Policy initiatives in the past few years in most of the countries in South Asia have resulted in economic growth in varying degrees in all the countries. For example, the Indian economy has been on a steady growth path for about two decades now, with prospects of continuation of this growth in the medium-term. However, since a large part of the workforce in most of the countries in this subregion is in the informal economy, the fruits of growth have not filtered down to this major part of the workforce, though this part of the economy contributes to the GDPs of countries. Therefore, translating economic gains into productive employment for many to ensure inclusive growth remains a challenge.
Also, there is a high incidence of ‘working poor’ coupled with an increasing casualization of labour, high youth unemployment, a stagnant agriculture sector and outdated labour laws in some countries. A large number of jobs are characterized by low earnings, low productivity and poor conditions of work. In addition to the gender dimensions, specific segments of workers are at a distinct disadvantage arising out of their situations of local distress, induced migration, working children, workers with physical challenges or those in bondage-like conditions. Marketable vocational skills, gender discrimination, an absence of adequate social protection mechanisms, internal migration of unskilled workers and vulnerability to natural and other disasters are other concerns that South Asia has to contend with. Although the South Asia subregion has been somewhat resilient during the global economic slowdown, effects have been felt especially by the large workforces in the informal parts of the economies.
There is growing concern in the countries for focused attention and special measures to ensure that mechanisms and policy initiatives are put in place to bring incremental changes in the lives of the millions of workers and their families in the informal economies. The Decent Work Country Programmes in the countries in this subregion are working closely with partners, both at policy and operational levels, to bring about desired changes.
ILO’s commitment to facilitate outreach of partners into the informal economy was strengthened by the adoption of conclusions on Decent Work and the Informal Economy, at the International Labour Conference at its 90th Session in June 2002.