1. Global Financial And Economic Crisis: The Role of International Monetary Fund, Government Measures, Trade Union Responses Enisa Salimović, ITUC/PERC Sarajevo Office

2. IMF – Fast Facts: Membership: 186 countries Headquarters: Washington, DC Executive Board: 24 directors Biggest borrowers: Hungary, Mexico, Ukraine

3. Original Aims of IMF: Promoting international monetary cooperation; Facilitating the expansion and balanced growth of international trade; Promoting exchange stability; Assisting in the establishment of a multilateral system of payments; Promoting employment and economic growth Making resources available to members experiencing balance of payments difficulties

4. Surveillance of Economies: To maintain stability and prevent crises in international monetary system, the IMF reviews national, regional and global economic and financial developments through a formal system known as Surveillance; The IMF provides advice to its member countries – encouraging them to adopt policies that foster economic stability; The IMF reduces their vulnerability to economic and financial crises.

5. How Trade Unions see the IMF: Regarding its activities in SEE to date, the IMF is recognized as an IFI which sets loan requirements which mainly result in reduced workers’ rights and an increased poverty in the countries of IMF intervention This was recognized within ITUC-ISCOS Project with Trade Unions “The Role of International Financial Institutions in SEE Countries”

6. G- 20 Set IMF Task To analyze causes and consequences of the crisis To propose a policy to combat the crisis To boost global liquidity through more flexible loan terms and conditions To facilitate monetary and fiscal incentives

7. Consequences of Global Financial And Economic Crisis: Significant increase of unemployment rate and poverty Unstable national banking systems Expansion of West European bank loans to Central and East Europe Weaker domestic currencies Financial deficit Heavy external debt burden Real production and export decline Corruption Work force rushes into informal sector – gray economy

8. The IMF Changes The IMF and the World Bank recognized the need for an overhaul and that their presence in the countries led to general dissatisfaction and increased poverty The IMF is aware of employment strategies They are becoming more flexible Trade Unions address the IMF ever more often – in regard to unpopular measures of their governments when they conclude arrangements with the IMF

9. IMF’s New Way Of Thinking: More flexibility, less conditions; Emphasis on social welfare; Respect for ILO’s core standards; Assistance to the poorest in the world; Stand-by arrangements with states, and Will to talk openly with social partners/trade unions and employers

10. Through stand-by arrangements in SEE countries, the IMF aims at: Avoiding currency and banking crisis Ensuring responsible fiscal policy Improving structural reforms for permanent economic growth

11. Measures of governments which conclude stand-by arrangements with the IMF Governments usually create economic difficulties in their countries by reason of their inability, and huge public expenditures in particular; They negotiate and sign agreements with the IMF, without releasing the content of arrangements to social partners; They introduce new – unpopular measures that mainly workers bear the brunt of

12. Measures of SEE governments – abuse of agreement concluded with the World Bank or the IMF Measures of SEE governments – abuse of the agreements concluded with the World Bank or the IMF; Measures are redesigned and new legislation is proposed without prior social dialogue; Fiscal novelties and reforms are introduced without any consultations with trade unions

13. Trade Union Responses At National Level They want to be informed about the content of negotiations and stand-by arrangements with the IMF They should be consulted also on measures that governments plan to implement They do not want all ill-effects to come down to reduced workers’ rights They are making effort to retain the existing level of workers’ rights and jobs

14. IMF Opens Door To Trade Unions Via ITUC Washington Office / the case of BIH and Serbia Meetings and video conferences with IMF representatives take place in some countries A seminar in the IMF Institute in Vienna on 11-15 January, 2010 with Trade Unions

15. ITUC is concerned on the following: The global financial and food crises and IFIs’ responses IMF’s role in designing a new regulatory architecture for the global financial system Core labour standards in IFI operations Climate change and the green jobs agenda, and role of the World Bank IFIs, policy coherence and decent work World Bank involvement in pension reforms Country-level consultation of unions on IFI programmes Non-discrimination and affirmative action in infrastructure projects Informal, migrant, and contract/agency workers: social protection and workers’ rights Gender equality in public sector restructuring Labour market regulations and women workers