ILO and IsDB sign MoU to increase cooperation on labour market

The MoU was signed by IsDB President, Muhammad Sulaiman Al Jasser, and ILO Director-General, Gilbert F. Houngbo, during the Group of 20 Summit meeting in Bali, Indonesia.

The International Labour Organization (ILO) and the Islamic Development Bank (IsDB) have signed a Memorandum of Understanding (MoU) to increase cooperation on labour market and wider economic areas of mutual concern.

The MoU was signed by IsDB President, Muhammad Sulaiman Al Jasser, and ILO Director-General, Gilbert F. Houngbo, during the Group of 20 Summit meeting in Bali, Indonesia.

"The ILO warmly welcomes the signature of the MoU with our partners at the IsDB, to set the seal on the strong interest from both sides to affirm our growing collaboration around key topics of mutual interest," said ILO Director-General Houngbo. "Both sides are already engaged in joint initiatives, and the MoU will further frame and guide this collaboration in order to better support mutual member states."

Joint work will pool the financial and technical resources from the two institutions to assist Member States in making investments and taking action in a number of priority areas. These include skills development and youth employment, as well as women's economic empowerment, where work will focus on ensuring that young people and women obtain employable skills and support in moving from learning to earning.

"I trust that the signing of this MOU, which involves a Joint Action Plan, provides a framework that facilitates collaboration and cooperation between the IsDB and ILO," said IsDB President Al Jasser. "Besides co-financing, we can blend ILO grant resources with IsDB loans and develop joint financial mechanisms to promote human progress in IsDB member countries."

Another joint priority area is the common agenda on a just transition to a green economy. The ILO and IsDB will provide advice to Member States on the right mix of policies and financing needed to ensure a just transition in the context of climate change.

The MoU will also pave the way towards increased collaboration on producing research and data on labour market issues and on the synthesis between employment, trade and investment. The two institutions will similarly increase joint work support countries in fragile contexts and fragile situations.

Current policy engagement between the IsDB and the ILO is taking place across a number of fields, mainly related to youth employment and skills development in Afghanistan and the Arab States region.Existing collaboration in promoting a just transition to a green economy produced the Youth Green Skills Accelerator Challenge, the winners of which were announced in a joint IsDB/ILO event at the COP27 conference in Egypt earlier this month.