GB.276/PFA/9 - Governing Body

1. In adopting the Programme and Budget proposals for 2000-01 in June 1999, the International Labour Conference requested that the Director-General "... submit to the Governing Body, at its 276th Session (November 1999), a statement as referred to in article 15 of the Financial Regulations, providing further details of the budget of expenditure". The present paper is intended to provide the Governing Body with the further details necessary to approve the budget of expenditure by item (the Operational Budget). More specifically, the following information is found in this paper:

General tables showing -
- a comparison between the Strategic Budget as adopted by the Conference in June 1999 and comparable figures following changes in the Operational Budget;
- the Operational Budget by item of expenditure for 2000-01 at 2000-01 cost and budgetary exchange rates, compared with the Operational Budget for 1998-99 at 1998-99 cost and exchange rates;
- increases and decreases in the 2000-01 Operational Budget as compared with 1998-99, showing the effects of cost increases and decreases and of the change in the exchange rate;
- a breakdown of the Operational Budget by item and object of expenditure.
More detailed tables within each budget "envelope", showing resources for each programme from the regular budget and from other sources. These tables also show the staff resources of each programme in work-years. They have been prepared in constant 1998-99 dollars and provide comparable data for the 1998-99 biennium. The new structure of the technical programmes is reflected in the relevant tables.
Data on estimated expenditure on technical cooperation funded from extra-budgetary sources.
Reformulated Operational Objectives with corresponding indicators and targets.
Details of the eight InFocus programmes.
Proposals related to programme evaluation and reporting to the Governing Body on programme implementation.
Proposals on the future programming cycle, and in particular on the preparation of a Strategic Plan.
Information on the personnel implications of the proposals.

2. Under arrangements decided some time ago, the Director-General was to have presented a report on programme implementation in 1998-99 to the current session of the Governing Body. In addition to describing what had been accomplished, the principal purpose of that document was to explain what changes were foreseen for the next biennium in the light of experience in the current biennium. The present document explains the changes for the next biennium and in part analyses the reasons for them. The rationale for the next biennium's programme was fully developed in the programme and budget proposals considered by the Governing Body in March 1999. For these reasons, a paper on programme implementation has not been submitted. However, the Report of the Director-General on ILO activities in 1998-99, to be submitted to the next session of the International Labour Conference, is well advanced.

3. Immediately after the Conference, the Director-General began an intensive process of internal consultation involving staff of the regions and headquarters. The objective was partly informational, to explain the new management processes being introduced and the work to be done in future and also to elaborate the InFocus programmes jointly by the field and headquarters. A meeting was organized at the end of June involving all field office directors and many Geneva-based officials. In addition, meetings were organized between senior staff of technical sectors in Geneva and technical specialists from the regions to determine how best to work together in achieving the strategic and Operational Objectives.

4. The Director-General asked all the Executive Directors to undertake internal staff consultations to determine the organizational structure of their sectors and refine the InFocus programmes.

5. The Director-General issued instructions to the Executive Directors to review their programme and budget proposals, most of which had been prepared in mid-1998. They were to resubmit them at two levels, one at 92 per cent of the 1998-99 level and the other at a level varying from 97 per cent upwards depending on the sector. This was intended to ensure that priorities were still valid and to provide choices for the final selection of proposals. The Executive Directors were also asked to reconsider the Operational Objectives in view of their importance for future planning, management and reporting. As part of this process, performance indicators and targets were to be introduced. Consultants were hired to facilitate the identification of indicators and targets.

6. The results of this intensive work in the period since June are presented in the next section. Before passing to that section, however, explanations are provided on four matters - the regions and regular budget for technical cooperation (RBTC); Operational Objectives, indicators and targets; resource shifts within the approved budget; and common services in the technical sectors.

7. The budgetary allocations to the regions remain unchanged. The budgets for the five regions and for their headquarters support unit were individually approved in the Strategic Budget, unlike other Office units. Moreover, next year the regions will undergo a review of their operations. The Director-General believes their budget levels should remain fixed pending the results of that review. RBTC credits are increased by $1,585,000 in 2000-01 compared with 1998-99, the increases falling entirely in the regional budgets. The use of these credits will be among the subjects of study in the review of the regions in 2000.

8. The Operational Objectives are somewhat changed from those presented in the Strategic Budget. The number of objectives remains unchanged at 16. The main changes are as follows:

In the Standards, Fundamental Principles and Rights at Work Sector, a new Operational Objective has been added to reflect the role of the International labour standards programme in the supervisory process for all standards. The two Operational Objectives referring to standards and fundamental principles and rights at work have been merged, with separate indicators for promotion of the Declaration and for the ratification and application of the fundamental Conventions.
In the Employment Sector, the six Operational Objectives have been recast as five in the interests of clarity and accountability, in particular through better alignment with the InFocus programmes. The same content is covered.
In the Social Protection Sector, the last Operational Objective has been changed to correspond to the InFocus Programme on Socio-Economic Security.
In the Social Dialogue Sector, the two Operational Objectives have been expanded to three to more clearly cover the promotion of social dialogue, the strengthening of institutions for dialogue and the strengthening of the parties to social dialogue - governments and employers' and workers' organizations.

9. The process of establishing indicators and targets has been a difficult exercise. An indicator is a measure or a test of whether progress is being made towards achieving an objective. A target is a desired value of the indicator at a particular point of time, or in other words a measure of how much progress should have been made towards meeting the objective by a specified date. A typical example of an indicator would be the ratification and successful implementation of an ILO Convention, with the target being a particular number of countries meeting that indicator in a two-year period. Not all objectives lend themselves to this type of measuring and more complex indicators and targets are necessary. The indicators and targets found under the programmes are a first effort on the part of the Office to come to grips with this feature of strategic budgeting and these indicators and targets may, and probably will have to, undergo revision in the light of experience. This has been the experience of national public administrations and of private sector enterprises that have introduced them. For some indicators no targets are proposed. Either baseline data does not yet exist to establish a target or the cost of acquiring the data would be exorbitant. Outputs will have to serve as a rough proxy for targets. Indicators and targets will be the basis of future reporting to the Governing Body. Objectives, indicators and targets are also under development for the service and support programmes, as will be seen under the appropriate heading towards the end of this paper.

10. The third issue is that of resource shifts. The overall budget respects the decision on the total budget level approved by the Conference. However, the budget review conducted over the summer has revealed opportunities for increases under some budget envelopes and reductions in others. The Governing Body has the authority under the Financial Regulations to change the budgetary envelopes in the programme and budget approved by the Conference. The proposed changes reinforce the technical services provided to constituents. Details are provided in a later section of this paper.

11. The structuring of work around four sectors, each responsible for one of the Strategic Objectives, offers an opportunity to make improvements in efficiency and coordination. This will be done by providing common services at sector level, rather than in each department, as was done previously. Functional responsibility for the service for the ILO as a whole will remain with the central unit indicated in parenthesis in the following list of functions that the common services units may cover:

Support to programme planning, evaluation and reporting (Bureau of Programming and Management).
Support to technical cooperation development and implementation (Development Cooperation Department).
Promotion of activities related to gender equality (Bureau for Gender Equality).
Support for the implementation of research policy (International Institute for Labour Studies).
Activities related to external partnerships, communications and relations (Bureau for External Relations and Partnerships).
Development and analysis of statistics and databases (Bureau of Statistics).
Information technology support (Bureau of Information Technology and Communication).
Financial administration (Financial Services Department).
Personnel administration (Personnel Department).

12. These services are to be provided at sector level only where it is more efficient to do so. Additional resources will not be allocated. A minimum of services has already been grouped at sector level in the budget information presented in this document. In the coming months, each sector will consolidate additional services if this can be shown to be efficient and effective. The nature of the working relationships between the programmes within each sector and the common services units must be elaborated such that shared services are used optimally. Finally, the common services units will be used to facilitate dialogue and collaboration between sectors for each of the key functions listed in the preceding paragraph.

II. General tables

Table 1: Strategic Budget for 2000-01

Table 2: Operational Budget by item of expenditure

Table 3: Operational Budget - Analysis of increases and decreases

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Table 4: Operational Budget by item and object of expenditure

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13. Tables 1, 2, 3 and 4 together provide a complete overview of the strategic and Operational Budgets for 2000-01.

14. Table 1 is the Strategic Budget adopted by the Governing Body and the International Labour Conference, updated to show the effects of the 2000-01 cost and exchange rates. It shows the expected contribution to each Strategic Objective.

15. Table 2 is the Operational Budget. It shows the allocations for the main budget envelopes, and within each envelope the allocations to the main programmes. For the technical programme envelope, in addition to the technical sectors (which now correspond to the Strategic Objectives), some individual cross-sectoral programmes are shown. Budgetary data for all programmes are shown in more detail later in this paper. Table 2 will be the basis of the accounts kept by the Office and financial reporting to the Governing Body.

16. Table 2 shows the resources actually available for programme areas and the comparable allocations for 1998-99.

17. Table 3, an analysis of increases and decreases, shows a number of changes in levels of allocations between 1998-99 and 2000-01. At the level of the main headings, the changes are the following, which result in nearly $6 million of additional resources for operational work by technical and regional programmes:

A reduction of $1,988,478, or 3 per cent, under Policy-making organs. It has been possible to make savings in the printing of Conference reports and efficiencies in Legal services and in Relations, meetings and document services.
A net reduction of $1,408,763, or 2 per cent, under Support services. Efficiency gains have been achieved in the ILO library, Information technology and communications, Internal administration and Publications programmes. Increases are foreseen for External relations and partnerships, and Public information.
A reduction of $1,760,594, or 4.3 per cent, in Management services. While there are reductions in all programmes, the main decrease results from the transfer of the costs relating to certain Executive Directors to the technical programmes they now supervise.
An increase of $1,585,000 in regional programmes, or 1.1 per cent, already announced in the Strategic Budget.
An increase of $4,357,835, or 2.9 per cent, in technical programmes.

18. The essential purpose of the operations described above was to increase the level of services to constituents. Within each region, this has been done by increasing the level of resources for regular budget for technical cooperation (RBTC). Within the overall increase in technical programmes there has been a significant redistribution of resources:

Resources shown in 1998-99 under Interdepartmental activities have been entirely redistributed.
Resources for the Statistics programme have declined by $240,424, or 3.3 per cent. However, this will be balanced by greater emphasis on statistics in each technical sector.
Resources for Social dialogue have declined by $919,558, or 2.2 per cent. This relates partly to savings in the cost of participation in sectoral meetings, based on past experience, which do not affect the terms of attendance at meetings. In addition, there have been savings due to streamlined management structures. Resources for Employers' activities have been increased by two Professional posts dealing mainly with technical cooperation.
Resources for programmes in the Employment Sector have declined by $1,335,290 or 3.4 per cent. However, the total resources devoted to employment will continue to be the largest by a considerable margin, due to the following factors:
- three-fifths of extra-budgetary technical cooperation relates to employment;
- support cost resources available to the sector for backstopping of technical cooperation are expected to exceed $5 million, more than the other three sectors combined;
- the International Policy Group, described later in this paper, originated in the Employment Sector and will continue to devote considerable emphasis to macroeconomics in its new setting;
- reorganization of the Employment Sector has been especially thorough and has resulted in significant gains in effectiveness and efficiency that will be devoted to additional services for constituents.

Resources for Social protection have increased by $1,709,168, or 6.9 per cent. This reflects the assignment of the InFocus Programme on Socio-Economic Security to this sector. This InFocus programme emphasizes original research in several fields not covered by existing programmes, many of which are of concern to all technical sectors.
Resources for Standards, fundamental principles and rights at work have increased by $4,205,968, or 19 per cent due to the InFocus Programme on Promoting the Declaration, and to the increase in regular budget resources for child labour.
Resources for Gender equality have been increased by $985,050, or 88.1 per cent.
Regular budget resources for InFocus programmes amount to $36,218,417, or 23.7 per cent of technical programmes.

19. For the technical programmes at headquarters, there are some important differences between the Strategic and Operational Budgets. This is not surprising, since the Strategic Budget is based on the evaluations of programme managers, while the Operational Budget refers to the actual amounts the individual Office units are expected to spend. (The methodology for evaluating contributions to objectives needs revision; this will be done as part of the proposed strategic planning process.) The differences between the Strategic and Operational Budgets are most notable in the Social Dialogue Sector. The Strategic Budget shows the contributions of the units within this sector spread relatively evenly among the four objectives rather than concentrated on that of social dialogue. Thus, in the Strategic Budget these other Strategic Objectives include resources from the social dialogue objective, whereas in the Operational Budget these resources are retained in the Social Dialogue Sector. This also occurs to a lesser degree within the other sectors. Similarly, Gender equality, the International policy group, the Institute, the Turin Centre and Statistics have been left outside the four technical sectors because of their cross-cutting programme content, and as a result the budgets of the sectors are smaller in operational terms than their weight in the Strategic Budget.

20. Table 4 shows the Operational Budget by item and object of expenditure and responds to the requests of Governing Body members for details on objects of expenditure.

21. The two charts on page 14 show the contribution of the budget to the Strategic Objectives and other envelopes, as approved by the Conference (upper chart) and as revised following resource shifts among the budgetary envelopes (lower chart). The changes between the envelopes and within each envelope are described in paragraphs 17 and 18 above.

22. The Strategic Budget approved by the Conference described the programme of work and distribution of resources by the Strategic Objectives. In the period since approval, an internal reorganization has created sectors corresponding to the Strategic Objectives. Resources are shown according to this new structure. This document does not seek to repeat information on the programme of work for 2000-01 contained in the Strategic Budget. However, it does provide brief descriptions of the structure of each sector and much more information on the InFocus programmes, as their design has advanced considerably since the Strategic Budget was approved. Naturally, this document adds performance indicators and targets to the Operational Objectives.

III. The technical programme envelope

Table 5: Strategic Objectives: Technical programmes

23. The technical programmes envelope covers the response of the ILO to the Strategic and Operational Objectives. It is therefore covered first, and in the greatest detail.

24. Resources devoted to technical programmes under the Strategic Objectives have been increased substantially for both the regular budget and other sources, as shown in the table above.

A. Standards, Fundamental Principles and Rights at Work

Table 6: Standards, Fundamental Principles and Rights at Work

Structure of the sector

25. The sector consists of the International Labour Standards Department, the InFocus Programme on Promoting the Declaration and the InFocus Programme on Child Labour: IPEC, which now covers all ILO activities on child labour, in addition to sector management. A gender task force covers all parts of the sector.

26. The International Labour Standards Department is being reorganized to better conform with, and serve, the four Strategic Objectives and to support efforts for the revision and modernization of standards. It will consist of the following:

The Equality and Employment Branch, which deals with instruments on equality, forced labour, employment policy, migrant workers, and indigenous peoples. It also includes the focal point for human rights coordination.
The Social Protection and Labour Conditions Branch, dealing with instruments on child labour (in cooperation with the InFocus Programme on Child Labour: IPEC), labour administration, seafarers, social protection, safety and health, and conditions of work.
The Freedom of Association Branch, which serves the Governing Body Committee on Freedom of Association and also deals with issues related to social dialogue.
Standards policy and information, which serves the Governing Body in relation to policy on standards, including revision, and provides legal information to the supervisory bodies, to the ILO, and to the general public.
Programme management, which includes the unit handling meetings and monitoring the supervisory process, ratifications and coordination with field activities.

27. The InFocus Programme on Promoting the Declaration will catalyse and support the efforts of other units and field structures to promote the standards and fundamental principles and rights at work contained in the Declaration, and involves outreach efforts. This is a new structure, established in conformity with the decisions and expectations of the Conference and the Governing Body.

28. The InFocus Programme on Child Labour: IPEC, is a new, integrated structure which combines all work on child labour in a single entity to ensure synergy and strengthened impact. This allows for the consolidation of previous work, eliminates duplication, and ensures that activities financed by the regular budget will directly reinforce the services provided with extra-budgetary resources to constituents. IPEC will be organized on three operational pillars: knowledge, service and advocacy. The research effort and improvement of the knowledge base will be used for advocacy, thus enhancing the basis for technical cooperation. Experience with field projects will feed into the knowledge base and policy functions of the programme. The new structure has been established through a consultative process involving IPEC and the child labour subprogramme earlier carried out under the Working conditions and environment programme.

Table 7: Strategic Objective No. 1 -
Promote and realize standards, fundamental principles and rights at work


Operational Objectives	Performance indicators	Targets

1a. Standards and fundamental principles and rights at work ILO member States give effect to the principles and rights concerning freedom of association and collective bargaining, non-discrimination and the elimination of forced and child labour	References to and use of the fundamental principles and rights in national development programmes, other policy documents and the media	To be defined after the development of baseline data.
	Progress in the implementation of fundamental principles and rights at work	To be defined based on improvements recorded by the annual and global reports, as part of the follow-up to the Declaration on Fundamental Principles and Rights at Work. Ten countries will undertake comprehensive programmes on fundamental principles and rights at work.
	Effectiveness and volume of ILO technical cooperation that supports follow-up on the ILO Declaration on Fundamental Principles and Rights at Work	20 per cent increase in delivery of relevant technical cooperation. Baseline on effectiveness developed using external evaluation data
	Ratifications of fundamental Conventions and related improvements in national law and practice	70 new ratifications of fundamental Conventions in addition to ratifications of Convention No. 182. Target on national law and practice to be developed

1b. Child labour Child labour is progressively eliminated, priority being given to the urgent elimination of its worst forms and providing alternatives for children and families	Ratifications of Conventions No.138 (Minimum Age Convention, 1973) and No.182 (Worst Forms of Child Labour Convention, 1999)	Half of ILO member States ratify Convention No. 182
	Effectiveness and volume of ILO technical cooperation that supports the elimination of child labour	20 per cent increase in delivery of relevant technical cooperation. Baseline on effectiveness developed using external evaluation data
	The number of countries that adopt time-bound targets for the abolition of child labour	10-15 more countries adopt time-bound targets for the abolition of child labour (following signature of the Memorandum of Understanding)
	Policy-makers' understanding of trends, underlying factors, the special situation of the girl child, and development issues	Quantitative and qualitative data available in 30 countries

1c. Standards supervision The supervisory bodies and ILO constituents receive the services they need related to development and the ratification and application of ILO standards	Effectiveness of assistance to the Committee of Experts, the Conference Committee on Application of Standards and the Governing Body Committee on Freedom of Association	To be developed
	Effectiveness of assistance to member States on the ratification and application of standards	Cases of progress noted by the supervisory bodies. Increase in the number of advisory missions and assistance. Agreements on assistance following the ratification of Conventions
	Effectiveness of assistance to the Governing Body in relation to policy on standards	To be developed

InFocus programme descriptions

InFocus Programme on Promoting the Declaration

29. The ILO Declaration on Fundamental Principles and Rights at Work, adopted in 1998, reflects the core ILO values recognized by the international community at the World Summit for Social Development. At the same time it acknowledged that member States may often need assistance in putting into practice their pledge to respect, promote and realize the following principles and rights:

freedom of association and effective recognition of the right to collective bargaining;
the elimination of all forms of forced or compulsory labour;
the effective abolition of child labour;
the elimination of discrimination in respect of employment and occupation.

30. The ILO must bring home the importance of these rights and principles in improving the lives of ordinary people, in line with the promotional nature of the Declaration and its follow-up. The Declaration recognizes the ILO's obligation to assist its Members, both directly and by mobilizing external resources and support.

31. The InFocus programme will therefore undertake research, support the reporting functions provided for in the follow-up and mobilize technical cooperation to help ILO Members give full effect to the Declaration.

Goals

32. The main goals of the InFocus programme are that:

the Declaration on Fundamental Principles and Rights at Work and its Follow-up are more widely known to a variety of audiences and are applied within an increasing number of countries;
the follow-up to the Declaration is serviced effectively;
technical cooperation needs related to fundamental principles and rights at work are identified, with gender issues taken into account;
technical cooperation for the implementation of the standards and of fundamental principles and rights at work is significantly increased.

Strategy

33. The long-term objective of achieving significant progress in the realization of the principles and rights covered by the Declaration will be pursued with a balance of knowledge, advocacy and service functions. In cooperation with field structures and headquarters, two units - one for promotion and technical cooperation, the other for research and reporting - will work as integrated aspects of the programme. The programme will serve as an entry point for activities relating to fundamental principles and rights at work under all of the Strategic Objectives. In other words, the promotion of the Declaration will build on activities in the fields of social dialogue, social protection and employment.

34. Since the obstacles to achieving universal respect for the fundamental rights and principles at work differ to some extent in terms of the principle or right at stake and the country involved, the programme will aim to develop technical cooperation projects to address constituents' specific needs and identify resources to meet them. This will include social reviews conducted at the constituents' request.

35. The work of the InFocus Programme on Promoting the Declaration will be informed by research work exploring the mutual reinforcement of sound development and respect for these rights and principles, taking full account of gender aspects. The advocacy work will use that knowledge in outreach efforts involving constituents to make the Declaration and its usefulness better known.

36. Making the Declaration and its follow-up more widely known. The follow-up cannot function properly without the provision of information from Governments and the other sources foreseen in the follow-up. Initially the InFocus Programme on Promoting the Declaration will devote considerable resources to the development and translation of materials (traditional and on the Internet) to explain the Declaration and its follow-up to a variety of audiences and to set up frameworks for dialogue. The early targets will be governments, which are to submit reports under the follow-up to the Declaration, as well as workers' and employers' organizations. Public outreach efforts will aim at reaching various audiences (other intergovernmental organizations, national parliamentarians, judiciary, academics, NGOs, etc.). The InFocus programme will also work with IPEC, the Turin Centre and other partners on developing course materials and conducting training activities. Tripartite promotional efforts at the national level will be encouraged.

37. Servicing the follow-up to the Declaration effectively. The processing of annual reports, the preparation of global reports, and the development of draft action plans for technical cooperation under the follow-up to the Declaration are new activities for the Office. Using information technology, mechanisms will be put into place for involving the field structures in various aspects of making the follow-up work. Since the topic of the global report will change each year, different specialists will be brought in on a rotating basis. Bearing in mind the operational review called for by the follow-up, the programme will seek to identify possible improvements the Conference or Governing Body might wish to make.

38. Identifying gender-sensitive technical cooperation needs. The InFocus Programme on Promoting the Declaration will devote resources to deepening knowledge of how fundamental principles and rights and gender and development concerns can be mutually reinforcing in various contexts (e.g. for different target groups and national settings). Enhanced dialogue with other intergovernmental organizations will also enrich technical cooperation proposals. The InFocus programme will act as an entry point for work in areas in which respect for the fundamental principles and rights at work can facilitate achieving further objectives (for example, respect for freedom of association and the right to engage in collective bargaining enabling the promotion of safe work).

39. Increasing technical cooperation resources. Working together with the field structures, IPEC and the headquarters units responsible for technical cooperation, the InFocus Programme on Promoting the Declaration will identify likely matches between requests for technical cooperation and possible sources of support. Attempts will be made to find new donors and to interest traditional donors in increasing their support for projects that would enhance respect for fundamental principles and rights at work. The delivery of services under such projects would be carried out in the manner best suited to meeting the project's goals. These activities will include joint projects with other United Nations bodies, Bretton Woods institutions, donor countries and foundations.

Major outputs

40. Making the Declaration and its follow-up more widely known. Initial efforts will focus on production of basic Web-enabled and other materials for use in outreach work with various audiences, along with the creation of an interactive website on the Declaration and its follow-up. Work will begin on establishing an advocacy network for the Declaration within and between constituents in different countries, exploiting opportunities for publicity, and on developing elements for briefings and training courses. In the 2000-01 biennium, translations of the Declaration and its follow-up will cover the major languages, training will focus on the ILO's constituents, and initial partnerships for further promotional activities will be forged.

41. Servicing the follow-up to the Declaration effectively. A tracking system to facilitate later assessment by the Governing Body and the Conference of whether the follow-up is fulfilling its purpose will be built into the systems being developed for the processing of annual reports and the preparation of reports by the Office. In the 2000-01 biennium, the InFocus Programme on Promoting the Declaration will analyse, compile and have the summaries translated for two rounds of annual reports, and prepare any additional Governing Body documents that may be required. It will publish the global report on freedom of association and collective bargaining, follow the Conference discussion and liaise with other relevant programmatic units for follow-up. Subsequently, it will do the same for the global report on forced labour and begin work on the global report on child labour.

42. Identifying gender-sensitive technical cooperation needs. The outputs under technical cooperation will be project proposals, developed with the involvement of constituents and other parts of the Office. In the 2000-01 biennium, a strategy will be worked out for involving the social partners in exploring this topic, and research work will integrate development and gender aspects.

43. Increasing technical cooperation resources. Outputs under this heading include the identification of new donors, arousal of interest in funding Declaration activities by traditional donors, and funds generated to support project proposals developed within the framework of the InFocus programme. In each biennium, priority will be given to areas of work and/or to countries identified by the Governing Body through the Declaration reporting process.

InFocus Programme on Child Labour: IPEC

44. The issue of child labour is one of today's most urgent social phenomena. Although more prevalent in developing countries, it still exists in industrialized countries and has re-emerged in countries in transition. As a result, millions of children continue to work in occupations and industries that are clearly hazardous, exploitative and morally unacceptable. Child labour stunts the lives of future generations and hampers sustainable development, hence the compelling need to deal with it effectively. The unanimous adoption by the International Labour Conference in 1999 of the Worst Forms of Child Labour Convention (No. 182) and Recommendation (No. 190) is a clear message from the international community that utmost priority should be given to its eradication. Many countries still lack the capacity to adequately address the problem, and a growing number seek assistance from the ILO.

45. The implementation of the InFocus Programme on Child Labour: IPEC will provide the Organization with the opportunity to recall that it stands for values about which the world cares. It will find strengthened resonance in the ILO strategy and vision as to its role in promoting social, economic and human rights. Focusing on the worst forms of child labour, practical action will also be taken with regard to policy and technical advisory services, knowledge dissemination, advocacy campaigns and resource mobilization.

46. Following the adoption of Convention No. 182, new features of the programme are the emphasis on the worst forms of child labour; a significantly enhanced multimedia campaign; intensified data collection and the integration of statistical information, analysis and further research into policy and programme design; strengthened managerial support, with greater attention paid to monitoring and evaluation; and streamlined structures with clearly defined responsibilities and methods as a result of an external management review of IPEC.

Goals

47. With priority given to the worst forms of child labour, the key aims are that:

countries are capable of effectively formulating policy and implementing programmes for the progressive elimination of child labour;
the worst forms of child labour are detected and prevented, and children are withdrawn from these forms of work as a matter of urgency;
member States take urgent action to ratify and enforce the Worst Forms of Child Labour Convention, 1999 (No. 182);
member States give priority to ratification of the Minimum Age Convention, 1973 (No. 138), and take effective measures to implement its provisions;
policy-makers and key partners at the national and international level have an improved understanding of child labour trends, the factors underlying child labour, the special situation of the girl child, and the linkages between child labour and development;
increased public awareness of child labour and calls for action.

48. Acting for the progressive elimination of child labour is part and parcel of the policy framework provided by the ILO Declaration on Fundamental Principles and Rights at Work. The issue of child labour is closely linked to that of development, since working children are denied the possibility of education and personal growth and hence to fully contribute to the development of their countries. Therefore, the programme will assist the constituents and implementing partners in translating into action the principles and rights proclaimed in the pertinent Conventions in their national development policies, plans and programmes. Gender will be a substantial component of all subprogrammes, for two major reasons: discrimination in respect of employment and occupation has a substantial incidence on child labour; working girl children are often more vulnerable than boys, particularly in the worst forms of child labour.

49. The InFocus Programme on Child Labour: IPEC, has four subprogrammes: knowledge, advocacy, service, and management support:

the knowledge subprogramme will undertake activities on standards, policy issues and statistics on child labour for policy and programme development;
the advocacy component will lead a global campaign aimed at urgent and wide ratification and proper implementation of Convention No. 182, and at improved implementation of other relevant Conventions, mainly Convention No. 138;
the service component will assist constituents and other implementing partners in translating into action their political will to abolish child labour, giving priority to its worst forms;
the management support aspect of the programme will implement the main recommendations of the external management review in order to build sound synergies among the subprogrammes and to streamline organization processes and procedures in a transparent manner. It will create effective evaluation mechanisms in order to ensure sustainable impact.

50. Existing partnerships will be enhanced and joint ventures devised with other sectors, InFocus programmes and units. This will include the Area Offices and MDTs in order to ensure the smooth implementation of the programme. There will be strong links within the sector on standards, fundamental principles and rights at work. The programme will also continue to strengthen broad alliances with the business community and trade unions, as well as between international and regional organizations with a renewed commitment to inter-agency cooperation and substantive collaboration.

Major outputs

51. The major outputs will be the following:

Knowledge:
- a standard, user-friendly and gender-sensitive methodology for the collection of information on child labour;
- a Web-enabled knowledge base on child labour;
- national and global trend reports on child labour as well as analytical reports and publications (including child labour and gender, development and armed conflicts);

Advocacy:
- multimedia products and printed publications for use in the ratification campaign;
- a comprehensive website on child labour;
- targeted awareness-raising materials for social and resource mobilization;

Service:
- a portfolio of effective national, subregional and regional programmes and projects against child labour for replication or adaptation, and a synthesis of ILO experience;
- national and regional plans of action for the prevention and elimination of child labour;
- national policies and legislation addressing child labour concerns;
- annual reviews of country experience;

Management support:
- improved organizational and operational structures at headquarters and in the field;
- synergy between the other subprogrammes;
- a comprehensive evaluation strategy including executive and detailed workplans and effective mechanisms for overseeing their implementation; meaningful reporting of performance versus objectives;
- new adequate internal controls ensuring effective financial systems and procedures in operation at headquarters and in the field.

B. Employment

Table 8: Employment

Structure of the sector

52. To reflect the coherence and interdependence of the different aspects of employment promotion and following a process of intensive consultations involving all sector staff at headquarters and the MDT specialists concerned, it has been agreed to organize the sector around the following units:

The Employment Strategy Department will develop an overall framework for the analysis of the economic, social and financial aspects of employment promotion. In addition to undertaking research on the impact of macroeconomic, financial and other policies and measures on employment, it will be responsible for producing the World Employment Report, the Country Employment Policy Reviews, the Key Indicators of the Labour Market (KILM) and other knowledge-based products. The area also includes a social finance unit and a population unit, both mainly funded from extra-budgetary resources. An important aspect of the work in this area will be to provide advice on policy issues to other parts of the sector.
The Recovery and Reconstruction Department will consist of a rapid response team to spearhead, prepare, plan, mobilize and manage the ILO's response to crisis situations and an employment-intensive infrastructure investment unit. The InFocus Programme on Crisis Response and Reconstruction is described below.
The Skills Development Department corresponds to the InFocus Programme on Skills, Knowledge and Employability. It aims at increased investment in training and human resource development, described in more detail below. It will promote improved access for vulnerable groups - in particular young people, disabled and displaced workers - to human resource development and labour market opportunities for their greater economic and social integration. The programme will also promote investment in human resources and improved organization and delivery of training to raise productivity and incomes in the informal sector and to enhance the capacity to reach and maintain sustainable livelihoods. It will also include activities to develop and strengthen the capacity of employment services to be more responsive to the evolving needs of the labour market.
The Job Creation and Enterprise Development Department will aim at the creation and sustainability of decent jobs in all types of enterprises. The main emphasis will be on the promotion of small enterprises and the upgrading of informal sector micro-enterprises through the InFocus Programme on Boosting Employment through Small Enterprise Development described below. Another, smaller programme aims at the adoption by larger enterprises of management practices reflecting ILO values and principles, including measures to enhance competitiveness and productivity and promote socially sensitive enterprise restructuring. A third programme aims at the strengthening of cooperatives to ensure that they can continue and expand their role as viable, broad-based, participatory enterprises in a market economy context.
Multinational enterprises. Given its special responsibility in connection with the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy and the corresponding subcommittee of the Governing Body, a separate unit for multinational enterprises is maintained, reporting direct to the Executive Director.
Gender promotion. With a view to the effective mainstreaming of gender promotion issues in the sector, each programme and area will have a number of gender promotion experts. A gender promotion unit reporting direct to the Executive Director will support the gender promotion experts through research and knowledge management, and will work with them to ensure that all sector activities are gender-sensitive and gender-responsive. The gender promotion unit will also be responsible for the global programme on More And Better Jobs For Women.

53. A common services unit will coordinate support services for the sector as a whole, including knowledge management, documentation, Web-management, computer support, personnel and finance. The unit will also service the Governing Body Committee on Employment and Social Policy. It will be responsible for the preparation of programme and budget proposals as well as monitoring, reporting and evaluation in the sector. It also has special responsibility for technical cooperation coordination and resource mobilization and for ensuring that development concerns are effectively addressed in the different areas of the sector.

Table 9: Strategic Objective No. 2 -
Create greater opportunities for women and men to secure decent employment and income


Operational Objectives	Performance indicators	Targets

2a. Employment policy support ILO constituents are better equipped to analyse national and global employment and labour market developments and to elaborate and negotiate effective policies and programmes for employment promotion and human resources development	The number of decision-makers who make use of ILO policy advice and publications, including the Key Indicators of the Labour Market (KILM) and the World Employment Report (WER)	At least 50 per cent of the international news media give coverage to the WER At least 100 professional journals and other publications representing all regions make reference to the WER and to KILM At least 25,000 downloads per year from KILM and other employment policy websites
	The number of ILO member States that incorporate recommendations of Country Employment Policy Reviews (CEPR) and other policy advisory reports in national employment and human resource policies	The recommendations of at least four CEPRs are incorporated into government policies, in consultation with the social partners

2b. Knowledge, skills and employability ILO constituents invest more in training and human resources development for enhanced employability	Member States adopt strategies to improve the identification of training needs and to increase investment in training systems	At least eight countries adopt strategies promoted by the ILO
	Effectiveness and volume of ILO technical cooperation in the areas of training and human resource development	Baseline on effectiveness developed, using external evaluation data, and volume of technical cooperation increased by 20 per cent

2c. Reconstruction and employment-intensive investment ILO constituents are better equipped to design and implement special employment promotion programmes in situations of high unemployment, particularly in the context of different types of crisis	Effectiveness and volume of ILO technical cooperation in the areas of employment-intensive investment and post-crisis employment promotion	Baseline on effectiveness developed, using external evaluation data, and volume of technical cooperation increased by 20 per cent
	Number of countries adopting ILO approach to employment-intensive investment	At least ten countries adopt ILO approaches to employment- intensive investment
	Number of countries adopting ILO approach to post-crisis employment promotion	At least five countries adopt ILO approach to post-crisis employment promotion

2d. Enterprise development Policies and programmes to promote the creation of quality jobs in enterprises and upgrade the informal sector are effectively implemented	Number of countries and institutions adopting ILO policy and tools in the area of micro- and small enterprise development	To be determined once baseline is established
	Number of enterprises applying management practices which reflect ILO values and concerns	To be determined once baseline is established
	Effectiveness and volume of ILO technical cooperation in the area of enterprise and cooperative development	Baseline on effectiveness developed, using external evaluation data, and volume of technical cooperation increased by 10 per cent
2e. Gender promotion and employment ILO constituents are better equipped to apply policies and implement programmes to promote gender promotion in employment	The number of ILO programmes on employment that incorporate gender analysis and include specific measures to address gender promotion	All relevant programmes make use of gender analysis and explicitly include action on gender promotion
	Effectiveness and volume of ILO technical cooperation aiming specifically to provide better jobs for more women	Baseline on effectiveness developed, using external evaluation data, and volume of technical cooperation increased by 20 per cent
	Number of constituents adopting ILO advice and assistance on gender promotion in employment	At least 100 requests responded to and acted upon by constituents

InFocus programme descriptions

InFocus Programme on Crisis Response and Reconstruction

54. An increasing number of countries are facing various types of crisis situations, including armed conflict, natural disasters, abrupt financial and economic downturns and social or political transitions. To devise lasting solutions to such crises it is essential to pay attention not only to the immediate employment impact of crises but also to their root causes. These include social exclusion and poverty, which are often the result of limited access to economic opportunities and productive resources, and the absence of social dialogue and democracy. Where jobs can be found, conditions of work are often poor and measures for social protection are usually absent. The normal resistance to forms of exploitation such as child labour often breaks down. Early ILO involvement in crisis situations is crucial, not only in view of the continuum from crisis through emergency to development, but also for effective resource mobilization, since most major pledges are made in the emergency phase. The programme builds on earlier work in a number of crisis situations and exploits the ILO's comparative advantage in the area of employment promotion.

Goals

55. The programme aims at the development of a coherent and comprehensive capacity to respond in a timely and effective manner to different crises by facilitating the socio-economic reintegration of those most directly affected by crises. The programme also aims to ensure increased awareness at the national and international levels of the importance of employment and related social concerns in crisis situations and a greater role for ILO constituents in efforts to overcome the effects of crises.

Strategy

56. Various types of measures and activities are called for before, during and after crises. These include early warning systems, crisis preparedness, emergency assistance, rehabilitation and development interventions. The programme strategy is based on the consideration that bringing the ILO's basic values and principles and developmental concerns to bear in the crisis context is essential both to tackle the immediate negative effects of crises and to create the conditions for a successful subsequent development process.

57. The main emphasis of the programme is on employment-related development interventions, such as the promotion of employment-intensive reconstruction and rehabilitation works, skills and entrepreneurship training, small enterprise development, local economic development and the promotion of social dialogue and social protection. As the majority of those affected by crises tend to be women and children, gender considerations will be prominent in planning programme interventions. The exact contents and relative weight of the different components of intervention at the country level will depend on the specific circumstances of each crisis. Since crisis situations are by their nature characterized by fluidity, sudden changes and uncertain outcomes, the programme will need to be flexible in choosing appropriate partners.

58. The programme will adopt a coherent, comprehensive and integrated approach, mobilizing the different competencies required in response to a particular crisis. When a specific technical input cannot be provided from within the ILO or is not available immediately, the programme will draw on a roster of consultants with the appropriate technical profile and relevant experience. This will require the flexible application of the ILO's usual modes of operation. In addition to direct ILO interventions, the programme will develop and strengthen the capacities of local and regional institutions, prepare guidelines and manuals and undertake demonstration projects and other activities to promote the ILO approach. The programme will also develop and strengthen strategic partnerships with a variety of actors and programmes active in crisis situations, both within and outside the UN system.

59. The programme will consist of a small rapid response team to spearhead, prepare, plan, mobilize and manage the ILO response to crises in cooperation with other headquarters and field units. A rapid action fund will be set up with RBTC resources to field missions to crisis countries at short notice. Because the ILO's ability to respond to crisis situations hinges on the availability of resources, the programme will develop a special resource mobilization strategy to ensure that the necessary resources are available for the services required by a given situation. This strategy will include sensitization of potential donors, appropriate ILO representation at pledging conferences and close collaboration with development banks and the European Union.

60. To avoid duplication, the programme will draw on the technical expertise available elsewhere in the ILO, both within and outside the employment sector, particularly in such areas as skills training, small enterprise development, micro-finance, knowledge management, macro-economic analysis and policies, employment-intensive investment, gender, disability, social dialogue, fundamental rights and principles and social protection. Specialists in these areas will act as focal points for the programme. Such an internal network, supported by external inputs, will ensure the multidisciplinary and comprehensive character of the programme. Focal points will also be established in each MDT to provide coordination and contacts at the field level and contribute to an early warning system and the design, implementation and monitoring of the programme's country-level activities. Field staff will also participate in inter-agency needs assessment missions, in resource mobilization efforts, both internal and external, and in developing and strengthening the programme's capacity to network with relevant bodies as the national, regional and subregional levels, including academic institutions, researchers and networks, UNDP offices and other locally represented UN agencies and decentralized donor representatives. Active involvement by field staff is also essential in the programme's efforts to build up and strengthen local capacities, the preparation and adaptation of guidelines and manuals, advocacy and the implementation of pilot projects.

Major outputs

61. The major outputs will be -

guidelines and manuals on employment and related social concerns in crisis situations;
a network of specialists and focal points established throughout the organization, and a roster of external consultants;
resources mobilized to implement employment creation programmes in crisis countries, with due attention to decent jobs and the dignity of workers;
comprehensive socio-economic reintegration programmes and projects designed and implemented (directly by the ILO and by others) which help create decent employment directly or strengthen local capacities to create decent employment for those affected by the crisis;
local capacities to promote decent employment in crisis countries strengthened;
information disseminated, through publications, electronically, participation in needs assessment missions and the organization of meetings, on the ILO's comparative advantage in this area;
strengthened capacity of ILO constituents to promote and contribute to the design and implementation of employment promotion and social interventions in crisis countries;
employment and social policies elaborated and implemented by governments in crisis countries which reflect ILO values and development concerns.

In-Focus Programme on Skills, Knowledge and Employability

62. The pivotal role of education and training for the promotion of more and better jobs for women and men is increasingly recognized. Investment in human resources, through lifelong learning, is of critical importance for enterprises concerned with improving their productivity and competitiveness in global markets, for individuals and their representative organizations concerned with maintaining employability in the midst of rapid changes and for governments concerned with spurring productivity and fostering higher economic growth and decent employment. A well-functioning education and training system enhances economic and social integration by offering opportunities to many groups who would otherwise be marginalized or excluded from the labour market.

63. The World Employment 1998 report "Employability in the global economy: How training matters", highlighted that, although most countries attach high priority to skills development, public and private sector investment in human resources development remains inadequate. Labour markets and training institutions are often too sluggish to cope with changing needs for knowledge in production systems. Considerable inequalities, notably gender inequality, persist in access to education, knowledge and skills. The potential of skills development to help reduce unemployment and poverty remains largely unfulfilled.

64. As part of the overall ILO strategy, the programme will set training for men and women within a wider developmental framework; it will emphasize the importance of close links between training and work; and it will seek to encourage greater investment in equitable human resources development so that countries can reap the benefits of competitiveness, growth, development and social and economic integration. The programme will create and enhance synergies by providing a coherent framework for current ILO activities in the areas of skills development and employment-related labour market and human resources policies within the employment sector, at headquarters and in the field. It will also address emerging issues, such as employability and new approaches to lifelong learning.

Goals

65. The programme has four major goals:

increased and effective investment in training and human resource development for enhanced employability, competitiveness and growth;
improved access of vulnerable groups, in particular of young people, disabled and displaced workers, to human resources development and labour market opportunities for greater economic and social integration;
increased and effective skills training to raise productivity and incomes in the informal sector;
strengthened capacity of employment services to be more responsive to the evolving needs of the labour market.

Strategy

66. The programme will seek to promote increased investment in knowledge and skills by highlighting linkages between investment in human resources, economic growth and decent employment; strengthening labour market information; encouraging training systems and training providers to be flexible while meeting high quality standards relating to training programme content and to the organization and management of training facilities; and encouraging enterprises to adopt high-skill strategies for improving productivity and providing quality employment. It will also develop an ILO concept of employability for policy formulation purposes and seek to promote the employability of the adult labour force through expanded opportunities for lifelong learning and improving the portability of the skills they acquire through work experience.

67. The programme will build its knowledge base in such areas as -

how to improve the design and management of labour market information systems;
how to better design training systems and improve their governance with the participation of the social partners;
how to develop better measures for assessing the quality of training;
how to improve the design of skill and competency standards.

68. This expanded knowledge base will provide the basis for a range of technical and advisory services. The programme will also enable the ILO to send a clear policy message. By demonstrating that investing in the skills of workers leads to better jobs and that better jobs lead to more investment and higher productivity and profitability, a process of social dialogue can be stimulated to take advantage of the possibilities of win-win outcomes.

69. The programme will focus on three vulnerable groups: youth; workers with disabilities; and displaced workers. It will involve policy-oriented research on innovative school-to-work transition schemes to more effectively integrate young people into education and work. It will also examine broad policy approaches and workplace practices that are conducive to the mainstreaming of workers with disabilities into the labour market. For displaced workers, the emphasis will be on developing practical tools that can contribute to more effective policy advice and technical support services.

70. The programme will develop tools to improve the delivery of skills to the informal sector, and to link skills training to support services that could enable informal sector workers to break out of the low-income trap. This will involve targeted interventions in developing countries to strengthen the informal apprenticeship system; the provision of technical assistance to improve the access of informal sector women workers to training and support services; and making large enterprises aware of the benefits of investing in the knowledge and skills of their subcontractors.

71. The programme will assist ILO constituents in developing public employment services into competitive and user-oriented service agencies. The ILO will become an active partner with local authorities, social partners and private employment agencies.

72. The programme will be closely linked to other work within and outside the employment sector, including other InFocus programmes, the International Programme on More and Better Jobs for Women, and the Jobs for Africa programme. Gender, development and labour market information will be the main cross-cutting themes, with emphasis on the mainstreaming of these concerns in all facets of the programme. In close cooperation with the field, the programme will identify regional priorities and ongoing and planned field activities with which it can establish linkages. Partnerships will be established with the Turin Centre and CINTERFOR, as well as external partners.

Major outputs

73. The major outputs will be the following:

guidelines for the assessment of training systems and institutions;
advice to policy-makers, based on research on employability;
research on lifelong learning and skill recognition systems, leading to handbooks in the 2002-03 biennium;
dissemination of good human resource development practices in high performance work organizations;
a training package for education institutions and employment services on how to prepare school-leavers for entry into the labour market;
research on successful monitoring and evaluation techniques for youth employment policies and programmes, leading to a manual in the 2002-03 biennium;
policy manuals for employers and trade unions on promoting decent employment for young women and men;
a major tripartite conference on youth employment, planned for the 2002-03 biennium;
the Code of Practice on Disability Management in the Workplace reviewed in a tripartite meeting of experts;
GLADNET information base and Internet-based services extended and made more accessible;
demonstration projects and a manual, as well as training modules on policy responses to worker displacement in countries undergoing restructuring and employment change;
a survey on the skills needed and acquired in the informal sector;
grass-roots level training delivery systems for informal sector workers;
updated ILO training packages for self-employment in the informal sector;
training modules for leaders and managers of informal sector organizations.

InFocus Programme on Boosting Employment through Small Enterprise Development