Connect with us

Reports

Peru should help more young vulnerable people into work

Avatar photo

Published

on

oecdfront

Peru’s remarkable economic growth since the 2000s and policies targeting the most vulnerable young people have helped boost the youth employment rate. Peru should now focus on improving job opportunities for low-skilled youth, young women and indigenous and Afro-Peruvian youth, according to a new OECD report.

Investing in Youth: Peru says that the youth employment rate today is higher than both the average of OECD countries and many Latin American countries. But many challenges remain.

Income inequality is high and poverty has risen recently. A large share of the youth workforce with a lack of the right skills and a sizeable informal sector hinder the transition to a more productive, better-paid and better quality jobs for Peruvian youth.

Young people with tertiary education face an even higher risk of unemployment than their less-educated peers. In 2017 their unemployment rate was 14.6%, compared to 8.7% for people with a secondary education degree and 7.3% for unskilled youth.

 The situation of limited employment opportunities for many youth also translates into low levels of well-being. Close to 34% of Peruvian youth affirm that they find it difficult, or very difficult, to get by with their present household income. This compares to an OECD average of about 20% and places Peruvian youth towards the worse-off end of Latin American and Caribbean countries.

Today’s high proportion and number of youth in the Peruvian working age population is set to decline in the near future. Without action, the opportunities to benefit from the growth dividend associated with the demographic bonus will fade away, according to the report.

To help more young people into work, the OECD recommends that Peru:

Strengthen social dialogue with unions, civil society and employers in order to improve labour market policies that reduce the dualism of the labour market between permanent and temporary contracts and encourage employers to hire young workers.

Ensure that business incentives, such as tax breaks for small firms, do not discourage them from expanding and hiring young workers.

Expand and increase the efficiency of the public employment services (PES) by strengthening recruitment and training programmes for caseworkers.

Continue efforts to increase the enrolment and learning performance of students from disadvantaged backgrounds.

Engage in ambitious policies to tackle the vulnerability of young Peruvian women.

Combat discrimination against indigenous and Afro-Peruvian youth; and

Boost job opportunities for rural indigenous youth by implementing a nationally co-ordinated strategy to help rural populations engage in new and more profitable entrepreneurial activities.

Continue Reading
Comments

Reports

Deeper Participation in Global Value Chains Will Strengthen Recovery of the Philippine Economy

Avatar photo

Published

on

Post-pandemic, the Philippines has more opportunities to deepen its participation in global value chains (GVCs) especially in business clusters like industrial, manufacturing, and transportation; technology, media, and telecommunications; and health and life sciences. Addressing constraints to participation in these GVCs will boost the recovery, resilience, and competitiveness of the Philippine economy.

A new World Bank report – A New Dawn for Global Value Chain Participation in the Philippines – launched today said there are global trends favoring the country’s chances to succeed in GVCs, among them the increasing use of automation and artificial intelligence, the rise of services in manufacturing demanding higher labor skill, and the efforts by companies during the COVID-19 pandemic to diversify suppliers.

GVCs are international production sharing arrangements where manufacturing and assembly of products take place in multiple countries, with each step in the process adding value to the end-product. Through GVCs, countries trade more than products; they trade know-how and collaborate, boosting growth and creating jobs within their borders.

“Greater participation in global value chains can be a powerful driver for productivity and growth, enabling countries to leap-frog their development process as seen in many countries in East Asia,” said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines and Thailand. “Countries that embrace GVCs are able to leverage their strengths in specific tasks and roles in manufacturing and services and export at scale, enabling them to sustain growth, create more jobs, and reduce poverty faster.”

The report says that the Philippines, for instance, can capture bigger shares in the electronics and electrical parts and components GVCs by attracting foreign investments in design capacity so that more value added is captured and manufacturing is retained and expanded in the country. There are also bigger opportunities for business process outsourcing (BPO) companies to move up the ladder by providing value added services like analytics. This can be achieved through a 3-pronged strategy:

  • Strategic reorientation:  Mobilize key stakeholders to build opportunities from accelerated digitalization, automation and robotization for the electronics and BPO sectors for which the Philippines is known for.
  • Bundling: Capitalize complementarities across clusters; diversify electronic and electrical intermediate goods into electric vehicles, medical equipment, and others; add analytics to the voice service sector; and expand the voice service sector into telemedicine, pharmacovigilance, and patient care services.
  • Sequencing: Upgrade BPO to KPO (Knowledge Process Outsourcing) as a key steppingstone to an integrated telecommunication cluster; anchor health and life sciences businesses on telehealth and pharmaceutical multinational companies while further developing the life science subsector; and expand intermediate goods in the three industrial, manufacturing, and transportation subsectors (electronics, automotive, aerospace) which have increasing commonalities.

According to the report, the country needs to overcome some “structural constraints” to take advantage of on-going trends in GVCs. These constraints include restrictions on foreign direct investments (FDI) in various sectors of the economy and scarcity of advanced science, technology, engineering, mathematical skills, among others.

To attract FDIs, the Philippines passed amendments to the Foreign Investments Act, easing restrictions to foreign participation in the economy; Retail Trade Liberalization Act lowering the minimum paid-in capital requirement for foreign retailers, and the Public Service Act opening selected industries such as telecommunications, airline, maritime, and rail transport to foreign investments; among other reforms.

“Timely implementation of these legislations is essential for the Philippines to attract investors looking for alternative production sites as transnational companies adjust to the challenges posed by pandemic,” said Souleymane Coulibaly, Lead Economist and Program Leader for Equitable Growth, Finance, and Institutions Practice Group for Brunei, Malaysia and the Philippines.

Given fiscal space constraints, the report says that partnership with the private sector may be needed to raise the financing required to fill the country’s infrastructure gap, focusing on connectivity – digital as well as physical – and secure access to a competitive and clean energy supply.

To boost advanced skills in the Philippines, the government needs to accelerate its innovation strategy, according to the study. In 2019, Congress enacted Republic Act no. 11293 or Philippine Innovation Act to support education, training, and research and development to foster innovation, internationalization, and digitalization. The implementation rules and regulations were published in February 2020. Accelerating the implementation of this strategy could help to create a Silicon Valley type of environment in which cities and clusters of cities host engineers, technicians, doctors, and nurses working in various business clusters in the country.

Continue Reading

Reports

Ten years of Afghan economic growth, reversed in just 12 months

Avatar photo

Published

on

photo © UNICEF Afghanistan

A year on from the Taliban takeover in Kabul, Afghanistan is gripped by “cascading crises”, including a crippled economy that humanitarian aid alone cannot address, according to a new report from the UN Development Programme (UNDP) on Wednesday.It says that the already-declining regular economy, as opposed to the black market, lost nearly $5 billion after August 2021 and is reversing “in 12 months what had taken 10 years to accumulate.”

Soaring prices 

The cost of a basket of essentials needed to avoid food poverty has meanwhile risen 35 percent, forcing poorer households to go deeper into debt or sell off assets, just to survive.

Nearly 700,000 jobs have vanished, said UNDP, further threatening a population reeling from impacts of the COVID-19 pandemic, conflict, drought, and war in Ukraine.

“The Afghan people have been relentlessly subjected to extremely difficult circumstances. They have survived numerous challenges in the last 40 years and shown enormous resilience”, the report states, officially entitled, One Year in Review: Afghanistan Since August 2021.

“Yet the last 12 months have brought cascading crises: a humanitarian emergency; massive economic contraction; and the crippling of its banking and financial systems in addition to denying access to secondary education to girls and the restrictions on women’s mobility and participation in the economy”.

‘Strong response’ by UN

The head of UNDP, Achim Steiner, praised the UN’s “strong, coordinated response to the crisis” saying it proved critical in averting a catastrophe last winter.

“Building upon what worked last year including tailored efforts across multiple sectors to improve the livelihoods of more than half a million people, there is a pressing need to support further measures to prevent a deeper crisis.”

“We need to help Afghans cope with the coming winter including through our ABADEI programme which aims to support two million people with livelihood and job opportunities over the next two years – with a focus on particularly vulnerable groups such as women entrepreneurs and young people.”

Expanding connectivity

The report paints a bleak fiscal picture of the country, dating back more than a decade before the Taliban ascendency.

With GDP in steady decline since 2008, Afghanistan had come to rely on international aid to sustain its economy, which accounted for a staggering 75 percent of total Government spending and nearly 40 percent of GDP at the time of transition. But foreign donors largely suspended aid after the transition, UNDP notes.

Without support from outside, Afghanistan must now rely on limited domestic revenue from agriculture and coal exports.

Authorities have sought to address revenue shortfalls by cracking down on corruption in key revenue streams, such as customs, and by reaching out to the private sector and foreign investors.

“Two decades of heavy dependence on international aid and imports, a lack of industrialization and competitiveness, and limited mobility and connectivity among regions, among other factors, have hindered Afghanistan’s forward momentum,” the report says.

Cost of excluding women

UNDP analysis forecasts that restricting women from working can result in an economic loss of up to $1 billion – or up to five percent of the country’s GDP.

“The rights of women and girls are critical for the future of Afghanistan,” said UNDP Asia-Pacific Director Kanni Wignaraja. “It starts with education and continues with equal opportunity when it comes to employment and pay.

“UNDP made the support to women-owned businesses front and center of its aid activities: we provided support to 34,000 women-owned small businesses. Our goal is to reach 50,000 women-owned business by the end of this year.

UNDP Resident Representative Abdallah Al Dardari said they was grateful for the $300 million in funding provided for the programme’s work on livelihoods as part of the overall crisis response, “but much more is needed for economic recovery”.

“Afghans are running out of time and resources. Afghanistan needs support from the international community to bring back to life local markets and small businesses which are the backbone of Afghanistan’s economy.”

Continue Reading

Reports

Commitment to ESG Reporting is Driving Change within Global Corporations

Avatar photo

Published

on

New case studies from the World Economic Forum show how comprehensive environmental, social and corporate governance (ESG) reporting has started to drive corporate transformation around the world, particularly in sustainability efforts and company culture.

Based on case studies from companies reporting on the Stakeholder Capitalism Metrics, the white paper found examples of specific strategy and operations changes as a result. These include initiatives such as new approaches to water management in real estate and implementing biodiversity strategies and targets.

The case studies also indicate that despite some progress, companies are still struggling with competing and disparate ESG frameworks around the world. As regulators begin to roll out mandatory ESG reporting across regions, alignment will be key to ensuring that the clarity and efficacy of ESG reporting continues to improve globally.

We’re happy that support continues to grow for this set of metrics even in the face of geopolitical challenges, the lingering global pandemic and economic disruptions of the past two years,” said Emily Bayley, Head of Private Sector Engagement, ESG, World Economic Forum. “As this growth continues and jurisdictions transition from voluntary to mandatory sustainability reporting standards, we hope these learnings can provide valuable insights for companies that are just getting started on sustainability reporting and those that have been doing it for years.”

ESG-Driven Corporate Impacts

The Stakeholder Capitalism Metrics Initiative case studies engaged a global set of companies to gather how, and if, their ESG reporting has informed corporate transformation both internally and externally.

Examples of these transformations include:

Ecopetrol

Stakeholders told Ecopetrol their report was too long – the Forum’s core metrics helped the company focus on reporting topics that are most material and will generate value.

HEINEKEN

The metrics go beyond ESG to capture commercial metrics on employment, economic contribution, investment and tax. This delivers “an annual dashboard of comparable data on both sustainability and prosperity that will provide us with a snapshot of how healthy our company is”.

JLL

The core metric on water consumption and withdrawal in water-stressed areas led the company to encourage its teams and clients to agree water management plans and targets. It may even influence where the company rents office space in the future.

Philips

Accurate reporting on the environmental and social impacts of its operations. For example, the metric on resource circularity points customers towards the most impactful products on the market and drives the company’s innovation agenda to design more sustainable solutions.

SABIC

Reporting on the Forum’s metrics has increased the value of transparency within the company, leading to conversations and progress on difficult issues.

Schneider Electric

The metric on land use and ecological sensitivity contributed to Schneider’s new approach to biodiversity, as it adapted its reporting and asked all sites to set specific biodiversity action plans.

ESG Regulatory Landscape

While progress has been made on the creation and implementation of meaningful and effective ESG disclosures globally, concerns remain about the disparate nature of the competing and complex ESG reporting mechanisms that exist today.

There are also concerns that as reporting becomes mandated there could be less transparency because people will not want to disclose more than they have to. As mandated ESG reporting becomes more widespread, both regulators and internal advocates should ensure corporations understand the full value of transparency on sustainability and other ESG issues.

Addressing this issue is particularly important as regulators in different regions begin to roll out their mandatory reporting requirements. Focus on a common set of comprehensive and material metrics will be important for both the efficacy and feasibility of ESG reporting in the coming months. As much as possible, the European Union, the US Securities and Exchange Commission (SEC) and the International Financial Reporting Standards (IFRS) Foundation should align their metrics to ensure companies are able to implement effective ESG reporting globally.

Stakeholder Capitalism Metrics Initiative

The World Economic Forum and the coalition of companies adopting the Stakeholder Capitalism Metrics, engaged with the preparatory working group and are continuing the dialogue with the International Sustainability Standards Board (ISSB) technical teams under the IFRS Foundation as they go through the standard-setting process. The metrics are expected to form part of the ISSB “exposure draft” next year on cross-thematic disclosures and metrics.

Announced at the World Economic Forum Sustainable Development Impact Meetings 2022, these case studies build on the earlier report to showcase progress on the commitment made by companies at the Annual Meeting in 2020. Since then, 186 global companies, with a combined market capitalization of over $6.5 trillion, have adopted the Stakeholder Capitalism Metrics. Of these, 126 companies have disclosed against the metrics in their mainstream reports for either one or two years.

Continue Reading

Publications

Latest

Africa1 hour ago

Mozambique Marks Five Years of Extreme Violence  in Cabo Delgado

Mozambique marks five years since extreme violence erupted in northern Mozambique’s Cabo Delgado province, forcing nearly 1 million people to...

Tech News3 hours ago

Solutions to Strengthen Digital Infrastructure for Learning in India

As part of its Education 4.0 India initiative, the World Economic Forum has launched a new Education 4.0 India Report...

Reports5 hours ago

Deeper Participation in Global Value Chains Will Strengthen Recovery of the Philippine Economy

Post-pandemic, the Philippines has more opportunities to deepen its participation in global value chains (GVCs) especially in business clusters like...

Finance7 hours ago

Pakistan’s Economy Slows Down While Inflation Rises Amid Catastrophic Floods

Pakistan’s economy is expected to grow by only 2 percent in the current fiscal year ending June 2023. According to...

World News9 hours ago

First EU TalentOn brings science to life in competition to solve global challenges

By  HORIZON STAFF Criss-crossed by a network of canals, the city of Leiden (pop. 120 000) is just 16km north of...

Environment9 hours ago

New UN report urges Europe to step-up action over triple environmental crisis

A new UN report presented on Wednesday to the Organization’s highest pan-European environmental policy body, covering 54 countries, is calling...

Health & Wellness9 hours ago

WHO issues warning on Indian cough syrup linked to 66 Gambian child deaths

The World Health Organization (WHO) has warned that a deadly batch of cough mixture connected to the deaths of dozens...

Trending