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ILO-en-strap

87th Session
1-17 June 1999


 

Address by Mrs. Ruth Dreifuss, President of the Swiss Confederation
8 June 1999

Every year Geneva and Switzerland are proud to host your Conference, your Conference which is a genuine world labour parliament. So I have particular pleasure in conveying to you from this rostrum the warm greetings of the Swiss authorities and of the Swiss people.

I would like in particular to extend my greetings to Mr. Mumuni, the President of the Conference whom I congratulate on his election. I would also like once again to offer Mr. Juan Somavia, the Director-General, my best wishes for every success in his important duties. And I would like to pay a tribute to the in-depth work done year after year by all the staff of the International Labour Organization. Their commitment to social justice in the world is quite simply exemplary.

We Swiss are your hosts, but we are also much more than that. Our social history is very closely linked to that of the ILO which we helped to set up. We have never stopped working to make sure that the ILO can fulfil the hopes that have been vested in it. Yesterday -- and I thank you for showing such confidence in us -- we were elected a regular member of the Governing Body, and if we hope to assume the Chair of that body for the period 1999 to 2000, it is simply to better serve the institution as a whole.

Today we are commemorating the 80th anniversary of the International Labour Organization. In 1919, following the destruction of the First World War, a decisive step was taken in the work that had been going on for centuries.

In the age of enlightenment and again at the beginning of the Industrial Revolution, voices were raised expressing the need to protect workers.

The human cost of industrial and technological development and the danger this represented for social stability made it absolutely clear that collective bargaining had to be given scope to develop and that the community needed to set minimum standards for the protection of workers. A number of countries, including Switzerland, played a pioneer role here by adopting the first labour laws and protecting labour, especially women and children, whose exploitation had blighted societies embroiled in the technological revolution.

The fact that maternity protection, which in 1919 was the subject of one of the first ILO Conventions, is now once again on the agenda, just as Switzerland is hoping to enact legislation in this area, shows the interdependence of national and international developments.

But even in those days, the "globalization" of international development and competition made it clear that we must take steps internationally to harmonize labour conditions in the industrializing countries. In 1901, the International Association for the Legal Protection of Workers began laying the foundations for this, and the Berne Conventions of 1906 increased the number of protective measures available.

The desire to overcome the horrors of the First World War, the hope of preventing economic wars from ever leading to armed conflict, the ideological rift between East and West -- these were just some of the reasons why the international community set up the International Labour Organization in 1919. In a bold stroke of genius and a gesture of recognition of the role of non-governmental organizations, the founding States gave the ILO a completely new type of structure based on tripartism, which brought together under one roof the principal socio-economic actors. Now, more than ever before, this balance of interests between States and economic organizations, between employers' and workers' organizations, and this wish to create the right conditions for them freely to conduct their activities, are of immediate relevance to today's realities and challenges.

In 1920, the ILO Secretariat, the International Labour Office, was established in Geneva. Switzerland has always been very proud of its presence here within our borders and this prestigious institution, after the International Committee of the Red Cross, has become a beacon of human rights and social justice in Geneva.

With conviction and determination, the ILO has steered a clear course through the troubled history of the twentieth century. The results achieved since 1919 have endowed the ILO with an undisputed international legitimacy for establishing the basic international conditions conducive to equitable economic and social relations within and between countries. The instruments that have been developed -- concerning social partnership, international cooperation and constructive monitoring of the implementation of international standards -- remain valid today and still contribute to peace in our world. The award to the ILO of the Nobel Peace Prize thirty years ago was simply giving credit where credit was due.

The ILO has never, in its 80 years of existence, ceased to play a vital role, which has in essence never changed. However, the world has changed over the last eight decades; our Organization has become a universal one and is no longer riven by the ideological conflicts of the Cold War. Other challenges lie before us, related to internationalization and the liberalization of trade.

This is a turning point for the ILO. In economic terms, multilateral relations and fundamental conditions have changed radically over the last few years. New technologies drive our economies and have compressed time and space, revolutionized trade, and called into question certain achievements in the social field. They have also forced governments and public authorities to rethink their role. Globalization of trade is very rich in development potential, but at the same time forces us, as it did 80 years ago, to confront the "social issue". Poverty is increasing and particularly afflicts women throughout the world. The exploitation of children is unfortunately still with us. And the sustainable development dimension, in particular with respect to protection of the environment, has also become very topical during this decade.

In many parts of the world, the economic and financial crisis has resulted in a definite decline in social progress. The re-emergence of social unrest and ethnic conflicts has plunged entire populations into destitution and marginalization. Increasingly, it is new key figures that occupy the international scene, notably, the IMF and WTO. The ILO, with its tripartite tradition, its experience and its ability to grasp every-day realities, must once again rediscover its role as a pioneer. It must develop new ideas and redefine its role in the international community.

We need "laboratories of the future". Robert Jungk, who coined this phrase and set up citizens' platforms for discussion and action, wrote that the future was not something pre-ordained but rather what you make of the present for yourself and for future generations.

Now, what does the ILO do for itself to serve the future of the international community? Well, first and foremost, the ILO has endowed itself with suitable institutional machinery to respond to the new dimensions of its commitment to social justice. Under the visionary leadership of the Director-General, new structures organized around major strategic priorities should enhance the effectiveness of the ILO's work at the threshold of the twenty-first century. New international instruments, such as the Declaration on Fundamental Principles and Rights at Work, have been added to the arsenal of core social standards. The focus on four strategic priorities and the emphasis on reinforcing research will enhance the Organization's competence and authority. The traditional priority that has always been given to child labour is one of the key pillars of the ILO. Convention No. 138 must remain the point of reference for the future, and I am very happy to be able to tell you now that Switzerland will soon be depositing its instruments of ratification of that Convention.

However, it is to be hoped that the suffering of some of the weakest members of our society, who represent its future, will provide the impetus needed for us to eliminate the worst forms of exploitation. We therefore hope for universal ratification and application of the Convention that is being prepared at this session.

A very moving welcome was given to participants in the Global March against Child Labour. This showed an openness towards non-governmental organizations representing the very poorest members of society. Their presence confronts us with our human and political responsibilities. It shows us that the fight against poverty is becoming global as well.

There has also been greater openness towards the private economy. The Second Enterprise Forum which will be held in November should make it possible to come up with specific proposals and strategies that will be very useful in the follow-up to the Social Summit. All these standards and priorities are the fruits of a very broad consensus. They are shared by the international community and by the social and economic partners within our globalized society.

One of the major challenges is that of defining the ILO's rightful place among the international organizations. Intergovernmental cooperation, in conjunction with the new players in the world economy, must take place in various arenas: with the World Trade Organization, the Bretton Woods institutions, and all the United Nations agencies, but always based on the ideals of the International Labour Organization, the world's social conscience.

Turning first to the World Trade Organization, there is clear complementarity between the objectives of the multilateral trade system and those of the ILO.

Openness to trade has certainly been a powerful factor for economic growth and prosperity. Improved living standards throughout the world have themselves contributed to social progress.

To take as an example, my own country, the ILO's study on the effects of globalization in Switzerland shows the positive aspects of more open markets, the end of monopoly earnings which penalize consumers and favour people with a better education and higher income.

Openness stimulates job creation. However, the adaptation process, while generating advantages for the population as whole, also brings in its wake negative effects for a good many people directly concerned. And in such instances it is the duty of the State to assist those people through specific measures. The World Employment Report 1998-99 shows that the countries that are most open to international trade also have the most developed systems for the social redistribution of wealth. As Minister of Social Affairs, I am well aware of the difficulties of funding social welfare schemes, but I also know that they must not be dismantled, but rather, properly run in a more efficient way. In this area as well, we hope to receive encouragement from the ILO.

However, let us not simply refer the problems back to the individual States. Let us instead globalize our social response to globalization. That response must respect the fundamental principle of good faith. First, by not confusing the defence of human dignity with protectionism. Applying protectionist measures in the name of respect for labour standards would be a self-defeating strategy. Such measures deprive the very poorest countries of one of the principal forces for development -- the chance to participate in world trade. And the members of WTO in fact roundly rejected the use of labour standards for protectionist purposes at the Ministerial Conference held in Singapore.

But the Singapore Declaration has another side to it. When we talk about human dignity, then resources, means and constant vigilance are needed. The members of WTO have given the ILO a mandate to promote fundamental social principles, and those members must give the ILO the legal and financial tools that it needs to fulfil that mandate. The Singapore compromise can only live up to the hopes it has raised if the ILO and the other United Nations organizations are given the resources they need to formulate solutions to the social problems created by globalization.

The costs of social adjustments associated with global competition and the international division of labour are indeed a cause of serious concern. Very often these concerns are exploited to undermine policies of openness that had already become established. In the light of such developments, we must make quite sure that trade liberalization and social justice are mutually reinforcing. Achieving such an objective will be possible only if we act coherently, within the WTO and the ILO, but it will also require effective cooperation between the two organizations. This kind of rapprochement should lead to open discussion on the interaction between trade and the core labour standards.

The Director-General's Report quite rightly states that the ILO does not have a monopoly on social and economic issues, and that a number of international organizations also have a role to play in this area, in particular the World Bank. The World Bank and the ILO are complementary. They are both essential agents for development assistance, but they differ in certain important points. Unlike the World Bank, the ILO is an organization which establishes standards and these standards, although not in themselves sufficient to bring about lasting improvements in socio-economic conditions, are vital safeguards for national legal systems and for international technical cooperation. However, more light needs to be shed on the interaction between labour standards and the economy.

For this purpose we need to carry out quality research, which means we need to know more about the social, economic and political conditions in which economic growth, social progress and the promotion of democracy and human rights will be mutually reinforcing. If we can do this, it will be possible for economists and human rights defenders of human rights to speak the same language, and this will lay the foundations for more real cooperation.

We also need instruments that will enable us to make better use of such knowledge. The ILO's Declaration on Fundamental Principles and Rights at Work is one such instrument. It will enable us to ensure that development cooperation is targeted on the basis of the most up-to-date knowledge. We hope that the conclusions of the global report will also influence the work of the World Bank and that of other international organizations. The aim is to ensure that in every country, respect for social rights provides a comparative advantage that testifies to the proper functioning of the national economy. A decisive step forward will thus have been taken to ally social policy with economic policy and complete the Washington consensus.

The many actors in the field of social policy met in 1995 in Copenhagen for a World Social Summit. Last year, the Swiss Federal Council invited the United Nations to hold a follow-up conference to that Summit in the year 2000 in Geneva, in the Palais des Nations. That conference will take place from 26 to 30 June.

Switzerland is particularly happy that the United Nations General Assembly has accepted this invitation, and we are deeply honoured by the confidence that has been vested in us. Our aim is to provide the community of nations with the best possible platform to enable it to solve the economic and social problems of the next millennium, and we hope that Geneva 2000 will emphasize the social dimension of globalization.

As far as Switzerland is concerned, the priorities of the follow-up conference should be unemployment and fair working conditions. With more than 150 million people unemployed, with unemployment rife among young people and with social marginalization, the world is faced with a time bomb which has to be defused.

It is those who work here in this institution who will have to assume much of the responsibility for putting forward solutions to these crucial problems. This means that bringing the follow-up conference here imposes great responsibility on the ILO -- but also presents it with a great opportunity. I am absolutely convinced that the ILO will be able to meet this challenge under the enlightened guidance of Mr. Somavia who, let us not forget, was the spiritual father of the Copenhagen Summit.

The Secretary-General of the United Nations, Mr. Kofi Annan, clearly pointed the way forward at the last Davos Economic Forum when he said that what is needed is a "global compact of shared values and principles which will give a human face to the global market". This was an appeal for a social contract for the international community. It was also an appeal for a joint definition of the rules of our shared life in the globalized world of the twenty-first century.

Geneva is the home of many humanitarian organizations and the seat of the Office of the High Commissioner for Human Rights. It is also the headquarters of socio-economic organizations such as the ILO and WHO. Geneva is therefore a city ideally suited to be the geographical point at which social policy and economic policy meet.

Ten years after the collapse of the Berlin Wall, we should be able, with the "principles of social policy", to fill another ideological gap and I invite you to do precisely that.

In this way we will be able to show the world that we know how to shoulder the most important of all our responsibilities, which is to learn the lessons of history, above all our recent history: in past years economic crises have wiped out the benefits of decades of well-being. If we go further back to the 1930s, we come to the great depression and economic crisis that led the world to the edge of the precipice. Now, just as in the days of the ILO's foundation, we need to be able to respond to the questions that were raised in 1919 by President Wilson: in what sort of conditions do our people work? Following on from that, what future does our society have?

The international community must provide a better response to these questions than it did during the Great Depression. Together with the Bretton Woods institutions and the World Trade Organization, the ILO is one of the three pillars of international economic culture. Thanks to its broad range of competence and its moral authority, it is in a good position to provide a response to those questions. It is therefore the duty of the ILO to act on the words that were written on the former ILO building, now the headquarters of WTO: "If you want peace, then seek justice".


Updated by VC. Approved by RH. Last update: 26 January 2000.