UNCHECKED GLOBAL ECONOMIC FORCES INTERFERING WITH SOCIAL PROGRESS, PHILIPPINES TELLS COMMISSION FOR SOCIAL DEVELOPMENT

12 February 1998

Press Release
SOC/4435

UNCHECKED GLOBAL ECONOMIC FORCES INTERFERING WITH SOCIAL PROGRESS, PHILIPPINES TELLS COMMISSION FOR SOCIAL DEVELOPMENT

19980212 Says Asian Financial Crisis Threatens Cohesion; Presentations Made on Implementation of 1995 World Social Summit

Unchecked economic forces, unleashed by market globalization, were interfering with social progress, the Commission for Social Development was told this morning, as it continued its general discussion on promoting social integration. It was considering that theme in the context of reviewing efforts to implement the goals of the World Summit for Social Development (Copenhagen, 1995).

The Asian financial crisis threatened to weaken social progress and cohesion, said the representative of the Philippines. Ironically, the crisis had been caused by the same forces that brought unprecedented growth: the liberalization and globalization of trade and investment. The crisis had shown that free market forces would not automatically translate into social progress. National action and regional cooperation were needed to safely harness the socio-economic forces unleashed by unfettered economic energies.

In other presentations on national efforts made to implement the goals of the Social Summit, the representative of Egypt said his country had created a plan of action for development that extended until the year 2017. It emphasized broadening development to include all parts of the country, doubling the gross domestic production (GDP) every 10 years and creating an atmosphere for attracting foreign investment.

Pakistan's representative described his country's efforts to forge social development in the face of formidable poverty. The Government was launching a Pakistan 2010 Programme, which aimed to create an enlightened society based on Islamic values of justice and equity. When the General Assembly held its follow-up to the Social Summit in the year 2000, he hoped Pakistan would be able to present a record of achievements in the social sector.

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Also this morning, the Commission continued its general discussion on a sub-theme of the Summit: promoting social integration and justice. Statements on that topic were made by the representatives of France, Romania and Chile. representative of the United Nations Educational, Scientific and Cultural Organization (UNESCO) also spoke on that topic, as well as a representative of the Grey Panthers, a non-governmental organization.

The Commission also held an non-governmental organizations segment, as part of its effort to include civil society organizations in the debate on social development. After hearing opening statements from six non- governmental organizations, Commission members participated in an exchange of views. Non-governmental organizations involved in the discussion were: the American Association of Retired Persons; the International Council on Social Welfare; the Zambia NGO Coordinating Committee; the International Confederation of Free Trade Unions; Pax Christi International; and Social Watch Asia.

The Commission is scheduled to meet again at 3 p.m. today, to conclude its general discussion of promoting special integration and justice.

Commission Work Programme

The Commission for Social Development met this morning to continue its consideration of the promotion of social integration. It was also scheduled to hear three presentations on regional and national efforts to implement the goals of the World Summit for Social Development (Copenhagen, 1995). In addition, the Commission was expected to hold a dialogue with participants from non-governmental organizations, as part of its effort to open debate to experts and civil society organizations in the field of social development.

The Commission had before it a draft declaration of interdependence (document E/CN.5/1998/6), submitted by the Dominican Republic. By the text, States would affirm that human relations were characterized by interdependence. They would recognize that people were not members of isolated groups, or fragmented, independent worlds, but rather part of a unified whole. Further, without such recognition, human relations were inevitably distorted. States would resolve to formulate all United Nations programmes and policies with those truths in mind, reflecting the spirit of social reciprocity.

(For background information on other reports before the Commission, see Press Release SOC/4430 of 9 February.)

Special Presentations

CIELITO HABITO (Philippines) said his Government had set its own national targets and goals in conformity with its international commitments and national mandate to improve the quality of life of its people. It had been guided by a vision and strategy called Philippines 2000, which sought broad-based development through mutually reinforcing thrusts of people empowerment and global competitiveness. The first order of business on the agenda was to provide an enabling environment for sustainable human development, which involved: providing for economic stability and sustained growth; peace and unity, especially with rebel groups; effective and responsive governance; and working partnerships among government, civil society and the private sector.

He said that in past years, the Philippines' political stability had faced threats from three fronts of rebellion: communist insurgents, Muslim secessionists, and military reformists. The Government had reached out to make peace with all three. To date, landmark peace agreements had been forged with two of them. The Government had also created a number of grassroots efforts to deliver services, such as health care, education, livelihood assistance and environmental protection. By creating that enabling environment, efforts towards poverty alleviation, employment expansion and social integration stood on much firmer ground.

He said his region was very much in the news recently, due to an economic crisis that threatened to weaken the social progress and cohesion that had been built over the years. Those problems had been caused, ironically, by the same forces that brought unprecedented growth: the liberalization and globalization of trade and investment. The crisis showed

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that the free market, in itself, would not automatically translate into social progress. Government efforts had been taken to ensure that social development targets were not unduly sidetracked by the corrective economic measures taken in response to the crisis. Moreover, concerted national action and regional cooperation were needed to harness the socio-economic forces unleashed by the unfettering of economic energies.

NAZAR MOHAMMAD SHAIKH, Director of the Social Sector Division, Prime Minister's Secretariat of Pakistan, said that in South Asia, more than

1.3 billion persons lived below the poverty line. In the region, 50 per cent of children were underweight and the adult illiteracy rate was the worst in the world. Millions lacked safe drinking water and basic sanitation. In light of those realities, and in keeping with its commitment to the goals of the Social Summit, the Pakistani Government had introduced policies to promote social development. However, the achievement of the Copenhagen goals remained a formidable challenge, particularly in light of the country's financial constraints.

Economic growth did not automatically translate into human development, he continued. That link must be developed through conscious efforts. His Government had initiated broad structural adjustments and introduced agricultural and economic reforms. Governmental institutions were being made accountable. Public-private partnerships were being forged. With decentralization as a theme, good governance was being promoted and privatization accelerated. Priority areas included the strengthening of gender equality and social safety nets. Also, an extensive poverty alleviation programme was being implemented.

The Government was launching a Pakistan 2010 Programme, aimed at creating an enlightened society based on the Islamic values of justice and equity, he said. The Programme would correct existing social distortions, such as ignorance, disease and poverty. When the General Assembly held its special follow-up to the Social Summit in the year 2000, he hoped and expected that Pakistan would present a laudable record of achievements in the social sector.

MAGED ABDELFATTAH (Egypt) said his country's development strategy was focused on, among other things, the optimum utilization of human entities, without marginalizing groups. Those efforts gave impetus to human development, democratic practices and the rule of law. His country has created a plan of action for development that extended until the year 2017. It emphasized broadening development to include all parts of the country, as well as doubling the gross domestic product (DSP) every 10 years and creating an atmosphere for attracting foreign investment. That document also confined the role of the Government to specific strategic projects.

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Development efforts had also focused on the care and stability of the Egyptian family, which included improving the status of women and creating institutions for women and children in rural areas. The Government was also attempting to extend the umbrella of social insurance to disadvantaged groups. In addition, the Government had made it clear that education and training were the right of every person. The Government had doubled its spending on education in the last 10 years and started a number of programmes to combat illiteracy. Social development was based on such essential elements as the need for shelter, a clean environment, health and social insurance.

His Government realized that it had to modernize a number of governmental and administrative systems. The legal system needed to be streamlined, for example, as well as the municipal administrative system. That effort had helped free people from impediments in seeking justice and alleviated some burdens to social reforms. A social development fund was created in 1991 to alleviate the burden on vulnerable disadvantaged groups. It had provided 247,000 job opportunities and had helped 19.5 million people.

ANNIE DE CALAN (France) said that underlying the principle of social integration was the right of all people to participate fully in public life. Her Government recognized the cultural specificities of groups that had settled in its territory and welcomed their contribution, as part of the evolution of French society. It sought to enable such groups to participate in French society, while maintaining links with their cultures of origin.

The Government was making concerted efforts to promote social inclusion, including the adoption of a series of related measures, she said. Social exclusion had many aspects and those were being addressed through initiatives involving education, employment and access to rights. Also, France was focusing on measures to fight vulnerability and prevent exclusion. Among measures already implemented, the Government had launched a plan last summer to employ hundreds of thousands of young people.

Partnership was another essential principle, she said. The State had primary responsibility for implementing principles of social inclusion. In addition, however, the French Government was turning to associations that worked closely with deprived groups. She stressed the importance of creating partnerships between those with and without technology.

NORICA NICOLAI (Romania) said his country had associated himself with the statement made for the European Union at yesterday's meeting. Governments bore chief responsibility for developing and implementing social development policies. However, those objectives could not be realized without the participation of civil society and the private sector.

In the past few years, democracy and human rights had been promoted in

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Romania, as it was transformed into a market society, he said. The social costs of the high unemployment rates had a direct impact on social inclusion. Aware of the needs to harmonize the market economy with social development, the Government had focused on equalizing levels of development among different regions, stimulating civil society, combating corruption and strengthening the rule of law. It had also developed mechanisms for stimulating partnership between all actors at the national and ministry levels.

Emergency short- and medium-term programmes had been implemented and socially responsive legislative and institutional frameworks had been developed, he continued. Local initiatives to provide for social services for the disadvantaged were particularly encouraged, through concrete moral and material assistance.

Romania had received valuable assistance from the European Union in its efforts to promote social development, he said. His country attached great importance to the principle of equal opportunities for men and women. Significant progress had been achieved in that area, both in the creation of appropriate legislation and in overall mainstreaming of the gender perspective.

REINALDO RUIZ (Chile) said the unequal distribution of the fruits of growth had given rise to a social and economic gap between some groups of society. The most vulnerable groups of society, such as women, children and those with disabilities, often fell into that gap and it presented the Government with new challenges. In his country, the gap between rich and poor was a key issue. While the richest 20 per cent of people had most of the wealth, the poorest 20 per cent received only 4.1 per cent of the country's income. Nationwide and community tools were established to address that problem and a data base was created to coordinate the effort.

He said the key to the success of government programmes for integration was to direct them at specific groups and areas. For example, the programme to help the people living in shanty towns, which was about 5 per cent of the population, had been particularly successful. Programmes had also addressed the problems of women who were heads of households and unemployed young people and funds had been created to help indigenous peoples, the disabled and the elderly.

While considering specific programmes, however, governments should maintain their efforts for overall development, he added. Those specific problems should not be confused with social policy. The eradication of poverty, for example, was not just about creating special programmes for the vulnerable, but required efforts on many levels -- economic, social and governmental. While programmes should be focused, governments should avoid creating institutions just for the poor and vulnerable. Creating institutions that were exclusively for the poor would only continue the cycle of poverty.

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NINA SIBAL, Director of the New York Office of the United Nations Educational, Scientific and Cultural Organization (UNESCO), said her organization was preparing a draft programme of action to present to the General Assembly in its next session that takes into account many of the ideas presented in the Commission. Of great importance to UNESCO was the concept of the culture of peace, presented in General Assembly resolution 52/13. A key component of the culture of peace was the free flow of information for decision-making, which had also been addressed by the Commission. Another key point of the culture of peace was ensuring cultural diversity, which UNESCO believed was a vital treasure that created important strengths for society.

The promotion of the culture of peace also required education, she said. Education was the most important way to break the cycle of poverty. While the Secretary-General's report to the Commission coincided with the ideas in the culture of peace, it could better address the wider participation of women. The UNESCO was placing special importance on the situation of women around the world including the serious problems of the illiteracy of women.

JOAN DAVIS, of the Gray Panthers, made a statement on behalf of the Teachers for Peace, Norway. She said the world had a responsibility to address the plight of its children, who made up half of the global population. The Commission should contribute to bringing into focus the difficulties faced by children, particularly regarding the lack of elementary education and absence of basic health services. Basic health for children included protection from sexual abuse, labour and military service.

States had committed themselves to the well-being of children through a number of international conventions, she continued. It was imperative that access to elementary education and primary health services be universal and governments should allocate resources to those two areas. The Secretary- General should ask the Commission to analyse quality educational systems, in order to enhance the General Assembly's special session on the Social Summit.

Non-Governmental Organization Dialogue Segment Ms. MULLEN, American Association of Retired Persons (AARP), said that older volunteers were a resource for social integration and social justice. Participation fostered social integration and that, in turn, fostered social justice. In the United States, volunteering was part of the country's culture and spanned activities ranging from visiting the lonely to growing food for the hungry. Volunteers were successful lobbyists at all levels of government. They promoted social justice for all ages.

Mr. DISNEY, International Council on Social Welfare (ICSW), said access to information, education and basic resources were needed to facilitate social participation. Basic primary and life-long education and income security should be developed. Fair and effective taxation systems should be developed nationally, with an international aspect as well. Structures of national and

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international governance should also be developed. Non-United Nations regional partnerships should be strengthened, because they could address transnational problems, such as the damaging impact of international markets on societies and economies.

Ms. KANYANGA, Zambia Non-Governmental Organizations Coordinating Committee, said social justice was a right for every individual, society and country. All actors must perceive development from a rights premise. The Commission must recognize that the face of poverty was feminine. The poverty scenario had dehumanized people in African countries, making them vulnerable to traumas, such as HIV infection and prostitution. Globalization must ensure space for the participation of developing countries. Processes for negotiating agreements should include broad participation or they would remain empty symbols.

Mr. VORMAWOR, International Confederation of Trade Unions, said that trade unions had been engaged in an unending struggle to check mass exploitation of workers. Nationally, tripartite discussions between social partners were needed to ensure that adequate safety nets were available to vulnerable groups. Governments should encourage free collective bargaining to determine work relations. Due to the forces of globalization, labour in many places was at the mercy of multinational organizations. Draconinian structural adjustment policies, imposed by the World Bank and the International Monetary Fund (IMF), had resulted in untold hardships in developing countries. Structural adjustment programmes must include social development goals, as indicated in commitment eight of the Declaration of the World Summit for Social Development.

Ms. JEGEN, of Pax Christi International, said her organization recognized the integral connection between peace and development and spoke, in particular, on behalf of children who were victims of war. That included those mutilated by landmines and those who were coerced into participating in military forces. The inability of those children to represent themselves -- their silence -- was a cry for redress of injustice. Those children of war had the right to be heard in the deliberations of the Commission, which had a responsibility to help find solutions to their plight. She added that industrial countries had a moral responsibility to allocate funds for the rehabilitation of the estimated 300,000 survivors of landmine explosions throughout the low-income countries.

Ms. BRIONES, of Social Watch Asia, addressing the implementation of the outcome of the Social Summit, said 10 countries had already attained all measurable goals of the Summit and 40 more would achieve those goals by the year 2000. However, another 10 countries had a worse record on social development issues since the Summit and many more had made little or no progress. Of particular concern to her organization was the financial crisis in Asia. The Commission should address the social consequences that could

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arise from the crisis and should recommend a draft resolution to the Economic and Social Council on the issue to remind the international community that the poor and most vulnerable had to be protected during the crisis.

In a subsequent discussion, the Commission heard views from delegations and the non-governmental organizations on topics ranging from the social impact of structural adjustment to the use of volunteerism. A number of speakers stressed the importance of sectoral partnerships in enhancing the Commission's work and expressed the value they attached to the current exchange of views.

Many speakers addressed the issue of volunteerism as a means of fostering inclusion and responding to social needs. One speaker suggested formal recognition of activities that were not remunerated. Another pointed out that, in light of the fact that the United Nations had designated the year 2001 as the International Year of Volunteers, the Commission should direct efforts in that area.

Several speakers emphasized that there was no need for research on the social impact of market behaviour, since numerous case studies could be found in recent history. Lessons must be drawn from the past to protect the present, said one speaker. Another urged the Commission to recommend a resolution to the Economic and Social Council on the need to protect the poor and vulnerable from the impact of structural adjustment programmes.

Responding to questions on the taxation of international investments, a participant said governments were often reluctant to tax international capital in their countries, for fear that the practice might discourage investment. That meant that the tax burden often fell on labour and consumers. Basic standards should be created for taxation of international capital to promote economic efficiency, he urged.

Social policy goals should be elevated to the same level of importance as economic issues, said some speakers. People working in social policy must be able to engage in debate with economic experts said another speaker, and towards that end, socially-oriented economic research and analysis should be undertaken by development experts. Social targets and minimum standards must be tackled with the same level of effort and priority attention as inflation and governmental deficits.

Knowledge alone would not effect change, a speaker noted. Others stressed the value of strengthening regional cooperation to create economic and social power that could resist global trends, which were otherwise beyond governance.

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