The Government’s economic strategy continues to focus on consolidating Bahrain’s position as the Gulf region’s free-trade and services hub. Although Bahrain’s economy is more diversified than many of its neighbours, oil related industries still comprise a large share of GDP, and government revenue is heavily reliant on oil earnings. It is expected that growth of 4.8 percent in 2001, easing slightly to 4.6 percent in 2002, as oil prices fall.

A newly created body – the Economic Development Board (EDB)- established in April 2001, will focus on formulating Bahrain’s economic development strategies and promoting the country for both internal and external investments.

Job creation and privatization remain a focus of the Bahraini government. The government launched, in March 2001, the "National Employment and Training Programme". The budget of the programme is $67 million for the duration of two years and it is planned to create 12,000 jobs. The employment and training programme consists of 11 projects, which include human resources development projects in order to ensure that the Bahraini labour force possesses the required skill profiles demanded by the labour market, and to secure productive employment for the unemployed and newly graduates from university, needy families, ex-employees and people with special needs. Social security allowances for nationals working in the public sector have been increased, the increase came into effect at the end of April 2001, and the increase was taken with the aim of improving the financial standing of more needy Bahrainis.

Upon the initiative of the Emir of Bahrain, the first referendum of its kind, on the National Charter on Political Reforms, was held in Bahrain in February 2001. The Charter was approved by the ruler, launching ambitious plans for democratization. The Charter offers substantive reforms including establishing a bicameral Assembly with an upper house of appointed experts and scholars and a lower house of elected deputies, and a public accountability council. As regards freedom of association, the Charter’s chapter 1 No. 5 states that "the State guarantees the right to set up private, scientific, cultural, and vocational associations and syndicates on patriotic bases, for legal purposes and through peaceful means in accordance with the conditions and situation stated by the law".

The Ministry of Labour and Social Affairs (MOLSA) in Bahrain aims to enhance the living standards of the Bahraini people through measures aimed at sustaining workforce stability, strengthen social services and social security programmes, enhance the competence of the workforce and strengthen the training sector. Prior to becoming Minister of Labour and Social Affairs in 1995, Mr. Abdulnabi Abdullah Al-Sho’ala was a businessman between 1974-1995. He is currently the chairman of the Council of the Ministers of Social Affairs and Labour in the GCC States.

The Bahrain Chamber of Commerce and Industry (BCCI) aims at expanding its activities and services in response to the changing needs and responsibilities. In this connection, the Chamber is expected to adopt a new structure, policies and strategies to further enhance the role of the private sector in the national economy in line with the recent government employment policies.

Within the framework of democratization, a national committee, including workers’ representatives, is reviewing the legal framework related to workers organizations. The ILO provided technical advisory services to the General Committee for Bahraini Workers (GCBW) on the revision of the present GCBW statutes and by-laws to be compatible with International Labour Standards and the National Charter in June 2001. The ILO will also assist GCBW in revising its organizational structure and introduce amendments to the relevant articles of the labour code to reflect new changes.

Bahrain is benefiting from a study on comparative analysis of national legislations and practice in light of ILO Fundamental Conventions currently being undertaken in all Gulf Cooperation Council (GCC) States.

Fellowships were awarded for participation in the following Turin Center training courses: "Follow-up to the Declaration of Fundamental Principles and Rights at Works" (April 2000); "International Labour Standards" (May 2000); and "Training of Trainers on International Labour Standards and the Declaration Reporting" (organized in Bahrain in collaboration with ARMAT and the Executive Bureau of the Council of the Ministers of Labour in GCC States, April 2001).

ILO has been executing, since 1997, an UNDP-funded project on "Enhancement of the Institutional capacity of Labour Market Analysis and Information" (UNDP: $364,925; ILO: $100,000). The project is assisting the Ministry of Labour and Social Affairs in strengthening its capacities in labour market monitoring and analysis. In the tripartite review meeting in May 2001, the concerned parties expressed satisfaction in progress in the project implementation and agreed on the new workplan for completion of the project in the first quarter of 2002.

Technical advisory services were provided to the Bahrain Training Institute (BTI) on small enterprise development in April 2000. This was followed up by a national seminar on "Economic Growth through Small Enterprise Development and Involvement of Youth" in May 2001, which was designed to strengthen BTI’s role in small enterprise development and promotion of employment of youth.

A national training workshop in community-based rehabilitation and income generation programmes was organized in April 2001.

National workshop on "Employability of Nationals and Decent Work" is planned for 2001, in collaboration with the Ministry of Social Affairs and Labour.

Information and technical advice is provided to the Ministry of Labour in the preparation of by-laws for freedom of association within the framework of the newly adopted National Charter.

Bahrain is benefiting from the ILO’s sub-regional activities as follows: ILO/AGFUND programme on "Promotion of Community-based Rehabilitation in GCC States" (located in UAE, the project is being reactivated upon receipt of AGFUND contribution early 2001); sub-regional training workshop on vocational advisors (Dubai, April 2000); and the assistance for establishing a unified labour market information system in GCC, which has been carried out jointly by ILO and the Executive Bureau of the Council of the Ministers of Labour in GCC (2000-2001);

Fellowships were awarded for participation in the following three Turin Center training courses: "New Trends in Vocational Education and Training Policy Analysis (July 2000); "Promotion of Women Worker’s Rights" (November 2000); and "Public Service Reform and Development" (November 2000).

A study on the working conditions of female migrant workers in Bahrain has been just completed.

Bahrain participated in the "Arab Inter-regional Meeting on the Promotion of Tripartism and Social dialogue" (Beirut, October 2000).

Fellowship for participation in the Turin Center training course for trade unions on collective bargaining" (Turin, October 2000);

Technical and financial contributions were provided to sub-regional workers’ seminar on trade union rights organized by the General Committee for Bahrain Workers (GCBW) in May 2001 and it is planned to field a technical advisory mission on workers rights, in the second half of 2001, in response to GCBW’s request.

Promotion of International Labour Standards and Tripartism

Bahrain ratified eight ILO Conventions, including four core Conventions as follows:

• Convention No. 29: Forced Labour, 1930
• Convention No. 105: Abolition of Forced Labour, 1957
• Convention No.111: Discrimination (Employment and Occupation), 1958

 Updated by CHW. Approved by RD. Last update: 3 August 2001.