Promoting Informal Labor Rights (PILAR

GFI is currently working on a two year project to improve labor rights in the informal sector economies of Guatemala and Nicaragua. The objectives of this Department of State Funded initiative are to improve government capacity to collect data on the informal sector while developing strategies that encourage formalization and extend labor rights to the informal sector. Using GFI’s multi-stakeholder approach, we are reaching out to a broad range of formal and informal worker organizations, government ministries, the private sector, and key civil society organizations.


Why the Informal Sector?

GFI Executive Director Caleb Shreve signs Tripartite Agreement with PILAR Partners

Sustainable economic development with a genuine and large scale impact requires the engagement of a well trained and productive workforce. However in most developing countries the informal sector represents almost 80% of the working poor. When countries cannot transition or integrate formal and informal sectors, GDP growth remains low and poverty remains high. Through the PILAR program GFI is engaging workers, employers, and governments to develop unique policies and actions that encourage formalization and extend labor rights to informal sector workers.

PILAR in Guatemala and Nicaragua

GFI hosted PILAR’s first civil society roundtable on January 15th in Guatemala City. The broad range of organizations participating included local labor unions, informal workers from Chimaltenango, academics, and USAID representatives. The group discussed the role of each sector in designing strategies for improving livelihoods and economic opportunity in informal worker communities. The group also created a working definition for the informal sector in the Guatemalan context.

GFI is excited to announce the launch of the PILAR program in Nicaragua as of January 2009. GFI will be working with our local partner the Institution Nicaraguense de Estudios Humanos (INEH) to help us reach our goals of improving labor rights in the informal sector. INEH was founded in 1997 with the objective of implementing research and development based projects, that improve the social, cultural, and economic status of Nicaraguans.