Transcript Enhancing Job Opportunities in Transition Economies of

The World Bank &
Core Labor Standards,
Human Rights, and Democracy
Robert Holzmann
World Bank
The
World
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Spring Meeting Seminars
April 12, 2007
Core Labor Standards
ILO Declaration in 1998 identified these 4 principles,
applicable to all countries at every level of development :
– Prohibition of forced labor (ILO Conventions 29 and 105)
– Elimination of child labor (ILO Conventions 138 and 182)
– Non-discrimination in employment (ILO Conventions 100 and 111)
– Freedom of association and the right to collective bargaining
(ILO Convention No. 87 and No. 98)
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Not intended to undermine comparative advantage of low-wage
countries
Broad international support for ILO Declaration
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CLS and the mission of the WB
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Persistence of child labor impedes achievement
of MDGs on poverty and education.
Discrimination leads to misallocation of human
resources, reducing economic growth.
Trade unions and employer organizations are
important members of civil society, as well as
economic agents with key roles in adjusting to
shocks, allocating resources, implementing (or
blocking) reform.
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Approach to CLS
Principle support and developing CLS policy
Country policy dialogue and lending:
Promotion of good practice - No conditionality
Procurement and Bank bidding documents:
– IFC and MIGA spear-headed and included some 2 years ago in all
4 CLS
– WB introduced first 2 (CL and FL) and as of May 2007 the other 2
CLS (worker org. and non.-disc) in Standard Bidding Documents
(Particular Conditions)
– Commitment by PW that by next main meeting with TU all CLS
will be introduced in Master Bidding Documents that requires
consent by all MDBs
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Staff are encouraged to discuss CLS in CAS and is
included in the evaluation in CPIA.
Various activities to promote (see below)
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Activities related to the promotion of
good practice
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Capacity Building for clients and staff (tool kit)
Global Child Labor Program (with ILO and
UNICEF)
Gender Integration – Gender as Development
Force
Corporate Social Responsibility (CSR)
Research on labor market policies and institutions
Collaboration with ILO
Structured dialogue with Trade Unions
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Taking stock… achievements to date:
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Inclusion of CLS in corporate procedures
Improved understanding of labor standards and
development.
Raised awareness of child labor as poverty reduction issue
based on empirical evidence and analysis.
Established constructive engagement with ILO and trade
union movement.
Exhibited leadership in global debate on corporate social
responsibility.
Established institutional credibility
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Ongoing Work
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1. Better understand how labor market policies and
institutions contribute to poverty reduction –
Labor Market Research Program
2. Strengthening operational focus of the child
labor program – EFA and SP programs
3. Support dialogue and capacity building with
social partners – MILES agenda.
4. Identify and support appropriate role of private
sector in improving labor standards – Role of
pension funds
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Labor market Institutions and
Outcomes – some research questions
Labor rights are an area of human rights were where link to
development seem particularly strong
Employment is key transition mechanism between growth
and poverty reduction.
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– Is this true if labor is mere factor of production that can be exploited?
– Isn’t collective bargaining the most obvious means of distributing
gains from growth?
– Is support of the development competitive markets (with real freedom
of association not monopolistic and rent-seeking TUs) and national
industrial relation systems, protection of basic rights, etc an effective
channel of growth for the poor?
– Is social partnership still an effective instrument in order to deal with
the challenges and opportunities of globalization?
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Human Rights: Evolving Positions
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New emphasis on understanding the relationship between
human rights and economic development
Legal Opinion (Jan 27, 2006): “The Articles of Agreement
permit, and in some cases require, the Bank to recognize the
human rights dimensions of its development policies and
activities, since it is now evident that human rights are an
intrinsic part of the Bank’s mission.”
Integration of human rights into the Bank’s work will be an
important element in our efforts going forward to scale up the
fight against corruption and promotion of good governance
Three year work program on Legal Empowerment for the
Poor (led by LEG)
New trust fund on Justice and Human Rights under creation
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Democracy
No formal position as Articles of Agreement prevent
the Bank from engaging in the political affairs
But WB promotes many things which are hallmarks
of a small democratic system:
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– participatory processes to involve civil society
– enabling civil society to monitor government actions and
hold them accountable
– transparency of government, and free media
– water user groups
– community-driven development
– etc.
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