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Studies on Employment and Extractive Industry-Dominated African Countries Employment Policy Department EMPLOYMENT Working Paper No. 221 2017 Studies on employment and extractive industry-dominated African countries Chijioke J. Evoh Employment and Labour Market Policies Branch EMPLOYMENT Employment Policy Department EMPLOYMENT Working Paper 2017 No. 221 Studies on employment and extractive industry-dominated African countries Chijioke J. Evoh Employment and Labour Market Policies Branch Copyright © International Labour Organization 2017 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Publications Bureau (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. Libraries, institutions and other users registered in the United Kingdom with the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP [Fax: (+44) (0)20 7631 5500; email: [email protected]], in the United States with the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923 [Fax: (+1) (978) 750 4470; email: [email protected]] or in other countries with associated Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose. ISSN 1999-2939; ISSN 1999-2947 (web pdf) First published 2017 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Referen ce to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected] Visit our website: www.ilo.org/publns Printed by the International Labour Office, Geneva, Switzerland ii Preface The primary goal of the ILO is to work with member States towards achieving full and productive employment and decent work for all. This goal is elaborated in the ILO Declaration 2008 on Social Justice for a Fair Globalization,1 which has been widely adopted by the international community. Comprehensive and integrated perspectives to achieve this goal are embedded in the Employment Policy Convention of 1964 (No. 122), the Global Employment Agenda (2003) and – in response to the 2008 global economic crisis – the Global Jobs Pact (2009) and the conclusions of the Recurrent Discussion Reports on Employment (2010 and 2014). The Employment Policy Department (EMPLOYMENT) is engaged in global advocacy and in supporting member States in placing more and better jobs at the center of economic and social policies and growth and development strategies. Policy research and knowledge generation and dissemination are essential components of the Employment Policy Department’s activities. The resulting publications include books, country policy reviews, policy and research briefs, and working papers.2 The Employment Policy Working Paper series is designed to disseminate the main findings of research on a broad range of topics undertaken by the branches of the Department. The working papers are intended to encourage the exchange of ideas and to stimulate debate. The views expressed within them are the responsibility of the authors and do not necessarily represent those of the ILO. Azita Berar Awad Director Employment Policy Department 1 See http://www.ilo.org/global/about-the-ilo/mission-and-objectives/WCMS_099766/lang--en/index.htm 2 See http://www.ilo.org/employment iii Foreword Promoting productive employment is a major challenge for emerging and developing economies and a key component of their socio-economic development agenda. Yet, many resource rich countries find it challenging to translate their wealth into instruments to support inclusive growth and sustainable development. In such cases, a broad set of pro-employment policies is critical for exploiting the resource potential to create productive and sustainable jobs, and thereby support structural transformation and contribute to achieving the Sustainable Development Goals (SDGs), especially Goal 8 “to promote inclusive and sustainable economic growth, employment and decent work for all”. The International Labour Organization (ILO) has been conducting research on pro- employment policy frameworks and providing technical support to member States for a number of years. It has also acquired a knowledge base in sectoral analysis to assess the job- creation potential of specific policies, as called for by the 2014 International Labour Conference resolution to support member States devise comprehensive employment frameworks to “promote employment, enhance productivity and facilitate structural transformation processes.” (ILO, 2014: 7(b)). This paper analyses the challenges faced by a number of resource dependent countries in Sub-Saharan Africa to provide recommendations on how to design a set of policies to encourage productive employment growth. It examines the policy framework relating to extractive industry in a number of African, Asian and American countries to identify productive uses of the revenues for inclusive growth in other sectors of the economy, diversification away from the extractive industries through industrial and sectoral policies, as well as investment in social protection and infrastructure. The paper underlines the importance of strong institutions for governance, transparency, effective policy design and implementation. It advocates for a comprehensive approach to development relying on social protection, labour legislation and investment in social infrastructure (healthcare and education), along with cooperation with social partners and civil society through social dialogue. This paper was authored by Chijioke J. Evoh, fellow at the Economic and Urban Policy Analysts (ECONUPA) in Yonkers, United States. Sukti Dasgupta Chief Employment and Labour Market Policies Branch Employment Policy Department v Acknowledgements The author is grateful for the helpful technical comments of Ms Zhang Yanchun – Chief of Commodity Policy Implementation and Outreach Section at the United Nations Conference on Trade and Development (UNCTAD) – and Mr Aurelio Parisotto – Chief of the Country Employment and Policy Unit at the ILO. All remaining errors and omissions are solely the responsibility of the author. vii Contents Page Preface ...................................................................................................................................................... iii Foreword ................................................................................................................................................... v Acknowledgements ................................................................................................................................. vii Executive Summary ............................................................................................................................... xiii Abbreviations .......................................................................................................................................... xv 1. Introduction ..................................................................................................................................... 1 1.1. Background and motivation .................................................................................................. 1 1.2. Guiding questions ................................................................................................................. 2 1.3. Research methods ................................................................................................................. 2 1.3 Outline .................................................................................................................................. 3 2. Natural resource curse or institutional challenge? .......................................................................... 3 3. Extractive industries, linkages and economic diversification: A conceptual framework ............... 4 3.1 Extractive industries: From an enclave to a linkages mindset .............................................. 4 3.2 The linkage factor and inclusive growth in EI-dependent economies .................................. 5 3.3 Extractive industries and economic diversification .............................................................. 6 4. Policy frameworks and economic developments in extractive industry-dependent economies in Africa .............................................................................................................................................
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