Enabling Environment for Sustainable Enterprises: The ILO approach

1. Enabling Environment for Sustainable Enterprises:The ILO approach

2. Outline Rationale Methodology Strengths Results

3. Rationale Grow Reforms reduce business costs, reduce risks and increase competitive pressures on markets. Enterprises are able to change their behaviours in ways that lead to: i) increased levels of investments and innovation, ii) growth of the economy, iii) creation of more and better jobs, and eventually iv) reduced poverty. • How ILO helps • The International Labour Office develops the capacity of Social Partners to: • conduct further research, • draft policy papers, and • carry out an advocacy campaign. How ILO helps The International Labour Office assesses and, if necessary, builds the capacity of Social Partners to engage in assessment and advocacy work. Reform Government engages in consultations with the other Social Partners to weigh different reform responses. Measures that contribute to a more conducive enabling environment for sustainable enterprises are adopted. • Assess • Social Partners assess the prevailing economic, political, social and environmental conditions under which enterprises operate. • A report outlines the main: • legal, • institutional, and • regulatory constraints. • Social Partners agree on priorities for reform. How ILO helps The International Labour Office supports Government by organising a national policy dialogue to facilitate consultations. It also helps Government draft and implement reforms. Advocate Social Partners develop informed policy positions and structured advocacy efforts. They aim at influencing Government to address the priorities identified by the assessment report.

4. Methodology STEP 1:Assessment of the Business Environment secondary data focus groups enterprise survey

5. Methodology: ASSESSMENT secondary data sound and stable macroeconomic policy and good management of the economy trade and sustainable economic integration enabling legal and regulatory environment rule of law and secure property rights fair competition access to financial services physical infrastructure information and communication technologies peace and political stability good governance social dialogue respect for universal human rights and international labour standards entrepreneurial culture education, training and lifelong learning social justice and social inclusion adequate social protection responsible stewardship of the environment

6. Methodology: ASSESSMENT Fair Competition New Business Density Intensity of Local Competition Effectiveness of Anti-monopoly Policies Extent of Market Dominance Port Infrastructure Information and Communication Technologies ICT Development Index (IDI) Network Readiness Index Internet Users and broadband subscribers Fixed Line and Cellular Subscriptions Access to Financial Services Credit to Private Sector (% of GDP) Credit Information Index Interest Rate Spread Physical Infrastructure Electric Power Consumption (kWh per capita) Roads, paved (% of total roads) Improved Water Source Quality of Overall Infrastructure Index Quality of Port Infrastructure Sound and Stable Macroeconomic Policy and Good Management of the Economy GDP Growth Rate (%) Labour Force Participation Rate Current Account Balance (% of GDP) Gross Capital Formation (% of GDP) Gross Domestic Savings (% of GDP) Trade and Sustainable Economic Integration Trade (% of GDP) Enabling Trade Index (ETI) FDI Net Inflow (% of GDP) Trading Across Borders Export Propensity Index Enabling Legal and Regulatory Environment Regulatory Quality Index Ease of Doing Business Rank Starting a Business Rank Rule of Law and Secure Property Rights Rule of Law Index Property Rights Intellectual Property Protection Entrepreneurial Culture New Business Density Education, Training and Lifelong Learning Public Spending on Education(% of GDP) Education Index Firms Offering Formal Training (% of firms) Extent of Staff Training Literacy Rate, youth total Social Justice and Social Inclusion GINI Coefficient Labour Force Participation Rate Gender-related Development Index (GDI) Gender Empowerment Measure (GEM) Gender Inequality Index (GII) Female Economic Activity Adequate Social Protection Old Age Expenditure (% of GDP) Public Expenditure on Health (% of GDP) Coverage by Health Care (% of total health care) Peace and political stability Political Stability and Absence of Violence/Terrorism Good Governance Control of Corruption Corruption Perception Index Voice and Accountability Government Effectiveness Political Rights Index Civil Liberties Index Social Dialogue Cooperation in Labour-Employer Relations Respect for Universal Human Rights and International Labour Standards Ratification of Human Rights Conventions Ratification of Fundamental ILO Conventions Political Rights Index Civil Liberties Index Responsible Stewardship of the Environment Environmental Sustainability Index (ESI) Total Ecological Footprint (EPI) (global hectares per capita) Environmental Performance Index (EPI) CO2 Emissions Forest Area (% of land area) Urban Pollution (micrograms per cubic metre) secondary data indicators

7. Methodology: ASSESSMENT secondary data focus groups Identifying the areas that require further research Deciding on the kind of participants (representatives of all Social Partners or only some) Contacting and obtaining Social Partners’ acceptance of participation Arranging an appropriate venue Training facilitators Interviewing social partners Identifying the areas that require further research Deriving a statistically representative sample Drafting the questionnaire Choosing and contracting a research partner Training interviewers Surveying entrepreneurs and workers enterprise survey

8. Methodology STEP 2:Advocacy in Action consensus monitoring framework reforms

9. Methodology: ADVOCACY One or more workshops with Social Partners are organised to: • validate the priorities identified by the assessment report, • agree on policy positions, • define a reform action plan. How? consensus reforms Inviting Social Partners Arrange an appropriate venue Preparing facilitation (the facilitator needs to be expert at policy making) Holding the workshop

10. Methodology: ADVOCACY • When reforms are designed, they are always based on imperfect information and understanding. • To verify that reforms generate the expected results, a monitoring and result measurement framework needs to be set up. • The standard developed by the Donor Committee for Enterprise Development (DCED) is adopted. consensus monitoring framework reforms

11. Methodology: ADVOCACY The DCED standard helps practitioners to: • clearly articulate the expected results chain (i.e. the logic of the work), • to systematically set and monitor indicators which generate approximate numbers for impact that have credibility. consensus monitoring framework Indicators are classified depending on the fact that they measure: end impacts on the economy, on the poor, or on the firms, intermediate outcomes of overall reforms, results of reforms within specific domains (e.g. business registration and licensing). reforms Example:

12. Strengths METHODOLOGY: EESE combines a variety of data collection and diagnostic techniques, including a literature review, enterprise surveys, focus groups, statistical analysis of primary and secondary data, and consultations with expert s. The perceptions survey includes both employers and workers as respondents. DIALOGUE: The formulation of policy recommendations is grounded on consensus between workers, employers and government. SCOPE: The assessment based on 17 criteria goes far beyond the scope of other assessments, and attempts to provide an accurate and comprehensive picture of the issues affecting the performance and sustainability of enterprises.

13. Results • AFRICA, Malawi: • EUROPE, Montenegro:

14. Results • LATIN AMERICA, Honduras: • ASIA, Cambodia:

15. Thank you!