Global economy faces storm of financial turbulence
The ITUC global poll released today, as world leaders head to St Petersburg for the annual G20 conference, outlines the huge challenges ahead: one in eight people can no longer pay for basic living expenses and over half of those polled can no longer save money.
UNI Global Union General Secretary, Philip Jennings said, “The writing is on the wall for the global economy unless there is a change of direction. The G20 has a big task ahead this week to set a new course for inclusive economic growth. To be relevant to working people the G20 must get back to tackling issues which impact on the real economy. It’s time for resolve and a global agenda for jobs and growth.”
The ITUC public survey in 13 countries includes Belgium, Brazil, Canada, China, France, Germany, India, Japan, Russia, Spain, South Africa, the UK and the USA, representing half the world population.
In emerging economies of the BRICS countries 54 percent of people have directly experienced unemployment or the reduction of working hours and 78 percent report their income has stayed the same or fallen behind the cost of living in the last two years.
Jennings said, “The warning that quantitative easing will be wound down has put emerging markets in the eye of new financial turbulence. Over $12 trillion was printed with a third going to emerging markets. The hot money is now returning. The financial turmoil, particularly in Asia and the Pacific region, indicates severe turbulence ahead for the global economy. This coupled with growing inequality is sapping economic vitality. The G20 must face this challenge and rebalance the global economy so that it is fairer for all. That is the challenge and the L20 and the labour movement are ready to work with the G20 governments to find real solutions.”
Sharan Burrow, ITUC General Secretary, warned about the latest signals from BRICS nations, as they show that we are at best facing an era of prolonged stagnation and an economic leadership crisis that the G20 Leaders must address.
Burrow said “The global economy is no more stable today than it was six years ago. While output has stopped falling in some economies, unemployment continues to rise. A key driver of social and economic progress – hope that the next generation will be better off – has been lost.
“64 percent of people think future generations will be worse off than their own. G20 leaders need to foster youth inclusion in the labour market and increase long-term investment in infrastructure and the green economy to rebuild our economies,”
The Labour 20 will be presenting the findings of the ITUC Global Poll 2013 and their policy recommendations to G20 leaders in a consultation meeting during the summit.
“A G20 jobs action plan that sets national employment targets and raises sustainable aggregate demand and reduces income inequality must be a centrepiece of the G20 response to rising unemployment and inequality,” said John Evans, General Secretary, Trade Union Advisory Committee to the OECD.
Read the L20 Priority Recommendations for the G20 Leaders’ meeting