Decent Work and Economic Growth [1st ed.] 9783319958668, 9783319958675

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Encyclopedia of the UN Sustainable Development Goals Series Editor: Walter Leal Filho

Walter Leal Filho · Anabela Marisa Azul Luciana Brandli · Amanda Lange Salvia Tony Wall  Editors

Decent Work and Economic Growth

Encyclopedia of the UN Sustainable Development Goals Series Editor Walter Leal Filho

The problems related to the process of industrialization such as biodiversity depletion, climate change, and a worsening of health and living conditions, especially but not only in developing countries, intensify. Therefore, there is also an increasing need to search for integrated solutions to make development more sustainable. The current model of economic growth used by many countries is heavily based on the exploitation of natural resources, which is not viable. Evidence shows that a more careful, that is, a more sustainable, approach to the use of our limited resources is needed. The United Nations has acknowledged the problem, and among other measures, it produced a set of documents at the UN Conference on Sustainable Development (Rio+20), held in Rio de Janeiro, Brazil, in 2012. In 2015, the UN General Assembly approved the “2030 Agenda for Sustainable Development.” On January 1, 2016, the 17 Sustainable Development Goals (SDGs) of the Agenda officially came into force. These goals cover the three dimensions of sustainable development: economic growth, social inclusion, and environmental protection. There are to date no comprehensive publications addressing the SDGs in an integrated way. Therefore, the Encyclopedia of the UN Sustainable Development Goals is being published. It encompasses 17 volumes, each devoted to one of the 17 SDGs. More information about this series at https://www.springer.com/series/15893

Walter Leal Filho • Anabela Marisa Azul • Luciana Brandli • Amanda Lange Salvia • Tony Wall Editors

Decent Work and Economic Growth With 144 Figures and 85 Tables

Editors Walter Leal Filho European School of Sustainability Science and Research Hamburg University of Applied Sciences Hamburg, Germany Luciana Brandli Faculty of Engineering and Architecture The University of Passo Fundo Passo Fundo, Brazil

Anabela Marisa Azul Center for Neuroscience and Cell Biology Institute for Interdisciplinary Research University of Coimbra Coimbra, Portugal Amanda Lange Salvia HAW Hamburg Hamburg, Germany

Tony Wall International Centre for Thriving University of Chester Chester, UK

ISSN 2523-7403 ISSN 2523-7411 (electronic) ISBN 978-3-319-95866-8 ISBN 978-3-319-95867-5 (eBook) ISBN 978-3-319-95868-2 (print and electronic bundle) https://doi.org/10.1007/978-3-319-95867-5 © Springer Nature Switzerland AG 2021 All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Series Preface

The United Nations General Assembly agreed and approved in September 2015 the document “2030 Agenda for Sustainable Development”, which contains a set of measures aiming to balance economic progress and protection of the environment, while at the same time remain aware of the need to address the many disparities still seen between industrialized and developing countries. The Agenda document consists of 17 Sustainable Development Goals (SDGs). These Goals build on the successes of the Millennium Development Goals, while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities. The goals are interconnected – often the key to success on one will involve tackling issues more commonly associated with another. The 17 SDGs are: SDG 1, placing an emphasis on ending all forms of extreme poverty. SDG 2, which aims to end hunger and achieve food security with improved nutrition SDG 3, focusing on ensuring healthy lives and promoting well-being for all SDG 4, touches on one of the most important areas, namely inclusive and quality education SDG 5, focusing on gender equality SDG 6, which emphasizes the need for clean water and sanitation SDG 7, advocates the need for affordable and clean energy SDG 8, sustaining inclusive and sustainable economic growth with productive and decent working conditions for all SDG 9, which intends to foster industry, innovation, and infrastructure SDG 10, being about reducing inequalities among countries SDG 11, an attempt to ensure that human settlements and cities are inclusive, safe, resilient, and sustainable SDG 12, with a focus on sustainable consumption and production patterns SDG 13, with an emphasis on the need for climate action SDG 14, raises the need to preserve life below water, especially rivers and oceans SDG 15, draws attention about the need for a greater care about life on land

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Series Preface

SDG 16, which advocates peace, justice, and strong institutions SDG 17, a cross-SDGs effort to foster the partnership for the goals and their delivery The SDGs and their specific objectives are very complex. The mandate of the Encyclopedia of the UN Sustainable Development Goals is, therefore, to clarify and explain a wide range of terms associated with each SDG. It does so by gathering and presenting inputs provided by experts from across all areas of knowledge and from round the world, who explain each term and their implications, drawing also from the latest literature. With 17 volumes and involving in excess of 1,500 authors and contributors, the Encyclopedia of the UN Sustainable Development Goals is the largest editorial project on sustainable development ever undertaken. We hope that this publication will be helpful in fostering a broader understanding of the SDGs, and that this process may inspire and support a wide range of initiatives aimed at their implementation, thus realizing the “2030 Agenda for Sustainable Development”. Hamburg University of Applied Sciences Germany

Walter Leal Filho

Volume Preface

The promotion of an inclusive and sustainable economic growth is known to be one of the keys towards the well-being of nations and – inter alia – of individuals. It is also one of the many drivers in the quest towards the implementation of the UN Sustainable Development Goals. From a macro perspective, trends towards the promotion of adequate work conditions have improved considerably over the past two decades. Due to a combination of legislation, peer pressure, and for simple economic reasons, the quality of the work environment has been raised and, inter alia, the productivity of the labor force. On the other hand, it is noticeable that the COVID-19 pandemic and its aftermath will lead to a decrease in economic growth and to higher levels of unemployment until a vaccine is found and reaches people across all continents. The fact that the global economy is expected to be growing at slower rates means that employment opportunities are likely to be reduced and unemployment and gender pay gap may be exacerbated. Therefore, it is important that due emphasis is given towards understanding and addressing the stressors which hinder sustainable economic development and which lead to a depletion in the quality of working conditions. In addition, there is a perceived need to identify, test, and implement measures which may lead to improved working conditions and provide a working environment which is healthy and safe. In this context, it should be mentioned that preserving the natural environment is one of the keys to support long-term economic growth, as the natural environment plays an important role in supporting a wide range of economic activities, that is, not only those which depend on natural resources such as timber or fisheries, but also on the integrity of ecosystem services such agriculture and transport in waterways. The SDGs as a whole and SDG8 in particular provide a new opportunity and offer a new impulse towards bringing the matter of economic growth and employment higher on the international agenda. The vision of a sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all can only be realized if both public and private actors work hand in hand and if all relevant stakeholders are involved. With this volume, we hope to be fostering a better understanding of the many factors which influence economic growth and the provision of adequate work conditions. This may, in turn, lead to a stronger driver to work towards

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Volume Preface

better and wider opportunities for gainful employment, with due considerations to vulnerable groups in the population on the one hand, and women, young people, and marginalized population groups on the other. We also hope that the contributions in this volume will provide a timely support towards the implementation of SDG8 and foster global efforts towards providing decent working conditions, and by doing so, offer a basis for sustained economic growth. October 2020

Walter Leal Filho Anabela Marisa Azul Luciana Brandli Amanda Lange Salvia Tony Wall

List of Topics

Section Editor: Dmitry Kurochkin Community-Based Socioeconomic Development Programs: A Catalyst for SDGs Corporate Spatial Responsibility and Sustainable Development Goals Creative Strategies for Sustainable Development in Small Cities Debt and Sustainable Development Decent Work in China Decent Work Promotion in India Decent Work: Conceptualization and Policy Impact Emerging Trends in Productive Employment Empirical Studies of Sex Trafficking Foreign Direct Investment and Decent Work in Sub-Saharan Africa Globalization, Democracy, and Inequality Job Supplies in Disadvantaged Neighborhoods: Role of Universal Work Maternity Protection at Work: Decent Work for All During Pregnancy and New Motherhood Public Policies for Just Transition: Local Content, Employment, and Human Capital SDGs Patterns Across the Globe: From Theory to Practice Smart Tourism and Smart Destinations for a Sustainable Future Supply Chain Accountability Through Extraterritorial Tortious Litigation Supporting Sustainability for a Decent Work and Economic Growth in Ghana Sustainability and Collective Bargaining from an Environmental Approach

Sustainable Premium Ready Meals for a Daily Nutritional Diet: Human Population Growing Demand Tourism and the Sustainable Development of the Baltic Sea Region Women and Agriculture: Addressing Hidden Work in Land-Based Livelihoods Women, Growth, and Empowerment Worker-Driven Initiatives to Tackle Modern Slavery Section Editor: Edurne A. Inigo Biobased Economy: Critical Foundation for Achieving Sustainable Development Goals Competencies for Sustainable Entrepreneurship Contribution of Enterprises in Achieving the Sustainable Development Goals Corporate Social Responsibility Manager: Job Roles, Challenges, and Individual Competencies Degrowth and the Sustainable Development Goals Development of Skills for Technological Change in ASEAN-5 Entrepreneurship: Opportunity Identification and Entrepreneurial Behavior Inclusive Business Models: Building Business Ecosystems for Resolving Deep-Rooted Sustainability Problems Innovation Systems for Sustainability Responsible Research and Innovation Social Entrepreneurship and Sustainable Development ix

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Sustainable Business Models Sustainable Business Strategies Sustainable Entrepreneurship: Composing Individual Processes and Collaborative Transformations Sustainable Innovation: Creating Solutions for Sustainable Development Sustainable Investment: Mobilizing Financial Capital for Sustainable Development Transitions to Sustainable Development Typologies of Sustainable Business Understanding Market Failure in the Developing Country Context Section Editor: Marco Tortora Aid for Trade (AfT): Leveraging Trade as a Booster for Economic Growth and Structural Changes in Developing Countries Anthropocene and Migration: Challenges in the Twenty-First Century Decent Work for Women Through Digital Social Network Fair Trade Movement and Market Development for Decent Work and Economic Growth Gender Inequality and Female Entrepreneurship in Developing Countries Health Status and Economic Growth Islamic Microfinance: A Tool of Alleviating Poverty and Ensuring Economic Peace Migrant Entrepreneurship Under Institutional Voids Social Agriculture and Its Related Tourist Activities Social Dialogue and the Future of Work Technical and Vocational Education and Training (TVET) in South Asia Section Editor: Nerise Johnson Creativity, Innovation, and Sustainable Development Green Business in the Context of the Sustainable Development Migrant Workers, Decent Work, and Economic Growth Social Business in the Context of Sustainable Development

List of Topics

Section Editor: Rimjhim M. Aggarwal Assessment of the Sustainability Reports: Evidence from Brazilian Listed Companies Conceptualizing Green Economies: Origins, Evolution, and Imperatives Decoupling of Economic Growth from Environmental Degradation Ecotourism and Sustainable Development Environmental Injustice and Economic Growth for Proof Processing Extraction Rates and the Environmental Impacts of Economic Growth in the Twenty-First Century Gender Roles, Cultural Norms, and Role of Income in Perceived Value: Women and Unpaid Work Manual Scavengers and Sustainable Development Material Footprint and Its Role in Agenda 2030 Poverty Reduction: Concept, Approaches, and Case Studies Preserving Culture in Meeting Sustainable Development Social Business for Sustainable Development: Cases from Bangladesh Section Editors: Rimjhim M. Aggarwal and Sonja Rewhorn Beyond GDP: Saving the Planet by Measuring the Effectiveness of Policies Section Editor: Rosa Maria Fernandez Discussing Approaches to Standard of Living Future-Proofing Oceans for Food Security and Poverty Alleviation Global Structures of Inequality and Unequal Distribution of Wealth Section Editor: Sonja Rewhorn Economic Importance of Agriculture for Poverty Reduction in Nigeria Factors of Production, Economic Growth, and Sustainable Development Human Trafficking as a Conflict Financing Measure

List of Topics

International Perspectives on Living Wages for Sustainable Livelihoods: Project Glow (Global Living Organisational Wage) Migrant Domestic Workers in the UK: Struggle and Resistance Moral Economy of Decent Work Sustainable Technology Impact on Agricultural Production Section Editor: Tony Wall Eradicating Child Labor: Ending Economic Exploitation of Children as an Objective of Sustainable Development Human Rights Compliance Assessment (HRCA) Precarious Work and Sustainable Development Protection of Labor Rights Recruitment and Use of Child Soldiers in International Law: Prohibition and Elimination Section Editor: Wim Lambrechts Corporate Social Responsibility and the Sustainable Development Goals (SDGs) Decreasing Youth Unemployment as a Way to Achieve Sustainable Development Demographic Challenges and Sustainable Development Domestic Material Consumption, Our Modern Economies, Lifestyles, and Environmental Sustainability

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Economic Growth, Technological Progress, and Employment Ethical and Sustainable Sourcing: Toward Strategic and Holistic Sustainable Supply Chain Management Inclusive Employment: A Global Concern Inclusive Growth in India: Issues and Challenges Informal Employment International Labour Organization: A Short History Life Cycle Sustainability Assessment Nurturing Career Development for Human Resource Sustainable Development Perceptions and Challenges of Design for Sustainable Behavior Remediation Programs for Decent Work Responsible Management for Innovative and Sustainable Firms in the Age of Complexity Socio-economic Impact Measurement and the World Business Council for Sustainable Development (WBCSD) Value Creation in a Circular Economy: An Interdisciplinary Approach Section Editors: Wim Lambrechts and Sonja Rewhorn Collective Bargaining Agreements: A Global Discourse on Decent Sustainable Living Importance of the Public Service in Achieving the UN SDGS

About the Editors

Walter Leal Filho (B.Sc., Ph.D., D.Sc., D.Phil., D.L., D.Litt., D.Ed.) is Professor and Director of the European School of Sustainability Science and Research, whose Headquarters are at the Hamburg University of Applied Sciences in Germany. He also holds the Chair of Environment and Technology at Manchester Metropolitan University, UK. He is Founding Editor of the International Journal of Sustainability in Higher Education and heads the Inter-University Sustainable Development Research Programme (IUSDRP), the world’s largest network of universities engaged on sustainable development research. He is also Editor-in-Chief of the World Sustainable Development series with Springer. Prof. Walter Leal serves on the editorial board of various journals. He has in excess of 400 publications to his credit, among which are groundbreaking books such as Universities as Living Labs for Sustainable Development: Supporting the Implementation of the Sustainable Development Goals, Social Responsibility and Sustainability, and Handbook of Sustainability Science and Research. He has nearly 30 years of field experience in project management and has a particular interest in the connections between sustainability, climate change adaptation, and human behavior.

Anabela Marisa Azul is a Researcher at the Center for Neuroscience and Cell Biology (CNC) and the Institute for Interdisciplinary Research at the University of Coimbra (III-UC, Portugal). She graduated in Biology at the UC, where she completed her Ph.D. degree in Biology, xiii

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About the Editors

specialization in Ecology, with collaboration from Ludwig-Maximilians-Universität München (LMU, München, Germany). Anabela became an Associate Researcher (Ciência 2009) at the Centre for Functional Ecology (CFE-UC), where she remained until 2014. There, she developed a holistic approach for advancing translational research that combined the sustainable development with innovation in food production and public scientific awareness (from early childhood). She currently is interested in functional attributes of fungi in the domain of metabolism, aging, and disease and approaches for knowledge coproduction in metabolism and sustainability research. She has coauthored over 40 scientific publications and book chapters, four books for children, two comics, and an animation. Luciana Brandli Ph.D., is an Associate Professor at the University of Passo Fundo, Brazil, working in the Ph.D. Program in Civil and Environmental Engineering. Her current research interests include sustainability in higher education and green campus, management of urban infrastructure and sustainable cities, and the Agenda 2030 for Sustainable Development. She supervises a number of master’s and doctoral students on engineering, environment, and sustainability issues and has in excess of 300 publications, including books, book chapters, and papers in refereed journals. Amanda Lange Salvia has a degree in Environmental Engineering from the University of Passo Fundo, Brazil, and graduate studies focused on sustainable cities and universities. Her work centers on the Sustainable Development Goals, the role of universities towards sustainability, and the impacts of climate change. Amanda has experience with international studies assessing aspects related to the 2030 Agenda and sustainability in higher education. She is a reviewer for various journals and is also a member of the editorial board of the International Journal of Sustainability in Higher Education.

About the Editors

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Tony Wall is Founder and Head of the International Centre for Thriving, a global-scale collaboration between business, arts, health, and education to deliver sustainable transformation for the common good. He is passionate about thriving and has published 200+ works, including articles in quartile 1 journals such as The International Journal of Human Resource Management and Vocations and Learning as well as global policy reports for the European Mentoring & Coaching Council in Brussels. Overall, his leadership and international impact in these areas have attracted numerous accolades including the prestigious Advance-HE National Teaching Fellowship and three Santander International Research Excellence Awards.

About the Section Editors

Rimjhim M. Aggarwal School of Sustainability Arizona State University Tempe, USA

Rosa Maria Fernandez Department of Social and Political Science Economics Programmes University of Chester Chester, UK

Edurne A. Inigo Communication, Philosophy and Technology Social Sciences Group Wageningen University and Research Wageningen, The Netherlands Deusto Business School University of Deusto San Sebastian, Spain xvii

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About the Section Editors

Nerise Johnson Leadership and Management QA Higher Education London, UK

Dmitry Kurochkin Faculty of Arts and Sciences Harvard University Cambridge, US

Wim Lambrechts Department of Marketing and Supply Chain Management Open University of the Netherlands Heerlen, The Netherlands

Sonja Rewhorn School of Social Sciences and Global Studies Faculty of Arts and Social Sciences The Open University Milton Keynes, UK

About the Section Editors

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Marco Tortora Polimoda Fashion Institute Florence, Italy Fair Association Florence, Italy

Tony Wall International Centre for Thriving University of Chester Chester, UK

Contributors

Kazi Mezbah Uddin Ahamad Department of Economics, Mawlana Bhashani Science and Technology University, Tangail, Bangladesh Meherun Ahmed Asian University for Women, Chattogram, Bangladesh O. F. Ajayi Department of Economics, Faculty of Social Sciences, Obafemi Awolowo University, Ile Ife, Osun State, Nigeria T. O. Akinbobola Department of Economics, Faculty of Social Sciences, Obafemi Awolowo University, Ile Ife, Osun State, Nigeria Hans-Hermann Albers Technical University Berlin, Berlin, Germany María Alló Jean Monnet Research Group on Competition and Development_C+D Group, Department of Economy, Faculty of Economics and Business, University of A Coruna, A Coruña, Spain Lorena Arocha Wilberforce Institute, University of Hull, Hull, UK Md Mahfuz Ashraf Entrepreneurship and Innovation, Crown Institute of Higher Education, North Sydney, Australia Nicolas Attamah Economics Department, Enugu State University of Science and Technology, Enugu, Nigeria Péter Bagoly-Simó Geography Department, Humboldt-Universität zu Berlin, Berlin, Germany

Geography

Education,

Margarida Bandeira Morais Department of Geography and Environment, London School of Economics, London, UK Maria Barreiro-Gen, University of Gävle, Gävle, Sweden University of A Coruna, A Coruna, Spain Alhaji S. I. Barrie Balance of Payment Analysis and External Relations Section, Research Department, Bank of Sierra Leone, Freetown, Sierra Leone Alistair Beames Operations Research and Logistics Group, Wageningen University, Wageningen, The Netherlands Maira Begalli Federal University of ABC (UFABC), São Bernardo do Campo, SP, Brazil xxi

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Kehinde Mary Bello Department of Economics, University, Ile-Ife, Nigeria

Contributors

Obafemi Awolowo

Julia Bello-Bravo Department of Food Science and Human Nutrition, Michigan State University, East Lansing, MI, USA Maria Paula Bertran Ribeirão Preto Law School, University of São Paulo, Ribeirão Preto, Brazil Hitesh Bhatia School of Business and Law, Navrachana University, Vadodara, Gujarat, India Nancy Bocken The International Institute for Industrial Environmental Economics (IIIEE), Lund University, Lund, Sweden TU Delft, Industrial Design Engineering, Delft, the Netherlands School of Business and Management, Lappeenranta University of Technology, Lappeenranta, Finland Sharon Bolton University of Stirling, Stirling, UK Anelí Bongers Faculty of Economics and Business, Department of Economics and Economic History, University of Malaga, Malaga, Spain Yakubu Aliyu Bununu Department of Urban and Regional Planning, Ahmadu Bello University, Zaria, Nigeria Brendan Burchell University of Cambridge, Cambridge, UK Sergio Canalda Criado University Pompeu Fabra, Barcelona, Spain Xuebing Cao Keele Business School, Keele University, Staffordshire, UK Laura Carballo Piñeiro Nippon Foundation Chair on Maritime Labour Law and Policy, World Maritime University, Malmö, Sweden Deborah Casalin Law and Development Research Group, University of Antwerp Law Faculty, Antwerp, Belgium Consuelo Chacartegui University Pompeu Fabra, Barcelona, Spain Roshni Chattopadhyay Advanced Centre for Women’s Studies, Tata Institute of Social Sciences, Mumbai, India Nikos Chatzistamoulou School of Economics and Research Laboratory on Socio-Economic and Environmental Sustainability – ReSEES, Athens University of Economics and Business, Athens, Greece Hong Yuh Ching Centro Universitário FEI, São Bernardo do Campo, Brazil Noushin Farjana Huda Chowdhury Department of Economics, Mawlana Bhashani Science and Technology University, Tangail, Bangladesh Shahana Afrose Chowdhury Kazi Shahid Foundation, Dhaka, Bangladesh Hermes Augusto Costa Faculty of Economics, Center for Social Studies, University of Coimbra, Coimbra, Portugal

Contributors

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Samara da Silva Neiva Center for Sustainable Development/Research Centre on Energy Efficiency and Sustainability (Greens), University of Southern Santa Catarina (UNISUL), Florianópolis, SC, Brazil Felipe Dall’Orsoletta University of Brasília, Brasília, Brazil José Baltazar Osório Salgueirinho de Andrade Guerra Center for Sustainable Development/Research Centre on Energy Efficiency and Sustainability (Greens), University of Southern Santa Catarina (UNISUL), Florianópolis, SC, Brazil Sara Aparecida de Paula Federal University of ABC (UFABC), São Bernardo do Campo, SP, Brazil Nina de Puy Kamp Leigh Day, London, UK Nikolay A. Dentchev Vrije Universiteit Brussel, Brussels, Belgium Gustavo Di Cesare Giannella Federal University of ABC (UFABC), São Bernardo do Campo, SP, Brazil Alberto do Amaral Júnior University of São Paulo Law School, São Paulo, Brazil Felix Kwabena Donkor College of Agriculture and Environmental Sciences, University of South Africa (UNISA), Johannesburg, South Africa Youssef Abdul Razzak Doughan Faculty of Agricultural and Food Sciences, American University of Beirut, Beirut, Lebanon Anna Maria Dzienis Department of East Asian Economic Studies, World Economy Research Institute, Collegium of World Economy, SGH Warsaw School of Economics, Warsaw, Poland Noraida Endut Centre for Research on Women and Gender (KANITA), Universiti Sains Malaysia (USM), Penang, Malaysia Gamze Erdem Türkelli Research Foundation – Flanders (FWO) (File Number: 12Q1719N), University of Antwerp Law and Development Research Group, Antwerp, Belgium Abentin Estim Borneo Marine Research Institute, Sabah, Kota Kinabalu, Sabah, Malaysia

Universiti Malaysia

Olushola Fashola Staffordshire Business School, Staffordshire University, Stoke-on-Trent, UK Julia Fernando Aston Business School, Aston University, Birmingham, UK Sergio Luiz Braga França Laboratory of Technology, Business Management and Environment (LATEC), Fluminense Federal University, Niteroi, Brazil Michael Francis Politics and International Relations, University of Chester, Chester, UK

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Leonardo Freire de Mello Federal University of ABC (UFABC), São Bernardo do Campo, SP, Brazil Tara Freude Faculty of Sustainability, Leuphana University, Lüneburg, Germany School of Sustainability, Arizona State University, Tempe, USA Paulo Guilherme Fuchs Centre for Sustainable Development/Research Centre on Energy Efficiency and Sustainability (Greens), Instituto Federal de Santa Catarina (IFSC), University of Southern Santa Catarina (UNISUL), Florianopolis, Brazil Carmen Gago-Cortés Economic Development and Social Sustainability Research Group (EDaSS), Department of Business, Faculty of Economics and Business, University of A Coruna, A Coruña, Spain Fabio Gerab Centro Universitário FEI, São Bernardo do Campo, Brazil Hebatallah Ghoneim Faculty of Management Technology, German University in Cairo, Cairo, Egypt Carlo Giannetto Department of Economics, University of Messina, Messina, Italy Joost Goedhart Operations Research and Logistics Group, Wageningen University, Wageningen, The Netherlands Ana M. M. Gonçalves Department of Life Sciences, Marine and Environmental Sciences Centre (MARE), University of Coimbra, Coimbra, Portugal Department of Biology and CESAM – Centre for Environmental and Marine Studies, University of Aveiro, Aveiro, Portugal Meena Gopal Advanced Centre for Women’s Studies, Tata Institute of Social Sciences, Mumbai, India Hali Healy Department of Anthropology and Development Studies, University of Johannesburg, Johannesburg, South Africa Pasi Heikkurinen Sustainability Research Institute, School of Earth and Environment, University of Leeds, Leeds, UK Faculty of Agriculture and Forestry, Department of Economics and Management, University of Helsinki, Helsinki, Finland Jan Hurst East of England, UK A. H. M. Belayeth Hussain Centre for Research on Women and Gender (KANITA), Universiti Sains Malaysia (USM), Penang, Malaysia Department of Sociology, Shahjalal University of Science and Technology (SUST), Sylhet, Bangladesh Edurne A. Inigo Communication, Philosophy and Technology, Social Sciences Group, Wageningen University and Research, Wageningen, The Netherlands Deusto Business School, University of Deusto, San Sebastian, Spain

Contributors

Contributors

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Nazari Ismail Department of Business Strategy and policy, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia Mohamed Jabbie Balance of Payment Analysis and External Relations Section, Research Department, Bank of Sierra Leone, Freetown, Sierra Leone Emerson Abraham Jackson Centre of West African Studies, University of Birmingham, Birmingham, UK Model Building Analysis Section, Research Department, Bank of Sierra Leone, Freetown, Sierra Leone Elijah E. S. Jackson Social Worker, Greater London Area, United Kingdom Hudson F. Jackson Business and Finance Department, Coopers School, Bromley, UK Nushrat Jahan Sher-e-Bangla Agricultural University, Dhaka, Bangladesh David Jakubowicz Laboratory of Technology, Business Management and Environment (LATEC), Fluminense Federal University, Niteroi, Brazil Zhe Jiang The York Management School, University of York, York, UK Matthew Johnson Faculty of Business, Economics and Social Sciences, University of Hamburg, Hamburg, Germany Christopher Ulua Kalu Economics Department, Nnamdi Azikiwe University, Awka, Nigeria Argyris Kanellopoulos Operations Research and Logistics Group, Wageningen University, Wageningen, The Netherlands Phoebe Koundouri School of Economics and Research Laboratory on Socio-Economic and Environmental Sustainability – ReSEES, Athens University of Economics and Business, Athens, Greece Harold Krikke Department of Marketing and Supply Chain Management, Open University of the Netherlands, Heerlen, Netherlands Elena G. Kropinova Immanuel Kant Baltic Federal University/Albertina, Kaliningrad, Russia Jayant Kumar Department of Business Economics, Faculty of Commerce, The Maharaja Sayajirao University of Baroda, Vadodara, Gujarat, India Knut Laaser University of Stirling, Stirling, UK Brandenburg University of Technology Cottbus–Senftenberg, Berlin, Germany Wim Lambrechts Department of Marketing and Supply Chain Management, Open University of the Netherlands, Heerlen, The Netherlands Maurizio Lanfranchi Department of Economics, University of Messina, Messina, Italy Thomas Lans Education and Learning Sciences, Wageningen University and Research, Wageningen, The Netherlands

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Contributors

Liliana Lizarazo Rodríguez University of Antwerp, Antwerpen, Belgium Thomas B. Long Centre for Sustainable Entrepreneurship, University of Groningen/Campus Fryslân, Leeuwarden, The Netherlands Asunción López-Arranz University of A Coruña, A Coruña, Spain Rodrigo Lozano University of Gävle, Gavle, Sweden Rob Lubberink Business Management and Organisation, Wageningen University, Wageningen, The Netherlands Anne Namatsi Lutomia Department of Entomology, Michigan State University, East Lansing, MI, USA Jameson Henry MacQueen Center for Sustainable Development/Research Centre on Energy Efficiency and Sustainability (Greens), University of Southern Santa Catarina (UNISUL), Florianópolis, SC, Brazil Hadia Majid Department of Economics, Lahore University of Management Sciences, Lahore, Pakistan Hiroaki Matsuura Shoin University, Atsugi, Japan Brian Matthews The University of British Columbia, Canada

Vancouver, BC,

Grzegorz Mazur Institute of International Business and Economics, Poznań University of Economics and Business, Poznań, Poland Ingrid Molderez KU Leuven, Brussels, Belgium Benedetto Molinari Faculty of Economics and Business, Department of Economics and Economic History, University of Malaga and RCEA, Malaga, Spain María Jesús Muñoz-Torres University Jaume I, Castellón de la Plana, Spain Julia Muraszkiewicz Trilateral Research, London, UK Mahreen Mustafa Asian University for Women, Chattogram, Bangladesh Saleem Mustafa Borneo Marine Research Institute, Universiti Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia Breno Henrique Tomiyoshi Nakao Center for Sustainable Development/ Research Centre on Energy Efficiency and Sustainability (Greens), University of Southern Santa Catarina (UNISUL), Florianópolis, SC, Brazil V. P. Nirmal Roy Indian Institute for Human Settlements, Bengaluru, Karnataka, India Abu Hanifa Md Noman Department of Finance and Banking, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia Tolulope Olarewaju Staffordshire University, Stoke-on-Trent, UK

Business

School,

Staffordshire

Contributors

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E. R. Osagie Research group HRM, HAN University of Applied Sciences, Nijmegen, The Netherlands Sigamani Panneer Department of Social Work, School of Social Sciences and Humanities, Central University of Tamil Nadu, Thiruvarur, Tamil Nadu, India Prabha Panth Department of Economics, Osmania University, Hyderabad, India Bindhulakshmi Pattadath Advanced Centre for Women’s Studies, Tata Institute of Social Sciences, Mumbai, India Sajeda Pervin Institute for Advanced Studies, University of Malaya, Kuala Lumpur, Malaysia Agnieszka Piasna European Trade Union Institute, Brussels, Belgium Xose Picatoste Department of Economics, University of A Coruna, A Coruna, Spain Lisa Ploum Education and Learning Sciences, Wageningen University and Research, Wageningen, The Netherlands Project GLOW Auckland, New Zealand Andreas Pyka Department of Innovation Economics, University of Hohenheim, Stuttgart, Germany Osvaldo Luiz Gonçalves Quelhas Laboratory of Technology, Business Management and Environment (LATEC), Fluminense Federal University, Niteroi, Brazil Devendra Rana Nyon, Switzerland Carlos Eduardo Raulino Centre for Sustainable Development/Research Centre on Energy Efficiency and Sustainability (Greens), Instituto Federal de Santa Catarina (IFSC), University of Southern Santa Catarina (UNISUL), Florianopolis, SC, Brazil Ben Robra Sustainability Research Institute, School of Earth and Environment, University of Leeds, Leeds, UK Jorge Rocha Institute of Geography and Spatial Planning, Universidade de Lisboa, Lisbon, Portugal Ernesto Rodriguez-Crespo Department of Economic Structure and Development Economics, Autonomous University of Madrid, Madrid, Spain David Rönnegard Department of Philosophy, Linguistics and Theory of Science, University of Gothenburg, Gothenburg, Sweden Md Nazmus Sadekin Department of Economics, Mawlana Bhashani Science and Technology University, Tangail, Bangladesh Joakim Sandberg Department of Philosophy, Linguistics and Theory of Science, University of Gothenburg, Gothenburg, Sweden

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Contributors

Judith Sanderse Open University of the Netherlands, Heerlen, Netherlands Numa Sarker Division of Education and Innovation, Ashraf Begum, North Sydney, Australia Stefan Schaltegger Centre for Sustainability Management (CSM), Leuphana University Lüneburg, Lüneburg, Germany Michael P. Schlaile Department of Innovation Economics, University of Hohenheim, Stuttgart, Germany Center for Applied Cultural Evolution, Eugene, OR, USA Despina Sdrali Department of Home Economics and Ecology, Harokopio University of Athens, Athens, Greece Kirsten Sehnbruch London School of Economics and Political Science, London, UK Rossita Shapawi Borneo Marine Research Institute, Universiti Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia Magdalena Śliwińska Institute of International Economy, University of Economics and Business, Poznań, Poland

Poznań

Zafir Somani Arizona State University, Tempe, AZ, USA S. P. Sreya Department of Social Work, School of Social Sciences and Humanities, Central University of Tamil Nadu, Thiruvarur, Tamil Nadu, India Bianca Stumbitz Centre for Enterprise and Economic Development Research, Middlesex University Business School, London, UK B. S. Sumalatha Department of Economics, Central University of Tamil Nadu, Thiruvarur, Tamil Nadu, India Andrea Lise Suriano Federal University of ABC (UFABC), São Bernardo do Campo, SP, Brazil Lech Suwala Technical University Berlin, Berlin, Germany Jagiellonian University, Cracow, Poland Edmund Tamuke Model Building Analysis Section, Research Department, Bank of Sierra Leone, Freetown, Sierra Leone Ruzanna Tarverdyan The Geneva Consensus Foundation, Geneva, Switzerland Sten Thore Centennial Fellow Emeritus, The University of Texas at Austin, Austin, TX, USA Job Timmermans Faculty of Military Sciences, Netherlands Defense Academy (NLDA), Breda, The Netherlands Michaela Tomchek University of Oxford, Oxford, UK Royal Agricultural University, Cirencester, UK

Contributors

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Marco Tortora Polimoda Fashion Institute, Florence, Italy Fair Association, Florence, Italy Stella Tsani Department of Economics, University of Ioannina, Ioannina, Greece Sophie Urmetzer Department of Innovation Economics, University of Hohenheim, Stuttgart, Germany Yvonne van der Meer Aachen-Maastricht Institute for Biobased Materials, Maastricht University, Geleen, The Netherlands Madhavi Venkatesan Department of Economics, Northeastern University, Boston, MA, USA R. Wesselink Education and Learning Sciences, Wageningen University and Research, Wageningen, The Netherlands Peter Wieltschnig Trilateral Research, London, UK

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Aid for Trade (AfT): Leveraging Trade as a Booster for Economic Growth and Structural Changes in Developing Countries Grzegorz Mazur Institute of International Business and Economics, Poznań University of Economics and Business, Poznań, Poland

infrastructure, building productive capacity, trade-related adjustment, and other trade-related needs) which address the complexity of developing countries’ impediments to trade and their traderelated needs. The strengthening of the initiative has also become one of the Agenda 2030 targets of making international trade “an engine for inclusive economic growth and poverty reduction” (UN 2015).

Synonyms

Introduction

Trade-related assistance; Trade-related ODA

The Sustainable Development Goals have defined a multidimensional framework for social, economic, and political transformation of developing countries. One of the most important pillars of this transformation is to create conditions in which all developing countries would enjoy sustained, inclusive, and sustainable economic growth. Only prosperous economies may lead to the decisive alleviation of poverty and social development in all its aspects. The centerpiece of economic profile of the Sustainable Development Goals (SDGs) is the target 8 which highlights the need of inclusive and sustainable economic growth and providing societies with quality job opportunities. The sustained and sustainable economic growth and development will not be succeeded without the increased access to financial services, new productive investments, and further development of infrastructure that are crucial for increasing

Definitions Aid for Trade

It is a World Trade Organization (WTO)-led initiative aimed at mobilizing and effectively directing resources to support developing countries in their trade performance and stronger participation in the global trading system. It was launched in 2006 and includes all trade-related actions/ programs of the development assistance offered by donors to developing countries. The initiative has been structured into six categories (trade policy and regulations, trade development, trade-related

© Springer Nature Switzerland AG 2021 W. Leal Filho et al. (eds.), Decent Work and Economic Growth, Encyclopedia of the UN Sustainable Development Goals, https://doi.org/10.1007/978-3-319-95867-5

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Aid for Trade (AfT): Leveraging Trade as a Booster for Economic Growth

productivity and the reduction of unemployment (UN 2015). Among the biggest challenges for developing countries, and for the least developed countries (LDCs) in particular, in their economic policies is to integrate strongly with the global trading system and make international trade as one of boosters of their economic growth. Although many developing countries have succeeded in trade expansion over last decades, there is still a group of countries which play a marginal role in international trade and global value chains. From this group a special attention should be addressed toward the LDCs, hosting more than one billion population, which account for only ca. 1% of global merchandize trade and only 0.69% of the world’s exports of commercial services (UNCTAD 2018; WTO 2019a). Although exports of those countries have benefited for many years from a preferential access to other countries’ markets through the generalized systems of preferences (e.g., DFQF market access schemes), in most cases they have not improved significantly their position in international trade. Those countries still face many institutional, legal, infrastructural, and structural impediments that hamper their full participation in global trading system and the full exploitation of trade as a pillar of economic growth and development. The necessity of improved export opportunities and capacities of the LDCs has been embodied in targets of the SDGs. Many of SDG targets call for the creation and/or completion of international trade rules and conditions that would fully respond to special needs of developing countries, including the LDCs in particular. The Agenda 2030 has stressed the importance of promoting “a universal, rules-based, open, transparent, predictable, inclusive, non-discriminatory and equitable multilateral trading system under the World Trade Organisation, as well as meaningful trade liberalisation” (UN 2015). The target SDG 10.2 calls to the implementation of “the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with WTO agreements” (UN 2015). Moreover, the SDG 17 includes – as operational elements for the renewed global partnership for

sustainable development – the set of trade-related targets (SDG 17.10–17.3) aimed at promoting non-discriminatory and equitable multilateral trading system, the conclusion of the WTO Doha Development Agenda (DDA), increasing the exports of developing countries and implementing DFQF market access with transparent and simple rules of origin for goods exported from the LDCs (UN 2015). Although the creation of transparent and equitable international trading system is a necessary prerequisite, it might be not enough to fully integrate some developing countries into the global system. Many countries need a special support that would help them to induce and complete structural changes, to overcome their domestic barriers, and to expand capacities in a way to fully utilize opportunities of the current global trading system. The necessity of those actions was directly embodied in the SDG 8, where the target 8.a called all signatories of the Agenda 2030 to “increase Aid for Trade (AfT) support for developing countries, in particular least developed countries, including through the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries” (UN 2015). Achieving this goal will be of paramount importance for improving developing countries’ position in international trade, their stronger integration with the global economy, and – ultimately and strategically – for achieving a sustained economic growth. As stated in the Agenda 2030 “International trade is an engine for inclusive economic growth and poverty reduction, and contributes to the promotion of sustainable development” (UN 2015).

Aid for Trade: The Birth of a Concept A support for stimulating trade in developing countries is not a new concept. The trade-related projects have accompanied development aid and trade preferences granted mostly by developed countries to the developing world in post-WWII period. This assistance has been however often criticized for its fragmented nature, political motivation, and the lack of beneficiaries’ ownership.

Aid for Trade (AfT): Leveraging Trade as a Booster for Economic Growth

The recipient country exercised the little autonomy in governing the funds, and the support was often tied with political and commercial strings (Cai 2008). At the same time, developing countries were granted, since the beginning of the 1970s, unilateral trade preferences under the generalized systems of preferences by most of developed countries. Those processes were witnessed by developing multilateral trading system and progressing liberalization of trade. The multilateral trading system, developed in the second half of the twentieth century, had not fully secured interests and has not utilized the potential of many developing countries. Although the general share of developing countries in global trade has increased over latest decades and one can find many examples of impressive growth of individual emerging economies, there has still been a considerable group of countries staying behind globalization and dynamically growing international trade volumes. While in 1948, when the General Agreement on Tariffs and Trade (GATT) entered into force, the share of African countries in world merchandised exports amounted to 7.3%, at the beginning of the twenty-first century, it was only 2.4% (WTO 2019a). In the 1950s the share of all LDCs in global trade exceeded 3.0%, while at the end of the century, it dropped to only 0.49% (1999) (UNCTAD 2019a). Whichever economic indicator was chosen, the picture of continuing marginalization of the LDCs in the world economy in the last decades of the previous century was confirmed. These trends in international trade were accompanied by the stagnation of public and private capital flows into the LDCs (de Vylder et al. 2001). This also applied to the scale of international aid addressed to the group, including trade-related development assistance. Over the decade of the 1990s, according to Organisation for Economic Co-operation and Development (OECD) statistics, total bilateral and multilateral aid commitments to trade policy and administration (which is today defined as one of components of Aid for Trade) to all least developed countries amounted to only 13.8 million USD per year (0.1% of total aid commitments) (UNCTAD 2004).

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Doha Development Agenda and Trade-Related Assistance The new round of WTO multilateral trade talks (DDA), launched in November 2001, put “development” as a central axis of future global trade architecture. The new agreement, according to expectations witnessing the launch of negotiation, was supposed to re-orient the multilateral trading system toward more supportive of development and more inclusive for developing countries (Cai 2008). The Doha Declaration (WTO 2001) that initiated new round of negotiations recognized the integration of the LDCs into the multilateral trading system as one of the most important challenges for the new round. This should be achieved by “meaningful market access, support for the diversification of their production and export base, and trade-related technical assistance and capacity building” (WTO 2001). Moreover, WTO ministers explicitly invoked to improve support for trade in developing countries by endorsing “the Integrated Framework for TradeRelated Technical Assistance to Least-Developed Countries (IF) as a viable model for LDCs’ trade development” (WTO 2001) and to increase contributions to the IF Trust Fund and other WTO extra budgetary trust funds in favor of the LDCs. The calls also included the enhancements and extension of the IF to new areas addressing supply-side constraints of beneficiary countries and to all least developed countries (WTO 2001).

Box 1. The Enhanced Integrated Framework for Trade-Related Technical Assistance to Least-Developed Countries (EIF)

In 1997 the High-Level Meeting on “Integrated Initiatives for Least-Developed Countries’ Trade Development,” held in Geneva as the aftermath of the WTO Singapore Ministerial Conference (1996) and the WTO Action Plan for least developed countries, decided to launch a new initiative on strengthening trade capacities of those countries. The new undertaking, known as (continued)

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Aid for Trade (AfT): Leveraging Trade as a Booster for Economic Growth

Box 1. The Enhanced Integrated Framework for Trade-Related Technical Assistance to Least-Developed Countries (EIF) (continued)

the Integrated Framework for TradeRelated Technical Assistance to Least Developed Countries (IF), was launched jointly by six core agencies/organizations active in trade and development: International Monetary Fund (IMF), International Trade Centre (ITC), United Nations Conference on Trade and Development (UNCTAD), United Nations Development Programme (UNDP), World Bank, and the WTO. The general aim of the initiative was to enhance the LDCs’ trade capacities and to integrate them into the global trading system through: • Assisting the LDCs in mainstreaming trade priorities into their national development plans and the Poverty Reduction Strategy Papers • Coordinating delivery of trade-related technical assistance and capacity building responding to needs defined by the LDCs (UN 2005, OECD 2019a) Although the initiative was accurate in the analysis of problems and identification of necessities to be addressed, and some actions were undertaken in several LDCs, the first years of the IF implementation unveiled some problems. The difficulties in the realization resulted mostly from different perceptions of donors and the LDCs on the objectives and purpose of the IF (better coordination vs. substantial additional funding) as well as from structural impediments to effective aid delivery as a consequence of insufficient coordination between different levels of governance (policy-makers and stakeholders in the beneficiary country, bilateral donors and multilateral agencies). The lack of ownership and insufficient prioritization of trade into development strategies hampered sufficient coordination between multilateral agencies/

organizations and bilateral donors in addressing trade capacity needs of the LDCs (Prowse 2010). In consequence, the IMF and the World Bank agreed that the IF should be enhanced and provided with additional resources, initiating the restructuration process. The Task Force (TF) for the Enhanced Integrated Framework, created by the Steering Committee of the IF, presented 1 year later specific recommendations on improvements. Works of the TF coincided with the Paris Declaration on aid effectiveness and the Declaration’s principles were inspirationa