An Appro a c h to F o rma liza tio n o f the I nfo rma l E c o - - PowerPoint PPT Presentation

An Appro a c h to F

• rma liza tio n o f the I

nfo rma l E c o no my in Ja ma ic a

F

• r

malization Me e ting on E xpe r ie nc e s in L atin Ame r ic a and the Car ibbe an unde r the F OR L AC Pr

• gr

amme

20-21 Apr il, 2015, L ima, Pe r u

Pre se nte d b y K e lvin Se rg e a nt, Spe c ia list, Susta ina b le E nte rprise a nd Jo b Cre a tio n Spe c ia list

Why wa s Ja ma ic a Cho se n?

T he Ja ma ic a n e c o no my is c ha ra c te rise d b y pe rsiste nt sta g na tio n with a n a nnua l g ro wth ra te o f 0.53% o ve r the pe rio d 1999-2014 T he E c o no mic c risis o f 2008 a ffe c te d se c to rs suc h a s b a uxite , a luminium; it c a use d de c line s in re mitta nc e s a nd a ffe c te d the to urism se c to r a s we ll during tha t pe rio d. While to urism ha s re b o unde d in te rms o f a rriva ls a nd re ve nue , the o the r se c to rs ha ve no t do ne we ll Une mplo yme nt is no w a ppro xima te ly 14.2%. Yo uth une mplo yme nt is o ve r 35% ( se e c ha rt) L a rg e fisc a l de fic it a nd de b t ( o ve r 100% o f GDP) c o ntinue to a ffe c t the g o ve rnme nt T he info rma l se c to r ha s fluc tua te d b e twe e n 45% - 54% fo r de c a de s.

E c o no mic Gro wth o f Ma jo r I ndustria lise d E c o no mie s

So urc e : Glo b a l E c o no my

E c o no mic Gro wth: Re a l GDP Cha ng e

So urc e : T he Glo b a l E c o no my

Ja ma ic a Une mplo yme nt Ra te

Ja ma ic a Yo uth Une mplo yme nt

So urc e : ST AT I N

Yo uth Une mplo yme nt

So urc e : ST AT I N

I nfo rma l Se c to r in Re la tio n to GDP b e twe e n 1966-2000

So urc e : I ADB

Why Ja ma ic a (c o n’ t)

T he Ho no ura b le Ministe r o f la b o ur a nd So c ia l Se c urity in his a ddre ss to the 103rd Se ssio n o f the I L C in Ge ne va in June 2014 indic a te d:

“ We are also wo rking to re gularize and fo rmalize o ur signific ant info rmal e c o no my e stimate d to be appro ximate ly 45 pe r c e nt

• f GDP. T

ax re fo rm and e nhanc e d so c ial pro te c tio n me asure s are an impo rtant part o f this initiative .”

T he Ministe r a lso indic a te d tha t the GOJ wa s ta king pra c tic a l ste ps to a c hie ve dyna mic e ffic ie nc y in the e c o no my b y impro ving a c c e ss to c re dit, fa c ilita ting e a se o f e sta b lishing b usine ss, pursuing la b o ur ma rke t re fo rm, de ve lo ping ve nture c a pita l fra me wo rk, pro mo ting inno va tio n a nd re duc ing b ure a uc ra c y.

Pa ra lle l Studie s o n F ORL AC

T he I L O ha d a lso c o nve ne d a numb e r o f studie s o n F

• rla c

in 2013, the se we re : Po lic ie s a nd Sc he me s to pro mo te the fo rma liza tio n

• f SME

s – T rinida d a nd T

• b a g o

Go o d pra c tic e s in re duc ing info rma l e mplo yme nt in L AC – T he c a se o f St L uc ia F

• rla c - Surve y o f e mplo ye rs in the fo rma l se c to r a nd
• the r sta ke ho lde rs in Surina me

St L uc ia ’ s I nfo rma l e c o no my

Infor mal E mployme nt in Jamaic a

T he Ja ma ic a RBSA

• T

he I L O in July 2014 a llo c a te d US$325,000 fro m its RBSA to Ja ma ic a unde r the wo rk o f the ACI ’ s o n fo rma liza tio n o f the info rma l e c o no my

• T

he imple me nta tio n de a dline fo r this RBSA a llo c a tio n is 30 Se pte mb e r 2015. T he RBSA is de sig ne d to suppo rt c a pa c ity b uilding o f lo c a l c o mmunitie s to fo ste r e mplo ya b ility a nd b e tte r jo b s. T he pro g ra mme is linke d to na tio na l po lic y a s we ll a s lo c a l po lic ie s

• Unde r the I

L O- CPO, Ja m 104-Co nstitue nts ha ve ta ke n initia tive s in po lic y a re a s tha t fa c ilita te the tra nsitio n fro m info rma lity to fo rma lity

T he Ja ma ic a RBSA

• T

he Pro je c t is de sig ne d whe re b y two c o mmunitie s ha ve b e e n se le c te d – o ne urb a n (Gra nville ) a nd o ne rura l Ho rse g ua rds/ Ga rla nds).

• I

t is a pilo t pro je c t

• I

t will e na b le pro g ra mme s to b e ta ilo re d to a ddre ss the a c tua l situa tio n a t the lo c a l le ve l I t invo lve s inte r-a lia :

• re se a rc h
• pra c tic a l me a sure s fo r skills de ve lo pme nt a nd fina nc ia l suppo rt
• pra c tic a l me a sure s to suppo rt e ntre pre ne urship a nd SME

s

• c a pa c ity de ve lo pme nt o f tripa rtite institutio ns to fo ste r

e mplo ya b ility a nd de live r mo re a nd b e tte r jo b s (he nc e so c ia l dia lo g ue )

• studie s o n so c ia l pro te c tio n a nd c a pa c ity b uilding

Ac tivitie s Co nduc te d unde r F ORL AC in Ja ma ic a sinc e 2014

Be twe e n Se pte mb e r 30 – Oc to b e r 3, 2014, the I L O le d a hig h le ve l Missio n to Ja ma ic a . T he Missio n a lso me t with a numb e r o f I nstitutio ns a nd hig h le ve l pe rso ns, inc luding the Ministe r o f L a b o ur. T he o b je c tive s o f the missio n we re to :

• Ob ta in b uy-in o n the pa rt o f a b ro a de r g ro up o f na tio na l sta ke ho lde rs to

e nsure the ir invo lve me nt a nd c o mmitme nt

• I

de ntify a fo c a l-po int de sig na te d b y ML SS (who is e xpe c te d to c o -

• rdina te pro je c t imple me nta tio n), a s we ll a s ide ntify me mb e rs o f a

Sta ke ho lde r Ove rsig ht Co mmitte e

• E

nsure tha t the linka g e s with e xisting a nd pla nne d I L O inte rve ntio ns in Ja ma ic a we re ma inta ine d a nd c o rre spo nde d to na tio na l ne e ds

• I

de ntify two c o mmunitie s fo r pro je c t imple me nta tio n

• I

de ntify I nstitutio ns, c o nsulta nts a nd L

• c a l Ove rsig ht Co mmitte e s fo r e a c h
• f the two c o mmunitie s so a s to e nsure tha t the pro je c t imple me nta tio n

ta ke s into c o nside ra tio n the ne e ds o f the c o mmunitie s

• Ha ve a n unde rsta nding o f the dia g no stic info rma tio n a va ila b le , in

pa rtic ula r da ta o n the c o mmunitie s

Ac tivitie s (c o n’ t)

• T

ripa rtite Ste e ring Co mmitte e fo rme d a nd the F ORL AC po lic y initia tive wa s a do pte d in Oc to b e r 2014

• T

e rms o f Re fe re nc e we re de sig ne d fo r E XCOL S

• T

hre e c o nsulta nts we re se le c te d:

• 1. Da ta Co lle c tio n a nd Ana lysis
• 2. Na tio na l c o o rdina to r
• 3. L
• c a l e c o no mic de ve lo pme nt Co nsulta nt

Ac tivitie s Co nduc te d (Co n’ t)

• T

we nty-o ne pa rtic ipa nts

F irst E ntre pre ne urship Skills T ra ining Wo rksho p wa s he ld fo r info rma l SME s o f Gra nville o n 18- 20 No ve mb e r 2014

• 28 pe rso ns tra ine d (16 ma le s; 12 fe ma le s)
• 10 fa rme rs
• 7 Sho pke e pe rs
• 2 E

le c tric ia ns

• 3 c he f/ Ba ke rs
• 3 dre ssma ke rs
• 3 ha irdre sse rs
• 2 we lde rs

Se c o nd E ntre pre ne urship Skills T ra ining Wo rksho p wa s he ld fo r info rma l SME

• f

Ga rla nds/ Ho rse g ua rds

• n 26-28 Ja nua ry 2015

Ac tivitie s (Co n’ t)

T he third a c tivity wa s c o nduc te d in c o lla b o ra tio n with the ACS a nd the OAS I t invo lve d the fo rma tio n o f the Re g io na l Ne two rk o f Artisa ns in T

• urism o f the Gre a te r Ca rib b e a n in Mo nte g o Ba y o n Ma rc h 23,

2015 Pa rtic ipa nts re pre se nte d inc lude d Ja ma ic a (20) St L uc ia (1), Ba rb a do s (1), Me xic o (1), Pa na ma (1), Co lo mb ia (1), Nic a ra g ua (1), Gua te ma la (1), Do minic a n Re pub lic (1) Pa rtic ipa nts we re a lso e xpo se d to I L O’ s Ca pa c ity Building to o l – SI YB Pa rtic ipa nts we re e xpo se d to issue s surro unding the e a se o f do ing b usine ss Gue st pa rtic ipa nts we re invite d to sha re e xpe rie nc e s o n ho w to b e a suc c e ssful e ntre pre ne ur Pa rtic ipa nts we re a lso e xpo se d to ma te ria l o n the le g a l a spe c ts o f b usine ss re q uire d to mo ve fro m info rma l b usine ss to fo rma l o ne s

L

• c a l E

c o no mic De ve lo pme nt Co o rdina to r o f F ORL AC Pro je c t pre se nts to info rma l SME Owne rs (Ga rla nds) in Mo nte g o Ba y in Ja nua ry 2015

Pa rtic ipa nts o f E ntre pre ne urship Skills T ra ining to info rma l SME s in Ga rla nds/ Ho rse g ua rds a nd E nviro ns

L

• c a l Pre se nte r o n F
• rla c in

Ga rla nds/ Ho rse g ua rds

Me e ting o f the Re g io na l Ne two rk o f Artisa ns in T

• urism o f the Gre a te r Ca rib b e a n

Pre se nte r a t E ntre pre ne uria l Skills T ra ining Ne two rk fo r Artisa ns in T

• urism disc ussing use
• f T

e c hno lo g y in F

• rma liza tio n

Disc ussio ns a t the E nte rprise Skills T ra ining Se ssio n a nd F

• rma liza tio n fo r Artisa ns in

T

• urism

So me pro duc ts o f Artisa ns in T

• urism

se c to r o f Ja ma ic a o n Displa y

F uture Ac tivitie s unde r the pro je c t in 2015

• Co lle c tio n o f up to da te a nd re le va nt sta tistic s in the

pilo t c o mmunity

• T

ra ining o f tra ine rs in e ntre pre ne urship

• Re se a rc h a nd a wa re ne ss ra ising o n MNE

de c la ra tio n fo r e nte rprise s in the to urism se c to r a nd fo rming linka g e s with SME s.

• Stre ng the ning o f the po lic e fo rc e to ta c kle c hild la b o ur

a nd info rma lity in St Ja me s

• T

ra ining o n c o o pe ra tive s fo r yo uths in a g ric ulture a nd se rvic e s in Gra nville a nd Ga rla nds

• Asse ssme nt a nd re c o mme nda tio ns fo r MOL

to impro ve lo c a l e mplo yme nt se rvic e s

F uture Ac tivitie s unde r the pro je c t in 2015

• E

nha nc e d c a pa c ity o f e mplo ye rs’ a nd wo rke rs’

• rg a niza tio ns o n fo rma liza tio n
• T

e c hnic a l Assista nc e to Ja ma ic a Appre ntic e ship Bo a rd me mb e rs - Study to ur o f Ge rma n Appre ntic e ship syste m – T ripa rtite re pre se nta tio n

• Ca pa c ity b uilding wo rksho p o n so c ia l pro te c tio n fo r

tripa rtite c o nstitue nts

• Ge nde r- se nsitive po lic y initia tive to fa c ilita te

fo rma liza tio n to b e de ve lo pe d

• Disse mina tio n Se mina r o n F

ORL AC

• Co mmunic a tio n a nd pub lic a tio n

Re sults a c hie ve d

T e c hnic a l c a pa c ity o f info rma l SME s in pilo t c o mmunity ha ve b e e n e nha nc e d SME a rtisa ns in to urism tra ine d in e ntre pre ne urship skills a nd ma rke ting Co lla b o ra tio n b e twe e n ACS a nd OAS Ne two rk fo rme d

F urthe r I nitia tive s

Ne two rk o f SME s to b e fo rme d L inka g e s to b e fo rme d with lo c a l SME le nding c o mpa ny a nd o the r fina nc ia l institutio ns Po lic y initia tive s fro m wo rke rs’ a nd e mplo ye rs’

• rg a niza tio ns to suppo rt F
• rma liza tio n to b e

de ve lo pe d Co ntinue d po lic y re fo rm b y MOL a nd o the r g o ve rnme nt a g e nc ie s (Ministry o f T ra de , He a rt T rust NT A) to c o ntrib ute to fo rma liza tio n o f the info rma l e c o no my

Any q ue stio ns?