The Hidden Dimension of Decent Work ; Why Knowledge, Education, and Empowerment Matter

Earning Money Cannot Ensure a Better Lifestyle

In the discourse of development, the idea of a “better life” is often equated with higher income. However, through my work and field experiences, I have come to realize that earning more money does not necessarily guarantee a better lifestyle, particularly when the essential pillars of knowledge, education, and empowerment are missing. This insight resonates deeply with the objectives of the Sustainable Development Goals (SDGs) especially Quality Education (SDG 4), Decent Work and Economic Growth (SDG 8), and Gender Equality (SDG 5).

During my last field work, related to leadership development and economic employment of women in market trading, I have met many underprivileged women working in the informal trading sector. They are hardworking, resilient, and often earn even more than many formally employed individuals. Yet, despite their decent income, their quality of life does not necessarily improve. They continue to struggle with instability, stress, and lack of financial security. The reason lies not in how much they earn, but in what they know and how they manage what they have.

According to the International Labour Organization (ILO), nearly 61% of the global workforce is engaged in the informal economy, and in South Asia, this number rises to over 80% of employed women. Despite contributing significantly to local economies, most of them lack access to financial services, legal protection, and social security. This mirrors what I have witnessed in Bangladesh, women running informal trading or home-based businesses earn well but remain excluded from financial systems that could help them secure a better life.

Many of these women lack basic financial literacy, how to separate business and personal income, how to save, or how to plan for long-term growth. Their work remains informal, without access to social protection, professional training, or the institutional support that comes with formal employment. This condition highlights a critical gap in the realization of SDG8: Decent Work and Economic Growth. Decent work is not only about employment or income it is about dignity, security, and opportunity for growth. Without these, higher earnings can still leave individuals vulnerable and disempowered.

Informal Sector refers to economic activities not regulated by formal institutions or not covered by formal employment laws. Decent Work (ILO definition) refers to productive work that delivers a fair income, security, social protection, and equal opportunity. Financial Literacy refers to the ability to understand and effectively use various financial skills, including budgeting, saving, and investing.

The gap lies in what the ILO defines as “decent work.” Income alone does not qualify as decent if it lacks security, equality, and sustainability. Financial literacy, an essential component of economic empowerment, is largely missing in the informal economy, leaving workers vulnerable even when earnings are high.

Education plays an equally transformative role. As someone who works within the framework of SDG 4: Quality Education, I have witnessed how even a modest income, when paired with education and awareness, can lead to a more stable and meaningful life. Education does not only teach us how to read and write it equips us with the skills to make informed choices, to plan, and to adapt. It is education that helps us understand financial systems, manage resources, and envision a sustainable lifestyle beyond immediate survival.

For instance, SDG 8.3 emphasizes “promoting development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises.”

Yet, the lack of integration of informal women entrepreneurs into formal systems hinders progress toward this target.

Similarly, SDG 4.4 aims to “substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment and entrepreneurship.” Without targeted training and literacy programs, income growth in the informal sector fails to translate into sustainable livelihoods.

Women’s empowerment (SDG5) is another dimension that cannot be overlooked. Empowerment is not merely about economic participation it is about agency, decision-making, and access to knowledge. When women entrepreneurs are empowered with education and resources, their businesses become more sustainable, their families more secure, and their communities stronger. Conversely, when empowerment is absent, even financial success can be short-lived and fragile.

My observations reaffirm that sustainable development is not about the quantity of income but the quality of opportunity. The informal sector contributes immensely to the economy, especially in developing countries like Bangladesh, but without integration into formal systems of education, financial literacy, and policy support, its participants remain trapped in cycles of uncertainty.

As global activists and development practitioners, our focus must shift from income-based indicators of well-being to capability-based ones. We must ask: Are people empowered to make informed choices? Are they equipped with the skills to manage, sustain, and grow their livelihoods? Do they have access to decent work that ensures not just income, but dignity and stability?

The Way Forward || Integrating Knowledge and Empowerment into Development

To ensure that income growth truly improves quality of life, three integrated actions are essential:

1. Embed Financial Literacy into Education: Schools, NGOs, and community programs should teach basic money management as part of life skills education—aligning with SDG 4.4, which calls for technical and vocational skill development.

2. Formalize and Support Informal Work: Governments and development partners should promote policies in line with SDG 8.3, encouraging the formalization of micro- and small enterprises and ensuring access to financial services and social protection.

3. Empower Women Through Knowledge and Access: Training, mentorship, and networks for women entrepreneurs can transform their roles from income earners to empowered decision-makers contributing directly to SDG 5.

Ultimately, earning money cannot ensure a better lifestyle unless it is accompanied by education, empowerment, and access to decent work. Without education, financial literacy, and empowerment, even a high income can lead to instability and insecurity. A better life is achieved not through how much we earn, but through how we manage, plan, and sustain what we earn.

The journey toward sustainable development must focus not only on employment creation but also on knowledge creation equipping individuals, especially women in the informal sector, with the skills and confidence to convert income into lasting well-being. True progress, therefore, lies not just in economic growth but in human growth where every person has the tools to live with dignity, purpose, and stability.

By

Sadia Afrin Hema