secretaría o dirección coordination of economic and employment policies mexico city, apri 2006
TRANSCRIPT
Secretaría o dirección
Coordination of Economic and Employment Policies
Mex
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“Agenda for placing employment at the centre of
government policies”
Marta NovickAssistant Secretary of Technical Programming and
Labour StudiesMinistry of Labour, Employment and Social Security of
Argentina
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oRole 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
InstitutionalFramework
Taxes
Expenses
Legislation
MacroeconomicEnvironment
Pattern of growth
Market of means of
production
Homes
Structural characteristics Macroeconomic restrictions Effects of general balance between investment and utilized capacity
LabourMarket
Characteristics of individuals:
Physical and human capital Demographic composition StrategiesAccess to markets
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oWhy 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
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oWhy 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
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oStrategy 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)
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oChallenges 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
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oSumming 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
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oThe Tinbergen Paradigm of rational economic policy
i. Policy goals expressed qualitativelyii. Quantitative expression of the objectivesiii. Objective function defined for the goals and level
of effectivenessiv. Set of available instruments for policy
managementv. Theoretical model of the interrelationships and
contradictions between instruments and goals
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oDiagram of the Tinbergen Paradigm
Función Objetivo dela política
Meta 1 Meta nMeta 3Meta 2
I1 I2
Modelo teórico y conceptual
I3 I4
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oInter-institutional Coordination
Some necessities for coordination
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oNeeds 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
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oNew 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
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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:
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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
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oCoordination 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
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oBilateral 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
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oBut 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.