S ince the eruption of the fi nancial crisis in 2008 much of the global policy debate has focused on advanced economies and their ability to cope with the impacts of the crisis. During this period, a major policy shift has taken place in developing countries that has oft en gone unnoticed. Notably, in the face of the slowdown of their exports to advanced economies, developing countries have been confronted with the need to rebalance their economies and fi nd new sources of economic growth and job creation. Th is report draws out the many lessons that can be learned from this policy shift . First and foremost, it shows the considerable policy innovation among the over 140 emerging economies and low-income countries which are examined. Th e measures range from employment guarantee schemes to cash benefi ts for vulnerable groups and policies to promote formal enterprises. Some of these are being replicated throughout the developing world and have even had some attraction for a number of the advanced economies most aff ected by the fi nancial crisis. Second, a key finding emerging from the report is that good quality jobs matter for development. While it has long been argued that developing countries should concentrate eff orts on trade and investment liberalisation and infrastructure spending, supported by external aid if needed, evidence presented in the report shows that such policies will not yield development unless accompanied by dedicated eff orts to boost employment and decent work opportunities and tackle working poverty. In countries where it was implemented, such a policy shift not only helped development but also played a counter-cyclical role that helped attenuate the impacts of the fi nancial crisis. Th ird, governments in developing countries have gained confi dence and therefore policy space. Th ey have realised that there is no one size fi ts all solution to their problems and that remedies that used to be advocated (though not always applied)
Publications of the International Labour Office enjoy copyright under Protocol of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH- Geneva , Switzerland, or by email: pubdroit@ilo.org. e International Labour Office welcomes such applications.
Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country.
World of Work Report : Developing with jobs / International Labour Office. OE FE SFW mGeneva: ILO,
ISBN ----(print) ISBN ----(web pdf) ISSN - (print) ISSN - (web pdf)
International Labour Office
employment / unemployment / income distribution / minimum wage / employment policy / economic development / social implication / international migration / trend / projection / developed countries / developing countries
..
ILO Cataloguing in Publication Data
e designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers.
e responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them.
Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval.
ILO publications and electronic products can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH- Geneva , Switz-erland. Catalogues or lists of new publications are available free of charge from the above address, or by email: pubvente@ilo.org
Visit our website: www.ilo.org/publns
This publication was produced by the Document and Publications Production, Printing and Distribution Branch (PRODOC) of the ILO. Graphic and typographic design, layout and composition, printing, electronic publishing and distribution. PRODOC endeavours to use paper sourced from forests managed in an environmentally sustainable and socially responsible manner. Code: ALI-WEI-ATA
Preface
Guy Ryder ILO Director-General
ince the eruption of the financial crisis in much of the global policy debate S has focused on advanced economies and their ability to cope with the impacts of the crisis. During this period, a major policy shiſt has taken place in developing countries that has oſten gone unnoticed. Notably, in the face of the slowdown of their exports to advanced economies, developing countries have been confronted with the need to rebalance their economies and find new sources of economic growth and job creation. is report draws out the many lessons that can be learned from this policy shiſt. First and foremost, it shows the considerable policy innovation among the over emerging economies and low-income countries which are examined. e measures range from employment guarantee schemes to cash benefits for vulner-able groups and policies to promote formal enterprises. Some of these are being replicated throughout the developing world and have even had some attraction for a number of the advanced economies most affected by the financial crisis. Second, a key finding emerging from the report is that good quality jobs matter for development. While it has long been argued that developing coun-tries should concentrate efforts on trade and investment liberalisation and infra-structure spending, supported by external aid if needed, evidence presented in the report shows that such policies will not yield development unless accompanied by dedicated efforts to boost employment and decent work opportunities and tackle working poverty. In countries where it was implemented, such a policy shiſt not only helped development but also played a counter-cyclical role that helped atten-uate the impacts of the financial crisis. ird, governments in developing countries have gained confidence and there-fore policy space. ey have realised that there is no one size fits all solution to their problems and that remedies that used to be advocated (though not always applied) in industrialised countries are not necessarily what is required in a developing country context. Renewed interest among developing countries in well-designed employment regulation, minimum wages and social protection illustrate the point. At the same time, huge challenges persist. Rising youth unemployment, including among new graduates, stubbornly high employment informality and significant income inequalities require urgent policy attention. In too many devel-oping countries, including some emerging economies that have significant insti-tutional capacity, core labour standards are not properly enforced. ere are no independent trade unions in some countries, and employer organisations cannot operate effectively in other parts of the world. In sum, “Developing with Jobs” highlights the relevance of the ILO’s man-date, values and policy tools. It also demonstrates clearly why decent work and social protection should be central goals in the post- development agenda.
v
Acknowledgements
Who are the authors of World of Work Report 2014?
●Torres (Executive Summary) Raymond ● Steven Kapsos (Chapter ) ● Moazam Mahmood, Woori Lee, Mariano Mamertino, Catherine Saget, Clément Malgouyres and Marina Giovanzana (Chapter ) ●Mahmood, Woori Lee, Mariano Mamertino, Ekkehard Ernst, Moazam Christian Viegelahn, Evangelia Bourmpoula and Marina Giovanzana (Chapter ) ● Moazam Mahmood, Woori Lee, Mariano Mamertino, Catherine Saget, Clément Malgouyres, Christian Viegelahn, Shailaja Fennell and Marina Giovanzana (Chapter ) ●Torres, Ha-Joon Chang, Antonio Andreoni, Steven Kapsos, Raymond Eddy Lee, Irmgard Nübler, Marialaura Fino, Ming Leong Kuan, Sophia Latsos and Daniel Sexton (Chapter ). ● Sangheon Lee, Mariya Aleksynska, Uma Amara Rani, Florence Bonnet, Colin Fenwick, Mark Lansky, Mario Macis and Paola Monti (Chapter ) ● Florence Bonnet and Christian Viegelahn (Chapter ) ●Charpe, Sangheon Lee, Daniela Arias and Slim Bridji (Chapter ) Matthieu ●Khatiwada and Brenda Samaniego (Chapter ) Sameer e report was coordinated by the Director of the ILO Research Department, Raymond Torres, and Deputy Director Moazam Mahmood. Steven Tobin supplied cross-cutting inputs and Judy Rafferty was production coordinator for the project.
We are grateful to the ILO Deputy Director-General for Policy, Sandra Polaski, for her guidance and stimulating comments. Excellent feedback on first draſts of the report was provided by Khalid Malik, Director of the Human Development Report Office of UNDP, and Pierella Paci, Lead Economist Poverty Reduction and Economic Management Network, World Bank. Professors Ha-Joon Chang, Antonio Andreoni, Jayati Ghosh, Nadeem ul Haq, James Howard, Dic Lo, Terry McKinley, Carlos Oya, Saumya Premchander and Stephanie Trinci prepared background material for some of the chapters.
ILO Regional Offices for Africa, Arab States, Asia, Europe and Central Asia, and Latin America and the Caribbean gave comments and inputs, notably on their respective regions. Helpful feedback and numerous draſting suggestions were also received from other ILO colleagues, including Patrick Belser, Janine Berg, Evangelia Bourmpoula, Duncan Campbell, Annette-Marie Ching, Ekkehard Ernst, Veronica Escudero, Colin Fenwick, Marialaura Fino, Chang-Hee Lee, Michelle Leighton, Susan Hayter, Iyanatul Islam, Stefan Kühn, Christiane Kuptsch, Elva Mourelo Lopez, John Myers, Irmgard Nübler, Aurelio Parisotto, Anne Posthuma, Raphaël Peels, Catherine Saget, Helmut Schwarzer, Steven Tobin, Manuela Tomei, Alette van Leur and Christian Viegelahn. Finally, Peter Poschen provided a timely contribution to Chapter .