The SMSD Framework is a quantitative tool designed to evaluate economic policies and investments with a focus on sustainability and social impact. Developed by the International Labour Organization (ILO), SMSD supports policymakers and their partners (such as public development banks) in assessing public investment, economic trends, and social outcomes to guide decision-making and improve the design of policies and investments. It provides a structured approach to analyzing interventions such as investments and comprehensive policy changes by simulating policy scenarios. It is based on ILO’s unique databases (ILO Microdata Repository) as well as national accounts data produced in partnerhips with National Statistical Offices.
It allows policymakers and their partners to answer critical questions such as:
- What are the employment effects – and quality of employment - of specific investments?
- How do different social protection policies impact household income and inequality?
- What financing mechanisms best support sustainable economic growth without undermining fiscal stability?