By Ms. Tan Sze Wei, PSI AP Young Workers Representative (APYN Coordinator)

Drawing a parallel to British economist, John Maynard Keynes’s Economic Possibilities for Our Grandchildren, Jeffrey D. Sachs, celebrated economist and Special Advisor to UN Secretary-General Ban Ki-moon asked in his book, The End of Poverty, “Will we have the good judgment to use our wealth wisely, to heal a divided planet, to end the suffering of those still trapped in poverty, and to forge a common bond of humanity, security, and shared purpose across cultures and regions?”

While attending seminars, forums and dialogue sessions at the 41st Asian Development Bank Meeting (ADB) in Madrid 2-6 May 2008, the question from his book has never left my mind. This was the third time Public Services International (PSI), the global federation of unions of public employees, led a delegation to ADB’s Annual meeting to campaign for workers’ interests, quality public service and social justice.

The ADB, a Multilateral Development Bank (MDB) is the third largest donor in Asia Pacific region, lending some US$10 billion funded by 67 member governments to its developing member countries. Despite the bank’s claims on its commitment to poverty reduction, its recently publicized Strategy 2020 - the new long-term strategic framework for ADB has failed to strengthen critical public services and infrastructure. Several case studies have shown that there were negative environmental and social impacts from ADB funded operations. Vulnerable local communities were affected in terms of loss of livelihood, environmental degradation and deprivation to essential public services, etc.

It did not help that the bank has portrayed a rosy picture of the successes of its programmes with self-serving accolades accompanied by spectacular shows and generous reception at the meeting. ADB President, Mr Kuroda proclaimed at his opening address that the bank would continue to act as a main driver of privatization of services and the belief that its neo-liberalistic economic policies would be the panacea to end poverty. ADB aims to increase its funding of private sector development from the current 12% to 50% in 2020. Disappointingly, the bank and its officials chose to turn a blind eye on its stark shortcomings such as its lack of transparency and ineffectiveness in enforcing its environmental and social policies.  Minimum attention was given to demands from growing organizations and individuals such as Trade unions, Non Governmental Organizations and Civil societies for more accountability and to strengthen its safeguard policy framework.

A press conference “Public Funds for Public Services and Poverty Reduction not Private Profit” and a PSI forum “Best Practice in Mainstreaming Core Labour Standards” was held by the PSI delegation, generating tremendous interest from the media, various interest groups and the public. CLS are set of four internationally recognized basic rights and principles at work (abolition of child labour and compulsory labour, elimination of discrimination and recognition of the rights of workers to organize and bargain collectively.)

Though challenged by the bank’s apathetic attitude, PSI representatives displayed courage, grit and determination in the engagements with ADB delivering a massive punch proving that PSI should not be taken for granted. Substantial results were achieved from the relentless promoting of PSI campaigns on Core Labour Standards (CLS) and Quality Public Services, persistent lobbying of donor delegations for inclusion of CLS in ADB’s safeguard policies and the need to strengthen labour impact assessment. In addition, we also forged effective alliances with NGOs, civil societies on common campaigns.

PSI scored a goal in its efforts as ADB has agreed to do a joint research coordinated by Ms Violeta Corral from PSI’s research arm (PSIRU) on the Bank’s power project in Madya Pradesh, India on identifying best practices in labour impact assessments of ADB assisted projects. Our ultimate aim is to integrate these best practices into the bank’s operational cycle in 2009.

It is my view that there is no possibility of ADB taking a quantum leap towards its overarching goal of ending poverty in the Asia Pacific region without doing more and having a paradigm shift in two particular areas- public sector developments and human resource development. With regards to these areas, the bank requires new instrumentalities or new modes of operation by revamping their Safeguard Policies to include CLS so as to ensure their compliance by developing member countries. ADB should also set up a labour desk to address workers’ issues and be more open to involve trade unions as a partner in ending poverty. PSI delegates have already spelt out clearly the formula to alleviate the dire situation of developing countries in our region. It is now up to ADB to take the next step.