The International Trade Union Confederation (ITUC), has called on the International Monetary Fund (IMF) and the World Bank to embark on major democratic reforms of the international financial architecture to better the living condition of workers and global citizens at large. .
According to ITUC, the World Bank and International Monetary Fund (IMF) will hold their spring meetings and the decisions made there will affect the future of both working people and democracy around the world.
ITUC General Secretary, Luc Triangle, in his call for action statement said: “It’s time for change. Instead of pursuing deregulation, it’s time to expand decent work. Instead of taking money siphoning money away from social programs to pay crippling debts, it’s time to strengthen the social safety net.
And instead of using new technologies as tools to undermine workers, they must offer new paths to transition to a future of sustainable, equitable growth.
“Our institutions at all levels were established to secure a prosperous and more peaceful future that protects people and this planet we call home. Your signature will send a message and remind the World Bank and IMF of that role and responsibility when they meet later this month.”
Trade unions across the world through ITUC platform are focusing on the fight For Democracy in societies.
The catch is that democracy means much more than free-and-fair elections. Therefore ITUC’s For Democracy campaign is pushing for the implementation of the New Social Contract which will guarantee workers climate-friendly, decent jobs, rights for all, minimum living wages, universal social protection, equality and inclusion.
The global trade union body news letter stated that in support of the drive to rebuild democracy for the benefit of all, working people are signing this global petition demanding that International Financial Institutions (IFIs) change course and support governments to deliver a New Social Contract to workers.
“The IFIs can also play a constructive role in the fight For Democracy at a global level by prioritising human rights, a just global financial system centred on a New Social Contract, equitable cooperation among nations and peaceful common security,” the statement added.
Furthermore, ITUC General Secretary, Luc Triangle also said: “Democracy starts in the workplace with fundamental trade union rights and continues in our societies with respect for basic freedoms, but these principles can be undermined at the highest levels of international governance when austerity and neoliberal policy dominate.
“The IFIs must also introduce democratic reforms to their structures to effectively address the growing crises of countries struggling under unpayable debts, the climate emergency and a precarious global economy that is rigged to benefit the rich.
“Despite talk within the IFI of new directions and new approaches, we see frustratingly similar results. In practice, their policy advice frequently undermines decent work, social protection, good governance and democracy.”
The global unions’ call for reform of the IFIs, also demanded “a shift away from policies that undermine job quality to address major transformations such as climate change and the digital transition. Without reform, the statement says, “these transformations will further divide the world between those who benefit from new technologies and greater productivity and those that see their livelihoods destroyed with no replacement nor hope on the horizon.
“Resolution of, and relief from, the worsening debt crisis. Workers continue to be harmed by the international financial system’s failure to resolve the debt crisis, as countries must submit to austerity measures, including social spending cuts and privatisation in exchange for bailout loans.”
The statement describes existing policy as a “punitive approach that risks a lost decade, jeopardising the Sustainable Development Goals and democratic legitimacy of development finance.”
ITUC went on to state that the upcoming IDA21 replenishment and the review of the International Finance Corporation’s sustainability framework offers the World Bank a chance to promote decent work, uphold and implement labour standards and provide vital concessional financing.
Luc Triangle also added: “In a time of underinvestment, conflict and rising anti-democratic extremism, we urge the IFIs to genuinely engage with the global labour movement as the world’s largest democratic force, and support workers’ call for a New Social Contract.
“As leaders in the international financial system with resources and a global development mandate, the IMF and the World Bank must change to fulfil their commitment to equitable and sustainable development through decent work.”
