11 January, 2012IMF calls on governments to accelerate incentives for manufacturing industries, in particular steel, as an effective means to boost the prosperity of economies in the face of uncertain conditions for steelworkers in 2012.
GLOBAL: Many workers in the steel industry face an uncertain year as the economic prospects for the developed world have deteriorated, especially given the financial and fiscal problems in the euro zone and United States. This uncertainty has had a knock on effect in planned projects and investment decisions in many developing countries, meaning the pressure on workers job security has been building. Already many trans-national corporations have announced restructuring, idling or closure of facilities in response to market conditions.
As a consequence most projections for 2012 show an uncertain year for industry and workers.
At the 71st session of the OECD Steel Committee, in Paris, December 5-6, 2011, the IMF called on governments and policy makers to accelerate incentives for manufacturing industries, in particular steel. In a 15 point submission the IMF highlights that manufacturing industries such as steel are highly effective in boosting the prosperity of many economies. The level of per capita consumption of steel is considered to be one of the most important indicators of socio-economic development and living standards in any country.
Training and developing the next generation of steelworkers will be vital even during times of economic crisis. Retention of a highly skilled workforce will also be important to take advantage of an economic upturn. Providing the right conditions and support to industry during the downturn can allow for a re-tooling of the industry and an opportunity to explore new technologies that will modernize the way in which steel is produced. But this can only happen if governments, policy makers and employers demonstrate their confidence in the industry during tough times.
Rob Johnston Executive Director at the IMF commented: "The backbone of many developed economies was laid on the strength and inherent use of steel. We are not asking for a hand out but a signal of intent and a show of confidence in this industries future".
Using the steel industry as a backbone for an economic recovery may sound farfetched but when you consider that steel has a major influence on our lives, the buildings we work in, the homes in which we live, the cars we drive and countless other facets in between, maybe it starts to make sense. Then if you look at our greatest challenges for the next decades, building a greener economy, an alternative energy supply, new and more efficient transportation, and more efficient buildings, you start to realize that steel will have to be part of the solution.
Trade unions are a significant stakeholder in the steel industry and the IMF is continuing to build networks within the industry as part of its strategy to give workers a greater voice.