GB.269/5
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FIFTH ITEM ON THE AGENDA
Report of the Second Evaluation Meeting
on the Consequences of the Devaluation of the
CFA Franc for African Countries of the CFA Franc Zone
(Yaoundé, Cameroon, 23-25 April 1997)
1. Following the devaluation of the CFA franc in January 1994, the Eighth African Regional Conference (Mauritius, January 1994) adopted a resolution concerning the devaluation of the CFA franc, which called on member States to take action to address the negative consequences of the devaluation and requested the organization of a meeting to discuss appropriate measures.
2. A tripartite seminar on the socio-economic implications of the devaluation of the CFA franc for French speaking African countries was accordingly held in Dakar in October 1994, on which a report was submitted to the Governing Body's Committee on Employment and Social Policy at its 261st Session (November 1994).(1) Among the conclusions submitted to the Governing Body by the seminar was a request for a permanent tripartite structure for dialogue at the regional level in the search for a consensus on policies and action, involving in particular follow-up on its recommendations concerning employment, investment and enterprise development policies and social protection.
3. An initial evaluation meeting was accordingly held in Abidjan in 1996, which discussed developments in this field. The Second Evaluation Meeting was held in Yaoundé, Cameroon, from 23 to 25 April 1997. Its report and recommendations are attached.
4. The two sets of recommendations were adopted by the meeting on the basis of the reports of committees it established concerning respectively social protection and social dialogue, and employment and enterprise promotion and social dialogue.
5. The Governing Body is invited to take note of the report of the meeting.
Geneva, 10 June 1997.
Annex I
The Consequences of the Devaluation of the CFA Francfor French-Speaking African Countries
Second Evaluation Meeting
(Yaoundé, Cameroon, 23-25 April 1997)
Final Report
Purpose of the meeting
1. A meeting attended by tripartite delegations from 14 French-speaking African countries was held in Yaoundé from 23 to 25 April 1997. This meeting followed on from the first one held in Dakar in October 1994 at the invitation of the ILO, following the devaluation of the CFA franc in January 1994. The Dakar meeting had recommended:
(a) that the recommendations concerning employment and enterprise promotion and the social protection of workers be followed up;
(b) that a follow-up workshop be organized in the near future, which Cameroon had proposed hosting;
(c) that a tripartite meeting be institutionalized to discuss regularly trends in employment, labour, social protection and social dialogue policies in franc-zone African countries.
Participants
2. The Yaoundé meeting was attended by the Ministers of Labour of the 14 countries concerned, the Ministers of Planning or Finance or their representatives, and representatives of employers' and workers' organizations from most of the countries. The following international community partners also participated: World Bank, IMF, UNDP, CFD, MULPOC, ECA, UNIDO, OAU, CIPRES, BEAC, ISSA, ICFTU-AFRO, OATUU AND HCR.
Formal opening
3. The opening of the meeting was chaired by Mr. Peter Mafany Musonge, Prime Minister of Cameroon. In his welcome speech Mr. Simon Mbila, Minister of Labour and Social Welfare of Cameroon, thanked the ILO for its support in organizing the meeting and wished the participants a pleasant stay in Cameroon, "miniature Africa". He stressed that the second evaluation meeting was the practical expression of the recommendation by the Dakar Seminar to promote dialogue and the exchange of experiences among the countries concerned.
4. The representative of the Director-General of the ILO, Mr. Elias G. Mabere, Assistant Director-General responsible for ILO activities in Africa, recalled first of all the importance of the joint discussions that had taken place since Dakar focusing on opportunities to promote employment, provide broader protection to all workers and establish the approach to be taken in the struggle against poverty. He noted that the Yaoundé meeting was focusing on the same issues as those discussed at Dakar and proposed examining what had been done since 1994, the results obtained and possible future strategies. He stressed that thought should be given to the strategies to be developed to promote widespread job creation, placing particular emphasis on good jobs and competitive enterprises, and to introduce the type of social protection which provides the most destitute with a minimum level of security. He highlighted the fact that enterprise development and employment stability are inextricably linked to the growth and balanced development of the various elements which constitute the economy. In order to achieve balance in social security schemes the way they are run should be reviewed and their objectives, resources and benefits redefined in broader terms. He also underlined the fact that the exchange of experiences, and in fact the harmonization of strategies and regulations relating to enterprises, employment and social protection, was a social, economic and political requirement. He welcomed the presence of the development partners who had been involved in the devaluation of the CFA franc and who were still providing support for restructuring and economic revitalization efforts; their presence was an incentive to press ahead, placing greater emphasis on discussions and dialogue.
5. Mr. Peter Mafany Musonge, Prime Minister of Cameroon, on behalf of President Paul Biya and the Cameroonian Government, welcomed the ILO and the franc-zone member countries to Cameroon, and expressed gratitude to the ILO for making the meeting possible. After describing the socio-economic situation of the countries involved, dominated by the structural adjustment process, and some encouraging signs of economic recovery since the devaluation of the CFA franc, he emphasized that the social situation remained precarious and that it was important to capitalize on the positive effects of the CFA franc devaluation, in order to make of the decision to devalue a real opportunity for economic recovery and improved social conditions. He noted that the themes addressed in the Dakar recommendations had been the focus of programmes of action implemented in various countries, including Cameroon for which he gave some examples. Mr. Peter Mafany Musonge called attention to the need to carefully define the concepts underlying the programmes of action, particularly those relating to employment, entrepreneurship, social protection and social dialogue, and to identify the targets and partners concerned. Lastly, he said that greater attention should be paid to the correlations between the short, medium and long-term macroeconomic climate and the social policies which determine the welfare of populations, by strengthening social dialogue and seeking solutions at the national, regional and local levels.
The Officers of the Seminar
6. The Officers of the meeting were as follows:
Chairman: |
Mr. Simon MBILA, Minister of Labour and Social Welfare (Cameroon)
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Vice-Chairman, spokesman for the employers: |
Mr. Soungalo TRAORE, Secretary-General, CNPI (Côte d'Ivoire |
Vice-Chairman, spokesman for the workers: |
Mr. Louis SOMBES, Secretary-General, CSTC (Cameroon) |
General Reporter:
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Mr. Seini Ali GADO, Minister of the Public Service, Labour and Employment (Niger) |
Introductory talks
7. Four introductory talks were given by ILO experts. The first focused on social dialogue, the basis for lasting and harmonious socio-economic development. The countries of the subregion were involved in economic and social reforms for which positive results and a lasting impact were only possible if dialogue was strengthened between the governments and the social partners. Numerous examples to illustrate this point could be seen in legislative and statutory reform, the restructuring and privatization of enterprises, the promotion of SMEs and SMIs, social protection (should be reviewed and its scope broadened), occupational training (should be brought up to date), etc. Social dialogue was one of the principal methods advocated by the ILO to accompany the emerging political and trade union pluralism in the countries concerned and to promote the effective implementation of the principle of tripartism. This approach involved carrying out missions to identify country objectives and, within the ILO, drawing up work plans for the multidisciplinary teams and holding regular discussions between the technical departments at ILO headquarters and the area offices and multidisciplinary teams. In three countries belonging to the area covered by the EMACO a specific evaluation had been carried out of the tripartite consultation machinery which had resulted in the preparation of a follow-up project aimed at strengthening the abilities of the social partners; the project would be extended to other countries. The principal issues for consideration to promote social dialogue and formulate programmes of action were: administrative reform and decentralization, effective training programmes for social dialogue, the prudent pursuance of the "communalization" and improved governance process, capitalizing on discussions between the ILO, the Bretton Woods institutions, the governments and the social partners, and the involvement of subregional and regional organizations.
8. The second talk dealt with investment policies and programmes related to employment policy. The talk focused on the following points:
This three-pronged approach provides national policies and programmes with new prospects for job creation, enterprise promotion and the introduction of new consultation machinery and procedures for social negotiation, both at the macroeconomic and sectoral policy levels and the decentralized level. Initiatives to achieve these results should be part of an overall operational strategy to provide concrete links between policies and programmes of action. This overall strategy or framework of specific national employment policies should be developed along the following lines: analysis of supply and demand, availability of an efficient information system and institutional framework, formulation and implementation of programmes of action, validation through wide consensus, strengthening of national and regional capabilities, development of information and communication systems, establishment of a schedule, adherence to deadlines for the collection and evaluation of results.
9. The third introductory talk concerned enterprise development. The development and promotion of enterprises, including cooperatives, must respect a strategy of consultation and participation of all the economic partners. This presupposes a concerted economic system based on the decentralization and "deconcentration" of the public sector on the one hand and the economic and corporate organization of the formal and informal private sector on the other hand, which generally represents a large majority of all workers. Small enterprises of all types (sole ownerships, private companies, conventional business concerns and cooperatives) should be considered in the framework of participative reform and restructuring in order to make the economic agents (especially at the base) aware of the advantages and disadvantages of each of the current legal forms. This will allow favourable conditions to be established at the political, legislative, institutional and above all fiscal levels, which will result in improved organization of the informal sector and of SMEs.
10. The fourth talk related to the reform and broadening of social protection. The talk focused on three main points: the reform and broadening of social protection systems, financial management and the management of investments for employment promotion, and the organization of tools to assist in decision-making. For some years the reform of social protection in French-speaking African countries had been confined to the integral workings of the system itself; there had been very few global or sectoral initiatives. As a result of this fragmentation a huge majority of the population had become marginalized and social dialogue with the social partners had become less and less representative. A new approach was called for if the eventual pure and simple bankruptcy of the social security system was to be avoided. With this in mind, the ILO recalled that with respect to social security in the strict sense of the term, it had always made every effort to propose reform plans which were appropriately geared to the economic (budgetary, fiscal, tariff) and social environment of the country concerned. A further step was now called for. The ILO proposed for general consideration the establishing of closer ties between social protection and employment policy, and making the social cover of populations one of the major issues for social dialogue. In some places, the financial crisis affecting the management of social security schemes had threatened their viability. A new environment was currently developing as a result of national programmes to reform and restructure the financial sector. In the longer term, the credibility gained by the social protection system would contribute to improving the financial situation and would facilitate coherence between the social protection system and the economic and social development of countries. The ILO proposals to set up a more consistent and concerted organizational framework for information systems should result in, if a regional approach was taken, an ILO data bank on social security in Africa (DSSA). The prerequisite for this was to support countries in the organization of reliable sectoral information systems, communication networks and, lastly, national social security data banks (NSSD).
General discussion
11. A very fruitful discussion took place in the plenary following the introductory talks. The discussions focused initially on a general assessment of the devaluation of the CFA franc. A number of speakers voiced the opinion that according to the principal macroeconomic indicators there had been an upturn in growth in the majority of countries. Many speakers stressed however that some of the problems raised at the Dakar Seminar still remained. It was thus acknowledged that the economic recovery spurred by the export sectors had had no positive impact on employment or on improving the poverty situation. The thorny issue of national and especially foreign debt was also underlined as a major obstacle to countries achieving sustainable socio-economic recovery. Some speakers called on the ILO to make donors aware of the need to ease debts or even cancel them. Others recommended that States involve the social partners in the entire process of negotiating or rescheduling debts. Likewise, structural adjustment programmes should make provision both to promote entrepreneurship and the private sector, as well as employment and social protection.
12. In accordance with the introductory talk, all speakers recognized social dialogue as the basis for sustained and harmonious socio-economic development. In recent years it had been seen that, while progress had been made in a number of countries, an element of trial and error still remained. Social dialogue had in some cases become institutionalized through scheduled meetings of the States' highest authorities and the social partners, but it was not clear whether this consultation machinery was really effective, given the divergence of interpretations, sensitivities and interests. In some cases social dialogue had proved disappointing. Some participants noted that social dialogue presupposed trust, the possibility of making concessions, mutual respect among the partners, a good understanding of the different roles, ongoing communication and exchanges of information. On a more general note, there was awareness of the need to institute or strengthen social dialogue where it was inexistent or insufficient and to develop ways of keeping the social partners informed.
13. The discussion also encompassed prospects for employment promotion. In spite of positive signs of economic recovery following the devaluation of the CFA franc, unemployment, underemployment, falling numbers of public sector workers and enterprises undergoing restructuring were factors which had had a destabilizing influence on society and which justified employment policy being viewed as a priority and urgent issue. This recommendation, originally made at Dakar, was repeated with emphasis being placed on the need for a multisectoral, interdepartmental approach in which the social partners participate. A recent example of the setting up of a national tripartite committee to monitor employment policy and promote social dialogue was quoted as worthy of interest.
14. Many speakers commented that the promotion of productive jobs also presupposed the reform and diversification of financing systems. Although the State only had limited possibilities as far as investments were concerned, opportunities to encourage it to choose programmes with a higher component of labour and local resources should be seized. New operational systems to mobilize savings and facilitate access to credit should be set up at the national, regional and local levels. Some participants noted that, in spite of improved sales figures, many enterprises remained below their production capacity and had low recruitment levels, whilst still improving their productivity. In this connection, job creation was a function of the creation of new enterprises and business diversification. From this point of view, it was essential to provide support to the informal sector and to SMEs/SMIs in respect of training, so as to improve management and productivity and to encourage occupational consolidation. The extension of the ILO "Improve Your Business" programme into French-speaking areas thus responded to a real need. It had also been found necessary to include an introduction to entrepreneurship into the training system at various levels.
15. The discussion on social protection confirmed the restricted nature of the benefits offered so far to a minority of wage-earners in relation to the working population as a whole. In addition to efforts to upgrade current social security systems, thought should also be given to the idea of extending this cover to the greatest number of people. In response to the question of how this extension could be carried out, some participants pointed out that there must first be an improvement in the employment, salary and income situation in order to broaden the participation base. Actions focusing on the informal sector, cooperatives and local development initiatives, already under way in some countries with the support of the ILO, were worth pursuing and where appropriate extending, with the aim not only of increasing productivity, but also of minimizing risks of unstable employment and lack of social protection.
16. Lastly, numerous participants, following on from the Prime Minister's introductory statement, congratulated the ILO on the timely convening of the meeting in keeping with wishes expressed at Dakar. Some noted that a variety of conferences and world summits had given no thought whatsoever to a follow-up mechanism of this kind or to periodic exchanges. It was also clear that, while the general discussion had focused on some aspects of the assessment made at Dakar, this second meeting had provided the opportunity to broaden the investigations with the benefit of hindsight and current data, to review the difficulties encountered in the implementation of the Dakar recommendations and the concrete actions taken, and to hear the new recommendations made and viewpoints aired within the committees.
17. Following the general discussion, the meeting divided up into two committees to discuss one of the following aspects:
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Committee work
Report of the Committee on social protection and social dialogue
18. The Committee dealing with social protection and social dialogue met on Thursday, 24 April from 10.15 a.m. to 1 p.m. and 2.30 to 5.30 p.m., and on the morning of Friday, 25 April 1997. The Committee elected its Officers as follows:
Chairman: |
Mr. Assouma YAKOUBOU, Minister for the Civil Service, Labour and Administration Reform of Benin; |
Vice-Chairman (Employer): |
Mr. YOMBO (Central African Republic); |
Vice-Chairman (Worker): |
Mr. MBAYE (Senegal);
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Reporter: |
Mr. AMBEU (Côte d'Ivoire). |
19. The Committee used three reports as a basis for its work:
as well as a draft questionnaire prepared by the ILO. The Chairman proposed and the Committee agreed to base its work on this questionnaire.
20. A presentation of the retrospective operating indicators of a social security fund served as an introduction to the discussions. The first conclusion to be drawn was that, on the basis of those indicators, operating difficulties could have been detected in time to allow corrective action to be taken; there had been a suspension of payments because that action had not been implemented.
21. A current and prospective simulation model of the financial situation of a social security fund in an African country called Africaland was presented over the computer system. The Africaland fund had the following features:
In spite of this situation, the economic context, the employment crisis and the low return on investments meant that the financial viability of the Africaland fund would however be compromised within the next five or six years. This situation was further aggravated by the freezing of a large portion of reserves by the public treasury and also by the high cost of administrative management.
22. On the basis of this data the need for reform became clear. Discussions then ensued on the following points:
23. The participants confirmed that the objectives established during the first conference held in Dakar in 1994 and endorsed in Abidjan in 1996 remained valid but that they should take into account concerns relating to social dialogue. The Committee was of the view that discussions on social protection and social dialogue should be extended to other elements of civil society, namely cooperatives, associations, groups of producers, young people, women, etc. Other concepts such as the idea of extended family should take national characteristics into consideration. The view was expressed that the State should take responsibility for certain benefits.
24. The matter of expanding social protection systems was a priority one, but its degree of urgency depended on the situation of individual countries. In all cases it should be dealt with in the framework of social dialogue.
25. As regards the role of the State, the Committee considered that the level of state intervention should be defined by way of agreement to enable the State better to carry out an a posteriori supervisory role. In some countries, although the funds perform a public service role, they are managed according to the rules of private law. The social partners were of the view that in the framework of independent management, the appointment of chairmen of boards of directors and of directors-general should be the responsibility of the board of directors, subject to the approval of the competent authority. In this connection the conclusions of the Abidjan meeting serve as a useful reference.
26. It is important that the development of a social protection system takes into account the process of decentralization entered into by the authorities. But this geographic decentralization of activities should not be dictated by political reasons. It should be instituted by the board of directors in the framework of independent management for essentially technical reasons.
27. In the planning of social protection systems the principle of solidarity should not be called into question. To determine the various types of intervention, three levels should be defined: the first level of overall national solidarity is the responsibility of the State. The second level applies to occupational solidarity, and this should be organized between generations. In addition to these two levels, there are also individual and voluntary insurance schemes.
28. In order to promote dialogue and the regulation of the social protection system, it was suggested to set up, with no financial implications, a high-level social protection authority which would simply have a consultative role. It should not interfere with the monitoring and follow-up system run by the ministries responsible for the supervision of social protection.
29. The issue of employment promotion through the reduction of employer contributions was debated by participants. The outcome was that the reduction of contributions was a matter for discussion by the social partners in individual countries.
30. As regards occupational solidarity (second level of the social protection system) it was thought necessary to maintain the principle of setting up reserves and guaranteeing the financial autonomy of institutions. The funds should have mechanisms to evaluate the optimum level of their cash flow and administrative expenses, as well as forward planning tools to better manage their cash flow so that they always have the necessary liquidity available. With regard to the financial situation, and in view of the difficulties encountered which posed a threat to their financial viability, it was important to have access to:
31. The lack of appropriate regulations had been an obstacle to investment management. New mechanisms were needed to ensure efficient management of investments under the responsibility of the board of directors, which in turn could rely on specialized investment institutions.
32. The question of state debts was discussed at length. The participants considered that sums owed should be recorded on the state flow of funds table (SFFT) and the interest generated should regularly be paid to social security bodies to enable them to cover benefits.
33. The management of social protection systems and the services provided to insured persons had been hindered by the multitude of identification numbers, the poor operation of computer systems and the lack of reliable data files. It therefore appeared necessary to consider adopting a single identifier for each person covered, to reorganize the data files and to arrange a forum for reflection and standardization of computer use to encourage exchanges and economies of scale.
34. The Committee was of the view that the setting up of data banks on social protection was not merely a need but a matter of urgency. It would simplify exchanges with insured persons, promote relations between institutions and insured persons, as well as exchanges between institutions themselves both at the national and regional levels, and in particular with CIPRES.
35. The implementation of the above reforms should contribute to the preparation of statistics relating to the operations of the social protection system and the definition of policies. Nevertheless, it will first be necessary to unify the concepts, terminology and classifications at both the national and regional levels.
36. In order to improve management, the Committee considered it imperative to organize training programmes for agents.
Report of the Committee on employment and
enterprise promotion and social dialogue
37. The Committee elected its Officers as follows:
Chairman: |
Mr. Assane DIOP, Minister of Labour and Employment of Senegal |
Vice-Chairman (Employer): |
Mr. Lassina TRAORE (Mali)
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Vice-Chairman (Worker): |
Mr. Martin ALLINI (Gabon) |
Reporter: |
Mr. Joseph Martin KABORE (Burkina Faso) |
38. The Chairman of the sitting introduced the discussions and, after drawing the participants' attention to the short time available, invited them to focus primarily on making concrete proposals rather than entering into analyses of which, in his view, there were already enough in the technical documents the ILO had prepared for the meeting.
39. The Committee acknowledged the improvement in macroeconomic indicators following the devaluation: the average growth rate had risen from 4 to 5 per cent; inflation had been brought under control; investment rates had risen in some countries. However, these changes had not improved the employment situation to any particular extent in any of the countries. In fact, the devaluation had simply added to the negative effects of the structural adjustment programmes that some countries were already having difficulty coping with.
40. The Committee therefore adhered to the conclusions and recommendations of the Dakar meeting, which remained relevant and equally topical in 1997. Some speakers stressed the fact that several recommendations had been implemented, some had encountered difficulties and others had not been followed up.
41. After a discussion on the working method to be used, the Committee decided on the following structure:
Macroeconomic measures
42. The following observations were made on this point:
(a) Reforms of national Labour Codes have been carried out, in some cases with the collaboration of the World Bank and in others with ILO support.
(b) The tax incentives recommended by the Dakar Seminar have not been effective. In some countries taxation has even been raised.
(c) In spite of their excess liquidity, banks have not contributed sufficiently to productive investments for enterprises and cooperatives, as recommended by the Dakar Seminar.
(d) Privatization operations are under way in all countries, but the speakers emphasized that in some countries the social partners did not participate in decisions.
(e) Several speakers mentioned the heavy debt burden which had already been aggravated by high interest rates, and which the devaluation had effectively doubled, considerably reducing the financial possibilities of States.
(f) The participants pointed out that regional cooperation had remained limited and that exchange difficulties between the CFA of the UEMOA zone and that of the CEMAC zone had not made it any easier to expand markets in the region. They also emphasized the need to strengthen cooperation between the two areas.
(g) Lastly, several speakers drew the attention of governments to the implications of the advent of the Euro on the CFA franc, and to the negotiation of the Lomé-ACP/EU agreement, which will necessarily have implications for States at the macroeconomic level.
Employment creation strategies
43. Noting that economic growth had not affected employment creation, the Committee made the following observations:
44. The Committee pointed out that this situation should be improved by means of voluntary policies to generate employment and income and by improved vocational training. These national employment policies should aim to maximize jobs in the public and private sectors.
45. The speakers also considered that the employment creation potential at the local level had not been sufficiently tapped, due in particular to the fact that the process of decentralization and of transferring responsibility to local districts and communities had so far only been partially completed.
46. Lastly, several Committee members emphasized the importance of an environment favourable to private sector development -- in particular to SMEs and micro-enterprises. The establishment of such an environment was linked to a number of factors including:
(a) the streamlining of administrative procedures;
(b) the creation of appropriate conditions for the informal sector to move towards the formal sector;
(c) the reinforcement of comparative advantages of factors of production such as manpower, natural resources, energy, etc;
(d) opting for investment and technological choices which are high generators of employment;
(e) information and training in entrepreneurship;
(f) the promotion, development and regulation of decentralized systems of financing in conjunction with banking system reform.
47. A number of speakers helped identify sectors which were potential generators of employment, in particular agriculture, the farm produce industry, etc. However, the Committee considered that these sectors varied according to their circumstances and that the principle objective was to create an enabling environment for the private sector, in order to meet the challenge of competitiveness, the challenge of innovation and the social challenge (employment).
Regional cooperation
48. The speakers requested that employment and training monitoring services be set up or reinforced at the national level, that they be organized into a network, and that possibly a regional service be established. Training requirements for such services should also be addressed.
49. Several speakers voiced the wish that measures to harmonize commercial law at the regional level be effectively applied. They also placed emphasis on the free circulation of people, goods and capital to facilitate exchanges between the UEMOA and the CEMAC, as well as the setting up of joint ventures between the two bodies. They further emphasized the need for secure investments.
50. The participants regretted the fact that there had not yet been sufficient information and awareness campaigns concerning subregional and regional integration.
51. Furthermore, the Committee noted the importance of more widespread regional cooperation in the areas of transportation and energy.
52. Participants stressed the need to develop relationships between enterprises at the regional level in order to make enterprises more competitive and facilitate economies of scale.
International cooperation
53. The speakers recalled the need to respect ILO standards, and in particular Conventions Nos. 122 and 169 concerning employment policy.
54. Several participants said they wished to have increased assistance from the ILO in areas pertaining to employment policy, the revision of Labour Codes, the various social issues that could arise in connection with the development of international trade, child labour, employment monitoring services, etc.
55. The participants thought it would be helpful to negotiate as a bloc the rescheduling or cancellation of their foreign debt, and made an appeal for international support along the lines of the Marshall Plan.
Social dialogue
56. All participants recognized the importance of social dialogue in employment creation, the definition of development policies and the implementation of programmes.
57. The speakers hoped that social dialogue could be based on sincerity, transparency, the circulation of information and the involvement of all technical ministries.
58. The Committee emphasized the importance of training the social partners in negotiation and social dialogue as well as in the workings of tripartism.
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Adoption of the Report and the
recommendations of the meeting
59. The meeting held a plenary sitting on the evening of Friday, 25 April 1997 to adopt the general report, the committees' reports and the recommendations. Following some discussion the general report, including the conclusions of the committees, was adopted as were the recommendations as formulated following some amendments.
Closing session
60. During the closing session three statements were made: the motion of thanks by the participants to the Cameroonian authorities and the ILO read by the Minister for Labour and Administrative Reform of Benin, the speech by the ILO Deputy Regional Director for Africa, and the speech by the Minister of Labour and Social Welfare of Cameroon.
61. The ILO Deputy Regional Director for Africa noted that after three full days of productive deliberations a number of convergent and concrete conclusions had been reached. He recalled that the meeting had been the result of the same common will which had made social dialogue a reality and had extended that dialogue to include all partners. He noted that the Yaoundé meeting had been an opportunity to emphasize the clear links and close connections that exist between employment promotion, enterprise development and the consolidation and extension of social protection.
62. He also underlined other conclusions reached by the meeting, namely, the importance accorded to the various levels at which development should be organized nationally, regionally and locally, and to the social dialogue which constitutes the network and the link providing cohesion and solidarity among the social partners.
63. Mr. Touré went on to stress that the recommendations formulated were binding on everyone, and that the ILO, in the areas within its competence, would lend its support to countries in conjunction with concerted national programmes and programmes of common interest. He ended by thanking the Cameroonian authorities for their hospitality.
64. Mr. Simon Mbila, Minister of Labour and Social Welfare of Cameroon and Chairman of the meeting, referred to the climate of serenity, fraternity, tolerance and true social dialogue which had pervaded the deliberations. He then recalled that a number of the problems and recommendations examined at Dakar had been recognized as still being topical.
65. The deliberations of this second meeting had allowed issues to be analysed in greater depth, recommendations to be strengthened and new spheres of activity to be encompassed. He stressed that the recommendations formulated would be implemented in the various countries in association with the necessary social dialogue. He called on the ILO and the international community to support the countries and the region in implementing the recommendations adopted. He went on to thank the ILO and the participants for their contribution to making the meeting a success. He finished by wishing all the participants a safe journey home.
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Recommendations of the Committee on Social
Protection and Social Dialogue
66. Following an examination and discussion of the documents the Committee made the following recommendations:
I. On the reform of social protection
1. To maintain and strengthen the objectives adopted at Dakar in 1994 and at Abidjan in 1996 subject to the inclusion of social dialogue.
2. To make social protection a constant theme on the agenda for social dialogue.
3. To adapt social protection systems in substance and in practice to the new economic and social conditions; the speed at which this is done should be determined on a country by country basis.
4. To make it a national priority to extend social cover to the whole of the population.
5. To set up national consultation teams or structures to deal with the problems of extending the cover.
6. To reform social security systems by granting greater managerial independence to the organizations; this independence already exists in some States but must be strengthened in accordance with the Abidjan recommendations by measures such as the systematic strengthening of a posteriori monitoring, the rotating chairmanship of boards of directors, etc; the idea of an agreement or a programme contract between the States and the organizations has also been noted.
7. To gain greater control over the working community; this comes under the competence of the board of directors. As regards the diversity of legal provisions, it would be advisable for the agents belonging to the organizations to come under a contractual system.
8. To ensure that geographic decentralization corresponds to the history and realities of countries. Such decentralization sometimes tends to involve an increase in management costs at the same time as attempts are being made to reduce them. To engage in the subcontracting of certain activities following a readjustment of activities and in the framework of an agreement concluded between the State and the organizations.
9. To structure the permanent social protection mechanism in three levels: the first level shall be the responsibility of the State, the second level shall remain one of occupational solidarity where the State no longer has exclusive rights to implementation, and the third level shall be one of private, individual or collective initiative. This mechanism should be managed by a high-level committee, a regulatory body for all the partners involved in the permanent social protection mechanism.
10. With respect to employment promotion by means of the reduction of employer contributions as well as the deregulation of contributions, it was decided that it is too early yet to tackle this question in view of the current status of the social security system and of the economic climate.
II. On the investment of social security funds
11. To keep the principle of solidarity between generations at the second level of social protection.
12. To continue constituting reserves with strict respect for the independent management of funds.
13. To grant all social security organizations full and complete financial autonomy in respect of cash flow and reserves.
14. Social security organizations shall equip themselves with planning and management tools to help them improve administrative management, cash management, management accounting, financial and technical management.
15. In respect of the investment of social security capital, to adopt regulations where they do not yet exist and amend them where they have proved to be inadequate.
16. To assign the management of these investments, which comes under the responsibility of the board of directors, to a specialized organization.
17. Prior to any reform, to carry out a detailed financial analysis for the short term, and an actuarial analysis for the long term.
18. To record money owed by the State to the social security funds on the state flow of funds table (SFFT) for balancing purposes and to ensure that at least the interest generated by these monies should be paid to the social security organizations on the basis of agreements concluded between the State and these organizations.
III. On the social data bank
19. To adopt a single identifier in order to simplify relations between institutions and insured persons and to improve internal management procedures.
20. To set up a national structure for the consideration and standardization of computer use, in addition to the use of more flexible and less costly tools, taking into account technological progress on the one hand and the management needs of social security organizations on the other.
21. To set up data banks at the national and regional level to provide a response to problems of documentation, information and the circulation of information relating to social security.
22. To consolidate the ability of institutions to organize statistical services and to promote national and regional consultation on the production of statistics and management indicators.
23. To review the data files as a matter of priority.
IV. On training and research
24. To consolidate the capacities of institutions to organize training units and vocational retraining programmes for operating agents, without however neglecting regional or higher level training for managerial staff. To organize this training in collaboration with the ILO, the CRADAT, CIFOCSS or similar bodies.
V. To conclude, the Committee recommends:
25. To urgently institute in each country, in a tripartite framework and in a spirit of ongoing social dialogue, a committee to follow up the recommendations of Dakar in 1994, Abidjan in 1996 and Yaounde in 1997, in order to improve and extend the social protection system.
26. To have recourse to ILO assistance in pursuing all the reforms to be undertaken.
* * *
Recommendations of the Committee on Employment
and Enterprise Promotion and Social Dialogue
The Committee made the following recommendations:
I. Macroeconomic measures
1. To develop macroeconomic policies which make productive employment a priority.
2. To conclude banking reforms and diversify guarantee and financing mechanisms, in particular for savings banks and credit institutions.
3. To carry out tripartite discussions on the future of the CFA in respect of the advent of the Euro.
4. To involve the social partners in the privatization process.
5. To promote technology and investments which generate employment.
6. To set up units responsible for establishing links between investment and employment policies.
7. To begin or continue the reform of cooperative policies and legislation following a concerted participative and multisectoral approach.
8. To assist in the economic and corporate organization of the informal sector in view of economies of scale and its participation in decision-making.
II. Employment creation strategies
9. The Committee considered that employment creation strategies should be based on the following main principles:
9.1 The formulation of a voluntarist national employment policy, with the participation of the social partners and other elements of civil society.
9.2 Economic growth that takes employment creation concerns into account.
9.3 The use of technological options with a higher component of labour and local resources.
9.4 The incorporation of the employment dimension into investment policies and programmes.
9.5 The adaptation of training and vocational education to the real needs of the labour market and the implementation of a vocational training policy which is more in tune with economic demands, in close collaboration with the social partners.
9.6 The establishment of a legislative and regulatory framework to encourage small enterprise development in order to allow the informal sector to gradually join the formal sector.
9.7 The promotion of participative approaches to local community development activities.
III. Regional cooperation
10. To create or strengthen employment and training monitoring services at the state level and help them establish a network. ILO support would be helpful in this regard.
11. To formulate and implement information and awareness campaigns and programmes directed at the social partners and other target groups on subregional and regional integration.
12. To negotiate as a bloc the rescheduling or cancelling of the foreign debt of African countries. In this connection the participants launched an appeal for international support along the lines of the Marshall Plan.
13. To extend the experience of the UEMOA to the CEMAC as regards the regulation of mutual benefit institutions or cooperative savings and credit associations, facilitate the free circulation of the CFA franc between the two areas and unify commercial law at the regional level.
IV. International cooperation
14. To ratify and rigorously apply international labour standards and in particular Conventions Nos. 122 and 169 relating to employment policy.
15. To carry out further deliberations on the social clause as it relates to international trade.
16. To negotiate as a bloc the rescheduling or cancellation of the foreign debt and to launch another appeal for international support along the lines of the Marshall Plan.
V. Social dialogue
17. To train and inform the social partners in order to strengthen their capacity for negotiation.
VI. Conclusion
18. The countries in the area should set up structures and mechanisms to follow up these recommendations.
Annex II
List of participants
BENIN
Gouvernement
M. Assouma YAKOUBOU
Ministre de la Fonction publique, du Travail et de la Réforme administrative
M. Jules ONI
Directeur du travail
M. Boubacar AROUNA
Directeur général
Office béninois de sécurité sociale
Travailleur
M. Amidou LAWANI
Secrétaire général
UNSTB
BURKINA FASO
Gouvernement
M. Daniel BAMBARA
Directeur de l'orientation économique et de la prospective
Représentant le ministre des Finances et du Développement économique
M. Joseph Martin KABORE
Directeur général de l'emploi et de la formation professionnelle
M. Damien DABIRE
Directeur du recouvrement et du contentieux de la CARFO
M. Sidiki SEREME
Secrétaire général
CNSS
Employeur
M. Joseph O. OUEDRAOGO
Secrétaire général à l'information
CNPB
Travailleur
M. Abdou ZERBO
USTB
CAMEROUN
Gouvernement
M. Simon MBILA
Ministre du Travail et de la Prévoyance sociale
M. Edouard AKAME MFOUMOU
Ministre d'Etat chargé de l'Economie et des Finances
Conseillers Techniques
M. Alifa OUMAR
Conseiller technique
Ministère du Travail et de la Prévoyance sociale
M. Rémy SIM
Secrétaire général
Ministère du Travail et de la Prévoyance sociale
M. Théodore MINKA II
Directeur du Travail
Ministère du Travail et de la Prévoyance sociale
Mme Rose Alice NJECK
Directeur des études
Mme Agnès TANTOH
Directeur
CNPS
M. Mengue MBENA
Directeur de recouvrement
CNPS
M. Camille MOUTE A. BIDIAS
Directeur général
Fonds national de l'emploi
Employeurs
M. François A. SANZOUANGO
Secrétaire général
GICAM
M. Jean-Christophe FOTSO
GICAM
Travailleurs
M. Louis SOMBES
Secrétaire général
CSTC
Mme Ruth EKOUT
CSTC
REPUBLIQUE CENTRAFRICAINE
Gouvernement
M. Jean Claude GOUANDJIA
Ministre de la Fonction publique
Employeur
M. Rigobert YOMBO
Président
Union nationale du patronat centrafricain
Travailleur
M. J.R. SANDOS OUALANGA
Secrétaire général
CNTC
COMORES
Gouvernement
M. Madi OMAR
Représentant le ministre du Travail
M. Ahmed Naguib BEN DAROUECHE
Organisation patronale des Comores
Travailleur
M. Ali Tabibou IBOUROI
Secrétaire général
Union des syndicats autonomes des travailleurs des Comores
CONGO
Employeur
M. Jacques FUMEY
Président
UNICONGO
Travailleur
M. Abraham BOUNDZA
Confédération syndicale des travailleurs
COTE D'IVOIRE
Gouvernement
M. Yenon AMBEU
Directeur de Cabinet
Représentant le ministre du Travail, de la Fonction publique
et de la Prévoyance sociale
Employeur
M. Soungalo TRAORE
Secrétaire général
CNPI
Travailleur
M. François ADE-MENSAH
Secrétaire général adjoint
UGTCI
GABON
Gouvernement
M. Raymond NZE NDONG ,
Représentant du ministre du Travail
Premier conseiller, chargé d'affaires a.i.
Employeur
M. Jean ABOUGHE-OBAME
Représentant
Confédération patronale gabonaise
Travailleur
M. Martin ALLINI
Secrétaire général
COSYGA
GUINEE EQUATORIALE
Gouvernement
M. Carmelo MODU AKUSE BINDANG
Ministre d'Etat chargé du travail et de la sécurité sociale
M. Guillermo NGUEMA ELA
Secrétaire général
Représentant le ministre de l'Economie et des Finances
Employeur
M. Enrique ROCA-NGUBA
Président
UGDEEP
Travailleur
M. Justino David ANGUE OSA
Représentant SIS
MALI
Gouvernement
M. Boubacar Gaoussou DIARRA
Ministre de l'Emploi, de la Fonction publique et du Travail
M. Mamadou DIAKITE
Directeur général
INS
Employeur
M. Lassina TRAORE
Secrétaire permanent
FNEM
Travailleur
M. Issa dit Issé DOUCOURE
Secrétaire général
UNTM
NIGER
Gouvernement
M. Seini Ali GADO
Ministre de la Fonction publique, du Travail et de l'Emploi
M. Kochi Chegou MAINA
Secrétaire général adjoint
Ministère de la Fonction publique, du Travail et de l'Emploi
M. Ousmane GAOURI
Directeur général
CNSS
M. Hassan Dan KARAMI
Directeur adjoint de l'informatique
CNSS
Employeur
M. Ousmene ABDOU
Représentant
SPEIN
Travailleur
M. Mahamadou MOUSSA
Secrétaire général
USTN
SENEGAL
Gouvernement
M. Assane DIOP
Ministre du Travail et de l'Emploi
M. Aliou FAYE
Conseiller technique
Représentant le ministre de l'Economie, des Finances et du Plan
Mme Fatou DIAGNE
Directeur de la solde, des pensions et rentes viagères
Ministère de l'Economie, des Finances et du Plan
M. Babou N'DIAYE
Chef du Service des études
IPRES
Employeur
M. Papa Nalla FALL
Représentant
Conseil national du patronat
Travailleur
M. Rawane MBAYE
Secrétaire confédéral
CNTS
TCHAD
Gouvernement
M. Saleh-Abbas YOUSSOUF
Directeur général
Représentant le ministre du Plan et de la Coopération
M. Gabriel KEYTORO MWABANYOL
Représentant le ministre du Travail
Employeur
M. Abdoulaye DJONOUMA
Vice-président
CNPT
Travailleur
M. Djibrine Assali HAMDALLAH
Secrétaire général
UST
TOGO
Gouvernement
M. Liwoibé SAMBIANI
Ministre de l'Emploi, du Travail et de la Fonction publique
Employeur
M. Anani KOUDOYOR
Président
CNP
Travailleur
M. Koffi Agbogbe Chrysanthe ZOUNNADJALA
Secrétaire général adjoint
Chargé du secteur privé (CSTT)
OBSERVATEURS
Mme Mireille LINJOUOM, FMI, Yaoundé, Cameroun
M. Robert LACEY, représentant résident, Banque mondiale, Cameroun
M. David TCHUINOU, économiste, Banque mondiale, Cameroun
M. TJADE EONE, représentant, UNESCO, Yaoundé
Mme Marie-Christine BOCOUM, représentant, HCR, Yaoundé
M. P. Apeti DANSOU, directeur, ONUDI, Yaoundé
M. RAZAHOUI, représentant résident, PNUD, Yaoundé
Mme Viviane ZUNON KIPRE, représentant, AISS, Abidjan
M. Guy FIGAREDE, représentant, CFD, Yaoundé
M. Gaston Victor OKOUMOU, chef Section travail, emploi et ressources humaines,
OUA, Addis-Abeba
Mme Yvonne M. YAMDJEU, représentant, OUA/CPI
Mme Nicole ESSOUNGOU, chef du Service surveillance multilatérale, représentant
BEAC
M. Demba DIOP, secretaire général adjoint, OUSA, Accra
M. Mamadou Mansou SARR, ORAF/CISL, Nairobi
M. Lucien GLELE, secrétaire général adjoint, Confédération panafricaine des employeurs, Bénin
M. Gabriel NAHIMANA, économiste, CEA/MULPOC, Yaoundé
M. Vassiriki TOURE, chef de l'Inspection régionale de la prévoyance sociale, CIPRES
Lomé
M. Douhoure SIBAILLY, Internationale du personnel des postes et télécommunications, Abidjan
M. Pierre ZANOU, directeur du CRADAT, Yaoundé
M. Justin SENGOMONA, directeur des études, CRADAT
M. Samuel INACK INACK, représentant, IFORD
AUTRES PARTICIPANTS
CAMEROUN
M. Andze TCHOUNGUI, vice-Premier ministre chargé de l'administration territoriale
M. Augustin Frédéric KODOCK, ministre d'Etat chargé de l'agriculture
M. Ferdinand Léopold OYONO, ministre des Relations extérieures
Mme Halimatou HAMAN ADAMA, conseiller technique, représentant, ministre du Développement industriel et commercial
Mme Yaou AISSATOU, ministre des Affaires sociales et de la Condition féminine
M. Sali DAHIROU, ministre de la Fonction publique et de la Réforme administrative
M. Samuel MAKONG W., ministre de la Jeunesse et des Sports
M. Camille MOUTHE a BIDIAS, directeur général du Fonds national de l'emploi
M. Bayiha NTEPP, chef de Division de la coopération, CNPS
M. Mengue MBENA, directeur du recouvrement
M. David NANFAK, directeur des prestations, CNPS.
1. GB.261/ESP/4/4.