AFRICAN UNION UNION AFRICAINE UNIÃO AFRICANA Addis Ababa, ETHIOPIA P. O. Box 3243 Te: +251-11-5517 700 Fax: +251-11-5517844 SEVENTH ORDINARY SESSION OF THE LABOUR AND SOCIAL AFFAIRS COMMISSION OF THE AFRICAN UNION 28 SEPTEMBER – 02 OCTOBER 2009 ADDIS ABABA, ETHIOPIA LSC/EXP/6(VII) THEME : “IMPACT OF THE GLOBAL CRISIS ON EMPLOYMENT AND LABOUR MARKETS IN AFRICA” REPORT OF THE CHAIRPERSON OF THE AU COMMISSION ON OUAGADOUGOU + 5 ON EMPLOYMENT AND POVERTY ALLEVIATION (2004-2009) LSC/EXP/6 (VII) Page 2 Background Employment took a centre stage at the Extraordinary Ouagadougou Summit of Heads of State and Government in September 2004. The Summit was a culmination of efforts by member states, RECs, tripartite social partners as well as international partners to address the challenge of employment creation and providing conditions for decent work. It was also a point of departure for more concerted efforts at national, regional and international levels to step up employment creation for poverty alleviation. The Summit was particularly significant for the commitment by member states to place employment at the centre of their economic and social policies. Prior to this, employment took a marginal position in the hierarchy of policy priorities. Employment creation and the promotion of decent work conditions would henceforth no longer be the sole responsibility of Ministries of Labour and Employment. The Plan of Action set in place follow up mechanisms at the national, regional and international levels that included timetables for implementation to monitor the process at all levels and to report back. These commitments are contained in these Summit documents: the Declaration on Employment and Poverty Alleviation in Africa (EXT/ASSEMBLY/AU 3 (111) ), Plan of Action for the Promotion of Employment and Poverty Alleviation (EXT/ASSEMBLY/AU 4 (111) Rev.4) and Follow up Mechanism for Implementation, Monitoring and Evaluation (EXT/ ASSEMBLY /AU/5 (111). The Declaration and Plan of Action (PoA) are wide ranging in their scope. Employment creation has not always been considered as a major objective for sustained equitable economic growth and development Therefore, one of the outstanding features of the Declaration is its integrated approach to social, LSC/EXP/6 (VII) Page 3 economic and governance issues. The challenges, opportunities and commitments indeed require a holistic approach. Principal Elements in the Plan of Action The Ouagadougou Plan of Action (PoA) spells out the fundamental objectives and key priority areas in the promotion of employment and poverty alleviation. Under each priority area, a principal objective is outlined together with related strategies and recommended actions. The primary goal of the PoA is to reverse the trends of pervasive and persistent poverty, unemployment and under-employment on the continent, and to have tangible improvement in the living standards of people and their families. (baseline and targets)The PoA thus provides guidelines and key objectives for Member States to formulate their own mechanisms based on their national needs and specificities. The priority areas are structured not only at national level but also at regional and continental levels of intervention. Member States, in collaboration with principal stakeholders, are called upon to utilize the PoA to develop their own short, medium and long-term National Action Plans to create jobs and eradicate poverty.. The eleven Priority Areas lie at the heart of the PoA. The degree to which the objectives, strategies and recommended actions of these areas are being achieved show whether progress is being made in the implementation of the Ouagadougou process. The measurement of progress is therefore based on the sets of activities under each Area. LSC/EXP/6 (VII) Page 4 Box 1: Eleven Priority Areas of the Ouagadougou Plan of Action 1. Ensuring political leadership and commitment to create to create an enabling environment of good governance for investment, development and poverty alleviation in the context of NEPAD and the attainment of MDGs. 2. Promotion of the agricultural sector and rural development, sustainable management of the environment for food security and development of support infrastructure. 3. Development of an appropriate framework for integration and harmonization of economic and social policies. 4. Improving and strengthening the existing social protection schemes and extending it to workers and their families currently excluded, as well as occupational safety, health and hygiene. 5. Empowerment of women by integrating them in the labour markets and to enable them to participate effectively in the development of poverty reduction strategies, policies and programmes. 6. Human and institutional capacity building for public and private institutions in charge of employment promotion and poverty alleviation, including the social partners and other relevant actors of the civil society. 7. Utilizing key sectors with high employment potential to generate more jobs and allocate adequate resources for that purpose. 8. Building International cooperation, fair and equitable globalization, and partnerships for an enhanced international support to Africa’s efforts towards achieving sustainable development, putting emphasis on the employment agenda, poverty alleviation, regional integration and a better participation in the globalization process. 9. Promoting regional and economic cooperation among the Regional Economic Communities (RECs) in order to expand economic space, intra and inter regional trade, markets and exploit the economies of scale. 10. Targeting and empowering vulnerable groups such as persons with disabilities, aged persons, migrants, children, youth and people infected and affected by HIV-AIDS, Malaria, Tuberculosis and Other Related Infectious Diseases, internally displaced persons, refugees, migrants and the working poor. 11. Mobilization of resources at national, regional and international levels. LSC/EXP/6 (VII) Page 5 Source: AU Ouagadougou (2004) Extraordinary Summit of Heads of State and Government of the AU on Employment Promotion and Poverty Alleviation in Africa. The PoA contains a formidable listing of recommended strategies and actions leading MS to adopt a selective approach and ranking of the priority areas. It is recommended that a successful and sustained implementation requires broad partnerships at Member State (MS), Regional, International and Continental levels. In particular, each MS is encouraged to forge and sustain partnerships with the Media, NGOs, Trade Union and Employer Organizations, civil society organizations (CSOs), faith-based organizations (FBOs), community based organizations (CBOs) and the private sector. This is imperative. A review of the implementation process would necessarily use the variables in the PoA to assess outcomes. However, this assessment has some limitations because there are no specific targets set for MS, RECs and collaborating partners. . Follow up Mechanism and Reporting Process The Ouagadougou Summit placed special importance on the need for follow up and reporting mechanisms. This was for several reasons. First, it was observed that previous African Continental initiatives had not been effectively monitored partly because of lack of coordination and absence of effective Mechanisms for Implementation, Monitoring and Evaluation. Second, there was an urgent need for an integrated, interrelated and coherent implementation and follow up of the Summit recommendations and commitments at national, regional and continental levels (AU, 2004). Third, the implementation process should be reviewed so as to identify progress made as well as constraints. The follow up mechanism is therefore composed of national follow-up institutions, regional follow up LSC/EXP/6 (VII) Page 6 institutions and the African Union Commission. The three sets of institutions would report regularly on the implementation process. At the national level, the expectation was that existing national institutions would be responsible for the implementation and follow up processes. Where such institutions did not exist, they should be established. Several functions for these national institutions were spelt out but the principal one was develop detailed Plans of Action with clear objectives, milestones, roles and responsibilities of stakeholders and development partners using the Summit PoA as a guiding framework. They were also expected to develop indicators to measure the outcome of national plans, prepare country reports with wide consultation with relevant stakeholders and submit them to the AU Commission. At the regional level, each REC was required to establish a regional follow up institution within its structure where one did not exist. Thus each REC would be responsible for the implementation of the Summit PoA in its region. Amongst its functions would be the convening of consultative meetings with national follow up institutions. Finally, at the continental level, the AU Commission would coordinate the follow up and reporting on the overall implementation process at national and regional levels. The Labour and Social Affairs Commission (LSAC), as an organ of AU, would play a central role in this regard. For its part, the AU Commission would prepare an annual report on its follow up activities, analytical reports every two years to assess the status of implementation and a comprehensive evaluation report on implementation every five years. These reports would also serve as inputs into the African Peer Review Mechanism (APRM). Covering the period 2004 to 2009, this report is the first comprehensive report. The next Section of the Report gives the broad economic, social and international context in which the Ouagadougou Declaration and PoA were implemented by Member States, RECs, Social Partners and Development Partners. This LSC/EXP/6 (VII) Page 7 context was a major determinant of the success achieved and constraints experienced in the implementation process. PART 1 THE BROAD CONTEXT OF THIS REPORT Macroeconomic Context 1. This Comprehensive Report should be contextualized. The macro- economic and social context in which the Ouagadougou PoA was implemented between 2004 and 2009 therefore needs to be sketched out albeit briefly. This is because context provides the necessary background against which to assess the implementation process. It also points to the underlying dynamics and imperatives that policy makers and implementers have needed to be sensitive to. Two distinct periods can be discerned: the period of growth (2004-2007) period and the period of the crisis (2008-09). The Period: 2004 - 2007 : Steady Growth but with little job creation content 2. Significantly, the period between 2004 and 2007 has witnessed steady economic growth in most African countries. As a whole, Africa has experienced growth of between 5 and 6 per cent during this period. Leading the growth trajectory were oil and mineral exporters thanks to high commodity prices. Even so, non-mineral economies with 36 per cent of the population also performed reasonably well. 3. Has there been a corresponding growth in employment to match this economic growth? This has not been the case. Extractive industries especially mining are usually not very employment intensive unless they are used as a basis for further processing. LSC/EXP/6 (VII) Page 8 4. While employment growth is very constrained in the absence of economic growth, it is not automatic either in conditions of growth. You can have jobless growth. This means that growth should be employment-oriented. Development policies often still focus on macro-economic variables but not enough on labour market issues. 5. The 2008 ILO report on global employment trends made a number of pertinent observations on labour market conditions in Africa. First, it observed that in 2007, 8, 2 per cent of those entire active in labour markets were unsuccessfully looking for work (ILO, 2008a). The rate did not change in 2006 and 2007, a rate that was only slightly lower than 10 years ago when it was 8, 5 per cent. Indeed, in 2007, there were 24 per cent more unemployed people in Africa than ten years ago. This is sobering. While the 2004 Summit PoA represents a significant response to the employment creation challenge, the present indications are that employment growth will take some time. The Period 2008-2009: Global economic and financial crises 6. The latest indications are that unemployment will rise in 2009 as a consequence of the global financial and economic crisis. The 2009 ILO Global Employment Trends report observed that , after four consecutive years of decreases, the global unemployment rate increased from 5,7 per cent to 6, 0 per cent in 2008, rising for men to 5,8 per cent and for women to 6,3 per cent (ILO, 2009a). In Sub-Saharan Africa, the unemployment rate in past five years had decreased by 0, 6 per cent and stood at an estimated 7,9 per cent in 2008. However, it is significant that vulnerable employment accounted for more than 75 per cent of those employed (Ibid.). Vulnerable employment is defined as a measure of persons who are employed under relatively precarious circumstances as indicated by status in employment. LSC/EXP/6 (VII) Page 9 7. Such workers are less likely to have formal work arrangements, access to benefits or social protection programmes and are more at risk to economic cycles. However, an exceptional trend was that in North Africa where progress had been in reducing the unemployment from a peak of 14, 2 per cent in 2000 to 10,3 per cent in 2008 in line with robust economic growth rates in that region. Below is a bleak scenario mapping of the effects of the crisis on global employment. According to the scenario 1, the global unemployment rate may rise to 6.1% and 198 million will be unemployed, representing an absolute increase of 18 million unemployed in 2007. Under scenario 2 and 3, these figures are estimated to be respectively 6.3% and 30 million, and 7.1% and 51 million in comparison with 2007 (ILO, Source: ILO, 2009a, 2009b. 8. In an update of the three Scenarios in May 2009, the unemployment rate was raised upwards (ILO, 2009b). The number of unemployed was projected to increase by an additional of between 29 million and 57 million between 2007 and 2009. Finally, the proportion of workers in vulnerable employment was set to rise in Sub-Saharan Africa from 73 per cent to 77 per cent in 2009. 9. Global economic crisis, there had been encouraging signs of employment expansion in tandem with growth in a number of sectors. The sectors include tourism and information and communication technology as well as the services. There will be more significant positive developments on completion of the fibre optic cable connection to countries in East Africa in 2009. 10. According to entrepreneurs in the region, the absence of a fibre optic link has prevented countries such as Kenya and Uganda form creating hundreds of thousands of jobs in business process outsourcing (BPO). With new fibre optic links, Kenyans and Ugandans would be able to compete equally for highly prized call centre jobs against Indians, Ghanaians and South Africans (African Business, May 2009). In India, for example, the BPO sector had created 1,6 million jobs and in 2007 grossed revenues of USD 47,8 billion. It is projected that LSC/EXP/6 (VII) Page 10 revenues from the BPO sector could surpass earnings from traditional forex earners like coffee, tea, tourism or horticulture if Kenya and Uganda could achieve just a fraction of India‟s success in this field (Ibid.). The International Context : From Steady Growth to Successive Food, Fuel and Financial and Economic crises The Food, Fuel and Financial Crises 11. We have observed that during the first half of the period under review (2004 to 2007), international economic growth was relatively robust. The above- mentioned growth in Africa cashed in on this global growth especially the increased demand for commodities such as oil and minerals. This growth in international trade was partly stimulated by a voracious appetite for these commodities by China, India and other industrializing economies. However, several developments in 2008 slowed this growth. These relate to significant price rise in fuel and food products leading to bigger import bills in most African countries. It is estimated that of the 37 countries affected most by the food crisis, some 21 were in Africa (African Business, July 2008). There have been food riots in some of these countries. 12. At its meeting in April 2008, the Labour and Social Affairs Commission (LSAC) passed a Declaration on the Food Crisis. The food crisis threatened to undermine the gains made in poverty reduction efforts and employment growth. There was a diversion of funding away from infrastructural and employment- related investment to expenditure on food imports. 13. However, there was a positive aspect to the crisis. It created an opportunity for African countries to resuscitate their agriculture and rural economy and thus in favour of the rural labour market segments. AUC, RECs LSC/EXP/6 (VII) Page 11 and MS should therefore need to revise their rural economy policies in respect of the Ouagadougou Instruments and other relevant instruments of the AU. 14. As we observe below, the adverse impact on financial markets was a collapse in housing finance which then triggered a recession in countries such as the US. Some of the immediate repercussions have been a growth in inflation, and a slow-down in official development assistance (ODA) to developing countries including those in Africa. It is estimated that a financing of USD 40 billion exists in ODA to African countries. 15. ODA would thus be particularly useful now when fiscal pressures are building up, to prevent undue compression of investment budgets and make it possible to maintain the scope and coverage of social safety nets. It is significant that about 23 countries in Africa are vulnerable to a decline in ODA flows. Such flows represented more than 10 per cent of their national income for the period 2000 to 2007. Honouring the Gleneagles Summit commitments would help sustain growth in Africa and mitigate the impact of the global financial crisis (IMF, 2009). The Gleneagles scenario represents an opportunity to provide financing for countercyclical fiscal policies so that African countries can maintain their growth momentum and continue making progress toward the MDGs. 16. Finally, the growth pattern in African countries needs to be sustainable in the medium and long-term. There is a view that the type of growth occurring in most African countries is strongly affected by trends in international markets and in particular commodity prices. The countries may be growing rapidly but without a positive process of diversification and structural change (UNCTAD, 2008). As a consequence, they are vulnerable to the volatility of commodity prices, affecting both exports and imports as well as Africa‟s growth prospects and capacity to generate employment and wealth. The Global Financial and Economic Crisis and Employment LSC/EXP/6 (VII) Page 12 17. The 2008-09 financial and economic crises have been the severest since the Great Depression of the 1930s. Although Africa is not tightly integrated into the global financial system, it has not been spared the effects of the crisis. Growth was reduced significantly from over 5 per cent in 2007 to a projected 2 per cent in 2009. As the Background to the 7th LSAC conference explained, the flows of foreign direct investment as well as migrant remittances have slowed down. Commodity export prices have weakened during the period under review. 18. With the onset of the financial and economic crisis in 2008, employment levels have been directly affected in such economic sectors as mining, manufacturing and tourism. While the crisis has affected countries and sectors unevenly, the broad picture is one of an adverse impact. The effects of the crisis on Employment in Africa are too large and pervasive to ignore. 19. First, the mining sector was badly affected by the economic crisis due also to a decline in international demand. There have been many lay-offs in countries such as DRC (300 000), Zambia (8 000) and Botswana as well as South Africa. Spin-off industries like the diamond processing industry witnessed considerable job losses in 2008-09. Decline in commodity exports of manganese were also experienced in Gabon, and of diamonds in Central African Republic. In Burkina Faso and DRC, there has been a delay in starting up mining ventures due to low mineral prices. 20. Second, key growth industries like manufacturing have been hit due to a decline in demand. For instance, the motor assembly in South Africa had laid off about 40 000 workers by June 2009. Tourism has also been adversely affected by the crisis. Decline in tourist arrivals in countries such as Kenya, Tanzania, Mauritius and Uganda has adversely affected revenues. Cape Verde and Gambia have also seen reduced earnings from tourism. A decline of up to 30 per cent in tourist arrivals has been reported in some of these countries. LSC/EXP/6 (VII) Page 13 21. Finally, there has been a slow-down in remittance flows into Africa from migrant workers and the Diaspora in developed countries. The volume of remittances had steadily become significant in recent years. It was estimated that remittances into Sub-Saharan Africa (SSA) in 2007 amounted to USD 19 billion dollars or about 2,5 per cent of the regional GDP (IMF, 2009). This amounted to the total amount of official development assistance (ODA) received in SSA. With about 80 per cent of its remittances originating in developed countries, SSA is therefore vulnerable to a recession there. For example, a 1 per cent decline in those countries has a significant ripple effect on remittance flows. In Lesotho, remittances account for more than 20 per cent of GDP while in ten other countries for more than 5 per cent of GDP. 22. The short-term effect of the crisis has been lay-offs and very limited opportunities for new jobs. There has been a reverse in the decline in the unemployment rate in Africa. The decline from 8,5 per cent in 2003 to 7,5 per cent in unemployment in 2008 will be halted (ECA and AU, 2009). There are concerns that the crisis will increase the unemployment rate in 2009 as forms reduce production or close factories and mines. In the worst-case scenario, unemployment in 2009 would increase by about 0,6 per cent compared to the 2008 rate. An increase in unemployment would translate into a jump in poverty levels and reduced access to education, health and food security. 23. However, this bleak labour market situation affects certain groups disproportionately. These are notably women, migrant workers and youth (ILO and IILS, 2009). Export-oriented sectors which in most African countries are providers of formal sector jobs, notably for women, faced the prospect of shrinking world markets. However, informal employment would be likely to increase as would „work poverty‟. Conditions in informal economy employment are often dire. In sum, a prolonged recession would exacerbate the unemployment situation. There is some likelihood that the long-term effects of LSC/EXP/6 (VII) Page 14 the crisis will dampen employment growth. Experts have observed that it could take up to 4 years, after a financial crisis, before employment recovers sufficiently. There is often a time lag between an economic recovery and full scale hiring of workers. The Social Context 24. The aggregate pattern of labour and employment trends during the period under review needs to be scrutinized further. The first dimension relates to gender. Observing that a gender gap exists, a survey showed that male employment-to-population continued to be higher for males than that of females (ILO, 2007). Indeed, the gap between men and women has not changed over the past 10 years; the difference between male and female employment –to- population ratios has remained at 22 per cent. The unemployment rates were 9, 1 per cent for women, and 7, 5 per cent for men respectively in 2007 (Ibid.). Agriculture provides the vaster majority of jobs for women with 67, 9 per cent of them in this sector while female employment in industry has remained unchanged at about 5, 8 per cent for ten years. 25. While the share of persons in vulnerable employment in Africa is generally high, it is even higher for women workers. “Of the women working in 2007, some 81 per cent did so under vulnerable conditions as either an unpaid contributing family worker or own-account worker…”(ILO, 2007)..There are other pertinent factors that shape the labour markets in Africa. The first relates to growth in urbanization as well as to increased rural-urban migration. These are interlinked processes. Rising from 20, 9 per cent to 33, 9 per cent between 1975 and 2000, the share of the urban population is projected to increase to 42, 7 per cent by 2015. Outward migration to countries outside Africa has also become a prominent trend with an estimated 20 000 professionals leaving for overseas each year since 1990 (ILO, 2003). LSC/EXP/6 (VII) Page 15 26. An overview of the social context would be incomplete without reference to the phenomenon of the Informal Economy. It is a major and fast expanding segment of the African economies (Meena, 2008; ILO, 2003, 2007). In many African countries, less than 10 per cent of the labour force is employed in the formal economy; most workers are engaged in the informal economy. According to one estimate, the average share of informal employment in non-agricultural employment is about 72 per cent (ILO, 2003). Not only is employment relatively high in the sector but the overall contribution to the economy is about 40 per cent. In some countries, the overall contribution can be higher. At the same time, however, wage conditions are not as attractive as in the formal economy. 27. Employment security is also more precarious in the informal economy. Finally, in both the formal and informal economies, the proportion of the „working poor‟ is substantial. It ranges from 46 to 61 per cent which is estimated to be highest proportion worldwide (ILO, 2003). Thus the challenge of „working poverty‟ is one that remains widespread in Africa. One estimate is that the number of the „working poor‟ has increased over a ten-year period; in 2007, there were 20, 4 per cent more working poor at the 1 USD per day level (ILO, 2008). Between 2006 and 2007, there were an additional 2, 9 million working at the 1 USD per day level. The remuneration for most jobs is thus insufficient for decent conditions of upkeep. 28. Finally, a review of the context in which the Ouagadougou Declaration and PoA are being implemented and the effects of the crisis are being felt would be incomplete without brief reference to attempts to mitigate the situation. Several RECs have been proactive in responding to the crisis. For instance, the EAC held meetings in November 2008, an ECOWAS Summit in December 2008 and a CEMAC Summit in January 2009 to focus on how Member States could respond individually and collectively to the global financial and economic crisis. Similarly, a Tripartite Summit of EAC, COMESA and SADC was held in October LSC/EXP/6 (VII) Page 16 2008 in Kampala called for collective action to help African countries to address the adverse impact of the crisis. 29. The African Development Bank has provided finance to some African countries to stem the crisis (AfDB, 2009). It has been proactive in assisting Member States in mitigating the crisis. PART 2 INSTITUTIONAL DEVELOPMENTS AND FOLLOW UP AT CONTINENTAL LEVEL AU COMMISSION Department of Social Affairs 30. The African Development Bank has provided finance to some African countries to stem the crisis (AfDB, 2009). It has been proactive in assisting Member States in mitigating the crisis. 31. This section of the Report covers the various activities undertaken by the AU Commission to coordinate the follow up of the implementation of the Ouagadougou PoA during the period under review. It covers the role of the Labour and Social Affairs Commission of oversight over the technical units dealing with labour and employment issues in the AU Commission itself. Consultative Meeting, September 2005 32. In line with Decision (13) of the Follow up Mechanism for Implementation, Monitoring and Evaluation, the AU Commission convened a consultative meeting with the RECs and co-operating partners to popularize the Summit outcomes at the regional level. With support from ILO, this AU-RECs meeting was held in Addis Ababa in September 2005. The meeting aimed at strengthening and enhancing cooperation between the AUC, ILO and RECs on LSC/EXP/6 (VII) Page 17 follow up activities to the Summit, and especially underlined the need to strengthen the capacity of RECs in the implementation and monitoring of the PoA. Guidelines and Reporting Format 33. An additional purpose of the September 2005 meeting was to consider and adopt Guidelines to Member States and RECs on follow up to the Ouagadougou Summit, a reporting format and a roadmap for immediate actions. The Guidelines as formulated by the AU Commission were provided with some guiding principles as set out in Table 2. Box 3: Guidelines on Follow up Activities 1. Flexibility should prevail while establishing the national institutions responsible for the implementation of the Summit outcome in case these institutions do not exist. The intention is not to create an additional bureaucracy but rather to adopt a flexible mechanism facilitating the involvement of all stakeholders in post- Summit national activities. 2. National follow up institutions should ensure that they are open to all key stakeholders that will be able to bring value addition with regard to the 11 priority areas of the AU Plan of Action. 3. A multi-sectoral approach at national level should be employed as employment and poverty issues are cross-cutting issues. 4. The national follow up institutions should be closely linked to the national PRSP processes (it would be envisaged that national PRSP Committees would be used as follow up institutions). 5. There should be ensured the widest possible dissemination of the AU Summit decisions and outcomes including through distribution of leaflets, regional and national events, posting on Websites and translation into local languages. 6. National follow up institutions shall establish their own rules of procedure to enable them to carry out their functions. But due regard should be given to the financial implications of the structure. Member States should avoid the creation of a new „artificial‟ institution requiring resources. 7. There should be identified key short-term, medium-term and long-term priority LSC/EXP/6 (VII) Page 18 areas among the priority areas of the Summit PoA and develop a national Plan of Action with objectives, milestones, roles and responsibilities of all national stakeholders and development partners and indicators using the Summit PoA as a guideline framework. 8. Due regard should be given to modalities for the funding of the follow up process at national level. The Plan should indicate how resources will be mobilized. Source: AU Commission, 2006 34. The Guidelines particularly recommended the use of existing inter- sectoral and inter-Ministerial national institutions to be considered in priority to assume responsibility for the follow up activities of the Summit PoA at national level. Where no such national institution existed, the use of alternative existing national institution (for example a national institution of Social Dialogue) should be utilized. Similarly, each REC was expected to use its existing Labour and Social Affairs Department or Unit as a regional follow up institution. If such did not exist, the follow up functions at regional level would be mainstreamed through an existing REC internal structure such as a Sub-Committee or Task Force on social issues. 35. Finally, the biennial reports by Member States and RECs were expected to include concise information on the administrative framework as well as practical measures taken to ensure the implementation of the PoA. The reports would also identify factual and practical situations, measures taken to implement each of the priority areas identified, progress achieved, constraints and limitations experienced, remedial actions needed or taken to fulfill obligations. Regional Follow up Meetings in 2006 36. The AU Commission organized a series of meetings in 2006 in the five RECs to disseminate information on the Ouagadougou Summit outcome and to support capacity building efforts to assist them to fulfill their mandates. The LSC/EXP/6 (VII) Page 19 meetings also considered papers on Integrated Regional Employment Policy Frameworks. The meetings were held in: Windhoek (September 2006) for SADC Member States, Abuja (September 2006) for ECOWAS Member States, Algiers (October 2006) for North African states, Khartoum (November 2006) for IGAD Member States, Yaoundé (December 2006) for ECASS Member States, and 37. At each of these workshops, a regional employment policy framework paper was presented, discussed and adopted. Each of the papers presented an analysis of the employment issues dominant in the region and the strategies to address them. These papers were regional in scope and carried recommended actions to adopt as well as the necessary institutional arrangements to put into place to tackle unemployment and poverty. 38. In line with the Joint EU-Africa Strategy 2009-2011, the Department of Social Affairs in 2008 prepared a Four Year Priority Programme for the Implementation and Follow up of the Ouagadougou Plan of Action. The implementation programme is based on five Strategic Themes namely: The Improvement of the Efficacy and Transparency of Labour Markets in African Countries, The Pursuit of an Inclusive Growth and Equity in African Labour Markets, The Promotion of Productivity, Communication and Cooperation as well as Implementation, Follow up and Evaluation of the programme. 39. Each of these strategic programmes is broken down into practical strategic initiatives for implementation. It is expected that the Programme will provide the AU Commission with a precious tool for advocacy and resource LSC/EXP/6 (VII) Page 20 mobilization. This will complement the resources available to Member States and RECs for investment in priority strategies relevant to the coordinated and harmonized upgrading of African Labour Markets. 40. As requested by the Follow-up Mechanism, the Department of Social Affairs prepared a Strategic Document for Resource Mobilization for the implementation of the Declaration and Plan of Action. This Document was drafted in collaboration with the Directorate of Strategic Planning to support the implementation of the above Four Year Priority Programme. Informal Economy Study 41. The Department of Social Affairs sponsored a study on the Informal Economy in Africa, and this was completed in 2008. The study findings were presented to the 6th Session of AU Labour and Social Affairs Commission 2008, whose overarching theme was Improving the Informal Economy: a Key to Poverty Alleviation (AUC, 2008). There was a substantial discussion of the report leading to a consensus that it needed to be strengthened primarily through adding a set of policy recommendations, strategies and a plan of action. The conference agreed that it would be useful to hold a workshop of experts and some Member States later in 2008 to review and strengthen the study. The workshop was held in Dakar in October 2008. Thereafter, the AUC elaborated a Programme on Upgrading the Informal Economy for the period 2010-2016, with the global objective of promoting the creation of more and better jobs in the Informal Economy, including the rural sector, in the framework of Decent and Productive Employment. The specific objectives are: (i) To Promote pro poor business environment through assessing, reforming and adapting policies and institutions to the needs and expectations of the I.E, as part of the private sector in Africa; (ii) To Improve and broaden the social and policy dialogue by providing the informal and rural workers with the capacity and ability to integrate effectively into its processes and mechanisms; LSC/EXP/6 (VII) Page 21 (iii) To develop and increase effectiveness and efficiency of international cooperation in support to the upgrading of the I.E. (AUC, 2009). Migration 42. Having received prominence in the Ouagadougou Plan of Action, the issue of Migration featured highly in the work of the AU Commission in the period 2004 to 2009. The Commission was actively involved in the formulation of a Migration Policy Framework for Africa and the African Common Position on Migration and Development. The Migration Policy Framework document provides a comprehensive and integrated policy guideline on the thematic issues of Labour Migration Border Management Irregular Migration Forced Displacement Human Rights of Migrants Internal Migration Migration Data Migration and Development as well as Inter-State Cooperation and Partnerships. 43. The policy framework also provides guidelines and principles to assist Member States and RECs in the formulation and implementation of their national and regional migration policies. 44. Furthermore, the AU Commission was instrumental in organizing a Joint Africa-EU Ministerial Conference on Migration and Development in Tripoli, Libya in November 2006. The outcomes of the Conference were a Joint Africa- EU Declaration on Migration and Development as well as the Africa-EU Plan of Action on Trafficking in Human Beings. In June 2009, the Department of Social Affairs facilitated the AUC launch of the AU.COMMIT campaign against trafficking in Human Beings. LSC/EXP/6 (VII) Page 22 45. Finally, other important meetings relating to Migration that the AU Commission participated in the Global Forum on Migration held in Brussels in July 2007. The twin themes of that Forum were (a) Migration and Socio- Economic Development and (b) Strengthening the Links between Migration and Development Policies. The Social Affairs Commission also held consultative meetings on Migration and the Challenge of Brain Drain with the International Organization of Migration (IOM). 46. Since the recruitment of a Programme Coordinator for Migration in October 2007, a two-year 2008-2009 Migration Programme Plan of Activities was prepared and after consultation and approval it is being implemented. Accordingly the following major activities have been performed. These are: Launches of AU.COMMIT Campaign 47. The AU Commission launched the AU Commission Initiative against Trafficking (AU.COMMIT) Campaign on June 16, 2009. The decision to hold this launch on the specified date is due to the significance of June 16 as the Day of the African Child. Joint Launches of AU.COMMIT Campaign. Upon the invitation by the Government of South Africa, the AU Commission also launched the AU.COMMIT Campaign in South Africa in the regional conference organized by the Government of South Africa on the theme: “The implications of implementing laws and strategies to combat human trafficking in Africa through optimizing regional and international relationships” conducted in Johannesburg, South Africa, 13-15 July, 2009. Consultative Visits to the Regional Economic Communities And Member States 48. Consultative visits were conducted to Regional Economic Communities and Member States in 2007-2008 including to IGAD, to the Community of Sahel- LSC/EXP/6 (VII) Page 23 Saharan States (CEN-SAD), the Economic Community of the West African States (ECOWAS), the Republic of Senegal and Popular Democratic Republic of Algeria, and the Federal Democratic Republic of Ethiopia. The purpose of the consultative visits was to follow-up and monitors the implementation of the four AU policies on migration and developments. The consultation visits have allowed the AU Commission to assess the level of implementation of the AU policies, and to discuss on how to harness and increase the efforts RECs further. Recommendations were also made for joint activities. Missions to Different Events on Migration and Development Towards a Continent-wide Regional Employment Network (REN) 49. There was momentum towards the creation of an inter-agency Regional Network on Employment issues in Africa during the period under review. The process began with a Ministerial Statement adopted at the end of the 39 th session of the Conference of African Ministers of Finance, Planning and Economic Development in May 2006. The Ministers recommended the establishment of Regional Employment Forum later renamed Regional Employment Network (REN) to facilitate the formation of a network of technical experts and policy facilitators to assist Member States in developing capacity and facilitate learning and sharing of country-specific experiences. The African Union Commission is involved in this initiative together with ILO, ECA, AfDB and UNDP. A study on how to operationalize REN was completed in early 2008. With its secretariat housed at ILO, REN will be composed of specialists, academics, policy makers, research institutes, employer organizations, labour unions, employment-focused NGOs, regional bodies and international agencies with a strong interest in promoting productive employment and decent work (including informal economy, youth employment and skills development). LSC/EXP/6 (VII) Page 24 Department of Economic Affairs 50. The Department was involved in several initiatives to complement follow up activities relating to the Ouagadougou PoA. First, it sponsored several studies, one on the Micro Finance system in Africa and another on a Common Investment Strategy in Africa. The study findings on the Micro-Finance Sector included the observation that the micro-finance system in Africa has yet to realize its full potential. Even after growing rapidly and extensively throughout Africa since the mid-1990s, access remains limited. As of December 2006, just 4 per cent of the potentially eligible population had access to micro-finance. This amounted to about 26, 5 million people. The study also observed that an improved access to finance for the low-income population segment could lead to significant increases in new job creation, increased incomes and poverty reduction. An African indigenous private sector can flourish if the thousands of micro-entrepreneurs who invest and run micro-enterprises were facilitated and enabled to acquire part ownership in privatized state corporations. It was also argued that from its demonstrated impact, microfinance could be the intervention that finally helps Africa to achieve the MDGs. 51. The study on „Development of a Common Investment Strategy for Africa‟ aimed at making Africa an investment zone through harmonization of investment regimes including policies, laws and practices. The regulatory framework for Labour Markets impinges on investment conditions, as do other aspects of the Ouagadougou PoA. It was anticipated that findings from this study would have some relevance to follow up activities on the PoA. 52. The Department of Economic Affairs was further involved in the formulation of a Declaration of the African Private Sector Forum in 2008. The Declaration related to the role of the private sector in supporting the promotion of regional integration in Africa, the acceleration of Africa‟s industrial development and economic transformation. It also called for the promotion of women LSC/EXP/6 (VII) Page 25 entrepreneurship and their capacity enhancement through appropriate legislation and incentives. The Declaration was considered by a Summit of Heads of State and Government in January 2008. 53. In addition, the Department of Economic Affairs organized an EU-African Business Forum in 2007 in Accra. The Forum focused on encouraging regional integration of markets in Africa, on infrastructure development, ICT with rural access programmes and on entrepreneurship. Finally, the Department was instrumental in drawing up a „Charter on African Statistics‟ aimed at harmonizing the production and dissemination of statistics at national, regional and continental levels. The Charter provides a sound basis for the harmonization of African Labour Market Information Systems. Department of Rural Economy and Agriculture 54. One of the key priority areas of the Ouagadougou PoA is promotion of the agricultural sector and rural development, sustainable management of the environment for food security and development of support infrastructure. The Department of Rural Economy and Agriculture is involved in programmes that have a bearing on this important priority area. The first relates to increased investment in agriculture and food security. The Department is tracking expenditure on Agriculture by member states in the light of the target set in the Ouagadougou Plan of Action. It is encouraging Member States to allocate 10 per cent in their national budget to agriculture as specified under the Comprehensive Africa Agriculture Development Programme (CAADP). The Department has prepared a technical Guidance Note to facilitate country reports in the calculation of the share of agricultural spending in total government expenditure. Adopted by Heads of State and Government in 2006, about 19 countries have used it in tracking their expenditure and making submissions to the AU Commission. Most countries, with the exception of seven, were spending under the threshold of 10 per cent for their agriculture. LSC/EXP/6 (VII) Page 26 55. In 2006, a special Summit was organized by the AU to adopt the Abuja Declaration on Fertilizer for the African Green Revolution. It was organized in cognizance of the fact that Africa needs a Green Revolution which is largely overdue. This is seen as constituting the only way of getting African farmers out of the poverty trap by achieving food security and the MDGs. It was also envisaged to set up an African Farmers‟ Forum . The Forum would reinforce the capacity of rural people and their partners to engage directly in policy dialogue. There is potential here for capacity enhancement in areas such as Social Dialogue in rural labour markets, and in the formation of cooperatives. As we will see below, some RECs are taking an active part in initiating programmes of investment in agriculture and food security. Department of Human Resources, Science and Technology 56. This department is involved in a number of programmes related to employment. It was associated with the Plan of Action for the Second Decade of Education in Africa, which was adopted in 2006. The Plan includes strategies relating to Technical and Vocational Education and Training (TVET) and addresses the promotion of entrepreneurship as well as knowledge and skills related to the world of work. An Implementation Strategy for TVET has been developed with pilot projects begun in 2008 in post-conflict Liberia, Congo and Burundi. Special attention is being given to vulnerable groups such as the youth and girl ex-combatants especially in the Congo. Other activities with a bearing on employment and skills training relate to: A continental strategy for boosting vocational training linked to the labour market and the private sector. and The adoption of the African Charter for Youth in 2006 at the AU Summit in Banjul. Amongst other things, it is aimed at the development of LSC/EXP/6 (VII) Page 27 skills of young people, sustainable livelihood and employment of young people, their health and security. Department of Peace and Security 57. The Department has produced a Framework Document on Post- Conflict Reconstruction and Development (PCRD) accompanied by a Needs Assessment Guide. The two include strategies and actions specific to employment promotion and labour market revitalization. Some of the envisaged activities have been jointly undertaken by the Departments of Peace and Security and of Social Affairs. In 2008 a mission was jointly undertaken by the Department of Social Affairs and the Department of Peace and Security to Liberia, Sierra Leone and DRC to assist in the reconstruction of their labour markets. In 2009, the AUC dispatched a Multi-disciplinary Team of Experts to the same countries, at their request. The mission focused on 6 specific areas of concern for both countries, and youth employment and education were among these areas. The mission assessed the situation of the labour market in the countries and made proposals of actions to be undertaken in the short, medium and long run. It is expected that other MS and the RECs identify the actions in which they can contribute to implement through various kinds of intervention, namely technical, expert or financial assistance. There is also opportunity for the concerned countries to develop labour market projects, if needed with the AUC assistance within the framework of the AU-EU Action Plan and Joint Strategy (2008-2010), Directorate of Gender 58. The Directorate of Women and Gender Development is a focal point that identifies women‟s concerns and by effective interventions incorporate them into AU policies, programmes and activities at the level of the AU Commission, other AU organs, RECs and Member States. It encourages and assists AU MS to implement policies aimed at achieving equity between the sexes by ensuring that LSC/EXP/6 (VII) Page 28 men and women have equal access to the power structures that control society and determine development issues. One key conference organized by the Directorate in 2008 on women empowerment made some important recommendations that: Employment opportunities and income generating activities should take centre stage in women‟s economic empowerment programmes and PSRPs, Target support to women entrepreneurs managing small and micro- enterprises to expand into the formal sector, creating investment funds for women and promoting gender-sensitive legislation on women‟s economic empowerment and Develop policy frameworks that allow women to move away from the informal sector and to encourage them to join the formal labour market (WGDD, 2008). Department of Infrastructure and Energy 59. A major highlight in the role of the Department of Infrastructure and Energy is its cooperation with the EU on Infrastructure Partnership. The partnership has approved 6 inter-regional projects with the major ones being the Port Moresby package, the AUC-AfDB-NEPAD programme on a continental Infrastructure Masterplan and Policy Harmonization. This has been complemented by a strategic study on Harmonization of ICT Policy and Regulation framework. These projects and programmes are expected to lead to considerable job creation. The same expectation relates to the Africa-EU Partnership Programme on Energy which will include the ECOWAS Gas Pipeline project, the Gas pipeline between Nigeria, Niger, Algeria and Europe and a number of hydro-power projects. LSC/EXP/6 (VII) Page 29 PART 3 ACTIVITIES AND DEVELOPMENTS AT REGIONAL AND INTERNATIONAL LEVELS Activities by Regional Economic Communities (RECs) 60. The Ouagadougou Summit identified the RECs as being responsible for the coordination of the Declaration and PoA in their various regions. The main activities of the RECs during the period under review related to their central role in the formulation of regional employment policy framework papers and creation of units for implementation of follow up activities under the Ouagadougou PoA. Economic Community of Central African States (ECCAS) 61. A regional workshop on the follow up to the Ouagadougou Summit was held in Douala in Cameroon in December 2005 to provide an opportunity to ECCAS Member States to prepare their national reports. The workshop provided an opportunity for the dissemination of Summit outcomes, a session on the strategies for integration of employment issues into PRSPs. The regional workshop also addressed the links between employment policies and human resources development, and the global agenda for employment and cooperative entrepreneurship. Economic Community of West African States (ECOWAS) 62. ECOWAS has sought to translate the Summit outcomes into feasible programmes and projects in the Western African region. An ECOWAS Summit in June 2007 placed special emphasis on infrastructure development and regional projects to generate employment opportunities for youth in the region. The involvement of ECOWAS in a Gas Pipeline Project worth USD 620 million reflected a determination to optimize utilization of the huge energy endowments of the region to promote employment. Furthermore, ECOWAS has created a special fund of USD 100 million for investment in agriculture and food security, as LSC/EXP/6 (VII) Page 30 we will see below. Additional funding is envisaged as a response to the food crisis. 63. ECOWAS Member States have committed themselves to setting up an ECOWAS Social Dialogue Forum for dialogue on labour and social affairs as envisaged under the Ouagadougou PoA. Furthermore, a regional agreement on migration has been nurtured. Member States believed that a joint management of migratory flows would enable West African migrants to have access to labour markets based on opportunities available in the region. It is estimated that West Africa harbours about 7, 5 million migrants (or about 3 per cent of the population) from within the region. East African Community (EAC) 64. The EAC set up A regional follow up committee consisting of Ministers of Labour and Employment. The follow up committee meets annually and provides a linkage between EAC partner states and the AUC. During the period under review, the Ministers issued a Declaration on Harmonization and Labour Policies. IGAD 65. The AUC undertook a Follow-up mission to the IGAD, in 2009. The IGAD Secretariat did not prepare its obligatory biennial reports in 2006 and 2008, due to lack of institutional capacities and financial constraints. Likely, the IGAD has not yet put in place its follow-up institution and requests support from the AUC in order to update and build owner ship of the Regional Integrated Policy Framework and engage in its adoption by the competent organs of the IGAD. Out of the seven (07) IGAD Member States, only Kenya, Uganda and Ethiopia have forwarded their biennial report on the implementation of the Ouagadougou extraordinary Summit outcomes, in 2006 and 2008. This makes a reporting LSC/EXP/6 (VII) Page 31 performance estimated at 42.85%, in a region affected by conflicts. This score can be easily improved. 66. The MS reports are not available at the IGAD Secretariat which did not receive them from its MS. Beyond, its own institutional capacity and financial gaps, this is not to facilitate for the IGAD Secretariat to discharge its coordinating and reporting responsibilities, functions and roles. 67. The Region is handicapped by a great capacity gap, with only one permanent staff as head of the Social Affairs Service. She is holding a large/broad portfolio with health, Education, Employment/Labour, Migration and Gender. The staffing approach of the structure is project based and relationships with the MS are facilitated through project resources. Thus, the Head of the Social Affairs Desk is assisted in Health and Migration areas with consultants seconded through: - The Regional HIV-AIDS project supported by the World Bank (USD 15 000 000) and the CIDA/Canada (USD 8 000 000); - The Migration project supported by the IOM, with one seconded staff dispatched to Djibouti. Ministerial and experts sectoral Committees were established in the course of these projects. 68. Furthermore, the Social Affairs Desk is very recent, as it results from the 24th Ordinary Session of the IGAD Council of Ministers, Nairobi, 17-18 March 2005. The Council adopted a resolution for the “establishment and the operationalization of the Health and Social Affairs Desk at IGAD” However, It should be mentioned that the IGAD is running an important project on Social Protection, with the support of the European Commission. LSC/EXP/6 (VII) Page 32 69. The IGAD is willing to be assisted by the AUC in elaborating and adopting its Regional Social Policy Framework, in line with the Continental instrument in this area, adopted in Windhoek in October 20081. 70. There was a consultative visit made to IGAD Secretariat by a representative of AU Commission in 2008 to discuss issues pertaining to Migration and Employment. There were follow up consultations in July 2009. Southern Africa Development Community (SADC) 71. A number of important meetings on Employment-related issues were held during the period under review. For instance, in 2007, SADC Ministers of Employment and Labour examined the following issues: the SADC Employment and Labour Programme and the SADC Declaration on Productivity. The Ministerial meeting in 2007 reviewed the implementation of the Ouagadougou PoA and urged Member States to formulate and adopt National Plans of Action as well as adopt structures to implement them. 72. In 2008, the SADC Employment and Labour Committee of Ministers and Social Partners was approved as a permanent structure of the newly restructured SADC to address challenges of employment and labour in the region. Two tripartite technical subcommittees were set up, one on Social Protection and the other on Employment and Labour. 73. Finally, a SADC conference in 2008 adopted the Integrated Employment Policy Framework for the region as a basis for Member States to address employment and poverty in the region. The Regional Policy Framework was developed in conjunction with the AU Commission. The components of the Policy Framework were incorporated into the SADC Employment and Labour Policies 1 AUC, 2009, Report of Follow-up Consultative Visit to the IGAD, LSC/EXP/6 (VII) Page 33 within the context of the Regional Indicative Strategic Development Plan (RISDP). ROLE AND ACTIVITIES OF INTERNATIONAL PARTNERS UN Economic Commission for Africa (ECA) 74. The ECA published a major report on Employment Promotion in 2005. With the theme ‘Meeting the Challenges of Unemployment and Poverty in Africa’, the Report argued that African countries needed to grow by about 7 per cent a year to reduce poverty enough to achieve the MDG goal of halfing the number of poor people by 2015. It also observed that prerequisites for creating decent employment include the transformation of African economies from low productivity agriculture to high value agriculture and agro-processing –and to the growing industrial and services sectors, taking advantage of the opportunities presented by globalization (ECA, 2005). ILO 75. ILO has contributed significantly to the Ouagadougou Process (before and after the Summit in 2004). It has been actively involved in all the 11 priority areas identified for enhanced employment creation. 76. Following the Summit in 2004, ILO prepared the „African Guidance/Orientation Note‟ on support to the follow up at continental, regional and national levels. The Guidance Note provides a blueprint for ILO‟s operational and strategic support to the implementation of the Ouagadougou PoA. It focuses on establishing the Decent Work agenda as a model of policy coherence and identifies employment within the context of fair globalization and gender equity, as an essential cornerstone to sustainable poverty reduction. LSC/EXP/6 (VII) Page 34 Henceforth, ILO aligned its work plans with the Summit outcomes and recommendations and to assist the AUC and its members in implementing the programme. 77. ILO has continued to cultivate close cooperation with the AU Commission, RECs and Member States on employment and labour issues during the period under review. An AU/ILO Joint Task Force was launched in February 2006 with the aim of providing a forum for strategic thinking, analysis and formulation of proposals to stimulate employment creation in Africa based on the Ouagadougou Summit commitments. The Task Force meets periodically. In addition, in order to better support the implementation of the Ouagadougou Summit commitments, ILO Regional Office for Africa recruited a Macroeconomist in 2006. 78. Furthermore, ILO assisted the AU Commission in the production of the Ouagadougou outcome documents in the form of brochures and CD-ROMs in the four official languages of AU: English, French, Portuguese and Arabic. In addition to providing support to the AUC to hold the above-mentioned five workshops of Regional Employment Policy Frameworks, ILO seconded a Consultant to the Division of Labour, Employment and Migration from May 2007. In a capacity building related activity, the role of the Consultant is to provide analytical, policy and technical support to the Department of Social Affairs in the field of employment. 79. At the national level, ILO continued to support the mainstreaming of the Decent Work Agenda into national development plans and frameworks, and the integrating of employments issues into PRSPs. Support has also been provided in such areas as: Formulation of national employment strategies and policies, Improving labour market information and analysis, LSC/EXP/6 (VII) Page 35 Entrepreneurship training including of women, Inputs into the development of a framework for harmonization of economic and social policies and Youth employment and action plans. 80. In addition, as observed above, ILO has worked closely with RECs like ECOWAS, ECCAS and SADC on employment-related matters and follow-up matters in the post-Ouagadougou period. 81. A re-dedication by ILO‟s constituents to the implementation of the Ouagadougou Summit commitments featured prominently at the 11th African Regional Meeting (Addis Ababa, April 2007) during which the Decent Work Agenda in Africa 2007-2015 was adopted. The Decent Work Agenda in Africa 2007-2015 constitutes a consolidation of the actions undertaken by ILO and its constituents to follow up on the Ouagadougou Summit of 2004. 82. Finally, ILO was involved in a sub-regional initiative, the Employment Promotion and Poverty Reduction Project (APERP) launched in March 2007 within the framework of the Ouagadougou Declaration and PoA. The project covers nine countries in Francophone Africa: Benin, Burkina Faso, Burundi, Cameroon, Cote d‟Ivoire, DRC, Gabon, Mali and Niger. Specifically, the projects aims at the: Development of employment policies which are more effective and efficient particularly by improving labour market policies and labour market information systems, Strengthening the capacity of constituents in the area of employment and poverty reduction strategies and Encouraging employment targets within public investment policies and projects. LSC/EXP/6 (VII) Page 36 83. The activities of RECs and international Development Partners were more extensive than could be captured in a Report of this scope. These follow up activities complemented the specific and systematic activities undertaken at Member State level to implement the PoA. The next Section provides a detailed picture of those activities. PART 4 ACTIVITIES BY MEMBER STATES AND OTHER STAKEHOLDERS IN THE 11 PRIORITY AREAS Priority Area 1: Ensuring political leadership and commitment to create an enabling environment of good governance for investment, development and poverty alleviation in the context of NEPAD and the attainment of MDGs. 84. This Priority Area relates to the creation of a conducive environment for investment, development and poverty alleviation as well as substantial employment creation. The institutional dimension for this is important. Governments have sought to create or readjust existing institutions for the creating of this enabling environment. 85. Some countries demonstrated a strong political leadership in employment policies through high level involvement of the Heads of State (See Box 1). Box 3: High Political Leadership in Employment Policy LSC/EXP/6 (VII) Page 37 At the occasion of the celebration of the 58th anniversary of the international Declaration on human rights, a “Tunisian Presidential Pogramme” was put in place in December 2006, in order to ensure jobs to one or more unemployed young person(s) issued from low income households. The program started in 2007 and 17 400 beneficiaries were selected after an identification process. One thousand six hundred (1600) of them held a university degree, 1550 a vocational training diploma and 14 240 were without any diploma. Their professional insertion was facilitated through apprenticeship, vocational training, self- employment aid and wage employment. Ninety three (93%) of them were inserted in the labour market by 2007. The President of Niger initiated a “Special Presidential Initiative”, in the framework of the PRSP. The purpose is to open opportunities for the beneficiary populations to have access to income generating activities and to basic social services. The initiative consisted of a number of infrastructure construction in education, rural infrastructures, health and reforestation, and in micro credit for women. As results in all regions of the country, in the first phase, 2000 people were recruited in health and education, 1000 young rural workers were trained and provided with start-up aid, and 3000 professionals were recruited every year in the public service. In the second phase, 278 152 jobs were created out of which 133 517 are salaried jobs and 144 653 non salaried ones. In 2007, the President of the republic of Djibouti put in place the “National Initiative for Social Development (NISD)”, as the strategic framework for poverty reduction in the country. This was a strong political leadership which was supported by new and strong institutions ensuring the necessary operational leadership required for the success of the “NISD”. To this effect, the following structures were created by law: The State Secretariat of Social Solidarity (SSSS) The Djiboutian Agency of Social Development (DASD) The National Solidarity Fund (NSF) The National Agency of Employment, Training and Professional Insertion (NAETPI) The NISD has four Priority Axes: (i) Promotion of access to basic social services, (ii) Restructuring of the national productive infrastructure in order to create the necessary and enough employment for poverty eradication and unemployment reduction, (iii) Assistance to highly vulnerable people or with specific needs and (iv) Promoting good Governance. Sources: Tunisian Information Note for the Ouagadougou +5 Report Niger Information Note for the Ouagadougou +5 Report AUC, 2009, Report of Follow-up Consultative Visit to the Republic of Djibouti, LSC/EXP/6 (VII) Page 38 86. It is significant that a sizeable number of Member States have sought to incorporate employment into their PRSPs. (Note that in 2006, of the 60 countries globally that had developed full or interim PRSPs, some 31 were in Africa). For instance, employment targets were incorporated into Tanzania‟s PRSP entitled National Strategy for Growth and Poverty Reduction. Employment has been mainstreamed into Ethiopia‟s Sustainable Development and Poverty Reduction Programme (SDPRP) and 5- year Plan to Accelerate Sustained Development to End Poverty (PASDEP). Lesotho has used its Poverty Reduction Strategy (PRS) as the basis of its employment creation programmes. Other countries that have similarly integrated employment into PRSPs include Burkina Faso, Ghana, Madagascar and Liberia. 87. The Liberian experience in integrating employment challenges and strategies in its PRS is a comprehensive one, under the Pillar II: “Economic Revitalization. Box 4: Generating Productive Employment in Liberia One of the government‟s most important goals during the PRS period is to promote the rapid creation of productive employment that will reduce poverty, ensure peace and stability, and enhance the overall well being of the Liberian Population. Rapid job creation is central to maintaining security (specially jobs aimed at the conflict-affected and youth), reducing poverty, and generating income for women, persons with disabilities, and other marginalized groups…The challenge is to shape the revival of the growth process in a way that promotes to the fullest extent possible the creation of productive and remunerative employment. The major source of job growth will be the private sector employment agriculture, mining, forestry, and construction and other services. This will be completed by emergency short-term measures that focus on labour intensive infrastructure projects, urban sanitation and clean-up projects. The major challenges are: (I) outdated labour laws, weak labour administration machinery and poor communication between employers and employees, (ii) lack LSC/EXP/6 (VII) Page 39 of labour market information systems and labour market data including employment data, (iv) inadequate and inappropriate skills and knowledge in the labour force, (iv) weak linkages between education and labor market needs, (v) unequal and limited opportunities for women, youth and persons with disabilities, and (vi) the impact of malaria, HIV and AIDS, and other diseases on productive segments of the population. To face these challenges, the Liberian PRS outlined 3 strategies: 1. To strengthen overall labour policy and administration; 2. To create more and better jobs for Liberian men, women and youth, and 3. To develop a National Labor Market Information System. Source: Liberia Poverty Reduction Strategy, Government of Liberia 88. The Government‟s Economic Recovery Strategy (ERS) in Kenya sought to create 500 000 new jobs by 2007 (Zepede, 2007; Pollin et. al., 2007). For its part, Zimbabwe has sought to implement the Ouagadougou PoA through its Ministry of Public Service, Labour and Social Welfare where a structure was created specially for that purpose. Three ministries (MPLSW, Youth and Employment Creation) have closely cooperated in mainstreaming employment in all economic interventions. 89. While some Member States organized National Consultations on Employment during the period under review, it would appear that some did not indicate whether they had done so. Countries such as Zambia established working relationships with NGOs and the private sector in the formulation of its National Employment and Labour Market Policy. Lesotho set up a Working Group drawn from the Ministry of Employment and Labour, the Central Bank, Chambers of Commerce and parastatals to draft a National Employment Policy in 2008. In 2007, a National Employment Forum in DRC recommended an Employment Promotion Plan which was subsequently transformed into a National Employment Policy. LSC/EXP/6 (VII) Page 40 90. In fact, a considerable number of Member States formulated national employment strategies or national employment policies during the period under review. By early 2008, about 22 Member States had designed such employment strategies or were in the process of doing so. Clearly, the Ouagadougou PoA lent some urgency and momentum to the process of designing and implementing these strategies and policies. 91. In sum, it is notable that while some countries put in place new structures to implement the Ouagadougou PoA, a majority of them made use of existing and incorporated a number of other stakeholders. Amongst the countries that set up inter-ministerial committees were Burundi, Cameroon, Chad, Central African Republic and Democratic Republic of the Congo (DRC) to follow up on the PoA commitments. A few countries like Egypt has put in place a High level National Committee on the Ouagadougou 2004 Summit implementation and follow-up chaired by the Prime Minister. Furthermore, Egypt has developed a tremendous set of investment and export employment oriented policies that have led to a significant increase of foreign and local investments and jobs creation. 92. Burkina Faso, Tanzania and Burundi developed a gender-sensitive employment action plan in their PRSP process. Cameroon developed an employment strategy in its PRSP while Ethiopia developed a pro-poor strategy as part of its national employment policy. Other countries that incorporated national employment strategies or plans into PRSPs were Liberia, Madagascar and Zambia. 93. Yet institutional and financial constraints continue to hamper the effective implementation of National Employment Policies adopted by the countries. There are also countries which have not yet elaborated a National Employment Policy. LSC/EXP/6 (VII) Page 41 The AUC should request from MS to provide their national employment policy in order to establish a database and be able to assist its MS in case of necessity and at their request, or to issue general advice in the field. Priority Area 2: Promotion of the Agricultural Sector and Rural Development, Sustainable Management of the Environment for Food Security and development of Support Infrastructure 94. Several countries highlighted the centrality of their agriculture and rural development sector to their employment creation strategies. For instance, Ethiopia stated that its economic growth had been led by the agricultural sector and that agriculture-led industrialization (ADLI) was a major pillar in those strategies (Ethiopia Government, 2008). There was also serious attention paid to agriculture by Tanzania whose Agriculture Sector Development Programme focused on improving agribusiness, agro-processing and quality extension services during the period under review. Other countries that mentioned significant developments in their agriculture were Zambia, Zimbabwe, Lesotho, Burkina Faso, Tunisia, Madagascar and South Africa. In 2007, Rwanda was the venue of the first country round-table of CAADP at which the Rwanda compact of the programme was signed. Through the compact, Rwanda committed itself to increasing budgetary support to the agricultural sector. Egypt has undertaken an ambitious multi- sectoral program of rural property rights and land cession in a great number of villages along side with health services targeting 40 per cent of the rural areas in the five coming years and with rural electrification programme and micro credit schemes involving the poor rural households. 95. An interesting phenomenon in agricultural producer countries was that of agricultural market exchanges. They sprouted in a number of countries during the period under review. The agricultural exchanges in Ethiopia, Kenya and in LSC/EXP/6 (VII) Page 42 other countries enhance a more efficient marketing of commodities. The Benin Strategic Framework for the economy gives priority to the rural areas. Burkina Faso has launched an Assistance Programme on Rural Employment that aims to promote youth employment in the rural area through rural micro enterprise and cooperative development. The ILO took considerable interest at its 2008 Conference in Geneva in examining how the promotion of rural employment contributed to poverty reduction. The Conference observed that: Rural areas are characterized by great diversity and should not be conceived of as being exclusively agricultural… Rural employment strategies should form an integral part of national employment strategies and should aim to eliminate poverty…’’ (ILO, 2008b). 96. The national biennial reports do not give evidence on how employment is integrated with agriculture policies. It seems that there is a need to have institutional and political mechanism for integrating and coordinating agriculture sectoral development policy with employment policy. 97. Despite the clear spill-over benefits that agriculture growth provides, government budgetary support is still tardy in some countries. In 2007, a survey of budgetary allocations by 19 countries showed that 63 per cent of them allocated less than 5 per cent, while 21 per cent allocated between 5 and 10 per cent (UNECA, 2007). Clearly there was need for a comprehensive mechanism for monitoring progress towards the 10 per cent target. While a tracking system has been tested in 19 countries, data collection from other countries remained a challenge (Ibid.). It is worth recalling that India and China spent about 10 per cent of their budgets during the Green Revolution which helped these countries to significantly increase food production in the 1960s and 1970s. 98. A review of state support policies for agriculture should highlight some successful „good practice‟ cases. During period under review, Malawi made LSC/EXP/6 (VII) Page 43 enormous strides in stepping up food production. It attained food self-sufficiency and produced surpluses for export as well as is explained in the Box below: Box 5: Malawi Agricultural Success Story ________________________________________________________________ Four years ago Malawi faced starvation… Then the National Assembly decided to give 3, 4 million coupons to small-scale farmers to subsidize inorganic fertilizer and improved seeds. The programme was aimed at empowering small-scale farmers and households were limited to two 50 kg fertilizer bags each. When the 2006 season started, the country held its breath. The strategy worked – Malawi more than doubled its maize production. Government repeated this in 2007. There was enough maize in 2007 for the country to start exporting… Source: Mail and Guardian, 19 June 2009 Table 1: Level of Agricultural Investment per GDP, 2007 At least 10 per cent: Burkina Faso, Cape Verde, Chad Ethiopia, Mali, Malawi and Niger From 5 to less than 10 per cent: Benin, Equatorial Guinea, Ghana, Guinea, Kenya, Lesotho, Madagascar, Mozambique, Senegal, Sudan, Gambia, Tunisia and Zimbabwe Less than 5 per cent: Algeria, Botswana, Burundi, DRC, Egypt, Gabon, Liberia, Mauritius, Nigeria, Rwanda, Sierra Leone, Tanzania, Uganda and Zambia. CAADP newsletter (2008) ‘The 10 per cent that could change Africa’ 99. In discussing the developments in agriculture and how they contribute to employment creation, the new phenomenon that has been termed „land grabs‟ cannot be ignored. Some African countries including Ethiopia, Sudan and Mali, amongst others, have provided land for overseas countries to undertake LSC/EXP/6 (VII) Page 44 production. One report observed that one of the lingering effects of the food price crisis of 2007-08 on the world food system is the proliferating acquisition of farmland in developing countries by other countries seeking to ensure their food supplies (von Braun and Meinzen-Dick, 2009). The land acquisitions have the potential to inject much needed investment into agriculture and rural areas in poor developing countries, but they also raise concerns about the impacts the local people who risk losing control over land on which they depend. 100. It was added that food importing countries with land and water constraints but rich in capital, such as the Gulf States, were at the forefront of new investments in farmland abroad (Ibid.). Furthermore, countries with large populations such as China, South Korea and India are seeking opportunities to produce food overseas. One perspective is that most of the land deals tend to be designed to benefit local elites than local farmers (Economist, 21 May 2009). Some use foreign labour and export most of their production harming local markets. So until they show otherwise, a dose of skepticism should be mixed with the premature hopes that the land deals have engendered (Ibid.). There need to be international guidelines or code of conduct on how the land deals and projects are negotiated and implemented. Priority 3: Development of an appropriate framework for integration and harmonization of economic and social policies; 101. The overall objective of this priority area is to achieve an integrated and holistic approach in social and economic development in order to effectively contribute to employment creation and poverty alleviation. The recommended actions to achieve the objective were spelt out as: Development of a social policy framework for Africa; Promoting multi-sectoral structures; and LSC/EXP/6 (VII) Page 45 Advocacy for employment promotion and poverty reduction through, increased media coverage of issues of poverty and employment and special events/promotional activities targeted to the issue. 102. Specific activities that would facilitate the process of attaining progress in this priority area included the development of a social policy framework for Africa, the promotion of multi-sectoral approaches as well expanded advocacy for employment promotion and poverty reduction. 103. The AUC made progress in developing a Social Policy Framework for Africa. After extensive consultations by the AU Commission and with Member States, the Framework would be debated and adopted at the Meeting of Social Development Ministers held in Windhoek in October 2008. This will facilitate the integration of elements of the Social Policy framework into national and regional Plans of Action on social and economic issues including employment creation and poverty reduction. Box 6: AU Social Policy Framework in Africa, a summary Drawing upon the strategic objectives of the AUC social programme, the Social Policy Framework aims to provide an overarching policy structure to assist AU Member States in the development of their national social policies to promote human empowerment and development. The framework moves away from treating social development as subordinate to economic growth, but justifies social development as a goal in its own right. It acknowledges that while economic growth is a necessary condition of social development, it is not exclusively or sufficiently able to address the challenges posed by the multi- faceted socio-economic and political forces that together generate the continents social development challenges. LSC/EXP/6 (VII) Page 46 The Social Policy Framework focuses, in no particular priority, on 15 key thematic social issues: population and development; labour and employment; health; HIV-AIDS, TB, malaria and other infectious diseases; migration; agriculture, food and nutrition; the family; children, adolescents and youth; ageing; disability; gender equality and women‟s empowerment; indigenous culture; urban development and environmental sustainability. In addition, the following issues deserve particular attention in Africa: drug abuse and crime; sport; civil strife and conflict situations; the impact of globalization and trade liberalization and foreign debt. Source: AU Commission, 2008 104. What progress have individual Member States made on this front? Tanzania has mainstreamed its employment creation strategy into its Development Vision 2025 into its PSRP (Mkukuta) sectoral policies relating to SMEs and empowerment of entrepreneurs. These were accompanied by policy reforms that recognize the private sector as an engine of growth and employment creation. Tanzania was also conducting media advocacy on employment creation. Through its PASDEP programme, Ethiopia has eight pillar strategies that included building an all-inclusive implementation capacity, a massive push to accelerate growth, strengthening the infrastructure backbone of the country and strengthening human resource development (Ethiopia Government, 2008). A steady growth (7 per cent) of industry and trade had been registered during the period under review. 105. Linkages between agriculture and industrial sectors provided an opportunity for the expansion of service sectors such as transport, finance and tourism. Several challenges were outstanding: how to manage the dynamics of population growth and the expansion of labour-intensive productive activities, LSC/EXP/6 (VII) Page 47 and the promotion of MSE sector and its integration with the TVET system to increase youth employment. 106. In the case of Zambia, employment issues were integrated into the Fifth National Development Plan (2006-2010). Other forms of integration included decisions taken at REC level to harmonize policies on migration and employment creation as in the cases of ECOWAS and SADC. Harmonizing of labour and social policies in SADC has been given a fillip by adoption of a plethora of the following documents: Policies, Priorities and Strategies on Employment and Labour in SADC, Charter of Fundamental Social Rights in SADC, SADC Code of Conduct on Child Labour, Code of Conduct on HIV-AIDS and Employment. 107. There has also been some movement towards the harmonization of investment strategies at the regional level. A project on ‘Social Dialogue and Foreign Investment’, for instance, seeks to enhance the capacity of the SADC Secretariat and the umbrella employers‟ and workers‟ organizations to implement a SADC Social Charter through dialogue and regional consultative mechanisms (SADC, 2008). This dialogue led to the formulating of a regional policy proposal for a framework for Foreign Direct Investment (FDI) in SADC. The expectation in 2008 was that this process would lead to the development of regional rules, institutions and policy framework for FDI. 108. Member States view the SME sector as one possessing high employment potential. Policies have been formulated in some of them to provide a conducive environment for their growth. Amongst others, South Africa, Uganda, Zimbabwe and Burkina Faso have active programmes to encourage growth in LSC/EXP/6 (VII) Page 48 this sector. Namibia sought to provide support for the SME sector through improved access to credit, training, market outlet development and product innovation. In 2008, Mauritius sought to set up One-Stop Shops to facilitate the setting up micro-enterprises. 109. Some of the Member States that have invested resources into employment creation through support of enterprise especially for women and cooperatives are Burundi, Congo and Uganda, Some 5 000 informal economy workers were beneficiaries of the programme in Uganda.. The SIYB programme of ILO was implemented in Benin, Burkina Farso, Cote d‟Ivoire, Guinea, Mali, Mauritania, Senegal and Togo resulting in the training of over 7 500 women entrepreneurs. The WEDGE programme run in Ethiopia, Kenya, Tanzania, Uganda and Zambia assisted women entrepreneurs access to financial services, and sought to build capacity of their entrepreneurial organizations. Priority Area 4: Establishing, improving and strengthening Social Protection schemes and extending them to workers and their families currently excluded. 110. This Priority Area relates to establishing, improving and strengthening social protection schemes and extending them to workers and their families as well as occupational safety, health and hygiene. The overall objective is to extend and enhance safety nets including social protection for better working conditions for men and women, in particular, the most vulnerable including youth, women and those infected and affected by HIV-AIDS, Tuberculosis and other infectious diseases. The strategies that were pursued included ensuring the best working and living conditions of all men and women as a tangible aspect in the fight against poverty, and increasing productivity by improving safety, hygiene and health of workers. LSC/EXP/6 (VII) Page 49 111. There have been a series of important initiatives in the provisioning and strengthening of social protection during the period under review. Most Member States have some social protection programmes of one kind or another. Some have pension and medical assistance schemes, others have schemes for the disabled and so forth. In Southern Africa, SADC reported that some countries have introduced comprehensive social security schemes aimed at providing contingencies such as unemployment, sickness and maternity benefits (SADC, 2008). However, the African Union Commission initiatives known as Livingstone 1and 2 have played an important part in developing continent-wide consensus on Social Protection between 2006 and 2008. At those consultations, Member States resolved to: Strengthen social protection and cash transfer interventions, Explore linkages with national programmes on social protection, Africa- wide social development programmes and targeted AU policies, Adopt comprehensive social protection schemes for older people, Introduce universal social pensions and Coordinate implementation of social protection measures involving ministries through a comprehensive national coordination framework (AU and HAI, 2008). 112. There followed six national consultations (in Burkina Faso, Cameroon, Mozambique, Rwanda, Sierra Leone and Tunisia) to extend social protection for the poorest people in those countries. Each of the consultations reviewed national social protection policies, plans and budgets, discussed past and future challenges and successes as well made recommendations for future action. In short, each national consultation affirmed the importance of political will to raise the profile of social protection as national priority area; LSC/EXP/6 (VII) Page 50 reflected a need for a shared and coherent vision of social protection in Africa; highlighted the challenges of social protection programmes being located in distinct ministries that do not operate within an overarching social protection policy; agreed that there is an urgency for policy makers in finance and planning ministries to engage with social development and social security experts to draw up strategies, design pilots and calculate the budgetary requirements of programmes (Ibid.). 113. Finally, the national consultations highlighted that a vital element of extending social protection should be more investment in capacity building (in structures, administration and technical issues; the importance of greater sharing of evidence to inform future policy as well as underlined the importance civil society and state partnerships in scaling up social protection to a national level) (Ibid.). 114. From the three regional meetings of experts on Social Protection held in Kampala (April 2008), in Cairo (in May 2008) and in Dakar (in June 2008), several key recommendations emerged. These were on: Building political consensus for social protection – establish appropriate legislative and political frameworks for Social Protection where it does not exist, review and amend National Constitutions, and political manifestos to include the right to social protection; Design and targeting of social protection programmes: develop and implement a minimum package of social protection programmes that take into account the unique circumstances of each country, existing social security and humanitarian assistance measures and compliance with agreed regional and international Conventions and treaties; Securing Financing: Develop costed and prioritized national plans and strategies for social protection within the planning cycles of each country and establish specific budget lines for social protection that should not be less than 2 per cent of GDP; LSC/EXP/6 (VII) Page 51 Strengthening capacity, coordination and communication: put in place effective inter-ministerial and inter-sectoral mechanisms to improve coordination and harmonization of the roles of all stakeholders, including ministries of Finance. AU Commission will provide leadership to address Social Protection opportunities and challenges in Africa in collaboration with all stakeholders and hold biannual conferences to assess progress on the implementation of Social Protection programmes (AU and HAI, 2008). 115. Various Member States included reporting on the state of their social protection programmes. Amongst others, they include: Namibia extended its social security system to include pension funds and medical aid schemes, and activated a Social Security Development Fund for job creation. Tanzania drafted a Social Security Bill in 2008 and efforts were undertaken to establish Social Security Schemes to cover the informal sector, as the Social Security schemes available cover only formal sector employees. This gives an opportunity for the informal sector and other privately employed individuals to enter in a number of social security benefits, and other vulnerable groups like the poor families, PLWDs, unemployed Youth, elderly and rural poor. The Occupational Health and Safety Authority (OSHA) have been established as a government agency to deal with occupational Safety and Health issues currently in the formal sector. In addition, a National Aging policy and a National disability policy are in place. In Zambia the coverage of Social Protection in the formal expanded during the period under review. A good proxy for the coverage of social protection indicates that 495,000 people are covered in the formal sector, Current Factories Act does not include the informal sector. Lesotho strengthened its existing social protection schemes and finalized a Social Welfare Strategic Plan and a National Action Plan for Orphans and Vulnerable Children. In Nigeria, the National Social Insurance Trust Fund (NSITF), was established as the sole government agency statutorily vested with the function of providing LSC/EXP/6 (VII) Page 52 social security, social protection for the poor, the aged, the disabled and other disadvantaged members of the population. It is pursuing a strategic plan entailing: the enactment of the Employee Compensation Bill (ECB), the Youth Opportunities Program (YOP), the Informal Sector Programme (ISP), a Micro Finance Scheme for the physically challenged, and a Mass Housing Scheme Owner/Occupier as part of the Family Benefit, etc. Box 7: Ghana National Health Insurance Scheme (NHIS) The Ghana National Health Insurance Scheme resulted from a process that led to a policy framework engineered by the Ministry of Health to promote „Multi Scheme Health Insurance System‟. The goal was to create a system that embraced both the formal and informal economies, providing affordable health insurance to the majority of Ghanaians and exemptions for the indigents. The framework envisaged that „community based health insurance schemes and mutual health organizations for the informal economy will be a component of the multi scheme health insurance system that will meet the needs of the rural and urban informal economy operators‟ The planning, monitoring and evaluation of the Ministry of Health is charged with facilitating and supporting districts and regions that wish to establish insurance and prepayment schemes for the population they serve. The new policy framework created room for baseline studies that were used to inform the process. These included household surveys of willingness to pay, for health insurance, studies for district health accounts and studies for drug prescribing and stock levels of districts health insurance. This process is what finally led to the Ghana National Insurance Scheme. The Ghana National Insurance Scheme was passed by an Act of Parliament in 2003 and came into force in November 2004. The purpose of the Insurance policy was “to secure the provision of basic health care services to persons resident in the country through mutual and private health insurance schemes and to accredit and monitor health care providers operating under health insurance schemes; to establish a National Health Insurance Fund that will provide subsidy to licensed District Medical Health Insurance Schemes (DMHIS)‟‟. The NHIS, defines the national minimum benefit package, accredits medical providers in health insurance system, approves and oversees the operation of DMHIS. The funding of the scheme comes from multiple sources, including payroll tax imposed on informal employees, transfers from the core government budget as authorized by Parliament, investments from the National Insurance Schemes, gifts and grants. LSC/EXP/6 (VII) Page 53 In addition to the National Health Scheme, the government of Ghana established the Ghana Social Trust Fund with the aim of supporting development of pluralist health care financing system and the extension of social protection benefits to those who were excluded before particularly workers in the informal economy. A subsidizing mechanism for the poor was developed to ensure that the general and financial governance mechanisms of DMHIS are adequate to ensure viability and sustainability. The government of Ghana aims to incorporate 50-60% of the residents within a period of five years. As of December 2007, 47% of the national population had registered. Of this population, more than half, is exempted (63.7%) of those exempted, 20% are from informal sector and 9.6% from the formal sector .The extension of the scheme to cover the total population will depend upon availability of resources, continued political will to support the scheme as well as long term empowerment programs which will enable citizens to contribute to the scheme without sacrificing the welfare needs of other aspects. Source: Improving the Informal Economy, LSC EXP 4 (VI), African Union, 2008 Box 8: Conclusions of the Dakar Conference on Social Protection, June 2008 Political will is necessary for extending coverage, securing budget and delivery of good quality and sustainable programmes. There is need for a shared vision, for public debate on need for social protection in public policy and it is important to link media, civil society and government on issues of rights and solidarity. Inter-ministerial coordination is needed to avoid duplication, scattered approaches and to improve data gathering and analysis. Financing and budgeting: it is imperative to have accurate costing based on national data, to refer to costing scenarios by ILO and others, and links between policy makers in Ministries of Finance, social policy and social security experts. Capacity building: the need to extend Social Protection requires investment in capacity of people, structures, administration, technical expertise and monitoring by government and citizens. Evidence and monitoring: there is particular need to share evidence to support and inform policy between governments, and between citizens LSC/EXP/6 (VII) Page 54 and governments, and need for accurate data collection and analysis necessary for improved evidence frameworks for monitoring. Civil society has a role to support and inform policy development and complement government programmes. It is important to encourage civil society engagement for effective implementation of programmes. Member States which have established various social protections schemes include the following: Benin, Burkina Faso, Burundi, Cape Verde, Lesotho, Mozambique, Senegal, Algeria, Libya, Tanzania and Zambia. 116. The IGAD is running a Project on social protection with the support of the European Commission: the Regional Food Security and Risk Management Programme (REFORM). Its purpose is to improve regional and national trade, social protection and disaster risk management strategies and policies. The responsibilities for REFORM‟s components are split between IGAD and COMESA. IGAD's focus includes enhancing the core capacities of Regional Integration Organisations (RIOs) in Food Security, and in implementing a Social Protection and a Disaster Risk Management component. The components of the Reform are structured on four Support Modules: The Policy Support Module (PSM) which has two components; support to social protection awareness building and policy dialogue and support to regional cooperation. The Information Support Module (ISM), supporting activities for: - Development and dissemination of national inventory structure and guidelines - Financial (and technical?) support for national mapping workshops, - LSC/EXP/6 (VII) Page 55 - the creation of a web based information network on social protection and vulnerability assessment The Capacity Support Module (CSM) for social protection skills development in the IGAD, particularly in vulnerability assessment and analysis The Research Support Module (RSM), responding to the need to evaluate, document and disseminate existing social protection experience within the IGAD region and to undertake evidence based research to identify lessons and best practices for the design and implementation of social protection legislation, policies and instrument. In addition, a regional evidence based research fund could provide the necessary resources to engage national researcher in undertaking such work. The REFORM has conducted a series of activities: - Social Protection Country Reviews, prepared by national consultants in five IGAD countries – Djibouti, Ethiopia, Kenya, Sudan and Uganda. A three day Regional Synthesis Workshop on “Social Protection Policies & Instruments”, held in Nairobi from the 4th to the 6th of May. The Social Protection Technical Advisory Committee (SP‐TAC) meeting, held in Nairobi on the 7th of May. Priority No. 5: Empowerment of Women by Integrating them in the Labour Market and to enable them to participate effectively in the development of Poverty Reduction strategies. 117. The overall objective of this priority is to mainstream gender issues into all the poverty reduction and employment promotion policies and programmes by investing in human capital development, especially young women and men. The recommended actions for implementation are: LSC/EXP/6 (VII) Page 56 Promote women‟s entrepreneurship through better training in basic business skills and improved access to market opportunities in non- traditional sectors and access to capital and skills development; Support an entrepreneurial culture which helps potential women entrepreneurs make better informed decisions and to organizes themselves as well as to engage in social dialogue; Assist exchange of information and facilitate learning on youth employment policies and initiatives and develop synergies for concrete results through the Youth Employment Network (YEN) and provide support to youth empowerment programmes; Advocate and implement legislation guaranteeing land rights for women, access to credit facilities, increasing their access to collateral capital, property and inheritance rights and access to extension services; Develop active labour market policies and support institutions which can assist young new entrants into the labour market; Support the implementation of Decision EX/CL/117(V) and Declaration on Gender Equality in Africa adopted by the Fifth Ordinary Session of the Executive Council and the Third Ordinary Session of the Assembly of Heads of State and Government; and Promote the establishment of co-operatives and youth and women associations. 118. Member States have instituted programmes to enhance capacity for employment creation especially for women. They include South Africa, Angola and Mozambique. Women‟s entrepreneurship training has been conducted in Zambia, Egypt, Tunisia, Zimbabwe, Ethiopia, Tanzania, Kenya, Uganda, Mali, Mauritania Namibia and Senegal. In Zimbabwe, women‟s organizations were coordinated by the Ministry of Women‟s Affairs, Gender and Community Development. They were also consulted in the formulation of a new development strategy in 2008. In the world of work, it was estimated that 40 per cent of middle LSC/EXP/6 (VII) Page 57 to top management positions were occupied by women in that country. In Tanzania, a number of initiatives to promote women empowerment had been put in place: Gender-sensitive budgeting were put into pale, Women Development Bank was set up, A Gender Development Policy was drawn up, A National Youth Employment Action Plan of 2007 had become operational, and Labour Exchanges had been expanded to cater for both female and male job seekers. 119. In its country report, Zambia pointed to a high level of labour force participation rate of 74 per cent of women workers. The rate compared favorably with that of the male participation rate. A SADC report referred to national programmes for human capital development through vocational and entrepreneurship training at various institutions to impart a myriad of skills especially to youth and women (SADC, 2008). Amongst the countries engaged in such were Botswana, Malawi, South Africa and Lesotho. Finally, ILO programmes such as Youth Employment Network (YEN) have played an important role in providing information that has value for women empowerment programmes. 120. The Egypt report pointed out many initiatives for women empowerment such as breakthrough of their representation and leadership in workers and employers organizations, the Women Competencies and Skills Development Centre, the Women National Council‟s programs on entrepreneurship, female discrimination at workplace grievances bureau. The Government has put in place 5 regional Counseling and Orientation Centers dedicated to the enhancement of women cultural standards for better awareness of their rights as workers, and LSC/EXP/6 (VII) Page 58 700 women‟s clubs. CSOs are also very active, with more than 1 677 pioneers involved in rural women social and economic promotion. Many regulations have been adopted to promote gender equity and equality, and promote women access to administrative and political responsibilities. Box 9 : Fonds National de l‟Entrepreneuriat Féminin (Senegal). L‟entreprenariat féminin est aujourd‟hui un véritable réservoir de croissance, un levier essentiel de création d‟emplois et un facteur de cohésion sociale. C‟est dans ce cadre que le Fonds de l‟entreprenariat féminin a été crée par décret du 14 avril 2004. Sa mission principale, entre autres, est de faciliter l‟accès au financement des femmes entrepreneures urbaines et rurales. En tant qu‟instrument de promotion et de développement de l‟entreprenariat féminin, le FNPEF a accentué son intervention sur le potentiel de création d‟emplois (activités intenses en main d‟œuvre féminine) des projets et l‟aptitude à les pérenniser en vue d‟une redistribution permanente de revenus aux bénéficiaires. Toute augmentation de revenus des femmes contribue positivement et directement à l‟amélioration du cadre de vie familiale. Ainsi, les besoins élémentaires de santé, d‟éducation et de nourriture sont mieux assurés. Le Fonds est constitue d‟un Fonds de financement qui intervient a hauteur de 95% du montant du crédit sollicité avec un plafond maximal de 50 000 000 fcfa et un taux compris entre 5 et 7%, pour une durée de prêt de 3 ans. Il comprend aussi un Fonds de garantie qui peut intervenir a hauteur de cinq (5) fois le montant du projet. A coté de ce dispositif est adjoint un package de services non financier qui vise à renforcer et faciliter le développement de l‟entreprise (suivi régulier des activités, formation permanente). Le Fonds travaille en partenariat avec un réseau de 12 mutuelles reparties sur l‟ensemble du territoire comme structures relais. Un montant de 2 320 541 718 FCFA a été injecte pour le financement de 842 projets, touchant plusieurs secteurs d‟activités tels que l‟agro alimentaire, les services, la transformation des céréales etc.… Un dispositif d‟appui conseil et d‟orientation des femmes qui souhaitent disposer plus d‟informations par rapport à leur projet et/ou à leur secteur d‟activité. Un dispositif de suivi rapproché trimestriel et un accompagnement permanent à trouver des niches de marché (participation à des foires et salon). Source: Senegal Information Note for the 2009 Ouaga+5 Comprehensive Report, January 2009 LSC/EXP/6 (VII) Page 59 Box 10: Youth Employment in Senegal and in Mali Senegal, a lead country in the YEN programme, launched a youth employment programme in 2001. Since then, the national youth employment agency has assisted 25 000 young people in their job search. A national fund to facilitate finance for youth micro-enterprises (with a special focus on young women) has helped to create 12 000 jobs. Public- private partnerships have improved vocational training through business internships for 600 graduates. Other African countries that have volunteered to prepare youth employment action plans include Mali, Rwanda, Namibia and Nigeria. L‟Agence pour la Promotion de l‟Emploi des Jeunes (APEJ) au Mali : C‟est un établissement public à caractère administratif, doté de la personnalité morale et de l‟autonomie financière. Il est l‟organe d‟exécution du Programme Emploi Jeunes, un programme qui résulte d‟une volonté politique forte, financé par le budget national du Mali, pour une durée initiale de cinq (5) ans (2004 – 2008). Doté d‟un budget prévisionnel de 18 572 340 468 francs CFA, le PEJ, avec un budget effectif de 1 250 000 000 de francs CFA en 2004, 1 250 000 000 de francs CFA en 2005, 2 250 000 000 de francs CFA en 2006, 2 250 000 000 de francs CFA en 2007, et 3 000 000 000 de francs CFA en 2008, a pu créer plus de 39 000 emplois directs et indirects, renforcer l‟employabilité de 14 465 jeunes, faciliter le financement de 1 688 projets qui ont permis la création de 1 688 entreprises, l‟octroi de 100 tracteurs aux jeunes ruraux entre autres. L‟APEJ développe également un programme dit « Volontariat » qui s‟adresse aux jeunes diplômés en quête d‟une première expérience de travail. Ce programme concerne 2000 jeunes annuellement et est mis en œuvre dans les services publics ou para publics. Source: Commission for Africa (Blair), 2005 121. Amongst countries that have developed and implemented youth employment plans and programmes are the following: Cote d‟Ivoire, Lesotho, Liberia, Mozambique and Rwanda. Tanzania, Senegal and Lesotho developed youth employment policies, strategies and action plan, in the framework of the YEN Initiatives. Post-Conflict countries also such as Liberia, Sierra Leone, Cote d‟Ivoire and DRC elaborated youth employment policies and programmes which became operational (ILO, Report of the DG, 2007-08). The first three post conflict countries are engaged in the Mano-River Union Multi- Stakeholders Employment Program. (AUC, Report of the Multidisciplinary Team of Experts‟ mission to Sierra Leone and Liberia, 9-20 February, 2009). It is worth LSC/EXP/6 (VII) Page 60 to note that Ghana began implementation of the National Youth Job Corps Programme aimed at creating more than 150 000 jobs for unemployed youths in 38 districts. 122. The Social Policy Framework for Africa (Windhoek, October 2008) further called for the accelerated implementation of the Priority Area 5 for women empowerment in the African labour markets. It is also stressing the priority for Youth employment in the same vein. The African Union Plan of Action for Gender contains provisions for women promotion in the labour market, and the African Youth Charter is defending the same approach for youth empowerments promotion. 123. The Department of Social Affairs will collaborate with the Department of Human Resource, Science and Technology, and the Directorate of Women and Gender Development to elaborate specific plan of action on employment promotion for these two vulnerable groups. Priority Area no. 6: Human and Institutional Capacity Building 124. The main objective under this Priority Area is to strengthen the capacity of local, national, regional and continental institutions in promoting participation, voice, tripartism, social dialogue and partnership to ensure an equitable and efficient representation of important socio-economic interests and beneficiaries in the formulation and implementation of inclusive development policies. To achieve the objective, the following recommended actions would be pursued: Involve employers‟ and workers‟ organizations and the private sector more closely in discussions on training policies and skills development; Promote lifelong learning, entrepreneurial and vocational training and youth employment; LSC/EXP/6 (VII) Page 61 Assess capacity needs Review and/or develop and implement plans for strengthening stakeholders including Ministries of Labour, NGOs, Civil Society Organizations, as well as Employers and Workers‟ Organizations Involve workers, employers, private sector and local communities in bringing about change, through social dialogue and supportive active labour market policies; Encourage exchange of country experiences and best practices in the area of employment and poverty alleviation; Strengthen data collection and analysis as well as labour market information systems; and Encourage the incorporation of WHO Health personnel/population ratio as well as UNESCO teachers/students ratio at national level to create employment opportunities and to improve the social welfare of the population. 125. Some Member States have taken steps to develop national baseline data on labour and employment information. They include Mauritius, South Africa and Zimbabwe amongst others. Employment Observatories were set up and strengthened in Algeria, Chad, Cameroon, Mauritania and Rwanda. Burkina Faso intended to integrate this monitoring mechanism within the framework of the PRSP which is periodically reviewed. 126. We can point to other instances of human and institutional capacity building in public and private institutions in charge of employment creation. Lesotho sought to strengthen its Ministry of Labour and Employment through adding new areas of focus namely Child Labour, Youth Employment Programme and Employment Studies. In Namibia, the Ministry of Labour was being strengthened to enable it to monitor effective implementation of labour-related legislation as well as develop internal expertise for collection and analysis of labour market information. LSC/EXP/6 (VII) Page 62 127. During the period under review, there were activities related to labour market studies in Ethiopia, Ghana, Mali, Madagascar, Mauritius, Uganda, Algeria and Tunisia. Namibia sought to develop internal expertise for data collection, processing, analysis and report production, management and further development of the labour market information system. During the period under review, labour force surveys were undertaken in a number of countries including Lesotho, Libya, South Africa, Sudan, Tanzania and Liberia. Improvements were made in the generation of labour statistics in Botswana, Burkina Faso, Kenya and Egypt. In addition, Ghana had undertaken Living Standards Surveys while Egypt had conducted a survey on migration. Box 11: Quest for Labour Market Information Africa faces huge challenges in addressing the need for sustained data collection, analysis and dissemination… In 2006, the Forum on African Statistical Development adopted the Reference Regional Strategic Framework for Statistical Capacity Building in Africa, through which resources would be mobilized, personnel trained and data collection functions integrated as part of national development efforts. In this context, the ILO has initiated work on African Labour Market Indicators Library Network (ALMMIL). The project would allow all partners, on a sustainable basis, to compile, maintain and analyze labour market information in an efficient and cost-effective manner by sharing resources and gaining access to information stored in the global Labour Market Indicators Library network (LMIL) and the Key Indicators of the Labour Market (KILM) database, which captures 20 key indicators covering employment, poverty, education and labour costs. By 2015, African Member States should be able to generate basic annual data on the size and composition of their workforce. At least half of Member States should have mechanisms in place by 2010 to produce and statistics for the monitoring of progress on the core dimensions for the monitoring of progress on the core dimensions of the Decent Work agenda. Source: ILO, 2007b LSC/EXP/6 (VII) Page 63 The AUC will organize, in collaboration with the Government of Malo and the ILO, a workshop on the harmonization of labour market information systems in Africa, in November 2009 in Bamako. The objectives are to: propose a harmonized nomenclature of Labour Market concepts, definitions and Indicators in Africa propose a Methodological Guide to statistics and studies on the labour market; propose a format of Statistical Yearbook on the Labour market; exchange and discussion on the organizational, technical, human resources and financial aspects of the production, the analysis and diffusion of labour market statistics and data in Africa and define a model of statistical unit for the organization of the statistical service in labour market; exchange and discuss on the feasibility of an Harmonized Occupational Directory. 128. In Zimbabwe, the government and its partners together with UNDP addressed the issue of institutional capacity building through strengthening the Ministry of Public Service, Labour and Social Welfare. Particular attention was paid to the Ministry‟s Policy and Special Programmes division whose capacity needed to be strengthened. In Cameroon a Ministry of Employment was created immediately after the Summit. In Tanzania a fully fledged department was set up to deal specifically with Employment matters. 129. Paying attention to the education and training sector and especially access to technical, vocational educational and training (TVET) schools was a strategy by some countries such as Lesotho to expand skills training and raise employability of job market entrants. 130. However some countries have experienced some constraints in human and institutional capacity building. For instance, Zambia encountered challenges of inadequate budget allocation and of „brain drain‟. These are challenges not confined to one country as budgetary pressures and a considerable number of LSC/EXP/6 (VII) Page 64 professionals and other experienced staff migrate to „greener pasture‟. No less than 20 000 African professionals enter the ‟brain drain‟ every year. This has a direct implication for institutional capacity building. 131. More and more Member States are establishing and/or enhancing capacity in social dialogue, as it is the case in South Africa (National Economic Development and Labour Commission-NEDLAC), Algeria (National Economic and Social Pact) Senegal (National Social Dialogue Committee), etc. 132. Some MS undertook significant initiatives in improving the labour market information systems either through strengthening the national statistical service, or more specifically by establishing or enhancing a National Observatory on Employment and Training (Mali, Benin, Algeria, Tunisia, Chad, Niger, etc). Box 12: The Benin National Employment and Training Observatory The Benin government created the National Employment and Training Observatory as an autonomous structure. Its main missions are (a) to collect, analyze and disseminate information in the relationship between the vocational/education training system and the labour market needs, (b) formulate advice and proposals in guidance to employment and skills development policies, and (c) facilitate ideas exchange between the labour market stakeholders. The Observatory realized a series of studies relating to the evaluation of educational projects, capacity enhancement of the labour market information system, the modular integrated survey household living conditions, etc. It also produced a database on employment based on labour market indicators and employment prospects. LSC/EXP/6 (VII) Page 65 Box 13: The NAETPI Agency in Djibouti In 2005, the Djiboutian Government undertook series of institutional reforms for liberalizing the labor market, in order to support enterprise development and stimulate job creation. These entail revising the labor code for more flexibility in terms of recruitment and dismissal procedures, and suppression of the minimum wage scale. This went further with the suppression of the public service employment monopoly for placement of workers. Thus around twenty (20) private employment agencies were created, without a coherent legal framework for their coordinated and transparent intervention. Later, a ministerial agreement procedure was put in place to begin rationalizing the private employment agencies activities. This situation makes difficult to collect, compile and analyze labor market data, specifically on both sides of the placement activities. The NAETPI was created in 2007 (Law No 203/AN/07/5eme L, 22 decembre 2007), in view of correcting the Djiboutian less job content growth estimated at 4-5%. The same Law created the National Observatory of Employment and Qualifications as a structure of the NAETPI. As well as the Djiboutian Agency of Social Development (DASD), the NAETPI stems from the National Initiative for Social Development (NISD) which is a presidential decision and commitment to face the non inclusiveness of growth and promote simultaneously economic performance with social justice and equity through more inclusive labor market measures. Another outcome of the NISD is the establishment of the State Secretariat of Solidarity under the Prime Minister. Through a partnership Framework, the DASD supported funding of training and skills development for young people in order to increase their employability and facilitate their insertion in the labor market. The DASD support consists in training fees covering transport and food for the beneficiaries, training tools and insurance coverage against work injuries. The NAETPI is supported by a SWISS-UNDP Project which contributed a lot to speed up its modernization and its technical cooperation with the Tunisian National Agency of Employment and Independent Work. Sources: Benin Information Note for the 2009 Ouaga+5 Comprehensive Report, February 2009 AUC, 2009, Report of Follow-up Consultative Visit to the Republic of Djibouti LSC/EXP/6 (VII) Page 66 Priority Area 7: Sectors with High Employment Potential 133. Utilizing key sectors with high employment potential to generate jobs and to allocate adequate resources for this purpose is another major priority area under the Ouagadougou PoA. The overall objective is to provide an enabling environment to create productive and decent jobs. The strategies specified for this effort include: Promoting public and private sector reforms for employment creation; Promoting public works programmes in infrastructural development; Reorienting public sector investment and restructuring the industrial and agricultural sectors; Creating productive labour absorbing jobs through labour intensive approaches; Upgrading the informal sector by developing support mechanisms through training and access to finance and Encouraging African investors and providing them with the necessary facilities, protection and conducive environment. 134. This Priority Area is one of the most demanding with potentially the most rewarding tangible results. Which are the areas in which most jobs could be created at minimal cost? There has been considerable activity amongst Member States to harness opportunities in sectors such information communication technology (ICTs), tourism and labour-intensive infrastructure development. Mauritius has identified ICTs as one of the country‟s economic pillars and began a programme to train a mass of IT literate workers. In countries such as Egypt, Tunisia, Namibia and South Africa, tourism has proved to be one of the most significant contributors to employment during the period under review. Tourist earnings contributed about 5 per cent to Lesotho‟s GDP in 2007-08. Until the global economic and financial crisis broke out in 2008-09, in East Africa, tourism was also on the upswing in Member States such as Kenya, Tanzania and Ethiopia where its employment creation potential is high. 135. An AU Commission regional workshop held in Abuja in 2006 observed that the ICT sector provides a large potential for generating employment in that region as the demand for ICT products and services is increasing. It was recommended that it was necessary to build an efficient and adequate ICT LSC/EXP/6 (VII) Page 67 infrastructure from telecommunications to investing heavily in ICT education from primary to university levels in order to reduce the digital gap. In addition, indigenous research and development within the sector should be promoted by linking universities to the ICT industrial sub-sector while creating an appropriate policy environment to attract foreign direct investment (FDI) into the sector. 136. Most Member States identified agriculture and agro-related industry as a major potentially high employment area. For instance, Tanzania stated that agriculture and livestock is an important growth area in its economy. Zimbabwe, Lesotho and Ethiopia, amongst others have agricultural sectors in which there is substantial employment creation. Benin has drawn up the map of youth and women employment potent (See Box 14). Box 14: The Benin Employment Potential Mapping Le Benin a initie la Carte des potentialités d‟emplois des jeunes et des femmes des 77 communes du pays, avec l‟appui du PNUD. Cette carte se veut un aperçu général sur les potentialités économiques, els créneaux porteurs et les opportunités d‟emploi de chaque commune du Benin, ainsi que les activités leviers du développement susceptibles d‟impulser l‟émergence des communes. Elle permet de mieux informer les citoyens sur les perspectives en matière de création d‟emplois. L‟objectif vise est de mettre a la disposition des jeunes et des femmes un outil efficace d‟information sur les potentialités qui leur sont offertes pour les aider dans leur décision en matière d‟entrepreneuriat et d‟auto emploi. Les conditions de l‟exploitation de ces créneaux porteurs et des opportunités sont aussi mises en évidence. La carte est présentée par département (12 Départements) et par communes (77 communes). Elle fait ressortir les structures techniques intervenant en matière politique. Source: Benin Information Note for the 2009 Ouaga+5 Comprehensive Report, February 2009 LSC/EXP/6 (VII) Page 68 Box 15: Employment Generation: the case of the Cameroon National Employment Fund (FNE) The main aim of the National Employment Fund, set up during the difficult period of structural adjustment and devaluation of the CFA Franc, is the promotion of employment. One of the principal routes to the achievement of this goal is creating jobs by providing support in the process of setting up self-employment and micro-enterprise situations. The Freelance Employment Service (SEI) is the arm of the National Employment Fund (FNE) entrusted with the task. So far the FNE has funded 3 009 self-employment projects and micro-enterprises creating 6 513 direct jobs and 9 770 indirect jobs. A project which has met with considerable success is known as PADER (Rural Employment Development Support Programme) which operates only in rural areas. This is a programme with a high potential for job creation which also has the advantage that it to bring together the players involved. The PADER system has so far funded 24 969 candidates creating 41 967 direct jobs and some 62 950 indirect jobs. Source: National Employment Fund, 2007, Yaoundé Box 16: The Self-Employment Programme in Tunisia Tunisia has set up and developed productive tools and programmes to foster and fund micro-enterprises, consolidated and structured the SME funding programmes, established mechanisms for backing and encouraging the creation of enterprises, and consolidated structures designed to train promoters…In order to support this process, the National Agency for Employment and Freelance Work (ANETI) has undertaken a large number of training initiatives in entrepreneurship, developed measures for backing and monitoring promoters and instituted specialist structures within the regions. The system set up by ANETI is complete, since it supports the promoter throughout the various start-up steps from the project idea to setting up. Under ANETI, 82 independent employment units have been set up in different parts of Tunisia and 6 entrepreneur spaces set up in the large cities. Source: ANETI, 2007, Tunis 137. Other areas that have shown a large capacity for employment generation are infrastructure projects and programmes. In SADC, Member States reported that they had introduced labour-intensive public works programmes. LSC/EXP/6 (VII) Page 69 The following countries did so during the period under review: Angola, Botswana, Lesotho, Malawi, Namibia, South Africa, Tanzania and Zimbabwe. Other large-scale public works programmes were run in Ghana and Madagascar. In the latter, 3 million working days were created in 2007. In South Africa, 400 000 jobs were created in 2006-07. It is significant to note that in 2007, there were 17 country programmes receiving assistance from ILO in the execution of public and community works in urban and rural infrastructure and construction. 138. Finally, the employment creation capacity of the informal economy has already been addressed in an earlier section. As it was pointed out, the AU Commission was actively involved in commissioning a study on the job-creation potential of the sector while the LSAC has had a longstanding interest. Box 17: Member States that have set up Employment Intensive Programmes CAMEROON: adopted a policy to promote Employment Intensive Investment Programme in public investment programmes and established an inter-ministerial committee to promote and oversee the implementation of the strategy. Applied labour-based methods for road and urban infrastructure works. DRC: integrated EIIP approaches in reconstruction programmes. Established a central unit to promote employment in public works. Used EIIP approach in reinsertion programmes for ex-combatants through rehabilitation and construction of infrastructure. GABON: adopted an EIIP policy and created a national commission to promote EIIP in public investment programmes. MADAGASCAR: EIIP approach verified through comparative studies and integrated into the Madagascar Action Plan (equivalent of PRSP) and in programming and budgeting for multi-sectoral public investment programmes. LSC/EXP/6 (VII) Page 70 RWANDA: established EIIP as a major instrument to support decentralization of infrastructure development to the local level. SOUTH AFRICA: adopted national policies on employment-intensive investment. Expanded public works programmes up-scaled in selected provinces. Enhanced capacity of national and provincial government (Lampoon Province) and other key stakeholders to develop and implement labour-intensive approaches. More than 700 000 additional jobs created from municipal investments. SUDAN: a labour-based unit was reactivated within the Ministry of Labour. An urban infrastructure development programme was designed for Southern Sudan. TANZANIA: a national policy put in place to scale up the use of labour-based approaches and established related programmes. CONGO: integrated Employment Intensive Investment Programmes (EIIPs) in construction programmes for urban infrastructure. ETHIOPIA: expanded labour-based approaches to road construction. Adopted solid waste management policy and strategy for urban areas. GHANA: EIIP approach was mainstreamed in road motor works allowing labour-based contractors to carry out reconstruction and maintenance works. LIBERIA: implemented the LEEP/Liberia Employment Action Plan (LEAP) which includes an EIIP approach to public investments in infrastructure. Temporary jobs were generated for war-affected women and men in emergency repairs and maintenance of roads. Results are being replicated in other labour-based road sector programmes. MALI: implemented a multi-sectoral programme to create and promote employment for youth through infrastructure works. MAURITANIA: implemented a successful demonstration project on road paving using EIIP approaches. SENEGAL: implemented street stone paving and rural roads programme to LSC/EXP/6 (VII) Page 71 create employment for youth. SIERRA LEONE: started an employment programme covering employment intensive investments, small enterprise development and youth employment. BURUNDI: developed a programme of labour-based practices for infrastructure Rehabilitation and reforestation. Source: ILO Report of the DG, 2007-08. 139. In order to tap the job creation opportunities of the labour intensive programmers investments, national coordinating and promoting units were put in place by Madagascar (inter-ministerial committee), Gabon (National commission), Sudan(labour-based unit reactivated), etc. labour intensive programmers were also utilized as means to provide employment and income to youth and women in post-conflict countries(Sierra Leone, Liberia, DERC…ILO report DG, 2008). 140. Another possible high employment multiplier is value-chains based on agriculture and agri-business related enterprises. Regional value chains and markets for strategic commodities would not only increase competitiveness of agriculture at farm level but would also trigger development of agro-processing and agribusiness venues at the regional level (ECA and AU, 2009). 141. It has also been observed that intra-African trade data show that a growth strategy for higher-valued products destined for domestic and regional markets as well as non - African markets could revitalize agriculture in all regions of Africa. Instead of raw agricultural commodities and related jobs and processing industries being exported, the expansion of forward-linked agribusiness and agro-processing could significantly increase employment and non-farm incomes for rural populations in many African countries (Ibid.). For instance, the value of traditional and non-traditional exports to non-African destinations represents the minimum revenue that could be captured by processing agricultural commodities LSC/EXP/6 (VII) Page 72 in the respective regions. It is estimated that this value could triple if domestic and intra-regional markets were taken into account, contributing to rapid job creation and poverty reduction. Priority Area 8: Building International cooperation, fair and equitable globalization and partnerships 142. The overall objective of activities in this priority area relate to strengthening capacities to meaningfully participate, contribute to and influence global decision making and evolve a new vision of partnership for employment creation and sustainable development. The strategies that are being pursued are: Coordinating efforts between international organizations, bilateral donors and the AU, RECs and Member States; Strengthening the role of the AU including its NEPAD programme in coordinating policies and having a common position for Africa in global debates and Enhancing policy coherence and partnership at the local, national, continental and international levels for a fair globalization. 143. This agenda set out under this theme is an ambitious one. It could not have been easy to set targets and measure outcomes. However, there has been considerable progress in building international cooperation and partnerships for enhanced support for Africa‟s efforts towards achieving sustainable development. In its coordinating role, the AU Commission developed and strengthened good working relationships with various international organizations especially with ILO in employment and labour matters. Other agencies that it has collaborated with include ECA, IOM and UNDP as well as AfDB on employment and migration- related issues. LSC/EXP/6 (VII) Page 73 144. The AU-ILO partnership was evident during the 2004 Ouagadougou Summit and during the next 4 years. A joint task force was launched in 2006 with the aim of providing a forum for strategic thinking, analysis and formulation of proposals to stimulate employment creation in Africa based on the Ouagadougou Summit commitments. African Member States and the AU Commission have been active participants in ILO conferences as well as in the ILO African Regional Conference, the last which was held in 2007 in Addis Ababa. 145. Other key institutions in the promotion of cooperation are the Labour and Social Affairs Commission (LSAC) which meets annually to consider policy matters and implementation of programmes relating to labour and social affairs. The LSAC oversees the implementation of decisions and programmes of the AU Commission under which the Department of Social Affairs falls. Its international partners take a strong interest in its proceedings. 146. Another important relationship is that between the AU Commission and the European Union (EU). The cooperation between these two institutions includes their joint programme on Employment and Migration. Under a Joint Partnership relating to Migration, Mobility and Employment, several activities were initiated during the period 2007 to 2009. Those activities include capacity building in the AU Commission and substantial funding that has contributed to effective implementation of the Ouagadougou PoA. Other major partners include the Sweden and Norwegian cooperation agencies. The Cooperation Protocol between the AUC and India entails areas of cooperation in employment promotion and poverty alleviation. The Afro-Arab cooperation is also aligning actions in employment promotion. 147. The AU Commission continued to play a pivotal role in conducting consultations with the RECs, and ensuring coordination in implementation of the regional employment policy frameworks. The RECs take an active part in the LSC/EXP/6 (VII) Page 74 programmes on employment and migration as well as in other activities of the LSAC. The AUC also closely follows cooperation between the RECs and international development partners. 148. In international discussions on globalization and trade, the AUC was active in mobilizing Member States in arriving at common positions. One of those areas was trade although, in practice, it was difficult for them to take a single position on Economic Partnership Agreements (EPAs). Many Member States have developed technical and financial cooperation with various development partners in various employment promotion areas. They include agencies such as the German Technical Cooperation (GTZ), United States Agency for International Development (USAID), United Nations Children‟s Fund (UNICEF), and Food and Agricultural Organization (FAO), etc. However, the needs are still at high level in comparison with the level of cooperation in the area of employment. For instance, although governments and international partners often state that job creation, in particular for youth and women, is a high priority, this is not fully reflected in the national budget allocation process. Box 18: Example of Coordinating and Cooperating efforts between Member States Djibouti and Tunisia concluded a Cooperation Programme on employment through their respective National Agency for Employment and Independent Work (NAEIW), and the National Agency for Employment, Training and Professional Insertion (NAETPI). The cooperation partnership signed in Tunis in June 2009 specifies the areas where Djibouti is in need of technical assistance and where Tunisia possesses the required capacity to support the recipient country. These cover, amongst others, technical assistance to the Djiboutian National Employment Observatory, support to enterprises and job seekers, training of trainers in micro enterprises promotion, improvement of job seekers employability, job creation programmes elaboration and implementation. The partnership is funded on cost sharing basis of the missions to partner countries: the receiving country takes in charge the internal cost of the experts‟ mission while the travel costs are supported by the origin country of the experts. LSC/EXP/6 (VII) Page 75 Both parties commit to act together in search of additional funding opportunities with international donors. This can lead to triangular cooperation scheme, as experienced through the Swiss Assistance Project to the Republic of Djibouti. Currently, the Tunisian Agency is assisting the Djiboutian sister organization in elaboration a National Insertion and Professional Adaptation Programme which will be passed into a presidential decree. The execution of the partnership rests on annual action plan agreed between both parties. The Djiboutian experience of cooperation with the republic of Tunisia provides guidance for developing a comprehensive cooperation programme in support to RECs and African countries, involving international partners. The AUC can extend this cooperation through initiating a continental program with EC and European Member States. Source: AUC, 2009, Report of the Follow-up Consultative Visit to the Republic of Djibouti Priority Area 9: Promoting regional and economic cooperation among RECs 149. Under this Priority Area, the stated objective is to strengthen the role of RECs to promote more economic opportunities through harmonization of labour laws and regulations, establishing mutual recognitions of training and skills development systems, business and investment opportunities. The strategies chosen towards achieving this objective include: Strengthening the role of RECs in promoting regional integration, mobilizing regional and foreign investments in the key sectors that generate employment; Developing an enabling environment at RECs; Integrating the employment dimension in regional initiatives; and Promoting regional projects in the field of power generation, particularly solar energy, as a means of creating jobs on a regional scale. 150. The principal activity in this area was the convening of regional employment policy framework workshops in 2006 in five RECs, as observed in LSC/EXP/6 (VII) Page 76 an earlier section. The main outcome of those workshops were regional employment policy frameworks which spoke to issues of mobilization of investments, integrating of the employment dimension in regional initiatives and of harmonizing labour codes and employment policies. The regional policy frameworks took into account the specific conditions and comparative advantages of each REC. They contain sets of strategies and recommended actions that Member States are expected to implement. Some of the RECs have made periodical reports on progress and challenges on implementation to the LSAC, as we saw in earlier section. 151. It stemmed from the Report on follow-up mission to the SADC, it appears that regional labour market governance as regards with efficacy, efficiency and transparency, are handicapped by the lack of harmonization of labour laws and regulations, business laws, and the absence of strategy for mutual recognition of training skills development systems inside the regions and between the regions. 152. The overall objective of the Regional Employment Policy Frameworks is to achieve development and economic growth, alleviate poverty, enhance the standards and quality of life of people and support the socially disadvantaged through promoting more and better employment. Employment and the promotion of the enterprises that creates it is the most effective route to poverty eradication. Box 19: Regional Employment Policy Frameworks: Building Blocks in Employment Strategy Therefore: The goal is to promote full employment as a priority in all the regions‟ economic and social policies and to enable all men and women who are available and willing to work to attain secure and sustainable livelihoods through full productive and freely chosen employment. There is need for secure improvement in the productivity of labour so that the regional workforce is afforded decent and well-remunerated employment consistent with productivity. LSC/EXP/6 (VII) Page 77 The fullest possible opportunity should be made available to each worker to qualify for and use of her/his skills and endowments in a job for which she/he is well suited, irrespective of race, sex, religion, political, physical disabilities and ethnic or social origin. The basic rights and interests of workers and employers should be safeguarded. To that end, there should be respect for national labour laws in the regions as well as the promotion of relevant International Labour Standards including co-Conventions. There should be secured maximum cooperation with the regional employers‟ federation as well as the employees associations and other interested bodies in decisions relating to employment promotion and economic development in the region. Economic growth and development should be stimulated so as to eradicate poverty and improve the living standards by minimizing the rate of unemployment, if not eradicating in all the regions. Finally, there should be promotion of the development of human resources that would continually meet the needs of the region. Box 20: Regional Employment Policy Frameworks: Principles Principles The regional integrating employment policy frameworks would be coordinated and implemented within the frameworks of the regional economic and social policy. These frameworks would be consistent with the overall development strategies of the regions as outlined in the RECs‟ plans such as those of ECOWAS and the SADC Regional Indicative Strategic Plan (RISD) amongst others. The regional employment frameworks in line with economic policies and reforms in member states would emphasize the provisions of a favourable environment for private investment and job creation. These relate to the stabilization of the economy by checking inflation, having an exchange rate determined by the market, encouraging savings and higher productivity. The promotion of the relevant institutions charged with job creation or promotion capacity should be continually supported to enable them to perform their roles effectively. The private sector should play a leading role in investing in productive enterprises that provide employment and generate incomes. The enterprise culture should be promoted because it induces self-reliance, risk taking and an environment that rewards initiative and effort. Individuals and groups should be encouraged to create their own jobs so that they move away from being job seekers to being job creators. Each country in a region should take necessary measures to assist workers, including young people and other new entrants to the labour force, in finding them suitable and productive employment and in adapting to the changing needs of the economy. Employment policy should be coordinated with, and carried out within the framework, overall economic and social policy, including economic planning or LSC/EXP/6 (VII) Page 78 programming in countries where these are used as instruments of policy. Each country should, in consultation with and having regard to the autonomy and responsibility in certain of the areas concerning employers and workers and their organizations, examine the relationship between measures of employment policy and other major decisions in the sphere of economic and social policy, with a view to making them mutually reinforcing. Each country should, to the fullest extent permitted by its available resources and level of economic development adopt measures taking account of international standards in the field of social security to help unemployed and underemployed persons during the period of unemployment to meet their basic needs and those of their dependents, and to adapt themselves to further useful employment. Regional employment policy should be an essential element of a policy for promoting values contained in international labour standards, economic growth and fair sharing of national incomes. Further principles presented in the regional framework papers relate to decent work, equal employment opportunity, participation and sustainability. In relation to decent work, this requires that labour is rewarded according to its productivity and is provided with a healthy and safe work environment. The principle affirms quality of work life and requires that fundamental rights of workers in the workplace are provided. The principle of equal opportunity is to ensure that labour at all levels has equal access to gainful employment. The principle of participation recognizes the need to synergize the efforts of all stakeholders in the labour market in relation to policy formation, implementation, monitoring and evaluation of strategies. The principle of sustainability relates to the effective use of labour market information to monitor, evaluate performance and implementation of employment policies and programmes. Source: AU Commission, 2007 153. As we observed in Part 3 above, the AU Commission conducted consultative visits to the RECs during the period under study. The purpose was to disseminate information on employment frameworks as well as exchange information on the implementation of the Ouagadougou PoA. These consultative meetings enhanced the working relationship between the Commission and the RECs. 154. In this respect, the AUC experienced some difficulties to establish effective communication and information with the RECs, in spite of continuous efforts. This affected the handling of the AUC roles and functions on follow-up with the RECs as well as with the MS. It should be considered that as long as the RECs and MS have not designated their focal point/person and established their LSC/EXP/6 (VII) Page 79 follow-up institutions, this institutional gap will continue hindering the effective and harmonized implementation of the Ouagadougou PoA. Therefore, the AUC should work closely with RECs and MS to assist them in forming their follow-up institutions through agreed roadmap and development of joint AUC-RECs activities. 155. Individual country reports have also highlighted certain aspects of regional cooperation in which they have been involved. Tanzania confirms that employment issues have been routinely included on agendas of SADC and EAC meetings, and that there were initiatives to harmonize policies at EAC and SADC. In the same context, the labour law reforms in Tanzania had taken into consideration other laws at regional level. Zambia noted that its collaboration with the RECs continued on employment and migration matters. 156. On the whole, the RECs have made substantial achievements in trade, infrastructure, and regional public good, particularly peace and security. However, it has been observed that only a fifth of the RECs had achieved their targets for communities, and most were lagging on almost all critical elements for the success of an economic union, except the establishment of regional development banks (ECA, 2006). According to this study, progress in harmonizing tax policies, deregulating financial sectors, liberalizing the financial account and other areas had been insufficient (Ibid.). Even in sectoral programmes needed to deepen African integration, a third to a half of the RECs acknowledge shortcomings in the effectiveness of their initiatives towards the integration goals. The factors behind these shortfalls were identified as the REC‟s internal deficiencies, little national support and poor coordination across RECs. LSC/EXP/6 (VII) Page 80 Box 21: RECs and Employment Policy Matters SADC: SADC Secretariat organized tripartite constituents to participate in Policy Development Dialogue on a Balanced Framework for Foreign Direct Investment (FDI). Tripartite constituents undertook research to consolidate their views on FDI policies in order to harmonize investment policy rules at SADC level. SADC: Employers group and workers‟ group agreed on a work plan for a SADC/Corporate Social Responsibility project. EAC: Established annual forums for EAC ministers responsible for labour and employment in which social partners participate. EAC: tripartite constituents made commitments to consolidate the emerging common market with a regime of free movement of persons based on international standards. Source: ILO, 2008 Priority Area 10: Targeting and Empowering Vulnerable Groups 157. The Ouagadougou Plan of Action defines its purpose under this area as targeting and empowering vulnerable groups such as persons with disabilities, aged persons, migrants, children, and people affected by various diseases including HIV-AIDS, TB and malaria. Other vulnerable persons that are mentioned internally displaced persons, refugees, migrants and the working poor. The strategies chosen to address this matter are: Involving vulnerable groups in national policy making particularly those of employment creation and poverty alleviation; Identifying and integrating their needs in policies and programmes through income and food security, affordable social protection, fight against HIV- AIDS and equality of opportunity; LSC/EXP/6 (VII) Page 81 Mainstreaming targeted programmes and formulation of policies and income-generating programmes for vulnerable groups and Fighting against child labour and trafficking in humans. 158. The focus on vulnerable groups is deliberate. The emphasis on targeting is also deliberate. The vulnerable groups require special attention in order to bring them back into the mainstream of the development process. 159. Various Member States are implementing aspects of this thematic area according to their capacity. In Tanzania, a number of steps had been taken to increase state capacity to address the vulnerable. A National Social Protection Framework had been developed, and a Tanzania Social Action Fund established to target the vulnerable groups in rural areas. In addition, tailor-made programmes had been undertaken by different stakeholders to impart skills to increase the employability of the vulnerable. In Zimbabwe, vulnerable groups were being assisted with education and health. There was also assistance for the vulnerable sections from the National AIDS Council. For its part, Zambia had increased its social welfare budget and put some pilot social transfer schemes in place during the period under review. Those measures would benefit a significant section of the vulnerable population. LSC/EXP/6 (VII) Page 82 Box 22: TUNISIA and Health Coverage for Vulnerable Groups The Tunisian government has put in place social initiatives guaranteeing rights of vulnerable categories of populations to full health coverage targeting needy and low-income households. In fact, in 2007, some 171 162 needy families benefitted from a card of free health care and 548 000 low-income families were granted with reduced health care tariffs cards. Furthermore, those young persons in these categories interested in starting income generating projects in the framework of the fiscal incentive code but confronted with self-funding shortcomings, could have access to an interest free loan. Source: Tunisian Information Note for the 2009 Ouaga+5 Comprehensive Report, February 2009 160. For its part, the AU Commission and specifically the Department of Social Affairs has run several programmes for vulnerable groups during the period under review. The groups towards which programmes have been directed include the elderly and the aging, people living with disabilities as well as children. The Department ran activities on follow up to the 2006 Abuja Summit on HIV-AIDS, TB and Malaria. The activities in these various areas have included capacity-building, advocacy, monitoring and evaluation of the variety of programmes for the vulnerable groups. The activities which have included meetings of experts and Ministers have involved close collaboration between the AU Commission and Member States. 161. Finally, with the onset of a global food crisis in 2008 and the global financial and economic crisis which deepened in 2009, the population of vulnerable people was set to increase worldwide. An estimated 100 million people would have difficulty to access food. African countries would be significantly affected by the food price increases and efforts to provide relief and long-term support to vulnerable groups would need to be stepped up. In response to the food crisis, the AU issued the Sharm el Sheikh Declaration on LSC/EXP/6 (VII) Page 83 High Food Prices at its summit in July 2008. The Summit identified some short- term measures as: Providing immediate assistance to the vulnerable segments of populations through targeted food assistance and safety measures; Intensifying agricultural production and productivity through the use of targeted input subsidies, preferably fertilizer, improved seeds and enhanced access to water and small-scale irrigation for agricultural production and Improving post-harvest management to minimize storage losses and increase processing. 162. Some member states have provided such food relief as have many humanitarian organizations. The long-term solution would be to provide means of production and incentives to the vulnerable groups themselves to enable them step up production. 163. Developments in the cooperative sector are encouraging in terms of the range of production but also of employment opportunities created as a result. Up to date statistics are difficult to obtain the African cooperative sector. However, one study in the late 1990s estimated that the sector in 15 African countries accounted for 158 000 direct jobs, about 6 000 indirect jobs and supported 467 000 self-employed people (Schwettman, 1997). A more recent survey, observed that cooperatives employed 77 000 staff in Kenya, 28 000 in Ethiopia, 9 500 in Egypt, 3 130 in Ghana, 2820 in Uganda and 800 in Rwanda (Develtere, et. al., 2008). In Kenya and Ethiopia, employment in the sector is most likely much higher than official figures suggest. For instance, over 21 000 people are recruited for casual labour services every year by Ethiopian cooperatives while in Rwanda about 4 400 seasonal tea workers are recruited (Ibid.). LSC/EXP/6 (VII) Page 84 164. According to some country studies, the number of people who are self- employed through membership in coops were about 209 000 in Ghana, 150 000 in Rwanda and up 15 000 in Uganda. In sum, compared to the traditional private and public sectors, the contribution of cooperatives to employment and income is not negligible in many member states (Ibid.). Indeed, their contribution to an increase in jobs is notable in countries such as Ghana, Ethiopia, Rwanda, Egypt, Cape Verde and Nigeria (see Box 23). Box 23: Some Facts and Figures about African Cooperatives 1. The Mwalimu Savings and Credit Coop Society of Kenya with 44 000 members has accumulated savings of up to USD 100 million. 2. The largest coop in Africa is believed to be Harambee Savings and Credit Coop Society in Kenya with 84 900 members. 3. Mooriben in Niger provides 25 000 households with affordable and nutritious food. 4. In Cape Verde, UNICOOP coop is the country‟s largest supplier of consumer goods. 5. In one 11-country sample, there are 150 000 listed collective socio-economic undertakings most of them as cooperatives. Source: Delvetere, Pollet and Wanyama, 2008 LSC/EXP/6 (VII) Page 85 Box 24: Sample of Coops and their Membership in 11 African countries Cape Verde 6 000 Egypt 10 150 000 Ethiopia 4 500 000 Ghana 2 500 000 Kenya 3 370 000 Nigeria 4 300 000 Niger 332 000 South Africa 75 000 Rwanda 1 600 000 Senegal 3 000 000 Uganda 323 000 __________ Total 30 136 000 Source: Develtere, Pollet and Wanyama, 2008 165. The CoopAFRICA ILO Project demonstrates concretely how Cooperatives can be used as means to create productive jobs, alleviate poverty and mitigate the impacts of the Global economic and financial crisis on the living conditions of the vulnerable groups. Box 25: CoopAFRICA ILO Project Cooperatives as means to create productive jobs, alleviate poverty and mitigate the impacts of the Global economic and financial crisis on the living conditions of the vulnerable groups. The Cooperative Facility for Africa - CoopAFRICA - is a technical cooperation programme of the ILO, principally financed by DFID for a three-year period (2007-2010). CoopAFRICA works in partnership with the International Co-operative Alliance (ICA), the UK Co-operative College, the Committee for the Promotion and Advancement of Cooperatives (COPAC), the International Trade Union Confederation (ITUC-Africa), the International Organization of Employers (IOE) and the African Union Commission. The objective of CoopAFRICA is to advance the decent work agenda and progress the MDGs through the cooperative approach. CoopAFRICA is a major contribution to the LSC/EXP/6 (VII) Page 86 effective implementation of the Ouagadougou 2004 Plan of Action on Employment Promotion and Poverty Alleviation, in particular to the Priority Area 10 with the recoemmendation to “establish economically viable cooperative enterprises in the framework of the Decade of Cooperatives adopted by the Plan of Action of the Pan African Conference on Cooperatives (Yaounde, 2000).” As a regional programme Coop AFRICA focuses on nine countries Sub-Sahara Africa, including Botswana, Ethiopia, Kenya, Lesotho, Rwanda, Swaziland, Tanzania, Zanzibar, Uganda and Zambia. The Program assists people to improve their living and working conditions through cooperatives.Areas of intervention include: (i) establishing an enabling legal and policy environment, (ii) promoting effective horizontal and vertical structures and (iii) improving services for cooperatives through supporting Centres of Competences. Coop AFRICA is mainstreaming Tripartism, Social Dialogue and Gender in its interventions. It develops also partnership to mitigate the impact of HIV/AIDS in the world of work though cooperatives. Through its Challenge Fund, Coop AFRICA allocates grants via a competitive process, in areas concerned with cooperative development for 1) services, 2) innovation and 3) training. The Challenge Fund has approved about 33 Projects in 2008 and 2009 in the beneficiary countries. Coop AFRICA is supporting institutional development by facilitating Knowledge Sharing, exchange of experience and expertise among African cooperative leaders, operating through different means, such as production of publications and advocacy materials, facilitation of workshops, seminars and study tours and through use of email lists and knowledge sharing facilities. The support extends also to identification, selection and upgrading the quality service standards of Centres of Competence for cooperatives. The Global Financial Crisis shows clear evidence that the cooperative model (particularly cooperative banks) is more resilient in times of crisis and mitigates the impact of crisis for members and their communities. Source: Report on Progress in Five Key Policy Areas, of the DIFD-ILO Partnership Framework Agreement (PFA) 2006-2009 Priority Area 11: Mobilization of Resources 166. This priority has a straightforward but daunting objective namely the mobilization of sustainable resources for implementation, follow-up, monitoring and evaluation of the Ouagadougou Plan of Action. The mobilization of resources would be at national, regional and international levels. The strategies and recommended actions were: Identifying priority programmes on employment and poverty alleviation for possible funding; LSC/EXP/6 (VII) Page 87 Developing projects, plans and programmes for their implementation in consultation with funding partners; Formulating the required level of resources required; Involving the UN Agencies, financial and technical cooperating partners, the private sector and the international community in resource mobilization Encouraging the implementation of the G8 Action Plan for Africa. 167. Not many country reports speak to activities recommended under this Priority Area. While there may have been resource mobilization to support the Ouagadougou PoA at national level, it is less clear whether there has been much activity at other levels with perhaps one or two exceptions. One exception is ILO which has provided technical support, through seconding a consultant, to the AU Commission in the period 2007-2009, and another is EU support to the AUC Employment programme. 168. Several Member States reported on their local raising of funds for programmes designated under various Priority Areas. Zambia reported that it had budgeted 150 billion kwacha for the Five Year Development Plan in 2006-2010. But it should be pointed that these budgetary resources were for the Development Plan, and not specifically directed at Priority Area Programmes. Lesotho highlighted several donor-funded projects that fell under several Priority Areas. Some USD 362 million was to be provided through the Millennium Challenge Corporation, some USD 164 million was to be invested in water development, USD 122 million into a Health programme, and some USD 36 million into private sector development. 169. Tanzania set up national committees to guide development partners in financing poverty and employment generation initiatives. This was in response to uncoordinated financing mechanism by the developed country partners in the LSC/EXP/6 (VII) Page 88 country. The challenges were delays in financing of projects due to failure to meet conditional ties tied to financing. 170. On the whole, however, there has been little resource mobilization for the Ouagadougou PoA during the period under review. The implementation of the various Priority Areas has largely fallen on national governments, RECs and a few international agencies. In recognition of the paucity of funding raised, the Department of Social Affairs developed a Concept Note on „Resource Mobilization for the Implementation, Follow up and Evaluation of the Ouagadougou PoA. The Note guided the development of a funding proposal to be used by the AU Commission, RECs and Member States in the mobilization of resources. 171. The Ouagadougou PoA has been supported by the ILO and ECA as well as by Norway and Sweden during the first few years of its implementation. Africa's needs for job creation are very important, in consideration of the realistic ambitions of the PoA. Hence, the interest of mobilizing internal and external resources that could contribute to its implementation in order to achieve its objectives on promoting employment for reducing poverty. 172. To this end, the African Union Commission, in accordance with relevant provisions of the Follow-up Mechanism and Action Plan of the Ouagadougou PoA, will develop in 2009 a Strategic Document for Resource Mobilization, though consultant service. The Document will be used to assist MS and RECs in improving their resource mobilization policies, strategies and procedures. It will also facilitate the implement the DSA. The AU Strategic Plan 2009-2012 in relation to Employment Promotion and Poverty Alleviation. LSC/EXP/6 (VII) Page 89 Box 26: Resource Mobilization for the Implementation of Ouagadougou PoA A study would be undertaken to develop a Strategic Document for Resources Mobilization. The objective of the study will be to: - Provide the African Union Commission with a technical and financial cooperation framework that enables it to mobilize the required resources and play its crucial role on coordination, harmonization and monitoring of the implementation of the Action Plan of Ouagadougou, in a close relationship with the Regional Economic Communities; the framework will address internal sources and external partners; - Provide the African Union Commission with means to support Member States and RECs in implementing the DSA Strategic Plan 2009-2012 as well the AU Strategic Plan 2009-2012, as they relate to the Ouagadougou 2004 Declaration and Plan of Action on Employment Promotion and Poverty Alleviation through participation in the financing of national strategies, programs and projects on employment promotion; The results expected from the study will be: - Guidance on financial strategies for the implementation of outcomes of the Ouagadougou Summit for employment promotion and poverty reduction; - Availability and deployment of a Strategic Document on Resources Mobilization for the implementation, monitoring and evaluation of the Ouagadougou Action Plan; - Trust and commitment of development partners in the DSA Strategic Plan 2009-2012 as well the AU Strategic Plan 2009-2012, as they relate to the Ouagadougou 2004 Declaration and Plan of Action on Employment Promotion and Poverty Alleviation; - Greater visibility of the African Union among African populations with its commitment to solving the challenges of unemployment, underemployment and poverty; - Establishing results based approach in employment policy funding for easier accountability; - Effective implementation of the DSA Strategic Plan 2009-2012 as well the AU Strategic Plan 2009-2012, as they relate to the Ouagadougou 2004 Declaration and Plan of Action on Employment Promotion and Poverty Alleviation (DSA, 2009). 173. The broad range of activities that Member States and Developed Partners are engaged in to implement the Ouagadougou PoA is extensive, as this part of LSC/EXP/6 (VII) Page 90 the Report has illustrated. That there is a great deal that is being undertaken under each of the 11 Priority Areas is quite. However, the activities outlined here are far from exhaustive. This is why it would be urged that Member States, Social Partners and Development Partners provide Biennial Reports and updates on their activities to enable the AU Commission to compile even more comprehensive reports. The AU Commission would particularly wish to identify „best practices‟ in employment creation and promotion for wider dissemination. There is enormous in Member States in learning form each others in creating productive and decent employment to alleviate poverty. PART 5 THE OUAGADOUGOU IMPLEMENTATION PROCESS IN RETROSPECT Follow up Mechanism 174. The implementation of the Ouagadougou PoA is largely the responsibility of national governments of Member States. They are expected, indeed required, to work closely with social partners and civil society organizations in the implementation process. As we have seen from the information on implementation of the Priority Areas, some Member States have been more active than others. Similarly, other Member States have cooperated more effectively with social partners than others. In this section, we briefly review the Follow up Mechanism; describe the strengths and weaknesses in the implementation and Reporting process. For instance, there has been no use of Indicators and setting of Targets to guide and assess the implementation process. We then identify some emerging lessons from the implementation of the Follow up Mechanism, and how the process could be strengthened in the future. 175. The Ouagadougou PoA document pointed that there was an urgent need for an integrated, interrelated and coherent implementation and follow up at the national, regional and continental level. At the national level, a major instrument LSC/EXP/6 (VII) Page 91 of implementation would be a National Follow up institution that would, among other things, develop a National Plan of Action (NPA) with clear objectives, milestones, roles and responsibilities of all stakeholders and development partners. The NPA would be developed by a national Follow up institution consisting of government and social partners. 176. As we saw in Part 2 above, other tasks of the National Follow up institution were to review, revise and propose national employment and poverty alleviation policies and programmes in line with the decisions of the 2004 Ouagadougou Summit. In addition, the National Follow up institution was expected to provide advocacy in favour of the unemployed and working poor as well as disseminate and popularize the Ouagadougou PoA and Declaration. In sum, the National Follow up institution was required to play a pro-active role in employment policy matters. Unfortunately, this aspect of the PoA that recommended the setting up of a National Follow up institution that drew membership from beyond government ministries and departments was not followed up in most MS. The same was the case with a Regional Follow up institution. Most RECs did not set up such an institution. 177. Most MS established inter-ministerial committees and tasked them with the implementation of the PoA. While some MS have confined the membership of such committees to government ministries and departments, others have broadened the participation to include social partners and civil society organizations. However, as we saw from implementation activities, the latter cases are few. This has had an impact on the quality of National Level dialogue on employment and the Ouagadougou Process as a whole. It does not appear that the Country Reports from most MS were subject to discussion and endorsement by social partners and other stakeholders as is recommended in the PoA. LSC/EXP/6 (VII) Page 92 Indicators 178. Although the PoA advises MS to define indicators to guide them on measuring progress (or lack of it) in implementation of the various Priority Areas, few MS have established such indicators. The reports from MS also do not give an indication whether there exist National Plans of Action as envisaged under the Ouagadougou PoA. It is also not clear from reports to what extent the Ouagadougou Declaration and PoA were disseminated and popularized at national level during the period under review. Targets 179. The Ouagadougou PoA does not set targets for the achievement of the 11 Priority Areas that it defines. Without targets, it is difficult to measure achievements and failure. Discretion left to national level authorities to develop detailed Plans of Action with clear objectives, indicators, milestones, roles and responsibilities of stakeholders has been open-ended in our view. The absence of targets, in a context in which they have become widely used, as in the MDGs, makes it difficult to judge and evaluate the state of progress in the implementation of the Ouagadougou PoA. The listing of programmes and activities of MS and RECs gives a picture of what is transpiring but it is not adequate to reach an analytical conclusion on whether MS X or Y is making progress towards the objectives outlined in the PoA. Reporting 180. There is a provision in the PoA that MS and RECs should report on their implementation process every two years. As the LSAC has observed at its meetings of 2006 and 2008, when those reports were due, less than half of MS had sent in reports. Despite reminders, some MS and RECs have not responded positively on this matter. One deduction that could be made is that MS attach little importance to the Ouagadougou process including reporting. Another is that the responsible national ministry or authority in charge of reporting the LSC/EXP/6 (VII) Page 93 Ouagadougou PoA have not been coordinated enough to initiate and accomplish the task. 181. Finally, there could be a deficit in political will at various levels to actively pursue the implementation of the Ouagadougou PoA. This was anticipated in the PoA when it pointed out that a strong political commitment is needed for the effective implementation of these Summit outcomes. It had gone further to observe that previous Continental initiatives had not been effectively implemented, amongst others, because of inadequate coordination, lack of resources and capacity, awareness of the existence of such initiatives and lack of an effective Follow up mechanism. Whatever the actual reason, there needs to be a frank exchange of views and experiences when Member States, RECs and development partners next meet to consider this Report. Progress will be difficult to make without some introspection and reflection on past performance. Conclusion 182. This Report has been compiled in accordance with the Ouagadougou Declaration and PoA which stipulates that a comprehensive report be presented after 5 years of implementation. It is part of the Follow up Mechanism and reporting process that complements the biennial reports by Member States, RECs and development partners. The Report has thus built upon the Biennial Reports of 2006 and 2008 and other relevant material particularly - and understandably- from the ILO. The PoA states that „‟the implementation process should be reviewed so as to identify progress made as well as obstacles hindering the full and effective implementation‟‟. This Report has highlighted the opportunities created by the adoption of the PoA, the progress made and the constraints experienced. It has sought to be frank about the challenges that Africa experiences in meeting the ambitious objectives that it set for itself in the Declaration and PoA. LSC/EXP/6 (VII) Page 94 183. Placing employment at the core of economic and social policies is a major political commitment. Achieving the array of objectives set out in the 11 Priority Areas requires maximum mobilization of resources. Not only are political commitment and resource mobilization required but social dialogue with employer and labour organizations as well as cooperation with development partners are necessary. Part 1 spelt out the overall purpose of compilation of this Comprehensive Report. 184. It is a wide-ranging stock-taking of what Africa has accomplished in employment creation between 2004 and 2009. The first part of the Report therefore outlines the principal elements contained in the PoA. It is observed that the 11 Priority Areas lie at the heart of the PoA. The degree to which the objectives, strategies and recommended actions in those Priority Areas are being achieved shows whether progress is being made in the implementation process. Part 1 of the Report concludes with an outline of the Follow up Mechanism and the Reporting process. As the Report itself substantiated, there were many players in the implementation, follow up and reporting processes. They included Member states, RECs, international partners, the LSAC and the AUC itself. Part 2 set out the broad context in which the PoA was implemented between 2004 and 2009. 185. The context had macroeconomic, international, social and labour dimensions which were spelt out at some length. The period form 2004 and 2007 is described as one of rapid economic growth (of above 5 per cent) with positive impact on employment creation in most Member States. However, this was undermined by a global financial and economic crisis which was precipitated by a housing and banking crisis in Western countries in the latter part of 2008. This led to a recession in 2009. The negative spill-over effects of this recession are still being experienced by most African countries. Employment creation has been adversely affected. Several scenarios on global unemployment patterns are LSC/EXP/6 (VII) Page 95 presented largely drawing on ILO projections. The Ouagadougou Summit of 2004 did not foresee this crisis of 2008-09, and there were no contingency plans for it. Member States need to adjust to the new situation and assess how their plans for employment creation will be affected. 186. The rest of the Report is then devoted to the follow up activities undertaken to fulfill commitments made under each of the 11 Priority Areas. Part 3 assessed the institutional developments that were generated for effective follow up activities. The AUC and LSAC were themselves instrumental in setting up the necessary consultative processes at regional level resulting in regional employment policy workshops. Particular attention was paid to contributions from sister AUC departments such as Economic Affairs and Rural Economy and Agriculture. The specific contributions of RECs and of international partners in employment creation at regional level are elaborated upon in Part 4 of the Report. The prominent contribution of the ILO is highlighted in acknowledgement of its contribution to technical capacity building in the AUC as well as its large role in support of Decent Work country programmes (DWCPs). 187. The most detailed part of the Report concerns the assessment of the implementation of the 11 Priority Areas in Part 5. Drawing extensively on Country Reports of Member States and on other sources, principally again the ILO, this part of the Report shows that there have been many activities and initiatives undertaken in pursuit of the objectives of the PoA. There has been considerable progress and coordination in some areas. In others, progress has been slow or elusive. The areas where considerable progress can be discerned include : formulation of national employment strategies (Priority 1), establishment and improvement of social protection schemes (Priority 4), youth and women employment (Priority 5), and employment intensive investment projects (Priority 7) LSC/EXP/6 (VII) Page 96 188. Areas where progress still needs to be made include employment-related investment in the agricultural sector (Priority 2), building and strengthening the framework for integration and harmonization (Priority Area 3) as well as resource mobilization (Priority Area 11). 189. Thus far the overall outcome of the implementation of the Ouagadougou is a mixed one. There have been progress and limitations. While political commitment to employment promotion for poverty reduction has been demonstrated in some Member States, it has been lacking in others. This partly accounts for the erratic response from some of them when the AUC requested them to fill questionnaires in 2006 and 2008. 190. There are several deficits in the implementation process that should be noted and addressed in future. First, few Member States set up inclusive National Follow up institutions that included both government ministries/departments and representative bodies of social partners. The participation of social partners in the process has been quite limited in most countries. As Part 6 of the Report indicates, other deficits include the absence of indicators and targets against which to evaluate the implementation process at national and regional levels. These will need to be defined and integrated into the PoA in the next phase of implementation. 191. Finally, we need to ascertain whether there are any useful emerging lessons from the implementation of the past 5 years. The implementation of AU Summit Declarations and Plan of Actions is viewed as a largely voluntary exercise on the part of Member States and RECs. But they freely make the commitments to undertake implementation. As in such matters in other sectors in which they make commitments, it has been proposed that such commitments should be formally adopted and institutionalized in the respective countries. Often LSC/EXP/6 (VII) Page 97 the commitments remain as „declarations without being translated into laws domesticated into in the national legal systems in the respective countries (ECA and AU, 2009). Such formalization would provide a better guarantee that, with changes in government and transfer of power and duties, adherence to commitments would continue. It has therefore been recommended that countries should ratify the commitments by passing them through Parliament and including them in National Development Plans (Ibid.). 192. Another lesson relates to the need for regular and innovative communication between AUC, Member States, RECs and development partners during the period of implementation. Communication should not be confined to annual meetings of the LSAC or presentation of biennial reports every two years. There should be a medium of communication that gives a regular update of developments in the 11 Priority Areas of the Employment Promotion agenda. A dedicated website and newsletter could be an effective source and channel of information about developments in the employment sector. This channel should be utilized to share information between Member States and the AUC, RECs and development partners. Good practices in employment promotion would one of the focal areas of interest and dissemination. 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Zepede (2007) Addressing the Employment-Poverty Nexus in Kenya Brasilia: IPC LSC/EXP/6 (VII) Page 101 Contents Boxes and Tables Part 1 Background ………………………………………………………………… 2 Principal Elements in the Plan of Action..……………………………… 3 Follow up Mechanism and Reporting Process ………………………. 5 Part 1 The Broad Context of the Report ……………………………………….. 7 - Macroeconomic Context ……………………………………… 7 - The International Context …………………………………….. 10 - The Labour and Social Context……………………………….14 Part 2 Institutional Developments and Follow up ……………………………..16 - Consultative Meeting…………………………………..………..16 - Guidelines and Reporting Format ……………………………17 - Regional Follow up Meetings in 2006 ………………..………18 Other Activities undertaken by the AU Commission - Department of Social Affairs …………………………………. - Informal Economy Study……………………………….……….20 - Migration ………………………………………………………….21 - Towards a Continent wide Regional Employment Network ………………………………………….23 Activities by other departments in AUC - Department of Economic Affairs……………………………....24 - Department of Rural Economy and Agriculture…………….25 - Department of Education, Science and Technology……….26 - Department of Peace and Security…………………………....27 Part 3 Activities by Regional Economic Communities (RECs) ……………29 -ECCAS ……………………………………………………………. 29 -ECOWAS…………………………………………………………...29 -EAC…………………………………………………………………30 -IGAD………………………………………………………………...30 -SADC……………………………………………………………….32 . Role and Activities of International Partners …………………………….33 - ECA……………………………………………………………………… 33 - ILO……………………………………………………………………......33 LSC/EXP/6 (VII) Page 102 Part 4 Activities by Member States and Stakeholders in the 11 Priority Areas Priority Area 1: Ensuring political leadership and commitment……36 Priority Area 2: Promotion of the Agricultural Sector and Rural Sector……………………………….. 41 Priority Area 3: Framework for Integration and harmonization……………………………………… 44 Priority Area 4: Establishing and strengthening Social protection schemes…………………………….48 Priority Area 5: Empowerment of Women by Integrating them in Labour markets………………….55 Priority Area 6: Human and Institutional Capacity Building for employment creation……………………60 Priority Area 7: Key sectors with high employment Potential………………………………………………….. 66 Priority Area 8: Building international cooperation and fair and equitable globalization………………………. 72 Priority Area 9: Promotion of regional and economic Cooperation among RECs……………………………. 75 Priority Area 10: Targeting and empowering vulnerable groups…... 80 Priority Area 11: Mobilization of resources at national and international levels……………………………… 86 Part 5 The Ouagadougou Process in Retrospect………………………………….90 - Indicators…………………………………………………………….... 92 - Targets …………………………………………………………………92 - Reporting……………………………………………………………… 92 - Role of RECs and International Partners……………………….... - National Level Dialogue and the Ouagadougou Process …….. Conclusion and Recommendations………………………………………….93 LSC/EXP/6 (VII) Page 103 Acronyms ADLI Agriculture-led Industrialization AfDB African Development Bank APERP Employment Promotion and Poverty Reduction Project AU African Union AUC African Union Commission AU.COMMIT African Union Commission Initiatives against Trafficking CAADP Comprehensive Africa Agriculture Development Programme CAR Central African Republic CSOs Civil Society Organizations DRC Democratic Republic of the Congo DSA Department of Social Affairs DWCPs Decent Work country programmes EAC East African Community ECA Economic Commission for Africa ECCAS Economic Community of Central African States ECOWAS Economic Community of West African States EPAs Economic Partnership Agreements EIIPs Employment Intensive Investment Programmes EPZs Export Processing Zones FAO Food and Agricultural Organization FAWE FDI Foreign Direct Investment GTZ German Technical Cooperation HAI Help Age International ICT Information Communication Technology IGAD Inter-Governmental Authority on Development IILS International Institute of Labour Studies ILO International Labour Office IMF International Monetary Fund IOM International Organization for Migration KIML Key Indicators of the Labour Market LEEP Liberia Emergency Employment Programme LASC Labour and Social Affairs Commission LSC/EXP/6 (VII) Page 104 LIML Labour Market Indicators‟ Library MDGs Millennium Development Goals MoU Memorandum of Understanding MS Member State MSE Micro and Small Enterprises NES National Employment Strategy NGOs Non-Governmental Organizations NEPAD New Partnership for African Development NEP National Employment Policy NPA National Plan of Action ODA Official Development Assistance PASDEP Plan to Accelerate Sustained Development to End Poverty PoA Plan of Action PRS Poverty Reduction Strategy PRSPs Poverty Reduction Strategy Papers RECs Regional Economic Communities REN Regional Employment Network SADC Southern African Development Cooperation SIYB Start Your Business SMEs Small and Medium Enterprises TB Tuberculosis TVET Technical, Vocational, Educational and Training UNCTAD United Nations Conference on Trade and Development UNECA United Nations Economic Commission for Africa UNDESA United Nations Department of Economic and Social Affairs USD United States Dollar UNDP United Nations Development Programme UNICEF United Nations Children and Educational Fund USAID United States Agency for International Development WEDGE Women Entrepreneurship and Gender Equality WGDD Women and Gender Development Directorate YEN Youth Employment Network LSC/EXP/6 (VII) Page 105 Box 1 Eleven Priority Areas of the Ouagadougou Plan of Action Box 2 Guidelines on Follow up Activities Box 3 High Political Leadership in Employment Policy Box 4 Generating Productive Employment in Liberia Box 5 Malawi Agricultural Success Story Box 6 AU Social Policy Framework Box 7 Ghana National Health Insurance Scheme Box 8 Conclusions of the Dakar Conference on Social Protection Box 9 Fonds National de l‟Entrepreneuriar Feminins, Senegal Box 10 Youth Employment Strategies in Senegal and Mali Box 11 Quest for Labour Market Information Box 12 Benin National Employment and Training Observatory Box 13 NAETPI Agency in Djibouti Box 14 Benin Employment Potential Mapping Box 15 Employment Generation: the Cameroonian National Employment Fund Box 16 The Self-Employment Programme in Tunisia Box 17 Member States and Employment Intensive Investment Programmes Box 18 Examples of Coordinating Efforts between Member States Box 19 Regional Employment Policy Frameworks Box 20 Regional Employment Policy Frameworks: Principles Box 21 RECs and Employment Policy Matters Box 22 Tunisia and Health Coverage of Vulnerable Groups Box 23 Some Facts and Figures about African Cooperatives Box 24 Sample of Coops and their Membership in 11 Countries Box 25 Coop AFRICA ILO Box 26 Resource Mobilization for Implementation of the Ouagadougou PoA Table 1 Level of Agricultural Investment, 2007 .