ADVANCING LABORS VISION IN THE NEW ECONOMY

1
POSTAL GLOBALIZATION AND WORLD BANK AND
WTO-GATS

2
Two global viruses at work

• World Bank (and IMF) pushing for the accelerated
  liberalization of national economies and the
  postal sector in the name of efficiency and
  global competition

• World Trade Organization (WTO), through the
  General Agreement on Trade in Services (GATS),
  pushing for borderless national economies without
  trade restraints
• in the name of growth and development

3
Postal reform according to the World Bank
Postal reform is a strategy to convert Posts
from protected government organizations into
competitive, customer-oriented businesses. --
Global Information and Communications
Technologies (GICT) Department (NOTE GICT in
charge of all postal projects funded by WB)
How?
4
WBs postal reform measures
Corporatization -- transformation of
postal services into a corporation with distinct
legal personality, corporate structure and
formal hold on postal service assets such as
offices, buildings, land and equipment.
Privatization -- in small packages or in one
big sale. Deregulation allowing entry of
private players (domestic and foreign)
5
WBs postal loan components

• Hiring of international consultants to give
  advice on laws and rules for new postal
  regulatory framework (technical assistance for
  themselves?)
• Gradual liberalization of the sector
• Restructuring of Ministry of Post and Telecoms
  (separation)
• Development strategy to modernize and promote
  competitiveness (read corporatization and
  privatization)
• Policy to lure investors in sector (read
  deregulation)

6
Reality Privatization delivered in packages

• Privatizations many faces
• Outright privatization of the service, via
  corporatization
• Indirect privatization by allowing unregulated
  entry of private sector players
• Privatization by neglect, allowing service to
  suffer and degenerate
• Focusing on core business to be retained

7
How about WTO-GATS?

• Part of WBs technical assistance -- help
  borrowing countries become GATS-compliant
• GATS seeks to open up a service sector via
• 4 modes 1. cross-border
• 2. consumption abroad
• 3. commercial presence
• 4. movement of service personnel

8
Goal of WTO-GATS

• Open up a service industry/sector by removing or
  minimizing role of government
• GATS provisions
• -- covers all services except government service
  provided in the exercise of government
  authority, meaning not provided by any private
  service provider
• -- against abuse of monopoly position by
  government
• Hence, focus on opening up industry/sector
  through the various modes and so-called
  pro-competition rules

9
Immediate targets of GATS
Under modes 1, 2 and 3 -- international
mail courier services express
delivery parcels and packages related
services
10
Real goals of GATS/WB

• Remove governments role
• Allow foreign service providers in the name
• of efficiency and competition
• Note competition rules defined
• as no government monopoly
• and yet no rules against
• global monopolies

11
Status of GATS negotiations

• 1994 GATS included in WTO, 2004 target year
  for full implementation
• 1999, Seattle collapse -- delays in talks
• 2002, Doha revival of talks
• 2003, Cancun collapse new delays
• July 2004, Geneva Framework Agreement
• Talks Requests (2002-03)
• Offers (May 2005 deadline)
• December 2005 Finalization in HK

12
Challenges facing postal unions

• Countering WB/GATS reform arguments
• Yes to modernization w/o going private
• Privatization neglects underdeveloped areas,
  social mission abandoned
• Public monopoly becomes private and even
  global
• Need to get involved in GATS talks
• Need to draw up alternative development program
  for the sector

13
Some emerging problems and issues

• Liberalization related to other industries ----
  telecom, aviation, transport, etc., all
• of w/c are being covered by GATS
• Technology not only affecting traditional postal
  business but also leading to bundling of services
  where postal is only part, e.g., logistics chain
  service
• Unions and workers generally kept at the dark on
  changing regulatory policies, trade talks, etc.

14

• MAJOR TASKS FOR LABOR
•  
• 1. Revisioning development under globalization
• Pushing for social, labor and economic coherence
• Different countries different development
  strategies (No to one size fits all, No to one
  model for all)
• Fighting for a voice in the trade talks
• 5. Revisioning unionism and organizing entire
  industry/sector
• Strengthening solidarity
• Putting people first in the development process