When it comes to protecting the poorest citizens, most government-sponsored social safety nets offer inadequate protection and keep many in poverty generation after generation. Safety nets are crowded out by unaffordable general subsidies that often benefit the rich more than the poor and cause significant economic distortions that lower the demand for labor. The call for economic and social justice is intimately related to the need for more equal access to economic opportunities, jobs, and more effective safety nets to enhance the wellbeing of citizens.
As well as being a source of frustration, the high level of joblessness translates to high risks and vulnerability. The Middle East and North Africa (MENA) countries, for instance, often commit a portion of their national budget to subsidies, and while these subsidies have a positive impact on poverty, they only benefit the rich more than those who live in poverty and places a heavy burden on public finances. Fuel subsidies for instance have a negative impact on labor markets making it cheaper to invest in and operate new machinery instead of hiring new workers. High costs leave almost no room for even direct cash transfers or targeted social nets. The average MENA country commits 5.7 per cent of its Gross Domestic Product to subsidies of which 80 percent goes towards universal subsidies on fuel. A comparison of other developing states found that average spending does not yield significant impacts on poverty and inequality due to inadequate targeting and extremely low coverage, according to the World Bank. Indeed, two thirds of people at the periphery segment are not covered by any form of targeted assistance.
In order to resolve this issue, there first needs to be a tangible business environment for the private sector to create the good jobs of the future. Lowering the barriers to both entry and exit of firms would create a dynamic private sector, which encourages investment and innovation and increased demand for labor. Getting young people into productive employment is an urgent issue for countries around the world. A successful transition of the labor force is essential for young people to be assured of success in life, but many young people encounter obstacles to this transition which is very normal. Governments, therefore, both from the low and middle-income states, need to be actively engaged with existing policies to help youth maximize on their skills as well as seek for self-employment https://www.ilo.org
Promoting employment and decent work in a changing landscape. Increasingly, private sector firms and employers play a vital role in developing and implementing programs that are pro-youth and in planning national strategies for skills development. Partnerships with other firms can massively inject resources beyond the allocation disbursed by the government.
There needs to be reforms across the region’s educational system so that young people are equipped with skills required for employability or self-employed jobs in the private sector. Deliberate engagement with active employers can easily enhance their skills in these training institutions and be aligned with the actual requirements from the labor market. Hence, without appropriate incorporation of needs of the labor market, no impact will be realized. Getting young people into productive employment is an urgent issue for countries across the world. Many governments in low and middle-income countries are actively engaged in actualizing interventions to help young people attain the skills they need to prosper in life as well as to get suitable employment https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.oecd.org/mena/governance/Young-people-in-OG.pdf&ved=2ahUKEwiyyrTts4P7AhXFg_0HHfKQBq04ChAWegQIFRAB&usg=AOvVaw2QuUlqQFC8Zezysl66Md4K
The labor market and social protection policies should provide optimum protection to everyone in a non-discriminatory manner of their age, sex, and ethnicity. This will ensure growth because people will be able to shift jobs in search of better jobs without risking their wellbeing and livelihood. In addition, training interventions that closely involve employers to ensure trainees are demand-driven for instance through involvement in curriculum design and provision of internships for on-the-job skills, which yields benefits in terms of youth employment or outcomes.
The fact that the issue of youth unemployment remains unacceptably high reflects deep-seated human capital and governance challenges stemming from state economies. Even before the Covid-19 pandemic, MENA was the only region in the world to see an increased level of extreme poverty driven by conflicts. Covid-19 has exacerbated these challenges, making it a priority for countries to improve governance and restore trust with their citizens as well as strengthen human capital, support income generating activities, achieve gender equality, address the drivers of conflict, and accelerate green, resilient, and smart recovery.
A high level of engagement and patience by states’ meaningful involvement with private sector programs such as the Saksham project is marked by a high level of interaction among the involved https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.planindia.org/our-project/saksham/&ved=2ahUKEwiu2_bLsoP7AhV6gv0HHX9pCjo4FBAWegQIBxAB&usg=AOvVaw2ovzqGPeSPoUxDw2hWstTr
This aligns with the relevance of partnerships as an eye-opener by working closely together to achieve positive youth programs. Formally setting out plans can immensely set the stage for communication. In the decade leading to the international community’s 2030 Sustainable Development Goals, states need to implore their partners both nationally and internationally to build momentum for economic transformation and unleash their vast potential.
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