GENEVA (ILO News) - Faced with a mounting toll of job losses and poverty - the vast majority in the developing world - the International Labour Organization (ILO) today opened a three-day employment summit aimed at tackling looming recession and the economic fallout of September 11.
In a keynote address to some 700 political and economic world leaders, UN Secretary-General, Kofi Annan, warned that the ramifications of the events of September 11 went "far beyond peace and security concerns". Citing ILO estimates of 24 million unemployed and World Bank figures estimating a further 15 million who could be thrown into poverty, he warned of a "severe and multiple impact on human security" worldwide.
The Nobel Peace Prize laureate called for a global response to "rebuild and strengthen the confidence on which international economic integration depends" and endorsed the ILO's "Global Agenda For Employment," to be adopted here this week, which calls for an alliance of the United Nations, specialized agencies, the Bretton Woods Institutions, national policymakers, employers and trade unions.
ILO Director-General Juan Somavia, who spoke after Kofi Annan, said "we are staring into the face of the first synchronized world recession of the globalization era." Mr. Somavia said the estimates of job losses and declining growth since September 11, though dire, could still be "conservative," adding that the events could add millions more to the current tally of some 1 billion people globally who are either unemployed, underemployed or "working poor" living on less than one dollar a day.
The Director-General called for a "global stimulus package for the world economy" saying that this could open the way to economic expansion to meet the crisis. However, he warned against inequitable application of such expansion, saying, "the biggest danger would be to apply expansionary policies in the North and more austerity and restrictive structural adjustment to the South."
The Forum also heard statements by Mr. Poul Nyrup Rasmussen, Prime Minister, Denmark; Ms. Laurette Onkelinx, Vice Prime Minister and Minister of Employment and Equal Opportunities, Belgium speaking as President of he Council of EU Ministers of Labour; Mr. Zhang Zuoji, Minister of Labour, China; Mr. Pascal Couchepin, Minister for Economic Affairs, Switzerland; Mr. Rubens Ricupero, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD); Mr. Bill Jordan, General Secretary, International Confederation of Free Trade Unions (ICFTU); and, Mr. François Perigot, President, International Organization of Employers (IOE). The Forum is to conclude Saturday after considering further steps to realize the Global Agenda for Employment.
Below is a summary of statements made at the Forum today
In his inaugural statement, UN Secretary-General Kofi Annan recalled that "just over a month ago, tragic events brought home to us that our complex world has become even more uncertain, and that the need for the international community to work together in confronting new threats is greater than ever before. The impact of 11 September is now reverberating around the world. A sense of vulnerability, and a search for appropriate responses, are reshaping international relations. The ramifications of the 11 September go far beyond peace and security concerns; they will also have a severe and multiple impact on human security. Nobody can forecast with precision the economic and social consequences. But we already know that poor economies will pay the highest price. We know millions of people will become more vulnerable to poverty than before. Our mission to improve the lives of peoples everywhere has become more important and urgent than ever."
"We can say that the only way to meet our Millennium goals is to ensure that globalization works for all," the Secretary-General said. "In our interdependent global economy, that means we must work together and work better together. It means we must rebuild and strengthen the confidence on which international economic integration depends."
ILO Director-General Juan Somavia, in his opening statement, underlined "we are suffering the combined effect of the unresolved problems of persistent poverty, inequality and a process of globalization whose benefits are not reaching enough people. This is exacerbated by the accelerating downturn in the economic cycle of all major economies which began this year and the multifaceted impact of the September 11. We are starring into the face of the first synchronized world recession of the globalization era. At the ILO, we have estimated that the decline in global growth - much of which was apparent even prior to 11 September - could put 24 million people at the risk of job loss or declining incomes next year. But before these events we were already facing a major decent work deficit in the world."
In today's recessionary context, there is no political space for belt-tightening in most developing countries, Mr. Somavia said, adding, "This is a delicate moment. In appropriate policies would test millions of families beyond the limits of human endurance. They would deepen poverty and endanger the fundamentals of democracy. Avoiding these dangers is as much a matter of self-interest for the North as of solidarity with the South."
Prime Minister of Denmark, Poul Nyrup Rasmussen, said "we are living in a divided world where 1.5 billion people live under poverty with an income of US$1 per day". He said "nations should do more to close the gap between rich and poor." The Prime Minister also stressed that employment was instrumental in the fight against exclusion.
Laurette Onkelink, Deputy Prime Minister and Minister of Labour of Belgium, noted that Governments and social partners could no longer see problems of employment in an exclusively national context, adding "The interdependence of our economies obligates us to work in common and in solidarity." There is no true social development without vigorous policies leading to full employment and without offering the possibility for all men and women to satisfy their want through work, she said.
Zhang Zouji, China's Minister of Labour, noted that "It is especially difficult for the developing countries to meet the pressing challenge brought by the new circumstances both in terms of overall national strength and quality of the working population. We should take more effective measures to address this issue with extraordinary courage so as to attain greater achievement. With a population of 1.26 billion and one fifth of the world labour force, his country was confronted with a pressing task of employment promotion."
Pascal Couchepin, Minister for Economic Affairs of Switzerland, observed that the fear of a lack of jobs had surfaced due to trade with countries using cheap labour. The unequal divisions of wealth in the world were another cause for concern. He said that in light of the anti-globalization protests in Seattle, Götenborg and Genoa, it was necessary to provide a response to these challenges.
Bill Jordan, General Secretary of the International Confederation of Free Trade Unions, noted that 11 September had been the end of "business as usual" in the world, adding there was a compelling need to respond to the loss of jobs due to the attacks. He called for new initiatives in developing and developed countries alike designed to put people back to work, adding that the voices of those people should be heard within the context of the WTO trade negotiations.
François Perigot, President of the International Organization of Employers, pointed out that enterprises should have favourable environment and maximum level of flexibility in order to maintain and develop employment. In addition, Governments, workers and employers should carry out training programmes on perpetual basis. He said "Today, globalization has become a scapegoat. In many societies, transparency, clear decisions and the lack of participation of citizens do not exist. In order that a market economy become effective, potential benefits should be maximized and risks minimized. We should be aware of the traditional view of employment, it should be approached from a different angle."
Rubens Ricupero, Secretary-General of UNCTAD, said "today's globalization did not invent mass unemployment or inequality. However, it has certainly failed to overcome these problems and has even added further dimensions to them: an increase in job insecurity and in the precariousness of employment. Until the current recession struck, the US was in the midst of demonstrating that mass unemployment can be reversed through a combination of productive investment, sustained high growth and technological innovation. As the world economy slows down in the wake of the terrorist attacks and the US recession, it is more important than ever for the leading economies to coordinate a bold and vigorous programme of monetary and fiscal expansion and job creation... People will not accept insecurity and anxiety in their lives."