Reducing poverty tops agenda in talks between IMF and labor unions

• Author: Sofia Soromenho-Ramos
• Position: IMF External Relations Department
• Pages: 319

Page 319

In opening remarks, IMF Managing Director Rodrigo de Rato welcomed the continued dialogue with labor unions, noting that in many countries organized labor is an important, and sometimes indispensable, instrument for social change. In a world characterized by ongoing and fast-moving transformation, countries must adapt, he said, and this often requires dealing with such challenges as aging populations, the need to modernize labor markets, and the liberalization of trading systems. Participation of civil society-including labor unions and employers' organizations-in these economic and social debates can strengthen the consensus on what often constitutes difficult policy choices. And strong global expansions such as the current one, de Rato observed, provide a timely opportunity to undertake reforms, since changes in behavior are easier to bring about during economic recovery.

The trade union delegation-led by Guy Ryder, General Secretary of the International Confederation of Free Trade Unions (ICFTU), and Willy Thys, General Secretary of the World Confederation of Labor, with representatives from the Global Union Federations and the OECD's Trade Union Advisory Committee-pointed out that, despite the IMF's upbeat assessment of the global economy, most developing countries will miss the United Nations Millennium Development Goals by a wide margin.

The labor union leaders also stressed that poverty reduction depends on implementing the right policies. In their view, the Bretton Woods institutions' emphasis on

If progress toward these goals is to be accelerated, the international community must take more ambitious action on debt relief and consider the various initiatives being...