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ILO-WTO co-publication looks at  how to make globalization 
socially sustainable  
 
 
Social protection, investment in public goods and well-functioning markets are vital to make 
globalization socially sustainable, according to a co-publication by the International Labour Office 
and the Secretariat of the World Trade Organization launched on 20 September 2011. 
"Making Globalization Socially Sustainable " underlines  globalization's potential to stimulate 
productivity and growth but  highlights the importance of pursuing trade, employment and social 
policies together in order to harness this potential. The book contains contributions from leading academic experts who analyse the various channels through which globalization affects jobs and 
wages.  
At the launch of the publication, WTO Director-Gen eral Pascal Lamy and ILO Director-General Juan 
Somavia said that this book will help to improve the understanding of how governments can give 
globalization a strong social dimension.  
The publication reasserts the positive role that trade liberalization can play in improving efficiency 
and thus growth. It emphasizes the important role for governments in investing in public goods and in strengthening the functioning of markets that are crucial for globalization to be growth-
enhancing. The key role of social protection is highlighted, as is the need to adjust social 
protection systems to local conditions.  
The volume is organized around three main themes that have received significant attention 
recently: employment, uncertainty in the job market  and inequality. The book deals with questions 
such as the short-term effects of globalization on unemployment rates (Holger Görg) and the long-
term effects of globalization on the structure of employment in developing economies (Margaret 
McMillan and Dani Rodrik). Employment effects during the Great Recession of the late 2000s are 
addressed in a chapter by David N.F. Bell and David G. Blanchflower. John Haltiwanger explores 
the uncertainty in labour markets while William Milberg and Deborah Winkler examine the 
uncertainty perceived by workers who are affected by import competition. Policies to address how external factors affect labour markets are discussed, with particular attention on the viability of 
policies in developing countries (Devashish Mitra and Priya Ranjan). One chapter is dedicated to 
the latest evidence on the distributional effects of globalization (Nina Pavcnik) and this is followed by an analysis of the capacity of national gove rnments to address distributional concerns in a PRESS/640 
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  globalized world (Carles Boix). The book ends wi th a chapter on the role of education and skills 
policies in spreading the benefits of globalization (Ludger Woessmann). 
The publication highlights three challenges faced by policy-makers as they seek to ensure the 
social sustainability of globalization.  First, the structure and levels of employment resulting from 
increased openness can be more or less favourable to the labour force and to economic growth. Second, openness – while helping to offset domestic difficulties – can increase the vulnerability of 
domestic labour markets to external factors, as witnessed during the Great Recession. Third, the 
gains from globalization are not distributed equally and some workers and firms may lose in the 
short and even medium term. The authors of this  book discuss policy responses to these three 
challenges.  
The publication is a product of the collaborative research programme of the International Labour 
Office and the WTO Secretariat and has benefited from funding by the International Chamber of 
Commerce (ICC) Research Foundation.  "The Inte rnational Chamber of Commerce will draw from 
the findings of this research project to make co ncrete policy recommendations to global decision 
makers,” said ICC Chairman Gérard  Worms. “The ICC Research Found ation is very pleased to have 
supported this project, which will contribute to a better understanding of making globalization sustainable." 
 
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