Catalyzing momentum on human rights and decent work for social justice and a fair globalization

Transcription

1 Catalyzing momentum on human rights and decent work for social justice and a fair globalization In September 2008, a series of multi-stakeholder events on three continents were organized to catalyze political momentum for realizing the human right to decent work, as part of a broader set of activities and campaigns to mark the 60 th anniversary of the Universal Declaration of Human Rights in December These events were the result of an innovative partnership between the NGO Realizing Rights: The Ethical Globalization Initiative and the International Labour Organization (ILO), working together with the Norwegian and Liberian governments and with support from NGLS. A primary initiator of these activities was Mary Robinson, former President of Ireland, UN High Commissioner for Human Rights and President of Realizing Rights. She stressed that these decent work events in September were part of the "Every Human Has Rights" campaign launched by The Elders to mark the 60 th anniversary of the Universal Declaration of Human Rights. Mrs. Robinson described the Declaration as "our living constitution" and referred in particular to Article 23, which spells out the universal human rights prerogatives pertaining to work and social security (see box). She said these events aimed to build momentum for Decent Work through mobilization of actors well beyond the ILO, UN entities, labour and employers organizations. The Decent Work Agenda had to be understood and taken forward by business and civil society more broadly, including human rights organizations, major development NGOs, campaigning networks, think tanks and foundations. The three inter-related events, bringing together representatives of governments, international organizations, civil society, trade unions and businesses, tackled the challenge of implementing the recent global UN commitment to "full and productive employment and decent work for all" from different angles: On 5 September in Oslo, the Norwegian government in cooperation with the Financial Times held an international conference on "Decent Work: A Key to Social Justice for a Fair Globalization" which focused on policy coherence in global governance, especially between the trade and decent work agendas, bringing the heads of the World Trade Organization (WTO) and the ILO around the same table to inspire fresh ideas and ways forward. This was immediately followed on 8-9 September by a high-level forum in Monrovia, Liberia, co-hosted by the Liberian government, on "Working Out of Poverty: A Decent Work Approach to Development and Growth in Africa," which focused on the conceptual and practical policy challenges of integrating employment and decent work objectives into national development strategies in Africa, especially in post-conflict settings. These discussions fed into another high-level forum on 22 September in New York focusing on how a Decent Work approach can help change policy directions in relation to lack of progress in achieving the UN Millennium Development Goals (MDGs), which was the central theme of UN General Assembly discussions that week.

2 The agenda of the upcoming UN Financing for Development Conference (to be held on 29 November 2 December 2008 in Doha, Qatar) covering macroeconomic and systemic issues related to development was considered a major opportunity to further the Decent Work Agenda as part of the follow-up to these three initiatives. Box: Universal human rights and decent work Article 23 of the Universal Declaration of Human Rights states that: (1) Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment. (2) Everyone, without any discrimination, has the right to equal pay for equal work. (3) Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection. (4) Everyone has the right to form and to join trade unions for the protection of his interests. The strategic goals articulated in the Decent Work approach to development spearheaded by the International Labour Organization (ILO) are a main component of the human rights imperatives enshrined in the Universal Declaration of Human Rights (see box). Decent Work emphasizes the need to promote employment for all, but not any kind of employment. People need jobs and livelihoods that offer just remuneration, ensure that their basic rights at work are respected, including the right to organize and collective bargaining, provide for basic levels of social protection, including against injury, ill-health and job loss, and encompass the organizational capacity to negotiate and participate in workplace and work-related policies through social dialogue. This approach is needed now more than ever because of the challenges facing poor and middle class working people due to the food and financial crises, environmental pressures, and other factors beyond their control. Failure of the "neoliberal" model of globalization These events took place against the backdrop of a global food crisis and the unwinding of a global financial crisis not seen since the Great Depression. ILO Director-General Juan Somavia noted in Oslo that even without taking account of these latest developments, the current model of globalization was unstable, unfair and unbalanced. The political support for it was waning, and the model had become unsustainable. He said the latest figures on poverty published by the World Bank suggesting that poverty levels around the world were much higher than previously estimated only provided further indictment of the failure of this model. In light of the unprecedented amounts of wealth generated since the 1980s when the current model was introduced, that the levels of poverty remained as high today should "shame us into believing the current model should continue as it is." Mr. Somavia called for a new policy direction that keeps the notion of "open economies and open societies well at its heart," but which also involves a new paradigm of quality growth based on expanding opportunities for decent work and

3 more coherent policies, nationally and internationally, among economic, social and environmental objectives. The Decent Work approach tries to do that, he said, by providing a unifying focus that is relevant to all countries because work is central to people's lives everywhere. Breaking the deadlock on the global trade and labour governance nexus The Oslo meeting was an opportunity to explore fresh ideas on how to move forward on the controversial issue of the coherence between global governance on trade and labour issues. Many participants referred to the ILO's tripartite Declaration on Social Justice for a Fair Globalization adopted in June 2008 which states that "the violation of fundamental principles and rights at work cannot be invoked or otherwise used as a legitimate comparative advantage and that labour standards should not be used for protectionist trade purposes." This Declaration was seen as a major development in reaching an international consensus on one essential aspect of the trade and labour nexus. The general thrust of the discussion suggested that it was not for the WTO to ensure compliance with labour standards and other elements of the Decent Work Agenda, but for a genuine strengthening of the capacity of the ILO and governments to support the development of labour laws, institutions and compliance mechanisms at the national level. Managing Director of the World Economic Forum (WEF) and Senior Fellow at the Center for American Progress Richard Samans insisted that if the international community were serious about moving from agreement in principle to practical action on the Decent Work Agenda, it would need to at least triple the ILO's technical cooperation budget to that effect, as a first step, over the next two or three years. An employment impact assessment of the Doha trade agenda However, another facet of the issue also had to be urgently addressed, namely the impact of trade policies and agreements on employment and decent work. Mr. Somavia noted that a major mistake made by advocates of free trade was to ignore the fact that intensified international competition increases the pace of both job creation and job destruction - and does so in very uneven ways. He proposed that there should be an analysis of both the positive and negative employment impacts of the proposals on the table within the stalled Doha Round of trade negotiations. WTO Director-General Pascal Lamy agreed that the international system in practice lacked coherence, but the system was still based on a "monopoly of coherence" in the hands of sovereign nation states represented by their governments in international bodies. There were limits to how much the leadership of international organizations could do without the support of their member states. To begin "breaking this monopoly," he suggested the establishment of "policy coherence accountability fora," which would involve the participation of NGOs, trade unions and the private sector to hold nation states or international organizations accountable with respect to their capacity for coherent governance at different levels. The Norwegian Minister of Foreign Affairs, Jonas Gahr Støre, concluded the meeting by fully supporting these proposals. He noted that disagreements over a "Special Safeguard Mechanism"(a proposed trade mechanism to protect the livelihoods of

4 millions of poor farmers in developing countries against sustained import surges and a major reason for the collapse of WTO trade talks in July) showed the extent to which issues related to work were at the heart of trade negotiations. He said that Mr. Somavia's proposed evaluation of the Doha trade agenda from an ILO perspective would be a promising way forward. It would provide knowledge to inform the kind of multi-stakeholder coherence accountability fora suggested by Mr. Lamy. Minister Gahr Støre described the idea as a modern way of building international agreements on difficult issues--a tested example of which he said was the direct involvement of civil society in negotiations on the recently adopted Convention on Cluster Munitions. Coherent national strategies for "working out of poverty" in Africa The Monrovia high-level forum held a few days later shifted the focus to examining the practical challenges of integrating employment and decent work objectives into national development strategies. Experiences shared by labour ministries from Zambia, Tanzania and Mozambique revealed the extent to which high growth rates could have little impact on poverty reduction if the economic strategy was mainly focused on extractive industries and "mega-projects" that generate little if no employment. A better balance needed to be achieved by directing a much greater share of public and private investment into small-scale job-creating sectors, especially in smallholder agriculture, and reaching out to the overwhelming majority of economic actors who find themselves in the informal economy. This necessitated public efforts to improve access to credit, legal entitlements, skills, technical support for value-added production and organizational capacities. It also requires multistakeholder policy dialogue and economic institution-building at the local level. One objective of the Forum was to see how policy lessons from other African countries could help to inform Liberia's post-conflict reconstruction and development strategy as the country emerges from 14 years of civil conflict. Since its election in 2006, the Liberian government has sought to develop a comprehensive employment and decent work plan--cutting across all relevant ministries--that has recently been embedded within the country's overall Poverty Reduction Strategy (PRS)--see "A Decent Work Approach to Post-Conflict Reconstruction and Development in Liberia", ILO At the opening of the meeting, Liberian President Ellen Johnson Sirleaf insisted that "one of the government's most important goals during the PRS period is to promote rapid creation of productive employment that will reduce poverty, ensure peace and stability, and enhance the overall well-being of the Liberian population The next three years will be critical." Mary Robinson noted that Decent Work must be relevant to waged and casual workers building roads and ports or running micro enterprises; to self-employed market women and street hawkers; to workers in mines; and to farmers. It must bring tangible benefits to working women, and it must bring more opportunities to youth. UN Resident Coordinator in Liberia Jordan Ryan stressed the imperative of rapid employment creation, especially in a nation emerging from conflict, where the prospect of getting a job, especially for ex-combatant youth, is a "fundamental alternative to a gun." He said emergency job creation, notably through labourintensive public works, was often denigrated as a waste of resources and inefficient. However, this approach could help not only stabilize the social situation in the short-

5 term. It could also lead to a virtuous circle of economic growth and steady quality job creation if combined with the right medium- and long-term strategies that should all be kicked into action from the outset (the so-called "three track approach" developed in the recently adopted UN system-wide policy on employment creation in postconflict settings). The potential success of this approach was illustrated by a number of pilot projects initiated by the Liberian government in collaboration with ILO and other partners, creating synergies between labour-intensive road reconstruction and support to the development of small businesses and community-led cooperatives. Experience from other countries suggested that a major obstacle to employmentfriendly macroeconomic policies was the lack of policy space resulting from external conditionalities and the terms imposed by foreign investors. President Johnson Sirleaf would later argue at the high-level forum in New York that these unequal relations could be countered if the government built the capacity to know what were the most appropriate policies for its country, and exercised genuine transparency and accountability to its people - thus having the weight of national legitimacy behind it. Building capacities not just of national governments but also of civil society, workers and employers' associations were essential to articulate bottom-up home-grown decent work strategies that could change the course of countries' paths to development and poverty reduction. Greater aid channelled into direct budget support (as opposed to a multitude of donor-driven aid programmes) was necessary to increase the fiscal space for governments to follow through with national decent work priorities, especially in cash-strapped poor countries like Liberia. A human rights approach to economic policy These policy experiences fed into the 22 September high-level forum in New York, which was an official side event to the UN General Assembly High Level Event on the MDGs. The recently appointed High Commissioner for Human Rights, Ms Navanathem Pillay, said the Decent Work Agenda was "at the heart of human rights". Its promotion could go a long way in helping to realize other human rights, especially economic, social and cultural rights such as the right to food. Too often, she said, MDGs were pursued in isolation from human rights even though international human rights treaties provide a much more comprehensive framework for accountability in the prioritization of policies and resource allocation. She emphasized her Office's efforts to align the MDG targets with human rights standards drawing from expertise across the UN system and the civil society community (see for example "Claiming the Millennium Development Goals: A Human Rights Approach" OHCHR 2008). Many speakers emphasized the need to align economic policies with social and human rights objectives. José-Antonio Ocampo, former United Nations Under- Secretary for Economic and Social Affairs, noted with concern that overall policy frameworks were still set by economists without social objectives in mind, while the often negative social consequences were left for social policies to deal with. Mr. Ocampo said there was a need to mainstream full employment and decent work objectives into economic policy making (including monetary, fiscal and trade policies) and called for genuine dialogue between economists and human rights advocates to help change the way economic policies are formulated and evaluated. He noted that a major step forward was the inclusion of full and productive employment and decent work for all as a new set of targets in the MDG framework, following

6 commitment to make this goal a central national and international policy objective at the 2005 UN World Summit. Decent Work as a productive business investment During the Monrovia forum, there had been frank exchanges between representatives of different African national employers' associations on whether investments in decent work would put national companies at a competitive disadvantage or whether, on the contrary, they were a key to improving workers' productivity and hence individual business performance. Some argued as well that this benefits the overall business environment through enhanced consumer demand, social stability and cohesiveness. Liberian government officials said the Monrovia forum had helped to begin promoting a changed understanding within the country in this regard. Earlier in Oslo, Vice President of the Business Advisory Services for the International Finance Corporation (IFC) said that empirical reviews of improved social performance standards by business definitely brought pay-offs in the medium to longer-term. The extent to which companies found these investments difficult to bear in the short term depended considerably on how long-term external investors treated a company's performance. Many participants argued that this suggested the need for changes in the incentives structures of capital markets away from the dictates of high yet unsustainable short-term profits--made all the more obvious now by assessing the root causes of the unwinding financial crisis. In New York, this issue was notably taken up from the perspective of conflicting policy advice provided by different international organizations. It was noted that The World Bank itself provided conflicting advice, with the IFC promoting core labour standards on the one hand while the Bank's highly influential Doing Business Report tended to encourage the opposite. It was time, many participants argued, for international organizations to integrate in their investment promotion activities the "Conclusions Concerning the Promotion of Sustainable Enterprises" adopted in 2007 by the ILO s tripartite constituency. This comprehensive policy framework--resulting from consensus between actors in the "real economy" -- focuses on how to promote enterprise development in a manner that aligns enterprise growth with sustainable development objectives and the creation of productive employment and decent work. Mary Robinson reinforced the importance of the private sector understanding and taking forward the Decent Work agenda, pushing businesses who are behind, recognizing business leadership in this area where it does exist, and cultivating future business leaders in this area. Full and productive employment in the informal economy One of the essential changes to the way policies are formulated concerned how to approach the goal of full and productive employment in the informal economy. Director of the Self Employed Women's Association (SEWA) and Elders' member Ela Bhatt stressed that in the informal economy there are no regular "jobs" as such. Employment, she said, is a combination of a variety of employment relations. At any one time a poor person could be engaged in a number of different employment types-- a small or marginal farmer might also work as a weaver, or a salt worker may be an agricultural worker during the rainy season. Creating employment is then no longer a

7 matter of simply creating 'jobs', Ms. Bhatt emphasised, but of helping the working poor, especially poor working women, overcome a range of structural constraints. These could be linked to lack of legal rights and recognition; access to capital formation, to capacities in the area of knowledge and skills, to voice and representation in planning and implementation, or to market infrastructure and technology. Many speakers echoed this and underscored the importance of access to social protection, especially in the areas of healthcare, childcare, shelter and insurance against external economic shocks, all essential to combat chronic risks faced by the working poor and their families. From the MDGs to a global "social floor" A leitmotiv theme throughout this series of events was to shift from a narrow approach to the MDGs to a broader international commitment to establish a "social floor"--defined within the realities of every country's national circumstances, means and priorities. Such a floor would be designed to prevent people from falling into destitution and help them move up the social and economic ladder, but would be more than a safety net: it would combine social investments (for example minimum health care and old age pension coverage, insurance against economic risk and job loss) with market opportunities to expand mobility based on increasingly better jobs. Mr. Somavia stressed this point in both Oslo and New York. He said that from the perspective of ordinary people it was an aberration to measure progress simply because there was some statistical movement in the number of people that live on US$1/day to US$2/day. This was not how people defined their goals and aspirations in life. The measure was rather in terms of their prospect of securing a decent job or livelihood and a future for their children. On this count, he said the MDGs should definitely be called the "Minimum Development Goals". In addition to recent alarming figures on world poverty, the latest food and financial crises only reinforced the notion that we are on the wrong track. "We don't have to wait till 2015 to declare failure. We can begin now to commit to constructing a social floor." The Secretary for Labour and Employment of India, Ms. Sudha Pillai, referred to her Government s programmes to extend the coverage of the social security system as the evidence that some social floor was indeed possible. Yet, many participants noted that there was still little support if not outright opposition to public investments in socioeconomic security platforms. This was certainly very low on the international aid agenda and sometimes in contradiction with external conditionalities by donors and international financial institutions. Assuming political will could be harnessed to construct a social floor, a major challenge was how to mobilize the necessary national (and in some countries international) resources to finance these social investments. This brought to the fore the need to address problems related to the "race to the bottom" in taxation (notably through excessive tax competition, tax evasion and tax havens)--issues that would be on the agenda of the upcoming Financing for Development (FfD) UN Conference in Doha at the end of November 2008

8 Contacts: Heather Grady, Director of Policy and Strategy and the Trade and Decent Work Program, Realizing Rights: The Ethical Globalization Initiative, 271 Madison Avenue, Suite 1007, New York, NY 10016, United States, telephone , website ( Aurelio Parisotto, Senior Economist, Policy Integration and Statistics Department, ILO, 4 route de Morillons, CH-1211 Geneva 22, Switzerland, telephone / , fax / , <parisotto@ilo.org>, website ( Hamish Jenkins, Programme Officer, United Nations Non-Governmental Liaison Service (UN-NGLS), Palais des Nations, CH-1211 Geneva 10, Switzerland telephone , hamish.jenkins@unctad.org, website (