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Highlights

PSI’s Campaign on Asian Development Bank Violeta P. Corral October 2011. Highlights. ADB is an IFI. International financial institution (IFI) founded in 1966 Lending operations focused in Asia-Pacific $17B total in 2010 Members are 67 governments

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Highlights

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  1. PSI’s Campaign on Asian Development Bank Violeta P. Corral October 2011 Highlights

  2. ADB is an IFI • International financial institution (IFI) founded in 1966 • Lending operations focused in Asia-Pacific • $17B total in 2010 • Members are 67 governments • 48 from Asia-Pacific & 19 from outside • Large shareholders are Japan, PRC, India, Australia, US, Canada • Large borrowers are PRC, India, Pakistan, Indonesia

  3. Major Threats • ADB loans / TAs, policies: Conditionalities tied to sector reforms, restructuring, privatization, PPPs • Power reforms: Philippines, Indonesia, Bangladesh, Pakistan, India (Madya Pradesh, Uttaranchal, Bihar, etc) • Water reforms: Nepal, Sri Lanka, Indonesia, etc • ADB’s Strategy 2020: ADB will increase lending to private sector operations to 50% of total by 2020 • ‘Non-sovereign approvals’ as % of total ADB lending: • 1966: 0 • 1999: 3% • 2008: 12% • 2010: 24% • 2020: 50%

  4. Major Opportunities • Poverty reduction & “inclusive growth” is ADB’s avowed goal & framework • Social & environmental policies are in place • Information disclosure • Consultation & participation • Safeguard policies • Accountability (“Inspection function”) • Core Labor Standards / Social Protection

  5. CLS / Social Protection • ADB’s 2001 Social Protection Strategy • ADB’s 2006 CLS Handbook • ADB commits to “comply with CLS in design and formulation of its loans” • ADB “formally adopted CLS as part of its 2001 Social Protection Strategy’ • “CLS have been an integral part of ADB’s development mission”

  6. CLS in ADB operations Labor market assessment Country strategy and Programs IPSA, Labor consultants Pre-Project Design Loan negotiations, Bidding documents Project Design Compliance Monitoring, Consultation process, Capacity building on CLS Project Implementation

  7. PSI-APREC Resolution on ADB (Sydney, April ‘06) • “Engage ADB and develop and implement a strategy that includes: • Regular PSI-ADB dialogue on poverty reduction, QPS and core labor standards (CLS) • Create a Labor Desk at ADB • Build union capacities to engage ADB • Joint PSI-ADB research studies on impact of ADB projects • Work with other labor networks and groups already engaging ADB.”

  8. Key PSI messages • Privatization, PPPs, deregulation policies undermine QPS, increase costs (e.g., electricity, water), weaken governance (Transparency, Accountability, Participation), lead to precarious work • ADB must strengthen monitoring and compliance of trade union rights, Core Labor Standards (CLS) • ADB should support public investments in QPS • ADB should consult with unions

  9. PSI campaign strategies (to date) • Regular dialogue, info exchange with ADB • Lobby for Labor Desk, trade union secondment at ADB • Capitalize on role and voice of PSI unions • Build unions’ capacity to engage ADB thru education, PSI Toolkit, etc (re ADB projects, policies, etc) • Submit comments on ADB policy reviews • Research, field missions on impacts of ADB projects • Engage ADB’s key donors (Japan, Australia, EU) • Solidarity with other GUFs, NGOs • Cooperation with ILO • ‘Localize’ dialogues in 5 countries

  10. Modes of engagement • 1. Annual dialogue at ADB-HQ (Manila) – since 2005 • With BWI (& FES, ALNI) (2009) • With ITUC-AP, GUFs (2009) • With BWI & UNI (2011) • 2. Campaign at ADB Annual Meetings / AGM – since 2006 • Jointly with BWI & UNI – since 2009 • Lobbying ADB Pres. Kuroda, delegations on Labor Desk, FTT, etc • Joint forums with ADB: • CLS (2007-08) • Global Economic Crisis (2009) • Workers & Unions in ADB Operations (2010) • Climate Change, Social Protection (2011) • PSI forums at ‘outside’ NGO events • Power, water (2007) • Power (2009)

  11. Modes … • 3. ADB Campaign Capacity-Building/Education Workshops • PSI (sub)regional meetings - since Dec 2004 • Hyderabad, India (2006) • 5 country pilots – since 2010 • 4. Submissions to ADB policy reviews • Water Policy (2005) • Safeguards Policy (2008); Jointly with BWI (2009) • Accountability Mechanism (2010) • 5. Joint PSI-ADB research • TOR agreed with ADB-RSDD, South Asia Dept on “Labor Impact Assessment in ADB Power Project in Madya Pradesh” (May 2008) • ADB backed out due to refusal of India Govt • PSI went ahead with field research (Sep 2008) • PSI ‘Report Card’ on Madya Pradesh: “Very Poor” • Updated TOR (Aug 2009) • New discussions on ‘green jobs & climate change’ (2011)

  12. Modes … • 6. Initiating Country-level dialogues – since 2010 • Philippines – water • India / Indonesia – power • Mongolia – health • Tonga – SOE reforms • 7. PSI participation in ADB workshops • Enterprise restructuring (2006) • Consultation on Safeguards Policy (2008) • Conditional Cash Transfer (2009) • Consultations on Accountability Mechanism (Jak, Sydney, Mla, 2010) • Social Protection (2010, 2011) • Water Twinnings/WOPs (May, Oct 2010) • Labor, Trade, Inclusive Growth (2011) • 8. ADB participation in PSI meetings • APREC (2006) • QPS Workshop (2008) • ‘Insight Thursday’ (Jan, Sep 2011) • APRECON (2011)

  13. PSI / GUFs Campaigns at ADB Annual Meetings • 2006 (Hyderabad): PSI-APREC resolution on ADB • 2007 (Kyoto): Supporting CLS in ADB projects • 2008 (Madrid): Mainstreaming CLS in ADB projects • 2009 (Bali): Addressing impacts of crisis on workers; Questioning ADB’s Strategy 2020 • Also called for International Solidarity Levy (ISL) & Financial Transaction Tax (FTT) to finance QPS • 2010 (Tashkent): No post-crisis recovery until people get decent work • “Very Poor” score of ADB’s Madya Pradesh power project • 2011 (Hanoi): Green jobs & climate change, Social Protection Strategy review, CLS •   CREATE LABOR DESK AT ADB

  14. Upcoming ADB Annual Meetings • 2012 : Manila, Philippines • 2013: Delhi, India • 2014: Kazakhstan

  15. May 06 AGM (Hyderabad, India):Meeting with ADB Pres. Kuroda

  16. May ’07 AGM (Kyoto, Japan): PSI-ADB Forum on Supporting CLS

  17. May ’07 AGM (Kyoto, Japan):PSI / CSO Forum on Water & Power Privatization

  18. Oct ’07 (ADB-Manila):International Workers Day of Action “Dear Pres. Kuroda”

  19. April ’08 (Manila):Nego on Joint PSI-ADB Research

  20. May ’08 (Madrid): PSI-ADB Forum on Mainstreaming CLS

  21. May ’08 (Madrid):Meeting with ADB Governors

  22. May ’09 (Bali): PSI-BWI-UNI Forum on Addressing Impacts on Workers of Global Economic Crisis

  23. May ’09 (Bali): Meeting with ADB Pres. Kuroda

  24. May ’09 (Bali): Questioning ADB’s Strategy 2020

  25. May ’09 (Bali): ADB Labor Desk: When?!?

  26. May ’10 (Tashkent): “No post-crisis recovery until people get decent work”

  27. May ’10 (Tashkent): Meeting with ADB Pres. Kuroda

  28. May ’10 (Tashkent): Scoring ADB on Madya Pradesh power project

  29. May ’10 (Tashkent): PSI-VP at ADB Forum on Women Empowerment

  30. May ’11 (Hanoi): PSI, BWI, UNI, ITF, EI Forums • Social Protection • With Plan Int’l, HAI • Climate Change & Greening Jobs • With WWF • * GUs participation: • 93 pax, including 44 pax from Vietnam unions • [total CSO pax = 203]

  31. May ’11 (Hanoi): Meeting with ADB Pres. Kuroda

  32. GUFs recommendations to ADB Pres. Kuroda (May 2011) • Compliance with CLS • Create a joint ADB-Global Unions Committee to harmonize ADB’s labor standards requirements with other MDBs • Invite senior ADB-staff to join the trade unions monitoring and investigating labor conditions of ADB projects • Review ADB’s 2001 Social Protection Strategy • Open and multi-stakeholder review of 10-year old policy • Create Financial Transaction Tax in Asia-Pacific • Create a Labor Desk at ADB

  33. PSI General Secretary talks on FTT at ADB-HQ (Sep 2011)

  34. High-level PSI Nordic trade union delegation meets with ADB in Manila & Jakarta (Sep 2011)

  35. Philippine Pilot • Promote public-public partnerships (PUPs) in ADB water projects • Field research for inputs to “Water District Development Sector Project” (due for ADB Board approval in 2011) • Lessons learned • AGWWAS (union) gained more knowledge about ADB loan procedures. • Field visits brought together the unions and management in a dialogue to address a shared issue • Several avenues for enhanced dialogue and potential partnerships were identified • Other areas for future cooperation

  36. Mongolia Pilot • 1st dialogue between ADB Resident Mission in Mongolia & Mongolian trade unions (2010) • PSI unions submitted proposals on ADB’s poverty reduction strategy, social insurance, social welfare & health legislation in Mongolia • PSI unions created Mongolian Trade Union Working Group on ADB to monitor CLS compliance, effectiveness of ADB projects

  37. Indonesia Pilot • 1st dialogue between ADB Resident Mission in Indonesia & PSI energy unions (2010)

  38. India Pilot • 1st dialogue between ADB Resident Mission in India & PSI energy unions, with ILO-South Asia (2010) 2011: • Increased level of discussions on ADB’s Energy Policy & projects • Increased involvement of ILO-South Asia/Delhi on CLS • No of participating Indian energy unions: 5  11

  39. Tonga Pilot • Tonga PSA will look into impacts of SOEs privatization & public sector reforms supported by ADB • Mainstream CLS • Organize awareness-raising forums

  40. Some Key Outcomes • Recognition / Accreditation of PSI in 2006 • PSI-ADB dialogue institutionalized 2005, initiated at country levels (5 pilots) in 2010 • Joint PSI-ADB research agreement (2008) • Increasing participation of PSI unions / other GUFs • e.g. from 9 PSI pax at AGM (2006) to 50 (2007) to 80 PSI++(2009) to 93 PSI++ (2011) • 130 trade union leaders from 58 affiliates in AsPac • Increasing knowledge & capacity of PSI unions to engage ADB • Increasing support from trade union solidarity support orgs (TUSSOs) • Increasing number of contacts, entry points at ADB • Support for Labor Desk from key donors (Japan, Australia)

  41. Commitment from ADB: Ongoing and Future Cooperation with PSI (“Enhanced Dialogue”) • Regular dialog and consultation since 2005 including in ADB Annual Meetings • Joint research, subject to concurrence from ADB member government • Dissemination of PSI reports and information within ADB. • Assistance to PSI in coordinating requests for meetings with resident missions and project officers. • Sharing of views and information on a number of projects: • Philippines: Water Supply • Mongolia: Health Services • Indonesia: Energy • India: Energy • Tonga: Public Enterprise

  42. Continuing Challenges • Create Labor Desk at ADB • PSI secondment • Lack of consultation of unions in ADB projects • Absence of strong monitoring & enforcement mechanism at ADB for CLS compliance • Decreasing ADB financing to public sector • Coordination, Resource mobilization among GUs • File a strong case at ADB’s ‘inspection’ mechanism

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