Tuesday, 24 February 2009, 3pm, Parvathi Hall
Speaker: Dr. Sunil Kumar, Department of Social Policy, LSE
Host
Institute for Financial Management and Research
Centre for Development Finance
24, Kothari Road, Nungambakkam, Chennai 600 034
Abstract
In a largely monetised urban context, the remuneration generated from waged, self-employed, contract and casual work is significant, as opportunities for self-provisioning (such as urban agriculture) are limited. Several issues are pertinent to contemporary discussions of vulnerability and the informal labour market. First, the evidence overwhelmingly points to the fact that the urban informal economy is not only here to stay but is growing and provides the only livelihood option for a significant proportion of the non-agricultural work force in Asia, Africa and Latin America. Second, a decline in regular waged work is pushing former salaried employees into the informal economy. Third, changes in employment practices as a result of globalisation, especially in new areas of comparative advantage (such as services), are giving rise to contract based employer-employee relationship with reduced welfare benefits. Finally, concerns relating to the informal economy in the 1970s, such as precarious, low-wage and irregular income, the lack of welfare benefits and poor working environments, remain the same in the 21st century.
This paper is conceptual and focuses on three questions relating to the vulnerability of informal workers. First, how best can informal workers secure social protection? Second, what form of social protection is most appropriate to the contemporary world of work? Third, what role should the state play in securing and safeguarding social protection for informal workers? This conceptual enquiry will be placed in the context of India where attempts are being made both by informal workers organisations to secure and the state to legislate and institutionalise social protection. This paper will argue that benefits of these actions are limited mainly because they are premised on traditional employer-employee relationships. There is an urgent need therefore to consider alternative forms and mechanisms to enhance the rights of informal workers to social protection.