Maravi

ILO predicts economic, social protection crisis

ILO predicts economic, social protection crisis
Written by Kabanda Chulu and Mutale Kapekele
Thursday, June 11, 2009 12:55:03 PM

WORLD Economic Forum (WEF) head of Africa Katherine Tweedie has said there is need to understand how macroeconomic shifts are shaping the global agenda and how these trends are affecting Africa’s diverse economies.

And Zambian President Rupiah Banda is among the five Heads of State that will take part in the 19th World Economic Forum for Africa that begins today (Wednesday) in Cape Town, South Africa.

Meanwhile, International Labour Organization (ILO) director-general Juan Somavia has told the on-going 98th International Labour Conference in Geneva that the current economic downturn has brought a possible six-to-eight-year employment and social protection crisis.

Speaking ahead of the event, Tweedie stated that the meeting would facilitate interaction and dialogue that would allow leaders to address the immediate challenges posed by the crisis and fully explore the unique opportunities that Africa had at its doorstep in this new global arena.

“There is a need now, more than ever, to explore how macroeconomic shifts are shaping the global agenda and how these trends are affecting Africa’s diverse economies,” Tweedie stated.

“I am encouraged to see that over 800 leaders have chosen the 19th World Economic Forum on Africa as the key platform to address the implications of the global economic crisis for the continent.”

She stated that the 19th World Economic Forum on Africa provides an important platform for world leaders to address the global and regional implications of the crisis and develop a new roadmap for Africa’s future.

Tweedie stated that the launch of the Africa Competitiveness Report 2009 would provide valuable insight for these deliberations and discussions would also focus on the impact of the crisis on Africa’s traditional drivers of growth, including foreign capital flows, demand for oil and commodities, and infrastructure development.

And Somavia cited a range of dire economic challenges facing the world of work, ranging from rising unemployment and increasing poverty to stress on businesses.

“All of these things put together means that the world may be looking at a jobs and social protection crisis of six-to-eight-years duration,” Somavia said.

He also said the global economy would need to create around 300 million new jobs by 2015 to keep up with the increase in the labour force but added that “things are going in the opposite direction.”

Somavia observed that it may take four to five years for the world to get back to pre-crisis conditions.

“We know from past crises that employment recovers pre-crisis levels with a lag of between four and five years on average,” he said. “Our tripartite responsibility is to propose policies that significantly reduce the lag in employment recovery.”

Somavia said the proposed Global Jobs Pact was based on a series of tried and tested policies which, if adopted in a comprehensive fashion, could “reduce social tensions, protect people in the downturn and, most importantly, stimulate aggregate demand and prepare the growth of tomorrow”.

Labels: ILO, KATHERINE TWEEDIE, RUPIAH BANDA

posted by MrK @ 11:59 AM