WORLD ECONOMIC CRISIS HAS SHAKEN CONFIDENCE OF DISCIPLES OF GLOBALIZATION, PANELLIST TELLS SECOND COMMITTEE
Press Release
GA/EF/2850
WORLD ECONOMIC CRISIS HAS SHAKEN CONFIDENCE OF DISCIPLES OF GLOBALIZATION, PANELLIST TELLS SECOND COMMITTEE
19981111 Experts Review Follow-up to Copenhagen Social Summit; Discuss Challenges, Opportunities in Implementation of ProposalsThe global economic crisis had shaken the confidence of those committed to globalization and there was now more intellectual and political space for alternative ideas, said Richard Falk, Professor at Princeton University, in a meeting of the Second Committee (Economic and Financial) this morning.
Mr. Falk was one of four panellists taking part in the Committee's panel discussion on "The Copenhagen Seminars for Social Progress: Denmark's contribution to the discussion on the follow-up to the World Summit for Social Development (Copenhagen, 1995)."
He added that the World Bank and International Monetary Fund also began to reorient their policies due to the economic crisis and they had taken steps to become more accountable to the human consequences of economic policies.
Poul Nielson, Minister for Development Cooperation of Denmark, said the Copenhagen Seminars were intended to contribute to the implementation of the objectives and recommendations adopted by the Social Summit. There had been hope that a strong world economy would progressively eliminate extreme poverty, but that hope might be shattered if the world did not manage to strengthen and use properly the international institutions that provided regulatory framework.
Vigdis Finnbogadottir, former President of Iceland, said the needs of good government were linked to human rights and the spread of democracy. The international community had taken the needs of marginalized populations into consideration and put them on the table. Everyone had the right to create their own culture in their own language, but identity was often imposed upon people from the outside, in the language of the super-Powers.
Kwame Pianim, an economist from Ghana, said the international community was called upon to explore the possibility of building a culture of solidarity across national borders and within national borders. Poverty in the midst of plenty, and poverty's attendant social tensions, could not constitute the building blocks of solidarity. He added that the forces of globalization could be humanized and harnessed for the good of the world community when political will and global solidarity could be mustered.
The Committee will meet again at 10 a.m. tomorrow (Thursday, 12 November), to hear the introduction of draft resolutions.
Committee Work Programme
The Second Committee (Economic and Financial) met this morning to hold a panel discussion on "The Copenhagen Seminars for Social Progress: Denmark's contribution to the discussion on follow-up to the World Summit for Social Development". Expected to take part in the panel were: Poul Nielson, Minister for Development Cooperation, Denmark; Ms. Vigdis Finnbogadottir, former President of Iceland; Kwame Pianim, Economist from Ghana, and Richard Falk, Professor at Princeton University (United States).
Panel Discussion
The Chairman of the Second Committee, BAGHER ASADI (Iran) introduced the panellists.
POUL NIELSON, Minister for Development Cooperation of Denmark, said the Copenhagen Seminars for Social Progress were purposely conceived to contribute to the implementation of the objectives and recommendations adopted by the World Summit for Social Development (Copenhagen, 1995). At the first seminar, participants debated the functioning of the world economy and its contribution to attaining higher levels of living in various parts of the world. That subject led it to consider the process of globalization and its economic aspects, as well as its social and cultural dimensions. At that seminar the view was expressed that the current process of globalization, dominated by the creation of an integrated economy, needed to be enriched and made more democratic.
He said the second seminar considered markets from the perspective of those trying to gain access to and benefit from them. It discussed the persistence and even rise of the "informal economy", a phenomenon that was seen either as evidence of the lack of modernization in developing countries, or as evidence of failure of modernization in affluent countries. Modernization, while being indispensable for the reduction of poverty, ought to be more diversified, and more respectful of specific traditions and cultures. It also elaborated the notion of human markets. Such markets should promote economic partnership; should favour economic justice; and should be based on economic reality.
The third seminar, held two weeks ago, discussed the type of political culture and institutions that would favour the emergence of a democratic world community. The process of economic integration was an extremely strong factor that could lead to progressive equalization. There was hope that a strong world economy would progressively eliminate extreme poverty. That hope might be shattered if the world did not manage to strengthen and use properly the international institutions that provide regulatory framework. The 1999 seminar would be dedicated towards measuring social progress. It would also address specific commitments by the Social Summit. Throughout the seminars, the aim had been to contribute to the global dialogue rendered imperative by
Second Committee - 3 - Press Release GA/EF/2850 AM Meeting 11 November 1998
world challenges. Participants stressed common values such as solidarity and human rights. Sometimes decision-makers had the feeling that they were confronting a brick wall of obstacles, constraints and prejudices. "We hope to make a few dents in this barrier," he said.
VIGDIS FINNBOGADOTTIR, former President of Iceland, said that the Copenhagen Summit was a unique seminar, one which examined questions of economic, political and cultural values. Today, however, no one was charged with the responsibility of fostering the common good. In today's world, the prime movers were the economy, military might and pecuniary fortunes, and the main mechanism for technical progress was the market.
The needs of good government were linked to human rights and spread of democracy, she said. And while the international community no longer talked of utopias, it had taken the needs of marginalized populations into consideration and put them on the table. There remained a need for political culture to promote a democratic world community.
Everyone had the right to create their own culture in their own language, she said. The benefits of diversity were implicit in having unique identities linked to unique voices. Identity however, was often imposed upon people from the outside, in the language of the superpowers. If everyone spoke one world language, there would be a great monetary savings, but the international community would not accept that. New information technology was tantamount to such a language, and if it was not made available to all, it would be the equivalent of illiteracy.
KWAME PIANIM, economist from Ghana, said the words of the 1996 Copenhagen seminar, a dream of a "world economy for the benefit of all," was a laudatory dream. The Copenhagen framework challenged our present way of thinking and acting. It would lead not only to a socially and economically responsible world private sector, but it called for international organizations to build a global village.
He said the international community should explore the possibility of building a culture of solidarity across national borders and within national borders. The international community could not attempt to build sustainable and credible forms of solidarity if there was no social cohesion at the national level. Poverty in the midst of plenty, and poverty's attendant social tensions, could not constitute the building blocks of solidarity.
He said that the reconfiguration of prevailing and accepted norms of political process was an important factor if attitudes of the world community, and a humane world economy, were to be realized. The forces of globalization could therefore be humanized and harnessed for the good of the world community, when political will and global solidarity could be mustered. Such an approach did not shy away from intervening in the market place to attain social progress for all. This was to be achieved through the establishment of
Second Committee - 4 - Press Release GA/EF/2850 AM Meeting 11 November 1998
a global community based on solidarity, dignity and respect, and within a framework of a global village.
RICHARD FALK, Professor at Princeton University, said the purpose of the Copenhagen Seminars was to find possible ways forward in the social development agenda, without under-estimating the obstacles. It was also to try to find ways to minimize the economic policies that were not very hospitable to the goals of the Social Summit. Key questions addressed in the Seminars were: how North-South relations could be reformulated on a mutually supportive basis; how the United Nations system could play a dynamic and constructive role; and how the social re-empowerment of the United Nations system could be achieved. The assumption of those participating in the seminars was that global social re-empowerment was not possible unless it occurred at the level of the nation-State. One of the difficulties in the current period had been the degree to which market forces had resulted in the social disempowerment of the State and of the United Nations.
He said that with the onset of the economic crisis there had been some important developments that made social empowerment easier. The crisis had shaken the confidence of those who were completely committed to globalization. There was now more intellectual and political space for alternative ideas. Also, it had been recognized that the World Bank and International Monetary Fund did not have all the answers. Those institutions had a narrowly conceived view of the market and they needed to be more accountable to the human consequences of economic policies. They had begun to reorient their approach to major problems. There had also been a recognition that solidarity rested on the social re-empowerment of government at the level of the State.
The United Nations at this stage was more challenged than it had ever been in its existence, he added. To some degree its commitment to promote social well-being was somewhat at odds with the globalizing world, which gave power to constituencies outside the United Nations. How the United Nations achieved its power in the social agenda was crucial. It must stress that globalization did not imply social austerity or a lack of compassion in government policies. The current period was one in which a new intellectual ground existed for fulfilling the United Nations dream of creating a more equitable world.
Responding to a question on regulating businesses, Mr. NIELSON said the world was still behind in creating a better framework for business activities. Talk of environmental regulations, for example, was not contrary to the interests of businesses. Uniform environmental policies could create a better situation for businesses. To a question about "just development" versus "sustainable development", he said that more needed to be done to attain equal distribution of resources. It was easy to discuss distribution at the global level and to say that it was not working well, but the Social Summit had put much of the responsibility for distribution on governments. On the role of the United Nations Development Programme (UNDP), he said it had the important
Second Committee - 5 - Press Release GA/EF/2850 AM Meeting 11 November 1998
role of being the leading advocate for what had been adopted at the United Nations and at the major conferences and summits. It was also a close and privileged partner with countries at the national level.
Responding to a question on technology, Ms. FINNBOGADOTTIR said the world could not stop the spread of technology. The international community and the United Nations had to use technology to help achieve the goals of social development. The United Nations system could work to give people access to technology -- especially access to the Internet. Currently the Internet helped very few people because very few had access to it. By providing Internet access, the United Nations could bring a great tool to youth, who were out there waiting to learn more. The world's youth were waiting for something to cling to; they were clever and they wanted to learn. The international community should concentrate on getting that educational tool out to meet the world.
Asked about the implementation of some of the ideas discussed during the current meetings, Mr. PIANIM said that there would be benefits across the entire international community, once governments in powerful countries began to address issues such as poverty reduction. When poverty reduction received appropriate media attention, all world cultures would be able to discuss solutions. He said that there was no longer a breach between north and south in the area of environment, because of the advent of common global problems. Global problems gave all human beings an imperative.
He said the entire international community should be talking about the same issues. There were social tensions in all cultures. All could benefit if the international community arrived at the essence of a given problem.
To a question on whether the current discussions were little more than "preaching to the converted", Mr. FALK said that clarifying ideas helped prepare the international community for implementing ideas.
Much of the value of the Copenhagen summit, he said, was to clarify the ideas of those who shared its sentiments; what had come out of it was a "consensus of sentiments". The question of how to formulate a vision so that globalization fulfilled its positive potential was indispensable, if implementation of such an agenda was to go forward in a meaningful way.
* *** *