Download the file - United Nations Rule of Law

outside their protective reach. The World Bankhas shown that, while informality is strongly correlatedwith low productivity and a high degree ofpoverty, 4 governance and quality of regulation canplay an important role in engendering prosperityand protection for the informal workforce.Our aim is to suggest how to address the viciouscircle of informality, lack of legal protection, andpoverty. Our point of departure is that poverty isboth a market failure and a public policy failure,which the international community has begun torecognise. Within the past 10 years, for example,attempts have been made to obtain global consensuson the Fundamental Principles and Rightsof Work, and to gain widespread endorsement ofthe Decent Work Agenda. Furthermore, there isevidence of growing recognition of the need to extendlabour rights to the workforce in the informaleconomy.These are strategic priorities and they constitutethe three pillars of an emerging global social contractwith wide support in the international community,including governments in rich and poorcountries, the UN family, international financialinstitutions, employers, trade unions, and NGOs.This chapter contains seven sections. Section2 defines labour rights, informal economy,empowerment and decent work, while Section 3explains who we are talking about — the size andcomposition of the informal workforce and themany segments found therein. Next, Section 4highlights new initiatives for labour rights in thefight against poverty and describes the internationalconsensus that has developed around thisnew agenda — Legal Empowerment of the Poorthrough labour rights. Following this, Section 5examines the economic rationale for legal empowermentthrough labour rights, and summarizesthe economic debates surrounding labourregulations. In Section 6 we provide recommendationson the principles and practices of reform,as well as case materials on selected countryexperiences reflecting appropriate responses tothe extension of labour rights and standards toall forms of employment or work arrangements.Finally, Section 7 sets out our recommendationson policies and processes needed to carry out theproposed plan of action.Our recommendations are aimed at taking thisagenda forward in a manner coordinated withthe other working groups of the Commission onLegal Empowerment that are focused on accessto justice, property rights and business rights. Weargue that is it important to merge the free marketapproach with a human rights approach bycombining: (a) promotion of economic growth toimprove productivity and job creation stimulatedby competition, specialisation and free trade, and(b) management of economic growth to obtainwidely-shared prosperity through the advancementof decent work, social dialogue, inclusion,and social protection of all workers.136