Introduction

1. The activities for the biennium 1998-99 described in these proposals will constitute the culmination of the ILO’s work throughout the present century, which has witnessed its creation and gradual transformation into a universal international organization, the development of a comprehensive body of international labour Conventions and Recommendations, its confirmation as the major international centre of reference for labour matters, and the establishment of a substantial programme of technical cooperation and advisory activities.

2. Notwithstanding these achievements the ILO must seek more than ever to provide sustained proof of its relevance and usefulness to its constituents; indeed, these proposals have been prepared against a background of serious major economic and social problems throughout the world. The social situation continues to be dominated by high levels of unemployment in the industrialized countries, and even higher levels in many developing countries. Poverty is still widespread in many member States. Although trade liberalization following the Uruguay Round offers hopes of economic growth driven by increased trade, the ILO must remain attentive to the impact of the changes associated with such liberalization on workers’ rights. The process of transition to a market economy in many parts of the world continues to encounter many obstacles, as indicated in World Employment 1996-97; the ILO can contribute to overcoming these obstacles by working to strengthen social dialogue, systems of industrial relations and tripartism. Although democracy is accepted in many member States to a degree that would have been inconceivable ten years ago, democratic institutions, including employers’ and workers’ organizations, need continued support to ensure that it survives in the face of these difficulties. Workers’ protection remains a key issue in view of the rapid structural and technological changes resulting from the drive towards increased competitivity; these changes require constant adaptation to ensure adequate occupational safety and health measures at the workplace.

3. The proposals have also been prepared in the light of the continued pressure on organizations of the United Nations system to seek to improve their effectiveness in providing services to member States, their internal efficiency in providing these services at minimum cost, and the reform of their decision-making processes. The ILO has been engaged in a process of reform in the last eight years and these proposals constitute a further progression in this direction. In particular, they imply a consolidation of the reforms of ILO meetings, including the Conference and regional meetings, agreed by the Governing Body in November 1995. They also reflect the discussion in the Governing Body in 1996 concerning the rationalization of the structure of ILO external offices, and the need to strengthen internal oversight.

4. The process of preparing these proposals for the biennium 1998-99 has been characterized by a greater measure of formal consultation between the Office and the Governing Body than ever before. In March 1996, the Governing Body discussed the Preliminary consultation document¹ submitted to it by the Director-General. This was followed by discussion of a second paper² in November 1996 when the Programme, Financial and Administrative Committee was invited to furnish the Office with guidance regarding the choice of action programmes, technical meetings and research items to be included in the proposals in the biennium 1998-99. Both these discussions elicited a wide range of useful and substantive comments relating to the many technical fields in which the ILO does its work. They also revealed a significant measure of consensus on certain strategic choices for ILO activities in the next biennium. In finalizing these proposals the Office took careful account of the various views and preferences expressed in the Committee.

5. In particular, account has been taken of the wishes expressed by several members of the Governing Body that the overall level of the budget should be restrained. Accordingly, the real level of the proposed budget for the biennium 1998-99 is $21.7 million, or 3.75 per cent, below the approved level for the biennium 1996-97. Cost increases associated with inflation and statutory entitlements have been contained to a minimum and amount to some 2 per cent. At the exchange rate prevailing as these proposals were finalised in late December 1996 (1.33 Swiss Francs to the dollar) the overall level of the budget of expenditure would amount to some $520 million (it being understood that the final exchange rate is to be fixed by the Conference in June 1997 on the recommendation of the Finance Committee). If the exchange rate were to remain at 1.33 Swiss Francs to the dollar the nominal level of the Programme and Budget would imply a reduction of some $59.5 million (10 per cent), in comparison with the approved Programme and Budget for 1996-97.

Strategic orientations and priorities

6. The three major objectives of the ILO remain: support to democracy and fundamental workers’ rights; promoting employment and combating poverty; and protecting working people. In order to contribute to the achievement of these goals in member States, the Office must seek to be:

a centre of excellence and reference in the field of employment and labour, whose work is regarded as authoritative at the international level;

the focus for the elaboration, implementation and supervision of workers’ rights, with emphasis on respect for the fundamental rights of workers in the globalized economy; and

an organization offering services to all its constituents in member States, taking due account of the differing and changing environments faced by constituents.

Operational programmes
at headquarters and
in the regions

7. The ILO’s operational programmes include all the technical major programmes, the employers’ and workers’ activities programmes and the regional programmes. The recurrent activities of these major programmes largely consist of the provision of services to constituents, collecting and analysing information, usually for publication in an appropriate form, and the ongoing study of trends and developments in various labour-related fields in order to ensure that the ILO is regarded as a centre of excellence and reference. They also include support to technical cooperation projects, and collaborative work with the multidisciplinary advisory teams, in particular with regard to the definition of country objectives in consultation with constituents, and follow up action. Recurrent activities also include the preparation of new or revised instruments for discussion in the Conference, and activities to promote the wider observance of existing international labour standards. These major programmes are also responsible for the preparation of reports and documentation for the Conference, the Governing Body and its committees, as well as the preparation of contributions to major conferences and meetings. Many of these recurrent activities, particularly those involving advisory services to constituents in member States, cannot by their nature be planned in detail at this stage. The description of activities under each major programme heading therefore focus mainly on what can be programmed in advance, including in particular research work and action programmes. However, it should be borne in mind that these activities represent only a limited part of the operational activities of the ILO.

The active partnership policy
and technical cooperation

8. The operational programmes at headquarters and in the regions, together with constituents, implement the active partnership policy. They identify constituents’ needs, establish country objectives in consultation with them, design programmes to attain those objectives, implement technical cooperation and provide the technical advisory services requested.

9. Technical cooperation will continue to be one of the most important means of action for dealing with such problems and needs, especially in countries in transition and developing countries. Taking account of the resolution adopted by the Conference concerning technical cooperation in 1993, and discussions in the Governing Body Committee for Technical Cooperation, a resource mobilization strategy will be implemented to secure adequate extra-budgetary resources. This strategy will be designed to raise awareness of the ILO’s values and expertise among donor agencies, expand policy dialogue and collaboration with development partners and market ILO technical cooperation projects and programmes. Efforts will be made to broaden the current donor base in terms of both the number and type of donors. Technical cooperation opportunities will be pursued in all fields of ILO technical activity, and it is also intended, as reflected in the present proposals, to:

launch a new International Programme on More and Better Jobs for Women — for details see major programme 140;

establish a new International Small Enterprise Programme (ISEP) — see major programme 65;

establish an ILO Global Programme on Occupational Safety, Health and Environment — see major programme 90; and

augment the volume of activities to be carried out in the context of the existing International Programme on the Elimination of Child Labour (IPEC) — see major programme 90.

10. It is anticipated that these activities — and indeed technical cooperation activities in many other fields — will be financed through collaboration with multi-bilateral donor agencies, development banks and other institutions. The ILO will also continue to collaborate with UNDP, in particular in order to implement United Nations system support for policy and programme development (SPPD) and United Nations system support for technical services at the project level (STS), the successor arrangements to the facilities previously known as SPPD and TSS2.

Support to democracy
and fundamental
workers’ rights

11. During the biennium 1998-99 the ILO will continue to encourage the consolidation of democracy and respect for fundamental workers’ rights through international labour standards and the promotion of tripartism and dialogue among the social partners. In order to highlight the importance and commitment that the ILO attaches to the promotion of fundamental workers’ rights, the Director-General proposes to convene an ILO Social Forum. This Forum would focus on the promotion of international labour standards concerning these rights and be attended by representatives of government agencies, employers’ and workers’ organizations. The participation is also envisaged of interested parliamentarians and representatives of non-governmental organizations.

12. The World Summit for Social Development reaffirmed the ILO’s role in promoting respect for international labour Conventions and particularly those concerning fundamental workers’ rights. As a result the Director-General launched a campaign to promote Conventions on freedom of association, forced labour, child labour and discrimination. In the biennium 1998-99 a particular effort will be made to encourage the ratification of these Conventions by countries which have indicated their intention or wish to ratify or, where they have already been ratified, to promote their full implementation. Moreover, in order to improve the efficiency of ILO work on fundamental human rights, responsibility for all Conventions dealing with forced labour and migrant workers is to be transferred from programme 50.2 (Application of standards) to programme 50.4 which will now be called the Discrimination and forced labour programme; all work on freedom of association remains in programme 50.3.

13. The Office will implement the decisions taken by the Governing Body after discussions in its Working Party on Policy regarding the Revision of Standards and in the Committee on Legal Issues and International Labour Standards. As a result of these decisions, reports will be requested in 1998 from governments of all States that have not ratified Conventions Nos. 87 and 98, and in 1999 from all those that have not ratified Conventions Nos. 100 and 111. These reports are in addition to the regular general surveys on migration and tripartite consultation which will be carried out under article 19 of the Constitution during the biennium.

14. During the biennium, proposals will be developed for an improved system for the Governing Body to identify and decide on future topics for standard setting. This will be based on an updated inventory, or “portfolio”, of topics to be developed on the basis of inputs from the constituents through different channels, including the multidisciplinary teams. Another key element in ILO work on standards will be to follow up the recent discussions on ways to strengthen the supervisory mechanisms in relation to fundamental workers’ rights. The Office will carry out the necessary work to support discussions in the policy-making organs on these questions.

Assistance to employers’ and workers’ organizations

15. A vital component of the ILO’s work in the field of tripartism is the range of activities to assist the establishment and development of strong and independent employers’ organizations able to play an active role as representative institutions in democratic societies. Support for the establishment and development of employers’ organizations in countries that have recently undergone major political change will continue, and an international symposium will be held to discuss the future of employers’ organizations in the light of developments and trends in the needs of enterprises.

16. Activities will be undertaken to strengthen representative, independent and democratic trade unions and to enhance their capacity to participate effectively in tripartite dialogue with a view to promoting workers’ rights. A series of national and subregional seminars will be organized on labour standards of particular importance to trade unions, such as those on forced labour, freedom of association, discrimination, child labour and tripartite consultation. A publication outlining the contents of certain Conventions, including relevant references to the findings of the Committee of Experts and the Committee on Freedom of Association, will be prepared and translated into local languages. An interregional seminar for trade union organizations from developing countries will discuss ways to improve the application of international labour standards and to strengthen the effectiveness of the ILO’s supervisory mechanism. In addition, an international symposium will discuss how trade unions might assist workers in the informal sector.

Strengthening industrial relations systems

17. Activities to assist constituents to develop effective social dialogue will be considerably strengthened, including those designed to strengthen employers’ and workers’ organizations at the national level. The resources under major programme 80 are to be substantially increased and the major programme reorganized with a separate industrial relations programme which will permit a more focused approach to the problem of industrial relations in member States — a vital area as regards economic and social development, and structural adjustment.

18. Efficient systems of industrial relations and labour administration are particularly critical in countries that have recently embarked upon the process of democratization. One of the major aims of work in the biennium 1998-99 will be the strengthening of social dialogue among the tripartite constituents with a view to achieving greater economic efficiency and social justice, in particular by developing industrial relations systems that strengthen democracy and enable the social partners to participate in the formulation and implementation of economic and industrial policies. A new activity will be the creation of an Industrial Relations Information network (IRNET) which will promote widespread dissemination of technical information on industrial relations.

19. The process of democratization implies that the concerned authorities at the national level need to review and reform their labour legislation in order to ensure adequate protection for the basic workers’ rights that underpin democracy. In this process ILO assistance will mainly take the form of: advisory services concerning the drafting and revision of labour laws; consultations with employers and workers and their organizations regarding existing laws and their aspirations for the future; the provision of information and advice to national legislative policy-makers; and participation in tripartite discussions on the revision of labour law. Guidelines on labour legislation will be elaborated as a tool to guide the revision of existing labour legislation or the drafting of new legal texts.

20. The nature of collective bargaining, which is an important part of social dialogue, has been changing. Greater emphasis is now being placed on cooperative negotiations to identify gains that are beneficial to both parties. An action programme to be implemented in collaboration with the Turin Centre will develop training materials for union and management representatives and will cover cooperative bargaining in general, negotiating techniques on problem-solving and bargaining for mutual gains in particular, as well as newly emerging subjects, including technological change and the organization of production.

21. The process of regional economic integration currently in progress in various regions of the world is leading to harmonization in several areas of national law and practice, including industrial relations. An action programme will analyse this process of harmonization and the industrial relations machinery that has been established at the regional level. This work should help countries in the early stages of regional integration to assess the potential contribution of industrial relations and what form it should take.

22. The Office will continue to support and follow up the discussions in the Governing Body on the social dimensions of the liberalization of international trade by conducting any research that is required. To the extent that such research cannot be programmed in advance, it may be financed from the Programme Flexibility Reserve shown under major programme 145, after prior authorization of the Governing Body. Apart from this general provision, it is proposed to respond to a suggestion made at the meeting of the Working Party in November 1996 by preparing a study on the relationship between the implementation of core labour standards in developing countries and economic growth. The study, of which details are given under major programme 60 (Employment and training), will be based on case studies in selected countries.

Promoting employment
and combating poverty

Employment and structural adjustment

23. The problem of unemployment remains very serious in many member States. It has been estimated that approximately 30 per cent of the global workforce are unemployed or underemployed. Even among the high-income OECD countries at least 34 million people are unemployed and in the European Union as a whole, unemployment now averages over 11 per cent of the workforce. Current levels of unemployment are neither politically nor socially sustainable, and in 1996 the Conference again emphasized the commitment of the ILO to encourage efforts at the national level to resolve the related problems of unemployment, social exclusion, and the increasing number of the “working poor”, whose job fails to pay a living wage.

24. The World Summit for Social Development (Copenhagen, March 1995) endorsed the key role of the ILO in addressing the problems of poverty and unemployment. In continuing action to follow up the Declaration of the World Summit, for which the ILO is designated as the lead agency, a series of country employment policy reviews will be carried out during the biennium in close consultation with the social partners in countries which have requested or agreed to such reviews and to their implementation. The review exercise will include consultation and advisory missions and the organization of national tripartite seminars, and in the case of certain member States, will also provide a basis for the provision of further assistance on employment issues in the country concerned and in respect of reporting under Convention No. 122. In carrying out the reviews, account will be taken of the relevant discussions in the Committee on Employment and Social Policy of the Governing Body.

25. Other activities arising from the World Summit will include an International Consultative Meeting concerning Follow-up to the World Social Summit which is planned to be held in Geneva in 1999. It is envisaged that this meeting will review the actions taken and the results achieved at the national level, examine the reasons for their success or failure, and identify the constraints inhibiting the economic growth that leads to employment generation. Other international organizations and agencies, including the Bretton Woods institutions, will be invited to participate in this meeting, so that they may assist in the identification of practical measures to support the policy and institutional reforms necessary to promote the goal of full employment. This meeting will also provide an occasion to review the conclusions to be drawn from the country employment policy reviews, and from the other activities described below.

26. In order to ensure a more focused approach to the need to generate employment opportunities, and to realise the higher rates of economic growth essential to social development, a unified major programme has been established to address employment and training policies in a comprehensive manner. Under this major programme, a wide range of advisory work relating to employment policies will be carried out in collaboration with government authorities in member States, the ILO’s social partners at the national level, and the multidisciplinary teams in the regions. In support of these recurrent activities, an action programme on globalization, area-based enterprise development and employment will aim to increase awareness among local authorities and employers’ and workers’ organizations in member States of the benefits of area-based enterprise development programmes for employment generation at the local level. This will be done by reviewing successful experiences concerning: locally driven strategies to attract and retain outside investment; the diversification of local industry; targeted business support services linking local business with global markets; and the role of labour-intensive works programmes.

27. Another action programme will aim to make available to decision-makers, and to the ILO’s social partners, methodologies enabling them to assemble, compile and analyse labour market information, and to ensure that they have adequate capacity to implement these methodologies effectively. Guidelines will be prepared on how to use labour market information and assistance will also be provided to several member States for the establishment of pilot “employment and training observatories” for the benefit of administrators, statisticians, employers and workers. A number of research activities to be carried out in the biennium 1998-99 directly relate to employment issues. They concern: the effects of regional groupings on the employment and labour situation; the impact of changes in the pattern of production and services on the creation, disappearance and location of employment; labour market flexibility and employment security, concerning the impact of labour market deregulation on labour standards, tripartite consultation and social benefits; labour market policies for transition economies; and the future of urban employment, particularly through employment creation in the informal sector.

28. Experience has frequently shown that structural adjustment programmes can only be implemented successfully if they are based on a social consensus concerning the need for adjustments, the principal instruments to implement these adjustments and a realistic timetable. Research work is envisaged to examine the recent experience in developing social consensus ahead of major economic decisions, and the role of workers’ and employers’ organizations in preliminary discussions. This research activity would lead to a report for dissemination to ILO constituents, and to national tripartite workshops in certain countries — to be organized in a joint effort between headquarters departments and the multidisciplinary advisory teams.

29. In carrying out its work programme in a wide range of technical fields in the biennium 1998-99, including employment promotion in particular, the ILO will seek to further develop its relations with the Bretton Woods institutions. There have been a number of high-level contacts between the ILO and these organizations in recent years, of which the Governing Body has been kept informed. These contacts will continue, together with cooperation with the World Bank and the International Monetary Fund at the technical and country levels. Areas of particular emphasis include training for employment, labour-intensive works, the provision of labour codes, the reform of social security and enterprise development. In these fields the ILO will develop technical cooperation projects in cooperation with the World Bank. Throughout its technical and policy dialogue with the Bretton Woods institutions, the ILO will emphasize equity considerations and the need to promote fundamental workers’ rights.

Training

30. Training is crucial to the achievement of policy goals to reduce unemployment and improve productivity. The third issue of World Employment to be published in 1998 will therefore focus on skills, training and employment in countries at all levels of development. Starting from the premise that training policies have a vital role to play in averting the skill shortages that constrain growth, the report will analyse major issues of policy and institutional reform including: the policy interventions required to correct market failures; the optimal balance between government and private sector provision of training; mechanisms for achieving a better match between the supply and demand for skills; and measures to improve the effectiveness of training-based active labour market policies in enhancing the employment prospects of disadvantaged groups in the labour market.

31. Technical advisory services will be provided to many member States in the field of training policies and the development of training institutions. In order to support these advisory services, and the work of the multidisciplinary advisory teams, several action programmes and research activities will also be implemented. In particular, an action programme on tripartite participation and social dialogue in relation to training will seek to ensure the wider introduction in member States of effective forms of participation in decisions concerning training. A second action programme will address the controversial question of the financing of training systems. Although large enterprises and multinational companies normally have significant training budgets, most medium and small-scale enterprises, particularly in poor countries, cannot afford to train their own employees. The action programme will lead to the preparation of guidelines on financing mechanisms for training; these will be made available to training administrators and employers’ and workers’ organizations, together with analyses of successful practices identified at the country level.

32. A research activity is envisaged on the changing roles of the State and the private sector in training. The experience in several countries concerning the increased participation of the private sector in training will be examined and assessed in terms of effectiveness and sustainability. This evaluation of successful practices is intended to pave the way for a significant ILO publication on policies and strategies which might be adopted by governments in order to guide and support training programmes of all kinds at the national level. The role of governments may often include the establishment of a regulatory framework to balance distortions inherent in open and decentralized training markets, and the development of mechanisms for the provision of training to socially excluded and vulnerable groups.

Enterprise development and employment

33. The crucial role of enterprises in the creation of meaningful employment opportunities is now widely recognized. The objective of ILO work in this field, the need for which was explicitly endorsed by the Declaration of the World Social Summit, is the design and implementation by constituents at the country level of policies and programmes to promote and facilitate the creation of productive, sustainable and quality jobs in enterprises and cooperatives in both the formal and informal sectors. Most of the ILO’s activities in this field will be focused on direct assistance at the country level, through technical cooperation projects and the multidisciplinary advisory teams. To support these country-level activities, three action programmes will be implemented. The first of these, concerning job creation through innovative financial instruments, will be carried out in close cooperation with the European Union and the OECD. This programme will seek to evaluate partnerships between banks, self-help associations and local government authorities, set up with a view to creating jobs at the local level. An action programme on productivity improvement, competitiveness and quality jobs in developing countries will have the objective of promoting the adoption of strategies to improve productivity and national competitivity at the enterprise level, thus facilitating the integration of the countries concerned into the global economy through increased trade, and thus export revenues.

34. A third action programme shown under the Enterprise and cooperative development major programme will address the problems of small and medium-sized enterprises. It will seek to promote the adoption of policies and programmes aimed at the creation of sustainable and productive jobs in small enterprises. In this action programme new practical tools to support the development of viable small and medium-scale enterprises will be prepared, including guidelines, training and promotional materials. These materials will reflect the need for sound labour relations, decent working conditions, job security and fair treatment, and the promotion of women entrepreneurs, as integral elements of a strategy to promote efficient and competitive small enterprises. In the implementation of this action programme, account will be taken of the discussions in the Conference in 1997 and 1998 on “General conditions to stimulate job creation in small and medium-scale enterprises”.

35. It is also proposed to organize a Second Enterprise Forum to bring together entrepreneurs, senior managers, representatives of governments, employers’ and workers’ representatives, academics and others to discuss various aspects of the role of enterprises in relation to job creation and other social objectives. It is envisaged that there will be full tripartite consultation on the agenda of this Second Forum, which could include subjects such as: job creation in small and medium-sized enterprises; the role of women entrepreneurs; and social initiatives by enterprises.

36. During the biennium, activities will continue to promote the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy as a framework within which to address the labour and social implications of private foreign investment and the activities of multinational enterprises. The questionnaire for the Seventh Survey on the Effect given to the Tripartite Declaration will be prepared and research undertaken on multinationals and the globalization process.

Poverty and social exclusion

37. In the ILO view, the only effective approach to the alleviation, and eventually the eradication, of poverty is higher rates of employment fuelled by sustained economic growth. However, certain activities envisaged to be implemented in the biennium 1998-99 address the problems of social exclusion and poverty in a more direct manner, particularly under the Development policies major programme for which poverty alleviation is a key objective. In particular, attention will be given to the serious social consequences of high rates of youth unemployment under this major programme. An action programme will be implemented to enhance the knowledge base on policies and programmes to relieve the problem of youth unemployment. It is planned to prepare a practical guide on such policies and programmes for use by ILO constituents and to support ILO advisory services at the country level. A wide range of advisory services, together with activities to support technical cooperation, will continue to be provided to constituents. These will focus on the creation of productive employment opportunities in the construction industry, by the promotion of the development of small-scale contractors, and through the creation of employment opportunities in the public works sector. Member States emerging from situations of armed conflict will continue to be provided with advisory assistance on the development of employment-intensive programmes of rehabilitation and reconstruction; a guide will also be prepared on the design and management of infrastructure programmes at the community level. The support provided to member States will also include assistance in the design of local investment programmes to improve the access of poverty groups to productive resources and basic social services.

38. Work on the complex relationships between poverty and social exclusion will continue in the International Institute of Labour Studies. The Cooperatives programme will carry out operational activities involving the direct alleviation of poverty through extra-budgetary funded projects such as ACOPAM. In order to consolidate the statistical base for ILO action in relation to unemployment and poverty, the Sixteenth International Conference of Labour Statisticians is expected to discuss a new standard (in the form of a resolution) on the concept and measurement of underemployment. Subsequent to the Conference, technical assistance will be provided to member States to promote the wider application of the guidelines to be contained in this standard. The ILO’s “Compendium on poverty”, a detailed reference work on the statistics of poverty, will again be updated.

Protecting working people

39. The protection of working people remains one of the main objectives in all ILO activities. Several new initiatives are proposed to this effect. One of the most important is the launch of a new ILO Global Programme on Occupational Safety, Health and Environment, which aims to strengthen the capacity of the Office, to mobilize new resources and to support action taken by member States to bring about lasting improvements in occupational safety and health. In particular it sets out to reduce employment accidents and bring about real improvements in the prevention of occupational risks. It is also proposed to promote, through an action programme, the concept of “safety culture” which is defined as an enterprise-level approach that links quality, productivity and occupational safety and health and in which emphasis is placed on sound managerial systems and voluntary action. Another action programme will promote the concept of social initiatives by enterprises; by integrating social considerations into overall business practices such initiatives can contribute to higher levels of productivity and competitiveness, while also improving human resource management, the quality of work and the environment. A new subject area in the safety and health field is the social implications of genetic screening, which raises significant issues related to discrimination and confidentiality. Work will also be done on effective measures to minimize the risks to workers, as well as to the public and the environment, of exposure to, and the use of, biological agents at work.

40. The basic principles of prevention and protection contained in ILO Conventions and Recommendations dealing with safety and health will be drawn together in a special publication entitled Fundamental Principles of Occupational Health and Safety. The translation of the Encyclopaedia of Occupational Health and Safety into French and the technical work of producing it in printed and electronic form will continue. The Encyclopaedia will serve as a source for the production of practical ready-to-use publications, electronic multimedia presentations and training materials.

41. The methods used for data collection, the classification schemes used for the recording of occupational accidents and the compilation and publication of statistics on occupational injuries will be considered by a meeting of experts. The report of this meeting will be presented to the 16th International Conference of Labour Statisticians which will be held in 1998.

Working conditions

42. Good working conditions which respect the dignity and equality of workers are an important means of raising productivity and reducing stress-related illnesses. The recently adopted standards on night work, part-time work and home work were designed to address difficult working conditions and hours of work, the problems of vulnerable workers and the exclusion of certain categories of workers from protection. Special information packages will be prepared to publicize the adoption and promote the implementation of these new standards, and a study will be prepared to support the revision of the Maternity Protection Convention (Revised), 1952 (No. 103).

43. Another area of concern for the biennium 1998-99 is violence at work, which is on the increase in many countries and sectors. Workplace violence is a particular threat to women and migrant workers, and can constitute a serious threat to the safety of the enterprise. A methodology will be developed for collecting and analysing statistics on violence at work, and appropriate materials for the purpose of better protecting women, ethnic minorities and migrant workers will be prepared

44. To assist both the Organization and its constituents develop a vision of work for the future and new ways of thinking about meaningful work, an analysis will be made of the linkages between the changing concept of work, strategies and approaches for the improvement of working conditions and the long-term creation of employment. Work will also be undertaken on available options in the field of working time and their social and economic implications, with a view to the adoption of programmes and measures that reconcile the needs of workers and their employers. Particular attention will be given to the impact of flexible working time arrangements on gender division of labour and the relationship between certain safety and health regulations and various working time arrangements.

Labour administration and social security

45. Labour administration systems and ministries of labour have an important role to play in the improvement of working conditions, the settlement and prevention of labour disputes, and the strengthening of social dialogue. Activities in the biennium 1998-99 will centre on the development of effective labour administrations that are capable of adapting to the current radical changes in the world of work, while at the same time safeguarding the protection of workers and social progress. An action programme will provide a methodological framework for determining the most effective methods of organizing and managing labour administrations, and produce guidelines on internal evaluation methods of the services (labour inspection, public employment services, placement of jobseekers, implementation of employment programmes, services to social partners, etc.). Seminars will be organized to promote the Labour Inspection Convention, 1947 (No. 81) and the Labour Inspection (Agriculture) Convention, 1969 (No. 129), as well as to introduce countries to any new instruments which may be adopted by the Conference in 1997 to revise the Fee-Charging Employment Agencies Convention (Revised), 1949 (No. 96).

46. The overall aim of work in the field of social security will be the extension of social protection programmes to achieve the widest possible coverage, both in terms of contingencies and benefits. Activities will also be undertaken to improve the governance, management and efficiency of these programmes with the minimum of disruption to economic performance and individual initiative. An action programme will study the options available to policy-makers as a basis for the design and implementation of old-age pension systems that are adapted to national conditions and take into account the principles embodied in the relevant international labour standards. The ILO’s actuarial models for social security pension schemes will be complemented by health financing models and a social budget model. In addition, the Director-General intends to publish a substantive report on the topic of social protection in the next biennium, comparable in importance and readership to World Employment.

The elimination of child labour

47. In recognition of the importance attached by member States to the elimination of child labour, there will be a major increase in the resources being devoted to this important social problem. New standards on child labour are expected to be adopted by the Conference in June 1999. An important aspect of ILO action in this respect is its work to enhance awareness at all levels. Regular reports will cover global trends in child labour, and reports and booklets will be prepared on issues such as labelling and corporate conduct. A meeting of experts on labour inspection and child labour will also be convened, to draw attention to the critical role of labour inspectors in combating child labour, identify best practices and approaches and facilitate the sharing of experience in this area. Research will be undertaken to estimate the macroeconomic cost of certain policy measures such as providing universal and free education to all children; providing effective rehabilitation programmes for children who are withdrawn from hazardous work; and establishing an efficient labour inspection system. Special attention will be given to action on extreme forms of child labour. An action programme will provide practical support in the design of national programmes of action against the most intolerable forms of child labour. Taking account of previous ILO work in this field, the action programme will  go  beyond  awareness-raising  and  focus  on effective  enforcement  measures  that  can  be  carried out by   governments   in   collaboration   with   employers’  and workers’ organizations and non-governmental organizations.

48. Operational activities will continue in the context of the International Programme on the Elimination of Child Labour (IPEC), which now covers more than 20 countries with contributions of some $24 million in 1996-97. The objective of IPEC continues to be the progressive elimination of child labour through the strengthening of national capacities and the promotion of a worldwide movement against child labour. The Programme focuses on preventive measures and gives priority to the eradication of the most hazardous and exploitative forms of child labour.

Equality of opportunity

49. Greater equality of opportunity and treatment between men and women in the world of work will remain one of the key aspects of ILO activities during the biennium. To this effect, the Office of the Special Adviser for Women Workers’ Questions will be strengthened to provide overall guidance and coordination for ILO programmes and activities in this field.

50. The ILO’s main contribution to the follow-up of the Fourth World Conference on Women, held in Beijing in 1995, will be the technical cooperation programme “More and Better Jobs for Women” now being launched. The programme seeks to integrate equality concerns into national policies, programmes and activities. It will also increase awareness of gender inequalities in employment and assist in the establishing and strengthening of tripartite mechanisms needed to address gender equality issues. Emphasis will be placed on both the quantity and quality of jobs. The programme will aim to demonstrate that it is possible to achieve an acceptable and feasible balance between more and better jobs; that more jobs for women does not have to mean less jobs for men; that “better” jobs can benefit both women and men; and that women’s productive and remunerative employment helps families, societies and economies.

51. The special problems of women figure prominently in the ILO’s work on poverty and exclusion. Activities will include the design of practical policies and programmes for promoting employment and protection of women, increasing the capacity of ILO’s tripartite constituents to address the problems of poor working women and promoting the participation of women workers in national tripartite debates and policy dialogue. A special training programme on employment promotion and poverty eradication for disadvantaged women will be developed. Activities related to home work will continue in order to expand new forms of employment for women workers and explore the link between the growth of homeworking and the globalization and delocalization of economic activities. In addition, an action programme will identify the viable strategies for improving the quality of employment of the many women workers in developing countries who are engaged in own-account work, small businesses or new forms of employment relationships.

52. Particular attention will also be paid to entrepreneurial and cooperative training for women. Research will be undertaken on how women entrepreneurs can overcome the legal and cultural obstacles which face them when applying for loans through self-help schemes such as savings and credit cooperatives, joint liability groups and mutual guarantee associations. Special efforts will be made to support women entrepreneurs through the Improve Your Business and Start Your Business training programmes.

53. The activities of the Conditions of work programme are particularly relevant to the needs and concerns of women workers, therefore forming an important input to the ILO follow-up to the Beijing Conference. Special activities will be undertaken to promote the new Conventions on part-time work and home work, types of employment in which women workers predominate; preparatory work will also be undertaken for a possible revision of the Maternity Protection Convention. The effect of various working time arrangements on women will also be studied; in particular attention will be paid to the way in which part-time work by women reinforces the division of labour in home-making tasks and labour market segmentation.

Migrant workers and other
vulnerable groups

54. During the biennium the Office will continue to assist constituents in the design and implementation of policies and measures that provide effective protection to migrant workers and improve the management of migrant flows. The activities to be undertaken will consist principally of policy analysis and technical advisory services to labour-sending and labour-receiving countries. Research will focus on policies to protect migrant workers and regulate migration; the growing difficulties of successfully integrating established migrant populations into the labour market; and ways to provide better basic protection for migrant workers. Work will also be carried out on improving the social security rights of migrant workers and their families, including those residing, working in or originating from countries that are not parties to social security agreements guaranteeing such protection.

55. Vulnerable categories of the population such as people with disabilities and individuals with drug and alcohol problems continue to experience increasing difficulty in finding and keeping employment. Special emphasis will be placed on the development and adoption of workplace prevention and rehabilitation measures as standard elements of good human resource management practices. Work will continue on the development and maintenance of the ILO/GLADNET network and research will be carried out on job retention and disability management at the workplace. Technical cooperation projects and advisory services will seek to achieve greater consensus between management and unions on specific policies and measures to prevent and curb drug and alcohol abuse at the workplace; and to reduce discrimination in employment against recovering addicts.

Sectoral activities

56. The ILO programme of sectoral activities will further develop the new approach introduced in the biennium 1996-97 as a result of the earlier evaluation of the programme by the Governing Body. Its mandate continues to be to facilitate the exchange of information between constituents on labour and social developments relevant to particular economic sectors by means of meetings designed to assess the specific needs of each sector. As an integral part of this new approach, more emphasis will be placed on the follow-up to sectoral meetings through cooperation with the field structure and with other headquarters units and through networking with sectoral constituents. Specific activities will include: studies on public procurement, productivity and globalization in the construction industry; an assessment of specific policies to promote productive employment and reduce poverty among agricultural wage workers, and an assessment of the application of fundamental ILO labour standards for rural workers; national workshops on basic workers’ rights and the improvement of productivity and working conditions (especially for women) in the textile, clothing and footwear industries; the promotion of the revised code of practice on occupational safety and health in forestry; studies on the implications of globalization in forest-based industries; research on recruitment, participation in decision-making and working conditions of educational personnel; and sub-regional workshops to promote tripartite dialogue on best practices to improve teachers’ status. In the commerce sector, the impact of the new distribution systems on employment levels and conditions, remuneration, working conditions and labour relations will be analysed. In addition, in response to resolutions adopted by the Maritime Session of the Conference in 1996, a revised draft code of practice on the inspection of seafarers’ working and living conditions will be prepared and a study on the applicability of ILO maritime instruments to the fishing sector will be undertaken.

Action programmes

57. Various action programmes have already been mentioned in this Introduction. The following is a summary list of the proposals retained by the Director-General, after taking account of the comments made by members of the Programme, Financial and Administrative Committee in November 1996. It will be recalled that an action programme is defined as a special project concerning a highly topical problem regarded as a priority by constituents in member States. Each action programme is intended to attain a specific aim and to result in one or more products which may be made available to constituents later in the biennium, for them to adapt for application in their own economic and social situation.

Globalization, area-based enterprise development and employment.

Labour market information systems for human resource development.

Tripartite participation and social dialogue on training.

Financing of training.

Social investments: Job creation through innovative financial instruments.

Productivity improvement, competitiveness and quality jobs in developing countries.

Small and medium-sized enterprise development for employment.

Cooperative approaches to collective bargaining.

The contribution of industrial relations to regional economic integration.

Organization and management of labour administration.

Social initiatives by enterprises.

Safety culture.

Action against extreme forms of child labour.

An operational framework for pension reform.

Strategies to combat youth marginalization and unemployment.

Improving the quality of women’s employment.

Technical meetings

58. In November 1996, the Programme, Financial and Administrative Committee was asked to give its comments on 14 proposals for technical meetings. Taking account of the various comments, it is proposed that the meetings listed below be retained for the biennium 1998-99:

International Consultation on Follow-up to the World Summit for Social Development.

ILO Social Forum.

Second Enterprise Forum.

Tripartite Meeting of EPZ-operating Countries.

Meeting of Experts on Labour Inspection and Child Labour.

Sixteenth International Conference of Labour Statisticians.

Meeting of Experts on Labour Statistics: Occupational Injuries.

International Symposium on the Future of Employers’ Organizations.

International Symposium on Trade Unions and the Informal Sector.

The meeting concerning export processing zones (EPZs) and the two symposia for employers’ and workers’ participants were postponed from the biennium 1996-97 due to the need to achieve expenditure reductions.

The Institute, the Turin Centre
and ISSA

The International Institute
for Labour Studies

59. The Institute will continue to identify and explore emerging labour policy issues, and will maintain contact on a regular basis with academics, policy-makers and shapers of public opinion. The research activities of the Institute, which will be carried out in collaboration, wherever appropriate, with the technical departments of the ILO, focus on the central theme of the relationship between labour institutions and economic development at this time of rapid change. In the biennium 1998-99, the Institute’s programme will relate to four main topics: social cohesion and the role of the tripartite actors; social cohesion and anti-poverty strategies; global production systems and labour markets; and social protection, production systems and social institutions. In accordance with the usual practice, detailed Programme and Budget proposals for the next biennium will be submitted to the Governing Body in November 1997, following their examination by the Board of the Institute.

The Turin Centre

60. The ILO contribution to the Turin Centre will be maintained at the same level as in the biennium 1996-97, in real terms. The basis for the work of the Centre in the biennium 1998-99 will be the second Development Plan for the period up to the year 2000. This plan identifies the following objectives for the Centre: disseminating, through training, information on the standards, experience and expertise accumulated by the ILO and the United Nations system, as well as by other development partners; supporting through appropriate training activities the reforms undertaken within the multilateral development cooperation system; renewing and developing its training products pertaining to the labour field, and to key areas of the United Nations development agenda, including human rights, governance and the management of development cooperation; and the strengthening of the capacities of governments, employers and workers in the planning and management of the development process. In implementing the plan, the Centre will continue to develop its capacity to develop training products; to provide training advisory services and carry out training operations in the field; and to improve its communication and marketing capacity. The resource-mobilization strategy of the Centre will be constantly adapted to the increasingly competitive environment. It will continue to implement training services for the staff of the United Nations and for national, governmental and non-governmental personnel associated with activities involving the United Nations, in the context of the recently approved United Nations Staff College Project. This project is conceived as consisting of a network of training institutions, of which the Centre will be the main focal point.

International Social Security
Association (ISSA)

61. At the present time the membership of ISSA includes some 350 institutions in more than 130 countries. The activities of ISSA are planned by its own autonomous bodies, at meetings in which the ILO participates. These activities will continue to include meetings at the regional and global levels, training courses for the staff of member organizations, and research and publications. ISSA collaborates directly with the ILO’s technical departments, for example as regards the development of a social security information system, and in the field of occupational safety and health. In particular, the two organizations will cooperate in relation to the World Congress on Occupational Safety and Health, to be held in Brazil in 1999. The ILO will continue to provide ISSA with various personnel, financial and communications services and with office premises.

The International Labour Conference, the Governing Body and the Major Regional Meetings

62. The proposals for the major programmes concerning the policy-making bodies for the biennium 1998-99 are the result of a process of reform launched in 1992 with the recommendations that emanated from the working parties of the Governing Body on improvements in the functioning of the Conference and the Governing Body. As regards the Conference, the first set of reforms established a new timetable for the discussions in the plenary and shortened the Conference by four days. Simultaneously, the Office instituted a number of changes in working procedures and modernizations, such as the introduction of electronic voting and the electronic transmission of reports to the external printers. As a result of these measures, the cost of the Conference to the Organization was significantly reduced, as it was for each of the participating member States, who fund their delegations for fewer days. The further reforms provisionally adopted by the Governing Body in November 1995 are reflected under major programme 10 (International Labour Conference). These reforms make it possible to achieve savings of some $2.2 million, a reduction of 14.3 per cent in comparison with the original 1996-97 budget in respect of the annual Conference (excluding the provision for the Maritime Session of the Conference held in 1996).

63. The Governing Body was the subject of reforms in 1993 intended to improve its functioning, which resulted in a reduction in the number of sessions each year, a reduction in their total duration, and a reorganization of the work of the committees — and thus some reduction in the direct cost of the Governing Body to the Organization, which was reflected in the Programme and Budget for 1996-97. However, the proposals for 1998-99 include an increase of $80,000 in order to complete the implementation of the decision of the Conference in June 1995 whereby the Office is required to cover the cost of ten additional deputy members (five Employer and five Worker representatives) to all sessions of the Governing Body. Issues relating to further changes in the functioning of the Governing Body will be addressed in a paper to be submitted to it for discussion in March 1997.

64. The reforms in the major regional meetings decided by the Governing Body in November 1995 will be maintained in the biennium 1998-99, implying net savings of $2.4 million in comparison to the approved Programme and Budget for 1996-97. These reforms consist of a considerable reduction in the duration of these meetings, an agenda that focuses on current and future ILO activities in the region, and their preparation, organization and servicing by ILO officials in the region concerned.

65. The indirect costs of the meetings of the policy-making bodies comprise the costs of preparing documents, and servicing meetings, including the preparation of in-session papers and committee reports. The cost of preparing documents may include basic research, analysis of information, drafting, and approval. Estimates prepared in the past indicated that the indirect costs of the Conference amounted to some one-and-a-quarter times the direct costs shown in the budget. The indirect cost of the Governing Body was found to be approximately five times the direct costs identified under major programme 20, owing to the considerable volume of work required throughout the Office in preparing documentation to support its discussions. A further internal exercise is envisaged to estimate the indirect costs of the Conference, Governing Body and major regional meetings following the implementation of the reforms.

The regions

66. The proposals for the regional major programmes are characterized by the further consolidation of the active partnership policy, which is reflected in an increase of the resources available for operational activities, and by several measures of rationalization aimed at improving the functioning of the network of external offices. The measures of rationalization of the external offices in these proposals have been identified taking into account the discussions in the Governing Body in March 1996 and in the Programme, Financial and Administrative Committee in November 1996. In these discussions the principal measures considered included the merging of certain external offices, the restructuring of zones of geographic competence, the transformation of existing offices, and cost reductions not related to any reorganization.

67. The measures were identified in the light of the following criteria: the need to keep close contact with constituents in all member States; the need to ensure that the services of the Organization are provided in a cost-effective and timely manner; and the requirement to improve the way in which external offices work together, as well as the management of programme implementation. Taking account of the views expressed in the Governing Body and later in the Committee, the present proposals do not imply the closing of any office, nor any programme reduction other than those concerning administrative costs.

68. The changes envisaged include the establishment of a new multidisciplinary advisory team in Yaoundé to improve the delivery of technical advisory services to the countries of Central Africa (this team will be managed together with the ILO office in Yaoundé); and the strengthening of the multidisciplinary advisory team in Cairo, which will be enlarged to cover the Maghreb countries. In the Arab States, an ILO presence will be established under the aegis of UNDP to support technical cooperation activities to assist the Palestinian Authority and Palestinian workers’ and employers’ organizations. Discussions are in progress with the Government of Kuwait regarding the possible modalities for financing some form of ILO presence in that country. In Asia, the office of a senior technical adviser will be opened in Hanoi, Viet Nam, and the multidisciplinary advisory teams in Manila and New Delhi will be strengthened.

69. In the Europe and Central Asia region, a second multidisciplinary advisory team will be established in Moscow to reply more effectively to the need for advisory services in Eastern Europe, in Central Asia and the Trans-Caucasia. The team will take over the relations functions of the Moscow office. The team in Budapest will henceforth also fulfil the relations functions of an ILO area office in the countries it covers. National correspondent posts will be established in Kazakstan and Uzbekistan.

70. These measures will serve to rationalize the structure of ILO external offices and improve the relevance and efficiency of ILO activities in the regions. In addition, the RBTC resources to be put at the disposal of ILO external offices for projects to be implemented in close collaboration with constituents are to be increased by $1.45 million. These resource increases should enable the Organization to maintain the quantity and quality of its services to the social partners notwithstanding the overall reduction in the real level of the budget, and the increase in the number of member States (from 150 in 1990 to 174 at the end of 1996, i.e. an increase of 16 per cent). The proportion of ILO resources attributed to the regions increased from 14 per cent in the biennium 1990-91 to 21 per cent in 1998-99, taking account of all sources of funds.

Modernization and improved cost efficiency and effectiveness

71. In recent biennia, a number of reorganizations and reforms have been adopted in order to modernize the Office, realize productivity gains and improve cost effectiveness and efficiency. In most cases the reforms introduced have permitted considerable reductions in costs and have allowed resources previously needed for certain support functions to be redeployed towards substantive and operational activities. This continuing trend is reflected in the proposals for the biennium 1998-99.

72. As concerns modernization, a key technological development is the widespread use of Internet as a gateway to previously inaccessible information. In order to respond to the new opportunities afforded by the use of the Internet to make the ILO and its fundamental principles better known throughout the world, the proposals for the biennium 1998-99 include a number of projects under the substantive and operational programmes to explore the possibilities of making ILO databases, such as LABORDOC and ILOLEX, available to constituents and other interested parties by way of the Internet. Attention will also be given to enabling the Office to respond more rapidly to requests for technical assistance and information by using the Internet. Efforts to reduce the costs of printing and distributing documents to delegates of ILO meetings, such as the Governing Body and the Conference, will also be pursued by making fuller use of the ILO’s Home Page and by providing access to certain documents through the Internet.

73. In addition, a major project is proposed under major programme 145 (Interdepartmental activities) concerning the ILOLEX, NATLEX and LABORDOC databases, as well as those on occupational safety and health and labour statistics. These databases are available in printed and digital form (CD-ROM). They contain extremely useful information, but need revision to make them more user-friendly and more consistent. Considerable improvements are therefore planned in their content, format and usability so as to facilitate and expand their use. This project will make the Organization’s work more readily accessible and contribute to the overall positive image of the Organization while providing important services to constituents.

74. Over the past few years, there have been major advances in the affordability and ease of use of very rapid communications systems (electronic mail systems, Internet, Faxes, etc.) and of powerful computer hardware and software systems (hard disks, word-processing, databases). As the ILO adjusts to the changing opportunities offered by these technologies and in order to realize productivity gains, the information technology and communications major programme will continue to ensure that the ILO maintains an appropriate information and communications development strategy. It will also be responsible for supporting the implementation of new technology in all the other major programmes. Similarly, the Library and documentation major programme is responsible for working with the substantive and operational services to develop the ILO’s main information products in such a way that they are broadly and easily usable not only for constituents, but also for institutions and individuals interested in social and labour issues. Under the Personnel major programme, further work will be carried out under the Personnel Information System to make the personnel databases more efficient and to rationalize to the extent possible various personnel actions and functions.

75. The Publications major programme also has a key role in establishing and reinforcing the Organization’s reputation as a centre of excellence and reference on labour and employment issues. The proposals in this field reflect a concern to raise the quality of ILO publications, and their usefulness to constituents. In accordance with the wishes expressed by Governing Body members, the resources for the Publications major programme are to be reduced by some $2 million, following organizational changes.

76. In order to assist officials and managers in the ILO to adjust and adapt themselves to the new environment imposed not only by the widespread use of new technologies but also by the exigencies of staff mobility and active partnership, a new programme will be established under the Personnel major programme, with specific responsibility for strengthening staff training and retraining activities within an integrated approach to human resources development and career development. Improving the ability of the ILO’s staff to adapt to new roles is already receiving a very high priority, and this will continue throughout the biennium 1998-99. The work of this new programme will focus on linking the design and implementation of a dynamic training programme with performance management, career development and organization development. By focusing on development and training activities, this programme will promote a closer integration of personnel policies and procedures with the overall objectives and policies of the ILO’substantive programmes.

77. The proposals concerning the financial services have been made in response to the demands placed on them following the implementation of the active partnership policy and the change in procedures and working methods which have ensued; they also take account of the need to maintain the quality of the controls in all financial activities so as to promptly respond to the technical demands made on the Office. The decentralization of budgetary and financial functions within the headquarters major programmes and in the field offices will be consolidated and strengthened. The proposals for the biennium 1998-99 include a thorough review of budgetary, financial and administrative procedures in the Office for the purpose of defining the optimum approach to the development of a more integrated financial, administrative and personnel system.

78. The proposals concerning expenditure on internal administration will reflect a reduction of more than 7 per cent, some $3.3 million less than the level of the approved budget for 1996-97. These savings will be achieved by staff reductions, the renegotiation of leasing contracts and the subcontracting of certain operations.

79. The proposals concerning Programming and management are intended to adapt the planning, programming and budgetary processes still further to ensure that they effectively meet the expectations of constituents. The objective remains the continued improvement in the efficiency and effectiveness of the management of all the Office’s activities, and better integration of their results with the process of decision-making and the determination of future policy directions. The monitoring, evaluation and reporting system (MERS) is to be applied in a comprehensive manner throughout the Office, taking due account of the management requirements of individual departments and bureaux.

80. It is vitally important for the Organization to improve public awareness of its values and objectives and the impact of its work. It is therefore proposed to strengthen public information activities through the media using specially tailored products that make possible rapid dissemination to a wider public: these include news reports, interviews, audio-visual information, films and documentaries on specific subjects. Particular attention will be given to making the public aware of the ILO’s activities in relation to serious problems such as unemployment, poverty, exploitation, exclusion and attacks on workers’ fundamental rights.

Changes in the distribution
of resources

81. Because of the overall decrease in the total level of the budget the resources for most major programmes show a reduction compared to the Programme and Budget for the biennium 1996-97 as approved by the Conference.

82. In order to stress the importance of the active partnership policy and the requests from constituents in the regions for technical assistance, 20 per cent of the RBTC resources previously shown under headquarters major programmes excluding the Employers’ and Workers’ activities major programmes (some $1.8 million), are to be transferred to the regions. The RBTC resources for the Employers’ and Workers’ activities major programmes are maintained at the same level as in 1996-97.

83. The regional technical services provided to constituents will be strengthened in all regions. In Africa, an increase of $688,000 is proposed to be used to create a sixth multidisciplinary advisory team and to increase the resources available for field projects. In the Americas, the increase of some $456,000 will be largely used to increase the provision for field projects. In the Arab States, the provision for field projects will be increased by $180,000. In Asia, $404,200 will be used to increase the provision for field projects and $469,000 will be used to strengthen the existing multidisciplinary advisory teams. In Europe and Central Asia, a net increase of $719,000 in the total resources for the region is associated with the creation of a second multidisciplinary advisory team and an increase in the provision for field projects.

84. The resources for substantive and operational programmes at headquarters, excluding the Sectoral activities major programme and the effects of the transfer of RBTC to the regions, show a net increase of some $1.3 million, or 0.4 per cent as compared to the Programme and Budget in 1996-97, as approved by the Conference. This figure excludes the Sectoral activities major programme, the resources for which are to be reduced by some $3.7 million in accordance with the decision of principle taken by the Governing Body in November 1995 to reduce the number of sectoral meetings to be held in each biennium to 12.

85. The resources devoted to the substantive and operational programmes in the regions in the 1998-99 proposals amount to some $143.5 million which represents an increase of $2.3 million, or 1.6 per cent in comparison to the Programme and Budget for 1996-97 as approved by the Conference. Of the total increase, some $1.8 million comes from the RBTC resources transferred from the Headquarters major programmes to the regions.

86. The proposed resource level for the substantive and operational programmes at headquarters and in the regions accounts for 57.6 per cent of the total budget proposed for 1998-99, as compared with 55.8 per cent in the biennium 1996-97.

Other programmes

87. Six major programmes; namely major programmes 10 (International Labour Conference), 30 (Major regional meetings), 175 (Internal administration), 180 (Publications), 220 (Relations, meetings and document services), and 290 (Other budgetary provisions), account for over $18.7 million or some 86 per cent of the total savings of $21.7 million.

88. The provision for the policy-making bodies and the major programmes directly responsible for servicing them (i.e. major programmes 10, 20, 30, 210 and 220) will be reduced by some $11.4 million in comparison to 1996-97. This represents a decrease of some 12.3 per cent in comparison to the biennium 1996-97 and accounts for over 50 per cent of the reduction in the total level of the budget. Most of these savings ($6.3 million) will be made in the Relations, meetings and documents major programme and are a direct result of productivity gains and of the reforms of the Conference, the Governing Body, the regional meetings and sectoral meetings. Efforts to realize productivity gains and to reduce the costs of servicing meetings will continue to be actively pursued during the biennium 1998-99.

89. The remainder of the savings come from reductions made under the Internal administration major programme amounting to $3.3 million, the Publications major programme amounting to $2.0 million and the Other budgetary provisions major programme amounting to $2.0 million. The descriptions of activities for these major programmes provide further details of these reductions.

Staffing levels

90. The total number of work-years budgeted for all categories of staff under all sources of funds included in the proposals for 1998-99 show a decrease of 2.4 per cent (90/11 work-years). Under the regular budget, the decrease in work-years for all categories of staff amounts to 1.4 per cent (48/03 work-years). Within this overall reduction, there is a decrease in the number of budgeted work-years at Headquarters and an increase in the field. The chart below shows the transfer of staff resources from Headquarters to the regions in recent biennia in consequence of the active partnership policy.

91. The decrease in the number of Professional work-years budgeted at Headquarters, under all sources of funds, amounts to 2.7 per cent (or 28/04 work-years). In the General Service category, the decrease in number of work-years budgeted at Headquarters amounts to 9.0 per cent (or 111/11 work-years). In contrast, there are slight increases in the numbers of Professional and General Service work-years in the field, amounting to 0.9 per cent (or 4/04 work-years) and 4.6 per cent (or 45/00 work-years) respectively. In total, taking all categories of staff together the proposals for the biennium 1998-99 reflect a significant decrease of some 6.1 per cent in the number of work-years at Headquarters, which is offset by an increase of some 3.4 per cent in the number of work-years in the field.

Budgetary aspects of the proposals

92. In accordance with the Director-General’s commitment in the Preliminary Consultation document, the level of Part I of the budget, costed at 1996-97 rates, is $21.7 million lower in real terms than that of the present biennium. As regards Part II (Unforeseen expenditure), the same provision is proposed as in recent biennia, namely $875,000.

93. The Programme and Budget proposals for 1998-99, valued at the 1996-97 budget rate of exchange of 1.16 Swiss francs to the US dollar, amount to $569,080,000 representing a decrease in nominal terms of 1.8 per cent of the 1996-97 approved budget. A careful review of all elements of the Programme and Budget proposals as they apply in both field locations and headquarters has enabled cost increases to be limited to an overall rate of 2.02 per cent for the biennium. Full information on cost increases is provided in Annex No. 3.

94. The budget rate of exchange for the biennium 1998-99 will be set at the market rate at the time the budget is reviewed by the Conference Finance Committee. These proposals have accordingly been valued at the same budget rate of exchange (1.16 Swiss francs to the US dollar) as the Programme and Budget for 1996-97, both to facilitate comparison at the major programme level and because the cost of the proposals in both US dollar and Swiss franc terms will continue to evolve with the exchange rate changes until the budget is finalized.

95. As an indication, however, the market rate of exchange in December 1996 was 1.33 Swiss francs to the dollar. Should this rate remain valid in June 1997, the proposed budget level in dollar terms would be some $520 million with resulting assessments of some 692 million Swiss francs. At this rate of exchange the level of the Programme and Budget for the biennium 1998-99 would be 10 per cent lower in nominal terms than that for the previous biennium.

Prior consultation and cooperation with the United Nations and other specialized agencies in the United Nations system

96. The Director-General intends to implement the programme of work described in this document in close consultation and cooperation with the other agencies of the United Nations system. Consequently, whenever possible, the descriptions of programme activities identify work in respect of which collaboration is most needed. As in the past, it is anticipated that cooperation will in practice concern a much wider range of activities. In accordance with established inter-agency procedures, the Director-General has informed the heads of the other organizations about these Programme and Budget proposals and will inform the Programme, Financial and Administrative Committee of any observations he receives before the March 1997 session of the Governing Body.

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