| GB.267/14
267th Session Geneva, November 1996 |
FOURTEENTH ITEM ON THE AGENDA
International Institute for Labour Studies
Report of the 38th Session of the Board
1. The Board of the International Institute for Labour Studies held its 38th Session on 12 November 1996. It had before it a paper on the composition of the Board,(1) the report of the Director,(2) and a paper concerning the acceptance of contributions and gifts in support of the Institute's activities.(3) The meeting was chaired, on behalf of the Director-General, by Mr. Tapiola, Deputy Director-General of the ILO.
2. Opening the session, Mr. Tapiola welcomed the new members of the Board, and thanked those who were continuing their contribution to the work of the Institute. He noted with pleasure the presence of a number of substitute members.
Composition of the Board
3. The Chairman drew attention to the changes in the composition of the Board, and to changes in the Regulations of the Institute resulting from the deletion, in November 1995, of the budgetary provision for ten non-Governing Body members "appointed from among persons of outstanding international experience". He noted that copies of the amended Regulations had been made available to Board members.
4. The representative of the Government of Brazil regretted that the new structure of the Board had deprived the Governing Body members of a much-appreciated opportunity for interaction with the independent members, who had provided a distinguished contribution to its debates. He hoped that means might be found to continue the link between the Board and the academic world, notwithstanding financial constraints. He suggested that, at the very least, written contributions by key academics could form the basis of informal discussions on new directions for the Institute. Such contributions were invaluable for an informed debate.
5. Mr. Ahmed (Worker member) also regretted that the ILO's present financial constraints had deprived the Board of the contribution of the academic members. The fresh perspectives and the institutional links provided by their presence on the Board had been immensely useful to both the Institute and the ILO, and he strongly supported the representative of the Government of Brazil in urging that means be sought to ensure continuing interaction between the academics and the Board as it was now structured.
6. Mr. Imoisili (Employer member) supported the suggestion that a way be found to restore the intellectual dimension of the Board. The Board could be convened for a full day, half of which should be devoted to substantive discussions, with academic experts being brought in to serve as a counterpoint to the members of the Board. This, however, should be a temporary measure. The ultimate goal was to return to a Board that comprised academics as well as Governing Body members. While he appreciated the present reality of budget constraints, he noted that this particular problem was transitory and did not justify the permanent destruction of a useful institution. In cost/benefit terms, suppression of academic participation meant that the loss -- in terms of goodwill and the image of the ILO in the international academic community -- was considerably greater than the savings achieved.
7. Mr. Anand (Employer member) also expressed unease with the new structure of the Board and the apparent downgrading of its status. The absence of the academic members was detrimental to the functioning of the Board and would detract from the guidance it could provide to the Institute and the ILO. Interaction with practitioners on the Board had exposed academics to the concerns of national governments and the social partners. These concerns, in turn, shaped their own research and other activities, to the eventual benefit of their countries and the ILO. He cited the examples of two former Board members whose tenure on the Board had resulted, in one case, in a move to bring Indian agricultural labour into association with the mainstream labour movement, and in the other, in bringing ILO concerns into the lecture halls of a prestigious British university. This was an important example of the outreach service that the Institute provided to the ILO, which served to bring the ILO's outlook and philosophy to new constituencies and to future generations. If financial constraints did not permit the association of ten academics with the Board, the possibility of reinstating at least two or three should be considered.
8. The Director welcomed the new members to the first meeting of the Board under the new Regulations. He noted that the Board had a tradition of very close working relations with the Institute. Not merely had many programmes developed out of ideas expressed by the Board, but individual members had also been directly involved in programme implementation, through meetings or research networks. He hoped that this special relationship would continue. Responding to the concerns expressed, he hoped that some way might be found to facilitate renewed academic interaction with the Board. In the past, the informal session of the Board had provided an opportunity to discuss major issues of social policy and the substantive content of Institute programmes. He would explore the possibilities of continuing this practice in the new circumstances.
Report of the Director
9. As many members of the Board were newcomers, in introducing the report on activities in 1996 the Director provided background on four subject-areas: the organization of the work of the Board; the facilities provided by the Institute to the ILO and its constituents, illustrated by activities carried out in 1996; the Institute's resources and staff; and some broad indications of future programme directions.
10. With regard to the work of the Board, the Director noted that the Regulations provided for an annual review of the report on activities by the Board, while the Programme and Budget was considered every second year. It was the Board's responsibility to adopt a programme and budget for the Institute, and to transmit it to the Governing Body for endorsement of the programme and final approval of the budget. The 1996-97 Programme and Budget had been adopted in November 1995. The 1998-99 Programme and Budget would come before the Board in November 1997. This schedule had several advantages. It enabled the Programme and Budget to be drawn up in the light of the resources which the ILO made available to the Institute; it preserved the programme guidance role of the Board and ensured the academic freedom and autonomy of the Institute; and, most importantly, it enhanced the flexibility of the Institute's programme, by enabling it to respond to emerging concerns of its constituents in a timely manner.
11. On the role of the Institute, the Director drew attention to paragraphs 1 and 2 of the report, which described the facilities provided by the Institute to the ILO. These were: a strategic facility for the future development of ILO programmes; and an outreach facility to project ILO concerns and views to a wider constituency of academics and other makers of public opinion. As regards the strategic facility of shaping future programmes, the Institute was concerned with emerging issues and new perspectives. Its activities were intended: to identify those changes that would have policy implications for the ILO in the future; to analyse them through research networks within an international comparative framework; to promote informal discussion on them by ILO constituents to ensure their participation, support and consensus; and at the appropriate stage, to pass the programme on to the relevant ILO departments. The Institute thus had a rolling programme horizon, with evolving priorities.
12. The new perspectives were identified within a broad theme: the mutual interaction between labour institutions, economic change and industrial transformation. Within that theme, Institute programmes had been developed under two headings: labour institutions and economic development (including issues of equity and social justice, such as social exclusion); and labour institutions and new industrial organization.(4) This approach had the advantages of focusing on the social implications of economic and industrial change rather than treating social policy in isolation, and of providing an analytical framework to define emerging trends in terms of specific ILO concerns such as employment, conditions of work, and the promotion of human rights.
13. The research carried out by the Institute had a number of distinguishing features that deserved mention: it was prospective rather than historical research, and concentrated on emerging issues. Its emphasis was on inter-sectoral topics which cut across the concerns of the ILO and which were not therefore covered by any single ILO department. This promoted a greater coherence of approach within the ILO as a whole, while avoiding duplication between the Institute's programmes and those of ILO departments. The research was carried out through networking, rather than through original research, for which the Institute was not equipped. Networking and joint activities with other institutions and groups were its modus operandi, as illustrated by its collaboration with the International Trade Centre of the World Trade Organization (paragraph 24); and its Commodity Chains Network (paragraph 27). As senior members of the major research establishments of different countries, the former academic members of the Board had been an important means of complementing the Institute's own resources. Such networking would now have to be developed through other means. The Institute carried out policy research, and not fundamental research. Its aim was to identify policy issues and programme implications for the ILO and its constituents. Consequently, its research agendas were driven by practitioners' concerns, and its research networks included practitioners as well as academics. Finally, a major objective was to promote research on ILO priorities in external academic institutions. Academic agendas were very different from ILO agendas, and the Institute's programme networks promoted their convergence.
14. Turning to the Institute's outreach facility (paragraph 1), the Director noted that the Institute's role was to project ILO concerns through informal dialogue between constituents and academics and other policy makers, and to bring their thinking to the ILO. He cited the International Conference on Labour and the International Economy (paragraph 33), organized in collaboration with the United States Council on Foreign Relations and the Royal Institute of International Affairs of the United Kingdom, as an example of the Institute's role in bringing ILO concerns to the attention of a wider constituency: in this instance, to the foreign policy community; and the four Public Lectures (paragraphs 41 to 44), as a means of bringing the views of distinguished public figures from different parts of the world to the attention of the ILO's constituents and staff. The speakers in question were Dr. Aleksandr Shokhin, former Vice Prime Minister of the Russian Federation; Professor Jeffrey Sachs of Harvard University; HRH Princess Basma bint Talal, Chairperson of the Queen Alia Fund for Social Development, Jordan and, most recently, Mr. Jiro Nemoto, the President of NIKKEIREN (Japan).
15. The Institute disseminated its findings outside the ILO in a variety of ways, notably through publications and meetings. Nine publications had been issued in 1996, and a further 16 were under preparation (see paragraph 45 and the appendix). It also used its own meetings and those of other institutions to disseminate information on its activities. An important example of the former was the Policy Forum on Social Exclusion (paragraph 15) organized by the Institute in New York in May 1996 to disseminate the findings of its research on this theme. The meeting was timed to coincide with, and to inform, the meeting of the United Nations Commission for Social Development. Examples of the dissemination of the Institute's research findings through the meetings of other bodies were contained in paragraphs 17 and 21. Dissemination and projection also took place through contacts with universities, for example, cooperation with Bocconi University of Milan (paragraphs 35 and 39) and through visiting scholars, six of whom had visited the Institute this year (paragraph 40).
16. The Director also referred to the Institute's educational facility, which was of considerable importance to ILO constituents, particularly workers and employers. The aim of this facility was a limited one, but it was highly targeted. Its purpose was not training but rather to introduce future policy makers from the three groups to the work, procedures and purpose of the ILO; to expose them to tripartism and the way it operated at the international level; and to acquaint them with the international dimension of social policy, which was gaining importance in a global economy. The content and procedures of the Internship Course (paragraphs 36 to 38) had been extensively revised in 1996, and representatives of the Workers' and Employers' groups had been involved in the actual implementation of the Course.
17. Interaction with ILO departments took several forms (see paragraph 7). Informal interaction ranged from the participation of Institute staff in departmental working groups to the provision of advisory services. Formal participation in joint activities included the Workshop on Social Exclusion, organized in cooperation with the ILO's Multidisciplinary Technical Advisory Team in Santiago (paragraph 13); collaboration with, and advice to, the Southern Africa Multidisciplinary Advisory Team (SAMAT) on its programme on export processing zones (paragraph 32); and most importantly, collaboration with the ILO's Enterprise Department in the organization of the ILO's recent Enterprise Forum (see paragraph 34). Board members would have noted that four of the six discussants came from the Institute's research networks and included former members of its Board, and five of the six background papers had been written by authors in the same circles. The Institute also made a major contribution to conceptual preparations for the Forum and had worked with the Enterprise Department in developing the ILO's Enterprise Strategy.
18. Turning to the issue of resources and staffing, the Director called attention to the fact that the activities detailed in the report were carried out by a total of four Professional-category staff and himself. The Institute had budgetary provision for eight Professional posts, including its Director, and nine General Service posts. However, as paragraph 8 indicated, staffing had been a major problem in 1996.
19. The Institute's resources were drawn from a contribution from the ILO's Regular Budget, from an Endowment Fund, and from its own reserves. The ILO's contribution to the Institute for 1996-97 was approximately 1 per cent of the ILO budget. While extra-budgetary funding was sought wherever possible, it had to remain consistent with the programme priorities defined by the Board. The express objective of the Institute had been to serve as an arm of the ILO to meet the needs of its departments and constituents, rather than to be an independent academic centre or research consultancy service. The Governing Body had on several occasions voiced concern that income-generating activities should not divert the Institute from this objective. When the Institute was founded in 1960, it was hoped that the Endowment Fund would attain a level of $10 million ($65 million in today's terms), the revenue from which would make the Institute financially independent. However, it had never done so, and stood at only $4 million today. At no time had the Fund been able to support the bulk of the Institute's programmes. The ILO had made a contribution to the Institute every year since 1961, and the principle of regular budgetary support had been formalized by the Governing Body.
20. Finally, the Director summarized briefly the main lines of activity undertaken in 1996 and the proposed programme in 1997. He recalled that 1996 had been a year of programme transition marked by staffing problems. The Institute had, nevertheless, been able to bring the research work on social exclusion to a successful conclusion; to revamp its educational programme in the light of comments from employer and worker members; and to make considerable progress on mapping global commodity chains. The preliminary findings of this last project were considered at an international workshop in January, and steps had been taken to develop networks for action in 1997. It was expected that further work on the Institute's project on international markets and local development would continue in the ILO itself. This provided an illustration of the Institute's rolling programme.
21. Looking ahead, in 1997 the Institute would focus on preparing the ground for the next biennium. A key area would be that of social coherence, as follow-up on the work on social exclusion and the Copenhagen Summit. Programmes would be developed to explore the respective roles of business and labour in society at a time of globalization.
22. The representative of the Government of Brazil indicated his Government's support for the Institute, which it saw as an important tool in the service of the ILO. Its prospective approach, and its ability to identify new policy areas, would be crucial to the Organization's future relevance in the context of the changes occurring in the economy and in international relations. It was, therefore, in the ILO's own interest to safeguard the Institute's effectiveness. For this reason, he put on record his concern for the problems faced by the Institute. While he was aware of existing financial constraints, and appreciated the Director-General's attempts to rationalize and streamline the Office, he felt that, given the size of the Institute and its strategic importance, it was essential to preserve its ability to promote the kind of thinking that was so necessary for the ILO at the present time.
23. Mr. Ahmed (Worker member) conveyed the appreciation of the Workers' group for the useful work that the Institute had been able to carry out despite budgetary and staffing constraints. The Workers' group acknowledged the usefulness of the activities undertaken by the Institute in support of the ILO's constituents, and appreciated its collaboration with ILO departments and the multidisciplinary teams. However, it urged greater involvement of the social partners -- trade unions in particular -- in the design and implementation of projects at the national level. In this context, Mr. Ahmed drew particular attention to a comparative study of the effects of labour institutions on development paths and processes in Pakistan and the Philippines, to which the trade unions and employers' organizations in those two countries could have contributed a realistic grass-roots perspective. The Institute could also do much to enhance the research capacity of trade unions and employers' organizations in developing countries in meeting the challenges posed by globalization.
24. Mr. Ahmed noted with satisfaction the work carried out on poverty and social exclusion. The Institute's contribution to the Social Summit was particularly noteworthy, and its concepts and research findings could be useful inputs into the follow-up being undertaken by the ILO as the lead agency of the United Nations system. Mass unemployment and poverty were both an intolerable waste of resources and a threat to social cohesion and international peace. The Social Summit had called for international and national efforts to bring about people-centred, sustainable development, which in turn called for the creation of quality jobs, the safeguarding of the basic rights and interests of workers, and the promotion of international standards. International support was particularly necessary to promote the gamut of national policies called for, and to encourage the establishment of high-level tripartite committees to formulate appropriate policies and mobilize action. In view of its programme on social exclusion and its corollary, social inclusion, the Institute could contribute to this international effort. However, its activities would benefit from being carried out in cooperation with the ILO's tripartite constituency. In this context, Mr. Ahmed called attention to the European Union's social policy forum on social exclusion, with which he felt the Institute could usefully collaborate. The Institute should pay special attention to the rural sector -- which still contained the bulk of the workforce in developing countries -- and to women in this sector, as their access to income-generating activities and training was still inequitable.
25. Mr. Ahmed believed that the Institute's programme on Labour institutions and new industrial organization was particularly relevant given the social consequences of current developments in the global economy. The negative impact on labour in terms of flexible labour markets, income disparities, unsafe working conditions and the denial of trade union rights, made it imperative for all aspects of this phenomenon to be studied. The work being undertaken on export processing zones would provide useful pointers on such issues as trade union and worker rights. The same was true of the study on software production in Bangalore. Noting that the international community was finding it difficult to reconcile economic growth with human development, he urged the Institute to turn its attention to this area. Attention should be given to the phenomena of jobless growth; precarious employment; the importance of human resources development and industrial relations for productivity; and the links between national competitiveness and systems for the equitable sharing of the fruits of economic development.
26. With regard to the Educational and intersectoral activities programme, the Workers' group would like to see an additional course organized each year, as the number of places available did not meet the felt needs of constituents. Developing countries, and trade unions in particular, derived considerable benefit from the existing internship course.
27. The representative of the Government of Hungary observed that her Government recognized and appreciated the work of the Institute, with which it had long been associated. She had read with considerable interest the description of the Institute's project on the impact of the changing geography of global production on labour markets. As it appeared very pertinent to the work of the Working Party on the Social Dimensions of the Liberalization of International Trade, she regretted that the project had not found reflection in the document prepared for it.
28. Mr. Imoisili (Employer member) congratulated the Institute, on behalf of the Employers' group, for its excellent work. The Employers' group was happy with the report and was astonished that the Institute had been able to accomplish so much in such difficult circumstances. This raised a fundamental question about the way in which the Institute's future role was envisaged by the ILO. It faced a constant battle for survival, and its contribution to the Organization seemed to be undervalued by the ILO. This was detrimental to staff morale, and could eventually lead to the destruction of a valuable arm of the Organization. Urgent action was required by both the Director-General and the Institute if its survival were to be ensured, and he urged that this be taken without delay. For example, the ILO could practise management efficiency by outsourcing work that it now subcontracted to outside institutions to the Institute, which could use its extensive, established networks to accomplish the tasks. This would be invaluable to the ILO, and would link the Institute more closely with the work of the Office. The Institute should also review its situation in strategic terms. Speaking as an Employer member, he urged the Institute to concern itself to an even greater degree with issues of importance to employers and enterprises. He noted with pleasure the scope of the Institute's input into the Enterprise Forum 96, and the emphasis on issues such as productivity and competitiveness in its programme on labour institutions and new industrial organization, and suggested that a serious effort be made to build on this excellent beginning. A related area which could usefully inform the future work of the Institute was that of the continuing importance of tripartism in the context of globalization. Being able to report advances in these areas would not only win even greater support for the Institute in the Employers' group, but would also enable them to "sell" the Institute's programmes and help it to obtain more funding.
29. Finally, Mr. Imoisili felt that the Internship Course was of crucial importance for the ILO because it renewed its constituency in the member States. It was regrettable that it had been truncated for budgetary reasons and he urged that ways to redress the situation be explored.
30. In conclusion, he urged Mr. Tapiola to convey to the Director-General the Board's message that he should do everything necessary to ensure the survival and to promote the continued effectiveness of the Institute, and of its strategic and outreach services to the Organization.
31. The representative of the Government of the Republic of Korea thanked the Director for his informative presentation, which gave a clear picture of the scope, content and direction of the Institute's present and future work. The Director's report had the support of his Government. He was particularly appreciative of the explanation provided concerning the strategic and outreach functions of the Institute. These functions needed to be kept in constant balance. Academic research, focused on emerging labour issues, was of vital importance to future ILO programmes, and it was the Institute's task to provide such information through its cooperation with other academic institutions. Notwithstanding its budgetary constraints, the ILO should assist the Institute in this by facilitating staffing and making appropriate budgetary allocations in areas of particular interest. Promoting the spirit of the Social Summit and strengthening tripartism and the tripartite actors were two such areas, and the Institute had a continuing role to play in both. Noting that staff constraints were a particularly serious problem given the scope of the Institute's activities, he sought information on the Director's plans for resolving it in 1997.
32. Mr. Anand (Employer member) was pleased to note the work being done by the Labour institutions and development programme on the links between foreign direct investment, employment promotion and labour policy in Bangalore (India) and elsewhere. He had read with interest the Institute's work on the Italian industrial districts, and suggested that similar studies could be carried out on industrial estates in developing countries, as these were fast becoming major focuses for employment-generating activities led by small, dynamic firms. Particular attention should be paid in such studies to the provision of infrastructure and services, as these were crucial to productivity improvement. Enterprises were the acknowledged generators of wealth and employment. Their development and vitality was the basis of economic development and, ultimately, of social justice and equity. The promotion of healthy enterprises was, therefore, an international responsibility, and he had been happy to see the active involvement of the Institute and its network of researchers in the Enterprise Forum. The Institute was well placed to carry the message of the Forum to the regional level, where it would reach a larger audience, which would include trade unions whose members had as vital a stake in the prosperity of enterprises as their employers. He noted that a number of labour institutes existed all over the world, many of which had been modelled on the Institute. He felt that the Institute could extend its outreach and its visibility at the regional and national levels by working through these bodies and urged the Director to explore this possibility further. Finally, Mr. Anand suggested that, while the Institute's programme was a biennial one, its content and implementation could be reviewed annually to permit rapid responses to new situations.
33. Summing up the discussion, the Chairman noted both the unanimous support in the Board for the Institute and its programmes, and concern at its difficult position. He felt that, while the context in which decisions had been taken in November 1995 had changed somewhat, the financial position of the ILO was not wholly restored. However, he would convey to the Director-General the concern that links be re-established between the Board and the academic community and that means be found to restore the academic input formerly provided by the independent members of the Board. The strengthening of the links between the Institute and the ILO was also stressed, and a number of areas in which the Institute could be of particular service to the ILO were identified. These included follow-up on the Social Summit and the Enterprise Forum.
34. The Director noted that three clear messages had emerged from the discussions. The first was the need for greater academic input into the Board. This ranged from a possibility of greater informal interaction, to Mr. Imoisili's suggestion eventually formally to amend the Regulations concerning the Board. The latter was a matter for the Governing Body itself, but in the interim, some formula might be found within the parameters of the present structure of the Board. One possibility was to organize a theme-based debate, either as an informal part of the Board meeting, or as a special seminar held in conjunction with the meeting of the Board, wherein a theme of relevance to the future programme of the Institute could be examined. If acceptable, this could be explored in 1997. A second, complementary solution would be to further strengthen the academic networks around specific programmes, and to involve the members of the Board in them. Stronger networks might also emerge if the Institute were to undertake joint programmes with other organizations. Such ventures would also respond, in part, to the proposals made by Mr. Ahmed and Mr. Anand concerning closer working links with Third World institutes and capacity building.
35. The second message was the need for greater tripartite involvement in the Institute. This had always been a concern and a hallmark of the Institute's work and much was already being done to involve the tripartite actors in networks and in programme implementation. Clearly, as Mr. Ahmed indicated, omissions did sometimes occur,and greater attention would be paid to this point in the future. However, it appeared that the Board's comments went beyond tripartite involvement in programme implementation and touched on the issue of closer consultation in the definition of the themes that the Institute should address. The Director assured the Board that the proposals for the next biennium would be based upon such consultation.
36. The third message was that the Institute should continue to respond rapidly and flexibly to contemporary needs, such as the role of the social actors in a changing world, and follow-up on the Social Summit. This point, which was made by the representative of the Government of the Republic of Korea as well as by Mr. Ahmed and Mr. Anand, coincided with the Institute's own preliminary thoughts on its programme for 1998-99. Building on its work on social exclusion -- which was its distinctive contribution to the Summit -- the Institute planned to address the third area identified by the Summit for future action, namely social integration. This was an area in which both the Workers and Employers would have an important contribution to make. In the light of the present discussion, the Institute would develop programmes on the changing roles of business and of labour in society.
37. Turning to specific issues, the Director noted that two important points had been raised by the representative of the Government of the Republic of Korea. The first was the need to achieve a balance between outreach activities and strategic activities. This was indeed a continuing preoccupation. The second question concerned future staffing. As noted in paragraph 8 of the report, the situation had improved considerably, and he hoped it would improve further by the end of 1996.
38. Responding to the question raised by the representative of the Government of Hungary concerning the respective roles of the ILO and the Institute in work on the international organization of production and the commodity chain approach, the Director noted that this was still a "frontier issue". The concept needed further refining before it could be used to inform ILO policy debates. It was also only one aspect of the much broader question being considered by the ILO Working Party on the Social Dimensions of the Liberalization of International Trade. In any event, future work in this area would be undertaken in close collaboration with ILO departments.
39. The Board took note of the report of the Director.
Acceptance of contributions and gifts
40. The Chairman noted that the only point for decision under this item was the acceptance of the contribution made by the employers' confederations of Denmark, Finland, Norway and Sweden of US$5,000 to finance a fellowship for a candidate from employers' circles to participate in an internship course at the Institute. Mr. Imoisili sought clarification on the fact that this contribution was not reflected in the appendix to the document. The Director explained that the appendix related only to contributions to the Endowment Fund, while the contribution from the employers' confederations had been used for a specific activity. The Institute greatly appreciated this support for its educational activities.
41. The Board recommended to the Programme, Financial and Administrative Committee of the Governing Body of the ILO the acceptance of this contribution and thanked the organizations concerned.
Geneva, 14 November 1996.
3 INS.B.XXXVIII/3, appended to GB.267/PFA/2/1.
4 In this context, the Director drew attention to an error in the Report of the Director. Review of activities in 1996 (INS.B.XXXVIII/2). The title of Programme II should read "Labour institutions and new industrial organization".