EMPLOYMENT AND TRAINING PAPERS 18 Economic integration in Latin America: Impact on labour

other countries with associated Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose. The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address. Foreword In this paper the author reviews evidence on growth, unemployment and real wages in Latin America in recent years. He finds that there has been no simple inverse relation between unemployment falling and real wages rising. It would appear that real wages can rise even though unemployment remains high; this suggests that economic liberalization and outward orientation have changed some basic parameters of labour market functioning. However, it also suggests that the benefits of growth are being spread even less effectively than before from the point of view of achieving a less unequal distribution of income. Above all growth has become decreasingly unemployment reducing. The author considers that the evidence points to the need to strengthen workers' bargaining power through a far better implementation of the ILO's core international labour standards. He quotes the ICFTU (International Confederation of Free Trade Unions) to demonstrate that many of the principles of these conventions are poorly applied in Latin America. He then considers the possibility of linking improved respect for labour standards with the operation of regional trading agreements, noting that the provisions in NAFTA and MERCOSUR relating to labour rights are weakly supported. He points out that these trading agreements consider and protect the rights of capital …