Mr Secretary-General,
Ministers,
Ladies and gentlemen,

Welcome to the ILO and to this Global Employment Forum.

When the Secretary-General and Professor Stiglitz accepted our invitation to take part we, of course, did not know that we would be welcoming two Nobel Prize Laureates to our house. Nor, I imagine, did they! We are delighted to have them. We in the United Nations system feel so proud that our leader has been so honoured and our institution so distinguished.

We meet as a chain of events is unfolding which is posing threats to the livelihood and security of many people and their families throughout the world.

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 chilling events of 11 September.

We are staring into the face of the first synchronized world recession of the globalization era.

At 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. That number could be conservative.

But before these events we were already facing a major decent work deficit in the world. In the course of the 1990's, global unemployment grew from 100 to 160 million. Today, there are about one billion people who are unemployed, underemployed or working poor. Eighty per cent of the working age population do not have access to basic social protection.

All of this represents a major crisis of human security. This is the chronic social ill of our age. It is felt more acutely since 11 September, but it was there before. Too many people feel they have lost control of their own destiny.

So this Forum is about what to do about it. After all, the biggest security risk, affecting the largest numbers of people worldwide are unemployment and the resulting poverty. The unemployment figures I have quoted for next year are just projections. If we apply the right policies, we can stop them becoming reality. That is the objective of the ILO Decent Work Agenda and the Global Employment proposals before you.

The ILO's own most historic texts remind us of our values and can help guide our thinking today. They were written in the wake of terrible human conflict - tragic wars of unprecedented dimensions.

Our 1919 Constitution says that universal and lasting peace can be established only if it is based upon social justice.

And the 1944 Declaration of Philadelphia acknowledges that poverty anywhere is a threat to prosperity everywhere.

These are profound truths which the history of the 20^th century confirmed over and over again. And they are the demands that people place on their leaders.

Whether in government or business, in politics or civil society, those with the capacity to make things happen and to make things better, are under scrutiny. They are asked to be responsible. To deliver solutions. To use their power for the common good.

We in international organizations have only one good option: a coordinated international response. A response that is sensitive to people's uncertainties and that balances well economic and social goals. The ILO's contribution is based on the experience not only of governments but of representative organizations of workers and employers. They are the actors of the real economy at the enterprise level and in the workplace. They know well how macroeconomic decisions affect the lives of families. Their voices and their involvement are key if we want to get the right answers.

The first step is a decisive rejection of isolationism and protectionism as a response to crisis.

History shows us where that leads. Open societies and open economies are crucial to our better common future.

So success in multilateral negotiations becomes very important. For example in Doha - and also afterwards - when financing for development is discussed in Monterrey and sustainable development in Johannesburg.

To start with, success at Doha means an outcome which offers real and practical opportunities for developing countries, for working families and for the unemployed. Which makes trade a locomotive of equitable growth and decent work creation. Which reinforces human security rather than erodes it. All of this is attainable if the rules are fair and the will is there.

But reliance on international trade in a global recession is not sufficient. Countries must look to build their internal markets and social capital. To develop women and men's entrepreneurial skills. To create a supportive environment for small firms to thrive and to increase domestic consumption.

Second, we need a global stimulus package for the world economy.

Many developed countries have already embarked on expansionary paths. When they have the means to do so, financial markets have not penalized them. And many do have the means. More can be done in some countries by easing monetary policies in response to the downturn. This is of course central to reestablishing sustainable growth of the global economy.

A supportive environment is needed for developing countries to follow the same path. They need access to the resource base that opens for them the expansionary policy options needed in the face of recession. Debt relief and rescheduling, increased liquidity, ODA and other external flows all have their role.

There are critical issues of governance involved. By tackling them well developing countries can set in motion virtuous circles which promote increased and sustained flows of private and public investment.

The biggest danger would be to apply expansionary policies in the North and more austerity and restrictive structural adjustment to the South.

In today's recessionary context, there is no political space for belt-tightening in most developing countries. This is a delicate moment. Inappropriate 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 people of the South.

That is why we need a productive response based on enterprise and job creation in all countries. We need to deal imaginatively with the credit squeeze of companies and the income squeeze on workers. And those suffering lay-offs or living in the abyss of the informal economy need proper social protection mechanisms and safety nets. They are the foundation to reestablish consumer and investor confidence.

We have the most pressing responsibility to care about the poorest of the poor in all societies, and the particular needs of the hardest hit countries. Now is the moment for full commitment to the New African Initiative.

We must expand demand without compromising sound macro-economic policies, in the context of each country's realities. As a Latin American who has lived the nightmare of hyper-inflation I know well what it does to societies and that it hits the poor the hardest.

Third, we must confront the fact that globalization today is facing a crisis of legitimacy.

It is sad that the policy debate on globalization has so frequently become blocked in polemics. It would be interesting just to ponder on what the results of a world referendum on today's model of globalization might be. It could cast light on the silent sense of powerlessness felt in so many families around the world. That is at the heart of the legitimacy question.

International organizations have a responsibility to deal creatively with this reality. It is in times of crisis that we are given the opportunity to think differently. If this means daring to step out of the cage of our orthodoxies, then let's dare. We must bring to bear the strength of our different mandates and the experience of our constituents.

At the ILO, we have embarked on an effort to deepen our understanding of the social dimension of globalization. I have invited the Secretariats of other organizations to cooperate in this endeavour and want to thank them for a very receptive reaction.

My hope, then, is that this Global Employment Forum will generate ideas and commitments to act together in a Global Alliance of the UN System to put decent work at the heart of policy agendas. And it is possible. Many UN agencies, together with the private sector and civil society, have joined hands in addressing employment challenges.

Encouraging policies for youth employment, and promoting the global compact, as the Secretary-General has mentioned. Addressing poverty through employment in the PRSP's, and improving employability through new approaches to education and training. We are working on more and better jobs for women. In all of this, we share both opportunity and responsibility.

Immediately after this Forum and the session of the ILO's Governing Body, I intend to convey to the World Bank and the International Monetary Fund at their annual meetings in Ottawa, the call to action which emerges from this Forum and the Governing Body.

The Global Agenda for Employment is at the heart of the ILO's commitment to decent work for all. It encompasses not only employment, but fundamental rights at work, social protection, and social dialogue. It is a package that puts people first in the global economy, helps women and men get on an equal footing, and restores childhood to many girls and boys. When implemented, it distributes well the benefits in the good times and protects people in the bad times. It is an Agenda which responds to the Millennium objectives to make our world fairer, safer, better.

Ladies and gentlemen, I am as convinced as is the Secretary-General that globalization must work for all or it will work for none. Unemployment, poverty, and social exclusion are basic threats to human security.

Decent work is one of the most important strategies we have to enhance human security. And above all, it is a sustainable long-term foundation for peace.

Thank you.

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