Riyadh – It’s time to double our efforts to tackle the complex challenges and transformations facing the labor market, ensuring prosperity for future generations,” said Gilbert F. Houngbo, Director-General of the International Labor Organization (ILO).
“Young people of both genders are not merely beneficiaries in the labor market; they are active partners. Their presence is a powerful driver of change and innovation,” he remarked during a panel discussion on the promising future of the labor market at the Global Labor Market Conference in Riyadh.
Houngbo noted that employment rates for young men and women in the Arab region are around 26 percent, emphasizing our responsibility to empower them with tools for future success and social justice. “We must provide employment opportunities for young men and women, invest in them, and devise policies and programs to achieve appropriate goals,” he added.
The ILO Director-General highlighted the significant challenges currently intensified by climate change, rapid technological advancements, demographic shifts, and geopolitical tensions. He pointed out that artificial intelligence (AI) is a transformative force that could redefine the workforce’s core fabric. Young people should be prepared to adapt and innovate, considering that AI might reduce wages while potentially creating new jobs.
Reviewing statistics published by the organization, Houngbo discussed the global objective of achieving comprehensive coverage of the world’s labor markets by 2030. This goal would require creating 24 million jobs, necessitating investment in global infrastructure, including the expansion of internet networks, with lifelong learning as a central focus.
He also mentioned that the digital economy represents a clear path to employment opportunities. Additionally, exploring other avenues, such as the green economy, is crucial. This sector could provide over 8 million jobs by 2030, according to the organization’s reports. Achieving these goals requires clear political will and coordination among stakeholders.
In a separate development, leaders marking the UNCTAD eWeek 2023 in Geneva emphasized the undeniable need for rapidly advancing the digital economy in developing countries, necessitating stronger collaboration and capacity-building among political and business sectors.
The rise of digitalization has led to an increased online presence of businesses and consumers, yet the benefits are not evenly distributed globally. In least developed countries (LDCs), only about 6 percent of people shop online, compared to 62 percent in advanced economies. Additionally, less than half of the LDC population has access to 4G mobile network coverage, which is essential for supporting digital trade.
A recent UNCTAD report highlights the urgent need to fast-track e-commerce reforms and investments and increase international support to unlock the full potential of the digital economy in developing countries.
“Creating thriving digital economies in developing countries is an ongoing challenge,” stated UNCTAD Deputy Secretary-General Pedro Manuel Moreno during a high-level eWeek session on December 4, themed “Fast-tracking a Digital Economy Future in Developing Countries.”
“We all need to take action to make the digital revolution more inclusive and capable of delivering extensive developmental benefits,” he added.
To overcome e-trade barriers, UNCTAD utilizes ongoing eTrade readiness assessments, an integral part of the eTrade for all initiative supported by over 30 global development partners. These assessments assist developing countries, especially LDCs, in identifying opportunities, barriers, and policy solutions for driving digital transformation and e-commerce development across seven key pillars.
These pillars encompass e-commerce strategies, legal and regulatory frameworks, trade facilitation and logistics, information and communications technology (ICT) infrastructure, payment solutions, skills development, and access to finance.
To date, 36 countries have benefited from these assessments, with 28 of them having developed or planning to develop national strategies or action plans to integrate e-commerce into their national development agendas.
The assessments underscore the vital role of international cooperation in mitigating the underfunding challenges faced by developing countries and in enhancing their digital capabilities.
“There’s a significant need for more involvement from the broader community of development partners and donors,” stated Shamika N. Sirimanne, UNCTAD’s Director of Technology and Logistics. “We need a revitalized effort to support the implementation of priority recommendations, as well as to improve countries’ capacities for efficient and effective policy coordination.”
At eWeek 2023, UNCTAD presented assessments of Peru, Ghana, Mauritania, and Mongolia, examining their eTrade readiness and offering insights specific to each country’s digital economy.
In Peru, UNCTAD noted the country’s progress in developing digital connectivity infrastructure and implementing regulatory reforms aimed at fostering competition, reducing costs, and improving service quality. The assessment also recommends strategies to help Peru develop its e-commerce logistics market and achieve broader financial inclusion through the adoption of electronic payment systems.
Ghana’s assessment emphasizes the country’s significant potential for e-commerce growth, bolstered by substantial investments in ICT infrastructure that have increased internet penetration and financial inclusion. Ghana is planning to develop a national e-commerce strategy to capitalize on these opportunities.
For Mauritania, the assessment, scheduled for publication in 2024, will provide a policy toolkit to operationalize the country’s ambitious National Digital Transformation Agenda for the period 2022-2025.
In Mongolia, the focus is on enhancing ICT skills, improving cross-border payment options, and streamlining trade logistics and facilitation. Despite having a relatively well-developed ICT infrastructure, Mongolia is in the early stages of e-commerce development and stands to benefit significantly from these improvements.