News

Circular:  http://www.ituc-csi.org/IMG/pdf/No_11_WB-IMF_circular.pdf

Model letter:  http://www.ituc-csi.org/IMG/pdf/No_11_model.imfwb.0408.pdf

Statement:  http://www.ituc-csi.org/IMG/pdf/No_11_statement.imfwb.0408.pdf



Dear Friends,



The ITUC is pleased to send you the attached statement, prepared jointly with the Global Union Federations and TUAC, for the 2008 “Spring Meetings” of the International Monetary Fund (IMF) and the World Bank.  These meetings will be held in Washingtonon 12-13 April.



The statement expresses concern about the dramatic increase in financial and economic uncertainty since mid-2007. The world is faced with the prospect of increased unemployment and declining living standards and is already experiencing serious impact from sharply higher food and energy prices, particularly on workers in developing countries. The statement supports the policy shift on the part of the Managing Director of the IMFin favour of actions to counter the economic slowdown, but notes examples of country-level policy advice that are not consistent and calls on the Fund to support measures that increase the buying power of low-income workers. The statement also calls on both the World Bank and IMFto follow through on their commitments to reduce the economic policy conditionality on their loans.



The Global Unions statement welcomes the steps that some divisions of the World Bank have taken to ensure that the projects they finance do not violate core labour standards. It calls on the World Bank and regional development banks to take the necessary action for full implementation of the requirements that they adopt, and not to undermine these by, for example, prematurely switching to country procurement systems that do not include labour standards requirements. The statement also contends that the Bank should adopt a coherent approach in support of decent work by ending the promotion of labour market deregulation through the retrograde labour market flexibility index of its annual Doing Businessreport, which the Bank has incorporated into its overall labour markets strategy and uses as a criterion for allocating concessionary assistance.



Finally, the statement calls on the IMF to adopt a series of measures that will help member countries protect their populations against the impact of the global economic slowdown. They include assistance to offset the impact of higher food and fuel prices, an emergency credit facility for countries in financial difficulty, a new international regulatory framework for private equity and hedge funds, and measures to protect against destabilising speculative capital movements.



We ask you to call on your government to endorse the propositions contained in this statement and have provided a model letter that you may find useful to accompany the statement when you send it to the Government.  Please keep us informed of your actions and any response you receive. Thank you for your cooperation. 



Circular:  http://www.ituc-csi.org/IMG/pdf/No_11_WB-IMF_circular.pdf

Model letter:  http://www.ituc-csi.org/IMG/pdf/No_11_model.imfwb.0408.pdf

Statement:  http://www.ituc-csi.org/IMG/pdf/No_11_statement.imfwb.0408.pdf