Bensusán, Graciela --- "Labour law, inclusive development and equality in Latin America" [2016] ELECD 1539; in Marshall, Shelley; Fenwick, Colin (eds), "Labour Regulation and Development" (Edward Elgar Publishing, 2016) 162

Book Title: Labour Regulation and Development

Editor(s): Marshall, Shelley; Fenwick, Colin

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781785364891

Section: Chapter 6

Section Title: Labour law, inclusive development and equality in Latin America

Author(s): Bensusán, Graciela

Number of pages: 45

Abstract/Description:

In global terms, Latin America is still the region that displays the greatest inequalities, despite the political transition to democracy and the efforts made in some countries in the 2000s to bolster state intervention in an attempt to turn back the worst effects of neoliberal policies. Although improvements in the main social and labour indicators have undeniably been observed, coinciding with a period of economic boom, nevertheless we need to take stock within this new context of how appropriate (or inappropriate) labour institutions and policies are for achieving a significant reduction in the inequality that originated in the labour market, bearing in mind that this was one of its original aims. This question is closely linked to the development style followed within the region. Three decades after a growth model associated with neoliberal globalisation was adopted, it can be seen that the marked social and economic inequalities inherent in this style of development not only continue to exist but have increased, and are having consequences for long-term economic growth (God'nez, 2011: 102). However, market forces driven by globalisation are not the only explanation for this phenomenon. The very institutions and policies that should have offset some of the more negative effects on the labour market only exacerbated these by introducing greater flexibility to the employment system and weakening both the trade unions and the mechanisms for their application, as well as social protection systems (Stiglitz, 2012: 106–107). The social costs of these market-oriented policies are at the root of the institutional transformation and changes to public policies that were made in some countries in the region in the 2000s to restore the original meaning of labour law (in terms of worker protection) and to extend social protection to excluded groups, thus improving the quality of jobs (Cook, 2007; Mesa Lago, 2010: 29–37; Weller and Roethlisberger, 2011).