Duncan Campbell Director for Policy Planning in Employment International Labour Organization. Policy coherence =

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1 Duncan Campbell Director for Policy Planning in Employment International Labour Organization Policy coherence = «the systematic promotion of mutually reinforcing policies across government departments and agencies creating synergies towards achieving the defined objective.» For present discussion, coherence equals integration equals coordination, etc.

2 Policy coherence for green jobs Requires coherent policy action on both the supply and demand sides of many markets, not just labour As one example, the unavailability of skills becomes a supply-side constraint which, in turn, delays the transition to a more environmentally sound economy Strategies for Green Economy Investments A Greener Economy with Familiar Occupations Representative Jobs Building Retrofitting Electricians, Heating/Air Conditioning Installers, Carpenters, Construction Equipment Operators, Roofers, Insulation Workers, Industrial Truck Drivers, Construction Managers, Building Inspectors Mass Transit Civil Engineers, Rail Track Layers, Electricians, Welders, Metal Fabricators, Engine Assemblers, Production Helpers, Bus Drivers, First-Line Transportation Supervisors, Dispatchers Energy-efficient Automobiles Computer Software Engineers, Electrical Engineers, Engineering Technicians, Welders, Transportation Equipment Painters, Metal Fabricators, Computer-Controlled Machine Operators, Engine Assemblers, Production Helpers, Operations Managers, Auto Mechanics Wind Power Environmental Engineers, Iron and Steel Workers, Millwrights, Sheet Metal Workers, Machinists, Electrical Equipment Assemblers, Construction Equipment Operators, Industrial Truck Drivers, Industrial Production Managers, First-Line Production Supervisors Solar Power Electrical Engineers, Electricians, Industrial Machinery Mechanics, Welders, Metal Fabricators, Electrical Equipment Assemblers, Construction Equipment Operators, Installation Helpers, Labourers, Construction Managers Cellulosic Biofuels Chemical Engineers, Chemists, Chemical Equipment Operators, Chemical Technicians, Mixing and Blending Machine Operators, Agricultural Workers, Industrial Truck Drivers, Farm Product Purchasers, Agricultural and Forestry Supervisors, Agricultural Inspectors Source: R. Pollin and J. Wicks-Lim, Job Opportunities for the Green Economy, Political Economy Research Institute, University of Massachusetts, Amherst, June 2008, p. 2.

3 Question One: if PC is such an obvious public good why are we only now talking about it? the «philological»answer reveals a distinction between «policy coherence»and «policy coherence for development». The latter is from mid-1990s, refers to aid effectiveness debates, donor coordination, and domestic policies of OECD and their effect on developing countries Complexity: proliferation of policy domains Erosionof discrete policy spheres with globalization, e.g. trade policy becomes employment policy, or without globalization, e.g. environmental policy becomes part of industrial, education, and labour policies Question Two: if PC is such an obvious public good, then why doesn t it just happen? A plethora of disciplinary approaches to the answer: Bounded rationality in economics Territory (turf protection) in economic anthropology Organization and inter-organization theory (e.g. bureaucracy, and cultural misunderstanding) Information asymmetries (i.e. different constituencies with different perceptions of self-interest) Governance incentives, e.g. policies for youth entrepreneurship in Sri Lanka

4 Distinguishing between intended and unintended policy incoherence Intended incoherence: the North favours development; trade leads to development; trade from developing countries is impeded by various barriers imposed by the North. (key issues here are (1) implied policy priority arising from budget constraint or, (2) from vested interests (hostage) Unintended incoherence: examples would include the «negative correlation»between neediest and beneficiaries of a successful Doha (showing policy sequencing), or the fate of isolated good policy, e.g. antidiscrimination PC, political systems, institutions Political leadership Mechanisms for policy coordination (e.g. ecosocs, inter-ministerial committees, [tripartism]) Parliamentary v. federal political systems PCD: tradition of income redistribution or market access Sheer incapacity

5 Sri Lanka Promotion of garment industry through tax holidays Resulting fiscal deficit crowding out (job-creating) private investment elsewhere Fiscal deficit meant no investment in rural infrastructure, thus no investment in labour-intensive agriculture Need to increase productivity in garments, meanwhile, facing global competition Subsidizing capital investment distortion of cost structure resulting in fewer jobs No obvious plan for economic diversification (70 %) in service sector A Tale of Glitches, Coherence, and ultimate Success

6 Air Pollution in Delhi Central Pollution Control Board estimates that, in 2000, 2000 tons of pollutants emitted by vehicular traffic daily in Delhi Faced with delays / reluctance to act by the Delhi Government, the Supreme Court of India orders specific, time-bound action in 1998 Ultimately, the main players will be: Delhi Government Indraprastha Gas Limited The automobile industry Transporters Ministry of Road Transport and Highways Ministry of Petroleum and Natural Gas Ministry of Environment and Forests Delhi Transportation Corporation

7 The Needs The supply of fuel and infrastructure (pipelines) The distribution of fuel from the pipelines to the service stations The cost of conversion / replacement The action of DTC The supplier of CNG engines Training mechanics for inspection/maintenance EACH A DIFFERENT GOV T AGENCY Some glitches along the way Unclear emissions regulations from MRTH for CNG vehicles, and missing regulations (e.g. inspection) leaving manufacturers and fleet operators in the dark CNG-kit installation only by «authorized» workshop (but this not defined) Believing SC order would not be implemented, MPNG did not organize supply of CNG to Delhi

8 A few more glitches A cleaner alternative to CNG (ultra-low sulfur diesel) could be developed but would take years Delay in issuing certification norms meant that DTC stopped converting buses Technical problems with the buses, e.g. overheating Delays in creating CNG filling stations, SC criticizes IGL Some successes «The key to the success was a legal obligation to use CNG» An Environmental Pollution (Prevention and control) Authority (EPCA) set up by MoEF to coordinate the various agency responses Fiscal incentives introduced for conversion «Mother/daughter»concept created to overcome pipeline infrastructure shortages

9 And, of course, the success There are no diesel buses in Delhi While air pollution still an issue, it has markedly declined and is unambiguously related to the CNG conversion There were (by 2006) over 50,000 CNGpowered vehicles in Delhi, and over 150 CNG service stations A few lessons learned A «polluter pays»principle funded implementation Need to involve all stakeholders in planning Need to get prices and incentives right Need to balance fuelling infrastructure with no. Of vehicles K cost of underused infrastructure not recoverable in fuel price If the price is right, owners will respond