Adopt Multilateral Action to Achieve Sustainable Development, Economic Growth, ILO Tells W’ Bank, IMF
* Harps on importance of social justice
Oluchi Chibuzor
The Director-General of the International Labour Organisation (ILO), Gilbert Houngbo has called for coherent multilateral action to achieve sustainable development and economic growth. Houngbo, highlighted the growing inequality worldwide and the need for social justice as envisaged by the ILO’s proposed Global Coalition for Social Justice.
He stated this in a statement delivered to the World Bank and International Monetary Fund Spring Meetings in Washington recently.
He highlighted the need to overcome challenges facing economies and societies across the globe.
According to him, social justice makes societies and economies function more cohesively and productively by reducing poverty and hunger, inequalities, and social tensions.
He also said that, “Given its central importance to inclusive and sustainable socio-economic development, social justice should be seen as one of the cornerstones of the renewed multilateralism that is required to overcome current challenges.”
The statements by Houngbo, to the IMF’s International Monetary and Financial Committee and the World Bank’s Development Committee, outlined the gloomy global economic, social and environmental outlook.
It also emphasisied the impact of the cost-of-living crisis, the need for a just transition to greener economies, and called for more international support for achieving universal social protection.
Houngbo, called for a revival of development finance, combined with a reshaping of business incentive structures to encourage long-term investments in the real economy.
Describing universal social protection as a, “human right and a state responsibility”, he called on the international community to “support existing or new financing strategies which can mobilize additional resources, support better use of existing resources and enhance coordination between multiple domestic and international sources of finance.”
According to him, such actions would be aligned with the priorities of the UN Global Accelerator on Jobs and Social Protection for Just Transitions , protecting the chronically poor and those who are most affected by multiple and overlapping crises.
In addition, the Development Committee statement called on the World Bank Group to “position itself firmly” as a key partner of the Global Accelerator and for “stronger support for institutional deepening in other areas that affect inclusion and resilience, notably the capacity of countries to implement labour standards.”
Referencing the findings of the ILO World Employment and Social Outlook: Trends 2023 report, the statements pointed to the global economic slowdown, which was likely to force more workers to accept lower quality, poorly paid jobs.
According to him, women and young people are faring “significantly worse” in labour markets and the labour participation rate of women is under 48 percent compared to the male rate of 72 per cent.
“The unemployment rate of young people is three times that of adults, with more than one in five not in employment, education or training (NEET).
“The statements highlighted the gap between wage growth and labour productivity growth, and the need for real wages to increase to catch up with inflation and become aligned with productivity growth.
“Income inequality and poverty will rise if the purchasing power of the lowest paid is not maintained. In addition, a much-needed post pandemic recovery could be put at risk.
“This could fuel further social unrest across the world and undermine the goal of achieving prosperity and peace for all. There is an urgent need to apply well-designed policy measures to help maintain the purchasing power and living standards of wage workers and their families,” the statements said.
