The International Trade Union Confederation on Sunday urged for significant democratic reforms within the international financial architecture as a central tenet of its For Democracy campaign, coinciding with the spring meetings of the International Monetary Fund (IMF) and the World Bank.

The spring meetings of the IMF and the World Bank will commence on April 15 in Washington, DC.

Throughout the globe this month, trade unions are rallying around the fight For Democracy within societies, recognizing that it entails much more than merely free and fair elections.

At the heart of the For Democracy campaign lies the concept of a New Social Contract, aimed at ensuring climate-friendly, decent jobs for workers, universal rights, minimum living wages, comprehensive social protection, as well as equality and inclusion for all.

In solidarity with efforts to reconstruct democracy for the collective welfare, workers worldwide are endorsing a global petition, urging International Financial Institutions (IFIs) to pivot their strategies and assist governments in implementing a New Social Contract for workers.

In a critical juncture for the democratic credibility of global governance, the Global Unions have issued a statement advocating for reforms within the International Financial Institutions (IFIs).

These reforms include shifting away from policies that undermine job quality to effectively address significant transformations such as climate change and the digital transition.

Without such reforms, the statement warns these transformations will further exacerbate global inequalities, dividing the world between those who reap the benefits of new technologies and increased productivity, and those whose livelihoods are decimated without recourse or prospects for the future.

Addressing and alleviating the escalating debt crisis. Workers continue to bear the brunt of the international financial system’s inability to resolve the debt crisis, as countries are forced to implement austerity measures, including cuts to social spending and privatization, in exchange for bailout loans.

The statement characterises the current approach as “punitive,” highlighting its potential to lead to a lost decade, imperiling the achievement of the Sustainable Development Goals and undermining the democratic legitimacy of development finance.

ITUC general secretary Luc Triangle says democracy starts in the workplace with fundamental trade union rights and continues in our societies with respect for basic freedoms, but these principles can be undermined at the highest levels of international governance when austerity and neoliberal policy dominate.

The IFIs must also introduce democratic reforms to their structures to effectively address the growing crises of countries struggling under unpayable debts, the climate emergency and a precarious global economy that is rigged to benefit the rich, he said.

“Despite talk within the IFI of new directions and new approaches, we see frustratingly similar results. In practice, their policy advice frequently undermines decent work, social protection, good governance and democracy,” Triangle says.

As leaders in the international financial system with resources and a global development mandate, the IMF and the World Bank must change to fulfil their commitment to equitable and sustainable development through decent work, Triangle concludes.