On the final day of
Public Forum 2012, a high-level panel agreed that trade enables job creation,
but jobs will not be created by trade alone. It is the role of governments to
put in place the right domestic measures for job creation and income distribution.
More international co-operation and coherence between the trade and job agendas
is highly desirable, they concluded.
World Trade Organisation (WTO) deputy director-general Rufus Yerxa, moderator of the panel, said that "for many governments, employment is now the top priority — in this context, the question of the role of trade is of crucial importance".
He said that many WTO members are "expressing concern that political pressures to preserve jobs may fuel protectionist actions, and that these actions may actually jeopardize the prospects for longer term growth".
His questions to the panellists included: ”What is the effect of trade on jobs in developing and developed countries? What complementary policies are needed to ensure that trade reform actually translates into economic growth, high productivity and more jobs? How can the multilateral system contribute to boost growth and employment?"
Professor of Economics at INCAE Business School and former trade minister of Costa Rica Alberto Trejos, cautioned against ‘overreacting’ to the potential of trade to influence the number of jobs. He said that where trade can make a difference is on the quality of jobs, especially if complemented by sound domestic policies. Additionally, a good trade policy can help in the acceleration of job creation.
Similarly, general secretary of the Trade Union Advisory Committee to the OECD John Evans said that one factor in the current crisis was an imbalance between growth and social policies, as growth was not matched by an equitable distribution of its gains. Even worse, now we have collective austerity measures, weakening collective bargaining and lowering wages. The question is how to make better trade policies and reach a better globalisation balance.
World Trade Organisation (WTO) deputy director-general Rufus Yerxa, moderator of the panel, said that "for many governments, employment is now the top priority — in this context, the question of the role of trade is of crucial importance".
He said that many WTO members are "expressing concern that political pressures to preserve jobs may fuel protectionist actions, and that these actions may actually jeopardize the prospects for longer term growth".
His questions to the panellists included: ”What is the effect of trade on jobs in developing and developed countries? What complementary policies are needed to ensure that trade reform actually translates into economic growth, high productivity and more jobs? How can the multilateral system contribute to boost growth and employment?"
Professor of Economics at INCAE Business School and former trade minister of Costa Rica Alberto Trejos, cautioned against ‘overreacting’ to the potential of trade to influence the number of jobs. He said that where trade can make a difference is on the quality of jobs, especially if complemented by sound domestic policies. Additionally, a good trade policy can help in the acceleration of job creation.
Similarly, general secretary of the Trade Union Advisory Committee to the OECD John Evans said that one factor in the current crisis was an imbalance between growth and social policies, as growth was not matched by an equitable distribution of its gains. Even worse, now we have collective austerity measures, weakening collective bargaining and lowering wages. The question is how to make better trade policies and reach a better globalisation balance.
Board member of the International
Organisation of Employers and chairman and chief executive of Great
Eastern Energy Corporation Yogendra K Modi, said that India saw the benefits of
trade when its economy was opened in 1991 and growth expanded rapidly.
Countries must be competitive, and imports are as important as exports.
Multilateral agreements are essential. In the context of the Doha Round, to a
businessman, the policy of agreeing either to everything or to nothing makes no
sense. Smaller, weaker countries must be included in all discussions. Blaming
the WTO or trade for a country’s internal problems is wrong – one can only help
oneself.
Senator Ricardo Lagos of Chile said that trade can cushion the effects of the crisis on jobs by generating growth, which, in turn, leads to job creation. However, in most cases, there is a missing link: how do you integrate domestic and labour policies with trade policy so that more trade effectively leads to more jobs?
Director at theh Policy Integration Department and senior advisor to the ILO director-general Stephen Pursey said that since the onset of the crisis, global unemployment has risen by around 30 million to over 200 million, and that 75 million of the unemployed are young women and men. He added that ILO research had found that the trade contraction during the global crisis has resulted in the loss of nearly four million jobs in India and about 900,000 in South Africa. This was the result of declines in exports to the EU and the US between early 2008 and early 2009. He added that there are about 60 million fewer jobs globally than in 2007.
He said an outright global recession is likely unless the current policy thrust in the largest economies changes. The gains from globalization are not distributed equally, and some workers and firms may lose out in the short and medium term. The Nordic economies, which have been open for the longest, have the most extensive systems of social protection, developed before these economies were rich. Education and Aid for Trade are also important. What is needed is the integration of trade and job strategies in a major way but this would not be easy to achieve in the present macroeconomic situation.
Senator Ricardo Lagos of Chile said that trade can cushion the effects of the crisis on jobs by generating growth, which, in turn, leads to job creation. However, in most cases, there is a missing link: how do you integrate domestic and labour policies with trade policy so that more trade effectively leads to more jobs?
Director at theh Policy Integration Department and senior advisor to the ILO director-general Stephen Pursey said that since the onset of the crisis, global unemployment has risen by around 30 million to over 200 million, and that 75 million of the unemployed are young women and men. He added that ILO research had found that the trade contraction during the global crisis has resulted in the loss of nearly four million jobs in India and about 900,000 in South Africa. This was the result of declines in exports to the EU and the US between early 2008 and early 2009. He added that there are about 60 million fewer jobs globally than in 2007.
He said an outright global recession is likely unless the current policy thrust in the largest economies changes. The gains from globalization are not distributed equally, and some workers and firms may lose out in the short and medium term. The Nordic economies, which have been open for the longest, have the most extensive systems of social protection, developed before these economies were rich. Education and Aid for Trade are also important. What is needed is the integration of trade and job strategies in a major way but this would not be easy to achieve in the present macroeconomic situation.
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