Labor and Social Protection
Photo: Global Environment Facility/Flickr
Waste pickers are the principal actors in reclaiming waste for the recycling industry. Across the world, large numbers of people from low-income and disadvantaged communities make a living collecting and sorting waste, and then selling reclaimed waste through intermediaries to the recycling industry. Where others see trash or garbage, the waste pickers see paper, cardboard, glass, and metal. They are skilled at sorting and bundling different types of waste by color, weight, and end use to sell to the recycling industry. Yet waste pickers are rarely recognized for the important role they play in creating value from the waste generated by others and in contributing to the reduction of carbon emissions.
Fortunately, around the world, waste pickers have been organizing and cities have begun to promote the virtuous circle that comes with integrating waste pickers, the world’s recyclers, into solid waste management.
Brazil was the first country to integrate waste pickers, through their cooperatives, into municipal solid waste management systems and the first to adopt a National Waste Policy, recognizing the contributions of waste pickers and providing a legal framework to enable cooperatives of waste pickers to contract as service providers. The national movement of waste pickers in Brazil was awarded a contract to clean the stadiums during the World Cup.
Such pension schemes typically envisage some level of redistribution to address poverty and equity concerns. However, excessive redistribution decreases the incentive to contribute to the pension system.
An effectively functioning incentives structure is critical to encouraging workers to contribute more in return for an adequate pension at retirement. Why? Because if the right incentives are not in place, people will avoid contributing into a system that doesn’t offer more than the minimum pension – regardless of the level of contribution.
So, in terms of incentives structure, what particular challenges does Moldova face?
Imagine yourself on a comfy seat like the ones they give to ministers. But do not get too cozy as you are about to make a difficult decision. Population is aging in your country, and there simply is not enough resources to finance the pension benefits of the retirees. What should you do?
The conventional wisdom suggests that you should increase the retirement age. The argument goes as follows. People live six years longer in retirement now than half a century ago. Therefore, using some of those additional years for work is not completely unfair. By increasing the retirement age, you could increase the number of contributors while decreasing that of beneficiaries at the same time. This should provide an effective remedy for the imbalances in pension system accounts.
When the earthquake hit on the Saturday of 25th April last year, 35-year-old Bishnu Ghale was working in the fields near her house in Khanigaon VDC of Nuwakot district. The quake destroyed her house, but she was thankful her husband and three children were alive. She was thankful for a steady job, which meant she could quickly muster up the supplies to build a shelter and provide food for her family.
A month before the earthquake, Bishnu started working as a Road Maintenance Group worker, one of a group of 12 men and women who manage a 24 km stretch of rural road from Nuwakot to Malabhanjyang. She looked after the routine maintenance of the road, cleaned the drains, filled pits, cleared minor blockades and planted trees. Working 6 days a week, this earned her up to 11,000 Rupees a month, enough to keep her family going through the difficult months ahead.