Why social dialogue is necessary for sustainable economic development: Exploring peak-level social dialogue in alternative scenarios

This paper argues that social dialogue is a necessary instrument for delivering sustainable economic development and social progress for all. It played a key role in shaping countries’ responses to the financial crisis of 2008–09 and the COVID-19 pandemic. It is also instrumental in operationalizing just transitions, combating inequalities, strengthening respect for international labour standards and responding to the cost-of-living crisis in developed and developing countries. Nevertheless, the structures and resources for social dialogue are underdeveloped in many countries and there is limited appreciation of its role in fostering sustainable economic development and social progress.

Drawing on a range of theoretical and empirical contributions, the paper explores the role of peak-level social dialogue (PLSD) in shaping sustainable economic development. PLSD is defined as institutional processes that bring together representatives of government and social partners (employers’ associations and trade unions) at the national and sectoral levels. The paper provides evidence for its foundational and transformative benefits, aligned with the UN’s 2030 Agenda for Sustainable Development. Then, using scenario analysis, it distinguishes the role PLSD plays under diverse approaches to economic development (short-termist versus long-termist; non-inclusive versus inclusive). The paper contributes to knowledge about the economic and political conditions most likely to enable PLSD to deliver sustainable economic development and social progress for all.