Alleviating Poverty in Nigeria through the Improvement of the Labour Conditions in the Informal Economy: A Socio-ethical Enquiry (Europäische ... / Publications Universitaires Européennes)

«Just wage and just working conditions have always occupied a central position in Catholic social ethics. The social teaching of the Catholic Church has however preoccupied itself for a long time with the employment relationships in the formal economy. Consequently, the self-employment and the other individual economic activities in the informal economy, highly important in developing countries, have until now not been ethically reflected upon. In this excellent study, the author takes the Nigerian situation as a point of departure from which he offers new opportunities for developing a poverty alleviation strategy that aims, above all, at creating Decent Work opportunities in the informal economy. This is indeed an excellent contribution not only to the further development of the Catholic social ethics for the African context but also to the current efforts in the continent at reducing poverty in a sustainable way.» Professor Dr. Bernhard Emunds, Frankfurt am Main Cover CONTENTS FOREWORD ACKNOWLEDGEMENTS ABBREVIATIONS GENERAL INTRODUCTION CHAPTER ONET he Problem of Poverty Introduction 1.1 Conceptual Framework 1.1.1 Definition 1.1.2 Types of Poverty 1.2 Measuring Poverty 1.2.1 Measurement by Income and Consumption 1.2.2 The Human Poverty Index (HPI) 1.3 Working Poverty 1.3.1 Definition 1.3.2 Trends and Estimates 1.3.2.1 Global Estimates 1.3.2.2 Sub-regional Estimates 1.4 Causes of Poverty 1.4.1 Bad National Governance 1.4.2 Colonialism 1.4.3 Deficiencies in Global Economic Governance 1.5 Conclusion CHAPTER TWO Informal Economy in General Introduction 2.1 Conceptual Framework 2.1.1 Initial Concept: Informal Sector 2.1.2 New Concept and Expanded Definition 2.1.3 Some Misconceptions about the Informal Economy 2.1.3.1 Black or Criminal Economy 2.1.3.2 Reproductive or Care Economy 2.1.3.3 Micro and Small-Scale Enterprises (MSEs) 2.2 People in the Informal Economy 2.2.1 Categorization 2.2.2 Most Vulnerable Groups 2.2.2.1 Women 2.2.2.2 Children and Young People 2.3 Size and Contributions of the Informal Economy to Economic Development 2.4 The Conditions of Work in the Informal Economy 2.4.1 Security Gap 2.4.2 Decent Work Deficit 2.5 Factors Responsible for Informality and its Expansion 2.5.1 Governance: Weak Legal and Institutional Frameworks 2.5.2 Poor Economic Performance and Non-pro-poor Economic Growth 2.5.3 Flexible Specialization and Global Chains 2.6 Linkages between Poverty and the Informal Economy 2.7 Conclusion CHAPTER THREE Poverty and the Informal Economy in Nigeria Introduction 3.1 Poverty in Nigeria 3.1.1 An Overview: Paradox of Poverty in Wealth 3.1.2 Causes of Poverty in Nigeria 3.1.2.1 Political and Administrative Factors 3.1.2.2 Socio-economic Factors 3.1.2.2.1 Physical Infrastructure 3.1.2.2.2 Financial Services 3.1.2.2.3 Social Services 3.1.2.2.4 Social Inequality and Income Gap 3.1.2.2.5 Corruption 3.1.2.2.6 Bad Patterns of Economic Development 3.2 The Informal Economy in Nigeria 3.2.1 Emergence and Expansion of the Informal Economy in Nigeria 3.2.2 Magnitude and Size of Nigerian Informal Economy 3.2.3 Categorization of Informal Activities 3.2.3.1 The Informal Productive Sector 3.2.3.2 The Informal Service Sector 3.2.3.3 Informal Financial Sector 3.2.3.4 The Informal Trading Sector 3.2.4 Major Types of Labour Relationship in the Nigerian Informal Economy 3.2.4.1 Family Labour 3.2.4.2 Casual Labour 3.2.4.3 Apprenticeship 3.2.4.4 Permanent Labour 3.2.4.5 Communal Labour 3.2.4.6 Child Labour 3.2.4.7 Commission Workers 3.2.5 Women and Gender Discrimination in Nigerian Informal Economy 3.2.6 The Contributions of the Informal Economy to National Development 3.2.6.1 Supporting to Job Creation 3.2.6.2 Contributing to National Wealth 3.2.6.3 Enhancing Innovation and Adaptation 3.2.6.4 Helping in the Mobilisation of Resources 3.2.6.5 Facilitating Distribution of Goods and Services 3.2.6.6 Helping to Cushion the Effects of Unemployment and Economic Crisis 3.2.7 Challenges of the Informal Economy in Nigeria 3.2.7.1 High Costs of Starting and Doing Business 3.2.7.2 Exploitative Linkages between the Informal Economy and the Formal Economy 3.2.7.3 Limited Access to Capital 3.2.7.4 Limited Access to Market 3.2.7.5 Lack of Access to Modern Technology 3.2.7.6 Low Capacity Building to Promote Mobility and Diversification 3.2.7.7 Violation of Labour Standards and Right 3.2.7.8 The Absence of Social protection 3.2.7.9 Non-compliance with Occupational Safety and Health Standards 3.2.7.10 Lack of Representation and Voice 3.3 Conclusion CHAPTER FOUR Impulses from the Catholic Social Teaching Introduction 4.1 Catholic Social Teaching: Conceptual Framework 4.2 Principles of the Catholic Social Teaching vis-à-vis Poverty 4.2.1 The Cardinal Ethical Principles 4.2.1.1 The Principle of the Human Dignity 4.2.1.2 Justice 4.2.2 The Basic Social Principles 4.2.2.1 The Principle of Common Good 4.2.2.2 The Principle of the Universal Destination of Goods 4.2.2.3 The Principle of Solidarity 4.3 Analysis of Poverty in Catholic Social Teaching 4.3.1 Theological Understanding of Poverty 4.3.2 Social Analysis of Poverty 4.4 Unjust Structures Responsible for Poverty 4.4.1 Unjust Structures in the Distribution of Wealth 4.4.2 Unjust Structures in the Organization of Human Labour 4.4.3 Economic Injustice 4.5 Guidelines for Poverty Alleviation 4.5.1 The Guidelines in General 4.5.2 Work: Key Instrument against Poverty 4.5.3 Improving Employment and Labour Conditions 4.5.4 Social Security Programmes against Poverty 4.5.5 Just Economic Order: An Essential Requirement for Poverty Alleviation 4.5.5.1 The Role of Markets towards a Just Economic Order 4.5.5.2 The Contributions of the State towards Economic Justice 4.5.5.3 The Role of International Community towards Economic Justice 4.5.5.4 The Role of Business Owners and Management towards Economic Justice 4.6 Appraisal and Conclusion CHAPTER FIVE Poverty Alleviation Strategies in International Discussions 5.1 Previous Efforts 5.1.1 Pre-industrialization Era 5.1.2 The Era of Industrial Revolution 5.1.3 Post-Industrialization Era 5.1.3.1 Economic Growth and Trickle-down Approach 5.1.3.2 Basic Human Needs Approach 5.1.3.3 Neo-liberal Approach 5.1.3.4 Structural Adjustment Era 5.1.3.5 Washington Consensus 5.1.4 Appraisal of Previous Poverty Alleviation Efforts 5.2 Current Efforts at Alleviating Poverty 5.2.1 Pro-Poor Growth Concept 5.2.2 Post-Washington Consensus 5.2.3 Poverty Reduction Strategies Papers 5.2.4 The United Nations Millennium Declaration 5.2.5 Appraisal of Current Growth-approach to Poverty Alleviation 5.3 The ILO Pro-Poor Approach: Labour Intensive Growth 5.3.1 ILO’s Decent Work Agenda: Key to Social Justice and Poverty Reduction 5.3.2 Decent Work: A Global Goal 5.3.3 The Informal Economy – The Priority of the Decent Work Agenda 5.3.4 Decent Work, Informal Economy and Poverty Reduction Strategy Process 5.3.5 Appraisal of ILO Approach and Possible Consequences for the CST 5.4 Conclusion CHAPTER SIX Previous and Current Poverty Alleviation Efforts in Nigeria Introduction 6.1 Previous Efforts 6.1.1 Poverty Alleviation in Pre-colonial Nigeria 6.1.2 Poverty Alleviation in Colonial Nigeria 6.1.3 Poverty Alleviation since Independence 6.1.3.1 Poverty Alleviation in the Pre-SAP Era 6.1.3.2 Poverty Alleviation in the SAP Era 6.1.3.3 Poverty Alleviation in the Post-SAP Era 6.1.4 Appraisal of Previous Efforts at Reducing Poverty 6.2 Current Efforts at Alleviating Poverty 6.2.1 The National Poverty Eradication Programme 6.2.2 National Economic Empowerment and Development Strategy 6.2.3 Some Recent Economic Reforms 6.2.3.1 Macroeconomic Reforms 6.2.3.2 Structural Reforms 6.2.3.2.1 Privatization 6.2.3.2.2 Civil Service Reform 6.2.3.2.3 Banking Sector Reform 6.2.3.2.4 Trade Policy Reform 6.2.3.3 Institutional and Governance Reforms 6.2.4 Appraisal of Current National Efforts 6.3 Contributions of the Nigerian Church to Poverty Alleviation 6.3.1 Official Pronouncements: Communiqués 6.3.2 Prayer 6.3.3 Concrete Actions for Social Justice and Poverty alleviation 6.3.4 Appraisal of the Church’s Contribution 6.4 Conclusion CHAPTER SEVEN Recommendations for an Integrated Poverty Alleviation Framework in Nigeria Introduction 7.1 Employment-Intensive Growth for Poverty Alleviation 7.1.1 Components of the Employment-Intensive Growth Framework 7.1.1.1 A Growth Component 7.1.1.2 An Employment Component 7.1.1.3 A Poverty Focus 7.1.2 Economic Policies to Support Employment-Intensive Growth 7.1.2.1 The Macroeconomic Environment and Price Stability 7.1.2.2 The Financial Sector 7.1.2.3 Budgetary Policy and Public Investment 7.1.2.4 Trade Policy 7.1.3 Strengthening Institutions and Governance 7.1.4 Improving the Rule of Law and Transparency 7.1.5 Eliminating Inequality 7.2 Improving Labour Conditions in the Informal Economy 7.2.1 Improving Statistics on Informal Economic Activities 7.2.2 Creating Decent Employment Opportunities for People in the Informal Economy 7.2.2.1 Investing in the Workforce: Improving Knowledge and Skills 7.2.2.2 Investing in Enterprise Development 7.2.2.2.1 Creating Enabling Environment Framework for EnterpriseDevelopment 7.2.2.2.2 Good Governance and the Role of National and Local Governments 7.2.2.2.3 Creating an Enterprise Culture for Formal Decent Jobs 7.2.2.2.4 Securing Property Rights 7.2.2.2.5 Access to Finance 7.2.2.2.6 Improving Linkages with the Formal Economy 7.2.2.2.7 Clustering 7.2.3 Enhancing Labour standards and Workers’ Rights in the Informal Economy 7.2.3.1 Improving Legislation and Enforcement 7.2.3.2 Improving Commercial and Business Regulation 7.2.3.3 Promoting Legal Literacy 7.2.4 Strengthening Social Protection in the Informal Economy 7.2.4.1 Extending the Statutory Social Protection Scheme to the Informal Economy 7.2.4.2 Developing and Strengthening Micro-insurance for Informal Workers 7.2.4.3 Improving Occupational Safety and Health in the Informal Economy 7.2.5 Strengthening Representation in the Informal Economy 7.2.5.1 The Role of National and Local Governments 7.2.5.2 The Role of Trade Unions 7.2.5.3 The Role of Employers’ Organizations GENERAL CONCLUSION AND CHALLENGES FOR THE NIGERIAN CHURCH Résumé The Role of the Nigerian Church in Promoting Decent Work for Poverty Alleviation Towards Building a Just Society The Church as Economic Actor Supporter of the Working Poor SELECTED BIBLIOGRAPHY