International Labor Organization (ILO)
International Labor Organization (ILO)
February 2003
Executive Summary
A team comprising Hege Gulli of NORAD, Peter Kooi of UNCDF/UNDP, and Brigit Helms and Alexia Latortue of CGAP conducted a Donor Peer Review of the International Labor Organization (ILO) in Geneva from 10-14 February, 2003. The review is part of a 17-agency initiative launched by Development Ministers, heads of agencies, and CGAP to concretely tackle aid effectiveness by using microfinance as a test case.
The Peer Review focused on the internal procedures, practices and processes of the ILO to identify the success factors and constraints that influence the effectiveness of the agency’s microfinance operations. Director-General Juan Somavia launched an invitation to ILO staff to participate in the review. The review team met with about 80 persons from the four sectors, REGIONS, and several offices reporting directly to the Director-General. In REGIONS, the team met with CODEV and called field offices. Other offices consulted include CABINET, GENDER, HRD, PROGRAM, EXREL, DCOMM, VERIF, TURIN, and the Washington, D.C., New York, and London branch offices. The team also consulted with Executive Directors Tapiola, Hultin, Diop, Paxton and Trémeaud. The team briefed Mr. Somavia on 13 February, and Mr. Hultin on 14 February. Other managers and staff attended a de-briefing session on 14 February.
During its November 2002 meeting, the Governing Body gave broad and strong encouragement for the ILO to continue its work on pro-poor financial services (GB.285./ESP/3 and GB.285.13). With this mandate, the ILO is well poised to further integrate microfinance into the Decent Work Agenda. The team hopes that this letter to management will contribute specific ideas on how the ILO can achieve greater coherence in its microfinance activities across the four sectors, and continue to develop an operational microfinance strategy on the basis of its distinctive mandate.
This letter outlines the ILO’s strengths and challenges, and presents a number of specific recommendations for improving quality and effectiveness. A matrix at the end of the letter provides a summary of the key findings and recommendations organized around six strategic areas. The Peer Review team’s recommendations fall into four main areas:
- Establish a shared vision and objectives for pro-poor financial services. The ILO should develop an Office-wide consensus on its vision and objectives in financial services, and articulate an operational strategy to underpin the attainment of its objectives.
- Develop a Framework Approach. The ILO should approach resource mobilization proactively and invite donors to buy wholesale into its operational strategy for microfinance.
- Clarify the function of the microfinance focal point. The ILO should build on SFP’s capacity and allocate resources for spreading good practices through a recognized focal point.
- Increase accountability and improve quality. The ILO should pursue the following five inter-related activities: integrate financial services in the Programme and Budget; link with specialized institutions; establish a system to “flag” projects with microfinance; avoid revolving funds; and track key performance indicators.
|
 |
|
