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Value Chain Development Green Jobs tools and guides for local economic development and small business promotion 23 June 2010 Hotel Claridges, New Delhi Hideki Kagohashi Enterprise Development Specialist ILO Decent Work Technical Support Team for South Asia Value Chain Development Green Jobs in the Inclusive Growth How our efforts to promote Green Jobs (quantitatively & qualitatively) can contribute to the inclusive growth scenario in India?

Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

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Page 1: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Green Jobs tools and guidesfor local economic development

and small business promotion

23 June 2010

Hotel Claridges, New Delhi

Hideki Kagohashi

Enterprise Development Specialist

ILO Decent Work Technical Support Team for South Asia

Value Chain Development

Green Jobs in the Inclusive Growth

How our efforts to promote Green Jobs

(quantitatively & qualitatively)

can contribute to the inclusive growth

scenario in India?

Page 2: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

National Comission for Enterprises in the

Unorganized Sector found that...1. The Indian economy is dominated by informal employment

in the informal sector (around 85 % as of 2004-05).

2. The net growth of employment (1999-00 to 2004-05) has

been largely of an informal kind.

3. The growth rate of wages of almost all categories of

workers has declined during 1993-94 to 2004-05.

4. A large proportion of the Indian workforce and population

(more than 3/4) continues to be ‘poor and vulnerable’ with

very low rates of improvement in living standards.

5. The growth that occurred has been unequal, concentrating

its benefits among the top segments of the population.

Value Chain Development

Green Jobs in the Local Economy - a scenario

Access to (clean) energy for the poor

Greener development of sectors with vast informality

(incl. green & conventional jobs )

Grid extension

HH level solutions

Agriculture

MSMEs

Waste mgt & Recycling

Building & Construction

- repair & maintenance jobs- some manufacturing jobs

Area-wide collective options

Inducedimpact

Page 3: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Informal economy & green jobs

Formaleconomy

Informaleconomy

GreenJobs

Green Decent

Induced impact

Induced impact

formalization

Value Chain Development

What ILO can do (1)

• Given policy coherence is

achieved…

• ILO can support:

– gauging the labour market

impact of selected energy

projects and resulting skills

gap

– Value-chain and business

model dev

• Partnership required

– e.g., regulators, technology

providers, training providers,

financiers, market facilitators

Access to (clean) energy for the poor

Grid extension

HH level solutions

- repair & maintenance jobs- some manufacturing jobs

Area-wide collective options

Page 4: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Introduction of green technologies

Technology supplier

firms grow, creating

more GJ

Parts supplier firms

grow, creating more

GJ

Demand for

maintenance services

grow, creating more

GJ

Cost saving in terms

of energy & waste

reduction

Firms become more

competitive

Firms grow, creating

more GJ

Brown technology

supplier firms

decline, reducing

brown jobs

Parts supplier firms

decline, reducing

brown jobs

Demand for

maintenance services

decline, reducing

brown jobs

Alternative use of the

waste may eliminate

jobs previously dealt

with sate

Jobs created or lost?

gain gain loss

loss

Value Chain Development

Introduction of green technologies

Technology supplier

firms grow, creating

more GJ

Parts supplier firms

grow, creating more

GJ

Demand for

maintenance services

grow, creating more

GJ

Cost saving in terms

of energy & waste

reduction

Firms become more

competitive

Firms grow, creating

more GJ

Brown technology

supplier firms

decline, reducing

brown jobs

Conversion of brown

jobs into GJ in the

same firm/VC

Alternative livelihood

thru

entrepreneurship &

ALMP

Parts supplier firms

decline, reducing

brown jobs

Demand for

maintenance services

decline, reducing

brown jobs

Alternative use of the

waste may eliminate

jobs previously dealt

with sate

Absorption of the

labour within the

expanding segment

of VC

Alternative livelihood

thru

entrepreneurship &

ALMP

Jobs created or lost? How about quality?

gain gain loss

loss

Decent WorkChallenge

Integrated approach

to green, decent and

profitable businesses

Compensatingthe loss

Keeping jobs

Page 5: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Opportunities & risks of 4 pillars of

local economic development

Dependence

Easy access by competitors

Migration &brain drain

Subsidizingnon-competitive

firms

Value Chain Development

Materialize the impact of access to energy

into local economic develop ...

Access to (clean) energy for the poor

Greener development of sectors with vast informality

is NOT AUTOMATIC

•Calls for an integrated approach•Need to work w/ various stakeholdersincl. convergence w/ gov prog/schemes

Page 6: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

What ILO can do (2)

• Given policy coherence is

achieved…

• ILO programmes & tools

available:

– Local competitiveness &

value chain tools

– Entrepreneurship, skills and

MFI training

– Workplace enhancement &

productivity prog.

– Support to expand social

protection coverage

– Tools to address needs of

vulnerable groups

Greener development of sectors with vast informality

Agriculture

MSMEs

Waste mgt & Recycling

Building & Construction

Value Chain Development

New ILO tools to be introduced

• Tools to assess the size of Green Jobs potential

– Sectoral (ILO-GHK guide)

– project level (under development)

• Tools to support Local Economic Development

1. Value Chain Development for Green Jobs (policymakers’

guide/reader + practitioners’ guide)

2. Sustaining Competitive & Responsible Enterprises – SCoRE

(workplace & productivity programme)

3. Generate Your Green Business Ideas (a module of SIYB

entrepreneurship programme)

Page 7: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

TOOL 1: "Value-chain development for

Green Jobs - an ILO guide"

• ILO’s value-chain manuals are being converted

to a GJ mainstreamed guide, “VCD for GJ”

– Vol. 1: Conceptual reader

– Vol. 2: Practitioner’s guide

• Pilot project of Jabalpur dairy sector as the

basis for Vol. 2 development

– Case study available

Value Chain Development

Page 8: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Participatory VCD of the ILO

what’s the difference?

• VC in private sector is something to manage from a firms

perspective: forward & backward integration

------------------------------

• ILO facilitate collaboration and synergy among a wide range

of stakeholders across VC through social dialogue model

• ILO’s VCD takes a systemic view of the market beyond VC

itself (reflection of M4P discussion)

Value Chain Development

Market system as the analysis framework

Page 9: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Focus areas of the dairy VC

Value Chain Development

Quick process creates momentum

Start-up

workshop

Results

Workshop

Inte

rvie

ws

Focus group discussions

Presentation

Build-up

Hypothesi

s Workshop

Imple-mentation

8 - 12 weeks

4 - 6 weeks

1 2 3 4 5 6

Modules

Page 10: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Participatory VCD ignited the reform mind

among stakeholders

• Steering Group formed and recommendations taken up by relevant stakeholders to implement.

• Specific opportunities identified to benefit more than a few farmers (e.g., use of wasteland and networking w/ research inst. to address lack of green fodder, selling of calves insteadof letting them die, help small farmers set up biogas plants for households thermal requirements with the government subsidy schemes ).

• More emphasis on information sharing to build on existing institutional capacities (e.g., government schemes, OSH services and tips, financial & non-financial services).

Value Chain Development

SMEs &

unions

Large

enterprises

Banks

NGOs &

Donor

Agencies

lead firms &

foreign

buyers Supply

industries

BDS providers

& Consultants

Government

departments,

institutes &

initiativesAccredita-

tion Agencies

Industry

bodies &

Associations

Steering Group to enhance policy

coherence at the local level

Value Chain

Steering Group

Page 11: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

TOOL 2: "Sustaining Competitive &

Responsible Enterprises (SCoRE)"

SCoRE supports enterprises to strengthen

collaboration and communication between

managers and workers to:

– Boost quality and productivity

– Improve working conditions (HR, OSH etc)

– Reduce environmental footprint and …

– …make enterprises more competitive in national

and global markets, thereby creating or protecting

jobs in the economic crisis.

Value Chain Development

SCoRE - Safer working environments

before

after

Page 12: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

SCoRE - Higher productivity

before

after

Value Chain Development

Workplace Cooperation

Organize your peopleOrganize your people Productivity and Cleaner Productivity and Cleaner ProductionProduction

QualityQualityOrganize your workplaceOrganize your workplace

SCORE makes enterprises more competitive in national & global markets

� Two day classroom training for managers and workers � Local experts for organization and intensive follow-up

� Worker / Manager approach to continuous improvement

Page 13: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Materials

Energy

WaterBy-Products

Solid

Waste

(trash)

Emissions

Heat

Loss

Hazardous

Waste

Waste-

water

Products

Technology

SCoRE’s Cleaner production module in collaboration with UNIDO

25

Value Chain Development

TOOL 3: "Generate Your Green Business

Ideas" for green entrepreneurship

• Objective:

– Generate Your Green Business Ideas intends to help entrepreneurs identifying business opportunities in climate change issues and environmental problems and let them develop innovative ideas to solve these problems through profitable businesses.

• Development & pre-testing:

– Material developed based on the Generate Your Business module of the Start & Improve Your Business (SIYB) entrepreneurship programme

– Pre-testing in the E-SIYB Project in China

Page 14: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

“Generate Your Green Business Ideas” –

sample pages from the workbook

Value Chain Development

Other tools and guides of the ILO that can

be combined with Green Jobs promotion

• ILO resource guide on the informal economy

• LED toolbox from local competitiveness assessment

to thematic intervention tools

• Variation of SIYB:

– SIYB Level One for semi-literate

– KAB for entrepreneurship education at school

– GET Ahead for women entrepreneurship

– Start & Improve Your Waste Recycling Business

Page 15: Green Jobstools and guides · very low rates ofimprovement in living standards. 5. The growth that occurred has been unequal, concentrating its benefitsamong the top segments of the

Value Chain Development

Useful websites of the ILO

• Green Jobs India site: http://www.ilo.org/newdelhi/whatwedo/projects/lang--en/WCMS_123411/index.htm

• ITC-Turin’s Green Jobs training site: http://greenjobs.itcilo.org/

• LED knowledge website: http://www.ledknowledge.org/

• Boosting Employment through Small Enterprise Development: http://www.ilo.org/empent/WorkingUnits/lang--en/WCMS_DOC_ENT_DPT_SEE_EN/index.htm

• SCoRE: http://www.ilo.org/empent/Whatwedo/Projects/lang--en/docName--WCMS_101367/index.htm

• Informal economy resource guide: http://www.ilo.org/public/english/support/lib/resource/subject/informal.htm

Value Chain Development

Let‚s work together to operationalize

Green Jobs in the Inclusive Growth