Economic and Social Council Tackles Challenges to Creating Decent Jobs as Solution for Climate Change, Global Income Inequality, Unemployment in Africa
In three interactive panel discussions today, the Economic and Social Council looked at how climate change challenges could be met through creating decent jobs, how dignity and prosperity could become the norm for working people, and how policies could translate sustained economic growth in Africa into “broad-based and job-rich outcomes” towards inclusive sustainable development.
Michael Renner, Senior Researcher at the Worldwatch Institute, who moderated the first panel of the day, “Solutions to Climate Change: Growing Decent Jobs”, said that the link between climate challenges and decent work was clear. Economic prosperity depended on a stable climate and healthy economic systems. With the right policies in place, the shift to a sustainable economy could increase job production and social inclusion.
Indeed, Robert Pollin, Professor at the Political Economy Research Institute of the University of Massachusetts, said that a 1.5 per cent annual investment in clean energy over and above other investments would result in a 40 per cent reduction in global carbon dioxide emissions. It would also create a significant net value impact on employment, even allowing for the 30 to 40 per cent contraction in the fossil fuel sector, because producing renewable energy was more labour intensive. That investment would mitigate the need to import energy sources, as renewable energy was generally produced domestically, thus energizing local economies. He estimated a net gain of some 150 per cent in job creation per $1 million of expenditure.
Gayle Schueller, Vice-President, Global Sustainability of the 3M Company, United States, said that 3M integrated sustainability into all its decisions through applying science to life, including in the reduction of greenhouse gasses. 3M staff members at all levels had established over 12,000 pollution protection programmes worldwide. Those programmes had prevented the emissions of over 4 billion pounds of pollution waste, which was right for the environment and advanced business. Its environmental measures had saved the company billions and its grass-roots approach had been key to providing good jobs that offered employees the opportunity to spend 15 per cent of their time pursuing projects about which they were passionate. That, in turn, had led to technological innovation for the company.
Despite such innovative approaches, Phil Jennings, General Secretary of UNI Global Union, speaking on the second panel, “Making Dignity and Prosperity the Norm”, said that organizing workers had become a battle. It was no accident that income had gravitated to the top 10 per cent at the same time that union density had declined. “The more you weaken your labour union movement, the more unequal economically your country will become,” he said. The writing on the wall was clear on income inequality. “Take it seriously,” he said. “It is a threat to countries, societies, neighbourhoods and individuals.” Describing the International Labour Organization (ILO) as “our Security Council and our peacekeepers”, he called for the full observance of that organization’s core documents by Governments and business.
Guy Ryder, Director-General of ILO, said real progress towards dignity and prosperity required a package of overlapping measures aimed at ending abject poverty. ILO affirmed that guaranteeing the rights of workers was critical to allowing them to claim freely their fair share of the wealth they had helped to generate. He said the scale and complexity presented by the challenges of sustainable development demanded ambitious collective action, not only from Governments, but also from all other stakeholders. Guaranteeing rights were essential to the implementation of the new development agenda, perhaps even more so than finance. Making dignity and prosperity the norm was central to sustainable development and decent work was the glue.
Speaking from the third panel of the day, “At Work in Africa”, Hakim Ben Hammouda, Former Minister for Finance of Tunisia, and Special Adviser to the African Development Bank President, said that recent economic recovery had been job poor. That was particularly true of Africa, which would, according to estimates, achieved economic growth of 5 per cent in 2015, the highest of any region. Even so, the continent had lost the most jobs of any region.
Aeneas Chuma, Assistant Director-General and Regional Director for Africa of ILO, said that the negative aspects of the informal sector, which employed 9 out of 10 workers, far outweighed the positive aspects. Breaking out of informality was a major development goal. For ILO, the most important actions were promotion of small and medium-sized enterprises, creation of a regulatory environment that protected worker’s rights and their ability to negotiate, and the development of a social protection floor. Employment-friendly growth was a large part of formalizing an economy.
Ebrahim Patel, Minister for Economic Development of South Africa said that Africa was faced with deep structural problems rooted in the colonial experience, in which Africa had been the supplier of raw materials. Fast growth, although needed, would not change those structural problems. “Jobs-rich” growth had to be encouraged. In addition, it was necessary to widen and deepen markets, which required integration of Africa. For that purpose, a free trade area of 26 countries was under negotiation.
Delegates today also heard assessments of progress made 20 years after the fourth World Conference on Women in Beijing and the World Summit for Social Development in Copenhagen, and participated in a general debate on the topics discussed during the panels.
Speaking during the general debate were Ministers and senior Government officials of Finland, France, Indonesia, United Kingdom and the United States,
Also speaking were representatives of Belgium, Kyrgyzstan, Zimbabwe, Kazakhstan and Switzerland.
The Economic and Social Council will next meet at 10 a.m., on Wednesday, 1 April, to continue its integration segment.
Panel I
The session opened with a panel discussion on “Solutions to Climate Change: Growing Decent Jobs”. Moderated by Michael Renner, Senior Researcher at the Worldwatch Institute, United States, it featured Miles Sampa, Deputy Minister for Commerce, Trade and Industry of Zambia; Robert Pollin, Professor at the Political Economy Research Institute of the University of Massachusetts, United States; and Gayle Schueller, Vice President, Global Sustainability of the 3M Company, United States. Peter Poschen, Director, Job Creation and Enterprise Development Department of the International Labour Organization (ILO), served as a discussant.
In introductory remarks, Vladimir Drobnjak, Vice-President of the Economic and Social Council, said that climate change was one of the greatest challenges facing all nations. It led not only to environmental consequences, but also to economic and social ones. There were trade-offs involved in addressing climate change and innovative ways must be found to effectively promote environmental sustainability while creating opportunities for decent job creation. That was the panel’s purpose, in addition to highlighting national challenges and solutions, and bringing together Government, academic and business perspectives.
Opening the panel discussion, Mr. RENNER, said that the link between climate challenges and decent work was clear. Economic prosperity depended on a stable climate and healthy ecosystems. Without timely action many jobs would be lost. But, today’s focus was on the positive connection. With the right policies in place, the shift to a sustainable economy could increase job production and social inclusion. The crucial sectors involved were reflected on the panel. Energy, while not a large employer, was crucial to the discussion. Energy efficiency must become a priority throughout the economy.
Information was needed on how things actually played out in the workplace and required further study, he said, raising several areas to consider at the intersection of jobs and green energy. The building sector could improve its energy use, but many of its employees were part of the informal sector. Alternatively, manufacturing produced more than 80 per cent of greenhouse gas emissions, but accounted for a much smaller percentage of employment. He then explained that the panel would address the issues starting from the macro view and moving to the micro level.
Mr. POLLIN, summarizing his research on a macroeconomic agenda to achieve climate stabilization and to build green economies globally, said that a global investment strategy of about 1.5 per cent annually in clean energy over and above other investments would result in a 40 per cent reduction in global carbon dioxide emissions and achieve the Intergovernmental Panel on Climate Change emissions target. It would also greatly expand employment opportunities in all regions. Investing in clean energy was cost-effective. Clean energy investments were either now at or were approaching cost parity with fossil fuels, with the exception of solar. Solar remained more expensive, but with each doubling of its use, the cost was significantly reduced and would eventually reach parity.
There would be a significant net value impact on employment, even allowing for the 30 to 40 per cent contraction in the fossil fuel sector, he said, because producing renewable energy was more labour intensive. It was also generally produced domestically, resulting in less need for exported energy and the energizing of local economies. He estimated a net gain of some 150 per cent in job creation per $1 million of expenditure. However, that alone would not solve the job problem, as that gain was only 1.5 per cent of gross domestic product (GDP). He stressed that it would significantly improve the quality of jobs in the agricultural sector, primarily due to biomass energy, would move jobs from the informal to the formal economy and promote gender equality. Noting that there would be a loss of jobs in the fossil fuel sector, he stressed the need to prepare those workers for new jobs, which could be planned for as the contraction would be known in advance.
Mr. SAMPA said that employment problems, particularly those of youth employment, had serious consequences for politicians and could remove them from power. He spoke of youth in Zambia who illegally cut down trees to sell them, leading to deforestation. To address such problems, Zambia was committed to pursuing sustainable development while supporting its economy. It focussed on coordinating green initiatives through raising awareness in the construction industry about green buildings. A “Green Jobs” programme was promoting such jobs through medium-sized and small jobs in the construction sector. Green buildings contributed to a greener approach to materials use, energy and waste management, leading to a better quality of life. Thus, sustained inclusive growth could be achieved while sustaining and improving the environment.
Such a strategy used nationally available resources locally, whereas conventional approaches to industrialization required importing materials, he said. Zambia was requiring builders and developers to gradually implement sustainable policies. They were also being required to employ locals among other measures. He stressed the need for appropriate capacity to determine the policies, fiscal measures and taxes needed to support green growth. Both hard and soft investment was needed in such areas as information and communication technologies and developing more skilled human resources. The returns on those investments would support the local economy, grow local entrepreneurship and diversify the economy, while supporting labour-intensive processes. As a politician, in a country with 70 per cent youth, of whom 70 per cent were unemployed, that could only be beneficial.
Ms. SCHUELLER said her company integrated sustainability into all its decisions through applying science to life, including in the reduction of greenhouse gasses. Noting that 3M worked in more than 70 countries and had over 60,000 products, she said that, at its core, it was based on science and technology. One of its cornerstone programmes was a pollution protection programme, which was smart for the environment and economies. The company had set up more 12,000 such programmes worldwide, created by staff around the world at all levels. Those programmes had prevented the emissions of over 4 billion pounds of pollution waste, which was right for the environment and advanced business.
She provided many examples of how 3M was addressing environmental challenges from “glass bubbles” — which reduced emissions from cars and light-weight planes — to water conservation measures. The use of window film, which had come into play after the Fukushima disaster, made buildings in Japan more comfortable, using less energy. The bottom line was that 3M was committed to reducing its own environmental footprint while helping others to do so.
Mr. POSCHEN, pointed out that the present discussion complemented issues addressed yesterday, such as Africa’s significant growth that had not created jobs, or the money available that was not being invested in the real economy. Still, he said it was possible to protect the environment and create jobs. With that in mind, he posed questions to his fellow panellists, asking Mr. Pollin how reliable his statistics were if they were to be relied upon to prepare those who would lose their jobs for the future. Noting the global housing crisis, which was growing, he asked Mr. Sampa how Zambia’s policies on capacity-building, technology transfer and financing were tied to the national development strategy. He noted 3M’s example of workplace potential and how workers themselves could be innovative in going green, and that the company had reduced emissions by more than what was currently being negotiated, saving billions in the process. He asked Ms. Schueller how other companies could be made to follow suit.
Responding, Mr. POLLIN said that the estimates were based on modelling used by economists. As his model had been integrated into the 2009 stimulus programme of the Obama Administration — of which $90 billion out of the $800 billion was devoted to green investment — it had been possible to compare what was actually happening to the estimates. The estimates, based on industrial surveys from every company, proved to be very close. What had started out as a United States-based research project was now being undertaken on a global scale. The technique was easily transferable. The question was how to finance it. There was no shortage of available financing, but it had to be properly channelled through banking policy.
Mr. SAMPA said most budget resources went to building infrastructure. But, what were important were allocations to education, so that citizens would understand why the policies were important. For example, most small and medium-sized enterprises had not understood carbon policies, so the media had been used to educate them.
Ms. SCHUELLER said 3M shared information with other companies, but that the core culture of a company was important. 3M was willing to allow for mistakes and also had a programme permitting employees to spend 15 per cent of their time to work on things they were passionate about. That had led to many technological innovations. Employees were also working with people in Africa on how they could use solar energy, for example how they could collect solar energy while they were at school and then take that collector home to provide light so that they could do their homework. The company’s grass-roots approach was key.
Mr. RENNER, noting that South Africa’s Minister for Economic Development, Ebrahim Patel, was present, asked him to speak briefly on that country’s solar water-heating housing project.
Mr. PATEL said that programme was one of a number of green jobs programmes. It included installation, maintenance and manufacture of solar units for low-income housing, with manufacturing being particularly critical. Its purpose was to bring hot water to homes that were either not on the energy grid or whose households could not afford hot water. About 480,000 households had those solar water heaters.
In the ensuing dialogue, panellists responded to questions on how to match projects with investments and on how to ensure that research and development were carried out in developing countries. Mr. POLLIN noted that the technology needed for the next 20 years already existed, but needed to be implemented, for which financing was needed. Ms. SCHUELLER spoke of two-tiered research and development projects, long-term ones that might last five years, carried out in more developed countries, and shorter-term projects in less-developed countries. Those projects made use of local knowledge to address local problems, and could eventually lead to the further development of research and development capacities.
Also participating in the dialogue were representatives of the United Arab Emirates and Kazakhstan.
Panel II
The second morning session consisted of a panel discussion on the topic “Making Dignity and Prosperity the Norm”, which was moderated by Bénédicte Frankinet, Permanent Representative of Belgium to the United Nations and Co-Chair of the Group of Friends of Decent Work for Sustainable Development. The panellists included Luis Eduardo Garzón, Minister for Labour of Colombia; Radosław Mleczko, Deputy Minister for Labour and Social Policy of Poland; Phil Jennings, General Secretary of UNI Global Union; and Edward E. Potter, Chair of Labour and Employment Committee of the United States Council for International Business and Director of Global Workplace Rights of The Coca-Cola Company. Guy Ryder, Director-General of the ILO, was the keynote speaker.
In his introductory remarks, Mr. DROBNJAK said faster economic growth alone would not ensure political stability or social cohesion. There must also be respect for the international frameworks of agreed human rights to promote social justice. He said the panel would discuss how the normative framework set out by ILO conventions could help reduce exploitation in the workplace and encourage innovation and higher productivity.
Mr. RYDER said real progress on the front required a package of overlapping measures aimed at ending abject poverty. ILO affirmed that guaranteeing the rights of workers was critical to allowing them to freely claim their fair share of the wealth they had helped to generate. Many believed the sustainable development goals were being set at increasingly ambitious levels, he noted, and added that the scale and complexity of the challenges did indeed demand ambitious collective action from Governments, as well as from all other stakeholders on the basis of dialogue.
Guaranteeing rights was essential for implementing the new agenda, perhaps even more so than finance, he said. The world economy was not producing jobs of the quantity and quality people needed, which brought particularly worrying consequences. Reversing the negative trends in global labour markets was essential for achieving the post-2015 development agenda. Making dignity and prosperity the norm was central to sustainable development and decent work was the glue.
Asked by Ms. Frankinet how the goals and targets on decent work would be addressed in Colombia, Mr. GARZÓN said the Government was guided by the conviction that the broader social, economic and environmental goals set forth would be achieved through the requisite tools and mechanisms. State policies sought to foster social dialogue and encourage new actors to devise and implement specific and clear targets. Colombia was also trying to reconcile employers and employees in the pursuit of common interest, which ILO considered a good example.
Public policies were intended to strengthen workers’ rights and working conditions, he said. The country was looking at such vital issues as women’s equity and empowerment, the needs of rural segments in the post-conflict scenario, and the special requirements of youth. There was a focus on the regulatory environment in order to create guidelines on promoting equity over the entire national territory, as well as on translating those commitments into the Government’s daily work.
Asked how international labour standards strengthened national policies and the future of social dialogue, Mr. MLECZKO said those standards needed to be seen in a holistic way. Studies showed a strong relationship between international labour standards and productivity, he said, adding that the participation of employees in social dialogue increased economic efficiency and led to better solutions. Collective bargaining agreements made business conditions more predictable and reliable, which in turn helped investors gain a better picture of the prevailing business climate. Eliminating forced labour and child labour was not only an ethical imperative but also an economic one.
Social protection was an important and natural mechanism during times of crises, he said, and stressed that observation of international labour standards on decent work encouraged efficiency. However, in the twenty-first century, everyone must bear in mind the changed reality of the world, where open-ended contracts were being replaced by fixed-term arrangements, part-time work or telecommuting. That required a thorough review through social dialogue among the stakeholders.
Asked whether significant changes in employment structures and contracts jeopardized the traditional system, Mr. JENNINGS said that organizing workers had become a battle. The United States, the world’s number-one economy, had become the worst place for labour. It was no accident that income had gravitated to the top 10 per cent at the same time union density had declined. “The more you weaken your labour union movement, the more unequal economically your country will become.”
Describing ILO as “our Security Council and our peacekeepers”, he called for the full observance of the organization’s core documents by Governments and business. In a positive sign, Governments and investors were taking their responsibility more seriously, but more needed to be done. On income inequality, the writing on the wall was clear. “Take it seriously. It is a threat to countries, societies, neighbourhoods and individuals.”
Asked to elaborate on his company’s policies and practices, Mr. POTTER said Coca-Cola was a highly unionized business around the world. Twice a year, it discussed concerns and challenges its unions around the world were facing. There could not be a sustainable business without a sustainable community, he said, and added that Coca-Cola brought best practices in its operations and spent a lot of money and time creating jobs and building capacity across the value chain.
Each year, the company conducted 2,500 social compliance audits, although the primary responsibility of labour protection lay with Governments, he said. Fundamentally, collaboration among unions, civil society, Governments and companies was crucial to ensure that labour standards were clear and enforced and addressed collectively where issues arose.
From the floor, a representative of the United States sought the panellists’ advice on tracking progress on the implementation of decent employment policies and practices as a means of achieving sustainable development. A representative from Uganda asked whether Coca-Cola had global labour standards applicable throughout its operations, as Governments were not equally capable of protecting labour rights.
Mr. POTTER said Coca-Cola’s labour standards were above local requirements and were aimed at protecting fundamental human and workplace rights. On tracking progress relating to decent employment, Mr. POTTER said his company had identified seven issues in the value chain requiring specific attention. As part of its investment decision in Myanmar, it looked at all aspects of human rights in that country. Coca-Cola had gone from being an opaque company in 2005 to a transparent one today.
Mr. JENNINGS stressed the importance of Government compliance with labour standards. After the collapse of a garment factory building in Bangladesh two years ago, his organization had worked to establish a legally binding accord providing for independent inspection. “There is no International Criminal Court for multinational business, but top political leaders have begun talking about the need for consequences in case of violations of rules,” he said.
Mr. GARZÓN stressed the need to work towards incorporating credible, measurable and sustainable goals through reliable tools in order to build confidence. Social dialogue could help resolve many of the challenges, as nobody had the absolute truth and everybody was in a learning process.
Mr. MLECZKO said violation of rules should have consequences, adding that rules should be pragmatic and acceptable and developed on the basis of social dialogue.
Responding to a question by the representative of Colombia, Mr. GARZÓN said the sustainable development goals might sound ambitious, but Governments needed to take a holistic approach to implementing them.
Progress Report by Commission Chairs
Following the panel discussions, two speakers assessed progress made in the 20 years since the Beijing and Copenhagen summits.
SIMONA-MIRELA MICULESCU (Romania), Chairperson of the Commission for Social Development, said productive work and employment was one of the main pillars of the Copenhagen Declaration. Member States committed to support productive employment and decent work for all in order to promote social integration. As the key United Nations body entrusted with monitoring and implementing the outcome, the Commission constantly examined aspects of promoting decent employment.
With 201 million people unemployed, the level remained unacceptably high. Efforts were also needed to address the issues and challenges in the informal sector. Even in advanced economies, there was growing income insecurity. As the centrality of decent jobs to sustainable development had been well documented, ILO labour standards needed to be implemented in all countries, with special attention paid to vulnerable and disadvantaged groups.
ANTONIO DE AGUIAR PATRIOTA (Brazil), Chairperson of the Commission on the Status of Women, said the political declaration adopted by the fourth World Conference on Women sent a strong and clear signal of where the world stood and what was expected moving ahead. Ministers and Government officials had pledged to take further action to ensure the full, effective and accelerated implementation of the Beijing Declaration and Platform for Action. A key finding of the 20-year review was that the global economic landscape had not been enabling for implementation of all areas of the Platform. The global financial and economic crisis and volatile food and energy prices intensified inequalities and vulnerability, with specific impacts on women and girls.
The Commission on the Status of Women, as the principal policymaking body of the United Nations on gender equality and women’s empowerment, had been instrumental in raising visibility and in recommending policies, programmes and other measures to accelerate employment creation and decent work for women. In 2014, the Commission assessed progress in implementing the Millennium Development Goals as they related to women and girls and detailed steps to be taken in that regard.
Panel III
The afternoon panel, titled “At Work in Africa”, was moderated by Ismael Abraão Gaspar Martins, Permanent Representative of Angola to the United Nations and Co-Chair of the Group of Friends of Decent Work for Sustainable Development. Participants included Ebrahim Patel, Minister for Economic Development of South Africa; Hakim Ben Hammouda, Special Adviser to the President of the African Development Bank; Aeneas Chuma, Assistant Director-General and Regional Director for Africa of ILO; and Alioune Sall, Executive Director of the African Futures Institute, South Africa. David Mehdi Hamam, Chief of the Office of the Special Adviser on Africa, served as a discussant.
Introducing the panel, Mr. GASPAR MARTINS said that full employment would go a long way towards achieving all sustainable development goals, and an environment that supported investment was critical to creating employment opportunities. Decent work was necessary for fully inclusive and equitable globalization, as well. To start off the discussion, he asked Mr. Patel what strategies his Government had put in place to promote decent work.
Mr. PATEL said that Africa was faced with deep structural problems rooted in the colonial experience, in which Africa had the role as the supplier of raw materials. Fast growth, although needed, would not change those structural problems. “Jobs-rich” growth had to be encouraged, he stressed, and in South Africa, the first step was setting a target of the number of jobs to be created by 2030. The sectors of energy, water, agriculture, transport and social services had to be reconfigured to meet the target. In agriculture, small-scale farmers had to be connected with markets. A significant investment in green energy was also being made.
In addition, Mr. Patel said, it was necessary to widen and deepen markets. For widening the market, integration of Africa was needed. For that purpose, a free trade area of 26 countries was currently being negotiated. A deeper market could be created by pulling consumers out of poverty. The most important drivers of job-creation were, however, infrastructure-building and industrialization, to ensure that Africa was not just a supplier of materials to be processed elsewhere.
Asked by Mr. Gaspar Martins how economic growth itself could generate jobs, Mr. PATEL said that South Africa had introduced an employment factor into assessments of the competitiveness of enterprises. Where growth occurred was an important consideration, as well, so there was a focus on growth in rural areas. In addition, growth due to trade with other African countries helped create a regional economy that protected against global shocks.
Asked for a macroeconomic perspective on growth and jobs, Mr. BEN HAMMOUDA said that there seemed to be a consensus that recent economic recovery had been job poor. This was particularly true of Africa, which would, according to estimates, achieve economic growth of 5 per cent in 2015, the highest of any region. At the same time, the continent had lost the most jobs of any region. Short-term solutions to the recession had contributed to that paradox.
At the macroeconomic level, there were limits to what could be done, he said. Balances needed to be maintained, such as keeping deficits and inflation to a tolerable level. That affected the capacity of stimulus programmes, in particular investment programmes, which were frequently not implemented in a timely manner. Often structural resistance was met to efforts at the macroeconomic level, in terms of inability to diversify and make other necessary changes. Those changes needed to be made in order for any macroeconomic strategies to succeed in creating jobs. It had to be kept in mind, however, that, even with the best policies, his country, Tunisia, would never be able to provide jobs to all the 360,000 students graduating each year from institutions of higher education. For that, regional and international integration was needed.
Asked by Mr. Gaspar Martins how the informal economy fit into the discussion, Mr. CHUMA said that the negative aspects of the informal sector, which employed 9 out of 10 workers, far outweighed the positive aspects and breaking out of informality was a major development goal. For ILO, the most important actions were promotion of small and medium-sized enterprises, creation of a regulatory environment that protected worker’s rights and their ability to negotiate, and the development of a social protect floor. Employment-friendly growth was a large part of formalizing an economy. Adding value to export materials, through industrial transformation, was necessary in that context. In addition, recognition of the importance of technology in that transformation was needed. For that reason, skills training must match the demands of the new world of work.
On the place of innovation in job creation, Mr. SALL said Africa was “rather an ambiguous continent” when it came to predicting the future. Demographic growth, in addition to the loss of jobs, was now wiping out the effects of economic growth. If that continued, the future would be very bleak. Therefore, innovative strategies were needed to figure out how to truly break out of the colonial structure that continued to allow reliance on export of raw commodities. Recent agreements on agricultural trade were also counterproductive in that context.
In order to remedy the situation, he continued, the economic sphere could not be separated from the political. A new development paradigm was needed that took into account politics, as well as the heterogeneity of the African ways of life. A model for society had to be agreed upon before one could determine what kinds of jobs were needed. Ideas had to be clarified in a number of areas before that could occur. On the positive side, growth had generated capital that could fund the needed transformations once consensus was built around them.
Asked by Mr. Gaspar Martins how South-South cooperation fit into such transformations, Mr. SALL said it was central. It was not a panacea, however, and the neo-commercialism of the global South could be as harmful as the neo-liberalism of the global North. In addition, cooperation with the North should continue as necessary, particularly in the area of technology transfer. In order to build the South-South economy, ways to reduce the obstacles to commerce between developing countries, particularly between African countries, needed to be found.
Following that discussion, Mr. HAMAM said that the African Union’s Agenda 2063 had a large focus on job creation along with inclusive growth. However, policymakers needed to have better data in the effort to implement it. In addition, labour-intensive industries needed to be promoted, bank lending had to be increased through provision of incentives and the building of suitable infrastructure had to be supported. Good governance was essential to attract investment. Investment in the green economy was particularly job-rich and best practices should be shared throughout Africa to build that economy. This should be a major focus of the post-2015 regime for sustainable development.
General Debate
EBRAHIM PATEL, Minister for Economic Development of South Africa, speaking on behalf of the “Group of 77” developing countries and China, said the ongoing discussions would help unravel key challenges involved in integrating decent work with the goals of sustainable development. The slowing of employment growth in the aftermath of the global financial crisis was accompanied by a far greater decline in agriculture-related jobs. The issue of creation for youth was more critical for Africa as it had the highest proportion of the young. South Asia and sub-Saharan Africa accounted for the largest number of vulnerable workers in the world. The growing inequalities and disparities between and among developed and developing nations needed to be addressed. Therefore, policies must not be imposed, but should be tailored to the specific needs of countries.
Development goals could not be credible without improving the global governance structures, he said, adding that reform of the International Monetary Fund (IMF) was long overdue in order to make it a more effective institution. It was necessary to move away from a model based on profitability to one of productivity. The United Nations was a unique forum to advance the integration of developing countries into the global economy and should be at the centre of the post-2015 development agenda. The Organization should use tools within the system to promote decent work and employment in a truly meaningful spirit of partnership.
MARKKU WALLIN, Director-General of the Ministry of Employment and the Economy of Finland, said that equality in all aspects of labour markets was critical. Finland had a more than 100-year-old policy encouraging women to join the labour market, with the result that, today, there were more women than men in the market. It was equally important to provide women with the same life-long learning opportunities as men. Finland had focused on youth employment by guaranteeing jobs to youth who had ended their education and were under the age of 29. Unfortunately, the unemployment of middle-aged people had increased as a result. Finland had one of the most educated working populations in the world, he said. In the global economy, it was very important to prevent “social dumping” and violations of fundamental human rights at work. “We will not have a balanced economy in the world until this happens,” he said, adding that the right to collective bargaining was also critical. With regard to Africa, it was a pity that growth had not led to an increase in employment. Productivity would be key to global economic growth.
BERNARD BEDAS, Director of European and International Directorate, Ministry of Labour, Employment, Vocational Training and Social Dialogue of France, said that the employment of young people was a critical and very sensitive topic, as the future of countries was at stake. The youth unemployment rate was over 20 per cent in France. He described a series of measures that France had taken to rectify the problem, including a programme called “Future Jobs”, which targeted youth from disadvantaged backgrounds. A second measure was apprenticeship programmes, with the goal of 150,000 apprenticed youth by 2017 in both the private and public sectors. A third measure was European Youth Guarantees, which guaranteed unemployed young people jobs or internships in different sectors. Combating the high school dropout rate was another important focus in France. The Government had also taken steps to promote gender equality in the employment sector, with new laws striving for a greater balance between men and women in the boards of directors of major companies. France shared the values of ILO with regards to decent work, he added, expressing support for the role of decent work in the post-2015 sustainable development agenda. However, social dialogue and social protection for all should have been included in those targets.
AGUS PRIHONO ROOSTIAWATI, Head of International Cooperation Administration Centre of the Ministry of Manpower of Indonesia, said her country’s transformation into a sustainable and low-carbon economy would trigger shifts in the labour market, create demand for new skills, and require specific measures to facilitate a just transition for workers, employers and enterprises. The changes in production and consumption patterns required incorporating the social, gender and employment dimensions of the labour market into decision-making. The involvement of labour authorities and social partners in the development of inclusive and coherent climate policies were needed. Political commitment at the highest level would be required to ensure that those policies could address the gender and social dimension more prominently and place job recovery policies on a more environmentally sustainable path. Indonesia, in collaboration with ILO, was implementing national programmes and initiatives relating to employment, climate change, the environment and disaster management.
MARTIN SHEARMAN, Ambassador of Development, Peacebuilding and Human Rights of the United Kingdom, said job creation would be a key part of delivering the post-2015 development agenda and was a key priority for his country. Since 90 per cent of jobs were created in the private sector, the new agenda would need to harness the resources of that sector. In that direction, there needed to be a greater focus on building strong transparent institutions, rule of law and open societies. Concerted action was needed to address tax evasions, especially given that shortfalls affected developing countries more. Overseas development aid was central to the agenda, but the world had to be smarter on its use. For the United Kingdom, it was important to leverage aid to boost growth, modernize infrastructure and promote access to finance for women-run enterprises. Such a mixed approach would help the international community to achieve its sustainable development ambitions.
SARAH FOX, Special Representative for International Labour Affairs of the Department of State of the United States, said a primary challenge faced by all countries was fostering inclusive economic growth. Discussions, therefore, needed to break down silos and integrate the many broader dimensions, such as security and human rights. Decent work required social protection floors, understanding the need to synchronize education to labour market needs and promoting workers’ rights. Within individual economies, efforts needed to be made to reduce inequalities. Bringing workers, particularly women, into the formal economy had ripple effects. The United States had initiated efforts to raise the federal and state minimum wage, introduce social protections and expand health care. It was actively engaging in international forums to identify the best ways of promoting decent work.
BÉNÉDICTE FRANKINET (Belgium) said that her country had long supported the cross-cutting integration of decent work into the post-2015 sustainable development agenda. Belgium welcomed the inclusion of decent work into sustainable development goal eight and across all the post-2015 goals. Decent work was based on four strategic elements and a fifth cross-cutting one, including respect for fundamental social rights, broad-based social protection and social dialogue. A global macroeconomic context that enabled employment and growth was necessary in order to promote decent work, she said, adding that workers should be provided with protection and advancement opportunities. Decent work was negatively impacted by climate change, which devastated populations and destroyed infrastructure. Decent work was also a governance goal for States themselves, and that needed to be clearly reflected in the post-2015 sustainable development agenda. The real place to achieve the mainstreaming of decent work policies was within States and supply chains. In that regard, a legal framework and collective bargaining must govern dialogue around decent work. In order to meet the goals related to decent work, all organizations, banks, funds and programmes must be incorporated, as financing was critical. Belgium was currently working directly with ILO to study ways to promote decent work across the post-2015 sustainable development agenda.
TALAIBEK KYDRYOV (Kyrgyzstan) said that the current discussion was of special importance today, when countries were facing economic difficulties, volatile markets, and the negative impacts of climate change. Sustainable economic growth and job creation were not possible without respect for fundamental human rights to decent work. Kyrgyzstan was taking comprehensive measures to promote good governance, institutional capacity and legislation. The country had adopted a road map employment policy through decent work for 2011-2015, which included the policies and measures which met the key criteria of decent work for all categories of employees, including persons with disabilities. A next step was the adoption of the national strategy of sustainable development for 2013-2017, which identified as a high priority the creation of green jobs. In particular, special attention was paid to the comprehensive development of agriculture and tourism, the implementation of infrastructure projects, and the promotion of entrepreneurship development through microbanking for women and youth. Despite those measures, the country’s employment rate was only 58.8 per cent, with a high surplus of labour and low competitiveness of labour resources.
FREDERICK MUSIIWA MAKAMURE SHAVA (Zimbabwe), aligning with the Group of 77, said his country was guided by the Southern African Development Community (SADC) framework on employment, whose objective was to harmonize policies and achieve best practices throughout the region. The Regional Indicative Strategic Development Plan promoted sustained economic growth, education and training, increasing labour absorption and proactive approaches to employment creation. Small and medium-sized enterprises were an important engine for economic growth, but faced a multitude of challenges, including lack of access to capital and technology. Despite its commitment and effort, the country was constrained by economic sanctions, he said, calling for their immediate and unconditional lifting.
KAIRAT ABDRAKHMANOV (Kazakhstan) said poverty alleviation required macroeconomic strategies at the country, regional and global levels to improve living conditions of the poor and enhance their capacity to work and be productive, both in urban and rural areas. The focus should be on the rural poor, who constituted the vast majority of the world living in poverty. Securing property rights to land, the largest asset for most societies, was vital to economic freedom. Raising farm incomes through diversified agriculture, improved water management, irrigation and climate change adaptation were needed in Asia and Africa. At the same time, economic ties should be fully depoliticized and the conflict rhetoric minimized. Policies were required to upgrade the manufacturing industry, expand high-quality service sectors by through training workers for new jobs and skills, minimum wages, collective bargaining and other reforms to reduce income inequality and promote inclusive growth, as well as to benefit the environment.
OLIVER MARC ZEHNDER (Switzerland) said that “economic growth is a necessary, but not sufficient, condition for sustainable development and job creation”. One of the main goals of Swiss development cooperation was the integration of developing countries in the global economy and the promotion of sustainable social, economic and environmental growth in those countries. Growth that benefited only one part of society resulted in inequalities, and hence, social tensions; therefore, democratic and political dialogue must lead to strong, effective social policies that support growth. The causal relationship between sustainable development and job creation in the drive to alleviate poverty was a complex one. Improving working conditions and productivity was the main challenge, but a sufficient number of decent and long-term jobs must also be created. General economic conditions coupled with an active labour market policy should boost productivity, increase job market integration and facilitate the search for new solutions that were geared towards a green economy. Broad consensus must be sought on respect for democracy and the promotion of basic human rights; the fulfilment of the three key commitments of the Copenhagen Summit; social integration through decent employment; and the provision of effective social protection.