The New Social Contract, between governments, people, civil society, business and more, must integrate employment, sustainable development and social protection, based on equal rights and opportunities for all.
Labor market policies, combined with constructive dialogue between employers and labor representatives, can improve pay and working conditions. Labor representation is also critical to manage the challenges posed to jobs by technology and structural transformation, including the transition to a green economy, said Guterres.
The gradual integration of the informal sector into social protection frameworks is essential. A changing world requires a new generation of social protection policies with new safety nets including universal health coverage and the possibility of a universal basic income.
Establishing minimum levels of social protection, and reversing chronic underinvestment in public services, including education, health care, and internet access, are essential. Equally important are affirmative action programs and targeted policies to address and redress historic inequalities in gender, race or ethnicity that have been reinforced by social norms, he said.
Taxation has also a role in the New Social Contract. Everyone -- individuals and corporations -- must pay their fair share. Governments should also shift the tax burden from payrolls to carbon. Taxing carbon rather than people will increase output and employment, while reducing emissions.
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