New York: Speech by Minister of Labor and Social Welfare Suad Numanović at AICESIS General Assembly

International Association of Economic and Social Councils and similar Institutions (AICESIS)
General Assembly AICESIS, New York, 6 – 8 July 2010

„The role of ESCs in the new economic, social and environmental world governance“
Speech of President of Social Council of Montenegro and Minister of Labor and Social Welfare Suad Numanović

Dear President Marzano,
Dear Colleagues,
Ladies and Gentlemen,


It is my distinct honor to address this General Assembly, as the President of the Social Council of Montenegro.

Montenegro is in the past two decades, undergone considerable political, economic and social transformation. After the democratic restoration of its independence on 2006, our country achieved political and economic stability, and joining the European Union is our strategic goal, and this forms the basis of national policy and program reform processes, which we are implementing. With its active role Montenegro significantly contributes to the improvement of relations and cooperation in the region and opens up greater opportunities for its faster progress towards the European Union.

Montenegro's economy is small, market-oriented and open.

In the last two or three year before global economic crisis started, we had a high rate of economic growth, high inflow of foreign direct investment and the positive trends in the labor market. With tourism as the moving economy branch, today we have over 70% of employees in the service sector, small and medium enterprises make up over 90% of the economic structure and generate about 60% of the gross domestic product.

The economy of Montenegro, as well as many larger and more developed economies, could not avoid the negative consequences of the global economic crisis. Montenegrin government has reacted by adopting and implementing a many anti-crisis measures, and with the responsible attitude and behavior of social partners, has managed so far to respond positively to the crisis.

The transition process, economic crisis, strengthening of contemporary globalization trends as an expression of technological information revolution, are also opened many new challenges in our country Montenegro.

Precisely this situation emphasizes importance of the social dialogue both at national and at a broader scale. And it is important that all participants in the dialogue are in the same boat, because from such a logic of social partnership and dialogue derives its purpose, strength and effectiveness.

Social dialogue in Montenegro is a constitutional category that is closely defined by special laws, primarily by the Labor Law, the Law on Social Council and the Law of Representativeness of Trade Unions.

Social Council of Montenegro has 33 members: 11 representatives of the Government, 11 representatives of employers and 11 trade union representatives. The mission and goal of the Social Council are establishment and the development of social dialogue on issues of importance for the realization of economic and social status of employees and employers.

The model of our Social Council is European concept that economic policy, employment policy and social policy are in the interaction. We are making great efforts and strive for the improvement of partnership interaction, with the fact that societies in transition, including our own, can not achieved all of this in a short time.
I believe that further European integration processes will significantly contribute to the strengthening of social dialogue in Montenegro. In this regard we are very grateful to the International Labor Organization, which we continuously provide support for the promotion of social dialogue.

Major changes in recent years have shaped the economy, business environment, labor market and the principles of sustainable development.

The new economic model must be economically efficient, socially rightful and environmentally sustainable. He needs to redesign policies that have led to inequality of national economies over the past two decades. Economic and social councils, the first at the national and through the strengthening and development AICESIS and at the global level, should handle that the issues of employment, social protection, environment and sustainable development have a strong priority in response to the crisis. I want to point out, that Montenegro as an ecological state strives to participate in global efforts to slow climate changes, mitigate their effects and to preserve the environment for future generations.

Councils as institutional framework of social dialogue should create an initiative for banks to re-run credit markets primarily as support to small and medium enterprises, to identify sectors that can provide the best opportunity for future development, especially "green jobs."

Ladies and Gentlemen,

Finally I would like to stress that this is the time when we need to invest in people – in their education and in improvement of their lives, with an emphasis on youngest, the oldest and persons with special needs. Through social dialogue - as a priority we should save jobs, with an active labor market policies and socially responsible management.

The Role of Economic and Social Councils in the sphere of the new economy, management of the social issues and environmental issues, is that his constituents essentially share the burden and responsibility of achieving consensus on the most important socio-economic issues that provide sustainable development and cohesion of society as a whole.

Thank you.