Statement by Global Unions to the 2003 Spring Meetings of the IMF and World Bank

The statement argues that the global economic slowdown brings the world further away from achieving the Millennium Development Goals, only three years after they were adopted and calls for a global stimulus plan aimed at providing decent employment and improving the living standards of those at the lowest incomes. The Unions believe that the IMF and World Bank could play key roles in designing and applying such a plan, but that, to do so, they must adopt major reforms in their polices and practices as outlined below:

• Increased Debt Relief and Regulation of International Financial System because:
  • HIPC has not made debt levels sustainable
  • There is a danger of further defaults in Latin America
  • There is a need for an international bankruptcy procedure
  • Measures to stabilize the international financial system are needed
• Bringing Support for Labor Standards and Consultation into IFI Operations by:
  • Renewed commitments to recognize the core labor standards (CLS)
  • Stopping Bank and Fund pressure to reduce worker protection for economic growth
  • Concern for labor rights as opposed to labor flexibility
  • Prevent IMF reduction of unemployment benefits
  • Urging the IMF and World Bank to ensure that country-level policy advice or loan conditions concerning labor issues are consistent with their support for the CLS
  • Working on quality, as well as quantity, of consultations with unions
• The Need for Quality Public Services because of:
  • Growing resentment against IFI-led privatization
  • More open attitudes not reflected at country level
  • Corruption and incompetence by private providers
  • Pension privatization has led to severe fiscal restrain
• PRSPs: Popular Will Must Have Precedence Over IFI Orthodoxy because:
  • When the unions are excluded key issues are not addressed in the PRSPs
  • There are obstacles to unions to address key issues, participate in drafting committees, and a lack of resources
  • PRSPs are put aside when loan arrangements (conditionalities) are negotiated Example: Privatization imposed as loan condition in spite of PRSPs
  • IFIs implement a 'country-ownership' structure to deflect criticism of unpopular policies onto the countries

The statement concludes that IFIs must contribute to global stimulus and social development through operational practices that contribute to global social development.

[Adapted from a summary by the Bretton Woods Project - http://www.brettonwoodsproject.org/ ]