year’s G7 French presidency has chosen the theme for the Biarritz Summit well.
‘Combating inequality’ is indeed
one of the key challenges of our time.
The theme of combating inequality strongly aligns with the International Labour Organization’s mandate for social justice, as articulated most recently by our Centenary Declaration for the Future of Work adopted by the International Labour Conference in June 2019 . The G7 presidency’s intent for the Biarritz Summit to reaffirm the G7 members’ commitment to respond to global challenges through collective action further provides important support for the declaration’s call for stronger multilateralism to confront the issues facing the world of work.
The G7’s labour and employment track, known this year as the G7 Social, furthered the overarching theme of France’s presidency by concentrating on four goals: further integrating international labour standards into the multilateral system, supporting access to universal social protection systems, supporting individuals through digital transformation and its impact on the future of work, and promoting occupational equality between women and men. Because these themes are integral to the Decent Work Agenda, they provided the ILO with an opportunity to engage deeply with G7 members, not only by providing technical inputs on each of them but also by participating during the discussions.
In the context of the G7 Social’s focus on the rapid changes in the world of work, France highlighted the importance of the ILO’s centenary by welcoming Work for a brighter future, the report of the ILO’s Global Commission on the Future of Work. It also emphasised the critical role played by the ILO in the multilateral debate on economic and social policy, and the importance of the ILO’s groundbreaking new international standard on violence and harassment in the world of work.
The communiqué adopted by labour and employment ministers when they met in Paris on 6–7 June 2019 reflects the work of the G7 Social through an ambitious set of goals:
A call to action to reduce inequalities in a global world, including a multilateral dialogue and coordination for the reduction of inequalities and a commitment to promoting responsible business conduct in global supply chains;
Commitments in favour of universal access to social protection in the changing world of work;
Commitments to empower individuals for the future of work; and,
Commitments to ensure gender equality in the world of work.
The ministers’ communiqué and the ILO’s Centenary Declaration have many strong points of convergence that reveal key areas of focus for the future of work.
The economic and social link
instruments stress the need to strengthen multilateralism. The G7 communiqué
emphasises the inseparability of economic and social policies to reduce
inequalities. This finds its counterpart in the Centenary Declaration’s
recognition of the “strong, complex and crucial links between social, trade,
financial, economic and environmental policies”, which leads to a call for the
ILO to play a stronger role in broad policy dialogues among multilateral
institutions. The communiqué and the accompanying G7 Social Tripartite
Declaration reaffirm and implement the G7 members’ commitment to social
dialogue as the means of shaping the future of work we want.
Similarly, just as the G7 communiqué stresses that social protection, in line with ILO Recommendation 202 on Social Protection Floors , “is instrumental in shaping the future of work”, the Centenary Declaration calls on the ILO to “develop and enhance social protection systems, which are adequate, sustainable and adapted to developments in the world of work”. Both instruments draw from the Report of the Global Commission, which underscores the importance of social protection systems to support people through the increasingly complex transitions they will need to navigate the changing world of work in order to realise their capabilities.
The G7 communiqué’s call for empowering individuals hinges on the need to “adapt labour market support and institutions to provide decent working conditions for all platform workers” and “underline[s] the importance of harnessing the potential of current changes to create high-quality jobs for all”. Addressing new business models and diverse forms of work arrangements, the Declaration, for its part, directs the ILO’s efforts to “[harness] … technological progress and productivity growth” to ensure decent work and “a just sharing of the benefits for all”. Both documents draw on prior work of the ILO to call for a transformative agenda for gender equality through a broad range of policies, including by closing persistent gender gaps in pay and participation in the labour market. Both instruments recognise the persistent challenges of informality.
As the ILO begins our second century, we are preparing our next programme and budget to respond to the key priority areas identified in the Centenary Declaration. We look to the G7 summit to provide an important boost for the ILO’s efforts to bring that about, and by so doing to provide our own contribution to the G7 priority of combating inequality.
Local treasures: Nepal’s mountain crops drive biodiversity and economic growth
Remote mountainous regions of Nepal are harsh places in which to survive and make a living.
Economic, social and environmental challenges include lack of market access, outmigration, dependency on imports and subsidies, women’s drudgery, malnutrition, unpredictable weather, pests and diseases.
To tackle some of these challenges, UNEP and partners are working with the local community to conserve biodiversity of crops, to boost food security and resilience.
The 2014-2020 Global Environment Facility-supported project was implemented by the United Nations Environment Programme (UNEP) and executed by Bioversity International in collaboration with national partners—the Nepal Agricultural Research Council, the Department of Agriculture, and Local Initiatives for Biodiversity, Research and Development.
It covers eight sites, at altitudes ranging from 1,500 to 3,000 metres above sea level, in the districts of Humla, Jumla, Lamjung and Dolakha, in Western, Central and Eastern Nepal. High‑elevation agricultural systems often have high levels of environmental instability. Eight mountain crops – buckwheat, common bean, finger millet, foxtail millet, proso millet, grain amaranth, naked barley and cold tolerant high-altitude rice – are targeted.
The project faced two major hurdles in five years: devastating earthquakes in March and April 2015, which badly affected two of the four sites, as well as a major administrative reform which saw the introduction of a new federal system in 2017.
Despite the disruptions, government officials believe the project has made a difference. “The project has developed the foundation for promoting and mainstreaming traditional crops,” says Deepak Bhandari, Executive Director of the Nepal Agricultural Research Council. He also hailed the launching of the national project website.
“The project made us aware of the value of local crops,” says Depsara Upadhaya, a farmer from Chhipra village in the northwest of Nepal. “We received support to establish a community seedbank in the village, and electric machines were made available to process finger and proso millet. This brought great relief to women in my village by reducing the physical strain of manual threshing.”
Under the project, four community seed banks were established to conserve rare, local mountain crops. The banks now conserve 232 unique and endangered varieties of 56 crops. UNEP and partners also encouraged best practices for mainstreaming agrobiodiversity in agriculture through community biodiversity management funds, farmers’ field schools and seed exchanges.
Making a difference
“Crop biodiversity contributes to nature, which is an essential source of many drugs used in modern medicine. Globally, nearly half of the human population depends on natural resources for its livelihood,” says UNEP biodiversity expert Marieta Sakalian.
Since its inception in 2014, the project has been boosting mountain crop biodiversity for the benefit of local communities and farmers. Results include:
- 20,000 households received seeds, germplasm and information on how to conserve and grow mountain crops.
- 300 germplasms of eight target crops were sent to project sites for on-farm testing. Over 60 were selected for use by farmers.
- 500 local crop genes have been stored in the national gene bank for future breeding.
- In 2019, low-interest, collateral-free loans were given to 58 farmers – mostly women – by a community biodiversity trust fund.
- Electric threshers for millet reduced women’s’ physical labor and improve efficiency. Finger millet threshers were distributed to over 500 households. Eight improved pieces of processing equipment were given to communities.
- Capacity building of over 100 local farmers, many of them women
- Over 70 publications—books, flyers, posters, blogs and brochures—were produced.
ADB Approves $400 Million Loan to Support Philippines’ Capital Market Development
The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support the Philippine government’s efforts to strengthen domestic capital markets and reach its development goals of high, sustained economic growth and poverty reduction.
The Support to Capital Market-Generated Infrastructure Financing Program, subprogram 1, aims to address key constraints that have limited the growth of domestic capital markets, especially government and corporate bond markets. It also focuses on building a vibrant domestic institutional investor base that will become a sustainable source of long-tenor infrastructure finance. By boosting infrastructure finance, the capital market development program will support higher public infrastructure spending for years to come.
The government’s flagship “Build Build Build” (BBB) infrastructure development program targets an increase in public spending on infrastructure towards 7.0% of gross domestic product by 2022, up from 5.5% in 2018 and an average of 2.8% in the last three decades.
“Resilient and vibrant capital markets are key to achieving economic development, growth, and poverty reduction as set out in the government’s long term strategy AmBisyon Natin 2040,” said ADB Vice-President Ahmed M. Saeed. “By developing domestic capital markets, funds are generated to support higher levels of long-term investments and sustainable quality job creation. The program approved today will support the Philippine government’s development goals, including its response to the COVID-19 pandemic.”
The capital markets development program has supported various reforms in recent years, including the launch and implementation of the first government-led, comprehensive domestic bond market development plan. The Philippines also has modernized its government debt trading infrastructure and provided a reliable yield curve to support the pricing of private sector debt instruments.
Other reforms have helped build an enabling environment for private sector debt instruments. These reforms will boost outstanding corporate bonds to an estimated 12% of gross domestic product by 2021, up from 7.5% in 2017. The government also has upgraded the Personal Equity and Retirement Account system, which makes it easier for Filipinos to tap into the capital markets to save for the future.
This latest assistance builds on decades of ADB support to financial sector reforms in the Philippines, including strengthening governance and investor protection measures in the wake of the 1997 Asian financial crisis. Since 2013, ADB has been supporting reforms in the domestic capital market, which aimed to build a more diversified institutional investor base to encourage the development of long-term finance for infrastructure.
This new loan brings ADB’s total lending to the Philippines to $2.1 billion so far this year. ADB approved a $1.5 billion loan for the COVID-19 Active Response and Expenditure Support Program on 23 April and $200 million in additional financing for the Social Protection Support Project on 27 April.
Europe’s moment: Repair and prepare for the next generation
European Commission has put forward its proposal for a major recovery plan. To ensure the recovery is sustainable, even, inclusive and fair for all Member States, the European Commission is proposing to create a new recovery instrument, Next Generation EU, embedded within a powerful, modern and revamped long-term EU budget. The Commission has also unveiled its adjusted Work Programme for 2020, which will prioritise the actions needed to propel Europe’s recovery and resilience.
The coronavirus has shaken Europe and the world to its core, testing healthcare and welfare systems, our societies and economies and our way of living and working together. To protect lives and livelihoods, repair the Single Market, as well as to build a lasting and prosperous recovery, the European Commission is proposing to harness the full potential of the EU budget. Next Generation EU of €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to €1.85 trillion.
European Commission President Ursula von der Leyen said: “The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitalization will boost jobs and growth, the resilience of our societies and the health of our environment. This is Europe’s moment. Our willingness to act must live up to the challenges we are all facing. With Next Generation EU we are providing an ambitious answer.”
Commissioner Johannes Hahn, in charge of the EU budget, said: “Our common budget is at the heart of Europe’s recovery plan. The additional firepower of Next Generation EU and the reinforced multiannual financial framework will give us the power of solidarity to support Member States and the economy. Together, Europe will arise more competitive, resilient and sovereign.”
Vice-President Maroš Šefčovič, in charge of interinstitutional relations and foresight, said: “The recovery will need strong policy direction. The adapted Work Programme, reflecting the new reality, shows that we will focus all our actions on overcoming the crisis, jumpstarting our economy and putting the European Union firmly on a resilient, sustainable and fair recovery path. It will help us rebound stronger.”
INVESTING FOR THE NEXT GENERATION
Complementing national efforts, the EU budget is uniquely placed to power a fair socio-economic recovery, repair and revitalise the Single Market, to guarantee a level playing field, and support the urgent investments, in particular in the green and digital transitions, which hold the key to Europe’s future prosperity and resilience.
Next Generation EU will raise money by temporarily lifting the own resources ceiling to 2.00% of EU Gross National Income, allowing the Commission to use its strong credit rating to borrow €750 billion on the financial markets. This additional funding will be channelled through EU programmes and repaid over a long period of time throughout future EU budgets – not before 2028 and not after 2058. To help do this in a fair and shared way, the Commission proposes a number of new own resources. In addition, in order to make funds available as soon as possible to respond to the most pressing needs, the Commission proposes to amend the current multiannual financial framework 2014-2020 to make an additional €11.5 billion in funding available already in 2020.
The money raised for Next Generation EU will be invested across three pillars:
1. Support to Member States with investments and reforms:
- A new Recovery and Resilience Facility of €560 billion will offer financial support for investments and reforms, including in relation to the green and digital transitions and the resilience of national economies, linking these to the EU priorities. This facility will be embedded in the European Semester. It will be equipped with a grant facility of up to €310 billion and will be able to make up to €250 billion available in loans. Support will be available to all Member States but concentrated on the most affected and where resilience needs are the greatest.
- A €55 billion top-up of the current cohesion policy programmes between now and 2022 under the new REACT-EU initiative to be allocated based on the severity of the socio-economic impacts of the crisis, including the level of youth unemployment and the relative prosperity of Member States.
- A proposal to strenghten the Just Transition Fund up to €40 billion, toassist Member States in accelerating the transition towards climate neutrality.
- A €15 billion reinforcement for theEuropean Agricultural Fund for Rural Development to support rural areas in making the structural changes necessary in line with the European Green Deal and achieving the ambitious targets in line with the new biodiversity and Farm to Fork strategies.
2. Kick-starting the EU economy by incentivising private investments:
- A new Solvency Support Instrument will mobilise private resources to urgently support viable European companies in the sectors, regions and countries most affected. It can be operational from 2020 and will have a budget of €31 billion, aiming to unlock €300 billion in solvency support for companies from all economic sectors and prepare them for a cleaner, digital and resilient future.
- Upgrade InvestEU, Europe’s flagship investment programme, to a level of €15.3 billion to mobilise private investment in projects across the Union.
- A new Strategic Investment Facility built into InvestEU– to generate investments of up to €150 billion in boosting the resilience of strategic sectors, notably those linked to the green and digital transition, and key value chains in the internal market, thanks to a contribution of €15 billion from Next Generation EU.
3. Addressing the lessons of the crisis:
- A new Health Programme, EU4Health, to strengthen health security and prepare for future health crises with a budget of €9.4 billion.
- A €2 billion reinforcement of rescEU, the Union’s Civil Protection Mechanism, which will be expanded and strenghetend to equip the Union to prepare for and respond to future crises.
- An amount of EUR€94.4 billion forHorizon Europe, which will be reinforced to fund vital research in health, resilience and the green and digital transitions.
- Supporting Europe’s global partners through an additional €16.5 billion for external action, including humanitarian aid.
- Other EU programmes will be strengthened to align the future financial framework fully with recovery needs and strategic priorities. Other instruments will be reinforced to make the EU budget more flexible and responsive.
Reaching a rapid political agreement on Next Generation EUand the overall EU budget for 2021-2027 at the level of the European Council by July is necessary to give new dynamism to the recovery and equip the EU with a powerful tool to get the economy back on its feet and build for the future.
THE POLICY FUNDAMENTALS OF THE RECOVERY
Relaunching the economy does not mean going back to the status quo before the crisis, but bouncing forward. We must repair the short-term damage from the crisis in a way that also invests in our long-term future. All of the money raised through Next Generation EU will be channelled through EU programmes in the revamped long-term EU budget:
The European Green Deal as the EU’s recovery strategy:
- A massive renovation wave of our buildings and infrastructure and a more circular economy, bringing local jobs;
- Rolling out renewable energy projects, especially wind, solar and kick-starting a clean hydrogen economy in Europe;
- Cleaner transport and logistics, including the installation of one million charging points for electric vehicles and a boost for rail travel and clean mobility in our cities and regions;
- Strengthening the Just Transition Fund to support re-skilling, helping businesses create new economic opportunities.
Strengthening the Single Market and adapting it to the digital age:
- Investing in more and better connectivity, especially in the rapid deployment of 5G networks;
- A stronger industrial and technological presence in strategic sectors, including artificial intelligence, cybersecurity, supercomputing and cloud;
- Building a real data economy as a motor for innovation and job creation;
- Increased cyber resilience.
A fair and inclusive recovery for all:
- The short-term European Unemployment Reinsurance Scheme (SURE) will provide €100 billion to support workers and businesses;
- A Skills Agenda for Europe and a Digital Education Action Plan will ensure digital skills for all EU citizens;
- Fair minimum wages and binding pay transparency measures will help vulnerable workers, particularly women;
- The European Commission is stepping up the fight against tax evasion and this will help Member States generate revenue.
BUILDING A MORE RESILIENT EU
Europe must enhance its strategic autonomy in a number of specific areas, including in strategic value chains and reinforced screening of foreign direct investment. To increase crisis preparedness and crisis management, the Commission will reinforce the European Medicines Agency and give a stronger role to the European Centre for Disease Control (ECDC) in coordinating medical responses in crises.
The recovery must unequivocally be based on fundamental rights and full respect of the rule of law. Any emergency measures must be limited in time and be strictly proportionate. The Commission’s assessment will be included in the first report under the rule of law mechanism.
We can and must learn the lessons from this crisis, but this can only be done by involving our citizens, communities and cities. The Conference on the Future of Europe will play an important role in further strengthening Europe’s democratic foundations in the post-coronavirus crisis world.
RESPONSIBLE GLOBAL LEADERSHIP
The EU is committed in leading international efforts towards a truly global recovery, notably though joint coordination with the United Nations, the G20 and G7, the International Monetary Fund, the World Bank or the International Labour Organisation. The EU will continue working particularly closely with its immediate neighbourhood in the East and South and its partners in Africa.
The Joint Statement of the Members of the European Council adopted on 26 March 2020 called on the European Commission to develop a coordinated exit strategy, a comprehensive recovery plan and unprecedented investment to allow a normal functioning of our societies and economies and get to sustainable growth, integrating inter alia the green transition and the digital transformation. On the basis of this mandate, on 15 April the Presidents of the Commission and the Council presented, as a first step, a Joint European Roadmap towards lifting Covid-19 containment measures. The package presented today, based on a revamped proposal for the next long-term EU budget and the updated Commission Work Programme for 2020, addresses the second part of the mandate, namely the need for a comprehensive recovery plan.
The EU has already delivered a coordinated and powerful collective response to cushion the economic blow of the coronavirus crisis. We have relaxed our fiscal and state aid frameworks to give Member States room to act. We are using every available euro in the EU budget to support the healthcare sector, workers and businesses, and mobilising finance from the markets to help save jobs.
Will Gulf States Learn From Their Success in Handling the Pandemic?
The economic fallout of the coronavirus pandemic for Gulf states has done far more than play havoc with their revenue...
Foreign intervention in Libya
Since the ouster of Muammar Gaddafi in 2011, Tripoli has transformed into an appalling sight of consistent injustice, rising fundamentalism...
Coronavirus in a Time of Chimeras
As the global COVID-19 scourge appears to recede, questions remain over the source and morphology of a virus that had...
Afghan Peace Process and Indian Involvement
The Afghan peace process initiated in 2018, marred with episodic halts, finally witnesses an agreement between the US and Taliban...
Local treasures: Nepal’s mountain crops drive biodiversity and economic growth
Remote mountainous regions of Nepal are harsh places in which to survive and make a living. Economic, social and environmental...
The Coronavirus and Conflicts in the Middle East
The question of the political and socioeconomic consequences the COVID-19 pandemic will have for global development has prompted heated analytical...
World Must React to Hindutva Terrorism
The Hindu ideology has transformed into the crude discourses of anti-Muslim platitudes and therefore, existing language of local stereotypes in...
South Asia3 days ago
Youm-e-Takbeer: When A Responsible Nuclear Power Was Born
Americas2 days ago
Murder of George Floyd – On Camera Murder by Neo Ku Klux Klan
Americas3 days ago
What do Donald Trump and ultra-conservative Pakistani imams have in common?
Middle East2 days ago
Palestine Ends All Agreements with Israel and the United States
Intelligence2 days ago
CIA National Intelligence Estimates on the Cross-Strait and Sino-Russian Relations
Urban Development2 days ago
Vietnam Can Lead ASEAN through the Smart Cities Network Vision
EU Politics3 days ago
Enabling Europe to lead the green and digital transition
Newsdesk3 days ago
World Bank: Belarus’ Economy Can Face a Severe Shock