The ILO and globalization

The following is a selection of recent events and publications that have addressed issues concerning globalization and its social consequences. This selection is not intended to be comprehensive, but only to highlight the more significant developments. The texts reproduced are not complete, but only extracts of parts relevant to the social aspects of globalization.

In view of the wealth of information available on the many different aspects of globalization, the first section of this paper groups together the various reports and studies published. This has the advantage of highlighting the different shades of opinion in the assessment of the effects of globalization. The second section covers various high-level conferences and meetings that have addressed this subject, reflecting the policy positions adopted.

This document is not exhaustive, and has been prepared on the basis of internal information and elements to be found in the public domain, mainly through Internet sites. Wherever possible, full document and Internet references are given for the texts and events included. Links imply neither responsibility for, nor approval of, the information contained in those other Web sites on the part of the ILO.
 

A. Events

1. ASEAN+3 Labour Ministers Meeting
Mataram, Indonesia, 9 May 2003

Joint Statement

In the Joint Statement, ASEAN Labour Ministers and their counterparts from the People’s Republic of China, Japan and the Republic of Korea:

• noted that challenges such as the uncertain global economic climate, heightened security threat as well as the recent outbreak of the SARS virus have affected economic growth in the ASEAN region. In this regard, they resolved to strengthen greater regional cooperation to overcome these challenges and to ensure the progress of East Asian economies and to minimise job losses.
• regarding the ILO’s supervisory mechanisms, reiterated their position that a review be undertaken to enhance transparency and that the implementation of labour standards should be carried out on a promotional basis taking into account the particular circumstances and overall development in each member state.
• had an exchange of views on lessons learnt in the provision of social security/social protection to workers, in the light of industrial restructuring taking place due to technological change and economic liberalization. The Ministers agreed that notwithstanding the differing pace of change due to different levels of development, ASEAN and the East Asian countries have much to share in developing and implementing appropriate policies to address common concerns in the areas of social security and social protection.
• noted that the HRD Programme for 2003 addressed ASEAN’s priorities for labour and employment in the context of globalization.

2. Twenty-Fourth Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM)
Montego Bay, Jamaica, 2-5 July 2003

Rose Hall Declaration on ‘Regional Governance and Integrated Development’ adopted on the occasion of the thirtieth anniversary of the Caribbean Community

In the Rose Hall Declaration, Heads of Government, recognizing that the process of globalization and economic liberalization continues to pose significant challenges for the economically fragile and vulnerable member States of the Community as they seek to adjust to a new global trading regime based on reciprocity and open competition, … declared, on integrated development, that, with a view to deepening the integration process in the context of the provisions of the Revised Treaty of Chaguaramas, and the realities of the international economic environment, they have –

• agreed that in order to stimulate the expansion of output and employment within the framework of the CARICOM Single Market and Economy, a high level expert group be appointed, drawn from the public and private sectors, the labour movement, civil society, the CARICOM and Organisation of Eastern Caribbean States (OECS) Secretariats, the CDB and the UWI to identify the opportunities and the required institutional and policy measures to promote integrated production in the Community, especially through private sector investment.
• resolved to pay close attention and take appropriate measures to increase the efficiency of public and private sector investment, so that available investible resources can have maximum impact on poverty alleviation and employment creation.
• agreed to sustain and seek new ways to improve the dialogue with the private sector, labour and civil society in advancing the objectives of the integration movement.
• emphasised the need to intensify efforts to promote human and social development through, inter alia, appropriate education and training in order to improve the overall well-being of the people of the Community and to establish the conditions for the creation of a knowledge-based society capable of competing effectively in the new global environment.

3. 10th APEC Small and Medium Enterprise Ministerial Meeting
Chiang Mai, Thailand, 7-8 August 2003

Joint Ministerial Statement “Strengthening an APEC Entrepreneurial Society”

In the Joint Ministerial Statement, APEC Ministers and their representatives responsible for SMEs –

• stressed that a vibrant “entrepreneurial society” is central to the growth of the APEC economies. Substantial entrepreneurial activity generates demand for new services, products, and jobs. The strength of an entrepreneurial society is manifested through the number of business start-ups and the sustainability of SMEs and micro-enterprises. The dynamism of an entrepreneurial society plays a catalytic role to spur development of micro-enterprises and SMEs.
• emphasizing the strong correlation between entrepreneurial activities and economic growth, expressed the wish for more entrepreneurs among APEC’s member economies. They encouraged APEC fora and sub-fora to identify key success factors and relevant policy measures that could lead to high levels of entrepreneurial activities across APEC economies.
• commended the process of building private-public partnership to address the needs of entrepreneurs in APEC. It has been shown that entrepreneurs and SMEs are a major engine for growth and jobs.
• in 2002, APEC Leaders and Ministers recognized the importance of helping APEC economies benefit from globalization through economic and technical cooperation and capacity building. SME Ministers reiterated the importance of educational systems and training opportunities to assist and enable individuals and would-be entrepreneurs to understand the dynamics of the global economy.
• stressed that in order to cope with the challenges of globalization, APEC economies should focus on developing networks among micro, small and medium enterprises (MSMEs) and promotional agencies, MSME banks and MSME associations.
• recognized that micro-finance plays an important role in micro-enterprise development, particularly as an instrument to reduce the “financial exclusion” often experienced by micro-enterprises in the APEC economies. As an economic development strategy, micro-finance encourages income-generating activities, assists entrepreneurs in stabilizing existing sources of income and enables micro-enterprises to grow into small businesses. Ministers expressed support for the development of market-based micro-finance that provides MSMEs with micro-loans and other financial services on a sustainable basis with more flexible terms than those offered by traditionally risk-averse banks.

4. Tenth APEC Finance Ministers’ Meeting
Phuket, Thailand, 4-5 September 2003

Joint Ministerial Statement

In the Joint Ministerial Statement, Finance Ministers –

• in achieving their strategic goals of promoting sustainable, broad-based, and equitable growth in the APEC region, stressed the importance of, among others, (a) high-quality governance within the private and public sectors, (b) stable and efficient financial markets, and (c) greater economic integration and openness among the APEC economies. They continued to support the international development goals of the Millennium Declaration and the roles of international financial institutions in reducing poverty and promoting stability in the global economy.
• emphasized the importance of promoting more open and freer trade and investment through the multilateral system and through regional and bilateral trade arrangements, combined with stronger international trade rules and disciplines, to reinforce global and regional economic growth and development. They affirmed the need for continued progress towards the Bogor Goals of free and open trade and investment in the Asia-Pacific region. They urged faster progress in liberalizing trade in all sectors of their economies that significantly contribute to broad-based growth in their region. They reaffirmed the urgency of advancing the Doha Development Agenda during the Cancun WTO Ministerial Conference.
• acknowledged the role of micro-enterprises and SMEs in supporting sustainable and equitable economic growth. They agreed to work closely with the SME Ministers in providing the support necessary for the development of micro-enterprises and SMEs in the APEC economies, especially in the areas of financing, corporate governance, and entrepreneurship.

5. Group of 77 & China
Geneva, 22 August 2003

Declaration by the Group of 77 and China on the Fifth WTO Ministerial Conference

In the Declaration, members of the Group of 77 and China –

• reaffirmed their commitment to the eradication of poverty worldwide as stipulated in the Millennium Declaration and the Millennium Development Goals. Acknowledging that trade is not an end in itself but a means to development, peace and security, they aspired to creating a multilateral trading system which is responsive to the needs of developing countries.
• recognized the significant importance of an open, rules-based multilateral trading system as one of the essential means for the promotion of economic development, the eradication of poverty worldwide and the effective participation and integration of developing countries, particularly the least-developed countries (LDCs) and small, vulnerable economies, into the world economy. They strongly believed that such a multilateral trading system would play a crucial role in fostering human progress and fulfilling the development goals and aspirations of all nations, especially those of developing countries.
• called for a renewed political commitment of all countries to address the inherent asymmetries and inequalities in the international market place, the structural limitations, inadequate supply capacities and the vulnerabilities of developing countries to the external economic and financial environment and the pressures that arise therein, and to put in place a development-oriented multilateral trading system, both in words and in action, in order to ensure that all countries, particularly developing countries, can share in the prosperity that globalization offers.
• called on the participants of the Fifth WTO Ministerial Conference to expedite the Doha negotiations with a view to the successful conclusion of the Doha Round. They strongly believed that a successful conclusion of the Doha negotiations that is development-friendly will not only significantly sustain the confidence of developing countries in the multilateral trading system but will also in the long run benefit the developed countries by creating a vibrant and inclusive global economic system.
• wished to stress once again that special and differential treatment for developing countries is an integral part of all WTO agreements.
• also urged the WTO to continue to enhance coherence and complementarities with other relevant international organizations and the Bretton Woods institutions to promote the development objectives of a multilateral trading system responsive to the needs of developing countries.
• stressed that the success of the Fifth WTO Ministerial Conference depends largely on a genuine spirit of cooperation and the recognition that, in the globalization process, developed and developing countries are interdependent. To ensure the eradication of poverty for people worldwide, both developed and developing countries, must work closely together as equal partners for development.

Southern African Development Community (SADC): 2003 Summit
Dar es Salaam, Tanzania, 25-26 August 2003

Final Communiqué

In the Final Communiqué, the Summit of Heads of State and Government –

• signed the SADC Charter on Fundamental Social Rights, which calls for the creation of a conducive environment to facilitate closer and active consultations among partners and in a spirit conducive to harmonious labour relations.

Social Charter

• The objective of this Charter shall be to facilitate, through close and active consultations among social partners and in a spirit conducive to harmonious labour relations, the accomplishment of the following objectives:
• ensure the retention of the tripartite structure of the three social partners, namely: governments, organisations of employers and organisations of workers;
• promote the formulation and harmonisation of legal, economic and social policies and programmes which contribute to the creation of productive employment opportunities and generation of incomes in Member States;
• promote labour policies, practices and measures which facilitate labour mobility, remove distortions in labour markets, enhance industrial harmony and increase productivity in Member States;
• provide a framework for regional cooperation in the collection and dissemination of labour market information;
• promote the establishment and harmonisation of social security schemes;
• harmonise regulations relating to health and safety standards at work places across the region;
• promote the development of institutional capacities as well as vocational and technical skills in the region.
• embodies the recognition by governments, employers and workers in the region of the universality and indivisibility of basic human rights proclaimed in instruments such as the United Nations Universal Declaration of Human Rights, the African Charter on Human and Peoples' Rights, the Constitution of the ILO, the Philadelphia Declaration and other relevant international instruments.
• notes that Member States shall take appropriate action to ratify and implement relevant ILO instruments and as a priority the core ILO Conventions.
• notes that Member States shall create an enabling environment so that industrial and workplace democracy is promoted and workers have the right to information, consult and participate particularly in the following cases:
• when technological changes which, from the point of view of working conditions, have major implications for the work force are introduced into undertakings;
• in connection with restructuring operations in the undertakings having an impact on the employment of workers;
• in connection with social responsibility or other outreach programmes carried out by the community;
• stresses that Member States shall create an enabling environment so that, among others, workers are provided with fair opportunities to receive wages which provide for a decent standard of living;

6. Seventieth Meeting of Ministers of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development
Dubai, United Arab Emirates, 20 September 2003

Communiqué

In the Communiqué, Ministers –

• reiterated their call to strengthen international cooperative efforts to effectively address macroeconomic imbalances and strengthen the short- and medium-term global growth prospects. This could be achieved through: (i) ensuring a stable international economic and financial environment; (ii) scaling-up assistance toward the achievement of the Millennium Development Goals (MDGs); and (iii) making substantial progress in the WTO Doha Round. All countries and groups of countries meeting in Dubai this week must reaffirm their commitment to the shared economic and development goals, and to the actions necessary to achieve them.
• expressed grave concern about the failure of the WTO Cancun ministerial meeting, which represents a major setback to the objectives of global growth and poverty reduction.
• noted that a substantial, timely, and predictable amount of additional official development assistance (ODA) is needed over the short and medium term for developing countries—particularly in sub-Saharan Africa—to meet the MDGs. They urge the donor community to raise the level of ODA to the internationally-agreed target of 0.7 percent of GNP to help developing countries meet the MDGs. The delivery of assistance must be made more flexible, and donor support must be aligned with home-grown strategies. Ministers consider that a higher proportion of ODA to the poorest and most vulnerable countries in particular should be in the form of grants.
• stressed the need to provide additional technical assistance to enable low-income countries to effectively lead the formulation of their Poverty Reduction Strategy Papers. Ministers note that, although the HIPC Initiative has contributed to reducing the debt stock of a number of low-income countries, their overall debt burden remains high. They urge that efforts be enhanced to bring more countries to decision and completion points, and that debt burdens be further reduced, including by limiting debt service of the poorest countries to 5-10 percent of their exports, as proposed by some donors.

7. XIII Inter-American Conference of the Organization of American States Ministers of Labor
Salvador, Bahía, Brazil, 24-26 September 2003

(a) Salvador Declaration

In the Salvador Declaration, Ministers –

• stressed that they had met to address issues related to globalization which affect employment and labor in the Americas.
• restated their commitment to adopting and implementing all those actions required to generate gainful employment, reduce poverty, and eradicate extreme poverty, taking into account the different economic realities and conditions of the countries of the hemisphere.
• emphasized their firm commitment to the goals of the UN Millennium Declaration and, in particular, the eradication of extreme poverty, creating and enabling people everywhere to find decent and productive work. They were committed to the tasks of improved governance and transparency identified in the Monterrey Consensus of the International Conference on Financing for Development.
• noted that the upcoming Special Summit of the Americas, to be held in Mexico, will focus on equitable economic growth, social development, and democratic governance.
• reaffirmed their commitment to the 1998 Declaration on Fundamental Principles and Rights at Work of the International Labor Organization (ILO), which provides the foundation for broad-based sustainable development and social justice through full respect for the internationally recognized fundamental labor rights. They recalled the agreement of their leaders to adopt and implement legislation and policies that provide for the effective application of the labor principles and rights recognized in the Declaration.
• reaffirmed their conviction that decent work, as conceived by the ILO leadership, is the most effective instrument for the improvement of living conditions for the peoples of their hemisphere and their participation in the benefits of material and human progress. They embraced the idea that decent work is necessary for sustainable development in each of their countries, and is a condition for the success of hemispheric economic integration. For that reason, the agenda for decent work should become the axis for national and regional development policies, together with investment in health, education, and culture.
• have viewed with great interest the activities carried out in the region by the ILO World Commission on the Social Dimension of Globalization and they looked forward to reviewing its final report.
• cautioned that the policies implemented by their countries in the process of globalization sometimes do not achieve sustainability or reactivation of economic growth and, consequently, opportunities for employment are reduced. They recognized the importance of taking into account the impact of such policies on employment and the standard of living of the population. Social and employment policies should take priority in the political and economic agendas of their countries to permit the successful adaptation of their peoples to the global economy, and to ensure more equitable access to the benefits of globalization.
• were convinced that economic growth and social progress are interdependent and inter-related aspects of the same project for building prosperous, united and equitable societies. Aware of the challenges associated with the creation of decent and productive employment in the context of globalization, they proposed to combine the capacities and efforts of their Labor Ministries and other Ministries in the quest for ideas and practices capable of integrating the economic, social and labor dimensions of the regional and national policies of their hemisphere.
• stressed that socioeconomic challenges cannot be faced exclusively through social policies, and adequate consideration must be given to the economic policies necessary to create the capacity to introduce and sustain the social agenda. A social and labor agenda is an integral part of economic growth and is a way of ensuring the equitable distribution of benefits.
• noted that social dialogue is the means for achieving the indispensable agreements for ensuring decent work and respect for the basic rights and dignity of people.
• emphasized the importance of considering the social and labor components of hemispheric integration during all stages of the negotiations process so that they will be given merited treatment.
• resolved to, among other:
• maintain the two working groups created by the two previous conferences, with the functions defined at those conferences as follows: Working Group 1, Labor Dimensions of the Summit of the Americas Process, will examine more in-depth globalization issues that are related to employment and labor, focusing on the implications of regional and subregional integration and free trade processes in the hemisphere for the purpose of identifying fundamental challenges and intensifying collaboration and cooperation in the hemisphere in seeking the best solutions to these challenges, with a strong emphasis on the integration of economic and social policies.
• to instruct the Working Groups to offer effective contributions toward decent work and the well being of the citizens of the hemisphere. To that end, the Working Groups will deepen the work of their predecessors and will improve the systems to follow-up and evaluate the results of the previous Plans of Action to the extent that they help create decent work, promote productive employment and improve health, education, social welfare, well-being, and living conditions for the population.

(b) Salvador Plan of Action

In the Salvador Plan of Action, the Ministers of Labor of the Americas –

• stressed that the Working Group on Labor Dimensions of the Summit of the Americas Process will continue examining the topic of globalization in relation to employment and labor, to follow up on those issues that have been already identified as requiring major effort on behalf of the member states and intensifying collaboration and hemispheric cooperation in the search for better shared solutions, with strong emphasis on the integration of economic and social policies in the national, regional, and subregional spheres.
• noted that in particular, the Working Group will undertake the following activities, among others:
• conduct further enquiry into the effects of economic integration on labor markets and labor policy, the necessary methods for studying these topics and the means to enable Labor Ministries in smaller economies to undertake such analyses.
• analyze conditions for creating a mechanism to promote decent work and training to help reduce differences between regions and improve conditions for competitivity in their countries.
• convey the contents of this report to Trade Ministers in response to the request in their Quito Declaration of November 2002.
• stressed that the Working Group will consider, as a basis for the development of its mission, the knowledge, results and recommendations that arose from the activities carried out by its predecessors, as well as studies and information that can contribute to the accomplishment of its objectives. In that regard, the group will be attentive, inter alia, to the work and recommendations that may arise from the ILO’s World Commission on the Social Dimensions of Globalization. The Working Group will prepare a report containing recommendations for consideration at the XIV Conference. These activities will serve as a basis for the adoption of policies and programs intended to reduce or eliminate the decent work deficit in the countries of the hemisphere.
• noted that the Working Group on Building Capacities of Labor Ministries will follow-up on the efforts of its predecessors in the development of new mechanisms to increase the capacity of the Ministries of Labor, with a particular focus on responding to the challenges of globalization and integration and free trade processes, as well as increasing the efficiency of the policies and actions directed to the promotion of decent work, the improvement of working conditions, and promotion of the labor principles embodied in the ILO Declaration on Fundamental Principles and Rights at Work. The central objective of this group is to develop tools to support ministries of labor -- structure, legal framework, functions, administration, interaction with the surrounding environment --- for the execution of an active role in the contemporary world and in the future.
• stressed that the Ministries of Labor can play an important role in the generation of opportunities for decent work, the promotion of productive employment, and improvement of working and living conditions, including:
• the promotion of the elaboration, revision and updating of labor legislation, promotion of compliance with labor legislation, collective agreements, and international labor standards, particularly those identified in the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up;
• the creation of decent work, integration of economic, social and labor policies for the creation and expansion of productive employment and income opportunities; integration of labor, education, culture, welfare, and leisure policies; management of public funds for sectors that are more sensitive to the investment-employment relationship, such as the micro and small enterprises, self-employment, cooperatives; employment programs aimed at vulnerable groups such as women, adolescents, persons with disabilities, ethnic minorities; programs for public credit, microfinance, etc;
• the existence of efficient social protection systems;
• the promotion of social dialogue.

8. Twenty-seventh Annual Meeting of the Ministers of Foreign Affairs of the Group of 77 and China
New York, United States of America, 25 September 2003

Ministerial Declaration

In the Ministerial Declaration, Ministers of Foreign Affairs –

• stressed that globalization presents opportunities, challenges and risks for developing countries. The impact of globalization on development has been mixed and a large number of developing countries have not benefited from it. Economic disparities between developed and developing countries far from decreasing have increased. In this regard, they noted with grave concern that the international economic environment continues to be unfavorable for the developing world.
• believed that for developing countries to benefit from globalization new approaches to international development cooperation are needed which place development at the heart of international relations and ensure full participation and integration of developing countries in the world economy. In this regard, they emphasized the need for an enabling international environment conducive to development, including through the reform of the international financial architecture with a view to achieving greater transparency and increased participation of developing countries.
• expressed their concern at the erosion of development cooperation and underline the need to reinvigorate it in order to address the new requirements of developing countries in the context of globalization and liberalization. In this context, they urged developed countries to take concrete steps to mobilize new and additional financial resources and facilitate greater flows of FDIs to developing countries, and in this regard implement their commitments undertaken in the outcomes of UN major conferences and summits.
• confirmed the need to establish new innovative financial mechanisms to support the efforts of developing countries to achieve sustained economic growth, poverty eradication, sustainable development and strengthening their democratic systems, by raising new resources for productive investment and creating employment in order to provide answers to their people’s legitimate needs while reaffirming the leading roles of national governments in the development process of each country.
• reiterated the urgent need for a substantial increase of ODA and strongly urge compliance with internationally agreed ODA targets and with commitments for new and additional resources.
• reiterated the urgent need for the international community, particularly the developed donor countries and international financial institutions to adopt an effective, comprehensive and equitable solution to the problem of the debt crisis in time-bound fashion.
• were disappointed that the Fifth WTO Ministerial Conference at Cancun failed to produce an agreement that would have addressed the interests and concerns of developing countries. In Cancun, developing countries played a fundamental role in the negotiations. They reaffirmed their commitment to display the same degree of unity of purpose and solidarity in further negotiations under the Doha WTO Round.
• emphasized the importance of an open, rule-based multilateral trading system for the promotion of economic development, the facilitation of developing countries' integration into the global economy, and the eradication of poverty worldwide.
• were committed to pursuing the reform and strengthening of the multilateral trading system in a manner that promotes development. In this respect it is essential to place the development needs of developing countries at the heart of the WTO agenda.
• further called for the strengthening of the special and differential provisions to make them more precise, effective and operational, so as to enable developing countries to effectively take account of their development needs, including food security. The special and differential treatment should be reviewed and strengthened to take account of the changing realities of world trade and globalized economy, and must be accompanied by capacity-building and enhanced market access.
• reiterated the crucial importance of achieving the internationally agreed goals of social development, in particular those identified in the World Summit for Social Development, including through an increased and untied assistance from the international community for this purpose. They believed that the international community bears the responsibility to fulfil its commitments and implement the adopted decisions, in order to achieve the social development goals for the well being of the present and future generations.

9. Meeting of OECD Employment and Labour Ministers
Paris, France, 29-30 September 2003

Communiqué - Towards More and Better Jobs

In the Communiqué, Employment and Labour Ministers –

• concluded that, in cooperation with all levels of government, employers, unions and civil society:
• greater efforts are needed to fight unemployment which is on the rise in a majority of countries, and is affecting vulnerable workers and their families disproportionately. More policy attention should also be devoted to mobilising under-represented groups into jobs and helping them realise their career potential.
• success on these fronts would improve employment performance and social cohesion and help safeguard future living standards and the sustainability of their welfare systems.
• in the past, policies to promote early retirement have been used with the aim of lowering unemployment. Disability and other social benefits have sometimes been diverted from their original objectives with much the same aim. Ageing societies can no longer afford practices that reduce labour market participation.
• a comprehensive strategy for more and better jobs is therefore needed, including i) effective activation measures and employment services, combined with enhanced monitoring of social benefits; ii) changes in taxes and benefits so that work pays; iii) more equal access to lifelong learning; iv) job-related training that enhances career prospects and addresses skill mismatches; and v) lower barriers to labour demand and improved functioning of labour markets so as to strike a balance between flexibility and security. This should go hand-in-hand with appropriate macroeconomic policies and market reforms that support growth and job creation. Promoting gender equality in the labour market is an essential component of this strategy. In some countries, it is also important to develop policies to facilitate the transition to formal employment.
• stressed that labour market policies must be inclusive. They must help a wide cross-section of the community, and not just those who are the most able-bodied or best educated, to participate in the world of work and to engage in a continuous renewal of job skills. Experience shows that policies which discourage labour force participation are ultimately unsustainable and end up promoting benefit dependency rather than a more inclusive society.
• although this is a reform agenda for OECD countries, recognised that globalization is shaping labour markets worldwide. They were committed to engage in a fruitful international dialogue with other international bodies and close cooperation with the ILO on these issues.

10. 9th ASEAN Summit and 7th ASEAN+3 Summit
Bali, Indonesia, 7 October 2003

Press Statement by the Chairperson

In the Press Statement by the Chairperson, ASEAN Leaders –

• took note of the timeliness of the convening of this Summit at a time when their region is being confronted with fundamental changes on the global scene. In responding to those changes as well as present and future challenges, they underlined the importance of a higher degree of coherence of efforts to achieve the objectives of ASEAN Vision 2020 with those aimed at achieving the Millennium Development Goals, and with those in pursuit of their national development agenda.
• agreed to establish an ASEAN Community that would be supported by the three pillars of “political and security cooperation”, “economic cooperation”, and “socio-cultural cooperation.” These would be closely intertwined and mutually reinforcing in the effort to achieve peace, stability and prosperity. They agreed that through this effort they would reach a closer and mutually beneficial integration among their member countries and among their peoples. They also agreed to continue their efforts to promote regional peace and stability, security, development and prosperity with a view to realizing a dynamic and resilient ASEAN Community.
• agreed that the ASEAN Economic Community enhance ASEAN competitiveness, improve ASEAN’s investment environment and narrow the development gap amongst ASEAN members.
• further noted that the AEC would be characterized by a single market and production base, with free flow of goods, services, investment and labor, and freer flow of capital.
• recognized that the realization of a fully integrated economic community requires implementation of both liberalization and cooperation measures. There is a need to enhance cooperation and integration activities in other areas. These will involve, among others, human resources development and capacity building; recognition of educational qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transaction though e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement.
• envisaged an ASEAN Socio-cultural Community in consonance with the goal set by ASEAN Vision 2020, in which they would be bonded together in partnership as a community of caring societies. Through the ASEAN Socio-cultural Community, they could foster their cooperation in social and rural population, and at the same time, seek the active involvement of all sectors of society, including women, youth and community groups. The ASEAN Socio-cultural Community would intensify cooperation in addressing problems associated with population growth, education, unemployment, prevention of infectious diseases such as HIV/AIDS and SARS, environmental degradation and trans-boundary pollution.
• agreed to maintain their support for the role of the ASEAN Business Advisory Council as a key component to the overall strategy of increasing the private sector’s presence in ASEAN economic policy deliberations. They took note of ABAC recommendations on the need to increase competitiveness of ASEAN companies, especially SMEs, in the global market, particularly in the field of tourism and agriculture. To this end, they underlined the need for closer coordination between the private sector and relevant government agencies in the implementation of the recommendations.

11. 9th ASEAN Summit
Bali, Indonesia, 7 October 2003

Declaration of ASEAN Concord II (Bali Concord II)

In the Declaration of ASEAN Concord II (Bali Concord II), Heads of state and Government: reiterating the importance of rules-based multilateral trading system that is equitable and that contributes towards the pursuit of development, declared that, among others, an ASEAN Community shall be established comprising three pillars, namely political and security cooperation, economic cooperation, and socio-cultural cooperation that are closely intertwined and mutually reinforcing for the purpose of ensuring durable peace, stability and shared prosperity in the region, and agreed that –

• the ASEAN Economic Community is the realisation of the end-goal of economic integration as outlined in the ASEAN Vision 2020, to create a stable, prosperous and highly competitive ASEAN economic region in which there is a free flow of goods, services, investment and a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities in year 2020.
• the ASEAN Economic Community shall establish ASEAN as a single market and production base, turning the diversity that characterises the region into opportunities for business complementation making the ASEAN a more dynamic and stronger segment of the global supply chain. ASEAN’s strategy shall consist of the integration of ASEAN and enhancing ASEAN’s economic competitiveness. In moving towards the ASEAN Economic Community, ASEAN shall, inter alia, institute new mechanisms and measures to strengthen the implementation of its existing economic initiatives including the ASEAN Free Trade Area (AFTA), ASEAN Framework Agreement on Services (AFAS) and ASEAN Investment Area (AIA); accelerate regional integration in the priority sectors; facilitate movement of business persons, skilled labour and talents; and strengthen the institutional mechanisms of ASEAN, including the improvement of the existing ASEAN Dispute Settlement Mechanism to ensure expeditious and legally binding resolution of any economic disputes.
• the realization of a fully integrated economic community requires implementation of both liberalization and cooperation measures. There is a need to enhance cooperation and integration activities in other areas. These will involve, among others, human resources development and capacity building; recognition of educational qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement.
• the ASEAN Socio-Cultural Community, in consonance with the goal set by ASEAN Vision 2020, envisages a Southeast Asia bonded together in partnership as a community of caring societies.
• ASEAN shall ensure that its work force shall be prepared for, and benefit from, economic integration by investing more resources for basic and higher education, training, science and technology development, job creation, and social protection. The development and enhancement of human resources is a key strategy for employment generation, alleviating poverty and socio-economic disparities, and ensuring economic growth with equity. ASEAN shall continue existing efforts to promote regional mobility and mutual recognition of professional credentials, talents, and skills development.
• The Community shall intensify cooperation in addressing problems associated with population growth, unemployment, environmental degradation and transboundary pollution as well as disaster management in the region to enable individual members to fully realize their development potentials and to enhance the mutual ASEAN spirit.

12. Ninth Meeting of the Council for Human and Social Development (COHSOD) of the Caribbean Community (CARICOM)
Georgetown, Guyana, 8-10 October 2003

Communiqué

In the Communiqué, the COHSOD:

• noted the challenges facing Labour in Region in the context of the establishment of the CARICOM Single Market and Economy and the Region’s hemispheric and international trade relations. It recognised the imperative of retraining and reorganising the work force, as well as the need for Labour itself and the other social partners to be involved in the development and implementation of policies and programmes to facilitate the viability and competitiveness of workers.
• recognised the overall concerns of labour and the need to rectify inequities relating to illiteracy, training, persistent unemployment, inadequate remuneration, job security and workers’ health.
• agreed that the voice of labour is important in the formulation of policies as well as in trade negotiations and pointed to the social compact in Barbados as a possible model.
• discussed issues affecting Labour in hemispheric and international negotiations and recognised the imperative of the involvement of Ministries of Labour in the negotiating process.
• agreed that Ministers of Labour should collaborate closely with Ministers of Trade on labour issues in the FTAA process, especially since Ministers of Labour of the hemisphere have been discussing the labour dimension of the FTAA process for the last five years under the aegis of the OAS in order to respond to the mandates of the Heads of State in the Summit of the Americas.
• considered the concept of “Decent Work” and noted the work, which needs to be undertaken in respect of defining and treating with this concept.

13. European Union – European Council
Brussels, Belgium, 16-17 October 2003

Presidency Conclusions

In the Presidency Conclusions, the European Council:

• indicated that since the situation remains fragile, a message of confidence in the European Union's economic potential is needed. Maintaining sound macroeconomic policies, accelerating structural reforms and promoting investment in infrastructure and human capital are key priorities. In this context, economic policies should continue to be aimed at producing job-creating and sustainable growth and enhancing economic and social cohesion.
• endorsed the principles of the proposed Growth Initiative.
• stressed that priority action under the Growth Initiative will be carried out in the context of delivering on the Lisbon structural reform agenda including increased product, capital and labour-market flexibility, and against the backdrop of on-going efforts to give concrete substance to the indications provided by previous Spring European Councils in areas which will themselves contribute to enhancing the longer-term growth potential of the Union. Enhancing competitiveness will play a crucial role in this regard while keeping in mind environmental considerations and the social dimension.
• noted that innovation, research and development and skills are crucial for Europe's growth potential. Action will concentrate on mobilising investment and getting the right regulatory conditions in areas such as research infrastructures, science parks, industrial innovation and research and development projects, information and communication technologies, the financing of education and training facilities, through increasing investments in education and a better integration with labour and social policies.
• stressed that the current priority attached to action to stimulate growth and boost competitiveness must go hand in hand with effective social policies, and in particular job creation, which remain an integral part of the European socio-economic model.
• indicated that Member States attach particular importance to pension systems which provide adequate benefits, are financially sustainable and are capable of meeting the challenges of modernisation. Although falling within the responsibility of the Member States, their work should nevertheless be enhanced by reinforcing open coordination in this field.
• regretted the unsuccessful outcome of the WTO Ministerial meeting in Cancun and the setback this entails for the Doha Development Agenda, but stresses that the EU's commitment to the multilateral approach to trade policy remains. The EU should therefore remain open to an early resumption of the DDA negotiations.

14. Tenth Session of the Islamic Summit Conference
Putrajaya, Malaysia, 16-18 October 2003

Final Communiqué

In the Final Communiqué, the Islamic Summit Conference:

• underlined the need to devise ways and means to minimize the adverse effects of globalization on the economies of the OIC countries and called for an equitable share in the benefits of globalization for all countries.
• rejected all attempts to include non-trade issues, such as labour and environment standards, into the work Programme of WTO, or to link such issues with trade deals.
• noted with dismay the lack of progress in the Fifth WTO Ministerial Conference held in Cancun, Mexico in September 2003 and reiterated its appeal to the WTO to strengthen the development dimension in the various multilateral trade agreements through a wide range of measures, including the application of the provisions on special and preferential treatment for developing countries.
• stressed the importance of developing an orderly and strengthened international financial system with a view to addressing the fundamental weaknesses of the present system so as to stem possible repercussions of any future financial crises.
• expressed concern over the widespread poverty in the LDCs leading to their marginalization in the global economy. It further reaffirmed the common objective of member states of eradicating poverty before the end of the next decade and the need for incorporating Micro Credit Programmes in the strategy for poverty eradication.
• expressed its appreciation for the debt relief initiative for the Heavily Indebted Poor Countries (HIPCs) and called for its accelerated implementation in order to enable more eligible countries to benefit from the initiative.
• stressed the role of the private sector in providing impetus to intra-OIC economic and commercial relations and further emphasized the role of the small and medium-sized enterprises in the industrial development of member States.

Putrajaya Declaration

In the Putrajaya Declaration, the Kings, Heads of State and Government:

• recognised the special needs of many OIC Member States for development assistance, including those from Africa, as well as the priority needs of the Least Developed Countries of the OIC.
• have agreed to undertake coordinated, focused and regular interactions and exchanges of views and ideas between Muslim scholars, businessmen, entrepreneurs, industrialists and policy makers on important issues of concern to the Muslim Ummah in the fields of economics, business, research and development, particularly in the context of the rapid process of globalization and liberalization.

15. 15th APEC Ministerial Meeting
Bangkok, Thailand, 17-18 October 2003

Joint Statement

In the Joint Statement, Ministers:

• renewed their commitment to stable economic growth in the Asia Pacific region based on an open multilateral trading system. They reiterated their pledge to achieve the Bogor Goals of free and open trade and investment through harnessing the diverse and unique strengths of the twenty-one APEC member economies to create jobs and raise the standard of living of its peoples. Working towards the equitable and shared prosperity for all, Ministers reviewed the implementation of the APEC 2003 work program and set new directions and taskings for the APEC 2004 Year.
• agreed that the WTO Doha Development Agenda (DDA) offers the potential for real gains for all economies. Ministers regretted the missed opportunity to advance the DDA during the Fifth WTO Ministerial Conference held in Cancun, Mexico, on 10-14 September 2003.
• reiterated that the development dimension is at the core of the DDA.
• stressed their determination to continue pursuing structural reform in the APEC region as a valuable avenue for achieving the Bogor Goals.
• also encouraged strengthening of social safety nets to complement structural reform efforts.
• also recognized that good governance is fundamental to sustained economic growth and development and strongly support the implementation of good governance practices across the APEC region.
• endorsed a short list of APEC-wide Economic and Technical Cooperation or ECOTECH priorities:, among other, integration into the Global Economy and addressing the Social Dimension of Globalization;
• stressed that these ECOTECH priorities guide APEC’s contribution to the economic and social development of the region.
• stressed that as the region moves towards the Bogor Goals, within and between economies the process of economic adjustment must be properly coordinated and social safety nets strengthened to ensure that economic and social opportunities are accessible to all APEC stakeholders.
• stressed the need for addressing the social dimensions of globalization and the importance of developing social safety nets to minimize the costs of structural change. They commended the initiatives undertaken by APEC which aim to empower vulnerable people, especially the jobless workforce, and to better manage the impact of structural change and ensure more equitable distribution of the benefits brought about by globalization. They welcomed an event in this regard to be held in China in 2004. Ministers instructed Senior Officials to redouble their efforts in workforce retraining programs through the Human Resources Development Working Group and the Social Safety Nets Capacity Building Network (SSN-CBN). This work will build on APEC’s current work in areas such as health, financing, human resources development, micro-enterprises and SMEs, gender integration and youth, access to ICT and social safety nets.
• stressed that reducing economic and financial vulnerabilities, enhancing investment and trade between differing social systems and economies requires a sound international financial infrastructure. Post 1997, APEC is in a position to play a substantial role in reforming the global financial system. Attention to best practices of financial regulations and corporate governance is applicable to all economies regardless of the level of economic development. A financial infrastructure that recognizes the differences between APEC economies will also generate more options for investment and trade.
• stressed that there is an abundance of untapped entrepreneurial capacity in the APEC region. Reducing red tape to make it less complicated and less costly for small to medium businesses to trade across borders will make local economies stronger and create jobs. Extending resources for the creation of micro-businesses in both developed and developing economies strengthens the foundations for a broader distribution of income, enhanced economic stability and greater community development.

16. 11th APEC Economic Leaders’ Meeting
Bangkok, Thailand, 20-21 October 2003

(a) Bangkok Declaration on Partnership for the Future

In the Bangkok Declaration on Partnership for the Future, APEC Economic Leaders’:

• reaffirmed the primacy of the multilateral trading system, and agreed that the Doha Development Agenda (DDA) offers the potential for real gains for all economies, particularly developing economies. They lent their strong support for continuing the valuable work done at the Cancun Ministerial Conference to advance the DDA.
• to advance the DDA and the Bogor Goals of free and open trade and investment, as well as their supporting conditions, agreed, among others:
• to press for an ambitious and balanced outcome to the DDA, reiterating that the development dimension is at its core.
• to work with the APEC Business Advisory Council (ABAC) and the business community to continue to implement the Shanghai Accord and Los Cabos directives to facilitate business activity in the APEC region.
• on using APEC to help people and societies benefit from globalization, stressed that sustainable economic development requires empowering people and strengthening societies for globalization. In this regard, they welcomed efforts to increase APEC's contribution to this process by: making it more effective; better focusing and strengthening its work on economic and technical cooperation; and increasing its interaction with international financial institutions, the private sector, and other outside organizations. This will make APEC’s work more effective in bridging the gap between developed and developing economies.
• to create the conditions that allow peoples and societies to make the most of their potential and prepare for the challenges of the future, agreed, among others, to strengthen efforts to empower people and societies, including women and youth, to integrate into the global economy. They underlined the importance of strengthening small and medium enterprises and micro enterprises, of social safety nets in promoting sustainable and equitable economic development, and of mainstreaming the informal sector.

(b) Chair’s Summary of Discussions at Retreats I and II

In the Chair’s Summary, APEC Economic Leaders:

• stressed that at their Meeting they had a wide-ranging and interactive exchange of views on the WTO and how to put the Doha Development Round back on track. As a region of free traders, they reaffirmed their strong commitment to the multilateral trading system, and the importance of continuing the work done at Cancun. They agreed to press for an ambitious and balanced outcome to the Doha Development Round, including by instructing APEC Ministers and negotiators in Geneva to maintain regular informal consultations to find common ground on issues under negotiation.
• affirmed that development should be an important aspect of the Round, and noted that differences in the levels of development should not be ignored.
• stressed the importance of partnership between governments and the business sector. Governments have the duty to provide infrastructure and remove obstacles to allow business and people to benefit from economic activities. Governments should make serious efforts to enhance transparency and fight corruption and work with the business sector to promote good corporate governance.
• on structural reform, shared experiences on their efforts in domestic structural reform, which can be painful but is necessary and beneficial in the long term. They acknowledged the need for efficient regulatory bodies and good corporate governance in maintaining sound financial health. They noted the need for reform of the international financial regime.

17. Fifth G-20 Finance Ministers’ and Central Bank Governors’ Meeting
Morelia, Mexico, 26-27 October 2003

Morelia Communiqué

In the Morelia Communiqué, Finance Ministers and Central Bank Governors:

• discussed ways to promote economic growth that is more balanced among major regions. They emphasized the need to reduce fiscal and external vulnerabilities and imbalances in both industrial and emerging market economies. They agreed that the adjustment of significant imbalances in systemically important regions or countries requires robust implementation of appropriate policies. Further efforts, including the acceleration of structural reforms to foster potential growth and improve macroeconomic stability, are needed. They confirmed that those countries with efficient and solid markets and institutions are the ones that are best prepared to make the most out of their participation in the global economy. They also noted the importance of a policy framework to provide medium-term sustainability, flexibility and fairness. They were determined to work together to deepen their commitment to these goals.
• were committed to giving impetus to the multilateral trade approach as one of the most effective ways to promote global growth, reduce poverty and ensure that the benefits of globalization are broadly shared by all, particularly the poorest countries. They therefore called on all World Trade Organization (WTO) members to quickly re-energize the negotiation process toward the fulfillment of the Doha development agenda, recognizing that flexibility and political will from all are urgently needed.
• stressed that their analysis had underlined the fact that solid institutions and sound, deep and sophisticated domestic financial markets are key elements to maximize the benefits of globalization, promote growth and significantly reduce the risk of financial crises.
• aware of the need to make progress in fighting global poverty and promoting economic growth, discussed the framework for advancing the implementation of the Monterrey commitments. They believed that trade liberalization is critical to providing conditions for developing countries to meet the MDGs. The G-20 is uniquely placed to deepen the linkages between aid, good governance, financing and trade. Considering the importance of full financing of the Enhanced HIPC Initiative, they welcomed the support received from many bilateral creditors, and urged all who are not currently doing so to provide their share of debt relief.

18. Sixth China - EU Summit
Beijing, China, 30 October 2003

Joint Press Statement

In the Joint Press Statement, Leaders:

• stressed the importance of foreign direct investment and the need for further increase of investment flows in both directions.
• shared their regret that the WTO Ministerial Meeting in Cancun had not produced a successful outcome. They reaffirmed their commitment to a strong rules-based and equitable multilateral trading system and to a successful conclusion of the multilateral trade negotiations launched in Doha. They agreed to pursue and deepen the bilateral dialogue on WTO issues.
• stressed the importance of strengthening and expanding sectoral dialogues on a wide range of other issues. Existing dialogues cover key sectors such as energy, the environment, regulatory and industrial policy, the information society and exchanges on the “Digital Olympics”. Increasing interest in this type of cooperation has led to plans for new dialogues on competition, intellectual property rights, macro-economic questions, health, employment and education. Both sides underlined the mutual benefits of such exchanges between their experts.

19. XIIIth Ibero-American Summit of Heads of State and Government,
Santa Cruz de la Sierra, Bolivia, 14-15 November 2003

Declaration of Santa Cruz de la Sierra

In the Declaration, the Heads of State and of Government –

• recognize that the struggle against poverty is essential for the promotion and consolidation of democracy and is a joint responsibility shared by member States in the international community. They stated that overcoming poverty requires the app