One out of ten people in the world —around 766 million people— still lived below the extreme poverty line in 2013. Most of them, 80 percent, live in rural areas and have very low productivity jobs. Improving jobs and earnings opportunities for these poor and vulnerable workers is at the core of the World Bank Group agenda and it requires holistic economic inclusion initiatives to move them into sustainable livelihoods.
As we discussed in our previous post, Global Value Chains can lead to the creation of more, inclusive and better jobs. . However, there is a potential trade-off between increasing competitiveness and job creation, and the exact nature of positive labor market outcomes depends on several parameters. Given the cross-border (and, therefore, multiple jurisdictive) nature of GVCs, national policy choices to strengthen positive labor outcomes are limited. However, national .
On December 14th and 15th donor and borrower country representatives of the World Bank Group will meet in Yogyakarta, Indonesia to finalize details for the 18th replenishment of IDA. The final agreement on IDA18 is expected to usher in a new era for IDA, the Bank’s fund for the poorest, dramatically increasing the level of financing and the potential for impact on development for the world’s poorest countries.
Central to the discussions on IDA over the past year has been the issue of jobs – how to deliver more jobs to meet the demands of a growing youth population; how best to improve job quality, particularly for the vast majority of workers in IDA countries who struggle in subsistence-level self-employment and other forms of informal employment; and how to make jobs more inclusive to women, youth, and populations in remote and lagging regions.
There is strong evidence that suggests that the South African tourism industry can help create a large number of secure, inclusive jobs. Despite the global financial crisis and a sector which competes on a global level, it created 48,000 jobs since 2008. Furthermore, many of these jobs are low-skilled, located in towns where there is not much other economic activity and have a higher-than-average representation of women and the youth. In addition, there are also opportunities for employees to increase their skills and their wages, so they do not remain in a low-wage, low productivity wage cycle permanently.
Yesterday 12 Pacific nations signed the Trans Pacific Partnership, the largest regional trade agreement in history. But what will this mean for workers? We speak with Krisztina Kis-Katos, a Research Fellow at IZA who has analyzed the effects of a previous round of trade liberalization on workers in Indonesia. She has found that trade liberalization and tariff reductions between 1993 and 2002, lead to an increase in workforce participation and increases in wages for the low- to mid-skilled workforce.