Economic Development and Employment

Economic growth is a fundamental requirement for the development of a country. For companies to invest and an economy to grow, stable environments, efficient institutions, functioning markets and access to sustainable financial services are all required. GIZ assists its partner countries in improving their economic framework conditions, removing bureaucratic obstacles and establishing suitable promotional structures.

Economic development and employment

Employment and Labour Markets

According to the International Labour Organization (ILO), more than 200 million people around the world are currently unemployed. This means that they have little chance of taking charge of their own lives and participating in social and economic development. Developing countries need more and better jobs and a qualified workforce. These are essential factors for ensuring that people can make a living from their work.

Technical and Vocational Education and Training (TVET)

Developing countries need support with vocational training. After all, countries need a well-trained workforce to be competitive. Vocational training is a central pillar of sustainable and viable economic development. It contributes to the achievement of all 17 Sustainable Development Goals (SDGs) and thus promotes a lifestyle that is economically, socially and ecologically sustainable

Digital Economy

Digitalization will have a major impact on the future economic and social development of countries and regions. Because digital solutions make it possible to skip traditional development steps, digitalisation has the potential to drive sustainable development and promote a better quality of life in developing and emerging countries. 

Trade

Trade makes a major contribution to economic development and poverty reduction. Integration into the global economy provides access to new export markets and makes it easier to import inputs and technology. This, in turn, boosts productivity, economic growth and employment.

Insurance

Many people in developing and emerging countries are not adequately protected against the consequences of everyday risks, natural disasters or failed harvests. Insurance enables the financial consequences of shocks to be dealt with efficiently, contributes to securing livelihoods, and can help prevent people from sliding into poverty.

Economic Policy

Economic-policy approaches and instruments play an important role in the Sustainable Development Goals (SDGs) of the 2030 Agenda. They have a significant impact on not only the economic situation of the partner countries of German development cooperation, but also their social and ecological development. The basis to pursue the SDGs are stable framework conditions, efficient institutions, functioning markets and effective economic incentives.

Agricultural Trade and Standards

More and more consumers worldwide are paying attention to social and ecological standards and to the health safety of products. For agricultural producers in developing countries, this actually positive trend can become a hurdle. They too must meet the required standards in order to participate in international trade. Not only individual producers are affected, but also all rural regions, which live mainly from the marketing of their agricultural products.

Education

Social progress, social cohesion, economic growth, functioning democratic structures – education is an important basis for all of this. That is why GIZ supports the development of effective education systems in its partner countries.

Agricultural-based Economic Development

Agriculture is the main driver of development in most rural areas. Demand for staple foods, agricultural commodities and - increasingly - processed food is growing in developing countries. To meet these needs, the agricultural and food sectors must be modernized. A strong agricultural economy brings social progress by increasing productivity, employment and income.  

Green Economy

Economic growth and a fair distribution of wealth are the prerequisites for poverty reduction and sustainable development. However, if growth and development are bought at too high a cost in terms of consumption and emissions, future generations will suffer the consequences. “Green” growth requires new economic structures. GIZ advises its partner countries on the changeover.

Higher Education

Universities and research institutions are drivers of economic and social development. They train experts and managers who put their higher qualifications to good use by making companies more productive and more innovative. The more relevant university courses are to actual practice and the labour market, the better graduates’ prospects of finding employment.

Inclusive Finance

In many developing countries, poor people have no access to financial services. Financial inclusion aims to change this. It means that households and microenterprises receive access to microloans and financial services from formal providers on fair and transparent terms. This includes savings schemes, payment systems and insurance.

Public Finance

Ideally, a country’s revenue system reflects a consensus of the whole of its society, and adequate fiscal and customs revenues should finance development goals and provide incentives for economic growth. GIZ advises its partners on creating a fair, transparent, effective and efficient revenue system.

Regional and Sectoral Economic Development

This topic encompasses the spatial (regional/local) as well as the industry (sectoral) focused approach to economic development. Regional and sectoral approaches can also be combined to achieve greater effectiveness.

Agricultural Policy and Rural Development

Living conditions in the rural regions of developing countries are often very poor. Poverty and hunger are widespread, basic services are not guaranteed, schools and hospitals are frequently inaccessible, and the rural population is often excluded from political co-determination. Rural development and a strong agricultural sector reduce poverty and form the basis for sustainable economic development at all levels.

Anti-Corruption & Standards of Integrity

In many countries, public administrations are under-performing. Their work is not transparent, efficient or effective. In many cases, this is because they lack clear structures and processes or are not motivated to use such processes and structures. Corruption is a major problem, affecting poor and disadvantaged populations in particular. GIZ works to ensure that administrations work efficiently and with integrity to provide citizens with access to public services.

Displacement and Migration

People flee their home country for a wide range of reasons, including war, violence, persecution for political or religious reasons, and better employment and training opportunities.  Displacement and migration represent major challenges - for the individuals affected, their countries of origin and the host countries. GIZ’s work around the world helps tackle these challenges and create long-term prospects for people.

Forced Displacement and Migration

Rural Agricultural and SME Finance

A large proportion of the poor in GIZ’s partner countries live in rural regions, where it is still difficult for individuals and small and medium-sized enterprises (SMEs) to use financial services. Factors such as low population density, long distances and weather risks all play a role in this. Furthermore, financial service providers often lack the knowledge and approaches needed to finance SMEs, especially those in agricultural production.

Natural Resources

Today, about three quarters of the world's poor live in countries whose economies are dominated by commodities. This is despite the fact that natural resource deposits have the potential to drive a country's development, reduce financial dependence on external donors and increase the prosperity of the population. In many countries, however, they have an opposite effect: state structures are weakened, the environment is destroyed, and social conflicts are created or exacerbated.

Security

The security situation in many partner countries for international cooperation is very tense. People in these countries live with armed conflict and the risk of frequent outbreaks of violence. The state must protect its citizens and respect democracy and human rights. GIZ strengthens the state’s legitimate monopoly on the use of force.

Green and Climate Finance

From an economic point of view, a stable climate is a global public good. Measures for climate protection and adaptation to climate change cost money. An appropriate carbon price should actually ensure that environmental damage can be compensated. However, this is not the case. In order to cover the costs of climate protection and adaptation measures nevertheless, climate financing is used.

Investments

Extensive public and private investment is required to ensure sufficient economic and employment growth for sustainable development. The greatest obstacles to private investment are considered to be the absence or ineffectiveness of regulatory frameworks, a lack of projects and companies that are ready for financing, and inadequate access to financing instruments.

Urbanization

Most people around the world now live in towns and cities. GIZ sees rapid global urbanisation as an opportunity to help shape dignified and environmentally sound lifestyles.  It promotes regional development to create equality of opportunity and tap into regional potential.

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