HOMENET SOUTH ASIA & SOUTH EAST ASIA
BACKGROUND
World Class Cities for All: Inclusive Urban Planning for the Urban Working Poor
I. BACKGROUND AND RATIONALE
Over the past two decades, the informal economy has grown rapidly in all regions of the world, emerging in unexpected places and in new guises. In developing economies, the majority of the working poor, more so women, work in the informal economy. In transition economies, many retrenched workers and many so-called “unemployed” work in the informal economy. And, in developed countries, an increasing share of paid workers is hired under flexible, often informal, employment arrangements and a significant share of the total workforce is self-employed. Available evidence suggests that those who work in the informal economy, especially women, have lower average earnings and higher average risks than those who work in the formal economy. Yet the role of informal employment in providing a key pathway out of poverty and in achieving economic growth is entirely understated. This global project would focus on addressing urban poverty by supporting and building the capacity of membership-based organizations of the urban poor working in the urban informal economy, notably: organizations of street vendors, waste pickers, and home-based workers.
There is a growing global movement of the working poor, especially women, in the informal economy. Much of the impetus and inspiration for this growing movement has come from the Self-Employed Women’s Association (SEWA) of India, a trade union of low-income women founded in India in 1972. In 1997, SEWA helped found the global action-research-policy network Women in Informal Employment: Globalizing and Organizing (WIEGO). With support from WIEGO, SEWA has been a founding member of two regional organizations of home-based workers (HomeNet South and South East Asia) and an international alliance of organizations of street vendors (StreetNet International).
In April 2006, members of this growing global movement of the working poor in the informal economy met in Durban, South Africa for a two-day policy colloquium called “World Class Cities for All: Inclusive Planning for the Working Poor in the Urban Informal Economy” with a focus on street vendors, waste pickers, and home-based workers Present at that meeting were SEWA, StreetNet International, HomeNet South and South East Asia as well as representatives from waste picker associations and other groups engaged in the urban informal economy. The meeting was organized by WIEGO (Women in Informal Employment, Globalizing and Organizing) in collaboration with StreetNet and the
Thirty years ago, the percentage of the global population living in urban areas was less than per cent. 2008 marked a “tipping point”: more than half of the global population now lives in urban areas. In developing countries, 75 percent of the urban population live in slums or squatter settlement and eke out a livelihood in the urban informal economy. Yet cities, pre-occupied with competing for ‘world class city’ status tend not to integrate informal workers and informal enterprises in their urban planning and economic development strategies.
To counter the exclusionary trends in modernizing cities today, what is called for is a fundamental rethinking and reshaping of urban plans, regulations, and policies to incorporate the working poor. What is needed, first and foremost, is to recognize that the urban informal economy is part-and-parcel of the economy of towns and cities of the developing world and is here to stay; and that the towns and cities of tomorrow should – indeed must - remain “hybrid” if urban poverty – and urban violence – are to be reduced. Towns and cities should allow street vendors, hawkers, small kiosks and shops to exist alongside large retail shops and malls; should incorporate waste pickers into modern solid waste management systems; and should support home-based production through basic infrastructure and appropriate zoning policies. The living conditions of the poor often determine their work conditions and growth of urban infrastructure needs to take into account the basic needs of this large population. This will require inclusive, rather than exclusive, urban infrastructure and services; urban zoning; urban regulations and laws; and urban plans and policies. This, in turn, will require inclusive urban planning processes in which representatives of the working poor have a voice.
At the Durban urban policies colloquium, a common vision was presented that provides a conceptual and operational foundation for the proposed project with the Bill & Melinda Gates Foundation. More importantly, the international movement of organizations of the working poor, especially women, in the informal economy provides existing networks of membership-based organizations of the urban working poor that have already collaborated together in various ways.
Vision of success:
In the pursuit of “World Class Cities for All”, the movement of the working poor in the urban informal economy seeks:
- A vision of cities that incorporates the informal economy as a valuable asset that not only adds colour and life to cities, but contributes significantly to the economy.
- A vision of the city which recognizes that the living and working needs of the urban working poor and builds the city around them.
- A creative approach to planning that accommodates the dynamic working and living needs of those working informally through their involvement in decision-making and implementation processes.
- Workers that are organized enough to shape the trajectories of cities as well as local and national governments that proactively seek to hear the voices of more marginalized groups within the informal economy.
II. PROJECT OBJECTIVES
This is a global collective project with the following Common Core Objectives.
- To improve the organizational strength and bargaining-negotiating-advocacy capacity of the Membership-Based Organizations (MBOs) of street vendors, waste pickers, and home-based workers and to assist them in achieving their needs and goals for supportive urban laws, regulations, and policies, as well as adequate housing, infrastructure, and other essential services.
- To provide the research and statistics, good practice examples, and policy analysis that the Membership-Based Organizations (MBOs) of urban working poor need to pursue their activities and campaign objectives for 2009-2013.
- To educate and influence key policymakers at the local, national, and international levels by disseminating research, statistics, and data analysis that illuminates issues faced by the urban working poor.
- To raise awareness among policymakers of the need and benefits to including the urban working poor within the framework of “World Class Cities for All.”
Bangkok – Thailand, 02nd—04th February 2010
HomeNet South Asia and HomeNet South East Asia.
Activities Schedule
Schedule for the Meeting:-
| Date | Topic | Detailed discussion on |
| 2nd Feb 2010 | Project Orientation | - IUP Proposal (objectives, activities, outcome, impact) - Progress Reporting format (as per GATES Foundation requirements) |
| 3rd Feb 2010 | Project Activities Planning of MBO training in Year I & Year II | - Activities in YEAR 1. - MBO training ( expectations from this training, finalization of training dates) |
| 4th Feb 2010 | Gaps in the Financial Due Diligence | - Financial Manual - Accounting System - Annual reporting format (as per GATES Foundation requirements) |
Materials Summary
Day 1; 2nd February 2010; PROJECT ORIENTATION
Bill and Mellinda Gate Foundation (BMGF) gives donation to cope the urban problem especially for women working poor, they call the project as the “URBAN INCLUSIVE CITY”.
Program Objective:
1. Strengthen and expand very low income urban women working poor, women home workers for Indonesia.
2. Awareness and campaign for urban zoning, infrastructure service, and planning affected the women home workers.
3. Capacity building, Members Based Organization, and Networking.
4. Meet specific livelihood and security for women home workers.
Voice:
1. Mapping exercise.
2. Organizing new group of home-based workers (HBW).
3. Round table dialogue.
4. Policy forum and awareness raising based on research finding.
5. Regional compilation of report.
6. Research on HBW issues.
7. National and regional fair for HBW production.
8. Best practices will be documented.
Target:
HomeNet International, build the HBW international organization.
1. Clear profile of HBW based on mapping, research, and action.
2. Well documentation.
3. Well accomplishment.
Program Monitoring unit:
1. Weekly basis with HomeNet South Asia.
2. Consolidate every month.
3. Program managers and account manager create the separate email.
4. Teleconference between Finance Team (HNSA and SEA) with countries will take place one a fortnight to support the process of establishing the accounting system in SEA countries.
Day 2; 3rd Feburary 2010; Project Activities and Planning of MBO training in Year I & Year II
Country Problem Sharing
1. Market flexibility, makes the number of HBW increase and become the black economy.
2. Joint job as homeworkers, street vendors, and waste pickers.
3. No policy and no social protection for HBW.
4. Competition with the big company and factory.
5. Not a hot issue yet.
Member Based Organization (MBOs) Worksho at SEWA (March 2010)
1. The concept of MBO
a. The structure and model of MBO.
b. Democratic mechanism.
c. Governance and due diligence.
d. 6 characteristics of MBO.
e. Election and representative of HBW at the homenet.
2. Various model adopted by the SEWA to empower women working poor.
àCommunity Based Organization, Cooperative, Networking.
MBO is the self-reliance organization, the members pay for the membership to the organization.
1. MBO versus Network Organization.
2. Formating the MBO for HNSEA and in each country.
3. Federation of HBWs and the network with trade union, research institute, trade institute, researchers and university, and other institutions that’s concern about the HBW.
4. The experience and knowledge from MBO workshop must be distribute to other homenet country members.
5. MBO Workshop at SEWA planned: 20th--24th March 2010.
Day 3; 4th February 2010; Gaps in the Financial Due Diligence
International Labor Convention 177 Campaign
Joint program among the HNSA and HNSEA and forming the Homenet International.
HomeNet South East Asia (HNSEA):
1. Philipine: Decent work agenda until 2011
2. Thailand: Labor act ratification. Labor Minitry reject the ILC 177 ratification.
3. Indonesia: The government reject to ratification of ILC 177.
4. Laos: The government still studying about ILC177.
5. Cambodia: No campaign.
HomeNet South Asia (HNSA):
1. India: Government reject.
2. Srilangka: Look to India
3. Bangladesh: Look to India
4. Pakistan: Political problem.
5. Nepal: Adopted but not ratification yet.
Note: only 7 countries already ratification ILC 177 (Denmark, Argentine, Netherland, Bosnia etc.).
HNSA and HNSEA Meeting to forming the HN International and international campaign for ILC 177
The meeting will be at Bangkok – Thailand, 1st—4th August 2010.
Financial and Accounting System
Objective:
1. Communicating the reporting.
2. Reporting formats.
3. Indirect cost and traveling cost issue with budget categories.
4. Fund flexibility.
5. The system gap.
Good financial system à to get money à to do activities à to help other people.
Objectives of HomeNet:
1. Visibility of HBW.
2. Advocate national policy.
3. Strengthening the HBW networking.
Continues Money Flow:
1. Spending money responsible according to the standard rules.
2. Showing our result to the funders and the world.
3. Being creative in fund raising.
Working plan:
Prepare the Financial and Accounting System Manual
1. Cycle of Financial Management.
2. Process (Flow chart, operational and financial guidelines, control and procedures).
3. Chart of account.
4. Authority and segregation of job (find the example on the HNSA and HNSEA Manual System).
The HNSA Trust System:
1. Financial procedures.
2. Financial manual.
a. Preparation of budget.
i. Experience and need.
ii. Percentage.
b. Funds management.
i. Board or council à chairman/woman + project manager.
ii. Separate bank account.
iii. Signature authority.
iv. The sustainability of the fund
v. Finds network to share the knowledge to keep sustainable activities.
c. Finance or purchase committee (procurement procedure).
d. Accounting system.
e. Audit requirement.
f. Financial monitoring and reporting system.
g. Reporting guidelines.
3. Delegation of power and conflict of interest.
4. Travel policy.
Details of IUP Project
Finance Requirement:
1. Separate account for IUP Project.
2. The Bank Account minimum tree signatories.
3. Full time account persons.
4. Formation of Finance Committee and purchase Committee.
5. Timely reporting of financial statement.
Accounting Requirement:
1. Double entry system.
2. Bank book, Cash book, and Journal book.
3. Records of the vouchers.
4. HNSA may ask the vouchers randomly.
5. Share bank Statements with HNSA monthly basis.
6. Share trial balance every month.
7. Follow the HNSA Financial Manual for IUP Project.
Checklist Requirement:
1. Separate Bank Account.
2. List of the signatories.
3. List of board members.
4. List of finance committee.
5. Proposed detailed budget.
Note: No reallocation of the previous budget to next year budget.
Identified the gaps:
1. Registration of foundation.
2. Registration of amendments.
3. Lack of selection procedure and responsibilities of board members.
4. No complete articles of association (selection, meeting, minutes).
5. No collecting of membership fees.
6. Lack of authorization for operating bank account and for authorizing payments.
7. Lack of reimbursement policy.
8. No fund management by the board.
9. No conflict of interest policy.
10. Lack of accounting system.
11. No system for internal audit.
12. No register of capital assets.
13. Yearly tax payment.
14. Segregation of duties and delegation of power.
15. No proper fund management and cash flow.
16. Lack of awareness of country laws.
17. No proper reporting system.
Action plan:
1. Taking care of registering foundation.
2. Bye laws of organization amended.
3. Procedure of selection of board members + responsibilities.
4. Collecting annual membership fees as working capital or liquid funds position.
5. Implementing travel reimbursement policy (adopted from HNSA draft).
6. Board must be regularly deliberate on the funds management.
7. Implement of conflict of interest.
8. Setting up detailed:
a. Ledger.
b. Bank book.
c. Bank reconciliation statements.
d. Separate bank account for each project.
9. Implement procedures for proper segregation of duties.
10. Implementing system of internal audit.
11. Setting up and maintain register of capital assets.
12. Implementing travel reimbursement policy (see HNSA draft).
Conclusion
This project is the international project for growing global movement of the working poor, especially women, in the informal economy. With the support of the Bill and Melinda Gates Foundation (BMGF), the global action-research-policy network Women in Informal Employment: Globalizing and Organizing (WIEGO) and Self-Employed Women’s Association (SEWA) of India and their founding member of two regional organizations of home-based workers (HomeNet South and South East Asia) and an international alliance of organizations of street vendors (StreetNet International). In April 2006, members of this growing global movement of the working poor in the informal economy met in Durban, South Africa for a two-day policy colloquium called “World Class Cities for All: Inclusive Planning for the Working Poor in the Urban Informal Economy” with a focus on street vendors, waste pickers, and home-based workers Present at that meeting were SEWA, StreetNet International, HomeNet South and South East Asia as well as representatives from waste picker associations and other groups engaged in the urban informal economy. The Durban meeting crystallized the thinking and work of these organizations on issues related to the urban informal economy.
Bill and Mellinda Gate Foundation (BMGF) gives donation to cope the urban problem especially for women working poor through WIEGO and SEWA appointed HomeNet South and South East Asia to run the project, they call the project as the “URBAN INCLUSIVE CITY”. The Program Objective are Strengthen and expand very low income urban women working poor, women home workers for Indonesia; Awareness and campaign for urban zoning, infrastructure service, and planning affected the women home workers; Capacity building, Members Based Organization, and Networking; Meet specific livelihood and security for women home workers. As the member of HomeNet SEA, the HomeNet Indonesia involve in this project as the project contractee.
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