Towards a new role for the private sector ?

Stakeholders meeting of the Belgian development cooperation

Rudi Delarue Director ILO Office for the EU and the Benelux countries

Towards a new role for the private sector ?

• The debate is timely and welcomed • ILO brings together the actors of the real economy:

employers, workers, governments of 183 countries• ILO covers the world of work in an integrated way

combining economic efficiency with social justice• Social, employment, economic, financial and

environmental policies go hand in hand • Not economic growth versus human development

and governance

Towards a new role for the private sector ?

• A fragmented and isolated approach will not work: for instance MDGs should not be taken in isolation; part of a more integrated approach involving also inclusive growth, income opportunities, income distribution and rights

• Effective public- private partnership (PPP)/cooperation is essential for promoting inclusive growth and sustainable development

• Private sector has an interest in promoting governance and capacity building of public institutions and private actors

Towards a new role for the private sector ?

• Interest in having mechanisms/systems transforming growth into jobs into income and vice versa

• Decent work including social protection floor • Sustainable enterprises framework: includes CSR

but goes beyond (e.g. enabling public framework)

• Support for voice and representation of workers, minimum wage fixing, minimum rules and practices on health and safety at work, link education with labour markets

• Promoting women entrepreneurship • Role of private sector in fragile states

Support to private sector

• Not only classic private profit making organisations • Social economy and cooperatives in Africa • Capacity building of organisations of the private

sector such as employers and workers organisations and of bodies promoting social dialogue/representation

• Need for an actor based approach • Not by general call for proposals targeting civil

society in general• Donors should not create or support ad random/ad

hoc private sector organisations• Potential in informal economy and rural sector

Towards a new role for the private sector? Examples

• ILO helpdesk for business on international labour standards• IFC and EBRD social and environmental guidelines for loans to

companies • Better work addressing decent work deficits in a sector, region,

country: ILO, IFC, companies, public donors • Combating child labour in cacao sector going beyond formal

economy of the supply chain• Suggestion: PPP on strengthening labour inspection and

administration (instead of private audits and certification only) • Health coverage initiatives in rural, informal, semi-informal and

formal economy (mutuelles) that can become part of a more comprehensive system (social protection floor)

• Apprentiship systems, skills development and green economy

Thank you for the attention Useful references

ILO helpdesk for Business on International Labour Standardshttp://www.ilo.org/empent/Areasofwork/business-helpdesk/lang--en/index.htm

Framework for sustainable enterpriseshttp://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_093970.pdf

ILO reply to the EU Green paper on inclusive growth and sustainable development http://www.ilo.org/public/english/region/eurpro/brussels/downloads/eugreenpaperiloreply.pdfSocial economy and cooperatives in Africahttp://www.ilo.org/public/english/region/afpro/addisababa/events/socialeconomyoct12_09.htmWomen entrepreneurship in Africahttp://www.ilo.org/public/english/region/afpro/addisababa/pdf/platformwed.pdfThe UN social protection floor initiative (inspired by South-South cooperation,

involvement of experts from developing countries, from emerging economies and from EU)

http://www.socialsecurityextension.org/gimi/gess/ShowMainPage.do