Inclusive Wealth Creation, Not Just Growth, Vital in Post-2015 Period, Speakers Stress as Economic and Social Council Concludes Integration Session
Speakers at the Economic and Social Council drew attention today to the multidimensional nature of the challenge of generating equitable and inclusive employment opportunities as part of achieving sustainable global development, as that body concluded its 2015 integration segment.
Echoing a sentiment that resonated throughout the panel discussions and keynote speeches during the three-day session, speakers emphasized that economic growth alone was insufficient and called for efforts to ensure that job opportunities were fairly distributed and wealth creation was inclusive.
The representative of Tunisia said his country had experienced a revolution two years ago triggered by unemployment and disparities that revealed the limits of economic growth without social justice. The Government was working across different sectors to create jobs and promote economic growth in a balanced and comprehensive way.
Calls for overhauling the international development system emerged during the debate, with Brazil’s representative saying the trends set by the neoliberal economic policies prevalent in the 1980s must give way to a new paradigm. States must be supported in development efforts to put people first and reduce the distance between those ahead and those behind, through sustained economic growth, while protecting the environment.
The difficulties of countries in special situations were also highlighted during the discussions. There was a direct relationship between trade and employment, the representative of Paraguay said. However, in the context of sustainable development, not all countries had the same capacity to conduct free trade. Landlocked developing countries, for instance, had transport costs that were 40 per cent higher than those of coastal countries. Without addressing such challenges, inequalities might widen.
Emphasizing the important role of the private sector in job creation, Australia’s representative said new and creative ways must be found to engage with that sector to support development. Women, in particular, must be included in effort to drive stronger growth, with policies underpinned by quality education and health and strong governance.
The representative of the International Telecommunications Union (ITU) stressed the need to promote national school curricula and other policies that encouraged digital literacy training and capacity-building. He proposed that the theme for the Council’s 2016 integration segment be “Harnessing digital technologies for sustainable development” and called upon Member States for support.
Three panel discussions were also held today, with the morning session focusing on matching education and skills to market demands. The two afternoon panels discussed financing for development and partnerships for decent work, and the challenge of creating 600 million decent jobs in the next decade, respectively.
In his closing remarks, Guy Ryder, Director-General of the International Labour Organization (ILO), said the three days provided broad and deep discussions across a variety of formats on the imperatives of action on the three pillars of sustainable development. The macroeconomics of sustainable development, rising inequality, formalizing workers, tackling climate change, respecting international labour standards, investing in energy and equipping the young with the skills today’s world of work required were all issues relevant to the ongoing deliberations on the post-2015 development agenda. The discussions had demonstrated the importance of policy integration across a wide range of areas all going in the same direction.
Thomas Gass, Assistant-Secretary-General for Policy Coordination and Inter-Agency Affairs of the United Nations Department of Economic and Social Affairs, said the Council’s integration segment had become a unifying platform for Member States and the United Nations system to discuss the three dimensions of sustainable development. The central positon of decent work and employment creation had been underscored over and over again through lively and open discussions. “You have put the spotlight on putting people back to work,” he said, adding that efforts had to proceed in an integrated way. The new agenda was not a log frame to fix issues in the South, but a vision for humanity to participate as both contributors and beneficiaries.
Vladimir Drobnjak, Vice-President of the Council, said the integration segment had addressed central issues concerning employment creation and decent work for all, as well as solutions and partnerships that were required for an integrated approach. The session had inspired some concrete policy recommendations and action-oriented solutions to promote policy coherence in economic, social and environmental dimensions. The conclusions could provide additional food for thought in the elaboration of the post-2015 development agenda.
He would join the Director-General of ILO in working towards launching a global network of stakeholders on employment creation and decent work for sustainable development, which would be the Council’s contribution to addressing the global challenge. The discussions and recommendations from the integration segment would be compiled into a Vice-President’s summary, which would serve as an important contribution to the Council’s high-level segment. The Council’s bureau would carefully consider the proposal to focus the 2016 integration segment on harnessing the power of digital technologies for achieving the sustainable development goals.
Also making statements during the general debate were the representatives of Trinidad and Tobago, Serbia, Italy, India, Russian Federation, Canada, Honduras, Republic of Korea, Panama, Israel, Rwanda, Albania and Argentina. Representatives of the United Nations Human Settlements Programme (UN-Habitat) and the United Nations Industrial Development Organization (UNIDO) also spoke.
Panel I
The first panel discussion, titled “Finding the Opportunities: Matching Education and Skills to Market Demands”, was moderated by Antonio Prado, Deputy Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC). It featured Elizabeth Vazquez, Chief Executive Officer and Co-founder of WeConnect International, United States; Ron Bruder, Founder of Education for Employment, United States; and Zach Sims, Co-founder and Chief Executive Officer of Codecademy, United States.
Opening the session, Vladimir Drobnjak, Vice-President of the Economic and Social Council, said the global education system was not equipping the young generation with the skills needed for the jobs of today, and expressed hope that the panel would help find innovative solutions.
Posing his first question, the moderator asked Ms. Vazquez what her organization could do to help and empower women, who were mostly engaged in the informal sector. Ms. VAZQUEZ noted that when women started businesses, they went into low-profit initiatives and those with a limited reach. Her organization sought to help women identify the type of products businesses wanted and build capacities in a way that would have ripple effects across society. It was vital to identify those businesses that had the potential to grow. The focus should be on the market and market-based solutions, she said, adding that it was important for women and businesses in the informal sector to want to join the formal sector. Women who owned businesses were looking to create good-quality and flexible jobs in their communities, regardless of the country. Her organization focused on groups that had been underutilized, as well as women who wanted to sell to big corporations.
Asked about the broader impact of women’s participation in the labour market, Mr. BRUDER said that, although women dominated institutions of higher education, their presence in the workplace was not commensurate because of a variety of reasons. Citing his organization’s project in Gaza, where there were limited opportunities, he said that after training, men got jobs in the Gulf region, while women tended to stay back home because of tradition.
Regarding the advantages information and communication technologies had brought to education and training, how such technologies had impacted the labour market and how relevant skills could be developed, Mr. SIMS said such technologies helped training and skills to transcend borders. “Education is no longer something you went elsewhere to receive,” she said. People were learning consistently across their lifetimes. Technology had made location irrelevant for a large range of jobs. Now it had started to change the nature of jobs as a whole. As to skills development, the situation was rapidly evolving. Training for software programmers prevalent two years ago did not necessarily provide the skills needed today.
Technology allowed more and more people to work at home, Mr. PRADO said, and asked how that impacted social relations. Mr. BRUDER said much depended on the context. In a country like Yemen that had tribal-based cultural and social traditions, there was a tremendous amount of interaction even among people who worked from home. Ms. VAZQUEZ said technology was one of the best things to have for women, which allowed her to be engaged with people in 20 countries. What was good for women was good for men, as well. Employees and employers must be in close communication on the needs of the skills of the future.
As to how companies could maintain relevance amid intense technological changes in the world with implications for the labour market, Mr. BRUDER said his company focused on local affiliates, which were more attuned to local conditions and requirements. Demands from affiliates inspired new products that in turn could be sent to places that needed them.
Mr. SIMS said two areas needed attention: individual mindsets and institutional approaches to education. Everyone needed to become more flexible. Learning should not be relegated to a four-year education. New institutions that gave people in a short time what they needed to be in the labour market were essential. “Employers should also be able to focus on what people know and not where they learned it,” she said.
Ms. VASQUEZ said it might be better for some women to look at value-added services related to agriculture, instead of focusing fully on farming. There should be an honest and hard conversation on what people want to do and what the market would pay for.
Mr. PRADO said there was a difference between education and training, as the human spirit could not be limited to labour market conditions and requirements. How could that difference be resolved and reconciled?, he asked.
Mr. SIMS said the higher education was no longer allowing people to make economic decisions. Allowing the human spirit to enrich itself through the classics was a wonderful thing, but entailed huge debts. She asked if there could be a way to read great books without being saddled with $200,000 in student debts, and for others to get skills required by the job market relatively inexpensively.
Agreeing, Mr. BRUDER said that, in some places, the more education you had, the less relevant you were for the labour market. His company took a direct approach by training people in areas where there were jobs. Rote learning had little relevance in today’s world when people needed to be able to think outside the box.
Ms. VAZQUEZ said the basics of education were not in question. A more entrepreneurial curriculum was needed where a mindset of taking risks, innovating, collaborating and using technology were valued. Many people did not like to memorize textbooks, but loved learning through experience. The curriculum must be ongoing, life-long learning that “pulls the best out of people”.
Representatives of several countries also posed questions to the panellists. For example, the representative of Finland said much of the discussions over the past three days focused on building labour-intensive sectors. He asked if that was a realistic proposition amid the changes in the labour market.
The representative of the United States said there were billions of people who were not entrepreneurial and were in low-wage jobs with no access to technology. She asked what future they had. The representative of the European Union delegation asked whether Governments and businesses could help promote apprenticeship amid existing budgetary strains.
Ms. VAZQUEZ said entrepreneurial people did not see themselves as victims, but as people with ideas and solutions. Policies should be made by engaging with the people, and not merely on their behalf. Mr. SIMS said apprenticeships and dual-learning programmes were important mechanisms, but the challenge lay in incentivizing companies. The exact role of Government in doing that was unclear.
A representative of the United Nations Department of Economic and Social Affairs also asked questions, as did a representative of the Republic of Korea, as well as the International Trade Centre.
General Debate
LIZANNE ACHING (Trinidad and Tobago), aligning with Caribbean Community (CARICOM), said promotion of employment and decent work were critical enablers of sustainable development. Initiatives designed to spur job growth were most successful when they addressed the three dimensions of such development in an integrated manner. Highlighting his country’s policies, plans and strategies in that direction, she said there were gaps and challenges for which technical assistance would be required. Therefore, the post-2015 development agenda needed to address the means of implementation in a comprehensive manner in order to deliver critical capacity-building and technical support. The format and organization of the Economic and Social Council integration segment provided valuable guidance and insight for monitoring and implementation of that agenda.
KATARINA LALIĆ SMAJEVIĆ (Serbia) said that the issues under discussion were critical for the well-being of every individual and the main driving force behind inclusive economic growth, social cohesion and combating poverty. Her Government’s 2011-2020 National Employment Strategy called for new measures to create an economic atmosphere that would attract investment and create new jobs. The 2015 National Employment Plan aimed to improve the condition of the labour market and promote job market institutions; stimulate employment and social inclusion of “less employable” persons and support regional and local employment policies; raise the quality of the labour force and invest in human resources; and emphasize employment for persons with disabilities. Cooperation between countries on enhancing employment and income opportunities were needed. All-inclusive, effective policies must be devised towards full and productive employment and decent work for all.
SEBASTIANO CARDI (Italy) noted that the latest International Labour Organization (ILO) report forecast an excess of 212 million unemployed by 2019 and that 61 million jobs had been lost since the start of the economic crisis in 2008. To address that, an integrated macroeconomic approach was needed that comprised internationally coordinated initiatives which pursued growth and employment as one goal. One of the greatest challenges was to match the supply and demand of labour, which was crucial to addressing youth unemployment. Italy was searching out and promoting solutions at both the national and international levels. During Italy’s six-month presidency of the European Union, it had organized a meeting of European Ministers of Education and Labour, which also included civil society, to underline the need for synergies between educational and labour policies. It also had convened a summit of European Union leaders focused on unemployment, particularly of youth. Italy was also addressing youth unemployment through structural reform of its labour market policies through a “Jobs Act”, which aimed to simplify and update labour regulations and favour life-work balance, among other things. One year out, the policy was showing positive results.
ASOKE KUMAR MUKERJI (India) said that sustainable development was about balanced achievement of economic growth, social inclusion and environmental stewardships, and therefore, employment generation must be at the centre. Employment creation and decent work were prerequisites for developing countries to harness their democratic dividend and were the bedrock of social inclusion. Development had to result in jobs, he said, adding that mass production and production by masses were needed. The Indian Government had taken ambitious new initiatives to build the country as a destination for world-class manufacturing and for skills development. With more than 54 per cent of its total population under the age of 25, India was well poised to reap the democratic dividend. To do that, India’s youth had to be educated and employable for the jobs of the twenty-first century, a reality the Government had responded to with institutional and policy measures.
FEDERICO A. GONZALEZ (Paraguay), aligning with the “Group of 77” developing countries and China, said employment and decent work were at the heart of State policies of most Governments around the world and were closely linked to sustainable development. Paraguay’s national plan established a direct relationship between trade and employment. However, in the context of sustainable development, not all countries had the same capacity to conduct free trade. Different countries had different needs that the multilateral system must address. Landlocked developing countries, for instance, had transport costs that were 40 per cent higher than those of coastal countries. Without addressing such challenges, inequalities might widen.
MOHAMED KHALED KHIARI (Tunisia), also aligning with the Group of 77 and China, said interesting thoughts had emerged on the subject, which required effective follow-up. Tunisia had experienced a revolution triggered by unemployment and disparities, which had revealed the limits of economic growth without social justice. Successive Governments had worked towards reducing unemployment with notable success. Under its national employment strategy, the Government was working across different sectors to create jobs and promote economic growth in a balanced and comprehensive way. The strategy was also aimed at promoting regional development with an emphasis on the role and participation of women.
DMITRY MAKSIMYCHEV (Russian Federation) noting that his country’s unemployment was at 5.5 per cent, said that employment policy should focus on young people and women. Annually, 1.7 million young people in the Russian Federation sought work, and some 74 per cent found it. The Government assisted them through programmes providing vocational guidance as to what fields might interest them, how they might best prepare themselves for such jobs, what demand was, as well as apprenticeship programmes and others. He also noted the role of small business in creating jobs for young people. Improving education for women and increasing their economic and social activity would better prepare them for the labour market. Measures had been taken to enable women to work, including pre-school, flexible working conditions and helping them to find jobs, including self-employment, among others. He called for including goal eight, along with other sustainable development goals as drawn up in the Open Working Group, on the post-2015 development agenda.
ANTONIO DE AGUIAR PATRIOTA (Brazil) said that the trends set by the neoliberal economic policies prevalent in the 1980s must be reversed with a move to a new paradigm. States must be supported in development efforts to put people first and reduce the distance between those ahead and those behind, through sustained economic growth, while protecting the environment. To achieve full and productive employment, as proposed by the Open Working Group in goal eight, cross-cutting, inclusive approaches must be made a priority. Decent work was, above all, a matter of social justice. Expanding the minimum wage, social protection nets and providing universal access to health and education, among other things, could help improve living standards and quality of life. It was urgent to give young people more opportunity to acquire the necessary skills to compete in today’s labour market. He mentioned, in that regard, his Government’s collaboration with the private sector to create a network of technical apprenticeship schools and the National Programme for Access to Technical Education and Employment, which had expanded that network and created more opportunities for people in vulnerable or marginalized situations.
MICHAEL GRANT (Canada) said the promotion of decent jobs and sustainable economic growth at home and abroad were key elements of his country’s prosperity agenda. Meeting the needs of youth would be central to the challenge of providing decent jobs. With appropriate policies in place, both developed and developing countries could greatly benefit from the world’s young population. Economic growth was a primary driver of poverty reduction, but in order to play that role, growth must be inclusive, sustainable and create jobs. Canada supported ongoing efforts to define the appropriate decent-work indicators building on existing definitions, data and international agreements, as appropriate. Fundamental labour rights and the development of high labour standards were essential to achieving that goal. Eliminating discrimination and allowing everyone to fully participate in the labour market would lead to a more innovative, competitive economy.
MARCO SUAZO (Honduras) said all sectors of society should create policies and programmes aimed at promoting decent work in a true spirit of global partnership. The Honduran Government had embarked on a broad-based programme to boost efficiency and transparency under which sectoral initiatives were under way. The “employment by the hour” initiative was one of the innovative schemes tailored to the needs of the country. The establishment of economic and employment development zones through public-private partnerships was aimed at promoting equitable, balanced growth. A free online education plan in English targeting youth aimed to boost their skills in keeping with the demands of the labour market. Women were active leaders in a programme to promote the use of environmentally efficient stoves, as part of the drive towards sustainable development. Efforts to end pay gaps between women and men were coupled with initiatives to boost the participation of women in politics.
CHOONGHEE HAHN (Republic of Korea) said that his country was tackling unemployment and creating decent work for all based on six focus areas designed to create jobs, include the marginalized and protect workers’ rights. It supported vocational education and training based on national competency standards developed for hundreds of jobs, and targeted increasing job opportunities for youth. The term “childcare leave” had been replaced by “parental leave” to promote its use by fathers. At the same time, the public sector was introducing part-time or flexible work hours to help women maximize their abilities. The Government was providing re-employment and free training services to keep the middle-aged and elderly economically active. The public sector was planning to convert 65,000 non-regular workers to regular status between 2013 and 2015 and the Government held strict inspections of intentional or repetitive wage delays and discrimination to expand workfare for low-income populations. The employment safety net was being strengthened and market institutions and practices were being revamped to keep up with economic and social changes and to build a future-oriented employment and a labour system based on an open, fair labour market.
PAULINA FRANCESCHI (Panama) said employment creation was the common denominator of many of the policies that intended to drive economic growth sustainably. In the last decade, Panama had reduced its unemployment rate by 7 per cent with 96 per cent of the economically active people currently working. However, 35 per cent of those people were working in the informal sector. The Government was committed to supporting the development of cognitive and non-cognitive skills of every Panamanian, so that they were prepared to thrive in society. The country was working on long-term policies to reduce the gaps in skill formation. Other initiatives had proved successful in promoting social protection by improving access to education and skills development to those in vulnerable conditions, such as youth and women. The correlation between quality education and social welfare and productivity should be reason enough to increase investment in the education sector.
DAVID ROET (Israel) said that, despite the progress achieved in the past three decades, 15 per cent of the world’s population still suffered from extreme poverty. Poverty was a multidimensional problem and must be addressed through a cross-cutting and integrated approach that incorporated the social, economic and environmental dimensions of development. Employment was a direct way to combat extreme poverty. Improving access to decent work and increasing employment prospects for women of youth were critical components of economic growth. Israel had developed numerous strategies to promote job creation and decent work for the benefit of all its citizens taking into account their abilities and unique religious and cultural backgrounds. The country also recognized the value of untapped potential and considered entrepreneurs to be the backbone of its economy.
JEANNE D’ARC BYAJE (Rwanda) said that Rwanda had been addressing the issues under discussion since the end of the genocide against the Tutsis. Among other measures, a national social protection strategy provided cash transfers and other services to those living in poverty. To build a sustainable economy, the Government supported entrepreneurship for young and old. Economic growth had exceeded 8 per cent over the last three years, lifting more than 1 million Rwandans out of poverty. Small and medium-sized enterprises were springing up across the country and were the foundation of the country’s growth. However, growing youth unemployment was a problem. The Government was working to keep the number of jobs up to the number of graduates, and was working to build skills and an entrepreneurial culture through mentorship programmes, promoting access to credit and markets for start-ups, and investment in research and development, among other areas. Rwanda needed to transform the driver of growth from the public to the private sectors, she said, also stressing the important role regional cooperation had played in Rwanda’s growth.
INGRIT PRIZRENI (Albania) detailed the main principles of his Government’s National Strategy on Employment and Skills 2014-2020, which fostered opportunities for decent work through efficient labour market policies with a comprehensive package of services and programmes, including employment services for all individuals registered in the National Employment Service. It provided quality vocational training to youth and adults, strengthening the links between learning and labour market inclusion. Efforts were also under way to promote social inclusion and territorial cohesion to improve employment and training services in rural areas, with particular attention to those usually excluded, the vulnerable, women and girls.
SEBASTIÁN DI LUCA (Argentina), aligning with the Group of 77 and China, said the selection of this year’s topic was particularly timely. Decent work was not just the most effective way of overcoming poverty, but also a link to sustainable development. There was consensus in the international community for releasing the most vulnerable from want. Accordingly, Argentina stressed the need for a stand-alone goal on employment in the sustainable development goals. The workplace witnessed the creation and perpetuation of inequalities, he said, adding that his country had emphasized the importance of promoting decent work as part of the Millennium Development Goals. The country had made considerable progress in creating social protection floors.
AMY HADDAD (Australia) said creating quality jobs and tackling the economic and social consequences of unemployment were central to development and poverty reduction. Employment was best supported by economic growth and driven by the private sectors. Australia’s “aid for trade” policy connected businesses in developing countries to regional and global supply chains, encouraging trade links vital for growth and development. New and creative ways to engage with the private sector must be found to support development. Efforts must be made to ensure that growth and job opportunities were fairly distributed and wealth creation was inclusive. Women, in particular, must be included in efforts to drive stronger growth, with policies underpinned by quality education and health and strong governance.
GARY FOWLIE of the International Telecommunication Union (ITU) said that the World Bank had estimated in 2009 that, for every 10 per cent increase in broadband network penetration, gross domestic product (GDP) in developing countries increased 1.38 per cent on average and for every 10 extra mobile phones per 100 people, GDP per capita increased by more than one percentage point. Two groups that would particularly benefit from equitable access were youth and women. In 2013, Intel had estimated that, by bringing 600 million women and girls online, global GDP could be boosted by between $13 billion and $18 billion. He noted further that youth under 25 in both the developed and developing world accounted for 45 per cent of Internet users, with those in the developing world outnumbering adult users three to one. While access to technology provided young people access to the training needed to pursue an education and a job, and opened a world of capital markets to them, ensuring achievement of sustainable development and decent work for all required a solid foundation for a technology-ready labour force. That could only happen through national school curricula and other policies that encouraged digital literacy training and capacity building. He, therefore, proposed that the theme for the 2016 Economic and Social Council integration segment be “Harnessing digital technologies for sustainable development” and called upon Member States for support.
YAMINA DJACTA, Director, New York Office, United Nations Human Settlements Programme (UN-HABITAT), said that cities were engines of economic growth and development, generating up to 80 per cent of global GDP and an equal share in job creation. However, growing social inequity in cities limited their ability to unleash their immense economic potential. Urbanization could serve as a transformational force for achieving and advancing sustainable development, she added, noting that employment creation was a top priority for cities. Cities could be used purposely as drivers of national economic growth and as a means to combat extreme poverty, generate decent work opportunities and strengthen social cohesion. UN-HABIAT promoted strategies and policies, including through local economic development initiatives that strengthened the capacities of cities to act as engines of economic development. In order to enable employment growth, policies at the city and national levels should focus on good urban form, density and connectivity; investment in education and skills; investment in housing, infrastructure and renewable energy; and a business environment that promoted investment, entrepreneurship and innovation.
PAUL MASELI of the United Nations Industrial Development Organization (UNIDO) said that good quality jobs were those that empowered people economically by generating income, providing decent wages, offering social protection, addressing the growing income gap within countries and creating increased opportunities for women and youth to participate in the labour market. However, there were a number of challenges in that regard, including jobless economic growth, the concentration of employment in the informal and rural sectors with a low skills base and low pay, and jobs that didn’t offer social protection or worker security. While all sectors of the economy were crucial, industrialization carried particular importance for developing countries. “This is increasingly being recognized as developing countries have grown more vocal in demanding a transition of their economies,” he said. The core of the problem lay in a persisting lack of structural transformation of the economies of many developing countries. History had shown that the process of structural transformation not only led to increases in productivity and economic diversification, but also served as an engine to create the competitive job opportunities so desperately needed.
Panel II
In the afternoon, the Council held a panel discussion on the theme, "Means of Implementation: Financing for Development and Partnerships for Decent Work", which was moderated by George Wilfred Talbot, Permanent Representative of Guyana to the United Nations, and Co-Facilitator of the preparatory process for the third International Conference on Financing for Development. It featured Rania Antonopoulos, Alternate Minister for Labour and Social Solidarity of Greece (via video link); Robert Shiller, Nobel Laureate and Professor of Economics, Yale University, United States; and Martin Khor, Executive Director, The South Centre.
Opening the discussion, Mr. TALBOT said that need to address the challenges of employment was very much in the minds of policy makers around the world. Full, productive employment and decent work were widely acknowledged to be at the heart of achieving sustainable development. The jobs agenda was reflected across the post-2015 development framework, and would be a focus at the third International Conference on Financing for Development in Addis Ababa in July. Today’s panellists would address what needed to be done to ensure that employment held its rightful place in the new sustainable development agenda, and that specific questions, such as youth unemployment were adequately addressed.
Responding to a question about Greece’s particular challenges in reducing unemployment, Ms. ANTONOPOLOUS said that this was the fifth year of a severe recession in Greece, which had been caused by an austerity regime that had created a 25 per cent unemployment rate. “The engine of growth needs to restart,” she said, asking how a job-rich recovery could take place when the Greek population was forced to operate under austerity measures. In order for unemployment to be reduced to pre-crisis levels, Greece needed to create public jobs directly.
Resources needed to be mobilized to that end, she said, including the redistributed social fund and funds targeted to create jobs for youth. The aim was to create 300,000 jobs — including in small infrastructure projects, reforestation and in hard-hit industries — over two years. In the past, youth had not necessarily had the right skills to be hired; today, however, the difficulty was not a lack of skills, but a lack of demand for labour.
To a question about youth unemployment, and how Governments could create work for low-income workers, Mr. SHILLER said there was a huge macroeconomic component at play. Youth in Greece had been “at the margin” when the global economic and financial crisis struck. Public jobs, such as those in reforestation were good jobs, but they were temporary. Subsidized jobs — including through earned income tax credit programmes — were another idea that could be used. Government subsidies could be given to businesses for hiring people at a low-wage rate. Moreover, while it was good for the Greek Government to create public sector jobs, jobs in the private sector might be more enduring and more successful in introducing young people to the workforce.
He stressed the need to not only reduce inequality, but to prevent inequality from worsening. “We need to expand programmes that encourage insurance,” such as the African Risk Capacity or the Caribbean Catastrophe Insurance Facility. Insurance should be expanded to cover more risks, thereby ensuring people’s livelihoods. The level of uncertainty about income inequality was greater now than ever before, which was holding back economic growth.
Asked about his lessons learned with developing countries, Mr. KHOR said the sustainable development goals contained structures, rules and standards for Governments to reduce inequalities through social protection. However, if such methods were not sustained by stable financing, those goals would not be met. Taking the example of trade, he said that the reality was that cheap imports had closed down much production in countries in Africa and elsewhere.
In that respect, he encouraged the implementation of a gradated trade liberalization programme which was more lenient on weaker countries. Such measures fostered equality, whereas free trade agreements could mean a worsening of income inequality and wealth disparity throughout the world. The ideal scenario was that each country would be able to expand its exports in a way that was balanced and beneficial, thereby maximizing job creation.
When the floor opened for questions and comments, the representative of Germany asked Mr. Shiller to elaborate further on the insurance instruments he had mentioned. In response, Mr. SHILLER described both individual home and longevity insurance programmes, as well as aggregated Government insurance. It was important for States to make a “contingency plan” with a defined trigger for the future, he said in that respect, warning against the creation of a political constituency among the “nouveau riche” that could exacerbate income inequality to insurmountable levels.
Botswana’s delegate asked how countries could ensure their employment generation efforts could relate to truly employable skills. Responding, Mr. KOHR said that, while many workers did have employable skills, external factors such as lack of demand could cut them off from decent jobs. If structural unemployment existed, policy makers needed to explore what old sectors could no longer generate jobs and train workers in skills associated with newer patterns of domestic demand.
To the same question, Ms. ANTONOPOLOUS described the example of South Africa and Malaysia, which had had similarly competitive manufacturing sectors in the late 1990s, but which today had very different trajectories. The direction of the economy in the global scheme, as well as skills development plans, must be part of national policies, she said in that respect.
Speaking to her own country’s experience, she said that Greece had not been able to implement counter-cyclical policies during the 2008-2009 economic crisis, as the United States and China had done. It had, instead, instituted pro-cyclical policies, and many small and medium-sized enterprises had been forced to close. Globally, the distribution of income and wealth across the world was going in the wrong direction, she said, stressing that what was needed was the “political courage” for global action.
Mr. SHILLER added that long-term interest rates were currently at extreme lows, and that it was an “opportune time” for Governments to borrow at a very low rate and to invest in such areas as infrastructure. Successful countries were ones that had developed profitable sectors over decades, he added, noting that it was also essential to facilitate risk-taking in innovation. With regard to education and skills development, it was critical to teach young people “expert thinking and communication skills”, as well as practical and vocational skills.
Panel III
A brief video before the final panel discussion indicated that, by 2020, 600 million new jobs would be needed. There were 40 million new job seekers every year; 900 million workers lived on less than $2 a day. Decent jobs were needed to sustain economic growth, spur development, empower youth, prevent unrest and promote social justice to create a brighter future.
The final panel discussion of the session, titled “Wanted: 600 Million Jobs!”, was moderated by Ali Velshi, Host of Al Jazeera America, and featured Alexander Mora, Minister for Foreign Trade of Costa Rica; Marie-José Nadeau, Chair of the World Energy Council and Executive Vice-President of Corporate Affairs and Secretary-General of Hydro-Quebec, Canada; Pavan Sukhdev, Founder, Chief Executive Officer of GIST Advisory, India; and NS Rajan, Chief Human Resources Officer and member of the Group Executive Council, Tata Group, India.
In introductory remarks, Mr. DROBNJAK said that 600 million jobs were needed to close the employment gap. Governments, the United Nations system, trade unions, civil society and the private sector all needed to step up efforts to make that a reality. The panellists would discuss how 600 million decent jobs could be created in the next decade while also promoting environmental sustainability.
Opening the discussion, Mr. VELSHI said creating jobs, prosperity and the stability that came with jobs and prosperity was the most intractable problem facing the international community. Achieving that goal alone would solve many of the other problems. Kicking things off, he said that politicians ran on creating jobs, but businesses maintained that it was not Government that created jobs. He asked Mr. Mora, who had originally come from the private sector to address that.
Mr. MORA said that Costa Rica had tripled its GDP over the last 20 years, but that unemployment had risen. Focus had been given to modern sectors linked to the global economy, but the internal framework for labour and consumer protections had remained the same for decades. The current Administration was aiming to reverse unemployment trends through a macroeconomic approach, stimulating entrepreneurship and creating a public-private partnership at the highest level to work out agreements. He emphasized the importance of upgrading the labour supply through education. The country was also focused on improving job quality, finding ways to facilitate small and medium-sized enterprises and making wages part of policy.
Addressing a question on the ability of the energy sector to create jobs when oil was at $50 a barrel, Ms. NADEAU agreed that some resource holders were left with a sharp decrease in revenues, which made it difficult for those Governments to balance budgets and support education and health care. At the same time, consumers were benefitting. Sharing some data on renewable resources, she said that their share in energy production was expected to double from the current 15 per cent. That would translate into an increase in renewable energy jobs. In fact, she said, between 2004 and 2010, total renewable energy employment had risen from 1.3 million to over 3.5 million. By 2030, it was anticipated that renewables would create 20 million jobs mostly in biomass energy, but also from solar and wind. She enumerated a host of job descriptions at all levels that would be needed, from installing facilities and quality control to decommissioning facilities. Where those jobs were located was the question. Two main triggers would determine that. Strong, solid, stable and predictable national policies and also markets were needed to create such jobs.
Responding to a question on the role of corporations in creating jobs, Mr. SUKHDEV noted that the private sector was the major employer. However, globally, the number of technology jobs was very small when compared to the 1 billion jobs in the agricultural sector, most in small farming, which produced half the food on the planet. Those small farms faced many risks, however, such as the effects of climate change. Corporations, however, were decimating those small farmers through industrializing agriculture in the interest of lower food prices, for one example. Small farm jobs must be made into better jobs. There were numerous ways of improving sustainable small-scale farming, through such measures as low tillage.
Mr. RAJAN said that the crux was to make sure that philosophy stayed ahead of policy and practice. The responsibility of industry was to recognize that it was part of the life around it and when one part of society was surviving at the expense of another, it was like a bird with only one wing. As an example from his own company, he said that schools for children had been created at the workplace where their mothers were working. Tata also shared its profits with its workers. Although 600 million jobs were needed, Tata was currently providing 600,000.
Ms. NADEAU alluded to the lack of access to energy for 1.2 billion people of the 7 billion on the planet, affecting mostly India and sub-Saharan Africa. Without energy, there was no health care or education. She stressed that renewable energy enabled access to energy in rural communities not connected to the grid. There was a hindrance and an opportunity. There was a lack of skilled workers to deploy those systems, but if Governments and the business community were willing to put a plan together to train the women who would benefit, it would both provide benefit and create jobs.
In response to a question on Costa Rica’s goal of achieving 100 per cent carbon neutrality, Mr. MORA noted that the country had been running for 83 consecutive days fully on renewable energy, including hydro, geothermal, wind and solar; 99.8 per cent of the population had access. The strategy had been achieved much earlier than expected. Green policies had also brought jobs, which were continuing to expand.
Responding to further questions, Ms. NADEAU noted that there was a mismatch between policymakers and the policies needed, as political cycles generally lasted four to five years, while energy cycles lasted more than 20. Thus, policies that needed to be long-range tended to be framed in the short term. She also said that fixing the gender gap would require supportive legislation and structures, such as providing rest rooms, childcare facilities and fighting cultural barriers.
Mr. SUKHDEV said that gender equality should largely be addressed through legislation, but that macro policies had to be reflected at the micro level. Most companies determined their performance solely on shareholder results, without taking into account the value of environmental degradation and social harm. Values must be placed on those externalities and should be part of determining a company’s true value. It was important to get performance reporting right. True performance was needed, not just marginal shareholder capital performance. He also spoke of the importance of taxing “the good” rather than “the bad”. As an example he noted that individual income was taxed although it created a benefit, while something like environmental degradation caused by a company was not.
Also participating in the discussion was Robert Shiller, Nobel Laureate and Professor of Economics at Yale University, and the representative of Germany.