Read this article in:
26 September, 2000The dictatorship of the economy has become a threat to democracy and peace, says the IMF World Auto Council.
GERMANY: In a resolution on worldwide social justice and democratic rights for workers, passed unanimously today at its meeting in Wolfsburg, Germany, the IMF World Auto Council decisively rejects the way in which international financial institutions (IFIs), such as the International Monetary Fund, are shaping globalisation.
The deregulation of markets for goods, services and capital together with the growing concentration of economic power have led to the dominance of competition and continuously rising profits over the principles of social justice and environmental responsibility. This threatens to make impossible any attempts to shape and control the development of the economy and living and working conditions. The dictatorship of the economy has become a threat to democracy and peace.
To counteract this, the IMF World Auto Council demands that social protection clauses be built into the framework of rules that govern world trade. The rules and policies of the IFIs must promote sustainable economic development. Human and workers' rights and the protection of the environment are a precondition for this.
Consequently, the IMF World Auto Council demands that the Prague meeting of the International Monetary Fund and the World Bank take the following measures:
- The conditions attached to aid and structural adjustment programmes of both institutions must lead to the recognition by the countries concerned of freedom of association, free trade unions and freely negotiated collective bargaining agreements and of workers rights in general. The relevant ILO Conventions (e.g. the prohibition of child and slave labour as well as discrimination) are the minimum standards in this respect. The IFIs must implement the ILO Conventions in their rules and policies in cooperation and consultation with the ILO.
- Structural adjustment programmes are to be tied to conditions that will ensure respect for fundamental rights to education and housing.
- The IFIs must permit targeted protective measures which are designed to permit the development of markets under fair terms of trade.
- The structural adjustment programmes of the IFIs must not be allowed to create or increase poverty, lack of housing or hunger.
- The IFIs must promote only those programmes and measures which respect the principle of sustainability and which avoid damaging the environment.
The deregulation of markets for goods, services and capital together with the growing concentration of economic power have led to the dominance of competition and continuously rising profits over the principles of social justice and environmental responsibility. This threatens to make impossible any attempts to shape and control the development of the economy and living and working conditions. The dictatorship of the economy has become a threat to democracy and peace.
To counteract this, the IMF World Auto Council demands that social protection clauses be built into the framework of rules that govern world trade. The rules and policies of the IFIs must promote sustainable economic development. Human and workers' rights and the protection of the environment are a precondition for this.
Consequently, the IMF World Auto Council demands that the Prague meeting of the International Monetary Fund and the World Bank take the following measures:
- The conditions attached to aid and structural adjustment programmes of both institutions must lead to the recognition by the countries concerned of freedom of association, free trade unions and freely negotiated collective bargaining agreements and of workers rights in general. The relevant ILO Conventions (e.g. the prohibition of child and slave labour as well as discrimination) are the minimum standards in this respect. The IFIs must implement the ILO Conventions in their rules and policies in cooperation and consultation with the ILO.
- Structural adjustment programmes are to be tied to conditions that will ensure respect for fundamental rights to education and housing.
- The IFIs must permit targeted protective measures which are designed to permit the development of markets under fair terms of trade.
- The structural adjustment programmes of the IFIs must not be allowed to create or increase poverty, lack of housing or hunger.
- The IFIs must promote only those programmes and measures which respect the principle of sustainability and which avoid damaging the environment.