Highlights PSIs Campaign on Asian Development Bank Violeta

Highlights PSI’s Campaign on Asian Development Bank Violeta P. Corral October 2011

ADB is an IFI • International financial institution (IFI) founded in 1966 • Lending operations focused in Asia-Pacific – $17 B total in 2010 • Members are 67 governments • 48 from Asia-Pacific & 19 from outside • Large shareholders are Japan, PRC, India, Australia, US, Canada • Large borrowers are PRC, India, Pakistan, Indonesia

Major Threats § ADB loans / TAs, policies: Conditionalities tied to sector reforms, restructuring, privatization, PPPs § Power reforms: Philippines, Indonesia, Bangladesh, Pakistan, India (Madya Pradesh, Uttaranchal, Bihar, etc) § Water reforms: Nepal, Sri Lanka, Indonesia, etc § ADB’s Strategy 2020: ADB will increase lending to private sector operations to 50% of total by 2020 § ‘Non-sovereign approvals’ as % of total ADB lending: § 1966: 0 § 1999: 3% § 2008: 12% § 2010: 24% § 2020: 50%

Major Opportunities § Poverty reduction & “inclusive growth” is ADB’s avowed goal & framework § Social & environmental policies are in place § Information disclosure § Consultation & participation § Safeguard policies § Accountability (“Inspection function”) § Core Labor Standards / Social Protection

CLS / Social Protection • ADB’s 2001 Social Protection Strategy • ADB’s 2006 CLS Handbook – ADB commits to “comply with CLS in design and formulation of its loans” – ADB “formally adopted CLS as part of its 2001 Social Protection Strategy’ – “CLS have been an integral part of ADB’s development mission”

CLS in ADB operations Country strategy and Programs Labor market assessment Pre-Project Design IPSA, Labor consultants Project Design Loan negotiations, Bidding documents Project Implementation Compliance Monitoring, Consultation process, Capacity building on CLS

PSI-APREC Resolution on ADB (Sydney, April ‘ 06) “Engage ADB and develop and implement a strategy that includes: § Regular PSI-ADB dialogue on poverty reduction, QPS and core labor standards (CLS) § Create a Labor Desk at ADB § Build union capacities to engage ADB § Joint PSI-ADB research studies on impact of ADB projects § Work with other labor networks and groups already engaging ADB. ”

Key PSI messages § Privatization, PPPs, deregulation policies undermine QPS, increase costs (e. g. , electricity, water), weaken governance (Transparency, Accountability, Participation), lead to precarious work § ADB must strengthen monitoring and compliance of trade union rights, Core Labor Standards (CLS) § ADB should support public investments in QPS § ADB should consult with unions

PSI campaign strategies (to date) § Regular dialogue, info exchange with ADB § Lobby for Labor Desk, trade union secondment at ADB § Capitalize on role and voice of PSI unions § Build unions’ capacity to engage ADB thru education, PSI Toolkit, etc (re ADB projects, policies, etc) § Submit comments on ADB policy reviews § Research, field missions on impacts of ADB projects § Engage ADB’s key donors (Japan, Australia, EU) § Solidarity with other GUFs, NGOs § Cooperation with ILO § ‘Localize’ dialogues in 5 countries

Modes of engagement 1. Annual dialogue at ADB-HQ (Manila) – since 2005 § With BWI (& FES, ALNI) (2009) § With ITUC-AP, GUFs (2009) § With BWI & UNI (2011) 2. Campaign at ADB Annual Meetings / AGM – since 2006 § Jointly with BWI & UNI – since 2009 § Lobbying ADB Pres. Kuroda, delegations on Labor Desk, FTT, etc § Joint forums with ADB: § § CLS (2007 -08) Global Economic Crisis (2009) Workers & Unions in ADB Operations (2010) Climate Change, Social Protection (2011) § PSI forums at ‘outside’ NGO events § Power, water (2007) § Power (2009)

Modes … 3. ADB Campaign Capacity-Building/Education Workshops § PSI (sub)regional meetings - since Dec 2004 § Hyderabad, India (2006) § 5 country pilots – since 2010 4. Submissions to ADB policy reviews § Water Policy (2005) § Safeguards Policy (2008); Jointly with BWI (2009) § Accountability Mechanism (2010) 5. Joint PSI-ADB research § TOR agreed with ADB-RSDD, South Asia Dept on “Labor Impact Assessment in ADB Power Project in Madya Pradesh” (May 2008) § ADB backed out due to refusal of India Govt § PSI went ahead with field research (Sep 2008) § PSI ‘Report Card’ on Madya Pradesh: “Very Poor” § Updated TOR (Aug 2009) § New discussions on ‘green jobs & climate change’ (2011)

Modes … 6. Initiating Country-level dialogues – since 2010 § § Philippines – water India / Indonesia – power Mongolia – health Tonga – SOE reforms 7. PSI participation in ADB workshops § § § § Enterprise restructuring (2006) Consultation on Safeguards Policy (2008) Conditional Cash Transfer (2009) Consultations on Accountability Mechanism (Jak, Sydney, Mla, 2010) Social Protection (2010, 2011) Water Twinnings/WOPs (May, Oct 2010) Labor, Trade, Inclusive Growth (2011) 8. ADB participation in PSI meetings § § APREC (2006) QPS Workshop (2008) ‘Insight Thursday’ (Jan, Sep 2011) APRECON (2011)

PSI / GUFs Campaigns at ADB Annual Meetings § 2006 (Hyderabad): PSI-APREC resolution on ADB § 2007 (Kyoto): Supporting CLS in ADB projects § 2008 (Madrid): Mainstreaming CLS in ADB projects § 2009 (Bali): Addressing impacts of crisis on workers; Questioning ADB’s Strategy 2020 § Also called for International Solidarity Levy (ISL) & Financial Transaction Tax (FTT) to finance QPS § 2010 (Tashkent): No post-crisis recovery until people get decent work § “Very Poor” score of ADB’s Madya Pradesh power project § 2011 (Hanoi): Green jobs & climate change, Social Protection Strategy review, CLS CREATE LABOR DESK AT ADB

Upcoming ADB Annual Meetings § 2012 : Manila, Philippines § 2013: Delhi, India § 2014: Kazakhstan

May 06 AGM (Hyderabad, India): Meeting with ADB Pres. Kuroda

May ’ 07 AGM (Kyoto, Japan): PSI-ADB Forum on Supporting CLS

May ’ 07 AGM (Kyoto, Japan): PSI / CSO Forum on Water & Power Privatization

Oct ’ 07 (ADB-Manila): International Workers Day of Action “Dear Pres. Kuroda”

April ’ 08 (Manila): Nego on Joint PSI-ADB Research

May ’ 08 (Madrid): PSI-ADB Forum on Mainstreaming CLS

May ’ 08 (Madrid): Meeting with ADB Governors

May ’ 09 (Bali): PSI-BWI-UNI Forum on Addressing Impacts on Workers of Global Economic Crisis

May ’ 09 (Bali): Meeting with ADB Pres. Kuroda

May ’ 09 (Bali): Questioning ADB’s Strategy 2020

May ’ 09 (Bali): ADB Labor Desk: When? !?

May ’ 10 (Tashkent): “No post-crisis recovery until people get decent work”

May ’ 10 (Tashkent): Meeting with ADB Pres. Kuroda

May ’ 10 (Tashkent): Scoring ADB on Madya Pradesh power project CRITERIA SCORE Compliance with CLS VERY POOR Compliance with Related Labor Laws VERY POOR Compliance with C&P VERY POOR Compliance with Information Disclosure VERY POOR

May ’ 10 (Tashkent): PSI-VP at ADB Forum on Women Empowerment

May ’ 11 (Hanoi): PSI, BWI, UNI, ITF, EI Forums 1. Social Protection • With Plan Int’l, HAI 2. Climate Change & Greening Jobs • With WWF * GUs participation: • 93 pax, including 44 pax from Vietnam unions • [total CSO pax = 203]

May ’ 11 (Hanoi): Meeting with ADB Pres. Kuroda

GUFs recommendations to ADB Pres. Kuroda (May 2011) • Compliance with CLS – Create a joint ADB-Global Unions Committee to harmonize ADB’s labor standards requirements with other MDBs – Invite senior ADB-staff to join the trade unions monitoring and investigating labor conditions of ADB projects • Review ADB’s 2001 Social Protection Strategy – Open and multi-stakeholder review of 10 -year old policy • Create Financial Transaction Tax in Asia-Pacific • Create a Labor Desk at ADB

PSI General Secretary talks on FTT at ADB-HQ (Sep 2011)

High-level PSI Nordic trade union delegation meets with ADB in Manila & Jakarta (Sep 2011)

Philippine Pilot • Promote public-public partnerships (PUPs) in ADB water projects • Field research for inputs to “Water District Development Sector Project” (due for ADB Board approval in 2011) • Lessons learned – AGWWAS (union) gained more knowledge about ADB loan procedures. – Field visits brought together the unions and management in a dialogue to address a shared issue – Several avenues for enhanced dialogue and potential partnerships were identified – Other areas for future cooperation

Mongolia Pilot • 1 st dialogue between ADB Resident Mission in Mongolia & Mongolian trade unions (2010) • PSI unions submitted proposals on ADB’s poverty reduction strategy, social insurance, social welfare & health legislation in Mongolia • PSI unions created Mongolian Trade Union Working Group on ADB to monitor CLS compliance, effectiveness of ADB projects

Indonesia Pilot • 1 st dialogue between ADB Resident Mission in Indonesia & PSI energy unions (2010)

India Pilot • 1 st dialogue between ADB Resident Mission in India & PSI energy unions, with ILO-South Asia (2010) 2011: • Increased level of discussions on ADB’s Energy Policy & projects • Increased involvement of ILO-South Asia/Delhi on CLS • No of participating Indian energy unions: 5 11

Tonga Pilot • Tonga PSA will look into impacts of SOEs privatization & public sector reforms supported by ADB • Mainstream CLS • Organize awareness-raising forums

Some Key Outcomes ü Recognition / Accreditation of PSI in 2006 ü PSI-ADB dialogue institutionalized 2005, initiated at country levels (5 pilots) in 2010 ü Joint PSI-ADB research agreement (2008) ü Increasing participation of PSI unions / other GUFs ü e. g. from 9 PSI pax at AGM (2006) to 50 (2007) to 80 PSI++(2009) to 93 PSI++ (2011) 130 trade union leaders from 58 affiliates in As. Pac ü Increasing knowledge & capacity of PSI unions to engage ADB ü Increasing support from trade union solidarity support orgs (TUSSOs) ü Increasing number of contacts, entry points at ADB ü Support for Labor Desk from key donors (Japan, Australia)

Commitment from ADB: Ongoing and Future Cooperation with PSI (“Enhanced Dialogue”) § Regular dialog and consultation since 2005 including in ADB Annual Meetings § Joint research, subject to concurrence from ADB member government § Dissemination of PSI reports and information within ADB. § Assistance to PSI in coordinating requests for meetings with resident missions and project officers. § Sharing of views and information on a number of projects: – – – Philippines: Mongolia: Indonesia: India: Tonga: Water Supply Health Services Energy Public Enterprise

Continuing Challenges • Create Labor Desk at ADB • PSI secondment • Lack of consultation of unions in ADB projects • Absence of strong monitoring & enforcement mechanism at ADB for CLS compliance • Decreasing ADB financing to public sector • Coordination, Resource mobilization among GUs • File a strong case at ADB’s ‘inspection’ mechanism