globalization, trade & decent work arun kumar. globalization? participants views…

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  • Globalization, Trade & Decent Work Arun Kumar

  • Globalization?

    Participants views

  • Why Globalisation?Capital Needs Marketsnew markets for profits; Also natural resources

    Developing countries need to grow, need capital, access to new technology, goods & services;

    Investors need free trade, minimum or no regulations on capital & safe guarding of their investments;

    Economic reforms, free trade & Globalization!

  • Forces behind GlobalizationG7 Countries (reflecting Business/Financial Capital Interests) - US Treasury Dept major player

    IMFWorld BankWTO Estd on 1st Jan 1995 -----------------------Regional Banks like ADB and Private Banks,Global based Investment Funds, TNCs, UN Organizations,Domestic business interests

    Estd after 2nd WW in 1944

  • What is Globalization Promoting? Supremacy of markets, Government - a problem!

    One size fits all kind of policies:Open markets for trade, investment & capital flows, FDI rather than foreign aid, no performance requirements on FDI, cut govt deficit, privatize, etc

    Employment flexibility

  • Global Labour Market Scenario, 2006Global workforce: Over 3 billion (another 430 million will be added by 2015 majority of who will be from developing countries) Women constitute 40% of the labour force (1.22b) About 1.37 billion working people earn less than $2/day (working poor); 522 m live on less than 1 $ a day majority of worlds poor are in Asia and Africa.Over 3/4th of the working population in Africa lives on less than US$2 per person in the household, per day (260.3 million, expected to go up to 316.7 million by 2015).

  • Global Labour Market Scenario, 2006No. of unemployed globally: 195.2 m;

    Women comprise about 42% of global unemployed (about 82 m);

    44% of worlds unemployed are youth (86.3 million) [over 48% of these are in A-P region];

    Over 43 m new jobs to be created each year in order to reduce global unemployment, says ILO

  • Global Background (2002, in %)Share in World Income/GDP

    Share in World Trade

    Share in FDI

    Share in Portfolio Investments

    HIC (80.5), MIC (11.5), LIC (2), China & India (6)

    HIC (72.9), MIC (15.6), LIC (2.7), China & India (8.7)

    HIC (76.6), MIC (12.5), LIC (1.1), China & India (9.8)

    HIC (76.6), MIC (12.5), LIC (1.1), China & India (9.8)Source: ILR, 2004/1-2, Vol 143, ILO, Geneva

  • Trade LiberalizationDoha Development Agenda- name given to the agenda for multilateral trade negotiations that restarted at the Fourth Ministerial Conference in Doha, Qatar, in November 2001;There are about 21 items on this agenda, covering issues connected with what was agreed under Uruguay Round of GATT in 1994, new issues and WTO rules.Negotiations are still going on; The original deadline of 1 Jan 2005 was missed as was the next unofficial deadline of end 2006.

  • Main areas under negotiationsNAMA Non Agricultural Market Access reduce & eventually eliminate high tariffs & non-tariff barriers at stake industrial development needs, employment & livelihoods in developing countries; Agriculture sector liberalization (need for rural development & food security of developing countries, high tariffs, export subsidies and domestic support by EU & US); TRIPS (Trade-related aspects of intellectual property rights)-Public health & domestic development issues;Services sector liberalization (covers almost all sectors and movement of personnel -skilled)

  • Related issues of concern Obligations of least developed countries, special and differential treatment of LDCs, less than full reciprocity principle, development needs of developing countries; Environment protection policies and trade;WTO rules on regional trade agreements differences of interpretation (this is also one of the pressures on ACP countries for accepting EPAs);Anti-dumping measures & subsidies needs of developing countries and practices of OECD countries;A word about TRIMS & obligations already in force.

  • Implications of New PoliciesShift from development cooperation to free trade;More competition between unequals;Equality of access (to international trade) does not mean equality of opportunity;[unequal capabilities lead to unequal outcomes]Adverse impact on development & employment both in developing countries & in OECD countries; many developing countries will be forced to remain providers of natural resources and low value low technology products;The policies that helped developed countries to develop are now considered trade distorting and hence to be done away.

  • Effects on LabourDownsizing, increasing workloads & job insecurity;

    Weakening of public transport, health care systems, primary education, etc as public expenditure and role of Govt in these sectors declines;

    Growing informal economy rural-urban migration as agriculture becomes non-viable for small farmers;

    Deterioration of labour standards & social protection provisions;

  • Effects on Labour

    Weakening of TUs also thru new HR policies, outsourcing & preference for casual labour;

    Trade Union memberships are decliningmemberships range from 3% - 19%; Union density lowest in agriculture & informal economy dominated countries & declining in most countries;

    What else? Participants experiences

  • Trade Union ConcernsWhere are the jobs? Has Globalization process delivered on jobs front?IssuesNot only unemployment but also, underemployment, low paid, exploitative & hazardous working conditions; Youth (15-24 yrs) unemployment serious; for every unemployed adult, there are about 3-5 unemployed youth;Jobs without rights call centres, private services sector, SMEs in informal economy, EPZs and so on.Workers Rights to organize? to bargain collectively?

  • So, what are TUs saying?Answer does not lie in Protectionism

    Ensure Justice, Equity and Democracy in the new global order;

    Need for role of State and public regulation of business and international trade;

    Review of Free Trade to re-focus on the objectives of Devt, Empl. & Poverty reduction multilateralism rather than bilateralism.

    Respect for basic International Labour Standards for promotion of Decent Work;

    Representation & Participation of TUs in economic and social policy matters;

  • What is ILO saying?ILOs World Commission on the Social Dimension of Globalization says Global markets need governance i.e. a set of institutions & rules for equitable functioning to:

    Avoid market failures(e.g., economic crises);

    Redress vast inequalities between & within countries;

    Strengthen mechanisms for delivering social protection - manage change.

  • Decent Work!!! Aimed at achieving the following strategic objectives:

    Creating Jobs through opportunities for investment, entrepreneurship, wage employment & sustainable livelihoods;

    Guarantee Rights at Work of All workers;

    Provide basic social protection against declining standards of living, marginalization & poverty; and

    Promote dialogue & conflict resolution the right to be heard, to negotiate and dialogue is the best way to solve problems peacefully.

  • ILO Declaration, 1998 1998 Declaration is the threshold to Decent Work:

    a minimum social platform for the global economy

    a promotional instrument for universal rights and the development agenda

    a common objective for the international community

  • TUs support to Decent WorkTUs support the integrated approach of ILO to address the social impacts of globalization:Because the concept of Decent Work -

    Focuses on core rights, addresses all workers, in all economic sectors (formal, informal);

    Is participatory, promotes Social Dialogue & seeks to involve all social partners

    Is Dynamic progresses as the economy changes

  • Trade Union Responses

    Mergers of trade unions GUFs;

    ITUC merger of ICFTU, WCL & some other unions on 1 Nov 2006, Vienna;

    ITUC represents 306 affiliated national trade union centres of 154 countries & territories representing some 168 million members.


  • Trade Union ResponsesCampaign for core ILO labour standards, particularly C 87 & 98;

    Global Collective Bargaining (GUFs have signed Codes of Conduct OR Framework Agreements with about 54 MNCs till now, covering over 4 million workers world wide);Build alliances with other social partners on mutually agreed agenda links with world TU bodies, Womens movement, NGOs where necessary, Consumer movement role of international labour solidarity.Using Workers Capital to promote Union Rights & other labour standards (not tried so far);

  • Negotiating Change at National level Ensure Right to Organize & Right to Collective Bargaining!

    Adopt policies that apply to all workers & prevent further divisions of workers in the labour market put all workers in one boat. Set nationwide floor labour standards that apply to all workers & employers (de-link labour standards from permanency of employment); Roof to be attained thru Collective Bargaining the right to which should be ensured.

  • Negotiating ChangeWhat is the floor that employers should respect?

    Core labour standards of the ILOFreedom of Association the right to form unions, the right to recognition

    Right to Collective Bargaining

    Basic social security contribution

    Access to skills training

    No discrimination, No child labour

  • Why Labour Standards?Labour Standards are not just a question of workers rights BUT are als