Agreement signed with ILO to support generation of employment in Latin America and the Caribbean

(August 20, 2009).- The Andean Development Corporation and the International Labor Organization (ILO) today signed the first cooperation agreement between the two institutions with the objective of joining forces to support the governments of the region in combating the crisis by generating more and better jobs.

The agreement, signed in Lima by CAF President & CEO Enrique García and ILO regional director for Latin America and the Caribbean, Jean Maninat, was described as the first step in a relation of mutual cooperation to directly mitigate the effects of the crisis on the labor market.

"The combination of insufficient economic growth with high unemployment and unstable employment increases the deficit of decent work, which is closely linked to high levels of poverty and inequity in the region," Garcia said.

ILO Director Jean Maninat said the agreement represented the first step in a joint effort to help generate jobs. "One of the realities which this crisis has revealed is the need to position employment as a fundamental objective of economic policy."

According to the latest data on the Latin American and Caribbean labor market, between 2.8 and 3.9 million people could join the unemployment lines due to the crisis.

The memorandum of understanding between CAF and ILO will lead to joint activities and research in an effort to stimulate productive development and generate decent work.

The agreement also represents a mutual contribution to developing the content of the CAF Social Panorama and the ILO Labor Panorama, on issues related to each institution's area of technical competence. The institutions will hold regular meetings and maintain a fluid exchange of information.

García said CAF intended to foster high long-term growth "which creates productive employment and decent work, which fights against informality, and which is respectful of cultural diversity and the environment."

He emphasized the objective of "the new alliance" to promote employment. "If we want to strengthen democracy we have to create conditions of life which give dignity to the majority of citizens."

The ILO regional director said, "it is crucial that we learn from this crisis. It would be a serious error to return to the past, repeat errors and policies that tend to perpetuate situations of inequality."

Maninat added that specific measures were needed to stimulate employment even though there was already talk of signs of economic improvement. "Although employment suffers an immediate impact when the economy enters into crisis, it is not the same when recovery comes because labor markets react slowly, which means we will be dealing with the labor effects of this recession for some time."

The representatives of the two institutions said the agreement would be used to identify opportunities in order to expand cooperation in the future and undertake projects and activities jointly or in coordination.

The ceremony was attended by representatives of the Peruvian government: Minister of Foreign Affairs José Antonio García Belaunde, and Minister of Labor and Employment Promotion, Manuela García Cochagne, together with the United Nations resident coordinator in Peru, Jorge Chediek.

The ILO is a specialized UN agency with 183 member states which fosters social justice and human and labor rights internationally. It is dedicated to promoting decent and productive employment opportunities for men and women in conditions of freedom, safety and human dignity. Its main objectives are to promote labor rights, foster opportunities for dignified work, improve social protection and strengthen dialogue by addressing work-related issues. www.oit.org.pe