Why and How to Engage in Pro-em ploym ent Budgeting? 1 E. DACHON - PowerPoint PPT Presentation

Why and How to Engage in Pro-em ploym ent Budgeting? 1 E. D’ACHON & N. PAGÈS CEPOL -EMP/ POLICY 14-16, SEPTEMBER 20 10

Why to Engage in Pro-em ploym ent Budgeting? 2 Beyond intention & policy formulation : Towards operationalization   “ National policy announcem ents on job creation are rarely linked to quantifiable budget targets and disappear once the budget preparation process is com pleted. In other w ords, em p loy m ent d oes not fea ture in the end -of-cy cle a ssessm ent of the b ud g et… coord ina tion a cross m inistries, esp ecia lly m inistries of fina nce a nd la bour, ha v e been a m issing link w hen it com es to em p loy m ent p olicies ”, Conference of African Ministers of Economy and Finance, March 2010  “ W ha t is the use of a Na tiona l Em p loy m ent Policy if w e ha v e no m ea ns to im p lem ent it ?” , MoE., Burkina Faso, March 2010  “Public Budget and how to increase its employment outcome identified as a top priority by ILO constituents, Decent Work Issues in Poverty Reduction Strategies and National Development Frameworks” (Turin, Dec. 2008)

Public Budgets: Why Are They Im portant? 3  Central source of funding of National Development Plans  External Assistance provided through Public Budgets  Main tool to operationalize employment targets (ILC, 2010) and translate NEP into reality  Being out of the loop for resourcing through national budgeting can result in missed opportunities

How to Engage in Pro-em ploym ent Budgeting? 4 A pragm atic approach  Working from existing tools : PER and MTEF/ Programme Budget  A twofold approach: (i) MoE, (ii) Sector ministries  In complementarity with employment targeting and diagnosis tools: - Employment targeting tools at macro and sector levels - Employment impact assessments of sector policies to sector budgeting

The Burkina Faso Experience 5  NEP (2008) linked to Vision 2025 and PRS  Request from MoFinEcon. to implement PER/ PB on employment for effective implementation of NEP  PER & Programme Budget: main budgeting tools of MoF and key sector ministries (WEAMU directives)  Interministerial Committee on Pro-employment Budgeting (Decree October 2009) to monitor the process from 2 entry points : (i) Ministry of Youth and Employment (ii) Sector level: Ministry of Agriculture

The Burkina Faso Experience 6  Validation workshop March 2010 on main results :  PER of MoYE: missing link - budget allocation and NEP priorities- Effective implementation of NEP needs adequate resources allocations and optimal use of these resources according to NEP priorities  Program Budget of MoYE (2010-13) linking expenditure, NEP objectives and performance targets  MoYE among the 7 key ministries selected by MoFinance  PB of MoYE examined by Budget conference and National Assembly in 2010  Employment targets in the PB of Ministry of Agriculture :  Preliminary study: indicators and methodologies  In depth analysis: impact simulations & Programme Budget

Conclusions 7  Key conditions to succeed in implementing a pro- employment budgeting:  Designing NEP & its Action Plan with MoFinance  Interministerial coordination (MoE, MoFinance, sector departments)  Internal process led by MoFinance  Capacity building of MoE and constituents for monitoring employment targets included in pro-employment budgeting tools at national level.  Work in progress: draft Guidelines

Thanks for your attention! 8