Network-IDEAs Nairobi 25-27 Jan, 2007 Timo Voipio, MFA-Finland, [email protected] 1 Decent Work...

Network-IDEAsNairobi 25-27 Jan,

2007

Timo Voipio, MFA-Finland,[email protected] 1

Decent Work for All – bridging the Economic and the Social(and the Environmental) dimension of

Sustainable Development ? International Development Economics Associates’Employment Conference in Nairobi 25-27 Jan, 07


2007

Timo Voipio, [email protected] 2

Disclaimer:

‘BRAINSTORMING’, not (necessarily)

official policies of

MFA-Finland


2007


“Recipes” for “Sustainable Employment Generation” ?

- No! – Employment/DW are new topics for donor agencies I came to learn from you

- Yet, in UN-meetings governments have to pretend that we have the answers: Please see the EU Main Statement in UN-ECOSOC on Decent Work (drafted by myself)

Comments, criticism, advice would be most welcome!


2007


“Recipes” ? – Perhaps these: 1) Place employment creation at the centre of macro-economic policy2) Focus on production rather than trade only.and domestic/cross-border mkts vs. exports only3) Support ministries etc. responsible for employment & social policy (build capacity to articulate ’EMPL/SOC’ to Min.of Finance)4) Priority: Youth Employment Crisis5) Invest into People: Employability, skills & social protection: ”Unlock” human capital & entrepreneurship through credible risk mngt movement into higher risk/higher return activities.


2007


Now: AFRICA - Whom to trust? Mapping the donors:

1) UN: Summit-05, ECOSOC-06, CSocD-07-08

2) ILO (+ World Commission for SDG + Helsinki-process

3) World Bank

4) OECD/POVNET

5) AU/NEPAD/SADC/EAC/ECOWAS

6) EU/EC


2007


SOCIALSOCIAL-security & protectionsecurity & protection-inclusion & dialogueinclusion & dialogue- rights & equality, rights & equality, incl. gender equalityincl. gender equality

Employment,Employment,entrepreneur-entrepreneur-ship, skills, ship, skills,

finance, mktsfinance, mkts

DECENT WORK FOR ALLDECENT WORK FOR ALL- Bridging the ECON / SOC- Bridging the ECON / SOC


2007


“Decent Work” or “Any Work” - Is Decent Work an appropriate concept

for Africa / ’Global South’ ? Yes. Defined not only as:

- jobs (8-16)- formal sector

But: All Work for a Living, and social protection for those too young, old, disabled, etc. to earn their secure

livelihoods through work.

ILO (+ UN + EU): Decent Work Country Programmes (DWCP)

EMPLOY-MENTEnabling

environment, Entrepreneurship,

Employability, Skills,

Productivity, Competivity

SOCIAL PRO-

TECTIONExtending

social security and protection

to all, incl. those in the

informal sector

SOCIAL DIALOGUE

Building social concensus on

major policy lines e.g. through

tripartite negotiations.

RIGHTSFundamental

Principles and Rights at Work

e.g. ILO-Conventions

+ Gender Equality cross-cutting + Gender Equality cross-cutting all…all…

DWCP to be part of national DWCP to be part of national PRSsPRSs


2007


SOCIALSOCIALECONOMICECONOMIC

UN: Rio-1992 Sustainable development = balanced dev’t

ENVIRONMENTENVIRONMENT


2007


Copenhagen Social Summit-95:

FULL SOCIAL

PRO- INTEGRATION /

DUCTIVE Equity (= Incl+Prot)

EMPLOY- (= Cohes.)

MENT

POVERTY

ERADICATION


2007


Focus of global ODA-efforts since Copenhagen: PovRed

FULL SOCIAL

PRO- INTEGRATION /

DUCTIVE Equity (= Incl+Prot)

EMPLOY- (= Cohes.)

MENT

POVERTY

REDUCTION


2007


UN Summit-05 + ECOSOC-06 + CSocD-07 + OECD-POVNET + WB + EU + AU Decent Work for All (MDG-1c?)

EMPLOY- SOCIALMENT PROTECTION /

Equity INCLUSION Pro-Poor…

People-centred

POVERTY REDUCTION


2007


United Nations/Decent Work-1:

1) ILO-1999 + Mkapa/Halonen WCSDG 2004+ Helsinki Process (TZ+FIN+Friends)

2) World Summit, Sept-2005, Para 47:“We resolve to support fair globalization and

to make the goals of full and productive employment and decent work for all, including for women and young people, a central objective of all relevant national and international policies",

3) International Labour Conference ILC (ILO) June-06 & ILO Governing Body


2007


United Nations/Decent Work-2:

4) ECOSOC, July-2006, Geneva DW as the main theme (Pls give your comments to the EU position!) DWCPs (Decent Work Country Programmes)

5) CSocD, Feb-07 and Feb-08, New York DW as the main theme (+ Mary Robinson/EGI)

6) Africa? (a) Arusha/World Bank Dec05 Kellokoski/Finland Nov-06

(b) AU Social & Labour Affairs Committee African Soc/Empl Policy Frame Johannesburg/SADC Nov-06 AU Soc/Labour Committee, 4/07


2007


United Nations (DESA/UNDP) Policy Guidance Notes:

1) Macroeconomics and Growth2) Financial Policies3) Public Investment Management 4) Technology Policy 5) Social Policy ( including ‘Employment’)6) Trade Policy Constructive alternative to WB’s PRS Sourcebook Regional & national tailoring, translation, dissemination, training Multi-donor trust fund? (~ or: Good ideas fly…)

UN-ECOSOC: Promote Decent Work Country Programmes (DWCP)

EMPLOY-MENTEnabling

environment, Entrepreneurship,

Employability, Skills,

Productivity, Competivity

SOCIAL PRO-

TECTIONExtending

social security and protection

to all, incl. those in the

informal sector

SOCIAL DIALOGUE

Building social concensus on

major policy lines e.g. through

tripartite negotiations.

RIGHTSFundamental

Principles and Rights at Work

e.g. ILO-Conventions

+ Gender Equality cross-cutting + Gender Equality cross-cutting all…all…

DWCP to be part of national DWCP to be part of national PRSsPRSs


2007


ILO Employment Strategy

Ministers, Commissioners, etc. Agenda: Based on the headlines of the

DW Communication:

- General

- within EU

- Trade

- Development

Conclusions

18Timo Voipio, MFA-Finland

[email protected]


2007

ILO Global Campaign on Social Protection for All (ILC-2001)

• Towards progressive universalism:– Building progressively higher levels of

protection – Based on a basic ‘Social Floor’ consisting of:

Basic health care for all within a pluralistic system Child benefits to foster school attendance Pro-active (self targeting) social assistance and/or

employment guarantee schemes universal pensions in old age, disabilty and loss of

breadwinner


2007


‘Socio-Economic Floor’ as national and global responsibility ?

Minimum insurance needs

Income profile B

Income profile A

’’Socio-economic floor’Socio-economic floor’ – ensured by gov’t/ODA? – ensured by gov’t/ODA?

Higher levels - privately-provided?Higher levels - privately-provided?


2007


ILO/DW Country Programmes-1: ILO Donors’ Mtng: ILO is WEAK at

country level:- Very little TC-budgets, - 40% to Child Labour other pillars?- 40% from US Dept.Labour others?- UNDAF? Other donors? Ministries? Strategy: (a) Influencing national policies(b) Capacity building & legislation(c) Partnerships with ’richer’ partners


2007


ILO/DW Country Programmes-2: AFRICA: 16/53 countries (25 in process)

TZ: Part of MKUKUTA + MKUZA + UNDAF ASIA/PACIFIC: 10 ready, rest in process EUR/CENTRAL ASIA: 10 ready LAC: 1 ready, 5 in process ARAB: 1 ready


2007


World Bank / Labour Market & ”Good Jobs” ’MILES’ to go:

Off-spring of WB-work on SocProtection MILES – a proposed framework. Key areas:

M - as macro-economics I - as investment climate, institutions and

infrastructure L - as labor market regulations and institutions E - as education and skills S - as social protection

Research on “EMPL & DEV’T” - with German IZA - purely econometric, non-institutional ?


2007


World Bank’s Big Problem: SOCIAL SOCIAL PROTECTION DEVELOPMENT& LABOUR & SOCIAL POLICY

MARKETS - inclusion - accountability

- cohesion

POVERTY & GOVERNANCE ASECON.MNGT PARTICIPATORY

DEMOCRACY


2007


Ideologies (L/R) or academic identities rule?

SOCIAL SOCIAL PROTECTION DEVELOPMENT& LABOUR & SOCIAL POLICY

MARKETS Non-economicEconomists WDR-06 social scientists

POVERTY & GOVERNANCE ASECON.MNGT PARTICIPATORY

DEMOCRACYConflicting mental maps & competition for ’results’


2007


WDR-2006 – Stronger language Unequal power leads to the formation of institutions that

perpetuate inequalities in power, status and wealth These same institutions are also bad for the investment,

innovation and risk-taking that underpin long-term growth.

To prosper, a society must create incentives for the vast majority of the population to invest and innovate.

But possible only when the distribution of power is not highly unequal, and where there are constraints on the exercise of power by office-holders.

Cross-country data and historical narratives (e.g Finland) give evidence of Growth through equity.


2007


www.worldbank.org/wdr2006


2007


WB-SocDev: Arusha Conference Dec-05: New Frontiers of SocPol -1

Transformation of subjects and beneficiaries into citizens

universal rights & responsibilities

Middle-class by-in: Build alliances between the poor and the not-so-poor

Role of State: effective & accountable

Recognizing power relations & institutions Capacity of states revenue mobilization


2007


Arusha Conference Dec-05: New Frontiers of SocPol -2

Social dimension/Equity in infra, utilities, social services: educ/health/SP

Market access for the poor Fiscal policies Migration (internal/external) Citizens organizations/social partners Understanding history, culture, etc. Social Policy at all levels: local, national, global Multi-disciplinarity Not so bad, but…


2007


Criticism in and after Arusha Conference, Dec-05

Why almost no African Voices ??

Is all wisdom on Social Policy really concentrated in US-Universities?

Why no European, Nordic, UN Voices? Critical articles in Global Social Policy Journal

Sida/UNRISD/Finland: UNRISD Conference + Kellokoski Experts’ Meeting 1-2 Nov

Constructive contribution to UN Commission for Social Develoment (CSocD) 7-16 Feb, 2007 in NYC


2007


Aid


2007


Aid

+ ANNEX: + ANNEX: Johannesburg Ministerial Declaration Johannesburg Ministerial Declaration

and Draft Strategy:and Draft Strategy:TOWARDS AFRICAN REGIONAL SOCIAL TOWARDS AFRICAN REGIONAL SOCIAL

POLICIESPOLICIES


2007


African Empl. & Soc.Policies-1

1) AU-Summit 2004 Ouagadougou / Employment and Poverty

Follow-up: Sub-regional consultations on ’Integrated Employment Policies and Programmes for Africa’, by AU-Commission, with Swedish/Norwegian funding

’To build capacity, to harmonize, to monitor, to disseminate best practice…’


2007


African Empl. & Soc.Policies-2

2) AU Social Policy Framework (rejected 3 times – South Africa/Zimbabwe disagreements on migration now put aside)

3) NEPAD/AU/SADC/RSA/UN-DESA:

”Towards (Sub-) Regional Social/Employment Policies for Africa”

21-24 Nov, Johannesburg (13 ministers)

Empl/Soc Pol. dimension of economic integration, e.g. SADC, EAC, ECOWAS, etc.


2007


Bilaterals: OECD-POVNET/PPG + SocProt + Empl:

1) 1999-2001: PovRed Guidelines

Multi-dimensional poverty + context

2) 2004-2006: Pro-Poor Growth (PPG) through…agric/infra/PSD/SProt/PIA

3) 2007-2008: PPG + SocProt/SocPol + Empl

Consultations with country-level Development Partners’ Groups

(= Governments + donor country offices)

DAC-01: POVERTY is multi-dimensional

SECURITYrisk, vulnerability

social protection/ social risk

management (SRM) POLITICALrights

freedoms voice & influence

SOCIO-CULTURAL

statusrespect, dignity

ECONOMICconsumptionincome

assets

HUMANhealth

educationhunger, thirst

GENDER +

ENVIRON-MENT


2007



2007


Growth First ’Revenge’ or a genuine rethink & consultation with partners

in the Global South on: PSD: MM4P + R&V

Markets that matter for the poor +

Risk and Vulnerability INFRA: IM4P + R&V

Infra that matters for the poor AGRIC: AM4P + R&V

Growth potential of SSA-peasants 6 x larger on domestic/cross-border food staple markets than in the saturated export markets (IFPRI)

~ ’Growth First’ vs. ’People First’ ??

SECURITYrisk, vulnerability




SOCIO-CULTURAL



assets

HUMANhealth


GENDER +

ENVIRON-MENT


2007



Several members: The ECON & SOC & ENV should be in balance:


The dimensions are inter-related

S/H SECURITYrisk, vulnerability




SOCIO-CULTURAL



assets

HUMANhealth


GENDER +

ENVIRON-MENT


2007



2007


SOC.DEV.SOC.DEV.OPPOSITIONOPPOSITION

NEO-NEO-LIBERALSLIBERALS

Hot debates-1


2007


RELATIVE RELATIVE definitiondefinitionof PPG ?of PPG ?

ABSOLUTEABSOLUTEdefinition definition of PPG ?of PPG ?

Hot debates-2


2007


Rel. PPG = Rel. PPG = Inequality Inequality

is reduced ?is reduced ?

Abs. PPG = Abs. PPG = InequalityInequality

may grow ? may grow ?

Hot debates-3


2007


PATTERNPATTERNof Growth?of Growth?

PACE PACE of Growth?of Growth?

Hot debates-4

Unsettled dispute Unsettled dispute Compromise…?Compromise…?


2007



2007


EMPOWERMENT/ S.SECURITY/INCLUSION PROTECTIONe.g. WDR-2006 e.g. SRM/SP

PRO-POOR GROWTH= EQUITABLE & EFFICIENT

GROWTH

OPPORTUNITIESe.g. PSD, Infra, Agric.

PPG results from a balance betweenempowerment/security/opportunity


2007


Justifications used by donors for focusing on risk and vulnerability

Pro-poor growth• helps avoid shocks that can derail growth• promotes innovation, risk taking and entrepreneurship• broadens participation in economic growth• focuses on asset accumulation• counteracts irreversible asset depletion

Rights-based• MDGs, basic needs• human development / human security (Sen/JICA) • global socio-economic ‘floor’ (minimum standards) & global compact (MDG8)• democratic participation and social dialogue• sustainable development, lifecycle and inter-generational thinking


2007


Task Team on Social Protection and Social Policy:

Social Protection =

1) Growth: Key factor in Pro-Poor Growth (PPG)

2) Human Rights: Responsibility to Care

Important for many OECD-governments!!


2007


POVNET Programme of Work 2007-8

a) Social Protection + Empowerment

~ Comprehensive Social Policy

b) Employment and labour markets

Decent Work for All

+ Consultations with partners in the Global South (Paris is no longer the centre of gravity in the world…)

governments, donors, CSOs, private sector, research


2007


European Union/Decent Work-1 Social Dimension of Globalization 2004 Partnership EC + ILO 2004 EC Communication on Decent Work, 5/06

DW = 1/9 focus areas of European Aid EU Africa Strategy: DW mentioned Policy Coherence for Devt (PCD)

SDG + DW = 1/12 priorities for PCD


2007


European Union/Decent Work-2

UN-ECOSOC, 6/06: DW for All DWCPs Conclusions on DW: Council 1 Dec 2006 DW-Conference 4-5 Dec, 2006 EC/DG-DEV Strategy on Empl & SocProt EuropeAid training EU Delegations

(+ partners?)


2007


EU: DW Conclusions - 1 Past commitments on SDG + DW

UN-Summit, ECOSOC-Ministerial, Council, Lisbon Strategy, EU Strategy on Sust.Devt, EU SocPol Agenda, EU Consensus on Devt Policy

Definition of DW ILO/UN-Definition Min/Max costs/benefits of Globalization Informal into the formal Social partners, business community, CSR UN + ILO + WB + IMF + WTO dialogue


2007


EU: DW Conclusions - 2

Decent Work within EU: Competitiveness in a socially sustainable way Improve productivity by DW Flexibility & security (= ’Flexicurity’) Lifelong learning & work/family balance ILO-Conventions national legislation

External relations: ASEM + LAC + AU, etc.


2007


EU: DW Conclusions - 3 DW in EU Development Cooperation (EC+MS)

Summit-05 + ECOSOC + ILO-DWCPs ”Highlights the intention to develop an EC Strategy on

Employment and Social Protection in Development” European Consensus on Devt/paras 7, 11, 12, 35, 97-99

SDG, DW for All, DW into PRSs & Reg.Plans Finance DW through BS + CapacityBldng Coop: EC+MemberStates+ILO+UN-Agencies+IFIs All components of DWCP into PRSs etc. Tenders for contracts: respect core labour std Training & info for EC + MSs + partner ministries etc.


2007


EU: DW Conclusions – 4

DW and trade related issues: Trade lib has a role in DW (right sequencing?) coherent approach to trade & soc.pol. EC to promote soc.stds and DW in trade

negotiations Trade Sustainability Impact Assessments ’Aid for Trade’ to promote DW Soc.objectives should not be set for

protectionistic reasons. The objective is to achieve social progress, shared fairly for the benefit of all.


2007


EU: DW Conclusions - 5 EU-cooperation with UN and ILO

”Welcomes…UN, in particular ILO, and others” ”Highlights EU’s support for ILO’s DWCPs…” Ownership & priorities by partner countries… EU support to ratification of ILO-conventions

Follow-up: Impl & Follow-up to WSO-05 + ECOSOC-06 +

CSocD DW-indicator development with ILO EC follow-up, incl. Report on DW-

Communication in 2008


2007


Draft EC Strategy on Empl & Soc.Prot in EU Devt Cooperation

1) Institutional capacity e.g. twinning/Institutional cooperation with ministries of labour, social affairs, community

E.g. Finland / Tanzania+ with workers’, farmers’, employers’, CSO, entrepreneurs’ (formal/informal) networks

2) Knowledge? Make it demand-driven! not only global -primarily national research!

2) VET (not only technical, but also business skills, social work for SProt) Also ”lifelong learning”…Employability/Productivity…


2007


Draft EC Strategy on Employment & Soc.Prot in Devt-2 Areas of action: Infra, Agric/Rural, PSD

( c.f. POVNET-results) Finland: For coherence, add also:

Health (financing, e.g. social health insurance, etc.) Education (VET, lifelong learning…) Financial sector: micro-credit, micro-insurance, re-

insurance, development banking, etc. Governance: good governance of labour mkt and

social security institutions


2007


Draft EC Strategy on Employment & Soc.Prot in Devt-3

Add also to Areas of action: Conflict mngt – relations to SocProt & Employment Humanitarian assistance Empl + SocProt (cash?) Legal sector development Gender / Environment Macro-economic policies – impacts on employment,

distribution/equity, social protection Disability – opportunity for equal participation, incl.

accessibility Youth – special challenges Aging, Children, etc.


2007


Draft EC Strategy on Employment & Soc.Prot in Devt-4

Aid modalities: Budget Support Technical Cooperation with ministries of Labour,

Social Affairs, Community Development, Employment Agencies, Social Security Institutions,

+ Targeted Budget Support to Social Security Funds, Social Health Insurance Funds, etc.

Financing:

- Thematic programme Investing in People +

- EDF Country Focal Areas (1 out of 9 areas)

- General Budget Support


2007



In reality, in country level work, the economic perspective (growth) dominates

over the social/employment. Why?


2007


UNUNWBWB

(& IMF)(& IMF)

Part of the reason is the imbalance between the WB(& IMF) vs. UN at country level


2007


UN + WB:UN + WB:SOCIALSOCIAL

WB & UN: WB & UN: ECONOMICECONOMIC

In principle, both WB & UN should promote a balanced sustainable dev’t agenda on

RIGHTS/SOCIAL JUSTICE



2007


Min.of Social Min.of Social & Labour, & Labour, unions, unions,

consumersconsumers

Min. of Finance, Min. of Finance, Central Bank, Central Bank,

Business & Empl. Business & Empl. associationsassociations

Equally, at the national level there should be a balance between the

’ECON’ and ’SOC/EMPL’ ministries & civil society representatives

Min.of Env / Agric. / Natural Min.of Env / Agric. / Natural resourcesresources


2007


Min.of Social Min.of Social & Labour, & Labour, unions, unions,

consumersconsumers

Min. of Finance, Min. of Finance, Central Bank, Central Bank,

Business & Empl. Business & Empl. associationsassociations

But: Often the ECON perspective gets a priority in national policy making


2007


WBWBnon-non-

economistseconomistsWBWBeconomistseconomists

Within WB the ECON dominates over the SOC: The WB has 10.000 economists &

only few hundred non-economists


2007


Heterodox labour Heterodox labour etc. economics, etc. economics,

political economy, political economy, industrialindustrial

policy, etc.policy, etc.

Orthodox Orthodox ’’neo-liberal’neo-liberal’

macromacroeconomicseconomics

And: Among the WB-economists one school of thinking dominates over alternatives


2007


UN:UN:grants outside grants outside the BS-framethe BS-frame

WB-loans WB-loans + Bilaterals’ grants:+ Bilaterals’ grants:

PRSP PRSP + Budget support+ Budget support

A key additional factor: Bilaterals strongly aligning to the WB-dominated dev’t agenda


2007


IMF & IMF & World Bank World Bank & Bilaterals& Bilaterals

economic policyeconomic policy

An additional factor: Fragmented UN

UNDPUNDP

WHOWHO UN-AidsUN-Aids

ILOILO

UnicefUnicef

WFPWFP

HabitatHabitat

UnifemUnifem

UN: Fragmented UN: Fragmented social policysocial policy


2007


WB + WB + Min.of Finance &Min.of Finance &

IMF + IMF + Central BankCentral Bank

Fragmented UN leads to fragmented national SOC/EMPL policies

UNDP +UNDP +PMOPMO

WHO + WHO + Min.of Min.of HealthHealth

UN-Aids +UN-Aids +National Aids National Aids

CouncilCouncil

ILO + ILO + Min.ofMin.ofLabourLabour

Unicef +Unicef +Min.of Min.of

Children Children & Women& Women

WFP +WFP +Min.of Agric.Min.of Agric.

Habitat + Habitat + Min.of Min.of

HousingHousing

Unifem + Unifem + Women’s Women’s

OfficeOffice

UN: Fragmented UN: Fragmented SOC/EMPL policiesSOC/EMPL policies


2007


’’One UN’One UN’+ WB + WB

+ bilaterals+ bilaterals

WB + IMFWB + IMF+ bilaterals+ bilaterals

Efforts to improve the ECON/SOC balance:

UN-Reform (at global and national levels)


2007


SOCIALSOCIAL-security & protectionsecurity & protection-inclusion & dialogueinclusion & dialogue- rights & equality, rights & equality, incl. gender equalityincl. gender equality

Employment,Employment,entre-entre-

preneurship preneurship & growth& growth

+ Rescue Development Economics ! Balanced, comprehensive Socio-

Economics of DECENT WORK FOR DECENT WORK FOR ALL ALL


2007


1st action priority: Youth Employment Crisis

UN Youth Employment Network UN + ILO + World Bank + EU + bilaterals:

1) employability / vocational training,

2) equal opportunities women / men;

3) entrepreneurship / easy start up and running more and better jobs;

4) placing employment creation at the centre of macro-economic policy.

Network-IDEAs Nairobi 25-27 Jan, 2007 Timo Voipio, MFA-Finland, [email protected] 1 Decent Work...

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