Human Rights in the Present Global Meltdown

Introduction
Delegates at the World Economic Forum at Davos this year came despondent and lef
t in despair. Both the discussions and the new evidence released at and during t
he Forum indicated that the global crisis was worse than originally anticipated.
The global recession led by the contraction in the United States is transmittin
g itself through global trade. In the last three months (September to D
ecember) alone over 1.2 million jobs have been lost globally and a United Nation
s agency has predicted a worldwide loss of 51 million jobs by the end of this ye
ar. The stock market has been crashing ever since last October and all the corpo
rate giants are facing huge losses and are being forced to cut down on work forc
e. All these things have created a sense of alarm among all the classes of peopl
e especially in the developing and under-developed countries.
What is Recession?
The National Bureau of Economic Research [NBER] defines economic recession as a
significant decline in the economic activity spread across the country, lasting
more than a few months, normally visible in the real gross domestic product[GDP]
growth, real personal income, employment (non-farm payroll), industrial product
ion and wholesale retail sales. In other words, recession is the downward trend
in the business cycle characterized by a decline in production and employment, w
hich in turn causes the income and the spending of the household to decline.
In this essay, I shall be evaluating the negative impact of the global meltdown
on employment and how that violates our human right.

Effect of Global Meltdown on Employment

The negative effects of the crisis will be felt disproportionately in the develo
ping and the under-developed countries. The most profound (and perhaps the most
visible) impact of the recession is on the employment. The economic crisis is ex
pected to lead to significantly higher levels of unemployment. Unemployment is d
efined as the state in which a person is without work, available to work, and is
currently seeking work.
The International Labors Organization [ILO]has predicted that the number of unem
ployed could rise by 20 million by the end of this year and the ranks of the wor
king poor living on less than one dollar a day could swell by 40 million while t
hose on less than two dollars a day could increase by over 100 million. The late
st US Government statistics indicate that the unemployment rate in December 2008
was 7.2%, the highest since January 1993.
The migrant workers are already being affected by the economic recession. Millio
ns of laid-off migrant workers have returned home. They are the first in line to
losing their jobs as they are employed in those sectors that are particularly a
ffected by the economic crisis. They are also generally excluded from social pro
tection in host countries. This is likely to reduce future remittances that have
contributed to reducing poverty in rural areas and adding pressure on unemploym
ent and underemployment.
There is a risk of increased xenophobia as a result of the crisis. The United Na
tions High Commissioner for Human Rights, Ms. Navi Pillay, has in her recent ad
dress last month has expressed her concern over the same as the crisis may lead
to increased discriminatory practices.
While the economic downturn has taken a considerable toll on employment around t
he world, it is the youth who are facing the brunt of the problem. In times of e
conomic crisis, they tend to be the 'last in first out'. Owing to their relative
lack of experience , contacts, and job-search expertise, many youth will have d
ifficulty finding new employment once they have been laid-off.
Evidence from the past crises shows that the economic recessions put a dispropor
tionate burden on women, as women tend to have lower unemployment and social sec
urity benefits.
Slowing or even negative economic growth, together with volatile prices, will pu
t downward pressure on workers' real wages. ILO is predicting that the wages in
2009 is likely to decline by 1% globally.

Right to Work as a Human Right

The International Covenant on the Economic, Social and Cultural Rights, 1966, re
cognizes the right to work, which includes the right of everyone to the opportun
ity to gain his living by work and also stresses upon the States to take appropr
iate steps to the safeguard of this right.
Moreover, the ILO has adopted the 'Convention Concerning Employment Promotion an
d Protection Against Unemployment' in 1988 which has been in force since October
, 1991. The Convention recognizes the need of stable, sustained and non-inflatio
nary economic growth of employment and aims to offer protection against the adve
rse effects of involuntary unemployment by ensuring social security systems that
should provide employment assistance and economic support to those who are invo
luntarily unemployed.
In India, the Constitution of India places a duty upon the government through th
e Directive Principles of State Policy contained in its Part IV, to 'make effect
ive provision for securing the right to work, to education and to public assista
nce in cases of unemployment'(Art.41). Though the Directive Principles of State
Policy are not justifiable rights, but they are fundamental in the governance of
the country and it is the duty of the State to apply these Principles while mak
ing laws. Therefore, the right to work and in turn the right to employment for a
livelihood should be regarded as a human right for how can a person support his
life if their is no means of livelihood, that is, no source of employment. It w
ill be like asking a person to build a building without providing him with the r
aw materials of cement and sand.
Further, Job security is one of the top priorities of a government- one of the g
overnment's principal social obligations. In fact, the Supreme Court has held in
Daily Casual Labour v UOI [(1988) 1 SCC 122(para 9)] and reiterated in Jacob v.
Kerela WA[(1991) 1 SCC 28(paras 8,15)] that 'job-security' is an important ingr
edient of the right to work read in the light of the philosophy of socio-economi
c justice.

Right to Work linked with other Human Rights

It now logically follows that if a person does not have work- a decent source of
livelihood - then he will not be able to have a decent standard of living. His
other basic human rights shall be violated. These rights of the families living
in the poor nations' are grossly violated.
The twin economic and financial crisis threatens the poorer nations' ability to
attain basic human rights, such as right to food, access to water and sanitation
. People in developing countries are still living without access to clean drinki
ng water, education, good health, and other basic services of life. Mr. Miguel D
'Escoto, while addressing the United Nations Human Rights Council in Geneva ment
ioned that there was a profound relationship between access to clean drinking wa
ter and sanitation and the enjoyment of the right to life or health. He added th
at access to water is indispensable for a life of dignity and a pre-requisite fo
r the enjoyment of other human rights.
Also, the right to life enshrined in Art.21 of the Constitution of India means s
omething more than mere survival or animal existence[State of Maharashtra v Chan
drabhan(A 1983 SC 803)]. It includes the right to live with human dignity[Franci
s v. Union Territory(A 1981 SC 746)]. As held by the Supreme Court in the landma
rk Maneka Gandhi case[A 1978 SC 597] that it would include all those aspects of
life which go to make a man's life meaningful, complete and worth living. The Su
preme Court has repeatedly maintained that the right to food is a basic fundamen
tal right essential for the right to life [Kishen v. State of Orissa(A 1989 SC 6
77)] .

As mentioned before, with the global meltdown, the real wages of the workers dec
line. There is inflation. The prices of the basic commodities including food pri
ces and health care costs increase. The purchasing power of the workers decrease
. This implies that he is able to buy less quantity of a commodity at a particul
ar price during recession when compared to the quantity that he would have bough
t at the same price when recession would not have been there. Since savings is n
egligible the workers are forced to cut down their expenditure on basic necessit
ies of life including food. Therefore their standard of living decreases.
The daily wage workers, who are the worst hit by the global meltdown, cannot the
n afford even two meals a day. This clear violation of their fundamental right o
f right to food. Education of their children then seems to be a luxury. Often th
ey stop sending their children to school and make them do some menial jobs that
will fetch some money for the poor family. Isn't this a violation of their human
rights? Such conditions are truly appalling and an affront to human dignity. Th
e downturn in the economies around the world, has undermined the access to work,
affordability of food, housing and water, basic health care and education.
A report, which was compiled before the onset of the financial crisis, entitled
'Still Working Hard, Still Falling Short' based on the data from the United Stat
es Bureau of Labour Statistics had startling figures on poverty in the US. The r
eport found that nearly 10 million families can be called as working poor, that
is 28% of the American families! If these are the statistics before the onset of
meltdown, one can only imagine the current scenario especially in the developin
g and the under-developed countries where the poor population is much higher tha
n this. It is the poorer and exploited section of the working class in these cou
ntries who will suffer the most and be driven into deeper poverty and depravatio
n.
Some Reforms Suggested to Combat Global Meltdown

As Ms. Pillay pointed out on 20 February that the foremost policy of the governm
ent of any State should be to 'ensure that the domestic policy adjustments are n
ot taken at the expense of the poor through cutbacks in basic services and socia
l protection mechanism'. She also appealed to the corporate world to ensure that
their policies and practices do not jeopardize peoples' human rights. A human r
ight approach will contribute to making solutions more durable in the medium and
 long run.
I am of the opinion that the corporate world should create new capacities, ident
ify new engines of growth, hire not fire, and initiate a war on wastes.
The government should start new projects in the public sector with along term st
rategy to generate rural employment and create infrastructure like construction
of roads, fly-overs, bridges at low cost. For example, a power project generates
about 5000 jobs.
The Government can provide self-employment by giving a startup capital to unempl
oyed persons to open small businesses. Other employment generations schemes will
also have multiplier effect.
Providing tax incentives and loans on low rates of interests will also increase
the liquidity in the market, thereby increasing the purchasing power of the indi
vidual.
The government can provide subsidies to company’s to put the employees facing lay-
offs through re-education and training programmers.
The stringent rules followed by the banks while giving loans may also be relaxed
and the rate of interest on the housing loans may be reduced.
The inflationary trend should be controlled and the government should take effec
tive measures to achieve this end.
Special welfare programmed may be initiated for the poor as they are the worst h
it.
Lastly the United Nations should take all possible measures that the human right
s of the people in all the States are protected.
Conclusion
The global economic recession has resulted in redefining the role of the State a
nd of the other actors in safeguarding human rights. It further requires the Sta
te to operationally the human rights approach notably at the local level, where
they matter the most to people. Human rights today are an established concern, w
hich cannot be ignored by anyone. There is a need to develop global ethics and a
new perception of human rights that gives more attention to social and cultural
rights along with the civil and political rights. In conclusion, it is my since
re hope that human rights take up the strong, central and crucial position in th
e global scenario that they deserve. Only by respecting the human rights can we
achieve the goal of sustainable human development.