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  1. 1. Manthan Topic: Protecting the Vulnerable 1 A new Organizational model to bridge the gap Social welfare program to the informal sector workers Team Members :- 1. Shashidhar Joshi 2. Akhilesh Moogi 3. Vishwa K 4. Ratan Bagali 5. Sddharood Dharwad
  2. 2. 2 According to a 2012 Ministry of Statistical and Programme Implementation report, more than 90% of India’s workforce belongs to the informal sector and accounts for 50% of the national product. Magnitude of workforce engaged in the unorganized/informal sector. •Over 94% of India's working population is part of the unorganized sector. • India's unorganized sector created 57% of the Indian Net Domestic Product in 2006, about 9 fold less per worker than the organized sector. • Although there is variation, the percentage of unorganized labor in Indian states can go as high as 90%. •According to the NCEUS, only about 7% of the total workforce in India has any form of social security. •The National Sample Survey Organisation (NSSO) carried out a sample survey in 1999-2000 and its results showed that out of total workforce of 397 million, only 28 million workers are employed in the organized sector and remaining in the unorganized sector.
  3. 3. 3 Myths and challenges of the informal sector 1) That all people engaged in informal activities are poor. 2) That the sector is unorganized and unstructured. 3) That informal activities are illegal. •The data says that pink color clearly indicates the informal workers. The NSS data from 1999-2000, 2004-2005 & 2009-2010 employment surveys show that: (a) the percentage of informal workers among paid workers in the non- agricultural sector has steadily increased, (b) The percentage of such workers with access to social security has declined, and (c) Informal labor has grown in the organized sector, the public sector and in public limited companies. These facts highlight the lack of improvement in the protection of unorganized workers.
  4. 4. Risks occurring for the workers  Health risks (e.g. infant mortality, disease);  Life cycle risks24 (e.g. childbearing, divorce, widowhood);  Household economic risks (e.g. increased expenditure for social obligations such as marriage and funerals); Social risks (e.g. exclusion, domestic violence,  crime). 4
  5. 5. Proposed Solution: 5  There will be three main bodies working here.. 1) The organization (Municipal corporations) 2) Informal sector workers. 3) The clients.  The committee from municipal corporation under the head of municipal governing chief identifies the skilled informal labourers, enrol them and train them (if necessary).
  6. 6.  Need for skilled labourers are high from busy advancing society. The committee under local governing head (Municipal Corporation) contacts the busy society (clients) and provide them with the very skilled labourers and ensure the labourers payment.  Municipal governing committee deducts the tax of this informal labour from the payment done by client and credits the remaining payment to the informal sector labour.  The committee, labour & society all them are benefitted. The tax earned by governing committee is further used for development of these new types of projects. 6
  7. 7. 7 The structure of the organizational model
  8. 8. Enhancing the productive potential of informal sector entrepreneurs 8  Identifying and involving the target group.  Assessing to what extent the target group has been reached by the programs.  Assessing the effectiveness of the programs in terms of their impact on the target group.  Ensuring that the institutional framework is sustainable.  Ensuring that a national targeted program is combined with measures aimed at influencing national policies for the creation of a stimulating environment for the growth and expansion of micro-enterprises.
  9. 9. References 9 1. Informal sector in India is broadly characterized as consisting of units engaged in the.... Social assistance through welfare funds of Central. 2. ILO action on the informal sector, ILO, Governing Body, 251st Session, November 1991. 3. INTERNATIONAL LABOUR OFFICE GB.277/ESP/1/1 277th Session ..Governing Body Geneva, March 2000… Committee on Employment and Social Policy ESP .. Employment and social protection in the informal sector. 4. Engendering Social Protection for Informal Economy Workers.. FORUM V | 6 November 2012.  Hussmanns, R.: Developments in the design and implementation of informal sector and similar surveys – A review of national practices and experiences, ILO, Geneva, 1998, 26 pp.