32
WO R L D D E V E LO P M E N T R E P O RT 2 0 1 3
FIGURE 20
Which countries succeeded at addressing their jobs challenges and how?
Jobs challenge
Which countries and which policies?
Agrarian economies
Vietnam Land reform, agricultural extension, and market incentives
Conflict-affected countries
Rwanda Reintegration of former combatants and business reforms
Urbanizing countries
Korea, Rep. Land-use policies and comprehensive urban planning
Resource-rich countries
Chile Fiscal stability rules and export-oriented policies
Small island nations
Tonga Active use of return migration agreements
Countries with high youth unemployment
Slovenia Competition in product markets through trade integration
Formalizing countries
Brazil Noncontributory programs, rules simplified and enforced
Aging societies
Poland Disability and pension reform, higher retirement age
Source: World Development Report 2013 team.
nation, and lack of voice suggest that ratification on its own is not sufficient. Trade agreements are a potential instrument for international coordination on rights. They can incorporate incentives for attention to voice and working conditions by linking trade access to the adoption and enforcement of labor laws and standards. Whether linking rights to trade actually leads to better outcomes for workers on either side of a trade agreement is less clear. Labor clauses can be used as a protectionist tool, undermining trade and employment opportunities in developing countries. Moreover, in the absence of capacity and institutions to monitor and enforce compliance, trade agreements on their own can be weak instruments. For instance, Cambodia’s successful bilateral trade agreement with the United States was accompa-
nied by two projects, one to build capacity for monitoring working conditions in garment factories and one to support an arbitration council to resolve collective labor disputes.129 Beyond the initiatives of governments through conventions and trade agreements, a growing emphasis is being placed on private sector accountability and the broader corporate social responsibility (CSR) agenda, whereby companies voluntarily bring social and environmental concerns into their operations.130 Codes of conduct are most likely to be adopted by companies based in the European Union and North America, which then make engagement with labor standards a condition of business with suppliers. But there is limited evidence on the extent to which codes of conduct translate into improved enforcement of standards. Be-