HighlightsHighlights

PSI’s Campaign on Asian Development Bank

Violeta P. CorralOctober 2011

PSI’s Campaign on Asian Development Bank

Violeta P. CorralOctober 2011

• 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

ADB is an IFIADB is an IFI

Major Threats 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%

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%

Major Opportunities 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

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

• 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”

CLS / Social Protection CLS / Social Protection

Country strategy and Programs

Pre-Project Design

Project Design

Project Implementation

Labor market assessment

IPSA, Labor consultants

Loan negotiations,Bidding documents

Compliance Monitoring, Consultation process,

Capacity building on CLS

CLS in ADB operationsCLS in ADB operations

PSI-APREC Resolution on ADB(Sydney, April ‘06)

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.”

“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.”

Key PSI messagesKey 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

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

PSI campaign strategies (to date)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

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

Modes of engagementModes 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)

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)

Modes …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)

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)

Modes …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)

PSI / GUFs Campaigns at ADB Annual MeetingsPSI / 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

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

Upcoming ADB Annual MeetingsUpcoming ADB Annual Meetings

2012 : Manila, Philippines

2013: Delhi, India

2014: Kazakhstan

2012 : Manila, Philippines

2013: Delhi, India

2014: Kazakhstan

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

May ’07 AGM (Kyoto, Japan):

PSI-ADB Forum on Supporting CLS

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

Power Privatization

Oct ’07 (ADB-Manila):

International Workers Day of Action

““Dear Pres. Kuroda”Dear Pres. Kuroda”

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

May ’08 (Madrid):

PSI-ADB Forum on Mainstreaming CLS

May ’08 (Madrid):

Meeting with ADB Governors

May ’09 (Bali):

PSI-BWI-UNI Forum on Addressing Impacts on Workers of Global Economic Crisis

May ’09 (Bali):

Meeting with ADB Pres. Kuroda

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

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

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

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

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

CRITERIA SCORE

Compliance with CLS VERY POOR

Compliance with Related Labor Laws VERY POOR

Compliance with C&P VERY POOR

Compliance with Information Disclosure VERY POOR

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

May ’11 (Hanoi): PSI, BWI, UNI, ITF, EI Forums

1. Social Protection• With Plan Int’l, HAI

2. Climate Change & Greening Jobs• With WWF

* GUs participation: • 93 pax, including 44 pax from Vietnam

unions• [total CSO pax = 203]

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

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

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

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

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

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

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

Indonesia Pilot • 1st dialogue between ADB Resident Mission in

Indonesia & PSI energy unions (2010)

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

Tonga Pilot • Tonga PSA will look into impacts of SOEs

privatization & public sector reforms supported by ADB

• Mainstream CLS• Organize awareness-raising forums

Some Key OutcomesSome 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)

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)

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

Continuing ChallengesContinuing 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

• 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