Transcript Rural Employment Africa - International Training Centre of the ILO

© International Training Centre of the ILO 2007
Decent jobs for rural Youth through
sustainable enterprise development
Joel Alcocer
February 2014
www.itcilo.org
International Training Centre of the ILO
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Presentation road map

© International Training Centre of the ILO 2007
What is rural youth entrepreneurship?
 Why rural youth entrepreneurship development
matters?
 How ILO does it?
 Case Study
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What is rural?
ILC 2008: Promotion of rural employment for poverty reduction, p12
And what is Youth?
© International Training Centre of the ILO 2007
1. What it means
2. Why it matters
3. How we do it
4. Case study
1. What it means
2. Why it matters
3. How we do it
4. Case study
What is the rural economy?
The semantics of what constitutes a rural economy are complex:
The phenomenon can be observed but escapes easy qualification
since it refers to physical activities as much as mind sets of
people, and the geographical space where the latter reside.
A space…
Not the city!
‘rural folk’
…predominantly
pursue a certain type
of economic activity?
Agriculture?
© International Training Centre of the ILO 2007
…where people with
a distinct outlook of
the world…
Is this the
rural
economy
space?
1. What it means
2. Why it matters
3. How we do it
4. Case study
What is the meaning of rural
economic development?
In fact, the urban economy and the rural economy seem flipsides of the same
coin – people seeking to generate benefit from the transaction of goods and
services. Rural economic development, then, can be said to take place when a
growing number of people manage to generate at least satisfactory benefit from
economic interaction
Material
wealth
Satisfaction of
basic needs
Pursuit of
happiness
The people sphere of rural economic development
It is hypothesized that these value parameter are generic for urban and rural folk
but that the weight associated with each factor (= the benchmark for satisfactory
performance) will differ.
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Some categories to track performance
1. What it means
2. Why it matters
3. How we do it
4. Case study
What is a sustainable business?
Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. In a sustainable
business, all people are empowered to pursue their self-interest within the limits set by
the rights of other people –including future generations - to do likewise.
People sphere
 Material wealth
 Satisfaction of basic needs
 Pursuit of happiness
 A source of supplies
 A repository for waste
 Settlement space
The aim must be to seek critical balance between these goals, mindful of trade offs
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Environment sphere
1. What it means
2. Why it matters
3. How we do it
4. Case study
Youth employment creation is a
global priority
© International Training Centre of the ILO 2007
Population size and unemployment rates in 10 SSA countries 2012
Source: Global Entrepreneurship Monitor 2012 South Africa
Youth employment promotion
will remain a concern
Source: Adopted from World Bank Rural Structures Programme (2010)
© International Training Centre of the ILO 2007
1. What it means
2. Why it matters
3. How we do it
4. Case study
1. What it means
2. Why it matters
3. How we do it
4. Case study
The global Youth employment
promotion agenda has a rural face
Urbanization Ratio by World Regions (1960-2050, in %)
Source: United Nations, World Urbanization Prospects, 2007
© International Training Centre of the ILO 2007
Rural Population by World Regions (1960-2050, in millions)
1. What it means
2. Why it matters
3. How we do it
4. Case study
Many rural households struggle
to earn a living
Remember:
This is
income
poverty
only!
Source: World Bank 2008: World Development Report: Agriculture for Development
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Rural poverty rates and number of rural poor ($1.08-a-day poverty line)
Employment challenges for Youth

Work temporary, insecure, informal contracts

Lack access to and control productive resources

No collateral – financial services

Education and skills – not matching demand

No employment history

Rural women disregarded in labour rights, security benefits

Do not want to work in agriculture

Want to migrate to urban areas
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1. What it means
2. Why it matters
3. How we do it
4. Case study
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1. What it means
2. Why it matters
3. How we do it
4. Case study
Think Systems
The point of departure for the development of sustainable businesses in
the rural economy is the market system (the eco-system for doing
business), not the individual enterprise.
The market
system of
reference
Note: These systems
are scalable!
© International Training Centre of the ILO 2007
Other market
systems
1. What it means
2. Why it matters
3. How we do it
4. Case study
A people-centred framework
The market system is thought to be constituted by people, acting through
organizations that represent their aligned interests. Organizations are
grouped along their core function across three system levels
= Macro-level organizations
= Micro-level organizations
The meta-level where the mind sets of
the people making up the social
system (their values, norms,
perceptions and communication
codes) are shaped
= Meta-level organizations
The web of interaction between these organizations is complex, with
circular relationships that cut across system levels. Some organizations
are more connected than others – they constitute network hubs.
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The macro-level where the
‘rules of doing business’
(policies, laws and
regulations) for system
stakeholders are codified
and enforced
The micro-level where people
physically transact goods and
services for money
1. What it means
2. Why it matters
3. How we do it
4. Case study
Mind the environment context
Environmental context relates to non-human actors that are
shaped by, and in turn shape people interaction
Environment sphere
Other market systems
© International Training Centre of the ILO 2007
Our market system
In summary – what is
different?
Conventional approach to
private sector development
Sustainability equals profitability
Product centered
People are cost drivers
Assumes linear and mechanistic cause effect
relationships between businesses
Change is imposed top-down
Pipeline view of transactions
(input-throughput- output)
Modular view (focus on a single dot)
ILO approach to private
sector development
Sustainability equals critical balance between
economic, social and environmental goals
People centered
People are the constituents of the system, their
mind sets shape the reality of economic
interaction
Assumes circular cause effect relationships
among people/stakeholders representing them
Change is facilitated by way of
communication between people
Transactions are treated as closed loops
(“what goes around comes around”)
Systemic view (“connect the dots”)
© International Training Centre of the ILO 2007
1. What it means
2. Why it matters
3. How we do it
4. Case study
1. What it means
2. Why it matters
3. How we do it
4. Case study
Background of the led joint UN programme to promote
decent jobs for Youth and improve food security
through the development of sustainable rural
enterprises in Zambia
 The initiative contributes to the implementation of the UNDAF, the
Comprehensive Accelerated Agricultural Development Programme
and the Zambia Decent Work Country Programme
 Duration : 4 years (including a one year inception phase 2013-14)
 Budget: 6,9 million USD (inception phase budget 1,3 million USD)
 Local partners:the Ministry of Agriculture and the Ministry of Youth
and Sports, the Zambian Congress of Trade Unions and the
Zambian Employers Federation and their respective sector
affiliates, the Zambian Chamber of Small and Medium-Scale
Enterprises and the Zambian Farmers Union, selected local BDS
providers
 Ultimate beneficiaries: Aspiring, emerging and established young
rural entrepreneurs
© International Training Centre of the ILO 2007
 UN consortium: ILO and FAO
1. What it means
2. Why it matters
3. How we do it
4. Case study
Focus is on the market system underpinning the
production of soybeans / soybeans based goods
Soybean production in Zambia took off in the 1970’s, reached a peak in the
late 1990s and then nearly collapsed in 2001; since 2006, annual output has
consolidated at around 50,000 tons (0,02% of global production ).
Soybeans Monthly
Price - US Dollars per
Metric Ton
Source: http://www.indexmundi.com/commodities/?commodity=soybeans&months=180
, prices refer to Chicago Soybean futures contracts
© International Training Centre of the ILO 2007
The production swings are explained by a combination of climatic factors,
domestic demand patterns (the commodity is mostly traded locally), lack of
product differentiation and lack of access to export markets.
1. What it means
2. Why it matters
3. How we do it
4. Case study
Snapshot of soybean-based products
 Baked goods
 Breakfast cereals
 Pasta (fortified with soy protein)
 Beverages and toppings (soy isolates are used in coffee
whiteners, liquid whipped toppings and pre-whipped
toppings)
 As additive to processed meat, poultry and fish products
 Dairy type analog products
 Milk blends
 Stockfeed from soybean cake
 Bio-diesel produced from soybean oil.
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 Tofu
The value creation process at the core of the
market system
People consuming soy
beans and soybeanbased products
People
growing
soybeans
A commercial
farmer
A connector linking
consumer and
growers, e.g. through
fair trade labels
People
trading
soybeans
People retailing
soybean based
products
People
processing
soybeans
People wholesaling
soybean-based
products
A processor hub (e.g. an
association representing a
group of processors)
Distinct from the conventional product-centered linear view of the value
creation process
1
2
3
4
© International Training Centre of the ILO 2007
1. What it means
2. Why it matters
3. How we do it
4. Case study
1. What it means
2. Why it matters
3. How we do it
4. Case study
… and the eco-system supporting it
Local mass media
META-LEVEL:
People influencing
other people’s views
about soybeans
Ministry of Agriculture
MACRO-LEVEL:
People facilitating the
policies, laws and
regulations governing
business in the sector
At each system level, actors speaking on behalf of the environment are also given a voice
© International Training Centre of the ILO 2007
MICRO-LEVEL:
1. What it means
2. Why it matters
3. How we do it
4. Case study
The steps of the market systems
development effort
1. Getting started
Appraisal of existing information to
pre-identify contentious issues
7 Monitoring and evaluation to verify
outputs and outcomes
6. Follow-up services to implement
(revised) roadmaps
successive
loops
2. Facilitation of social dialogue
to secure (continued) stakeholder
buy-in
5 Development of roadmaps to
implement these interventions
4. Joint validation of assessment findings
and identification of priority market
system upgrading interventions
=
loop 1 only
=
all consecutive loops
3. Development of a detailed system
map, with baseline of pressure points
© International Training Centre of the ILO 2007
LOOP I
1. What it means
2. Why it matters
3. How we do it
4. Case study
Expected programme outcomes
GENDER
HIV/AIDS
INFORMAL ECONOMY
META-LEVEL
Outcome 1:
MACRO-LEVEL
Outcome 2:
MICRO-LEVEL
Outcomes 3:
Increased public
appreciation of
soybeans as a food
crop of strategic
relevance for national
food security, and the
youth employment
creation potential along
the value chain of this
agricultural commodity
A more conducive value
chain-specific policy,
legal and regulatory
framework for young
entrepreneurs to do
sustainable business
along the value creation
process
Strengthened supply
with, and increased
demand for, value
chain specific MSME
support services
geared towards young
entrepreneurs
Outcome 4:
Synergies and scale effects through better coordination among value
chain stakeholders and their development partners
© International Training Centre of the ILO 2007
Overall goal:
Decent jobs for Youth and improved food security
through the development of rural MSME
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Thanks
www.itcilo.org
International Training Centre of the ILO
© International Training Centre of the ILO 2007
Joel Alcocer
Senior Programme Officer - ITCILO
[email protected]
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