Background Image
Previous Page  47 / 96 Next Page
Information
Show Menu
Previous Page 47 / 96 Next Page
Page Background

Activation Policies for the Poor in OIC Member States

39

to provide emergency support when it is most needed. However, the scheme will provide long-term

benefits such as the development of infrastructure which could indirectly lead to future job creation.

2.2.4

Summary of activation tools

Based on the evidence described above, the following general features can be described as being

necessary for the success of activation in alleviating poverty. The features presented here have been

used to inform the development of the recommendations presented later in this report:

Short-term poverty alleviation can be provided through emergency employment. However, long-

term and sustained poverty alleviation requires a longer term objective, eradicating the need for

emergency employment by supporting workers to make a sectoral shift to sectors less affected by

labour market shocks. This being said, PWPs often contribute to the achievement of long-term

objectives such as infrastructure development.

The poor must be successfully targeted by employment programmes. The EGPP, for example,

ensures only the poorest take up employment on the programme by paying wages for unskilled

workers below the market rate. Whilst young graduates are the target of youth employment

initiatives in Arabic countries such as Egypt, young graduates who remain unemployed and wait

for opportunities in the public sector are more likely to be those who can rely on their families for

financial support. Consideration must therefore also be given to moving young workers out of

informal employment, as pursued in Albania, as workers with less financial support are more

likely to accept work in this sector.

The poor must also be successfully targeted by training programmes and policies. This ensures

they are able to take advantage of new employment opportunities.

The need for successful targeting also extends to job creation. The challenge of jobless growth

illustrates that economic growth is not enough to increase employment and alleviate poverty,

even if poor workers are likely to experience some benefits through the ‘trickle down’ effect. Job

creation in modern sectors is unlikely to alleviate poverty if they are not the sectors with a high

concentration of poor workers. Employment and productivity growth must be created in sectors

with a high concentration of poor workers, usually the agricultural sector, for a strong effect on

poverty alleviation (an objective the AfDB is pursuing in Uganda). Growing, modern sectors can

then be linked to sectors where the majority of labour is concentrated to then manage sectoral

shifts, promoting longer term employment and economic growth.

73

Programmes that have been successful enough to be introduced in other OIC Member States, such

as TEPs in Albania, have fostered relationships between organisations, thereby expanding the

reach of employment services and increasing awareness amongst employers of their role in the

labour market. This could particularly be valuable in countries where the PES is constrained in

the services it can offer due to lack of funding.

73

UN, UN (2005)

The centrality of employment to poverty eradication

, Report of the Secretary-General