ECOSOC/5832

ECOSOC PANEL DISCUSSES EMPLOYMENT-ORIENTED GROWTH AND ITS IMPACT ON POVERTY REDUCTION AND GENDER EQUALITY

6 July 1999


Press Release
ECOSOC/5832


ECOSOC PANEL DISCUSSES EMPLOYMENT-ORIENTED GROWTH AND ITS IMPACT ON POVERTY REDUCTION AND GENDER EQUALITY

19990706 Speakers Emphasize Disproportionate Burden of Poverty on Women, Importance of Democracy and Full Participation in Society by the Poor

(Reissued as received.)

GENEVA, 6 July (UN Information Service) -- Panellists at an Economic and Social Council meeting focusing on "national policies and international cooperation for employment-oriented growth" stressed this afternoon that sustained progress in reducing poverty could not be achieved without granting full equality to women, without good governance, and without the participation in Government and national life of all sectors of society.

Participants said that although global economic growth had been impressive, the progress achieved had not been equally distributed, and that poverty reduction programmes would never be enough on their own to resolve the difficulties of those left out. Sustained, balanced, long-term economic growth was necessary to alleviate poverty, they contended, and that only could be realized by broadly inclusive economic and social approaches that could attract and foster private investment and business and could ensure that women and the poor participated in the resulting development.

Moderator Juan Somavia, Director-General of the International Labour Office, introduced the topic by saying that employment growth was not just about the number of jobs created; workers had rights, and the goal was decent work, not just any work, for decent work was the necessary foundation for a socially just economy.

Among the panellists, Anne Marie Lizin, Independent Expert of the Commission on Human Rights on extreme poverty, said a key element to progress was democracy, and the ability of people to participate freely in society and to express themselves openly. As soon as there was democracy in a country, the battle against poverty became a primary political objective.

Sodov Onon, Director of the Poverty Alleviation Programme of Mongolia, said the programme had resulted in many tangible improvements in the lives of poor people and in their sense of self-reliance; among other things, schools and hospitals had been built.

Dariusz Rosati, of the Monetary Policy Council of the National Bank of Poland, said one lesson learned over the years was that macroeconomic stability, liberalization and privatization were necessary but not sufficient for economic progress and poverty alleviation -- other things were needed for true progress, such as good institutions, good governance, and social capital.

T.N. Srinivasan, Chairman of the Department of Economics of Yale University, noted that poverty was concentrated in a few countries -- nearly two-thirds of poverty-stricken people were in China and India -- and that the problem was also mainly rural.

Lead discussants were Stephen Pursey, Director of the Employment and International Labour Standards of the International Confederation of Free Trade Unions, and Louka Katseli, Professor and Chair of the Department of Economics of the University of Athens and Vice-Chairperson of the Committee of Development Policy.

Mr. Pursey said, among other things, that there was a close relationship between the success of national and international efforts to tackle unemployment, poverty, and inequality, and achieving worldwide respect for core labour standards -- that such standards put a kind of "floor of decency" under the operations of world economic markets.

Ms. Katseli said, among other things, that employment generation, gender equality and the achievement of policies required the empowerment of all concerned, including policy-makers themselves -- there was a need to reinstate the legitimacy of policy making at the national and international levels.

Participating in the discussion were representatives of Spain, Iran, Syria, United States, the Lutheran World Federation (on behalf of 25 non-governmental organizations), Czech Republic, China, Republic of Korea, Germany, Belgium, Italy, Afghanistan and Cuba.

The panel discussion concluded at 4:30 p.m., and following a short break, the Economic and Social Council session reconvened to hear further formal statements from senior officials on the topic of "the role of employment and work in poverty eradication: the empowerment and advancement of women."

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Statements

JUAN SOMAVIA, Director-General of the International Labour Office, said the promotion of policies and actions to support sustainable, employment-oriented growth which reduced poverty and led to gender equality was not an easy target. These problems persisted, but were opportunities to involve all humanity. Employment growth was not just about the number of jobs. Workers had rights, and the goal was decent work, not just any work. This was the necessary foundation for a socially just economy. The means and ways that really could be applied to promote employment-oriented growth needed to be clear. It was possible to find these, and the key lay in building an integrated approach to economic and social development, showing how economic and social goals reinforced each other.

ANNE-MARIE LIZIN, Independent Expert of the Commission on Human Rights on extreme poverty, said women were disproportionally affected by poverty and social marginalization. A key element to progress was democracy, and the ability of people to participate freely in society and to express themselves openly. As soon as you had democracy in a country, the battle against poverty became a primary political objective -- and democratic objectives that assured a proper role for women ensured that women were sufficiently involved to advance their interests.

True poverty-combating policies could not be established without extensive involvement of women, Ms. Lizin said. Also, local authorities and principle ethnic and minority groups had to be involved. Central Governments had to retain sufficient authority to ensure that minority groups were not excluded locally. And of course resources had to be earmarked for combatting poverty, and that included resources set aside for the empowerment of women. The increasing role of civil society and the private sector would provide a strong new impetus to the empowerment of women workers living in poverty.

Among obstacles encountered by women in employment, an essential element, at least for women in extreme poverty, was the sale of women's bodies, trafficking in human beings, household work that was not remunerated, and women who lacked official status and so lacked official protection, as often happened in cases of prostitution. Unfortunately, statistics did not reflect women's contributions in the home in terms of caring for and sustaining their families, and this included the contributions of poverty-stricken women, Ms. Lizin said. Low official status of women, including in terms of religion, could result in horrendous human-rights abuses, she said -- she had never seen women in more desperate straits than women in Yemen who were in prison because they had been accused of adultery, for example; she had seen women there who begged not to be released from prison because they feared being stoned when they got out. The Government of Yemen had established a National Human Rights Commission to deal with such problems.

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SODOV ONON, Director of the Poverty Alleviation Programme of the Office of the National Poverty Alleviation Programme of Mongolia, said that since Mongolia had embarked on the transition process to the market economy, the Government had taken several steps to promote growth and reduce poverty. There was a national poverty alleviation programme, aimed at reducing poverty by the year 2000. It was introduced in June 1994, in response to the large proportion of poverty-stricken Mongolians. The programme addressed poverty from a wide human perspective, addressing also human development, women's poverty, and the needs of the vulnerable members of society. The programme had six areas of focus. The outcome had been evident in many tangible improvements in the life of poor people, and in their sense of self-reliance. Schools have been set up, and hospitals built. The managerial capacity of the programme initiators had also been strengthened. Infrastructure has been increased, and there were greater employment opportunities for women.

Mr. Onon said special attention has been paid to the alleviation of women's poverty through various means. There had been a stabilization of poverty, and without the programme, the country would have faced a far more depressing situation than the current one. A number of lessons were learned from the programme, including the concept that programmes were not sufficient, but needed to be supported by strategies, including gender-sensitive ones. The programme was limited by the low funding available. A number of recommendations could still be made, including the importance of gender-sensitive macro-economic policies.

DARIUSZ ROSATI, of the Monetary Policy Council of the National Bank of Poland, said that although there had been rapid world economic growth, the progress had not been equally distributed -- important social groups in many countries and regions still suffered from hunger, poverty and exclusion. In many instances global economic growth had inflicted substantial damage to the natural environment as well, and had not contributed sufficiently to building strong, integrated and cohesive societies but rather in some cases actually had led to social "pathologies".

Inequalities in income and wealth were striking: the richest 20 per cent of the people consumed 86 per cent of total consumption, while the poorest 20 per cent consumed only 1.3 per cent. The key to solving problems of poverty and exclusion was sustained and balanced economic growth, Mr. Rosati said -- in the long run, only economic growth could provide the means to satisfy social needs and systematically raise living standards. One lesson learned over the years was that macroeconomic stability, liberalization and privatization were necessary but not sufficient -- other things were needed for true progress, such as good institutions and social capital. A second lesson was that good public governance was vital for socio-economic development. A third lesson was that development affected and involved all segments of society and required broad social participation in order to be successful.

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Experience had shown that effective development efforts should be aimed at explicit social and human development goals rather than towards technocratic considerations only, Mr. Rosati said; there had to be prominent roles for education, the social and natural environment, poverty reduction, and equal-opportunity standards.

T. N. SRINIVASAN, Chairman of the Department of Economics at Yale University, said that poverty was concentrated in a few countries. Nearly two-thirds of poverty-stricken people were in China and India. The problem was also mainly rural. International policies, other than those keeping the world trade free and open, had little to do with poverty or its alleviation. Development finance programmes and others depended mostly on the framework of national policies for poverty alleviation. The national environment had to be conducive towards poverty alleviation for international policies to be effective. A major source of disparity between men and women arose from discriminatory principles within the household. This factor could not be addressed by economic policies. The only effective policies that achieved poverty alleviation were those providing job opportunities for the poor and causing rapid growth of the economy.

Mr. Srinivasan said greater integration in the world economy would accelerate growth. Success in integrating developing countries depended on its being open -- which implied being open to cheaper labour. Trade and agriculture should be brought firmly into the World Trade Organization, since this would aid all involved. However, the important part was the policy content. Female education was an important factor for success in poverty alleviation.

STEPHEN PURSEY, Director of the Employment and International Labour Standards of the International Confederation of Free Trade Unions, said core labour standards were a very important matter for workers in developing countries; there was a close relationship between the success of national and international efforts to tackle unemployment, poverty, and inequality, and achieving worldwide respect for core labour standards. Finding practical answers to these questions was a top priority for the world's trade unions and was increasingly recognized by others as a vital component in the effort to strengthen international economic and social policy.

The absence of decent work was a threat to social cohesion and threatened democracy, good governance, and social and economic development, Mr. Pursey said. Respect for basic human rights, including the right to work, helped to prevent the sort of collapses that led to economic and social crises; core labour standards put a kind of "floor of decency" under the operations of world economic markets and ensured decent conditions for workers everywhere. Labour unions accepted that rules governing how work was done and how it was rewarded had to adapt to new technologies and commercial pressures;

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they believed that negotiation was the way to meet these challenges at the same time as improving conditions of work, life, and productivity.

LOUKA KATSELI, Vice-Chairperson of the Committee of Development Policy and Professor and Chair of the Department of Economics at the University of Athens, said that reforms were needed. But even if all participants agreed on what to do to alleviate poverty, could they agree on how to do it? Employment generation, gender equality and the achievement of policies required the empowerment of all concerned, including the policy makers themselves. There was a need to reinstate the legitimacy of policy making at the national and international levels. This needed to be done by discussing the means and ways of integrating, sequencing, regulating, coordinating, implementing, strengthening, and enhancing the national and supranational realities of policies. Academics, practitioners and policy-makers should be brought together to help with the implementation of more effective policies.

Discussion

Among questions and comments from the floor were remarks that economic equality and equal pay scales for men and women should be insisted upon by the international community; that corruption and authoritarianism were problems for development, but not the only barrier to progress; that other problems concerned operations of international financial markets and capital flows; that poverty and gender imbalance linked economic and social concerns; and that hence social and economic issues could not be considered in isolation. It was asked what women could do in developing countries suffering from foreign occupation or from foreign-sponsored regimes that violated basic human rights, including the rights of women, and if international organizations might strengthen their intervention in this area.

There were questions on how Government programmes to encourage gender equality could be more effective and could be made to trickle down to the level of individual families; if international agencies had considered the viability of pursuing violators of economic rights; how the position of women had changed in the labour markets of countries with transition economies; if a contention that gender discrimination was a household matter, as one panellist had contended, and that it could not be influenced by Governments, was actually true; if distinctions between "poverty" and "extreme poverty" were in a sense pointless, as it was accepted that mere poverty resulted in denial of human rights; why there was such a lack of jobs for women worldwide, given advances in communication and technology; and if subsidies had been considered for education of women leading to useful employment.

Along with comments from delegations, there was a statement by the Lutheran World Federation on behalf of 25 non-governmental organizations (NGOs), saying the group agreed that women's empowerment and poverty reduction were essential; that there was a need to emphasize quality of employment and

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not just job creation; that the poverty-stricken should consistently be involved in any process involving them; and that further steps had to be taken to increase official development assistance and to reduce the debt burdens of least-developed countries.

Ms. Lizin said fighting poverty was certainly easier if a country did not have large defence expenditures and did not have problems with foreign occupation; that countries fighting poverty should not think only in macroeconomic terms but should also have policies for fighting extreme poverty, such as encouraging police not to put the poor unnecessarily in jail but to seek ways to help them; that she did not accept the contention that her report to the Commission on Human Rights was a North-to-South report, and that extreme poverty was a problem of the "South" -- as far as she was concerned, poverty was everywhere and was everyone's problem. Similarly, minimum-income standards could be useful for all countries; if some poor countries felt they could not afford them, some rich countries could afford them and did not have them.

Mr. Rosati said there always would be overlapping and trade-offs, but it was necessary to say that technocratic programmes for development run by Governments should never be blind to social or cultural costs and contexts -- for example, decisions to cut budgets for efficiency and economy should not be done without regard to their effects on education and health programmes. As for the role of women in the economies of transition countries, the gap between men's and women's salaries seemed to be increasing.

Mr. Srinivasan said he did not mean to imply that State policies were not relevant in terms of gender discrimination; he meant only to say that State policies only could go so far, and the effectiveness of public policies to redress such discrimination should not be exaggerated. He was not sure that signing more international treaties would necessarily increase respect for human rights; more attention had to be paid to detail and to implementation of existing standards. As for trade unions, one had to keep in mind that their role in developing countries could be ambiguous; in India, the small percentage of persons employed and belonging to trade unions enjoyed pay and privilege largely out of balance and touch with prevailing standards in the country.

Mr. Pursey said the Asian crisis had showed that financial and social crises were interlinked, and the solutions were interlinked; social capital had to be developed to deal with such problems. Trade unions were not solutions to poverty or gender equality, but they could provide a forum for negotiating solutions to such problems. It was important, meanwhile, to think of core labour standards as part of good governance.

Ms. Katseli said trade policies, labour standards, and related matters needed to be integrated; how to do so was complex and deserved extended

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debate. As for domestic versus international policy, experience sometimes had shown that national policies could be pursued more effectively if international policies and standards swayed in the same direction; often Governments had liberalized their economic policies because international sources had applied pressure or had established widespread practices that made such national liberalization a good idea.

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For information media. Not an official record.