DECENT WORK IN THE MERCOSUR ILO

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DECENT WORK IN THE MERCOSURILO

• EMPLOYMENT IN A GROWTH STRATEGY THE FOCUS

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1.The starting point employment and external
insersion

• More than 50 of the EAP with serious employment
  problems the expected growth of the EAP gt this
  can not be managed only by active policies
  towards the labour market.
• Week insertion in foreign commerce gt increase in
  competitiveness for better insertion in more
  dynamic foreign markets which demand goods and
  services with a greater value added and a greater
  internal diffuser effect.
• Integrated action is needed to increase rapidly
  the number of quality jobs, so that in 5, 7 or 10
  years, depending on each country, the problem
  would have been reduces to manageable proportions
  gt
• Development strategy, with employment as a key
  objective, and to improve competitiveness as one
  of the most important means to reach it.

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2. Growth of marketable investment

• In order to rapidly increase quality employment,
  during long periods of time, it is essential to
  accelerate the growth in investment, in X and CM.
• He/she has to accelerate in X and CM, i) to help
  to the reinsertion in the world trade ii) to
  generate the foreign currencies required by the
  acceleration of the growth iii) to contribute to
  the increase of the domestic demand and of the
  investment in not marketable. If we invest the
  process, gt it doesn't work .
• The acceleration of the marketable investment
  demands two things
• i) profitability adapted in foreign
  currencies, for the investment in those
  activities
• ii) a dynamic demand for marketable products.
  through the promotion of exports invigoration of
  the MERCOSUR and measures for the increase in
  the production tame competitive with imports that
  he/she goes to the domestic market.

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3. Reach of the report

• To activate investment decisions in X and CM, it
  is indispensable to improve the competitiveness
  of the countries and of the companies. gt Macro,
  meso and micro policies that improve
  competitiveness. To be able to accelerate the
  investment and to sustain the increase of the
  employment of quality gt to reduce unemployment
  and informality.
• Political and active programs to improve the
  employment, and to contribute to reduce the
  unemployment. Social expense to sustain to the
  most affected
• Politicians guided to articulate to a segment of
  the informal activities , to the acceleration of
  the growth of the modern segments
• From the MERCOSUR, to generate instances to
  strengthen the objective employment, to advance
  in the coordination of political, to stimulate
  the investments bi, tri or multinationally to
  stimulate the access to the diffusion of
  innovations, to contribute to the vocational
  training, to contribute to the support to the
  MYPES, to strengthen the commercial negotiations
  of the countries, to advance toward the
  coordination of active programs, with the
  agreement of the countries

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4. The focus

• Macroeconomic regime of the type of competitive
  and stable real exchange rate, like general
  framework for the remaining policies
• Policies toward networks, clusters and productive
  chains gt to expand the marketable ones that
  face markets with more dynamic demands (of the
  MERCOSUR or external)
• Policies to increase systematically, the total
  productivity of all the resources. (basic
  education, vocational training National System
  of Innovation articulation of MYPES
  negotiations and institutionalisation of labour.
  Displacement of EAP toward activities of more
  productivity .
• Policies to improve the context of the investment
  (productive infrastructure, artificial security
  financial system practical managerial funds,
  etc.)
• Policies to promote the exports, to strengthen
  the integration in the MERCOSUR, and to energize
  competitive production with imports.
• Active policies toward the labour market
• Policies from the MERCOSUR oriented to
  consolidate the objective employment at level of
  the countries. It includes National Agreements
  and at level of the MERCOSUR, regarding the
  essential policies for their role in a strategy
  with objective employment .

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Graphic 1. Sequence of policies,
objectives y quality employment.
Macroeconomic regime for
real, competitive and stable exchange rate
-Productivity policies -Labour Institute
-Educ. and Formation pol- -MYPES Pol.
-Innovations Pol. - Microeconomic policies -
Infrastructure develops. - Financial system

- Legal
Security - Business practices - Others
Export Integration pol. Inst. Mercosur
Development pol. Competitive networks
Improvement in rentability of
Increase in the demand for the
marketable investment production
of marketable goods (X y C.c/ M.)
Acceleration of the marketable investment
Acceleration of the investment on the aggregate
demand and on the non-marketable investment
Pol. of Employment activ
Pol. for Informal activ
Acceleration on the creation of quality
employment and increase in real salary
Informal Trans. And activ.
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5. Comparative Advantages versus Competitive
Advantages

• In the past, the emphasis was in intensive
  strategies in natural resources and cheap
  manpower that proposed gt emphasis in bs. and
  intensive ss in knowledge and capacities bs.
  and ss. intensive in natural resources but
  several processing stages to increase the added
  value for unit of resources
• Variable combination of the mixture of policies
  according to national realities (example of
  Paraguay in MYPES and tariffs) Flexibility of the
  mixture in the time. indispensable competitive
  exchange rate for the ignition phase.
• Effective protection in closed economies gt
  tariffs, quotas, administrative handlings,
  special regimes, etc.
• Effective protection in this approach gt
  interaction of the five exposed politic context
  elevates the protection in transables gt it
  elevates the added value, utilities and real
  wages. But in a coherent way with the
  requirements of an open economy and without
  violating the WTO -
• Action of the Public Sector is complementary and
  it prioritizes the productive development of the
  Private sector. Apart from maintaining its other
  responsibilities

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6. Macroeconomic Regime of real, competitive and
stable exchange rate

• It recaptures the expansible role, but not based
  on excess of expenditure or increase in the money
  supply. Essential for the employment.
  Profitability of the marketable investment and
  effect relative prices .
• It is a regime it implies the alignment of the
  foreign exchange policies, fiscal and monetary
  gt stability of prices and goal of competitive and
  stable real exchange rate. It is not only"
  inflation targeting."
• It is vital for the ignition of the process.
  phase that can last years experiences
  limitations and obstacles.
• Adoption easiness for countries that already made
  significant real devaluations. as those of the
  MERCOSUR .
• Base for the formal or informal coordination of
  political macro-economic that is a requirement
  for an advance of the integration
• Special situation of Paraguay, (Tariffs and small
  company)

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7.Policies to increase the total productivity at
a micro level.

• - Institutionalisation of Labour reduction of
  labour costs versus increase of the total
  productivity and reduction of total unitary costs
  
• National Sist of Innov gt current Weakness gt
  to Potentialize innovations and the articulations
  among the centres of CyT, of innovation, and the
  demands of the companies promotion funds lines
  for testing of innovations.
• Basic education and Vocational training a) to
  learn how to learn b) regulated market of ss. of
  formation, mainly toward the MYPES.
• Articulation and access to resources for the
  MYPES. a) Organization and associative like basic
  step. Insert in Clusters, chains or productive
  networks gt smaller mortality. b) invigoration
  of varied politicians to increase the
  productivity, but converging toward this
  objective.
• - Evolution of the wages and of the
  productivity.

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8. Meso policies to improve the context for the
investment

• Development of infrastructure. - Goals for 2010,
  to get closer, without arriving, to the
  indicators of Korea and Portugal. gt aprox. 1
  annual, additional, to the investment forecasts
  in infrastructure .
• Artificial and judicial security. Greater
  transparency, preventive functions of the
  continuous analysis of the sentences. At general
  level i) social cost of those "transgressions"
  e) to set down examples for the population.
• Financial System the vehicle to redirect
  resources toward transables adaptation or
  "reconstruction. Ventures y risk capital.
• Diffusion of managerial strategies of total
  productivity and quality.
• The stabilization funds district attorney to
  soften the fluctuations of the economic activity,
  and to reduce the uncertainty for the investment
  -

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9. The meso policies towards the productive
networks

• The networks like predominant organization.
  clusters, chains and other associative forms.
• The specific policies to remove obstacles for the
  development and the networks in environments that
  that benefits to the country and the companies of
  the networks gt optimisation of the
  suplementarity with the private sector.
• Policies are guided toward the companies nucleus
  that lead each network, and through agreements,
  they go impacting toward the remaining companies
  of the network.
• Consequently gt the public policy they impact
  via specific agreements, on the companies
  nucleus, to induce goods mainly the group
• The specific policies toward the networks,
  include the priorization of more national
  component of inside the MERCOSUR, greater exports
  to the MERCOSUR, and greater exports to the rest
  of the world.
• They constitute a vehicle to remove obstacles and
  to enlarge access to political environment.
• Networks and MYPES

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10. The policies of export promotion, and the
integration to MERCOSUR

• An arsenal of different policies of promotion of
  exports exists, exposed in the Report. The topic
  is that to adopt them in such a form that they
  are adapted to the conditions of each country.
  Risk of insufficient managerial decisions to
  absorb the directed resources gt coherence
  Programs of quality and productivity at level of
  the MERCOSUR
• Promotion of regional productive nets with good
  participation of MYPES, guided to the production
  of marketable.
• Combined negotiation of commercial, necessary
  agreements not only because they expand the
  trade, if not because they attract investments
  when giving horizons of certainty in different
  foreign commerce lines
• Greater and better use of instances at the level
  of MERCOSUR to speed up the integration processes
  and to potentialize the complementary activities.
  
• Instances de promotion of bs and ss intensive in
  natural resources but with consecutive processing
  and more value added (Ex. Tourism)

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11.The active policies of employment

• They cannot be dissociated of the macro, meso and
  micro economic tendencies. In particular gt to
  modify the composition of those policies as one
  is living a contraction or a recovery. this way
  in the 1st.case, the programs will tend to be of
  direct creation of employment, or of transfers
  for the public sector, while in the 2nd case the
  programs will tend to depend more on private
  activity than potencialize the resources it
  uses, ex. subsidized programs to the recruiting
  for deprived companies.
• Decentralization of their execution, and
  identification of the mix at local level
• Much more priority in the programs toward the
  MYPES and informal micro companies. They are the
  greatest decent working source for the future.
  They are profitable, and it is the best way to
  improve the employment and the distribution of
  income. Attention to their articulation. Increase
  of Total Productivity more than reduction of
  labour costs.
• But coordination and convergence, and better use
  of technology of information, evaluations in
  process and impact evaluations. but that of
  acting.

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12. Policies toward informal activities and
solidarity networks

• An improvement is necessary of at least those
  activities that possess potential. Not for all -
  because the universe is enormous.
• The optics is to support them so that they
  improve and they can be formalized.
• Fostering of the association to arrive to them
  with policies, and to potentialize their
  articulation to the growth of the modern
  segments. subcontract, insert in small networks.
• Acceleration of the demand of the companies, and
  the consumption. spread by the increase of the
  employment and real wages. it elevates the demand
  for bs.and ss. Informal.
• The important thing, then is to allow that they
  benefit of her, with more association and
  articulation and access programs to resources.
  credit, training in administration, labour
  training, technology and information of markets.

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13.The policies toward the labour context

• Labour Institutionalisation and productivity
• Active policies of employment
• System of labour formation.
• Pol. Informal segments
• Pol. toward the MYPES.
• Information and Labour Policies
• The institutionalism for the employment in the
  MERCOSUR.

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14. Social Dialogue and the MERCOSUR

• The strengthening of meso and micro collective
  bargaining
• The macro instances toward a National Agreement
  (political and social) on the main State Policies
  that constitute the base and fabric of a
  development strategy with objective employment.
  The consent perimeters to define them.
• Governance and democratic stability. Less
  uncertainty and investment decisions.
• Once achieved the National Agreements,
  amplification at the level of the MERCOSUR. A
  consent perimeter around the state politicians
  that sustain a development strategy with
  objective employment.
• Gradual convergence of strategies gt MERCOSUR
  something more than a common market.

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15. Expected Results

• Sustainable growth of the employment of quality,
  around which it is possible to establish an
  increase of the decent work.
• Growth of the real wages, to the rhythm settled
  down by the advance of the productivity
• Significant reduction of the poverty for
  revenues.
• Strengthening of the insertion of the MERCOSUR in
  the most dynamic external markets
• Greater competitiveness of the countries of the
  MERCOSUR based on a high total productivity and a
  more favourable environment for investment.
• Development of the MERCOSUR as an extended market
  and as a platform for policies