Connect with us

Reports

Nearly two-thirds of global workforce in the ‘informal’ economy

MD Staff

Published

on

More than 61 per cent of the world’s employed population – two billion people – earn their livelihoods in the informal sector, the United Nations labour agency said on Monday, stressing that a transition to the formal economy is critical to ensure rights’ protection and decent working conditions.

The high incidence of informality in all its forms has multiple adverse consequences for workers, enterprises and societies and is a major challenge for the realization of decent work for all,” said Rafael Diez de Medina, the Director of the Department of Statistics at the UN International Labour Organization (ILO).

The findings are revealed in ILO’s latest report, Women and men in the informal economy: A statistical picture. The study also provides comparable estimates on the size of the informal economy and a statistical profile of the sector, using criteria from more than 100 countries.

“Having managed to measure this important dimension, now included in the Sustainable Development Goals (SDGs) indicators framework, this can be seen as an excellent step towards acting on it, particularly thanks to more available comparable data from countries,” added Mr. Diez de Medina.

The geographic distribution of employment in the informal sector presents a striking picture.

In Africa, 85.8 per cent of employment is informal. The proportion is 68.2 per cent in Asia and the Pacific, 68.6 per cent in the Arab States, 40 per cent in the Americas, and just over 25 per cent in Europe and Central Asia.

In all, 93 per cent of the world’s informal employment is in emerging and developing countries.

The report also found that informal employment is a greater source of jobs for men (63 per cent) than for women (58.1 per cent).

“Out of the two billion workers in informal employment worldwide, just over 740 million are women,” said ILO, noting that they are mostly in informal employment in most low- and lower-middle income countries and are more often found to be the most vulnerable.

Factors affecting level of informality

Education is a major factor affecting the level of informality, the study has shown, noting that as the level of education increases, the level of informality decreases.

“People who have completed secondary and tertiary education are less likely to be in informal employment compared to workers who have either no education or completed primary education,” said ILO.

In addition, people living in rural areas are almost twice as likely to be in informal employment as those in urban areas, it added.

According to Florence Bonnet, one of the authors of the report, data on these issues are crucial to design effective policies.

“For hundreds of millions of workers, informality means a lack of social protection, rights at work and decent working conditions, and for enterprises it means low productivity and lack of access to finance,” she said.

Continue Reading
Comments

Reports

MDBs’ Annual Climate Finance Passes $61 Billion

Newsroom

Published

on

Climate financing by seven of the world’s largest multilateral development banks (MDBs) totaled $61.6 billion in 2019, with $41.5 billion (67%) in low- and middle-income economies, according to the 2019 Joint Report on Multilateral Development Banks’ Climate Finance.

In addition to its traditional focus on low- and middle-income countries, the 2019 report expands the scope of reporting for the first time to all countries of operations.

Some $46.6 billion, or 76% of total financing for the year, was devoted to climate change mitigation investments that aim to reduce harmful greenhouse gas emissions and slow down global warming.

The remaining $15 billion, or 24%, was invested in adaptation efforts to help countries build resilience to the mounting impacts of climate change, including worsening droughts and more extreme weather events from extreme flooding to rising sea levels.

The report combines data from the Asian Development Bank (ADB), the African Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group, the World Bank Group and—for the first time—the Islamic Development Bank, which joined the working group in October 2017. In 2019, the Asian Infrastructure Investment Bank also joined MDB working groups, and its data is presented separately in the report.

Additional climate funds channeled through MDBs—such as from the Climate Investment Funds, the Global Environment Facility Trust Fund, the Global Energy Efficiency and Renewable Energy Fund, the European Union’s Funds for Climate Action, and the Green Climate Fund—also play an important role in boosting MDB climate financing. In 2019, the MDBs reported a further $102.7 billion in net climate cofinancing from public and private sources. This raised the total climate activity financed by MDBs in 2019 to $164.3 billion.

“The growing flow of MDB climate finance shows our joint resolve to take on climate change and, in the face of the coronavirus disease (COVID-19) pandemic, it is more important than ever to ‘build back better’ in a low carbon and climate resilient way,” said the Director General of ADB’s Sustainable Development and Climate Change Department Woochong Um. “The report shows that climate finance provided by and through the MDBs is providing increasing support for these needed transitions.”

In 2019, ADB committed almost $7.1 billion in climate finance (more than $5.5 billion for mitigation and $1.5 billion for adaptation). This included $705 million from external resources, including multilateral climate funds. Further, ADB mobilized $8.8 billion of climate cofinancing.

The report shows that the MDBs are on track to deliver on their increased climate finance commitments. In 2019, the MDBs committed their global annual climate financing to reach $65 billion by 2025—with $50 billion for low- and middle-income countries—and that MDB adaptation finance would double to $18 billion by 2025. The MDBs have reported on climate finance since 2011, based on a jointly developed methodology for climate finance tracking.

The 2019 Joint Report on Multilateral Development Banks’ Climate Finance is published in the midst of the COVID-19 pandemic, which has caused significant social and economic disruption, temporarily reducing global carbon emissions to 2006 levels.

Continue Reading

Reports

Public Transport Can Bounce Back from COVID-19 with New and Green Technology

Newsroom

Published

on

Public transport must adapt to a “new normal” in the wake of the coronavirus disease (COVID-19) pandemic and adopt technologies that will render it more green and resilient to future disasters, according to a new report by the Asian Development Bank (ADB).

The report, Guidance Note on COVID-19 and Transport in Asia and the Pacific, details the profound impact of the pandemic on transport, as swift lockdowns forced millions this year to work from home overnight, schools to shift to e-learning, and consumers to flock to online shopping and food delivery.

While public transit may have been previously perceived as a mostly green, efficient, and affordable mode of travel, initial trends in cities that have re-opened have indicated that public transit is still considered to be relatively unsafe and is not bouncing back as quickly as the use of private vehicles, cycling, and walking.

“The two key challenges ahead are addressing capacity on public transport to maintain safe distancing requirements, and how best to regain public confidence to return to public transport,” said Bambang Susantono, ADB Vice-President for Knowledge Management and Sustainable Development. “In the short term, more effort is needed to reassure public transport users of safety and demonstrate clean and safe public transport. In the longer term, technological advances, big data, artificial intelligence, digitalization, automation, renewables and electric power can potentially offer fresh innovations to tackle changing needs, giving rise to smarter cities.”

While drastic lockdown measures around the world have brought world economies to their knees, satellites have recorded data on how the concentrations of CO2 and air pollutants have fallen drastically, bringing clear blue skies to many cities.

But as cities have reopened, traffic levels have increased. For example, Beijing traffic levels, by early April 2020, exceeded the same period in 2019. If this trend is seen on a wide scale, it could set back decades of effort in promoting sustainable development and more efficient means of urban mobility.

The report says there is a short window of opportunity for cities to promote the adoption of low-carbon alternatives to lock-in the improved air quality conditions gained during the peak of the pandemic lockdown. Public transport can play an important role through more active promotion of clean vehicles, provision of quality travel alternatives in public transport, and a better environment for non-motorized modes such as walking and cycling to enhance overall health and wellbeing.

The confidence of passengers on public transport should be restored through protective measures such as cleaning, thermal scanning, tracking and face covering, the report says. Further study to explore how protective and preventive measures can be stepped up to allow relaxation of safe distancing requirements would help mitigate capacity challenges. A possible future trend may be consolidation of services and rationalization of routes to better serve the emerging travel demand patterns and practices.

As countries enter the “recovery” phase, further preventive and precautionary operating measures and advanced technology should be implemented to enable contactless processes and facilitate an agile response. Demand management measures can facilitate crowd control in public transport systems and airports. As a complementary measure, non-motorized transport capacity could be expanded to absorb spillover demand from public transport.

Since mass public transport is the lifeblood of most economies, government policies and financial support are essential during this period, to enable public transport operators to stay viable and continue to support the movement of passengers and goods in a sustainable way.

For ADB, which committed last year $7 billion to the transport sector, behavioral trends linked to COVID-19 may require a review of the short-term viability of passenger transport and operational performance to meet changing demand for public transit systems. “Regardless of the COVID-19 pandemic it is clear that developing Asia will continue to have a large need for additional transport infrastructure and services,” the report concludes. “It would take several years before the projects currently in the pipeline would be operational and much can happen during these years.”

Continue Reading

Reports

Zero emission economy will lead to 15 million new jobs by 2030 in Latin America and Caribbean

Newsroom

Published

on

In a new groundbreaking study , the Inter-American Development Bank (IDB) and the International Labour Organization (ILO) show that the transition to a net-zero emission economy could create 15 million net new jobs in Latin America and the Caribbean by 2030. To support a sustainable recovery from the COVID-19 pandemic , the region urgently needs to create decent jobs and build a more sustainable and inclusive future.

The report finds that the transition to a net-zero carbon economy would end 7.5 million jobs in fossil fuel electricity, fossil fuel extraction, and animal-based food production. However, these lost jobs are more than compensated for new employment opportunities: 22.5 million jobs are created in agriculture and plant-based food production, renewable electricity, forestry, construction, and manufacturing.

The report is also the first of its kind to highlight how shifting to healthier and more sustainable diets, which reduce meat and dairy consumption while increasing plant-based foods, would create jobs and reduce pressure on the region’s unique biodiversity. With this shift, LAC’s agri-food sector could expand the creation of 19 million full-time equivalent jobs despite 4.3 million fewer jobs in livestock, poultry, dairy and fishing.

Moreover, the report offers a blueprint on how countries can create decent jobs and transition to net-zero emissions. This includes policies facilitating the reallocation of workers, advance decent work in rural areas, offer new business models, enhance social protection and support to displaced, enterprises, communities and workers.

Social dialogue between the private sector, trade unions, and governments is essential to design long-term strategies to achieve net-zero emissions, which creates jobs, helps to reduce inequality and delivers on the Sustainable Development Goals .

Continue Reading

Publications

Latest

Middle East2 hours ago

Greater Implications of the Iran-China Deal on India

Authors: Dhritiman Banerjee and Subarna Mustari* India entered as a stakeholder in the development of Iran’s Chabahar port in 2016...

Russia4 hours ago

Analysing the Russia Report: Separating the Wheat from the Chaff

The long-awaited Russia Report has finally been released by the UK Parliament’s Intelligence and Security Committee. However, whether it has...

Human Rights6 hours ago

Rights experts call on India to remedy ‘alarming’ situation in Jammu and Kashmir

UN-appointed independent human rights experts have called for urgent action in India’s Jammu and Kashmir, amid concerns of ongoing abuses...

Defense8 hours ago

Maintaining Command of the Sea: Maritime Doctrines of Pakistan and India

Maritime and naval component is an important part of political, economic and military domain of a maritime nation. This component...

Russia10 hours ago

Russia’s Troubles with Its “String of Pearls”

An important part of Russia’s grand strategy in terms of foreign policy is its purposeful creation and management of conflict...

Environment12 hours ago

The status of climate risk management in Latin American and Caribbean banks

A survey among 78 financial institutions in Latin America and the Caribbean holding 54% of the total assets managed by...

Eastern Europe14 hours ago

What stands behind escalation of the conflict between Armenia and Azerbaijan?

Thousand Azerbaijanis are launching peaceful protests and marches around the world to support Azerbaijan’s position demanding a justice for this...

Trending