Mr. Vice Minister,
Ladies and Gentlemen,

It is a great pleasure to have the opportunity to exchange views with this distinguished gathering. All of you, policy makers, civil servants, workers and employers, and academics, are concerned with the problems of work, labour and employment in China and in the world. In the many constructive and open discussions I have had with senior leaders in China in the last few days, I have been deeply impressed by the determination with which China is facing the great challenges posed by globalization and internal reform. Its achievements in the fight against poverty, illiteracy are already historic. The world has seen the results in remarkable rates of growth; in global presence; and in the new employment opportunities which have been created over the last twenty years. But, as we all know, the challenges in China are immense, and much remains to be done.

Coming as I do from a developing country, which has also had to adapt to the harsh realities of a global economy, I can well understand the difficulties and concerns which China has in maintaining stability in a period of great change, and in ensuring social equity at a time of rapid growth. But, unlike many other countries, China has never lost sight of the need to translate GDP into real improvements in the total quality of life for all its people. That awareness is a precious asset. It is a realisation which lies at the heart of the ILO's constitutional commitment to promote material well-being "in conditions of freedom, dignity, economic security, and equal opportunity".

This shared conviction has led both China and the ILO in recent months to explore ways in which the ILO could support China's current efforts at social and economic reform. I am very glad that on this visit I concluded, on behalf of the ILO, a Memorandum of Understanding with the Minister of Labour to launch a programme of cooperation to strengthen national policies in China for employment, social dialogue, and social protection, in line with internationally recognised principles and rights at work. I am confident that this will lead to a qualitatively new level of discourse and engagement between China and the ILO.

This morning, I wish to share with you some of the thinking which lies behind this agreement. It is based on the goal of Decent Work, adopted two years ago by all the tripartite constituents of the ILO - the workers, employers and governments of 175 countries. All countries are facing problems in responding to the challenges of the emerging global economy. There is unprecedented prosperity for many, accompanied by deepening uncertainties for all. Many people, and their families, are deeply concerned about their personal futures in this swirling process of global change. Exclusion, inequality and regional disparities go hand in hand with expanding aspirations and demographic pressures. Faced with this situation, there is, everywhere, a common desire and a common hope. Women and men seek decent work - work which will respect their individuality and dignity; provide them with sustenance; ensure provision for the uncertainties of employment, health and old age; and give their lives social meaning and identity. This is why the ILO conceives its primary role today as one of promoting opportunities for all people to obtain decent and productive work. The Memorandum of Cooperation with China has been framed within this goal of Decent Work.

What does Decent Work mean in practical terms? What national and international policies are needed to achieve it? I will try and address some of these issues, and conclude with a suggestion to take the debate forward. There are no ready-made answers, and nobody has a monopoly of wisdom.

We in the ILO conceive of Decent Work as a point of convergence of four strategic objectives: rights at work; employment; social protection; and social dialogue.

"Rights at work" is the promotion of four fundamental principles: freedom of association and collective bargaining; the elimination of forced or compulsory labour; the elimination of child labour; and the elimination of discrimination in respect to employment and occupation. These are contained in the ILO Declaration of Fundamental Principles and Rights at Work, a pledge by all countries to respect, promote and realise these rights. China has made an important commitment to promote and extend the internal rule of law as a framework for national reform and development. In a period of global markets and emerging global society, this also requires increasing harmonisation with international standards. China's support of the ILO Declaration is therefore of great significance.

Employment is at the core of the ILO's mandate. Globalisation and rapidly changing production systems create both opportunities and problems. Employment has to be built into macro-economic policies and pursued as a means of reducing poverty. Enterprises are the locomotives of employment, and market-friendly incentives and supportive business policies are central to employment generation.

Employment is qualitative as well as quantitative. Job quality and conditions of work are important. In China, while job quality is improving, job security is decreasing. Some have the capacity and skills to access better jobs, while others do not. Intense competition has emerged. As the Chinese saying goes, "Eight immortals crossing the ocean, each one has to show its genius". However, individuals need a level of basic security to enable them to develop their skills and creativity, and to take advantage of the opportunities of free markets.

Social protection aims at setting a social floor for free markets, preventing poverty, maintaining incomes, and ensuring access to medical care and social services. At a time when in China privatisation and deregulation are leading to the transfer of social responsibilities from public enterprises to the State, existing systems of social security inevitably come under pressure. The transfer of social responsibility is taking place with unprecedented speed, placing immense strains on existing economic and fiscal capacities. Changes in production systems are also creating new problems for occupational safety and health, leading to accidents and tragedies on a large scale. China recognises that "Safety first. Prevention is the key". But there is much to be done.

Social dialogue is a powerful tool to address industrial disputes at the enterprise level, and to foster social cohesion at the national level. The ILO's tripartite structure is symbolic of tripartite consultation and cooperation, both for national policies, as well as for plant-level collective bargaining. Strong and independent workers' and employers' organisations, together with a supportive policy and legislative environment, are essential preconditions for social dialogue. These are all familiar problems for you in China, as collective bargaining becomes increasingly decentralised to the enterprise level, and where new forms of private enterprise are creating new tensions between workers, employers and the State.

Rights at work; employment; social protection; and social dialogue - this is the meat in the rice bowl of Decent Work. They are all integrated and inter-dependant. Without rights at work, there can be no social dialogue. Without social dialogue, we cannot achieve sustainable employment and growth. Without social protection and rights at work, employment can degenerate into exploitation. And without work, there can be no rights at work.

These are strategic goals that have be pursued together in a mutually supportive way if any one of them is to succeed. It is for this reason that the ILO's programme of cooperation with China is conceived of as an integrated set of activities.

But, all this is not enough to achieve Decent Work. Development goals and gender policies must underpin the agenda.

There can be no Decent Work, without work itself. Growth, development and employment are essential if we want to improve the quality of people's lives. Without these we will merely see an increase of the number of the working poor. At the same time, on-going ILO research indicates that progress towards Decent Work does not have to wait for economic progress. There is ample room for promoting Decent Work even at low income levels. For example, good working conditions enhances productivity. Social dialogue ensures sustainable growth. The abolition of child labour enhances the country's human capabilities.

Equally, there can be no Decent Work without equality of rights and opportunities for women and men. Without a gender perspective and gender policies, there can be no stable societies nor contented families. You have in China a phrase which expresses it all. "Women hold up half the sky." But, women are often at the receiving end of market transitions, and poverty often has a feminine profile.

Decent Work is a central element in the lives of individuals, families, communities, countries, and the global economy itself. Decent work is about economic production as well as social reproduction. It is the future that people want for themselves, and for their children.

How can this vision be realised in practice?

I believe in advocating universal values without prescribing universal solutions. We must be sensitive to the cultural, developmental, and institutional diversity of national situations. Each society, at every level of development, can set and achieve standards of decency, in rights at work, employment, social protection and social dialogue, within the context of their own realities, while respecting the basic underlying principles. Decent Work is not a fixed goal, but a sign post, which advances with the expansion of a society's possibilities and social consciousness.

We need both international and national policies to pursue the goal of Decent Work.

At the international level, discussions in recent decades have focused on the deregulation of financial and commodity markets, and on the liberalisation of international trade. International development programmes have focused, often exclusively, on productivity, growth and the removal of market constraints. These are all crucial, but they are not sufficient. More recently, following the financial market crises in Russia, Latin America and Asia, there is growing awareness of institutional factors and social policy in achieving durable economic growth. Attention has shifted from purely economic growth to human development and the eradication of poverty. It is becoming clear that these need to proceed hand in hand if we wish to have sustainable societies. There is growing awareness of a massive Decent Work deficit in the global economy today. There is the absence of sufficient employment opportunities. There is inadequate social protection. There is a shortfall of rights at work. There are silences in social dialogue. We are becoming aware of the need for global policies to promote Decent Work.

This has several implications. International development programmes have to explicitly target employment and Decent Work goals, and to mobilise international opinion and resources for the purpose. They need to emphasise institutional reform, such as the strengthening of workers and employers organisations; seek provision for adequate systems for social protection; and promote the creation of enabling legal frameworks for Decent Work. They need to strengthen human resource development, with particular reference to gender policies, training and entrepreneurship.

There are other signs of an emerging will to build a social dimension to the global economy, driven by a growing political concern with the Decent Work deficit. The ILO's Declaration on Fundamental Freedoms and Rights at Work is gaining increasing support. Trade unions are taking up the challenge of organising new constituents beyond the formal economy, and providing new services to their members, including helping them back to employment. Consumer interest is extending beyond the product, to the conditions under which products are produced. This is of particular importance to the export sector in China. Responding to such consumer demands can unlock new markets and strengthen the competitiveness of Chinese business.

In short, at the international level, we need policies to build social pillars under the global economy. These are essential to support national efforts to achieve Decent Work. International organisations, such as the ILO, can help to create an appropriate international environment through development policies; the sharing and dissemination of good practice; the harmonisation of national standards with international norms; and the mobilisation of external resources. But, in the final analysis, national policies are the levers of change. Durable changes are brought about by a process of national debate and growing social awareness.

National action has to be based on national needs and priorities, taking into account the growing realities of a global economy and a global society. China will need to examine how to pursue the goal of Decent Work in the light of its current needs. The programme of ILO cooperation with China is a learning exercise for all of us. That is why we need to multiply our exchanges and deepen our dialogue to find the right way forward.

Let me end by suggesting how we might proceed in the exchange of ideas. As I said, I view the ILO's programme of cooperation with China as an exercise in mutual learning. The programme is not an engineering blue print which can be automatically implemented. It is, rather, a way of launching a dynamic and systematic process in which international values and concepts will be tested and realised in the context of national realities. You are the best judge of what those realities are. It is in this spirit that I invite you to place your own priorities on the table, and to see in what way they can be promoted through the four strategic objectives I have outlined of our shared vision of Decent Work.