Factors Affecting Rwandan Informal Sector Workers' Participation in Public Pension Schemes

Factors Affecting Rwandan Informal Sector Workers’ Participation in Public Pension Schemes by Emmanuel Kayitare MINTAX, University of Sydney, 2007 BEC, University of Rwanda, 2002 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Administration Walden University July 2016 Abstract Social security is one of the key pillars of socioeconomic development in developing countries. Despite being an internationally recognized basic right and a key pillar of socioeconomic development, it does not protect the majority of the global workforce. Over 90% of workers in developing countries do not have social security coverage, the greatest percentage belonging to informal sector. In Rwanda, the national government has stepped up efforts to extend coverage to the wider population, but informal sector workers have not joined the existing pension scheme in significant numbers, and the reasons for which are unclear. Guided by Maloney’s theory of voluntarism; the purpose of this phenomenological study was to examine the factors affecting the level of workers’ participation in informal sector in pension scheme in Rwanda. This study was designed to provide new insights into the current social security situation of informal sector workers in Rwanda and to contribute to the knowledge base on social security and the informal sector. The research questions focused on awareness, income levels, and other factors that can address the social security needs of informal sector workers. Data were collected from 22 active workers from informal sector and 5 officials from ministries and agencies who were well-versed with social security issues. Data were analyzed via Moustakas’s steps of epoche, phenomenological reduction, imaginative narration, and synthesis of texture and structure. The results revealed that low incomes, lack of awareness, poor benefit design, distrust of public schemes, and frustrating laws and procedures were hindering the increased public pension coverage of informal sector workers in Rwanda. These findings will help Rwandan policy makers to promote positive social change by informing policies that enhance social protection of workers in informal sector.Social security is one of the key pillars of socioeconomic development in developing countries. Despite being an internationally recognized basic right and a key pillar of socioeconomic development, it does not protect the majority of the global workforce. Over 90% of workers in developing countries do not have social security coverage, the greatest percentage belonging to informal sector. In Rwanda, the national government has stepped up efforts to extend coverage to the wider population, but informal sector workers have not joined the existing pension scheme in significant numbers, and the reasons for which are unclear. Guided by Maloney’s theory of voluntarism; the purpose of this phenomenological study was to examine the factors affecting the level of workers’ participation in informal sector in pension scheme in Rwanda. This study was designed to provide new insights into the current social security situation of informal sector workers in Rwanda and to contribute to the knowledge base on social security and the informal sector. The research questions focused on awareness, income levels, and other factors that can address the social security needs of informal sector workers. Data were collected from 22 active workers from informal sector and 5 officials from ministries and agencies who were well-versed with social security issues. Data were analyzed via Moustakas’s steps of epoche, phenomenological reduction, imaginative narration, and synthesis of texture and structure. The results revealed that low incomes, lack of awareness, poor benefit design, distrust of public schemes, and frustrating laws and procedures were hindering the increased public pension coverage of informal sector workers in Rwanda. These findings will help Rwandan policy makers to promote positive social change by informing policies that enhance social protection of workers in informal sector. Factors Affecting Rwandan Informal Sector Workers’ Participation in Public Pension Schemes by Emmanuel Kayitare MTAX, University of Sydney, 2007 BECON, University of Rwanda, 2002 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Administration Walden University July 2016 Dedication This study is dedicated to my Lord and Savior Jesus Christ. Without the guidance and encouragement of my GOD, I would not have accomplished this goal. It is dedicated as well to my amazing partner in life, Peace, and to our four children—Collins, Chrystal, Crown, and Chryton—who steadfastly journeyed with me through the ups and downs of the process, never ceasing to be a constant source of strength and encouragement. Last, but by no means least, this study is dedicated to my parents, Mathias and Clemencia, who never had the opportunity to pursue formal education, but without whom this achievement would never have been possible. Acknowledgments I would like to express my sincerest gratitude to the members of my Dissertation Committee for their invaluable support throughout the dissertation journey. I am thankful to Dr. Anthony Fleming for his wonderful mentorship and inspiration, and for his taking the time to painstakingly review my drafts and provide feedback in a timely manner. I must also express my thanks to Dr. Robert Schaefer, who has been a source of encouragement from the outset and helped to ensure methodological correctness, and also to Dr. George Kieh for his input to the process. I would also like to thank all of my family, friends, and well-wishers. This project would not have come to fruition without their prayers, encouragement, and support.