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An introduction to the economic, social and environmental dimensions of EII in infrastructure. “Employment-Intensive Investment for Sustainable Development” Cape Town, South Africa, 9 – 13 July 2012 A155532. EII – Using public investments.

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an introduction to the economic social and environmental dimensions of eii in infrastructure

An introduction tothe economic, social and environmental dimensions of EIIin infrastructure

“Employment-Intensive Investment for Sustainable Development”

Cape Town, South Africa, 9 – 13 July 2012


eii using public investments
EII – Using public investments

Public investments – an instrument still available to governments

Infrastructure investments:

important share of total

major share of public

In reconstruction periods much larger


eii infrastructure for local development
EII – Infrastructure for local development

Linking sectoral public investments in

productive infrastructure

social infrastructure

protection of productive resource base (environment)

with employment creation – both direct and indirect

and induced employment

Injection to local people, enterprises and economy

Means for and part of local economic development

Domestic market expansion

Social protection


make the most of local resources including
Make the most of local resources, including

Unskilled labour

Knowledge (e.g. technology, skills transfers)

Skilled labour

Micro and Small Enterprises, Consultants

Organisations, Associations

Tools and Equipment


Natural Resource Base


What are local resources?


local resource use possible applications
Local resource use: possible applications

Soil conservation






Which productive and social infrastructure, and natural resources?


technology choice eiip development
Technology choice – EIIP Development

Technical and engineering standards to optimise the use of locally available materials in construction and maintenance

Construction management and appropriate hand tools, equipment and machines, planning techniques and tools

Productive and decent work


what has been proven
What has been proven?
  • Based on technology choice:
    • Direct jobs: 3-5 times more
    • Multiplier effect: 1.6 – 2.0


  • Foreign exchange: typically 50% savings
  • Costs: typically 20% cheaper
  • Contribution to increased GDP

+ Social benefits from

regular infrastructure investments


sectoral public programmes
Sectoral Public Programmes

Planned centrally or at decentralised level (Transport Sector Programmes, National Rural Infrastructure Programmes, National Education Programmes, National Health Programmes)

Priority Objectives

promotion of EII policies based on technology options

local private sector development

local governance

Work opportunities are offered


sectoral public programmes potentials constraints conditions for success
Sectoral Public Programmes – Potentials, Constraints, Conditions for success

Potential employment creation for unskilled, semi-skilled people, enterprises, consultants, as well as for unemployed graduate youth

Well known constraints; operational systems developed and implemented in an increasing number of countries


Access to public tenders, adaptation of contract systems to EII and SME approaches

Support technical capacity building and management

Access to credit, equipment, …


multisectoral programmes community works
Multisectoral Programmes – Community Works

Small investment funds for employment and/or local development

Productive, social infrastructure or productive natural resources/environmental programmes

Direct and sustained impact on production and income for target populations, for their access to goods, assets and basic services

Promotion of participative modalities and contractual approaches specifying rights and obligations of concerned parties

Promotion of the principle of organisation and negotiation in previously unorganised environments


multisectoral programmes potentials constraints conditions for success
Multisectoral Programmes – Potentials, Constraints, Conditions for success

Support to local communities in their role of programme managers: planning, programming, budgeting, supervision, administrative systems, fast disbursements and effective decentralisation

Support to decentralised technical services

Support to private sector development in programme supervision

Support to value based organisations in programme management and implementation


capabilities development a new debate in economics
Capabilities development:A new debate in economics

Growth does not translate automatically into development

Success in economic development no longer measured by GDP but


sophisticated production structure

human development

Not one-size fits all policies, but different and diverse policies and institutions for country-specific context are required


a new development vision ilo s perspective
A new development vision ILO‘s perspective

Key challenge: trigger and sustain a development process which is characterised by

Transformation of production structure (advanced technologies, diversification )

Transformation of employment patterns

Accumulation of domestic capabilities

These three processes are interrelated, complex, cumulative and path-dependent

The State and social partners play a key role in facilitating and shaping the transformation and learning process


the concept of capabilities
The Concept of Capabilities

Capabilities are defined by two dimensions

Competences – performance, knowing how to do, standards

Option space – opportunities, potentials, choices

Capabilities exist

at the individual level

at the collective level (firms, industry, society)

Collective capabilities are more than the sum of individual capabilities


why focus on infrastructure
Why focus on infrastructure?

Creation of productive capacities: economic and social return (public good)

Employment creation

Employment key for poverty reduction, social justice

Close link technology – employment (also type)

Employment key in creating human capital (capacities) and employability (capabilities) of workers

Domestic capability

Condition for dynamic catching-up process

Capabilities of: enterprises, workers, institutions


capacity building public and private sector

Public Sector

Enabling environment – govt. centralised/decentralised capacity

Procurement systems/procedures

Transparent tendering, rapid payment

Private Sector

Capacity building contractors and consultants

Skills matching for workers

Organisation building

Capacity Building – Public and Private Sector
  • Adaptation of contract systems and procedures
  • Local resource use – technology choice
  • Decent working conditions
  • Active involvement of national partners, tender boards and committees
  • Public Private Partnerships
  • Training and capacity building centres
  • Registration and classification systems
  • Framework agreements and Codes of Conduct


eiip support to constituents at three levels
EIIP support to constituents at three levels

At micro level

providing technical assistance for project development

At mezo level

providing institutional development and capacity building

At macro level

influencing investment policies and programmes with governments and international agencies

Brief on EIIP – Strategic levels


at micro level
At micro level

Providing technical assistance for

project concepts, feasibility studies and economic assessments

targeting (youth, women, regions and zones)

procedures for selection of partners and actors

technical design and contracts


setting up monitoring and evaluation

developing data


at mezo level
At mezo level

Strengthening public-private partnerships; in design, implementation and evaluation of works

Local private sector (SME, Consultants, etc.) crucial for quality implementation of works

Management capacity of communes (procedures of tendering et adjudication of bids, etc.)

Capacity for organisation and negotiation at local decentralised level, with communities and local organisations with a legal status

Strengthening institutional capacities; Trainers, Training centres, Technical Colleges, Universities and Research Centres

ILO: Networking, knowledge development and exchange (Annual Training Programmes in Turin)

Regional Seminars facilitated in Africa, next 15th in Cameroon


at macro level
At macro level

Influence and re-orient public investment programmes and develop and put in place programmes

Integrate employment considerations and use of local resources in decision making, to highlight their impact on employment and coherence with PRSP strategies

Analyse employment impact through employment impact assessment methodologies

Analyse institutional constraints and regulations

Setting up a coordination function (Finance/Planning and with Labour, Sectoral, Regional Govt.) to facilitate support approach at large scale in all sectoral investment policies


the environmental dimension
The environmental dimension

Reduced environmental impact

Softer work methods and artisan production methods

Local materials and less transport/mobilisation

Employment-intensive works for

Preventive measures against effects of climate change (adaptation)

Restoration of natural resource base (mitigation)

Increasing productive capacity of natural resource base

Sustainable maintenance approaches – asset management

Life cycle costing – investments and maintenance of assets

Reduced waste, reduced costs and improved economic returns

Long term sustainable jobs



Unpaid Care work

EIIP design can contribute to addressing these gender inequalities…

in sometimes profound and powerful ways….

Reduced mobility – tied to home

Time spent collecting fuel, fetching water

1.3 billion poor women

Lower labour market participation

Prevalence of informal work

Gender division of labour in workplace

Unequal pay


eii and gender
EII and Gender

Promoting equity in labour markets

New and improved employment/income opportunities for women and men

Equal pay for work of equal value

Access to training

Managerial positions

Better access to services

Increased participation and new perception of the role of women in society


labour standards relevant to the construction sector
Labour standards relevant to the construction sector
  • Equal opportunities and non discrimination(C100, C111)
  • Freedom of association and right to collective bargaining(C87, C98)
  • Elimination of forced labour(C29, C105)
  • Abolition of child labour(C138; C182)
  • Minimum wage and wages paid on time(C131, C95)
  • Basic provisions for safety and health(C155, C167)
  • Agreed working hours
  • Equality of treatment for casual labourers ensured
  • Social security regimes to be applied
  • Workers’ compensation for work accidents
  • HIV/AIDS and the world of work
implementing labour standards requirements
Implementing labour standards – Requirements
  • Appropriate labour legislation
  • Contract systems and procedures
    • transparent tendering, rapid payment, at central and decentralised levels
  • Training of line agency staff for new role in:
    • preparation and supervision of contracts
    • partnership with SMEs
    • partnership with Ministry of Labour
  • Discussion/negotiation procedures between social partners
implementing labour standards requirements cont
Implementing labour standards – Requirements (cont.)
  • Contractors are employers and should consider their employer obligations
  • Labour issues should be properly dealt with in contractor training programmes
  • Contracts should include relevant clauses
  • The client should monitor the effective application of such clauses
some important questions
Some important questions
  • Who is reliable for what?
  • Which standards to focus on?
  • Implementing standards has a cost: who pays? which returns?
  • Have possible incentives and sanctions been considered for making clauses operational?
  • How to monitor and report for compliance?
dialogue at local level
Dialogue at local level

Local level planning tools

enable active participation – accessibility

encourage a gender balanced development

both in what to do and how to do it

Better distribution and targeting of infrastructure investments

IRAP – Integrated Rural

Accessibility Planning














dialogue at central level
Dialogue at central level

Reliable methodologies for Employment Impact Assessments (EIA) of infrastructure programmes

Establishing basis for an informed technology choice in infrastructure sectors

Data collection on technical, economical and employment issues

Ex-ante and ex-post studies

Guide discussion and negotiation of strategies and procedures – Finance and Planning Ministries, Sectoral Departments and Municipal/Local Governments, Social Partners

Three categories of EIA:

Comparison labour- and equipment based methods based on micro-level data

Employment impact analysis of components of certain sectors

Evaluation of actual and estimation of potential impact of wide-scale application of labour-based

Modification of legislation; enterprise, procurement, labour, etc.