Activation Policies for the Poor in OIC Member States
38
for the revolution. Possibly given the relative instability in the country currently, some short-term
policies have been announced, such as permanently hiring 450,000 temporary employees.68
To improve job creation in the longer term, many lower-middle income countries are pursuing
measures to promote entrepreneurship. In the case of Egypt, NGOs and international partnerships
are playing a role in supporting job creation in the longer term. For example, Forsa, a UK sponsored
initiative, supports Arab countries in transition. In Egypt, the initiative works with a local partner
called Education for Employment, which operates across the Maghreb region. Forsa has matched
would be entrepreneurs with mentors from the Egyptian community with the aim of promoting
private sector development.69 In higher income countries such as Jordan (an upper-middle income
country) and Saudi Arabia (a high income country), the King Abdullah II Award and the King Khalid
Foundation, respectively, promote the private sector.70 Other lower-middle income countries are
also promoting entrepreneurship more strongly, such as Cameroon.
When entrepreneurship schemes are successful, they can have significant impact on poverty
alleviation because they create employment not only for the entrepreneur but also, potentially, for
other workers. However, key challenges linked to this activation measure include difficulties for
entrepreneurs to access micro finance and the often high failure rates for new businesses. Many
Member States have initiatives in place to support entrepreneurs’ access to micro finance. In many
cases, micro finance schemes are set up by the government or international agencies to ensure the
poor are targeted. NGOs also play a role in advising the poor about existing provision and supporting
would be entrepreneurs with the preparation of a business case. Examples of micro finance schemes
are provided in the case studies in section 4. Areas for consideration in the provision of micro
finance as a tool for job creation include addressing the difficulties young entrepreneurs have in
accessing finance due to lacking guarantees and supporting micro finance organisations to develop
products that meet the needs of entrepreneurs.
Low income Member States
Low income countries tend to have more people susceptible to labour market shocks and at risk of
extreme poverty. Programmes are therefore required to address short-term, immediate needs.
Low income countries typically have a large agricultural sector. The seasonality of this sector means
that at certain times of the year, the availability of employment opportunities, even vulnerable
employment, can be challenging. In Bangladesh, for example, rural workers face twice yearly
employment shocks, as employment opportunities diminish before the harvests. A Public Works
Programme (PWP), the Employment Generation Program for the Poorest (EGPP) was introduced to
address this issue. PWPs are measures seen as addressing poverty by providing support in times of
temporary or chronic need.71 Under the broad category of PWPs, the EGPP is an Employment
Guarantee Scheme (EGS). It provides short-term jobs for rural labourers who would otherwise not
have any employment opportunities or source of income. The programme is financed with credit
from the International Development Agency (IDA) and aims to create 200 million work days over
three years. The programme only runs for 100 days per year, in the two lean seasons when rural day
labourers are often out of work. Eligibility criteria apply, as only households that own less than half
an acre of land, and where the head of the household is a manual labourer, can participate in EGPP.72
The EGPP has been successful in ensuring rural labourers have a source of income. However, this
income is only enough to meet basic needs, such as buying food and paying for children’s education.
The programme does not aim to provide more long-term benefits such as employment in sectors
which provide employment all year round. This is not a criticism of the programme, since its aim is
68 AfDB (2012)
69 Forsa website, available at:
70 El Abd, I. Understanding the social entrepreneurship ecosystem in Egypt
71 OECD, Policy Instrument Note 3, Public Works Programme and Social Protection, a Train4Dev / OECD DAC POVNET Joint Learning
Event: Promoting Pro-Poor Growth
72 World Bank (2012) Emergency Employment for Bangladesh’s Poorest , feature story, World Bank