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GB.274/9/3
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NINTH ITEM ON THE AGENDA
Reports of the Programme, Financial and
Administrative Committee
Third report
Contents
Programme and Budget proposals for 2000-01
General discussion of the programme and budget proposals
Strategic Objective No. 1
Strategic Objective No. 2
Strategic Objective No. 3
Strategic Objective No. 4
The Turin Centre and the International Institute for Labour Studies
Technical and sectoral meetings
Strengthening institutional capacity and rapid ILO response
1. The Programme, Financial and Administrative Committee of the Governing Body met on 8, 10, 11 and 18 March 1999 under the chairmanship of Mr. N. Akao, Chairperson of the Governing Body. Mr. Marshall (Employer spokesperson) was the Reporter.
Programme and Budget proposals for 2000-01
(Ninth item on the agenda)
2. The Committee had before it the Director-General's Programme and Budget proposals for 2000-01.(1) Volume 1 of the proposals comprised an executive introduction by the Director-General; the strategic programme and budget, which included a number of information tables and graphs; and a draft budget of expenditure and income for 2000-01. Volume 2 comprised summary tables giving the proposed expenditure budget by appropriation line, also regular budget estimates and analysis by increases and decreases; programme descriptions and estimates by major programme; and a number of information annexes.
3. The Committee's discussion was opened by the Director-General, who introduced his proposals. His statement is reproduced in Appendix I.
4. After a recess, the Committee began its discussion of the programme and budget proposals.
General discussion of the programme
and budget proposals
5. Mr. Marshall, speaking on behalf of the Employer members, offered congratulations to the Director-General and to his staff on this first strategic budget presentation. Producing such a document required a very different way of thinking. Indeed, it was not simply a budget, but a framework from which new organizational structures and operational procedures would evolve. A budget of this type was part of a continuous process, not a static document locked in for rigid application over the full two years of the biennium. Quite the contrary, it was a set of priorities, expressed as objectives, supported by programmes of action and targeted at clear outcomes. However, if priorities changed owing to unexpected external or internal circumstances then obviously the programme and budget must be able to be reviewed and be capable of adjustment in order to meet those priority needs. This type of flexibility within prescribed envelopes was a requirement in the modern world. There would of course be elements in the proposals which needed discussion and there might well be some omissions from the document which needed consideration, but the Employers believed that the fundamental structure of the document was sound. The detail would be discussed now by the Committee, reviewed again in the light of the Conference debate and then come back to the Committee for final consideration prior to final adoption by the Governing Body at its November 1999 session.
6. Somewhat unusually, but owing to unavoidable circumstances, the total of income would be agreed by the International Labour Conference before the adoption of the final programme details. The Employer members believed this was acceptable on this occasion, but it should not necessarily be accepted as the appropriate mechanism for future biennium discussions. In normal circumstances an attempt should be made to put forward a full programme of activities properly costed against short-term objectives, targeted to meet longer term strategic objectives, with the total package adopted at the March PFAC for proposal to the Conference. The proposals quite correctly confirmed the delegated authority that the Governing Body had conferred on the Director-General, but in giving that delegated management authority it still retained its responsibility for governance. This meant that communication between the Director-General and the Governing Body had to be open and frank. It had been so far, and the Employers appreciated the clear indications that it would continue. Furthermore, the Director-General had signalled his intention to provide measurement tools through agreed performance indicators. These should be put in place as early as possible both to give an assurance to the Governing Body that existing resources were being effectively utilized and also to support the Director-General in measuring the progress being made.
7. The Employer members believed that this was a budget for change, where change was seen as positive and necessary to achieve specific outcomes -- not change for its own sake. A process had been started which would not only reinforce the credibility of the ILO, but reinforce its place as undisputed leader in its field, providing timely and relevant services over a broad range of interests and guided by its constitutional mandate.
8. The Employers fully accepted the four strategic objectives, or the four pillars as they were referred to, as being the proper priorities for the ILO at the moment. They were not totally independent of one another, and would in fact work together in mutually supportive ways. The key to strategic planning was an evaluation and measurement of progress, success or failure. With limited resources the ILO should ensure that they were used in the most efficient way towards meeting the needs of member States. It should strive for excellence. It should not shirk a challenge but it could not be, and should not try to be, all things to all people. It should as far as possible stick to its core business and areas of expertise, but recognize the competencies of other organizations and build cooperative relationships and networks capable of adding value to its own activities.
9. It was important to maintain an appropriate balance between the activities of standard setting, supervision, research and technical cooperation because each had its own role to play in building the Organization's credibility. The criteria in determining the approach to be taken were established by constituents as a response to customer demand. Right now constituents were seeking a base network of credible and relevant standards and a supervisory machinery for standards which would promote education and development. They were seeking research which was solid, professional and forward-looking, which took full advantage of the breadth of experience within the ILO as well as the expertise and experience of the constituents, and which was not reactive or founded on preconceived ideas. Lastly, they were looking for technical cooperation targeted to making a difference where it counted. For those reasons the Employers were pleased that employment generation had been given the priority that it deserved because it was an activity much in demand by constituents.
10. The Employer members supported moves towards decentralization, with greater emphasis on delivering services in the field, but it was important in so doing not to lose directional control or functional accountability. Retaining the tripartite structure in field activities was important in view of the role that employers' and workers' organizations could play at the practical level. Although the ILO should make the best use of scarce resources it should be careful not to spread itself too thinly so as to avoid damaging its credibility. The ILO should be valued and used, but it should take care not to dilute its tripartite structure through attempts to create new direct relationships with others. This was not elitist; ILO constituents had relationships with many bodies within their civil societies and those networks should be used instead of wasting resources creating direct linkages with other parties.
11. As the Office paper pointed out, employment generation was the engine for social progress. But this in turn was the direct result of the economic policies put in place. Employers themselves were not in business with the sole objective of creating jobs or employing people. That was not their fundamental role, although they of course accepted their responsibilities to their employees and to society as a whole. Governments had the primary responsibility for creating a climate conducive to employment creation, and they were also responsible for putting into place the standards to be respected by the employers. Similarly, it was for governments to establish the labour market policy frameworks which had a major impact on labour costs and on job creation and job retention in the market.
12. As an organization the ILO should not see itself as necessarily having to compete with others. But by cooperating with others it would progress by sharing and pooling its resource and knowledge bases and pooling its service capacity and advocacy skills to achieve common objectives. The ILO was right to place such emphasis on human resource development, personnel policy and training because they were central now to the strategic focus of ILO activities.
13. The Employer members supported the proposal for continued zero nominal growth. At this stage the customary expenditure of each department in detail was not available but even so there were some difficulties with the linkages between Volumes 1 and 2 of the proposals. It would be clearer if Volume 2 could be restructured, with departments making proposals based on strategic priorities, showing properly costed and measurable short-term objectives and how departmental activities supported the strategic objectives of the Organization. This additional information should be available at the next session of the Governing Body. In summary the proposed approach to budgeting was a new departure for the ILO and would enhance the effectiveness of its programmes. The Employers agreed with the priorities established through the four strategic pillars and with the continuation of the zero growth regime, but it would be useful to have clarification on the following matters:
14. First, there should be some reassurance on putting into place or strengthening existing performance management and programme evaluation systems.
15. Second, there should be clarification of the reporting mechanisms for the maintenance of good governance. Just two full Governing Body meetings per year had been proposed although this would be discussed in more detail at a later stage. It might be time to consider the role, structure and approach to governance in the light of the new management structures envisaged, and this could well lead to a new, perhaps more innovative approach to the work of the Governing Body.
16. Third, there should be more information on the Office's human resource development intentions, with specific budgetary allocations for the organizational changes required, and for training and reorientation programmes for the new strategic planning methodology.
17. Fourth, there should be clarification of the operational systems needed for the four pillars and InFocus programmes related to cross-cutting departmental activities, and how programmes listed in Volume 2 would be tied in to the strategic budgeting process.
18. Finally, there should be a reassurance concerning the continued relevance of the tripartite structures within the ILO, with ACT/EMP and ACTRAV as equal parties with adequate resources to support the policies and programme activities at all levels of the Organization.
19. Mr. Blondel stated that while the Worker members accepted the proposals in general terms they had reservations about several points. The new presentation in two volumes made the document as a whole easier to read and understand. The new Director-General had only just taken office and the task of preparing the budget in collaboration with the Office has thus fallen in the main to him and his Transition Team. Thanks were due to all who had contributed to this work which also would act as a base for the Director-General's Report for the Conference, which would define his vision and the ILO's future priorities.
20. The Governing Body had decided last November, in this exceptional case, to grant the Director-General more flexibility with regard to the allocation of budget resources to the different programmes and for the detailed allocations to individual programmes to be discussed at the November 1999 Governing Body session. The Workers also supported the Director-General's intention to introduce reforms to management structures and programme activities and to make them as operational as possible. In this connection, Mr. Blondel had insisted there should be consultation among all three groups during this period and the Worker members would like more precise information on what form it would take.
21. In the text of the programme and budget proposals, the Director-General's introduction summed up the main themes of the budget and gave details on the strategic budgeting process as well as the steps to be followed during the remainder of 1999. The introduction confirmed that the principle of zero growth would continue and that the proposed expenditure was at the same level as in 1998-99. Tables 2 to 6 showed the net cost savings by comparison with 1998-99 amounting to $785,000 which had been added to the forecast for 2000-01. They expressed full support for the four strategic objectives of the programme and budget which accurately reflected activities at the core of the ILO's mandate. The main envelopes of expenditure corresponding to these objectives shown in table 1 on page 5 were still only indicative, including the percentage for each. However, the distribution of technical programmes, regional programmes and support activities according to the strategic objective framework was somewhat arbitrary and it was extremely difficult to avoid overlaps.
22. The Workers welcomed the concept of InFocus programmes to address priority issues for ILO constituents. These inter-sectoral programmes replaced the proposals for action programmes put forward last November, and $8 million of resources would be similarly transferred. The social partners should be involved at every level in the implementation of these programmes. Details of their implementation would be discussed next November but the Governing Body should be kept informed of progress in the meantime. The Workers were pleased to see the extent to which gender issues had been taken into account in the implementation of the four strategic objectives, and that development activities were such a major component of the proposals for 2000-01. Many developing countries were weighed down by the burden of structural adjustment programmes imposed by the IMF and the World Bank, and the ILO had to continue making a firm and determined effort to bring about a shift in the policies of the Bretton Woods institutions so that they would recognize the importance of fundamental international standards for economic and social development. In doing so it should try to play a more prominent role in the elaboration of socio-economic policies at the international level and with other international organizations such as the IMF, the World Bank and the WTO. These efforts would be fully consistent with the values upon which the ILO had been founded and which were just as relevant 80 years later.
23. The Workers would have preferred to see special attention given to environmental issues and the activities of multinational enterprises. The ILO should carry out studies on the employment impact of environmental damage and proposed protection measures, perhaps by expanding the InFocus programme on health and safety under the third strategic objective. It should also pay more attention to the activities of multinational enterprises. It was not just a matter of contesting their existence at a time when they were coming into their own with globalization of the economy, but of taking a closer look at their behaviour.
24. Follow-up on the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy was of course of crucial importance but the proposals fell short of the mark. The crucial question was how multinationals would apply international standards. This problem would merit discussion in the Governing Body or the subcommittee dealing with the subject, and the Workers stressed the importance of ensuring that adequate resources were allocated for this purpose when the budget proposals were formulated in the coming months.
25. On the promotion of employment in small and medium-sized enterprises, it was important to strike a balance in the application of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), which, among other things, emphasized the need to promote respect for fundamental workers' rights in these enterprises, especially with regard to improving occupational safety and health and the abolition of child labour. At the same time efforts should be made to improve income, conditions of employment and social protection in the informal sector.
26. The Workers agreed with the programme for sectoral and technical meetings proposed in paragraphs 116 and 118 of the document, and strongly supported the suggestion that the agendas of sectoral meetings be aligned as far as possible with the four strategic objectives of the budget. They supported also the Director-General's proposals with regard to strengthening institutional capacities and rapid ILO response. The need for the ILO to respond rapidly and effectively to unforeseen events affecting matters within its terms of reference was borne out by recent examples such as the Asian crisis and the economic upheavals in the Russian Federation and Latin America.
27. The Workers asked whether the 166 posts in the substantive units and senior management levels and the 62 posts in the General Service category, which had been frozen in the previous biennium, had been included in the budget for the coming biennium and, if so, whether the Office intended to fill these posts. Looking more closely at the financial details it appeared that in addition to the net cost savings of $785,000 due to cost variations, other savings estimated at $12 million for the 1998-99 biennium could offset anticipated cost increases for 2000-01. A solid inflow of contributions for 1999 could also result in a fairly substantial surplus, but the Workers had certain misgivings in view of the current evolution of exchange rates. Further falls in the exchange rate of the Swiss franc to the dollar would result in an increase in the budget in dollar terms, as pointed out in paragraph 145.
28. As a concluding summary, the Worker members welcomed the proposals put forward by the Office. They agreed on this occasion and as an exceptional measure that there should be an element of flexibility given to the Director-General concerning the detail of the proposals for 2000-01 but they were concerned to see that the budget discussions did not become merely an accounting exercise. As a final point it would be useful to know how the Director-General intended to hold formal and informal consultations on the allocation of budget resources from now until the Governing Body session in November.
29. The representative of the Government of Canada, speaking on behalf of the IMEC members, expressed satisfaction that the documents responded in both form and substance to the proposals made by IMEC in November 1998, and its concerns on the future content and process for completion of the programme and budget, were addressed by the Director-General in his introductory remarks.
30. The IMEC members appreciated the extent to which the Director-General had advanced the November document and further developed the concepts, main themes and emphasis within the four strategic objectives to present a clear and focused picture of the fundamental elements of the ILO's programme of work. This was particularly commendable given the very short time-frame to revise the documents. She wished to express thanks to the Director-General, the Office and the Transition Team for a job well done. The documents had been developed in exceptional circumstances, with known constraints due to the transition period and the fact that a number of key policy discussions at the June 1999 Session of the International Labour Conference would influence the detailed definition of programme activities. Volume 1 was a welcome starting-point for a fully developed strategic budgeting approach. The IMEC members looked forward to further articulation of specific targets, clear outputs and measurable performance indicators for the objectives, as well as resource allocations with the traditional staff and non-staff breakdowns. Figures for the four strategic objectives were understood to be indicative and should also be reviewed. As the November 1999 document would be the basis for decisions on finalizing the 2000-01 programme and budget, sufficient time should be allocated for this discussion. The November 1999 exercise should be seen as exceptional due to the major changes under way, and the document would provide the baseline for monitoring and evaluating results in accordance with strategic and operational objectives, and would afford the opportunity over the biennium to refine and further elaborate objectives, targets and performance indicators as necessary. These would be fully integrated with resource allocations into the next programme and budget for discussion at the March Governing Body prior to the Conference, as was the usual practice.
31. The continuous process of monitoring, assessment and reporting was an integral part of the strategic budgeting concept, and a fundamental management and government tool for the Director-General and the Organization. It allowed for formulation, expansion, reduction or elimination of programmes and activities on the basis of lessons learned from internal and external evaluations, changed circumstances or emerging priorities. The IMEC members therefore welcomed the Director-General's commitment to develop an effective monitoring and evaluation function early in his tenure and to report regularly, fully and objectively to the Governing Body on the use of funds and programme results. IMEC also encouraged the Director-General to continue his extensive consultations with constituents, a process greatly appreciated by the IMEC members.
32. Turning to the specific aspects of the programme and budget proposals, IMEC first expressed full support for the mainstreaming of gender and development in the ILO's programmes and activities. Second, it welcomed the alignment with the strategic objectives of a number of cross-cutting means of action such as research, publications, public relations and information. This would reinforce the coherence of programming and the consistency of the ILO's message and image for its constituents and also for the international community as an effective knowledge-based organization.
33. Third, the alignment of regional programmes to the strategic objectives would assist in a clearer definition of country objectives, which provided the basis for field programmes and constituent services, as well as the allocation of resources and personnel in the field offices and the multidisciplinary advisory teams (MDTs). IMEC supported the need for a review of structures and of the Active Partnership Policy (APP), as outlined in paragraph 125; the relationship of the field structure with headquarters was an important aspect of this review.
34. Fourth, as noted in paragraph 118, and as mentioned by the Worker spokesperson, the IMEC members agreed that an analysis of technical and sectoral meetings should be made to ensure that those selected contributed most to achieving the strategic objectives.
35. Fifth, the IMEC members supported the Director-General's emphasis on coherence for technical cooperation programmes, whether funded from regular budget or from extra-budgetary funds. Such programmes should have a clear relationship to the strategic and operational objectives to ensure that their focus was not dispersed by either supply or demand. The concept of the InFocus programmes, and the reassurance that they would be supported from the regular budget as well as from extra-budgetary funds, was likewise welcome. Finally, they were in agreement with the draft budget of expenditure and income outlined on pages 55 and 56 of Volume 1. They looked forward to genuine efficiency savings on programme delivery in the next biennium to ensure that maximum resources were allocated to priority programme activities. In conclusion, the IMEC members again expressed appreciation to the Office for the documents and they looked forward to working with the Director-General on further developing the programme and budget, its underlying processes, and other related change.
36. The representative of the Government of Japan, speaking on behalf of the Asia and Pacific members, appreciated the new approach to strategic budgeting and looked forward to its further development. The document was more readable and encouraged discussion on the ILO's objectives and priorities, allowing funding to be directed in a focused approach towards these areas. With regard to strategic objectives, the members appreciated the inclusion of many ideas to which it attached importance. It generally supported the four strategic objectives and welcomed the InFocus programmes identifying the ILO's priority areas, and the attempt to mobilize resources. These reflected the Asia and Pacific members' overall objectives included in its statement to the November 1998 Governing Body. In particular, they were pleased to see the inclusion of, and emphasis on, development issues, the informal sector, micro-finance, gender issues, and rapid response capacity -- especially in regard to financial crises -- and the new stress placed on developing the ILO's analytical capacity and looking at programmes in a contextual way. At the same time, there should be even more emphasis on employment creation and poverty alleviation.
37. Regarding flexibility and timing of the budget procedure, the Asia and Pacific members appreciated the need for flexibility in the timing of the budget finalization in view of the changeover of Directors-General and the budget restructuring. They could also go along with the proposed changes in time line for the present biennium. However, even after the programme and budget discussion at the June 1999 Conference there needed to be an improved way to involve the Governing Body in consultations and approval from time to time to ensure that the finances were being managed in the most efficient manner. Furthermore, more information would be needed on the contents of the documents to be issued for the June 1999 Conference and the decisions that would be expected of the November 1999 Governing Body session.
38. The Asia and Pacific governments appreciated the proposals made by the Office on reporting to the Governing Body, improvements in monitoring and evaluation systems and the introduction of performance indicators for programmes. Monitoring and evaluation procedures were especially important in a strategic budget as they would increase transparency and lead to efficient management and continued improvement in programmes and use of resource; the results of this work should be shared with the Governing Body and reflected in the drawing up of the programme and budget for the following biennium.
39. The Asia and Pacific members supported a budget level based on zero growth but it was most important that the resources should be used in the most effective manner. Savings should be found in administrative activities and redirected to the ILO's priority programmes. They stressed that adoption of the strategic budget should be accompanied by a rigorous oversight system. They welcomed the concept of InFocus programmes in both the regular and the extra-budgetary programmes. The ILO should maintain control over the programmes in close consultation with governments and the social partners, maintaining a balance between the wishes of the donor countries and the aims and objectives of the Organization. When dealing with extra-budgetary resources the ILO should carefully consider the relevance of a proposed programme to the strategic budget and objectives set out in the budget document, and it should endeavour to include some portion of the regular budget in all programmes financed from extra-budgetary resources to demonstrate its own commitment.
40. Turning then to specific comments on parts of the proposals, the Asia and Pacific members believed that technical cooperation should be the means of action for Strategic Objective No. 1. The purpose of the follow-up to the Declaration on Fundamental Principles and Rights at Work was not only to identify areas needing technical assistance but also to assess the way the assistance was delivered, and the follow-up should be independent of the International Labour Standards Department. There also seemed to be some duplication in operational objectives 1(a), 1(b) and 1(c) of Strategic Objective No. 1, as well as in some of the InFocus programmes.
41. Regarding Strategic Objective No. 2 -- employment -- the members believed it deserved the highest priority. In the light of the current situation in the world today, particularly the global economy and the effects of the Asian financial crisis, even more emphasis should be placed on employment. The ILO should look at how employment could be related more closely to the other strategic objectives if it wished to have the lead role in the area of employment. They recalled that the World Summit for Social Development held in Copenhagen in 1995 had given the ILO a specific mandate to focus on employment-related activities so it should devote particular attention to development and poverty alleviation as integral components of its efforts to realize this particular strategic objective.
42. The Asia and Pacific members also would like more information on technical cooperation, in particular how it would be allocated across the strategic objectives and in the different regions. Each objective should be supported by specific technical cooperation activities as the most important means of action towards achieving them. They also attached great importance to the question of child labour, and supported the emphasis on this problem. The problem of child labour, especially in the context of poverty, economic deprivation and parental unemployment, was extremely complex and should be dealt with sensitively. The inclusion of the ILO's International Programme on the Elimination of Child Labour (IPEC) under operational objective 1(c) and as an InFocus programme was welcome, and efforts should be directed towards the progressive elimination of child labour, starting with its worst forms and not focusing on specific industries. The budget document should address the growing gap between strategic and realistic objectives in the field in order to maximize the impact of the IPEC programme. IPEC should therefore be dealt with in cooperation with the national child labour eradication programmes of participating member countries.
43. Turning to the regional programmes, the members appreciated the increase in funding for field programmes in the Asia and Pacific region, which had the greatest number of the world's poor people. This unfortunate situation had been further aggravated by the Asian financial crisis, and now, more than ever, the assistance of the ILO was vital.
44. The representative of the Government of Panama, speaking on behalf of the Americas group, expressed appreciation for the clear presentation of information in the two documents. There would be time to study them in greater detail before June so that at the time of the 1999 Conference there would be a clearer idea of what the ILO wished to achieve. The American regional members agreed with the concept of a zero growth budget in the present economic climate. This whole problem had been monitored closely over recent biennia but zero growth was still the appropriate strategy even for the new strategic budgeting process. They were happy to express their support for the presentation and content of the Programme and Budget proposals for 2000-01.
45. The representative of the Government of Algeria, speaking on behalf of the African regional members, congratulated the Office on the quality of the documents produced. The proposals had been prepared in close consultation with the outgoing Director-General and the benefits of this collaboration would be of great value to the Organization and to its constituents individually.
46. In his introduction the Director-General had indicated that this programme and budget would be valuable as a major management tool. They welcomed the new presentation based on four strategic objectives and their accompanying operational objectives, which clearly had increased the transparency and readability of the document. The ILO should continue to be a knowledge-based centre of excellence, to the benefit of all its constituents. The African group also favoured the proposal of the Director-General to set up a structure to manage crises in Africa and Asia.
47. The increase, slight but real, in budgetary and extra-budgetary resources in favour of Africa was a welcome development. In spite of the fact that priorities had been based on country objectives it was true that 13 African countries had seen little benefit. The African regional members expressed their concern and urged the Office to take remedial action.
48. A number of specific points had to be made about the strategic objectives described in the document. The first related to the Declaration on Fundamental Principles and Rights at Work and its Follow-up. The African members supported all initiatives targeting countries which had not yet ratified the fundamental Conventions, especially the Minimum Age Convention, 1973 (No. 138), but measures should be taken to intensify the ratification campaign. However, additional clarification was required on the ways and means for the Office to increase the number of ratifications and how it intended to proceed with measures to protect children and progressively eliminate child labour during the 2000-01 biennium.
49. As to the three other objectives -- employment promotion, poverty alleviation and social dialogue -- the African members were in complete agreement with the Office's assessment of the current situation in Africa with regard to poverty, unemployment and underemployment. A considerable number of African countries were courageously applying structural adjustment programmes at high social cost. Here, too, the ILO should devise innovative policies specifically adapted to Africa in order to mitigate the effects of unemployment and underemployment. While far-reaching economic restructuring had in some cases stimulated economic growth, it was equally true that such economic revisions had their limitations. It was clear that the conventional remedies and measures advocated and applied were often unsuitable and always painful when not seen as part of a broader picture in which each country's social fabric was duly considered. Lastly, they particularly welcomed the provision of resources for employers' and workers' organizations with a view to establishing and strengthening social dialogue, which was the best vehicle for democracy. As a concluding comment they appealed to the Office to strengthen the MDTs in Africa in terms of both financial and human resources.
50. Mr. Anand (Employer member) endorsed the comments made earlier by Mr. Marshall. The two volumes under debate were visible evidence of a new approach to budgeting in the ILO, but although they might give statistical information in well-presented tables on resources and allocations they should also indicate, on the basis of input-output ratios, the estimated achievements in physical terms following the investment. As it was, the documents resembled an election manifesto in tone and language, without targets being indicated for any of the vital elements in the four objectives. This should be rectified between now and November 1999 so that at the end of the year the Governing Body would know whether or not targets had been met. These measurement indicators would enable it to evaluate the effectiveness of the new strategies.
51. The Director-General's statement to the Governing Body and the executive introduction in Volume 1 emphasized strategic objectives and InFocus programmes, all worthy of support. But, cumulatively, what purpose did their implementation serve? They aimed at sustainable social progress with the elimination of poverty and the promotion of productive employment as core objectives, but this required visionary leadership and an action-oriented organizational structure. There should be more emphasis on field programmes because that alone would open new avenues of employment, particularly in the informal sector and with small and medium-sized enterprises.
52. Fundamental principles and rights at work had a meaning only if work was available to the millions of urban and rural unemployed youth. At present employment in many manufacturing sectors was under threat for various reasons, especially in Asian and African countries. The mobilization of productive economic resources had yet to be accepted as a top priority and there was no clear-cut and unequivocal acceptance of this basic approach in the Office documents.
53. Personnel policy in the ILO was another issue. As a service, knowledge and advocacy organization the ILO's success would depend on the reorientation of its personnel policies from top to bottom, both at headquarters and in the field. ACT/EMP had a major role to play in strengthening the social partners and this should be developed further. Without a programme for continuing staff training the Director-General would find it difficult to make the best use of ILO human resources. In IPEC top management procedures needed to be simplified. The role of steering committees -- both national and international -- should be made less regulatory and should contribute more to the periodical monitoring of projects for best results. These actions should be given higher priority.
54. The World Summit for Social Development gave high priority to programmes for the eradication of poverty; the ILO had a duty to play a major role in this work, and there was room for improvement in its performance so far. Poverty eradication, employment promotion and the preservation of an eco-friendly environment, prime challenges for the world's future existence, ought to be placed at the top of the four strategic objectives. Governments should do more in their efforts to alleviate poverty, and the Director-General should take urgent action to make these programmes more visible. He would have to persuade member States of the need for immediate action if there was to be any chance for the impoverished millions of the world, in particular in South Asia and sub-Saharan Africa. Only if the ILO acted now would it justify its continued existence to future generations.
55. The representative of the Government of Croatia appreciated the great efforts made by the Office, as well as the Transition Team, to prepare the new documents reflecting all aspects of the discussion during the November 1998 Governing Body. All activities within the ILO's mandate were described under four strategic objectives covering the most important subjects in today's development agenda. On the basis of traditional values the programme opened up the possibility for the Organization to respond to new demands, and it was especially gratifying to see the extent to which the proposals reflected follow-up activities to the World Summit for Social Development.
56. Development was indeed a key word in implementing the programme, and it was clear that all strategic objectives and InFocus programmes were directed towards that goal. Furthermore, employment generation was rightly seen as a central feature of development activity and the largest amount of resources was allocated to Strategic Objective No. 2. Croatia shared with many other countries in transition the problem of increased unemployment and looked forward to the ILO's initiative to implement InFocus programmes on reconstruction and employment-intensive investment. Through technical cooperation those programmes would help many countries in their endeavours to overcome the crisis in the field of employment. Development programmes were also affected by gender issues and the proposals showed a welcome commitment to gender equality as an indicator of the Office's effectiveness in its pursuit of equitable and sustainable human development. Resources for the global programme, More and Better Jobs for Women, should be allocated within the budget so that its implementation did not depend exclusively on contributions from donors. Croatia fully supported the strategic budget framework set out in Volume 1 of the programme and budget proposals but unfortunately could not express the same satisfaction with Volume 2, which largely repeated the content of the document presented two years before. It was true that the Office had not had enough time to make new proposals, but the discussion during the present session of the PFAC should give enough impetus to prepare a new document containing a more detailed distribution of resources. If such a document could not be completed for the Conference, it should be prepared through continuing consultation with the constituents for the November 1999 Governing Body session. This would require the Conference, when adopting the budget in these extraordinary circumstances, to authorize the Governing Body to discuss and make the necessary changes required in November.
57. Along with other countries in Central and Eastern Europe Croatia believed that the problems and particular needs of the countries in the region had not been given sufficient attention and were not fully reflected in field programme 280 for Europe and Central Asia. This programme should be strengthened urgently in accordance with each country's specific needs, and member States should be given full support and assistance to grapple with the problems they faced.
58. The representative of the Government of Austria was in basic agreement with the Programme and Budget proposals for 2000-01. It was in line with many of the wishes and concerns expressed by the majority of the member States, gave a better overview and was more transparent. He was convinced that the new Director-General would exert even greater efforts later in the year to come back to the Governing Body with detailed, concrete figures. This situation was unique this year. It was regrettable that a slight adjustment for inflation had not been built into the budget, when considering the immense burden on the shoulders of the Organization.
59. The representative of the Government of Italy said that the views of his delegation had already been set forth in the statement made by the delegate of Canada on behalf of the IMEC countries. In subscribing fully to the expression of appreciation contained in that statement, he added that Italy was one of the countries which attached the utmost importance to the implementation of the Declaration on Fundamental Rights and Principles at Work on a broad scale. Employment was a crucial problem for a vast majority of countries and he noted with interest that among the four strategic objectives, employment had been given the highest amount of resources. The ILO's efforts on behalf of the huge problem of child labour were also fully supported by his delegation. Referring to the overall evaluation of the programme, it was necessary to ensure that all the resources of IPEC were directed to its targets in the most effective way. The programme and budget document also stressed a number of points which had not always been put in their proper light, perhaps because they were taken for granted. Probably the most important was human resources: it was not easy to always have the right man or woman in the right place; the indication of a full utilization of competence was welcome. He closed with a final word on the Turin Centre: Italy had always been a firm supporter of the Centre, being convinced of the fundamental importance of professional training; the Centre had also played an important role in the activities of the ILO within the United Nations system. As a member of the Board of the Centre, and as a representative of the host country, he extended an open invitation to the Director-General to visit the Centre.
60. The representative of the Government of Poland congratulated the Director-General on the preparation of the Programme and Budget proposals for 2000-01. It was a good starting point toward meeting the future challenges of the Organization and of its member States at the turn of the millennium. He expressed hope that the implementation of the programme proved successful and effective.
61. The formulation and focus of four strategic objectives was appropriate, taking into account the fact that many of the current and planned programmes were of an interdisciplinary character, which meant that they transcended the current structural division of the Office. It was also important that the document contained a description of the planned activities by regions. Clear indications of the needs of States which would become European Union (EU) members in the future was appreciated, particularly as concerns adjustment of national legislation to EU requirements. The document also accurately perceived that ILO-European Union cooperation should be strengthened. This should have a positive influence upon the improvement of the financing and implementation of technical cooperation programmes.
62. He expressed appreciation for the emphasis placed upon social protection in the broad sense. Until now, the ILO had mainly focused on social security issues and their social and financial implications, but in the document a more comprehensive approach to social protection issues was found. This reflected the concepts presented during the World Summit on Social Development, taking into account the fact that in the year 2000 a Special Session of the United Nations General Assembly would be held in Geneva to review the activities undertaken to implement the findings of the Summit.
63. As concerns domestic problems of individual States of the Central and Eastern European region, the growing interest of the ILO in such issues as disabled persons, social assistance and strengthening of its structures, vulnerable groups such as children, elderly people, etc., as well as conditions of work, was greatly appreciated. He expressed hope that ILO activities in this very sensitive field would be not only more effective but also more comprehensive.
64. A group of issues related to employment and the labour market, especially the role of small and medium enterprises in the creation of new jobs had been given considerable emphasis. This group of projects deserved full support, particularly the programme concerning enterprise and cooperative finance/micro-finance. His country was very interested in activities proposed concerning the development of the national system of collection and analysis of data relating to child labour, activities which would be carried out by IPEC, and had often said that they were ready to actively cooperate in the framework of this programme.
65. The representative of the Government of India congratulated the Director-General and his team for the programme and budget documents and appreciated the process of consultation which had been established by the Director-General and his Transition Team well in advance of his assumption of office. A reflection of the Director-General's concerns was evident in the documents before the Committee and the introduction of strategic budgeting and the changed format of the presentation of the Programme and Budget proposals for 2000-01 deserved full support. Strategic budgeting would assume added significance as the ILO prepared to redefine its priorities in line with the four strategic objectives and the related eight InFocus programmes. The emphasis on employment issues was fully justified in the light of economic conditions in many countries around the world.
66. However, for the ILO to effectively address the vicious circle of falling employment, rising poverty, and increasing social tensions, additional resources for substantive and operational programmes would be required. Furthermore, keeping in view the commitments made at the Social Summit in Copenhagen for full employment and eradication of poverty, these closely interrelated objectives needed to be underscored, and matching InFocus programmes needed to be strengthened. The ILO alone could not address all the problems related to employment generation; therefore, cooperation among nations, among multilateral agencies, both under the United Nations system and the Bretton Woods institutions, was essential.
67. With regard to employment generation, he particularly welcomed the thrust on labour-intensive public works, the informal sector and micro-enterprises, and income-generating programmes for rural people. The process of monitoring and performance evaluation in a strategic budgeting framework would lead to efficient management of programmes and resources. The outcome of such evaluations -- performance indicators, achievements and shortcomings, if any -- should be shared regularly with constituents. The proposal for a broad envelope corresponding to strategic objectives was an excellent idea as it would impart the flexibility required for further allocation of expenditure for various programmes within the broad objectives.
68. The InFocus programmes, as envisaged in the first objective of the elimination of child labour, required development of a systemic approach. While the use of ILO-IPEC as an operational instrument in the fight against child labour was welcome, the budget document referred to a sectoral approach which, unfortunately, had come to be favoured by many donors. This could undermine the relevance of the ILO's effort for developing countries who would not be inclined to accept donor-driven preferences that did not address the most exploitative forms of child labour. In this regard, the Director-General in his introductory statement had appropriately referred to the dangers of donor-driven specificities. The budget document should address the growing gap between strategies and realities in the field, which resulted in a dispersed and marginal impact of ILO-IPEC programmes, and he expressed support for the statement by the coordinator of the Asia-Pacific group on this point. The allocation of resources for technical cooperation was mainstreamed across the four strategic objectives; the Committee was therefore not in a position to assess the quantity of resources allocated for technical cooperation activities. However, the document did provide those details with regard to extra-budgetary allocation for technical cooperation, and it would be useful to see that information for regular budget technical cooperation included in the documents which would be presented in June and November.
69. The representative of the Government of the Russian Federation expressed his satisfaction at the Programme and Budget proposals for 2000-01, drawn up in a new format, and representing an important step towards strategic budgeting. The new budget format would make it possible to increase transparency and clarity in the presentation of programme activities of the Organization and to bring about the desired results. The results of the further work during the current session of the Governing Body and the June Conference and the addition of concrete figures for the programmes and budget would produce the final version of the budget. As for the level of the budget, this should be based on zero nominal growth. As regards the so-called cost increases, these should not be over-estimated and in future should be absorbed within the budget base.
70. He also welcomed further efforts by the Office to bring about an economic use of resources and also a clearer planning of so-called cost increases, which could be further absorbed within the framework of the budget.
71. The representative of the Government of Sweden endorsed the IMEC statement. He congratulated the new Director-General and thanked him and the Office for an excellent document which it was impossible to do justice to in a few minutes. Referring to strategic budgeting, centres of excellence and to a dimensional priority, he reinforced the IMEC statement that the very foundation for a strategic budget concept was a well-functioning evaluation, monitoring and reporting system. The present budget implied a shift of emphasis in the ILO and in the United Nations, and it would take time for the Office and the Governing Body together to develop an appropriate evaluation system. The reality was that without it there could be no strategic budget, but the Committee should be prepared to fulfil its responsibilities in the process of reforming the ILO to one that was result-based and not volume- or procedure-based.
72. From the proposals there was a clear understanding that the ILO operated on a market. The history of multilateral services was full of examples of agencies which had created their own comparative advantages. The most conspicuous one was the World Bank's emergence as the leading technical cooperation agency. In many areas, where specialized UN agencies believed they were protected by UN mandates, comparative advantages or centres of excellence in the highly competitive market for international services were, in the long run, as stated by the Director-General, created by results and by what they delivered and not by legal mandates, traditions or empty conjurations.
73. Finally, both of the cross-cutting, interrelated issues in the budget were music to the ears of his delegation. They highly appreciated what was stated regarding development in paragraph 18 and were eager to see what the concrete intentions of the Office were in this respect. Development was a complex and vast concept and he hoped that the Office was moving in the direction of a more comprehensive and indeed integrated approach to this issue. But clearly, on the understanding that not all the objectives could be approached simultaneously, there would be a need for certain priorities with regard to the necessary sequence for action to reach objectives. The ILO needed to look at what should be done first and what objectives or types of action were in reality prerequisites for others. In the past there were many examples where the ILO had focused on easy targets or popular activities saying that it would attack the more difficult, often institutional issues, later on. In doing so, it failed to recognize the essential complementarities.
74. But a waste of resources could only be avoided if analysis preceded action. The ILO needed to learn something important from the business sector. A good business strategy attempted to identify bottlenecks and to solve problems that were impediments to success. This required a bold and unprejudiced approach. The Director-General had produced an impressive document which would challenge the Committee as it discussed ILO activities for the 2000-01 biennium.
75. The representative of the Government of Bangladesh congratulated the Office on producing an excellent document, and he supported the views expressed by the coordinator of the Asia and Pacific group. The programme and budget proposals were a determined stride towards the realization of ILO's philosophy of ensuring social justice at the workplace. They were also a step forward in the new Director-General's desire to make the ILO a modern, dynamic organization, which combined adaptability with a strategic vision of its mission. The achievement of the four strategic objectives outlined in the document would be a conspicuous landmark in the ILO's history of struggle for the implementation of the core labour standards in the member States.
76. Eight international InFocus programmes also came out prominently in this document. Serious implementation of these InFocus programmes was absolutely necessary for the economic protection of the workers, particularly vulnerable workers in the developing countries. Productive employment promoted the reduction of inequality of all forms based on gender, race, income and other factors, so employment and enterprise creation was of prime importance. Bangladesh was prepared to work with the ILO in achieving the goal of gender equality, an essential factor in sustainable human development. The implementation of the proposed programme and budget would contribute substantially to the promotion and realization of the fundamental principles and rights at work, and this would in its turn consolidate democracy, equality, economic efficiency and sustainable growth in both the developing and developed countries. This would be a remarkable achievement, and international understanding of the highest order would be required to institutionalize these values. He was pleased that the document not only spelled out a programme for progressive elimination of child labour but also emphasized the design and implementation of large-scale time-bound programmes for the elimination of child labour. He also noted with satisfaction that IPEC would continue to provide technical advice and assistance to governments and to the employers' and workers' organizations as required, and would prepare national and sectoral plans of action. As part of other programmes to promote decent employment and support families, the InFocus programme also aimed to establish social protection schemes to provide alternatives for affected children and their families. It was his conviction that only by providing for suitable rehabilitation of working children and their families could meaningful progress towards elimination of child labour be made.
77. The document rightly attached importance to enterprise promotion and human resource development as key elements in achieving goals of productive employment, decent living standards, social and economic integration, personal fulfilment and social development. Poverty alleviation was a priority programme in developing countries like Bangladesh, and schemes being promoted included skill development and training, micro-credit programmes and other small enterprise support, investment incentives and subsidies. The ILO's capability to deliver technical cooperation for recovery and reconstruction was obviously necessary, but would not by itself suffice. Equally important would be the actual transfer of official development assistance from the developed to the developing countries.
78. The representative of the Government of Indonesia supported the statement made by the coordinator of the Asia and Pacific group. He welcomed also the strategic budgeting approach which highlighted the four main objectives in the proposals. The question of generation of employment, in which the ILO should take a leading role, had always been of high priority in his country. Active labour market policy, particularly in developing countries, had become more crucial since the nature of the world economy today had changed substantially, in particular by its impact on the social and labour market consequences of globalization.
79. Indonesia also attached great importance to how the technical cooperation programmes of the ILO would be implemented under the proposals. There should be a clear direction to these promotional activities, not only to keep programmes coherent but also to target the root causes in assisting member countries in their specific needs. The possible increase of extra-budgetary funds of the Organization to finance the technical cooperation projects was a worry because the dangers of donor-driven specificity, as mentioned by the Director-General, were also a concern, but he was confident that under the proposals the question of technical cooperation programmes and their implementation would be addressed appropriately.
80. The representative of the Government of Germany unreservedly supported the statement by the IMEC spokesperson. This was particularly true for the recognition and gratitude given to the Director-General and those who had elaborated the programme and budget. He expressly thanked the Director-General for the clarifications that he had given in his introductory statement two days ago.
81. The historical beginnings of parliamentary democracy meant that absolute monarchs had to give up the sole right to take decisions regarding expenditure, and for the process of consultation there was a system of committees in democratically elected parliaments. It was their task to carry out detailed work in order to make sure that the expenses envisaged by governments were justified. This Committee was the budget committee of the Governing Body and had those same tasks for the Programme and Budget proposals for 2000-01. It could in fact have only a limited view and control over these tasks because the information available was not sufficient. No budget committee of any elected parliament would express satisfaction with the figures presented to this Committee. This task was something that the Committee would have to do in November. There was no purpose in putting these figures before the Finance Committee at the Conference in June because it was not a tripartite committee. To repeat this discussion in November, this Committee would have to have formal authorization to do so by the Conference.
82. On page 4 of Volume 2 there was a table of the proposed expenditure and the analysis of the increases and reductions in programmes. The clarifications were extremely confusing and it was not at all clear why net cost savings referred to in paragraph 143 of Volume 1 could not be included in the 2000-01 estimates in the table. A more transparent presentation would be helpful.
83. The representative of the Government of Hungary highly appreciated and agreed with the new approach to the preparation of the document which contained the main themes in four strategic programming blocks, including for each strategic objective several InFocus programmes which clearly reflected the main priorities of the ILO's activities. He fully supported the proposed allocations according to which almost 40 per cent of the resources would be devoted to the most important subject, employment development. These strategic objectives were of particular importance to countries in Central and Eastern Europe because throughout the region there were a lot of employment problems to be solved. Furthermore, it would be very useful if the ILO would consider how it could increase its contribution to the accession process of countries to the European Union, for example on the basis of the analyses of earlier experiments. In the framework of the second strategic objective he fully endorsed the operational objective of employment-friendly enterprise development policies and programmes, and warmly welcomed the InFocus programme boosting employment to small enterprise development. This would be one of the most important priorities of the Hungarian Government in the coming years.
84. In Volume 1 there was a clear structure of the strategy of the ILO in the next biennium, but in Volume 2 it was very difficult to find specific programmes, for example programmes for development of small and medium-sized enterprises, and there was also little budgetary information. The proposals should present the objectives in terms of specific programmes, clear outputs and financial resource allocation, developed on the basis of discussions with the constituents. Only on the basis of such a new programme description would it be possible to finalize the programme proposals for 2000-01.
85. The representative of the Government of France expressed appreciation for the programme and budget proposals, which marked a new departure for the ILO with its concentration onstrategic objectives, and the excellent cooperation between the Transition Team and ILO officials had produced a quality document. The preparation of the budget was part of a wide-ranging process of change and reform, including structural reform, and called for flexibility with regard to ILO rules and procedures.
86. He expressed full support for the four strategic objectives and hoped that they would be translated into concrete and measurable form, showing precisely the percentage shares of the budget and a breakdown by operational objective, in the document for discussion in November. France was a strong supporter of the ILO and its work and with regard to the overall budget total it was not the total amount or the allocation of resources to one or other programme of the Organization that was important, but the relevance of the different programmes, their quality and their durability.
87. Referring to extra-budgetary resources, he wholeheartedly endorsed the Director-General's proposal that technical cooperation projects financed out of extra-budgetary resources would be undertaken only where there was a clear relationship with the strategic and operational objectives and the Office had a strong knowledge base and core funding from the regular budget. He also agreed with previous speakers who had emphasized the need for follow-up and evaluation of this strategic budget, especially through the use of the MERS system.
88. The representative of the Government of the Islamic Republic of Iran expressed full support for the concept of strategic budgeting, and he congratulated the Director-General and staff for undertaking such a major change in the presentation. Strategic budgeting enabled the Governing Body and the Conference to see the rationale and logic behind various activities, but this major step was only the starting point. Now the necessary tools existed to discuss the various programmes and activities in a more focused and productive manner, and he looked forward to other improvements in due course. He supported the four strategic objectives, but there appeared to be some duplication as regards the InFocus programmes. The discussion of the operational objectives and InFocus programmes would break new ground because the purpose of strategic budgeting was to enable a continued improvement of focus and effectiveness for various activities. The two cross-cutting issues of development and gender were of the highest priority. He supported the continuation of zero growth, although how the money was spent was more important than how much was spent.
89. Finally, concerning the adoption of this programme and budget, the ILO was in an exceptional situation as a result of the recent change in Director-General, but the results were more important than the usual strict budgetary procedures. He concluded by reiterating his appreciation for the major steps and changes which had been incorporated in both the format and the essence of this programme and budget.
90. The representative of the Government of Argentina thanked the new Director-General and his team for the excellent job that they had done in drawing up the documents before the Committee. Volume 1 eloquently and clearly developed the strategic and operative objectives that would guide the work of the Organization during the next biennium. The Director-General had made a valuable contribution in defining four strategic objectives that not only expressed a basic and universal consensus between the Members of the Organization but also summarized actions in a world that required from the ILO a clear, effective and coherent voice.
91. Volume 2 corresponded to the period of transition that the ILO was experiencing and would certainly be useful for discussion in November if adjustments could be introduced that would bring it more in line with the earlier volume. It should be possible, for example, to establish InFocus programmes that concentrated resources on the priorities for each major objective. The intention to integrate gender and development values throughout the different objectives and strategies deserved the fullest support.
92. One very important subject described in the draft programme and budget was the evaluation of activities and staff. The Director-General should continue working on defining and refining the indicators which would allow the ILO to assess the yield and impact of its programmes by reference to objective criteria.
93. As regards the overall amounts allocated to each strategic objective, it would be more logical if the contribution of units to the achievement of objectives in earlier biennia was used as a base. However, the Director-General could consider the need for adjustments as a function of the reforms and the new structure of the Office because it would be appropriate to preserve a margin of flexibility in this area to allow possible adjustments in the distribution of resources amongst the four strategic objectives in the final document to be presented to the Committee at the November 1999 session of the Governing Body.
94. A new Director-General of the ILO, the high quality of the draft programme and budget for the 2000-01 biennium and the forthcoming implementation of the follow-up to the Declaration would ensure that the ILO would enter the twenty-first century with the resources and the energy to face the extraordinary challenges and opportunities ahead.
95. The representative of the Government of the United States welcomed the new strategic approach to the ILO's programme and budget presentation and congratulated the Director-General, the Office and the Transition Team on their work. Much had been done in a short time to reflect the Governing Body discussions of last November. He strongly supported the format which strived to clearly show ILO programme activities in the context of the strategic and operational objectives they were designed to fulfil. His Government fully associated itself with the IMEC statement. The relatively low level of detail in the programme and budget, as well as the proposed provision of those details in November, were exceptional and due to the transition in progress. It was understood that information to be provided in November would be for decision and at that time the envelope figures would be reviewed.
96. Promoting and realizing fundamental principles and rights at work, creating greater opportunities for women and men to secure decent employment and income, enhancing coverage and effectiveness in protection for all, and strengthening tripartism and social dialogue were, indeed, appropriate strategic objectives to guide the ILO's work. The proposed cross-sectoral InFocus programmes were an interesting concept and he looked forward to seeing them in action. The Director-General's plans to implement a monitoring and evaluation system to ensure that programmes were formulated, funding allocated and expenditures approved on the basis of targets, clear outputs and measurable performance indicators deserved the fullest support. He looked forward to seeing details in November. The emphasis in this budget presentation on cooperation early on, with other UN agencies and the international financial institutions was also most welcome. Clearly, there would be opportunities for the ILO to work closely with its counterparts in other fields on wide-ranging issues and projects that required the best possible expertise to achieve success. In this context, and as a cautionary reminder, the ILO should not try to be all things to all people, but should concentrate its work on areas within its mandate, priorities and expertise. For instance, issues like reproductive health care education should be left to others. The programme and budget was forward-looking in its recognition that the ILO was a service, knowledge and advocacy organization, and that it must strengthen its capabilities in the areas of its mandate and expertise and greatly increase its visibility worldwide.
97. The overall budget level was exactly the same as the 1998-99 level and deserved total approval. The United States remained committed to meeting its obligations to international organizations in general and the ILO in particular. Work with Congress was under way to secure an acceptable arrears package which hopefully would allow the United States to pay its debts to the ILO and other international organizations. It looked forward to working with the Director-General on the evolving details of the programme and budget and once again he congratulated the Director-General, the Office and the Transition Team for their efforts in developing and proposing a workable budget.
98. The representative of the Government of Swaziland commended the Director-General and his team for the documents. The contents of the proposals were a true reflection of the fullest commitment of the Director-General, assisted by both headquarters and field staff, to lift the ILO to a level where member States and the world could see for themselves that the ILO was indeed a centre of excellence in its field. He agreed with the comments of previous speakers, particularly the coordinator of the African group, who had highlighted important concerns throughout the African region.
99. Paragraph 9 of the summary introduction of the Director-General presented an offer that Africa as well as Asia and the Pacific would under no circumstances resist. It was a pity not to have had it sooner. Africa and the Asian-Pacific region would undoubtedly pledge their support for the proposals. Africa, especially sub-Saharan Africa, was a victim of many social ills such as high population growth rates and significant levels of unemployment. The threat of the HIV-Aids pandemic permeated the whole of the south sub-Saharan Africa. The financial crisis in Asia was so devastating and far-reaching that all regions were at risk, and the ILO should take immediate remedial measures within its fields of expertise to address the problems they were facing.
100. The Director-General's budget proposals, in so far as they related to strategic and operational objectives, provided resources to combat the problems engulfing these regions and gave hope that they would be brought under control. The proposals also gave priority to the funding levels of the strategic objectives in respect to employment, social protection, and fundamental principles and rights at work and included reference to a new technical cooperation programme on training activities in Africa. Regrettably, more than ten countries in the African region were not included in this new technical cooperation programme. Millions of men and women, together with their children, were thus denied the opportunity to benefit from this technical cooperation because their countries had not had assistance from the ILO to complete their country objectives. Certainly, it had always been a prerequisite to have country objectives in place for a member State to be eligible for technical cooperation. But since the countries concerned had no capacity of their own to develop country objectives the Director-General should intervene and assist them during the remaining ten months of 1999, otherwise millions of men and women would lose opportunities in the next biennium. The outlook for better financial resources was bleak because the ILO was operating with a zero growth budget, so it would be helpful if the Director-General could arrange help with writing up the country objectives.
101. The representative of the Government of Malaysia congratulated the Director-General for the new strategy approach in preparing these programme and budget proposals. The new approach was more focused and comprehensive, and he associated himself generally with the statement by the Asia and Pacific coordinator. The importance the ILO had attached to the issue of employment generation was clear from its allocation of 37 per cent of its resources for this activity in the coming biennium. This issue had become more important than ever in the Asia and Pacific region, because several countries which had enjoyed full employment for several years were now faced with double-digit unemployment as a consequence of the financial crisis. Massive retrenchment and lay-offs had contributed to this phenomenon and resulted in driving millions below the poverty line. The increased allocation of more than 37 per cent was well justified and it would be even more meaningful if a sizeable proportion of these resources could be channelled to the Asia and Pacific region by way of technical assistance. The increased allocation would certainly pave the way for greater industrial harmony and the effective operation of tripartism.
102. The representative of the Government of Japan welcomed the work of the Office in introducing a new concept of strategic objectives targeting priority needs. These strategic objectives in four areas corresponded to the outcome of the discussion of the last Governing Body and reflected the concerns of her Government. She expressed appreciation for the cross-cutting issues of development and gender and the introduction of InFocus programmes with clear links to the strategic objectives, and also for the principle of maintaining zero growth. The Office should continue its efforts to reduce expenditure through more effective management and by focusing on priority programmes: as previous speakers had pointed out, monitoring and evaluation were important mechanisms and it would be interesting to have soon detailed proposals for the new monitoring and evaluation system.
103. The budget procedure proposed by the Director-General for the 2000-01 biennium was very unusual since it was not the Governing Body but the Conference that was required to give final approval. However, it could be approved as an exceptional case on the understanding that the whole budget structure was being reviewed, and on the condition that the Director-General would continue communication and consultation with the members of the Governing Body. Finally, it would be useful to have some clarification on what kind of additional information would be provided in the June Conference, what could be decided at that time and what would be left for the decision of the November Governing Body. The Office should also provide the budget figures at programme level as soon as possible, as well as figures which would enable comparison of the proposed budget with the current biennium budget. In conclusion, she expressed appreciation and support for the work of the Office in the very limited time available for the preparation of the proposals.
104. The representative of the Government of China expressed appreciation for the concise and focused budget proposals, which at the turn of the new millennium were of great significance for the development and orientation of the ILO. With the process of economic globalization, technological progress and other factors, major changes were already under way in the world of work. The ILO was also facing fierce competition from other organizations and in order to survive it had to provide satisfactory and high-quality services to its constituents, making its strategic objectives and programmes more responsive to the common needs of the world as a whole so as to promote economic development and social progress. He expressed support for the continuation of zero growth.
105. The strategic objectives and technical programmes to be strengthened should include employment and training, small enterprise development, social security development policies and gender issues. Priority should be given to employment promotion and poverty alleviation because they were fundamental to the ethos of the ILO itself. Right now they were the most severe challenges facing the world of work and if they were not resolved it would not be possible to really guarantee the basic rights of workers and promote social progress.
106. The proposal in paragraph 125, concerning evaluation of the results achieved in the regions and a review of the ILO's regional organizational structures, in particular a review of the regional coverage of MDTs, also deserved support. Through these actions the ILO's regional activities would be improved and provide more satisfactory services for its constituents. As pointed out on various occasions, Asia and the Pacific covered a wide area containing a large population. The three MDTs currently covering this area were inadequate to meet the needs of the region and the proposal last November to add more MDTs in some regions should be clearly incorporated in this programme and budget.
107. The proposal in paragraph 135 to enhance the rapid response capacity of the ILO also deserved full support. As an international organization with unique expertise the ILO should be able to react quickly in times of abrupt social and economic change and it should have reserve funds available for this purpose if necessary. As a concluding comment he expressed support for the Director-General's proposal to enhance the performance of programme activities by improving the present methods of monitoring and evaluation.
108. The representative of the Government of the United Kingdom congratulated the Director-General and his team for producing a strategic budget document that was considerably more readable than its predecessors. The structure was more logical, with operational objectives flowing from strategic objectives and in due course funding decisions flowing from these operational objectives. The zero nominal growth regime should continue, with cost savings reallocated to substantive programme activities where possible. The search for efficiency savings was not intended to cut the overall size of the Organization's budget, only to divert resources to priority areas. In summary, the United Kingdom Government was pleased to be able to support a zero nominal growth budget of $481,050,000 in which increased resources were devoted to priority programme activity.
109. The Director-General had asked for flexibility because of the unique circumstances pertaining to this budget. The Governing Body should agree. However, if the budget in June was to be approved without the fine detail the approval should be subject to a couple of caveats. First, it should be underlined that this should be a one-off. On this occasion the Governing Body could wait for the detail until November, but for future budget cycles there should be one strategic budget document presented to the March Governing Body with enough details and quantifiable performance indicators to be approved in June. Second, if it was necessary to wait until November for the details of the budget, then some form of decision point would be required at the November session of the Governing Body.
110. Looking in more detail at the proposals in the Office documents, the four main envelopes corresponding to the main objectives of the Organization appeared to be based to a large extent on current expenditure. Without getting too specific just now, there should be a significant redistribution of resources when these indicative amounts were finalized in November, with more resources devoted to the first objective of promoting fundamental principles and rights at work. General management services remained outside the four main envelopes, as did policy-making organs and other budgetary provisions, which meant that around $124 million out of a budget of $481 million appeared to be spent on activities not directly related to the strategic objectives. There should be some sort of long-term integrated picture of regular and extra-budgetary funding. It was important also to ensure that extra-budgetary funds were spent in a manner consistent with the overall objectives of the Organization. This was particularly true with regard to the sensitive issue of the Follow-up to the Declaration. Between now and November more work should be done on producing quantifiable performance indicators for programme activity.
111. Finally, there should also be an effective monitoring and evaluation mechanism put in place so that the extent to which these performance indicators were being met throughout the biennium could be gauged. As others had pointed out, this was a fundamental cornerstone of strategic budgeting. However, none of these comments should detract from an overall assessment that the budget was a massive improvement on previous ones. The United Kingdom Government looked forward to working with the Director-General and the Office in the coming months to add the final details to this ambitious project.
112. The representative of the Government of Cuba congratulated the Director-General and his team for an excellent document with its innovatory approach to the presentation of the ILO programme and budget for the forthcoming biennium. Taking into account the changing circumstances in which the proposals were drawn up, the flexibility reflected in the document was appropriate. Having a clearer definition of terms had advantages for March budget discussions in the future, and would allow the June Conference to adopt more specific and detailed decisions. She was happy with the four strategic objectives and also satisfied with the InFocus programmes which highlighted the priorities within each strategic objective. They corresponded well with the mandate of the Organization. Employment and social protection were strategic objectives which had a prominent place at the Copenhagen Summit and the ILO should continue to stress measures necessary to achieve them. The process of globalization currently taking place in the world had a negative impact on employment and on workers' living standards and the fight against unemployment and poverty alleviation would contribute to a framework conducive to achieving the fundamental objectives of this Organization.
113. Promoting ratification of the fundamental Conventions by those countries which had not yet ratified them was an ILO initiative which should be stressed as a priority for ensuring the full application of the Declaration of Principles. She expressed support for activities which would contribute to the eradication of child labour and promote equality between men and women at work. She also approved a gender approach to all programmes so as to strengthen the full application of the principle of equality between men and women. However, it would be useful to identify more clearly how and to what extent technical cooperation activities would be linked to compliance with the strategic objectives and the InFocus programmes because they should be an essential part of ensuring efficiency in technical cooperation. The possibility of reviewing country objectives would contribute to more effectiveness in the work of the multidisciplinary teams. Zero nominal growth did not necessarily mean cutbacks in resources allocated to priority activities, although it should lead to greater efficiency in evaluating the programmes and how they achieved their objectives. In this way, savings could be made which could be used to promote further the achievement of strategic objectives. Cuba had total confidence in the Director-General and his team and hoped they would be able to provide the clarifications requested of them so that the programme and budget proposals could be adopted with whatever adjustments were required to meet all the concerns expressed by Committee members.
114. The representative of the Government of the Republic of Korea congratulated the new Director-General and the Office on the introduction of a strategic budget for the first time in ILO history and which provided a clear direction to the ILO's Programme and Budget proposals for 2000-01. The strategic objectives of the fundamental principles and rights at work, employment, social protection and social dialogue were the key issues to be pursued in the next biennium. Since the World Social Summit in 1995 there had been vigorous debates on follow-up action, especially in the UN Committee on Social Development, suggesting that these debates be focused on employment promotion, protection of vulnerable groups and social welfare in recognition of the problems faced by many countries around the world. With issues like unemployment and poverty so widespread there was no doubt that employment generation had the highest priority of all. At this juncture, resolving the problem of unemployment deserved more effort and resources to be made available in order to maintain human dignity and to secure a strong basis for a better protection of workers. Meanwhile, the Asian region was home to a third of the world's poor and many of the countries in this region were now suffering from a serious financial and economic crisis, so there was a clear case for the ILO to direct more attention and support to alleviating poverty and improving the employment sector in the region. The ILO should also expand its regional cooperation programmes in the field of job creation and human resources development and increase the budget allocation for poverty alleviation programmes. Additionally, it should become more active in offering technical assistance and advisory services by fully utilizing the Active Partnership Policy and the multidisciplinary teams. When the Office finalized the budget proposals it should allocate more resources to making its activities more relevant to the situations and needs of the member States; to organizing feedback on progress in achieving goals; to accelerating the decentralization of ILO activities and focusing on developing regional networks for information exchange; and to building up the monitoring system for transparent budget operations, to ensure the flexible and timely adjustment of the budget and variations in budget spending.
115. The representative of the Government of Egypt thanked the new Director-General and his team for the documents now before the Committee. She supported the views expressed on behalf of the African group and was grateful for the new trends adopted in the new budget proposals. It was of paramount importance to set strategic objectives which could become operational and be subjected to an evaluation and assessment of performance. The Organization should also concentrate more on development programmes and issues of gender equality. Economic and social development of course remained at the heart of ILO activities, with special emphasis on the specific needs of developing countries which were trying to create new employment opportunities and to combat poverty. The Director-General was right to direct more attention to Africa and Asia, as these two continents had special needs for development programmes. Cooperation and dialogue should be further enhanced between the ILO and other competent international bodies, because the international community as a whole had a responsibility to fulfil its commitments.
116. Technical cooperation would be dealt with extensively during the ILO Conference in June and the latest information available should be taken into account when preparing the final budget document. Technical cooperation programmes would continue to be a cornerstone in the Declaration of Principles, which in turn would promote the ratification of the fundamental Conventions including the Convention on combating child labour. The policy of active partnership was extremely valuable and this activity could do with an extra injection of finance, and for effective results country objectives should be translated into operational programmes and incorporated into technical cooperation based on the strategic objectives. The role of regional offices and MDTs needed reinforcing, with more experts being assigned to the MDTs, especially the MDT for North Africa as decided by the Governing Body. In view of the zero growth budget it was especially gratifying to see a slight increase in the resources to the African region, but still more technical support was required to help Africa confront the consequences of structural adjustment and globalization.
117. Activities defending the rights of workers in the areas of health and safety, the improvement of working conditions and social protection deserved full support. Tripartism was one of the unique features of the ILO and had been the driving force behind the social dialogue that characterized its work. This was reflected in the strategy adopted by the Turin Centre for the period 1996-2000, which was based on a sound methodology and new educational methods aimed at developing human skills and human resources and capacity building to further enhance technical cooperation activities.
118. The Office should make serious efforts to analyse the social and economic problems of today and the impact of globalization on the world of work. It should try to stay abreast of technological changes in the world if it was to be capable of responding to the crises that occurred all too often. It might be useful for the ILO to develop a strategy of public relations that led to a wider understanding of its work and the extent of its activities in dealing with employment issues and the struggle against social problems such as child labour.
119. The representative of the Government of Finland commended the Director-General, his team and the Office for the clarity of purpose and the sense of direction of the proposals. The vision that emanated from it augured well for the credibility and the visibility of the Organization. She expressed support for the statement of the IMEC group and assured the Director-General that his approach had the full support of her Government as well and responded to its expectations on focused transparency and direction. Paragraph 21 of Volume 1 in particular presented the very serious concerns and anxieties of people, of workers and jobseekers worldwide. To be effective in addressing these issues in future the ILO needed to develop an independent capacity to analyse global trends, to see problems in an integrated way and to understand the processes within which its policy prescriptions would operate.
120. The representative of the Government of Brazil welcomed the document which reflected the expectations and opinions expressed during the discussions of the Governing Body at its previous session. He appreciated also the clarity and objectiveness of the document and welcomed its emphasis on four strategic objectives and the way their priorities were developed in the concept of InFocus programmes. He supported the proposal for a zero growth programme and budget, which took account of the serious financial and budgetary constraints facing many member States.
121. The priority given to development and gender issues should cut across all activities of the Organization, and attention to employment promotion and related issues, such as job creation, upgrading of the informal sector, vocational training, youth employment, more and better jobs for women, were particularly important. Of the four strategic objectives, employment was the one that was receiving the greatest amount of resources. He expressed agreement with the emphasis on this activity and also with the flexible timing for the finalization of the programme and budget, and was looking forward to the document to be presented in November with more specific figures and clear targets for technical cooperation programmes.
122. The representative of the Government of Mexico recalled that the presentation of a strategic budget was based, on the one hand, on the traditional practice of the Office in picking up elements from discussions in the Committee at previous Governing Body sessions and, on the other, on the vision, the experience and the desire of the new Director-General to apply a new formula to show in a more accessible way the criteria on which the budget was based. This objective had been fully achieved with the presentation of the document, particularly Volume 1, and he offered his congratulations to the Director-General and his team and indeed the Office as a whole, because this way of looking at things would ensure that clarity would be easier to achieve in the various stages of discussion of the budget. The introduction of the InFocus programmes would facilitate better interaction with the Organization's constituents and this in turn would allow it to achieve the best possible results. The proposal to monitor the results of the programme was very positive and would ensure good results in terms of clarity and transparency.
123. Even though three of the eight InFocus programmes covered employment generation he joined the many other delegates who believed it was necessary to increase even further the resources to be spent on employment-related programmes. For many countries this issue was the highest priority, and spending more resources on combating unemployment and poverty, dealing in particular with youth employment and with training in the areas where unemployment and underemployment were most prevalent, should be the primary objective. Gender and development issues had rightly been taken into account and would be included in the strategic objectives and priorities of the programme.
124. He expressed support for the vision set forth by the Director-General in the sense that the Organization should only commit itself to technical cooperation projects when it was based on solid information and finance was available from the regular budget. Financing from extra-budgetary resources should be fully in line with the pursuit of the agreed strategic objectives of the Organization and the Director-General was right to draw attention to the danger of getting tangled up in conditions which might be laid down by donors on the basis of their own special interests and which might lead to a watering down of technical cooperation activities.
125. The representative of the Government of South Africa endorsed the statement made on behalf of the African group and congratulated the Director-General for the very professional and imaginative manner in which he and his able team had presented the Programme and Budget proposals for 2000-01. Through this budget, the Director-General had put his fingers on the pulse of the momentous challenges that would face the ILO in the new millennium. This was a visionary budget and a firm basis from which to launch the Organization's future activities, and the shift from 39 major programmes to four strategic objectives was aimed at developing a strategic focus for the Organization rather than reducing the programmes envisaged. A multidisciplinary approach rather than a step-by-step approach should be pursued in the process of implementing these objectives, and it was important to keep this in mind in the process of making adaptations to the management structure. He agreed with the need to develop a rapid response capacity to deal with crises because early warning systems would assist developing countries in minimizing the costs of unforeseen circumstances. The recent financial crisis had underscored the need for such global early warning systems. The ILO should collaborate with other multilateral organizations in bringing help to countries in distress and should encourage a broad comprehensive approach involving other organizations so as to deploy the maximum possible resources to crisis situations. He also expressed his appreciation for the resource increases for regional programmes, particularly in Africa. This gesture, albeit symbolic, was welcome as it would assist African and other developing countries in their efforts to mitigate poverty and unemployment.
126. His Government shared the intention of the Director-General to make the ILO a modern, dynamic and adaptable Organization. The realities of the present-day world dictated that the ILO should continuously reflect on its role, the impact of its programmes and more importantly its relevance. Part of this renewal should include a systematic review of some of the bureaucratic organizational procedures which possibly prevented timely and effective responses to sudden changes in the world. This process of change should be reflected in the governing structures of the Organization, particularly the composition of the Governing Body.
127. The developmental rather than functional emphasis that the Director-General had presented in these proposals was of vital importance, as was the intention to mainstream gender and development issues in the ILO. The InFocus programmes would go a long way in realizing both the strategic and operational objectives of the Organization, because they had the potential to create greater awareness and visibility of the work of the ILO. Volume 2 was a useful elaboration of the programme and budget proposals covering governance, headquarters programmes, regional programmes, support services and management services, but it would be useful to see in addition an explanation of how the ILO field structure, i.e. area offices and multidisciplinary teams, figured in the overall scheme of things. The Organization was decentralizing its work so subsections dealing with the field structure should be further elaborated.
128. At the 273rd Session of the Governing Body, several delegations, including his, had made their preferences known with respect to 23 action programmes that the Office had proposed. Somehow it seemed that these action programmes had either disappeared or been incorporated into other programmes, and if the latter was the case it should have been highlighted in the current proposals. Finally, he expressed his delegation's appreciation for the transparent manner in which the budget process had been conducted and hoped that this precedent would characterize similar processes in the future.
129. The representative of the Government of Spain supported the statement made earlier on behalf of the countries of the IMEC group. He mentioned that in paragraph 90.20 of Volume 2 there was a reference to a much appreciated publication, the Encyclopaedia of Occupational Health and Safety, the fourth edition in English of which would be shortly updated and a French version published, accompanied by a CD-ROM. This information should be completed by adding that a version was also available in Spanish. A specific agreement on cooperation on publications had been signed between the International Labour Office and the Government of Spain. Under the terms of that agreement, the Spanish Labour Ministry shouldered responsibility for and financed the production of the Spanish language version of the Encyclopaedia. The first two volumes of the Spanish version had appeared a couple of months earlier. Copies had been provided to the former Director-General and a number of other high-ranking officials. The Spanish version of the next two volumes would be published shortly. This information was interesting and useful, not only for governments but also for workers' and employers' organizations. In Latin America, where Spanish was also spoken, there were employers' and workers' organizations which made frequent use of the Spanish version of the Encyclopaedia.
130. The representative of the Government of Nigeria endorsed the statement made on behalf of the African region and joined those who spoke earlier to congratulate the Director-General for presenting the Programme and Budget proposals for 2000-01 with very laudable innovations. The clear and transparent proposals were an expression of the Director-General's vision for the future of the ILO.
131. The ILO should make itself more visible, authoritative and effective in its actions through improving internal efficiency so there should be greater visibility of the Organization amongst its UN constituents. Developing countries would do all they could to help in this process. Nigeria commended the efforts of the Director-General not only in ensuring that Africa received a fair share but also in making a token increase in the total allocation for Africa in spite of the fact that the budget was based on zero growth. The proposed priority for Africa should be meticulously implemented and he supported the idea that the priority programmes to be pursued for Africa would be determined on the basis of country objectives within the context of the four strategic objectives, with special emphasis on the implementation of the Jobs for Africa programme and the promotion of tripartism and social dialogue. He called for additional resources for the Turin Centre and the African Regional Labour Administration Centre (ARLAC), with a view to meeting the challenges posed by Africa's enormous need for national capacity building. He ended by reassuring the Committee that Nigeria would continue to support the good work of the ILO.
132. The representative of the Government of Chile congratulated the Director-General and his team on the presentation of the document. In a very short time, they had prepared an excellent piece of work, presented in a new format and a new structure. The definition of strategic objectives was the main virtue of the document, which was clearer and easy to read and analyse.
133. The second virtue was that it made the budget a powerful management tool. The establishment of strategic objectives made it possible to see how far they were being complied with and to measure their impact. In future it would help set management or performance indicators for the various programmes, thus improving transparency. It would help to plan the budget more efficiently, and measure not only the quantity of the expenditure but also the way in which it was being made and how effective it was. With these strategic objectives, constituents could analyse how effectively money was being spent by the Organization, an important control in the phase of budgetary execution, and only made possible by the structure based on strategic objectives that was presented in the proposals. His delegation shared the objectives entirely. This was not only because they added to clarity or reflected the majority opinion but also because the strategic objectives should at a specific moment reflect the mission of the ILO at that time. The strategic objectives were not an end in itself for the ILO: they were set at a specific time, in specific circumstances, to reflect the mission of the Organization. The Director-General had clearly described that mission in paragraph 22 which showed that all strategic objectives were inextricably linked to the historic mission of the ILO right now, on the threshold of the twenty-first century. The InFocus programmes also reflected the strategic objectives and the mission of the Organization and contained useful extra information. He supported the allocation of resources as described in the programme and budget proposals, and the continuation of the zero nominal growth regime. These proposals were much more transparent and this alone would help to achieve the strategic objectives.
134. The representative of the Government of Colombia congratulated the Director-General on the Programme and Budget proposals for 2000-01. It was a clear, concise document based on a strategic approach for the next millennium. The essential issues it included were: the promotion of fundamental principles and rights at work, the creation of new opportunities for generating decent employment and increasing workers' income, improving social protection and enhancing tripartism and social dialogue. These were issues of much interest not only for developing countries but for the ILO membership as a whole. In a globalized economy the ILO had to be capable of dealing with problems in an integrated fashion and of seeking social justice, dignity at work and redistribution of wealth.
135. Colombia recognized and supported the need to be flexible on the budget since there were issues which still needed to be reviewed by the Governing Body, such as, for example, the follow-up mechanism to the ILO Declaration on Fundamental Principles and Rights at Work, the Active Partnership Policy, technical cooperation structures and the new Convention against child labour. Flexibility was also needed so that the Organization could respond immediately to unexpected occurrences and crucial situations. A constant process of consultations was therefore essential to maintain the strategic approach to the present programme and budget and to enhance cooperation for developing countries and countries in crisis.
136. The ILO was making a major attempt to make better use of its resources under a zero growth regime. The way the budget had been structured emphasized two issues of particular importance, the creation of better opportunities for men and women so that they might have a decent job and increase their income from it and the achievement of social protection for all. These were issues to be taken into account to tackle the major work-related problems facing the world at the end of this century. Although it would be preferable to see a greater increase in resources for the regional programmes it was satisfying to see that the allocation for special expenditure was maintained so as to deal with unforeseen circumstances which might occur during the course of the biennium.
137. The representative of the Government of Peru felt that the Director-General and his team had provided an excellent document containing the Programme and Budget proposals for 2000-01. It highlighted four clearly defined strategic objectives and the InFocus programmes, and the way the document had been prepared enhanced its clarity, transparency and efficiency. It reflected the objectives of the ILO and its constituents, and also took account of the global economic climate. He as pleased to express support for the emphasis on evaluation and the introduction of gender and development as cross-cutting themes, and agreed to the need for a flexible timetable on this occasion for approving the programme and budget.
138. The representative of the Government of Slovakia congratulated the Director-General on the document prepared with the help of the Transition Team and the Office. The new approach involving four strategic objectives reflected the wishes of ILO member States and would be a useful management tool in the next biennium. Nevertheless there were some shortcomings in the proposals and they should be corrected in due course. As mentioned already by the representatives of Croatia, Poland and Hungary, there was a particularly complicated economic and social situation in the countries in transition in Eastern Europe. They needed to be more actively involved in technical and regional programmes and this should be reflected in a higher budgetary allocation for this region.
139. The representative of the Government of Uganda associated herself with the statement made on behalf of the African group and congratulated the Director-General and his Transition Team, as well as the Office, on the Programme and Budget proposals for 2000-01. The document was user-friendly and focused, and reflected the Director-General's vision for the ILO for the start of the next millennium. The spirit of transparency should continue with the implementation of the programme and be characterized by continuous dialogue with the different constituencies. In expressing support for the four priority areas and the importance of strategic objectives, she welcomed the gender mainstreaming for future ILO programmes and believed this was a move in the right direction.
140. Africa remained today a region with a high debt burden, a low investment rate, low productivity, rapid population growth, high incidence of unemployment and deepening poverty. Governments were making serious efforts to adapt their economies to the changing global environment, but the ILO had an important role to play in assisting them to meet the challenges of a new global world economy. She welcomed the resource increase, small though it was, for the regional programmes, and agreed that underlying structural and social causes of global social problems could not be tackled only with ILO policy instruments or technical cooperation support. It would need the concerted effort of all parties concerned to solve the problems of the different regions and the ILO should strengthen cooperation with the Bretton Woods institutions and other relevant UN agencies in order to create an environment for technical assistance to yield optimum results. She commended the Director-General's initiative for the ILO to develop an independent capacity to analyse global trends and to develop its capacity to respond to the needs of constituents. A proper analysis of technical cooperation and proper utilization of the unique tripartite nature of the ILO would go a long way to help it fulfil the four strategic objectives laid out by the Director-General.
141. The representative of the Government of Namibia endorsed the African position and joined other speakers that had fully supported the initiative of the Director-General to present a budget in terms of strategic objectives. He associated himself with the four strategic objectives, but more emphasis had to be placed on employment, specifically employment creation and poverty alleviation. Under this strategic objective some mention was made of the effects of globalization but the negative effects of globalization, or rather, measures to counteract them, were not receiving enough attention. It was important to realize that globalization in several ways undermined the key objectives of the ILO such as employment generation, poverty alleviation, and so on, and the ILO, together with other institutions, should develop and budget for specific strategies to deal with mass retrenchments as well as subsequent reskilling and training needs and other consequences of globalization.
142. His own country was experiencing some of the negative consequences of globalization such as increased unemployment, continued poverty and an increased disparity between the poor and the rich. Other countries were in a similar position and the ILO should devote more resources to helping them.
143. The operational objective in respect of capacity building was laudable enough but the problem in many developing countries was to retain those who had been trained. To do so more emphasis should be placed on an approach to improve and then retain the knowledge base in developing countries. The Turin Centre would be able to play a valuable role in such a programme.
144. Maintaining a zero growth budget for too long could result in a trend where more and more strategic objectives and projects would have to be funded from extra-budgetary resources. The Office should be careful to resist pressure to give way to donors who had different priorities to the ILO.
145. The representative of the Government of Pakistan complimented the Director-General and his staff for presenting a new approach in the ILO programme and budget for the biennium 2000-01, and particularly for allocating almost 30 per cent of the total budget for employment promotion programmes. Allocations to the regions had been almost equally distributed to the three main regions, and although this was probably based on criteria such as population, geography, per capita income, unemployment levels, literacy, number of available projects, etc., the basis for such allocations needed to be described in more detail in the budgetary proposals to be considered later.
146. Mr. Blondel, speaking on behalf of the Worker members, made the following observations concerning Strategic Objective No. 1 and fundamental rights at work. In particular, the Worker members would have liked the document to recall that the effective recognition by member States of the fundamental principles and rights at work was a commitment undertaken by a vote on behalf of all governments.
147. He added that the ratification and strict application of the seven fundamental Conventions and the gradual abolition of child labour, beginning with the elimination of the worst forms of this work, were very laudable objectives and that progress towards these goals should be evaluated on a periodic basis.
148. He noted that the document no longer referred to the possible establishment of an office responsible for the follow-up to the Declaration.
149. He said that the Worker members endorsed the proposal of two strategic programmes to promote and realize fundamental principles and rights at work and to achieve the gradual elimination of child labour. He hoped that the ILO's dialogue with regional and international financial institutions would also include other international organizations such as the WTO, the Office of the High Commissioner for Human Rights, UNCTAD, UNDP, etc. In this connection, he asked the Director-General to ensure that the commitment contained in paragraph 4 of the Singapore Declaration concerning collaboration with the WTO was respected.
150. Furthermore, he requested the ILO to launch an intensive programme of research on the effects and consequences of globalization and to propose measures to ensure that globalization of the economy brought fruits and benefits to workers and their families.
151. He emphasized the satisfaction of his group that the Director-General was promoting the ratification and application of the seven fundamental Conventions and emphasizing the need for countries which had not yet ratified the Conventions to give effect to the fundamental principles and rights reaffirmed in the Declaration. He supported the proposal for a study on the impact of the ILO supervisory machinery on freedom of association, to be published on the occasion of the fiftieth anniversary of the Committee on Freedom of Association. He would have preferred the document to have reflected the cases of serious infringement of fundamental rights which had occurred. He added that the Worker members had no doubt that the Director-General would clearly express his determination to fight the systematic infringement of trade union rights.
152. As regards the gradual elimination of child labour, Mr. Blondel insisted on the need for governments to ensure compliance with legislation respecting the minimum age for employment, and noted that poverty alone could not explain the employment of 150 million children. He urged governments to deal vigorously with employers who made use of child labour.
153. Mr. Blondel concluded by emphasizing the need to carry out a study on globalization and multinationals with a view to determining their implications and consequences on the application of fundamental standards. As regards forced labour, he regretted that the document did not refer to Convention No. 29. Furthermore, he emphasized the importance of paragraph 37 and recalled in this connection the Worker members' attachment to the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144) and the need for national law and practice to comply with labour standards.
154. Mr. Marshall, on behalf of the Employer members, said that the Workers' remarks in respect of multinationals needed some comment and would be dealt with under Strategic Objective No. 2 where the majority of the issues related to employment. Research by the ILO had shown very clearly that multinationals were organizations which in most developed and developing countries provided the highest standard of conditions in the areas of concern and in particular child labour. Thus it was domestic operations which should be the target. In this respect he believed that it was essential not to confuse the base issue with the politics of globalization. Two points needed to be addressed under Strategic Objective No. 1. Firstly, there was the need for separation between operational objectives 1(a) and 1(b). The promotion of the Declaration and the pursuit of ratification of fundamental Conventions were important areas of activity. However, their activities should be seen as being of a different nature. The promotion of the Declaration was in fact really oriented towards advocacy and based on political activities and policies, whereas the ratification of core Conventions involved more the consideration of legislative frameworks. These were two distinct and important operations which must be kept separate, and indeed, as the Workers had pointed out, the follow-up to the Declaration was an important area that required a separate unit within the Organization. It should be seen as a separate major programme in itself outside the operation of the standards programme and department. It was very important not to allow the emphasis on or pursuit of objective 1(b) to detract from countries' abilities to actually adopt the principles contained within the Declaration under 1(a). Nor should the prescriptive side of Conventions be allowed to interfere with a country's desire to adopt the principles within the Declaration, and so separation was absolutely critical. Everyone was committed to the Declaration, and in particular the Employers who had been instigators of its development. It was critically important that sufficient human resources be allocated to the promotion of the Declaration, including resources in respect of ACT/EMP and ACTRAV activities. The second major area which the Employers wished to address concerned 1(c), namely the IPEC programme. It was very important