In progress at UNHQ

DEV/2194

PANEL MEETS AT HEADQUARTERS TO DISCUSS STATE MANAGEMENT OF ECONOMY, FOCUSING1 ON THIRD WAY BETWEEN MINIMALISTIC INVOLVEMENT AND WELFARE STATE

9 November 1998


Press Release
DEV/2194
ECO/8


PANEL MEETS AT HEADQUARTERS TO DISCUSS STATE MANAGEMENT OF ECONOMY, FOCUSING1 ON "THIRD WAY" BETWEEN MINIMALISTIC INVOLVEMENT AND WELFARE STATE

19981109 NEW YORK, 9 November (DESA) -- The Chairman of the Second Committee (Economic and Financial), Bagher Asadi (Iran), in cooperation with the United Nations Department of Economic and Social Affairs, will moderate a panel on "The Third Way: Between Neoliberalism and the Welfare State", at United Nations Headquarters, on Tuesday, 10 November.

The eminent panellists include Anthony Giddens of the United Kingdom, Director, London School of Economics and Political Science; Jacques Baudot of France, Director, the Copenhagen Seminar on Social Policy; Linda Lim, Singapore, Director, South-East Asia Programme, School of Business, University of Michigan; and Kwame Pianin of Ghana, Chief Executive Officer, New World Investment, Ltd.

The discussion about the role of the State in the management of the economy-- economic governance -- is often characterized by extremes: a minimalistic State, or the neoliberal view, with a restricted role in correcting market failures; or an elaborate welfare State.

The "third way" concept tries to define a middle ground that recognizes an active State role, but also the need to reform the welfare State. In addition, it stresses the need for effective public management. This approach may combine a State role in providing legal, regulatory frameworks for functioning markets, and in setting a social policy, which recognizes the need for individual responsibility, while assisting the truly needy.

The elaboration of practical policies to implement this concept might provide a more realistic model for many countries, according to a United Nations report on Public Administration and Development. Although there is no dispute concerning the essential role of functioning national and global markets, there is a need for the State to create the adequate institutional, legal and regulatory frameworks. In addition, it is seen as necessary for the State to engage in active social policies, based on sound financing options that are tailored to real needs and do not undermine incentives for self- responsibility and work. This calls for adjustments in the welfare and social security systems.

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Another aspect of the "third way" concept is the need to introduce new public management methods, in order to balance efficiency and equity. These include new innovative systems, such as the reform of the civil service, the application of information technology, decentralization of decision-making and new approaches to human resources management. The discussion of adequate institutional and regulatory regimes is seen as an important part of the efforts to foster socio-economic development.

The General Assembly's Second Committee considers annually matters relating to public-sector economics and management. This year, the relevant report of the Secretary-General is being considered under General Assembly agenda item 12, entitled: "Report of the Economic and Social Council".

For further information, contact: Albrecht Horn, Deputy Director, Division for Public Economics and Public Administration, DESA, Tel. (212) 963-3924 OR Saleem Fahmawi, Information Officer, Development and Human Rights Section, Department of Public Information, Tel. (212) 963-1887.

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For information media. Not an official record.