Unlocking national potential: Two years of ILO Productivity Ecosystems for Decent Work

Embarking on its third year, the ILO Programme is transforming lives and industries. With remarkable strides made in fostering inclusive growth and decent work, we celebrate the continued success and anticipate the exciting innovations and expansions awaiting us in 2024.

The Productivity Ecosystems for Decent Work programme is piloting a new ILO approach to promote inclusive growth and decent work. The approach remains high on the international agenda with the ILO Director-General Gilbert F. Houngbo emphasising the importance of sustained productivity growth for improved social justice several times over this past year.

In a fragmented world where lasting peace is in peril, it is crucial for us to elevate the debate on social justice because there’s no lasting peace, there’s no sustained economic growth or wealth creation without it.
ILO Director-General Gilbert F. Houngbo during the World Economic Forum Annual Meeting in Davos.

The programme is a strategic initiative that has significant implications for labour markets, sustainable development and social justice, the key aspects of which outlined below.

Labour markets

The programme recognizes that productivity is intrinsically linked to the prosperity of countries and their people. By fostering productivity growth, it creates more opportunities for decent work. When workers are more productive, they can earn a fair income, work in safe environments, and enjoy job security. Additionally, by addressing the root causes of low productivity, it aims to create an environment conducive to decent job creation. As productivity improves, businesses expand leading to more employment opportunities. Furthermore, skills enhancement is crucial for decent work. As productivity increases, workers’ skills are enhanced, contributing to better job prospects.

Sustainable development

Economic growth relies on sustained productivity growth, which is vital for overall development. Efficient business operations lead to thriving economies, improved living standards, and reduced poverty. Resource efficiency plays a crucial role. Productivity gains often translate to better resource utilization, contributing to sustainable resource management. The programme emphasizes environmental impact. Encouraging productivity improvements that align with environmental sustainability is essential. Striking a balance between economic growth and ecological considerations is crucial for long-term development.

Social justice

Social justice involves ensuring fair distribution of productivity gains to benefit all stakeholders. When workers’ incomes rise alongside productivity, it promotes equity. Additionally, the programme focuses on labour rights, guaranteeing workers’ rights are respected. An inclusive approach, involving collaboration among Governments, Employers, and Workers’ Organizations fosters fairness.

A series of explainer videos have been created by the programme to explore the link between productivity and decent work. 

At the country level, the Productivity Ecosystems for Decent Work programme has become fully operational. Following the inception phase in 2022, the three pilot projects in Ghana, South Africa and Viet Nam are now yielding succulent fruits, with beneficiaries counted in the thousands this past year.

At the global level, the programme’s Global Strategic Advisory Committee met twice to discuss its strategic aspects. Our approach is also gaining traction, for example with the international BRICS group, who have proposed to establish a Productivity Ecosystems for Decent Work Platform. 

Ghana

In Ghana, the project is making equal progress at policy, sector, and enterprise levels. At the policy level, the project is supporting the Ghana Statistical Service in producing multi-factor productivity statistics for the first time to facilitate a meaningful engagement and policy dialogue among stakeholders in economic policy-making, wage negotiation and the revision of relevant national labour legislation.

At the sector and enterprise levels, the project is addressing specific constraints to productivity growth and decent work in the textile and garment and the shea processing sectors and has initiated a range of both strategic and tangible interventions which are already showing results among its direct beneficiaries.  

© ILO

When I started out, my shea butter business was small. Being informal, we were missing out on opportunities, but through perseverance and patience I am formalizing my business and plan to trade on the international market.

Zakaria Adama Lacera, CEO of Yumzaa Enterprises. Read her story here.

South Africa 

In South Africa, the project has developed strong policy-level interventions while sector- and enterprise-level interventions are facing some delays due to partner staff turnover. The project is supporting partners to produce more robust productivity statistics across the economy. The goal is to facilitate engagement and policy dialogue among key stakeholders for better informed policy choices.

In parallel, the project is supporting the development of a first National Employment Policy with the Department of Employment and Labour (DEL) and the review of sectorial Industrial Policy Master Plans with Department of Trade, Industry and Competition (DTIC). The project is further advancing the implementation of sector master plans in the leather/footwear and automotive sectors with organizations such as Productivity SA, the Automotive Industry Development Center (AIDC) and the South African Leather Export Council (SAFLEC), addressing specific constraints to exports, productivity growth and decent work.

A series of videos have been created to understand the productivity and decent work challenges in South African SMEs.

Viet Nam

In Viet Nam, the project is operating in a favourable policy environment and is already achieving outcome-level results. The Government has adopted an important productivity framework in January and in November, the Ministry of Planning and Investment (MPI) launched a National Programme on Increasing Labour Productivity up to 2030. This ambitious, whole-of-government approach recognizes labour productivity as a top priority for Viet Nam, and lays out a broad, comprehensive agenda of reforms involving many ministries. The design of these initiatives are supported by the programme.

At the sector and enterprise levels, the project has achieved significant progress in the two selected sectors, wood and furniture and the machine component manufacturing. Interventions are promoting digitalisation, better management and working condition practices, reduction of CO2 emissions and better coordination of support policies and business development services.  

This video shows how the programme is boosting productivity, cutting costs, and promoting green practices in two different enterprises.

We just unveiled our comprehensive Productivity Measurement Guide, which includes a dynamic Question and Answer blog. The fruits of this guide will come alive before the summer, as we showcase its impact in all three programme countries. Expect detailed reports highlighting our progress, accompanied by engaging Round Table discussions in each country.

We will shortly be reporting on how the programme in South Africa is building capacity in the just transition and green economy. In Ghana, there are two exciting new partnerships to be announced, and a new ILO Voices Story will be released highlighting how the programme is making a real difference to individual lives and communities in Viet Nam.    

Through this programme, the ILO is creating a virtuous cycle: improved productivity leads to decent job creation, which, in turn, enhances productivity further. By focusing on these interconnected aspects, the programme contributes to a more equitable and sustainable world. To keep abreast of our achievements as this year unfolds, we welcome you to follow us on LinkedIn, X and sign up for our Quarterly Newsletter.

The ILO Productivity Ecosystems for Decent Work programme is funded under the long-standing partnership between the State Secretariat for Economic Affairs (SECO) and the Norwegian Agency for Development Cooperation (NORAD) from 2022 to 2025.