During the COVID-19 pandemic, Latin American and the Caribbean countries had no choice but to adapt their policies and practices to address the unprecedented socio-economic challenges of the crisis. In partnership with the ILO, many countries transformed their local economic development (LED) and labour market strategies to support a more innovative and human-centred recovery.
Four years later, this paradigm shift has proven to be sustainable in many countries across the region and was the topic of a recent roundtable discussion during the 4th Regional Forum on Local Economic Development in Latin America and the Caribbean (26-28 August in Montevideo, Uruguay).
Held on August 27, under the title "New Post-COVID Local Policies and Partnerships for People-Based Local Economic Development," the discussion was co-hosted by the ILO and the United Cities and Local Governments (UCLG) Committee on Local Economic and Social Development, to highlight successes and challenges behind novel LED and employment policies that emerged through the response to COVID-19.
John Bliek, ILO Caribbean Specialist for Sustainable Development and Job Creation was among the session's featured panellists who spoke on the ILO's unwavering people-centred LED approach to reduce labour market inequalities during and post-pandemic as part of its mandate to promote more inclusive Decent Work.
"When we talk about people, we talk about their work. Unfortunately, access to work is still precarious and often of low quality, particularly for young people. So, let's encourage the debate to enrich policies and programmes. At the ILO we are working on different levels of the ecosystem including on the development and implementation of operational programmes and actions with a continuous social dialogue, which is core in our ILO DNA. We are also carrying research forward by analyzing and planning from a value chain approach to create an economy that generates employment that is high quality, formal and better paid. And we are working to create local capacities in people and institutions in specific thematic areas such as the promotion of micro-, small, and medium-sized enterprises (MSMEs), cooperatives and other actors of the Social and Solidarity Economy, which is vital in social dialogue. We are also building capacity in socioeconomic integration of vulnerable groups such as migrants, women and youth.as well as bridging the current capacity gaps of institutions and persons with regards to digital inclusion, dialogue, planning and the advancement of a greener economy," explained John Bliek at the event.
Moderated by Manuel Redaño, Manager of Andalusian Fund of Municipalities for International Solidarity (FAMSI), the panel session also featured Carmen Sanchez from the National Agency for Development of Uruguay (ANDE); Federico Araya from the University of the Republic of Uruguay (UDELAR); Ioana Grotiuz from the Latin American Center for Human Economy (CLAEH); and Nicolas Piloni, a prominent Argentinean local leader.
"In local economic development, we need to take care of people and not rely only on just generic growth indicators but instead look deeper into issues as the quality of life or employment. The pandemic gave us a different reading of our reality, our vulnerability and our humility. We need to re-think based on lessons learned from that era for instance with regards of the composition of our entrepreneurial sector; having a high representation of an informal MSME sector with limited opportunities of resilience and coping. The consequence of this economic exclusion is that societies are very vulnerable; we are only as strong as our weakest link. So, inclusive Local Economic Development Strategies are fundamental for sustainable economic development. The relevance of a concept like Leave No One Behind becomes clearer and the people-centred agenda has become very timely with a focus on investments in three key areas of society: people's capabilities, institutions and decent work in a new economy which incentivizes MSMEs to generate greener and more formal employment," explained John Bliek.
Overall, the roundtable discussion was a critical opportunity to identify and refine economic development strategies that were created out of response and recovery efforts. The session showcased how local policies have adapted to emphasize the creation of decent jobs, support for small businesses, progressing the green economy, and integrating equity and sustainability into economic practices by also closing gaps through digital inclusion. By examining these evolving strategies, participants gained actionable insights into how communities can build more robust and inclusive economic frameworks. These lessons learned are reflected in the statement which will be brought into the broader discussions of the Global Forum on Local Economic Development to be held in Sevilla, Spain in April 2025.
