Employment in a globalised world

Workers should enjoy the right to join a trade union and participate in collective bargaining on wages and working condition. Photo: Star

We live in a world where millions of human beings are on the verge of being fired or must accept part-time work due to a drop in their income.
They become pawns, initially interchangeable, subsequently useless and finally invisible in this new world devoted to technology and characterised by trade and international exchanges.
In many parts of the world unemployment or the insufficient amount of work available to workers has become the major problem as the accentuation of the poverty.
In some countries where income level varies widely and social exclusion is widespread, the shortage of job is combined with another problem: the ever increasing number of the workers who earn too little to survive.
Women and the young bear the brunt of this phenomenon. The creation of the world market has made it possible to increase production of goods and the number of job worldwide, but it can also lead to uncertainty and insecurity from the viewpoint of the work.
Indeed even if new technologies create job and improve product quality, they sometimes create unemployment as well.
Consequently the creation of jobs must be guaranteed. One of the best means of achieving this goal is to increase production and income throughout the world. Governments should continue to focus on their economic, social and employment policies in the search for full productive employment to ensure more sustainable and lasting economic growth.
Full employment requires a stable political, economical and social framework, i.e. policies capable of creating economical and financial stability, a legal and institutional framework, which guarantees property rights, freedom of association and respect for contracts, and competent, efficient and responsive public administration.
We must also recognise that employment structure has changed. New forms of employment are emerging as people are changing job frequently and working days are shorter and working hours are more flexible.
Accordingly, there are needs for new policies to guarantee job security, social protection and labour market flexibility via collective bargaining and amendments to labour laws.
Finally, the fundamental rights of workers to join a trade union without hindrance and discrimination and associate with others to participate in collective bargaining on wages and working condition should be ensured.
Forced labour or any form of illegal work related discrimination must be banned.
In recent years, a growing trend of globalisation of economies has been seen, characterised by a sweeping liberalisation of international trade, increased flow of direct investment, globalisation of the money market as well as the confirmation of the role of international economic institutions in financial, monetary and commercial state policy.
Child labour and migrant workers are amongst the issues to be reviewed in the light of new economic context in order to find solution.
In recent times, the flow of fund has increased with the help of the integrated global production system.
These have generated considerable growth in the trade volume not only in foreign currencies but also in derivatives.
Industrialised countries fear the loss of jobs and relocation of production units of export sectors, especially of labour intensive industries, toward developing countries.
These concerns are becoming a reality for developing countries and those in transition because of exorbitant social costs, most often tied to economic liberalisation, and the switch to market economies, especially in the light of the present economic and global political condition.
All developing countries are not only facing internal and external financial deficit problems, debt servicing, growing unemployment, population growth and growing poverty, but they also have to adapt to this new global situation characterised by the ruthless regional and international competition.
Present globalisation process may promote production and employment worldwide. It is also true that increased international trade and investment flows may lead to expansion of the market and a better distribution of world economic resource.
To materialise fully, these prospects require international measure to reinforce inter-state economic relation and openness. This could be in the form of international aid to developing countries to reinforce their competitiveness in the global economy and through the eradication of inequality and poverty at the world level.
Economic globalisation has a significant impact on the labour market, especially in developing countries and those in transition.
Most of these countries are adopting economic recovery and structural adjustment programmes to enable them to switch to the reduced role for the private sector. They are also shifting from protectionism to international markets.
In such a context, these countries must liberalise their trade and currency as well as undertake a number of corrective measures for micro economics to overcome price and other distortions.
They must also ensure a better distribution of resources to increase their international competitiveness and take maximum advantage of trade development and growth as well as international economic investment flows.
In all probability, the implementation of these reforms will lead to increased growth rates and faster productive job creation.
However, it is likely that the corrective process will generate high social costs, as is the case of economics of transition.
These often weaken macro economics and reduce employment demand, which in turn result in a drop in real wages and increase the number of low-paid jobs in the unofficial sector or unemployed workers due to the lack of necessary flexibility to move from one productive sector to another. The following measures should be taken to boost economic growth and employment in developing countries:
– Avoid peremptory and misguided policies on some targets such as microeconomic stabilisation, financial deficit reduction and balance of payments.
– Adopt an appropriate trade liberalisation strategy, as radical and wide-spread liberalisation may entail high social costs due to the market competitiveness of certain exports. In developing countries, this competitiveness may suffocate nascent industries, and thus, lead to high unemployment.
– Implement necessary programme to better allow local producers to the new economic situation generated by the economic recovery.
– Redoubled efforts must be made to develop rural infrastructure, credit systems and guidance services.
Globalisation is a significant influence on labour market developments in many countries in the world or this influence may increase in the future.
A more realistic and positive view is clearly required. Moreover, it is important to recognise that both international and national policies can still make a decisive difference in increasing the benefits and minimising the costs.

The writer is a former deputy speaker and the chairman of Committee on Government Assurances.