Economic Transformation and the SDGs –
Measurement and Tracking
Dr Yaw Ansu
Chief Economist
African Center for Economic Tr...
SDG # 8 is pivotal among the SDGs
SDG #8
However SDG #8 requires achievement of SDGs
2,3,4,5,7
2. End hunger, promote sust...
3
SDG # 8 is essentially
addressing the issue of
economic
transformation
• Sustainable growth in Africa requires
Economic ...
Informality and high youth unemployment
characterizes the employment landscape
Informality and Youth Unemployment should b...
Why Formal sector?
There is need to move away from romanticizing the informal sector and make
expansion of formal employme...
Raising Formal Employment- Way Forward
So the target of raising the ratio of the formally employed to the working age
popu...
Raising Formal Employment-Alternative formulation
Alternatively, the target can be expressed in flow terms as:
(fe – wp) =...
Raising the labor force participation rate.
• Facilitate access to good and affordable health care in order to keep the
wo...
Source: World Development Indicators, 2015, World Bank
• Provide expanded and affordable access to secondary and tertiary,...
• Labor-intensive economic growth and transformation strategies,
including “the basics” as well as “market-oriented indust...
.
• Growth of formal employment—short of regular Labor Force Surveys:
administrative surveys, tax and company registration...
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HLEG thematic workshop on Measurement of Well Being and Development in Africa, Yaw Ansu

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HLEG thematic workshop on Measurement of Well Being and Development in Africa, 12-14 November 2015, Durban, South Africa, More information at: www.oecd.org/statistics/measuring-economic-social-progress

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HLEG thematic workshop on Measurement of Well Being and Development in Africa, Yaw Ansu

  1. 1. Economic Transformation and the SDGs – Measurement and Tracking Dr Yaw Ansu Chief Economist African Center for Economic Transformation (ACET)
  2. 2. SDG # 8 is pivotal among the SDGs SDG #8 However SDG #8 requires achievement of SDGs 2,3,4,5,7 2. End hunger, promote sustainable agriculture 3. Healthy lives 4.Quality Education 5. Gender equality 7. Affordable and sustainable energy 9. Infrastructure and industrialization Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all SDG #8 achievement will help achievement of SDGs 1,2,3,4 and 10 1. End Poverty 2. End hunger 3. Heathy lives 4. Quality Education 10. Reduce Inequality
  3. 3. 3 SDG # 8 is essentially addressing the issue of economic transformation • Sustainable growth in Africa requires Economic Transformation • Economic Transformation Requires growth with DEPTH  Diversified production and exports;  Export competitiveness  Productivity gains in all sectors of the economy  Technological upgrading throughout the economy  Human well being (= Decent Employment + High Incomes) Leads to: dignity, income security, access to health, education etc. and reduced inequality Full and productive Employment Decent Work For All Sustainable economic growth It is therefore crucial to clarify the concepts underlying SDG #8 and to provide metrics that will facilitate its measurement and tracking Key Concepts of SDG #8 ACET’s Conception of Economic Transformation
  4. 4. Informality and high youth unemployment characterizes the employment landscape Informality and Youth Unemployment should be top priority issues African youth increasingly educated and aspiring to formal employment • Low official employment rates are misleading: 80+ % of employment in informal sector High and rising youth unemployment 0 5 10 15 20 25 30 Benin Liberia Malawi Mali Zambia 2.4 5.1 8.6 10.7 15.2 25.3 29.0 17.6 13.5 28.3 Youth unemployment rates and NEET of selected African countries (%) Youth unemployment NEET Youth unemployment poses significant costs • Only a fraction of youth entering labor force from secondary school and tertiary institutions find formal employment (10% in Ghana).  A waste of individual talents  A waste of opportunity to capitalize on an important asset  A burgeoning army of frustrated youth that pose a risk
  5. 5. Why Formal sector? There is need to move away from romanticizing the informal sector and make expansion of formal employment a national economic target • Formal sectors have higher productivity • Formal sector employment provides higher incomes and benefits • Target should be: Raise FE/WP, where FE is the number of workers in formal employment and WP is the size of the working-age population (15-64 yrs). This target can be decomposed into 3 ratios: FE/WP = FE/SG * SG/LF * LF/WP Where: FE = Formal employment WP = Working-age population SG = Secondary and tertiary, including technical and vocational, school graduates in the labor force LF = Labor force =WP – (Those in School and Training)-(Housewives)-(Those incapacitated)
  6. 6. Raising Formal Employment- Way Forward So the target of raising the ratio of the formally employed to the working age population amounts to: • Raising the ratio of formal employment to secondary and tertiary school graduates in the labor force; • Raising the share of secondary and tertiary school graduates in the labor force; and • Raising the labor force participation rate. Together, these three component ratios constitute a focused economic transformation agenda that can effectively respond to the challenge of meeting SDG 8.
  7. 7. Raising Formal Employment-Alternative formulation Alternatively, the target can be expressed in flow terms as: (fe – wp) = (fe – sg) + (sg – lf) + (lf – wp) That is: • Growth in formal employment must exceed the rate of growth of the number of graduates from secondary and tertiary institutions entering the labor force • Growth of the graduates must exceed that of the labor force • The labor force must grow faster than the working-age population.
  8. 8. Raising the labor force participation rate. • Facilitate access to good and affordable health care in order to keep the working age population fit • Remove constraints and discrimination faced by women in entering the labor market • Promote family leave and childcare policies that enhance the options of women to participate in the labor force
  9. 9. Source: World Development Indicators, 2015, World Bank • Provide expanded and affordable access to secondary and tertiary, including technical and vocational, education • Ensure that those entering secondary and tertiary institutions graduate on time. 0 20 40 60 80 100 120 High Income OECD European Union Latin America & Pacific East-Asia and Pacific World South Asia SSA 91.2 91.7 75.7 78.5 66.0 51.4 33.7 105.1 111.8 92.9 86.6 75.2 65.5 42.8 76.0 66.2 43.9 33.1 32.9 21.2 8.6 Gross and Net Enrolment Rates of Secondary and Tertiary NER Secondary GER Secondary GER Tertairy Source: World Development Indicators, 2015, World Bank Raising the share of secondary and tertiary school graduates in the labor force.
  10. 10. • Labor-intensive economic growth and transformation strategies, including “the basics” as well as “market-oriented industrial policies” • Quality education system emphasizing STEM and raising role of technical and vocational training • Align growth and educational strategies; involve private sector in education. Raising the ratio of formal employment to secondary and tertiary graduates in the labor force
  11. 11. . • Growth of formal employment—short of regular Labor Force Surveys: administrative surveys, tax and company registration records, social security payments; use of ICT platforms that encourage recent graduate entrants to the labor force to periodically self-report on employment status (e.g. via text messages); Data and monitoring framework entails measuring a number of variables • Numbers and courses of study of secondary and tertiary graduate entrants to the labor force—Ministry of Education records supplemented by surveys of secondary and tertiary institutions including vocational and training institutes Formal Employment Education Labor force • Population census supplemented by periodic surveys on labor force, with gender disaggregation. • Push for comprehensive and regular labor force surveys in African countries.

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