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Activation Policies for the Poor in OIC Member States

7

Introduction

Based on a poverty line of US$1.25 a day, nearly 350 million people in OIC Member States live in

poverty, according to available data for the period 2003-2011.

1

Earned income through employment

is usually necessary to avoid poverty. In this respect, activation of the poor is an important tool to

move out of poverty. The success of activation in addressing poverty alleviation hinges, however, on

the provision of

quality, decent

work to avoid working poverty and vulnerable employment. To

ensure the possibility of employment in quality work, consideration must be given by governments

to creating quality jobs, providing workers with the skills needed by employers, and supporting

workers in finding employment.

Activation measures target disadvantaged individuals to one extent or another. In other words, in

the last instance the aim of the activation measures is to support the people who fell into poverty as

well as to protect to people against falling into poverty. Within the target group, however, there are

certain individuals who require more extensive support to enter employment.

In low and lower middle income countries, where social safety net (SSN) systems are tend to be less

developed, activation policies towards the poor gain more importance since the SSN systems in

these countries might provide limited protection for the poor. In OIC Member States with higher

income levels and low poverty rates, social safety net systems are more developed, but activation

policies is still required. This is because a strong reliance on social assistance by jobseekers can

disincentivise employment. To one extent or another, all activation measures target disadvantaged

individuals. Activation is therefore required in Member States across income groupings.

Many OIC Member States are making a significant effort to develop their activation policies and

programmes. However, there is little research available on activation policies in Member States. This

study has therefore been carried out to report on labour market activation policies for the poor with

the aim of making recommendations regarding best practice for OIC Member States.

In terms of activation, the study considers three tools:

1

Job search support

2

Training

3

Job creation

Job search support, in the context of this study, largely refers to the services provided by the public

employment service (PES). This is because private job placement companies do not tend to offer the

same degree of tailored support as the PES, and do not tend to target the poorest. Where applicable,

private job placement companies have been referred to. However, for the most part, we have

considered it more appropriate to focus on the support available from the PES.

The report is structured as follows:

Scope

– Setting out the key concepts and definitions of activation to provide the conceptual and

policy framework for the rest of the report. The methodology used to carry out the research is

also set out.

Overview of activation in OIC Member States

– Reporting on the use of activation in OIC

Member Countries

1

COMCEC

Poverty Outlook 2014,

available at:

http://www.comcec.org/UserFiles/File/WorkingGroups/Poverty4/outlook.pdf

[accessed 10

th

December 2014].

Note: data for some low and middle-lower income countries is not available and so this number would be expected to rise slightly

when the missing data is included.