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  1. 1. Topic No. 14. Providing social welfare to informal sector workers Team Details : I n U ’n You 1. I …. Durwasa Chakraborty, III Sem (II year) 2. I …. Mayank Nema, III Sem (II year) 3. I …. Sanchit Kanchan, III Sem (II year) 4. I …. Vikrant Pandey, III Sem (II year) 5. I …. Vishal Maheshwari, III Sem (II year) - from Govt. Jabalpur Engineering College JABALPUR (JEC)
  2. 2. In 1972 the ILO in its Kenya Mission Report, defined informality as a “way of doing things characterized by” (a) Ease of entry; (b) Reliance on indigenous resources; (c) Family ownership; (d) Small scale operations; (e) Labour intensive and adaptive technology; (f) Skills acquired outside of the formal sector; (g) Unregulated and competitive markets. (h) Willful or otherwise tax/ fee etc evasion. Definition proposed by National Commission on Enterprises in Unorganized Sector - “The informal sector consists of all unincorporated private enterprises owned by individuals or households engaged in the sale and production of goods and services operated on a proprietary or partnership basis and with less than ten total workers”.
  3. 3. In 1999 same categorized into three broad groups: - Category Professional front Your world Owner-employers of micro enterprises Employ a few paid workers, with/ out apprentices Dudhwale kaka Kone ke kiranewale Uncleji Machhli wale bhaijaan Feriwale Sorojit Dada Own-account workers, who own and operate one-person business Work alone or with the help of unpaid workers, generally family members and apprentices; Dhobi - Manoj bhai Chaat-wala mama Sabjiwali mausi Paperwala munna Dependent workers, paid or unpaid, including wage workers in micro enterprises Unpaid family workers, apprentices, contract labour, home-workers and paid domestic workers. Jhadoo-pochhawali Anjit didi Kaprewali Radha Chachi Bartanwali Uma Di Majdooriwale Golu Bhaiyya & others….. Your world consists of Bhaiyas / Didis et al. – Your Extended Family Special
  4. 4. Distinguishing Characteristics of Informal Sector Employment Enterprise / Activities Your world Absence of official protection and recognition Unregulated and competitive markets It generates income for low- income families Non coverage by minimum wage legislation and social security system Small scale operation with individual or family ownership It helps find solutions in the absence of formal processes Predominance of own-account and self-employment work Reliance on locally available resources It keeps low-income groups occupied with jobs and housing, in the absence of local governments capacities and resources. Absence of trade union organization Ease of entry but Labour intensive and adapted technology. Multiple jobs followed, It provides with cheap labour, provides help to the aged, keeps economy on the role Low income and job security Absence of access to institutional credit or other supports and protections Indirectly controls crime Special Your Extended Family not only takes care of itself, but also provides you with intangible benefits
  5. 5. Vital Statistics Institution/Sector 2004-05 Formal . Informal Total Public Sector 19.8 3.2 23.0 Private Sector 19.3 1.3 20.6 Household Sector excl. Informal Sector 1.7 6.7 8.4 Total formal sector 40.8 11.2 52.0 Informal Sector 5.3 42.7 48.0 % of total GDP Share of Labour Input in unorganized Sector (%) 0 10 20 30 40 50 60 70 80 90 100 % TOTAL93% Can You let your Extended Family to become mere statisticsSpecial
  6. 6. Family Problems The Bhayyas & Didis  Inadequate social security  Lack of proper skill development programme  Child labour & exploitation of women The Kakas & Mausis The Nanis & Dadas  Economic insecurity and long-term fiscal sustainability  Rural to urban population shift  Lack of adequate civic amenities like housing, sanitation, drinking water etc.  Improper health care  Widespread poverty and deprivation  Old age - informal sector is not entitled to any/ adequate retirement benefits. ….or any combination
  7. 7. Domestic Violence Special What happens to your Extended Family ? Its up to …. Economic insecurity and lack of long-term fiscal sustainability Lack of funding to set up proper business Rural to urban population shift (Mostly unskilled) CRIME & VIOLENCE Lack of adequate civic amenities Lack of proper skill development programme/ education Improper health & health care , insecurity Poverty and feeling of deprivation VIOLENT UPRISING & CIVIL UNREST Inadequate social security Child labour & exploitation of women Old age problems - informal sector is not entitled to any/ adequate retirement benefits. VEGETATE
  8. 8. 1. The Annapurna Scheme 2. National Social Assistance Scheme (NSAS) 3. Indira Gandhi National Old Age Pension Scheme 4. Old Age Social and Income Security (OASIS) project. 5. Employees Provident Fund Organization (EPFO) 6. Mahatma Gandhi National Rural Employment Guarantee Scheme 7. Rashtriya Swasthya Bima Yojana (RSBY) 8. Various CM & PM fund for natural disasters 9. Training programmes run by State/ Central Govts. 10. Different AID programmes of Govt. NGOs 11. Funding (Loan) Schemes of the Government 12. Existing Labour laws + The World Commission’s call for a “socio-economic floor” & “social protection floor” …… etc. House Holder Policies Special The ‘House’ announces many such policies / schemes, at a glance looks adequate; but does it reach ‘Your Family’ & is it adequate ?
  9. 9. • Article 41. is about - Right to work, to education and to public assistance in certain cases.— The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want. • As mentioned in the previous slide; there are more than a dozen welfare schemes for the unorganized / informal sector . The question is - how the twain shall meet? • The Solution path for - Providing social welfare to informal sector workers lies in - - finding if they are aware of the policies/ schemes - finding if it is adequate & does it reach them – fully. Render unto Caesar the things that are Caesar's One Procedure – No Scissor 1. Capturing through questionnaire/s. 2. Using honest people with an earnest approach! Special
  10. 10. Solution – Implementation - Impact • Design Questionnaire (Simple & Easy to Understand) & Report of the surveyor in exact 50-60 words. • Select Honest Sincere Persons to Carry out Task Add a chapter in this regard in the Class X Social Studies. Make it a compulsory project for all Class X students; - questionnaire is filled for 5 new persons of this category by each student Children are the most sincere & honest people, seek their opinion and award the best report/ effort from each state. Submit the Questionnaires via accredited NGOs to Statistical Units. NGOs decide the best report in every state -CBSE & SEB -separate Statistical Units & NGOs submit report to Ministry & Media Govt. takes action against defaulters & modifies policy Pledge Turn Prestige
  11. 11. Drags to Reaches Story Reach Every year around 20 lakh students appear for Class X, 20x5= 1 Crore Questionnaires filled in 1 year. Cost Practically no addl. load on the exchequer. Honarium @ Re 2 per Questionnaire to the NGOs and Award expenses only foreseen. Drags Difficulty in integrating with government institutions Family Prayer So inexpensive, Every thing is available…. Democracy and Good Sense Should Prevail. Nammal Vijayikkum !
  12. 12. • References – • Informal Sector and Informal Workers in India - Ajaya Kumar Naik • The Exceptional Persistence of India’s Unorganized Sector - Ejaz Ghani William R. Kerr Stephen D. O’Connell • Report of the Committee on Unorganised Sector Statistics - National Statistical Commission Government of India February 2012 • The Restructuring of the Unorganised Sector in India – Sheila Bhalla • Demographic ageing and employment in India - S. Irudaya Rajan • Social Protection Floor – Convened by ILO • The Global Development Research Centre Report • Bible - Synoptic Gospels • The Inter Net