ICFTU OnLine 036/000214/DD
UNCTAD meeting should issue bold call to help workers in developing countries, says global union
Bangkok/ Brussels, February 14 2000: (ICFTU Info): UNCTAD X must use the opportunity provided by the vacuum of ideas after the failure of the WTO Seattle meeting to push home the need for equity, regulation and a strong social dimension, and the setting in place of an external environment that favours developing countries, said the ICFTU at the start of UNCTAD X (February 14).
Increasing world competition is not just leading to competition between rich and poor countries, but between poorer countries, the ICFTU has pointed out. Globalisation has led countries like China, Indonesia and the Philippines to compete against each other for international investment by offering the most attractive opportunities for transnational companies on the basis of the worst conditions for workers. This often leads to the exploitation of women workers in export processing zones and is frequently accompanied by environmental destruction as in Indonesia.
Following the Seattle debacle it is becoming accepted that trade and investment must serve social development, and that people's rights, including working peoples' rights, cannot be ignored, says the world union. A world in which the social dimension is sidelined will simply increase the gap between rich and poor countries, leading to greater poverty for much of the developing world and greater insecurity for the industrialised nations.
The ICFTU is asking UNCTAD to consider the following problems and the suggested measures to deal with them:
1. Economic liberalisation, which in itself implies cutting back the role of the state, as well as structural adjustment programmes, often introduced as a condition for lending by the IMF or World Bank have led to a social crisis in many of the poorest countries. These policies have exacerbated social tensions, forcing the most vulnerable sections of society such as women and children to bear the brunt of the cuts and the lack of social protection.
* The Bretton Woods institutions need to rethink their policies and establish a link between financial stability and social stability, which requires governments to respect social and workers' rights, says the ICFTU. More international support and recognition should be given to UNCTAD's work to help developing countries cope with structural adjustment programmes.
2. The international financial system has allowed massive investments by banks and financial institutions, many of which were either incompetent or corrupt, while governments and financial institutions stood by refusing or failing to take action.
* To stop this happening in the future UNCTAD should develop research on proposals to implement the Tobin Tax concept of an international tax on foreign currency speculation. On the basis of its expertise in the field, UNCTAD should be involved in work on financial stability.
3. So far, developing countries, particularly least developed countries (LDCs), have lacked sufficient technical expertise and in-depth knowledge of complex legal issues to argue their case in WTO committees, and to give the full force of their arguments in other international fora.
* The ICFTU says that as an organisation founded on the principle of making knowledge serve development, UNCTAD should strengthen LDCs' institutional capacity through more technical assistance programmes.
The ICFTU is urging all those governments participating in UNCTAD X to recognise that UNCTAD can play an essential role in trade and development. By taking these measures UNCTAD can contribute to giving globalisation a social dimension.
The ICFTU document can be found on the ICFTU website: http://www.icftu.org/english/els/esclunctadfeb00.html