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6. Principles and practicesof Labour Rights and LegalEmpowermentThe task of the Commission for Legal Empowermentof the Poor is to identify how legal instrumentscan be used to empower the poor. In thischapter we addresses one of the key areas oflegal empowerment, namely how internationaland national systems of labour standards andlabour rights can become more inclusive andpromote more productive and decent work in thefight against poverty. There is - in this arena as inother arenas of legal empowerment - no quick fixfor shifting from informal and low productive employmentto decent and productive employment.There is no single solution, which can be appliedin all countries. A strategy for empowerment hasto have common core principles but remain flexibleenough in design to fit many different economic,social and political conditions. It has tobe participatory, inclusive and gender sensitive.Some principles are basic for any reform strategyin this field and they are introduced in Section6.1. There are many lessons to learn from recentnational and local initiatives for empowerment,which will be presented in Section 6.2. Someconclusions are drawn in 6.3. On the basis ofthese principles and practices, policy recommendationsare introduced in Section 7.The basic principles for inclusivereformBoth promotion of change - and management ofchangeThe most successful countries, in terms of productiveemployment, are using a mix of economicand social policies, implemented with flexibilityand designed for security. Within the context ofcompetition, specialisation and free trade, thisapproach helps to promote change and productivity;it also helps in the management of changeand in the creation of decent work opportunities,a sense of inclusion and a widely shared prosperity.The mix has varied from country to country,and the different policies are adjusted occasionallyto improve the synergy between economicand social policies, decent work and inclusion.Both property rights - and labour rightsThe report from World Commission on the SocialDimension of Globalisation argued that informalactivities should be transformed and integratedinto a growing formal sector that provides decentjobs, incomes and protection. A balanced approachto upgrading the informal economy wouldrequire the systematic extension of propertyrights, accompanied by similar action on corelabour rights for all persons engaged in informalactivities. The report argues that such a transformationis an essential part of a national strategyto reduce poverty and promote inclusion. Whileit suggests that the key to empowering the poorthrough property rights is the provision of legalidentity to their assets, it also advances theunderstanding that the key to their empowermentthrough labour rights lies in conferring uponthem a legal identity as workers or entrepreneurs,thereby making disguised commercial or employmentrelationships visible.Both protection - and fl exibilityThe World Development Report 2006, entitledEquity and Development, recognises the intrinsicvalue of equity and makes the case for investingin people, expanding access to justice, land, andinfrastructure, and promoting fairness in markets.The report asks whether labour market institutionscan be designed to be pro-growth and pro-166