Topic 3

International Labour Organization

ILO: A UN agency that sets international labor standards, promotes decent work conditions, and protects workers’ rights worldwide.

• founded 1919 under the League of Nations (one of the first and oldest specialised agencies of the UN)

World Bank

A global financial institution that provides funding, policy advice, and technical assistance to developing countries to reduce poverty and promote economic development.

OECD

Organisation for Economic Cooperation and Development (1961, 38 MS):

An intergovernmental organisation that promotes economic growth, trade, and policy coordination among developed nations.

International public goods

Goods and services that benefit multiple countries and cannot be limited to specific users; such as environmental protection, global security, disease control. Pure international public goods are non-rivalrous (non depletable) and non-excludable (impossible to prevent consumption).

economies of scale

Cost advantages that arise when production increases, leading to lower per-unit costs due to factors like bulk purchasing, specialization, and technological efficiencies.

bureacracy

A structured system of administration within governments or organizations, characterized by hierarchical authority, formal rules, and procedures.

shared competence & social rights

SC: A governance principle in the EU where both the EU and its MS have the authority to legislate and implement policies in certain areas, such as the internal market and environmental policy.

SR: Fundamental rights related to living standards and well-being, including access to healthcare, education, fair working conditions, and social protection.

EU Charter of Fundamental Rights

A legally binding document outlining fundamental civil, political, economic, and social rights for EU citizens and residents.

OMC

Open Method of Coordination:

A voluntary and non-binding EU governance tool used to coordinate policies among MS through guidelines, best practices, and peer reviews.

European Semester / Europe 2020

Introduced in 2011

The European Semester is an annual cycle of economic and fiscal policy coordination within the EU. Europe 2020 was the EU’s strategy for sustainable and inclusive growth between 2010 and 2020.

Result: country-specific recommendations (even with possible financial sanctions) → critique: subordination of social objectives to higher-order economic goals

corporate sustainability due dilligence

A legal and ethical framework requiring companies to assess and address environmental, social, and human rights impacts within their operations and supply chains.

Duties for the Directors:

• Setting up and overseeing the implementation of the due dilligence processes

• integrating due dilligence into the corporate strategy

• Take into account

  • human rights

  • climate change

  • environmental consequences

self-interest

The pursuit of personal gain or benefit, considered a key driver of decision-making, also of politicians and bureaucrats.

Tripartism

cooperation between governments and employers’ and workers’ organizations

bipartite dialogue: without governments

Public choice perspective: IOs & gov & bureaucrats & voters

Gov:

• big countries and connected insiders get the most out of IOs, often at the cost of real, effective outcomes. (countries that hold temporary power like UN SC get more projects & money from O like WB)

Bureaucrats:

• are not always efficient

• staff protect their own interests

• big players dominate

• things can get bureaucratic and wasteful

Voters:

• IOs can be convenient scape goats for governements to shift blame, avoid accountability, and stack up more self-interested actors - all with little input from the average person

equal treatment

Non-discrimination as a general principle in EU law prohibits different treatment on every non-objective reason.

Direct and indirect sex discrimination

Direct:

• explicit reference to the sex of the person (e.g. only men can apply)

  • Exceptions:

    • Protection of women in case of pregnancy and maternity

    • positive actions in favor of the uner-represented sex

Indirect: apparently neutral provision or criterion which put persons of one sex at a particular disadvantage

• Ex: policy that treats part-time workers worse (women work more part-time, women end up getting screwed over)

• Measured: by actual effects, often using statistics

EU social policy goals

Boost jobs, improve working/living conditions, make sure workers are treated equally, provide enough social protection, encourage social dialogue, develop human skills, keep employment high, and fight exclusion.

Realistically:

• offer incentives to help MS do better in certain areas

• set minimum requirements (for healthcare, safety, gender equality) but countries can always go further if they want

EU Policy evaluation

Positive:

• makes it easier and cheaper for people to move and work across EU countries (worker mobility)

• helps countries share risks (e.g. economic shocks)

• can redistribute money or resources between countries

Negative:

• One-size-fits-all policies may not fit every country’s preferences

• may not address every country’s specific risks

• can stop a “race to the bottom”, where countries compete by lowering standards (wages, taxes, social protection)

Redistribution & Race to the Bottom

General idea: money or benefits can be redistributed fom people who own land/capital to workers (who can move)

• without redistributions→ capital owners get more income

• with redistributions → some income is shifted to the workers, but if workers are mobile, benefits meant for them could just attract international workers instead

Total open economy: any attempt to transfer money to workers could just end up going to foreign workers who move in, so the “real” benefit to local workers disappears