The Troika – the European Central Bank (ECB), the European Commission, and the IMF – is dragging Europe into its second recessionin three years. The ECB by itself has the ability to end this crisis, by guaranteeing low interest rates on the sovereign bonds of countries such as Spain and Italy. Member governments would then be able to restore normal economic growth and employment.
But the ECB refuses to do this – partly because the Troika is using the crisis as an opportunity to force changes, especially in the weaker eurozone economies, changes that the people residing there would never vote for. These reforms include shrinking government, privatization, “labor flexibility”, and reduced public pensions.
Since, however, Europe has by far the largest banking system in the world, the eurozone crisis is also a significant drag on growth and employment throughout most of the world. This could easily do more damage if it is not resolved.
It is in this context that a struggle is taking place both within and between governments and international institutions over the economically and socially destructive policies in the eurozone. At the latest G8 summit in Camp David on Saturday, there were noticeable differences between Presidents Obama of the US and François Hollande of France, on the one hand, and Chancellor Angela Merkel of Germany, on the other, over the wisdom of continuing to push Europe deeper into recession through fiscal tightening (as the Troika is currently doing).
While there are signs that many IMF economists and even the leadership of the IMF are not happy with the Troika’s policies, the fund is not going to break with the Europeans on its board of directors. But there is one international institution that, because its governance structure includes labor unions, is sometimes able to take a more progressive stance on these vital issues.
That is the International Labor Organization (ILO), affiliated with the United Nations. The ILO is thus differentiated from such organizations as the IMF, the World Bank, or the OECD (Organization for Economic Co-operation and Development) – all of which have an enormous influence which tends to reinforce the status quo, or worse.
The ILO estimates that the world has lost 50m jobs since the world economic crisis and Great Recession began – and the Troika is adding to the toll. In 2009, the ILO proposed a “global jobs pact”, which picked up support from the UN and the G20, but with little result. Last year, it proposed a “social protection floor”, which also won international support, but again, not much effect.
On 28 May, the ILO will choose a new director general. The frontrunner is Guy Ryder, a former general secretary of the International Trade Union Confederation (ITUC). Last November, he secured the support of the workers’ group, comprising a quarter of the ILO electoral college, before his rivals were even known. There are also other candidates with regional support, such as Colombian Vice-President Angelino Garzón.
But there is one candidate who is most likely to try to harness the ILO’s potential to challenge the devastating economic policies that have caused so much unnecessary unemployment and suffering in the past four years. That is Jomo Kwame Sundaram of Malaysia, the only Asian candidate.
He is the Harvard-trained chief economist at the United Nations, also responsible for its technical cooperation programs. Reputedly behind the 2009 Stiglitz Commission report (pdf) on the crisis, Jomo has shown clear understanding not only of the causes of the current economic crisis, but also of the failure of the relevant government and international institutions to bring us out of it. He would also expose the fallacies of the labor market liberalization policies currently being touted as the solution. His track record indicates that he would provide the necessary leadership at the ILO.
Although the ILO’s efforts to establish international conventions to promote a “rights-based” agenda for labor can be helpful, they are ineffectual in the face of high unemployment. They are also far from sufficient to advance the cause of the billions of workers who are unemployed or facing increasing insecurity due to precarious employment, stagnating wages, and declining benefits. The prospects for increasing employment, and even wages, in the near future will depend, in large part, on the macroeconomic policies pursued by governments – especially those of the largest economies.
Until now, these have been going in the wrong direction – and the ILO needs to confront these policy failures head-on.
We’re not backing down in the face of Trump’s threats.
As Donald Trump is inaugurated a second time, independent media organizations are faced with urgent mandates: Tell the truth more loudly than ever before. Do that work even as our standard modes of distribution (such as social media platforms) are being manipulated and curtailed by forces of fascist repression and ruthless capitalism. Do that work even as journalism and journalists face targeted attacks, including from the government itself. And do that work in community, never forgetting that we’re not shouting into a faceless void – we’re reaching out to real people amid a life-threatening political climate.
Our task is formidable, and it requires us to ground ourselves in our principles, remind ourselves of our utility, dig in and commit.
As a dizzying number of corporate news organizations – either through need or greed – rush to implement new ways to further monetize their content, and others acquiesce to Trump’s wishes, now is a time for movement media-makers to double down on community-first models.
At Truthout, we are reaffirming our commitments on this front: We won’t run ads or have a paywall because we believe that everyone should have access to information, and that access should exist without barriers and free of distractions from craven corporate interests. We recognize the implications for democracy when information-seekers click a link only to find the article trapped behind a paywall or buried on a page with dozens of invasive ads. The laws of capitalism dictate an unending increase in monetization, and much of the media simply follows those laws. Truthout and many of our peers are dedicating ourselves to following other paths – a commitment which feels vital in a moment when corporations are evermore overtly embedded in government.
Over 80 percent of Truthout‘s funding comes from small individual donations from our community of readers, and the remaining 20 percent comes from a handful of social justice-oriented foundations. Over a third of our total budget is supported by recurring monthly donors, many of whom give because they want to help us keep Truthout barrier-free for everyone.
You can help by giving today. Whether you can make a small monthly donation or a larger gift, Truthout only works with your support.