Employment

COVID-19 in Latin America: Promoting entrepreneurship and reducing social vulnerabilities

Development Matters Covid-19, Employment, Human Development, Latin America and the Caribbean, Social Protection , , , , , , , , ,

By Jorge Arbache, Private Sector Vice-President, Development Bank of Latin America (CAF)

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

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Vendor in Quito, Ecuador. Photo: teranbryan_ecu/Shutterstock

Statistics show that economic growth in Latin America is highly volatile, with periods of acceleration and collapse. This dynamic hides perverse implications. The combination of low growth persistence with high-growth volatility is associated with greater risk aversion, which in turn encourages financial speculation and firms to invest in lower risk, but also lower social return projects. Additionally, poverty and other social indicators are also very sensitive to the harmful combination of short growth spells and high volatility. Continue reading →

COVID-19 and labour markets in Latin America: How to repair the damage?

Development Matters Covid-19, Employment, Latin America and the Caribbean , , , ,

By José Manuel Salazar Xirinachs, Former Regional Director of the International Labour Organisation (ILO) for Latin America and the Caribbean, and former Minister of Foreign Trade of Costa Rica

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

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Lima, Peru – April 7, 2020. Photo: Shutterstock

The damage of the COVID-19 pandemic and the ensuing global lockdown crisis will be devastating, causing the worst disruption to labour markets in Latin America since the Great Depression. Up to 43 million people – probably more – could be unemployed in 2020. Tragically, the state of labour markets in the region was bad even before the crisis. Repairing the damage while addressing past structural legacies is possible, but it will be slow and challenging, and will require something most countries in the region have not done well in the past: a massive focus on microeconomic policies for accelerated productive transformation, and technological and human talent development.

The damage has only just begun and is still evolving, but already looks severe. The Economic Commission for Latin America and the Caribbean (ECLAC) estimates a contraction for the region of -5.3%, the IMF of -5.2%, and the World Bank of -4.6%. All projections now point to severe recessions in all countries in the region. Continue reading →

From Social Distancing to Social Solidarity: Gig economy and the Covid-19

Development Matters Covid-19, Employment , , ,

By Funda Ustek-Spilda,  Mark Graham, Alessio Bertolini, Srujana Katta, Fabian Ferrari and Kelle Howson – A coalition of researchers at Fairwork – an organisation which studies the work practices and working conditions in the emerging gig economy. Fairwork is based at the Oxford Internet Institute.

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

gig-econoy-covid19Social distancing and self-isolation are the policies du jour. At this point, an estimated 1.7 billion people have been asked to remain at home by their governments, whether through a full lock-down or similar measures. As people are required to self-isolate and minimise social contact, using the internet and online platforms has become the safest way to access necessary goods and services. It is therefore not surprising that “gig workers” – workers that digital platforms hire on a per-service (“gig”) basis – have been identified as “key workers” in the fight against Covid-19, be it delivering household necessities or performing services, such as stocking shelves in supermarkets or caring for the elderly or disabled.

Nevertheless, due to the nature of their jobs, gig workers have been identified as the highest risk group as they cannot always ensure keeping a 2 m social distance from their customers. Also, our interviews show that many gig workers live hand to mouth, and they just cannot afford to take time off, whether there is a public health crisis or not. Moreover, some workers have leases and other upfront payments that they have committed to make to the platforms they work for, and they are simply unable to hold off work until they raise what they owe. It is worth noting that the gig economy also relies on workers in developing countries where overall most workers are informal and very often lack safety nets and other forms of protection. In brief, Covid-19 has brought to light a major inequality in the way platform economies are set up: gig workers provide for the key needs of society, yet they do not have access to fair working conditions. Continue reading →

The food economy can create more jobs for West African youth

Development Matters Africa, Data, Employment, Food security, Gender, Women and Girls, Human Development, Infrastructure, Policy, Private Sector, Trade, Youth , , , , , , , ,

By Léopold Ghins and Koffi Zougbédé, OECD Sahel and West Africa Club Secretariat 

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Muhammad Sanyang, General Manager of MBK Farms, Banjul, Gambia.
© SWAC/OECD

Youth employment and job creation loom high on development agendas in West Africa. The issue is also a priority at the continental and international levels: decent work and youth empowerment are priority areas within the African Union’s Agenda 2063, and ‘youth and jobs in the Sahel’ will figure prominently amongst talks at the G7 Summit which begins this Saturday in Biarritz.

Such policy focus is necessary in view of the demographic realities in the region. Although unemployment is low overall, informality remains prevalent, and growing numbers of young people struggle to access attractive training or sources of income. West African economies need to create more and better jobs. Yet, from a policy perspective, how to support decent and inclusive job creation is not always clear. Trade-offs in public resource allocations across sectors and information gaps abound.

In this context, what and where are the opportunities for policymakers willing to address the challenge of decent job creation? Continue reading →

Migration and Africa: Driving better policy choices by changing the conversation

Development Matters Africa, Migration, Policy , , ,

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By Faten Aggad1 Non-resident Business Associate and International Consultant, Maendeleo Group, Cape Town, South Africa

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

 

shutterstock_699139378The conversation needs to change when it comes to migration and Africa, replacing the narrative about an exodus out of the continent to one about people moving to other countries within the continent. The difference matters.

In its most recent round of surveys in nine African countries, the Afrobarometer revealed that 64% of Africans do not wish to emigrate. Of the remaining 37% who have considered leaving their countries, almost half would like to relocate to another country in their immediate region (37%) or to other parts of Africa (10%). Only 20% would consider Europe as a destination should they actually emigrate. Others opt for North America and Asia.

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Turning a commitment into actions

Development Matters Human Development, SDGs, Youth , , , , , , ,

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By Mario Cerutti, Chief Institutional Relations & Sustainability Officer, Lavazza Group

To learn more about countries’ strategies for economic transformation, follow the 10th  Plenary Meeting and High-Level Meeting of the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development, in Paris, France on 27-28 June 2018.

logo TOward2030At the beginning of 2017, Lavazza launched ‘’Goal Zero’’ – a call to collective action amongst our many stakeholders to pursue the 17 Global Goals of Agenda 2030 for Sustainable Development. The company decided that co-operation, instead of going it alone, is fundamental for any significant results. Still, we faced the question of how to engage different stakeholders in one all-encompassing plan. For Lavazza, answering this means engaging our different stakeholders – employees, youth, suppliers and the surrounding community – using tailored communications tools. We believe that only a strong commitment originating from within Lavazza can, in turn, fuel external communications. So, here’s how we are proceeding:
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What youth need: A greater focus on job quality

Development Matters Policy, SDGs, Youth , , , , , ,

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By Niall O’Higgins, Senior Research Specialist, Youth Employment Programme, International Labour Organisation (ILO)

Learn more about this timely topic on the upcoming
OECD Global Forum on Development
Register today to attend

women-africaFor young people, successful entry into the world of work – that is, successful transition from education to employment – means more than simply finding a job. Successful transition occurs only when young people find decent work. What is actually meant by this has been the subject of much debate for a number of years; but its essence is encapsulated in the ILO’s notion of freely chosen and productive employment.

While it can be hard to define precisely what ‘decent work’ looks like, it is fairly clear what it is not. It is not informal employment. It is not work that provides insufficient income to meet basic needs. It does not involve excessive working time or any form of compulsion. Typically, it does involve some degree of job security, protection from arbitrary dismissal, access to social protection, such as health insurance and pension schemes, and freedom of association.
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What gets measured gets managed: Tapping into local procurement in the mining industry to advance development

Development Matters Data, Natural Resources, Policy , , , ,

By Luke Balleny, Manager, Role of Mining and Metals in Society, International Council on Mining and Metals

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Zambia – crusher for manufactured sand. Photo: Shutterstock

How do mining companies spend their money? If you didn’t know and listened only to the media, you might think such companies spend the most on taxes and royalties. However, you’d be wrong.

When minerals or metals are monetised, the revenue is shared between four main stakeholders in the following ways:

  1. 50–65% of mining revenue goes to operating and capital expenditure, such as the suppliers who are paid for their inputs.
  2. 15–20% goes to government, which receives its share through royalties and taxes.
  3. 15–20% goes to investors who receive profits, typically a residual after the other payments have been made.
  4. 10–20% goes to employees who are paid their wages.

A World Gold Council (WGC) study shows that out of the total annual spending in 2012 of USD 55 billion by the 15 WGC members studied, some USD 35 billion were payments to other businesses, mostly subcontracting and procurement. Less than USD 10 billion were royalty and tax payments to governments.

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Policy pathways for addressing informality

Development Matters Policy , , , ,

By Juan R. de Laiglesia, Senior Economist, OECD Development Centre

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Vendor selling fresh vegetables in Galle, Sri Lanka

The prevailing international discourse on informality has shifted. The conceptual “discovery” of the informal sector by the ILO’s Kenya mission in 1972 noted not only its scale but also that it was “…economically efficient and profit-making…” Today, the view that informality is a drag on productivity growth and progress has gained ground in the international community and is consistent with the recommendation that the informal economy should be formalised.

One contention is that balanced development and policy action that lifts the financial, technological, institutional and human capital constraints to productivity will also enable higher productivity in informal firms and thereby formalisation. A growth-inducing productivity agenda is a necessity, but growth alone is not enough to reduce informality.
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La promesse du « made in Africa » ne sera tenue qu’en misant sur les entrepreneurs locaux

Development Matters Africa, Français, Policy , , , , , ,

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Par Victor Harison, commissaire aux affaires économiques de la Commission de l’UA. et Mario Pezzini est directeur du Centre de développement de l’OCDE et conseiller spécial auprès du secrétaire général de l’OCDE chargé du développement.

The topic discussed here builds on the success of the 2017 Africa Forum

Made-in-AfricaLe « made in Africa » fait son grand retour parmi les priorités des décideurs en Afrique. Ainsi de l’Agenda 2063 de l’Union africaine (UA), qui vise à transformer les économies du continent pour créer une croissance partagée, des emplois décents et des opportunités économiques pour tous. Pourtant il faudra bien davantage que des rêves ambitieux d’industrialisation pour que ce label et cet objectif prennent corps.

Les politiques et stratégies industrielles joueront certes un rôle essentiel, mais elles doivent être repensées profondément. D’abord parce que les efforts d’industrialisation après les indépendances n’ont remporté qu’un succès limité, mais aussi parce que les technologies de production ont subi une révolution, qui n’est pas seulement numérique. L’économie mondiale a radicalement changé, et l’Afrique aussi.
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