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International
                                        Labour
                                        Office


Working
out of poverty
in Ghana
the Ghana Decent Work Pilot Programme




National Ownership
Building Partnerships
Adding Value for People
Copyright © International Labour Organization 2004
First published 2004


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ISBN 92-2-116046-7




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Graphic art and page-setting       A43
Printed in France                  NOU
WORKING OUT OF POVERTY IN GHANA
the Ghana Decent Work Pilot Programme


Contents

In a nutshell: the Ghana Decent Work
Pilot Programme                                      p. 2

Addressing a national development priority:
Decent Work and Poverty                              p. 4

The missing link: Employment and labour issues
in the Ghana Poverty Reduction Strategy              p. 5

Making the link: Integrating Decent Work
into the Ghana Poverty Reduction Strategy            p. 7

A nationally owned programme:
Participatory planning and implementation            p. 8

Think nationally, act locally:
District Assemblies and Local Economic Development   p. 10

Towards productive and decent work in micro-
and small enterprises:
A development strategy for the informal economy      p. 13

Working out of poverty:
Elements for integrated national policies
and programmes                                       p. 15

Sustainability: Fostering partnerships               p. 18




                            1
In a nutshell: the Ghana Decent Work Pilot Programme
Working out of poverty Four of every ten Ghanaians still live in poverty. Many of them
work in agriculture, mostly as food crop farmers. Others are engaged in micro and
small enterprises, or finding a survival income as daily casual labour. Today, two thirds
of the working population outside agriculture in is active in the informal economy.
Many are persistently poor, particularly women. The Government of Ghana realizes
that there are no alternatives to gainful employment for a livelihood. What people
need to move out of poverty is a decent job.

National ownership The Government and the social partners have taken up the
challenge. The blueprint for growth and prosperity is the Ghana Poverty Reduction
Strategy (GPRS). The national partners have designed the Decent Work Pilot
Programme through which the ILO helps them to strengthen the potential of the
GPRS to generate more and better jobs.

Key policy areas selected by the national partners are: skills development, employ-
ment-intensive infrastructure, persons with disabilities, productivity improvement,
wage and income distribution. The focus is on the potential of the informal econ-
omy. Informality is often an expression of weak or inappropriate governance as well
as the result of market forces. In turn, informality keeps people poor. To break this
cycle, Governments can improve laws and regulations, and increase access to pro-
ductive resources and market opportunities for the poor. To make headway, the
right policies and programmes need to be adopted and built into the Poverty
Reduction Strategy.

Building partnerships Formulating, testing and implementing policies and pro-
grammes that will produce more and better jobs for poverty reduction requires a
variety of partners. Local and national government need to work with the social part-
ners and the private sector. The Pilot Programme is assisting in the creation of part-
nerships between public, private and social society institutions. These new partner-
ships also link local actors with national and international ones.




                                           2
Adding-value to the poverty reduction strategy The value-added by the Programme
includes a novel approach that connects national policy targets to action at the lo-
cal level. In the Central Region, two districts with a high poverty incidence are test-
ing a local economic development strategy that creates and improves jobs for the
poor. Committees for productive and gainful employment have been set up, bring-
ing together local government, elected Assembly members and local business and
social groups. They consult broadly about the economic potential and social needs
of the people living in the districts. The Committees then work with local and na-
tional government and the private sector to take forward concrete proposals to ac-
cess new markets, to expand businesses, involve local contractors in road con-
struction, strengthen women entrepreneurship, upgrade skills in small enterprises,
and to improve working conditions and productivity.




The goal By the end of 2005, the lessons from the districts will be built into a re-
vised Ghana Poverty Reduction Strategy. This will include a strategy for the infor-
mal economy, new approaches to vocational training and to job creation through
procurement policies. Together with innovative ways and greater capacity to deliver
development programmes at the local level, these policies for decent work will
translate into real benefits, enabling many more people in Ghana to work them-
selves out of poverty.




                                          3
Addressing a national development priority:
Decent Work and Poverty
With more than 7 of the then 18 million Ghanaians, classified as poor, accord-
ing to the latest Ghana Living Standards Survey (1998/99), poverty reduction is
clearly the national development priority. Like in many African countries, poverty
is concentrated in two groups. The most affected group is farmers, some 60 per
cent of whom are below the poverty line. The second ‘hot spot’ is 25-30 per cent
of the workers in the informal economy. While the share of farmers in the work-
force is declining steadily and employment in the formal sector is stagnating, the
number of those seeking to eke out a living in the informal economy is rising sig-
nificantly.

Given this trend and the long-standing experience of the ILO and its constituents
in addressing the problems there, poverty reduction in the informal economy
was chosen as the focus of the Ghana Decent Work Pilot Programme (GDWPP)
initiated in early 2003.
     Share of employment in subsectors (%)
     (Economically active population)

60

50
                                                             Export farming & food
40                                                           crop farming

30                                                           Private informal employment
                                                             & non-farm self-employment
20                                                           Public sector employment

10                                                           Private formal employment

0                                                            Non-working

                    1991 / 92           1998 / 99

     Source: GLSS 1991/92 and 1998/99




                                                                 ‘The informal economy is
                                                                 expanding rapidly, but
                                                                 many jobs have low
                                                                 productivity, generating
                                                                 low and instable incomes.’




                                         4
The missing link: Employment and labour issues in the Ghana
Poverty Reduction Strategy
Poverty is a complex problem. Tackling it effectively requires a multi-facetted
and coherent approach. Numerous policy domains and sectoral programmes
have to be integrated around this goal. These range from a favourable and sta-
ble macro-economic framework, to education, health, infrastructure, develop-
ment of enterprises and of key sectors of the economy. Access to employment
and income generation opportunities, especially for low- and middle-income
households is the link between economic growth and broad-based poverty re-
duction.

The key framework for policies and resource allocations is the Ghana Poverty
Reduction Strategy (GPRS) adopted in 2002. The Strategy for the period 2003-
2005 is intended to provide a blueprint for poverty reduction by fostering private
sector-led growth. Access to productive and gainful employment and income
generating opportunities is meant to translate economic growth into broad based
wealth creation.

The GPRS addresses most of the development challenges the country faces:
macroeconomic stability, industrial and rural development, human resources
development, vulnerable groups, and governance. A closer examination of the
Strategy nonetheless reveals a number of major gaps, which significantly limit
the prospects for achieving its goal. These relate to employment, labour, income
distribution and security, representation and voice as well as the respect of rights
as a contributing factor to development. The gaps concern the design of the
GPRS as well as the mechanisms for implementation.




                         The view of GDWPP partners:
                       Hon. J.H. Mensah, Senior Minister:

       ‘There are no alternatives to gainful employment for a livelihood.
       The difficulty has been to deliver on the promise of job creation.
                         What we need are real jobs.’
                                   (Accra, May 2004)




                                          5
Missing links in the Ghana Poverty Reduction Strategy
In order to achieve its twin goals of wealth creation and poverty reduction,
the GPRS needs to be enhanced by including:
• Employment targeting as an outcome indicator for macro-economic poli-
  cies; as a specific goal in each of its sectoral components as well as in
  the articulation of the elements such as infrastructure, rural and indus-
  trial development, enterprise and export promotion into a coherent strat-
  egy.
• Public procurement procedures that generate employment spin-off in in-
  frastructure development and promote acceptable working conditions
  through the use of labour-based methods respecting Ghanaian labour
  legislation and ILO core labour standards.
• Productivity and income distribution need to be addressed as low produc-
  tivity and very low and unstable incomes are key constraints, particularly
  for micro- and small enterprises in the informal economy and for farm-
  ers.
• An Informal economy strategy that recognizes the specific constraints of
  micro- and small enterprises, which go beyond an enabling framework
  for enterprises in the formal private sector.
• A coherent set of measures to integrate Persons with disabilities into the
  economy and society as potential contributors to growth and production
  rather than welfare cases.
In addition to a more complete and coherent strategy, there is a need for:
• Policy tools and instruments that have been successfully tested in Ghana
  and that can be used to implement policies, which maximize access to
  gainful employment and income opportunities.
• Capacity and institutional arrangements for decentralized poverty reduc-
  tion. The progress reports on the implementation of the GPRS point out
  these have been a major bottleneck and the main reason why relatively
  little headway has been made with turning districts into hubs for poverty
  reduction as intended in the Strategy.




                     The view of GDWPP partners:
Hon Yaw Barimah, Minister of Manpower Development and Employment:
  ‘Employment creation needs mainstreaming and policy coordination’
                                (Accra, May 2004)




                                       6
Making the link: Integrating Decent Work into the Ghana Poverty
Reduction Strategy
The Ghana Decent Work Pilot Programme aims at strengthening the employ-
ment creation and income generation link on which the GPRS hinges by incor-
porating relevant components of the ILO’s decent work approach into the Ghana
Poverty Reduction Strategy. This involves contributions to the design of the
GPRS as well as assisting to develop and test the policy tools and procedures. It
also includes establishing and strengthening the institutions needed for effec-
tive delivery.

The goal:

           A contribution to broad-based poverty reduction through
                  more and better jobs for men and women.



The way to achieve it:

      The Ghana Poverty Reduction Strategy integrates policies,
   programmes and tested policy instruments for relevant aspects of
                           decent work.


   ‘With improved productivity, micro- and small
   enterprises can also provide decent incomes,
   wages and better working conditions’.




                                                   7
The GDWPP systematically and coherently applies a three-stage approach to assist
ILO constituents and other national actors in the development of policies that work:

1. The starting point has been capacity building of relevant institutions and creat-
   ing a functional link between national and local levels.

2. Enhanced technical and institutional capacity is then used to develop and test ap-
   proaches and policy tools in a partnership between national institutions and two
   pilot districts.

3. The experience gained provides the basis for the formulation of and advocacy for
   policy proposals that have shown to be effective in Ghana.



The approach:


                                                     Testing of
               Capacity Building                    Approaches
                                                  and Policy Tools




                               Policy Formulation
                                 and Advocacy




A nationally owned programme:
Participatory planning and implementation
The impact and the sustainability of the Decent Work Pilot Programme will ulti-
mately hinge on the commitment and ability of the actors in national and local
government, in employers’ organizations, trade unions and in the informal econ-
omy to pursue a decent work approach to poverty reduction. They need to be
willing and able to analyse, monitor, propose and contribute to implementation.




                                         8
Accordingly, the Pilot Programme has been driven by the national ILO con-
stituents and their partners from the start: They have set the priorities during
planning workshops in late 2002, they monitor and direct progress through a
Steering Committee and they are the prime actors in implementation. Building
the capacity of national institutions in the relevant policy areas is a central goal
of the Programme.



The national partners have identified


                      Five areas for policy development:

• More and better jobs in micro- and small enterprises: a strategy to address
  the problems of the informal economy
• Skills development for gainful employment
• Maximising the employment benefits of infrastructure development
• Integration of persons with disabilities into society
• Increasing productivity and fair distribution through a wages and incomes
  policy



                         The view of GDWPP partners:

                   Adu Amankwah, Secretary-General, TUC:
    ‘The concept of decent work captures the challenges faced by Ghana.
   For the trade unions raising productivity and incomes, particularly in the
   informal economy, are central goals. The GPRS does not address these
                   concerns, except in very general terms.’
                                 (Swedru, December 2003)




                                           9
Think nationally, act locally:
District Assemblies and Local Economic Development
Taking decisions and engaging resources close to and with the participation of
those who are expected to benefit improves both governance and the effective-
ness of programmes. The Ghana Poverty Reduction Strategy recognizes that
fact. The 110 districts of Ghana, their elected District Assemblies and the local
government are supposed to play this role by drawing up district development
plans and channelling national resources.

The districts have so far met with limited success because of a lack of clarity
about their role, insufficient know-how concerning local economic development
and the absence of suitable institutions bringing together assemblies, local au-
thorities, the private sector and other members of the community.




                   Policy analysis - testing - formulation:
                      from national to local and back

  In order to ensure that policy recommendations are relevant and feasible, the
  Pilot Programme has 2 components which complement each other:
  • National policy analysis and formulation
  • Local development and testing of policies and policy tools in 2 pilot
    districts



National level             Policy analysis        Policy formulation
                                                  and advocacy


 Local level                        Development and testing




                                       10
In order to establish such institutions of dialogue and coordination, to test a lo-
cal economic development approach focussing on small enterprises and to de-
velop suitable capacity building material, the Pilot Programme has selected two
pilot districts in the Central Region. The Central Region has an incidence of
poverty that is higher than the national average and has been worsening over
the last decade. The pilot districts are:
• Awutu-Efutu-Senya, a coastal and predominantly urban district with a large and
  diverse informal economy (Capital Winneba); and
• Ajumako-Enyan-Essiam, which is land-locked and mostly rural with an informal
  economy focussing on agro-processing and services (Capital Ajumako).




                                                               Bawku
                                                  Bolgatanga
     BURKINA
                             Wa

                                                        Tamale
                                                                 Yendi

                                                                                  TOGO

     IVORY COAST
                                        GHANA
                            Sunyani


                                                 Kumasi
                              Bibiani
                                                                                     Lome
                                                              Koforidua

  Abidjan                                                                Accra
                                                    Ajumako Winneba
                                      Takoradi
                                                 Cape Coast
                                                                           Pilot districts




                                           11
Following awareness raising and training for officials, members of the assem-
blies and representatives of small businesses and the community, the two dis-
trict assemblies have established
Sub-Committees for Productive and Gainful Employment. The Committees are rec-
ognized under the Law of Local Government in Ghana. In the pilot districts they
are composed of elected members of the assemblies and representatives of
small business and civil society, including vulnerable groups.



                  Building local capacity for the promotion
                   of employment and income generation
  Capacity building has been an essential element in the establishment of the
  Sub-committees. The members and local authorities received training in:
  • the Local Economic Development approach,
  • the relevance of decent work for poverty reduction,
  • the characteristics of the informal economy and options for
    improvement,
  • generic skills such as planning, programming and organization,
  • tender procedures, for public procurement,
  • the role and functioning of small business associations.
  Capacity building has initially drawn on ILO material and courses, but taken
  care to foster local competence in this task by involving the Institute of
  Local Government Studies, which trains all local officials in Ghana and
  business development service providers such as FIT-Ghana.



The Sub-Committees serve as institutions of social dialogue and a public / pri-
vate interface at the local level. Their role is to identify local development poten-
tial, draw up a strategy for realizing this potential for inclusion into the District
Development Plans and mobilize local and national resources in support of the
plans.

Both districts have created data-bases of all small businesses. They have iden-
tified promising sectors of small enterprise development, initiated training of en-
trepreneurs and associations and are preparing feasibility studies. They are
drawing up plans to support small businesses, including joint access to health
insurance and programmes to step up productivity and upgrade working condi-
tions by low-cost improvements in the working environment and in human re-
source management. They have accessed national development resources from
the Department of Feeder Roads for two roads to be built using labour-based
methods and local workers as well as through the Skills Training and
Employment Placement programme of the Ministry of Manpower Development
and Employment.


                                         12
The view of GDWPP partners:
        George Acquah, Chairperson of Sub-Committee PGE Winneba:
      ‘I invest my time and energy in the GDWPP because it will help to
                 improve the quality of life in my community’.
                                 (Winneba, May 2004)




Towards productive and decent work in micro- and small
enterprises: A development strategy for the informal economy

A large and rapidly growing number of poor are engaged in survivalist informal
activities. Self-employed women are one of the most affected segments of the
population. For many, the informal economy has turned into a poverty trap: very
low productivity results in very low and instable incomes.

The Ghana Poverty Reduction Strategy has so far failed to adequately diagnose
the dynamics of the informal economy and devise a meaningful strategy for
poverty reduction for what is in effect the overwhelming majority of private busi-
nesses. There is now growing
recognition that the mushrooming
of informal activity is in many
cases acceptance of employment
of last resort rather than a sign of
‘flexibility’ of private sector entre-
preneurs.

Micro- and small enterprises have
been absorbing much of the oth-
erwise unemployed workforce.
They have the potential to create
large numbers of jobs with rea-
sonable levels of productivity and
income and with acceptable
working conditions. Whether this outcome is reached depends             ‘Fish processing is one of
critically on the numerous national and local policies, regulations     the small business sectors
and programmes that affect firms in the informal economy.                selected for development
                                                                        by the Sub-Committee in
                                                                        Awutu-Effutu-Senya
This element of the Pilot Programme is guided by the Resolution         district. Improvements will
concerning decent work and the informal economy adopted                 mostly help women
by the International Labour Conference in 2002. (see:http://www.        engaged in this activity.’
ilo.org/public/english/standards/relm/ilc/ilc90/pdf/pr-25res.pdf).
The Pilot Programme is thus part of the follow up to the Resolution by the ILO.




                                          13
The Pilot Programme is assisting ILO constituents to formulate and test a strat-
egy that addresses the specific needs and constraints of micro- and small en-
terprises and operators in the informal economy. These include the ‘enabling en-
vironment’ for all private enterprise, but go beyond it. They also vary for men and
for women. To survive, grow and offer reasonable and stable incomes and work-
ing conditions, the owners and workers in micro- and small enterprises need:

• Access to essential resources, in particular technical and entrepreneurial
  skills, technology and credit. In all these areas offer and delivery mechanisms
  need to be adapted to the conditions of micro- and small enterprises.

• Access to services such as market information and business training and
  counselling, but also to social security, most critically to health insurance.




           Creating the conditions for thriving small businesses

  The prospects for services and resources to be accessible and transformed
  into inputs for thriving small businesses are far greater if they are backed by:
  • Organization of small businesses allowing them to represent their inter-
    ests collectively, to cooperate and to reduce overheads by sharing re-
    sources and services.
    The Pilot Programme is working with the Trade Union Congress and the
    Ghana Employers’ Association on the delivery of services to small busi-
    nesses in the informal economy through associations.
    It is also developing tools and capacity to strengthen small business as-
    sociations
  • Local partnerships and support through district development plans and
    programmes. District assemblies can provide significant support to small
    enterprise development through by-laws, infrastructure development, in-
    vestment and access to national development resources. This kind of pri-
    vate-public partnership requires mechanisms for consultation and imple-
    mentation, which the Pilot Programme is helping to establish.
  • Impact assessment tools, which allow gauging the effect of the strategy
    and of programmes at national and local level. The Pilot Programme is
    collaborating with the University of Cape Coast to develop a district-level
    impact assessment methodology and will work with the Bank of Ghana
    and the Ghana Statistical Service on an ‘informal economy barometer’
    and the collection of information through periodic surveys.
  • Innovative forms of outreach to micro- and small enterprises through local
    radio campaigns which reach and influence the behaviour of large num-
    bers of persons at relatively low cost. See: http://
    www.ilo.org/dyn/empent/docs/F1606979783/WP65-2004.pdf




                                        14
‘New opportunities in electronics
    and information technology can be
    seized by micro- and small
    enterprises, provided they have
    access to skills, technology and
    other resources’




Working out of poverty: Elements for integrated national
policies and programmes
(1): Skills development
The ultimate goal of the Pilot Programme is to enable ILO constituents to con-
tribute to the formulation and implementation of effective poverty reduction poli-
cies and programmes. Hands-on capacity building linked to their current work
priorities is therefore essential.

The Ministry of Manpower Development and Employment is responsible for the
development of vocational skills and facilitating access to employment opportu-
nities, in particular for unemployed youth. An important tool for the Ministry is
the Skills Training and Employment Placement (STEP) programme, which is
funded under the Ghana Poverty Reduction Strategy.

The Pilot Programme is assisting the Ministry by strengthening its capacity in
project formulation, management, monitoring and evaluation. For the forthcom-
ing revision of the GPRS, it is working with the Ministry to draw lessons from the


                                        15
experience and to further develop the STEP approach so it can extend its cov-
erage and become a bridge from often rudimentary school education to gainful
employment in small enterprises through suitable guidance, vocational and en-
trepreneurship training, access to business development services and credit.
The STEP programme needs to:
    • be demand-driven, offer short courses imparting readily employable skills,
    • cater for young men and women,
    • devise ways to include persons with limited literacy and numeracy,
    • increase coverage by redefining the roles of traditional apprenticeships
      with master-craftsmen and – women and of formal training institutions re-
      spectively.
New elements of the approach and modalities for delivering training and entre-
preneurship promotion packages are developed with the Ministry and tested in
the pilot districts.




                                                                 ‘Access to skills and other
                                                                 resources and services is
                                                                 often difficult for women
                                                                 entrepreuneurs, starting
                                                                 with functional literacy’.
                                                                 [Photo UNFPA]




                      The view of programme partners:
                   Hon. Dr. Angela Lamensdorf Offori-Atta,
           Dep Minister of Manpower Development and Employment:
     ‘This course [organized under the GDWPP for staff of the Ministry] really
        gives us skills we can apply in our work. It has also convinced me
             that we need to work with the districts to implement our
                          vocational training programme.’
                                   (Ho, August 2003)




                                         16
(2): Integration of persons with disabilities
The Department of Social Welfare of the Ministry has drawn up a strategy for the
inclusion of persons with disabilities into the economy and into society with the
help of the Pilot Programme. Persons with disabilities form a major group among
the poor. Designed in cooperation with the Ghana Federation of the Disabled,
the new strategy advocates a departure from the welfare and charity approach.
Many persons with disabilities can and want to contribute to production and eco-
nomic activity. Their inclusion does not only respect the rights of persons with
disabilities. It is also economically and socially more effective. The Department
is currently working to incorporate this approach into the GPRS revision.




‘Labour-based methods
       for infrastructure
   development are not
     only cost-effective,
  they also create many
      job opportunities’




(3): Infrastructure development and employment promotion
Infrastructure development is widely recognized as an indispensable element of
poverty reduction strategies. The GPRS mobilizes very substantial resources, in
particular for roads. Many of the construction and maintenance works can be
carried out cost-effectively and to high quality standards using labour-based
methods. The use of local labour and materials injects significant cash into local
economies. Studies suggest that the more than US$ 70 million/year that will be
invested in feeder roads projects alone in Ghana could translate into more than
17,000 direct employments if labour-based methods are used. Works can also
offer decent working conditions in line with national labour legislation. The em-
ployment and income generation potential of infrastructure is not fully used in
Ghana because of tendering and contracting procedures that de facto exclude
many labour-based firms. The Ministries of Manpower Development and of
Roads and Transport have enlisted the support of the Pilot Programme to draw
up a policy brief to be submitted to the Cabinet of Ministers to enhance the em-
ployment and poverty reduction benefits of infrastructure projects.




                                       17
(4): Productivity, wages and income
Increasing productivity and distributing the benefits widely through wages and
work-related income is a key factor in effective poverty reduction. The Ghana
Employers’ Association and the Trade Union Congress have been focussing on
options for productivity improvements at the firm and sectoral level and on an ap-
propriate wages and incomes policy. Concerning these and other issues, the so-
cial partners intend to play a more active role in the revision of the GPRS than
during its original formulation.

In addition to policy formulation and advocacy, both social partners are seeking
to extend their role in organization and representation of entrepreneurs and work-
ers in the informal economy. With the support of the Pilot Programme they are
expanding their capacity to provide relevant services to the informal economy.



Sustainability: Fostering partnerships
Working out of poverty is a complex task that requires commitment and contri-
butions from many stakeholders. The Pilot Programme therefore fosters partner-
ships and alliances not only among the tripartite ILO constituents, Ministry of
Manpower Development and Employment, Ghana Employers’ Association and
Trade Union Congress, but also with other important stakeholders.

These include national actors such as the National Development Planning
Commission and the Ministries of Local Government and Rural Development,
Trade and Industry, Finance and Planning, Roads and Transport as well as the
Central Bank and the District Assemblies as the vital link to the local level. It also
seeks to engage with international development partners including UNDP, the
World Bank and bilateral donors.




                                                                    ‘Vital partnerships are
                                                                    being forged between
                                                                    government, the social
                                                                    partners, the private
                                                                    sector and civil society as
                                                                    well as between local,
                                                                    national and international
                                                                    stakeholders’.




                                         18
National support institutions play a vital role in providing technical support and
expanding national capacity to operationalize decent work for poverty reduction.
They include: the Institute of Local Government Studies, Business Development
Service providers and specialized consultants such as EMPRETEC, FIT and
ISODEC, civil society organizations like the Ghana Federation of the Disabled, as
well as research institutions including ISSER (Institute of Statistical, Social and
Economic Research) and Cape Coast University.

Finally, the Pilot Programme has fostered a new kind of partnership between ILO
field offices, technical units at Headquarters and the ILO’s International Training
Centre in Turin, integrating the four dimensions of decent work: rights, employ-
ment, social protection, social dialogue and representation.

International development partners include UNDP Ghana, DFID UK and the
Government of the Netherlands, which has provided much of the funding for the
Ghana Decent Work Pilot Programme.

The process has facilitated the creation of new partnerships and networks and
enhanced social dialogue in national policy formulation.



                       The view of programme partners:

                            Ms Rose Karikari Anang,
                 Chief Executive, Ghana Employers’ Association:

    ‘The tripartite structure of the Programme has enabled us, the ILO con-
            stituents, collectively to influence national policy-making’.
                                  (Geneva, November 2003)




The goal
By the end of 2005, the lessons from the Districts will be built into a revised Ghana
Poverty Reduction Strategy. This will include a strategy for the informal economy,
new approaches to vocational training and to job creation through procurement
policies. Together with innovative ways and greater capacity to deliver development
programmes at the local level, these policies for decent work will translate into real
benefits, enabling many more people in Ghana to work themselves out of poverty.




                                            19
Decent Work Pilot Programme: an ILO initiative to
         operationalize decent work in member countries
The Decent Work Pilot Programme was initiated by Juan Somavía, the
Director General of the ILO, in October 2000 to pioneer ways in which the
concept of decent work can be effectively promoted and applied in ILO
member countries. The Pilot Programme aims at strengthening national
capacity to integrate decent work into national policies. In addition to
Ghana, seven countries are currently participating in the Programme:
Bahrain, Bangladesh, Denmark, Kazakhstan, Morocco, Panama and the
Philippines. The lessons of the Pilot Programme countries are being used
to introduce Decent Work Country Programmes in most ILO member states
in the coming years.




                                   20
For further information,
please visit the following websites or contact our offices:

Websites:
• Decent Work Pilot Programme:
  http://www.ilo.org/public/english/bureau/dwpp
• Working out of poverty:
  http://www.ilo.org/public/english/standards/relm/ilc/ilc91/pdf/rep-i-a.pdf
• The ILO and Poverty Reduction Strategy Papers:
  http://www.ilo.org/public/english/bureau/exrel/partners/prsp/prsp-dwapr.htm

Contacts:
• ILO – Ghana Decent Work Pilot Programme Office
  PMB, Ministries
  Accra, Ghana
  Tel: +233 21 681 806
  Cell: + 233 244 321 186
  E-mail: Kwaminamoasi@yahoo.com

• ILO Area Office for Nigeria, Ghana, Sierra Leone and Liberia
  188 Awolowo Road
  Ikoyi, Lagos
  Nigeria
  Tel: 234 1 2693916/7
  Fax: 234 1 2690717
  E-mail: dzakpasu@ilo.org

• National Policy Group
  Policy Integration Department
  International Labour Office
  4, route des Morillons
  1211 Geneva 22, Switzerland
  Tel: + 41-22-799 6437
  Fax: +41 22 799 6977
  E-mail: npg@ilo.org

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Ilo working out of poverty

  • 1. International Labour Office Working out of poverty in Ghana the Ghana Decent Work Pilot Programme National Ownership Building Partnerships Adding Value for People
  • 2. Copyright © International Labour Organization 2004 First published 2004 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authoriza- tion, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Publications Bureau (Rights and Permissions), International Labour Office, CH- 1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. Libraries, institutions and other users registered in the United Kingdom with the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP [Fax: (+44) (0)20 7631 5500; email: cla@cla.co.uk], in the United States with the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923 [Fax: (+1) (978) 750 4470; email: info@copyright.com] or in other countries with associated Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose. ISBN 92-2-116046-7 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorse- ment by the International Labour Office, and any failure to mention a particular firm, commercial prod- uct or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: pubvente@ilo.org Visit our website: www.ilo.org/publns Graphic art and page-setting A43 Printed in France NOU
  • 3. WORKING OUT OF POVERTY IN GHANA the Ghana Decent Work Pilot Programme Contents In a nutshell: the Ghana Decent Work Pilot Programme p. 2 Addressing a national development priority: Decent Work and Poverty p. 4 The missing link: Employment and labour issues in the Ghana Poverty Reduction Strategy p. 5 Making the link: Integrating Decent Work into the Ghana Poverty Reduction Strategy p. 7 A nationally owned programme: Participatory planning and implementation p. 8 Think nationally, act locally: District Assemblies and Local Economic Development p. 10 Towards productive and decent work in micro- and small enterprises: A development strategy for the informal economy p. 13 Working out of poverty: Elements for integrated national policies and programmes p. 15 Sustainability: Fostering partnerships p. 18 1
  • 4. In a nutshell: the Ghana Decent Work Pilot Programme Working out of poverty Four of every ten Ghanaians still live in poverty. Many of them work in agriculture, mostly as food crop farmers. Others are engaged in micro and small enterprises, or finding a survival income as daily casual labour. Today, two thirds of the working population outside agriculture in is active in the informal economy. Many are persistently poor, particularly women. The Government of Ghana realizes that there are no alternatives to gainful employment for a livelihood. What people need to move out of poverty is a decent job. National ownership The Government and the social partners have taken up the challenge. The blueprint for growth and prosperity is the Ghana Poverty Reduction Strategy (GPRS). The national partners have designed the Decent Work Pilot Programme through which the ILO helps them to strengthen the potential of the GPRS to generate more and better jobs. Key policy areas selected by the national partners are: skills development, employ- ment-intensive infrastructure, persons with disabilities, productivity improvement, wage and income distribution. The focus is on the potential of the informal econ- omy. Informality is often an expression of weak or inappropriate governance as well as the result of market forces. In turn, informality keeps people poor. To break this cycle, Governments can improve laws and regulations, and increase access to pro- ductive resources and market opportunities for the poor. To make headway, the right policies and programmes need to be adopted and built into the Poverty Reduction Strategy. Building partnerships Formulating, testing and implementing policies and pro- grammes that will produce more and better jobs for poverty reduction requires a variety of partners. Local and national government need to work with the social part- ners and the private sector. The Pilot Programme is assisting in the creation of part- nerships between public, private and social society institutions. These new partner- ships also link local actors with national and international ones. 2
  • 5. Adding-value to the poverty reduction strategy The value-added by the Programme includes a novel approach that connects national policy targets to action at the lo- cal level. In the Central Region, two districts with a high poverty incidence are test- ing a local economic development strategy that creates and improves jobs for the poor. Committees for productive and gainful employment have been set up, bring- ing together local government, elected Assembly members and local business and social groups. They consult broadly about the economic potential and social needs of the people living in the districts. The Committees then work with local and na- tional government and the private sector to take forward concrete proposals to ac- cess new markets, to expand businesses, involve local contractors in road con- struction, strengthen women entrepreneurship, upgrade skills in small enterprises, and to improve working conditions and productivity. The goal By the end of 2005, the lessons from the districts will be built into a re- vised Ghana Poverty Reduction Strategy. This will include a strategy for the infor- mal economy, new approaches to vocational training and to job creation through procurement policies. Together with innovative ways and greater capacity to deliver development programmes at the local level, these policies for decent work will translate into real benefits, enabling many more people in Ghana to work them- selves out of poverty. 3
  • 6. Addressing a national development priority: Decent Work and Poverty With more than 7 of the then 18 million Ghanaians, classified as poor, accord- ing to the latest Ghana Living Standards Survey (1998/99), poverty reduction is clearly the national development priority. Like in many African countries, poverty is concentrated in two groups. The most affected group is farmers, some 60 per cent of whom are below the poverty line. The second ‘hot spot’ is 25-30 per cent of the workers in the informal economy. While the share of farmers in the work- force is declining steadily and employment in the formal sector is stagnating, the number of those seeking to eke out a living in the informal economy is rising sig- nificantly. Given this trend and the long-standing experience of the ILO and its constituents in addressing the problems there, poverty reduction in the informal economy was chosen as the focus of the Ghana Decent Work Pilot Programme (GDWPP) initiated in early 2003. Share of employment in subsectors (%) (Economically active population) 60 50 Export farming & food 40 crop farming 30 Private informal employment & non-farm self-employment 20 Public sector employment 10 Private formal employment 0 Non-working 1991 / 92 1998 / 99 Source: GLSS 1991/92 and 1998/99 ‘The informal economy is expanding rapidly, but many jobs have low productivity, generating low and instable incomes.’ 4
  • 7. The missing link: Employment and labour issues in the Ghana Poverty Reduction Strategy Poverty is a complex problem. Tackling it effectively requires a multi-facetted and coherent approach. Numerous policy domains and sectoral programmes have to be integrated around this goal. These range from a favourable and sta- ble macro-economic framework, to education, health, infrastructure, develop- ment of enterprises and of key sectors of the economy. Access to employment and income generation opportunities, especially for low- and middle-income households is the link between economic growth and broad-based poverty re- duction. The key framework for policies and resource allocations is the Ghana Poverty Reduction Strategy (GPRS) adopted in 2002. The Strategy for the period 2003- 2005 is intended to provide a blueprint for poverty reduction by fostering private sector-led growth. Access to productive and gainful employment and income generating opportunities is meant to translate economic growth into broad based wealth creation. The GPRS addresses most of the development challenges the country faces: macroeconomic stability, industrial and rural development, human resources development, vulnerable groups, and governance. A closer examination of the Strategy nonetheless reveals a number of major gaps, which significantly limit the prospects for achieving its goal. These relate to employment, labour, income distribution and security, representation and voice as well as the respect of rights as a contributing factor to development. The gaps concern the design of the GPRS as well as the mechanisms for implementation. The view of GDWPP partners: Hon. J.H. Mensah, Senior Minister: ‘There are no alternatives to gainful employment for a livelihood. The difficulty has been to deliver on the promise of job creation. What we need are real jobs.’ (Accra, May 2004) 5
  • 8. Missing links in the Ghana Poverty Reduction Strategy In order to achieve its twin goals of wealth creation and poverty reduction, the GPRS needs to be enhanced by including: • Employment targeting as an outcome indicator for macro-economic poli- cies; as a specific goal in each of its sectoral components as well as in the articulation of the elements such as infrastructure, rural and indus- trial development, enterprise and export promotion into a coherent strat- egy. • Public procurement procedures that generate employment spin-off in in- frastructure development and promote acceptable working conditions through the use of labour-based methods respecting Ghanaian labour legislation and ILO core labour standards. • Productivity and income distribution need to be addressed as low produc- tivity and very low and unstable incomes are key constraints, particularly for micro- and small enterprises in the informal economy and for farm- ers. • An Informal economy strategy that recognizes the specific constraints of micro- and small enterprises, which go beyond an enabling framework for enterprises in the formal private sector. • A coherent set of measures to integrate Persons with disabilities into the economy and society as potential contributors to growth and production rather than welfare cases. In addition to a more complete and coherent strategy, there is a need for: • Policy tools and instruments that have been successfully tested in Ghana and that can be used to implement policies, which maximize access to gainful employment and income opportunities. • Capacity and institutional arrangements for decentralized poverty reduc- tion. The progress reports on the implementation of the GPRS point out these have been a major bottleneck and the main reason why relatively little headway has been made with turning districts into hubs for poverty reduction as intended in the Strategy. The view of GDWPP partners: Hon Yaw Barimah, Minister of Manpower Development and Employment: ‘Employment creation needs mainstreaming and policy coordination’ (Accra, May 2004) 6
  • 9. Making the link: Integrating Decent Work into the Ghana Poverty Reduction Strategy The Ghana Decent Work Pilot Programme aims at strengthening the employ- ment creation and income generation link on which the GPRS hinges by incor- porating relevant components of the ILO’s decent work approach into the Ghana Poverty Reduction Strategy. This involves contributions to the design of the GPRS as well as assisting to develop and test the policy tools and procedures. It also includes establishing and strengthening the institutions needed for effec- tive delivery. The goal: A contribution to broad-based poverty reduction through more and better jobs for men and women. The way to achieve it: The Ghana Poverty Reduction Strategy integrates policies, programmes and tested policy instruments for relevant aspects of decent work. ‘With improved productivity, micro- and small enterprises can also provide decent incomes, wages and better working conditions’. 7
  • 10. The GDWPP systematically and coherently applies a three-stage approach to assist ILO constituents and other national actors in the development of policies that work: 1. The starting point has been capacity building of relevant institutions and creat- ing a functional link between national and local levels. 2. Enhanced technical and institutional capacity is then used to develop and test ap- proaches and policy tools in a partnership between national institutions and two pilot districts. 3. The experience gained provides the basis for the formulation of and advocacy for policy proposals that have shown to be effective in Ghana. The approach: Testing of Capacity Building Approaches and Policy Tools Policy Formulation and Advocacy A nationally owned programme: Participatory planning and implementation The impact and the sustainability of the Decent Work Pilot Programme will ulti- mately hinge on the commitment and ability of the actors in national and local government, in employers’ organizations, trade unions and in the informal econ- omy to pursue a decent work approach to poverty reduction. They need to be willing and able to analyse, monitor, propose and contribute to implementation. 8
  • 11. Accordingly, the Pilot Programme has been driven by the national ILO con- stituents and their partners from the start: They have set the priorities during planning workshops in late 2002, they monitor and direct progress through a Steering Committee and they are the prime actors in implementation. Building the capacity of national institutions in the relevant policy areas is a central goal of the Programme. The national partners have identified Five areas for policy development: • More and better jobs in micro- and small enterprises: a strategy to address the problems of the informal economy • Skills development for gainful employment • Maximising the employment benefits of infrastructure development • Integration of persons with disabilities into society • Increasing productivity and fair distribution through a wages and incomes policy The view of GDWPP partners: Adu Amankwah, Secretary-General, TUC: ‘The concept of decent work captures the challenges faced by Ghana. For the trade unions raising productivity and incomes, particularly in the informal economy, are central goals. The GPRS does not address these concerns, except in very general terms.’ (Swedru, December 2003) 9
  • 12. Think nationally, act locally: District Assemblies and Local Economic Development Taking decisions and engaging resources close to and with the participation of those who are expected to benefit improves both governance and the effective- ness of programmes. The Ghana Poverty Reduction Strategy recognizes that fact. The 110 districts of Ghana, their elected District Assemblies and the local government are supposed to play this role by drawing up district development plans and channelling national resources. The districts have so far met with limited success because of a lack of clarity about their role, insufficient know-how concerning local economic development and the absence of suitable institutions bringing together assemblies, local au- thorities, the private sector and other members of the community. Policy analysis - testing - formulation: from national to local and back In order to ensure that policy recommendations are relevant and feasible, the Pilot Programme has 2 components which complement each other: • National policy analysis and formulation • Local development and testing of policies and policy tools in 2 pilot districts National level Policy analysis Policy formulation and advocacy Local level Development and testing 10
  • 13. In order to establish such institutions of dialogue and coordination, to test a lo- cal economic development approach focussing on small enterprises and to de- velop suitable capacity building material, the Pilot Programme has selected two pilot districts in the Central Region. The Central Region has an incidence of poverty that is higher than the national average and has been worsening over the last decade. The pilot districts are: • Awutu-Efutu-Senya, a coastal and predominantly urban district with a large and diverse informal economy (Capital Winneba); and • Ajumako-Enyan-Essiam, which is land-locked and mostly rural with an informal economy focussing on agro-processing and services (Capital Ajumako). Bawku Bolgatanga BURKINA Wa Tamale Yendi TOGO IVORY COAST GHANA Sunyani Kumasi Bibiani Lome Koforidua Abidjan Accra Ajumako Winneba Takoradi Cape Coast Pilot districts 11
  • 14. Following awareness raising and training for officials, members of the assem- blies and representatives of small businesses and the community, the two dis- trict assemblies have established Sub-Committees for Productive and Gainful Employment. The Committees are rec- ognized under the Law of Local Government in Ghana. In the pilot districts they are composed of elected members of the assemblies and representatives of small business and civil society, including vulnerable groups. Building local capacity for the promotion of employment and income generation Capacity building has been an essential element in the establishment of the Sub-committees. The members and local authorities received training in: • the Local Economic Development approach, • the relevance of decent work for poverty reduction, • the characteristics of the informal economy and options for improvement, • generic skills such as planning, programming and organization, • tender procedures, for public procurement, • the role and functioning of small business associations. Capacity building has initially drawn on ILO material and courses, but taken care to foster local competence in this task by involving the Institute of Local Government Studies, which trains all local officials in Ghana and business development service providers such as FIT-Ghana. The Sub-Committees serve as institutions of social dialogue and a public / pri- vate interface at the local level. Their role is to identify local development poten- tial, draw up a strategy for realizing this potential for inclusion into the District Development Plans and mobilize local and national resources in support of the plans. Both districts have created data-bases of all small businesses. They have iden- tified promising sectors of small enterprise development, initiated training of en- trepreneurs and associations and are preparing feasibility studies. They are drawing up plans to support small businesses, including joint access to health insurance and programmes to step up productivity and upgrade working condi- tions by low-cost improvements in the working environment and in human re- source management. They have accessed national development resources from the Department of Feeder Roads for two roads to be built using labour-based methods and local workers as well as through the Skills Training and Employment Placement programme of the Ministry of Manpower Development and Employment. 12
  • 15. The view of GDWPP partners: George Acquah, Chairperson of Sub-Committee PGE Winneba: ‘I invest my time and energy in the GDWPP because it will help to improve the quality of life in my community’. (Winneba, May 2004) Towards productive and decent work in micro- and small enterprises: A development strategy for the informal economy A large and rapidly growing number of poor are engaged in survivalist informal activities. Self-employed women are one of the most affected segments of the population. For many, the informal economy has turned into a poverty trap: very low productivity results in very low and instable incomes. The Ghana Poverty Reduction Strategy has so far failed to adequately diagnose the dynamics of the informal economy and devise a meaningful strategy for poverty reduction for what is in effect the overwhelming majority of private busi- nesses. There is now growing recognition that the mushrooming of informal activity is in many cases acceptance of employment of last resort rather than a sign of ‘flexibility’ of private sector entre- preneurs. Micro- and small enterprises have been absorbing much of the oth- erwise unemployed workforce. They have the potential to create large numbers of jobs with rea- sonable levels of productivity and income and with acceptable working conditions. Whether this outcome is reached depends ‘Fish processing is one of critically on the numerous national and local policies, regulations the small business sectors and programmes that affect firms in the informal economy. selected for development by the Sub-Committee in Awutu-Effutu-Senya This element of the Pilot Programme is guided by the Resolution district. Improvements will concerning decent work and the informal economy adopted mostly help women by the International Labour Conference in 2002. (see:http://www. engaged in this activity.’ ilo.org/public/english/standards/relm/ilc/ilc90/pdf/pr-25res.pdf). The Pilot Programme is thus part of the follow up to the Resolution by the ILO. 13
  • 16. The Pilot Programme is assisting ILO constituents to formulate and test a strat- egy that addresses the specific needs and constraints of micro- and small en- terprises and operators in the informal economy. These include the ‘enabling en- vironment’ for all private enterprise, but go beyond it. They also vary for men and for women. To survive, grow and offer reasonable and stable incomes and work- ing conditions, the owners and workers in micro- and small enterprises need: • Access to essential resources, in particular technical and entrepreneurial skills, technology and credit. In all these areas offer and delivery mechanisms need to be adapted to the conditions of micro- and small enterprises. • Access to services such as market information and business training and counselling, but also to social security, most critically to health insurance. Creating the conditions for thriving small businesses The prospects for services and resources to be accessible and transformed into inputs for thriving small businesses are far greater if they are backed by: • Organization of small businesses allowing them to represent their inter- ests collectively, to cooperate and to reduce overheads by sharing re- sources and services. The Pilot Programme is working with the Trade Union Congress and the Ghana Employers’ Association on the delivery of services to small busi- nesses in the informal economy through associations. It is also developing tools and capacity to strengthen small business as- sociations • Local partnerships and support through district development plans and programmes. District assemblies can provide significant support to small enterprise development through by-laws, infrastructure development, in- vestment and access to national development resources. This kind of pri- vate-public partnership requires mechanisms for consultation and imple- mentation, which the Pilot Programme is helping to establish. • Impact assessment tools, which allow gauging the effect of the strategy and of programmes at national and local level. The Pilot Programme is collaborating with the University of Cape Coast to develop a district-level impact assessment methodology and will work with the Bank of Ghana and the Ghana Statistical Service on an ‘informal economy barometer’ and the collection of information through periodic surveys. • Innovative forms of outreach to micro- and small enterprises through local radio campaigns which reach and influence the behaviour of large num- bers of persons at relatively low cost. See: http:// www.ilo.org/dyn/empent/docs/F1606979783/WP65-2004.pdf 14
  • 17. ‘New opportunities in electronics and information technology can be seized by micro- and small enterprises, provided they have access to skills, technology and other resources’ Working out of poverty: Elements for integrated national policies and programmes (1): Skills development The ultimate goal of the Pilot Programme is to enable ILO constituents to con- tribute to the formulation and implementation of effective poverty reduction poli- cies and programmes. Hands-on capacity building linked to their current work priorities is therefore essential. The Ministry of Manpower Development and Employment is responsible for the development of vocational skills and facilitating access to employment opportu- nities, in particular for unemployed youth. An important tool for the Ministry is the Skills Training and Employment Placement (STEP) programme, which is funded under the Ghana Poverty Reduction Strategy. The Pilot Programme is assisting the Ministry by strengthening its capacity in project formulation, management, monitoring and evaluation. For the forthcom- ing revision of the GPRS, it is working with the Ministry to draw lessons from the 15
  • 18. experience and to further develop the STEP approach so it can extend its cov- erage and become a bridge from often rudimentary school education to gainful employment in small enterprises through suitable guidance, vocational and en- trepreneurship training, access to business development services and credit. The STEP programme needs to: • be demand-driven, offer short courses imparting readily employable skills, • cater for young men and women, • devise ways to include persons with limited literacy and numeracy, • increase coverage by redefining the roles of traditional apprenticeships with master-craftsmen and – women and of formal training institutions re- spectively. New elements of the approach and modalities for delivering training and entre- preneurship promotion packages are developed with the Ministry and tested in the pilot districts. ‘Access to skills and other resources and services is often difficult for women entrepreuneurs, starting with functional literacy’. [Photo UNFPA] The view of programme partners: Hon. Dr. Angela Lamensdorf Offori-Atta, Dep Minister of Manpower Development and Employment: ‘This course [organized under the GDWPP for staff of the Ministry] really gives us skills we can apply in our work. It has also convinced me that we need to work with the districts to implement our vocational training programme.’ (Ho, August 2003) 16
  • 19. (2): Integration of persons with disabilities The Department of Social Welfare of the Ministry has drawn up a strategy for the inclusion of persons with disabilities into the economy and into society with the help of the Pilot Programme. Persons with disabilities form a major group among the poor. Designed in cooperation with the Ghana Federation of the Disabled, the new strategy advocates a departure from the welfare and charity approach. Many persons with disabilities can and want to contribute to production and eco- nomic activity. Their inclusion does not only respect the rights of persons with disabilities. It is also economically and socially more effective. The Department is currently working to incorporate this approach into the GPRS revision. ‘Labour-based methods for infrastructure development are not only cost-effective, they also create many job opportunities’ (3): Infrastructure development and employment promotion Infrastructure development is widely recognized as an indispensable element of poverty reduction strategies. The GPRS mobilizes very substantial resources, in particular for roads. Many of the construction and maintenance works can be carried out cost-effectively and to high quality standards using labour-based methods. The use of local labour and materials injects significant cash into local economies. Studies suggest that the more than US$ 70 million/year that will be invested in feeder roads projects alone in Ghana could translate into more than 17,000 direct employments if labour-based methods are used. Works can also offer decent working conditions in line with national labour legislation. The em- ployment and income generation potential of infrastructure is not fully used in Ghana because of tendering and contracting procedures that de facto exclude many labour-based firms. The Ministries of Manpower Development and of Roads and Transport have enlisted the support of the Pilot Programme to draw up a policy brief to be submitted to the Cabinet of Ministers to enhance the em- ployment and poverty reduction benefits of infrastructure projects. 17
  • 20. (4): Productivity, wages and income Increasing productivity and distributing the benefits widely through wages and work-related income is a key factor in effective poverty reduction. The Ghana Employers’ Association and the Trade Union Congress have been focussing on options for productivity improvements at the firm and sectoral level and on an ap- propriate wages and incomes policy. Concerning these and other issues, the so- cial partners intend to play a more active role in the revision of the GPRS than during its original formulation. In addition to policy formulation and advocacy, both social partners are seeking to extend their role in organization and representation of entrepreneurs and work- ers in the informal economy. With the support of the Pilot Programme they are expanding their capacity to provide relevant services to the informal economy. Sustainability: Fostering partnerships Working out of poverty is a complex task that requires commitment and contri- butions from many stakeholders. The Pilot Programme therefore fosters partner- ships and alliances not only among the tripartite ILO constituents, Ministry of Manpower Development and Employment, Ghana Employers’ Association and Trade Union Congress, but also with other important stakeholders. These include national actors such as the National Development Planning Commission and the Ministries of Local Government and Rural Development, Trade and Industry, Finance and Planning, Roads and Transport as well as the Central Bank and the District Assemblies as the vital link to the local level. It also seeks to engage with international development partners including UNDP, the World Bank and bilateral donors. ‘Vital partnerships are being forged between government, the social partners, the private sector and civil society as well as between local, national and international stakeholders’. 18
  • 21. National support institutions play a vital role in providing technical support and expanding national capacity to operationalize decent work for poverty reduction. They include: the Institute of Local Government Studies, Business Development Service providers and specialized consultants such as EMPRETEC, FIT and ISODEC, civil society organizations like the Ghana Federation of the Disabled, as well as research institutions including ISSER (Institute of Statistical, Social and Economic Research) and Cape Coast University. Finally, the Pilot Programme has fostered a new kind of partnership between ILO field offices, technical units at Headquarters and the ILO’s International Training Centre in Turin, integrating the four dimensions of decent work: rights, employ- ment, social protection, social dialogue and representation. International development partners include UNDP Ghana, DFID UK and the Government of the Netherlands, which has provided much of the funding for the Ghana Decent Work Pilot Programme. The process has facilitated the creation of new partnerships and networks and enhanced social dialogue in national policy formulation. The view of programme partners: Ms Rose Karikari Anang, Chief Executive, Ghana Employers’ Association: ‘The tripartite structure of the Programme has enabled us, the ILO con- stituents, collectively to influence national policy-making’. (Geneva, November 2003) The goal By the end of 2005, the lessons from the Districts will be built into a revised Ghana Poverty Reduction Strategy. This will include a strategy for the informal economy, new approaches to vocational training and to job creation through procurement policies. Together with innovative ways and greater capacity to deliver development programmes at the local level, these policies for decent work will translate into real benefits, enabling many more people in Ghana to work themselves out of poverty. 19
  • 22. Decent Work Pilot Programme: an ILO initiative to operationalize decent work in member countries The Decent Work Pilot Programme was initiated by Juan Somavía, the Director General of the ILO, in October 2000 to pioneer ways in which the concept of decent work can be effectively promoted and applied in ILO member countries. The Pilot Programme aims at strengthening national capacity to integrate decent work into national policies. In addition to Ghana, seven countries are currently participating in the Programme: Bahrain, Bangladesh, Denmark, Kazakhstan, Morocco, Panama and the Philippines. The lessons of the Pilot Programme countries are being used to introduce Decent Work Country Programmes in most ILO member states in the coming years. 20
  • 23. For further information, please visit the following websites or contact our offices: Websites: • Decent Work Pilot Programme: http://www.ilo.org/public/english/bureau/dwpp • Working out of poverty: http://www.ilo.org/public/english/standards/relm/ilc/ilc91/pdf/rep-i-a.pdf • The ILO and Poverty Reduction Strategy Papers: http://www.ilo.org/public/english/bureau/exrel/partners/prsp/prsp-dwapr.htm Contacts: • ILO – Ghana Decent Work Pilot Programme Office PMB, Ministries Accra, Ghana Tel: +233 21 681 806 Cell: + 233 244 321 186 E-mail: Kwaminamoasi@yahoo.com • ILO Area Office for Nigeria, Ghana, Sierra Leone and Liberia 188 Awolowo Road Ikoyi, Lagos Nigeria Tel: 234 1 2693916/7 Fax: 234 1 2690717 E-mail: dzakpasu@ilo.org • National Policy Group Policy Integration Department International Labour Office 4, route des Morillons 1211 Geneva 22, Switzerland Tel: + 41-22-799 6437 Fax: +41 22 799 6977 E-mail: npg@ilo.org