1. Presented by Mostefa Boudiaf Turin, 9 July 2007 Prepared by Maria Sabrina De Gobbi ILO Employment Policy Unit - Employment Strategy Department « Trade Union Training on Employment Policies with a focus on Youth Employment » The ILO Global Employment Agenda (GEA): Its ten core elements

2. 2. Ten core elements of the Agenda Some elements address the economic environment and are only marginally covered by the ILO mandate: 1. Promoting trade and investment for productive employment and market access for developing countries. 2. Promoting technological change for higher productivity and job creation and improved standards of living. 3. Promoting sustainable development for sustainable livelihoods. 4. Macroeconomic policy for growth and employment: a call for policy integration.

3. 3. Ten core elements of the Agenda Others address the labour market and fall entirely under the mandate of the ILO: 5. Promoting decent employment and entrepreneurship. 6. Employability by improving knowledge and skills. 7. Active labour market policies for employment, security in change, equity, and poverty reduction. 8. Social protection as a productive factor. 9. Occupational safety and health: synergies between security and productivity. 10. Productive employment for poverty reduction and development.

4. 4. Core element 4: Macroeconomic policy for growth and employment: a call for policy integration Success in employment generation is intrinsically linked to trade policies; trade policies; fiscal policies; fiscal policies; monetary policies; and monetary policies; and exchange rate policies. exchange rate policies. What is an appropriate macroeconomic policy for employment? There are divergent views. It is necessary to find a good balance between: financial stability; financial stability; structural adjustment; structural adjustment; growth in incomes and employment; and growth in incomes and employment; and a more equitable pattern of development. a more equitable pattern of development.

5. 5. Core element 4: Macroeconomic policy for growth and employment: a call for policy integration The role of international organizations in setting macroeconomic policies: IMF and World Bank: During the past two decades, they have influenced the design of macroeconomic policies in developing countries. How: They made their lending policies conditional on the implementation of stabilization and structural adjustment policies supposedly leading to growth. ILO says: Growth has been inadequate relative to labour force growth rates and unemployment.Growth has been inadequate relative to labour force growth rates and unemployment. Growth has been volatile in almost all countries.Growth has been volatile in almost all countries. Jobs and income have remained or become highly insecure.Jobs and income have remained or become highly insecure. Industrial relations systems have come under stress.Industrial relations systems have come under stress.

6. 6. Core element 4: Macroeconomic policy for growth and employment: a call for policy integration Characteristics for a sound macroeconomic policy for employment The choice of a macroeconomic policy is complex and must be linked to: country-specific structures and institutions; country-specific structures and institutions; country ownership, i.e. the degree of societal commitment to policy goals; country ownership, i.e. the degree of societal commitment to policy goals; unions and business associations playing a key role in the world of work; unions and business associations playing a key role in the world of work; prudent management of stabilization with a thorough consensus on when and how benefits would outweigh economic and social costs. prudent management of stabilization with a thorough consensus on when and how benefits would outweigh economic and social costs.

7. 7. Core element 4: Macroeconomic policy for growth and employment: a call for policy integration Characteristics for a sound macroeconomic policy for employment: favouring the generation of high and productive levels of employment through enterprise development; favouring the generation of high and productive levels of employment through enterprise development; enhancing savings and investment through incentive structures, physical and social infrastructures as well as through macroeconomic stability; enhancing savings and investment through incentive structures, physical and social infrastructures as well as through macroeconomic stability; setting targets that are feasible and flexible within bounds of alternative growth and employment scenarios. setting targets that are feasible and flexible within bounds of alternative growth and employment scenarios.

8. 8. Core element 4: Macroeconomic policy for growth and employment: a call for policy integration Key factors in determining a macroeconomic policy for employment: placing productive employment generation at the centre of economic and social policy; placing productive employment generation at the centre of economic and social policy; developing policy packages that assure financial stability without undermining growth, investment and employment; developing policy packages that assure financial stability without undermining growth, investment and employment; developing international and regional policy coherence and resource support as a remedy to the increased sensitivity of national policies to external shocks. developing international and regional policy coherence and resource support as a remedy to the increased sensitivity of national policies to external shocks.

9. 9. Core element 4: Macroeconomic policy for growth and employment: a call for policy integration Key factors in determining a macroeconomic policy for employment: incorporating measures of social protection and labour market policies into the macroeconomic framework in order to mitigate its adverse social effects; incorporating measures of social protection and labour market policies into the macroeconomic framework in order to mitigate its adverse social effects; enhancing the contribution that social dialogue with unions and employers can make to the development of a broad- based societal consensus on policy goals and means. enhancing the contribution that social dialogue with unions and employers can make to the development of a broad- based societal consensus on policy goals and means.

10. 10. Core element 5: Promoting decent employment and entrepreneurship Definition: Entrepreneurship is the combination of initiative, innovation and calculated risk-taking associated with identifying market opportunities, mobilizing resources, and managing them efficiently in the operation of productive, viable, and socially responsible enterprises. Forms of enterprises: private; private; public; and public; and cooperative. cooperative. Modus operandi: individual (including the self-employed); or individual (including the self-employed); or group, such as member- or community-based enterprises. group, such as member- or community-based enterprises.

11. 11. Core element 5: Promoting decent employment and entrepreneurship Characteristics of an enterprise promotion strategy Such a strategy must take into account: enterprise types; enterprise types; enterprise structure; enterprise structure; enterprise size; enterprise size; whether the enterprise is formal or informal. whether the enterprise is formal or informal. The operational levels of such a strategy are: promoting enabling policies and regulations; promoting enabling policies and regulations; supporting an entrepreneurial culture; supporting an entrepreneurial culture; building capacity for the provision of support services; building capacity for the provision of support services; simplifying compliance and protecting workers’ rights. simplifying compliance and protecting workers’ rights.

12. 12. Core element 5: Promoting decent employment and entrepreneurship Conditions for an effective enterprise- promotion policy: Interventions must be adapted to the national environment. Interventions must be adapted to the national environment. Both entrepreneurs and their employees must be involved in and consulted on policy design. Both entrepreneurs and their employees must be involved in and consulted on policy design. Efficient coordination between government agencies is necessary both on an intersectoral level and on a national-local one. Efficient coordination between government agencies is necessary both on an intersectoral level and on a national-local one.

13. 13. Core element 5: Promoting decent employment and entrepreneurship Conditions for an effective enterprise- promotion policy (continued) : Interventions at a local or district level should be favoured. Interventions at a local or district level should be favoured. Small enterprise development and regulatory institutions must be well integrated into the broader development initiatives of governments. Small enterprise development and regulatory institutions must be well integrated into the broader development initiatives of governments. The consistent application of policies and laws are critical to ensure better compliance The consistent application of policies and laws are critical to ensure better compliance

14. 14. Core element 5: Promoting decent employment and entrepreneurship Obstacles to effective enterprise- promotion policies: Only a minority of small enterprise owners and their workers are organized in representative associations. Only a minority of small enterprise owners and their workers are organized in representative associations. Established employers’ and workers’ organizations are not always invited to policy reform consultations. Established employers’ and workers’ organizations are not always invited to policy reform consultations. Informal economy actors suffer from a wide representational gap. Informal economy actors suffer from a wide representational gap. Access to finance is often the most crucial factor for starting an enterprise, operating it and maintaining jobs. Access to finance is often the most crucial factor for starting an enterprise, operating it and maintaining jobs.

15. 15. Core element 5: Promoting decent employment and entrepreneurship Lessons learnt: Policies and regulation reforms are a prerequisite for successful interventions at other levels and should always come first. Policies and regulation reforms are a prerequisite for successful interventions at other levels and should always come first. To ease regulatory burdens without compromising workers’ rights, simplifying compliance is preferred to granting exemptions. To ease regulatory burdens without compromising workers’ rights, simplifying compliance is preferred to granting exemptions. Expert advice on the legal and fiscal aspects of policy reform is required in drawing up the most appropriate measures. Expert advice on the legal and fiscal aspects of policy reform is required in drawing up the most appropriate measures. There is a need for policies to combat discrimination, particularly gender discrimination. There is a need for policies to combat discrimination, particularly gender discrimination.

16. 16. Core element 5: Promoting decent employment and entrepreneurship Lessons learnt (continued): To promote entrepreneurial culture, advocacy and awareness campaigns must adopt imaginative use of the media (e.g. radio can reach many entrepreneurs and workers in isolated communities). To promote entrepreneurial culture, advocacy and awareness campaigns must adopt imaginative use of the media (e.g. radio can reach many entrepreneurs and workers in isolated communities). Entrepreneurship is not for everyone; campaigns should recognize this fact. Entrepreneurship is not for everyone; campaigns should recognize this fact. Solid networks of institutions are needed to provide representational, business development, financial, market access, infrastructural and other services to micro and small businesses. Solid networks of institutions are needed to provide representational, business development, financial, market access, infrastructural and other services to micro and small businesses. Cooperatives are particularly attractive for self-employed persons in the informal and rural economies because they provide their members with economic services (e.g. saving and credit facilities), and serve to give them voice and representation. Cooperatives are particularly attractive for self-employed persons in the informal and rural economies because they provide their members with economic services (e.g. saving and credit facilities), and serve to give them voice and representation.