Without functioning pluralism, the process of transition tends to bog down. Market mechanisms are slow to develop in the formal economies, but flourish in the informal. To varying degrees, political and administrative oligarchies have tried to keep control, and hesitated to develop Social Dialogue beyond mere formalities. Especially the employers have been hard pressed to organise and to become properly recognised. The new political constellations that emerge seem critical of ´time-consuming consultations°, preferring more direct ´action°. Employers as well as unions must rise to this challenge!

Since its inception in 1919, and according to its charter and principles, the ILO is intended to promote guidelines and practices that might secure pluralism in the civil societies. But this calls for capable, representative, and above all independent social partners that can settle matters between themselves and balance the influence and control of the legislative and executive powers of political establishments. In many of the countries in transition, these lessons do not seem to have sunk in, or even to have been accepted yet.

Without functioning pluralism, conditions in these countries are slow to change. Private enterprises may blossom and multiply è within the formal sector or outside it è and international enterprises and joint ventures expand their operations. But as long as political and administrative oligarchies retain control over large parts of industrial production and public procedures, transition remains erratic, the foothold of democracy limited, and the development of market mechanisms plagued by frequent short-circuits è especially in the formal economy.

The intended antidote to such tendencies è a pluralistic institutional infrastructure of independent social partner organisations balancing the influence and control of the political establishment over the civil society è has only partly become operational. The government side continues much as before, only with less control thanks to the growth of huge informal and black sectors. Trade unions are reforming, but are still largely focused towards governments and apparats simply because that is where the power remains è the power to decide, AND the power to sign collective agreements. Employers have established a surprising number of organisations, many in the very beginning of transition. Yet these are either more or less controlled by or through remaining Command structures, or simply ignored because they are inexperienced, weak and very hard pressed to finance sufficiently effective operations.

Practically all of the thirty-odd transition countries are members of the ILO, and most have ratified the basic conventions on Freedom of Association and on Tripartism. Still, only about half have established the required consultative mechanisms to develop meaningful Social Dialogue and industrial relations practices. And it is the employer side of things that is trailing. The confused ownership and control conditions for many large enterprises, utilities and services still leave large parts of the economy and labour force controlled or largely influenced by government and administration circles.

And as long as these remain in control, trade unions have little choice but to continue dealing with them è and so both industrial relations and Social Dialogue-tripartite consultations are left far behind their intended targets.

And worse still, recent interviews reveal that many leading new, liberal political leaders begin to question institutional pluralism and independent actors outside political control! "Do we really have to consult with unions and employers? It is such a waste of time. What we need now is to concentrate on getting things done, according to our priorities." This is not only not acceptable, it contradicts the experiences from the more successful transition developments, complicates the resumption of privatisation and other transition processes è and endangers for many of these societies their chances of long-term survival. If governments continue to ignore serious, organised employers, for whatever reasons, the political message is clear: support for informal sector businessmen, for grey and black profiteers. In these matters, employers must rise to the challenges, and unions beware of the status quo! BG