Economic diversification, industrial linkages and FDI local sourcing towards decent work

The global pandemic has had a disruptive impact on employment and economic activity at sectoral level (e.g. manufacturing), and on vulnerable groups such as informal workers, women and youth whose livelihoods depended on these sectors. Studies carried out by the UN Philippines and ILO in Cambodia highlighted how local economies can become more resilient to external shocks. Critical in this regard is the development of policies and strategies that build local supplier capacities and local content in supply chains, with a view to creating productive employment opportunities. The studies developed a typology of policies that enabled or incentivized FDI local sourcing and industrial linkages. Country examples illustrated the role of government, private sector and public-partnerships. With foreign direct investments and global value chains (GVCs) offshoring and nearshoring in the aftermath of the pandemic, it has become critical to attract investments with supplier capacities and to leverage any remaining direct investments to optimize their potential for job creation and inter-firm linkages. Measures to attract investments are better guided, furthermore, by building knowledge of value chains, sectors and investors that have a greater propensity to source locally. OBJECTIVES The overall objective of the training course is to build capacity, increase knowledge and improve dialogue between the participants concerning economic diversification, industrial linkages and FDI local sourcing towards decent work and a human-centred employment recovery. At the end of the course, participants will be able to advocate for evidence-based policies, develop consensus and advise their institutions on policies and strategies that enable industrial linkages and leverage direct investments for creation of productive employment and local industry development. CONTENT The course is structured around three modules: Module 1 – Sector Selection Participants will be able to perform an informed and evidence-based sectoral selection leading to policy options, based on key parameters relevant to COVID-19 socio-economic recovery, job creation, poverty alleviation, local industry development. Module 2 – Focus on SMEs and job creation Participants will have a better understanding of policy interventions at their disposal to harness local business linkages, support local business development and promote productive employment in line with national employment policies. Module 3 – Business practices Participants will learn through cases different responsible business practices at the corporate level and enabling conditions and policies with evidence of mutually beneficial results across the chain