Why poverty persists, by ILO

Why has it been difficult to fight poverty globally? It is because of lack of quality jobs and the economic meltdown, says the International Labour Organisation (ILO).

In its “World Employment and Social Outlook (WESO) 2016 – Transforming Jobs to End Poverty”, the ILO said over 36 per cent of the emerging and developing world live in poverty – on a daily income of less than $3.10.

The report noted that about $600 billion a year – or nearly $10 trillion over 15 years, is needed to eradicate extreme and moderate poverty globally by 2030.

The ILO also reported that persistent poverty cannot be solved by income transfers alone, adding that more better jobs are crucial to achieving this goal.

It stated: “It is estimated that almost a third of the extremely or moderately poor in developing economies have jobs. However, their employment is vulnerable in nature. They are sometimes unpaid, concentrated in low-skilled occupations and, in the absence of social protection, rely almost exclusively on labour income.

“Among developed countries, more workers have wage and salaried employment, but that does not stop them from falling into poverty”.

ILO Director-General Guy Ryder noted that the sustainable development goal of ending poverty in all its forms everywhere by 2030 remained at serious risk.

He said: “If we are serious about the 2030 agenda and want to finally put an end to the scourge of poverty perpetuating across generations, then we must focus on the quality of jobs in all nations.”

ILO’s Special Adviser on Social and Economic Issues Raymond Torres explained that the world’s 30 per cent poor hold two per cent of the global income.

Torres explained that only through deliberate improving the quality of employment for those who have jobs and creating new decent work will countries provide a durable exit from precarious living conditions and improve livelihoods for the working poor and their families.

The study also found that high levels of income inequality reduce the impact of economic growth on poverty reduction.

“This finding tells us that it is past time to reflect on the responsibility of rich nations and individuals in the perpetuation of poverty. Accepting the status quo is not an option,” said Torres.

The report concluded that transforming jobs to end poverty would require tackling low productivity traps, which lie at the heart of poverty; strengthening rights at work and enable employer and worker organisations to reach the poor; and alleviating poverty through well-designed employment and social policies.

Other recommendations of the report are: reinforcing governments’ capacity to implement poverty-reducing policies and standards; boosting resources and making the rich aware of their responsibility; and involving the ILO in the achievement of Sustainable Development Goals.

Subscribe to our Newsletter

* indicates required

Intuit Mailchimp