Check against Delivery


Remarks of Director-General Juan Somavia
     China Employment Forum

    
Great Hall of the People
     Beijing, China
     28 April 2004
Vice Premier Huang Ju,
Minister Zheng,
Ministers and Distinguished Guests,
Friends,

     It is an honour to address you in this Great Hall and it is humbling to have a moment in its history. The ILO is very pleased to partner with the Ministry of Labour and Social Security in organizing this first-ever China Employment Forum.
    
     We are privileged to have with us Ministers, senior officials, business people, trade unionists, experts and academics from many countries who are here to share their policy and practical experience. At the same time, we look forward to learning from China’s approach to employment promotion and poverty reduction.
    
     Mr Vice Premier, thank you so much for the warmth of your reception here, I see it not simply as a gesture to me personally, but a reflection of your regard for the International Labour Organization.
    
     China was a founding member of the ILO in 1919. Seen from the perspective of your long and noble history, our Organization is young. But the ILO was created to confront the challenges of an old world torn apart and a new world in transition.
    
     We are an institution borne of the need to achieve stability in the midst of great transformation, to promote a just balance between the economic and the social, the rights of workers and the interests of the enterprise and to find consensus through the essential instruments of dialogues and tripartism.

    The ILO pioneered the notion that key voices of society – employers and workers – must be part of international and national level policy making on issues that affect the enterprise and the workplace.
    
     Our dialogue with China is based on enduring respect and the simple yet profound goal of improving people’s lives. As Premier Wen Jiabao has termed it: “putting people first” to build a well-off, or as you call it, xiaokang society.
    
     In our increasingly globalized world, China has chosen the path of modernization and engagement with the world and the global market system. True to its history as a great nation, China is shaping its own destiny, setting its own goals. In the process you are exercising important global influence.
    
     Your people have taken up the challenge of economic transformation—tapping the opportunities of the global market and embracing the technology that drives it.
    
     The intelligence and enterprising spirit of Chinese women and men has written a remarkable story in this dawn of the 21st century. A story of unprecedented economic growth, job creation and unparalleled progress in the global effort to reduce poverty.

    The pace of change is dramatic. For over a decade nowof growth in average output has grown at around 10 per cent per year leading to a sustained and rapid improvement in living standards of many workers. According to the World Bank’s latest estimates extreme poverty has fallen from about 360 million people surviving on $1 a day or less in 1990 to just over 150 million by the end of last year.

    In addition, China has become the locomotive of the economy of the East Asian region increasing its imports by 40 per cent. In 2003 18 percent of Korea’s, 12 per cent of Japan’s and about 7 per cent of ASEAN’s exports were to China. At a time when Europe, North America and Japan have had a slowdown, China’s expansion has helped to prevent a global recession.
    
     The many representatives from Asia and other countries attending our conference have come precisely because they know the future is in the making here in China. You have invited them to hear their ideas but they will also be listening intently to your plans.

    The ILO, sometimes called the world parliament of labour, is designed exactly for this role. The meeting place where the global community of work can come together to discuss common challenges, exchange experiences and find inspiration to develop new ways to increase employment, improve working conditions and raise productivity. Our agenda is the management of change.
    
     And change, particularly successful change, must deal with old problems and address new ones. And so it is with you. Large scale restructuring has shaken the economic and social foundations. Old forms of security and protection are no longer there. New questions about job stability and employment relations have emerged.

    And there are growing divides-- between rural and urban, coastal areas and interior provinces, women and men, educated and uneducated, young and old. All of this is having profound effects from the highest levels of government to villages in the farthest reaches.
    
     We see it in statistics. The dislocation caused by the shedding of jobs in state-owned enterprises. More than one out of three rural workers underemployed. Some 100 million rural migrants in precarious jobs. And the 16 per cent increase in workplace deaths in industry and mining reported for 2003.
    
     We know these statistics translate into real lives and real strain and pain on families and communities.
    China is not alone in facing such challenges. But we know that managing this process equitably and efficiently within a stable environment will have far reaching consequences not only for the people of China, but for the world economy as a whole.

    Peace and world stability will depend in great measure on the future path of globalization. Earlier this year, the World Commission on the Social Dimension of Globalization released its report after two years of study. It called for a fair globalization that creates opportunities for all.

    We were honoured that the distinguished economist, Lu Mai, accepted our invitation to serve as a Commission member.

     The World Commission found that, even though the potential of globalization is enormous, the benefits have not reached enough people. The experience of some countries is that the pattern of growth associated with globalization can reduce poverty, but increase inequality. At the same time, globalization, democratisation and the new communication and information technologies have made people all over the world more aware of their rights, their voice, their identities, and these rising inequalities.

    The present model of globalization faces a crisis of legitimacy because it is failing to deliver on the basic hopes and aspirations of the many countries and people who are currently excluded from its benefits. I see this all over the world. The women and men who feel that they are not heard and their rights and needs are not always recognized. The dignity of people affected in so many ways by a lack of opportunities. All this leads to frustration and pent up social tensions.

    It is essential we address these questions which arise from the problems and successes of globalization. But as the Commission concluded, a Fair Globalization that creates opportunities for all is possible if we make it our goal.

    China has a central role to play. China is home to one-quarter of the world’s labour force and you are experiencing the impact of rapid transformation. What happens here touches every corner of the world.

    These are the challenges of globalization and addressing them is at the heart of the ILO’s decent work agenda, unanimously approved by all constituents of the ILO, governments, employer’s and worker’s organizations. Decent work links strategies for economic growth in open economies with people’s daily lives and aspirations.

    Our agenda is built around work and employment—protection when people cannot work, safety and health where they do. Decent work is also about dialogue, rights and common values recognized by the UN charter, the ILO Constitution and the ILO Declaration on Fundamental Principles and Rights at Work as basic guidance to the lives of people everywhere.
    
     Decent work allows individuals and groups to seize the opportunities of change as well as to deal with the stresses and tensions that accompany change. We see it as a mechanism of social stability—of channelling conflict into dialogue and consensus. Above all, decent work is a key political objective because it responds to the most widespread demand of people everywhere, and in all countries. It is truly a global goal.
    
     Three years ago, I was privileged to come to Beijing to sign a Memorandum of Understanding between China and the ILO based on this decent work agenda. The Memorandum was a clear signal of China’s desire to move in that direction in a Chinese context. The China Employment Forum is one of the activities that has developed out of our cooperation. To echo the words of Chinese leaders, it is part of our overall effort to achieve “social progress while striving for a comprehensive, harmonious and sustainable development.”
    
     Since then China and the ILO, with the support of many development partners, some of them here today, have started activities in more than a dozen programmes. On the ground studies in several cities and regions are identifying how to improve the environment for micro and small businesses. Human resource development in the special economic zones is another focus.

    New laws on health and safety at work and their implementation is a further area of collaboration. A new programme using the ILO’s global code of practice on HIV/AIDS and the workplace is underway. Pioneering efforts are being made to combat trafficking in women and children through an ambitious project with neighbouring countries of the Mekong river basin. And a series of workshops are investigating how ILO standards can help China’s efforts to tackle discrimination and forced labour.
    
     Over the course of the next three days, we will explore these issues in detail in terms of practical solutions. I would mention three areas.
    
     First, and fundamentally, the employment challenge is at the heart of this Forum. We will focus on issues such as accelerating the rate of the creation of decent jobs with productivity growth. Developing an efficient, equitable and unified labour market to ensure continued economic stability and sustainable economic growth.

    Promoting skills and the growth of the private sector, especially entrepreneurship and small enterprise development, which would serve as the major engine of job creation in both the rural and urban economies. Increasing productivity, incomes and living standards in rural areas.
    
     Second, we will also view the employment challenge through the lens of social protection. Finding ways to effectively and efficiently enlarge social security protection. And on this World Safety Day with activities in all continents, I am pleased that this Forum will also focus on the vital challenge of safety and health in the workplace.
    
     Third, we will explore employment through an orientation of social dialogue and rights. This includes

     · promoting equality of opportunity between women and men and for vulnerable groups, including ethnic minorities
     · Strengthening a unified labour market and making full use of the positive relationship between core labour standards and sustainable economic growth.
     · And also ways of solving labour conflicts through methods based on dialogue and full participation of those directly concerned.

    China has already acted strongly to put employment at the heart of policy within a market driven economy. This China Employment Forum can be a catalyst for examining how to maximize the potential of the domestic market and globalization.
    
     It offers China and the ILO an opportunity to review and strengthen our cooperation under the Memorandum of Understanding, focusing our efforts, deepening our dialogue, and achieving even greater impact. I must say that our work together has advanced through a positive path of mutual understanding and cooperation.
    
     Of course, one Forum cannot deliver decent work to a whole people, a whole country. We can show what can be done. We can be advocates. We can build partnerships. We can exchange experiences. But the choices are China’s to make.
    
     For our part, let me assure you that the ILO wishes to play a constructive role as you move forward on a challenging path of promoting sustainable development, equity and stability.

    We will be with you as you seek to balance economic dynamism with social stability, flexibility with security and cohesion while listening to and accommodating the many voices of the world of work.
    
    China has decided to put people first, we will accompany you in that quest.