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close this bookJobs for Africa - Towards a Programme of Action - Report of the ILO/UNDP Programme on Employment Generation and Poverty Reduction (ILO - UNDP, 1997, 107 p.)
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Open this folder and view contentsChapter 1: Capacity building at the national level
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(introduction...)

· Geneva, Novembre 1997 ·


Copyright © International Labour Organization 1997

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First published 1997
ISBN 92-2-110926-7

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Preface

This report has been prepared within the framework of the UNDP financed programme “Jobs for Africa”. This programme, which has been launched by the ILO, represents a contribution to the United Nations System-Wide Special Initiative on Africa as well as to the follow-up to the Social Summit. The objective of “Jobs for Africa” is to identify a set of mutually enforcing policies for job creation and poverty reduction. This has been done through: (a) developing a conceptual framework for comprehensive and sectoral policies on employment creation for poverty reduction; (b) identifying policy tools and operational systems to implement employment creation for poverty reduction; and (c) designing a comprehensive regional programme to support country level employment promotion activities.

The major thrust of the underlying approach is that Africa has no alternative but to embark on a process of sustained growth if the continent is to avoid continued marginalization. The process of globalization offers good opportunities through increased exports and foreign investment. The process of reform has to be deepened by going beyond structural adjustment stabilization programmes, and by launching investment-led growth strategies that maximize employment and reduce poverty.

The present report, which complements another entitled “Jobs for Africa: A Policy Framework for an Employment-Intensive Growth Strategy”, proposes a Programme of Action in order to implement the policy framework in support of an investment-led growth strategy for employment creation and poverty reduction. The main focus of this Programme of Action is to contribute to capacity building of the policy maker in Africa. It is proposed that the UN System supports African efforts to influence investment decisions in such a way as to maximize demand for labour as the process of growth resumes. To achieve this objective, a number of regional and country-level programmes are proposed.

It is hoped that this Programme contributes to the positive turnaround in the growth performance experienced by several African economies in recent years.

In preparing this Programme, a number of institutions and individuals have contributed generously. Particular acknowledgment must be made to the UNDP for financing the whole project. Ms. Caitlin Wiesen has followed the evolution of this Programmes since its inception. Ms. Wiesen and Mr. Terry McKinley have provided invaluable inputs. Ms. Robin Marsh of FAO has also contributed to the finalization of the Programme. At the ILO, Mr. Vremudia P. Diejomaoh (ILO Africa Department) and Mr. Roberto Zachmann (ILO Development Policies Department) provided valuable inputs in producing this Programme.

Samir Radwan
Director
Development Policies Department
International Labour Office
Geneva

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The implementation of the policy framework in support of an investment-led growth strategy for employment creation and poverty reduction requires a concerted and coordinated programme of action on the part of the UN system, governments at the national, regional and local, and civil society. This document describes interventions that would need to be carried out in order to fully implement the policies set out in the UNDP/ILO Policy Framework for an Employment-Intensive Growth Strategy.1 It is argued there that, to reduce poverty through employment, investment led, growth oriented macro-economic policies must be accompanied by, and be coherent with, sectoral and direct interventions that target specific population groups. This document describes some of the components of a coherent employment generating policy and programme that would lead to sustainable poverty reductions in sub-Saharan Africa.

1 UNDP/ILO: Policy Framework for an Employment-Intensive Growth Strategy, Geneva, 1997.

Programme justification

Three guiding principles underline the Programme of Action:

· the capacity of African countries to embark on investment-led strategy for sustained growth is essential for any reform. Stabilization programmes can not be the final outcome of economic policy. A sound macroeconomic policy must seek sustained growth over the medium and long terms;

· sectoral and microeconomic policies should ensure that sustained rapid economic growth will lead to an increase in job creation and poverty reduction; and

· an enabling environment is necessary for the achievement of growth and equity. The essential ingredients of such environment are participation by the civil society, respect for human rights, especially those enshrined in the core international labour standards, and good governance.

There is wide consensus that “action against poverty has been greatly weakened by its fragmented and partial nature”2. An effective poverty reducing policy must, therefore, identify suitable expenditure policies and explicit implementation mechanisms to ensure that investments do result in poverty reducing employment of a sustainable nature: Investment and public expenditure must be adequately targeted to reach the poor, pertinent in creating employment enhancing assets and effective in reaching the largest population at the lowest possible cost. An employment creation action programme can't simply suggest an investment structure comprising a sectoral distribution of investment and its volume. It must identify delivery systems that reach the poor and provide them with employment creating assets both for immediate job creation and for long term high quality employment growth. This calls for a selection of (i) appropriate labour intensive technologies and the mechanisms to ensure that such technologies are fully utilised, (ii) the integration of gender issues in the execution of direct interventions, (iii) the adequate use of credit instruments, (iv) the creation of productive and competitive enterprises that provide high quality employment, and (v) the development of mechanisms to assess and monitor the execution of all these activities.

2 Rodgers, G. (Ed): The Poverty Agenda and the ILO: Issues for research and action. IILS, Geneva, 1995.

Possibly the most effective way of promoting effective policies for poverty eradication lies in emphasizing the critical importance of good programme management. Major components of such an approach must include:

· the careful selection of the priority populations that should benefit from interventions and policies;

· the identification of the needs of such populations;

· the choice of tools needed to satisfy the needs of the selected populations; and

· the effective implementation of the interventions in a timely, coordinated and cost effective manner.

The selection of priority population requires detailed information on incomes and the location of the poorest segments of the population. A clear cut priority in any poverty eradication strategy is the creation of “poverty maps” that identify the geographic location of the neediest segments of the population, and an inventory of the social and physical infrastructure available.

Experience in “Social fund” projects has conclusively3 shown that the participation of beneficiaries in the selection of the projects is a major contributor to their success. There is thus a need for the organisation of the poorest segments of the population to ensure that they can participate in the selection of interventions. The “Appui associatif et cooptif aux initiatives de dloppement a la base (ACOPAM)” programme has a wide experience in this field in Africa. The aim of such participation is to select the type of action that is required, and select from a number of tools available to address their most pressing problems, within a certain budgetary constraint, but in a well coordinated manner.

3 The literature concerning this domain is extremely large. However, in the evaluation of Chile's Fondo de Solidaridad e Inversiocial (FOSIS) Raczynski, D., et al.: (Proyecto de fortalecimiento institucional del Fondo de Solidaridad e Inversiocial (FOSIS) de Chile. Componente 2: Evaluaci redisee programas, mimeo Santiago, 1996) examines not only the importance of popular participation, but also reviews the consequences of this factor on the structures of government and the coordination needs of poverty eradication programmes. Targeting, and other issues concerning the experience of social funds in Latin America are well summarised in Siri, G.: Social Investment funds in Latin America, CEPAL Review No. 59, August 1996.

The organisation of the poorest communities to select interventions, and the coordinated implementation of actions require local or regional level organisations. Where these structures do not exist they must be created, and where they do they must be strengthened. As implementing agencies, these structures must be trained in programme selection, the promotion of popular participation, and in the management and monitoring of local projects. Experiences in Brazil4 show possible strategies to strengthen regional and local governments. This was achieved, in this particular example, by:

4 See Tendler, J. and Freedheim, S.: Trust in a rent seeking world: Health and government transformed in Northeast Brazil-in World Development, Vol. 22 pp. 1771-1791, 1994.

5 Op. cit, pp. 1773.

a) A very tight control by the provincial government over the employment of local staff;

b) A “rigorous process of meritocratic selection and training, unending publicity, and repeated public prizes for good performance”;5 and

c) The voluntary assumption of greater responsibilities stemming both from the increased community interest on the work performed by the officials as a result of the aforementioned publicity campaigns and the strengthened relationships between public officials and the people they serve.

Clearly, technical advisory services must concentrate in increasing the absorptive capacity and productivity of public entities even when many of the reforms now being advocated tend to strengthen the private rather than the public sector.6

6 Sahn, D.E.: Assessing the impact of external assistance on poverty: Concepts and experiences in Africa, Methods for Evaluation of poverty oriented aid interventions. Seminar Report, Copenhagen, 5-6 July 1995, DANIDA.

Programme Objective

Mutually reinforcing actions must be undertaken to combat poverty through employment creation both at the macro-economic and sectoral levels. The major objective of this Programme is thus to contribute to the capacity building at the national, regional and sub-regional levels in sub-Saharan Africa to be able to implement an employment led, poverty reducing, strategy.

A more coordinated approach to policy formulation and development planning should be pursued to ensure that possible employment implications of policy decisions and programmes are carefully analysed. This must be done both in terms of specific measures and their inter-relationship. Thus, particular attention should be given to the coherence between the planning and budgetary authorities. Effective expenditures within specific planning policies will result in quality employment, in the reduction of poverty and to the improvement standards of living. This calls for capacity building and the provision of technical assistance in well defined areas of work.

Contents

The initial step in any employment generating strategy is to build up capacity in the relevant ministries as well as the representative institutions of the civil society to design and implement the of investment-led growth strategy. This is going to be achieved through the implementation of a regional programme to develop the national and regional capacity through the analysis and design alternative employment generating investment strategies. In so far as investment policies determine the volume and sectoral composition of direct interventions, the Poverty reducing employment strategies for sub-Saharan Africa is the key component of the programme. It will be summarised in Chapter I. Given its importance, the complete project document for this component is annexed to this Programme of Action.

The technical cooperation elements of a Programme of Action will abandon piece-meal interventions in favour of systematic programmes that can make a difference in creating jobs and reducing poverty. Mutually supportive technical assistance activities are proposed at both the regional and national levels, and will be described in Chapter II. It includes three regional level activities, and technical support at the national level in the following areas:

1. Promoting social dialogue for training Chapter II, section 2.2.1.

2. Small and medium enterprise development described in Chapter II, section 2.2.2.

3. Improving the data for employment and poverty reduction policy making, as detailed in Chapter II, section 2.2.3.

4. Employment-intensive programmes for the creation and rehabilitation of infrastructure, described in Chapter II, section 2.2.4.

5. Policies and programmes to enhance women's employment and their participation in decision making presented in Chapter II, section 2.2.5.

6. Policies and programmes for job creation through broad-based rural development (summarised in Chapter II, section 2.2.6.), including the promotion of developmental institutions (e.g. cooperatives described in section 2.2.7.).

1.1 Poverty reducing employment strategies for sub-Saharan Africa7

7 The complete project document for this component is annexed to this Programme of Action.

The process of macroeconomic reforms has to be deepened beyond present structural adjustment and stabilization programmes, in particular by launching investment-led growth strategies that maximize employment and reduce poverty if Africa is to avoid continued marginalization.

Although African governments and Regional organisations have been sensitized during the last decade on the employment crisis, national capacities and machinery for tackling the employment problems have remained largely defective and inadequate to meet the increasing demands of the worsening employment crisis. More specifically, the relevant ministries suffer from lack of the required expertise in many essential disciplines, such as labour economics, statistics, and employment data collection and analysis. In addition, little attention has been paid to utilizing available national capacities in existing national research, consultancy, and training institutions, that could be involved in employment policy and programmes formulation and implementation, and to assist them become more active policy advisers in this field. Some of these institutions are handicapped in both quantity and quality of their output due to a variety of reasons including shortage of financial resources, staff with relevant experience and training, limited accessibility to vital information (activities to redress this crucial issue are described in section 2.2.3.), lack of exposure and interaction with others in similar situations at home and abroad.

The reversal must be sought of the present sub-Saharan African situation largely characterized by public investments concentrated in expensive capital intensive projects that employ little labour and have negligible direct impact on reducing poverty. This can be achieved by building African capacity at the regional, national and local levels to design and to implement investment-led strategies of development that define the primary task for macroeconomic policy to be increasing investment and improving its efficiency. A priority task in developing poverty reducing employment policies is to advocate ways in which public investments can be restructured to impact more positively on productive and high quality employment.

To achieve this, it is necessary to build the national and regional capacity to design and adopt poverty reducing employment strategies based on investment led macro-economic policies that are explicitly targeted towards the poorest segments of the population and that are coherent at the micro-, mezzo-, and macro levels.

This, in turn, requires an action programme that develops the capacity of:

· national and regional institutions and networks to assess, design, and advocate alternative policies for poverty reducing employment strategies.

· governments to re-orient strategies and programmes for poverty reducing employment strategies.

· national partners to design and implement coherent poverty reducing employment programmes at the micro-, mezzo-, and macro levels; and that identifies, documents and spreads the most important knowledge gained during the implementation of national employment generating activities.

The creation of a regional and national employment capacity building networks will address these issues through the pooling of local resources that will be better equipped to address the daunting problem of unemployment in the countries and by providing advocacy for employment generating and, thus, poverty reducing investment policies.

The Regional Capacity Building Network programme will consist of the following four main activities:

a) Establishment of national networks and their coordination within the African Regional Network;

b) Policy oriented regional investigative studies conducted through network members;

c) Training programme and exchange of experiences among networks members; and

d) Documentation services, and exchange principally, though not exclusively for network members.

The regional network services, information linkages and exchange between network members and the relevant international institutions should be provided by a regional project based in the ILO, and should include technical backstopping for the execution and implementation of national network activities, as well as providing regional documentation services.

The principal function of the national network at the initial stage, will be the preparation of an assessment of the employment effects of current national growth and public investment policies. The assessment, which could be titled a “Report on Investment for Poverty Reducing Employment” (IPRE), will seek to provide a well - publicized assessment of public and private investment, and to propose new directions for raising investment and improving its allocation towards poverty reducing employment. The secondary thrust of the report is a critique of the macro-economic policies such as right monetary policies and restrictive fiscal policies - that raise interest rates, curtail credit and cut public investment. The report should not attempt to duplicate the reports of the World Bank in helping the government formulate a public investment programme (PIP) but focus on policies and programmes that promote employment and, through it, achieve poverty reduction.

The investigative work of the network is narrowed to action oriented research relevant to poverty reducing employment promotion through investment, the management of employment initiatives, and effective ways of monitoring and evaluating the impact of investment policies.

Given the project's focus on investment, the activities that should be implemented at the local level should be limited to (a) public investment projects that directly promote poverty reducing employment in such areas as agriculture and rural development (e.g., rural feeder roads, small irrigation works, reforestation using labour intensive techniques), micro and small enterprise development, and urban-based labour intensive projects (see section 2.2.4., for details on interventions in this field); (b) indirectly stimulate private investment and poverty reducing employment (innovative activities in this field are described in section 2.2.7.,); and (c) activities to increase the productivity and livelihoods of target poor populations (e.g., women, youth, the disabled, retrenched workers, etc.) and districts (section 2.2.5., deals with specific activities in this field). Training (managerial and vocational) (section 2.2.1.), financial services (sub-section 2.2.2. ii) and participatory techniques are common tools in the implementation of the above activities. Wherever feasible, practical experiences from other ILO national or regional programmes in the aforementioned activities will be brought to the attention of the national networks and concerned officials. Technical workshops to identify common practices, the requirements to ensure positive impact, and pitfalls to avoid could be organised to enhance the local capacity.

2.1 Technical Assistance at the Regional Level

Three activities at the Regional Level would provide technical assistance and support actions at the national level. They are:

1. The creation of a regional training fund to be financed by donors as well as the private sector in the different African countries. This fund should aim at improving the human resource level in the different countries in order to increase the productivity of African workers and enhance the competitiveness of African economies in the global economy. Section 2.2.1., explores some of the technical assistance services that could be carried provided under these fund both at the national and regional levels.

2. The development of a small and medium enterprise development centre. It is recognized that SMEs are the most suited types of organisations for the development of the modern sector in Africa. The centre, to operate at the regional and sub-regional levels, will act as a clearing house for exchange of experiences particularly from sub-Saharan Africa, and South and Southeast Asia. It will also provide technical assistance to national initiatives aiming at the development of this sector. Section 2.2.2., on enterprise development, deals with some of the activities to be covered by this project at the national level. It comprises interventions on direct enterprise promotion, on access to credit, and on activities to support the enhancement of the productivity in the informal economy.

3. The implementation of a Labour market information system. This programme will aim at drawing on existing data which are not fully utilized in order to provide benchmark information on labour markets as well as some indicators for their evolution. It could give guidance to, and obtain information from national technical assistance activities such as those described in Section 2.2.3.

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It is proposed to launch an integrated programme for job creation and poverty reduction tailored to the specific conditions of each country. The following are the main ingredients of such a programme:

2.2.1 Promoting social dialogue for training

In order to make human resource development more responsive to their economic and social needs, African countries face the formidable task of reforming their vocational education and training (VET) systems. The Jobs for Africa Policy Framework for an Employment-Intensive Growth Strategy outlines the essential elements of a programme to reform VET systems in the region. It underlines the fact that countries in sub-Saharan Africa will need to continuously up-grade the skills of the labour force, to respond successfully to the challenges brought about by structural change, economic liberalisation and an increasingly integrated and global economy.

Economic hardship and structural adjustment programmes have frequently compromised the ability of many governments in the region to finance and provide education and training commensurate with rapidly evolving training needs and priorities. In this rapidly changing environment, governments cannot act independently. The private sector, governments, labour and, in general, civil society must develop a common vision of the opportunities and challenges that lie ahead, and engage in social dialogue both to develop training policies, and to reform existing delivery systems. A reform of curricula is long overdue. The aim should be to introduce modular curricula that ensure the achievement of work competencies in skills according to precise objectives. Any policies and programmes to broaden the sources of finance for Vocational and Entrepreneurship Training must depart from the premise that those who are potential new (and old) contributors are also integral partners in the process of defining and implementing policies. Finally, training programmes for people working in the informal sector can significantly improve productivity and income generation. Formal vocational education and training institutions have in some cases been able to redirect their objectives and curricula so that they correspond to the skill needs in farming as well as in informal manufacturing and services. An integral element of such a redirection is careful analysis of existing market opportunities in the local area and training in multiple skills needed for market access. Expanding and strengthening informal apprenticeship must also be explored.

Experience from South Africa, Zambia, and most recently Malawi suggest that a momentum can be created to carry out fundamental reforms of training systems, provided that donor backing is secured. ILO’s long experience in promoting social dialogue provide an excellent opportunity to engage in a tripartite dialogue, and to develop action programmes on training in selected countries.

An action programme must, in the first pace, bring together the social partners in selected African countries. Social partners should be understood in a broad sense and should include, in addition to the ILO’s traditional tripartite constituency, other stakeholders in training, such as autonomous training agencies and institutions, NGOs, industry associations, chambers of industry and commerce, and informal sector associations. To strengthen the capacity of the aforementioned actors to develop training policies the following activities could be undertaken:

a) identification of training and human resources development activities that enhance the employment effects of public investment projects;

b) development of tools to identify target groups which could benefit from training interventions in support of employment oriented investment programmes and projects;

c) assessment of the capacity of national and local training institutions and non-formal training providers to implement the training interventions.

A national Plan of Action, based on this training capacity analysis, can then be prepared to rehabilitate, strengthen or expand existing institutions (and/or possibly create new ones) and support non-formal training suppliers to implement a human resource development strategy. These interventions are not exhaustive, and they should not be seen either as ad-hoc activities for any one particular project, but must constitute an integral part of the training policy and system reform process which will include strengthening, both the training providers and also the training support infrastructure. This infrastructure includes the institutions and organisations that undertake employment and training needs and capacity analysis, identify target groups, diversify and devise alternative financing mechanisms for training, and ensure a more representative governance structure of training, among other activities.

Finally, The lack of adequate basic education and technical skills, and managerial competence in such areas as bookkeeping accounting and the like, are widely recognized as serious constraints to raising employment and productivity in the informal economy. ILO training packages such as community based training, skills development for self-reliance, and Improve Your Business (IYB) can be used to improve the technical skills and managerial knowledge base in the informal economy. The introduction of business education into the curricula of vocational training institutions, and the expansion of the scope of basic education including functional adult literacy programmes should increase productivity in the informal economy.

i. Local Economic Development and Employment creation through Micro and Small Enterprise Promotion

In Africa, unemployment, under-employment, international competition and failed development initiatives have heightened the importance of entrepreneurship and small enterprise development. Decentralised decision making has increased the need for endogenous development, “controlled development from within” which focuses on local resources, institutions and economic activities. Controlled development from within increases the importance of small firms as generators of employment. Thus small enterprises, local communities and their surrounding regions are key units of development and job creation.

Local Economic Development (LED) Approach

Taking into consideration the full advantage of existing assets and the potential for economic development potential in a given area, the promotion of SME constitutes a means of generating employment. This, however, has to be done in a balanced and comprehensive way, following the logic of the market and according to common guidelines and recommendations for local and regional development.

The main elements of the LED Methodology are:

· consensus building;
· bottom-up approach;
· human and institutional capacity building;
· search for synergy and catalyst effects;
· globalisation of the local level; and
· public awareness raising.

True to the LED methodology, 'Consensus Building' has to be done through an active participation of the relevant socio-economic and political actors at the local level. This means that a process which unites and creates collaborative linkages amongst local actors across political and cultural differences has to be created, ensuring a constructive exchange of ideas and opinions aiming at designing policies for sustainable development of the project area.

The 'bottom-up' approach mobilises to the utmost the local human potential making them part of and responsible for the local economic development process. As these activities are conceived as endogenous rather than exogenous processes, the sustainability of initiated project and programme activities is ensured.

Synergy and catalytic effects must be used in order to create trust and co-responsibility amongst the local actors the long-term goals of programmes. Therefore, it is of extreme importance to make sure that short-term, concrete and visible results (impacts) are achieved. Setting of 'good examples' contributes to raise the level of motivation and awareness of the target population. These examples though, must have such characteristics that they can be easily repeated.

'Globalisation of the Local Level' refers to the incorporation of the local experiences into a wider frame work of laws and regulations at the national level. The LED methodology wants to prevent the creation of isolated technical exercises which can not be repeated or united in overall strategic development policies.

In the context of the actual project 'Public Awareness Raising' will lead to the creation of a more appropriate entrepreneurial culture and a low-risk atmosphere. It is one of the most difficult aspects of the LED as it is dealing with the mentality of the people at all levels. It is exactly there that the major changes have to be established in order to guarantee sustainability of development. It is also at this point that the major obstacles and problems are to be found.

In order to attain the global sustainable development of the local economy, consensus and discussion are the main requirements among different local actors in the private and public sector, between the members of these sectors and at the local and national level. This consensus should lead to the provision of a supportive policy framework, the development of financial schemes to enable entrepreneurs to take up small enterprises and the provision of training to develop entrepreneurial and technical skills, which are considered necessary conditions to develop the local community.

Beneficiaries

The target group consists of representatives and decision makers of local public bodies responsible for local economic and social development, potential business starters, entrepreneurs of all branches (men and women) and business associations.

Small and medium enterprises are characterised by their flexibility which permits them to evolve even in small markets. Beginning with the regional market's potential by using their regional comparative advantage, the SMEs have the possibility to grow and expand their markets in the regions. Branches with high potential of development based on local resources, food processing, textile, repair and services offer good possibilities for growth. Tourism (in a broad sense) also offers a great opportunity of allowing the development of family-owned and managed enterprises that can provide income-generating work for many, including women and young people.

SME support and promotion through Business Promotion and Support Centres (BPSC)

An enabling political environment, the development of financial schemes to enable entrepreneurs to take up small enterprises and the provision of training to develop entrepreneurial (mentality) and technical skills are considered to be three basic conditions to guarantee a sustainable development of the local economy. In order to attain this, consensus and thus discussion are one of the main requirements; consensus and discussion among different local actors in the private and public sector, between the private and public sector and between the local and the national level.

In this context Business Promotion and Support Centres will be promoting and supporting SME's, with a view to maximizing employment growth and improving the standards of competitiveness of the SME's in the given area. This will be done by:

1. Promoting an entrepreneurial culture, where potential business men become aware of what is means to have a proper business, learn about the responsibilities, risks and possibilities. The lack of a market oriented 'Business Mentality' can partly be overcome by introducing very practically oriented training material, introducing the basics of entrepreneurship on a step-by-step basis. In the context of the Action Plan training material will be further developed and up-graded. The process to develop the practical oriented training material will be based on a constant dialogue with and feedback from the target group, the business starters. Apart from the development of new training material, and the introduction of participatory training activities, an effective monitoring and follow-up mechanism will have to be established in order to guarantee to the most the success of the business starters;

2. Providing locally-based comprehensive support to potential or actual small and medium entrepreneurs, introducing information, new management techniques, as well as new technologies. These services will facilitate guidance and assistance in formulating business ideas and selecting feasible business projects, implementing new enterprises or rehabilitating existing ones, following up and counselling on the entrepreneurs' operations with a view to consolidating their sustainability and assisting in the promotion and marketing of the product on an international level;

3. Mobilising opportunities and resources, setting up guidelines and procedures to facilitate access to credit and incentives for employment generation and training. As there are several special credit schemes for micro and small entrepreneurs in the pipeline with different international programmes and organisations, a special credit fund or financial mechanisms are foreseen in the context of this proposal;

4. Stimulating and supporting a 'dialogue' at the local level, between public and private sector aimed at promoting private entrepreneurship, in order to create a relation of confidence between the local public organisations and the private sector; and

5. Contributing to and facilitation of a more appropriate environment at the national level by creating Association of Development Agencies and Business Centres, through which the interests of the SME's will be regulated, protected and represented at the national - political - level.

The basic orientation of BPSC's activities will be towards the identification and implementation of profitable, efficient and organised entrepreneurial activities, that contribute to a local economic and employment development. It will support those activities or projects which associate best with the economic potential of the area, utilising endogenous resources, stimulating multiplier effects towards the local economy.

In other words, the main tasks of the BPSC's will be:

· orientation and motivation to stimulate local economic initiatives;
· assist in the preparation of business plans for private enterprises;
· intermediate in the provision of credit;
· support and strengthen already existing enterprises;
· stimulate product diversification;
· provide training and technical assistance; and
· maintain relations with national and international institutions for technical and/or financial support.

These tasks will have to be performed within a by-all parties agreed logical frame work for the development of the local economy. The BPSC's will operate as a catalyst in a discussion forum or as a Local Planning mechanism, operating as a canal, from the bottom up, for the interests of the local entrepreneurs (maximising the utilisation of local resources and potentials and aiming at the satisfaction of local economic needs, always on the basis of consensus).

The BPSC's will though only be capable of entering into a valuable partnership with national and international partners and can only contribute to the increasing problems of unemployment, underemployment, poverty and the deterioration of living and working standards, if they receive the appropriate technical and financial assistance in local capacity building. This means that assistance is required to up-grade and develop the institutional, human, managerial and financial capacities and skills at a local level which will lead to an “empowerment” of the local societies as a whole.

ii. Access to Financial Services

Financial resources are indispensable for employment creation by enterprises and governments, be it in the form of debt or self financing. Safe and attractively remunerated deposit facilities do not exist: either personal savings are kept liquid at no return, or they are invested in other activities with a return that is lower than its equivalent deposit in banks or credit unions. As a result, there is little capital accumulation that could serve the formation of productive assets like machines, equipment and stocks. Most enterprises have no access to other financial services such as lease finance or guarantees.

The reasons lie largely in the organisation and functioning of financial markets, in the institutional culture of banks, information asymmetries and the scarcity of investment opportunities. The situation is not entirely bleak: Africa's financial sector is also characterized by a wealth of innovative techniques in financial intermediation that help to reduce risks and costs. This applies particularly to the informal sector, be they group-based like tontines and other ROSCAs or undertaken by individual operators like moneylenders. They operate in a personalized manner which allows them to do without written contracts, while keeping up social pressure to ensure compliance with repayment obligations. The problem is that the financial services provided in the informal sector are often too small, too short and sometimes too expensive to be of interest to investors with job-creating opportunities.

A programme of action in this domain must focus on key constraints in Africa's financial sector that have a direct bearing on jobs: collateral constraints, lender transaction costs, governance and performance of social funds, savings mobilization and an inappropriate or non-existing regulatory environment. Such a programme must engage the policy dialogue with central macroeconomic institutions (Central Bank), while at the same time it must support grass roots initiatives. The one reinforces the other, and only implementation at these two levels would be effective.

The following strategies, that generalize lessons learnt and best practices tested in ongoing ILO and other field projects, are:

Expansion of member-based financial organisations

This strategy would enlarge and generalize the lessons of an ongoing successful partnership of the ILO with the Central Bank of West African States (BCEAO). The joint programme, PASMEC, supports at the macro - and institutional level decentralized financial systems (village banks, women savings groups etc.), i.e. precisely those suppliers that the informal sector operators and micro entrepreneurs turn to when making small investments. The PASMEC spans a very formal monetary authority and very informal grassroots initiatives: it is an attractive illustration of how the ILO can influence policy-making with an enormous outreach effect, namely through national coordination fore in each of the seven member countries of the monetary union bringing together NGO networks, banks, governments, Central Bank and donors. The success of the PASMEC has triggered recently a request by the monetary authority of the other CFA zone, the BEAC, to replicate the support programme in the five central African countries there.

Strengthening Social Development Funds

Social Funds have sometimes a micro credit window, that is most often administered by Government. The performance of such an arrangement has not been satisfactory and the ILO has therefore favourably responded to a request by the Government of Zimbabwe to turn around their micro credit facility within the Social Development Fund at the Ministry of Labour. The challenge is to set up a genuine APEX structure that lends through national retailers (banks and financial NGOs) and thus reaches more micro enterprises and the self-employed. It is of particular relevance to those who lost their jobs as a result of Structural Adjustment measures. The ILO has been contacted by the AFDB to generalize the rehabilitation programme.

Support to micro finance professional organisations

Jobs in Africa will be mostly created in the private sector. Employment policies make sense only if they address the constraints faced by private sector operators to undertake investments and create jobs. A key player in this respect is the private financial sector that acts according to cooperative principles. It is mutual savings and credit associations and cooperative banks that are most sensitive to the financial needs of the SMEs anywhere in the world, including Africa. The ILO has been testing an approach to help mutual savings and credit organisations acquire a genuine power and advocacy status. In Madagascar, for example, the ILO discovered a genuine need, and demand for, a professional association to represent members vis-a-vis public authorities, other financial institutions and donors. This policy dialogue is going to alter radically the financial conditions of participants, thus indirectly increasing employment in the rural areas and the informal urban economy. These best practices derived from the support programme in Madagascar show that viable micro finance institutions (MFIs) can indeed combine outreach and sustainability objectives, but they have to (i) be independent, (ii) impose strict recovery conditions; (iii) search flexibility on collateral requirements; (iv) charge positive real interest rates; (v) offer deposit facilities; and (vi) maintain a diversified portfolio.

iii. Support to the development of the Informal economy

One of the most effective ways of combatting poverty is by examining ways of enhancing the quality, the productivity, and the social protection of workers in the informal economy. An action programme in this field must include the following six main interrelated elements:

Improving the enabling environment and social protection in the informal economy

Appropriate measures must be taken to ensure that policies are aligned with the more productive development of the sector. Rules governing zoning, registration, access to land, and work sites must be reviewed in the light of their probable impact on the workings of the informal economy. The overall regulatory environment relating to such issues as legislation, taxation and fees will also need to be streamlined and made more sector-friendly. This calls for actions to strengthen the capacity of the authorities responsible for drafting these regulations or designing policies affecting the sector.

Efforts must be made to promote collective action at the grassroots level by strengthening or supporting the formation of associations based on sectoral activities within the informal sector. This will assist informal sector operators to articulate their needs and provide the basis for participating in policy and programme design and implementation which affect informal sector workers.

Increasing access to financial services and marketing opportunities

Sub-section ii, covers the proposed suggestions in this domain.

Promoting industrial and manufacturing activities and improved technologies

A particularly important sub-sector of the informal economy is the production of manufacturing and industrial products and the provision of engineering services such as repair services largely for the benefit of the poorer segments of the population. Hence he promotion of this sector is not only aimed at raising the productivity and incomes of the poor producers, but also improving the consumption and welfare patterns of the poor. Support for the upgrading of technical managerial and marketing skills for producers of this sector will also be essential, as well as easier accessing of production inputs. Pilot experiences show that there is great demand for business advisory services. Most of the NGOs who work in the informal sector lack the capacity to develop training programmes on business management and business practices. The provision of consultancy services in the fields of business regulations, management and skills training would be highly useful and appreciated by NGOs and informal sector operators.

Improving sectoral backward and forward linkages and subcontracting

Productivity and employment will be enhanced and poverty further reduced, if both forward and backward inter-linkages between formal sector enterprises and establishments in the informal economy are specifically identified. The role of the state as a major contractor could be a major instrument in this connection, by encouraging its larger contractors to sub-contract to informal sector operators.

Intensifying infrastructural development using labour-intensive technology

Section 2.2.4, illustrates the mechanisms that could be adopted for this sector.

Improving basic education, technical skills and managerial training

Section 2.2.1, includes strategies to assist in the development of the human resources in the informal economy.

2.2.3 A poverty and employment monitoring action technical assistance programme

A major requirement to ensure appropriate policy making and adequate project implementation is the availability of data. It is thus necessary to explore alternative strategies that could reduce the cost of the data gathering exercise and simplify its processing. In so doing, it could be possible to guarantee the periodic availability of information on both poverty, employment, and African labour markets. The aim is to assess the changes in the poverty and employment status of particular population groups over time.

The cost effectiveness of investment on poverty reducing employment programmes depends on how the programmes are (1) targeted, (2) monitored, and (3) evaluated. On these three counts, information is indispensable. Information is useful when it is pertinent, when it is reliable, and when it is timely. Having 10 year old statistics on urban poverty is of no use to identify what are the priority populations to target in setting up employment programmes.

The poverty reducing effects of greater employment levels is not guaranteed under all circumstances. Programmes need not attain the neediest population segments, and the type of employment generated might not be of sufficient quality to rise the standards of living. It is thus critical to gather data both on employment and on poverty issues. Such information must show changes over time and space and, at the same time, satisfy the needs of a large number of policy makers and analysts wishing to understand the evolution of society and the impact of poverty reducing policies.

A long term information gathering strategy needs to be developed. It must identify an extremely limited number of issues for which data is required. For the purposes of this action programme, this encompasses exclusively data on employment and on poverty. It must then assess the periodicity of data collection. If poverty and employment levels change on a yearly basis there is no reason to gather data at shorter intervals. Depending on the frequency of change in the variables to measure cost effective data gathering and processing mechanisms should be developed. These could encompass a strategy of total population census every ten years, household surveys every two years and rapid assessment exercises every year, for example. While this programme of action could neither finance national census nor surveys, it could set the stage for the preparation of a coherent statistical programme to assess the poverty and employment statistics of sub-Saharan countries.8 The following steps could be undertaken to achieve such an aim:

· as a high priority activity, and using as much existing household survey data as possible, develop “poverty maps” to identify priority intervention areas;

· identify culturally specific proxy indicators of poverty that are simple and inexpensive to gather and process, to have a rough - but statistically significant-idea of employment levels, the quality of such employment and poverty levels and their changes. These proxies could be derived from the extensive surveys already carried out in many sub-Saharan countries, but should be tested before initiating any large scale job creating strategy. Their cost, reliability and effectiveness would need to be compared to alternative rapid assessment methods;

· use modern sampling techniques (possible through the development of clusters) to gather data on proxies, and to reduce the cost of the less frequent but periodic sample surveys;

· identify the periodicity of more full featured sample surveys to confirm the accuracy and the statistical validity of the proxy indicators and to have a more detailed picture of the situation of the population;

· assist public authorities to set up user groups to determine the nature of the data that needs to be collected and to assist in the dissemination of the information thus collected;

· programme regular evaluations of employment generating; and

· develop and strengthen local capacity to gather statistics, process and disseminate them promptly.

8 The PA-SMEC provides an example of data collection strategies already being implemented in the continent by the ILO. It is a joint initiative of the ILO (Social Finance Unit) and the Central Bank of West African States (BCEAO) which regroups the countries of the Franc CFA monetary union. The PA-SMEC seeks to promote decentralized and mutual savings and credit systems, like village banks, savings associations, credit unions etc. In addition to advising on an incentive-based policy and regulatory framework, the PA-SMEC has also developed a data bank, which is the only source of complete and reliable information with quantitative data on microfinance on the seven countries concerned. The Central Bank of Central African States (BEAC) has requested the ILO to expand this system to Central Africa, as well.

These statistical exercises must be supplemented with community and participatory data. The former must identify institutions and the existing infrastructure in which programmes operate. The former signals the needs and perceptions of beneficiaries of direct interventions.

Although Participatory Rural Appraisal (PRA) methods sometimes seek to establish absolute values their prime strength is in assessing relative values. These are especially useful in monitoring situations where policy impacts are assessed. Changes in inequality can be indicated by wealth ranking exercises; changes in livelihood activities and the intensity with which they are pursued can be examined through seasonal calendars and daily schedules; information on market changes (including prices) can be obtained from key informants; and intra-household inequalities can be explored through group discussions with women and by comparing calendars and schedules of men and women. It is unlikely that participatory monitoring could accurately track the full primary and secondary effects of macroeconomic and sectoral reforms. However, aspects of the consequences, such as relative changes in incomes and expenditures, may be assessed using PRA. Participatory techniques are useful in adding depth of understanding to the quantitative data collected by large-scale household monitoring surveys. An example is the trend in African Famine Early Warning Systems to incorporate socio-economic data derived from small-scale community monitoring techniques within traditionally 'technical' systems of crop and rainfall forecasting. This combination of quantitative and qualitative monitoring systems allows analysts and policy-makers to assess the impact of environmental changes (such as drought) on households affected by this change, and makes for timelier and better targeted interventions.

Durable and high quality employment is only obtained when there is a dynamic and competitive enterprise sector. Data on establishments is therefore as important as that concerning the population. In parallel to the proposals made on the supply side, an information system to assess the evolution of enterprises both in the formal and informal economy is required. The following steps could be undertaken to achieve such an aim:

· identify a minimal set of variables to include in a rapid establishment assessment questionnaire;

· use modern sampling techniques (possible through the development of clusters) to gather data on establishments;

· identify the periodicity of more full featured sample surveys to confirm the accuracy and the statistical validity of the indicators included in the rapid appraisal exercise;

· assist public authorities to set up user groups to determine the nature of the data that needs to be collected and to assist in the dissemination of the information thus collected;

· programme regular evaluations of the effects of policies on enterprise development; and

· develop and strengthen local capacity to gather statistics, process and disseminate them promptly.

This programme component will be developed and implemented in close collaboration with the ILO Action Programme on Labour Market Indicators.

2.2.4 Employment Intensive Infrastructure Programme (EIP)

The key to structural alleviation of poverty and to social progress is to promote employment-intensive growth and to bring employment concerns into the mainstream economic development and investment policies. Undertaken in collaboration with its tripartite Constituents (governments, employers' and workers' organisations), and through its extensive research, policy advisory work and technical cooperation programme, the ILO has developed an approach based on job creation, social protection and the promotion of labour standards.

EIP's strategy is based on bringing employment concerns into mainstream economic development and investment policies through the productive use of the poor's most abundant assets - labour, and the improvement of their access to basic social services and productive resources. Since investments in infrastructure and construction represent a large share of total public investment in developing countries (typically from 40 to 70%), they can be privileged means to directly create a large number of jobs for the poor, while important multiplier effects will generate additional employment opportunities for the local rural and urban economy and the domestic private sector.

Guidelines and tools are required to plan ahead the integration of employment considerations into these programmes. Furthermore, there is also a need for planners and practitioners to systematically examine new investment programmes in terms of employment, to adopt and apply methodologies that will lead to an in-depth knowledge of the effect on employment of new programmes.

The objectives of the programme aim at influencing policies to:

· create employment and improve working conditions;
· provide social and productive assets including the protection of environment;
· stimulate the emergence of the domestic construction industry and the gradual integration of local enterprises at the border of the informal/formal sector.

A wide variety of infrastructure programmes should be subject to these policies; they include:

a) single-sectoral infrastructure programmes (e.g. rural road construction and maintenance, irrigation, etc.);

b) multi-sectoral infrastructure programmes (integrated development programmes, social funds), focussing on the needs of local communities in rural and urban areas:

· decentralized rural works programmes, focussing on needs of local communities comprising productive and social infrastructure (rural water supply and sanitation, health centres, schools, small-scale irrigation, rural transport, soil and water conservation, afforestation);

· urban works programmes in slums, informal and peri-urban settlements (water supply and sanitation, drainage and sewerage systems, solid waste disposal, streets and footpaths, housing, local markets);

c) special emergency programmes launched to assist in the recovering of people affected by natural cataclysms (droughts, flooding etc.) and man-made disasters (civil war etc.). This encompasses cooperation with food-for-work programmes in food-deficit countries and inflationary economies.

In order to accomplish these objectives the following must be achieved:

· Reinforce the capacities of the public sector, at ministerial and decentralized level, in order to conceive, plan and manage the launching of employment-intensive infrastructure investment programmes using local resources which in addition favour the creation of small enterprises in rural and urban areas;

· Reinforce the capacities of the private sector to conceive and operate infrastructure and building works using employment based technologies and local materials;

· Increase the share of employment intensive infrastructure works in the overall investments in the country and improve the quality of the works;

· Improve the infrastructure sector's working conditions.

The ultimate target group of EIP are the un- and underemployed as well as the urban and rural poor. However, the programme will benefit all ILO constituents and thus the donor community as well. It will bring advantages to:

· employers: access to public markets; transparent bidding process; cost of social improvements covered in the bid; effective payment systems; opportunity to create/expand employers' associations;

· workers: job creation; improved working conditions; opportunity to create/expand and empower workers' associations;

· governments and donors: better fulfilment of employment and poverty objectives; higher incomes and standards of living; improved income distribution; improved balance of payments; domestic market development, e.g. through inter-sectoral linkages; a strengthened construction sector; more value for donor's/government's investment funds; improved governance and credibility;.

· labour ministries: concrete basis to collaborate with influential technical line ministries; a policy tool to introduce social objectives into economic (investment) policies; strengthening of tripartite social dialogue.

EIP will promote the establishment of national employment and investment policy units to strengthen and coordinate investment and employment policies, which:

· improve contractual procedures, collective bargaining arrangements, contracting systems, as well as local governance,

· promote cooperation between ministries, decentralized governmental structures, the private sector, the social partners, the donor community, etc.

These national policy units should:

a) influence both sectoral and area-based multi-sectoral investments so as to optimize their impact on employment and income generation through:

· raising the awareness of decision-makers at country level and at donor level in the promotion of employment strategies in labour-intensive-based rural and urban infrastructural programmes;

· providing programme planners and designers with the necessary tools and training to appraise programme proposals in terms of employment and poverty alleviation;

b) facilitate employment-intensive infrastructure programme implementation through:

· promoting the development, of the local construction industry by creating fair conditions and simplified contractual procedures for local entrepreneurs to compete for public and private works;

· enhancing the capacity of the private sector (small contractors, consulting engineers) through practical training in management and in several technical areas;

· providing decentralized institutions with planning tools, guidelines and training to strengthen their technical and managerial capacity;

c) adjust, on a continuous basis, policies and project implementation arrangements to the changing socio-economic and political environment through:

· monitoring and evaluating ongoing programmes to improve procedures, targeting, training, remuneration policies etc.;

· undertaking of comparative studies to adjust and refine the objectives of employment-intensive programmes at national and regional level.

d) stimulate labour and employment ministries to promote fair employment conditions for labourers in employment-intensive programmes, particularly for casual labour:

· elaborating practical guidelines on the application of at least minimum levels of relevant labour legislation (minimum wages, protection of workers etc.);

· assisting labour administrations to implement these guidelines constructively.

e) promote the orientation of education towards the use of local resources:

· integrating the concept of local resources in the curricula and training programmes of students at technical institutes and universities;

· provide start-up assistance to young professionals to facilitate their integration in the labour market (internships, employment subsidies, etc.);

The EIP activities would support the establishment and operation of those policy units through:

· missions to assist governments to develop employment-intensive investment policies;
· advisory missions to set up national employment and investment policy units;
· missions to advise governments and policy units on national sensitization workshops;
· development of methodologies to estimate employment generation and use of local resources of projects and develop criteria to orient them towards employment programmes

To implement the above strategy, which consists to a large degree of policy advice at up-front level and practical support at implementation level, an increased use will have to be made of regional institutions and programmes promoting this approach.

Multidisciplinary teams, which can provide policy and technical support services, have been set up by the ILO in Abidjan, Addis Ababa, Cairo, Dakar and Harare, with an additional Team planned for Yaounde from 1998. For the road sector, additional support is provided by ASIST, a project based in Harare and funded by the Government of Norway, SIDA and the Swiss Development Corporation. It provides advisory support to labour-based road projects in English-speaking countries in East-and South-African countries. Moreover, it provides information and training to other African countries. A similar project to assist Social Funds and other labour-based programmes in French-speaking West-African countries has been formulated with AFRICATIP, the regional association of AGETIPs, for which additional funding is required. Courses in the technical and social aspects of employment-intensive technologies are being integrated in E.I.E.R and E.T.S.H.E.R., two training institutes based in Ouagadougou for engineers and senior technicians.

2.2.5 Policies and programmes to enhance women's employment

Programmes should focus on the integration of the gender perspective in the reform of both the macro-economic framework, and of the legal and policy environment, on packages for enlarging opportunities, improving the productivity and terms of employment in the two major sectors in the African economy, on a proactive outlook at future opportunities and aims at anticipating and preparing women to take advantage of wage employment opportunities in the new growth sectors, and, finally, on a targeted approach for providing an effective outreach and support measures to particularly disadvantaged groups of women workers and/or girls, children and adolescents.

It is necessary to encourage and support national initiatives for the review and reform of policy and legal frameworks and for the promotion of tripartite dialogue with the participation of employers' and workers' organisations, and women's organisations, on desirable and feasible reform strategies. The following actions need to be carried out in order to achieve this objective:

a) establish and/or support national task forces for the review of constitutional provisions, laws and regulations regulating property rights and employment (family code, employment acts, etc.) and identification of problem areas;

b) examine the conditions for ratification of relevant ILO standards;

c) review of the efficiency of enforcement mechanisms;

d) adopt and implement of an action plan, including:

· specific reform priorities, strategies and timetable;

· appropriate and vigorous information campaigns on rights of women, using media and other means for an effective outreach;

· support to legal aid agencies and para-legal training schemes.

A priority in this field is integrating a gender perspective in the policy agenda on economic reform and adjustment policies: encouraging and promoting a national debate on the structural adjustment policies, with the full participation of all actors involved including the Government (line agencies and local government), employers' and workers' organisations, women's organisations and other intermediary organisations.

To ensure that women own-account farmers have equal access to the opportunities and benefits offered by improvements and progress, measures must be taken to enhance gender equality in extension services, technology dissemination, credit provision, and marketing. The following elements may be considered:

a) women's organisation: strengthening existing organisations, support to alliances among women's groups, support to search for collective solutions to common problems.

b) extension services: gender sensibilization of extension networks; improvements or changes in methods of work to take account of women's situation, needs; re-training or skills upgrading of extension agents with emphasis on practical experiences and contact with women farmers.

c) technology dissemination: with focus on farming and drudgery-reducing household technologies; mobile technology dissemination units; mobilization of local institutes and organisations engaged in agricultural technology research and development; encouraging direct contacts of women farmers with sources of technology.

d) access to and control over financial resources: support to and replication of local and/or regional best practices and successful mechanisms of savings mobilization and credit provision which may include in-depth assessment of current practices in the specific area, upgrading management practices, infusion of additional funds, linkages with other organized credit facilities with bigger capital base, improvements in operational modalities; setting up a credit facility if necessary taking into account successes and failures of credit schemes in the country or region; workshop among credit providers to take stock of operational modalities and progress in the field of financial services for small rural borrowers.

e) marketing: assessing access to new marketing institutions; re-orientation of women farmers; perhaps women's own mechanism of participating more effectively in the market.

f) adult literacy: this will reinforce impact of interventions in extension services, technology dissemination and credit provision.

To improve income-earning opportunities in the informal sector, by strengthening women's entrepreneurship in urban areas and upgrading women's employment in the informal sector, the following measures should be considered:

a) workshops and training courses for support institutions: mainstreaming gender into existing government and non-governmental micro and small entrepreneurship programmes; assessment of the policy environment operational modalities, outlining further directions; review of legal and regulatory framework affecting the informal sector; and establishing concrete implementation plans, including timetable assigning responsibilities and monitoring progress.

b) small business service centres: set up and managed through collective efforts of intermediary organisations and/or women grassroots organisations in areas where informal sector activities are concentrated.

c) skills training: taking into account lessons from previous experiences with regards to non-formal training for women, improvements in ongoing training programmes and training systems to give women better and equal access to training services in emerging economic opportunities; or innovative training schemes; linkages with new developments in and sources of technology. (Section 2.2.1., deals with this issue in particular).

d) credit assistance: either support ongoing local, effective savings and credit mechanisms through technical assistance, management training, infusion of funds or improvements in operational modality; or establishment of a credit scheme taking into account lessons from previous experiences with different types of credit schemes, (Section 2.2.2.ii, deals with this issue)

e) adult literacy classes, including functional literacy and numeracy;

f) women's organisation: promoting organisations of women workers in the informal sector, through training for capacity building, support to collective efforts and to the development of alliances and networks; para-legal training.

Where the private formal sector is relatively important, where manufacturing is relatively significant, and where private investment has begun to show signs of revival and growth it would be necessary to enhance women's opportunities in private sector wage employment through:

a) diversified skills training for women: reform of training systems (organisation and delivery of vocational skills training) of institutions in capital cities, major urban centres, and near or around EPZs, to make them suitable and responsive to women's needs and to marketable skills in the context of reforming economies; re-orientation of management and instructional staffs; close collaboration with employers in the private sector and in EPZs, who are in the best position to determine skills demand, to offer on-the-job training, and to open up job opportunities for women; improvements in placement or manpower offices; information dissemination for women.

b) export processing zones: consideration of pioneer measures to enhance productivity of workers such as on-site services (e.g. canteen, health and child care services); observance of labour standards; workshop for discussions and exchange of experience on best and common practices in EPZs.

On the whole, this programme component would be closely interlinked with the ILO’s International Programme on More and Better Jobs for Women.

2.2.6 Policies and programmes for job creation through rural development

Rural economies of the SSA countries can not have healthy growth unless the rest of the SSA economies achieve robust growth. Policies for employment-intensive growth of the rural economy must be designed as an integral part of the strategy of growth for the overall economy.

To ensure a high output elasticity of employment it will be necessary to adopt several measures that will provide additional impetus to equity. An important is that the total package of policies will have a far greater effect on output and employment than the sum of the effects of individual policies in isolation. This is because the package includes clusters within which policies are mutually reinforcing, rendering these clusters into virtuous circles.

9 A regional research programme in several French - and English speaking African countries is being set up to review the impact of financial sector liberalisation on the access of SMEs and microenterprises to bank services. This programme will be steered by committees composed of Central Banks, commercial banks, credit unions, business associations and other user groups; the actual research will be carried by local research institutions in partnership with Dutch and other European agencies.

· Land is the primary resource in rural SSA. Improved access to productive resources is the key to the enhancement of productive employment. In many countries peasant commitment to land improvement can be enhanced greatly by replacing the informal access to land by proper land titling. Where redistributive land reform is not feasible, progressive land tax and other measures should be implemented to discourage large landowners from keeping land unused for speculative purposes and to encourage them to use it for productive purposes.

· The SSA countries should diversify their agricultural exports in the direction of goods for which demand is more income elastic. It is highly unlikely that private flows into SSA will rise much in the near future. Thus, the SSA countries will however continue to require a substantial inflow of external resources. Since the prices of their exports are unlikely to return to the levels prevailing in the 1970s and the early 1980s in real terms, these countries will need to be “compensated” until they are able to develop new exports. Examples of such goods are cut flowers and fruits and vegetables.

· The development of new, export-oriented, farm products and the promotion of rural non-farm activities may be treated simultaneously because they need similar incentives and resources. The identification of products is the beginning. This task is clearly beyond the ability of individual farmers and small-scale rural entrepreneurs. Agricultural research systems must take the lead, in association with public or private trading agencies, in identifying these products, in providing credit and in promoting prospective entrepreneurs with assistance in design and marketing services.

· The rural economy must receive adequate reward for its effort. The first major requirement is to abandon the age-old system of imposing unfavourable producers' price on the farmers. A second area in which incentives need adjustment is the discriminatory taxes, tariffs and controls that harm smallholders and obviate the adoption of labour-intensive techniques of production.

· Peasants must have improved access to basic implements, improved seed and fertilizer. The supply of these inputs must be increased substantially and their absorption must be facilitated by peasants' access to credit. Increased access to basic inputs must be complemented by the provision of extension services.

· The improvement in infrastructure with emphasis on roads and irrigation is crucial to the accessibility of technology and its benefits.

2.2.7 Job creation through cooperatives in Africa

Cooperatives have a considerable employment creation potential. However, very little of this potential is presently being used in Africa, because:

· governments and donors consider cooperatives primarily as an instrument for the delivery of pre- and post production services to (already self-employed) farmers, and not as a means to create jobs;

· labour-intensive types of cooperatives (workers' cooperatives, labour contracting cooperatives, ESOP-type enterprises, social service cooperatives, cooperative networks in the informal sector etc), which are very successful in other parts of the world, are virtually unknown in Africa;

· social partners are focussing on the promotion of cooperatives that provided services to employed people instead of promoting cooperatives that create new jobs.

To change this situation, governments and development partners must reorient their cooperative development policies, adapt their cooperative laws and create a cost-efficient system for the delivery of adequate technical and financial support services to job creating cooperatives. The following actions have to be carried out to achieve this:

At regional and sub-regional levels:

· Reorient the support activities of regional cooperative organisations (ICA, ACCOSCA) towards job creation;

· Put cooperative development on the agenda of sub-regional economic entities (SADC, PTA, UDEAC, CEEAC etc.).

At national level:

· bring cooperative development policies and cooperative acts in line with democratic principles, the market economy and universal cooperative principles, and include special provisions for workers' cooperatives and worker-owned enterprises;

· organize a tripartite dialogue on job creation through cooperatives at national level;

· integrate cooperative promotion into other sector development policies, in particular the employment policy;

· include the option of workers' takeovers as an alternative to the privatization or liquidation of para-statal agencies or state companies;

· create, in collaboration with national NGOs, trade unions and government units, a comprehensive service infrastructure that provides cooperatives with the following services:

- assistance in administrative procedures for the establishment of a cooperative for self-employment;

- technical advice and training in product design and production technology;

- managerial advice and management training;

- marketing assistance, including export marketing;

- access to capital through a guarantee fund and the establishment of mutual guarantee associations;

- advice and assistance in organizing social services for members;

- advice and assistance on the establishment of secondary organisations, such as unions of workers' cooperatives.

At meso-level (support institutions):

· improve the technical capacity of support structures that are part of the aforementioned service infrastructure;

· promote the vertical integration workers' cooperatives and similar organisations, and the horizontal integration of workers' cooperatives and other types of cooperatives.

At micro-level:

· provide, through the service infrastructure and the collaborating support organisations, adequate technical and financial support services to workers' cooperatives and similar organisations.

(introduction...)

Jobs for Africa Poverty Reducing Employment Strategies for sub-Saharan Africa

Project Number

RAF/97/038/A/01/11

Project Title

Poverty Reducing Employment Strategies for sub-Saharan Africa

Executing Agency

ILO (International Labour Organization)

Operational Starting date

January 1998

ACC/UNDP Sector

Development Strategies, Policy and Planning (0210)

Project Summary: To design and adopt poverty reducing employment strategies based on investment led macro-economic policies that are explicitly targeted to achieve sustained growth and that are coherent at the micro-, mezzo-, and macro levels. This project will build the national and regional capacity of government officials and of civil society, including employers and workers through the creation of an active national network that will assess investment policies and promote those that have the greatest effect on employment and poverty.

Contributing agency

1998

1999

2000

Total

UNDP Line 1.2 (RAF)

1,147,300

1,181,400

667,200

2,995,900

AOS SOF 03

114,730

118,140

66,720

299,590

ILO (Parallel Financing)

75,000

75,000

75,000

225,000

Total

1,337,030

1,374,540

808,920

3,520,490

On behalf of:

Signature

Date

Title



Executing Agency

Samir Radwan


Director, POLDEV, ILO



UNDP

John Ohiorhenuan

Chief Economist and

Chief PRPD, RBA, UNDP

Introduction

1.1 The promotion of employment intensive growth is one of the major commitments made by the 117 Heads of States and Governments, including many from Africa, at the 1995 World Summit for Social Development at Copenhagen. The Summit adopted the goal of eradicating poverty “as an ethical, social, political and economic imperative of humankind,” and called for the promotion of the goal of full employment as a priority of economic and social policies. Countries were called on to put the eradication of poverty and the creation of employment at the centre of strategies and policies of governments. Together with the expansion of productive employment, self-employment and other forms of work, the eradication of poverty constitutes an indispensable foundation for the realization of people-centred sustainable development.

1.2 In follow-up to the World Summit on Social Development, UNDP has been mandated to embark on a wide-ranging programme of poverty eradication. ILO has been mandated to lead a UN inter-agency task force to facilitate the implementation of the Summit Declarations on Employment and Sustainable Livelihoods. The Programme on Employment Generation and Poverty Reduction - “Jobs for Africa”-(JFA) of the UNDP and the ILO is being implemented in support of the Copenhagen Declaration. It also gives effect to a further commitment of the Social Summit, which called for special global attention to be given to the acceleration of the economic, social and human resource development of Africa and the least developed countries. The “Jobs for Africa” Programme is also being implemented in support of the UN System-Wide Special Initiative on Africa.

1.3 The present proposal is the result of a major effort to develop a policy framework10 that provides analysis and general guidance for a consistent, multi-sectoral, employment based poverty eradicating strategy for the sub-Continent. A process of wide consultations took place over the past year to ensure ownership by countries of SSA of the programme proposed. In particular, extensive consultations were held in five sub-Saharan countries (Cameroon, Mauritius, Senegal, Uganda and Zimbabwe) to review the pertinence, and usefulness of, and interest in the policy prescriptions proposed in the policy framework. Besides continuous exchange with ILO field structure in Africa, the preliminary conclusions of the Jobs for Africa Programme were the main item of the Agenda of the Fifth Meeting of the African Employment Planners (Pretoria, 23-27 January 1997). The Programme was also presented to the ACC Steering Committee on the UN Special Initiative for Africa (Geneva, 7 April 1997).

10 ILO: A Policy Framework for an Employment-Intensive Growth Strategy, Geneva, August 1997.

1.4 The policy framework document is a synthesis of several studies covering different aspects of the performance of African economies during the past two decades. The eleven background studies that were completed are:

· Macroeconomic Reform and Employment: An investment led strategy for structural adjustment in sub-Saharan Africa (K. Griffin)

· Macroeconomic Policy for Employment and Incomes, with reference to Africa South of the Sahara (J. Weeks)

· Reversing the Decline of Output and Productive Employment in Rural sub-Saharan Africa (A. Khan)

· Enterprise Development and Job Creation in Africa (F. Lisk)

· Employment Generation for Poverty Reduction in sub-Saharan Africa (T. Tessem et. al)

· Cooperative Development: Jobs for Africa Component Report on Cooperatives (J. Schwettman)

· Access to Financial Services (B. Balkenhol)

· Skills for Productivity and Employment in sub-Saharan Africa (T. Alfthan)

· Enhancing Women's Employment in Africa (A. Berar, A. King)

· Intation des Groupes Dvoris(B. Ndiaye)

· Employment and Poverty Monitoring (A. de Haan)

1.5 The underlying intellectual argument behind the work that will be accomplished by this project is provided in the policy framework quoted above, and is briefly summarised in the next section.

Promoting poverty-reducing employment on the basis of investment-led growth

1.6 The record of structural adjustment in sub-Saharan Africa has generally been associated with economic depression, widespread unemployment and underemployment and massive poverty. Few countries have been able to resume growth on the basis of conventional stabilization and adjustment policies, and where growth has occurred, it has had little impact on reducing unemployment and poverty. Macroeconomic policies must be reoriented to increase growth and to make its pattern more pro-poor.

1.7 This implies that structural adjustment needs to be reformulated on the basis of an investment-led growth strategy that is geared to promote poverty-reducing employment. Investment has stagnated in much of the continent while the labour force has been growing rapidly. As a consequence, capital per worker and labour productivity have declined substantially and real labour incomes have followed suit. A particularly severe problem has been the decline in labour productivity in agriculture and the drop in food output per capita. Many workers have been driven into the urban and rural informal sectors where labour productivity and incomes are low. In order to reverse these adverse trends, a three-pronged approach is called for to: 1) boost investment and improve its allocation in order to stimulate growth, 2) reorient the pattern of investment in order to augment employment and reduce poverty, and 3) ensure that expenditures reach the most needy segments of the population.

1.8 The growth of the informal sector in both rural and urban areas in many countries signals that there is a great deal of surplus labour that is not being put to productive use. Many workers are trapped in low-income jobs or are working only part-time, and some have simply dropped out of the labour force. There is thus considerable potential to mobilize underemployed and idle labour to boost investment by engaging them in public-sector infrastructure projects - building rural roads, bridges, irrigation works, schools and clinics.

1.9 In many instances, investment can take the form of directly applying labour to build up physical or natural capital - digging a drainage canal or terracing a field. Thus, a significant proportion of public investment could be usefully re-directed to labour-intensive projects. And these projects could contribute to improving the distribution of income by being designed to channel their direct and indirect benefits to the poor. The labour intensity of the projects and the wages they offer would help to screen out the non-poor and provide employment for those who most need it. In addition, the projects could be located where there are high concentrations of the poor that can benefit from the new infrastructure. A key component of such projects would also be the active participation of local communities in deciding what infrastructure would be of greatest benefit to them.

1.10 There is already considerable experience to suggest that such infrastructure projects need not be expensive. The main expense is involved in the mobilization of low-skilled labour. In order to moderate expenses and enhance the projects' impact on poverty, local contractors can be hired and local materials used. The usual practice is to hire large contractors that utilize relatively capital-intensive construction techniques and expensive imported materials.

1.11 Labour-intensive infrastructure projects are an efficient, cost-effective way to undertake public investment. This is important since the pressing problem that has to be addressed in sub-Saharan Africa is not only how investment is allocated, but the fact that it has collapsed in the wake of structural adjustment programmes. A priority of public policy is to revive it. This involves raising additional public revenue to finance public expenditures. The widespread call to “shrink” the state has exacerbated the problem of insufficient revenues. The heavy burden of foreign and domestic public debt have also restricted the allocation of resources to investment.

1.12 The real debate in sub-Saharan Africa is not over the size of the state, but its proper role. Where state intervention is absolutely essential is in providing social and physical infrastructure: this is a precondition for stimulating private investment. The market mechanism does not function efficiently where positive or negative externalities exist - such as in the provision of public education or health or the protection of water, land and forest resources. When public investment is geared towards such items, it is complementary to private investment.

1.13 Not only must additional revenue be raised to finance public investment, but also public expenditures must be re-allocated away from current consumption and to investment, and the nature of investment must reoriented to foster employment, particularly for the poor.

1.14 The critical importance of public investment in reviving growth in sub-Saharan Africa calls for renewed emphasis on reviewing “public investment programmes” to ensure that they are pro-growth, pro-employment and pro-poor. Properly designed, public investment can be powerful engine of economic and social progress.

1.15 Public investment can play a decisive role in reviving growth, but private investment will play the preponderant role in sustaining growth. But the private sector is starved of capital. An inefficient capital market in many sub-Saharan 'African countries has hampered broad-based investment. Many low-income groups - such as informal-sector entrepreneurs, small farmers, landless workers, women and youth - have restricted access to credit. Key reforms are necessary in public and private financial institutions in order to provide adequate levels of credit to the self-employed and micro-enterprises. These initiatives would not only stimulate growth, but also increase employment, particularly for the poor.

1.16 There are thus two major prongs to an investment-led growth strategy that is geared to stimulating poverty-reducing employment: 1) concentrating public investment on labour-intensive projects that employ the poor and are located in poor areas, and 2) reforming capital markets to provide ample credit to the poor to finance self-employment and micro-enterprises in both the urban and rural informal sector. The aim is to increase the productivity of the population in the informal sector by building up physical, human and natural capital leading to a rise in the quality of their employment. Public infrastructure and credit programmes can do much to reduce poverty, but alone they command inadequate resources. Hence, it is important that they be designed to have the greatest multiplier impact on stimulating private investment - private investment in agricultural production, in rural off-farm activities, in labour-intensive manufacturing. Public investment and credit can help provide a structure of incentives that guides private investment into economic activities that promote employment that is not only broad-based and productive, but also disproportionately benefits the poor.

1.17 A number of building blocks are needed in order to provide a set of consistent and mutually reinforcing sets of poverty reducing employment creating policies. These are:

· Deepening the process of economic reform to go beyond stabilization and achieve sustained economic growth through sound macroeconomic policies for increased investment.

· The sectoral composition of growth should be such as to maximize employment since growth by itself is a necessary, but not a sufficient, precondition for equity.

· For the poor to benefit from growth, mechanisms are needed to ensure their access to employment and increased returns to their labour.

· Gender issues need to be integrated in policies at various levels.

· Public policies are crucial to provide a stable legal framework, improve human capital and invest in infrastructure in order to crowd-in private investment.

· Assistance for capacity building in Africa should replace the traditional project-based aid in official development assistance.

1.18 This project will seek to increase the capacity in Africa to adopt coherent and effective poverty reducing employment policies by strengthening advocacy groups, involving local expertise in the analysis and implementation of programmes, promoting the adoption of adequately targeted policies and interventions and reinforcing monitoring and evaluation mechanisms to improve the assessment of policies.

2.1 Problem to be addressed: the present situation

2.1.1 During the 1960s, in the immediate post-independence era, growth in sub-Saharan Africa was encouraging, human development indicators improved substantially, incomes and general well being increased and poverty began to decline. The import substituting industrialization strategy that was adopted, however, soon reached its limits, particularly in the smaller countries, and in the 1970s per capita incomes stagnated and began to decline. By the 1980s most of sub-Saharan Africa found itself in the midst of a severe economic crisis. The rate of growth, output per head, and average incomes declined drastically. As a result, inequality has probably increased, and the proportion of the population living in poverty has risen. It is projected to rise from about 48 per cent in the early 1990s to about 50 per cent by the end of this decade. Some countries have performed better than others, and in a few countries performance has been good, but seen as a whole, the economies of sub-Saharan Africa compare unfavourably with the rest of the world.

2.1.2 The share of SSA in world GDP about 1.3 per cent in 1993; its share in world exports was as low as 1.7 per cent in the same year, with exports being dominated by primary products (76 per cent of total); SSA has not succeeded in attracting foreign investment as its share in net FDI amounted to 2.8 per cent in 1992.

2.1.3 Although there has been a marked improvement in GDP growth rates since 1992, the development of productive employment has not kept pace with increased labour supply. The labour force has been growing at about 3 per cent annually while wage employment has been declining or stagnating. Unemployment and underemployment rates are increasing rapidly, with average urban unemployment rates on the continent having almost doubled over the past 15 years, to over 20 per cent and projected to approach 30 per cent by the year 2000, unless determined action is taken to reverse present trends. The magnitude of the future employment challenge facing the continent is further gauged by the number of new entrants into the labour markets every year. It is estimated that the African economies must provide jobs for 7.3 million persons in 1997. In ten years time, it will need to find employment for 10.1 million annually.

2.1.4 The poor impact of macroeconomic reforms on African economies can be explained in terms of low investment, sluggish growth in major sectors especially agriculture, lack of enterprise development and extensive informalization of the economy, and underutilisation of labour. Data on the annual rate of growth of investment in 31 sub-Saharan countries during the period 1980-1994 shows an average as low as 0.3 per cent a year, although the average hides important differences among countries. Thus, Uganda, Namibia and Lesotho have experienced rates of growth of investment in excess of 7.0 per cent a year; and in Mauritius investment has grown by 10 per cent a year. At the other extreme are five countries - Zambia, Cd’Ivoire, Togo, Nigeria and Congo - where investment has declined between 6.8 and 10.4 per cent a year. Moreover, in 20 out of the 31 countries, investment is growing less rapidly than total output, implying a decline in the investment ratio in about two-thirds of the countries of sub-Saharan Africa. In 11 countries the investment ratio is rising.

2.1.5 If Africa is to avoid continued marginalization the process of macroeconomic reforms has to be deepened beyond present structural adjustment and stabilization programmes, in particular by launching investment-led growth strategies that maximize employment and reduce poverty, as proposed in this project.

2.1.6 The role of an investment-led strategy in reducing the adverse impact of macroeconomic reforms on employment is aptly demonstrated by the example of the Mauritian economy, where growth was associated with a substantial increase in employment based on what became known as the three pillars of the economy: sugar, textile and tourism sectors which were quite labour intensive. Economic growth of 8 per cent per annum in the mid-80s and 5.5 per cent in 1995/96 has been associated with major structural changes and economic diversification. The economy has been transformed from a mono-crop economy based on sugar to a diversified structure where tourism and export-oriented employment-intensive manufacturing industries have become the dynamic forces, with off-shore financial and information services playing an increasing role. Foreign direct investment, and a substantial increase in domestic savings and investment, have played a crucial role in this process. The rate of investment in Mauritius has been significantly higher than most other countries in the region, with gross domestic fixed capital formation representing on average about 30 percent of GDP over the last two decades, and the investment and savings ratios in excess of 28 per cent and 23 per cent on average respectively for the 1990s. The existence of a vibrant democracy; good governance; close collaboration between government and the private sector; and a harmonious industrial relations climate in Mauritius, have also been important.

2.1.7 In most of the other African countries, even where the economies staged commendable recovery on the implementation of macroeconomic reforms, the increase in investment and its structure were not adequate to prevent an increase in unemployment. For example, in Zimbabwe, the reforms in terms of performance of the economy have been less successful than expected. The growth rate of GDP in the 1990s (at 2.5 per cent) was less than the 3.6 per cent per year achieved in the 1980s. One explanation is that gross fixed capital formation, which rose in the early years (1990-1993) to about 21 per cent have subsequently fallen to its pre-ESAP (the 1990's economic structural adjustment programme) levels. While in principle, deregulation, liberalisation of the foreign exchange market and access to imports, have provided a more enabling climate for domestic investors, some rationing of credit markets seems to make it difficult for newcomers to acquire the financing that is necessary if they are to avail themselves of the new opportunities. Zimbabwe's oligopolistic financial sector probably makes this constraint worse. This reduces the number of new investors, but may not significantly constrain the expansionary investment of existing firms.

2.1.8 Because capital markets are underdeveloped in sub-Saharan Africa, private sector investment is poorly allocated. There are also major problems with the sectoral allocation of credit. Most people in Africa do not have, in fact, access to formal sector credit at any price and large sectors of the economy are starved of finance. Small and medium sized urban businesses have much difficulty obtaining credit; agriculture is under-supplied, apart from large plantations and ranches, and small farmers obtain virtually no credit from banks. The pace and efficacy of structural adjustment would be much increased by improvements in the functioning of capital markets in Africa.

2.1.9 The growth of productivity is linked closely to infrastructure development. Therefore, the degradation of productive and social infrastructure in combination with the lack of essential services, which were traditionally provided by the government, are serious constraints to the productivity and profitability of investments. The nature of infrastructure put in place, and the mechanisms by which they are built, also determines whether growth does all that it can to create employment for the poor and reduce poverty. Whereas Africa is primarily a rural continent and most of the poor live in rural areas, it has the highest growth rate of urbanization in the world and infrastructure investments have important employment implications in both rural and urban areas.

2.1.10 The other important link in the accessibility of technology and its benefits is the improvement in rural infrastructure with emphasis on roads and irrigation. The maintenance of existing roads and rural links with road systems must be improved. There should be an expansion in irrigation facilities with a clear focus on an improvement of the amount of cropped land in land-scarce areas and on complementing improved technological packages. The economy of rural SSA has suffered because of its undiversified production structure. The predominance of traditional agricultural exports is a principal manifestation of this phenomenon. Another is the relatively small and possibly declining role of rural non-farm activities. A change in these trends must be the defining characteristic of the future strategy of development for rural SSA.

2.1.11 It is against this background that this project seeks to contribute to the reversal of the present sub-Saharan African situation which has been largely characterized by public investments concentrated in expensive capital intensive projects that employ little labour and have negligible direct impact on reducing poverty. This project will therefore attempt to build African capacity at the African regional, national and local levels to design and to implement investment-led strategies of development that sets the primary task for macroeconomic policy as increasing investment and improving its efficiency. The project will seek to advocate ways in which public investments can be restructured to impact more positively on poverty-reducing employment. The project strategy is set out in greater detail in section 3.

2.2 Expected end of project situation

2.2.1 Revamped process of macroeconomic reform that goes beyond structural adjustment and stabilization programmes, and results in investment-led growth strategies that maximize employment and reduce poverty.

2.2.2 A widened pool of sub-Saharan experts in the field of poverty reducing employment strategies.

2.2.3 Improvement in the macroeconomic environment that is consistent with a significant rise in poverty-reducing employment opportunities in both formal and informal sectors.

2.2.4 Creation of a climate more conducive to increased domestic and foreign investments, formation of viable capital markets and expanding African entrepreneurship.

2.2.5 A steady increase in productive employment that keeps pace with increased labour supply.

2.2.6 A significant reduction in the proportion of the population living under the poverty line.

2.2.7 Sustained increase in productive investment which contributes to increased productivity of African enterprises, and their capacity to face the challenges of globalization and increased competition in international markets.

2.3 Target beneficiaries

2.3.1 The majority of the people who work outside the modern sector and are engaged in low productivity economic activities, namely subsistence agriculture and urban informal sector.

2.3.2 The proportion of the population living in poverty, which is increasing, and is projected to rise from about 48 per cent in the early 1990s to about 50 per cent by the end of this decade.

2.3.3 Unemployed youth whose situation remains critical with a majority of school leavers unable to find productive employment.

2.3.4 Women who are over represented among the unemployed, and are more often involved in marginal and poorly remunerated activities.

2.4 Reasons for assistance from UNDP

2.4.1 As a follow-up to the World Summit on Social Development, ILO has been mandated to lead a UN inter-agency task force to facilitate the implementation of the Summit Declarations on Employment and Sustainable Livelihoods. As a member of the UN family, the ILO is working fully along with other agencies in key areas of the UN Initiative falling within ILO competence.

2.4.2 UNDP has been mandated as the lead UN Agency for Poverty Reduction and is involved in supporting the preparation of National Poverty Strategies and Programmes in many African countries. The present programme will complement the work in this area by focussing on poverty-reducing employment strategies.

2.4.3 The present programme will also complement UNDP's effort to promote Long-term Perspective Studies under its Futures Programme by concentrating on the long-term perspectives on poverty-reducing employment programmes.

2.4.4 Poverty-reducing employment strategies form part of UNDP's advocated Sustainable Human Development (SHD) strategy.

2.5 Special considerations

2.5.1 It is estimated that 50 per cent of women are poor as compared to 35 per cent of men. Even then they are responsible for up to 80 per cent of food production in sub-Saharan Africa. Their ability to escape from poverty is more highly constrained than men's by the burden of unpaid labour, heavy reproductive responsibilities, more limited labour market opportunities, fewer labour assets in terms of education and skills, and socio-cultural biases limiting labour market participation. Official labour force participation rates are lower for women than for men in every country. Several factors restrict women's access to training. Among others, fewer girls than boys attend school and those who do tend to study less technical subjects than boys. The formal, wage employment sector, including public and parastatal sub-sectors, has been a limited source of employment in the region, and has been dominated by men. Given the limited opportunities in formal (wage) employment, self-employment in small-scale businesses has become, next to agriculture, the most common form of women's labour force participation. In African towns and cities, women represent a large portion of the self-employed in the informal sector. Arising from the above, a policy framework aimed at generating employment for poverty reduction, has emphasized the importance of increasing more productive employment opportunities for women in all spheres of activity but especially in agriculture and rural non-farm activities.

2.5.2 Youth unemployment also remains critical with a majority of school leavers unable to find productive employment. Women are also over represented among the unemployed, and are more often involved in marginal and poorly remunerated activities.

2.5.3 Apart from continuing concern with the instability in the world markets for the primary commodities which provide the bulk of its export earnings, the African continent is now faced with other major challenges to which it must respond if it is to reverse the trend towards marginalization. In particular, it must respond to the problems posed by the processes of liberalization and globalization, as well as the proliferation of regional economic blocs, if it is to take advantage of good opportunities for employment creation and poverty reduction through increased exports and foreign investment.

2.6 Coordination arrangements

2.6.1 The programme has been prepared in close consultation with other UN Agencies and the national governments. The process of consultation included the visit of ILO staff members and ILO/UNDP consultants to selected African countries to test the applicability of the programme framework to the actual experiences of those countries. The process involved wide consultation with relevant government Ministries and agencies, employers organizations, labour unions and NGOs. Activities at the national level will be closely coordinated with the UNDP Resident Coordinator, the ILO’s Country Area Offices and the relevant multidisciplinary teams and the local FAO and IFAD representatives.

2.6.2 The project activities will be coordinated with other relevant activities relating to the implementation of the recommendations of the World Summit for Social Development at Copenhagen, as they pertain to Africa, the UN Special Initiative on Africa, and the regular UN system country and regional programmes.

2.6.3 The activities of this project will reinforce and promote other national activities to expand poverty reducing employment programmes. The creation of the national network and the preparation of the reports on the employment impacts of investment policies must be done in close cooperation with existing employment promotion or labour-intensive investment programmes at the national level. If such programmes do not exist, experts should explore the possibility of replicating the experiences of, for example, Lesotho or Senegal in this respect.

(introduction...)

3.1 The broad aims of this project are to:

3.1.1 Advocate the importance of directing investment towards employment creating and poverty reducing investment;

3.1.2 Build and/or strengthen their capacity at the regional, national and local levels to design investment-led growth strategies that generate more and better employment opportunities, especially for the poorest groups and regions thereby leading to a faster pace of poverty reduction over time;

3.1.3 Promote local labour intensive, productivity and enterprise supportive investment that responds to the needs of the poorest segments of the population; and

3.1.4 Explore mechanisms that ensure coherence between the policies adopted at the national and regional level and the specific interventions carried out at the local level.

3.2 The implementation of this broad strategy is centred on supportive action principally at the national and regional levels. At the national level, the aims will be achieved by establishing and/or strengthening an influential semi-independent national constituency or advocacy group in the form of a network, and by promoting, through it, the adoption and implementation of poverty reducing employment intensive growth strategies. At the African regional level, the project will attempt to disseminate the application of the investment-led poverty reducing employment strategies to a wide range of African countries, through the establishment/strengthening, and support of the national advocacy networks. Annex I presents a standard schedule for the implementation of these project's activities at the national level. Annex 2 presents the schedule for all the project's activities.

3.3 The regional project will also serve as a clearinghouse to accumulate and disseminate information about successful experiences as from within and outside Africa to participating national networks, and other African countries. The regional project through its regional network consisting of participating national networks, and through cooperation with other African regional and sub-regional institutions, will also seek to provide advocacy and capacity building at the regional level.

National Strategy and Implementation Arrangements

3.4 At the initial stage, the regional project will assist in the establishment or strengthening of national advocacy networks. The national network will consist of influential members, preferably those with power to influence decision making in their various organizations. The network should be composed to include membership from the following organizations: Public Sector Institutions (Ministries of Labour and Employment, Planning, Budget and Finance, Agriculture and Rural Development, Industries and Commerce, Education and Training, Local Government, and Public Works); Private Sector Institutions (Employers' and Workers' Organizations, umbrella business councils such as Private Sector Foundations, etc.); universities and research centres; NGOs (representing micro and small-scale enterprise development, women, the youth, the disabled and retrenched workers, and umbrella organizations representing major NGOs with micro-level implementation capacity); major community-based organizations (CBOs) including representatives of associations of local government authorities; and university/government/private sector think-tanks on labour market issues.

3.5 Depending on national institutions and arrangements, the network should have a secretariat closely linked to, or based in, a semi-independent research institution or think-tank, that is closely linked to, respected by, and used by Government. The national network secretariat will be managed by a national network coordinator employed by the regional project during the first two years of the national implementation phase. It will be necessary to seek the contributions of National authorities or research institutions to house and provide administrative assistance to the network and its secretariat. This network coordinator will be expected to monitor and motivate, on a continuous basis, the work of the national network and of the national experts contracted by the project to ensure that the objectives of the project are achieved at the national level. The regional project will provide full technical and monitoring support to the national programme coordinator, and will ensure full financial accountability of the national coordinator's activities. This arrangement is also required to facilitate the implementation of advocated policies and programmes by the government. While specific arrangements may vary from country to country, the regional project will seek to ensure that the advocacy work of the network will have a very good chance of implementation at national and local levels.

3.6 The principal function of the national network at the initial stage, will be the promotion of the preparation of an assessment of the employment effects of current public investment policies. The assessment, which could be titled a “Report on Investment for Poverty Reducing Employment” (IPRE), will seek to provide a well-publicised assessment of public and private investment, and to propose new directions for raising investment and improving its allocation. The focus of the report is on investment as an important stimulus to growth and to poverty reducing employment. The secondary thrust of the report is a critique of the macroeconomic policies such as right monetary policies and restrictive fiscal policies - that raise interest rates, curtail credit and cut public investment. The report should not attempt to duplicate the reports of the World Bank in helping the government formulate a public investment programme (PIP) but focus on policies and programmes that are pro-employment and poverty reduction.

3.7 In many cases public revenues are too small and have to be raised to finance investment. A significant proportion of public expenditures may be non-discretionary such as payment on foreign and domestic debt. Among the discretionary expenditures, the allocation of resources may favour current expenditures over investment. Moreover, expenditures for investment may not be designed to generate employment or reduce poverty. Social and physical infrastructure may disproportionately benefit upper income groups in the population. For these reasons, the IPRE assessment has to take up the issue of the public budget both revenue and expenditure. A second crucial characteristic of the IPRE assessment should be to emphasise the consistency between the government's general or macro strategy to promote public and private investment and its micro investment promoting interventions at the local or community level. The character and locations of the government's micro interventions should follow logically from its general strategy. One of the distinguishing features of local targeted interventions should be their participatory character. Local communities and authorities should be involved in identifying their particular needs for investment in consultation with the government and advocacy networks.

3.8 The content of the IPRE assessment will be modified as necessary to take into account work already done at the national level. Based on its recommendations the project, in close cooperation with the national network will assist in the preparation, the adoption and implementation of a national programme to combat poverty through employment creation, using wherever possible local capacity. The recommendations will include the identification of the institutions best suited to manage, monitor, and evaluate the policies and programmes at national, district and local levels.

3.9 A central feature of this project is the consistent use of local or regional expertise in the development and implementation of the national programme of action, thus providing both on the job experience, on the one hand, and widening the pool of sub-Saharan experts in the field of poverty reducing employment strategies, on the other.

3.10 The capacities of the government to design and implement the national poverty reducing employment programme will be strengthened through the capacity building activities of the national network and those of the regional project. These capacity building activities will include national seminars and training workshops for network partners, as well as study tours within and outside Africa, whenever these can be financed. In these ways, a pool of trained and knowledgeable Africans will be established in the field of public investment and labour market analysis ready for use throughout Africa.

3.11 Macroeconomic policies and, in particular, investment strategies must result in specific capital formation at the local level. Poverty reducing strategies must be based on local employment generating activities at the local level. Efforts must be deployed to ensure that the investment policies adopted at the national level are targeted towards the poorest population segments or regions, and that local employment generating initiatives reflect the needs of the neediest populations. The real impact of this - or any - poverty reducing strategy must be assessed at this level.

3.12 The range of activities to be included in a poverty reducing employment generation programme will of necessity be restricted to ensure sharper programme focus and effectiveness. Given the project's focus on investment, the activities that should be implemented at the local level should be limited to (a) public investment projects that directly promote poverty reducing employment in such areas as agriculture and rural development (e.g., rural feeder roads, small irrigation works, reforestation using labour intensive techniques), micro and small enterprise development, and urban-based labour intensive projects; (b) indirectly stimulate private investment and poverty reducing employment; and (c) activities to increase the productivity and livelihoods of target poor populations (e.g., women, youth, the disabled, retrenched workers, etc.) and districts. Training (managerial and vocational), credit and participatory techniques are common tools in the implementation of the above activities. Wherever feasible, practical experiences from other national or regional initiatives in the aforementioned activities will be brought to the attention of the national networks and concerned officials. Technical workshops to identify common practices, the requirements to ensure positive impact, and pitfalls to avoid could be organised to enhance the local capacity.

3.13 The organization of the network and its involvement in efforts to achieve a certain degree of coherence will allow the project specialist to gain an understanding of the needs of local officials so that additional assistance could, resources permitting, be drawn from the ILO, IFAD and FAO's field experience in implementing poverty reducing programmes through job creation.

3.14 An effective poverty reducing policy must, therefore, identify suitable expenditure policies and explicit implementation mechanisms to ensure that investments do result in poverty reducing employment of a sustainable nature. It is not sufficient to increase the volume of investment. It is indispensable to identify its targeting, composition, and sequencing. Practical and simple mechanisms to ensure relevance and coherence in the field are clearly required, even if there are no experiences on how to achieve this.

3.15 In order to provide for a monitoring and evaluating function, there should be a second IPRE assessment at the end of the first three years of the regional project. This assumes that the first report will be issued roughly one year from the initiation of the regional project. The second report should provide information on the shift if any of the government investment strategy and progress in the implementation of the poverty reducing employment generation programme.

Regional Programme Strategy and Implementation Arrangements

3.16 A major priority of the regional project will be the establishment/strengthening of the national advocacy networks, and providing them with financial and technical support to enable them to carry out the activities envisaged at the national level. National network financing and technical support will be managed to inter-link closely with the country programmes of the UNDP, ILO, FAO and other UN system agencies. The strategy in establishing/strengthening the national networks, is to propagate the broad regional project strategy to a substantial proportion of the African region's population, so as to maximise regional impact to the extent possible.

3.17 Through a phased programme of work, the regional project will establish/strengthen national networks in the following countries: Burkina Faso, Cameroun, Cd’Ivoire, Ethiopia, Mali, Nigeria, Senegal, Uganda, Zambia and Zimbabwe. These countries have been chosen on the following grounds: (a) project activities will compliment work already in progress, such that marginal incremental efforts will more likely lead to greater impact, (b) political will exists to implement the broad project strategy, (c) UNDP/ILO institutional and technical capacity exists at national level to compliment the regional effort, (d) national capacities and institutions exist on which the regional initiative can build, (e) sub-regional and linguistic balance are taken into account, and improved prospects for replication exist because of importance of countries in their sub-region.

3.18 The formation of the national networks will be the basis for a regional network of institutions consisting of national networks. The progress of the national networks will be monitored by the regional project. The regional project will also seek to collaborate with other African regional and sub-regional bodies with a view to advocating the implementation of the broad project strategy at regional and sub-regional levels. Such regional and sub-regional organizations will include the UN, Economic Commission for Africa (ECA), Organization of African Unity (OAU), the African Development Bank (ADB), the African Economic Research Consortium (AERC), Council for the Development of Social Research in Africa (CODESRIA), Organization of African Trade Union Unity (OATUU), the Pan-African Employers Confederation (PAEC) and key sub-regional integration groupings such as ECOWAS, ECCAS, COMESA and SADC and a few noted regional NGOs such as Third World Network, Pan African Women's Organization and Pan African Youth Organization.

3.19 The regional project will seek to maintain the above regional network of institutions consisting of national network members and regional and sub-regional institutions to serve as a clearinghouse for the dissemination of successful experiences in the design and implementation of investment-led poverty reducing employment strategies in sub-Saharan Africa using mainly modern information technology such as the INTERNET. The regional project will seek to link network members and other African countries with best practices and successful experiences within and outside Africa (especially third world countries).

3.20 Regular meetings of the regional network members are not planned. However, attempts will be made to constitute a small inter-country advisory/steering group for the project's work, which may meet as and when necessary. Occasional organization of regional seminars and training workshops for network members are also planned. Furthermore, a regional meeting of network members will be organized towards the end of the project cycle i.e., in the fourth year of the project for the purpose of discussion and dissemination of the synthesis of the second set of national IPRE assessments. Finally, in collaboration with the ILO Regional Office for Africa, the regional project with financial contributions from the ILO, will seek to monitor regional employment trends and construct a regional labour market data bank, thereby assisting national authorities in the development of their own information facilities.

3.21 The regional project will be implemented through a small core team of regional international specialists consisting of a Programme Manager, who will also be a senior expert in public investment and labour market analysis, a senior expert in employment and poverty analysis, and one in agriculture and rural development and employment. The international team will be assisted by a small group of support staff. Other required skills and expertise will be drawn from national, regional or international consultants. The project will be based in Addis Ababa to facilitate collaboration with other regional bodies such as the ECA, OAU, the UNDP African Inter-Country Liaison Office and interconnect with the ILO Regional Office for Africa through the ILO Office and the ILO East Africa Multi-disciplinary Advisory Team both based in Addis Ababa.

3.22 In implementing the regional project, close links and associations will be developed with two regional projects in particular: (i) 'Capacity Building from Trade in SSA'; and (ii) 'Civil Society Empowerment for Poverty Reduction in SSA'. The former project will undertake studies on the impact of various trade regime scenarios on employment and poverty opportunities. The latter is establishing national network cells comprising representatives of CSO's, Governments and UNDP to help analyse and provide fora for developing implementing poverty eradication policies that are coherent at macro-, mezzo and micro levels, and ultimately grounded in the reality of people living in poverty. Important synergies can and must be built between these UNDP programmes. In addition, there are important lessons and linkages to be made with UNCDF's pilot project on Local Development Funds.

Part 4: Development Objective

4.1 Build the national and regional capacity to design and adopt poverty reducing employment strategies based on investment led macro-economic policies that are explicitly targeted towards the poorest segments of the population and that are coherent at the micro-, mezzo-, and macro levels.

5.1 Immediate Objective 1

5.1 Develop the capacity of national and regional institutions and networks to assess, design, and advocate alternative policies for poverty reducing employment strategies.

Outputs

5.1.1 A national network of individuals and institutions in the public and private sectors to assess the impact on employment of investment policies created in each of the 10 participating countries;

Activities

5.1.1.1 · Identify key members in key Government Ministries responsible for investment led employment creating strategies;

5.1.1.2 · Identify key members of employers' and workers' organisations, NGOs, and research institutions that can play a role in the definition of employment policies;

5.1.1.3 · Engage national expert to act as local coordinator of the network (see para 3.5).

5.1.1.4 · Set up both a national and a regional network for poverty reducing employment strategies. The main function of these networks is to mobilize the participation of a broader array of interested parties and actors than would be possible with a government-initiated programme in advocating pro-employment and anti-poverty policies.

5.1.1.5 · Organise seminars to identify the capacity and levels of knowledge of network members in the assessment of the impact on employment and poverty of investment;

5.1.1.6 · Publicize widely the results of the assessment of investment described in paragraph 5.1.2.2.

5.1.1.7 · Using the assessment of the employment effects of investment policies, organise national workshops and seminars that would strengthen both the advocacy role, and the technical capacity of network members,

5.1.1.8 · Assist in the training and strengthening of research units of workers', employers' organisations and other members of civil society to evaluate the implication of macro-economic policies on employment and poverty reduction;

5.1.1.9 · Publicize widely the results of the analysis of the employment generating role of specific sectors as described in paragraph 5.1.2.4;

5.1.1.10 · Provide assistance in the organization and functioning of the national network;

5.1.1.11 · Organise national or local workshops and seminars to initiate the debate and foster participation and advocacy of more targeted population groups on mechanisms to ensure that sectoral policies generate employment and particularly for the poorest segments of the population;

5.1.1.12 · Develop mechanisms to sensitise African Regional and sub-Regional organisations on the application of investment led poverty reducing investment strategies at the national, sub-regional and regional levels;

5.1.1.13 · Establish, strengthen and manage the regional network on the application of investment led poverty reducing investment strategies.

Outputs

5.1.2 Assessments produced of the impact on employment and poverty of national investment policies and, in particular, public investment in the form of a major IPRE report.

Activities

5.1.2.1 · Identify researchers and institutions capable of assessing public and private investment;

5.1.2.2 · Prepare an initial assessment of public and private investment, its sectoral composition, its targeting and its labour content;

5.1.2.3 · Recommend directions for the reform of public investment programmes so as to improve their effectiveness in directly increasing employment, particularly employment for the poor, and stimulating employment-generating private investment;

5.1.2.4 · Where necessary, identify, and conduct studies on specific sectors with high concentration of poverty (agriculture, rural non-agricultural activities, small enterprises and self employment in the rural and urban informal sector...). Assess where investment policies would have the greatest effect on poverty reducing employment strategies and assess underlying policies. Recommend directions for the reform of sectoral investment programmes so as to improve their effectiveness in directly increasing employment, particularly employment for the poor;

5.1.2.5 · The analysis in the reports should take into account the likely impact of proposed policies on women and men;

5.1.2.6 · Prepare a second IPRE assessment towards the end of the execution at the national level to evaluate the impact of the poverty reducing employment generating strategies adopted.

5.2 Immediate Objective 2

5.2 Develop the capacity of governments to re-orient strategies and programmes for poverty reducing employment strategies.

Outputs

5.2.1 Advisory services and technical mission reports provided in support of government efforts under 5.2 above.

Activities

5.2.1.1 · Provide assistance to national authorities in the revision of poverty reducing employment investment strategies, in particular as regard their sectoral composition, their labour content and their targeting; wherever possible, the assistance will be provided using local or regional expertise;

5.2.1.2 · Provide assistance to national authorities in the use of poverty maps and assist in the preparation of targeted interventions;

5.2.1.3 · Suggest mechanisms to adopt or strengthen investment led national poverty reducing employment strategies;

5.2.1.4 · Identify successful experiences of national employment programmes in sub-Saharan Africa to promote direct technical cooperation between developing countries.

Outputs

5.2.2 African specialists trained through inter-country problem solving technical fora.

Activities

5.2.2.1 · Identify the officials responsible for the programming of investments;

5.2.2.2 · Compile literature on best practices concerning targeted, poverty reducing employment investment;

5.2.2.3 · Organise seminars to examine alternative investment policies their impact on employment and how the latter can effectively reduce poverty.

5.3 Immediate Objective 3

5.3 Develop the capacity of national partners to design and implement coherent poverty reducing employment programmes at the micro-, mezzo-, and macro levels.

Outputs

5.3.1 Advisory services and technical mission reports provided in support of 53 above.

Activities

5.3.1.1 · Provide assistance to national authorities in the setting up of the structures and institutions required to implement local investment schemes in labour-intensive infrastructure, in enterprise creation, and in favour of specific population groups such as women and youth that:

5.3.1.1.1 · are participatory in the choice of investment, in its implementation and its evaluation;

5.3.1.1.2 · seek synergy;

5.3.1.1.3 · concentrate on poverty reducing employment schemes; and

5.3.1.1.4 · promote private investment.

5.3.1.2 · Provide assistance to national authorities in the use of existing data and promote regular collection of employment and poverty information to improve targeting, monitoring and evaluation;

5.3.1.3 · Promote the creation of formal or informal fora to discuss the relevance and impact of poverty reducing investment policies at the national, regional and national levels, and examine mechanisms to ensure that the recommendations resulting from those fora lead to adjustments in policy making and implementation;

5.3.1.4 · Identify successful experiences of local employment programmes in sub-Saharan Africa and the cadres responsible for their design and implementation to promote direct technical cooperation between developing countries.

Outputs

5.3.2 Knowledge generated and disseminated about mechanisms to promote coherent poverty reducing employment policies and programmes at the National, Regional and local levels and at the macroeconomic, institutional and programmatic levels.

Activities

5.3.2.1 · Organise national or local workshops and seminars to assess the impact of investment policies on employment and poverty;

5.3.2.2 · Organise regional technical workshops to assess the methodologies adopted to evaluate the impact of investment policies and to summarise the results obtained;

5.3.2.3 · Document the results of different national experiences seeking to ensure coherence of investment led poverty reducing employment programmes (activity 5.3.1.3) and organise both national and regional technical workshops to assess results obtained;

5.3.2.4 · Provide the fora for an iterative process of learning between actors at the macro, mezzo, and micro levels.

5.4 Immediate Objective 4

5.4 Identify, document and spread the most important knowledge gained during the national execution of the activities undertaken by the project.

Outputs

5.4.1. Mechanism to store and disseminate the knowledge acquired during the execution of the programme created at the regional level during the initial phase of the project;

Activities

5.4.1.1 · Identify the critical activities that must be documented and ensure that the results of the activities described under paragraphs 5.1.2.2, 5.1.2.4, 5.2.2.3, 5.3.2.1, 5.3.2.2, and 5.3.2.3;

5.4.1.2 · Create the facilities to process and store this information;

5.4.1.3 · Explore the possibility to disseminate the results through the INTERNET by evaluating the facilities of access of network members, and explore alternative cost-effective dissemination methods;

5.4.1.4 · Identify readily available information on best practices in the implementation of employment generating programmes at the local level and design dissemination methods for them. Such information can be easily obtained through other UNDP and ILO executed national and regional programmes such as ASIST, the International Small Enterprise Programme (ISEP), More and Better Jobs for Women, “Appui associatif et cooptif aux initiatives de dloppement a la base (ACOPAM)” and Enterprise Africa;

5.4.1.5 · Organise regional seminars and workshops to build and strengthen African capacities in the design and implementation of investment led poverty reducing investment strategies at the national and regional levels.

Outputs

5.4.2 A regional institution selected and strengthened to house and disseminate the information gathered during the final phases of the project.

Activities

5.4.2.1 · Identify suitable institutions that can process, store and disseminate information;

5.4.2.2 · Strengthen the capacity of the institution to process, store and disseminate information;

5.4.2.3 · Transfer the responsibility of the compilation and dissemination of the knowledge and experience acquired by the national networks to the selected institution.

Part 6: Benchmarks for Success

6.1 Establishment of at least eight (8) functioning National Networks in sub-Saharan Africa, advocating the implementation of investment-led poverty reducing employment strategies.

6.2 Production of Investment-led Poverty Reducing Employment (IPRE) reports in at least eight (8) of the project countries, which identifies the policy shifts needed for generating poverty reducing employment.

6.3 Evidence of a shift in national policies and strategies towards investment-led poverty reducing employment strategies in at least six (6) of the 10 project countries, as demonstrated from analysis of national investment programmes implemented after IPRE reports. Evidence of actual and potential employment generated.

6.4 At least 50-60 African experts fully trained in the design, and support to implementation of investment-led poverty reducing employment strategies.

6.5 Evidence of existence of regional networking mechanism between the regional project and national networks, and African regional and sub-regional institutions.

6.6 Pool of information (documents and computer-based) on best practices and successful experiences accumulated by the regional project, and evidence of same disseminated between regional network members and other African countries.

6.7 Regional institutions identified and trained in the accumulation and dissemination of information on best practices and successful experiences accumulated by the regional project.

6.8 Production of at least 75 per cent of anticipated project outputs.

Part 7: Inputs

Governments and National institutions

7.1 During the first two years of the national implementation of the project the Government and/or other National Institutions will house and provide administrative support to the network secretariat. The national coordinator directing the secretariat will be funded the first two years by the regional project. The upkeep of the network might require further support by semi-independent institutions, once the aforementioned support is brought to an end. Assistance in the preparation of workshops and dissemination of results will also be required on an ad-hoc basis.

ILO

7.2 The project will be housed in ILO’s Addis Ababa premises, so no resources have been included in the request for UNDP financing for this expenditure estimated to add up to $25,000 US dollars per year. A total of $200,000 US dollars will be appropriated by the ILO’s Africa Regional Department towards the compilation of data, and towards the project's support in this domain.

UNDP

7.3 Funds under RAF/97/038 will be used to provide the following:

7.3.1 · Personnel:

7.3.1.1 · Resources are requested for a team of three international experts comprising a Programme Manager, who will also be a senior expert in public investment and labour market analysis, a senior expert in employment and poverty analysis, and an expert on agriculture and rural development and employment issues. The international team will be assisted by two general service staff members who will supply administrative support and documentation services.

7.3.1.2 · Provisions are made for one international consultancy in each of the ten countries to be covered by the regional project. These consultancies will be used in very specific conditions where local or regional experts are not available to deal with specific problems. Most of the funds requested have been concentrated on local subcontracting both to expand the pool of national expertise and to reduce the costs of consultancies.

7.3.1.3 · Resources have also been included to engage one local professional to manage the national network secretariat for the first two years of the implementation of the project in each of the countries covered by the regional project.

7.3.1.4 · In average, 9 local subcontracts are expected to be drawn during the execution of the project at the national level. These contracts cover the preparation of the employment effects of investment assessment; to recommend directions for reform of public investment programmes so as to improve their effectiveness in directly increasing employment and stimulating employment generating private investment; to provide assistance to national authorities in revision of poverty reducing employment investment strategies, in particular as regard their sectoral composition, their labour content and their targeting; to examine alternative investment policies, their impact on employment and how the latter can reduce poverty; to assist national authorities in setting up institutions required to implement local investment schemes in labour intensive infrastructure, in enterprise creation, and in favour of specific population groups; to provide assistance to national authorities in use of existing data and to promote regular collection of employment and poverty information; to assist in the creation of formal or informal fora to discuss the relevance and impact of poverty reducing investment policies at the national, regional and national levels; and to assist in the preparation of national or local workshops to assess the impact of investment policies on employment and poverty.

7.3.2 · In keeping with its training and advocacy focus, the project proposes the preparation of seven national workshops or seminars in each country covered. Five technical workshops or seminars will be held at the regional level to explore, and train in, possible ways of implementing investment led employment strategies, to identify sectoral composition of investment and to assess the functioning of the networks and the impact of the regional project.

7.3.3 · Data processing equipment is to be provided to the network secretariat in the ten countries covered by the project. Provisions are also made for equipment of the project staff.

7.3.4 · Expenditures on reporting and miscellaneous items have been provided to ensure the dissemination of assessments and the adequate functioning of seminars and workshops at the national level.

Part 8: Risks

8.1 The work must be seen as being complementary to other work done in the public expenditure arena. The emphasis must be placed in advocating employment enhancing investment as a means to reduce poverty so as to underline the value added provided by the project that does not want to compete with either poverty analysis nor pure public investment reviews.

8.2 An important element of the broad strategy of the project is the establishment of a network of semi-independent national constituency or advocacy group, which requires the cooperation of a wide variety of institutions and interest groups at the national level. There is a risk that such cooperation may not be forthcoming from all the institutions The policies designed by such advocacy group may not be fully taken into account by governments in recasting national strategies and programmes for promoting poverty reducing employment.

Part 9: Prior Obligations and Prerequisites

9.1 Prior obligations

9.1.1 None

9.2 Prerequisites

9.2.1 · Before the commencement of project activities each participating country will provide written indication of its interest in being chosen as a project country, and its willingness to provide some support in kind, such as office space for the Secretariat of the national network and general support for the work of the national programme coordinator and the national network. The ILO will have given formal confirmation of its willingness to provide the contribution specified in the document.

9.2.2 · The project document will be signed between the UNDP and the ILO, which will act as the Executing Agency for this project.

Part 10: Project Reviews, Reporting and Evaluation

10.1 The project will be subject to the normal review and reporting requirements of all UNDP projects.

10.2 The project manager (CTA) of the regional project will be required to produce an annual work plan by the 31st of January of each year, for review by the ILO as the executing agency. The CTA will also be required to submit semi-annual progress reports to the ILO. The ILO on its part will be expected to submit annual progress reviews to the UNDP.

10.3 A small inter-country Advisory Council will provide advice to end review the operations of the regional project at least twice during the project's duration. The project shall be subject to a mid-term evaluation 24 months after the start of full implementation, and to a final evaluation three months prior to its scheduled termination. The organization, terms of reference and the precise timing of these evaluations will be decided following discussions with the UNDP, the ILO and the project's advisory group.

Part 11: Legal Context

11.1 The project document shall be the instrument referred to as such in Article I, paragraph 1, of the Standard Basic Assistance Agreement between the United Nations Development Programme and the Governments of those countries which have signed such an agreement.

11.2 The following types of revisions may be made to this project document with the signature of the Chief of the Division for Regional Programmes (DRP) of the Regional Bureau for Africa (RBA) provided that he/she is assured that the other signatories of the project document have no objection to the proposed changes:

11.2.1 · Revisions which do not involve significant changes in the immediate objectives or activities of the project but are caused by rearrangement of inputs already agreed to or by cost increases due to inflation;

11.2.2 · Mandatory annual revisions which rephase the delivery of agreed project inputs, or reflect increased expert or other costs due to inflation, or take into account agency expenditure flexibility.

Part 12: Budgets

FISEXT/BPS

International Labour Organisation - GENEVA

14.11.97

10,08

Rp 203

Project Budget Covering UNDP Contribution

Country:

Regional Africa

Executing Agency: ILO

Project No:

RAF. 97

03

Title:

“Jobs for Africa”: Poverty reducing employment strategies for sub-Saharan Africa

Budget Line

Total

1998

1999

2000

Code

Title

I.A.

W/M

$

AOS

W/M

$

AOS

W/M

$

AOS

W/M

$

AOS

10. Project Personnel

11.01

Expert

ILO

36.0

548.900

54.890

12.0

173.800

17.380

12.0

182.100

18.210

12.0

193.000

19.300

11.02

Expert

ILO

24.0

342.500

34.250

12.0

166.200

16.620

12.0

176.300

17.630

11.03

Expert

ILO

24.0

342.500

34.250

12.0

166.200

16.620

12.0

176.300

17.630

11.51

Consultants

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

11.99 Total International Expert

84.0

1.297.900

129.790

36.0

530.200

53.020

36.0

558.700

55.870

12.0

209.000

20.900

13.01

Secretary

ILO

36.0

26.100

2.610

12.0

8.400

840

12.0

8.700

870

12.0

9.000

900

13.02

Administrative Assistant

ILO

36.0

26.100

2.610

12.0

8.400

840

12.0

8.700

870

12.0

9.000

900

13.99 Total Administrative Support

72.0

52.200

5.220

24.0

16.800

1.680

24.0

1 7.400

1.740

24.0

18.000

1.800

15.01 Travel Costs

ILO

350.400

35.040

131.400

13.140

131.400

13.140

87.600

8.760

15.99 Total Travel Costs


350.400

35.040

131.400

13.140

131.400

13.140

87.600

8.760

17.01

National Professionals

ILO

192.0

192.000

19.200

72.0

72.000

7.200

72.0

72.000

7.200

48.0

48.000

4.800

17.99: Total National Professional Personnel

192.0

192.000

19.200

72.0

72.000

7.200

72.0

72.000

7.200

48.0

48.000

4.800

19. Total Project Personnel

348.0

1.892.500

189.250

132.0

750.400

75.040

132.0

779.500

77.950

84.0

362.600

36.260

20. Sub-Contract

21.01

Sub-Contract

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

21.02

Sub-Contract

ILO

40.000

4.000

15.000!

1.500

15.000

1.500

10.000

1.000

21.03

Sub-Contract

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

21.04

Sub-Contract

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

21.05

Sub-Contract

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

21.06

Sub-Contract

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

21.07

Sub-Contract

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

21.08

Sub-Contract

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

21.09

Sub-Contract

ILO

40.000

4.000

15.000

1.500

15.000

1.500

10.000

1.000

21.99 Total Sub-Contract

528.000

52.800

198.000

19.800

198.000

19.800

132.000

13.200

29. Total Sub-Contracts

528.000

52.800

198.000

19.800

198.000

19.800

132.000

13.200

30. Training

32.01

Seminars

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

32.02

Seminars

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

32.03

Seminars

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

32.04

Seminars

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

32.05

Seminars

ILO

40.000

4.000

15.000

1.500

15.000

1.500

10.000

1.000

32.06

Seminars

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

32.07

Seminars

ILO

64.000

6.400

24.000

2.400

24.000

2.400

16.000

1.600

32.08

Seminars

ILO

30.000

3.000

30.000

3.000

32.09

Seminars

ILO

20.000

2.000

20.000

2.000

32.10

Seminars

ILO

20.000

2.000

20.000

2.000

32.99 Total Seminar


494.000

49.400

159.000

15.900

179.000

17.900

156.000

15.600

39. Total Training

494.000

49.400

159.000

15.900

179.000

17.900

156.000

15.600

40. Equipment

45.01

Local Procurement

ILO

39.000

3.900

24.000

2.400

9.000

900

6.000

600

45.99 Total Local Procurement

39.000

3.900

24.000

2.400

9.000

900

6.000

600

49. Total Equipment

39.000

3.900

24.000

2.400

9.000

900

6.000

600

50. Miscellaneous

52.01

Reporting Costs

ILO

32.800

3.280

12.300

1.230

12.300

1.230

8.200

820

52.99 Total Reporting Costs

ILO

32.800

3.280

12.300

1.230

12.300

1.230

8.200

820

53.01

Sundries

ILO

9.600

960

3.600

360

3.600

360

2.400

240

53.99 Total Sundries

ILO

9.600

960

3.600

360

3.600

360

2.400

240

59. Total Miscellaneous

ILO

42.400

4.240

15.900

1.590

1 5.900

1.590

10.600

1.060

99. Project Grand Total

ILO

348.0

2.995.900

299.590

132.0

1.147.300

114.730

132.0

1.181.400

118.140

84.0

667.200

66.720

999. Total UNDP Contribution

ILO

2.995.900

299.590

1.147.300

114.730

1.181.400

118.140

667.200

66.720

Authorized by:

Prepared by:

E. BURNIER

Resp. Officer:

M. Zachmann

Checked by:

ILO Code:


Annex I: Typical sequences of Project activities at National level


Typical sequences of Project activities at National level


Typical sequences of Project activities at National level (cont.)

Annex II: Schedule of Project


Schedule of Project

Annex III: Job Descriptions Project Manager/CTA

1. Duties and Responsibilities

The project manager will have overall responsibility for the efficient and smooth functioning of the project and the achievement of its objectives. He/she will have the following responsibilities:

1.1 Contact and consult participating countries, and interested and cooperating agencies and inform and sensitize them on the overall objectives and strategies of the project.

1.2 On the basis of the above contacts, he/she will and in collaboration with the project team draw up regular annual work plans to provide the basis for the activities of the regional project.

1.3 Hire and recruit natural network coordinators, and national and international consultants to assist and produce required reports, and organize national and regional seminars and training workshops.

1.4 Assume overall responsibility for the quality of the technical outputs of the project.

1.5 Participate in the technical work of the project with overall responsibility for the analysis of investments (particularly public investments) and their implications for poverty reducing employment, and the design of, and support to implementation of investment-led poverty reducing employment programmes.

2. Qualifications

2.1 The programme manager shall have considerable experience in programme or project management preferably in international organizations.

2.2 In addition, the programme manager will be a technical specialist in the field of public investment and labour market analysis with considerable experience of many years at national and international levels.

2.3 The candidate should have preferably a higher degree in Economics, specializing in macroeconomic, development and labour issues.

2.4 The candidate shall have a very good knowledge of written and spoken English or French, and a good working knowledge of the other language. Bilingual candidates who also satisfy the other requirements will be at an advantage.

3. Remuneration and Conditions of Service

3.1 The successful candidate will be appointed at the D1 level under the staff regulations pertaining to experts in the ILO.

3.2 He/she will be appointed on a fixed-term contract for one-year in the first instance subject to extension on satisfactory performance.

4. Duty Station: Addis Ababa, Ethiopia

5. Starting Date: 1 March 1998

Senior Expert In Employment And Poverty Analysis

1. Duties and Responsibilities

Under the overall direction of the project manager, the Senior Expert in Employment and Poverty Analysis shall have primary responsibility in the Regional project team for providing technical advisory services to participating countries and their national networks on the type of employment policies and programmes to be promoted and adopted to have maximum impact on poverty reduction. More specifically, the Senior Expert will have the following responsibilities.

1.1 Design diagnostic studies to be carried out by national/international consultants to determine the poverty reducing impact of employment to be created through activities in specific sectors of participating countries, as an outcome of public investment decisions.

1.2 Assist in screening national and international consultants to determine their competence in the conduct of such studies, as well as vetting and arranging for the finalization of such studies.

1.3 Provide technical support to the National Network Coordinators in identifying national/international consultants to assist participating countries design and implement employment policies and programmes that provide greater benefits to the poorest groups and regions. Participate directly in providing technical assistance as may be necessary in the national design and implementation efforts, including progress monitoring and evaluation.

1.4 Design and assist in the organization (including servicing as resource person) at national and regional levels of seminars and training workshops on targeting employment programmes to the poorest groups and regions including, techniques and processes for ensuring participation of local programme beneficiaries in programme design and implementation.

1.5 Design and ensure mechanism for information accumulation and its dissemination to participating project countries and at the regional level, on best practices and successful experiences in targeting employment programmes to the poorest groups and districts.

1.6 Play primary advocacy and sensitizing role in this field with major African regional institutions.

2. Qualifications

2.1 The candidate should have several years of experience in employment and poverty analysis preferably in the capacity of adviser to governments or as a specialist in international organizations.

2.2 The candidate should have preferably a higher degree in the Social Sciences with significant competence in quantitative tools of analysis such as econometrics/social statistics.

2.3 The Senior Expert should have a very good command of written and spoken English or French and a good working knowledge of the other language.

3. Conditions of Services

3.1 The successful candidate will be recruited at P4/P5 level depending on experience, under the ILO Expert conditions of service.

3.2 Recruitment will be on a fixed-term contract for twelve months in the first instance subject to extension on the basis of satisfactory performance.

4. Duty Station: Addis Ababa, Ethiopia

5. Starting Date: 1 March 1998

Agricultural and Rural Employment Specialist

Post title: Senior expert on Agricultural and Rural Employment

1 Duties and responsibilities

In coordination with the other members of the “Jobs for Africa” Regional Programme core team, and with the technical backstopping support of the FAO, IFAD, ILO and UNDP, the expert will serve in an advisory capacity to participating governments and national networks, in the following areas:

1.1 Identify and assess the strengths and weaknesses of key rural institutions (formal, informal, community-based) involved in employment and poverty reduction in each country to inform initial IPRE assessments;

1.2 based on IPRE assessments, evaluate the need for further analysis on employment opportunities/barriers, policies and programs in the rural sector (on-farm, off-farm, and non-farm employment, rural-to-rural and rural-to-urban migration, growth sectors);

1.3 Assist key rural institutions to become members of the national networks, established under the guidance of the Regional Programme, and to participate actively in network activities;

1.4 Support national networks to formulate specific objectives and strategies for rural employment promotion;

1.5 Provide advice (capacity-building) to governments and network members to (re) formulate macroeconomic policies and investment priorities to favour greater employment generation in rural areas, in public and private sectors, targeted especially to the poor;

1.6 Provide advice (capacity-building) to governments and network members to design (the rural components of) national programmes for implementing employment policies on the national, mezzo and micro levels in a coherent and integrated manner;

1.7 Assist governments and network members to evaluate impacts of the Regional and National Programmes through monitoring of rural employment and poverty statistics;

1.8 Link rural-based network members intra- and extra-regionally on best practices and successful experiences, especially in the areas of training, credit and participatory methodologies for employment generation for poverty reduction;

1.9 Ensure that best practices, successful experiences and other lessons learned during the duration of the Regional Programme are transferred to the countries, through appropriation by rural-based network members, for continuous analysis and training purposes; and

1.10 Take responsibility for identifying and establishing co-operation, where appropriate, with other local, national, regional and international organization initiatives on rural employment promotion for poverty reduction.

2 Qualification

An advanced university degree in agricultural economics or rural sociology, with a specialisation in rural (on/off farm) employment analysis required. At least seven years of experience in rural development in Africa required, with specific experience in rural employment promotion and analysis preferred. Previous experience advising governments on rural employment policy preferred. Very good command of English or French required, with good working knowledge of the other language.

3. Conditions of Services

3.1 The successful candidate will be recruited at P4/P5 level depending on experience, under the ILO Expert conditions of service.

3.2 Recruitment will be on a fixed-term contract for twelve months in the first instance subject to extension on the basis of satisfactory performance.

4. Duty Station: Addis Ababa, Ethiopia

5. Starting Date: 1 March 1998

National Network Coordinator

1. Duties and Responsibilities

Under the general direction of the Regional Project manager, the National Network Coordinator will have the responsibility of making national contacts for the establishment/revitalization of the national network of influential stakeholders which will play the advocacy role in the implementation of the investment-led poverty reducing employment strategy at the national and local levels. He/she will also ensure that the national network is functioning on a continuing basis. More specifically he/she will have the following responsibility in close collaboration with the regional project team.

1.1 Identify and contact influential stakeholders to inaugurate the national network which will oversee and advocate the processes and mechanisms that will facilitate the adoption of the investment-led poverty reducing employment strategy by national authorities.

1.2 In consultation with the National Network Chairpersons and the Regional Project Manager, design a regular work programme for the national network including discussion of the strategy for the preparation of the initial and Second Investment-led Poverty Reducing Employment Report (IPRE Report) and the advocacy campaign arrangements for the dissemination of the IPRE Reports.

1.3 Assist in the identification and facilitation of national experts/institutions that will be commissioned to conduct sectoral and synthesis reports in support of the national network objectives.

1.4 Assist in the identification and facilitation of national consultants - who will assist national authorities in the design and implementation of investment-led poverty reducing national employment programmes especially at local levels targeted on the poorest groups and districts. Facilitate contact of regional project team members to render assistance as may be desired to national authorities in the above regard.

1.5 In consultation with national network chairpersons and in collaboration with the Regional Project Team members organize national seminars and training workshops envisaged at the national level.

1.6 Assist in two-way communication between the Regional project and the National Network in the accumulation and dissemination of best practices and successful experiences in IPRE strategies.

2. Qualifications

2.1 The National Network Coordinator should preferably be a national of the country and should have considerable experience in employment promotion strategies and national development plan and investment analysis, accumulated in the services of government, private sector, or international agencies, and with significant influence, connections and standing in the country.

2.2 The successful candidate should be a graduate in the Social Sciences preferably in Economics with expertise in macroeconomics, development and labour market issues.

3. Conditions of Service

The successful candidate will be appointed on the UNDP National Expert Salary Scale on a one-year contract subject to renewal for a second year depending on satisfactory performance.

4. Duty Station: capital city of the country concerned

5. Starting Date:

Back Cover

JOBS FOR AFRICA

After almost two “lost decades”, sub-Saharan Africa, long beset by economic adversity and civil disorder, is showing the first signs of an economic recovery, with at least 24 countries enjoying economic growth greater than the increase in their population. The overall economic growth rate in sub-Saharan Africa rose to 3.7 per cent in 1995, up from 1.9 per cent in 1994. “Jobs for Africa” represents an attempt by the UN System to contribute to building the capacity of African countries to reverse past decline.

While recovery prospects can be boosted by further domestic reforms and increased international investment, accelerated job and income growth are now critical to sustaining the upturn and maintaining political stability in what has become the world's poorest region. Nearly 75 per cent of the labour force in sub-Saharan Africa (approximately 314 million men and women, or 9 per cent of the world's labour force) still work outside the formal economy, often in subsistence agriculture or in low productivity “informal” activities.

In a first volume entitled “Jobs for Africa: A Policy Framework for an Employment-Intensive Growth Strategy” it was argued that “Africa has no alternative but to embark on a process of sustained GDP growth if it is to avoid continued marginalization” in the global economy.

The present Report proposes a Programme of Action in order to implement an investment-led growth strategy for employment creation and poverty reduction with major emphasis on building the capacity of African countries to design and implement their own policies.

ISBN 92-2-110926-7