'Social, economic stability inseparable'

ITALY: The world economy cannot recover without concrete steps to assure social stability, Group of Eight labour ministers said Monday as the OECD warned of deep recession in wealthy countries and worldwide hardship.

"Strong international coordination is vital to place employment and social protection at the centre of the global response effort," ILO Director General Juan Somavia said at a G8 'social summit' in Rome.

"We overvalued the market, undervalued the state and devalued the dignity of work, the protection of the environment and social solidarity in the community," he said at the meeting of G8 labour ministers and their counterparts from six emerging economies.

"The 14 countries represented here account for approximately half of the world's labour force. What is debated here can potentially set a trend of huge significance," Somavia said.

From Monday, the three-day meeting of the so-called "Group of 14" has included the labour and social ministers of emerging giants China, India and Brazil as well as Mexico, South Africa and Egypt.

The Rome meeting comes amid dire warnings of social unrest and follows protests in several European cities ahead of a summit of the Group of 20 developed and developing nations on the financial crisis, set for Thursday in London.

Labour Minister Maurizio Sacconi of host Italy said the Rome gathering would urge the G20 leaders to "consider social stability as a fundamental element of economic stability," the ANSA news agency reported.

Sacconi said he hoped the London summit "will end with a concrete decision on the need for action on financial governance and stability in such a way that the pathologies that led to the crisis do not recur." The Italian minister also called for stronger predictive mechanisms.

"We've had lots of forecasts but no early warnings, not just from international bodies but also (from) all the think tanks and ratings agencies. That shouldn't happen anymore," Sacconi said.

"We need instruments that are capable of predicting and dealing with shocks" to the economic system," he added.

Organisation for Economic Cooperation and Development chief Angel Gurria said restoring global economic growth was a moral responsibility.

"Restoring global growth is an economic and political priority but also an ethical, moral, social and human imperative," he told the ministers. Warning of a full blown "social crisis with scarring effects on vulnerable workers and low-income households," Gurria urged "quick and decisive action" by leading economies to boost social protections.

Rome, Tuesday, AFP