Interviews
IFIs should work to improve employment content of growth, ITUC
06 Oct '09
5 min read
As regards the IMF's new mandate to monitor the consistency of countries' policies with a "rebalancing" of the global economy (elimination of huge trade deficits and surpluses), the ITUC expressed agreement with the objective but invited the IMF to address the root causes of global imbalances, among which is the burgeoning inequality that has taken place in many countries over recent years.
Ryder stated: "The IMF has called on large trade surplus countries in Asia to increase their domestic demand base as part of the global rebalancing effort. Well, that won't happen if these same countries keep wages artificially low and provide insufficient social protection by prohibiting free trade unions that could negotiate higher wages and better working conditions and campaign for adequate pensions and health protection." The IMF, along with the World Bank which has already adopted some measures in support of the ILO's core labour standards, should urge all member countries to allow freedom of association and right to collective bargaining.
The ITUC urged to IMF to press for rapid agreement on a comprehensive and robust international framework for financial regulation, observing that the opaque process engaged by the Financial Stability Board showed little sign of producing such a framework, especially in light of the fact that those most responsible for the current financial crisis, including private financial institutions and central bankers, have been given the principal role for designing the framework. The process must be opened to trade unions, who warned for several years of the dangers of a financial crisis and whose members have suffered the brunt of the impact.
The introduction of a financial transactions tax, which several heads of state at the G20 Summit supported or showed interest in, must be among the measures receiving more serious consideration by the IMF than it has up to now. The ITUC also called upon the IFIs and donor countries to scale up the level of grants and concessionary assistance to low-income countries, many of which face increases in extreme poverty because of continued high food prices as well as the impact of the global financial and economic crisis.
Ryder stated: "The IMF has called on large trade surplus countries in Asia to increase their domestic demand base as part of the global rebalancing effort. Well, that won't happen if these same countries keep wages artificially low and provide insufficient social protection by prohibiting free trade unions that could negotiate higher wages and better working conditions and campaign for adequate pensions and health protection." The IMF, along with the World Bank which has already adopted some measures in support of the ILO's core labour standards, should urge all member countries to allow freedom of association and right to collective bargaining.
The ITUC urged to IMF to press for rapid agreement on a comprehensive and robust international framework for financial regulation, observing that the opaque process engaged by the Financial Stability Board showed little sign of producing such a framework, especially in light of the fact that those most responsible for the current financial crisis, including private financial institutions and central bankers, have been given the principal role for designing the framework. The process must be opened to trade unions, who warned for several years of the dangers of a financial crisis and whose members have suffered the brunt of the impact.
The introduction of a financial transactions tax, which several heads of state at the G20 Summit supported or showed interest in, must be among the measures receiving more serious consideration by the IMF than it has up to now. The ITUC also called upon the IFIs and donor countries to scale up the level of grants and concessionary assistance to low-income countries, many of which face increases in extreme poverty because of continued high food prices as well as the impact of the global financial and economic crisis.
International Trade Union Confederation
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