EkPahal

Manthan Topic-14

PROTECTING THE VULNERABLE

Team Ek Pahal-IIM Indore

Abhijeet Singh

Dr.Abhishek Kothari Ishansh Niranjan Mohit Shital Anshu Ranjan

The informal sector is that part of an economy that is not taxed, monitored by any form of government, or included in any gross national product (GNP), unlike the formal economy

Categorization of the Informal sector labour force In terms of Occupation:

• Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. come under this category

In terms of Nature of Employment: • Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this

In terms of Specially distressed categories: • Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and unloaders come under this

category

In terms of Service categories: • Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors, News paper vendors etc. belong to

this category

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

Sectors 2004-05 Informal 2004-05 Formal 2004-05 Total 2009-10 Informal 2009-10 Formal 2009-10 Total

Unorganised 393.5 1.4 394.9 385.08 2.26 387.34

Organised 29.1 33.4 62.6 42.14 30.74 72.88

Distribution of workforce in Organized and unorganized Sector Value in millions

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

Collection of data

Formulation of policy

Look for NGOs Coordination with Schools

Coordination with govt Collaboration with Post offices/Banks

Assigning them Numbers and gauging migration

Involving whole society

6-8 Months

3-4 months

2 months

6 months

3 months

4 months

2 months

Continuous effort

• All vegetable vendors are given particular number. • Dividing city into areas which are further subdivided into

sub-areas • Each sub area will have particular number of vendors. • Vendors of an area will be headed by a person who will work

under local municipality or Nagar Nigam • Deposits money with head who works as an agent of Post

Office

• Recognition and identity is established • Economic security due to deposit in post office. Hence can avail

loan • Policies and centralised schemes applicable as number of

vendors and their identity are known. Hence social security established

• Migration can be gauged which can help government to make policies accordingly

Consequences

Choices/ decision

Street vendors

Vendors-Number and Area

Better Opportunities Created

Govt polices to be formed accordingly

Gauging Migration

Social Security Economic Security

Loan Availability

Area Head deposits money in Post office

Govt and Policies

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

• All house maids are given particular number • Dividing city into areas • Each area will have particular number of maids • Each area will be headed by a person who will work

under local municipality or Nagar Nigam • Deposits money with head who also works as an

agent of Post Office/ Bank • Set the time limit for working hours. • School timing run by Govt. or NGO’s fixed

according to time limit of maids • NGO will work as an intermediary for achieving the

task

Consequences

Choices/ decision House Helpers

• Economic security due to deposit in post office. Hence can avail loan

• Policies and centralised schemes applicable as number of maids and their identity are known. Hence social security established

• Migration can be gauged which can help government to make policies accordingly

• Children can get education and also can reap benefit of centralised education scheme

House maid-Number and area

Better Opportunities Created

Govt polices to be formed accordingly

Gauging Migration

Social Security Economic Security

Loan Availability

Area Head deposits money in Post office

Govt and Policies NGO as Intermediary

Fix working hours

School hours changed accordingly

Education-children

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

• All waste pickers who picks garbage from home to come under Nagar Nigam or local Municipalities

• Getting money from people according to the rates decided by Nagar Nigam

• Fixing the rates so that they are not exploited • Depositing their income in bank accounts by

local administration

• Recognition and identity is established • Economic security due to deposit in post

office/banks. Hence can avail loan • Policies and centralised schemes applicable as

number of waste pickers and their identity are known. Hence social security established

• Migration can be gauged which can help government to make policies accordingly

Consequences

Stage 1 Choices/ decision

Waste Pickers

All waste pickers covered under Nagar Nigam or Municipalities

Better Opportunities Created

Govt polices to be formed accordingly

Gauging Migration

Social Security Economic Security

Loan Availability

Income deposited in Post office/Banks

Govt and Policies

Fixing rates

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

• Use waste pickers which are working under Nagar Nigam or Municipality to work as an agent and gather data about other waste pickers

• Subsequently register them • Working with NGO to help them register and try

to give them basic education • After gauging their activity for a year, help them

get access to banking facility

• Recognition and identity is established • Policies and centralised schemes applicable as

number of waste pickers and their identity are known. Hence social security established

• Migration can be gauged which can help government to make policies accordingly

• Better practices for waste picking can be taught • Bank or Post Office account will help govt. pass

on funds without any leakage

Consequences

Stage 2 Choices/ decision

Waste Pickers

Better Opportunities Created

Govt polices to be formed accordingly

Gauging Migration

Social Security

Basic Education

Gauging their activity for a year

NGO

Register

Opening of account

Use of existing waste pickers as agents

Govt transfer funds according to policies

Improved economically

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

Industrial Workers

• Compulsory registration of workers on website or to agency associated with it

• Basic education provided to them

• Making a committee at district level where for every block will be headed by one person(can be the person who is already working in industry) who help people register and get data about that industry at micro level

• Policies can be formulated accordingly

• Real time data will be available and social and economic condition could be improved subsequently by making laws

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

Financial inclusion services

Business Development Services

Institutional development

Saving: direct through agents at area level in PO

Productivity enhancement though reduction in cost and increase in efficiency

Skill and entrepreneurship development Individual awareness

Credit: loans from banking sector

Risk Mitigation through insurance

Group formation in area Mutual benefit

Govt. subsidies availability

Govt. subsidies availability Usage of IT for accounting and information management system

Pillars of support

NGO

Local Govt./ Institutions

Local People

Economic security

Social security

Sustainability

Introduction Street vendors Pillars of support Industrial workers Waste Pickers House Maids Timeline

References • Measuring the Informal Economy in Developing Countries by Indrajit Bairagya • Report of the Committee on Unorganised Sector Statistics by National Statistical

Commission Government of India • The Informal Economy: Fact Finding Study by Department for Infrastructure and

Economic Cooperation. Retrieved 20 November 2011