This report focuses on the role that universal international labour standards (ILS) can play in promoting social progress in the context of economic globalization. It presents the case for and against ILS. It shows how they can contribute to economic, social and political development. It identifies the dividends that can be earned by adhering to standards, both for developed and developing countries. The report also examines what obstacles are holding back progress on the compliance with standards and discusses the institutional setting required to benefit fully from ISL.