| Since the 1990's the dominant paradigm on economic thinking has been called neo-liberalism. Neo-liberalism advances an argument that market solutions offer the best hope for economic growth and development. However, a bourgeoning literature shows the fallacy of neo-liberal solutions, particularly for the poorest sections of our societies. In fact, some of the criticisms that have been expressed against neo-liberalism have been taken up by institutions that once championed a neo-liberal agenda. Critical perspectives on neo-liberal policies are an important aspect of understanding the prescriptions of more government, less government and open trade. Challenging neo-liberalism however requires progressive civil society organisations to move criticism towards developing alternatives.
Alternative economic perspectives have emerged with a specific focus on poverty eradication in developing countries. Broadly part of a developmental paradigm, this paradigm has sought to indicate the problems of market solutions to poverty, as well as developing alternatives for government spending, taxation, trade and industrial policy. The alternatives perspectives come from a range of actors in civil society, academia, and political parties, feminist and environmental groups. The proposals developed are often exciting and insightful. However, one of the challenges facing this group - which is extremely diverse - is developing proposals that are credible and evidence based.
Trade unions have attempted to meet the challenge of developing economic alternatives often within a developmental paradigm. This has included development of broad civil society coalitions, negotiating social agreements and mass mobilisation. Trade union activity in this area has however been criticised by social movements for being too narrowly focussed on short term gains for members, or even more harshly, that trade unions have become part of the problem as they participate in institutions of economic decision making. Nonetheless, trade unions across the globe have the challenge of developing alternatives, and ensuring that their economic alternatives are focussed on the broader issue of poverty eradication in developing countries.
This page focuses on three areas of building economic alternatives. These are: budgets and the poor; privatisation and the poor and trade and industrial strategy.
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Extending Social Security to Developing Countries, Particular Emphasis on Healthcare and Informal Economy Workers, A literature review by Isobel Frye (GURN Discussion Paper No. 1, Oct 05)
Key Reading
Budgets and the poor
Budget as if people matter
The concept of "budgets as if people mattered" is inspired by a large number of initiatives that have emerged around the world during the last fifteen years to examine public budgets through a poverty or gender lens. As many of these initiatives are participatory, they are also useful in demonstrating the potential for democratizing decision-making processes and transforming economic frameworks and policies into instruments of people-centred development. The paper begins by laying out a contextual framework and briefly reviewing progress to date on the commitments made in Copenhagen and Beijing. It then looks at the implications of globalization processes and the East Asian Crisis for rethinking macroeconomic policies. A general discussion of people-centred budgets is followed by a description and analysis of a variety of pro-poor and gender-sensitive budget initiatives. The paper also addresses the international dimensions of people-centred budgeting. It concludes with a discussion of lessons learned and suggestions for next steps.
People's Budget by the Congress of South African Trade Unions (COSATU), the South African National NGO Coalition (SANGOCO) and the South African Council of Churches (SACC)
Accelerated transformation means eradicating poverty in one generation. The purpose of this document is to stimulate debate, discussion and critical comment on the development path in South Africa in order to achieve this goal. In so doing, we hope to impact on the thinking and actions of the democratic government. The third Peoples Budget presents proposals for eradicating poverty. At the centre of these proposals is a recognition that eradicating poverty requires government to both spend more and spend well.
Privatisation and the poor
Public Services International Research Unit: Educational Materials on Energy and Water
Materials designed to provide a flexible set of modules and activities on privatisation and restructuring in the energy and water sectors for use by trade union educators. Many of the individual modules and activities could also be adapted for use by trade unionists working in other sectors.
Alternatives to Privatisation
Summary of Conference held on the 23-24 August 2001, hosted by the National Labour and Economic Development Institute (NALEDI): The conference summary offers an insight into South African alternatives to privatisation. Unionist will find that the arguments made in the conference summary are similar to those made across the developing world.
Privatisation in Africa
In February 2002, labour researchers from Ghana, Nigeria, Zambia, Zimbabwe, South Africa and Namibia met in Windhoek, Namibia to discuss their countries' experiences with privatisation and possible policy alternatives. They participated in public panel discussions and debates with Namibian trade unions. This booklet wants to "bring home" Africa's experiences with privatization in a 'popular' format. All too often policy debates are taking place only among the political and economic elites of our countries while the people who are directly affected by such policies have no (or very little) say. (Available in Portuguese)
Trade and Industrial Strategy
The Multilateral Trading System: A Development Perspective
The Third World Network has recently produced a detailed report on the WTO and the multilateral trading system, which was commissioned by the UN Development Programme, as one of three papers that will input into the UNDP's own trade policy paper (which is under preparation).The TWN report has 8 parts: an executive summary, six chapters (describing trade policy, evolution of the system, its operations, problems facing developing countries, proposals on specific issues, and proposals for the longer term), and a Postscript on the Doha Ministerial Conference.
Building alternatives to neo-liberal globalisation: The challenges facing the New Partnership for Africa’s Development (NEPAD)
The African Labour Research Network (ALRN) hosted a conference tilted "lternatives to neo-liberal globalisation: challenges facing NEPAD". The objective of the conference was to consolidate the many separate assessments of NEPAD into one collective evaluation. Pertinent to the discussion is the role of trade unions in contesting and complementing aspects of NEPAD. This booklet contains papers of argument presented by constituencies from labour and other social movements. The conference, an African-owned event, was an important assessment and strengthened the African labour movement's contribution to the process of African development and the global response to neo-liberalism.
Further Information
Budgets and the Poor
National Labour and Economic Development Institute
Canadian Centre for Policy Alternatives
Integrated social development centre (isodec), Ghana
South African Poverty Network
Privatisation and the Poor
National Labour and Economic Development Institute
Africa Labour Research Network
Public Services International Research Unit
World Development Movement
Trade and Industrial Strategy
Alternative Information and Development Centre (AIDC)
The Development Group for Alternative Policies
Forum Social Mundial
Gender and Trade Network in Africa (GENTA)
Global Exchange
Global Policy Network
Institute for Agriculture and Trade Policy
International Centre for Trade and Sustainable Development (ICTSD)
International Gender and Trade Network (IGTN)
New Economics Foundation
Public Citizen
South Centre
Third World Network
Third World Network-Africa
Worldwide Alternatives
50 Years is Enough
Last update: 8 November 2005
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Global Union Research Network - GURN