Argentina emerging from crisis Special Event International Labour Conference 14 June 2004 Copyright © International Labour Organization 2004 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Publications Bureau (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. 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Argentina emerging from crisis / Argentina saliendo de las crisis ISBN 92-2-016170-2 (print) ISBN 92-2-016173-7 (web) First published 2004 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. 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Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected] Visit our website: www.ilo.org/publns Printed by the International Labour Office, Geneva, Switzerland ii PREFACE On 14 June 2004, the InFocus Programme on Crisis Response and Reconstruction (IFP/CRISIS), together with the ILO Buenos Aires Office, Policy Integration Department and Lima Regional Office, and with the active participation of the Ministry of Labour, Employment and Social Security and representatives of workers’ and employers’ organizations of Argentina, organized a special event on the theme of “Argentina Emerging from Crisis”. This event took place under the auspices of the 92nd Session of the International Labour Conference and comprised three parts: the inauguration of an exhibition on the theme “Argentina: Confronting the Impact of Globalization”; a round table discussion, with contributions from prominent figures from Argentina and abroad, on the theme “Argentina: from Crisis to New Opportunities for Decent Work”; and the signing of a Memorandum of Understanding to launch the National Decent Work Programme. The event included an examination of the events leading up to the crisis and the latter’s socio-economic consequences, as well as the responses put forward by the Argentinian authorities with the collaboration of the social partners and technical assistance from the ILO. This also provided the opportunity to highlight the role of Decent Work as part of an effective response to the crisis and for achieving sustainable economic and social development, social peace, democracy, and a fair globalization that benefits all countries and individuals. Argentina is the country that is most explicitly integrating Decent Work into its development strategy, by making it an integral component of its policies and actions. This report provides a detailed summary of the presentations, and highlights their central themes and conclusions. Thanks are due to all the speakers for their valuable contributions to this event: the Minister of Labour, Employment and Social Security, Carlos Tomada; the representatives of the workers and employers of Argentina, Rodolfo Daer and Daniel Funes de Rioja; the economist Richard Freeman; the President of the 92nd Session of the International Labour Conference, Ray Guevara; and from the ILO, the Director- General, Juan Somavia; the Director of the Regional Office for Latin America and the Caribbean, Agustín Muñoz; the Director of the Policy Integration Department, Gerry Rodgers; the Director of the Recovery and Reconstruction Department, Rizwanul Islam; the Director of the ILO Office in Buenos Aires, Ana Lía Piñeyrua; and the Director of IFP/CRISIS, Eugenia Date-Bah. The event’s resounding success showed the interest in Argentina’s efforts to recover from the crisis in a way that gives priority to social needs, as well as the will and commitment of the ILO to continue giving its support. Daniel Martinez Ana Lia Piñeyrua Gerry Rodgers Eugenia Date-Bah Regional Director a.i. Director Director Director RO Lima ILO Buenos Aires INTEGRATION IFP/CRISIS iii GLOSSARY “AREA” Programme Support to Employment Reactivation in Argentina Programme CGT General Confederation of Labour “CRISIS” Programme Tackling Decent Work Challenges in the Argentinian Crisis ECLAC Economic Commission for Latin America and the Caribbean EPH-INDEC Permanent Households Survey – National Institute for Statistics and Censuses GDP Gross Domestic Product IFP/CRISIS InFocus Programme on Crisis Response and Reconstruction ILC International Labour Conference ILO International Labour Organization IMF International Monetary Fund IPEC InFocus Programme on Child Labour MTESS Ministry of Labour, Employment and Social Security OAS Organization of American States PJJH Unemployed Men and Women Heads of Household Programme RAF Rapid Action Fund SMEs Small and medium-sized enterprises WB World Bank WTO World Trade Organization UIA Industrial Union of Argentina iv TABLE OF CONTENTS PREFACE…………………………………………………………………… iii GLOSSARY………………………………………………………………….... iv EXECUTIVE SUMMARY…………………………………………………….. vii INTRODUCTION……………………………………………………………..... 1 PART I. INAUGURATION OF THE EXHIBITION…………………………… 3 OPENING…………………………………………………………………… 4 Riswanul Islam…………………………………………………………….. 4 Eugenia Date-Bah…………………………………………………………… 4 Agustín Muñoz……………………………………………………………… 5 OPENING OF THE EXHIBITION………………………………………… 6 Ana Lía Piñeyrua…………………………………………………………… 6 CLOSING…………………………………………………………………… 9 Carlos Tomada……………………………………………………………… 9 PART II. ROUND TABLE………...…………………………………………… 11 Gerry Rodgers…………………………………………………………........ 12 Richard Freeman…………………………………………………………..... 13 Rodolfo Daer……………………………………………………………........ 14 Daniel Funes da Rioja……………………………………………………… 15 Carlos Tomada....................................................................................... 16 Ray Guevara.......................................................................................... 18 Juan Somavia........................................................................................ 19 PART III. MEMORANDUM OF UNDERSTANDING………..………………. 21 ANNEXES ANNEX I. Figures…………………………………………………………… 23 ANNEX II. Text of the Memorandum of Understanding….………….…. 27 ANNEX III. List of Participants…………………………………………….. 31 v vi EXECUTIVE SUMMARY On 14 June 2004, under the auspices of the 92nd Session of the International Labour Conference, the InFocus Programme on Crisis Response and Reconstruction (IFP/CRISIS), together with the ILO Office in Buenos Aires, Policy Integration Department and Regional Office in Lima, organized a special event on “Argentina Emerging from Crisis” focusing on measures adopted within the framework of Decent Work in response to the serious economic and financial crisis that began in 2001. The event began with the inauguration of an exhibition on “Argentina: Confronting the impact of globalization”. This was followed by a round table discussion on the subject of “Argentina: From Crisis to new Opportunities for Decent Work”, with contributions from the Minister of Labour, Employment and Social Security, Mr. Carlos Tomada; the economist Richard Freeman; the representative of Argentina’s employers’ organizations, Mr. Daniel Funes de Rioja; the representative of Argentina’s workers’ organizations, Mr. Rodolfo Daer; the President of the 92nd Session of the International Labour Conference, Mr. Ray Guevara; and the Director-General of the ILO, Mr. Juan Somavia. The round table was chaired by Mr. Gerry Rodgers, Director of the ILO’s Policy Integration Department. The inclusion of this event under the auspices of the International Labour Conference and the high attendance testify to the importance of the subject. The case of Argentina and the positive results so far achieved in bringing about recovery, provide a crucial example of how the principles of social justice defended by the ILO can be applied in a specific crisis and how effective they can be. Much remains to be done if full recovery and sustainable and equitable development are to be achieved, and this will require close cooperation between institutions, the various socio-economic actors and the ILO. Following