Burrow noted that the IMF’s chief economist revealed in a
report released on Tuesday that the Fund’s economic projections had
underestimated the recessionary impact of austerity policies applied by many
governments since 2010, as a result of which ten European countries have
entered into a “double-dip” recession in 2012.
Said Burrow: “The IMF report confirms warnings that unions
have made to the IFIs and the G20 for the past two years that premature fiscal
consolidation would produce a renewed global slowdown. It is high time
that governments reverse course and support green investments, funding of
quality public services such as health and education and other employment
creation initiatives.”
Burrow also encouraged the IFIs to move forward in their
commitments to support the establishment of social protection floors and to pay
greater attention to the employment impact of their policies. She stated
that they should also take steps to establish adequate regulation of the private
financial sector so as to avoid recurrence of financial crises and instead
ensure that the financial sector supports recovery by providing sufficient
credit to real economy investments.
In light of recent decisions by several governments to put
in place financial transactions taxes (FTT), Burrow said: “The IMF should offer
its technical assistance for the coordinated implementation in as many
countries as possible.” The ITUC has supported the FTT as a means to
finance job-intensive recovery projects and public services, development goals
and climate-finance commitments.
The ITUC and Global Unions produced a statement containing
their detailed proposals which they presented to the IFIs at the occasion of
their annual meetings.
Web link for Global Unions’ statement to the annual meetings
of the IMF and World Bank (Tokyo, 12-14 October 2012): http://www.ituc-csi.org/statement-by-global-unions-to-the,12122.html
