The Role and Impact of the ESC-Sis in the response to the global financial, economic, and jobs crisis

SUMMARY OF PROCEEDINGS

ILO - AICESIS – Economic and Social Council of Spain

Conference

Madrid (Spain) 3-4 December 2013

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The Role and Impact of the ESC-SIs 1 in the response to the global financial, economic, and jobs crisis

ILO-AICESIS Conference 3-4 December 2013 – Economic and Social Council of Spain (Madrid, Spain)

Tuesday, 3 December

Opening Session

Mr Joaquín NIETO, Director of the ILO Office in Madrid, welcomed all participants and expressed his thanks to the ILO, AICESIS and the Economic and Social Council (ESC) of Spain for organising the conference.

Mr Marcos PEÑA, President of the ESC of Spain, also welcomed the participants, and introduced the conference topic as the relationship between ESC-SIs, participative democracy and the crisis. He asserted that states are no longer polarised between wealthy and poor, north and south. The rate of extreme poverty has declined significantly since 1990, but inequality within and across countries has greatly increased. At the same time, it has been predicted that in the future out of the West-European economies only Germany will be in the top 10, ranking below Indonesia. Simultaneously, the monetary economy has lost control. The value of work has been replaced by financial operations. In addition, corporations have grown to an enormous size. A single company, Royal Dutch Shell, has a turnover that is in excessive of the GDP of 75 countries of the world. Mr PEÑA asserted that political power is a local power, but economic power is global. This has resulted in a mismatch with respect to regulation and governance.

In closing, Mr PEÑA stated that ESC-SIs cannot fix everything, but they can exchange experiences on a shared basis of analysis of the situation. As such, these meetings and conferences are absolutely indispensable.

Ms Sandra POLASKI, Deputy Director-General for Policy, ILO, welcomed all the participants, and expressed her gratitude for the valuable support given by the Spanish ESC. Since 2006, the cooperation between AICESIS and the ILO has rested on the promotion of social dialogue and social justice. Noteworthy achievements included the endorsement of the concept of Decent Work and the Global Jobs Pact by AICESIS, and the signing of a Cooperation Agreement between AICESIS and the ILO, in May 2012. This conference has been a follow-up to that cooperation agreement.

Ms POLASKI noted that the institutions of social dialogue, particularly in Europe, have come under attack. Austerity measures have been implemented, without consultation in some cases, and often without public support. When social consensus and social protection has been weakened, social dialogue is more relevant than ever in creating more creative and sustainable solutions. The ILO

1 Economic and Social Councils, and Similar Institutions

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recognizes the role ESC-SIs can play. To strengthen the capacity of ESC-SIs, the ILO has provided technical support to member states over the years.

As the background paper has showed, ESC-SIs have been successful in formulating a tripartite response: agreements have saved jobs, sustained enterprises and supported households. However, Ms POLASKI asserted that challenges certainly remain; 197 million people are without a job in 2012 and unemployment is rising. In closing, Ms Polaski referred to the newly published ILO guide on national tripartite social dialogue meant to help the tripartite constituents to strengthen their social dialogue framework. .

Mr Evgeny VELIKHOV, President of the AICESIS, expressed his gratitude to the Spanish ESC for organising this conference, and extended his welcome to the participants. He has perceived the background report as a guide for the Russian presidency (2013-2015) outlining experiences and challenges. Mr VELIKHOV was satisfied noting the important role the AICESIS plays at the international level.

Mr VELIKHOV noted that his country is under-going change in their socio-economic model as well. He stated it his duty to be active, and value the importance of grassroots and civil society in promoting change. He is convinced with the help of the ILO and AICESIS, ESC-SIs can move ahead.

KEY NOTE ADDRESSThe Global, Financial, Economic and Jobs Crisis: Time for Action

Moderator Mr Jorge ARAGÓN, Member of the ESC of Spain, First Group, Trade unions organizations, introduced Mr Raymond TORRES, Director, Research Department, Knowledge Resource Centre, ILO Geneva. Mr TORRES stated that the response to the economic and jobs crisis requires coordinated action. Globally, economic growth has slowed down, while more than 32 million jobs have been lost. Recovery of investments has been slow, while volatility has increased. Prevalent long-term unemployment risks social exclusion and an exit from the labour market. The youth, although they are better skilled, are unable to find the jobs they aspire to. The risk of poverty has also increased in advanced economies, particularly in the EU. While the rate of informality has seen some improvement in some countries, overall levels remain very high (more than 40%). And while poverty has declined, the number of vulnerable people has increased. At the same time the middle class in emerging countries have tripled, while in contrast it has shrunk in advanced economies.

Mr TORRES asserted that three policy factors have been at play: Macro-economic policies have not addressed the need for job creation; the design of employment policies has been insufficient; and there has been a lack of coherence at the international level. As a solution more aggregate demand, lower levels of debt, extension of the social protection floor, more access to credit, and more investments and consumption are needed. Currently the ILO and IMF are cooperating in determining which fiscal space exists to aid in job creation.

Mr TORRES underlined the importance of well-designed labour market institutions, to support aggregate demand through automatic stabilisers (such as the European Youth Guarantee). In addition, minimum wages need to be regularly updated, to assist in recovery. Mr TORRES observed that the decentralisation of collective bargaining has also led to a decline in coverage, while also generating high administrative costs for enterprises, and more legal uncertainty. Finally, Mr TORRES stated that the

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international institutions such as G20 and ESC-SIs, have a very important role in addressing the lack in international policy coherence.

DiscussionThe representative from Mali wondered whether cooperation between the IMF, World Bank (WB) and AICESIS is possible. Mr TORRES stressed the role of ESC-SIs with respect to training and sound employment services, as an institution suitable to adjust to change in the economy. Mr TORRES agreed with participants that there is no automatic one-on-one relation with development of skills, growth of SMEs and decent jobs.

WORKING SESSION 1The Role of ESC-SIs in the Response to the Global Financial, Economic and Jobs Crisis: Findings of the ILO-AICESIS Survey.

Mr Youcef GHELLAB, Head of the Social Dialogue and Tripartism Unit, at the GOVERNANCE Department of the ILO, opened his presentation on the background paper by thanking the 47 countries which returned a completed questionnaire, noting the great variety in institutional arrangements of ESC-SIs found across the world. He presented four common experiences. Firstly, ESC-SIs in nine countries have been at the centre of the tripartite response, being involved in designing tripartite social pacts/agreements. Some of these countries did experience a setback in social dialogue in the following years, with a few recovering from this downturn at a later stage. Secondly, several other countries failed in their attempts for a tripartite response. Thirdly, the majority of ESC-SIs were active in consultation and advising the government on reforms and measures, with 79% undertaking specific initiatives with respect to the crisis, and 73% asked by their governments to become involved. Finally, 10% of ESC-SIs remained passive, and played a very limited role during the crisis.

Mr GHELLAB noted that a share of ESC-SIs have also collaborated internationally in response to the crisis, mainly through international bodies such as AICESIS and EESC, but also sometimes bilaterally. 24 ESC-SIs reported they collaborated with ILO field offices, especially in the region of Latin America and Africa. The crisis has also impacted ESC-SIs themselves, leading to institutional weakening of ESC-SIs in several countries (mainly in Europe), while in other regions the role of ESC-SIs has increased. Finally, Mr GHELLAB noted that the monitoring role of ESC-SIs and the measuring of their impact should be tackled.

Discussant Mr Maarten KEUNE, Director of the Amsterdam Institute for Advanced Labour Studies (AIAS), and Professor of Social Security and Labour Relations, asserted that ESC-SIs play a key role in highlighting social issues, especially in countries where significant efforts are made to keep them off the agenda. Nevertheless, ESC-SIs face a number of key issues. During times of crisis governments often feel pressure to act rapidly and unilaterally. In addition, the response to the crisis by the governments has often been at the global level, while ESC-SIs are national. Furthermore, the International Financial Institutions, and financial markets, are not always interested in social issues or social dialogue.

Secondly, Mr KEUNE noted that the report does not resolve how ESC-SIs should determine their success and influence. In addition, he noted that as the international level is so important, it remains

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unspecified what the outcomes of the international collaborations were, or what the purpose was. Subsequently, Mr KEUNE formulated four points for discussion:

1. With an urgency to act, and standard prescribed policy responses, what is the space to build consensus on policies?

2. How should tensions between constituents within a council be addressed?3. Given the data and conclusions of the report, how pro-active have ESC-SIs really been, and how

do we determine this?4. Given the internationalisation of policy-making, to what extent is the national level of ESC-SIs

sufficient? What other forms could it take? Mr KEUNE considers the EESC an interesting example, however European policies have not become much more social.

DiscussionMr Christian WELZ, of EUROFOUND, questioned the space for international actions, as the European Union only has limited political power for non-government actors (e.g. European Parliament). Similarly, Mr KEUNE considered whether the solution is to go through national governments (easier), or to set up a new system. Mr Babes, the president of the Algerian ESC, wondered whether AICESIS, or even the UN System, should be reformed to create a space for social dialogue at supra national level and to improve the role of ESC-SIs. In addition, it was recalled that the ESC-SIs are typically not involved in the dialogue between the government and the WB/IMF

A representative observed that there is also the issue of government control on ESC-SIs. The representative from Guinea noted how the limited institutional power of many ESC-SIs can also explain the noted passivity. Mr GHELLAB added in that respect, that the resources and capacity of ESC-SIs also need to be strengthened.

WORKING SESSION 2Recovering from the Crisis through Social Dialogue - Country Experiences: Africa and Europe

Moderator Ms Stella BIZONGWAKO, President of the ESC of Burundi asked the participants to speak frankly and introduced Mr Alistair SMITH, Executive Director of the National Economic, Development and Labour Council (NEDLAC) of South Africa. Mr SMITH commenced by explaining how, the legal establishment of the NEDLAC was one of the first bills passed by the new democratic government. However, while the NEDLAC has seen significant success, it has historically also seen significant challenges with regard to macro-economic policy, growth and generating consensus. At the start of the global finance and economic crisis, the tripartite group advising the President conveyed a meeting resulting in the stimulus package. However, implementation of agreements has historically been a challenge, and again, while South-Africa’s banking sector proved resilient, the social impact of the crisis has not been mitigated successfully.

Mr SMITH explained that recently there has been a serious questioning of the relevance of ESC-SIs within the NEDLAC, almost on a weekly basis, constituting a sustained ideological attack on the institution and social dialogue in general. The current debate between partners has become very polarised, and within the government there is a lack of policy coherence between government

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institutions. In addition a review of the NEDLAC showed it was the institution receiving the lowest amount of resources. Finally fragmentation of constituents (particularly trade unions, but business organizations as well) poses another challenge.

Mr Mohamed-Séghir BABÈS, Chairman of the National Economic and Social Council of Algeria explained how the council has set up a panel studying six issues related to development submitted to the government. In addition, Algeria will be home to a UN sponsored university studying the fields related to human development.

With respect to the Arab spring, Mr BABÈS explained how the ESC decided to prepare a report on all the issues raised during the protests. In May 2011, the government asked the ESC to survey the demands of the population across the country through regional meetings. The 50 key recommendations formulated accordingly, were accepted in February 2012. Social dialogue as such has thus been expanded to civil dialogue. Mr BABÈS explained how a month before the 50 th independence of Algeria in 2013 recommendations were made to be included in a tripartite roadmap prepared by the government.

Mr Nicolas ADAGBE, President of the ESC of Benin, outlined how the crisis has hit Benin resulting in lower economic growth, remittances and investments. Since 1990, foreign investments alleviated poverty, which were offset by energy shocks in 2006, and 2009, the food crisis, and the global crisis in 2011. Currently the already worrisome employment situation has deteriorated, creating tensions in society.

Mr ADAGBE described how the ESC has participated in the structural reforms undertaken, and organised social dialogue with all agents and social partners. In Benin the ESC-SI, is a constitutional assembly of civil society and creates a favourable consensus for governance, which allowed the ESC-SI to take action through: opinions/recommendations (on the informal sector, youth, industrial policy, labour legislation, etc.), as well as seminars (50 years of independence conference, Millennium Development Goals and sustainable development). Mr ADAGBE noted furthermore that the ESC has facilitated dialogue between unions and government in higher education, to resolve conflict, and assisted in reviving the chamber of commerce.

Mr Niels ACHTERBERG, Senior Political Advisor at ESC (SER) of the Netherlands introduced the two Dutch social dialogue institutions (the ESC and the bipartite labour foundation). Since the Netherlands is deeply integrated with the global economy, the crisis had a direct and serious impact in 2009. However, domestic factors have constrained economic recovery.

Mr ACHTERBERG divided the experience of the Netherlands into four periods: An immediate response resulting in a tripartite agreement (autumn 2008 – spring 2009); subsequent failure, but not a complete standstill, with publishing of advisory reports. A right-wing government led to fewer requests (autumn 2009 – spring 2010); Recovery through a pension reform agreement, but internal struggles within unions (summer 2010 – spring 2012); and finally an influential phase, which started with advices on China and healthcare, but was followed by a springtime social accord (concluded with a new government), and an agreement on energy (summer 2012 – now). While social dialogue has thus went up and down, it has never ceased and there has been some success. However, Mr ACHTERBERG wondered how success for an ESC-SI should be defined: if it issues an advice, if it is adopted, or if it has led to outcomes?

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Mr Dimiter BRANKOV, Member of the Employers’ Group, ESC of Bulgaria, spoke about two distinct ESC-SIs in his country, which are both established through law. The National Council for Tripartite Cooperation (NCTC), established in 1992, deals with living standards, labour relations and social issues. The government has to consult with the Council on all secondary and primary legislation. It is also the place for the conclusion of national agreements. The Economic and Social Council of Bulgaria, established in 2003, is a civil dialogue institution (including consumer groups, representatives from research and education, and cooperatives). The ESC issues reports and opinions on major problems, often on industrial relations, but on other topics as well. Mr BRANKOV explained how in 2010 the NCTC responded through agreeing on 60 anti-crisis measures, which were not equally implemented. Recently social dialogue has been limited to wage pacts, more narrow than employment pacts.

Mr Róbert SZENDREI, President of the Hungarian ESC, explained how five groups are represented on the ESC: workers, NGOs, churches, employers, and science/education. He asserted that Hungary shows how inclusive social dialogue is crucial during times of crisis. The council has consulted on education, wages, taxation and on the pension system. It has also signed a strategic partnership framework with companies in Hungary. So far there has been an increase in the average wage, reduction in unemployment, lower inflation, repayment of IMF loans, reduction of the price of utilities, and an increase of GDP by 1.7% in the last quarter. Finally Mr SZENDREI stated that youth unemployment is a big issue in Europe, with the risk of creating a lost generation.

DiscussionMr WELZ raised the issue of representativeness when involving civil society. Mr SZENDREI replied how the existence of multiple interest groups fits with their multiparty system. Mr SMITH explained how in South-Africa civil society groups participate in a specific development chamber within the NEDLAC. It only becomes an issue when they participate in other areas. Unlike social partners, civil society organisation cannot make concessions during bargaining. In addition, the budget of the development chamber is twice as big, as the civil society organisations do not hold the same amount of funds as the social partners.

The representative from Benin raised the issue of public perception. The ESC of Benin has been very successful.

WORKING SESSION 3Recovering from the Crisis through Social Dialogue – Country Experiences: Asia and Americas

Moderator Ms Marianne NATI-STOFFEL, Secretary-General of the ESC of Luxembourg, noted that so for it has become clear that the variety across ESC-SIs, and the impact of the crisis differs, but that councils have been very active throughout.

As a non-AICESIS member, Ms Akiko TAGUCHI, Ministry of Health, Labour and Welfare of Japan, especially appreciated the opportunity to present the Japanese experience. She explained that the Labour Policy Council (LPC) was established in 1947, has six committees, and discusses and reviews labour policies and consults the minister of Health, Labour and Welfare. Prior to submitting bills to the

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diet, they have to be reviewed by the LPC. The government took several measures in 2009: Strengthening of the safety net, employment creation, expansion of subsidies for enterprises, policies targeting specific sectors (specifically implementing vocational training in IT and caring sector). As an example of its activities, Ms TAGUCHI mentioned the LPC was involved in a meeting on the Employment Insurance Act in March 2009, which resulted in amendments strengthening safety net functions for non-regular workers, enhancing support for the unemployed in finding a new job, increasing incentives to find stable reemployment, and reducing employment insurance premiums.

Ms TAGUCHI closed her presentation by stating that taking in the opinions of non-regular workers remains a challenge for the LPC.

Mr Dae-hwan KIM, President of the Economic and Social Development Commission of the Republic of Korea, recalled the past experience of Korea in social dialogue during a crisis with the 1998 tripartite pact. He noted that in Korea, 160 tripartite agreements have been concluded in the past 15 years. During this crisis the ESDC again responded through a tripartite plus pact, of 66 points outlining job retention, wage freezes, industrial peace and burden-sharing. In return the government extended the social safety net. Since, South-Korea has undergone a strong recovery.

Mr KIM described how the ESDC oversaw the conclusion of a third pact in May 2013. The Jobs Pact to Achieve 70% Employment Rate has the underlying goal of creating decent jobs. The 60 points of the pact provide, amongst others, reform of the wage systems, expanding employment safety nets, skills developments and promotion of SMEs, especially targeting young people, middle-aged and old people and women, as well as decent part-time jobs and social service jobs.

Mr Felix ONG, Director, Industrial Relations, Labour Relations and Workplaces Division, Ministry of Manpower of Singapore, described the collective response of the tripartite partners to the impact of the crisis in 2009. One of the responses is the SPUR programme: Skills Programme for Upgrading and Resilience. The Strong social partners of Singapore are a key competitive advantage. Mr ONG asserted that the speed in creating consensus, and the quality of the measures have been significant factors in creating a sound response to the crisis.

Mr Paulo SIMÃO, Member and CBIC President, Social and Economic Development Council of Brazil, described how as early as October 2007 the CDES studied the problems of US Housing Market could affect Brazil. With the onset of the crisis, the CDES created a special working group with its mission to observe the crisis. The CDES introduced a report on the Growth Prospects of the Brazilian Economy and the International Crisis, and in October 2008, presented measures to the government.

Mr SIMÃO explains the crisis was seen as an opportunity to refocus the policy agenda, by proposing the Agenda for a New Development Cycle in 2010. The government in turn decided to sustain and expand investment in social programmes, and housing policies. Overall, the CDES has been very active in issuing opinions and recommendations.

Ms Mara Berenice RODRIGUEZ, Executive Secretary of the ESC of Honduras, started her presentation by explaining growth has recovered moderately after the political crisis, but unemployment remains a problem. The ESC of Honduras has been established through a presidential decree in 2001, to act as a permanent advisory body to the executive office. The council consists of unions, farmers, agricultural

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workers, employers, the secretary of employment, finances and commerce. Ms RODRIGUEZ explains the notable minimum wage fixing agreement for 2012-13, which set the wages at a competitive level. The government has played a very important role in bringing the social partners together and referred to the national agreement concluded in light of the crisis.

Mr Edin BARRIENTOS, Representative of the cooperatives, ESC of Guatemala, presented the experience of the Guatemalan ESC which was only set up in February 2012. Only 18% of the population has a formal job, and childhood malnutrition reaches 49%. Mr BARRIENTOS explained how the Guatemalan economy depends on agriculture, and specifically the coffee industry, which has proven to be very vulnerable to disease and change in prices. One of the first proposals of the council was on an agricultural law, and to implement an agricultural policy (the Rural Development Plan), to create economic viable activity as well as jobs. Furthermore, SMEs face steep interest rates, and there is uncertainty about the effects of the Structural Adjustment Packages. The country also does not have the funds to cover basic services. This has led the ESC to propose that self-employed people can enter the social benefits system.

Mr BARRIENTOS questioned how Guatemala can learn from advanced economies, if their experiences are not relevant to developing countries.

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Wednesday, 4 December

Wrap-Up of the Discussions of Day 1: Main Lessons from the Survey and Country Experiences

Mr Youcef GHELLAB outlined the main points from the preceding day: Increasing inequalities between and within countries; participative democracy as a response to the challenges caused by the crisis; unilateralism and absence of social dialogue causing public distrust in the government and social unrest; economic and social challenges, including risk of prolonged recession in advanced economies (investment deficit, labour market imbalances) and continued vulnerability in developing countries (informality, increasing inequalities); slow and uneven recovery of economic growth and persistent decent work deficits; ILO-AICESIS Collaboration has been hailed; wide variety of institutional arrangements of ESC-SIs across the world; majority of ESC-SIs are said to have played a role in national crisis responses, with regional differences, although real impact remains to be assessed; crisis has impacted ESC-SIs, especially in Europe.

Identified policy priorities include: Combining macroeconomic policies with jobs; reinforcing labour market institutions (including social dialogue and collective bargaining); promoting policy coherence at the international (include all, World Bank, etc.; across countries) and national level.

Mr GHELLAB formulated the following challenges for ESC-SIs: Implementation; being reactive versus proactive; capacity and institutional independence; urgency to act versus prolonged consultation; reconciling economic requirements with social needs and social equity; tensions within councils (polarisation, fragmentation); responding to increasing internationalisation of the policy process.

WORKING SESSION 4The Role of Social Dialogue in addressing the Global, Financial, Economic and Jobs Crisis: the Views of International/Regional Institutions and International Social Partners

Mr Gilles de ROBIEN, Government representative of France in the ILO Governing Body, as moderator started the session by stating that institutions sometimes not match the speed of events developing in society. The ILO has therefore decided more must be done to identify solutions through social dialogue.

Ms Evelyne PICHOT, of the European Commission, DG Employment, Social Affairs and Inclusion, stated that restoring confidence is crucial to a recovery, and referred to the 2013 Oslo Declaration. She asserted that social dialogue continuous to play a key role in Europe (especially as a crucial component of competitiveness), and is provided for in treaties, and part of the fundament rights. She stated that there has been a focus on the national level, but different levels also need to be considered (sectoral, cross-border and the European level).

Ms PICHOT asserted that strengthening of social dialogue also implies a stronger role of social partners. Social dialogue should not be seen as a luxury but as a necessity. The European Commission supports social dialogue at the multilateral level, at the EU and at the G20 level. It also promotes social dialogue in its relations with other regions, through the association partner agreements with new member states and development cooperation. Ms PICHOT closed off by calling for collaboration to realise more social dialogue.

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Mr Roland SCHNEIDER, Trade Union Advisory Committee to the OECD (TUAC) – International Trade Union Confederation (ITUC), stated social dialogue has not always had the desired outcome. While the European Commission stated that social dialogue is in their genes, it does not seem to be the case at every level, especially so internationally. Mr SCHNEIDER contended that social dialogue is undermined by an asymmetric distribution of power. During this crisis national governments were under pressure from international organisations to implement austerity. It seems austerity and social dialogue are not compatible. Structural reforms are often aimed to weaken social dialogue partners, lowering wages and constraining collective bargaining.

Mr SCHNEIDER furthermore asserted there has been a lot of focus on the process of social dialogue, but not on the outcomes. In some countries, trade unions are expected to act as peacekeepers, but without a justifiable outcome this becomes difficult. The future of social dialogue has weakened. If recovery occurs, social dialogue will not resume to business as usual.

Mr Prakash LOUNGANI, Adviser, Research Department, International Monetary Fund (IMF), commenced by acknowledging that many of the participants view a civilization of the IMF as necessary. In reaction to the background paper he agreed that social dialogue enables more effective policy design, ensures industrial peace, and mitigates adverse effects on groups. The IMF has therefore launched a pilot program with the ILO on social dialogue in Bulgaria, the Dominican Republic and Zambia.

According to Mr LOUNGANI the paper offered a candid summary of the lack of effectiveness by ESC-SIs, with a more marginal role in Europe than elsewhere. Mr LOUNGANI asserted, referring to work from the IMF, that the role of trust among social partners is more crucial in improving outcomes, than the specific regulation of the labour market. He stated that neoliberal solutions are not always needed.

With respect to the comments of Mr SCHNEIDER, Mr LOUNGANI did not want to deny that the IMF and similar institutions, played a role in pushing for austerity. Nevertheless, in many cases countries themselves want austerity, such as in the United Kingdom. However, it is indeed necessary to look at the outcomes of social dialogue. Mr LOUNGANI stated there is unfortunately still much research needed on what social dialogue delivers.

Mr LOUNGANI recognized social dialogue is sometimes shut out if there is a pressure to act rapidly. In addition, unemployment, and the important role of financial markets, need to be addressed. Furthermore, there exists indeed a tension between international activity and the national character of ESC-SIs. Mr LOUNGANI suggested more could be done to make AICESIS more effective in reaching out to the IMF and World Bank.

Mr Amadou Lamine SY, Union of African Economic and Social Councils (UCESA), explained how the crisis has affected Africa by reducing the price of commodities and investments. International assistance is not enough to alleviate poverty, and there is a need to focus on productivity and growth. In addition, the past economic growth has not always led to an equal distribution of wealth and employment. This might only worsen and the recent experiences of the Arab Spring show what a lack of Decent Work might lead to.

Mr SY asserted that the African ESC-SIs play an important role in this global crisis, in ensuring every part of society is taken into consideration when designing development policies, and it results in employment. Our proposals are mainly consultative, but we can influence our governments. In his

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presentation Mr SY notes many examples of how ESC-SIs have been active in their countries. The ESC-SIs of Africa are attempting to increase their visibility, have open meetings and welcome leaders from communities. The communication strategy plan developed by the ESC of Mali is one example.

Mr Juan MENDOZA CASTRO, Worker’s representative (Spanish General Union of Workers) – European Economic and Social Committee (EESC), introduced the EESC as having grown out of the European Common Market. The European Commission has to submit their initiatives for the EESC to give their non-binding opinion. The EESC is represented by workers, employers and civil society. The EESC seeks balance, while mediating tensions, on a wide range of topics, such as tax havens, European integration, and organized crime.

Looking at Europe, Mr MENDOZA CASTRO stated that 11% of the active population is without a job as a result of austerity. The Memoranda of Understandings signed, certainly had to be introduced, but the attack on unions and collective bargaining is an ideological approach, and is not related to the problem of reducing deficits. In addition, he wondered whether austerity always has to be implemented so quickly, whether healthcare and salaries had to be cut, and social dialogue be threatened.

Mr MENDOZA CASTRO, referring to Mr LOUNGANI, stated that while the governments have been elected, in Spain politicians never do what they promised. Social dialogue is important, and the advancements in the European Union have been dependent on it, and the future of democracy depends on it. Mr MENDOZA CASTRO states that citizens turn their back on institution that do not represent their needs. More must be done if the project of European citizenship is to be continued, and social conflict being exploited by xenophobic and fascist ideologies is avoided.

Mr Javier FERRER, Vice President of the Spanish Confederation of Employers’ Organizations (CEOE) – International Organisation of Employers (IOE), started his presentation by noting that there is no unique way of conducting social dialogue. Social dialogue should be flexible and a means to reach goals: competitiveness, stability, social welfare, or economic recovery. However, the democratically elected government cannot be substituted and social dialogue can render necessary actions more difficult.

Mr FERRER stated that not everything must be regulated, but instead compliance should be ensured. The ILO should produce the tools to come out of the crisis and set conditions for job creation. The IOE has sought to increase their relationships with the ITUC, and improve the situation in Europe. It is also important to attend the meetings of the G20.

Mr FERRER noted that in Spain, social dialogue is facing difficulty, but there has been success through shared analyses, 2011 pension reforms, and a 2012 bipartite agreement on collective bargaining, which led to more competitive wages. However, Mr FERRER noted that the pension system has to be reformed again.

DiscussionThe representative from the ESC of Mali was pleased with the presence of the IMF, as it presented a window of opportunity. It was deemed also important to seek contact with the World Bank. The representative from Guinea wondered whether AICESIS and the IMF/WB could establish relations if it would lead to practical results.

The representative from Benin questioned how ESC-SIs can contribute to holding the creators of the crisis responsible.

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CLOSING SESSION

How to Strengthen the Role of ESC-Sis

in the Response to the Global, Financial, Economic and Jobs Crisis?

Mr Maarten KEUNE introduced some points for reflection on the (sometimes weaker) role of ESC-SIs. ESC-SIs change policy approaches, avoid unilateral top-down policies, give a voice to the weak, and look for better balanced socio-economic models. ESC-SIs offer information and expertise as they represent the real economy, they provide legitimacy, consensus and political stability, they offer different solutions and a broader set of options, and they offer the capacity to implement policies (.e.g. through collective agreements). The strength of ESC-SIs seems to depend on their legal embedding, the orientation of the government, their past achievements, and the strength of their constituents (something which has not been discussed as much during this conference).

Mr KEUNE asserted that many ESC-SIs have been active, but many have also been ignored. Quite a lot of countries operate on macroeconomic indicators and too few on social issues. In terms of actions, Mr KEUNE proposed that first of all, the relevance of ESC-SIs has to be clearly shown through their actions. Secondly, constituents need to be strengthened. Thirdly, ESC-SIs should provide sound alternative development models (a battle of ideas). Finally, as international organisations lack a social dimension, ESC-SIs and AICESIS should strive to engage these institutions, similarly to what the ILO has been doing. At the same time ESC-SIs should interact more with finance ministers, as these typically have the most power at the national level, and also act as a gateway to the international level. On the European level, ESC-SIs should also ensure the European Commission lives up to their promises of social dialogue.

Mr Iosif DISKIN, Head of Commission, Civic Chamber of Russia, agreed on the importance of a legal embedding, especially when dealing with a lack of political will. The Civic Chamber has the legal right to give an opinion on bills submitted to parliament. In addition, the Civic Chamber has worked ceaselessly to facilitate debates across the nation on all social issues. During the crisis, the chamber has become increasingly involved. It prepared a draft law on determining the competences of civil society through social dialogue in social matters and public agencies. President Putin will submit this unprecedented law to the parliament. The regional ESC-SIs have also been restructured, with more competencies and powers, due to actions by the president. The Chamber is also responsible for reporting on the implementation of Putin’s Strategic Decrees. As a result trust in the institution is comparatively high, although lower than compared with other countries.

Ms Josephine J. PROVENCE, General Secretary, ESC of Curacao, stated that her ESC is similar to that of the Netherlands, and financed by the government. Unfortunately, it does not always reach its goals. The ESC focuses on legislative consultations. She referred to a 2012 AICESIS newsletter, which outlined the history of the ESC. Ms PROVENCE explained currently a discussion takes place within her country on how social dialogue should be conducted, and there is a call for more institutionalized social dialogue as part of a UNDP nation building project. Ms PROVENCE asserted that ESC-SIs are not the only form of institutionalized

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social dialogue, and its shape can differ per country. It should also not be seen as a goal by itself. In general ESC-SIs should rethink their composition, themes, methodology, internal operations, financing and political autonomy. Ms PROVENCE noted the vibrant discussions within their new youth chapter as an inspiring example.

Mr Julius M. MUIA, Secretary, National Economic and Social Council of Kenya, commenced by explaining that the mandate of the Kenyan ESC, is not to clear bills. Instead, the ESC advices on social, economic, political, and scientific issues, of which the ‘Kenya 2030’ programme is an example.

Mr MUIA asserted that to strengthen ESC-SIs, their visibility has to be increased. This can be done through collaboration, increasing the number of ESC-SIs, and encouraging flexible governing laws. Secondly, the role of ESC-SIs within the social dialogue process has to be defined. They should act as platforms for information exchange, as centres for excellence, and to share best practices. Thirdly, ESC-SIs should refocus their efforts on how to develop the economy (such as how to ease credit access for SMEs).

Mr Christian WELZ, Research Manager, European Foundation for the Improvement of Living and Working Conditions, argued that the issues of transparency, accountability and legitimacy need to be addressed. Strong constituents strengthen ESC-SIs, and members need to have the capacity to deliver and negotiate agreements. There should also be horizontal subsidiarity, meaning that social partners at the EU and the national level gain competencies alongside regular EU institutions or governments. Across all levels constituents must be strengthened.

With respect to the challenges, Mr WELZ asserted that the decline in coverage rate of collective agreements is worrisome and the austerity measures have reconfigured the social dialogue landscape. During the crisis it has become clear that countries with social dialogue institutions fared better in mitigating the negative impact of the crisis. However, they still faced difficulty. In addition, it is unclear whether austerity and social dialogue are compatible.

Mr Moussa OUMAROU, Director of the Governance and Tripartism Department, ILO closed the session and the conference by thanking everybody for their participation and great input during the discussions.Mr OUMAROU asserted that it has become clear what role ESC-SIs can play as well as the challenges they face. Many speakers have suggested innovative plans to improve the role of ESC-SIs. These suggestions and proposals have been taken down by the ILO and AICESIS, and others, and will be borne in mind when we prepare our programs in the future.

Mr Patrick VENTURINI, General Secretary of AICESIS, stated there is a clear desire and need to do more. The conference has relaunched the debate on the role of ESC-SIs and has highlighted the desire to seek collaboration with the IMF and other institutions. Mr VENTURINI also asserted that the lack of collaboration with ILO Field Offices needs to be addressed. He reminded participants that AICESIS is relatively young, and its members varied. As such, progress will be a long-term effort.

Mr VENTURINI suggested AICESIS could go beyond more exchange of experiences to address the tension between the national and international levels. He also asserted the need to collaborate with institutions like UCESA and invited non-AICESIS members to consider joining. In closing, Mr VENTURINI thanked all participants for their hard work and participation.

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