The World Bank The World Bank & Core Labor Standards, Human Rights, and Democracy Robert Holzmann World Bank Spring Meeting Seminars April 12, 2007

The World Bank 2 Enhancing Job Opportunities in ECA 2 Core Labor Standards ILO Declaration in 1998 identified these 4 principles, applicable to all countries at every level of development : forced labor –Prohibition of forced labor (ILO Conventions 29 and 105) child labor –Elimination of child labor (ILO Conventions 138 and 182) –Non-discrimination –Non-discrimination in employment (ILO Conventions 100 and 111) –Freedom of associationcollective bargaining –Freedom of association and the right to collective bargaining (ILO Convention No. 87 and No. 98) Not intended to undermine comparative advantage of low-wage countries Broad international support for ILO Declaration

The World Bank 3 Enhancing Job Opportunities in ECA 3 CLS and the mission of the WB Persistence of child labor impedes achievement of MDGs on poverty and education. Discrimination leads to misallocation of human resources, reducing economic growth. Trade unions and employer organizations are important members of civil society, as well as economic agents with key roles in adjusting to shocks, allocating resources, implementing (or blocking) reform.

The World Bank 4 Enhancing Job Opportunities in ECA 4 Approach to CLS Principle support and developing CLS policy Country policy dialogue and lending: Promotion of good practice - No conditionality Procurement and Bank bidding documents: –IFC and MIGA spear-headed and included some 2 years ago in all 4 CLS –WB introduced first 2 (CL and FL) and as of May 2007 the other 2 CLS (worker org. and non.-disc) in Standard Bidding Documents (Particular Conditions) –Commitment by PW that by next main meeting with TU all CLS will be introduced in Master Bidding Documents that requires consent by all MDBs Staff are encouraged to discuss CLS in CAS and is included in the evaluation in CPIA. Various activities to promote (see below)

The World Bank 5 Enhancing Job Opportunities in ECA 5 Activities related to the promotion of good practice Capacity Building for clients and staff (tool kit) Global Child Labor Program (with ILO and UNICEF) Gender Integration – Gender as Development Force Corporate Social Responsibility (CSR) Research on labor market policies and institutions Collaboration with ILO Structured dialogue with Trade Unions

The World Bank 6 Enhancing Job Opportunities in ECA 6 Taking stock… achievements to date: Inclusion of CLS in corporate procedures Improved understanding of labor standards and development. Raised awareness of child labor as poverty reduction issue based on empirical evidence and analysis. Established constructive engagement with ILO and trade union movement. Exhibited leadership in global debate on corporate social responsibility. Established institutional credibility

The World Bank 7 Enhancing Job Opportunities in ECA 7 Ongoing Work 1.Better understand how labor market policies and institutions contribute to poverty reduction – Labor Market Research Program 2.Strengthening operational focus of the child labor program – EFA and SP programs 3.Support dialogue and capacity building with social partners – MILES agenda. 4.Identify and support appropriate role of private sector in improving labor standards – Role of pension funds

The World Bank 8 Enhancing Job Opportunities in ECA 8 Labor market Institutions and Outcomes – some research questions Labor rights are an area of human rights were where link to development seem particularly strong Employment is key transition mechanism between growth and poverty reduction. –Is this true if labor is mere factor of production that can be exploited? –Isn’t collective bargaining the most obvious means of distributing gains from growth? –Is support of the development competitive markets (with real freedom of association not monopolistic and rent-seeking TUs) and national industrial relation systems, protection of basic rights, etc an effective channel of growth for the poor? –Is social partnership still an effective instrument in order to deal with the challenges and opportunities of globalization?

The World Bank 9 Enhancing Job Opportunities in ECA 9 Human Rights: Evolving Positions New emphasis on understanding the relationship between human rights and economic development Legal Opinion (Jan 27, 2006): “The Articles of Agreement permit, and in some cases require, the Bank to recognize the human rights dimensions of its development policies and activities, since it is now evident that human rights are an intrinsic part of the Bank’s mission.” Integration of human rights into the Bank’s work will be an important element in our efforts going forward to scale up the fight against corruption and promotion of good governance Three year work program on Legal Empowerment for the Poor (led by LEG) New trust fund on Justice and Human Rights under creation

The World Bank 10 Enhancing Job Opportunities in ECA 10 Democracy No formal position as Articles of Agreement prevent the Bank from engaging in the political affairs But WB promotes many things which are hallmarks of a small democratic system: –participatory processes to involve civil society –enabling civil society to monitor government actions and hold them accountable –transparency of government, and free media –water user groups –community-driven development –etc.