and Working Conditions in Agriculture. http://www.ilo.org/public/english/protection/ conditions and productivity of small enterprises (Vietnam: Centre for Occupational Health and safework/agriculture/agrivf01.htm Environment, Department of Health, Can Tho City, Vietnam), 2003.

International Labour Ofﬁ ce []Ó 352 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

PART 4 SECTION FIVE: PROMOTING EQUALITY, RIGHTS AND VOICE

INTRODUCTION • Indigenous peoples, because they tend to There are many employment challenges at be marginalised and socially excluded from the local level, which are specifi c to the small Section Five of Part 4 deals with special issues development fi shing and small farming sectors, which are and concerns that affect the creation, preservation • Child labour, because of the extreme principal means of livelihoods in rural areas. and improvement of employment at the local level. vulnerability of children, and because child These challenges are often complex and call for labour perpetuates poverty integrated responses. Among these concerns are the distinct interests • Home-based workers, who tend to be invisible and circumstances of specifi c social groups in the to policy-making and development plans, society: perhaps because they are regarded as being within the “domestic, family” domain. A great • Women and their access to work, because of proportion of home-based workers are women the social differences between men and women and children. with respect to roles and access to resources

International Labour Ofﬁ ce []Ó 354 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.01 INFORMATION TOOL

FUNDAMENTAL RIGHTS AT WORK

OVERVIEW FUNDAMENTAL PRINCIPLES AND RIGHTS COLLECTIVE BARGAINING AT WORK: WHAT ARE THEY? Without fundamental human rights, people are not • A process that involves employers - or their able to pursue a decent life; they are powerless FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK: organisations - and trade unions or, in their and dependent on others; they cannot express absence, representatives freely designated by their interests and they cannot participate in the • Freedom of association and the effective workers. community. recognition of the right to collective bargaining • These representatives discuss and negotiate • Elimination of forced labour terms and conditions of work, with a view OBJECTIVE • Abolition of child labour to reaching collective agreements that are • Elimination of discrimination in employment acceptable to both sides. This tool: and occupation • Effective recognition of collective bargaining means that everyone should have access to • Discusses the link between human rights and FREEDOM OF ASSOCIATION collective bargaining. To achieve this, both fundamental rights at work employers and workers must make a ﬁ rm • Deﬁ nes fundamental principles and rights at • Means the right to form or join an association to commitment to fair representation of all the work promote or defend your occupational interests. interests and needs in the workplace. • Explains why they are called “fundamental” • This right applies to workers and to employers. • Freedom of association and the effective • Explains why rights are important for It applies to people working in the formal recognition of the right to collective bargaining development economy and the informal economy, and to are closely intertwined. Collective bargaining people working for wages and to the self- cannot take place without freedom of employed. association. • Both employers and workers should also be free to run their organisations without interference from the State, or one another.

International Labour Ofﬁ ce []Ó 355 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.01 FUNDAMENTAL RIGHTS AT WORK

FORCED OR COMPULSORY LABOUR labourer if the employer takes away identity • Minimum age of admission to employment papers, forbids her to go outside, or threatens depends on the type of occupation. • Refers to work or service that is exacted from beatings or non-payment of salary in case of • Abolishing child labour means stopping all work any person under the threat of penalty and for disobedience. by children that jeopardises their education which they have not entered into voluntarily. It and development. This entails abolishing, as a occurs where work or service is forced by the The elimination of forced labour means ensuring matter of immediate and urgent action, what State or individuals who have the will and power that a work relationship is chosen freely and is free are termed “the worst forms of child labour”; to punish workers with severe deprivations, from these threats. while for the other types a more gradual such as physical violence or sexual abuse; approach can be pursued. restricting peoples’ movements; withholding THE EFFECTIVE ABOLITION OF CHILD LABOUR wages; or imprisoning them or entangling them DISCRIMINATION IN EMPLOYMENT AND in debt relationships from which they cannot • Means ensuring that every girl and boy has the OCCUPATION escape. opportunity to develop physically and mentally • Forced labour takes many forms. Old forms to her or his full potential. • Means treating people differently and stubbornly persist along with contemporary • Children enjoy the same rights accorded to unfavourably because of their sex, or race or forms1. Irrespective of the differences, coercion all people, but because they lack the physical national extractions, social origin or religion, and restrictions on workers’ freedom are development of adults and the power to defend irrespective of their skills and competencies. common. their interests, children also have distinct rights • Discrimination can occur in formal and informal • Workers trapped in forced labour are not free to protection. work settings and can affect wageworkers, to quit their jobs. This is what distinguishes • Not all work performed by children under 18 as well as self-employed or unpaid family forced labour from other abusive types of work. is “child labour”. Light work that does not members. For example, a domestic worker may work for interfere with their education, or their physical, • Discrimination in employment and occupation an unbearable low wage and for excessively intellectual or moral development, can even be may be direct or indirect. It is direct when long hours, but this does not make her/him a beneﬁ cial for children. laws, rules or practices explicitly cite a speciﬁ c forced labourer. However, she or he is a forced ground, such as sex or religion, to deny equal

1The ILO has identiﬁ ed seven forms of forced labour: 1) slavery and abductions; 2) compulsory participation in public works projects; 3) forced labour in agriculture and remote rural areas; domestic workers in force labour situations; forced labour imposed by the military, forced labour in trafﬁ cking and persons and some aspects of prison labour and rehabilitation through work. See ILO: Stopping Forced Labour (ILO, Geneva, 2001)

International Labour Ofﬁ ce []Ó 356 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.01 FUNDAMENTAL RIGHTS AT WORK

treatment or opportunities. For instance if a Minimum Age to Work wife, but not a husband, is required to obtain 15 years 13 years 18 years 18 years her spouse’s consent to apply for a loan for ordinary work for light work for hazardous work for the worst forms of child labour or to obtain a passport in order to engage Underlying principle: Type of work which Type of employment It comprises: in an occupation, this amounts to direct is: or work which by discrimination. A child should go to its nature or the a) All forms of slavery or practices • Discrimination is indirect where rules or school till the a the a) Not likely to circumstances in similar to slavery, such as the sale practices seem neutral, but, in practice, lead age of completion be harmful to which it is carried and traffi cking of children, debt to the exclusion of people belonging to certain of compulsory their health or out is likely to bondage and serfdom and forced groups, or affect them disproportionately. For schooling development; jeopardise the or compulsory labour, including example, requiring applicants to be a certain and health, safety or forced or compulsory recruitment height - when such a requirement is not morals of young of children for use in armed necessary to perform the job in question - can b) Not such as to persons confl ict; exclude or limit considerably the access of prejudice their women and members of some ethnic groups to attendance at 16 years on b) The use, procuring or offering these occupations. school, their condition of a child for prostitution, for the participation that the health, production of pornography or for Eliminating discrimination at work means ensuring in vocational safety and morals of pornographic performances; that people are rewarded at work on the basis orientation the young persons of their merit and ability to do a job, and not or training concerned are fully c) The use, procuring or offering because of the colour of their skin or their sex. It programmes protected and that of a child for illicit activities, in also entails removing barriers and making sure approved by the young persons particular for the production and that all people enjoy equal access to training and the competent have received traffi cking of drugs as defi ned in education, to work as well as to productive assets, authority or adequate specifi c the relevant international treaties; such as land and credit, irrespective of their sex or their capacity instruction or ethnic origin. to benefi t from vocational training in the instruction the relevant branch received. of activity.

International Labour Ofﬁ ce []Ó 357 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.01 FUNDAMENTAL RIGHTS AT WORK

WHERE ARE THESE FUNDAMENTAL International Labour Conference. Individual are fundamental. The adoption of the Declaration PRINCIPLES AND RIGHTS AT WORK FOUND? member States then decide whether to ratify meant that these principles and rights were those Conventions. Once a country has ratifi ed and endorsed universally. Most of the ILO’s 177 These principles and rights are set out in the a Convention, it must ensure that its laws, member States have also ratifi ed these particular ILO’s eight fundamental Conventions (and regulations and practices conform to its provisions. Conventions. The Philippines, for example, has accompanying Recommendations). These are: By ratifying, governments also open themselves up ratifi ed seven of the eight Conventions. to regular scrutiny by the ILO, through its labour • Freedom of Association and Protection of standards supervisory machinery. The process that led to the Declaration began in the Right to Organise Convention, 1948 (No. 1995, at the United Nations World Summit on 87) and the Right to Organise and Collective These principles and rights are also embedded Social Development. The international community Bargaining Convention, 1949 (No.98) in the ILO Declaration on Fundamental Principles recognised, for the fi rst time, that combating • Forced Labour Convention, 1930 (No. 29) and and Rights at Work, adopted by the International poverty means paying attention to both the the Abolition of Forced Labour Convention, Labour Conference in June 1998. This Declaration quantity and the quality of jobs. The heads of State 1957 (No. 105) obliges all State members to promote, observe and government who gathered in Copenhagen for • Minimum Age Convention, 1973 (No. 138) and and realise the principles and rights set out in that Summit committed themselves to promote the Worst Forms of Child Labour Convention, the fundamental Conventions2 – whether or not employment-driven development policies. They 1999 (No.182) they have ratifi ed them. In turn, the Declaration also declared that ILO standards in four areas • Equal Remuneration Convention, 1951 calls on the ILO to support member States’ efforts. were fundamental and should be respected by all. (No.100) and the Discrimination (Employment The Declaration is a promotional instrument. It The ILO Declaration now covers those four areas. and Occupation) Convention, 1958, (No.111) complements, does not replace, ILO Conventions. These rights are also fundamental because they Each new Convention must be debated and WHY THESE PRINCIPLES AND RIGHTS ARE CALLED pave the way for other rights to be recognised adopted by the government, employer and “FUNDAMENTAL” and respected. There are other labour rights worker representatives from each of the ILO’s and related Conventions that contribute to the 177 member States – meeting at the annual There are a number of reasons why these achievement of decent work. These include the principles and rights and relevant Conventions right to a (living) minimum wage, to ensure that

2This obligation applies to all countries, regardless of their socio-economic development and poverty levels. This obligation derives from membership in the ILO. When joining the ILO, States adhere and endorse the fundamental values as enshrined in the ILO’s Constitution. This would be the case for the principles and rights embodied in Convention No. 29, which has not been ratiﬁ ed by the Philippines.

International Labour Ofﬁ ce []Ó 358 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.01 FUNDAMENTAL RIGHTS AT WORK

workers and their dependents can satisfy their • Adequate nutrition, health care, education, basic needs. The right to a healthy and hazard- decent work and protection against calamities Freedom from child labour – Child labour increases free working environment, to preserve the physical are not just development goals; they are also household income in the short run. But, in the integrity of workers, is also vital. Promoting human rights. long run, child labour undermines the pay and fundamental labour rights does not mean • The recognition that the poor have rights is working conditions of adult workers, spoils the dismissing the importance of other labour rights. the fi rst step towards their empowerment. future employment and life opportunities of today’s Fundamental principles and rights at work are also Their empowerment is necessary to help them working children, perpetuates household poverty tools, that shape the process by which conditions overcome the dependency, powerlessness, and slows down economic growth, as a result of of work, such as maximum working time or humiliation and voicelessness that keep them in lower human capital formation. minimum wages, are fi xed and enforced. poverty. • Rights, particularly fundamental rights at work, Freedom from forced labour – Forced labour WHY ARE RIGHTS IMPORTANT TO are means and ends to help people earn a undermines human capital accumulation, thus LOCAL DEVELOPMENT AND POVERTY decent living, appear in public without shame affecting the overall productivity of the economic ALLEVIATION? and live the type of life that they consider units in which it occurs, as well as the country’s meaningful. economic performance. • People do not have only basic needs to satisfy; • Labour rights, including fundamental or core they also have rights - entitlements that imply to labour rights, are human rights. Freedom from discrimination – Discrimination obligations of others towards them. limits the employment opportunities and choices • It is not enough to have laws that recognise EXAMPLES OF HOW FUNDAMENTAL RIGHTS of certain people because of well-entrenched rights. Government and the society should STRENGTHEN DEVELOPMENT ideas about what they are “good at” and “are make sure people enjoy these rights in their not good at”, irrespective of their actual talents daily life. Right to organise - By being able to organise, and aspirations. This is highly ineffi cient because • People without rights are more likely to be poor; pool resources and join forces, workers, whether it undermines the full realisation of people’s and people who are poor, often have few rights. working in large and formal enterprises or in potential and does not ensure that the best- Inequality in rights - whether economic, civil or informal economic undertakings, can negotiate qualifi ed people do the job. family - is a source of disadvantage and poverty. better deals with intermediaries, suppliers and buyers, thus stabilising and improving their earnings.

International Labour Ofﬁ ce []Ó 359 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.01 FUNDAMENTAL RIGHTS AT WORK

RELEVANT REFERENCES CROSS-REFERENCES

• ILO: Your Voice at Work, (ILO; Geneva, • Tool 1.02, Information Tool: The Decent Work 2000) http://www.ilo.org/dyn/declaris/ Framework DECLARATIONWEB.DOWNLOAD_BLOB?Var_ • Tool 4.05.03, Information Tool: Gender equality DocumentID=1921 helps local development and poverty reduction • ILO: Stopping Forced Labour, (ILO, Geneva • Tool 4.05.03.1, Information Tool: Gender: the 2001) http://www.ilo.org/dyn/declaris/ challenges of women and work DECLARATIONWEB.DOWNLOAD_BLOB?Var_ • Tool 4.05.04, Information Tool: Equality of DocumentID=1578 opportunities: issues affecting indigenous • ILO: A Future without Child Labour, peoples (Geneva, ILO 2002) http://www.ilo. • Tool 3.02, Information Tool: The added value of org/dyn/declaris/DECLARATIONWEB. social dialogue GLOBALREPORTDETAILS?var_ • Tool 3.02.1, Assessment Tool: Assessing local language=EN&var_PublicationsID=37&var_ social dialogue institutions and processes ReportType=Report • Tool 4.03.02, Information Tool: Relevance • ILO: Time for Equality at Work (Geneva, of “decent work” to local poverty reduction: ILO, 2003) http://www.ilo.org/dyn/declaris/ diagnosis and action DECLARATIONWEB.DOWNLOAD_BLOB?Var_ DocumentID=1558

International Labour Ofﬁ ce []Ó 360 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.02 INFORMATION TOOL

RELATION BETWEEN RIGHTS AT WORK AND POVERTY REDUCTION

OBJECTIVE FREEDOM OF ASSOCIATION AND THE EFFECTIVE Yet organising in the informal economy and RECOGNITION OF THE RIGHT TO EFFECTIVE in the rural sector is not easy. There are many This tool: COLLECTIVE BARGAINING obstacles. Workers are likely to be spread over a wide geographic area; they are often isolated; • Explains how the violation of rights at work Women, child labourers, persons with disabilities, and their economic activities and incomes are perpetuates poverty migrants and ethnic minorities are often subjected unpredictable. Meeting and taking action can • Discusses why strategies for the promotion to discrimination, exploitation and forced have a high “opportunity cost” too – it takes time of rights are necessary requisites for poverty labour. When working as small farmers or as that workers would otherwise spend on income- reduction sharecroppers or as home-based workers, they generating activities. face tremendous barriers in obtaining adequate ATTACKING POVERTY BY PROMOTING support from agricultural extension services or There can also be legal hurdles. In some FUNDAMENTAL RIGHTS AT WORK: SOME in getting access to credit, information or other countries, for instance, self-employed workers KEY ISSUES assets in order to increase their productivity and may be prohibited from joining or creating trade stabilise their incomes. unions. In some other cases, the law may allow People without rights are more likely to be poor. only the creation of enterprise-based trade unions People who are poor often have few rights. One of the main reasons why these people are and may require a high number of employees. so vulnerable to deprivation, poverty and abuse Fundamental principles and rights at work have a is their lack of “voice” and organisation. It is only Workers are often unaware of their rights, key role to play in ﬁ ghting poverty. when they join forces, pool their resources and especially those in casual or precarious and take collective action that they are able to make unprotected work. Many workers, who do know their voices heard – and bring about changes in their rights, still do not claim them, because of fear institutional policies, procedures and objectives. of retaliation or distrust in existing mechanisms of redress.

International Labour Ofﬁ ce []Ó 361 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.02 RELATION BETWEEN RIGHTS AT WORK AND POVERTY REDUCTION

Women face greater challenges in organising. over their earnings. This has had beneﬁ cial effects – who are then forced to use child labour to meet Women must reconcile paid work with unpaid for their well-being and that of their children and their families’ needs. It is a vicious cycle. domestic work, which still falls largely on their has improved women’s status in their family and shoulders. Experience shows, however, that the community. But poverty is not the only factor that explains women-only groups established for economic and the persistence of child labour. Traditions and social goals have been able to exert greater control For further guidance and tips on what could be cultural expectations play a part. In some cases, done at the local level to ensure a broad-based an employer may feel obliged to offer income- participation and social dialogue, see Tools 3.02, earning opportunities to poor families, including Some questions for discussion: 3.02.1 and 3.02.2. their children. In other instances, employers prefer to employ children because they believe they are 1. Can and do rural workers, including THE EFFECTIVE ABOLITION OF CHILD LABOUR more docile, and less able to claim and defend smallholder farmers, tenants, their rights, and cost less. Employers may also sharecroppers and landless labourers Child labour is both the consequence and cause believe children are more suitable for certain jobs. organise themselves to promote of poverty. Household poverty pushes children collectively their interests? If so, which into work to earn money to supplement family Discrimination on the basis of gender or ethnic forms of association do they take (e.g. income or even to survive1. This deprives children origin also plays a role in perpetuating child labour self-help groups, community-based of schooling and of the opportunity of acquiring and in the type of work children do. In some organisations, cooperatives, etc.)? skills and capabilities to obtain decent jobs when cases boys may be sent to work, while girls go to 2. Do trade unions or Employers’ adults. Because child labour keeps children out of school, because more jobs are available for boys. association reach out to smallholder school and sometimes causes lifelong physical or Yet, in other instances, girls may be deprived of farmers, tenants, sharecroppers and psychological damage – it perpetuates household education altogether. Sometimes this is because landless labourers? If not, why is it so? poverty across generations. This, in turn, slows the family believes their schooling will not bring 3. Are some people excluded from the down economic growth and social progress. On beneﬁ ts, or because schools are far away. Child above associations (e.g. migrants, the other hand, child labour pushes down wages labourers do different work according to their youth, women)? Why? and other working conditions for adult workers gender or ethnic origin. Generally, the lower the 4. Do product buyers or suppliers social status of the group the child belongs to, recognise these entities as interlocutors? the lower his or her position in the child labour 1 Child labour is estimated to account for about 20 percent of the market. household’s incomes, worldwide.

International Labour Ofﬁ ce []Ó 362 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.02 RELATION BETWEEN RIGHTS AT WORK AND POVERTY REDUCTION

Lack of adequate social protection and THE ELIMINATION OF FORCED LABOUR Debt bondage often traps entire families in forced educational opportunity also come into play. labour. Although the man is the one who contracts Child labour is more likely to occur when there Forced labour often has its roots in landlessness, the debt, the woman may have to provide free are no schools or no regular teachers, or when poverty, discrimination and the ineffi cient domestic services to the landlord, as part of the the school curriculum is out of date, irrelevant to functioning of labour market institutions. When “deal” and the daughters may help them. Debt contemporary needs and gender-biased. legal employment services either do not exist or may be passed on from one generation to another do not function, and labour inspection services or from husband to wife. are under resourced and corrupt – people are Some questions for discussion: more likely to be caught by illegal recruitment systems. These systems are often very effective, Some questions for discussion: 1. Are girls and boys of school age (i.e. and eventually deliver people into forced labour below 15 years) working on family farms situations. Is there evidence of: to the detriment of their education (long 1. Bonded labour - the tying of workers hours, arduous tasks, periods of absence Certain groups - such as women, ethnic or racial or tenants and their family members during harvest, etc.)? minorities, migrants, children and, above all, the to landowners due to outstanding 2. Are children under age of 18 years poor- are particularly vulnerable to various types of debt? involved in the handling or use of any forced labour. In the agricultural sector, coercive 2. Abusive recruitment and employment hazardous materials or farm equipment? recruitment systems and debt bondage are the practices or the traffi cking of adults 3. Any evidence of internal or cross-border most common forms of forced labour. Agricultural or children for their exploitation by traffi cking of children for the purposes of workers can be pushed into debt traps through means of deceit, coercion or debt? farm labour, either seasonal or long term advances made by recruiting and transporting 3. Use of physical violence or the threat (blatant or disguised as family labour)? agents, who are often independent contractors of violence (especially against women 4. Are good and affordable schools supplying a labour force for landowners. Physical and children) to engender fear and available and accessible to both boys restraint and force is often used against these rural keep workers in place? and girls children of rural households? workers. Sometimes debts are run up to pay for 4. Abuse of customary labour practices 5. How many households do rely on dowries, weddings, funerals and other ceremonies that amount to forced labour? incomes earned or produced by – and have to be paid off by cultivating crops. children?

International Labour Ofﬁ ce []Ó 363 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.02 RELATION BETWEEN RIGHTS AT WORK AND POVERTY REDUCTION

THE ELIMINATION OF DISCRIMINATION AT WORK exposed to all sorts of abuses and deprivations, The low value assigned to skills and occupations especially in countries in which the primary, if that are typically female or associated with Discrimination in employment and occupation not exclusive, role of women is that of wives or indigenous and tribal people results in low pay restricts the access of speciﬁ c groups to decent mothers. Women with disabilities are deemed and discrimination in remuneration. Preconceived work. This increases the risk of being powerless “unworthy of marriage”, and seen as a burden ideas about which occupations are more and vulnerable in the face of poverty. Poverty to the family. They are denied any education or “suitable” for women and the perception of further reinforces discrimination at work. Poor vocational training, (often in any case unsuited to women workers as “helping the family budgets” people have fewer opportunities to acquire their needs), and deprived of work, health services limit women’s access to well-paid jobs. In a and maintain the skills that the labour market and assistance. context of rising female headship, access to demands. In multi-ethnic societies, whenever decent paid work is essential for the well-being of inequalities in education, health, incomes and job Disadvantage tends to be cumulative over people’s women and their children, and keeping them out opportunities are profound, declines in poverty lifecycle. Inequality in rights - whether economic, of poverty. tend to bypass members of groups who are civil or family - is a source of disadvantage and subject to discrimination. This undermines the poverty. For further guidance and tips on what could be sustainability of growth and development of the done at the local level to combat discriminatory country as a whole. The unequal status of women in marriage and practices and reduce vulnerabilities, see Tools inheritance, for example, limits women’s ability to 4.05.03 and 4.05.03.1 on gender equality and Women, children, members of indigenous engage in gainful activities. The refusal to allow women’s work, and Tool 4.05.04 on indigenous peoples, people with disabilities, and people living women to inherit or own land impinges upon their peoples. with HIV/AIDS face discrimination at work and are ability to work as farmers; it also limits their access over-represented among the poor. Unemployment to credit and cooperative membership, as often is much higher among them compared to other both require landownership. social groups and, when employed, they are often given low-paid, low-skilled and menial jobs. The unequal distribution of land, credit and The people most vulnerable to chronic poverty other assets along ethnic lines narrows the range are often those experiencing discrimination on of occupations available to indigenous or tribal multiple grounds (i.e. race, sex, disability, HIV/ peoples and often pushes them into exploitative AIDS). For example, women with disabilities are work, including forced labour.

International Labour Ofﬁ ce []Ó 364 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.02 RELATION BETWEEN RIGHTS AT WORK AND POVERTY REDUCTION

A HUMAN-RIGHTS-BASED APPROACH TO their own destinies. It also means making Some questions for discussion: DEVELOPMENT sure that development decisions, policies and initiatives don’t reinforce existing imbalances in 1. Do women and men do different jobs? Elements of a human-rights based approach: power between, for example, women and men, Whose jobs are better paid? Why? landowners and peasants, and workers and 2. Do women and men have equal access Clear references to rights... as expressed in employers; to and control over resources (land, international standards; credit, proceeds of crop sales)? A high degree of participation… There are serious 3. Do women and men share workloads Accountability… States, local organisations and efforts to ensure that everyone can take part equally within the household? authorities, private companies, aid donors and in the development process, at every stage. 4. Are any groups of people excluded international institutions recognise that they Communities, civil society, minorities, indigenous directly or indirectly from new are accountable to individuals and groups that people, women – and others – should be involved, opportunities (e.g. training, special hold rights. Achieving this accountability means from start to ﬁ nish. The development process schemes, new varieties or inputs) adopting laws, policies, institutions, administrative usually begins by setting priorities for local because of their age, sex/gender, procedures and practices that ensure that people development, moves to formulating strategies, domestic responsibilities, and enjoy these rights. It also means creating effective allocating resources, and ﬁ nally, implementing and education levels? mechanisms to receive and redress complaints monitoring development programs. when people believe those rights have been violated;

People are empowered… Human rights-based development approaches recognise that people are the owners of rights – and they direct their own lives, and development. This means giving the power and capabilities to change their own lives, improve their own communities and inﬂ uence

International Labour Ofﬁ ce []Ó 365 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.02 RELATION BETWEEN RIGHTS AT WORK AND POVERTY REDUCTION

RELEVANT REFERENCES CROSS-REFERENCES

• ILO: Your Voice at Work, (ILO; Geneva, • Tool 1.02, Information Tool: The Decent Work 2000) http://www.ilo.org/dyn/declaris/ Framework DECLARATIONWEB.DOWNLOAD_BLOB?Var_ • Tool 4.05.03, Information Tool: Gender equality DocumentID=1921 helps local development and poverty reduction • ILO: Stopping Forced Labour, (ILO, Geneva • Tool 4.05.03.1, Information Tool: Gender: the 2001) http://www.ilo.org/dyn/declaris/ challenges of women and work DECLARATIONWEB.DOWNLOAD_BLOB?Var_ • Tool 4.05.04, Information Tool: Equality of DocumentID=1578 opportunities issues affecting indigenous • ILO: A Future without Child Labour, peoples (Geneva, ILO 2002) http://www.ilo. • Tool 3.02, Information Tool: The added value of org/dyn/declaris/DECLARATIONWEB. social dialogue GLOBALREPORTDETAILS?var_ • Tool 3.02.1, Assessment Tool: Assessing local language=EN&var_PublicationsID=37&var_ social dialogue institutions and processes ReportType=Report • Tool 4.03.02, Information Tool: Relevance • ILO: Time for Equality at Work (Geneva, of “decent work” to local poverty reduction: ILO, 2003) http://www.ilo.org/dyn/declaris/ diagnosis and action DECLARATIONWEB.DOWNLOAD_BLOB?Var_ DocumentID=1558

International Labour Ofﬁ ce []Ó 366 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03 INFORMATION TOOL

GENDER EQUALITY HELPS LOCAL DEVELOPMENT AND POVERTY REDUCTION

OVERVIEW in the local community, formulating local plans If we are not careful, development plans and and strategies, and choosing and designing actions could create more problems and widen the The word “gender” refers to the social differences development projects. inequalities between girls and boys, women and between women and men, or between girls and men, instead of promoting equality. boys. ADVANTAGES OF INTEGRATING GENDER IN SOCIAL DIFFERENCES BETWEEN WOMEN AND MEN Women and men, girls and boys have different LOCAL DEVELOPMENT roles and situations in the community, and Men and women, boys and girls in the community therefore have different needs, interests and Local planners, decision-makers and development have different needs, interests and problems problems. Moreover, they are not always equal in practitioners who apply a gender perspective in because of the following differences: education, employment, assets, and other matters. needs assessment, problem diagnosis, planning Ignoring these differences could sometimes lead and implementation of programmes improve their • They perform different roles, responsibilities to failure in development programmes or could effectiveness to respond properly to the multiple and tasks in the family and community mean negative impact on one group. and different needs of the whole population, • They do not have the same ability or right to especially those who live in poverty. obtain or use resources like land, capital, skills OBJECTIVE Very often, local planners and decision-makers training, agricultural extension services, etc. know men’s concerns well because men tend to • Men tend to be concentrated in certain This information tool: be the most vocal and articulate in community livelihoods, trades and occupations, while public affairs, or because their roles and women are concentrated in others • Discusses an overview of the “social occupations in the community are the most • Their level of effective participation in decision- differences” between women and men, or visible. These needs are not always shared by making within the family and the community between girls and boys women, so one must carefully and deliberately may be different • Explains why it is important to understand these examine women’s situations and concerns. social differences and inequalities, and to take these into account when analysing problems

International Labour Ofﬁ ce []Ó 367 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03 GENDER EQUALITY HELPS LOCAL DEVELOPMENT AND POVERTY REDUCTION

COMMON INEQUALITIES FACING GIRLS AND WOMEN their economic opportunities, choices and obtaining other complementary resources and livelihood strategies. services. • Young women usually face more obstacles to enjoying the benefi ts of technical skills training Women face specifi c risks to falling into poverty Households pool the income of their members than young men and face constraints to breaking out of it and share benefi ts from this in different ways. One • Girls are trained in homemaking, sewing and independently because women are heavily loaded cannot assume that pooled earnings, food and other “soft” feminine trades even if there is no with care-giving and household work and because social assistance are not shared equally among job opportunities for these women usually do not have the same access to members and will be used for each one’s well- • Women farmers receive less assistance from and control over resources as men. Once poor, being. For example, many studies have observed agricultural extension workers than men farmers women have fewer options for escaping poverty. that income controlled by mothers tend to lead • Women tend to be employed in low-paying, to better child health and survival than income low-skilled factory jobs while men tend to be Programmes aimed at generating new job and controlled by fathers. engaged in higher-paying, better skilled and income-earning opportunities for the poor are supervisory positions likely to have unequal effects on men and women: Women might be compelled to invest in family business or in children identifying their interest A GENDER PERSPECTIVE HELPS US • Men will tend to benefi t fi rst because they enjoy with those of family members, thereby leaving EFFECTIVELY FIGHT POVERTY a better access to resources, less domestic themselves vulnerable in the event of family workload, and overall mobility in the public breakdown. An analysis of the social differences and sphere. inequalities between men and women, boys and • Where women do take advantage of the new Programmes and measures aimed at raising the girls, will strengthen our understanding of poverty. opportunities, it may be at the cost of intensifi ed incomes of the poor will benefi t poor women only Poor men and poor women face similar hardships workloads for themselves or reduced care given if efforts are made to address their disadvantages and challenges to breaking out of poverty. But at to children and family. Poor women are most in the sexual division of labour at home and in the same time, they face different obstacles on likely to combine wage work, income-replacing the labour and product markets. Raising girls and account of the differences mentioned above. activities and domestic chores. women’s level of education, health, income and • Women might be unable to effectively mobilise overall participation in the economic and political The differences among individuals with respect resources they control due to childcare and life of communities have become widely regarded to access to and control over resources infl uence household tasks or due to constraints in as the means to reducing poverty.

International Labour Ofﬁ ce []Ó 368 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03 GENDER EQUALITY HELPS LOCAL DEVELOPMENT AND POVERTY REDUCTION

WHAT IS THE GENDER PERSPECTIVE? play multiple roles – reproductive, productive and tasks are mainly in the public and remunerative community management. Men are able to focus (income-earning) spheres. Sex: biological differences between men and on a single productive role, and play their multiple women; these are universal, independent of roles one after the other. In contrast, women are Girls and boys are generally prepared to take over culture. obliged to play their roles at the same time and to these roles as adults. juggle and combine competing demands on their Gender: social differences between men and time. Beliefs and stereotypes of masculine and feminine women that are learned, can change through roles often persist even while they no longer reﬂ ect time, and vary widely between and within cultures. Women: Historically and traditionally, women have changes in reality. These differences exist with respect to roles and been assigned the primary responsibility for taking responsibilities in the family and community, care of the household (e.g. food preparation, In the Philippines, as in many other developing rights, access to and control over income and cleaning), rearing of children, and care for the countries, young women and men alike value and resources, and extent of participation in decision- elderly and the sick. As an extension of their care- seek paid work, to be economically independent making in the family and larger community. giving role, women are conventionally called upon and/or to help care for their parents and younger Gender roles and relationships are affected in communities to help with activities related to siblings. It is not unusual for mothers to look for by age, income class, race, ethnicity, religion health care, education and overall social welfare of paid work and combine this with household work and other ideologies, and by the geographical, the local community. Women’s role in productive and childcare in spite of the heavy burden, for economic and political environment. Changes in activities is one of helper and secondary various reasons – because the husbands’ income gender roles often occur in response to changing breadwinner. As an extension of their household is not enough to meet family needs, because they economic, natural and political circumstances. tasks, women often engage in household- are single parents, because they are the primary There are three main elements in the gender based production for home consumption (e.g. breadwinner or because they wish to have a perspective. vegetable gardening, poultry-raising) or small and degree of economic independence. In time of subsistence home-based production of goods (e.g. economic hardships, household members who DIVISION OF LABOUR: ROLES AND TASKS THAT MEN sewing, basket-weaving). have not conventionally worked (children and AND WOMEN PERFORM married or older women) are often forced to ﬁ nd Men: Traditionally, they have been assigned the paid work. This refers to the responsibilities and tasks that primary responsibility for productive work and are assigned to one sex or the other. Both sexes earning a living for the family. Therefore, men’s

International Labour Ofﬁ ce []Ó 369 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03 GENDER EQUALITY HELPS LOCAL DEVELOPMENT AND POVERTY REDUCTION

DISTRIBUTION OF ACCESS AND CONTROL OVER Social norms and values, law and rules of MAKE GENDER ANALYSIS A PART OF NEEDS RESOURCES AND BENEFITS institutions (family, the State, markets) govern ASSESSMENT AND PROBLEM DIAGNOSIS or regulate people’s access to and control over Resources are those which people need in order resources. Oftentimes, these norms, rules and laws AVOID THESE MOST COMMON FALSE ASSUMPTIONS to carry out their activities and responsibilities, to entitle people to resources differently, and often or make their livelihood and to develop themselves. sometimes unequally, on the basis of their sex and 1. Heads of households are men These include land, fi nancial capital and credit other grounds such as age, civil status and so on. 2. Breadwinners are men services, education and training, labour time of 3. Families always consist of a couple and their other members of the household, transportation, DIFFERENT NEEDS AND INTERESTS children. For example, some are extended water, health and family planning services, families; some consist of a single parent and information and market facilities. Although male and female members of a family, a children. tribe, a community or a town might have common 4. Those responsible for the care of household Benefi ts are anything that accrues to people, needs and interests, they also have distinctly and children are women such as income earned from a job or business, different needs and interests as a result of the 5. Increasing the income of household heads crops cultivated or chickens raised for family sexual division of labour and the differential access automatically improves the welfare and well- consumption or for sale, prestige, recognition and to and control over resources. being of female members of the household power. 6. Women’s interests are the same as those of Some of these needs will pertain immediately their husbands or fathers The access to and control over these resources and and/or directly to survival and physical welfare of 7. Men and women will respond to development benefi ts are distributed differently between men the individual or family (“practical needs” such as projects in their community in the same way and women of the same household and community. potable water, primary health care clinic, shelter). TIPS FOR MAINSTREAMING GENDER AND GENDER Having access to resources means being able to Other needs are about reducing inequalities EQUALITY obtain and use resources. between men and women in access to resources, inequalities in access to decision-making and better The development planner and practitioner must Having control over resources means having actual sharing of tasks and responsibilities, which in the undertake systematic efforts to identify the infl uence over how resources and benefi ts will be long-term improve the capacity of individuals to different roles and needs of men and women used. raise the quality of life (“strategic needs”). in a given social context, and to develop and

International Labour Ofﬁ ce []Ó 370 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03 GENDER EQUALITY HELPS LOCAL DEVELOPMENT AND POVERTY REDUCTION

implement concrete measures to promote equality looking only at monetary value) of activities of opportunity and treatment between men and performed by boys, girls, men and women. women, boys and girls. • Collect and analyse information on inequalities and constraints with respect to access to • Ensure that gender and gender equality are resources (rights, ability to own, purchase and considered at the earliest stage of planning and use) that are necessary for livelihood and work. policy making. • Identify inequalities and constraints with respect • Ensure that women and their organisations to control over resources (decision over use of and representatives are able to participate in resources, decision over income and beneﬁ ts planning, implementation and evaluation of emanating from resource). programmes. Do not limit women’s participation • Identify immediate survival needs and long- in matters concerning health, nutrition, family term needs of men and women, and the planning and education. Matters concerning opportunities and constraints to meeting these the economic development of the community, needs. Opportunities and constraints may such as infrastructure, agriculture, water and arise from the natural environment, norms and irrigation and employment, also concern them. values, legislation, institutional arrangements in • Collect and analyse information on the different the town, province and beyond, and so on. roles and activities of boys, girls, men and women at home, in unpaid and paid productive ASSESS WHETHER YOUR LOCAL PLANS AND work, and in the community; determine their PROGRAMMES ARE SENSITIVE TO GENDER ISSUES workload (hours devoted to activities daily, take AND EQUALITY into account seasonal patterns). There may be different patterns depending on the main Here is a list of questions that the development livelihoods, age and sex composition, life cycle, planner and practitioner can use to assess the income class, and ethnicity of the household. local plan or project. • Appreciate the social value (contribution to family and community welfare, in contrast to

International Labour Ofﬁ ce []Ó 371 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03 GENDER EQUALITY HELPS LOCAL DEVELOPMENT AND POVERTY REDUCTION

Assessing Gender in Local Plans and Projects: Questions to answer 2.3 Will it give undue advantage to one group performing certain economic activities? 1. Which needs in the local community are being addressed by the plan or 2.4 Other effects? project? 2.5 What changes or measures should be adopted in order to respond to the needs of the poor, and equally to poor men and poor 1.1 Which needs and whose needs are being met? women? Which needs of women/girls; which needs of men/boys? 1.2 Whose needs are being ignored? 3. What is the likely (or actual) effect of local plans or programmes on 1.3 Which needs of women/girls: which needs of men/boys? resources? 1.4 Are the needs of poor women and/or poor men being met? 1.5 Specify who among the poor. 3.1 Will it improve access to resources? Specify which group will How can the plan or programme be improved or revised so as to beneﬁ t? Are they poor men or poor women or both? respond better to the needs of the poor and to equitably to gender- 3.2 Will it widen or reinforce inequalities between men and women? different needs? 3.3 Does it ignore differences in entitlements and rights to resources, and give undue advantage to one group that has better access or 2. What is likely (or actual) effect of the local or programme on the possess more resources? activities performed by boys, girls, men and women? 4. Using the results of a gender analysis, what is the likelihood that the 2.1 Will it increase the workload of one while reducing the workload of local plan or programme will achieve its objectives? Are these based the other? on false assumptions about men and women’s roles and resources? 2.2 Will it change their opportunities to obtain remuneration or paid productive work?

International Labour Ofﬁ ce []Ó 372 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03 GENDER EQUALITY HELPS LOCAL DEVELOPMENT AND POVERTY REDUCTION

RELEVANT RESOURCES CROSS-REFERENCES

• Gender Issues in the World of Work. Brieﬁ ng • Tool 1.02, Information Tool: The Decent Work Kit. (Geneva: ILO) 1995. http://www-ilo-mirror. Framework cornell.edu/public/english/region/asro/mdtmanila/ • Tool 4.05.01, Information Tool: Fundamental training/unit2/asiamign.htm rights at work • Gender, Poverty and Employment. Reader’s Kit. • Tool 4.05.03.1, Information Tool: Gender: the (Geneva: ILO) 2000. http://www.ilo.org/public/ challenges of women and work. english/employment/skills/informal/gpe/informa/ pack/index.htm • Good practices: Gender mainstreaming in actions against child labour (Geneva: IPEC, ILO) 2002. http://www.ilo.org/public/english/standards/ipec/ publ/gender/mainstreaming.pdf • International Labour Standards - Conventions ratiﬁ ed by the Philippine Government: - Convention Number 100: Equal Remuneration Convention (1951) http:// www.ilo.org/ilolex/cgi-lex/convde.pl?C100 - Convention Number 111: Discrimination (Employment and Occupation) Convention (1958) http://www.ilo.org/ ilolex/cgi-lex/convde.pl?C111 - Convention Number 118: Equality of Treatment (Social Security) Convention (1962) http://www.ilo.org/ilolex/cgi-lex/ convde.pl?C118

International Labour Ofﬁ ce []Ó 373 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03.1 INFORMATION TOOL

GENDER: THE CHALLENGES OF WOMEN AND WORK

OVERVIEW WOMEN’S WORKLOAD IS NOT THE SAME cleaning); hours devoted to food production AS MEN’S and other productive work (anything that results The ways to improve employment levels and in goods that can be consumed directly by incomes of people will not always be the same Programmes aimed at engaging women in the household or sold); and hours spent on for men and for women. Women and men face income-generating activities are sometimes based community work. distinctly different challenges. The division of on the assumption that housewives and mothers • There will be variations among women labour and differences in resources between men have “idle” or “unproductive” time to spare. Is this depending on the size and composition of and women inﬂ uence the nature of their work and true? the household - the number of adult men, opportunities for gainful employment. women and children, their ages, and so on. When designing strategies for improving women For example, households that consist of several OBJECTIVE and men’s employment opportunities, it is adult women will be able to spread “women’s important to obtain a true picture of their workload tasks”: the grandmother might look after the This information tool discusses the distinct inside and outside the home: identify the tasks children or a daughter-in-law might take care of challenges that inﬂ uence women’s work and their women and men do in a representative sample of housework while another adult woman engages ability to engage in productive and remunerative households, and tally the number of hours per day in paid work outside the house; or older girls employment, in order to guide local planners and (could vary by season) they spend on these tasks. might spend less time in homework or schooling decision-makers, development practitioners and in order to take up some of the tasks of the lone implementers of employment and anti-poverty Such analysis will show that, in most cases: adult woman. programmes. • Women in better-off households might choose • Adult female members work longer hours to hire someone to help with household tasks than their male counterparts – hours doing while they devote more hours to productive and childcare and care of other members; hours paid work. doing housework (food preparation, laundry,

International Labour Ofﬁ ce []Ó 374 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03.1 GENDER: THE CHALLENGES OF WOMEN AND WORK

POINTERS FOR DESIGNING STRATEGIES AND unless complementary measures deal with these premises, it is usually unpaid and thus eludes ACTIONS concerns. Heavy female burdens and child quantifi cation, and is interpreted as an extension poverty (infant and child mortality, under-nutrition, of their normal household tasks. Domestic chores, childcare, caring for the family under-schooling) tend to go hand in hand. and household-based unpaid productive work Common examples of women’s unpaid productive hinder women’s ability to freely dispose of their Three possible negative effects to be anticipated work at home are: raising chickens and pigs, own labour. Men are better able to seize new and avoided: and cultivating vegetables for food and/or for income-earning opportunities than women, sale. In rural farming households, men are often because they are more mobile, less bound to 1. Doubling or tripling women’s workload at the regarded as the primary agricultural producer household care obligations, and have more cost of her health and relative autonomy while women (and their children) are viewed as access to resources and public networks. To 2. Obliging women to reduce childcare and care helpers even if the latter perform equally important enable women to benefi t more actively from of the sick or elderly, without alternative care tasks in the farming cycle. For example, women income-earning opportunities, there is need for arrangements and children primarily do the weeding and complementary measures aimed at reducing 3. Encouraging men to transfer non-cash earning fertilising in sugarcane farms while men do the women’s time that is devoted to childcare and activities (productive and non-productive) to land preparation and harvesting. Yet, men are the housework, such as community childcare their wives, daughters or sisters in order to primary target group of employment programmes services, family planning and population control, take up cash paid work (skills, technology) while women are the primary changing men’s attitudes towards doing domestic target of health, education, social welfare chores, and facilities that lessen time to collect WOMEN’S PRODUCTIVE WORK programmes and micro-business. water and fi rewood for cooking and washing. Productive work is an activity that results in goods Women’s income-earning activities outside Work burdens will tend to be heaviest for women that are consumed or services that are used the house are concentrated in micro-business of poorest households, especially those with directly by the household or sold in the market. It activities like making and selling small quantities many young children. A woman would participate may be paid or unpaid. of dried or processed food, doing laundry and more intensively in wage or market work outside housework for other households, small crafts the home under the pressure of poverty, but this Women’s productive work, although critical to daily like mats and baskets, dressmaking, and buying will be at the cost of a heavier burden on herself family survival, tends to be “invisible” to the public and selling. Because of the scale, informality and and/or poorer welfare of her younger children eye because most of it is performed within home irregularity of these economic activities, there is

International Labour Ofﬁ ce []Ó 375 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03.1 GENDER: THE CHALLENGES OF WOMEN AND WORK

a tendency to assign them lesser value than the products) available to women’s activities? Raise Subcontracted homework provides women the value on men’s activities, and to minimise the the cost of raw materials women use? Cut access opportunities to combine income-earning work importance of women’s productive work to the to important markets? Compete with women’s with childcare and housework. But homework family. produce in the market? Will the programme favour has its share of risks and problems – for example: men’s access to employment and markets at non-payment or delayed payment for work done In many parts of the country and varying the expense of women’s interests and access to and delivered; high rejection of outputs completed degrees of intensity, women are also engaged in employment? without clear justiﬁ cation resulting in reduced subcontracted homework – producing products, payment; no protection from safety hazards from such as baby clothes, embroidered items, woven Programmes could explore and do many things use of toxic materials, dust, eye and back strain, baskets and Christmas decors, for a middleman or that enable women to realise better returns and etc.; absence of compensation for accidents and agent of an ultimate buyer (a factory or exporter), satisfaction from their current economic activities; illnesses caused by these hazards; and absence of in exchange for payment on a piece-rate basis. for example, raise productivity and income through mechanisms through which home-workers could Homework is often seasonal or irregular being better understanding of markets and production, negotiate with middlemen for better piece-rates highly dependent on orders. For women with improvements in working conditions, technology, and seek redress for malpractices. Local planners family responsibilities, homework allows them to skills, business methods, etc. Measures aimed and development practitioners in localities with combine wage work with childcare. at supporting entrepreneurial activities must take considerable numbers of home-workers are best into account that women’s activities will have placed to help in dealing with these concerns. POINTERS FOR DESIGNING STRATEGIES AND distinct features (e.g. smaller in scale, conducted ACTIONS closer to home, concentrated in certain trades and OPPORTUNITIES FOR YOUNG WOMEN businesses, income used for home consumption It is important to explicitly identify and respond to rather than re-investment) and will not have Women’s labour force participation rates and the needs and interests of women as producers access to substantial capital resources. employment levels across the country are lower and workers, not just as mothers and caregivers. than men’s. In the formal labour sector, women By building on women’s know-how and experience are concentrated in low-paying jobs and in a Questions that one can pose to anticipate that they have gained from their productive narrow range of occupations and industries. possible negative effects of a policy, regulation or activities, programmes can introduce women into These are partly explained by the constraints programme on women’s productive activities: Will new areas. already mentioned above (domestic and family it diminish the resources (e.g. land, water, forest care responsibilities), which also affect girls’

International Labour Ofﬁ ce []Ó 376 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.03.1 GENDER: THE CHALLENGES OF WOMEN AND WORK

workload at home. There are additional constraints 2. Local authorities can ensure that young RELEVANT RESOURCES to women’s access to wage employment: women have equal opportunities of entering concentration of women’s education and training the local vocational training institutions and • Gender, poverty and employment. Reader’s in traditionally “feminine” areas (e.g. teaching, of entering technical subjects - for example, Kit (Geneva: ILO) 2000. http://www.ilo.org/ secretarial, health care, dressmaking), regardless removing entry requirements that are biased public/english/employment/skills/informal/gpe/ of whether there is market demand for these skills against women, engaging women teachers in informal/pack/english.htm or not; persisting beliefs among parents, teachers, technical ﬁ elds, making classrooms suitable to employers and girls/women that these are the women’s needs. appropriate occupations for women; and values 3. The situation of girls and boys in poor CROSS-REFERENCES that men are the breadwinners and therefore households needs special attention. They are entitled to better paying jobs and higher wages. likely to under-perform and drop out of school • Tool 4.05.01, Information Tool: Fundamental not only because of housework but because rights at work POINTERS FOR ACTIONS most would be helping the family earning a • Tool 4.05.03, Information Tool: Gender equality living. Illiteracy, low education and few skills helps local development and poverty reduction 1. Local planners and development practitioners perpetuate low incomes and poverty to the • Tool 4.03.06.3, Action Tool: Providing better can help change these stereotypes in their next generation. social protection for women localities, encourage girls and young women to enter and excel in new non-traditional ﬁ elds and motivate their interest in science and math at primary and secondary school levels, for example through awareness-raising campaigns.

International Labour Ofﬁ ce []Ó 377 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.04 INFORMATION TOOL

EQUALITY OF OPPORTUNITIES: ISSUES AFFECTING INDIGENOUS PEOPLES

OVERVIEW LEGAL AND POLICY PERSPECTIVE and develop their own indigenous political institutions. In general, local development planning is NATIONAL LAWS • To be given mandatory representation in policy addressed to the mainstream constituency. making bodies and local legislative councils. Indigenous peoples living in the locality are often The Philippine Constitution (1987): The • To determine their own priorities for overlooked or given no special consideration, Constitution mandates the recognition and development by guaranteeing their participation notwithstanding their condition and status. This promotion of the rights of indigenous peoples in the formulation, implementation and practice has invariably brought about issues that within the framework of national unity and evaluation of policies, plans and programs for at times are made to bear on the credibility of development and the consideration of their right to national, regional and local development which the planning process and its results. Moreover, preserve and develop their cultures, traditions and may affect them. where indigenous peoples’ concerns are in fact institutions in the formulation of national laws and • To establish their own peoples’ organisations considered, inaccuracies have been noted in the policies. to enable them to pursue and protect their identiﬁ cation of issues. legitimate and collective aspirations. The Indigenous Peoples Rights Act (IPRA): The • To be granted the means to fully develop their OBJECTIVE IPRA provides for the recognition of the rights of own institutions and initiatives. the indigenous peoples: This tool provides information on issues that The Local Government Code: The Local need to be considered in local development • To freely pursue their economic, social and Government Code provides for representation planning affecting indigenous peoples. This is cultural development. of marginalised sectors, including indigenous especially relevant in provinces and regions of the • To use commonly accepted justice systems, peoples, in the local legislative bodies. It also country where indigenous populations are highly conﬂ ict resolution institutions, peace building provides for the creation of tribal barangays concentrated process and other customary laws. through legislation. • To participate in decision-making that may affect their lives and destinies and to maintain

International Labour Ofﬁ ce []Ó 378 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.04 EQUALITY OF OPPORTUNITIES: ISSUES AFFECTING INDIGENOUS PEOPLES

The National Integrated Protected Areas System GENERAL CONSIDERATIONS Ancestral domains and lands – In general, the Law (R.A. No. 7586): The NIPAS law provides for indigenous peoples live as communities in the recognition of the rights of indigenous peoples It could be easier to understand issues in local specifi c ancestral domains which they have within protected areas. Under its implementing development planning affecting indigenous occupied and possessed since time immemorial rules and regulations (DAO 25, S. 1992), the peoples, if these are seen from a perspective comprising lands, inland waters, coastal areas, delineation of ancestral domains within protected based on the following general considerations: and natural resources held under a claim of areas is provided. collective ownership which are necessary to Identity of indigenous peoples (IPs) – The ensure their economic, social and cultural well- The Comprehensive Agrarian Reform Law indigenous peoples (in the Philippines) are being. As individuals, families and clans, they (R.A. No. 6657): Pursuant to Section 9 of the those who became historically differentiated live in ancestral lands comprising, among others, Comprehensive Agrarian Reform Law, Department from the majority of Filipinos as a result of their residential lots, rice terraces or paddies, private of Agrarian Reform administrative Order No. 04, having successfully asserted the integrity of their forests, swidden farms and tree lots. Under Series of 1996, providing for regulations governing indigenous culture against the political, social and the IPRA, indigenous peoples ownership of the issuance of Comprehensive Agrarian Reform cultural inroads of colonisation and who continued ancestral domains and lands is being secured Program Benefi ciary Certifi cates to indigenous to live as homogenous societies, identifi ed by self- through Certifi cates of Ancestral Domains (CADT) peoples, was issued. ascription and ascription by others, in communally and Certifi cates of Ancestral Lands (CALT), bounded and defi ned ancestral territories, sharing respectively. INTERNATIONAL INSTRUMENT common bonds of language, customs, traditions and other distinctive cultural traits. Indigenous Native title – The right of ownership of ancestral The International Labour Organization (ILO) Peoples likewise include those who descended domains and lands by the indigenous peoples is Convention on Indigenous and Tribal Peoples from populations which inhabited the country at based on native title. Native title comprises pre- in Independent Countries (No. 169) – The the time of conquest or colonisation, who retain colonial rights to domains and lands which, as far Convention provides that the improvement of some or all of their own social, economic, cultural back as memory reaches, have been held under the conditions of life and levels of health and and political institutions, but who may have been claim of private ownership and therefore have education of the indigenous peoples, with their displaced from or who may have resettled outside never been public lands. participation and cooperation, need to be treated their ancestral domains. as a matter of priority in plans for the overall Customary laws – Indigenous peoples continue economic development of the areas they inhabit. to generally recognise and to be bound by their

International Labour Ofﬁ ce []Ó 379 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.04 EQUALITY OF OPPORTUNITIES: ISSUES AFFECTING INDIGENOUS PEOPLES

respective customary laws which consist of a body and minerals; plants, animals, fowls, fi sh and technical and fi nancial support services in their of written and/or unwritten rules, usages, customs other organisms within their ancestral domains, quest for individual and collective development. and practices. including collecting, fi shing and hunting grounds, sacred site and other areas of economic, Recognition of rights to ancestral domains and Indigenous knowledge systems and practices ceremonial and aesthetic value according to lands. Despite the expressed provisions of the (IKSPs) – Indigenous peoples have institutions, their indigenous knowledge, belief systems and Philippine Constitution and the IPRA, the rights systems, mechanisms and technologies practices. of the indigenous peoples to their ancestral comprising a unique body of knowledge domains and lands are often disregarded. evolved through time that embody the patterns ISSUES AFFECTING INDIGENOUS PEOPLES Ancestral domains and lands, including the of relationship between and among them as natural resources found therein, are still widely well as their lands and resources, including Some of the key issues in local development viewed as public lands and are treated as such in social, economic, political, cultural and spiritual planning affecting indigenous peoples are the development planning processes. norms which have allowed them to survive and following: thrive within their distinctive socio-cultural and Harmonisation of local development plans and biophysical environment. Elimination of discriminative practices. ancestral domain development plans. Indigenous Notwithstanding the richness of their cultural communities in duly recognised ancestral domains Indigenous political structures – Indigenous heritage, the sustainability of their indigenous are given the opportunity by law to formulate and peoples are endowed with a system of self- knowledge systems and practices and the implement their Ancestral Domain Sustainable governance anchored on indigenous organisational potency of their institutions, the indigenous Development and Protection Plans (ADSDPP). In and leadership structures, institutions, peoples have yet to be truly recognised as these cases, it is imperative that both ADSDPP relationships and processes for decision-making development partners. Unlike the mainstream and local development plans are harmonised and and participation. These are, among others, Tribal local constituencies, they are still generally their implementation coordinated. Councils, Council of Elders, Peace Pact Holders regarded as objects of development, whose and other bodies of similar nature. socio-economic needs continue to be addressed Proper formulation and implementation of through occasional dole-outs and miscellaneous development projects. Development projects Sustainable resource rights – Indigenous peoples development projects. Moreover, the indigenous intended for indigenous peoples are more often have duly recognised rights to sustainable use, peoples have yet to be accorded equal than not formulated and implemented in a top- mange, protect and conserve lands, waters opportunities in terms of access to facilitative down and prescriptive manner, which disregard

International Labour Ofﬁ ce []Ó 380 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.04 EQUALITY OF OPPORTUNITIES: ISSUES AFFECTING INDIGENOUS PEOPLES

cultural factors. Experience has shown that the indigenous culture is often considered in can start to resolve this issue by invoking the this approach has been hardly effective and the local development planning process from IPRA, which has provided for the mandatory sustainable. Current approaches, which have the perspective of the old integrationist and representation of indigenous peoples these been proved to be more effective and sustainable, assimilationist policies. legislative and decision-making bodies. are culturally founded, participatory and community-driven. Improvement of the consultation process. The Reconciliation of confl icting policies and importance of proper consultation in relation to the programme. A number of existing mainstream Integration of indigenous knowledge systems indigenous peoples cannot be overemphasised. policies and programs have been found to be in and practices. Local development planning Improper approaches to consultation have worked confl ict with current policies and programs born could benefi t signifi cantly from a wide range of to alienate many indigenous communities from out of the present Constitution and the IPRA. For indigenous knowledge systems and practices, the mainstream population and from government example, certain policies and programs about land the sustainability of which has been established and non-government entities. In response to this and natural resources management, based on over time. Heretofore, these IKSPs have been issue, the IPRA has provided for the requirement provisions of the existing Forestry Code and the regarded as primitive and anachronistic. But of “free and prior informed consent”, especially in Comprehensive Agrarian Reform Law, are in some recent studies and ground level experience have cases involving the implementation of signifi cant ways incompatible with policies and programs proved that IKSPs have remained potent and industrial and commercial undertakings and denominated for indigenous peoples under have in fact been used in a number of cases as infrastructure projects within ancestral domains the IPRA. The indigenous peoples often fi nd alternative technologies, especially in relation to and lands. themselves at the losing end of these confl icting the sustainable management and protection of policies and programs, especially at the local level. natural resources. Representation in local legislative and decision- making bodies. Even up to the present, Extension of appropriate basic services. Basic Promotion of the indigenous culture. The indigenous peoples are hardly represented in services for the indigenous peoples, including indigenous culture is central to the identity local legislative and decision-making bodies. For support to their education, health, housing and and existence of the indigenous peoples. this reason, they have had no real voice in the livelihood needs, are not only inadequate but Unfortunately, until today, the indigenous culture local planning and development processes. This are often not responsive to their requirements, has yet to be known, understood and appreciated gap is widespread, but so far only token attention given their unique lifestyle and characteristics. by the people in general. Owing to this condition, has been accorded the problem. Local entities This issue had remained high among the priority

International Labour Ofﬁ ce []Ó 381 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.04 EQUALITY OF OPPORTUNITIES: ISSUES AFFECTING INDIGENOUS PEOPLES

concerns of the indigenous peoples and could RELEVANT RESOURCES CROSS-REFERENCES be greatly mitigated, if not completely resolved, if properly considered in the local development • Fox, Richard G. Professional Primitives: Hunters • Tool 1.02, Information Tool: The Decent Work planning. and Gatherers of Nuclear Southeast Asia. 1969. Framework • Rice, Delbert and Tima, Rufi no, A Pattern for • Tool 3.04, Action Tool: Techniques and Promotion of indigenous confl ict resolution Development. Christian Institute for Ethnic approaches to better negotiations by indigenous mechanisms. Local development planning could Studies in Asia. 1973 peoples (and other marginalised groups) contribute substantially to the attainment of peace • Rood, S. and Casambre, Indigenous • Tool 4.05.01, Information Tool: Fundamental and order at the local level and to the success Practices and State Policy in the Sustainable rights at work of the peace process in general if it considers Management of Agricultural Lands and Forests • Tool 4.05.02, Information Tool: Relation and gives impetus to the adoption and use of in the Cordillera. 1994 between rights at work and poverty reduction indigenous confl ict resolution mechanisms. The • Republic Act No. 8371. Indigenous Peoples effectiveness of indigenous confl ict resolution Rights Act (IPRA). 1997 http://www.ncip.gov. mechanisms has long been established. And it ph/mandate/ipra.htm would be to the advantage of local governments • The New Philippine Constitution. 1987 if these are tapped in the resolution of confl icts involving indigenous peoples or integrated into the current barangay justice system under existing laws.

International Labour Ofﬁ ce []Ó 382 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05 ASSESSMENT TOOL

IDENTIFYING PROBLEMS OF CHILD LABOUR IN THE COMMUNITY

OVERVIEW • Guidelines for mapping the extent and nature of WHAT IS “CHILD LABOUR”? problems of child labour in an area Certain forms of child labour are particularly “Child labour” does not refer to all forms of harmful to the future development potential of According to estimates made by the International economic activity done by children under 18 years children and the local community. Therefore, it is Labour Organization in 2002 based on old. Child labour refers to: employment or work important to understand the extent and nature of comprehensive surveys on child labour, there were carried out by children under three conditions: child labour in your local area, and identify local 352 million economically active children aged problems of child labour that should be addressed 5-17 years, of whom around 246 million were • Labour that is performed by a child who is in the immediate, medium and long term. engaged in activities classifi ed as “child labour”. under the minimum age for that kind of work (as Of these, 179 million were regarded to be in “the defi ned by national legislation, in accordance OBJECTIVE worst forms”, i.e. mostly hazardous work, but with accepted international standards) and that with signifi cant numbers in slavery and bonded is likely to impede the child’s education and full This tool discusses: labour, prostitution, illicit activities or as traffi cked development (covered by Convention No. 138) children. • Hazardous work - labour that jeopardises the • Problems of child labour, and distinguishes physical, mental or moral well-being of a child, those that should be given priority attention: the The child labour problem remains enormous either because of its nature or because of the worst forms of child labour and child labour in but concern about and understanding of how conditions in which it is carried out (Convention hazardous work to eradicate it have spread around the world in No. 182) • Risks that working children face under these recent years. • Unconditional worst forms of child labour – which two conditions, with examples of occupational are internationally defi ned as slavery, traffi cking, groups debt bondage and other forms of forced labour, • Usual causes why children work forced recruitment of children for use in armed confl ict, prostitution and pornography, and illicit activities (Convention No. 182)

International Labour Ofﬁ ce []Ó 383 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05 IDENTIFYING PROBLEMS OF CHILD LABOUR IN THE COMMUNITY

SPECIFIC RISKS FACED BY WORKING CHILDREN: EXAMPLES

Children in hazardous working situations Children in worst forms of child labour

Group Speciﬁ c risks faced Group Speciﬁ c risks faced

Agricultural workers Use of machinery and vehicles designed for adults Commercial sexual exploitation of Abuse; sexually transmitted disease, HIV/AIDS; and requiring training; and exposure to toxic agro- children pregnancy; social exclusion; psycho-social disorders; chemical and biological agents, especially pesticides family rejection; death

Mines Injury from falling objects; cave-ins; harmful dusts; Traffi cked children As above; added trauma of being isolated and unable gases and fumes; humidity; extreme temperatures; to communicate, and being slaved. and mercury poisoning (gold-mining) Slavery and forced labour Physical, mental and sexual abuse; loss of self- Ceramics and glass factory work Exposure to high temperatures leading to heat esteem and self-confi dence; long and arduous stress, cataract, burns and lacerations; broken working hours glass; hearing impairment due to noise; exe strain; exposure to silica dust, lead carbon monoxide and sulphur dioxide Children in armed confl ict Death, mutilation, injury in fi ghting; psychological trauma; drug addiction; sexually transmitted Children in factories and building Exposure to dangerous machinery, chemicals, falling diseases, HIV/AIDS; pregnancy; social exclusion; sites objects; arduous working hours, abusive employers psycho-social disorders

Deep-sea ﬁ shing Drowning; ruptured eardrums; decompression illness

Child domestic workers (working Long working hours; physical, mental and and sometimes living in the sexual abuse; isolation; lack of opport8unities household of employer) for socialisation and recreation; often slave-like conditions.

Children working in the streets Exposure to unsanitary conditions; risks of illness and (urban informal economy) food poisoning; sexual abuse.

International Labour Ofﬁ ce []Ó 384 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05 IDENTIFYING PROBLEMS OF CHILD LABOUR IN THE COMMUNITY

WHY DO CHILDREN WORK? Employers of children also include non-family INCIDENCE AND NATURE OF CHILD LABOUR individuals who prefer children to adult workers Children work for predominantly economic and because children are cheaper (low wages, poor Who? Which children and how many are social reasons. Poverty is by far the single most working conditions), and are easier to manage and working: boys, girls, their ages, ethnicity, important reason why children become child control. Some claim that children possess certain etc labourers. Poverty forces them to work in order to better “skills” than adults (given their nimble What? What kinds of work are they doing? And meet the subsistence expenses of their families, fi ngers, ease in entering small spaces such as under what conditions? to pay debt, to make up for income lost due to mines). Where? In which villages or communities are illness or death of an adult income-earner or a bad these forms of child labour taking place? harvest, or to replace an adult who has lost a job. MAPPING EXTENT AND NATURE OF CHILD Include both place occurrence and Some children work not because of poverty but LABOUR source of labour. because they and their families perceive benefi ts When? Time of day, school year or season, in the immediate and long-term to be greater than The fi rst step in designing effective interventions to number of hours per day, weeks per the benefi ts of education. This may be due to reduce or eradicate problems of child labour is an month, months per year poor quality of education, a perceived irrelevance analysis of the situation in the area and/or sector. Why? What are the root causes? of education, or the inaccessibility of schools. This includes looking at the following: Certain cultures also regard work as being good for children’s growth, socialisation and development, • Mapping incidence and nature of child labour and this is reinforced by the poor quality of • Socio-economic and demographic schools and lack of relevance of existing curricula. characteristics of working children and their However, children also work because of employer families preferences and demand. Employers of the • Major causes and consequences of different majority of working children are their parents, who forms of child labour are often sensitive to the safety and welfare of • Past experiences with child labour interventions their children. However, parent-employers could if any be ignorant of the risks faced by their children at work. Cases of exploitation also occur.

International Labour Ofﬁ ce []Ó 385 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05 IDENTIFYING PROBLEMS OF CHILD LABOUR IN THE COMMUNITY

Checklist of information on characteristics of working children and families

Child characteristics Working conditions

Characteristics Age, sex, ethnicity, mental and physical health, etc. Workplace characteristics Sector (forma/informal), size of establishment, type of employment Basic learning competencies Literacy, numeric and life skills Characteristics of work Type of activity, number of hours worked per week, days Activities Previous and present economic and non-economic per month, time of day activities, school, leisure Remuneration Type of remuneration, amount and frequency, relative Attitudes For example, will they accept help or will they resist effort wage analysis, use of earnings to remove them from work? Interactions with employer and Type of recruitment, rewards, sanctions Migration Place of origin, number of years living/working in current other workers place, type of preceding place (urban-ural), number of years lived in preceding place Hazards faced by children Unhealthy or morally unsound or illicit conditions, occupational accidents and diseases, ergonomic hazards, Household characteristics harmful substances and sources of exposure, exposure to physical, chemical agent, psychological hazards, use of Family characteristics Demographic composition, children living outside the tools and machinery, use of protective equipment household, activity status of parents/guardians Community infrastructure Socio-economic status Income, state of indebtedness, land other assets Basic physical infrastructure Water source, roads, electricity, sources of fuel Living conditions Access to health/sanitation, housing type and location Health and sanitation Primary health care facilities, family planning services, Parents’ education Literacy, level of schooling of mother, father, work status general health and sanitation situation, availability of of parents, (employed/unemployed, formal/informal, self- sufﬁ cient food and water employed/wage) Schools Presence, highest grade offered, alternative education, Parental perceptions Values and attitudes towards education, present and distance, assess, cost, teacher characteristics, school future goals for children, awareness of worst forms and monitoring, enrolment rates hazardous forms of child labour, attitudes Local economy Income distribution, land ownership, capacity of local Migration Place of origin of household members, number of years in government, adult labour market, types of industry/ current place of residence, type of preceding place, etc employment, technology, availability of vocational training

International Labour Ofﬁ ce []Ó 386 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05 IDENTIFYING PROBLEMS OF CHILD LABOUR IN THE COMMUNITY

ACKNOWLEDGEMENTS CROSS-REFERENCES

• ILO, Time-Bound Programme. Manual for • Tool 1.02, Information Tool: The Decent Work Action Planning (Geneva: ILO) 2003. http:// Framework www.ilo.org/public/english/standards/ipec/ • Tool 4.05.01, Information Tool: Fundamental themes/timebound/textonly.htm rights at work - Guidebook II - Time-Bound Programmes for • Tool 4.05.02, Information Tool: Relation eliminating the worst forms of child labour between rights at work and poverty reduction – An introduction http://www.ilo.org/public/ • Tool 4.05.05.1, Action Tool: Reducing child english/standards/ipec/themes/timebound/ labour in your community downloads/gudbk2en.pdf • Tool 4.05.05.2, Action Tool: Planning a - Guidebook III – Creating the knowledge conference or workshop about reducing child base for Time-Bound Programmes http:// labour www.ilo.org/public/english/standards/ipec/ themes/timebound/downloads/gudbk3en. pdf

International Labour Ofﬁ ce []Ó 387 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05.1 ACTION TOOL

REDUCING CHILD LABOUR IN YOUR COMMUNITY

OBJECTIVE • Raising household income Upstream measures, i.e. national and policy levels, • Increasing awareness of the consequences of aimed at enabling environment. At this level, the This action tool discusses a framework for devising the worst forms of child labour instruments that are relevant are: strategies to combat and reduce the incidence of child labour in the community. It suggests some Withdrawing and rehabilitation of children • Strengthening legislation and enforcement actions that local government units (LGUs), local withdrawn from child labour include: • Improving access to quality education, planners and leaders, employers and business vocational training and other services for all organisations, and community organisations could • Provision of health and counselling services boys and girls implement at local level. • Gender-sensitive educational and skills training • Enhancing opportunities for better employment, opportunities for children improved earnings, and social protection for STRATEGIES AND INTERVENTIONS FOR adults ERADICATING CHILD LABOUR Protection from exploitation and hazardous work includes:

THREE TYPES OF STRATEGIES Enabling environment • Legislation and enforcement of labour standards • Improvement in working conditions Strategies to combating child labour may be Direct, targeted interventions categorised into three: COMPLEMENTARY INTERVENTIONS AT TWO LEVELS Capacity Prevention strategies include efforts aimed at: building at local Because of the multifaceted nature of the child level • Strengthening legislation and enforcement labour problem, with its diverse causes and • Improving educational opportunities and consequences, effective action will often require carrying out other improvements to make a series of complementary interventions in several the education system more accessible and sectors on two levels, as shown by diagram below. attractive to all boys and girls

International Labour Ofﬁ ce []Ó 388 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.05.05.1 REDUCING CHILD LABOUR IN YOUR COMMUNITY

• Build institutional capacity (in general or specifi c types of exploitation) from DIRECT INTERVENTIONS • Guarantee occupational health and safety given economic sector or industry (e.g. mining, particularly for young workers pyrotechnics). An area-based approach allows for Awareness-raising: done through murals, targeting all forms of child labour prevalent in a workshops, public messages on child labour. Downstream, direct interventions targeted at well-defi ned geographical area. population groups or economic sectors where Monitoring: of, say, fi shing vessels or, more hazardous and worst forms of child labour are AREA-BASED APPROACH generally, home municipalities. The ideal set up prevalent: is facilitating transition toward DOLE supervision. This offers opportunity for a coherent strategy. In some communities, fi shing operators must • Withdrawal and rehabilitation of children found This means that direct prevention, removal, provide information on the ages of workers as a in worst forms of child labour rehabilitation and protection interventions can be pre-condition to obtaining permits. • Education and training at local level including combined and integrated closely with activities measures to improve quality of schooling aimed at empowering vulnerable families and Education: the use of innovative delivery systems through better facilities, quality of teaching, etc. local communities. For example, improvements in such as “learning through recreation”, open and • Economic empowerment of targeted families schooling would be more effective in preventing distance learning (ODL), non-formal programs, is • Capacity building of local institutions – local child labour if these could be supported by safety highly recommended. Continuous counselling is administrations, community groups, network nets and activities that reduce the economic seen as critical to keeping children in school. • Community mobilisations and awareness raising vulnerability of families prone to or affected by • Local child labour monitoring child labour. Alternative production methods: the most • Rapid response or emergency action to remove successful of these involves the setting-up of children from hazardous situations LOCAL-BASED ACTIONS “community workshops” away from homes, which serves to effectively shield children from the SECTOR OR AREA FOCUSED Local governments, civil society groups, and temptation of home-based work. employer organisations can provide alternatives Direct, targeted actions can be organised with an to child labour by instituting a number of direct Alternative income generation for parents: This area focus, a sector focus or both. The sector- interventions, creating functional databases, and begins with the provision of micro-credit and based approach aims to eliminate child labour strengthening partnerships among stakeholders. business advice (on marketability of skills and

International Labour Ofﬁ ce []Ó 389 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT TOOL No: 4.05.05.1 REDUCING CHILD LABOUR IN YOUR COMMUNITY

feasibility of product plans) to parents in exchange RELEVANT RESOURCES CROSS-REFERENCES for commitments from parents not to allow their children to work. • Time-Bound Programme. Manual for Action • Tool 1.02, Information Tool: The Decent Work Planning. ILO. 2003 http://www.ilo.org/public/ Framework DATABASES english/standards/ipec/themes/timebound/ • Tool 4.05.01, Information Tool: Fundamental textonly.htm rights at work Databases should strive to compile information • Faces of Change: Highlights of the US • Tool 4.05.02, Information Tool: Relation that is as direct as possible, and not merely Department of Labour’s Efforts to Combat between rights at work and poverty reduction aggregated, of the sort usually found in statistical International Child Labour. Elaine L Chao. • Tool 4.05.05, Assessment Tool: Identifying series. This means detailed and extensive one-on- 2002. problems of child labour in the community one surveys, so that the details of the child labour • The Community Microﬁ nance Operations • Tool 4.05.05.2, Action Tool: Planning a situation can be well understood, and so best Manual/Accounting Guidebook – Taking Action conference or workshop about reducing child practices may be properly formulated. Against Child Labour. ILO-Punla Sa Tao labour Foundation. 2002. STRENGTHENING PARTNERSHIPS • ORT Health Plus Scheme in the Province of La Union, Philippines: a Community-Based Commercial agriculture, mining, domestic work, Micro-insurance Scheme. Maria Euphemia and the sex trade are the four biggest employers of Yap & Editha Aldaba. ILO. 2002. http://www. children. Partnerships with the NGO community ilo.org/public/english/protection/socsec/step/ and civil society should not just involve identifying download/26p1.pdf where the child labourers are, but must also • Design, Management and Evaluation of Action include projects for motivating them to return Programmes on Child Labour. James S. Mante to school, dealing with attendance problems, and Loree Cruz-Mante. Institute for Labour and providing ongoing support for them. Some Studies DOLE. 2001. employer organisations have in fact gone so far as to provide stipends and part-time work for children to assist in the transition back to school.

International Labour Ofﬁ ce []Ó 390 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05.2 ACTION TOOL

PLANNING A CONFERENCE OR WORKSHOP ABOUT CHILD LABOUR

OVERVIEW OBJECTIVE A conference or workshop of fi ve days is proposed, covering almost every topic on child Successfully reducing the incidence of child This action tool presents the Training Package on labour in the Philippines. Various activities such labour require collective efforts from different the Design, Management and Evaluation (DME) as surfacing learner expectations, fi lm showings, actors in the community – parents, families, local of Action Programmes on Child Labour. This and clarifi cation of house rules and arrangements governments, community leaders, employers’ training package discusses how to plan, organise are provided. organisations and private business sector, trade and conduct such a workshop or conference. The unions, NGOs and others. methods proposed adopt a learning approach that Several tools for “unfreezing” are proposed. is more suited to the psyche of the Filipino learner. “Unfreezing” is a process of preparing learners One way to mobilise collective efforts is by holding It incorporates unfreezing activities and enriching to participate in a learning situation and of a workshop or conference among the different learning experiences that put a premium on the progressively deepening involvement by helping stakeholders on the topic of child labour and its effective side of the learning process. learners to question and clarify their own thinking particular nature and context in the local area. The and feelings. objectives of this workshop or conference would OVERVIEW OF THE DME TRAINING PACKAGE be: Using situational analysis, participants identify The Training Package on the Design, Management problem areas and seek to solve these. At the • To raise awareness and build a common and Evaluation (DME package) begins with a last phase of the workshop or conference, the understanding of child labour, particularly in the discussion of the challenges it must address participants will learn how to start, manage, area and its training approach. The training monitor, and evaluate an action program. There • To identify and formulate ways to address the approach includes methods on experiential will also be an integration of all the learnings and problem training, ensuring training outcomes, evaluating the program will be synthesised. effectiveness and conducting formative and summative evaluations.

International Labour Ofﬁ ce []Ó 391 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 4.05.05.2 PLANNING A CONFERENCE OR WORKSHOP ABOUT CHILD LABOUR

DAY ONE DAY THREE ACKNOWLEDGEMENTS

1. “Unfreezing” exercises which prepare 1. Designing an action program: key design This action tool is an adaptation of the participants for active learning. elements (lecture/discussion). International Labour Organisation – International 2. Film viewing: “No Time for Play”. 2. Summary outline and work plan (individual Programme on the Elimination of Child Labour 3. Overview of child labour situation (lecture/ and group exercises). (ILO-IPEC) Training Package on the Design, discussion). 3. Critiques of summary outlines (plenary). Management and Evaluation (DME) of Action 4. The national program against child labour Programmes on Child Labour. (lecture/discussion). DAY FOUR 5. Exercise: child work or child labour? (Individual thought experiments). 1. Starting and managing an action program RELEVANT RESOURCES 6. Problem analysis (lecture/discussion). (lecture/discussion) 2. Exercise: best and worst managers Design, Management and Evaluation of Action DAY TWO (individual/group exercises) Programmes on Child Labour. James S. Mante 3. Monitoring and evaluating an action program and Loree Cruz-Mante. Institute for Labour 1. Methods of investigation/interviewing (lecture/discussion) Studies DOLE. 2001. Techniques (lecture/discussion and exercise). 2. Adapting the checklist and draft questionnaire DAY FIVE (group exercise). CROSS-REFERENCES 3. Designing an action program: project 1. Sustainability and social marketing (lecture/ rationale and strategy (lecture/discussion). discussion) • Tool 4.05.05, Assessment Tool: Identifying 4. Case study: problem analysis and project 2. Commitment analysis and action charts problems of child labour in the community strategies (plenary reporting). (individual exercise & group sharing) • Tool 4.05.05.1, Action Tool: Reducing child 3. A sample response (presentation/discussion) labour in your community 4. Evaluation (individual work)

International Labour Ofﬁ ce []Ó 392 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEWPART 1 PART 1 PART 2 PART 3PART PART 54 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

PART 5: TECHNICAL ISSUES IN IMPLEMENTATION, MONITORING AND EVALUATION

INTRODUCTION A short-term plan or project could not be Monitoring and evaluation are not distinct expected to solve a whole problem because of operations. Monitoring provides information Part 5 focuses on some of the common technical the complexity of social and economic issues. But for day-to-day management and for impact aspects in the implementation, monitoring and it should make a valuable contribution towards evaluation. When impact evaluation is due, then evaluation of local development initiatives. solving a problem. The best entry point or way the results will be more accurate and revealing to addressing a problem may be defi ned as one because they draw on information that has been These cover a range of issues, including project that is feasible (in terms of fi nancial, political and routinely and objectively collected over the history formulation, mobilising investments and resources administrative requirements) and has the greatest of a plan or project. for local development, coordination, partnerships likelihood of making a good impact. between the LGU and private sector, how to put plans and projects into action, and monitoring and Another important aspect of the development evaluating these initiatives. process is looking at how well development efforts or interventions are doing and if objectives are The most critical and basic element in formulating being attained. plans and projects is the logical framework on which the plan or project is based - the Monitoring and evaluation is built in the project/ identifi cation and diagnosis of the problem; planning cycle. The plan sets out the indicators of the choice of the best entry point and way to how the plan or project is doing. Monitoring is the address the problem, and being clear with what is routine collection, analysis and use of information expected to be achieved at the completion of the about how well a plan or project is going. Impact plan or project. evaluation is the periodic assessment of the positive and negative effects of a plan or project.

International Labour Ofﬁ ce []Ó 394 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.01 INFORMATION TOOL

FACTOR ANALYSIS AND LOGICAL FRAMEWORK FOR PROGRAMME/PROJECT FORMULATION

OBJECTIVE To arrive at the above factors, the following FACTORS ISSUE questions were asked: This information tool discusses factor analysis and the logical framework (Log Frame) for formulating • What are the POSSIBLE CASES? Lack of a programme or project. Before writing a project 1 Employers/ • What information/data/evidence do we have to proposal, the programme/project must fi rst be Investors prove that these are the FACTORS AFFECTING designed. This tool is meant to guide anyone who the ISSUE? would like to design a programme/project. • Are similarities between the FACTORS such Lack of employable 2 skills that these can still be GROUPED/CLUSTERED FACTOR ANALYSIS together? • Which FACTORS AFFECT the ISSUE most? Before designing a project, the issue or problem Lack of knowledge and 3 skills on how to seek UNEMPLOYMENT that the project seeks to address in the fi rst place, employment Following are the answers: must be analysed. 1. What are the POSSIBLE CASES? The possible An issue is a negative situation of the community, Lack of drive to seek cases are: 4 employment town, or city that needs to be addressed, e.g., unemployment. • There are many people with employable skills Lack of basic physical but very few employers. This is Factor 1. Factors are the situations or phenomena that 5 abilities required for • There may be enough employers but few people employment contribute or lead to an issue, e.g., Lack of skills. with employable skills. This is Factor 2. Some call these causes but absolute causality • There may be enough employers, enough is sometimes diffi cult to conclusively prove. people with employable skills, but the latter “Factors” may be a more appropriate term. have no employment-seeking knowledge and skills. This is Factor 3.

International Labour Ofﬁ ce []Ó 395 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.01 FACTOR ANALYSIS AND LOGICAL FRAMEWORK FOR PROGRAMME/PROJECT FORMULATION

• There may be enough employers, enough people of knowledge, skills, and attitudes (drive) on how to At this point, the project designer may want to with employable skills and employment-seeking seek employment”. look at the deeper factors that affect what can knowledge and skills, but the latter have no drive be called “immediate factors” (what were called to seek employment. This is Factor 4. (This is 4. Which FACTORS AFFECT the ISSUE most? “factors” before). For example, an alarming phenomenon in Filipino families supported by regular remittances from an Further information may be needed to answer this overseas family member.) question. However, in the Philippine context, Factor DEEPER IMMEDIATE • There may be enough employers, enough people 1, “Lack of Employers/Investors” may have the FACTORS FACTOR 1 with employable skills and employment-seeking largest effect on the issue. Still, there are specifi c drive, knowledge, and skills, but the latter lack sectors, e.g., the emerging call centre industry, Inadequate infrastructure the basic physical abilities required by specifi c where Factor 2, “Lack of employable skills” is the (roads, water, telecommunications, jobs. major factor. This is based on studies showing that power, etc.) very few of those who apply for jobs in this sector are 2. What information/data/evidence do we have to actually employed. prove that these are the FACTORS AFFECTING Unfavourable local tax/fee structures and the ISSUE? Key informant interviews, review of past studies, policies on business or surveys are needed to obtain the data to help Lack of In the above example, the factors actually defi ne the project designer in prioritising the factors Employers/ Investors the issue. It is very diffi cult to fi nd other factors according to which one(s) affect the issue most. Lack of good that lead to the issue of unemployment. What can After prioritisation, the project can then be designed governance (graft and still be done is to list down the deeper factors that to focus on the most important factors to maximise corruption, etc.) contribute to the above factors. impact. However, if resources are quite limited, the project can choose to focus on factors that can be 3. Are there similarities between the FACTORS realistically addressed. The factor analysis will keep Lack of employable such that these can be GROUPED/CLUSTERED reminding stakeholders about the limitations of the skills together? project intervention and about what other factors need to be targeted by other projects or stakeholders Factors 3 and 4 can be grouped together into “Lack in order to substantially address the issue.

International Labour Ofﬁ ce []Ó 396 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.01 FACTOR ANALYSIS AND LOGICAL FRAMEWORK FOR PROGRAMME/PROJECT FORMULATION

The same questions are asked to arrive at the After constructing the Factor Tree, the following above factor analyses. Notice that the factor, “lack DEEPER IMMEDIATE ISSUE conversions can be done: of employable skills” also appears as affecting FACTORS FACTOR 1 Factor 1. So it may be worth looking at it more Issue Goal Inadequate infrastructure Unemployment Increase Employment deeply. The same can be done to for the other (roads, water, ¨ telecommunications, Immediate Factors Objectives factors until a Factor Tree is arrived at. power, etc.) • Lack of Employers/ • Retain/Attract Employers/ Investors Investors Unfavourable local • Lack of Employable • Add/Improve Employable tax/fee structures and Skills Skills policies on business DEEPER IMMEDIATE Lack of • Lack of knowledge, • Develop knowledge, skills, Employers/ FACTORS FACTOR 2 skills, and attitudes and attitudes (drive) on Lack of good Investors (drive) on how to seek ¨ how to seek employment governance (graft and corruption, etc.) employment • Provide incentives for • Lack of basic physical employing people with Out-migration of people w/ abilities required for disabilities employable skills Lack of employable employment skills UNEMPLOYMENT Lack of Deeper Factors Activities employable • Lack of Employers/ • Attract Employers/Investors skills Investors - Improve/Build Out-migration of people w/ • Inadequate Infrastructure Lack of educational/ employable skills infrastructure - Make policies, taxes/fees training institutions or Lack of favourable for investment inappropriate courses employable • Unfavourable taxes/fees¨ - Eradicate/reduce graft and and policies Lack of educational/ skills corruption training institutions or - Graft and corruption - Add/Improve Employable inappropriate courses - Lack of employable Skills skills Lack of knowledge Deeper Factors Activities and skills on ...... • Lack of Employable Skills • Add/Improve Employable Skills how to seek - Out-migration of people w/ - Provide Incentives for skilled employment employable skills people to stay - Lack of educational/ - Provide/encourage appropriate training institutions or educational/training institutions Lack of basic inappropriate courses and courses physical abilities ...... required for ¨ employment

International Labour Ofﬁ ce []Ó 397 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.01 FACTOR ANALYSIS AND LOGICAL FRAMEWORK FOR PROGRAMME/PROJECT FORMULATION

Note that in reality there may be more objectives and studying reports and other documents. If the assumptions are not present and if the risks per immediate factor and more than one activity to If warranted and feasible, surveys may be are very high, the project, as designed, cannot be address each deeper factor. The important thing is conducted. These methods are called Means expected to successfully achieve its overall goal. to convert the issue and factors into a goal and its of Verifi cation (MoV). Sources of data needed For example, if oil prices spiral out of control in accompanying objectives and activities. to verify the status of the indicators have to be the global market, local projects affected by this specifi ed in this section of the Log Frame. risk may have to be completely redesigned. At The next step is to place the objectives into the activity level, if inputs are not available, the a logical framework or Log Frame. The Log Third, Assumptions and Risks (A&R) related to designed activity cannot be implemented. Frame provides a structured and logical method external factors beyond the project implementers Below is a sample Log Frame for the fi rst for planning, implementing, monitoring and control are identifi ed. A&R stipulate the context objective: evaluating programmes and projects. necessary to set the project in motion. At the same time, these also set the “limits of success”. For each goal, objective, and activity, Objectively At the activity level, A&R are usually related to Verifi able Indicators (OVI) are determined fi rst. the availability of human, material, and technical OVIs are “measures to verify the achievement of inputs. The quality, quantity, and timing of the the goal, objective, or activity in terms of quality, inputs need to be specifi ed. quantity, cost and time”. One way of looking at OVIs is as “measures of success” or “measures Assumptions are those conditions that must be of performance”. At the activity level, OVIs often present or must occur for the project to succeed. turn out to be outputs of the activities. Later in the The risk of the assumption not happening should design process, the project’s quantitative targets be assessed in terms of probability and impact. can be set using the OVIs as units. Low probability and low impact risks can be discarded. If there are high probability and high Secondly, determine the method of measuring or impact risks that may ruin the project, the project verifying the OVIs. These usually involve collecting will have to be re-designed.

International Labour Ofﬁ ce []Ó 398 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.01 FACTOR ANALYSIS AND LOGICAL FRAMEWORK FOR PROGRAMME/PROJECT FORMULATION

Goal/Objective Objectively Veriﬁ able Indicators (OVI) Means of Veriﬁ cation (MoV) Assumptions and Risks (A&R)

GOAL: Employment growth Employment survey or comparison of number • National and international developments/ Increase Employment of employees reported by businesses applying policies that directly affect the local for business permits economy do not change radically during the project period. • No major natural disaster occurs • Expertise on employment promotion is available to the LGU.

Objective No. 1: Increase in the Number of businesses Count the number of businesses that renew Retain/Attract Employers/ Investors their licenses and new applicant businesses

Activities OVI; Outputs MoV A&R; Inputs

Improve/Build Infrastructure Cemented/paved kilometers of roads and Get data from LGU Engineer’s ofﬁ ce re roads. Budgets for national roads are available and bridges; telecommunications facilities; Obtain coverage data from telecom, water and released on time by the national gov’t. The availability of water and power power companies. LGU’s IRA and its revenue collection can fund local public works.

Make policies, taxes/fees favorable for Number of amended or new legislation that Study old and new legislation affecting Local legislation does not contradict national investment encourage new investment (e.g., investment business and see whether these are positive laws. Other LGU’s legislation can serve as code) or negative models.

Eradicate/reduce graft and corruption Reduction of cases; number of cases Court records; media coverage. National and local laws on graft and prosecuted corruption are adequate. National support for enforcement is accessible.

Add/Improve Employable Skills Number who ﬁ nish educational/training Study job market trends and compare with National budget for education/training are courses demanded by the job market. graduation data from schools and training available and released on time. Heads of institutes. education/training institutes are open to job market needs. The LGU’s IRA and its revenue collection can provide counterpart.

International Labour Ofﬁ ce []Ó 399 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.01 FACTOR ANALYSIS AND LOGICAL FRAMEWORK FOR PROGRAMME/PROJECT FORMULATION

Note the following: The above form can be extended at the activity level to include budget entries. • A&Rs that recur are a sign that these are major considerations for program/project success. Objectively Verifi able Means of Verifi cation Assumptions and Mark, summarise, and elevate them as A&R Activities Indicators(OVI); Budget for Inputs (MoV) Risks (A&R); Inputs for the next higher or Goal level. In the above Outputs example, access to national budgets and appropriate national legislation and enforcement …. …. …. …. Personnel are recurring assumptions that should be raised Maintenance and Operating to the Goal level. Costs • The above Activities are broad enough to stand as programs or projects by themselves. They Capital Expenditure can and should be further broken down into Total more specifi c activities using the same Log

Frame format. Detailed planning can then …. …. …. …. Personnel proceed. • After applying the Log Frame to the other Maintenance and Operating objectives and activities, similar activities (or Costs similar speciﬁ c activities) should be grouped Capital Expenditure together and coordination mechanisms set up to avoid duplication. Total

Once all the Log Frames have been accomplished, budgets should be calculated based on a costing of the inputs identiﬁ ed for each activity. Budgets for similar activities should be consolidated to avoid duplication and waste.

International Labour Ofﬁ ce []Ó 400 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.01 FACTOR ANALYSIS AND LOGICAL FRAMEWORK FOR PROGRAMME/PROJECT FORMULATION

Why is it important to have this logical framework? ACKNOWLEDGEMENTS CROSS-REFERENCES

• To clarify what the project is trying to do and • Logical Frameworks: An introduction for the • Tool 5.02, Information Tool: Tips on writing accomplish GCRMN Project – October 2001, A presentation project proposals • To help the project achieve its purpose and thus on the Logical Framework Approach by Jock • Tool 5.09, Assessment Tool: Impact evaluation ensure it has the most impact Campbell, IMM Ltd. The Innovation Centre, • To ensure that it achieves its purpose efﬁ ciently University of Exeter. http://www.innovation. and effectively using scarce resources in the ex.ac.uk/imm/GCRMN%20Logframe%20traini most appropriate way ng.pdf • To identify external factors that might affect the project and the achievement of its purpose • To ensure that everyone knows what he or she is supposed to do • To let everyone outside the project or organisation know what the project is trying to achieve and how • To determine the resources that will be needed to achieve the purpose

International Labour Ofﬁ ce []Ó 401 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.02 INFORMATION TOOL

TIPS ON WRITING PROJECT PROPOSALS

OBJECTIVE latter. And aside from having the same or similar HOW DO YOU START? values, mission, strategy, etc. with the proponent, This action tool explains why donors and investors they also get a RETURN. • Develop your organisation’s Values, Vision, give funds to proponents and their projects. Based Mission, Goals, Strategy, and Projects/Plans in a on this insight, the tool gives tips on how proposals WHAT DO THEY GET IN RETURN? participatory manner. should be written in way that increases likelihood • Ensure the Coherence, Clarity, and Consistency of funding. • A Sense of Satisfaction – When they fund a of the above. Measure and state your successful project, they will be satisﬁ ed both on Capabilities and Track Record. WHY DO DONORS GIVE? WHY DO a personal and on a professional level. • Put the above in an Appealing Document/ INVESTORS INVEST? • A Result/Impact that their own organisation Proposal. (or self) is supposed to achieve or contribute • Study the Values, Vision, Mission, Goals, Donors and investors provide funds because they to – Instead of their organisation having to Strategy, and Projects/Plans of potential donors/ SHARE commonalities with the proponent in terms implement the project, the proponent does it. investors. Read their annual reports, program of the following: • Information, Contacts, Public Recognition documents, and funding guidelines. to enable them to maintain or expand their • Find Compatible Donors/Investors and submit • Values interests – During and after the project, your proposal. • Vision relationships are built. • Find out who is the person in charge and get to • Mission • Economic Returns on their investment – For know him/her. • Goals investors this is the main intention. • Answer all their inquiries promptly in written • Strategy form. • Project WHAT DO YOU GET? • Follow up, again in written form, but nicely!

The more they have in common with the If you are the proponent, you should get the same proponent, the more likely they will support the things PLUS the funding.

International Labour Ofﬁ ce []Ó 402 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.02 TIPS ON WRITING PROJECT PROPOSALS

DON’T FORGET! • Transparency of Decision-Making and Regular Embassy, 2627 Roxas Blvd.,Pasay City, Metro Reporting Manila 1300 Tel. (02) 551-5710; Fax (02) 551- In the presentation of your budget, separate your: • Accountability to Benefi ciaries and Donors 5783. • DSWD’s KALAHI-CIDSS – Small Infrastructure, • Working Capital/Operating Expenses IN SUMMARY Livelihood • Fixed Assets/Equipment • Contact – Assistant Secretary Ruel Lucentales The basic ingredients for successful proposal- or your Regional DSWD Director (You must work Match the above funding requirements with the making are: through your Barangay Council.) type of funding you want to get: • Clear, Coherent, and Consistent Values, Vision, POTENTIAL DONORS/LENDERS FOR LGUS • Grant Mission, Goals, Strategy, and Projects/Plans • Equity • Clear, Simple, yet Appealing Documentation • Grant Assistance for Grassroots Projects • Loan • Regular Communication with and Evidence- (GAGP) – Small Infrastructure for Livelihood, Based Reporting (not motherhood statements) Health, Environment If you need outside help in preparing or packaging to benefi ciaries and donors • Economic Section, Japan Embassy, 2627 Roxas your proposal, don’t hesitate to get it! You can • Most of all, proof of your Capacity through Blvd., Pasay City, Metro Manila 1300; Tel. (02) easily recover your expense/investment with a Effective Project Delivery! 551-5710; Fax (02) 551-5783. successful application. • WB and ADB LGU Financing c/o Department of POTENTIAL DONORS FOR NGOS/PEOPLE’S Finance YOUR RESPONSIBILITIES ORGANIZATION/COOPERATIVES • Development Bank of the Philippines LGU Guarantee and Financing Throughout the development, submission, • Philippine-Australian Community Assistance • LGU Bonds – Rizal Commercial Banking negotiation of your proposal and the subsequent Program (PACAP) - Livelihood Corporation implementation, monitoring, and evaluation of • Contact – Ms. Georgina Domingo, Australian your project, you are responsible for the: Embassy For the contact details of the other agencies, you • Grant Assistance for Grassroots Projects may contact the NEDA Offi ce or the Department’s • Legitimacy of Social Goals and Impact (GAGP) – Small Infrastructure for Livelihood, branch in your region. In the case of banks, you Health, Environment Economic Section, Japan may contact their respective branches nearest

International Labour Ofﬁ ce []Ó 403 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.02 TIPS ON WRITING PROJECT PROPOSALS

you. It is best to contact the donors/lenders RELEVANT RESOURCES CROSS-REFERENCE directly for requirements in project proposal preparation as these change from time to time. Resource Finder by the Philippines-Canada Local • Tool 5.01, Information Tool: Factor analysis Government Support Program (LGSP) – Canadian and logical framework for programme/project ORGANISING DONOR FORUMS International Development Agency (CIDA). http:// formulation www.lgspa.org.ph/kp/c_b.php?KnowledgeProduct You may contact NEDA on how to organize donor ID=17 forums. They are the government agency in charge of Ofﬁ cial Development Assistance (ODA).

International Labour Ofﬁ ce []Ó 404 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.03 INFORMATION TOOL

THE 7 C’S OF IMPLEMENTATION: PUTTING PLANS AND PROJECTS INTO ACTION

OBJECTIVE 4. Communication of the plan and its progress to stakeholders and the public at large Questions to ask: This tool identifi es the important factors that 5. Convergence of internal plan components as affect the implementation of local development well as with other external plans and programs • What human, technical, and fi nancial plans, programs and projects. It provides some 6. Collaboration with other LGUs, government capacities are needed to achieve these practical suggestions on how to translate plans agencies, civil society, and the private sector objectives and targets? into concrete action. 7. Change the plan or its components when • What is the LGU’s present level of necessary human, technical, and fi nancial THE 7 C’S OF IMPLEMENTATION capacities? To ensure that the above factors are considered • What are the most critical capacities that After formulating local development plans, in the implementation phase, these must will ensure the attainment of objectives programs, or projects, the next challenge is to already be considered in the planning phase. and targets? implement these in the most effective and effi cient The local development plan must contain an • What internal and external resources can manner. It may be helpful to think of the following implementation strategy or a set of interrelated be tapped to build capacity? important factors in the implementation phase: activities that addresses all of the above factors.

1. Capacity, both human and ﬁ nancial, needed CAPACITY After answering the above questions, the LGU can to implement the plan formulate a capacity-building plan and integrate 2. Commitment of stakeholders to the realisation Sometimes there can be a tendency to forget this into the local plan. of the plan about the existing capacity, or lack of capacity, 3. Coordination and management of activities of the LGU to implement plans and projects. The COMMITMENT and implementers enthusiasm of stakeholders or the pressing needs of communities can overwhelm LGUs. During planning, it is advisable to review objectives and Plans are useless if there is no commitment from targets. stakeholders to translate them into action. Some

International Labour Ofﬁ ce []Ó 405 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.03 THE 7 C’S OF IMPLEMENTATION: PUTTING PLANS AND PROJECTS INTO ACTION

LGUs have used “Covenants of Commitment” the different stakeholders may be needed. Local will test the LGU’s commitment to the serious signed by all the major participants in the Planning and Development Ofﬁ cers or the Local implementation of plans. Constructive lessons planning process to commit them to the plans’ Chief Executives themselves may take on this role. from problems and failures should be the main implementation. It has also been very useful emphasis. This will make communications a to package plans into simple but attractive Coordination includes monitoring, reporting, learning activity rather than a mere propaganda documents to generate public appreciation and and possibly trouble-shooting at the objective exercise. commitment. and activity level. A simple activity chart of the overall plan should guide all implementers. Communication needs materials on which to base Part of the process of building commitment is Regular meetings to report and assess progress its messages. Reporting systems must be simple. the formal endorsement, approval, and support are necessary for proper coordination. Complex Reports must be clear and exact (with numbers). of the local development plan or project by the monitoring and evaluation systems are not Messages must be simple, clear and exact. appropriate Local Development Council and necessary. Legislative Council (Sanggunian). A budget CONVERGENCE supporting the plan is the most concrete form of commitment that has to be obtained from Questions to ask: Sometimes it is only in the implementation phase the Sanggunian or from external sources, such when common or similar activities in the plan as national government agencies, donors, • Where are we now? (In terms of objectives are “discovered”. Proper coordination requires corporations, congressmen/women, senators, etc. and targets) the internal convergence or integration of these Otherwise, the plan will remain just that, a plan. • Why? (In terms of problems and progress) common activities. Internal consistency is also • Where are we going? a must. If conﬂ ict arises during implementation, COORDINATION participatory and collegial processes can be used.

This is where the actual implementation begins. Also, similar programs, projects or initiatives of Team effort is always useful but point persons COMMUNICATION stakeholders, other LGUs, national government with clear job descriptions and responsibilities agencies, civil society, donors, private sector are essential. The buck has to stop somewhere. LGUs need not be reminded to communicate and others may be identiﬁ ed. Ideally, this should Someone has to be in charge. An overall their achievements. The challenge is how to be done during the planning phase. However, coordinator vested with the authority to mobilise communicate problems and failures. These opportunities for convergence should always

International Labour Ofﬁ ce []Ó 406 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.03 THE 7 C’S OF IMPLEMENTATION: PUTTING PLANS AND PROJECTS INTO ACTION

be recognised, used and maximised during CHANGE RELEVANT RESOURCES implementation. LGUs must always be ready to change their • Executive Agenda for Local Government – Manual The overall plan coordinator must actively identify plans if the external environment or their internal and Facilitator’s Guide, Philippines-Canada Local convergence opportunities and link up with other conditions so require. A good plan should have Government Support Program (LGSP), 2002. programs and projects to optimise results. room for some ﬂ exibility. http://www.lgspa.org.ph/kp/c_b.php?KnowledgePr oductID=1 COLLABORATION Risks, problems, and contingencies must be • Transforming the Local Economy. Kaban Galing: identiﬁ ed in the plan. During implementation, The Philippine Case Bank on Innovation and Convergence can be concretized through decisions must be made on which alternative Exemplary Practices in Good Governance, Galing actual collaboration with other LGUs, national actions to take in adjusting to a certain situation. Pook Foundation, 2001. government agencies, civil society, donors, the private sector, and other development players. It is often useful to develop a “Plan A, a Plan B, or Collaboration can also be seen as a style of work even a Plan C” to address risks and contingencies. CROSS-REFERENCES that contrasts with the top-down or even dictatorial Usually Plan A is for an optimistic scenario, Plan approach. If participation is emphasised for the B is for a “medium” scenario, and Plan C is for a • Tool 1.01, Information Tool: Local Development planning phase, collaboration is encouraged in the pessimistic scenario. and Decent Work Approach: An Overview implementation phase. • Tool 1.05, Information Tool: Ingredients for Overall, the best preparation for implementation is successful local economic and social development Among national government bodies, one often a good plan that already considers all of the above • Tool 3.01, Information Tool: The role of key hears about “inter-agency committees” and factors. stakeholders in local development councils that try to promote coordination. At the • Tool 3.02.2, Action Tool: Tips for improving local level, collaborative efforts can be encouraged collaboration and social dialogue in local through similar bodies. Some municipalities have development used the “catchment area” or watershed to form • Tool 5.06, Action Tool: Ten steps towards building “cluster” structures that enhance collaboration. public-private partnerships • Tool 5.07, Information Tool: Overseas Filipino Workers: Partners in local development

International Labour Ofﬁ ce []Ó 407 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.04 INFORMATION TOOL

OVERVIEW OF LGU FINANCING OPTIONS FOR LOCAL DEVELOPMENT

OBJECTIVE President’s Funds, Countryside Development market will be different from that needed by Funds of Legislators, and Offi cial Development an eco-tourism project. This tool discusses the broad principles and the Assistance (ODA) funds coursed through the 2. Determine whether a project needs long, general options available to Local Government national government. medium, or short term fi nancing. Match Units (LGUs) in seeking funding for their • Borrowing from public, private, and multilateral sources and uses of funds. – Classify the development projects. fi nancial institutions (World Bank, etc.), the project costs into capital expenditure, national government, and other LGUs. operating expenses, and maintenance Financing is defi ned as “supplying money for • Floating Bonds in collaboration with private or expenses. Identify the revenues to be starting, operating, and sustaining a project” government fi nancial institutions generated and, if possible, match them with (Kaban Galing 3: Transforming the Local Economy, • Entering into joint ventures with private fi rms the types of costs. The gaps will have to be 2001). and other privatisation schemes fi lled by the different terms of fi nancing. Also, calculate when a project will break-even and FINANCING OPTIONS For more information, local planners and when it will earn a surplus or profi t. development practitioners can read two parts of 3. Explore different fi nancing options. Project and The general options available to the LGU are: the Local Government Code (LGC): Title 3 – Shares calculate the effects of different combinations of Local Government Units in the Proceeds of (grants, debt, bonds, joint venture, etc.) • Using its internal funds – Internal Revenue National Taxes; and Title 4 – Credit Financing. of fi nancing schemes on the project and Allotment (IRA), revenues from local taxes, on the LGU’s fi nances. Choose the most service and user charges, etc. PRACTICAL TIPS advantageous combination. • Accessing funds from the national government 4. Consider your LGU’s ability to pay and other – budgets of national government agencies, 1. Know what you want. Start with the end in expenses you will incur. Make sure you mind. Financing is only a means to an end. have identifi ed all possible costs and risks What would you want the fi nancing to result (personnel, reserve requirements, insurance, in? The type of fi nancing needed by a public maintenance, administrative, documentation, etc.), and included these in your project cost.

International Labour Ofﬁ ce []Ó 408 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.04 OVERVIEW OF LGU FINANCING OPTIONS FOR LOCAL DEVELOPMENT

Take note that the LGC requires that “debt Inform and educate the public on the costs from the proceeds of raffl e draws they organised. servicing shall not exceed twenty percent and benefi ts of your project. (20%) of the regular income of the LGU Aside from using the equipment for its projects, concerned”. (Sec. 324[b], RA 7160) You CASE STUDIES the LGU rented these out to generate rental may have to redesign your project in scale, income of more than PhP 800,000 per year. scope and timing to match the assets you can CASE 1: USING LOCAL RESOURCES use as collateral, the revenues you need to CASE 2: CHARGING USER FEES repay debt, and your strategic development In 1992, the municipality of Muñoz, Nueva Ecija priorities. acquired its equipment pool worth PhP 36.5 The LGU of Malalag, Davao del Sur undertook a 5. Make explicit the criteria for selection. million by the Commission on Audit at a cost comprehensive review of all its programs in the Classify the criteria for selecting the fi nancing of only PhP 1.7 million. The equipment pool early 1990s. Given its tax base and the cost of option into musts (non-negotiable) and consisted of 8 dump trucks, 1 bulldozer, 2 road devolved health services, it was determined that wants (negotiable). Be transparent to avoid graders, 1 pick-up truck, 1 ambulance, 1 welding free health services could not be sustained. The controversies. machine, 1 drilling rig, 1 air compressor with municipality decided to charge socialised service 6. Take into consideration the wider environment. jackhammer, 1 jeep, and 1 electric generator. How fees based on income of the users: Study macroeconomic trends that can affect did the LGU do this? your fi nancing options – interest rates, foreign • 25 percent of a fi xed service charge for families exchange rates, national economic growth Mayor Efren Alvarez went around the government earning PhP 15,000 or less per year rates, investment prospects, fl uctuation in offi ces in province and noticed the idle equipment • 50 percent of actual service charges for families costs of major commodities, etc. These can lying around. He requested the Department of earning between PhP 15,000 and PhP 50,000 affect your costs and revenues signifi cantly. Environment and Natural Resources (DENR), per year 7. Enter into cost-sharing schemes. See if you National Irrigation Administration (NIA), and the • 100 percent of the service charge for families can share costs with other LGUs (provincial Central Luzon State University (CLSU) to donate earning more than PhP 50,000 per year and municipal) and the national government. their idle and abandoned equipment to the Muñoz 8. Look at the political angle. Anticipate public LGU. Through Memoranda of Agreement with Classifying and screening the families was diffi cult. reaction. Privatisation of critical public goods these offi ces, the equipment was transferred to The Municipal Health Offi ce took on this task. such as water and electricity can cause the LGU. The rehabilitation cost of PhP 1.7 million There was also a lot of resistance from the public. apprehension from customers and employees. was charged to the general funds of the LGU and A massive information and education campaign

International Labour Ofﬁ ce []Ó 409 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.04 OVERVIEW OF LGU FINANCING OPTIONS FOR LOCAL DEVELOPMENT

down to the purok level with Barangay Health project was called. In exchange, the stallholders • Allow the province’s resources to be used for Workers as point persons fi nally facilitated the were guaranteed a 25-year contract. During this other needs acceptance of the scheme. As with all rules, there period, the LGU would collect only PhP 1.00 per were exceptions for very poor families who were square meter per month and could only increase The privatisation agreement required lower and given free health services. this amount by a maximum of 3 percent per year. more stable water and electricity charges to Although the LGU income from rentals decreased consumers and the comprehensive rehabilitation With the scheme, the LGU was actually able to slightly through the years, the income from and upgrading of the water and power facilities. expand its health services to include elective business taxes steadily increased and more than procedures such as major surgery. It was also able made up for the decrease. CASE 5: HOUSING BONDS to facilitate medical and dental missions to poorer, remote areas. CASE 4: PRIVATISATION In 1993 the Sanggunian Bayan of Victorias, Negros Occidental passed an ordinance CASE 3: BUILD-LEASE-TRANSFER The Province of Bohol undertook a 4-year authorizing the fl otation of municipal bonds to process of strategic planning, preparation, raise money for its housing project. It issued PhP After fi re gutted the public market of San Jose tendering, selection and negotiation, litigation and 8,000,000 worth of 4-year bonds with an interest de Buenavista, Antique in 1993, the LGU was in transfer, and social marketing to implement the rate of 10 percent per annum secured by the a quandary. It was the capital and commercial privatisation of its water and electricity services. LGU’s real estate properties. The LGU also raised center of the province. If it did not reconstruct the After strategic planning, all the fi nancing options PhP 5,000,000 from the provincial government’s market quickly, the negative consequences would were studied. The provincial government selected seed fund for housing. The benefi ciaries took be tremendous. The fi nancing options available to the option of a Joint Venture on a Rehabilitate- out more than PhP 14 million in loans from the LGUs in that period were still untested and could Own-Operate-Maintain (ROOM) Agreement. This national housing fund, PAG-IBIG Fund. The take time. option would municipality redeemed the bonds on their maturity date and paid PhP 1.9 million in interest to The Mayor consulted the market vendors on • Provide fresh capital into the water and power subscribers. 146 employees of the LGU, national the choice of fi nancing scheme. What came utility of the province government agencies, and companies benefi ted out was a Build-Lease-Transfer Scheme where • Obtain the necessary engineering and from the project the stallholders shouldered a portion of the management technologies to improve construction cost of the “business park”, as the operations, and

International Labour Ofﬁ ce []Ó 410 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.04 OVERVIEW OF LGU FINANCING OPTIONS FOR LOCAL DEVELOPMENT

ACKNOWLEDGMENTS RELEVANT RESOURCES CROSS-REFERENCE

The material is largely based on the book entitled • A Guidebook on Availment of Ofﬁ cial • Tool 5.05, Information Tool: Tips in budgeting Kaban Galing 3: Transforming the Local Economy Development Assistance (ODA) for LGUs and for local developmen (2001), Galing Pook Foundation. NGOs. (1997), Ofﬁ ce of Project Development Services, Department of Interior and Local Government. • Local Government Code: Title 3 – Shares of Local Government Units in the Proceeds of National Taxes http://www.dilg.gov.ph/ LocalGovernmentCode.aspx#b2t3c1 • Local Government Code: Title 4 – Credit Financing http://www.dilg.gov.ph/ LocalGovernmentCode.aspx#S295

International Labour Ofﬁ ce []Ó 411 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.05 INFORMATION TOOL

TIPS IN BUDGETING FOR LOCAL DEVELOPMENT

OBJECTIVE OVERVIEW OF LOCAL GOVERNMENT CODE • A summary of fi nancial statements showing: PROVISIONS RELATED TO LGU BUDGETS – Actual income (Internal Revenue Allotment, This tool discusses key issues and possible actions local revenues, loans) and expenditures of that could make LGU budgets and expenditures The Local Government Code requires LGUs to the preceding year; contribute better to local development. prepare annual budgets consisting primarily of two – Actual income and expenditures of the fi rst (2) parts: two (2) quarters and estimates of the last two The information presented below was mainly taken (2) quarters; and summarised from the paper of Dr. Rosario • The estimates of income; and – Estimates of income for the succeeding year; Manasan, Decentralisation and Service Delivery • The total appropriations covering the current – Estimated expenditures for succeeding year; Study: Public Expenditure Management. operating expenditures and capital outlays – Essential facts regarding the local (Section 314[a], RA 7160) government’s obligations and indebtedness; This tool will not teach readers how to make – Summary of statutory and contractual a local budget – this topic is covered by the The budget document itself shall contain three (3) obligations; and Local Government Code and its implementing parts: – Other data disclosing the fi nancial condition mechanisms, specifi cally the Budget Operations of the local government. Manual for LGUs prepared by the Department of • A budget message from the local chief Budget and Management. executive setting forth the signifi cance of the The specifi c principles, procedures, limitations, budget in relation to the local development plan; and impositions on LGU budgets are contained in • A summary of the functions, projects, and the Local Government Code and operationalised activities to be accomplished in pursuit of the in the Budget Operations Manual for LGUs and goals and objectives of the LGU; the Department of Budget and Management – Commission on Audit (DBM-COA) Joint Circular 93-2 issued on June 8, 1993.

International Labour Ofﬁ ce []Ó 412 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.05 TIPS IN BUDGETING FOR LOCAL DEVELOPMENT

FUNDING FOR NATIONAL AND LOCAL health workers under the Magna Carta for Health SOCIAL SERVICES SECTOR GOVERNMENT FUNCTIONS Workers. LGUs are also expected to provide budgetary support to many central government LGU spending on social services (health, Section 17(b) of the LGC clearly and specifi cally agencies operating at the local level like the education, social welfare, housing, and community devolved government functions from the police, fi re protection bureau, and local courts. No development) registered a general upward trend in national to local governments. Unfortunately, wonder there is very little left for local economic 1991-2001. However, there was some stagnation, the budgets of these devolved functions did and social development. especially in health expenditures in 1998-2001. not automatically go to LGUs. Data show that This may have been due to the incomplete release the aggregate IRA grew by 15 percent yearly RECOMMENDATIONS of the IRA around that period. on the average between 1994 - 1997 while the budgets of devolved government agencies such 1. The Leagues of Provinces, Cities, and On the other hand, the increases in LGU spending as the Department of Agriculture expanded by Municipalities should work for the review and on social services may have been because they 48 percent, that of the Department of Health by possible revision of Section 17 (c) and (f) of had no choice but to absorb the cost of devolved 25 percent, and that of the Department of Social the LGC. health and social welfare personnel. This means Welfare and Development by 22 percent. This is 2. The leagues should also closely monitor and there could have been little, if any, new or because of Sections 17 (c) and (f) which allow infl uence the Congressional budgeting and additional resources spent for social services. some exceptions to 17(b). Congressmen also appropriations process to ensure that their often use Section 17(f) to maintain their control IRA will be provided the appropriate funds. ECONOMIC SERVICES SECTOR (through national government agencies) of funds for devolved functions (infrastructure, health, TRENDS IN LGU EXPENDITURES Despite the devolution of the responsibility education, etc.) that could have gone to LGUs. for local infrastructure to LGUs, spending on The budget serves to guide spending but, transportation and communication contracted by In addition, the central government has passed ultimately, it is the actual expenditures of LGUs around 20% from 1991 to 2001 when expressed on so-called unfunded mandates to LGUs. The that will (or will not) contribute to local economic as a percentage of GNP. This sub-sector bore the most important of these unfunded mandates is and social development. Manasan cites important brunt of the contraction of the share of economic the implementation of the salary standardisation trends in her study. services in LGU expenditures. Economic services law and the provision of additional benefi ts to include agriculture, natural resources, power

International Labour Ofﬁ ce []Ó 413 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.05 TIPS IN BUDGETING FOR LOCAL DEVELOPMENT

and energy, water resources, transportation and mandatory LGU positions required by the these plans consist of a simple listing of projects communications. LGC. with their corresponding cost estimates… More important, the AIPs in many LGUs do not appear PERSONAL SERVICES PLANNING-BUDGETING LINKAGE to be anchored on clear goals, strategies, and programs. They typically do not set program Across all three sectors (social, economic, and The fundamental basis of any budget is a program targets and seldom, if ever, is there an explicit general public services) spending on personal or plan. In the case of LGU budgets, these assessment of benefi ts.” services was the single biggest item. In the case are the medium-term and annual investment of municipalities, the share of personal services in programs, which in turn are based on the long- This situation poses serious challenges to the the LGU budget expanded from 46.1% in 1991 to term, medium-term, and annual socio-economic budgeting allocation process. If the plan is not 55.3% in 2001. (The maximum allowed under the development plans formulated by the Local done well, the budget and actual expenditure Local Government Code is 55 %.) This squeezed Development Councils (LDCs) (Section 109, Local cannot be expected to be done well. out resources for capital outlays, maintenance and Government Code). other operating expenses. SOME RECOMMENDATIONS However, Manasan (2003) observes that “the SOME RECOMMENDATIONS actual investment and development planning 1. Local development plans/programs need clear process at the local level is typically mayor-centric/ and specifi c goals and targets against which 1. Improve local revenue generation to augment governor-centric…. The mayor/governor would performance should be explicitly assessed. budgets for social and economic services. usually have a short list of his favourite projects These assessments should then be used to 2. Work for the establishment at the national to start with but is still open to suggestions from improve the next round of plans and budgets. level of grants programs (with specifi ed council members as well as barangay heads as There are best practices that have already service standards) especially for health, they play an important role in vote-getting during been documented, e.g., Bulacan province. education, and other socio-economic services. election time.” This is in sharp contrast to what the 2. Pay attention to the relationship between 3. Address LGU capital investment fi nancing in Code requires. budgets and programs. All activities and the design of intergovernmental transfers. positions in the LGU should be examined 4. Review the compensation and position Furthermore, “the only plan that is usually if and how these contribute to local classifi cation system as well as the list of available in many of the smaller municipalities is development, in general, and to specifi c the Annual Investment Plan (AIP). Most often,

International Labour Ofﬁ ce []Ó 414 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.05 TIPS IN BUDGETING FOR LOCAL DEVELOPMENT

programs/projects in the local development the importance of broad-based multi-sectoral EFFICIENCY and investment plans. strategic planning exercises. Local NGOs, people’s 3. Give a greater role to the Local Development organisations and national/regional government There is a mass of anecdotal evidence that Councils (LDC) in budget preparation. At agencies operating in the local area can help in LGUs do things cheaper. Costs of constructing present, the LDCs make the plans while the identifying priority needs and projects as well as classrooms and roads can go down by as much as Local Finance Committee (LFC) drafts the additional fi nancial and technical resources. 40% if done by LGUs instead of the Department budget. The plan-budget linkage requires a lot of Public Works and Highways (DPWH). The of improvement. SOME RECOMMENDATIONS difference may come from the DPWH inclusion of management overhead in its costings. LGUs PARTICIPATION 1. Activate Local Development Councils to maximise the use of its personnel particularly perform their LGC mandate in the formulation those from the Municipal/Provincial Engineers’ There are estimates that only 30-50% of LGUs of local development plans. LGSP, GOLD and offi ce. LGUs are also able to use local raw have LDCs in place. Furthermore, less than the Local Government Academy have manuals materials and labour. a third of LGUs have development plans that and other publications that are very useful for benefi ted from meaningful NGO participation. participatory planning at the LGU level. RECOMMENDATION It is not surprising, therefore, that LGU offi cials 2. Invite provincial, regional, and national do not correctly predict the preferences of their government representatives to participate in 1. Devolve more infrastructure funds for constituents. A survey in 2000 showed that LDC processes. They can advise on possible classrooms and local roads to LGUs from municipal offi cials correctly anticipate households’ projects and resources. the DPWH and other national government fi rst priority in 5 out of 10 cases while provincial 3. Improve the integration national, regional, agencies. offi cials cite the top preference only in 3 out of 10 and local development plans. This is a very cases. (IRIS 2000 as cited by Manasan, 2003) challenging task but a necessary one if efforts URGENT TECHNICAL ISSUES at local development are to be effi cient and The extensive experience of the Governance effective. The Regional Development Councils REVENUE ESTIMATES and Local Democracy (GOLD) project of USAID (RDC) are in the appropriate position to do and the Philippines-Canada Local Government this. However, they need to be reoriented to As required by the LGC, LGU budgets consist Support Program (LGSP) of CIDA emphasises adopt a more “bottom-up” approach. mainly of two parts – revenue and expenditures. Data from 1997-2001 shows that, in general,

International Labour Ofﬁ ce []Ó 415 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.05 TIPS IN BUDGETING FOR LOCAL DEVELOPMENT

estimates for local revenue generation are seldom INCREMENTAL BUDGETING Recommendation met. Shortfalls range from 5% to 15%. Estimates of the IRA, which is usually the largest contributor The incremental approach to budgeting assumes 1. Shift from incremental budgeting to to revenue also started becoming unreliable since that expenditure levels for existing programs performance-based budgeting by tightening 1998. The difference between actual releases and and sectors are appropriate. Therefore, only the link between planning and budgeting (see the estimates of the Department of Budget and incremental improvements and adjustments need previous section). Study the experience of Management (DBM) ranged from a low of 2% in to be inputted into the succeeding budget. No Bulacan province. 1999 to 15% in 2001. consideration is given to program performance and cost-effectiveness. A consistent and supportive budget is a necessary If revenue forecasts are unreliable, how can requirement for the actual implementation of LESD LGUs properly plan and implement their local The customary budget format encourages plans and projects. Monitoring budget formulation, development programs and expenditures? incremental budgeting because this simply shows approval, and disbursement is, therefore, very the amount allocated to each LGU ofﬁ ce which is important. However, other ingredients and Some recommendations then divided into personal services, maintenance conditions are also needed. The other tools can and other operating expenses, and capital hopefully address these. 1. The Bureau of Local Government Finance outlay. Although there is an increasing number (BLGF) of the Department of Finance should of LGUs who show allocations across sectors ACKNOWLEDGEMENTS take the lead in providing technical assistance and programs, only a few include information to LGUs for the collection and analysis of on targets and results that the programs are Decentralisation and Service Delivery Study: revenue data. supposed to attain. Targets and intended results Public Expenditure Management (2003), 2. Improve IRA estimates and release IRA funds are needed if LGUs are to shift from incremental to Rosario Manasan, Ph.D., Philippine Institute of in full and in a timely manner. performance-based budgeting. Development Studies

International Labour Ofﬁ ce []Ó 416 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.05 TIPS IN BUDGETING FOR LOCAL DEVELOPMENT

RELEVANT RESOURCES CROSS-REFERENCE

• Innovations and Excellence (2003), Alex • Tool.5.04, Information Tool: Overview of LGU ﬁ Brillantes, Jr., Center for Local and Regional nancing options for local development Governance, National College of Public Administration and Governance, University of the Philippines • Local Fiscal Administration (1996), Cuaresma, J.C. and Ilago, S.A., Local Government Center, College of Public Administration, University of the Philippines, Diliman, Quezon City • Philippine Public Fiscal Administration Vols. I and II (1996), Briones, L.M., Fiscal Administration Foundation, Inc. • The Local Government Code of 1991 (R.A. 7160) http://www.dilg.gov.ph/ LocalGovernmentCode.aspx#b2t3c1 • Training Modules on Budget Advocacy and Poverty Incidence Monitoring (2004), Project on “Developing Community Capacities for Pro-Poor Budgeting and Local Government Accountability for Poverty Reduction”, Caucus of Development NGO Networks (CODE-NGO) • Rules and Regulations Implementing the Local Government Code of 1991 (R.A. 7160) as Compiled by Arellano V. Busto

International Labour Ofﬁ ce []Ó 417 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.06 ACTION TOOL

TEN STEPS TOWARDS BUILDING PUBLIC-PRIVATE PARTNERSHIPS

OVERVIEW Involving local micro and small enterprises in capacity and resources are insuffi cient. In such employment-intensive service delivery is a way of cases, a triangular PPP can be pictured composed Public-private partnerships can help local increasing effi ciency and coverage while ensuring of an outside agency, the local private sector and government units (LGUs) take up the twin that livelihoods are not lost and working conditions local authorities. challenges of creating employment for the poor improved. Controlled privatisation can yield the while providing them with affordable services and advantages of a market-based economy while HOW DO THEY RELATE TO DECENT WORK? a better living environment. ensuring that the poor are not excluded from development. PPPs can be a means of helping numerous small OBJECTIVE businesses and self-employed workers operating WHAT FORMS DO THEY TAKE? in the informal economy to cross the threshold This tool towards formal recognition of their role in the PPPs are agreements between public authorities local economy. Contracts with local authorities • Identifi es the steps in building public-private and private sector bodies for the construction give them income security that is necessary for partnerships or management of public sector infrastructure further investment in equipment, protective gear, • Explains how these partnerships can be facilities or for the provision of services such social protection schemes, etc. which they and mobilised to help LGUs as water supply, drainage, road maintenance, their employees benefi t from. A clear defi nition of energy, waste management, health or education their rights and duties helps reduce corruption, using public infrastructure facilities. Contracts are avoid disputes with competitors and harassment WHY UNDERTAKE PUBLIC-PRIVATE usually awarded through a call for tenders from by the police. By organising themselves into PARTNERSHIPS (PPP)? international, national or local enterprises. This associations, they are able to obtain representation tool deals with partnerships with local enterprises, in local decision-making bodies and gain access to LGUs are entrusted with a range of responsibilities as these have been proven valuable in creating support services. under Filipino law that requires the pooling jobs and stimulating the local economy. Recourse together of local capacities and resources to to enterprises based in other regions or countries fulfi ll them in an effi cient and equitable manner. should be limited to activities for which local

International Labour Ofﬁ ce []Ó 418 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.06 TEN STEPS TOWARDS BUILDING PUBLIC-PRIVATE PARTNERSHIPS

TEN STEPS TOWARDS BUILDING PUBLIC- problem may be useful in developing the plan. 10. Monitor the provision of the service to ensure PRIVATE PARTNERSHIPS 5. Examine the regulatory framework and that all groups in the constituency are reached particularly the procurement procedures of and that users pay for the service they receive 1. Prioritise the needs of the community and the LGU and consult the stakeholders about and receive the service they pay for. select those services that require top priority in bottlenecks they have experienced. Take the current legislature. steps to simplify regulations and procurement 2. Identify the local stakeholders – micro and procedures to suit the capacities of micro and RELEVANT RESOURCES small enterprises, associations of workers, small enterprises. suppliers of raw materials, training institutions, 6. Facilitate the registration of self-help • ILO/SEED: Local Employment in the Informal etc. that are associated with providing one of associations and community-based groups that Economy: A Course Guide for staff in local those services and invite them to participate in are at present operating informally, and build governments and partnership organisations, 2001 a local stakeholder platform. their capacity to participate in the procurement http://www.ilo.org/dyn/empent/docs/F158624552/ 3. Engage the local stakeholders in mapping procedures by providing training, work space, Local%20employment%20in%20the%20Informal the current situation (needs and resources), etc. Services are often most effi ciently provided %20Economy.pdf particularly the shortfalls in service provision by members of the community themselves; this • J. Tournée, W. van Esch: Community contracts and obstacles to effi ciency. Special attention is known as ‘community contracting’. in public sector works, Practical lessons from should be given to unplanned human 7. Put out a call for tenders and ensure that the experience, ILO, 2001 http://www.ilo.org/public/ settlements that often fall outside service selection process is transparent and fair. english/employment/recon/eiip/download/ networks. The opinion of users/clients is a 8. Sign contracts with the selected enterprises community_contr.pdf valuable source of information. or community-based organisations that clearly • These are posted on the following web-site: 4. Develop a plan and budget for improving defi ne their rights and obligations, including http://www.ilo.org/seed/ service provision in consultation with the local commitments to respect public health stakeholders: Earmark the necessary funds. requirements, labour standards such as no If necessary, seek the support of relevant child labour, anti-pollution measures, etc. CROSS-REFERENCES external agencies for the implementation 9. Assist the concerned enterprises in accessing of the plan. Study tours to neighbouring credit from fi nancial institutions or community- • Tool 2.01, Assessment Tool: Territorial diagnosis barangays/municipalities that have developed based mechanisms so that they do not have to • Tool 3.01, Information Tool: The role of key innovative ways of addressing the same resort to usury. stakeholders in local development

International Labour Ofﬁ ce []Ó 419 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.07 INFORMATION TOOL

OVERSEAS FILIPINO WORKERS – PARTNERS IN LOCAL DEVELOPMENT

OBJECTIVE STATE POLICY 6. The State recognises that the ultimate protection to all migrant workers is the This tool discusses basic facts and ﬁ gures about The Migrant Workers and Overseas Filipino Act possession of skills. Overseas Filipino Workers (OFWs) and explains of 1995 (R.A. 8042) embodies the Philippine 7. The State regards non-government how their remittances can be a resource for local government’s policy on OFWs. Following are some organisations (NGOs) as partners in the development. of its important policy declarations: protection of migrant workers.

As of December 2001, there were an estimated 1. The State shall uphold the dignity of its An important international statute, which the 7.41 million Filipinos living or working abroad. citizens, whether in the country or overseas in Philippines ratifi ed, is the International Convention (Commission on Filipinos Overseas, 2002) They the pursuit of an independent foreign policy. on the Protection of the Rights of All Migrant constitute approximately 10 percent of the 2. The State shall afford full protection to labour, Workers and Members of their Families. The total population, 20 percent of the labour force local and overseas, organised or unorganised, convention collates into one instrument all the and remit almost US$ 7 billion per year. These and promote full employment and equality of human rights applicable to migrants irrespective remittances are roughly equal to 20 percent of employment opportunities for all. of their situation. In addition, the Convention total annual exports. (Panganiban, 2002) 3. The State shall apply gender-sensitive criteria specifi es additional rights for documented in the formulation of policies and programs migrants and for specifi c categories of migrants, affecting migrant workers. and mandates specifi c measures for the 4. The State shall provide migrant workers free eradication of irregular migration. (Philippine access to courts and quasi-judicial bodies. Migrants Rights Watch, 2003) 5. The State recognises the rights of migrant workers to participate in democratic decision- making processes and their right to be represented in institutions relevant to overseas employment.

International Labour Ofﬁ ce []Ó 420 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.07 OVERSEAS FILIPINO WORKERS – PARTNERS IN LOCAL DEVELOPMENT

CHARACTERISTICS OF FILIPINO LABOUR 4. Intergenerational – After more than a quarter THE CULTURE OF REMITTANCE MIGRATION century of government-supported export of labour, fathers and/or mothers work alongside In the book “Helping Build Local Economies” by On the average 2,000 to 2,500 workers depart or have been replaced by their children, Andres Panganiban (2002), the author analyses each day for overseas work. Alcid and Panganiban nephews, and nieces abroad. “the culture of remittance”. He explains the formal (2000) characterise Filipino labour migration 5. Concentrated in the USA/Canada, Asia, and and formal channels use by OFWs to send money overseas as: Saudi Arabia – See the table below. to their families. He describes how the remittances are used for investment, social obligations, and 1. Market-driven – In an era of globalisation Top Countries with a Concentration of Filipinos emergencies. He laments the situation wherein, market forces set the demand, wage levels more often than not, remittances are generally not Rank Country Population and working conditions of OFWs. The put to productive use. In the worst cases, the OFW Philippine government is moving towards fully 1 United States 2,503,417 returns home without savings and sometimes, deregulating the labour export industry. 2 Saudi Arabia 915,239 even in debt. Panganiban points out the need for 2. Feminised – An increasing number of women 3 Canada 363,707 a coherent economic development plan that will have left the country to work as nurses, 4 Japan 240,548 rationalise and maximise the productive use of domestic workers, and entertainers. In 1999, 5 Malaysia 226,479 remittances at the national and local level. they constituted 64 percent of the 237,260 6 Australia 206,803 new-hires among land-based workers. In DIRECTING REMITTANCES TOWARDS 7 Hong Kong 173,889 recent times, the demand for nurses and PRODUCTIVE USE caregivers has been increasing signiﬁ cantly. 8 UAE 166,977 3. Concentrated in the services/entertainment 9 Italy 150,429 Panganiban calls for a “cultural shift” in the OFW sector – Half of the new-hires in 1999 were 10 Singapore 128,446 towards: service workers, 91 percent of whom were 11 Taiwan 122,681

women. Professionals and technical workers Source: Commission on Filipinos Overseas, Department of Foreign 1. Internalising and operationalising the concept constituted one-third, 71 percent of whom Affairs, December 2001. of “savings for investment”. were entertainers. Ninety percent of the 2. Planning his/her monthly (e.g., household) entertainers were deployed to Japan. and long-term (e.g., housing) expenses. Based on this, s/he should determine the

International Labour Ofﬁ ce []Ó 421 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.07 OVERSEAS FILIPINO WORKERS – PARTNERS IN LOCAL DEVELOPMENT

amount s/he should save and invest. dream”. (Añonuevo, 2002) Reintegration starts cannot be ensured. These are, coincidentally, the 3. Seeking advice from professionals on how from pre-departure when the OFW and his/her same expectations of investors from the private s/he and her family can realise the targeted family set goals for the migration in the fi rst place. sector. savings and helps them identify the best The process extends to the time s/he works possible investment. The best option is to use abroad, saves money, gets emotional support from Other LGUs can do more by encouraging local the services of reputable and stable banks. his/her family, joins OFW organisations, etc. Upon banks, cooperatives and NGOs to assist OFWs in 4. Knowing the limits to his/her social obligations. return, the OFW and family need the support the latter’s remittance, savings and investment, This means learning to say “NO” to frivolous, from reintegration programs of national and local and reintegration needs. The goodwill generated consumerist, and non-productive requests for governments and NGOs. by such assistance can be tremendous. money. One tactic is to deposit remittances in accounts that are diffi cult for the family The main government program being Many OFWs donate funds to support the provision members to access. implemented is the Overseas Workers Welfare of basic infrastructure and services direct to the 5. Exploring insurance and pension options Administration’s (OWWA) Livelihood Development barangay or town where they came from. The offered by reputable and stable companies. Program for OFWs. It provides different types of mayor of Pozzorubio, Pangasinan tapped the loans to returning OFWs. NGOs like BalikaBayani energy and funds of his town mates abroad to The author names fi ve “pillars” to support this Foundation and Atikha Foundation have programs build infrastructure and provide services that his shift: that assist migrants and their families. budget could not support.

• Enterprising Migrant Workers THE ROLE OF THE LGU In money terms, the potentials can be staggering. • Families of the Enterprising Migrant Workers The families of OFWs in a barangay in Mabini, • Local Government The LGU needs to look at the OFW as a citizen- Batangas receives PhP 40 million per month in • Microﬁ nance Institutions investor. After working and being away from their remittances from Italy. Compare this with the • Civil Society Organisations families for so long, the OFW will not stay, spend, annual budget of PhP 4 million of a 5th class and invest their hard-earned money in a town municipality. Even if only a small percentage THE CHALLENGE OF REINTEGRATION that does not have basic services and facilities for of these remittances can be tapped it can go social and economic reintegration, such as health, a long way towards local economic and social “Coming home and reintegrating in one’s own education, transport, and communication. They development. community is indeed every migrant woman’s will leave if they feel that their safety and security

International Labour Ofﬁ ce []Ó 422 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.07 OVERSEAS FILIPINO WORKERS – PARTNERS IN LOCAL DEVELOPMENT

LGUs who are interested in studying the potentials • Unauthorised Migration in Southeast Asia, Commission on Filipinos Overseas of OFWs as a resource and constituency for local Graziano Batistella and Maruja Asis (Editors), Citigold Center development should look at barangay data which 2003 1345 Quirino Ave. corner South Expressway usually indicate how many families have an OFW. Manila They may also contact the Department of Labor USEFUL CONTACTS Tel: (02) 561 8321/ 561 8327 and Employment (DOLE), the Philippine Overseas Fax: (02) 561 8332 Employment Administration (POEA), and the Virgilio Angelo Email: [email protected] Overseas Workers Welfare Administration (OWWA). Administrator, OWWA Website: http://www.cfo.gov.ph Rm. 401, 4th ﬂ oor, OWWADEC Bldg. 7th cor., F.B. Harrison St. Estrella Dizon-Añonuevo RELEVANT RESOURCES Pasay City, Metro Manila Executive Director 1300 Philippines Atikha Foundation • Coming Home – Women, Migration, and Tel.: (02) 834-0148 San Pablo City Reintegration, Estrella Dizon-Añonuevo and (02) 891-7601 to 24 Loc. 5401 Tel: (049) 562 2927 Augustus Añonuevo (Editors), 2002 Fax: (02) 833-0187 • Helping Build Local Economies – A Framework E-mail: [email protected] Scalabrini Migration Center for Microﬁ nance Practitioners, Andres G. Website: http://www.owwa.gov.ph #4, 13th St. New Manila Panganiban, 2002 Quezon City • The Rights of Filipino Migrants – A Primer on Tel: (02) 724 3512/13 RA 8042 and the International Convention on Rosalinda D. Baldoz Fax: (02) 721 4296 Migrant Workers, Philippine Migrants Rights Administrator Email: [email protected] Watch, 2003 POEA Website: http://www.smc.org.ph • Directory of NGOs for Migrants in Asia, EDSA corner Ortigas Ave. Scalabrini Migration Center, 1997 Mandaluyong City, Metro Manila • Handbook for Overseas (2nd Edition), Filipinos Tel.: (02) 722-1159/ 722-63 / 724-3665 Commission on Filipinos Overseas, 2002 Fax: (02)724-3724 Email: [email protected] Website: http://www.poea.gov.ph

International Labour Ofﬁ ce []Ó 423 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.08 INFORMATION TOOL

TIPS FOR DEALING WITH EXTERNAL FACTORS

OVERVIEW plan. On the other hand, the LGU must be also ECONOMIC RISKS prepared to take advantage of opportunities that Many external factors may affect local may be available only for a limited time. Is the locality dependent on only one or a few development plans and projects. Plans may have products/services? What are its main imports to be changed because of changes within the Risks and opportunities may be classifi ed as from other localities? What are its main exports? community or because of conditions beyond the economic, political, environmental, and others. This Its imports will be negatively affected by price community. tool will attempt to provide general suggestions for increases while its exports will be negatively these different types. The user will have to consult affected by price control or reductions. OBJECTIVE other materials for more specifi c responses. What possible events in the future can negatively This tool discusses some tips as to how Local IDENTIFY RISKS AT THE PLANNING STAGE affect imports and exports? Are there competing Government Units (LGUs) and local communities suppliers to its exports? How are they doing? How can anticipate external factors – or conditions that Even in the worst cases, e.g., disasters, there is can the locality maintain the competitiveness of are beyond their control and orient their plans no substitute for preparedness. This requires the its exports? Are there alternatives to these imports accordingly. identifi cation of the possible and probable risks at and exports that can sustain economic activity in the planning stage. What political, economic, and the locality? LGUs and local communities must always ecological events in the past negatively affected be ready to change their plans if the external local communities, especially the poor? environment or their internal conditions so require. For communities that are economically dependent A good plan should have room for some fl exibility. Local planners and development practitioners need on only one or a few products, price fl uctuations at to look backward, forward, and all around them to the national or international level can affect them In general, external infl uences can present either identify these risks. After doing so, it will be useful severely. Many have been hit by fl uctuations in the risks or opportunities. Risks, problems, and to estimate or rank the probability that these will price of sugar, coconut, rice, and other agricultural contingencies that may or may not be within the occur and affect the proposed plan or project. commodities. These market forces (and control of the locality must be identifi ed in the failures) have resulted in crises that the national

International Labour Ofﬁ ce []Ó 424 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.08 TIPS FOR DEALING WITH EXTERNAL FACTORS

government has had to address because there whether it be from the province, the region, or the risks need to be formulated and incorporated into was very little that local governments could do. national level? the plan. It is often useful to develop a “Plan A, a Plan B, or even a Plan C” to address risks and Another example is the rise in the price of fuel. Can confl icts be resolved peacefully? What are the contingencies. Usually Plan A is for an optimistic This affects the whole supply chain and the prospects for political upheavals or changes at the scenario, Plan B is for a “medium” scenario, and country’s dependence on imported oil limits the provincial and national level? How will these affect Plan C is for a pessimistic scenario. possible responses at the local level. Still, local the municipality? planners need to prepare and respond. The Local Development Council (LDC) is the ENVIRONMENTAL/NATURAL RISKS mandated venue for making long-, medium-, Economic and political crises (including war) and short-term development plans. This broad- in countries employing overseas Filipino Is the locality visited by typhoons? Is it fl ood- or based body is appropriate for addressing risks workers (OFWs) can send them packing home drought- prone? What is the history and present and identifying alternatives using a multi-sectoral unexpectedly. This creates a huge unemployment condition of its forests, soil, air, water sources, approach. No single sector can face the above- crisis in the OFWs’ home communities. power sources, etc.? What are the possibilities in mentioned risks alone. the future? POLITICAL RISKS LONG-TERM OPTIONS Being in the typhoon belt of South East Asia How is the political climate in the locality? Are combined with the denudation of its forests makes Some risks cannot be dealt with in the short-term, there deep political differences between equally many areas in the Philippines both fl ood- and but require a long-term strategy and a plan of powerful forces? Or is there a “clear political drought-prone. Add to this the country’s being in action that spans several years, often beyond one majority”? the Pacifi c Ocean’s “Ring of Fire” (where several term of offi ce of LGU elected offi cials. Who are the key stakeholders whose interests volcanoes and earthquake faults are located) and affect, or are affected by, the proposed plan or you have a recipe for natural disaster. ECONOMIC project? Are they likely to oppose or support the plan? Are their interests competing with IDENTIFY ALTERNATIVES To mitigate the effects of depressed commodity each other? Who are the potential mediators in prices, LGUs have little choice but to ensure civil society and among politicians? What is the After identifying the risks, the alternatives that that their communities have access to national potential for negative outside political interference respond to, or take into account, the identifi ed and local subsidies and safety nets. This is, of

International Labour Ofﬁ ce []Ó 425 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.08 TIPS FOR DEALING WITH EXTERNAL FACTORS

course, unsustainable but necessary for the localities, the main export and contributor to They need to be always in touch with the pulse short term. LGUs need to be quick in linking up the local economy is labour (Overseas Filipino of their constituencies. This is why participatory with provincial, regional, and national bodies Workers). This is both a risk and an opportunity. It and consultative mechanisms, such as the Local that provide aid in times of emergency. Among is a risk because of the labour shortage it causes Development Councils and other multi-sectoral these bodies and agencies are the local disaster as well as the psycho-social effects (drugs, drop- bodies, are so important. coordinating agencies, the Department of Social outs, depression, new and diffi cult demographics, Welfare and Development, the National Food etc.) brought about by the separation of families. Local planners and LGU offi cials need to listen to Authority, and the provincial governments. On the other hand, it presents opportunities for and use both positive and negative feedback if increased consumption and economic investment they are to mitigate political risk. For the long term, local communities have no because of the substantial infl ow of foreign choice but to diversify economic activity and currency remittances. ENVIRONMENTAL/NATURAL decrease dependence on external inputs and markets. This is easier said than done. However, Specifi c feasibility and technical studies also No locality is an island. The 5% contingency the options are very limited. have to be made on the viability of producing fund required by the Local Government Code certain commodities, products and services at the will never be enough to address emergencies. Panganiban (2002) advocates the development community level. Natural disasters need preparedness plans that of local economies, i.e., identifying, building, include cooperation and quick communication and integrating local markets, fi nancing, and Given the usual lack of funds to undertake these with provincial, regional, and national disaster production. He cites the need to bring together types of studies, the LGU will have to scout for coordinating committees. The Department the fi nancial and social capital of LGUs, Civil resources from provincial, regional, and national of Social Welfare and Development and the Society, Overseas Filipinos and their families, government agencies or international donors. It Department of National Defense are the lead Entrepreneurs, and Rural Banks – the fi ve “pillars” may also try to pool funds from other LGUs. agencies in these committees. of local economic development. POLITICAL OPPORTUNITIES LGUs need to be proactive by conducting forward-looking and comprehensive studies Political risks require more careful analysis and Opportunities are less studied than risks in the on the economic prospects of its main imports understanding. Planners and development fi eld of development planning and management. and exports. Also, in an increasing number of practitioners need to keep their ears to the ground. This is probably because the consequences

International Labour Ofﬁ ce []Ó 426 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.08 TIPS FOR DEALING WITH EXTERNAL FACTORS

of responding (or not) to them are less clear. products, and services. No one is, of course, RELEVANT RESOURCES The consequences of not responding to, say, expected to know everything so it is always good to environmental/natural risks can be disastrous, ask for information and advice from other LGUs, • Executive Agenda for Local Government and, therefore, need to studied and prepared for. regional and national government agencies, NGOs, – Manual and Facilitator’s Guide, Philippines- entrepreneurs, and if there is access, the internet. Canada Local Government Support Program Still, it is always worthwhile to look for (LGSP), 2002 http://www.lgspa.org.ph/kp/c_b.p opportunities rather than prepare or wait for them. LOCAL DEVELOPMENT COUNCIL (LDC) hp?KnowledgeProductID=1 This entrepreneurial attitude is necessary if local • Transforming the Local Economy. Kaban Galing: communities are to survive and progress beyond The multi-sectoral character of the LDC makes The Philippine Case Bank on Innovation and the usual resource constraints of government it truly the appropriate venue for seeking Exemplary Practices in Good Governance, budgets. opportunities and addressing risks. LGUs need Galing Pook Foundation, 2001 a coalition approach to obtain and analyse • Helping Build Local Economies – A Framework Similar to the analysis of risks, an outward- and the information that is basic to understanding for Microfi nance Practitioners, Andres G. forward-looking perspective is needed to take opportunities and risks. The same approach is Panganiban, 2002 advantage of opportunities. When making studies needed to infl uence higher level government in preparation for the local development plan, agencies and the public in general on certain LGUs need to look beyond the municipality, policies and programs that impact on the LGU. province, region and even the country! They need to ask themselves: What are the economic, It would be useful to ensure that the local political, and environmental potentials outside development planning process include their locality that can positively affect their main the identifi cation and analysis of risks and resources, products, and services? opportunities. Sometimes, development plans are straightforward, wish-list types of documents that Usually, these potentials are in the form of new are accomplished just to fulfi ll the requirements of markets, new economic policies, new technology, the Local Government Code. Perhaps it is time to price changes, new contacts, new information, go beyond that. etc. The challenge is to appreciate the impact of these potentials on the localities’ main resources,

International Labour Ofﬁ ce []Ó 427 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.09 ASSESSMENT TOOL

IMPACT EVALUATION

OVERVIEW SCOPE OF IMPACT EVALUATION LOGICAL FRAMEWORK AND IMPACT EVALUATION Impact evaluation is necessary for two reasons: By defi nition, impact evaluation means comparing changes - over a period of time; before and after Tool No. 5.01 presents the Logical Framework • To judge whether an intervention, project or a project or intervention; or between a case with for programme/project formulation. According to programme has been successful or not – what a project and a similar case without a project that tool, the design of the programme or project were the outcomes as compared to stated (control). should be based on a careful analysis of the objectives? issue(s) being addressed, and that the outputs • To generate information that will feed into future Two requirements for accurate evaluation of and activities are expected, based on a logical planning, policy making and resource allocation impacts: analysis, to contribute to the achievement of objectives. OBJECTIVE • Collection of data on the baseline situation (before or without the intervention) The logical framework of the programme/ This tool discusses some guidelines for evaluating • Defi nition of how to measure the baseline and project provides the basis for planning impact impact of a project or a programme. changes - selecting the factors to look at and evaluation. The logical framework requires: (i) the the indicators that could best capture or refl ect identifi cation of objectively verifi able indicators changes in these factors and (ii) the means of verifi cation for the goal, objectives, and activities of the programme/ The choice of indicators is very important. project. Indicators and the range of methods for Indicators describe and express conditions their verifi cation must be decided upon DURING and represent some kind of simplifi cation or the formulation phase of a programme/project, approximation of a situation. Indicators must NOT AFTER the programme/project has been be clear, simple and few to keep the monitoring designed and implemented. and evaluation manageable. Quantitative and qualitative indicators may be used.

International Labour Ofﬁ ce []Ó 428 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.09 IMPACT EVALUATION

METHODS FOR IMPACT EVALUATION These methods are not mutually exclusive, but programmes and projects. This is in recognition of they can be used to complement each other. the following lessons. Conventional methods of collecting baseline data A combination of methods helps to obtain and impact evaluation are surveys and technical quantitative and qualitative data, a broad picture The level of participation and ownership by the measurements covering a wide area or a relatively of trends as well as in-depth information of community is usually a determinant of project big number of individuals or households. These processes and impact. success. Sometimes, effective communication and focus on tangible indicators. If resources are information may be the only requirements. Other limited, available secondary data can be used. BEYOND THE LOG FRAME times, it is direct and active participation in the However, the reliability of such data needs to be whole project cycle, including evaluation, which verifi ed. The main evaluation parameters that the Log may be needed. In any case, participation adds Frame helps to measure are: to the Inputs available to the project and must be Participatory methods involve people who are examined by the impact evaluation. affected by or affecting the impacts that are • Effectiveness or the attainment of, preferably, being assessed. These are effective in identifying quantitative targets specifi ed for each goal, There are unintended outcomes and impacts that intangible outcomes and unforeseen impacts. It objective, and activity. These targets can be occur outside, in spite of, or regardless of the provides opportunities for discussion and analysis in terms of outputs, outcomes, or impact. A project design. These can be positive or negative. among benefi ciaries of the programme/project, more comprehensive defi nition of effectiveness The impact evaluation should draw lessons from and, to those who are often ignored or forgotten, to includes a comparison of the Actual vs. the these outcomes and impacts. voice their views. Participatory methods mean that Intended Outcomes and Impact and an analysis the stakeholders should agree on how progress of factors for success and failure. Sustainability or the capacity of stakeholders to should be measured and fi ndings acted upon. • Effi ciency, generally defi ned as the ratio of attain Outcomes & Impact even after project ends It is a challenging process for all concerned, Outputs to Inputs. Benchmarks or standards is another major parameter of impact evaluation. as different stakeholders must examine their should be used to see if the resulting ratios The intended impact may be felt during the assumptions about what constitutes progress and are acceptable or not. Factors leading to project’s life but may completely disappear later. together deal with the contradictions and confl icts (in)effi ciencies should be identifi ed. Lack of sustainability may mean that the project that emerge. was wasted exercise. More and more, development practitioners are going beyond the Log Frame when evaluating

International Labour Ofﬁ ce []Ó 429 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.09 IMPACT EVALUATION

USING DIAGRAMS TO THINK THROUGH IMPACT AND OUTCOMES

One could use diagrams as an aid to analysing

the possible pathways of impact - from causes to Efﬁ ciency=Outputs/Inputs Unintended Outcomes problem, from intervention to expected outcomes. and Impacts O O Examples of basic diagrams are: I U U I N T T M P PROGRAM/PROJECT P C P • Tree diagram – See the Factor Tree in Tool 5.01 U U O A T Participation Community T M C • Flow diagram – shows the interrelationships S S E T between different issues, objects, and factors. S • Venn diagram – shows the common and distinct Effectiveness: Sustainability: Actual vs. Intended Stakeholder capacity to features between different elements that are Outcomes and attain Outcomes & Impact represented as overlapping circles Impact even after project ends. • Road journey – charts a journey from point A to point B, usually over time.

Diagrams provide people with a low literacy level to contribute to discussions and have their ideas and contributions documented in a way that they can But diagrams are equally helpful for planners, • Investigation through participatory methods - understand. policy makers and programme managers as a way qualitative interviewing with individuals and key of illustrating and documenting complex ideas. informants, rapid identiﬁ cation of key indicators Here is an example of a diagram on the Diagrams can be used for impact evaluation in the and issues parameters of Impact Evaluation: following ways: • Analysis of information, identiﬁ cation of ways to move forward

• Design of impact assessment – choice of

indicators, causal modelling, development of hypotheses

International Labour Ofﬁ ce []Ó 430 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.09 IMPACT EVALUATION

EVALUATING IMPACT ON DECENT WORK level, and serve as a potential source of baseline RELEVANT RESOURCES AND POVERTY data (see Tool 4.03.04). It must be noted that MBN indicators use the household as unit of Linda Mayoux, Thinking it through: Using From the perspective of Local Development and measure and do not capture poverty situation at Diagrams in Impact Assessment http://www.ids. Decent Work, it is important to assess the impact level of individuals. ac.uk/impact/resources/tools/mayoux_diagrams_ of speciﬁ c local development efforts (programmes, overview.doc projects, combination of all of these) on poverty Local-level indicators for decent work are reduction and improvements in decent work. suggested in Tool 2.02. The unit of analysis must be individuals. CROSS-REFERENCES While designing a programme/project, it is important to explain: Depending on the objectives of an intervention or • Tool 5.01, Information Tool: Factor analysis project at the local context, some or all of these and logical framework for programme/project 1. In what way the programme interventions is indicators may be used to monitor impact and formulation expected to reduce poverty or reduce decent compare changes. • Tool 2.02, Assessment Tool: How to measure work gaps, and monitor decent work gaps at local level 2. Which aspects of poverty or which decent Indicators for other aspects of decent work are • Tool 4.04.01.1, Assessment Tool: How to assess work gaps are expected to be affected by the suggested in other tools in this Resource Kit, for job quality in work places and enterprises programme, and example, the tools for assessing child labour, • Tool 4.03.04, Information Tool: Local poverty 3. How will these changes be measured vulnerability and job quality. monitoring and target-setting – the Philippine (indicators and sources of information). MBN approach To ensure that the above indicators will be used in • Tool 4.03.06.2, Assessment Tool: Assessing INDICATORS the impact evaluation, their consistency with the social risks and vulnerabilities in the local goal and objectives must be determined DURING community Minimum Basic Needs (poverty) indicators are the design phase so that they can be included in currently being collected by the barangays and the Log Frame. municipalities based on data at the household

International Labour Ofﬁ ce []Ó 431 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.10 INFORMATION TOOL

THE LOCAL GOVERNANCE PERFORMANCE MANAGEMENT SYSTEM (LGPMS)

OVERVIEW OBJECTIVE A year later, the Local Development Watch (DevWatch) was developed as an indicator-based The Local Governance Performance Management This Information Tool will provide an overview on assessment system on social well-being, economic System (LGPMS) is a self-assessment, the LGPMS and its value as a self-assessment prosperity and environmental health. DevWatch management and development tool that enables tool that LGUs can use to monitor and evaluate was fi eld-tested in 36 cities and municipalities and local governments – provinces, cities and their own development, towards improving service implemented in selected local governments. municipalities -- to determine their capabilities delivery to their constituents. and limitations in the delivery of essential public At least two signifi cant lessons were drawn services. It is neither a scorecard nor a rating BRIEF BACKGROUND from the application of the LPPMS. First, the system to “measure” specifi c LGUs and promote information it generated was limited to LGU service competition. Productivity and performance management in delivery capabilities and limitations. It could not Philippine local government started with the Local provide information on the overall administrative The LGPMS is spearheaded by the Department Productivity and Performance Measurement capabilities and development conditions of LGUs. of the Interior and Local Government, through System (LPPMS) in 1984, which was designed Second, the system could not process or manage the Bureau of Local Government Supervision and to generate information benchmarks on service information to effect real development and change DILG Regional Offi ces, in partnership with major delivery capabilities and limitations of LGUs. at the local level. stakeholders, i.e., LGU users, LGU leagues, civil society organizations, private sector organizations, The system was discontinued in 1996, and in Considering these important lessons learned, and and international development partners. 2000, the Citizens Satisfaction Index System was recognizing the evolving state of local governance, formulated to gauge client views on the reach and the LGPMS was developed to serve three primary quality of basic and essential socio-economic and purposes: environmental management services. The CSIS was fi eld-tested in several cities and municipalities • To support the development of a local in Luzon. government through the improved use of fi nancial and human resources,

International Labour Ofﬁ ce []Ó 432 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.10 THE LOCAL GOVERNANCE PERFORMANCE MANAGEMENT SYSTEM (LGPMS)

• To provide a benchmark for local government Administration service delivery provision and development performance against established standards, and 4. Development Planning condition, respectively. • To inform national policy-makers on the state of 5. Revenue Generation development in local governance 6. Resource Allocation and Utilization BENEFITS OF LGPMS TO VARIOUS 7. Financial Accountability STAKEHOLDERS PROMOTING A CULTURE OF SELF 8. Customer Service ASSESSMENT 9. Human Resource Management and The primary stakeholders of LGPMS are local Development government offi cials and functionaries. Through The development and application of the LGPMS the LGPMS, these stakeholders are provided contributed to the transformation of the paradigm Social Services with a better appreciation of the LGU’s strengths of performance measurement from a national 10. Health and Nutrition and weaknesses in service delivery. Data and information management to that of LGU self 11. Education information useful in the identifi cation of priority assessment. 12. Housing and Basic Utilities areas for improvement are also made available to 13. Peace, Security and Disaster Preparedness enable them to plan and implement appropriate LGPMS INDICATORS strategies and action plans for their constituents. Economic Development As a web-based data management system, 14. Agriculture and Fisheries Development The LGPMS offers benefi ts to other stakeholders the LGPMS enables LGUs to look into fi ve (5) 15. Entrepreneurship, Business and Industry as well: performance areas and seventeen (17) service Promotion areas: For National Government Agencies Environmental Management 1. Serves as a common national platform of Governance 16. Natural Resources Management information on local government performance, 1. Local Legislation 17. Waste Management and Pollution Control productivity and state of development 2. Transparency 2. Provides benchmarks for local government 3. Participation Within these areas are 107 pre-defi ned indicators, performance categorized as input, output and outcome 3. Provides a basis for capacity-building indicators to refl ect LGU management capacity, initiatives

International Labour Ofﬁ ce []Ó 433 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.10 THE LOCAL GOVERNANCE PERFORMANCE MANAGEMENT SYSTEM (LGPMS)

4. Identiﬁ es good local governance and ACKNOWLEDGEMENTS RELEVANT RESOURCES sustainable development practices 5. Provides a basis for strategic allocation of Department of the Interior and Local Government, For more information, contact: resources and assistance to local government LGPMS Users Manual units Bureau of Local Government Supervision (BLGS) Department of the Interior and Local Government For Civil Society Organizations and the Business (DILG) Community [email protected] 1. Serves as a medium for better awareness of http://www.blgs.gov.ph/lgpms LGU operations and challenges 2. Conveys citizen’s agenda to local government ofﬁ cials 3. Stimulates effective participation in governance

For International Development Partners 1. Provides information benchmarks for local government performance 2. Facilitates a more-focused assistance to local governments

See Annex 5.10 for a list of business/labour- related indicators in LGPMS.

International Labour Ofﬁ ce []Ó 434 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.10 THE LOCAL GOVERNANCE PERFORMANCE MANAGEMENT SYSTEM (LGPMS)

ANNEX 5.10: LGPMS BUSINESS/LABOR-RELATED INDICATORS

1.3. SERVICE AREA • Human Resource Development • Career Development 1.3.1. INPUT OR PERFORMANCE INDICATORS • Incentives and Awards System • Grievance Committee 1.3.1.3. Participation of different sectors in local governance and development • Youth and children 2.6.1.2. Effectiveness of human resource recruitment, evaluation, promotion and • Women grievance system • Agricultural or industrial workers • Workers in the informal sector RECRUITMENT • Migrant workers • Participatory – allows participation of employee representatives, as well as • Differently-abled persons other concerned • Indigenous people and cultural minorities or urban poor • individuals in the selection process • Senior citizens • Relevant – responds to the existing felt needs of the organization or ofﬁ ce where a vacancy 2.6. SERVICE AREA: HUMAN RESOURCE MANAGEMENT AND • exists as deﬁ ned in the Human Resource Management and Development DEVELOPMENT Plan • Transparent - provides for a mechanism to ensure that documents, as well 2.6.1. INPUT OR PERFORMANCE INDICATORS as processes are available for public observation and reference • Just – takes into account the protection of the interests and rights of both 2.6.1.1. Effectiveness of the Human Resource Management and Development the prospective and existing local employees and of the organization as Program well • Gender-Sensitive – gives equal opportunity to both men and women • Human Resource Planning • In accordance with existing laws or guidelines on personnel recruitment • Recruitment and Selection and selection • Performance Evaluation

International Labour Ofﬁ ce []Ó 435 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.10 THE LOCAL GOVERNANCE PERFORMANCE MANAGEMENT SYSTEM (LGPMS)

EVALUATION 2.6.2.2. Percentage of local government-initiated staff development activities • Performance appraisal is formally conducted at least twice a year for all employees A. Actual number of local government-initiated staff development activities B. Number of planned staff development activities PROMOTION Percentage of local government-initiated staff development activities (A/B • Promotions are linked to performance review and the search for most X 100%) qualiﬁ ed employees 4.2. SERVICE AREA ENTREPRENEURSHIP, BUSINESS AND INDUSTRY GRIEVANCE SYSTEM PROMOTION • Gender-Sensitive – promotes sensitivity to the needs of both men and women 4.2.1. INPUT OR PERFORMANCE INDICATORS • Just – takes into account the protection of the interests and rights of both the prospective and existing local employees and of the organization as 4.2.1.1. Effectiveness of Enterprise, Business and Industry Promotion Council well • Able to formulate a Local Entrepreneurship Development Plan as an • In accordance with existing laws or guidelines as prescribed by the Civil integral component of the Local Development Plan Service Commission • Able to advocate local policies to create an environment that is conducive to the growth and development of local enterprises 2.6.2. OUTPUT OR PRODUCTIVITY INDICATORS • Able to mobilize concerned government agencies or ofﬁ ces and private sector organizations to support the growth and development of local 2.6.2.1. Percentage of plantilla staff participating in human resource enterprises development activities • Able to provide appropriate services to local entrepreneurs

A. Number of plantilla staff participating in staff development activities 4.2.1.2 Presence of basic infrastructure and facilities in areas zoned for B. Total number of ﬁ lled-up plantilla position business and industry Percentage of plantilla staff participating in HR development activities (A/B • Physical infrastructure such as roads, bridges or ports X 100%) • Communications infrastructure whether landline or mobile • Power infrastructure • Financial infrastructure such as banks

International Labour Ofﬁ ce []Ó 436 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEW PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

TOOL No: 5.10 THE LOCAL GOVERNANCE PERFORMANCE MANAGEMENT SYSTEM (LGPMS)

4.2.1.3. Quality of the Local Investment and Incentive Code 4.2.2.2. Percentage of new enterprise, business and industry registered • Participatory in its formulation A. Number of new enterprise, business and industry that invested in the local • Identifi es priority investment areas government unit • Provides fi scal and non-fi scal incentives B. Number of enterprise, business and industry that closed • Rules and procedure are clear and facilitative of investment C. Total number of enterprise, business and industry in the local government • Supportive of the local economic agenda unit Percentage of new enterprise, business and industry registered (A-B/C x 4.2.2. OUTPUT OR PRODUCTIVITY INDICATORS 100%)

4.2.2.1. Percentage of new jobs created as a result of investment promotion of 4.2.3. OUTCOME OR STATE OF DEVELOPMENT INDICATORS the local government unit A. Total jobs that lasted for six (6) months or more and created during the 4.2.3.1. Unemployment rate proﬁ le year A. Total number of unemployed persons B. Total jobs that lasted for six (6) months or more and reported for the B. Total number of persons in the labor force preceding year Unemployment rate (A/B x 100%) Percentage of new jobs created (A-B/B x 100%) 4.2.3.2. Income per capita A. Average family income per year B. Average family size (total population / number of households) Income per capita (A/B)

International Labour Ofﬁ ce []Ó 437 Ô CONTENTS SEARCH PRINT HELP EXIT

OVERVIEWPART 1 PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEGlossary KIT FOR LOCAL DEVELOPMENT AND DECENT WORK: OBJECTIVES, USERS, CONTENT

Advocacy cases), the family and the individual; it specifi cally refers to forms of social the pursuit of infl uencing outcomes, including public policy and resource participation and engagement and the values and cultural patterns associated allocation within political, economic, and social systems and institutions - that with them; It often includes voluntary and non-profi t organisations (e.g., directly affect people’s lives NGOs, Community-based organisations), philanthropic institutions and social and political institutions.3 Assets in a balance sheet (accounting term), assets are positives and liabilities are Comparative advantage negatives. The assets of communities are “economic and social wealth that Doing what you do best. Comparative advantage is an economic theory that is relates to, or adds to the long-term net worth (of a local area).1 It includes: based on the idea that if a country excels in one particular activity – making human assets, social assets, fi nancial assets, natural assets and physical movies, for example, or growing grapes – it should be allowed to do it for assets. everyone. It is assumed that each country will fi nd some thing it is better at than the others. In this way, the country that makes the best wine can send Backward and forward linkages wine abroad and get bread, cheese, or CD-ROM in return.4 backward linkages are the interconnection of a sector to those sectors from which a business purchases inputs, and forward linkages indicate the Decentralisation interconnection of a sector to those sectors to which it sells output.2 the restructuring or reorganisation of authority so that there is a system of co-responsibility between institutions of governance at the central, regional Civil Society and local levels according to the principle of subsidiarity, thus increasing the a term used to distinguish a third sector of society, distinct from the market or overall quality and effectiveness of the system of governance, while increasing the economy and the state or government; it is ultimately about how culture, the authority and capacities at the local levels. market and state relate to each other; it is a set of institutions, organisations and groups situated between the state, the business world, the tribe (in some

1 Trousdale, W. (2004). The Manual: Strategic Planning for Local Economic Development (Vol. I: Concepts & Process), UN-Habitat and ECOPLAN INTERNATIONAL, INC. 2 Larson, D. W. and Shaw,T. K. ( 2001 ). Issues of Microenterprise and Agricultural Growth: Do Opportunities Exist Through Forward and Backward Linkages?, http://www.som.syr.edu/eee/jde/volume6-3-2001.htm 3 Trousdale, W. (2004). The Manual: Strategic Planning for Local Economic Development (Vol. I: Concepts & Process), UN-Habitat and ECOPLAN INTERNATIONAL, INC. 4 Epping, R.C (2001). A Beginner’s Guide to the World Economy, Vintage Books, New York.

International Labour Ofﬁ ce []Ó 439 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEWPART 1 PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEDecent work KIT FOR LOCAL DEVELOPMENT AND DECENT WORK:Elasticity OBJECTIVES, USERS, CONTENT opportunities for women and men to obtain adequate and productive work the measure, of how much something will change or stretch in a given in conditions of freedom, equity, security and human dignity; it can be paid situation7 ; the responsiveness of one variable to another, keeping other and unpaid, wage and self-employment, formal and informal; it refers to any factors as constant8. Elasticity of demand, for example, tells how much the means of making a living. demand for a given product will change if there is a change in the price. A shopper with a high elasticity of demand will rush out and buy a product as Discrimination soon as it goes on sale. any distinction, exclusion, restriction or preference which is based on any social group such as sex, race, colour, language, religion, political or other Employability opinion, national or social origin, property birth or other status, and which has refers to an individual’s ability to ﬁ nd, create, preserve, enrich a job or the purpose of nullifying or impairing the recognition, enjoyment or exercise occupation, and go from one to another obtaining in exchange not only an by all persons, on an equal footing of all rights and freedoms. economic reward but also a personal, social and professional satisfaction.

Economic Leakage Financial assets money circulating in a local area that is re-spent outside of the local area by the cash, monetary investments and monetary instruments used in a local residents and businesses; therefore, the money is lost from the local functioning economy9 ; includes funds of the LGU and line agencies. economy.5 Fiscal policies Economy of scale in contrast to monetary policies, which are in the hands of central bankers “Many hands make light work.” Economy of scale is an advantage that comes and other monetary authorities, a country’s ﬁ scal policies are in the hands of from making a lot of the same thing at once. Producing in large numbers the elected government, which gets to decide how much to tax, how much to means that the initial cost of investment is spread out over a large number of spend, and how much to borrow. products or services.6

5 Trousdale, W. (2004). 6 Epping, R.C (2001). 7 Epping, R.C (2001). 8 Kalra, K.B., (1995). Dictionary of Economics, Academic (India) Publishers, New Delhi. 9 Trousdale, W. (2004).

International Labour Ofﬁ ce []Ó 440 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEWPART 1 PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEGovernance KIT FOR LOCAL DEVELOPMENT AND DECENT WORK:Livelihood OBJECTIVES, USERS, CONTENT the system of values, policies and institutions by which a society manages its totality comprising the assets, the activities and the access to said assets and economic, political and social affairs through interactions within and among activities that determine the living gained by the individual or household. the state, civil society and private sector. Microfi nance Human assets the provision of fi nancial services to low-income clients, including the self- the set of knowledge and skills that an individual acquires, through training employed. Financial services generally include savings and credit; however, and experience, and that increases this individual’s value to society or in the some micro-fi nance organisations also provide insurance and payment marketplace.10 services. Put simply, microfi nance is banking with the poor.

Impact Mission effect on the lives of the people of an undertaking, project or programme. a statement of purpose which acts as a governing framework for evaluating decisions and actions; vocation. Job quality refers to a range of inter-connected employment concerns that, between Multiplier effect them, determine for each worker whether his or her experiences at work keeping money that is attracted to the local area circulating locally through the are positive or negative; includes both physical and non-physical work development of the non-basic sector is known as the “multiplier effect”. The environment. lower the multiplier, the sooner money leaves the local area, resulting in fewer jobs and less income. For example, when a foreign tourist stays at a local Liquidity hotel and spends money (tourism is a non-basic sector), it is in the interest of In the trading world, liquidity means being able to execute trades with ease. the local area to supply the hotel with goods and services, such as local art or Essentially, it means that there are enough buyers and sellers to guarantee local laundry services.12 a market. Liquidity can also mean there is a ready supply of funds. In a company balance sheet, liquidity refers to the company’s ability to come up Natural assets with the cash to pay its debts.11 the resources, living systems and ecosystem services required for a functioning economy.

10 Trousdale, W. (2004). 11 Epping, R.C (2001). 12 Trousdale, W. (2004).

International Labour Ofﬁ ce []Ó 441 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEWPART 1 PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCENet worth KIT FOR LOCAL DEVELOPMENT AND DECENT WORK:Principle OBJECTIVES, of Subsidiarity USERS, CONTENT a community’s net worth is calculated by adding up the monetary value of all functions or tasks should only be devolved to the lowest level of social assets and subtracting liabilities. organisation that is capable of completing them.

Own account workers Risks own-account workers are those workers who, working on their own account events or circumstances that expose a person or groups to possible loss or or with one or more partners, hold the type of job deﬁ ned as a self-employed injury. This term is often used interchangeably with the term vulnerability job, and have not engaged on a continuous basis any employees to work since vulnerability is deﬁ ned as susceptibility or openness to attack, being for them during the reference period. It should be noted that during the hurt or injured. Vulnerability, however, covers a broader scope since the term reference period the members of this group may have engaged employees, includes those most affected by risks together with the lack of protection provided that this is on a non-continuous basis. The partners may or may not against the negative consequences (such as loss of income and inability to be members of the same family or household.13 gain a living) of these risks.

Participatory research methods Sampling research methods which focus on the local people’s perspectives rather than in research, sampling means selecting individuals or households (elements) to on the outsider’s perspectives. serve as respondents or source of information in such a way that ﬁ ndings from these respondents could represent the total population. Persuasion an attempt to evoke a change in attitude and/or behaviour. random sampling: Each element has an equal chance of selection independent of any other event in the selection process. Physical asset the technology, machines, tools and factories of a functioning economy.14 purposive sampling: Selecting a sample on the basis of the researcher’s knowledge of the population, its elements and the nature or purpose of the research.

13 International Labour Organization (ILO) Resolutions Concerning International Classiﬁ cation of Status in Employment Adopted by the 15th International Conference of Labour Statisticians, January 1993, para. 10. 14 Trousdale, W. (2004).

International Labour Ofﬁ ce []Ó 442 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEWPART 1 PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCESocial assets KIT FOR LOCAL DEVELOPMENT AND DECENT WORK:Strategy OBJECTIVES, USERS, CONTENT the organizational aspects of society such as networks, norms, social trust that the overall scheme for attaining a vision. facilitate coordination and cooperation for mutual benefi t; includes information fl ows that provide social links and access to business, economic, social and Surplus environmental knowledge.15 occurs whenever there is more coming in than going out. A trade surplus, for example, occurs when a country sells more abroad than it imports, which Social dialogue means a foreign exchange surplus. A government budget surplus occurs refers to all types of information sharing, information exchange, consultation when tax receipts exceed expenditures.16 and negotiation among several actors and stakeholders on issues of common interest or of confl ict Tradable and non-tradable sectors tradable sectors or industries are those which actually export a considerable Social exclusion portion of its production/output (export-oriented, traded),and/or could be can be regarded as a description of individual disadvantage – a situation traded internationally at some plausible variation in relative prices (tradable where one has no access (or are denied access) to resources, goods and in export markets), and whose domestic production is substitutable with services because of rules, practices, institutions and social relationships. imports (import competing, can replace imports). Given “appropriate relative prices” it is optimal for an industry which is mainly export orientated or import Social protection competing to export all of its output or to only compete with imports on the social security which consists of public and private arrangements that help domestic market. individuals and their families cope with the negative effects (such as poor nutrition, poor health, and no education) of loss of income or loss of job. Those that fall outside of these categories are considered “non-tradable” (for example, much of produce and activities in the poor segments of the informal Stakeholders economy like artisanal products, cooked food, metal fabricated tools in small individuals and groups that have an interest in, are involved with, or affected foundries, subsistence farming and fi shing which are primarily and largely by, a policy or plan devised by government, community or business. for domestic consumption). Each country sets threshold for determining “signifi cant” levels of export-orientation and import-substitutability. Some use the commodity approach to defi ning tradables and non-tradables; others

15 Trousdale, W. (2004). 16 Epping, R.C (2001).

International Labour Ofﬁ ce []Ó 443 Ô CONTENTS SEARCH PRINT HELP EXIT OVERVIEWPART 1 PART 1 PART 2 PART 3 PART 4 PART 5 LOCAL DEVELOPMENT AND DECENT WORK RESOURCE KIT

RESOURCEuse an industry approachKIT FOR which LOCAL is more DEVELOPMENT aggregated. Tradable AND sectors/ DECENT WORK:(death, OBJECTIVES, drought) but often USERS, is induced CONTENT by the mere fact of belonging to an commodities are therefore infl uenced by global prices, tariffs on imports and ethnic group, or gender, and hence low status and limited access to social exports and other national rules governing international trade, exchange rates networks and other rules governing national currency. Watershed Value chain the total land area that contributes to the fl ow of a particular water body (e.g., a range of activities required to bring a product or service to the fi nal river, creek or stream), including the area where the water drains out; the consumer, which includes: producers, processors, input suppliers, exporters, outlet can be a dam, irrigation system or water supply take-off point; it can retailers, etc.; includes both vertical and horizontal linkages; can be defi ned be a place where the stream or river discharges into a larger water body such by a particular fi nished product or service e.g., wood furniture, fresh mangoes as a bigger river, a lake, or the sea18 ; it is a natural system whose boundary for export, etc. is determined on the ground by the highest points or ridgeline (topographic divide, separating one watershed from another) near or around a water body.19 Values the worth or priority we place on people, things, ideas, or principles; these are self-chosen beliefs and ideals infl uenced by upbringing, society and personal refl ection.17

Vision a statement of a desired future situation

Vulnerability greater exposure to risk and insecurity, often accompanying poverty and contributing to it; may be caused by lack of economic resources to protect persons/households from the effects of sudden shocks and contingencies

17 Covey, F. (1998). The Seven Habits of Highly Effective People. Franklin Covey Co. 18 The Water Resources Development Project-Water Management Improvement Component (WRDP-WMIC) Study Team (1998). The Philippines Strategy for Improved Watershed Resources Management, Forest Management Bureau- DENR. 19 ____ (1997). Forest Land Use Planning Guidelines, Natural Resource Management Project-DENR.

International Labour Ofﬁ ce []Ó 444 Ô CONTENTS SEARCH PRINT HELP EXIT