thE prIOrItY: JOBS
rEBUILDING MOMENtUM tO rEFOrM thE FINANCIAL SYStEM 7
trade unions statement to the pittsburgh g20 summit
GLOBAL UNIONS pIttSBUrGh DECLArAtION
tACKLING thE IMpACt OF thE CrISIS ON DEVELOpING COUNtrIES 9
24-25 september 2009
CLIMAtE ChANGE: A ‘JUSt trANSItION’ FOr AN AMBItIOUS AND FAIr CLIMAtE ChANGE DEAL IN COpENhAGEN
BEYOND thE CrISIS - A NEW MODEL FOr A BALANCED ECONOMY 12
The G20 leaders are meeting in Pittsburgh amidst reports that the global recession is bottoming out, with the massive decline in output in most major economies slowing, and that governments are preparing their strat- egies for exiting from the fiscal stimulus measures. This would be danger- ously premature. The outlook for recover , which is still uncertain, is at best modest and the slowing of the decline is due almost exclusively to government stimulus measures. As yet, there is no sign of a self-sustaining economic recovery.
Moreover, as regards unemployment, the worst is still to come. Experi- ence of past crises clearly indicates that unemployment is a lagging indi- cator with the latest forecasts confirming high unemployment extending well into 2011. The International Labour Organisation (ILO) estimates that unemployment is likely to increase by up to 59 million worldwide by the end of the year. Unemployment in the OECD countries is likely to almost double over the next eighteen months and to continue rising with rates of double figures remaining well into 2011. Over 200 million workers could be pushed into extreme povert , mostly in developing and emerging countries where there are few or no social safety nets, with the result that the number of working poor may rise to 1.4 billion globally.
Unemployment now represents the largest single threat to recovery. It is imperative that G20 countries continue and extend their fiscal stimulus measures until there is real recovery. At the same time, G20 governments must take immediate action to finance the growing public debt through progressive fiscal reform, rather than the implementation of austerity