ADB-ILO-IPRCC Workshop, Jakarta, 13 September 2011 Social Dimensions of Inclusive Growth in Asian Middle Income Countries Opening remarks

by Ms Sachiko Yamamoto ILO Regional Director for the Asia-Pacific Greetings Dear Honourable Vice-Minister Tuwo of the Indonesia National Development Planning Agency (BAPPENAS), Mr Nugent, ADB Deputy Director General for Southeast Asia, Colleagues from IPRCC, Representatives from Employers and Workers organizations, Distinguished guests, Ladies and gentlemen,

Introduction On behalf of the ILO, I would like to thank the Asian Development Bank, the Government of Indonesia and the International Poverty and Reduction Centre in China for their warm reception and tremendous efforts in organizing this workshop. It is an honour for the ILO to be part of and contribute to this important forum. We are also delighted that some of our ILO constituents the representatives from workers and employers organizations are here to share their insights and experiences. In 2002, the ILO and the ADB signed a Memorandum of Understanding to strengthen our cooperation. I am very pleased that this workshop is
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another concrete example of collaboration towards our common goals of achieving social justice and sustainable development for people in the Asia region. Both our organizations agree that regional cooperation in Asia is central to its future development and shared prosperity. MICs and inclusive labour markets Asias remarkable economic performance over the past decades has lifted millions of people out of poverty. But the regions rapid growth has been accompanied by rising inequality and persistent vulnerability. And in some middle-income countries poverty still remains widespread. These developments threaten social cohesion and potentially undermine long-term development prospects. Asia cannot continue on its successful course without creating more and better jobs and without addressing the social and environmental factors underpinning poverty, vulnerability and inequality. The ADB rightly pointed out in its recent Asia 2050 publication, that Asias middleincome countries risk being stuck in a trap if their policies do not address labour and social deficits. To this end, they must create conditions for job-rich growth, invest in social protection, and strengthen labour market governance. Policies that promote decent work and inclusive labour markets can help overcome the middle income trap. Let me highlight some critical policy areas. First, Asia must strengthen its capacity to create sufficient jobs to meet its growing labour force. But also, it must raise productivity and job quality, particularly for the 1.1 billion Asian workers who are engaged in vulnerable employment that typically involves poor quality, low-paid jobs with poor working conditions and insecure work arrangements. Meeting this challenge would significantly shape the quality of life and ultimately the quality of our Asian societies.

In this regard, I am very pleased that the recent ADB publication Towards Higher Quality Employment in Asia examines this issue in detail and raises a number of important policy considerations. Second, social protection must be a priority investment. Many countries are in the process of gradually building a social protection floor within a context of fiscal sustainability. We need to support these efforts to ensure a basic level of health and education and income security for all. Third, improving governance in the labour market is critical. Ensuring respect for labour standards, sound industrial relations and fair wage setting mechanisms can help ensure the most vulnerable members of society benefit from economic growth. Fourth, any effort towards greater social inclusion in Asias middle income countries must consider the widespread gender inequalities. The recent joint publication by the ADB and the ILO Women in the labour markets in Asia highlights these gender gaps in pay and economic participation. It also promotes policies to unlock the potential of women in the labour market to increase productivity and achieve equitable and inclusive growth. Finally, growth in Asia-Pacific has come with great risks for the environment. Strategies for creating green jobs and encouraging green growth can help governments address the twin challenges of job creation and climate change. The move to a low-carbon, sustainable society must be equitable, just and inclusive. Conclusion Ladies and gentlemen, the ILOs Decent Work Agenda of the ILO was adopted in 1999 by governments, employers and workers worldwide. Decent work is a goal, meaning not just whether women and man have any job, but productive employment: an adequate income to keep them and their families out of poverty, security in times of adversity, good
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working conditions and a voice in decisions that affect their lives and livelihoods. In June of this year at the annual International Labour Conference, ILO constituents strongly supported the call for a new era of social justice, based on growth with equity, voice and sustainable development underpinned by decent work. Critical to this effort is the principle of efficient growth. In other words, growth must meet peoples need and be sustainable in its combined economic, social and environment dimensions. I believe that todays workshop on Social Dimensions of Inclusive Growth will discuss and highlight the role of productive employment in inclusive and sustainable development and the policies we need to put in place. I wish you very productive and rich discussions and look forward to hearing your conclusions and recommendations at the end of todays proceedings. Thank you.