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Leaders from the Global Union Federations (GUFs) and senior officers from the Asian Development Bank (ADB) participated in a panel discussion on the theme “ADB’s Inclusive Growth: Pro-Poor or Anti-Poor?” at the 45th Annual ADB Civil Society Program on 3rd May 2012 in Manila, Philippines.



“An Increase in Income Inequality has pushed 250 million people in Asia below the poverty line during the last decade,” said Mr Zhuang Juzhong, Deputy Chief Economist of ADB. Mr Zhuang said that ADB projects over the last 30 years have indeed helped many people to come out of poverty, reducing the number of people below poverty line.



The panel discussion was attended by Mr Zhuang Juzhong, Mr Yutaka Seki, President of Finance in UNI Asia & Pacific, Ms Annie Enriquez Geron, Vice President of Public Services International (PSI), Mr Ariel Castro, Workers Specialist in India with International Labour Organisation, and Mr Hemantha Withanage, Executive Director of Centre for Environmental Justice in Sri Lanka. The panel was moderated by Mr Mahendra Sharma, Regional Secretary of International Transport Workers Federation.



Mr Yutaka Seki urged ADB to respect the ILO Core Labour Standards and to work with unions in providing decent work and bargaining rights as a better alternative to arrest income inequality in the region. ADB’s policy documents currently state that ADB will respect ILO Core Labour Standards but this has not been honored and practiced in reality in projects funded and supported in the member countries.



Mr Seki said that it is equally important to promote responsible and ethical financial systems in the region to offer affordable and accessible banking services to everyone regardless of income or gender. This is a prerequisite for active participation in the economy and inclusive growth.



The provision of basic water and power utilities has also been hit by ADB’s policy directives and privatization initiatives in Developing Member Countries (DMCs). Ms Geron said that water and electricity previously provided to the poor at affordable rates have now increased three-folds as a result of privatization in public service sectors, depriving marginalized people of essential water and power utilities in addition to escalating costs of living from increase in production line costs pushing them in to poverty.



Ms Geron added that the privatization of public utilities had displaced many jobs and new private managements often provide precarious work. Since ADB supports and funds the privatization of public utilities, unions are seeking fair compensation for retrenched workers affected by these projects.



ADB currently maintains an Accountability Mechanism on its website to address complaints and grievances of indigenous people whose livelihoods and environments are affected by ADB-funded development projects. Mr Hemantha pointed out that many of ADB’s victims suffer from poverty and are unable to afford electricity or access to the internet. Language is also a barrier as many do not understand the website‘s English contents. As a result, external agencies often have to step in to educate and assist in filing complaints.



Global unions are lobbying ADB to enforce its policy recommendations and persuade DMC's and partner organization to comply with international labour standards. Civil society organisations and trade unions both agree that it is necessary for ADB to respect labour rights in order to arrest the increase in income inequality.



For Yutaka Seki's presentation at the panel discussion, please refer to the Reference Files link at the top.