Is there a Role for Employers in Poverty Alleviation? Dutch Employers Cooperation Programme Jan Karel Bout Gabarone, February 22, 2007
Close connection GDP growth / poverty reduction source: Worldbank, 2002
Profound changes in the world economy (1) Shift away from the West? Bric’s Take-overs in Europe Global market place with few rules (WTO)
Profound changes in world economy (2) Internet The world is flat Countries competing for FDI Investment climate
Business climate, the actors Role of government Employers Labour
Tasks for the government Healthy macro-economic policy Infrastructure Rule of Law Education and skills Business climate
Doing business The World Bank criteria (1) Starting a business Dealing with licenses Registering property Hiring and firing Getting credit Protecting investors
Doing business The World Bank criteria (2) Paying taxes Trading across borders Enforcing contracts Closing business
Africa’s performance Some examples Ghana 82 Ethiopia 101 Senegal 132 Rwanda 139 Côte d’Ivoire 145 Burkina Faso 154 African countries mostly at bottom of the list
Role of Business Organisations The voice of business Defending interest of members The business climate No. 1 Countervailing power for Unions Providing services to members
Characteristics effective business organisation Advocacy Representativeness Strategy Revenues Organisational structure
Tools to influence governments (1) (Economic growth) Lobby: government, parliament Communication; role of media Press conferences, articles, interviews, etc Business surveys
Tools to influence governments (2) (Economic growth) Through (large) members Foreign partners: World Bank, embassies, international business organisations. Bi/tripartite bodies Etc.
Business is Key Valuable tools: World Bank: Doing Business Poverty Reduction Strategy Paper Your own business survey Others?
A virtuous circle: benefits for all Strong business influences government better business climate less informal economy higher growth and taxes more jobs reduced poverty strong business