Download Coordination of Economic and Employment Policies

Mexico City, Apri 2006
Coordination of Economic and Employment Policies
Secretaría o dirección
Coordinación de Políticas Económicas y de Empleo
2
“Agenda for placing
employment at the centre of
government policies”
Marta Novick
Assistant Secretary of Technical Programming and
Labour Studies
Ministry of Labour, Employment and Social Security of
Argentina
Coordinación de Políticas Económicas y de Empleo
Role of labour market
The labour market is the gear box that links
the economy with the well-being of
individuals.
•This is a multi-directional relationship which is
influenced by:
– ownership of the means of production,
–pattern of economic growth
–role of the state as a collector of taxes and
“spender”.
State
Macroeconomic
Environment
Pattern of growth
Structural characteristics
Macroeconomic restrictions
Effects of general balance
between investment and
utilized capacity
Institutional
Framework
Taxes
A
Market of
means of
production
Labour
Market
Expenses
Legislation
P
O
V
E
R
T
Y
Homes
Characteristics of
individuals:
Physical and human capital
Demographic composition
Strategies
Access to markets
N
D
I
N
E
Q
U
A
L
I
T
Y
Coordinación de Políticas Económicas y de Empleo
Why coordinate?
In the model of a closed economy
Linkage existed at the social, sector and
spatial level
Employment and labour conditions were
directly linked to the economic cycle
The state set the rules and also acted as an
anti-cyclical employer
–It ended with contradictions and limited sustained
growth
Coordinación de Políticas Económicas y de Empleo
Why coordinate?
In the model of globalization, openness and
deregulation
–The market should adjust itself according to prices or
quantities without intervention
–The state should reduce the rigidity of the labour
market so that it operates well and adapts to the
dynamics of the economy
–Unemployment was interpreted as a problem of
supply and demand being out of phase with each other
–In general, inequality and poverty increased in the
region
–Today, serious limitations exist for returning to the past
Coordinación de Políticas Económicas y de Empleo
Strategy of growth
Different macroeconomic conditions
-Value of the exchange rate
–Production incentives
–Fiscal Balance and/or Surplus (Cushion that
permitted spending policies which stimulated the
domestic economy
–Active, integrated policies (in science and
technology, in industrial policies, in salaries through
promotion of collective bargaining, in social policy)
- Recovery of taxation instruments (withholding)
Coordinación de Políticas Económicas y de Empleo
Challenges of policies
Strategic decisions should be taken
regarding…
–Definition of profile of productive specialization
–Consolidation of pattern of growth
–Exchange rate
–Financial system
–Tax policies
–Functional redistribution of income
Coordinación de Políticas Económicas y de Empleo
Summing up…
Richard Freeman (2003)
“The problems of the labour market
are not resolved in the labour market”
This implies the need for a coordinated and
“rational” focus for the definition of policies,
plans and programmes
Coordinación de Políticas Económicas y de Empleo
The Tinbergen Paradigm of rational
economic policy
i. Policy goals expressed qualitatively
ii. Quantitative expression of the objectives
iii. Objective function defined for the goals and level
iv.
v.
of effectiveness
Set of available instruments for policy
management
Theoretical model of the interrelationships and
contradictions between instruments and goals
Coordinación de Políticas Económicas y de Empleo
Diagram of the Tinbergen
Paradigm
Función Objetivo de
la política
Meta 1
Meta 2
Meta n
Meta 3
Modelo teórico y conceptual
I1
I2
I3
I4
Coordinación de Políticas Económicas y de Empleo
Inter-institutional Coordination
Some necessities for coordination
Coordinación de Políticas Económicas y de Empleo
Needs for new instruments for
i. The design and ex-ante evaluation
–
–
–
–
Generation of information
Definition of systems of indicators
Design of instrument systems
Analytical models of simulations
ii. The on-going monitoring
– Models of management evaluation
– Schemes of rectification design
iii. The ex-post evaluation
– Models of impact evaluation
Coordinación de Políticas Económicas y de Empleo
New flexible and dynamic
institutional spheres in order to …
•
•
•
•
•
Define the qualitative-quantitative goals
Define the models of analysis
Design the systems of indicators
Analyze the results
Redefine actions and corrective measures
Coordinación de Políticas Económicas y de Empleo
The new administration of the Ministry of Labour,
Employment and Social Security, in line with the
overall government vision, carries out the following
measure to place quality employment at the centre of
the decisions:
Coordinación de Políticas Económicas y de Empleo
Coordination of macroeconomic, productive and
employment policies
• GANEMPLE
• Labour, Economy, Education and Foreign Ministry
• Inter-ministry team of monitoring of income distribution
• Economy, Labour, Central Bank, Foreign Ministry
• Productive Cabinet
– Ministers of Economy, Planning, Education and Labour
– Competitiveness Forums
– Secretariat of Labour, Secretariat of Industry, Secretary of
Trade, Secretariat of Small and Medium-sized Enterprises
Coordinación de Políticas Económicas y de Empleo
Coordination of macroeconomic, productive and
employment policies
•Local Productive Forums
–National Government with the Provincial and Municipal
Governments
–Dialogue with the local representatives of production
–Integration of the team of assignment of credit promotion
•Secretary of Small and Medíum-Sized Enterprises
with the Ministry of Labour and Bank of the Nation
Coordinación de Políticas Económicas y de Empleo
Bilateral Actions of Labour Ministry
with…
•Ministry of Education
–Educational level of the beneficiaries of Employment Plans
–Coordination in Professional Training
–Foreign Ministry
–Technical assistance in trade agreements
–Support in International Forums
•Secretary of Science and Technology
•Actions of productive innovation, development and employment
•Contest for innovators
–Strategy for inclusion of scientific-technical dispersion
•Social Development
–Joint actions of programmes of social inclusion
–Development of single window systems for social programmes
•Federal Agency of Public Income (AFIP)
–Integration of labour and tax inspection
–Simplification of registry
Coordinación de Políticas Económicas y de Empleo
But basically …
The conviction that there is no better social or
economic policy than full employment
Nor that there is no better employment than decent
employment
... the political vocation to place
employment at the centre of
government decisions.