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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
10
annual % change
8
6
4
2
0
Pakistan
source: Worldbank, 2002
Bangladesh
India
Vietnam
GDP per capita growth rate
Poverty reduction
China
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
Ethiopia
Senegal
Rwanda
Côte d’Ivoire
Burkina Faso
82
101
132
139
145
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