Connect with us

Economy

Private sector holds key to future employment growth in the Arab region

MD Staff

Published

on

The job-creating potential of the private sector is key to future employment growth in the Arab region, said ILO Regional Director for Arab States Ruba Jaradat at the 45rd Arab Labour Conference (ALO) in Cairo, Egypt.

“It is evident that our region, amidst protracted social and political unrest, and the continuing conflicts in some countries, is subject to ever more critical labour market and employment challenges,” said Jaradat, speaking during the conference’s opening session.

Jaradat noted that total unemployment in the Arab region remained high at 10.2 per cent in 2017 (almost double the global rate of 5.6 per cent), with more than 13 million individuals looking for a job. Youth are particularly disadvantaged with a 27.6 per cent unemployment rate among those aged 15-24, compared to a global average of 13 per cent.

Gender inequalities are also acute, with the female unemployment rate standing at 18.7 per cent, more than double the rate of males (8.2 per cent) and three times their unemployment rate globally. Vulnerable employment has also increased by 32 per cent in the Arab region between 2000 and 2017, constituting 26.5 per cent of total employment in 2017.

“High shares of public sector employment remain a problematic characteristic of the region’s labour markets, particularly amidst the recent oil price crisis. The share of employment in the public sector ranges from 14 per cent to an estimated 80 per cent, excluding expatriate workers,” Jaradat told delegates from 21 Arab states at the conference.

“Future employment growth in the region must come from unleashing the job-creating potential of the private sector. This, together with the expected growth in population over the next decade, and the expected impact of globalization, technology and other drivers of change, will indeed necessitate better, more inclusive policy development to promote structural transformation, job-rich growth and decent work for all,” she said.

On the sidelines of the conference, Jaradat met with League of Arab States Secretary-General Ahmed Aboul Gheit, Arab Labour Organization Director-General Fayez al-Muteiri, and with ministers of labour from Saudi Arabia, United Arab Emirates, Kuwait, Yemen, Iraq and the Occupied Palestinian Territory, as well as with regional worker and employer representatives from the region. She was accompanied by senior ILO specialists from the Arab States region.

This year, the annual event takes place under the auspices of Egypt’s President Abdel Fattah El-Sisi from 8-15 April. It brings together delegates from 21 member states to discuss labour issues and policy responses.

Key panel sessions in this year’s event focus on the ALO Director General’s report on “The dynamics of Arab labour markets: transitions and ways forward,” as well as on two technical reports on “The corporate social responsibility of private sector institutions” and “The role of productivity in promoting competitiveness and growth.”

Jaradat said the ILO noted, with great appreciation, the many advancements Arab countries have made in the world of work over the past year. In particular, she noted Iraq’s ratification of Convention No. 87 on Freedom of Association and Protection of the Right to Organise, and Lebanon’s imminent ratification of Convention No. 144 on Tripartite Consultation – as well as a number of important labour policy reforms across the region.

She added that the ILO Regional Office for Arab States (which covers countries in the Gulf and Levant) has also been hard at work over the past year to provide technical and advisory support to governments, workers and employers in the region.

Of the many examples she cited, Jaradat noted that through the Employment Intensive Infrastructure Programmes (EIIP) in Jordan and Lebanon, the ILO is facilitating the creation of employment opportunities for refugees and host communities. In Jordan alone, over 4,600 jobs were created. Out of all the workers employed, 13 per cent were women and 2 per cent were persons living with disabilities. The programme has seen the rehabilitation of 660 km of roads, and the maintenance of 8 km of terracing and 152 hectares of forestry areas, as well as environmental cleaning and improvement activities.

Jaradat also noted that the ILO is set to embark on projects with Syria and Yemen to fight the worst forms of child labour, including child involvement in armed conflict.

The ILO and ALO have a long history of cooperation in the Arab region, dating back over four decades, and the two agencies signed a Memorandum of Understanding in 2007.

Continue Reading
Comments

Economy

Côte d’Ivoire: Robust growth under the looming threat of climate change impacts

MD Staff

Published

on

According to the Economic Update for Côte d’Ivoire, published today, the short- and medium-term outlook for the Ivorian economy remains positive. The economy is expected to maintain a steady trajectory, with GDP growth of 7 to 7.5% in the coming years. Titled “So Tomorrow Never Dies: Côte d’Ivoire and Climate Change,” the report highlights the urgent need to implement measures to ensure that climate change impacts do not imperil this economic progress and plunge millions of Ivorians into poverty.

“The solid performance of the Ivorian economy, which registered growth of almost 8% in 2017, is essentially due to the agricultural sector, which experienced positive climate conditions. The economy also benefited from a period of calm after the political and social instability of the first half of 2017 and from more favorable conditions on international markets,” said Jacques Morisset, Program Leader for Côte d’Ivoire and Lead Author of the report. “The Government also successfully managed its accounts, with a lower-than-expected deficit of 4.2% of GDP, while continuing its ambitious investment policy, partly financed by a judicious debt policy on financial markets.

However, the report notes that private sector activity slowed in 2017 compared with 2016 and especially 2015, which may curb the pace of growth of the Ivorian economy in the coming years. Against the backdrop of fiscal adjustment projected for 2018 and 2019, it is critical that the private sector remain dynamic and become the main driver of growth. This is particularly important in light of the uncertainty associated with the upcoming elections in 2020, which could prompt investors to adopt a wait-and-see approach.

As economic growth in Côte d’Ivoire relies in part on use of its natural resource base, the authors of the report devote a chapter to the impact of climate change on the economy. They raise an alarming point: the stock of natural resources is believed to have diminished by 26% between 1990 and 2014. Several visible phenomena attest to this degradation, such as deforestation, the depletion of water reserves, and coastal erosion. According to the Intergovernmental Panel on Climate Change (IPCC), climate change could reduce GDP across Africa by 2% to 4% by 2040 and by 10% to 25% by 2100. For Côte d’Ivoire, this would correspond to a loss of some CFAF 380 billion to 770 billion in 2040.

This report sounds an alarm in order to spark a rapid and collective wake-up call,” said Pierre Laporte, World Bank Country Director for Côte d’Ivoire. “Combating climate change will require prompt decisions and must become a priority for the country to maintain accelerated and sustainable growth over time.”

The report pays special attention to coastal erosion and to the cocoa sector, which represents one third of the country’s exports and directly affects over 5 million people. With 566 km of coast, Côte d’Ivoire now boasts a coastal population of almost 7.5 million people, who produce close to 80% of the national GDP. Two thirds of this coast is affected by coastal erosion, with severe consequences for the communities and the country’s economy.

The Ivorian Government, which is already aware of this challenge and has prepared a strategy to confront it, must expedite its implementation. This would have the two-fold effect of developing a “green” economy and creating new jobs.

Continue Reading

Economy

A future of work based on sustainable production and employment

Simel Esim

Published

on

On the first Saturday of July each year, the international community celebrates the International Day of Cooperatives. This year’s theme, Sustainable consumption and production of goods and services is timely, as the ILO works towards a future of work that is based on sustainable production and employment models.

As head of the ILO’s Cooperative Unit, I have witnessed firsthand the positive impact of cooperatives’ commitment to sustainable consumption and production.

In Northern Sri Lanka, for instance, after years of civil war, I saw how cooperatives helped build the resilience of local communities.

A rapid assessment at the start of the ILO’s Local Empowerment through Economic Development project (LEED) indicated that cooperatives were the only “stable” structures present in Northern Sri Lanka before, during, and after the conflict. Since 2010, the project has been supporting agriculture and fishery cooperatives by securing fair trade certification for their products and helping them establish market links.

I’ve also listened to inspiring stories from other parts of the world of how cooperatives have joined forces to contribute to sustainable consumption, production and decent work – often through cooperative-to-cooperative trade.

Some of these stories were shared at a recent meeting in Geneva of cooperative and ethical trade movements.

We heard how Kenyan producer cooperatives’ coffee has found its way on the shelves of Coop Denmark and how biological pineapples from a Togolese youth cooperative are being sold in retail cooperatives across Italy. We heard how consumer cooperatives in East Asia have developed organic and ecolabel products, while educating their members about the working conditions of producers and workers, as well as on reducing food waste and plastic consumption. We also shared ILO experiences in supporting constituents in the field.

The emerging consensus from the meeting was that cooperative-to-cooperative trade can help lower the costs of trade, while ensuring fairer prices and better incomes for cooperative members and their communities. Opportunities exist not only in agricultural supply chains, but also in ready-made garments and other sectors.

Cooperatives at both ends of the supply chain have been joining forces to shorten value chains, improve product traceability and adopt environmentally-friendly practices. At the ILO we have been working with our constituents to improve the social and environmental footprint of cooperatives around the world.

As the ILO continues to promote a future of work that is based on sustainable production and employment models, a priority for us in the coming years is to facilitate the development of linkages between ILO constituents and cooperatives. The aim is to encourage joint action towards responsible production and consumption practices, the advancement of green and circular economies and the promotion of decent work across supply chains.

Source: ILO

Continue Reading

Economy

Mongolia’s Growth Prospects Remain Positive but More Efficient Public Investment Needed

MD Staff

Published

on

Mongolia’s economic performance has improved dramatically with GDP growth increasing from 1.2 percent in 2016 to 5.1 percent in 2017 and 6.1 percent in the first quarter of 2018. While short- and medium-term economic prospects remain positive, Mongolia faces core structural vulnerabilities that hinder its potential, according to Mongolia Economic Update, the latest World Bank report on Mongolia’s economy launched here today. The report also highlights the importance of improving efficiency of its public investment programs given extensive consequences from the overambitious and unrealistic investment programs implemented in the past.

“Last year was a good year for Mongolia with favorable commodities prices and the successful implementation of the government’s economic recovery program,” said Dr. Jean-Pascal N. Nganou, World Bank Senior Economist for Mongolia and Team Leader of the report. “This resulted in improved fiscal and external balances, triggering a slight decline of the country’s public debt.

The recovery is expected to accelerate with a GDP growth rate averaging more than 6 percent between 2019 and 2020, driven by large foreign direct investments in mining. Other than agriculture, which was severely affected by harsh weather conditions during the winter, most major sectors including manufacturing, trade, and transport are expected to expand significantly. On the back of increasing exports and higher commodity prices, economic growth will continue to have a strong positive impact on government revenue, contributing to the reduction of the fiscal deficit.

The unemployment rate dropped to 7.3 percent in the last quarter of 2017, compared to 8.6 percent a year earlier. Still, it increased to 9.7 percent in the first quarter of this year, reflecting Mongolia’s highly seasonal employment patterns due to difficult working conditions in the winter, especially in construction, agriculture, and mining.

The report highlights possible short- and medium-term risks including political risks, regional instability, climate shocks, and natural disasters. The most critical risk identified is a sudden relaxation of the government’s commitment to full implementation of its economic adjustment program supported by development partners.

In addition, the economy remains vulnerable to fluctuations in global commodity prices and a productivity gap. The best long-term protection against these two vulnerabilities is the diversification of the Mongolian economy.

To create a strong buffer against economic vulnerabilities, the government and donors should give a high priority to economic diversification that helps counter the ups and downs of the mining sector. Investing in human capital and strengthening the country’s institutions are the best way to support diversification, together with sound investments in crucial infrastructure,” said James Anderson, World Bank Country Manager for Mongolia.

The report takes a closer look at public investment programs implemented over the past five years, which surged until 2015, contributing to large increases in public finance deficits and the public debt. Mongolia needs to review and reshape its public investment policies and decision-making processes to improve efficiency of public spending, including clear project selection and prioritization criteria, as well as proper maintenance of existing assets.

Continue Reading

Latest

Intelligence45 mins ago

Russian Hackers: The shadowy world of US and Gulf hacks just got murkier

The covert Qatar-United Arab Emirates cyberwar that helped spark the 13-month-old Gulf crisis that pits a Saudi-United Arab Emirates-led alliance...

Middle East2 hours ago

Risk of Decreased Relief Funding for Palestinian Refugees

The United Nations Relief and Works Agency (UNRWA) recognizes the current United States Department of State’s Secretary of State Rex...

Americas3 hours ago

Flip-Flops and Foreign Policy: How American Tourist Behavior Hinders U.S. National Security

Dear American tourist, When you are in great European cathedrals, palaces, and important historical sites, would it be possible for...

South Asia3 hours ago

India Ranked at Top as the Most Dangerous Country for Women

Thomson Reuters Foundation in its recent survey released on June 26, 2018 ranked India as the most dangerous country in...

Middle East4 hours ago

Iranian Terror Plot Motivated by Threat of Regime Change

Last month, Belgian authorities arrested a married couple of Iranian origin after it was discovered that they were in possession...

Newsdesk6 hours ago

New Satellite Data Reveals Progress: Global Gas Flaring Declined in 2017

New satellite data released today shows a significant decline in gas flaring at oil production sites around the world in...

Energy7 hours ago

Global energy investment in 2017 fails to keep up with energy security and sustainability goals

The electricity sector attracted the largest share of energy investments in 2017, sustained by robust spending on grids, exceeding the...

Trending

Copyright © 2018 Modern Diplomacy