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Creating Livelihoods

Creating Livelihoods

Creating livelihoods is an important component to build inclusive societies being based on the principles of employment creation, workers’ rights, equality between women and men and social protection.  Creating livelihoods reflects the social aspect of the strategy to achieve sustainable development.

With over two million people becoming of employable age each year, CERB aims to re-focus private sector’s contribution to Pakistan’s economic growth by changing their mind set towards responsible business conduct, whereby, among other, the risk of labour exploitation is reduced and better working conditions (safety, health and environment), equal opportunities for full and productive employment are provided.

CERB recognizes that holistic economic growth needs to advocate equal access to employment without discrimination, a living wage for workers in the supply chain to allow them to live with dignity, social protection in case of illness and free from exploitation.

FAQs

What does Inclusive Growth mean (IG)?

IG is a necessary and crucial condition for poverty reduction and economic growth with a long-term perspective and sustainability. For growth to be sustained in the long run it should be broad-based across sectors. Issues of structural transformation for economic diversification therefore take a front stage. It should also be inclusive of the large part of the country’s labor force, where inclusiveness refers to equality of opportunity in terms of access to markets, resources and unbiased regulatory environment for businesses and individuals.

How is IG analysis different from poverty analysis?

Traditionally poverty and growth analyses have been done separately. IG adopts a long term perspective and is concerned with sustained growth, hence it refers both to the pace and pattern of growth, it covers macro and micro determinants, which are considered interlinked, and therefore in need to be addressed together. The analysis looks for ways to raise the pace of growth by utilizing more fully parts of the labor force trapped in low-productivity activities or completely excluded from the growth process.

If a country has seen a significant economic growth, is it still important to focus on IG?

If a country has witnessed high economic growth but less or no reduction in poverty then it needs to focus specifically on the inclusiveness of its growth strategy.

We are already focused on the pro-poor growth. Why should we now switch our focus to IG?

Governments use income distribution schemes to attenuate negative impacts on the poor to  jump start growth, but transfer schemes cannot be an answer in the long run and can be problematic also in the short run. In poor countries such schemes can impose significant burdens on already stretched budgets.

IG is about raising the pace of growth and enlarging the size of the economy, while leveling the   playing field for investment and increasing productive employment opportunities.

What are the key benefits of following the IG approach?

IG approach creates a framework for high pace of growth over extended periods of time, which is necessary and often the main contributing factor in reducing poverty. It ensures that the sources of growth are expanding and an increasing share of the labor force is included in the growth process in an efficient way, hence creating employment and livelihood opportunities. From a static point of view, growth associated with progressive distributional changes will have a greater impact in reducing poverty than growth that leaves distribution unchanged.

 

What role can the private sector play in inclusive development?

Private sector actors are increasingly being recognized as a major force in development. They drive economic growth through investment, employment and business creation, innovation and knowledge transfer, and other multiplier effects from their operations and activities. Ensuring that this growth is likely to contribute to long-term poverty reduction, however, requires private companies to include the poor as producers, suppliers, employees and consumers. Under the right circumstances, public-private partnerships that are based on the identification of complementary expertise and shared commercial and development interests are also an important tool that can harness the private sector’s contribution to such inclusive growth.