by Petra Ulshoefer
Director
The ILO Subregional Office (SRO) in Budapest covers a heterogeneous group of countries. Four subgroups may be distinguished: eight acceding countries to the European Union; two accession countries that form part of South Eastern Europe (Bulgaria and Romania); the Western Balkans (former Yugoslavia and Albania); and two CIS countries (Moldova and Ukraine). The current issue of our Newsletter focuses on the eight beneficiary countries of the Stability Pact for South Eastern Europe, which in recent years have become a priority concern for SRO Budapest in conjunction with the ILO’s technical departments and the Regional Office for Europe in Geneva.
The region of South Eastern Europe has about 60 million inhabitants. It is multiethnic and religiously diverse, and according to recent EU data, average income per capita ranges from USD 460 in Moldova to ten times that amount (USD 4640) in Croatia. The population has suffered from several wars in the 20th century, most recently the 1991–1999 conflicts affecting Bosnia and Herzegovina, Croatia and Serbia-Montenegro, which caused massive displacements and migrations of refugees. It is necessary to bear in mind the historical and cultural background of these countries in order to better understand the severe economic problems, governance constraints and frequent lack of trust in dialogue that they currently face. Since 1989, profound changes have occurred in all countries in the region, bringing them closer to integration with the European Union. However, the path to established democracies and mature civil societies built on a respect for human rights and the rule of law remains a long one.
The EU’s most important instrument for maintaining close contact with the region, helping these countries undergo political and economic transition and fostering basic stability and prosperity, is the Stabilization and Association Process (SAP) proposed by the EC in 1999 for the Western Balkans. The Stabilization and Association Agreements (SAAs) are a cornerstone of this process, focused on respect for democratic principles and stronger links with the EU single market. The agreements also include assistance through the CARDS programme. In Albania, negotiations for an SAA have been underway for one year. In Bosnia and Herzegovina, a feasibility study has been approved by the EU, and such a study is underway in Serbia and Montenegro as a precursor to negotiations for an SAA. Croatia and Macedonia signed SAAs in 2001.
The major challenge for the region is economic recovery, needed to overcome a severe lack of employment and reduce widespread poverty. In general, poverty is deeper in the countryside than in towns, and affects children, the elderly, households headed by women, Roma, refugees and other displaced people most severely.
Although macroeconomic trends have been positive, FDI has concentrated on Croatia, Bulgaria and Romania. Other countries are burdened by both an underdeveloped infrastructure and a lack of security for foreign investors – in terms of legal and property rights, political instability, lack of efficient governance structures, and widespread corruption. In 2003, economic growth was 4.6% in the region, according to recent UNECE data, but the pace of growth is uneven between countries as well as within them. Unemployment is high and long term, but many of those registered as unemployed work in the “grey” or informal economy. (See the article “Labour markets in the Stability Pact countries of South Eastern Europe”, by Sandrine Cazes.)
Croatia is an exception to the regional trend, with relatively high per capita income. It applied for EU membership a year ago, and expects to join in 2007. In the course of 2004, the European Council will decide whether and when to open accession negotiations with Croatia. Despite rapid privatization and tangible structural changes supported by considerable financial support from the EU, the preparation for the EU accession of Bulgaria and Romania in the coming three years will still require major efforts – as recently confirmed in statements of EU officials and the European Parliament.
All countries in the region are undergoing deep changes in their social protection systems, including pension reforms. The challenge is to strengthen the governance of social protection schemes so that they function more efficiently and effectively, thereby contributing to economic recovery efforts while minimizing social exclusion. (See the article “Stability Pact countries strive to improve social services”, by Elaine Fultz and Urszula Lonc.)
New legal frameworks and institutional arrangements improving safety and health at work are also being set up in the countries of South Eastern Europe. Labour inspection plays a key role in monitoring legal compliance and promoting awareness among workers and employers – a field of action that requires long-term efforts to change attitudes. (See “Making work safe: The challenge in South Eastern Europe”, by Annie Rice.)
Institutions for tripartite Social Dialogue have been set up in all countries in the region as a tool for handling economic and social reforms as well as to give a voice in policymaking to the social partners while eliciting their support. They are also seen as a means of reducing tensions between governments and the social partners resulting from the difficult path of economic and social transformation. The institutionalization of tripartite Social Dialogue started in Bulgaria and Romania in the early 1990s, and later in the other countries of the region. (See the overview article “Tripartite Social Dialogue in South Eastern Europe” by Youcef Ghellab and Beate Elsaesser, as well as national contributions by Alfred Topi on Albania and Cristina Mihes on Romania.)
Nevertheless, Social Dialogue still faces difficulties in Stability Pact recipient countries, in part due to the weakness of the social partners. Trade unions suffered a loss of members during privatization, and fragmentation among organizations is also difficult to overcome. Meanwhile, in several countries there are still no laws guaranteeing freedom of association for employers’ organizations. In addition, membership fees are still not fiscally deductible costs in many countries, and in others even collecting these fees from members remains a difficult task. Social Dialogue is sometimes also hampered by a lack of political will on the part of governments to engage in meaningful consultations with the social partners on economic and social policies. The ILO is committed to working with tripartite constituents in these countries to enhance their capacity to participate fully in Social Dialogue on reform policies.
Four of the countries in the region have developed a Poverty Reduction Strategy Paper (PRSP) process, initiated by the World Bank and led by governments (often the ministries of labour), in consultation with a broad range of stakeholders. However, social partners are not always fully involved. Albania adopted its National Strategy for Social and Economic Development (NSSED) in November 2001, emphasizing public investment in education, health and rural development. Bosnia and Herzegovina has recently completed its PRSP final document, which foresees support for entrepreneurship, faster growth of the private sector, and labour market reforms. Moldova prepared a comprehensive Strategy for Economic Growth and Poverty Reduction (EGPRSP) in 2003, focusing on both economic growth and social policies in health care, education, social insurance and protection. Serbia and Montenegro adopted separate PRSPs in 2003. The PRSP of Montenegro, published in November, contemplates ILO assistance in the adoption of laws on the regulation of the labour market in the transition process, the ratification of international conventions, and ensuring a higher level of cooperation between the ministry of labour and the ILO.
The Stability Pact for South Eastern Europe was launched in 1999 as a coordination framework among international actors with the aim of achieving lasting peace, economic growth and stability in the region. In its recent yearly meeting in Tirana, Working Table II on Economic Reconstruction, Development and Cooperation focused on social cohesion, enhanced employment generation, gender mainstreaming and deepening subregional cooperation. The Table is fostering the integration of Kosovo into regional activities through enhanced cooperation in compliance with UNSC Resolution 1244. The Initiative for Social Cohesion (ISC), launched in 2001 under the auspices of the Stability Pact, focuses on the social dimension of economic recovery and has identified five areas for strengthened coordination among countries, donors, multilateral institutions and international agencies – the reform of systems for social protection, Social Dialogue, social housing, health policy and employment.
The ILO is actively involved in the meetings of the ISC, and has a lead function in three of the areas mentioned. The concept of social cohesion is closely linked to our Decent Work agenda – the need for creating jobs to “work out of poverty”, equal treatment and non-discrimination, minimum standards of social security and safety at work for all, and good social and economic governance. While the transition process has opened new markets and mobilized huge potential for growth, resources and productivity, at the same time many people have become more excluded and vulnerable. Mentality is changing very slowly, and higher competitiveness has often evolved into a lack of solidarity. Efficient government structures are needed to stimulate growth and create safe conditions for work and capital investment, but also in order to make the rule of law operational and create compensation mechanisms for the poor and excluded. But the state is not able to achieve these objectives alone. It needs the active participation of civil society and the social partners – including those at the regional and local levels. Trade unions and employers’ organizations should be strengthened to propose feasible strategies in line with the interests of their members, but also with a view to achieving the overall development goals of their countries. (See “Trade union strategies for decent work in South Eastern Europe” by Dimitrina Dimitrova.)
Partnerships among diverse stakeholders through networking can mobilize and pool resources. While each country requires tailor-made solutions to match its specific characteristics and conditions, each country can learn from the experiences of its neighbours and those who have longer experience in setting up new structures in the transition process. The ILO is increasingly using the expertise of the acceding countries to transfer knowledge and skills to South Eastern Europe.
The ILO is committed to assisting countries, governments and social partners in reforming their economies and labour markets, as well as their legal frameworks and welfare systems. Three major projects are being implemented in the eight countries, in the framework of the ISC, using both a subregional and national approach:
1. Review of employment policies and of the performance of employment services (together with the Council of Europe)
2. Strengthening social protection in South Eastern Europe (financed by the French government)
3. Strengthening Social Dialogue and tripartism and enhancing technical expertise in labour law and non-discrimination (financed by the governments of France, Italy and Belgium)
In addition, the ILO is developing a project on labour market information systems, aimed at improving the utilization of available information, including labour market indicators, to formulate employment policies. Other areas of technical cooperation in the region are small enterprise and local economic development, microfinance for selfemployment, vocational training schemes for persons with disabilities, and combating child labour and trafficking in human beings. (See “ILO against human trafficking in Albania” by Alfred Topi.)
The SRO’s multidisciplinary approach reflects the ILO’s holistic view of the indivisible nature of economic and social development. The ILO’s contribution to the transition process in South Eastern Europe is raising the visibility of employment and social protection as part of economic and financial policies and poverty reduction, and the inclusion and active involvement of social partners in the reform process.
|
 |
|
| ILO Film |
| Fully fit at work |
Film about the advantages of employing persons with disabilities. As this ILO film (Fully Fit at Work) shows, not only may people with disabilities be more productive, they may actually be more skilled in some jobs than non-disabled people. Produced for the ILO by the Andrzej Wajda Master School of Film Directing.
Watch the film online in Polish with English subtitles. Duration: 21 min 11 sec
If the video is not displayed, download the free RealPlayer™
Press release in English and
Polish |
| Events & campaigns |
World Day Against Child Labour
12 June 2008
Education: The right response to child labour
» read more
|
| ILO, UN deliver as one in Albania |
| |
|
|
|
|
| |
|
A package for social and economic progress
The Albanian pilot of the One UN Programme will make use of the experiences of the International Labour Organization (ILO) gained in the field. As the only tripartite organisation within the United Nations system, the ILO plays a key role in involving social partners in the recently launched UN reform process.
more
|
|
|
|
|
