address the concept of decent work and inadequate investment in education and training.

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1 46 th session of the Commission for Social Development Chairperson s Summary of the panel discussion on the Priority theme: Promoting full employment and decent work for all 6 February 2008 The panel discussion was chaired by Mr. Assane Diop, Executive Director of the Social Protection Sector, the International Labour Organization. The panelists included: Mr. Vladimir Špidla, Commissioner for Employment, Social Affairs and Equal Opportunities, European Commission; Ms. Sudha Pillai, Secretary, Ministry of Labour and Employment, Government of India; Mr. Daniel Funes de Rioja, Executive Vice-President of the International Organization of Employers and Employers Spokesperson in the ILO; Ms. Sanja Crnkovic-Pozaic, Director, CEPOR-SMEs and Entrepreneurship Policy Centre, Croatia; Ms. Gladys Branche, Sierra Leone Labour Congress. The Chair underscored the importance of full employment and decent work for all in the overall mandate of the Commission for Social Development. The success of the Copenhagen social development agenda depends on how successful countries promote the implementation of the full employment and decent work agenda as well as the implementation of the internationally agreed development goals, including the Millennium Development Goals. This would require the placement of decent work at the forefront of macroeconomic policies. It was also reiterated that social development should allow men and women to fulfill their capabilities as well as offer equal opportunities to persons with disabilities. There was also a need for stronger social protection systems given the need to protect the increasing numbers of the working poor, older people, and children. The importance of a minimum wage was stressed. The panelists pointed out that the strong economic performance did not result in higher quantity or better quality jobs and that decent work was yet to be placed at the forefront of national policy making. The global employment situation has been exacerbated by the unfair distribution of the benefits of globalization and resources; policy incoherence; the gender gap; lack of protection for the informal sector; State failure to understand and

2 address the concept of decent work and inadequate investment in education and training. Investing in decent work constituted both a commitment to fairness and justice, better economic performance, more effective public policy and better governance. It was noted that decent work improves efficiency and increases productivity and competitiveness and contributes to economic growth as well as improve the quality of life for all. In addition, employment and social protection should be seen as critical factors of production. The basic components of decent work, which encompasses employment creation, workers rights, an effective system of representation and dialogue, social protection and equal opportunities were highlighted. Good governance, social inclusion and skills training were among the key ways to ensure economic growth that creates jobs and lifts people out of poverty. Although decent work was a universal concept, it did not imply uniformity and its advancement has to take into account national contexts. In the case of Africa, it was pointed out that the decent work agenda was under threat because of efforts to undermine workers rights. Despite efforts to reduce poverty, many workers in Africa continue to face numerous challenges, including failing to provide decent livelihoods to themselves and their families. It was therefore imperative that the Millennium Development Goals and Poverty Reduction Strategy Papers should give the decent work agenda the priority it deserves. It was also important that African countries ratify and implement relevant ILO Conventions. It was also pointed out that African countries should not blindly support flexible labour markets. It would be harmful if weak nations promote free markets since they would not be in a position to compete with stronger free market economies. The framework for employment creation and accelerated growth should include transparent democracy and governance free from corruption; non-bureaucratic regulatory frameworks that stimulated innovation and promoted competition and respect for property rights; open trade and investment policies and pro-growth macroeconomic policies; investment in physical, productive and social infrastructure, including education and skills development, particularly for youth;; inclusive labour market policies ensuring sustainable social protection systems, culture of entrepreneurship and promoting sustainable enterprises and a climate of dialogue and cooperation. 2

3 A general consensus was that in order to advance full employment and decent work for all, macroeconomic polices should promote local level investment and economic and social policies should be integrated. In this respect, the experience of the European Union with its Lisbon Strategy, integrating economic, employment, social and environmental policies was highlighted. Such approach stipulated that employment and social policy were seen as beneficial factors helping to improve productivity, competitiveness and social cohesion. As a result of such policies concrete progress has been made in terms of job creation, quality of employment, equal opportunity and modernized social protection in the countries of the European Union. Panelists noted that current economic trends could further intensify labour market transformations and governments faced the challenge of remaining competitive in the global market. The policies stimulating growth and employment creation should adapt to changing realities. They should be designed to assist individuals in adapting to changing labour market conditions, help people affected by market shifts and ensure that they could be directed back into employment. Special attention should be paid to disadvantaged groups, including women, youth and persons with disabilities, and to ensure their full participation in the work force. Regarding policies for enterprise development in Eastern Europe, it was advisable to legalize existing informal activities, reducing the tax levied on new entrants to the labour markets, and introducing creeping tax rates after an initial grace period. Policies supporting small enterprises would contribute to the gradual formalization of the informal sector as well. In addition, legislative frameworks should aim at reducing segmentation in the labour market. Flexicurity combining flexibility, defined as the extent to which market forces determined labour market outcomes, and security characterized as the ability to retain employability in a changing economic market, was highlighted as a method of finding a socially acceptable balance between the needs of adaptable enterprises and a long-term development strategy based on human resources. With regards to social protection, the importance of strong social security systems for vulnerable groups, such as the elderly and youth had been emphasized. Such systems, forming part of a much needed global rebalancing would ease the consequences of a potential global slowdown. Stronger systems for minimal wage were needed as well, ensuring that the 3

4 lowest paid workers received the dividend of economic growth. Therefore, there was a need to come up with a basic global social floor. It was noted that inequality had a negative impact on economic performance and wherever there was a shortage of decent work, the standard of living and quality of life was lower. Half of the world s population had no social protection. In some countries, 80 to 90 percent of the workforce was in the informal economy, contributing up to 60 percent of local gross domestic product without having access to social protection. 5 in every 10 people had insecure jobs. Consequently, decent work with social security was a matter of fairness, and redistributive policies should be regarded as a productive investment. The European Union s experience proved that investment in human resources, improving health and education services, especially for young people and women contributed to productivity and boosted economic growth. Basic social protection was affordable, with ILO estimates of less than 2 percent of the world GDP to provide minimum social coverage for all poor people, and it should be seen as an investment in people and economic growth. Expanding of social protection to the informal sector was of vital importance as well. In the case of India, it was pointed out that social protection has been a central objective of the Government. However, social protection was still not comprehensive in its coverage. To improve the situation, current Indian legislation is focusing on including social security schemes and old-age pension plans. And to improve its national health insurance scheme which currently covers 300 million people, a comprehensive bill on providing social security, wages, insurance coverage for unorganized workers, and pension benefits was currently under parliamentary debate. Effective implementation of the broad policy framework for decent work requires social dialogue, partnerships and the ability to adapt to changing circumstances. In some regions trade unions were fragmented and employers associations were reluctant to set ethical standards. There was a relatively low capacity for dialogue with meaningful outcomes and social partners often focused on the formal sector, neglecting the private sector. Inclusive debate on employment and social policy at the national and international levels has been advocated. All stakeholders, including employers and workers organizations, trade unions and civil society should 4

5 be included in the tripartite decision-making process. In this context, principles guaranteeing freedom of association and freedom of expression enshrined in many national constitutional provisions, laws and regulations should be fully implemented. Governments and policy-makers must make use of fundamental ILO conventions, and other declarations aimed at creating full employment. Ratification of those conventions would remain theory until States ensured their full implementation. Trade unions and others social partners should identify areas of focus for increasing national and international dialogue. There must also be a monitoring process to determine good practices and the violation of it. In this context India s village-level social development commissions helped ensure that Government initiatives were actually implemented on the ground. On skills development, challenges in the education system were noted. It was necessary to keep up with the changing knowledge and skill requirements. Some countries favoured industrial training institutes and greater access to information and communication technology. The European Union supported life-long training to ensure that citizens were prepared to handle labour markets changes and to take advantage of new opportunities when they changed jobs throughout their working lives. 5