Beate Andrees, ILO Regional Director for Europe and Central Asia

As the world undergoes major technological and economic shifts, the aim isn’t to resist change, but rather to shape it for fairness, resilience and decent work. Countries that are now drafting a new labour law, like Serbia, must embed these values through strong social dialogue and tripartite cooperation

As debates around deglobalisation gain momentum and its global impact comes into focus, the International Labour Organization offers a grounded perspective on the shifting world order. “Deglobalisation poses risks to jobs and equality, but also offers a chance to strengthen domestic industries, skills and regional ties,” says Beate Andrees, ILO Regional Director for Europe and Central Asia.

Whatever direction globalisation takes, the ILO is seeking that its Declaration on Social Justice for a Fair Globalisation remains a guiding compass, advocating strong tripartite dialogue to navigate transitions and counter protectionism. The goal ultimately isn’t to resist change, but to shape it in ways that deliver equitable outcomes, resilience and decent work for all.

Despite having driven progress and peace, has globalisation failed to distribute its benefits evenly, as the ILO suggests?

— Previous ILO reports and analyses have highlighted that globalisation has produced mixed outcomes across different countries and regions—with disparities in job creation, wage growth, productivity and poverty reduction. These uneven results underscore the importance of managing globalisation through strong social policies, principles of decent work and inclusive institutions.

In this context, the ILO doesn’t view the current deglobalisation trend as either wholly negative or positive. Rather, we see it as a complex phenomenon that brings both challenges and potential opportunities.

Whether driven by rising trade protectionism, geopolitical shifts or structural economic changes, deglobalisation risks undoing hard-won gains in employment and poverty reduction, particularly in economies that are heavily reliant on global trade, foreign investment or remittances. It may also exacerbate inequalities in the absence of proactive social and labour market policies. However, it also presents an opportunity for governments and social partners to accelerate industrial diversification, strengthen domestic value chains, invest in skills and foster regional economic cooperation.

In regions such as Central Asia, for instance, countries that have more diversified economies, like Kazakhstan and Uzbekistan, may be better positioned to adapt, while remittance-dependent economies like Kyrgyzstan and Tajikistan could face more significant risks, including rising poverty and employment insecurity.

Many countries under your mandate— such as those in Central Asia and our region—are trying to leapfrog competitors by promoting innovation and driving technological change in their economic structures. Do you see signs of this approach starting to pay off on the labour market?

— The adoption of digital technologies has been modernising economic activities across Central Asia, creating new types of jobs and boosting productivity significantly. This involves fostering a dynamic private sector, investing in research and development, and encouraging the adoption of new technologies to achieve higher levels of economic growth.

These developments are helping to diversify economies that have traditionally relied on extractive industries and are recognising that depending solely on traditional industries or resource extraction isn’t enough to ensure long-term prosperity. In parallel, labour administration systems are also undergoing digital transformation. Job-matching platforms are now widely available, efficiently connecting employers with jobseekers. Moreover, comprehensive social protection systems are increasingly harnessing digital technologies to improve service delivery and accessibility.

Of course, technological change does bring challenges, including job displacement in certain sectors, limited digital infrastructure, regulatory hurdles and a need for greater investment in human capital, as well as the introduction of just transition principles to socioeconomic development. This makes it all the more important to invest in re-skilling and up-skilling initiatives to ensure that workers are equipped to adapt to the evolving labour market.

Some foreign investors in Serbia that were initially attracted by low labour costs are now beginning to pull out. Many economists say the country is caught in a middle-income trap. What steps should Serbia take to transition towards sustainable, high-value growth while preserving labour rights?

— In order to move towards sustainable, high-value growth, countries must pursue a development strategy that balances economic upgrading with social equity. This requires shifting to higher-value, innovation-driven sectors through investments in education/ skills development, technology and infrastructure. At the same time, respect for labour – such as through fair wages, a safe and healthy working environment, and collective bargaining rights – must be guaranteed to ensure growth is inclusive and sustainable. Ultimately, long-term competitiveness comes not from cheap labour, but from a skilled, healthy and motivated workforce.

Governments across the region often face challenges with outdated labour laws, weak social dialogue and underdeveloped social protection systems. What general reforms would you recommend for the region—and specifically for Serbia, as it begins drafting a new Labor Law?

— Assuming that by ‘the countries of the region’ you are referring to those that aspire to EU accession, promoting social dialogue will be key for all of them. Governments will only be able to develop and implement sustainable labour and social policies if they consistently engage in dialogue with representative employers’ and workers’ organisations, as they have first-hand knowledge of labour market challenges and short-to medium needs and opportunities. Labour laws and social protection systems should be developed to enable the shift to higher value, innovation- driven economic growth, while protecting labour rights to ensure growth is inclusive and sustainable.

The ILO’s core position remains that economic globalisation— whatever its form—must be governed by fairness, social justice and the protection of workers’ rights

In this context, comprehensive and rights-based social protection systems must be seen as a key component of modern labour market institutions. These systems should aim to provide adequate protection throughout the life cycle – including unemployment benefits, pensions, healthcare, maternity and sickness coverage – thus ensuring that no one is left behind, particularly vulnerable groups such as informal workers, youth and women. For Serbia, as it begins drafting a new Labour Law, this is a timely opportunity to align national legislation not only with EU standards, but also with ILO Conventions and Recommendations. This includes embedding clear linkages between employment policies and social protection measures, promoting transitions from informal to formal employment, and strengthening mechanisms for financing and delivering social protection in a sustainable and equitable way.

Serbia has long struggled with an outdated labour law and a weak level of social dialogue. How does the ILO support the strengthening of negotiations between social partners and the improvement of labour legislation in such contexts?

— The ILO is currently implementing an EU-funded project in Serbia to promote social dialogue and collective bargaining. By working together with the government, employers and trade unions, this project seeks to develop an enabling legal and policy framework wherein social dialogue and collective bargaining become second nature for all involved as a means to ensure equitable growth, as well as ensuring that all three parties have the capacity to participate in a constructive and well-informed manner.

Are the countries of the region making the most of the resources and support your organisation offers, or do you see gaps in how these opportunities are being used?

— Many countries of the region are engaging actively with the ILO’s expertise and support. We’ve seen strong collaboration through Decent Work Country Programmes, capacity-building and policy advice.

However, there is always room to deepen this engagement. In some instances, limited resources or institutional capacity can hinder the full utilisation of ILO support. More could be done to leverage our tools on skills anticipation, digital labour platforms, labour migration and just transition planning.

Which ILO projects – in the region and in Serbia specifically – do you believe have the greatest potential to drive meaningful, long-term change?

— The ILO aims to achieve decent work for all in the sub-region, which, firstly, means protecting labour rights and ensuring compliance with labour legislation; secondly, promoting quality ememployment opportunities that provide at least a living wage to workers; thirdly, strengthening social protection systems so as to make it universal; and, fourthly, making social dialogue effective and a tool of real governance.

Implementing projects that support these objectives drives long-term change in the labour world. For example, we are managing a project to support the implementation of the youth guarantee in the Western Balkans. Through this project, we build the capacity of key institutions and stakeholders so that they can roll out a youth guarantee programme based on the model of EU member states.

It means the public employment services will be able to guarantee either an employment or a training opportunity to any young person who is either not in employment or is in education or training, within four months of having that status. Over the medium to long term, this will significantly reduce the number of youths who either aren’t participating in the labour market at all or are unemployed, providing them with high-quality employment or training.

We’ve launched two projects in Serbia that have great potential to drive meaningful, long-term change. One is on social dialogue and the other is on improving the occupational safety and health system. These two projects work to upgrade the legislative and regulatory frameworks, as well as to strengthen existing systems and build the capacity of key stakeholders – trade unions and employers’ organisations in the case of the social dialogue project, and labour inspectors in the case of the OSH project.

Looking at your portfolio in Europe and Central Asia, which countries would you highlight as being strong performers—and what lessons or approaches from their experience could serve as inspiration for Serbia?

— I would caution against generalising or ranking countries’ performances, as each country is in a unique context, with its own set of challenges and opportunities. That said, there are valuable lessons to be drawn from specific experiences across the region.

For example, Uzbekistan has taken notable strides in advancing labour reforms, including the ratification of key ILO Conventions such as C190 (Violence and Harassment) and C156 (Workers with Family Responsibilities), and exerted efforts to strengthen labour inspection and reduce informality. Similarly, Kyrgyzstan has taken important steps to expand social protection and promote inclusive employment policies.

These experiences show that – with strong political will, institutional reforms and sustained tripartite dialogue – meaningful progress is possible. While each country must chart its own path, such examples can offer valuable insights for others—including Serbia — in designing and implementing policies that advance decent work and social justice. The ILO remains committed to facilitating this exchange of experiences across the region.