|
Better Services, More Jobs
Statement by Mr. Kees van der Ree,
ILO
InFocus Programme on Boosting Employment Through
Small Enterprise Development (SEED)
29 April 2004
The point of engaging small enterprises
in local service provision is not whether, but how this should
be done. Informal service markets are developing rapidly in
almost all urban centres in poor countries. Growing cities,
persistent poverty and enterprising communities do not leave
municipal authorities much of a choice. They should recognize
and appreciate the viable and valuable contribution local service
providers make to the sustainability of human settlements.
An enabling regulatory environment
at the local level is the key prerequisite. This means: political
will to engage the local private sector, a contracting system
and bye-laws that are pro-local and recognize the needs of the
poor, and strong backing through sensitization, mobilization
and enforcement of the roles of stakeholders.
The Municipality of Dar es Salaam,
Tanzania, did it. They had the vision, the voice and the vote
to adopt a city-wide franchising system for solid waste collection
that builds on the capabilities of the local private sector.
Since 1999, about 50 community-based enterprises and for-profit
small and medium enterprises (SMEs) collect and transport waste
from households and business premises. Each of them has the
sole right to collect waste, and the service fee, in designated
wards. More than 2,000 new jobs have been created, many for
women and young people. Recycling and transport have brought
about dozens of new enterprises too. The coverage rate in the
city increased tenfold. The city is much cleaner. More importantly,
previously unserviced areas – where many of the poor live -
are now being offered a service. This expansion of the service
market brought about new roles for the municipal staff, avoiding
job losses among waste workers.
The approach has been heralded
as “Better services, more jobs”. UN HABITAT and ILO have been
working together to expand this concept. Technical assistance
to municipal authorities guides them through appropriate tendering
and contracting procedures. Entrepreneurship training through
a programme called “Start Your Waste Collection Business” helps
community enterprises to get started. An innovative scheme
of micro-leasing addresses the capital needs of the small contractors.
Dialogue and consultations between government staff, communities
and representatives of small business underpin the approach.
The concept of Public-Private Partnerships is now being taken
up by another 10 municipalities in Tanzania, and has interested
the Kenyan and Ugandan governments. Through a series of subregional
workshops, UN HABITAT and ILO are jointly promoting the strategies
and tools in other parts of the world.
This form of public-private partnership
is a win-win situation:
- It gratifies the entrepreneur,
for the investment and risk taking;
- It amplifies the workforce,
in response to the need for new jobs;
- It satisfies the communities
and the municipality, and their desire for basic services.
Employment-intensive investment
strategies and enterprise-based service delivery are proven
means of improving living conditions of the poor. We at ILO
have worked on rural road construction and urban drainage systems
– through community contracting and the engagement of local
enterprises. They marry the need for quality services with the
cry for decent jobs. Water distribution and sanitation could
be improved in this way too. Already, a training package is
being developed on “How to start and run a community-based water
distribution business”.
Today there is an expanding service
market, with new services being offered to residents and business
owners able to pay a reasonable, affordable fee. It is the task
of the municipality to make these services also accessible for
poorer clients, and ensure that service workers have decent
jobs. By formalizing local enterprises through agreed
partnership contracts, the authorities can also get a grip on
safe working conditions, proper wage levels and the elimination
of child labour. (Sanitation, fresh water distribution, minor
road maintenance, and drain construction – these are all business
venues where the local private sector can make a fair profit,
whilst making the concerned communities participate meaningfully).
An enabling contracting system with adequate monitoring mechanisms
is critical to obtain cities that work for all.
Links:
|
