Assessing the environment conducive to the promotion of sustainable enterprises “17 conditions” Jakarta, Indonesia 3-4 May Graeme Buckley ILO, Geneva
Background I I . INTRODUCTION 1. Background • Concept of sustainable enterprises 2. Conducive environment for sustainable enteprises • At the enterprise level, sustainability 3. Why clustering? 4. Why it needs to be measured? means: 5. Shortcomings 6. Structure of following slides • operating a business so as to grow and earn II. ECONOMIC ELEMENTS 1 Sound and stable macro profit, economic policy and good • recognition of the economic and social management of the economy 2 Trade and sustainable economic aspirations of people inside and outside the integration organization 3 Enabling legal and regulatory • Long-term viability implies that the framework 4 Rule of law and secure property management of enterprises should be rights 5 Fair competition based on the three pillars of 6 Information and communication sustainability: economic, social and technologies 7 Access to financial services environmental 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS 2
Conducive environment for sustainable enterprises 17 conditions ECONOMIC ELEMENTS SOCIAL ELEMENTS Sound and stable macro economic Entrepreneurial culture policy and good management of the Education, training and lifelong learning economy Social justice and social inclusion Trade and sustainable economic integration Adequate social protection Enabling legal and regulatory POLITICAL ELEMENTS environment Peace and political stability Rule of law and secure property rights Good Governance Fair competition Social dialogue Information and communications Respect for universal human rights and technology international labour standards Access to financial services ENVIRONMENTAL ELEMENTS Physical infrastructure Responsible stewardship of the environment 3
Why clustering? I . INTRODUCTION 1. Background Why is it important to cluster? 2. Conducive environment for • Economic elements sustainable enteprises 3. Why clustering? • Particularly important to the business 4. Why it needs to be measured? 5. Shortcomings environment 6. Structure of following slides • Social elements II. ECONOMIC ELEMENTS 1 Sound and stable macro • Sustainable enterprises need sustainable economic policy and good management of the economy societies 2 Trade and sustainable economic • Political elements integration 3 Enabling legal and regulatory • Sustainable enterprises need strong framework 4 Rule of law and secure property institutions rights • Environmental elements 5 Fair competition 6 Information and communication • Natural resources are important for the technologies 7 Access to financial services functioning of sustainable enterprises 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS 4
Why it needs to be measured? I . INTRODUCTION 1. Background 2. Conducive environment for • If you can’t measure it, you can’t sustainable enteprises 3. Why clustering? 4. Why it needs to be manage it! measured? • Data sets can provide us with insights 5. Shortcomings 6. Structure of following slides of what needs to be addressed with II. ECONOMIC ELEMENTS 1 Sound and stable macro respect to sustainable enterprises economic policy and good • Clearer understanding of opportunities management of the economy 2 Trade and sustainable economic and challenges of promoting integration 3 Enabling legal and regulatory sustainable enterprises framework • Analysis helps obtain an overall picture 4 Rule of law and secure property rights 5 Fair competition in a country – opens a door for future 6 Information and communication reforms technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS 5
Shortcomings when using secondary data sources I Only secondary data sources are used to I . INTRODUCTION 1. Background assess the 17 conditions 2. Conducive environment for sustainable enteprises 3. Why clustering? 4. Why it needs to be measured? Shortcomings: 5. Shortcomings • Availability of appropriate indicators to 6. Structure of following slides II. ECONOMIC ELEMENTS 1 Sound and stable macro measure all dimensions economic policy and good • Different definitions (e.g. corruption, management of the economy 2 Trade and sustainable economic competition) integration 3 Enabling legal and regulatory • Reliability of data (data collection: framework 4 Rule of law and secure property response rate, sample size, rights questionnaire design etc.) 5 Fair competition 6 Information and communication • Data gaps (lack of longitudinal data, technologies 7 Access to financial services country coverage) 8 Physical infrastructure • Controversial issues (e.g. employing III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS workers category in Ease of Doing VI CONCLUSIONS Business rank) 6
Shortcomings when using secondary data sources II I . INTRODUCTION • Access to statistics (CD-ROM, online 1. Background 2. Conducive environment for sustainable enteprises sources, reports etc.) 3. Why clustering? • Difficult to update data 4. Why it needs to be measured? 5. Shortcomings • Comparability of indicators 6. Structure of following slides II. ECONOMIC ELEMENTS 1 Sound and stable macro economic policy and good management of the economy Recommendations: 2 Trade and sustainable economic • Missing data and indicators should be integration 3 Enabling legal and regulatory complemented by supplementary framework 4 Rule of law and secure property information (including surveys) rights • National surveys help fill data gaps and 5 Fair competition 6 Information and communication increase the quality of assessment technologies 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS 7
Sound and stable macro economic policy and good management of the economy (I) I . INTRODUCTION II. ECONOMIC ELEMENTS Key indicators 1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic GDP integration Inflation 3 Enabling legal and regulatory growth rate (%) Labour force framework (%) participation 4 Rule of law and secure property rights rate 5 Fair competition 6 Information and communication technologies 7 Access to financial services Other useful indicators 8 Physical infrastructure III SOCIAL ELEMENTS Current IV POLITICAL ELEMENTS Gross V ENVIRONMENTAL ELEMENTS account capital VI CONCLUSIONS balance formation Gross (% GDP) (% GDP) domestic savings Government (% GDP) Finance (% of GDP) 8
Sound and stable macro economic policy and good management of the economy (II) I . INTRODUCTION II. ECONOMIC ELEMENTS Related issues: 1 Sound and stable macro economic policy and good • There is no panacea for a good management of the economy 2 Trade and sustainable economic management of the economy integration • Main targets of macroeconomic policy: 3 Enabling legal and regulatory framework 4 Rule of law and secure property inflation, growth, unemployment and rights balance of payments 5 Fair competition 6 Information and communication technologies 7 Access to financial services Challenges: 8 Physical infrastructure III SOCIAL ELEMENTS • Selection of right indicators IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS 9
Sound and stable macro economic policy and good management of the economy (III) I . INTRODUCTION II. ECONOMIC ELEMENTS Main international sources: 1 Sound and stable macro economic policy and good The main international sources for management of the economy 2 Trade and sustainable economic macroeconomic data: integration 3 Enabling legal and regulatory • International Monetary Fund (financial framework 4 Rule of law and secure property statistics) rights • World Bank (GDP, debt and financial flows 5 Fair competition 6 Information and communication indicators) technologies • ILO (employment trends) 7 Access to financial services 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS 10
Physical infrastructure (I) I . INTRODUCTION II. ECONOMIC ELEMENTS Key indicators 1 Sound and stable macro economic policy and good management of the economy 2 Trade and sustainable economic Electric integration power Roads 3 Enabling legal and regulatory consumption paved (% of framework 4 Rule of law and secure property (kWh per total roads) rights capita) 5 Fair competition 6 Information and communication technologies 7 Access to financial services Other useful indicators 8 Physical infrastructure III SOCIAL ELEMENTS IV POLITICAL ELEMENTS Improved Quality of V ENVIRONMENTAL ELEMENTS VI CONCLUSIONS water source overall (% of infrastructure Quality of population index port with access infrastructure 11
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