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Культура Документы
Satoshi Sasaki
Specialist on Enterprise Development and Job Creation
ILO Office for China and Mongolia
The views expressed in this paper/presentation are the views of the author(s) and do not necessarily reflect the
views or policies of the Asian Development Bank (ADB), or its Board of Directors, or the governments they
represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement,
information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation
concerning the same.
1. Introduction
Based on the findings from the GBO pilot programme and the ILO’s experiences in
micro and small enterprise development in China, suggestions are made for the
development of future projects involving private sectors in the promotion of environment
protection and a just transition to a low carbon economy in an inclusive way.
The concept of “green jobs” is generally defined as work in agriculture, industry, services
and administration that contributing to preserving or restoring the quality of the
environment. Green jobs are typically facing the dual challenges, which are closely
linked therefore addressed simultaneously:
Drastic changes in production and consumption patterns are required to make economic
growth and development attuned to reduce the climate impact and environmental
degradation. Given the importance of sustainable enterprise development, it has been
emphasized the win-win relationship of environment and economic development aspects.
But relatively less efforts has been made to give attention to the social aspects of
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sustainable development, in particular to the issues of quantity and quality of
employment.
During the 11th Five-Year Plan period (2006-2010), the Chinese government has been
promoting the concept of “harmonious society” intending to reduce the gaps of wealth
distributions and services existing between the regional and individuals, amplified during
the previous periods. The latest discussions on the formulation of the 12th Five-Year Plan
(2011-2015) have focused more on the transformation of growth patters leading to better
economic prospects in a long run. The Government work report for 2010 highlighted
“sound” development rather than “fast” development for the first time.1 While
maintaining relatively high economic growth, the Communist party of China (CPC) made
commitment for enhance efforts to save energy and resources and build an
environmentally friendly society.
There is no complete analysis and the projection of green jobs in China. The ILO and the
China Academy of Social Sciences organized a study in 2009, trying to estimate the
potential green jobs in selected sectors.2
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The figures in the table shows huge employment gains expected in forestry and power
sectors, while net employment loss in Iron and Steel industries. The result of the study
suggests that the Green Jobs Initiative should support the emerging green industries, at
the same time it is important to take care of the workers who will lose their jobs.
Retrofitting of existing building saves energy, reduces emissions and protects the
environment and natural resources. It creates many job opportunities due to its labour-
intensive nature of work. Of the 42 billion square meters existing buildings in China,
assuming 1/3 to be retrofitted and 200 RMB per square meter, yield a market potential of
2.6 trillion RMB. In 2009, the “Response to Climate Change Report” pointed out that
building energy efficiency retrofits can add approximately 12.6 million new jobs.5
The intention of the ILO in promoting green jobs reflects three different aspects which
are conducive for the creation of sustainable enterprises:
In terms of job creation, the ILO supports its constituents in the countries to develop
more enterprises which contribute to solve the climate and environmental issues through
the market mechanism. Particularly, stronger focus should be made on the development
of micro, small and medium-sized enterprises that create majority of employment
opportunities, including the ones for migrant workers. Efforts should be made to promote
sustainable enterprise development by nurturing entrepreneurship, coping with the
increasing needs for skilled workers, improving business environment and financial
support for the entrepreneurs to start and grow their businesses. This is more on the
positive aspect of taking opportunities in emerging green markets.
Many green businesses already exist in China. But workers in these businesses are not
always well protected. For example, toxic chemicals used in e-waste recycling without
proper protection gears and without ventilation system installed in the workshops could
be harmful for the workers’ health. Many of such jobs in small enterprises are occupied
by migrant workers who have limited access to insurance against health problems and
occupational injury. Irregularity and delay of payments and lack of social dialogue
between employers and workers are typically observed at this level of enterprises in
China. The ILO green jobs programmes will foster the Decent Work Agenda6, which
some of the employment data in this table is average value.
5
Information provided by Dr. Kevin Mo in the Green Jobs Consultation Meeting in Beijing on 20 March
2010.
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The ILO’s organizational principles established by Juan Somavia, Director General, and supported by
tripartite constituents of the ILO.
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pursue not any kind of employments but better quality of employments that are protected
and sustainable.
No official guidelines have been established by the Ministry of Human Resources and
Social Security (MOHRSS) on the employment aspects of developing green economy in
China. The recent speech made by Mr. Zhang Xiaojian, Vice Minister, MOHRSS, well
summarized the current view of MOHRSS on the promotion of green jobs in the context
of employment promotion in China.7 He explained the five key issues:
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2.4.2. Towards formulation of green jobs policy guidance
The Green Jobs Policy Guidance could also be used by MOHRSS as a position paper of
the labour administration for policy coordination with other ministries promoting
transition to green economy at the national level.
The idea of Green Business Options (GBO) Training was conceived as part of the MDG
Achievement Fund Programme on Climate Change in 2008.8 The programme became the
first opportunity for the ILO to introduce the concept of green jobs in the context of
transition to a low carbon economy to China. The GBO is a training tool for sustainable
enterprise development, embodying triple bottoms of business development, job creation
and environment protection.
From the view point of job creation, SMEs contribute 80% of urban employment in
China.9 The economic and social stability of China largely depends on the capacity of
SMEs, in particular small enterprises, in absorbing labour force and make the economic
growth inclusive for the people. It is of strategic importance for the government to
support small enterprises to explore emerging business opportunities in transition to a low
carbon economy. The ILO decided to develop a new entrepreneurship training
programme, which supports entrepreneurs to develop business ideas in climate change
adaptation and environmental protection.
After the pre-testing of the training materials in 2009, eleven training institutions
organized the first pilot training from March to June 2010. The second pilot training is
currently undertaken since August 2010 in Jiangsu Province and the city of Chongqing.10
8
A technical Cooperation Project funded by the Government of Spain, implemented from 2008 to 2010. It
is an UN interagency project, participated by ten UN agencies in China. In this project, the ILO focused on
green jobs.
9
“Smaller firms to benefit from new definition of SMEs” Chinadaily.com, 27 October 2010
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The ILO and MOHRSS agreed the GBO pilot programme, supporting four cities in Jiangsu and
Chongqing to organize training of trainers (TOTs) and training of entrepreneurs (TOEs).
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3.1.2. Make micro and small businesses accessible to new market
opportunities
Many entrepreneurs and potential entrepreneurs understand there are different kinds of
environmental problems in China. But not many of them consider such problems as
business opportunities. The GBO training intends to provide entrepreneurs with a big
picture of climate change and environmental issues with tools to analyze emerging green
markets and help them in developing new business ideas.
The contributions of the world of work towards the realization of a low carbon economy
could be made mainly in the following areas:
The ILO has been promoting business start-up and management development training
programme known as Start and Improve Your Business (SIYB) for the last thirty years
worldwide. This training package focuses on the development of small enterprises,
particularly individuals who wish to start, improve or expand their businesses. It consists
of four training modules intended for learners at different stages of enterprise
development as follows: Generate Your Business Ideas (GYB), Start Your Business
(SYB), Improve Your Business (IYB) and Expand Your Business (EYB).
The GBO Training programme has been developed using GYB as the platform to
accommodate climate change and environmental issues explained systematically and lead
the learners to identify their own business ideas.
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3.2.3. Target groups
GBO was initially designed for youths, particularly university and college students and
graduates who are thinking of doing business as a career option. It was anticipated that
those students and graduates who already have scientific knowledge and skills might
have better prospects for entering to environment-related businesses. When the pilot
training programme was launched, it was found that not only university and college
students and graduates but also private business owners who are thinking of expanding
their businesses showed high interest in learning GBO.
At present, GBO is still suitable for potential entrepreneurs who are thinking of starting
businesses in climate change adaptation and environmental protection in the future.
However, existing entrepreneurs are not excluded in the training.
The initial idea of GBO was to make it a generic training, not addressing specific sector
issues. There are reasons why it is better to keep it as non-sector specific, from the view
point of enterprise development:
• The very nature of GBO is a tool for developing creative and unique business
ideas by learners. Selection of economic sectors in training may cause many
learners ended up with similar business ideas.
• GBO should be an opportunity for learners to know about business potentials
in various green sectors. This is particularly important for university and
college students and graduates who do not currently own businesses to
identify the potential industrial sectors that they could use their knowledge
and skills.
Different from students and graduates, existing entrepreneurs who wish to expand their
businesses needs more information specific to the sectors they may explore. To cope with
their needs, GBO training has developed two resource books in circular economy and
energy conservation industry. The use of resource books will be adopted in GBO training
courses case by case. The trainers are advised not to mix two different types of learners in
the same training course.
3.3.1. Start and Improve Your Business (SIYB) Training Platform in China
The Ministry of Human Resources and Social Security (MOHRSS) was first adopted the
SIYB training programme in China in 2001 as a way to facilitate alternative employment
opportunities in self-employment and small enterprise development, particularly for the
people having difficulties in finding jobs, including laid-off workers, migrant workers,
graduates, people with disability and retired military personnel. So far, the SIYB
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programme has been expanding through the national network of vocational training
institutions and certified SIYB trainers nationwide. The SIYB programme has been
institutionalized through the establishment of Employment Promotion Law in 2008. The
SIYB network has been administered by the China Employment Training Technical
Instruction Center (CETTIC) under MOHRSS, having 142 Master Trainers and 18,900
Trainers around the country.11
Based on the results to be obtained from the on-going pilot training in Jiangsu and
Chongqing, the GBO training is expected to roll out throughout the country using the
SIYB training platform. From the contacts with local governments in the GBO pilot
training, high participation for GBO training is anticipated by the cities facing
environmental problems and old industrial bases in the north-eastern provinces which are
required to develop alternative economic development strategies.
Having an extensive network of training institutions and trainers of SIYB as the platform
for rolling out the GBO training in China, the ILO has been focusing on Training of
Trainers (TOTs) to retrain SIYB trainers as GBO trainers. Typically, TOT takes one
week for the trainers to understand the technical contents as well as micro-teaching
sessions that could allow the trainers to demonstrate their ability to organize GBO
sessions with the guidance provided by the Master GBO trainers.
Currently, the ILO Beijing Office has two GBO Master Trainers, who have been
involved in the development of the GBO training. MOHRSS and the ILO expect to
develop a core team of potential GBO Master Trainers in the next two years.
The Chengdu Vocational and Technical College is one of the eleven training institutions
the ILO tested the GBO in April 2010. The college has 41 majors with ten thousand
students. The students from different majors have participated in the GBO pilot training,
allowing them to apply their own skills and experiences in creating green business ideas.
Among twenty participants, some students came up with practical green business ideas
and now developing new businesses at a small scale. For example, these ideas include:
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The college, through its Entrepreneurship Department, encourages students to consider
business start-up as a career option. Students can apply for financial support for testing
their business ideas and have small space as their business incubator. The college also
works closely with the local enterprise association, linking students’ activities with the
network of local enterprises.
3.4.2. Energy efficiency through LED and the electricity control device12
Mr. Yang Shunbo is a third year student of the Chengdu Vocational and Technical
College majoring in electronic science. He participated in the GBO pilot training in April
2010. The business idea he developed is to provide services in replacing electric bulbs
with LEDs and install a small controller that he developed to further reducing the
electoricity consumptions. He said his business intended to contribute to lighting of
buildings with low costs, no pollution and longer lifecycle.
He found so many electric bulbs were used in the college, average of 13 bulbs in one
lecture room. He thought it would reduce huge amount of energy if these are to be
replaced by LEDs. In addition, he had an idea of adding a small electricity control device
minimizing the supply of electricity to be consumed. Studying electronic science, he was
confident that he could develop such a device by himself. Participating in the GBO
training, he confirmed that his idea was in conformity with the government policy of
energy reduction in the maintenance of school buildings.
Obviously, his idea could be applied beyond school lightings. But he decided to test it in
his school first. He established the Yu Chen Cheng Electronic Technology Company with
two other students to install LEDs. The Chengdu Vocational and Technical College has
supported his business plan and provided 5,000 yuan for his project. With this, he had a
contract from the college to install 100 LEDs. The contract allows him to share the profit
to be made from the reduction of the electricity use with the college. At present, he has
already developed the electricity controlling device. With his colleagues, he is now
producing 1,000 pieces of the controller, which will add more profit to his business and
further reduce the energy consumptions in school lighting.
He is expecting graduation next year. Given the good business prospect in energy saving
in lighting, he is thinking of continuing and expanding his business to other areas. In his
business plan, his primary target is colleges and universities, which have similar needs
for energy reduction. He also thinks of expanding his business gradually to the areas of
interior illumination, pedestrian lights and street advertisement equipment in large cities.
Also, he is looking into the similar needs in the rural areas. He expect to consolidate his
business model in the first five years, develop and improve technology and expand his
business in the south-west China in the next ten years.
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3.5.1. Green sectors suitable for micro and small enterprise development
The GBO training intends to create an enabling environment for micro and small
businesses to participate in green businesses. The case of Mr. Yang in energy saving
showed the potential of individuals to use their own technical skills and develop new
green businesses. Obviously they are disadvantaged as compare to large enterprises,
which have high R & D capacity and strong financial capacity. However, there are niche
markets exist for micro entrepreneurs to explore green markets, including 3R (reduce,
reuse, recycle), eco-tourism and organic agriculture and building, which are less capital
intensive. But it doesn’t necessarily mean to exclude other areas of green businesses.
What is important for the GBO is allowing the participants to think flexibly in creating
unique business ideas.
In the business case of A/C adapter for multiple purposes, the student who produced it
sold 160 pieces in ten days through the Taobao13, which is a popular auction service on
internet in China. This case implies the high potential of using internet as a platform for
small businesses to access the markets of the poor without major investments. More than
four hundred million people have access to internet and more than eight hundred million
mobile phones are used in China.
The missing link of green business development by micro and small enterprises is in the
lack of information for them to understand the markets created by climate change and
environmental issues. Individuals tend to think climate change is something beyond their
control and nothing to do with the life of ordinary people. There has been no such
opportunity like the GBO to provide them with the information on of climate change and
environmental protection issues in a systematic and understandable way.
In some cases, participants in pilot training wanted to have more specific information
about the sectors that they are interested in exploring their businesses. Given the non-
sector specific approach of the GBO, it is necessary to strengthen the sector information
in the training and follow-up services by supplying additional informational materials and
link them to the government and private agencies involved in the specific sector
development. For example, water pollution of Taihe Lake is a major environmental
concern of the City of Wuxi. The city government of Wuxi has been supporting the GBO
strongly, expecting the contribution of private sector in solving the water pollution
problems.
13
Taobao at www.taobao.com
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The primary target group of the GBO training is the students and graduates of universities
and colleges. Given the low employment of graduates from tertiary education, at the level
of 67% after graduation in 2009, the GBO was expected to serve for dual purposes;
helping the young unemployed by facilitating the use of their skills and knowledge in
creating green businesses. But once the GBO pilot training was launched, the local
training institutions found high training needs of existing entrepreneurs, who are thinking
of expanding their businesses into green businesses, capitalizing on their technological
advantages and adding new value to their products and services to explore new markets.
The training needs of the existing entrepreneurs are that of more strategic way of thinking
required for the management, which goes beyond the capacity of GBO training. The
Global SIYB Programme of the ILO is now considering the necessity of developing new
training programme to capture the specific training needs of entrepreneurs in this respect.
Due to the small scale of business operations, the GBO learners who turned out to be
entrepreneurs are not yet sure about their business potentials. This is why they have not
thought about application of the intellectual property rights to protect their products. For
example, the electricity controller for LED, which was developed by Mr. Yang of the
Chengdu Vocational and Technology College, could be the core product for his business
development. But such a valuable device could be easily imitated by others, unless proper
protection is provided for his invention. The GBO training may need to add information
how entrepreneurs could protect their intellectual property rights. Also, it is useful for the
training institutions and schools, which provide business incubation services to GBO
learners, to support them in this respect.
Through the pilot testing of GBO training, local governments from different parts of the
country expressed their needs for GBO training. Towards the implementation of the 12th
five-year plan (2011-2015), it is clear that the central governments will require local
governments to adopt more distinctive measures in controlling environmental problems
and closing gaps between rich and poor. Typical examples of what local governments
expressed their interest in organizing GBO are:
Many of these cities mentioned their needs for capacity building of local training
institutions to organize the GBO training. They would like to have their own SIYB
trainers to be retrained as GBO trainers. It would be necessary for MOHRSS to have
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more systematic survey of local governments to analyze the needs for the adoption of
GBO.
The experiences from the GBO pilot training indicated the potential of micro and small
enterprises to take part in the development of green economy. Small enterprises could
create new employment opportunities, including for the poor people to participate in
green businesses. At the same time, small enterprises are likely to provide access for the
poor people to be consumers of green products and services.
In designing a project for promoting small green businesses, it should cover three
dimensions of sustainable development, i.e. economic, environment and social
dimensions, if the project is to be inclusive and prevent poor workers from further
deprivation. Particularly, the social dimension, including working conditions and
occupational safety measures, which are often neglected, should be integrated in the
promotion of green businesses.
4.2. Value chains analysis as a tool to find niche markets through upward
linkages for small enterprises
Indirect effects of employment creation should not be neglected in designing the project.
Green businesses cannot exist by themselves alone. They are linked to other businesses in
the local economy. To make to project more inclusive, it is useful to apply Value Chain
Analysis (VCA) to identify how the green products and services are produced and
consumed and how they could be linked to other businesses and support services. VCA
provide a participatory platform for stakeholders involved in the production and
marketing of selected products and services. Through VCA, the project may possibly
identify new employment opportunities to be created not only in the green businesses but
also in the other businesses linked to them.
Natural demands of consumers for green products and services may not be strong enough
to expand green businesses in a short term perspective. For example, it takes years to
come to the break-even point in replacing fluorescent lights with LEDs, while initial
investment required make consumers reluctant to buy LEDs. To leapfrogging of green
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enterprises in transition to a low-carbon economy, policy incentives, including financial
support, tax reduction should be available for green entrepreneurs and consumers.
There is fundamental lack of access for the poor to obtain information about the global
trend in transition to low-carbon economy. What environment protection meant for them
and what are economic opportunities emerging around them? Education and training
should play a key role in this respect. The GBO is an example of providing potential
micro entrepreneurs and self-employed persons with systematic understanding and
approaches to explore their business opportunities in green economy. Given the
expansion of mass media and internet connections, social marketing methods for
information dissemination to the poor should be considered as an option for knowledge
development on green businesses.
5. Conclusions
China is explicitly shifting its development policy to realize a low-carbon economy and
creating a more equitable society, departing from the rapid economic growth policy
started by Deng Xiaoping three decades ago. For the next decades, the Government
departments have to adopt new lows and regulations, guiding structural changes to be
made in industries and the life of Chinese people. For the last two years, the ILO has
been working with its constituents in China, introducing the concept of green jobs and
alerting the changes to be resulted in the world of work. At the same time, efforts have
been made to search for new employment opportunities in emerging green industries.
The Green Business Options (GBO) has been developed basing on the national
entrepreneurship training platform owned and operated by the Ministry of Human
Resources and Social Security (MOHRSS) in addressing the needs of small enterprises
and self-employers to grasp business opportunities in environmental protection and
reduction of GHG emissions. Promotion of micro and small enterprises in green economy
is a critical element for making the greening process more inclusive, because most of
workers from the poor segment of society are employed in micro and small enterprises.
Also, it is likely that small businesses could provide green products and services for the
poor and contribute to the local economic development.
Since the official GBO pilot programme has started in March 2010, it is still too early to
evaluate its effectiveness in creating small green businesses. But the green business ideas
developed by the students participated in the GBO pilot training in Chengdu imply the
ample possibility of micro enterprises to capture emerging green markets and employ
more people as businesses expand.
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crucial concern of the ILO to make a just transition by creating decent and socially
acceptable jobs in green enterprises.
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REFERENCE
Beijing Review, 2010. “Charting China’s new course” Beijing Review (28 October 2010)
www.bjreview.com
___, 2010. Report on Forum of Green Jobs for a Better Life, Unpublished internal
document
UNEP, ILO, IOE, ITUC, Green Jobs Initiative, 2008. Green Jobs: Towards decent work
in a sustainable, low-carbon world, by World Watch Institute
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