Almost 90 percent of the labor force in India is engaged in casual, and day-wage basis work. This is what we call called “the informal economy”, and it includes self-employed and domestic workers, as well as those working in spaces with little or no organizational structure such as bazaars, restaurants, small ad-hoc factories. Overall, they represent about 500 million workers in the country.
Even before COVID-19, this group was already vulnerable to any shocks in the economy given low-paid sectors where they operate, as well as the limited or zero access to social security services. The unprecedented sanitary emergency and posterior lockdown has had devasting effects for the informal economy. With very short notice, all non-essential business and workers had to follow the lockdown mandate and social distancing guidelines. As a result, the Labor International Organization (ILO) warned that 400 million of informal workers are at risks of falling deeper into poverty.
In the middle of this crisis, which has involved a sharp decrease in household income, as well as an unequal housework burden for women, cooperatives have shown resilience and have helped self-employed workers and women-led businesses to keep themselves afloat.
During this time, cooperative like the Self-Employed Women Association (SEWA) have provide immediate response to the health and food crisis by providing free access to masks and hand-sanitizer, as well as free rations of food for the most vulnerable. Additionally, SEWA has played a key role helping their members pivoting towards the production of masks and other essential goods such as hand-sanitizers. Moreover, they have developed videos and graphic material with the Do’s and Don’ts of COVID to prevent misinformation. Finally, SEWA has also provided their businesses members with a working capital fund, which has been used by the enterprises to buy raw inputs and keep paying salaries to their employees.
Although the effects of the pandemic have been devastating, and some of the long-run effects are yet to come, SEWA, as well as other cooperatives, have prioritized their members wellbeing.