ILO Advocates Systems Approach to Unlock Decent Work Opportunities in MSME Supply Chains
SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Institutional Tags: Ministry of Commerce & Industry | Ministry of MSME
The International Labour Organization (ILO) brief argues that lasting improvements in working conditions among micro, small, and medium-sized enterprises (MSMEs) require addressing systemic barriers rather than surface-level symptoms. The brief highlights how lower-tier MSMEs struggle due to limited access to finance, poor infrastructure, and weak labor-law enforcement; constraints that hinder their compliance with standards essential for inclusion in higher-value supply chains. A systems approach enables stakeholders, including governments, buyers, employers’ and workers’ groups to diagnose these bottlenecks and co-design scalable interventions that can elevate productivity, wages, safety, and overall job quality. According to Dragan Radic, head of the ILO’s MSME Branch, this approach strengthens MSME competitiveness while promoting decent work; Dan Rees, Director of the ILO’s Supply Chain Action Programme, adds that it helps "unlock decent work opportunities where they’ve historically been out of reach." By anchoring solutions in systemic root causes, this method promises ripple effects across entire supply chains-from efficiency gains to improved worker welfare.
Relevant question for policy stakeholders: What role can India’s policy and enforcement agencies play in institutionalizing a systems approach to improve decent work standards across MSME supply chains, especially in high-growth and export-oriented sectors?
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