LABOUR: Globalisation – Neither Cure Nor Cause of All Social Ills

By Gustavo Capdevila Reprint | | Print |

Gustavo Capdevila

GENEVA, Jun 12 2002 (IPS) - Globalisation, and its consequences for the world’s labour panorama in particular, came off badly in the debates begun this week at the conference of the International Labour Organisation (ILO).

The most caustic attacks came from the International Labour Conference’s guest of honour, Malaysia’s Prime Minister Mahathir Mohamad, who expressed serious doubts about the ability of globalisation to cure the world’s social ills.

However, the Malaysian leader said he is not opposed to the phenomenon in itself, because it is “a great idea”, which in appropriate form, could constitute the means to “correct the injustices of society around the world.”

The ILO itself has taken a close look at globalisation in studying the causes of informal work, one of the main issues at the conference, which is under way in Geneva through Jun 20.

The economic globalisation process is often cited as one of the leading causes of the proliferation of the informal economy, says the ILO.

A report by this tripartite organisation – made up of delegates from governments, unions and employers – states that a negative ruling on globalisation could be “deceptive” and would be of little use in determining what would be the best policies.

The informal economy has grown rapidly around the world, even in industrialised countries. Most of the new employment created in the past few years has been in the informal sector, particularly in developing and transition economies.

The ILO maintains that in comparison with formal, recognised, protected and safe employment, work in the informal economy cannot be described as “decent”, a term that defines the organisation’s objectives for universal employment.

There is a relationship between the informal economy and the globalisation process, arising from the fact that unstructured economic activities prosper in developing countries that have proved unable to integrate themselves into the global economy.

The ILO report outlines the factors that prevent these countries from benefiting from trade, investment and technology.

The cause of this blockage, more than globalisation itself, is the developing countries’ inability to participate in the globalisation processes, whether due to their own domestic policies or to international barriers, states the study by this specialised agency of the United Nations.

ILO director-general Juan Somavía agreed with the notion that one should not look to globalisation to find the origins of the problems that lead to informal employment.

Nevertheless, stated Somavía in a conversation with IPS, globalisation has not been able to resolve those problems.

The international official told the ministers participating in the International Labour Conference that the globalisation’s worst failing may be that it has not produced enough jobs for all who seek them, or in the places where they are most needed.

The ranks of the unemployed worldwide have swelled to one billion men and women. This figure includes impoverished workers and those who are underemployed.

As a direct consequence, there are 120 million job-seekers and their families who are forced to emigrate in hopes of finding some sort of employment elsewhere.

In this respect, Mahathir asserted that globalisation “must benefit everyone.”

If capital is allowed to freely cross borders, then workers should also have that right, stated the Malaysian Premier.

The ILO noted in its report that anti-globalisation groups maintain that the phenomenon tends to favour capital, particularly the companies that can move quickly and easily across borders.

In contrast, globalisation is disadvantageous to workers, principally those with less specialisation, for whom emigration is difficult or impossible.

Globalisation must be regulated to prevent monopolies, oligopolies and the exploitation of the poor by the rich, Mahathir stated.

The ILO report agrees on this point in that governmental policies will be decisive in determining whether globalisation leads to decent work, or towards the informal economy.

Somavía pointed out that informal workers are left completely unprotected because they do not enjoy labour rights and exist “on the dark side of reality.”

A tripartite committee is discussing the guidelines that the ILO conference will present next week to the organisation’s secretariat for confronting the growing problem of informal workers.