Background I I . INTRODUCTION 1. Background Concept of sustainable - - PowerPoint PPT Presentation

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Assessing the environment conducive to the promotion of sustainable enterprises 17 conditions Jakarta, Indonesia 3-4 May Graeme Buckley ILO, Geneva Background I I . INTRODUCTION 1. Background Concept of sustainable enterprises 2.

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Assessing the environment conducive to the

promotion of sustainable enterprises “17 conditions”

Jakarta, Indonesia 3-4 May Graeme Buckley ILO, Geneva

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2

Background I

  • Concept of sustainable enterprises
  • At the enterprise level, sustainability

means:

  • operating a business so as to grow and earn

profit,

  • recognition of the economic and social

aspirations of people inside and outside the

  • rganization
  • Long-term viability implies that the

management of enterprises should be based on the three pillars of sustainability: economic, social and environmental

  • I. INTRODUCTION
  • 1. Background
  • 2. Conducive environment for

sustainable enteprises

  • 3. Why clustering?
  • 4. Why it needs to be measured?
  • 5. Shortcomings
  • 6. Structure of following slides
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Conducive environment for sustainable enterprises 17 conditions

ECONOMIC ELEMENTS Sound and stable macro economic policy and good management of the economy Trade and sustainable economic integration Enabling legal and regulatory environment Rule of law and secure property rights Fair competition Information and communications technology Access to financial services Physical infrastructure SOCIAL ELEMENTS Entrepreneurial culture Education, training and lifelong learning Social justice and social inclusion Adequate social protection POLITICAL ELEMENTS Peace and political stability Good Governance Social dialogue Respect for universal human rights and international labour standards ENVIRONMENTAL ELEMENTS Responsible stewardship of the environment

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Why clustering?

Why is it important to cluster?

  • Economic elements
  • Particularly important to the business

environment

  • Social elements
  • Sustainable enterprises need sustainable

societies

  • Political elements
  • Sustainable enterprises need strong

institutions

  • Environmental elements
  • Natural resources are important for the

functioning of sustainable enterprises

  • I. INTRODUCTION
  • 1. Background
  • 2. Conducive environment for

sustainable enteprises

  • 3. Why clustering?
  • 4. Why it needs to be measured?
  • 5. Shortcomings
  • 6. Structure of following slides
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Why it needs to be measured?

  • If you can’t measure it, you can’t

manage it!

  • Data sets can provide us with insights
  • f what needs to be addressed with

respect to sustainable enterprises

  • Clearer understanding of opportunities

and challenges of promoting sustainable enterprises

  • Analysis helps obtain an overall picture

in a country – opens a door for future reforms

  • I. INTRODUCTION
  • 1. Background
  • 2. Conducive environment for

sustainable enteprises

  • 3. Why clustering?
  • 4. Why it needs to be

measured?

  • 5. Shortcomings
  • 6. Structure of following slides
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Shortcomings when using secondary data sources I

Only secondary data sources are used to assess the 17 conditions Shortcomings:

  • Availability of appropriate indicators to

measure all dimensions

  • Different definitions (e.g. corruption,

competition)

  • Reliability of data (data collection:

response rate, sample size, questionnaire design etc.)

  • Data gaps (lack of longitudinal data,

country coverage)

  • Controversial issues (e.g. employing

workers category in Ease of Doing Business rank)

  • I. INTRODUCTION
  • 1. Background
  • 2. Conducive environment for

sustainable enteprises

  • 3. Why clustering?
  • 4. Why it needs to be measured?
  • 5. Shortcomings
  • 6. Structure of following slides
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Shortcomings when using secondary data sources II

  • Access to statistics (CD-ROM, online

sources, reports etc.)

  • Difficult to update data
  • Comparability of indicators

Recommendations:

  • Missing data and indicators should be

complemented by supplementary information (including surveys)

  • National surveys help fill data gaps and

increase the quality of assessment

  • I. INTRODUCTION
  • 1. Background
  • 2. Conducive environment for

sustainable enteprises

  • 3. Why clustering?
  • 4. Why it needs to be measured?
  • 5. Shortcomings
  • 6. Structure of following slides
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Sound and stable macro economic policy and good management of the economy (I)

Key indicators

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

Inflation rate (%) Government Finance (% of GDP) Current account balance (% GDP) Gross domestic savings (% GDP) Gross capital formation (% GDP) GDP growth (%) Labour force participation rate

Other useful indicators

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Sound and stable macro economic policy and good management of the economy (II)

Related issues:

  • There is no panacea for a good

management of the economy

  • Main targets of macroeconomic policy:

inflation, growth, unemployment and balance of payments Challenges:

  • Selection of right indicators
  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Sound and stable macro economic policy and good management of the economy (III)

Main international sources: The main international sources for macroeconomic data:

  • International Monetary Fund (financial

statistics)

  • World Bank (GDP, debt and financial flows

indicators)

  • ILO (employment trends)
  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Physical infrastructure (I)

Key indicators

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

Roads paved (% of total roads) Improved water source (% of population with access Quality of port infrastructure Quality of

  • verall

infrastructure index Electric power consumption (kWh per capita)

Other useful indicators

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Physical infrastructure (II)

Related issues:

  • International data collection efforts for

infrastructure have been fragmented Challenges:

  • Available indicators do not capture the
  • verall situation regarding physical

infrastructure

  • Lack of data for some countries
  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Physical infrastructure (III)

Main international sources :

  • International Energy Agency
  • International Road Federation
  • World Health Organization
  • World Economic Forum (Global

Competitiveness Survey)

  • World Bank (Infrastructure Database)
  • …
  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic integration 3 Enabling legal and regulatory framework 4 Rule of law and secure property rights 5 Fair competition 6 Information and communication technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Education, training and lifelong learning (I)

Key indicators

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS 1 Entrepreneurial culture 2 Education, training and lifelong learning 3 Social justice and social inclusion 4 Adequate social protection IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

Education index Public spending on education, total (% GDP) Labor skills Extent of staff training Literacy rate, youth total (%

  • f people ages

15-24) Firms offering formal training (% of firms)

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Education, training and lifelong learning(II)

Related issues

  • Comparative measurement of

education systems and the availability

  • f skilled workforce is a complex task

Challenges:

  • It is important to capture the quality of

and access to education – difficult to measure

  • Data on vocational education and on

enterprise training in Africa is scarce

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS 1 Entrepreneurial culture 2 Education, training and lifelong learning 3 Social justice and social inclusion 4 Adequate social protection IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Education, training and lifelong learning(III)

Main international sources

  • UNESCO
  • World Economic Forum (Global

Competitiveness Survey)

  • UNDP (Education Index)
  • World Bank (Enterprise Surveys)
  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS 1 Entrepreneurial culture 2 Education, training and lifelong learning 3 Social justice and social inclusion 4 Adequate social protection IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Adequate social protection (I)

Key indicators

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS 1 Entrepreneurial culture 2 Education, training and lifelong learning 3 Social justice and social inclusion 4 Adequate social protection IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

Old age (% of GDP) Public social exenditure (% government expenditure) Old age pension beneficiaries Coverage by health care (%) Public expenditure on health (% GDP)

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Adequate social protection (II)

Related issues

  • In many countries, the quantitative

knowledge base on social security is incomplete and often does not follow international statistical standards

  • Supplementary information needed

Challenges:

  • There is a big gap in social security

statistics in particular in developing countries

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS 1 Entrepreneurial culture 2 Education, training and lifelong learning 3 Social justice and social inclusion 4 Adequate social protection IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Adequate social protection (III)

Main international sources

  • ILO Social Security Inquiry
  • World Bank
  • UNDP(Human Development Report)
  • International Monetary Fund
  • World Health Organization
  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS 1 Entrepreneurial culture 2 Education, training and lifelong learning 3 Social justice and social inclusion 4 Adequate social protection IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS

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Good governance (I)

Key indicators

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS IV POLITICAL ELEMENTS 1 Peace and political stability 2 Good governance 3 Social dialogue 4 Respect for universal human rights and international labour standards V ENVIRONMENTAL ELEMENTS III CONCLUSIONS

Civil liberties index Control of corruption

Other useful indicators

Political rights index Corruption perception index (CPI) Government effectiveness Voice and accountability

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Good governance (II)

Related issues

  • No single measure can capture

corruption, government effectiveness, voice and accountability or the political participation Challenges:

  • Aggregate or individual indicators?
  • Subjective or objective indicators?
  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS IV POLITICAL ELEMENTS 1 Peace and political stability 2 Good governance 3 Social dialogue 4 Respect for universal human rights and international labour standards V ENVIRONMENTAL ELEMENTS III CONCLUSIONS

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Good governance (III)

Main international sources

  • World Bank (Governance Matters

Database)

  • Transparency International
  • Freedom House (The Freedom in the

World Survey)

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS IV POLITICAL ELEMENTS 1 Peace and political stability 2 Good governance 3 Social dialogue 4 Respect for universal human rights and international labour standards V ENVIRONMENTAL ELEMENTS III CONCLUSIONS

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Respect for universal human rights and international labour standards (I)

Key indicators

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS IV POLITICAL ELEMENTS 1 Peace and political stability 2 Good governance 3 Social dialogue 4 Respect for universal human rights and international labour standards V ENVIRONMENTAL ELEMENTS III CONCLUSIONS

Ratification of human rights conventions

Other useful indicators

Political rights index Ratification of fundamental ILO conventions Civil liberties index

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Respect for universal human rights and international labour standards (II)

Related issues:

  • Most of the approaches measure human

rights as they are laid out in national and international legal documents (human rights in principle) Challenges:

  • Indicators that measure human rights

in principle are suitable for providing some background information on the formal commitments that countries have made to protecting human rights

  • Indicators in principle do not explain

how the human rights and labour standards are respected in practice

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS IV POLITICAL ELEMENTS 1 Peace and political stability 2 Good governance 3 Social dialogue 4 Respect for universal human rights and international labour standards V ENVIRONMENTAL ELEMENTS III CONCLUSIONS

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Respect for universal human rights and international labour standards (III)

Main international sources:

  • ILO
  • UNDP
  • Freedom House (The Freedom in the

World Survey)

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS IV POLITICAL ELEMENTS 1 Peace and political stability 2 Good governance 3 Social dialogue 4 Respect for universal human rights and international labour standards V ENVIRONMENTAL ELEMENTS III CONCLUSIONS

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Conclusions

  • Difficulties in finding data for many

countries

social protection, social dialogue, entrepreneurial culture, physical infrastructure, vocational education and enterprise training, access to financial services

Informal economy very large

  • Difficulties in finding appropriate

indicators

Entrepreneurial culture

Social dialogue

Respect for universal human rights and internat. labour standards

  • Missing data and indicators should be

complemented by supplementary information/surveys

  • I. INTRODUCTION
  • II. ECONOMIC ELEMENTS

III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS III CONCLUSIONS