CDC Group plc, DFID’s wholly owned development finance institution (DFI), has the potential and mandate to contribute to delivering decent work in the global south. But currently, it policies and practices fall well short of DFI best practice on labour standards and do not comply with internationally recognised standards.
The UK government’s International Development Committee recently held an inquiry into CDC’s activities as part of a review of DFID’s Annual Report for 2010. The Forum submitted evidence to the inquiry, in consultation with the DWLSF steering group.
This evidence builds on work already undertaken by the Forum. In March 2010, the Forum held a best practice sharing seminar involving CDC Group, the European Bank of Reconstruction and Development, the ITUC and Building and Woodworkers International - bringing together Forum members and representatives from DFID. This seminar followed on from research commissioned by the Forum: Decent work and development finance, which highligted best practice amongst development finance institutions, and identified areas where CDC could improve its policies and practice (see below for more information).
Following recent high-profile critical media coverage of CDC, Andrew Mitchell MP, Secretary of State for International Development anounced a review of CDC’s work on 13 Sept 2010.
Seminar update
17 March 2010, Congress House
This Decent Work and Labour Standards Forum (DWLSF) seminar, attended by over 45 participants, created a space for vibrant discussions and sharing best practice on how development finance to the private sector can help deliver decent work.
The seminar featured presentations from Gareth Thomas, Minister of State for International Development; Alke Schmidt, Senior Environmental and Social Adviser, European Bank of Reconstruction and Development (EBRD); Shonaid Jemmett-Page, Chief Operating Officer, CDC Group plc; Peter Bakvis, Director, ITUC/Global Unions Washington Office; Fiona Muire, Director of Health and Safety and Construction, Building and Wood Workers International; and Alastair Usher, Director of Research, Ergon Associates.
Case studies presented illustrated the real and potential impacts of this type of financing on delivering Decent Work and highlighted the importance of incorporating Decent Work and labour standards into policy; project planning, implementation and monitoring. Differences in approach between different development finance institutions were explored and scope for learning and improving practice discussed.
Download presentations
DWLSF research_Ergon Associates presentation
European Bank of Reconstruction and Development presentation
CDC Group plc presentation
ITUC & Global Unions presentation
Building & Wood Workers International presentation
Background paper for Decent Work and Labour Standards Forum
March 2010
This paper aims to:
- Explain the workings of development finance to the private sector, and examine its actual and potential impacts on delivering decent work in a variety of contexts.
- Increase understanding of the relevance of the Decent Work Agenda for the provision of development finance to private sector companies in developing countries.
In relation to decent work and labour standards, the paper reviews the policy and practice of development finance institutions (DFIs) such as the European Bank of Reconstruction and Development; the International Finance Corporation at the World Bank; and the UK’s CDC Group plc, which in which DFID has a 100% stake.
The paper concludes that DFIS are important actors in the Decent Work Agenda, as their investments create and sustain significant numbers of jobs. But the structure of much development finance means that there is not always a prioritisation of decent work factors – such as the sorts of jobs created. To date, much DFI work on ‘labour issues’ has taken the form of mitigating risks to a project which is already fully or mostly formed.
Therefore, one recommendation of the study is that DFIs could more fruitfully give greater and earlier attention to decent work factors to improve development outcomes and facilitate compliance with labour standards requirements. The paper also outlines opportunities for Forum members to engage with development finance.
Decent work and development finance
Decent work and poverty eradication: literature review and two-country study
A study for the Decent Work and Labour Standards Forum
January 2010
Decent work has gained high-level international endorsement as an objective of the development agenda, particularly with its incorporation in the Millennium Development Goals. In the context of the global financial crisis, international policy statements have underscored the importance of good quality employment as a means of safeguarding livelihoods and as a route out of poverty.
This study examines how decent work themes have been incorporated into development planning in Bangladesh and Zambia and provides an overview of the global debates around decent work and development. It shows that beyond the international statements of support, the uptake of decent work by national governments and donors has been mixed. Read more…
An inspired line-up of poets, performers and activists provided a healthy kick of Rhyme, Rhythm, and Reason to help celebrate this years’ World Day for Decent Work, 7 October 2009.
Read more…
