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<span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif; color:rgba(0, 0, 0, 1.0);" class=""><b class="">Reply-To:
</b></span><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif;" class=""><a href="mailto:recoveryhumanface@socpro.list.ilo.org" class="">recoveryhumanface@socpro.list.ilo.org</a>, "Isabel Ortiz" <<a href="mailto:isabel.ortiz@ymail.com" class="">isabel.ortiz@ymail.com</a>><br class="">
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<span style="color: rgb(51, 51, 51);" class="">Dear friends,<span class="Apple-converted-space"> </span><o:p class=""></o:p></span></div>
<p style="background-color: white; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial;" class="">
<span style="color: rgb(51, 51, 51);" class="">We have launched a new update on austerity at the IMF: ”Austerity, The New Normal: A Renewed Washington Consensus 2010-24”<span class="Apple-converted-space"> </span><br class="">
</span><span style="" class=""><a href="http://policydialogue.org/files/publications/papers/Austerity-the-New-Normal-Ortiz-Cummins-6-Oct-2019.pdf" style="color: rgb(149, 79, 114); text-decoration: underline;" class="">http://policydialogue.org/files/publications/papers/Austerity-the-New-Normal-Ortiz-Cummins-6-Oct-2019.pdf</a></span><span style="color: rgb(51, 51, 51);" class=""><o:p class=""></o:p></span></p>
<div style="margin: 0in 0in 0.0001pt; background-color: white; vertical-align: baseline;" class="">
<span style="color: rgb(51, 51, 51);" class="">Th</span><span style="" class="">e<span class="Apple-converted-space"> </span></span><span style="color: rgb(51, 51, 51);" class="">report</span><span style="" class="">,<span class="Apple-converted-space"> </span></span><span style="color: rgb(51, 51, 51);" class="">published
by IPD, ITUC, PSI, EURODAD and the Breton Woods Project: (i) examines historical and projected government expenditure trends for 189 countries; (ii) reviews the latest IMF country reports for countries to identify the main channels used by governments to adjust
expenditures; (iii) discusses the negative social impacts of austerity measures; (iv) presents the renewed Washington Consensus advised to governments that are left with limited budgets—and the alternative UN Consensus on Development for All; and (v) calls
for urgent action by governments to identify fiscal space to accelerate development, human rights, a green recovery with jobs and inclusive growth, and progress towards the Sustainable Development Goals (SDGs).<o:p class=""></o:p></span></div>
<div style="margin: 0in 0in 0.0001pt; background-color: white; vertical-align: baseline;" class="">
<span style="color: rgb(51, 51, 51);" class=""><o:p class=""> </o:p></span></div>
<p style="margin-right: 0in; margin-bottom: 12pt; margin-left: 0in; background-color: white; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial;" class="">
<span style="color: rgb(51, 51, 51);" class="">While this week Ministers of Finance and economists meet in Washington to confront global economic challenges at </span><span style="" class=""><a href="https://meetings.imf.org/en/2019/Annual" target="_blank" style="color: rgb(149, 79, 114); text-decoration: underline;" class=""><span style="color: rgb(109, 144, 168); border: 1pt none windowtext; padding: 0in;" class="">the
IMF and World Bank Annual Meetings</span></a></span><span style="color: rgb(51, 51, 51);" class="">, the majority of the world population lives with austerity cuts and see their living standards deteriorating. World leaders must reverse this trend.<o:p class=""></o:p></span></p>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
Summary:<span class="Apple-converted-space"> </span><o:p class=""></o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
<p style="margin-right: 0in; margin-bottom: 3pt; margin-left: 0.25in; text-align: justify; text-indent: -0.25in;" class="">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span>Since
2010, governments have been cutting public expenditure. According to IMF fiscal projections, a new shock is to start in 2020-21, affecting 130 countries.<span class="Apple-converted-space"> </span><span class="">Rather than investing in a robust recovery to
bring prosperity to citizens, austerity has become the “new normal.”</span><o:p class=""></o:p></p>
<p style="margin-right: 0in; margin-bottom: 3pt; margin-left: 0.25in; text-align: justify; text-indent: -0.25in;" class="">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span>As
many as 69 countries will be<span class="Apple-converted-space"> </span><span class="">undergoing excessive contraction, cutting expenditure below pre-crisis levels in terms of GDP, including countries with dire development and human needs such as Angola,
Burundi, Congo, Djibouti, Egypt, Eritrea, Ethiopia, Iraq, Jamaica, Jordan, Nigeria or Yemen.</span><o:p class=""></o:p></p>
<p style="margin-right: 0in; margin-bottom: 3pt; margin-left: 0.25in; text-align: justify; text-indent: -0.25in;" class="">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span>Austerity
will affect approximately 5.8 billion persons by 2021—about 75 per cent of the global population. For billions of persons, the persistence of a long jobs crisis and austerity mean a deterioration of living conditions, rising inequalities and social discontent.<o:p class=""></o:p></p>
<p class="MsoListParagraph" style="margin: 0in 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif; text-indent: -0.25in;">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span>Analysis
of IMF country reports in 161 countries in 2018-19 show that IMF policy discussions with government include:<span class="Apple-converted-space"> </span><o:p class=""></o:p></p>
<ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class="">
<li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Pension and social security reforms (86 countries),<span class="Apple-converted-space"> </span><o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Cutting or capping the public sector wage bill, including the number and salaries of teachers, health workers and civil servants delivering public services (80 countries)<o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Labor flexibilization reforms (79 countries)<o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Reducing or eliminating subsidies (78 countries)<o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Rationalizing and/or further targeting social assistance or safety nets (77 countries)<o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Increasing regressive consumption taxes, such as sales and value added taxes (73 countries)<o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Strengthening public-private partnerships (PPPs) (60 countries)<span class="Apple-converted-space"> </span><o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Privatizing public assets/services (59 countries)<o:p class=""></o:p></li><li class="MsoListParagraph" style="margin: 3pt 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif;">
Healthcare reforms (33 countries) – all these reforms have NEGATIVE SOCIAL IMPACTS<o:p class=""></o:p></li></ul>
<p class="MsoListParagraph" style="margin: 0in 0in 3pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif; text-indent: -0.25in;">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span>Further,
public expenditure adjustment is being used as a trojan horse to induce Washington Consensus policies to cut back on public policies and the welfare state. Once budgets are contracting, governments must look at policies that minimize the public sector and
expand PPPs and private sector delivery, often promoted and/or assisted by multilateral development banks.<span class=""><o:p class=""></o:p></span></p>
<p style="margin-right: 0in; margin-bottom: 3pt; margin-left: 0.25in; text-align: justify; text-indent: -0.25in;" class="">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span>The
paper presents the renewed Washington Consensus advised to governments that are left with limited budgets—and the alternative UN Consensus on Development for All<o:p class=""></o:p></p>
<p style="margin-right: 0in; margin-bottom: 3pt; margin-left: 0.25in; text-align: justify; text-indent: -0.25in;" class="">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span><span style="color: rgb(51, 51, 51);" class="">Austerity
and budget cuts do not need to be “the new normal.” There are alternatives, even in the poorest countries. Governments can find additional<span class="Apple-converted-space"> </span></span><a href="https://www.social-protection.org/gimi/RessourcePDF.action?ressource.ressourceId=51537" style="color: rgb(149, 79, 114); text-decoration: underline;" class="">fiscal
space to fund public services and development policies through at least eight options</a><span style="color: rgb(51, 51, 51);" class="">, which range from increasing progressive tax revenues, cracking down on illicit financial flows, improving debt management
and using fiscal and foreign exchange reserves, to adopting more accommodative macroeconomic frameworks, reprioritizing public expenditures and -for lower income countries- lobbying for greater aid. All these options are endorsed by the United Nations and
the international financial institutions.</span><o:p class=""></o:p></p>
<p style="margin-right: 0in; margin-bottom: 3pt; margin-left: 0.25in; text-align: justify; text-indent: -0.25in;" class="">
<span style="font-family: Symbol;" class=""><span class="">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';" class=""> <span class="Apple-converted-space"> </span></span></span></span><span style="color: rgb(51, 51, 51);" class="">It
is time for world leaders to abandon the myopic scope of macroeconomic and fiscal policy decisions that benefit few and, instead, look for new fiscal space and financing opportunities to foster a robust global recovery and the achievement of long-term global
prosperity for all.</span><o:p class=""></o:p></p>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
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Press articles:<span class="Apple-converted-space"> </span><o:p class=""></o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
<a href="http://www.ipsnews.net/2019/10/austerity-new-normal/" style="color: rgb(149, 79, 114); text-decoration: underline;" class="">IPS: Austerity, the “New Normal”</a><o:p class=""></o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
<a href="https://www.project-syndicate.org/onpoint/the-insanity-of-austerity-by-isabel-ortiz-and-matthew-cummins-2019-10" style="color: rgb(149, 79, 114); text-decoration: underline;" class="">Project Syndicate: The Insanity of Austerity</a><o:p class=""></o:p></div>
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<o:p class=""> </o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
Best,<o:p class=""></o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
Isabel and Matthew<o:p class=""></o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
Isabel Ortiz is Director of the Global Social Justice Program, Initiative for Policy Dialogue (IPD) at Columbia University, and former Director at the ILO and UNICEF.<o:p class=""></o:p></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
Matthew Cummins is a senior economist who has worked at UNDP, UNICEF and the World Bank.<o:p class=""></o:p></div>
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<o:p class=""> </o:p></div>
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<span lang="EN-GB" style="color: rgb(51, 51, 51); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">________________________________</span><span lang="EN-GB" style="font-size: 12pt;" class=""><o:p class=""></o:p></span></div>
<div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">
<span lang="EN-GB" style="" class=""><o:p class=""> </o:p></span></div>
<p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;">
<span lang="EN-GB" style="color: rgb(51, 51, 51); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">Please share your inputs by e-mailing: </span><span lang="EN-GB" style="" class=""><a href="mailto:recoveryhumanface@socpro.list.ilo.org" target="_blank" style="color: rgb(149, 79, 114); text-decoration: underline;" class=""><span style="color: rgb(51, 122, 183); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">recoveryhumanface@socpro.list.ilo.org</span></a></span><span lang="EN-GB" style="color: rgb(51, 51, 51); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">.
To see earlier messages </span><span lang="EN-GB" style="" class=""><a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.recoveryhumanface.org_&d=AwMFAg&c=-dg2m7zWuuDZ0MUcV7Sdqw&r=T63lC49deeX8uMRKw_QRo3PXHbWD4VbV4CgzRL07ISw&m=gViCw5wIW3-nlzqPC_o-YilhUy7NfUNTRKLHeIScAiM&s=inyRP2tarRY2zgkK-rWsMl8jrm9M9v31dVEidBmX-5I&e=" target="_blank" style="color: rgb(149, 79, 114); text-decoration: underline;" class=""><span style="color: rgb(51, 122, 183); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">http://www.recoveryhumanface.org/</span></a></span><span lang="EN-GB" style="color: rgb(51, 51, 51); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">.
This e-discussion is intended to facilitate the exchange of knowledge and ideas; the views expressed by contributors do not reflect the policies of ILO. The discussion is moderated by Isabel Ortiz, contact at<span class="Apple-converted-space"> </span><a href="mailto:isabel.ortiz@ymail.com" style="color: rgb(149, 79, 114); text-decoration: underline;" class="">isabel.ortiz@ymail.com</a><span class="Apple-converted-space"> </span>. </span><span lang="EN-GB" style="" class=""><a href="mailto:sympa@socpro.list.ilo.org?subject=SUBSCRIBE%20recoveryhumanface" target="_blank" style="color: rgb(149, 79, 114); text-decoration: underline;" class=""><span style="color: rgb(51, 122, 183); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">Subscribe</span></a></span><span lang="EN-GB" style="color: rgb(51, 51, 51); background-color: white; background-position: initial initial; background-repeat: initial initial;" class=""> ¦ </span><span lang="EN-GB" style="" class=""><a href="mailto:sympa@socpro.list.ilo.org?subject=UNSUBSCRIBE%20recoveryhumanface" target="_blank" style="color: rgb(149, 79, 114); text-decoration: underline;" class=""><span style="color: rgb(51, 122, 183); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">Unsubscribe</span></a></span></p>
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