OTRAS LEGISLACIONES

Th e evidence presented in this chapter, including the case studies of countries that have successfully upgraded their productive capacity, show that development requires a strategy to diversify the economic base and enhance opportunities to create quality jobs. While the starting positions of diff erent countries need to be taken into account – suggesting that there is no single development path – the chapter documents success stories for countries at all levels of development using a range of approaches to economic diversifi cation, with specifi c interventions in those sectors which off er the greatest potential. Th e natural resource constraints and environmental limits faced by all countries can be turned into an advantage by developing and emerging economies by seizing the opportunity for techno- logical ‘leapfrogging’ and basing their development on the latest and most effi - cient technology.

Th ese fi ndings shed new light on the important role of government in devel- oping countries. According to conventional wisdom, selective interventions and targeted support would be a source of distortions and economic ineffi ciency. How- ever, in reality, all policy approaches include a degree of targeting, by design or by default (Chang and Andreoni, 2014).

Th is chapter reports successful experiences based on careful diversifi cation strategies in the context of gradual trade liberalization consistent with multilateral commitments.

Productive transformation needs to be underpinned by an enabling envir- onment for enterprises including supportive macroeconomic policies. Th e experi- ences of several Latin American countries underline the potential of development strategies to foster production diversifi cation in collaboration with the private sector and strengthen the environment for enterprises, while at the same time ensuring that there is suffi cient aggregate demand, notably through countercy- clical macroeconomic policies. Th ey have also demonstrated success with well-cal- ibrated capital controls to manage volatile capital fl ows and keep exchange rates both predictable and competitive (Salazar et al., 2014; Ocampo, 2014).

82

World of Work Report 2014: Developing with jobs

Finally, for productive transformation to be achieved, it is important to focus on quality job creation at the same time. Indeed, it is not possible to achieve eco- nomic diversifi cation without active measures to tackle low productivity in agri- culture and SMEs, poor working condition traps and high rates of informality. Sustained, strong growth is at risk if social inequality grows, as demonstrated by recent research by the IMF,10 or rent-seeking behaviour by owners of natural resources or land is allowed to continue unchecked.

References

Alves, E. 2010. Embrapa: A success story of institutional innovation (Brasilia, Brazilian Agricultural Research Corporation (EMBRAPA)).

Andreoni, A. 2013. Manufacturing agrarian change. Agricultural production, intermediate institutions and intersectoral commons: Lessons fr om Latin America. PhD Th esis, Th ird Essay (Cambridge, University of Cambridge).

Ansu, Y.; Tan, J.P. 2011. “Skills development for economic growth in sub-Saharan Africa: A pragmatic perspective”, in A. Noman, K. Botchwey, H. Stein and J.E. Stiglitz: Good growth and governance in Afr ica: Rethinking development strategies

(Oxford, Oxford University Press).

Baraki, A.H.; van Kemenade, E. 2013 “Eff ectiveness of technical and vocational education and training (TVET): Insights from Ethiopia’s reform”, in Th e TQM Journal, Vol. 25, No.5, pp. 492–506.

Better Factories Cambodia (BFC)program. Available at: http://betterfactories.org/ [16 May 2014].

Blake, D.J. 1967. Employment and unemployment in Singapore (Singapore, Economic Research Centre, University of Singapore).

Brown, P.; Lauder, H.; Ashton, D. 2011. Th e global auction: Th e broken promises of education, jobs, and incomes (New York, NY, Oxford University Press). Cambodia, Royal Government of; United States of America, Government of. 1999.

Cambodia Bilateral Textile Agreement (Phnom Penh). Available at: http://khmer. cambodia.usembassy.gov/media2/pdf/uskh_texttile.pdf [16 May 2014]

Chang, H.J. 1998. “Evaluating the current industrial policy of South Africa”, in

Transformation, No. 36.

—. Andreoni, A.; Kuan, M.L. 2014. “Productive capabilities transformation: Institutions, linkages and policies for manufacturing growth and productive employment”, background paper prepared for World of Work Report 2014: Developing with Jobs (Geneva, ILO).

Chiang, M. 1998. From economic debacle to economic miracle: Th e history and development of technical education in Singapore (Singapore, Times Editions). Dobbs, R.; Oppenheim, J.; Th ompson, F.; Brinkman, M.; Zornes, M. 2011. Resource

revolution: Meeting the world’s energy, materials, food, and water needs (New York, McKinsey Global Institute).

Fundación Chile. 2005. Fundación Chile: 29 years fostering innovative business

development in key Chilean clusters, paper presented at the workshop on Generating and Sustaining Growth without Picking Winners: Case Studies of New Industrial Policy Organizations, World Bank Institute, Washington DC, 13 Jun.

Gopinathan, S. 1986. “Education in Singapore 1959–1984”, in C.W. Ng (ed.): Singapore: Taking Stock: Readings in General Paper (Singapore, Federal Publications), pp. 79–96. Guerrieri, P.; Meliciani, V. 2005. “Technology and international competitiveness: Th e

interdependence between manufacturing and producer services”, in Structural Change and Economic Dynamics, Vol. 16, No. 4, pp. 489–502.

Hausmann, R.; Hwang, J.; Rodrik, D. 2005. What you export matters, CID Working Paper No. 123 (Cambridge, MA, Center for International Development (CID) at Harvard University).

83

Huang, Y. 2003. Selling China: Foreign direct envestment during the reform era (New York and Cambridge, Cambridge University Press).

Imbs, J.; Wacziarg, R. 2003. “Stages of diversifi cation”, in Th e American Economic Review, Vol. 93, No. 1, pp. 63–86.

International Bank for Reconstruction and Development. 2011. “Growing food, products, and businesses: Applying business incubation to agribusiness SMEs”, in

infoDev, Oct. (Washington, DC, World Bank).

International Institute for Labour Studies (IILS). 2012. Tunisia: A new social contract for fair and equitable growth, Studies on Growth with Equity (Geneva, ILO).

—. 2013a. Social dimensions of fr ee trade agreements, Studies on Growth with Equity (Geneva, ILO).

—. 2013b. World of Work Report 2013: Repairing the economic and social fabric (Geneva, ILO).

International Labour Offi ce (ILO). 2006. ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (Geneva).

—. 2008. Labour and social trends in ASEAN 2008: Driving competitiveness and prosperity with decent work (Bangkok, ILO Regional Offi ce).

—. 2012. Working towards sustainable development: Opportunities for decent work and social inclusion in a green economy (Geneva).

—. 2013a. Sustainable development, decent work and green jobs, Report V, International Labour Conference, 102nd Session, Geneva, 2013.

—. 2013b. SCORE: Sustaining competitive and responsible enterprises. Phase I fi nal report. Institute for Labor Studies (ILS); Chinese Ministry of Human Resources and Social

Security (MOHRSS). 2010. Study on green employment in China, Mar. (Beijing, ILO Offi ce for China and Mongolia).

International Renewable Energy Agency (IRENA). 2014. Renewable Energy and Jobs

(Abu Dhabi).

Lall, S. 1995. “Malaysia: Industrial success and the role of the government”, in Journal of International Development, Vol. 7, No. 5, pp. 759–773.

Lee, E. 2014. “Th e role of agriculture in developing countries”, background paper prepared for World of Work Report 2014: Developing with Jobs (Geneva, ILO). Low, L; Heng, T.M.; Wong, S.T. 1991 Economics of Education and Manpower

Development (McGraw-Hill)

Macedo, I.C. 2005. Etanol combustivel: balance e perspectivas (Campinas, University of Campinas).

Maia, J. et al. 2011. Green jobs: An estimate of the direct employment potential of a greening South Afr ican economy (Industrial Development Corporation,

Development Bank of Southern Africa, and Trade and Industrial Policy Strategies). Malaysian Palm Oil Board (MPOB). 2013. Malaysian Oil Palm Statistics 2012 (Kelana

Jaya Selangor, Malaysia).

McMillan, M.S.; Rodrik, D. 2011. Globalization, structural change and productivity growth, NBER Working Paper No. 17143 (Washington, DC, National Bureau of Economic Research (NBER)).

Neak, S., Robertson, R. 2009. “Globalization and working conditions: Evidence from Cambodia”, in Globalization, wages, and the quality of jobs (Washington, DC, World Bank).

Nübler, I. 2014. “Capabilities for productive transformation: Learning to catch up”, in J.M. Salazar-Xirinachs, I. Nübler, R. Kozul-Wright (eds): Getting industrial policies right for growth, jobs and learning (Geneva, ILO and UNCTAD).

—. Forthcoming. Capabilities, productive transformation and development: A new perspective on industrial policies (Geneva, ILO).

Ocampo, J.A. 2014. “Latin American structuralism and production development strategies”, in J.M. Salazar-Xirinachs, I. Nübler, R. Kozul-Wright (eds): Getting industrial policies right for growth, jobs and learning (Geneva, ILO and UNCTAD). Organization for Economic Cooperation and Development (OECD). 2012. Skills

development pathways in Asia (Paris).

—. 2012. Environmental outlook to 2050: Th e consequences of inaction (Paris). Ostry, D.J.; Berg, A.; Tsangarides, C.G. 2014. Redistribution, inequality, and growth,

84

World of Work Report 2014: Developing with jobs

O’Sullivan, E.; Andreoni, A.; Lopez-Gomez, G.; Gregory, M. 2013 “What is new in the new industrial policy? A manufacturing system perspective”, in Oxford Review of Economic Policy, Vol. 29, No. 4.  

Pang, E.F.; Lim, L.Y.C. 1989. “High tech and labour in the Asian NICs”, in Labour and Society, Vol. 14, special issue, pp. 43–58.

Park, S.-H. 1989. “Linkages between industry and services and their implications for urban employment generation in developing countries, in Journal of Development Economics, Vol. 30, No. 2, pp. 359–379.

—. Chan, K.S. 1989. “Cross-country input-output analysis of intersectoral relationships between manufacturing and services and their employment implications”, in World Development, Vol. 17, No. 2, pp. 199–212.

Pletcher, J. 1991. “Regulation with growth: Th e political economy of palm oil in Malaysia”, in World Development, Vol. 19, No. 6, pp. 623–636.

Robertson, R. 2011. Apparel wages before and aft er Better Factories Cambodia, Better Work Discussion Paper Series No. 3 (Geneva, ILO).

—. Dehejia, R.; Brown, D.; Ang, D. 2011. Labour law compliance and human resource innovation: Better factories Cambodia, Better Work Discussion Paper Series (Geneva and Washington, ILO and International Finance Corporation (IFI)).

Rodrik, D. 2009. Growth aft er the crisis, Discussion Paper Series No. 7480 (London, Centre for Economic Policy Research (CEPR)).

Roncolato, L.; Kucera, D. 2013. “Structural drivers of productivity and employment growth: A decomposition analysis for 81 countries”, in Cambridge Journal of Economics, Vol. 38, No. 2, pp. 399–424.

Rossi, A.; Robertson, R. 2011. Better factories Cambodia: An instrument for improving industrial relations in a transnational context, Working Paper No. 256 (London and Washington, DC, Center for Global Development).

Salazar-Xirinachs, J.M.; Nübler, I.; Kozul-Wright, R. (eds). 2014. Getting industrial policies right for growth, jobs and learning (Geneva, ILO and UNCTAD). Saw, S.H. 2012. Th e Population of Singapore (Singapore, Institute of Southeast Asia

Studies).

Simeh, A.; Tengku Mohd Ariff , T. 2001. Th e case study on the Malaysian palm oil, paper presented the United Nations Conference on Trade and Development (UNCTAD) Regional Workshop on Commodity Export Diversifi cation and Poverty Reduction in South and South-East Asia, Bangkok, 3–5 Apr.

Soon, T.W. 1993. “Education and human resource development”, in L. Low, M.H. Toh, T.W. Soon, K.Y. Tan and H. Hughes: Challenge and response: Th irty years of the Economic Development Board (Singapore, Times Academic Press), pp. 235–269. Timmer, M.L.; de Vries, G. 2009. “Structural change and growth accelerations in Asia

and Latin America: A new sectoral data set”, in Cliometrica, Journal of Historical Economics and Econometric History, Vol. 3, No. 2, pp. 165–190.

Tregenna, F. 2012. “Sources of subsectoral growth in South Africa”, in Oxford Development Studies, Vol. 40, No. 2, pp. 162–189.

Tsogas, G. 1999. “Labour standards in international trade agreements: An assessment of the arguments” in International journal of Human Resources Management, Vol. 10, No. 2, pp. 351–375.

United Nations (UN). 2012. Th e future we want, Rio+20 United Nations Conference on Sustainable Development, Rio de Janeiro, 20–22 Jun.

—. 2013. UN ComTrade Database (New York).

World Bank. 2008. World Development Report: Agriculture for development

(Washington, DC).

—. 2012. Inclusive green growth: Th e pathway to sustainable development (Washington, DC) −. 2013. World Development Indicators Database (Washington, DC).

World Business Council for Sustainable Development. 2010. Vision 2050: Th e new agenda for business (Geneva).

85 85

Introduction

As noted in Chapter 5, development is a dynamic process. Economic growth is key to development but, on its own, it is not enough. Policies and institutions are also needed to ensure that the nature of economic growth translates into improved and shared well-being for society as a whole, without leaving segments of the popu- lation behind. Well-designed labour market and social institutions are vital in achieving this goal.

Th is chapter examines the roles of labour policies and institutions from the perspective of development. It first defines these institutions and presents an overall analytical framework (Section A). Th e chapter then reviews recent trends in selected labour institutions (Section B). Social protection institutions are cov- ered separately in Chapter 7. Finally, the chapter investigates how labour and social protection institutions can be made relevant to informal workers (Section C). Policy issues which emerge from concrete country examples are also discussed. Th e chapter concludes with a summary of key fi ndings and policy implications.