World Commission on the Social Dimension of Globalization

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World Commission on the Social Dimension of
Globalization A Fair Globalization Creating
opportunities for all Presentation by Rolph van
der Hoeven UNU Tokyo 1 july 2004
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Current Trends in Globalization IMBALANCE

• North-South imbalance - unfair rules in trade and
  FDI
• Trade Despite liberalization, expansion did not
  occur uniformly
• Barriers to market entry for certain products of
  poor countries
• FDI highly concentrated in about 10 developing
  countries despite efforts by many to seek to
  attract FDI

• Capital goods move more freely than labour
  knowledge
• Disparities in enterprise competitiveness and
  labour markets

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Slower World GDP Growth
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Imbalance in Growth

• Widening income gap between 20 poorest and 20
  richest countries

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Imbalance in Job Opportunities

• Open unemployment increased in many regions in
  past decade
• Self-employment increased in all developing
  regions except East and South-east Asia
  informal economy proxy

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Imbalance in Income Equality and Poverty Reduction

• Growing income inequality
• increased gap in some industrialized countries
  and large
• majority of other countries mid 1980s -
  mid-90s
• significant decline in absolute poverty 1990 to
  2000
• Note much of improvement in China and India
  increases in sub-Saharan Africa,
• Europe/Central Asia, Latin America/Caribbean

GAINS - people with capital, other assets,
education and skills associated with MNEs,
competitive national enterprises LOSSES - people
in uncompetitive enterprises or without skills or
assets, small/informal producers, indigenous
peoples, certain women
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CORRECTING THE IMBALANCE World Commission on the
Social Dimension of Globalization Created in
february 2002

• A cross-roads for debate world-wide how to build
  a fair globalization and reduce poverty and
  inequality

• Diverse representation of countries and interests

• Broad mandate authorized by ILO to review impact
  of globalization recommend ways to meet
  peoples needs

• Inputs from different actors and interests around
  the world

• Report with findings 24 February 2004

• Invitation to all, including ILO, to act on
  proposals

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Establishment of the World commission
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Origins

• Created out of debate on the social dimension to
  the multilateral trading system
• 1994 - Working Party on the Social Dimensions of
  Trade Liberalization
• Impact of freer trade on reaching ILOs goals
• Improve ILOs institutional capacity
• Better empirical knowledge
• Overall coordination of activities linked to
  social aspect of globalization
• 1995 Copenhagen Social Summit
• Commitment to ILO 7 (8) core conventions
• ILO ratification campaign

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Origins
1996 - WTO Singapore Declaration 1998 ILO
Declaration on Fundamental Principles and Rights
at Work 1999 - ILO Blueprint Decent Work
reorganize ILO in line with 4 strategic
objectives - labor standards and fundamental
rights - employment - social
protection - social dialogue 2000 - Working
Party on Social Dimension of Globalization new
name, expanded mandate an integrated approach
between the ILO and the international community
in dealing with the interaction of economic and
social issues within the globalization
process 2001 - Director General, ILO
participates in the Davos and Porto Alegre
Meetings on globalization 2001 - GB announces
World Commission 2002 - World Commission
Established
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• Aim of the Commission
• Build a consensus on a model of globalization
  that reduces poverty and insecurity,
• and increases opportunities for all.
• Objectives
• Identify policies for globalization that
• - reduce poverty
• - foster growth and development
• - promote decent work
• - promote open economies and societies.
• Identify policies to make globalization more
  inclusive between and within countries.
• Help the international community forge coherent
  policy to advance economic and
• social goals in the global economy.

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Co-Chairs H.E. Ms. Tarja Halonen, President of
the Republic of Finland H.E. Mr. Benjamin Mkapa,
President of the United Republic of Tanzania
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A Fair Globalization Creating Opportunities for
All Report of the commission , published 24
February 2004

• Part III
• The Governance of Globalization
• Beginning at Home .
• The reform of Global Governance .
• Fair Rules
• Better International Policies
• More accountable institutions. Part

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Addressing globalization begins at home

• Each nation respects the needs and interests of
  others in formulating domestic policies.
• The benefits of globalization can only be widely
  shared, and the adverse effects controlled, if
  the basic principles of democracy, social equity,
  human rights and the rule of law are respected.
• A more effective State with the capacity to
  manage the process of integration into the global
  economy.
• Fair globalization requires improvements in
  governance both within countries and at the
  international level.

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Fair rules, equitable policies

• The multilateral trading system should
  substantially reduce unfair barriers to market
  access for goods in which developing countries
  have comparative advantage.
• Fair rules for trade and capital flows need to be
  complemented by fair rules for the cross-border
  movement of people.
• Global production systems have proliferated,
  generating the need for new rules on Foreign
  Direct Investment (FDI) and on competition.
• Core labour standards as defined by the ILO
  provide a minimum set of global rules for labour
  in the global economy.
• A minimum level of social protection for
  individuals and families needs to be accepted and
  undisputed as part of the socio-economic floor
  of the global economy.
• The international financial system should be made
  more supportive of sustainable global growth.
• A greater effort is required to mobilize more
  international resources to attain key global
  goals .
• Stronger measures to reduce tax avoidance and
  evasion, and the potential of possible new
  sources of financing at the global level.

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Reinforcing the multilateral system Improving the
quality of global governance

• Make the multilateral system, including the
  Bretton Woods institutions and the WTO, more
  democratic and accountable to people.
• At both national and international there is need
  for greater coherence between economic and social
  policies.
• Policy Coherence Initiatives to engage the key
  international organizations in developing a
  common, integrated approach to key global
  concerns.
• Multi-stakeholder Policy Development Dialogues
  to bring all relevant actors together to work
  towards agreement on key issues.
• A broader Globalization Policy Forum to bring
  together international organizations and other
  key actors and participants in global debates on
  globalization and its social impact.