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INTER-AMERICAN MECHANISM TO PROMOTE
DECENT WORK
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LABOUR PANORAMA
UNEMPLOYMENT RATE
1993 2000 2003 2004WORLD 5.5%* 6.3% 6.1%AMERICA 6.6% 6.5% 7.7%LA and C 6.9% 9.3% 8.6%LA & C Urban 6.3% 8.5% 11.1% 10.4%NORTH AMER. 7.4% 4.3% 6.2% 5.7%Sources: ILO, BLS, www.statcan.ca, self-elaborated *1994
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LABOUR PANORAMA
UNEMPLOYMENT
• Unemployment rate for youths (15 to 24 years of age) in Latin America and the Caribbean raised from 12.4% in 1993 to 17.6% in 2004 (world average: 13.1%);
• Unemployment rate for youths (16 to 19 years of age) in the United States raised from 3.1% in 2000 to 17% in 2004;
• Unemployment rate of 10.1% for women and 6.7% for men in 2003 in Latin America and the Caribbean.
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LABOUR PANORAMA
SOCIAL PROTECTION
LATIN AMERICA AND THE CARIBEEAN
• In the period from 1990 to 2002, 7 of each 10 new working posts originated from the informal sector;
• Informality has grown from 42.8% in 1990 to 46.7% in 2003.
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LABOUR PANORAMA
ACTUAL INCOME
• Actual reduction of 10.9% in the salaries at the industry, when comparing 2003 to 2001 in Latin America;
• In Canada, the actual minimum wage had a 7.1% drop when comparing 2003 to 2000;
• In the United States, the actual minimum wage had 11.3% a reduction when comparing 2003 to 1998;
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LABOUR PANORAMA
DISCRIMINATION
• United States (2004): the unemployment rate of blacks and Hispanics was respectively 10.4% e 7%, while the rate for whites was 4.8%. Among the black young people, from 16 to 17 years of age, the unemployment was 37.8%;
• Women and certain ethnic groups (blacks and indigenous) the Latin Americans have the highest unemployment rates and an income below the society’s average.
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LABOUR PANORAMA
CHILD LABOURLATIN AMERICA AND THE
CARIBBEAN
• In 2000, there were 17.4 million children economically active between 5 and 14 in the Latin America and the Caribbean region;
• Between 5 and 17, this number reaches 27.7 million.
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LABOUR PANORAMA
POVERTY
• The total number of poor people in Latin America raised from 135.9 million in 1980 to 221.4 million in 2002 (40.5% to 44% of the population);
• In the United States, the rate of poverty raised from 11.3% in 2000 to 12.5% of the population in 2003, i.e., it raised from 31.6 million to 35.9 million.
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Income Distribution - LAC x Indus.
48,0%
29,0%
1,6% 2,5%
0,0%
20,0%
40,0%
60,0%
ALeC Indus.
% d
a re
nd
a to
tal
10% mais ricos
10% maispobres
LABOUR PANORAMA INEQUALITY
LATIN AMERICA AND THE CARIBBEAN
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US Income Distribution(Richest 5%)
-
5,0
10,0
15,0
20,0
25,0
1980 1983 1986 1989 1992 1995 1998 2001
% d
a r
en
da t
ota
l
LABOUR PANORAMA INEQUALITY
LATIN AMERICA AND THE CARIBBEAN
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LABOUR PANORAMA
DECENT WORK DEFICITLATIN AMERICA AND THE
CARIBBEAN
• The decent work deficit, on absolute terms, reached 93 million workers in 2002, 30 million more than in 1990;
• The decent work deficit in this region jumped from 49.5% in 1990 to 51% of EAP in 2003.
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POLICIES FOR THE PROMOTION OF DECENT WORK
Decent Work Promotion
• “To stimulate the generation of jobs with social protection, respect to the fundamental labour rights and through social dialogue”
• The objective requires policies at several levels: macroeconomic and global labour world.
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POLICIES FOR THE PROMOTION OF DECENT WORK
Labour World
• Expansion of protection or social security;
• Labour relationships stimulating productivity;
• Corporations’ strengthening, especially the micro and small companies, for the improvement of the working conditions;
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POLICIES FOR THE PROMOTION OF DECENT WORK
Labour World
• Promotion of equity and combat of all kinds of discrimination: genre, race/ethnics, age and others;
• Combat of the worst forms of exploration, especially the child and forced labour;
• Social Dialogue.
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POLICIES TO PROMOTE DECENT WORK
National Level – Macroeconomic Environment
• Revision of the macroeconomic policies on behalf of development;
• Sustained Economic Growth;
• Integrated focus of the economic and social policies.
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POLICIES TO PROMOTE DECENT WORK
Global Level
Inclusive globalization:To maximize and improve the distributions
among countries;To minimize costs and avoid their
concentration in the society’s most vulnerable groups.
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INTER-AMERICAN MECHANISM TO PROMOTE DECENT WORK
MIPTRADE: set of actions to promote decent work in the ambit of a global strategy, which would require the formulation of Plans to Promote Decent Work at the National and the Americas’ levels as a whole.
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MIPTRADE
REQUIRED INVESTMENT
According to ILO’s estimates, the cost to eliminate the decent work deficit in Latin America and the Caribbean increased from 18.1% in 1990 to 18.5% of the GDP in 2002 (US$ 314 billion);
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MIPTRADE
REQUIRED INVESTMENT
• Recommendation from ILO to Latin America and the Caribbean; Investment of US$ 17 billion/year during 5 years (0.1264% of the Americas’ GDP);
• This amount does not include the cost of reduction of the decent work deficit in North America and the costs of MIPTRADE’s management;
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MIPTRADE
REQUIRED INVESTMENT
Segment of the population considered
in each country
Total Income witheld by segment
% of income corresponding to US$ 17
billion
Total Population US$ 13.4 trilhões 0..3
Only the 20% richest US$ 6.8 trilhões 0.25
Only the 10% richest US$ 4.3 trilhões 0.40
Only the 5% richest US$ 2.8 trilhões 0.60
Source: Self elaborated based on data from World Bank, Report: Inequality in Latin America and the Caribbean (2003); CEPAL, Social Panorama 2002-03; US Census Bureau, Report: Money Income in The United States (2002); Commission for the Labour Cooperation, Report: North America Labor Markets - Main Changes Since NAFTA (2003).
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MIPTRADE
GENERAL STRATEGY
MIPTRADE must be inserted into a general strategy to promote decent work, expressed in National and Inter-American Plans.
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MIPTRADE
PLANS TO PROMOTE DECENT WORK
Basic points
• Status of decent work;
• Definition of priorities and objectives;
• Elaboration of policies to attain objectives;
• Monitoring and Evaluation Procedure.
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MIPTRADE
STRATEGY MANAGEMENT
Systemization
CONATRADE
CINTRADE
ILO
National Plans
Directives for National Plans
Inter-American Plan
ILO/CIMT
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a) Inter-American Fund to Promote Decent Work– FIPTRADE;
b) New lines of financing in the international organisms specific for the generation of decent work;
c) Application of a portion of Social and Development Funds;
d) Investment Coordination;
e) Technical Cooperation.
MIPTRADE
LINES OF ACTION
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MIPTRADE
APPLICATION• Generation of Decent Work;• Promotion of Employment and Workers’ Qualification;• Strengthening of Labour Institutions;• Assistance to Workers affected by the trade
liberalization;• Equality of Opportunities;• Social Dialogue and Dermocratization of Labour
Relationships;• Combat child and slave work;• Work Quality.
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MIPTRADE
FINANCING ALTERNATIVES
I – Defined contribution of state-members
II – Increase of funds from international organisms dedicated to the Americas
III – Entailment of specific income source at the international sphere
IV – Voluntary donations from governments and society
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MIPTRADE is fundamental to the search for decent work for the workers in the Americas. Decent Work is an instrument for overcoming poverty and social inclusion