Enabling Environment for Sustainable Enterprises:
The ILO approach
Outline
Rationale
Methodology
Strengths
Results
Rationale
HowGrow
ILO helps
How
Reform
ILO helps
The
Government
International
engages
Labour
in
Office
consultations
assesseswith
and,the
if
necessary,
other Social builds
Partnersthe
to
capacity
weigh different
of
reform
Social
Partners
responses.to engage in
assessment
and
Measures that contribute
advocacywork.
to a more conducive
enabling environment for
sustainable enterprises
are adopted.
Reforms reduce business costs, reduce risks and increase
The International Labourmarkets.
Office develops the capacity of
competitivepressureson
SocialPartnersto:
Enterprises
are able to change their behaviours in ways

conductfurtherresearch,
that lead to: i) increased levels of investments and
 draftpolicypapers,and
innovation,
ii) growth of the economy, iii) creation of more

carryout
an advocacycampaign.
andbetterjobs,andeventuallyiv)reducedpoverty.
Advocate
Social Partners develop informed policy positions and
structuredadvocacyefforts.
They aim at influencing Government to address the
prioritiesidentifiedby the assessmentreport.
HowAssess
ILO helps
Social
Partners Labour
assess
The International
the
prevailing economic,
Office
supports
political,
and
Governmentsocial
by
environmental
organising a conditions
national
under
enterprises
policy which
dialogue
to
operate.
facilitateconsultations.
A
main:
It reportoutlinesthe
also helps Government
draft
legal, and implement
reforms.
institutional,and
 regulatoryconstraints.
Social Partners agree on
prioritiesfor reform.
Methodology
STEP 1:
Assessment of the Business Environment
secondary data
enterprise survey
focus groups
Methodology: ASSESSMENT
secondary data
Economic
Elements
Political
Elements
Social
Elements
Environmental
Elements
 sound and stable macroeconomic policy and good
management of the economy
 trade and sustainable economic integration
 enabling legal and regulatory environment
 rule
of and
law and
secure
property rights
peace
political
stability
 fair
competition
good
governance
 access
to financial services
social dialogue
 physical
infrastructure
respect for
universal human rights and international
 information
and culture
communication technologies
labour
standards
entrepreneurial
 education, training and lifelong learning
 social justice and social inclusion
 adequate social protection
 responsible stewardship of the environment
Methodology: ASSESSMENT
secondary data
indicators
Fair
Competition
Sound
and Stable Peace
Macroeconomic
Policy
and
Entrepreneurial
Culture
and political
stability
Responsible Stewardship of the Environment
New
Density
GoodBusiness
Management
of
the
Economy
New Business
Density
Political Stability and Absence
of Violence/Terrorism
Environmental Sustainability Index (ESI)
Intensity
of Local
GDP Growth
RateCompetition
(%)
Total
Ecological
Footprint (EPI) (global hectares per
Education,
Training
and
Lifelong
Learning
Effectiveness
Anti-monopoly
Labour Forceof
Participation
RatePolicies
Good Governance
capita)
of GDP)
Extent
ofAccount
Market Dominance
Current
Balance
(%Corruption
of GDP) Public Spending on Education(%
Control of
Environmental
Performance Index (EPI)
Education
Index
Port
Infrastructure
Gross
Capital Formation
(% ofPerception
GDP)
Corruption
Index
Emissions
Firms Offering FormalCO2
Training
(% of firms)
Information
and Communication
Technologies
Gross Domestic
Savings
(% of
GDP)
Voice and
Accountability
Forest Area (% of land area)
Extent of Staff Training
ICT
Development
Index
(IDI) Effectiveness
Trade
and Sustainable
Economic
Integration
Government
Literacy
Rate,
youth
total
Urban Pollution (micrograms per cubic metre)
Network
Index Rights Index
Trade (%Readiness
of GDP) Political
Internet
broadband
subscribers
EnablingUsers
Tradeand
Index
(ETI)
Civil
Liberties
Index Social Justice and Social Inclusion
Fixed
Line
and(%
Cellular
Subscriptions GINI Coefficient
FDI Net
Inflow
of GDP)
Access
Financial
Services
Tradingto
Across
Borders
Labour Force Participation Rate
Social
Dialogue
Credit
Private Sector
(%
of
GDP)
Exportto
Propensity
Index
Gender-related
Development Index (GDI)
Cooperation in Labour-Employer
Relations
Credit
Information
Enabling
Legal andIndex
Regulatory Environment
Gender Empowerment Measure (GEM)
Interest
Rate
Spread
Regulatory
Quality
Index
GenderRights
Inequality
Respect for Universal Human
and Index (GII)
Physical
Infrastructure
Ease of Doing
Business
Rank
Female
Economic
Activity
International Labour Standards
Electric
Consumption
(kWh
per
capita)
StartingPower
a Business
Rank
Ratification of Human Rights
Conventions
Social Protection
Roads,
(%Secure
ofRatification
total roads)
Rule ofpaved
Law and
Property
Rights Adequate
of Fundamental
ILO
Conventions(% of GDP)
Old
Age
Expenditure
Improved
Water
Source
Rule of Law
Index
Political Rights Index Public Expenditure on Health (% of GDP)
Quality
ofRights
Overall Infrastructure
Property
Civil LibertiesIndex
Index Coverage by Health Care (% of total health care)
Quality
of Port
Infrastructure
Intellectual
Property
Protection
Methodology: ASSESSMENT
secondary data
enterprise survey
focus groups
 Identifying
 Identifying
the areasthe
that
areas
require
thatfurther
require further
researchresearch
 Deciding
 Deriving
on the kind
a statistically
of participants
representative
(representatives
sample of all Social Partners or
only some)
 Drafting the questionnaire
 Contacting
 Choosing
and obtaining
and contracting
Social a research
Partners’partner
acceptance of participation
 Arranging
 Training
an appropriate
interviewers
venue
 Training
 facilitators
Surveying entrepreneurs and workers
 Interviewing social partners
Methodology
STEP 2:
Advocacy in Action
consensus
reforms
monitoring framework
Methodology: ADVOCACY
consensus
reforms
One or more workshops with Social Partners are organised to:
 validate the priorities identified by the assessment report,
 agree on policy positions,
 define a reform action plan.
How?
 Inviting Social Partners
 Arrange an appropriate venue
 Preparing facilitation (the facilitator needs to be expert at
policy making)
 Holding the workshop
Methodology: ADVOCACY
consensus



reforms
monitoring framework
When reforms are designed, they are always based on
imperfect information and understanding.
To verify that reforms generate the expected results, a
monitoring and result measurement framework needs to
be set up.
The standard developed by the Donor Committee for
Enterprise Development (DCED) is adopted.
Methodology: ADVOCACY
consensus
reforms
monitoring framework
The DCED standard helps practitioners to:
 clearly articulate the expected results chain (i.e. the logic of the work),
 to systematically set and monitor indicators which generate
approximate numbers for impact that have credibility.
Indicators are classified depending on the fact that they measure:
 end impacts on the economy, on the poor, or on the firms,
 intermediate outcomes of overall reforms,
 results of reforms within specific domains (e.g. business
registration and licensing).
Example:
End impact on firms
Indicators
Means of
verification
Increasein the number
of firms established
Number of firms
registering
Number of registered
firms
Strengths
METHODOLOGY: EESE combines a variety of data collection and
diagnostic techniques, including a literature review, enterprise surveys,
focus groups, statistical analysis of primary and secondary data, and
consultations with expert s. The perceptions survey includes both
employers and workers as respondents.
DIALOGUE: The
formulation of policy
recommendations is
grounded on consensus
between workers,
employers and
government.
SCOPE: The assessment based on 17
criteria goes far beyond the scope of
other assessments, and attempts to
provide an accurate and
comprehensive picture of the issues
affecting the performance and
sustainability of enterprises.
Results


AFRICA, Malawi:
Social Partners involved
Achievements
Priorities identified
 Employers’ Consultative
Association of Malawi (ECAM)
 Malawi Congress of Trade
Unions (MCTU)
 Ministry of Industry and Trade
an action plan has been developed
and is being implemented
 entrepreneurial culture
 legal framework, specifically for
MSMEs
Social Partners involved
Achievements
Priorities identified
Montenegrin Employers
Federation (MEF)
a Business Advocacy Agenda
and Strategy (“The Five Business
Killers in Montenegro”) has been
developed
 inadequate regulatory
framework
 access to finance
 informal economy
 corruption
 skills mismatch on the labour
market
EUROPE, Montenegro:
Results


LATIN AMERICA, Honduras:
Social Partners involved
Achievements
National Business Council of
Honduras (COHEP)
a reform programme and action
plan presented on October 2nd,
2013 at the National Enterprise
Convention (ENAE)
Priorities identified
ASIA, Cambodia:
Social Partners involved
Achievements
Priorities identified
Cambodian Federation of
Employers and Business
Associations (CAMFEBA)
four policy papers have been
drafted
 corruption
 social security
 social dialogue
Thank you!