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Since September 1999, the IFIs have recognized that poverty should be at the centre of their development policies. PRSPs are seen as a departure from the orthodox structural adjustment programs (SAPs) for which the Bretton Woods Institutions were known. While PRSPs have attracted a number of responses, both positive and negative, the international trade union movement gave the programs the benefit of the doubt. By participating in the PRSP discussions, the hope would be that the resultant document would be more responsive of trade union and other social needs. Trade unions in the PRSP countries were therefore called upon to ensure that they participate in program formulation, implementation, monitoring and evaluation.
However, three years into PRSP implementation there are a number issues that need further exploration. Issues that are of importance to the trade unions include:- quality of consultations and participation of trade unions; budget tracking; content issues; ownership, accountability and transparency issues; a priori determined macroeconomic frameworks; lack of effective structures for consultations; lack of resources to facilitate trade union participation; matters of conditionality; privatisation debates; content issues; etc.
In terms of policy responses to the IFIs, the whole debate focuses around putting in place policy alternatives to those that are advanced by the Washington-based institutions. The bottom line is to ensure that trade unions have the capacity, space and resources to make their views known.
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Completed Poverty Reduction Strategy Documents (as of 28.02.07)
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Key Reading
Poverty Reduction Strategy Papers (PRSP) - All Documents Sorted by Country
PRSPs describe a country's macroeconomic, structural and social policies and programs to promote growth and reduce poverty, as well as associated external financing needs. Governments through a participatory process involving civil society and development partners, including the World Bank and the International Monetary Fund (IMF), prepare PRSPs. They are prepared by the member countries through a participatory process involving domestic stakeholders as well as external development partners, including the World Bank and International Monetary Fund. Updated every three years with annual progress reports, PRSPs describe the country's macroeconomic, structural and social policies and programs over a three year or longer horizon to promote broad-based growth and reduce poverty, as well as associated external financing needs and major sources of financing. Interim PRSPs (I-PRSPs) summarize the current knowledge and analysis of a country's poverty situation, describe the existing poverty reduction strategy, and lay out the process for producing a fully developed PRSP in a participatory fashion. The country documents, along with the accompanying IMF/World Bank Joint Staff Assessments (JSAs), are being made available on the World Bank and IMF websites by agreement with the member country as a service to users of the World Bank and IMF websites.
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Poverty Reduction Strategy Papers (PRSP) describe a country's macroeconomic, structural and social policies and programs to promote growth and reduce poverty, as well as associated external financing needs. Governments through a participatory process involving civil society and development partners, including the World Bank and the International Monetary Fund (IMF), prepare PRSPs.
Poverty Reduction Strategy Sourcebook
Developing or strengthening a poverty reduction strategy is on the agenda of about 70 low-income countries, most immediately in the countries receiving debt relief under the enhanced HIPC (Highly Indebted Poor Countries) Initiative. The resulting Poverty Reduction Strategy Paper (PRSP) will be broadly endorsed by the Bank and Fund Boards as the basis of concessional assistance from the two institutions. The Sourcebook is a guide to assist countries in the development and strengthening of poverty reduction strategies. The Sourcebook reflects the thinking and practices associated with the Comprehensive Development Framework, as well as lessons emerging from the forthcoming World Development Report on Poverty, and good international practices related to poverty reduction.
4 August 2004: "Trade Union Participation in the PRSP Process" Social Protection Discussion Paper No. 0417 by Lawrence Egulu (408 KB PDF)
The PRSP approach offers an opportunity for civil society organizations to join governments in the development and implementation of poverty reduction strategies. Trade unions have been encouraged to participate. This report notes that most unions have been invited to the discussions leading to formulation of the PRSPs but none has been included in the drafting, implementation, monitoring or evaluation. Based on findings from 23 PRSP countries, the study identifies a number of weaknesses and shortcomings that have limited the effective participation of trade unions, mainly capacity issues, time constraints, and lack of structured participatory processes. Lack of consensus on contentious issues like privatization, pensions reforms and labor code reform, has been worrisome to some unions. The paper calls for, among other things, more dialogue between the labour movement and the IFIs, strengthening trade unions, building union capacity and more analytical work on labor market policies and core labor standards.
Other PRSP and IFI related documents by the IMF and World Bank
Trade Union Participation in the Poverty Reduction Strategy Paper (PRSP) Process
This web page tracks the level of trade union involvement in PRSPs on a country-by-country basis. The report, compiled during the period from January to September 2003, provides country information on the state of social dialogue; the participation of trade unions in the PRSP process; and the labor content of the (I)PRSPs.
Also available for download is the Summary of Main Findings & Recommendations in:
English (698KB PDF)
French (89KB PDF)
Spanish (85KB PDF).
ICFTU publications on PRSPs/IFIs
How the World Bank and IMF use the Doing Business Report to Promote Labour Market Deregulation in Developing Countries (ICFTU, Jun 06)
This paper documents seven cases of recent country-level policy reports and recommendations issued by the World Bank and IMF that use Doing Business
indicators on labour regulation to propose reducing or doing away with various types of labour regulations, in spite of the claim of those responsible for the publication that
such recommendations constitute a misuse of the data. It is beyond the scope of this paper to determine why several World Bank units, as well as the IMF, are
misinterpreting data produced by another Bank unit. Whatever be the explanation for this situation, corrective action is called for. It is suggested at the conclusion of this
paper that the whole topic of labour regulations, which by the Doing Business team’s own acknowledgement does not lend itself to judgements by them on appropriate
levels of regulation, should be removed from the purview of Doing Business.
Fighting for Alternatives: Cases os Successful Trade Union Resistance to the Policies of the IMF and World Bank
This report was produced by ICFTU (Peter Bakvis, Molly McCoy, and Tim Shorrock) in cooperation with
the Global Union Research Network in April 2006. The report illustrates how local unions and national trade union centres have
waged successful campaigns in their own countries against the IFIs. The international trade union movement, too,
has achieved important victories in pushing the IFIs to adopt policies that are more favourable to working people
and the poor. The final two chapters of this report discuss these successes, examining how the global trade union
movement brought the issue of core labour standards to the IFIs, as well as the labour movement’s role in the international
campaign for debt relief.
ICFTU Guide to Poverty Reduction Strategy
Papers
The booklet is intended to help unionists in countries that will be writing PRSPs to obtain information about and participate in PRSP consultations. Part II gives a more detailed explanation of the PRSP framework and consultative process, as well as the typical elements of a PRSP that trade unions should look out for. Part III describes where unions can find more information and allies in the PRSP process. Part IV offers an action plan that unions can use to prepare for the consultations and participate effectively. Finally, Annex I contains a glossary of important terms (which appear in bold throughout the document), and the other Annexes provide helpful technical details about the PRSP process.
ICFTU Trade Union Guide to Globalisation
The 144-page Global Unions publication, released by the International Confederation of Free Trade Unions on March 26, 2002, focuses on the impact of globalisation on workers, and trade union responses, such as international solidarity actions. Aimed at trade union leaders and members, the book will also be a valuable resource for others with an interest in the social impact of globalisation.
Trade Unions and Poverty Alleviation: Towards a Comprehensive Strategy (Background Paper of the ICFTU-AFRO High-Level Symposium on the Role of Trade Unions in Poverty Alleviation in Africa (Nairobi, Kenya, 22 May 01)
Global Union Statements to the IMF and World Bank
Statement by Global Unions to the 2007 Spring Meetings of the IMF and World Bank (Washington, 14-15 Apr 07) NEW!
Statement by Global Unions to the 2006 Annual Meetings of the IMF and World Bank (Singapore, 19-20 Sep 06)
Statement by Global Unions to the 2006 Spring Meetings of the IMF and World Bank (Washington, 22-23 Apr 06)
Statement by Global Unions to the 2005 Annual Meetings of the IMF and World Bank (Washington, 24-25 Sep 05)
Statement by Global Unions to the 2005 Spring meetings of the IMF and World Bank - "Advancing the Global Call to Action Against Poverty" (Washington, 16-17 Apr 05)
Statement by Global Unions to the 2004 Annual Meetings of the IMF and World Bank (Washington, 2-3 Oct 04)
Statement by Global Unions to the Spring Meeting of the IMF and WB (Washington, 24-25 Apr 04)
ICFTU/Global Unions Statement to the Annual Meeting of the IMF and World Bank (Dubai, 23-24 Sep 03)
Statement by Global Unions to the 2003 Spring Meetings of the IMF and World Bank (Washington, 12-13 Apr 03)
Statement by Global Unions to the 2002 Annual Meetings of the IMF and World Bank (Washington 28-29 Sep 02)
Statement by Global Unions to the Spring 2002 Meetings of the IMF and World Bank (Washington, 20-21 Apr 02)
Statement by the ICFTU, TUAC and ITS to the Fall 2001 Meetings of the IMF (International Monetary and Financial Committee) and World Bank (Development Committee) (Ottawa, 17-18 Nov 01)
Statement by the ICFTU, TUAC and ITS to the 2001 Annual Meetings of the IMF and World Bank (Washington, 29-30 Sep 01)
Statement by the ICFTU, TUAC and the ITS to the Spring 2001 Meetings of the IMF and World Bank (Washington, 29-30 Apr 01)
Statement by the ICFTU, TUAC and the ITS to the Annual Meetings of the Board of Governors of the IMF and World Bank (Prague, 26-28 Sep 00)
Statement by the ICFTU, TUAC and the ITS to the Spring 2000 Meetings of the IMF and the World Bank (Washington, 16-17 Apr 00)
Statement by the ICFTU to the April 1999 Meetings of the IMF Interim and World Bank/IMF Development Committees
International Monetary Fund and World Bank Annual Meetings of the Board of Governors (Washington, 6-8 Oct 98)
Statement to the Spring Meetings of the Boards of Governors of the IMF and the World Bank (Washington, 16-17 Apr 98)
ILO Documents on PRSPs/IFIs
The role of trade unions in the global economy and the fight against poverty - ACTRAV Symposium (Geneva, 05)
Conclusions and recommendations
Poster
Decent Work and Poverty Reduction Strategies, A reference manual for ILO staff and constituents (Geneva, 05)
Working out of poverty: Report of the ILO Director General to the 91st session of the International Labour Conference
French / Spanish
Reducing the Decent Work Deficit: Report of the Director-General to the 89th Session of the International Labour Conference (Geneva, Jun 01)
French / Spanish
Poverty Reduction Strategy Papers (PRSPs): An assessment of the ILO's experience -
285th Session of the Governing Body (Geneva, Nov 02)
Arabic / Chinese / French / Spanish
Poverty Reduction Strategy Papers (PRSPs): An assessment of the ILO's experience -
283rd Session of the Governing Body (Geneva, Mar 02)
French / Spanish
ILO relations with Bretton Woods institutions - 282nd Session of the Governing Body
(Geneva, Nov 01)
French / Spanish
ILO relations with the Bretton Woods Institutions - 279th Session of the Governing Body
(Geneva, Nov 00)
French / Spanish
ILO relations with the Bretton Woods institutions - 277th Session of the Governing Body
(Geneva, Mar 00)
French / Spanish
Relations with the Bretton Woods institutions - 273rd Session of the Governing Body (Geneva, Nov 98)
French / Spanish
Reports of IFI/Trade Union Meetings
Trade Unions - World Bank Dialogue
The World Bank engages with trade unions in numerous ways: consultations with union members who are stakeholders in Bank projects;
national consultation with unions as members of civil society; international policy dialogue on economic and social issues; research on the economic effects of collective bargaining, and training programs for both Bank staff and trade unions. This site includes reports and other materials from regular, ongoing dialogue between the World Bank, IMF, and the international labor movement.
Further Reading
Labour Standards and Poverty Reduction
Policy paper by the UK Department for International Development (DFID) launched in London on July 20, 2004.
The paper has been developed over the last eighteen months through a process of consultation with international organisations, trade unions, NGOs, business and academics.
World Bank and Civil Society Discussion on Poverty Reduction Strategies and Governance, 12.11.03
Lawrence Egulu described his analysis of the trade union constituency and the lessons learned from their involvement in the PRSPs. His report was based on results of a scorecard questionnaire given to labor union members involved in the PRSPs of 23 countries. He noted that a major concern was that there was a lack of free association in their countries which limited labor participation in the PRSP process. As a result, the outcomes do not necessarily represent the views of trade unions. There was also the perception that governments tend to be self-censoring. By doing so, the government is not receptive to new ideas because they feel compelled to say what the World Bank and IMF want to hear. Additionally, unions are skeptical of World Bank and IMF policies as many think that all polices are similar to structural adjustments. Egulu noted that to improve the process, labor unions should be involved in more stages of the PRSP and the dialogue between the World Bank and unions needs to be enhanced. He said that here should be more training of unions to participate as well as more training of World Bank staff to engage union representatives. He also suggested that the World Bank should produce more of the analytical work on the contribution of labor market policies, institutions, and standards.
Further Information
Key Issues
Trade Unions
Stop the World? No. Shape it! (PSI)
Trade Unions and Poverty Alleviation in Africa, 2003 (ILO/ACTRAV)
Others
Key Websites
Trade Unions
Global Union Federations (GUFs)
ILO/ACTRAV
Others
Action Aid
African Women's Economic Policy Network
AFRODAD
Both Ends
Bread for the World
Brettons Woods Project
Catholic Relief Services
CEE Bankwatch Network
Center on Budget and Policy Priorities
Christian Aid
Christian Releif and Development Association - Ethiopia
CIVICUS
Civil Society for Poverty Reduction
DFID - Department for International Development (UK Government)
EURODAD
Focus on the Global South
Friends of the Earth
Integrated Social Development Center
InterAction
Jubilee South
North/South Coalition
Oxfam International
Pan African Organization for Sustainable Development
RESULTS
Save the Children
Tanzania Association of NGOs
Tanzania Social and Economic Trust
The Carter Center
Third World Network
Uganda Debt Network
WEMOS
World Council of Churches
World Vision
Databases
Trade Unions
Others
Key Journals
Trade Unions
Trade unions and poverty reduction strategies, Labour Education, Nr. 134-135, 2004/1-2
French / Spanish
Trade unions and the global economy: An unfinished story, Labour Education, Nr, 124-125, 2001/3-4
French / Spanish
The challenge of globalization in Africa: The trade union response, Labour Education, Nr. 123, 2001/2
French / Spanish
Others
Last update: 9 July 2007
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Global Union Research Network - GURN