Is there a Role for Employers in Poverty Alleviation

1
Is there a Role for Employers in Poverty
Alleviation?

• Dutch Employers Cooperation Programme
• Jan Karel Bout
• Gabarone, February 22, 2007

2
Close connectionGDP growth / poverty
reduction
source Worldbank, 2002
3
Profound changes in the world economy (1)

• Shift away from the West?
• Brics
• Take-overs in Europe
• Global market place with few rules (WTO)

4
Profound changes in world economy (2)

• Internet
• The world is flat
• Countries competing for FDI
• Investment climate

5
Business climate, the actors

• Role of government
• Employers
• Labour

6
Tasks for the government

• Healthy macro-economic policy
• Infrastructure
• Rule of Law
• Education and skills
• Business climate

7
Doing businessThe World Bank criteria (1)

• Starting a business
• Dealing with licenses
• Registering property
• Hiring and firing
• Getting credit
• Protecting investors

8
Doing businessThe World Bank criteria (2)

• Paying taxes
• Trading across borders
• Enforcing contracts
• Closing business

9
Africas performance Some examples

• Ghana 82
• Ethiopia 101
• Senegal 132
• Rwanda 139
• Côte dIvoire 145
• Burkina Faso 154
• African countries mostly at bottom of the list

10
Role of Business Organisations

• The voice of business
• Defending interest of members
• The business climate No. 1
• Countervailing power for Unions
• Providing services to members

11
Characteristics effectivebusiness organisation

• Advocacy
• Representativeness
• Strategy
• Revenues
• Organisational structure

12
Tools to influence governments (1)(Economic
growth)

• Lobby government, parliament
• Communication role of media
• Press conferences, articles, interviews, etc
• Business surveys

13
Tools to influence governments (2)(Economic
growth)

• Through (large) members
• Foreign partners World Bank, embassies,
• international business organisations.
• Bi/tripartite bodies
• Etc.

14
Business is Key

• Valuable tools
• World Bank Doing Business
• Poverty Reduction Strategy Paper
• Your own business survey
• Others?

15
A virtuous circle benefits
for all

• Strong business ? influences government ?
• better business climate ? less informal economy
• higher growth and taxes ? more jobs ?
• reduced poverty ? strong business