Voice Mechanism for Informal Economy (PNG0010)

Problem/Issue to be addressed Although 85% of the population is employed in Informal Economy, there is lack of adequate recognition by Government. Establishing a voice mechanism entailing a network of vendor associations is critical as there is a lack of communication and understanding between city councils or authorities and the participants. Studies done by CIMC in 2003 and by National Research Institute (NRI) on the constraints to Informal Economy in both urban and rural areas indicated that Informal Economy and agriculture contribute significantly to the gross domestic product by about 32 per cent (%), however it has been marginalised by Government. Informal Economy in PNG is seen with a lot of scepticism and tainted with a negative perception by both the Government and the public. There is absence of a grievance mechanism or governance process that provides opportunities for the participants to channel their concerns in terms of maintaining health and safety standards, environment protection, accessing Government support for micro level businesses, understanding and working within the governing laws of the land, consumer protection, and others.

Main objective The National Informal Economy Policy Framework 2011-2015 and the National Informal Sector Development & Control Act, 2004 clearly calls for Government to provide avenues for dialogue with informal economy participants on issues and concerns affecting them. However, at present these aspirations are not fulfilled both at national and sub-national levels. Therefore, the proposed Voice Mechanism Strategy for Informal Economy aims to: 1. Create a platform that is recognized by the Government and relevant authorities as the voice for participants of the informal economy in PNG. 2. Identify relevant policy gaps and call for changes in order to support and strengthen the creation and implementation of the voice mechanism Strategy. 3. Create, maintain and coordinate informal economy associations and networks across the country for effective capacity building, communications, protection, coordination and meaningful participation.

Brief description of commitment A ‘Voice’ mechanism Strategy will achieve the three main objectives described above. The initiative therefore is aimed at creating communication networks, associations and coalitions for the participants to express their concerns. Similarly, for the relevant state entities such as, city authorities to recognize it as an important partner for development so that amicable relationships can be built in the long term. It would further strengthen sector coordination as well as enhance capacity, increase production and income levels of the participants when they are organized and be part of a recognized group. It is one of the critical means that will support the Government achieve its SME policy (2016) and Master plan (2016-2030), MTDP III and DSP 2030.

OGP challenge addressed by the commitment OGP Grand Challenges 1, 2 & 4 will be addressed by this commitment.

Relevance Briefly describe the way in which this commitment is relevant to further advancing OGP values of access to information, public accountability, civic participation, and technology and innovation for openness and accountability. (A detailed description of these values is available in the OGP Values Guidance Note.) This commitment is relevant to OGP values of: 1. Civic participation, 2. Open government; 3. Technology & innovation for openness; and 4. Public accountability; It gives informal economy participants the opportunity to shape and take ownership of policies that provide for their voice to be projected and heard. It capacitates them to demand for their needs to be met by Government at various levels.

Ambition Briefly describe the intended results of the commitment and how it will either make Government more open or improve government through more openness. The intended results are that: 1. The Government embraces public participation through those who are involved in the informal economy every day and that their grievances and concerns are heard through structured and recognised dialogue mechanisms–Government being more open to public needs and debate. 2. Informal economy participants are more organized through vendor or trade associations and have an active voice for representation, as well as capacity building, access to relevant information and assistance, etc. Having a stronger demand from organized citizen groups will push Government to become more transparent in its management and delivery of public resources & services.

Milestone Activity Description Start Date: End Date:

Phase 1 – Validation and awareness of the Informal Economy Voice Mechanism

1.1. Strategic partners and Voice Mechanism Sub-Committee Meeting Getting partners updated and securing their support for validation workshops rolling out. January 2022 March 2022

1.2. Regional validation consultations of the draft Informal Economy Voice Strategy Conduct four (4) Regional/Provincial validation workshops of the Draft Informal Economy Voice Strategy. Engage external partners to validate and be aware of the strategy. February 2022 March 2022

1.3. Policy Submission to CACC & NEC The strategy is finalised and submitted to the CACC through the Secretary for DfCDR May 2022 July 2022

Phase 2 – Piloting the Informal Economy Voice Strategy

2.1. Signing MoUs between lead agencies and provincial governments a. Signing MoUs between lead agencies and respective provincial governments to pilot the Strategy. b. Workshop the strategy with identified Provincial Governments and Local Level Governments (refer to 1.3 a) July, 2022 August, 2022

2.2. Present draft Pilot Project Implementation Report (PPIR) to 5 pilot provinces or towns for validation a. The CIMC IEC Voice Mechanism Sub-committee will develop a term of reference for the drafting of the PPIR. b. The Committee will visit the pilot provinces and consult relevant stakeholders in government, private sector, informal sector participants, civil society organisations, including churches, youth, women groups and others. c. Conduct an inter-provincial workshop in five pilot provinces or towns to present the draft PPIR August, 2022 September, 2022

2.3. Final Pilot Project Implementation Report (PPIR) a. Identify capacity gaps of informal economy participants in the 5 pilot provinces b. Prioritise key capacity gaps identified for setting up of informal economy associations. c. PPIR tabled and endorsed by the CIMC IEC Voice mechanism Sub-committee October, 2022 October, 2022

2.4. Informal economy Capacity Development Strategy produced and launched The CIMC IEC Voice mechanism Sub-committee develops a TOR to engage a consultant to develop a strategy to address capacity issues among informal economy participants. November, 2022 December, 2023

2.5. Informal economy Capacity Development Strategy Rollout. Conduct trainings and advocacy activities in the 5 pilot provinces/towns. January, 2023 March, 2023

2.6. Set up 2 dialogue platforms in 5 pilot provinces ✓ A provision to be made in the Informal Economy Development & Control Bill to set up Informal Economic Committees within existing governance structures of sub-national governments. The Committee will be responsible for advising authorities on how to deal with informal economy related issues as well as providing an entry point for leaders of informal economy associations to voice the concerns of their members. ✓ Create an effective advocacy campaign targeting governments on the need to include informal economy representation in their decision-making processes. April, 2023 July, 2023

Action Plan Review

3. Informal Economy Voice Strategy

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest

For reference in Papua New Guinea’s 2022-2024 National Action Plan, see Cluster 1, Commitment 3.