ECOSOC High-level Dialogue
Quality jobs key to reviving a weak global economy
As the effects of the global financial crisis linger, policymakers are considering the role of macroeconomic policy in bringing about sustainable development while creating more and better jobs.
NEW YORK - Global employment growth has slowed in recent years, and some 62 million jobs are now estimated to have been lost as a result of the crisis. Meanwhile, newly revised economic forecasts show future growth will fall short of restoring the global economy to pre-crisis levels.
As the UN discusses a new development paradigm beyond 2015, an increasing focus is being given to the role macroeconomic policies play in promoting sustainable growth in both developed and developing countries. While developing countries are expected to outperform their developed counterparts, the global economy remains susceptible to considerable financial and economic risks.
At a High-level Policy Dialogue held on 7 July under the auspices of the Economic and Social Council (ECOSOC), Heads of UN agencies met to discuss macroeconomic policymaking in the context of the post-2015 development agenda. They provided insights on how to revive economic growth, promote sustainable development and overcome the challenges of inequalities.
“It has been years since the global financial crisis erupted, but the world has still not returned to full running capacity,” said ECOSOC President, H.E. Mr Martin Sajdik, as he opened the discussion. He stressed that any new agenda must build on the foundations of the existing Millennium Development Goals (MDG), but also be forward-thinking enough to address uncertain challenges that lie ahead.
Mr. Wu Hongbo, UN Under-Secretary-General for Economic and Social Affairs and Moderator of the discussion, stated that “the global financial crisis and the great recession in its aftermath have exposed flaws in the broader economic policy framework worldwide. The new agenda will require broader, more coherent and integrated economic policy frameworks to deal with these issues.”
ILO Director-General, Guy Ryder, spoke about the threat of rising inequalities to social peace and economic prosperity. “Income and other forms of inequality are rising around the world, in some cases in alarming proportions” he said. Mr. Ryder pointed to the fact that consumption accounts for three-quarters of GDP. “Household incomes depend to a large extent on wages from work. If average real wages are stagnant so goes the economy.”
Mr. Ryder also expressed concern that the financial sector in its current regulatory environment is unlikely to help generate meaningful economic growth. “We have a situation currently where it is clear that private financial sector is finding it difficult to play its proper role in investing in the real economy and in job creating activities,” he said. “On the one-hand, we see stock markets rising, while small and medium-sized enterprises cite lack of access to capital as one of great barriers to their expansion.”
With respect to the environment, Mr. Ryder suggested job creation and environmental stewardship were not opposing objectives.
“The pursuit of jobs with respect for the environment is not utopian,” he said. “It is a practical reality that can build political support for the transformational changes that our generation must set in motion.” Preparing the workforce with relevant skills for greener industries and extending social protection would be needed to smooth the transition to a more environmentally sustainable development model.
Also on the panel was Achim Steiner, Executive Director of the UN’s Environment Programme (UNEP) who emphasized the potential for emerging green technologies to create more and better jobs. Meanwhile Yonov Frederick Agah of WTO stressed the role of trade liberalization has played in bringing about high levels of economic growth some countries. Min Zhu of the IMF highlighted persistent volatility in the global recovery following the crisis, while Mr Mahmoud Mohieldin of the World Bank described his organization’s approach to promoting inclusive growth through the expansion of safety nets and other measures.
Debates surrounding the post-2015 development agenda will culminate in a high-level summit to be held September 2015, at which UN member states will formally adopt the platform that will guide the development activities of the UN and international development agencies through the year 2030.
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For more information, please contact:
Kevin Cassidy, Senior Communications and External Relations,
ILO Office for the United Nations
Mobile: +1 646 707-2956
cassidy@ilo.org
As the UN discusses a new development paradigm beyond 2015, an increasing focus is being given to the role macroeconomic policies play in promoting sustainable growth in both developed and developing countries. While developing countries are expected to outperform their developed counterparts, the global economy remains susceptible to considerable financial and economic risks.
At a High-level Policy Dialogue held on 7 July under the auspices of the Economic and Social Council (ECOSOC), Heads of UN agencies met to discuss macroeconomic policymaking in the context of the post-2015 development agenda. They provided insights on how to revive economic growth, promote sustainable development and overcome the challenges of inequalities.
“It has been years since the global financial crisis erupted, but the world has still not returned to full running capacity,” said ECOSOC President, H.E. Mr Martin Sajdik, as he opened the discussion. He stressed that any new agenda must build on the foundations of the existing Millennium Development Goals (MDG), but also be forward-thinking enough to address uncertain challenges that lie ahead.
"Macroeconomic policies in support of a post-2015 sustainable development agenda"
Mr. Wu Hongbo, UN Under-Secretary-General for Economic and Social Affairs and Moderator of the discussion, stated that “the global financial crisis and the great recession in its aftermath have exposed flaws in the broader economic policy framework worldwide. The new agenda will require broader, more coherent and integrated economic policy frameworks to deal with these issues.”
ILO Director-General, Guy Ryder, spoke about the threat of rising inequalities to social peace and economic prosperity. “Income and other forms of inequality are rising around the world, in some cases in alarming proportions” he said. Mr. Ryder pointed to the fact that consumption accounts for three-quarters of GDP. “Household incomes depend to a large extent on wages from work. If average real wages are stagnant so goes the economy.”
Mr. Ryder also expressed concern that the financial sector in its current regulatory environment is unlikely to help generate meaningful economic growth. “We have a situation currently where it is clear that private financial sector is finding it difficult to play its proper role in investing in the real economy and in job creating activities,” he said. “On the one-hand, we see stock markets rising, while small and medium-sized enterprises cite lack of access to capital as one of great barriers to their expansion.”
With respect to the environment, Mr. Ryder suggested job creation and environmental stewardship were not opposing objectives.
“The pursuit of jobs with respect for the environment is not utopian,” he said. “It is a practical reality that can build political support for the transformational changes that our generation must set in motion.” Preparing the workforce with relevant skills for greener industries and extending social protection would be needed to smooth the transition to a more environmentally sustainable development model.
Also on the panel was Achim Steiner, Executive Director of the UN’s Environment Programme (UNEP) who emphasized the potential for emerging green technologies to create more and better jobs. Meanwhile Yonov Frederick Agah of WTO stressed the role of trade liberalization has played in bringing about high levels of economic growth some countries. Min Zhu of the IMF highlighted persistent volatility in the global recovery following the crisis, while Mr Mahmoud Mohieldin of the World Bank described his organization’s approach to promoting inclusive growth through the expansion of safety nets and other measures.
Debates surrounding the post-2015 development agenda will culminate in a high-level summit to be held September 2015, at which UN member states will formally adopt the platform that will guide the development activities of the UN and international development agencies through the year 2030.
************
For more information, please contact:
ILO Office for the United Nations
Mobile: +1 646 707-2956
cassidy@ilo.org