Upscaling and mainstreaming EII approaches : Entry points and possible avenues

1. Upscalingand mainstreaming EII approaches: Entry points and possible avenues “Employment-Intensive Investment for Sustainable Development” Cape Town, South Africa, 9 -13 July 2012 A155532

2. Presentation outline Growth and impact on employment Infrastructure deficits Institutionalise investment –employment linkages PRSP How to scale up - panel discussion

3. Growth and impact on employment (figures from 4th UN conference on LDCs, ILO report, May 2011) 2000-2009 characterized by high growth producing insufficient economic growth and social returns Annual average employment grew by 2.9%, slightly above population growth Share of wage and salaryworkersincreasedfrom 14% in 2000 to 18% in 2009, majoritytrapped in vulnerableforms of employment Labour market challenge: productive employment and decent work for the large numbers of working poor

4. Growth and impact on employment Surge in GDP growth over 2004-2007, global crisis slump over 2008-2010

5. Growth and impact on employment 2000-2009: employment growth of 2.9% per annum for adults: 3.2% per annum For youth: 2.1% per annum Industry-led growth in LDCs did not result in concomitant employment growth in industry, but instead in services.

6. Infrastructure deficits Power: Inadequate access to energy is the single largest impediment to economic growth. 25 percent of that capacity is unavailable because of aging plants and poor maintenance Water: High hydro-climatic variability, inadequate storage, rising demand, and lack of transboundary cooperation undermine the African water sector. Less than 60 percent of Africa’s population has access to drinking water. Over the last 40 years, only 4 million hectares of new irrigation have been developed, compared to 25 and 32 million hectares for China and India respectively

7. Infrastructure deficits Transport: Ineffective linkages between different transport modes (air, road, and rail), declining air connectivity, poorly equipped ports, ageing rail networks, and inadequate access to all-season roads are key problems facing Africa’s transport system. Improving road accessibility in rural areas is critical to raising agricultural productivity across Africa ICT: The number of African mobile phone users has increased from 10 million in 2000 to more than 180 million in 2007. The average price of prepaid mobile services cost US$12 a month in Africa, 6 times the US$2 cost in Bangladesh, India and Pakistan.

8. Institutionalise investment-employment linkages • How? Possible approaches: • White Paper : Namibia (2000) • Presidential Decree : Philippines (1999) • Uganda: Strategy for Sustainable Maintenance of DUCAR • Employment and Investment Policy Units (Uganda, Togo, Madagascar, Senegal, Guinea, Mali, Tanzania, Ghana – promoted by ILO) • South Africa • Poverty Reduction Strategies - PRSs -

9. Influence policies:(1) Criteria for public resource allocation • Situation: huge proportion of PIP going to infrastructure and construction • Objective: • Increasing share of PIP that goes to employment-intensive investments, targeted at productive and basic social needs of the poor and low-income groups • PIP to be assessed in terms of employment-intensity and impact on poverty

10. Influence policies: (2) Studies on potential/impact of EIIPs • Provide Gvts and donors with data and analytical studies on: • Technical/financial/economic viability of EI option (comparative studies) • Macro-economic potential and impact of EI technology choices on employment + incomes, savings in foreign exchange, multiplier effects • Periodically assess situation with Gvt., donor agencies, Devt. Banks etc. • Expected result: better informed decision-making

11. Influence policies:(3) Action at design stage • Establish collaborative relations with • Technical line ministries, local gvt., etc. • Donor agencies • to assess technological options and adopt the most employment-generating approaches whenever this is technically feasible and economically cost-effective

12. Influence policies:(4) Identify constraints, initiate action • Identify potential constraints: technical, administrative, regulatory, institutional, capacity-related… • Ways and means for problem-solving, e.g.: • Training of SMEs and consulting engineers in alternative project design • Adjustment of contractual systems and procedures and technical specifications in BoQ favouring L-B contractors or enforcing labour standards • Sensitization of technicians and decision-makers in line ministries and decentralised structures

13. Influence policies: (5) Networking with professional groups • Establish contacts with all actors concerned: • Private sector: L-B SMEs, consulting engineers, employers’ and workers’ associations of the construction industry, CBOs, NGOs… • Public sector: Association of Mayors of Municipalities, Association of Rural Communes, Association of municipal planners and engineers,… • To disseminate information + promote dialogue on investment policy, employment and social policy, private sector development, etc.

14. Mainstreaming - An exampleLabour-based Policy Promotion Committee (LAPPCOM), Uganda • Overall Objective: To promote employment Generation, Poverty reduction and economic development through: • Formulation of a comprehensive labour-based policy for public investment and • Initiation and coordination of capacity building activities for policy implementation

15. A critical look at PRSPs • PRS papers are now implanted into the international development architecture as key tools for national planning and development assistance. • Public consultations are proving a challenge in PRS processes; it is not always clear how the dialogue influences policies and implementation. • Ministries of finance (MoF) play a critical role; sectoral ministries have often felt excluded. • Verbal recognition of the need for development-agency coordination is prevalent, but putting it into practice is proving tough.

16. …PRSPs • PRSPs need to include a more thorough analysis of employment and other aspects of decent work • The social partners should engage and be more systematically integrated into the design and implementation of strategies • PRSPs need to pay more attention to the impact of growth on poverty • Donor countries must include in their funding priorities issues related to employment, social protection, rights, representation and dialogue.

17. Promoting employment through PRSPs • Clearly describe the link between EI growth and poverty reduction • Use of EII retained as policy objective • Project proposals formulated and inserted in the intervention matrix (national priorities; HIPC resources) • Appropriate monitoring mechanism in place

18. Act on several fronts • Coordinated, broad application in as many sectors as possible • Policy coherence, realistic expectations and commitment • However, many of these functions can be fulfilled • By a governmental instrument or institution in charge of implementing these policies (such as ‘’Employment and Investment Policy Units’’): this would be ideal • Specific programmes which can play a lead role (Social Funds, infrastructure programmes, education, urban dev., capacity-building, etc.) • Consulting engineers + economists (design, monitoring, evaluations, training, etc.) • Such work can progressively test and demonstrate approaches, build up pressure or interest groups, widen a ‘’constituency’’ for the promotion + implementation of the policy

19. Need to scale up PEPs PEPs are complementary to PIPs, targeted to protect the vulnerable groups in society Main challenges in PEPs: Set up scalable Public Employment programmes (PEP) such as public works programmes (PWP) and employment guarantee schemes (EGS) which are a key tool to protect the most vulnerable against shocks; Develop at the same time local infrastructure, assets and social services of proper quality that promote social and economic development; Proper targeting

20. How to scale-up (panel discussion) Questions to the panel Is there a political support to scale-up? Besides additional funding, what are the main challenges you have faced (or you are still facing) to scale up? Do you work through line ministries, municipalities or other agencies? What are the management requirements?