The Governance of the Financial Sector and its Impact on the Decent Work Agenda

Proposals for a sounder financial system focus on stricter regulation of private banks.  However, private actors frequently circumvent regulation. Are public banks a better alternative? The record on how public banks performed in the crisis is mixed. Some public banks have stayed outside the casino, while others were major gamblers. The following questions are therefore addressed:

• How did public banks fare in the current crisis?
• Does the governance structure differ between the sound and the reckless public banks?
• Do public banks provide the much-needed finance for development?
• Can the public banks make their loans conditional on the adherence to the Decent Work agenda?

The volatility of the financial system has destabilized many economies with detrimental effects on employment, working conditions and social security schemes. We attempt to identify a governance structure for the financial system that contributes to the ILO 'Decent Work' agenda.