ILO World Commission issues report on globalisation
The ILO’s World Commission on the Social Dimension of Globalisation issued its final report in February 2004. It states that building a fair and inclusive globalisation should become a worldwide priority, and calls for an urgent rethink of current policies and institutions of global governance.
The World Commission on the Social Dimension of Globalisation was established in February 2002 by the International Labour Organisation (ILO). The Commission was co-chaired by Tarja Halonen, President of Finland, and Benjamin William Mkapa, President of the United Republic of Tanzania. The other 24 members were appointed from across the world's regions, representing the world of work, business, civil society, academics, parliamentarians and government advisers, plus Juan Somavia, the director general of the ILO. The Commission developed a set of conclusions and recommendations after listening to the views of a wide variety of people in 20 countries over a period of two years. On 24 February 2004, the Commission presented its final report on globalisation.
Main findings
The report, A fair globalisation - creating opportunities for all, states that globalisation’s 'potential for good' is immense and that it has 'opened the door' to many benefits. It has also:'promoted open societies and open economies and encouraged a freer exchange of goods, ideas and knowledge'. The report suggests that: 'a truly global conscience is beginning to emerge, sensitive to the inequalities of poverty, gender discrimination, child labour and environmental degradation.'
However, the Commission also draws attention to the negative aspects of globalisation, which, it claims, has not met the 'simple and legitimate aspirations for decent jobs and a better future for their children' of the vast majority of men and women. The report expresses the growing concern about the direction that globalisation is currently taking, and maintains that its advantages are 'too distant for too many', while its risks are 'all too real'. It raises concerns about the extent of corruption, the threat of global terrorism and the future of open markets. The report states: 'Global governance is in crisis. We are at a critical juncture, and we need to urgently rethink our current policies and institutions.'
The report, which runs to 168 pages, comprises four parts and several sets of appendices. It argues that a fair globalisation requires improvements in governance within individual countries as well as at international level. It calls for every nation, and in particular those countries that have the greatest decision-making powers in international bodies, to respect the needs and interests of others. The Commission emphasises that the benefits of globalisation can only reach all people if the huge informal economy is brought into the economic mainstream, by establishing and respecting property rights and the rights of workers, and by increasing productivity and the access to markets. Above all, the report stresses that there needs to be an international commitment to ensure the basic material and other requirements of human dignity for all, enshrined in the United Nations (UN) Universal Declaration of Human Rights.
The report’s authors contend that one reason that social goals, such as employment, fail to receive priority at the global level is that international organisations with different mandates do not work together sufficiently well. Accordingly, one of its key recommendations is that 'policy coherence initiatives' be launched by the relevant international organisations to develop more balanced policies for achieving a fair and inclusive globalisation. The objective would be progressively to develop integrated policy proposals on specific issues that balance economic, social and environmental concerns. The report states that the first initiative should address the question of global growth, investment and employment creation and should involve: the relevant UN bodies; the World Bank; the International Monetary Fund (IMF); the World Trade Organisation (WTO); and the ILO.
The report cites other priority areas for such initiatives, including: gender equality and the empowerment of women; education; health; food security; and 'human settlements'.
Among its other key recommendations, the Commission says that global rules on trade and finance must allow more space for policy autonomy in developing countries. It calls for a wide range of measures to address the problems. These include:
- a reduction in unfair barriers to market access for goods in which developing countries have a comparative advantage, such as textiles, garments and agricultural products;
- fair rules for the cross-border movement of people;
- new rules on foreign direct investment;
- stronger action to ensure that core labour standards, as defined by the ILO, are respected;
- a minimum level of social protection for individuals and families; and
- a greater effort to mobilise international resources to attain key global goals, in particular, the Millennium Development Goals issued by the UN in September 2000, and meeting a 0.7% target for overseas development aid as well as the development of new sources of funding.
The report highlights the need for greater coherence between economic and social policies and stresses the responsibilities of all actors to respect universally shared values and principles and to contribute to the overall goal of a fairer globalisation. With this in mind, the Commission proposes a series of multi-stakeholder 'policy development dialogues', designed to bring together all parties concerned to work towards agreement on key issues. It also argues that a broader 'globalisation policy forum' is required, to unite key international actors, and the Commission suggests that this forum could produce a regular report on the state of globalisation as well as promote the wide range of research and data collection required to support policy development.
In conclusion, the Commission reaffirms the value of dialogue as an instrument for change, and notes that its collective report is different from alternative reports that might have been written by its members individually. It refers to its vision for the world and the perils of inaction at this juncture: 'This is an ambitious but realisable common sense vision. The choice is clear. We can correct the global governance deficit in the world today, ensure accountability and adopt coherent policies that forge a path for globalisation that is fair and just, both within and between countries; or we can prevaricate and risk a slide into further spirals of insecurity, political turbulence, conflicts and wars.'
Next steps
The report will be discussed by the ILO’s governing body and Mr Somavia will make proposals to follow it up at the annual International Labour Conference in June 2004. The Commission’s findings will be submitted to heads of state and government, the secretary general of the UN and the heads of the main international organisations, as well as other intergovernmental bodies and key global 'non-state actors'. Each will be invited to debate the recommendations and consider appropriate follow up actions in their own spheres of responsibility and institutional competences.
Commentary
The European Commission supported the establishment of the World Commission on the Social Dimension of Globalisation and has contributed to its work. Margot Wallström, the acting EU Commissioner for Employment and Social Affairs, and Pascal Lamy, the EU Trade Commissioner, welcomed the report and underlined the contribution the document will make to further harnessing globalisation. The European Commission is committed to examining carefully the analysis and concrete proposals contained in the report and will reflect on the possible implications for the EU’s external and internal policies. The report will constitute an important contribution in the preparation of a Commission Communication on the social dimension of globalisation. As key international players representing the developed world, the European Union and its Member States are in a strong position to influence positive developments in the fight against the negative consequences of globalisation. (Beatrice Harper, IRS)