GLOBALIZATION IN MANY WAYS 'SUCCESS OF RAVENOUS CAPITALISM', PAKISTAN TELLS SECOND COMMITTEE

Press Release
GA/EF/2879

GLOBALIZATION IN MANY WAYS 'SUCCESS OF RAVENOUS CAPITALISM', PAKISTAN TELLS SECOND COMMITTEE

Under-Secretary-General for Economic and Social Affairs Says Concerns Arise From Belief That 'No One Is In Charge'

Globalization was in many ways a new form of economic colonialism and represented the success of ravenous capitalism, the representative of Pakistan told the Second Committee (Economic and Financial) this afternoon as it began its consideration of globalization and interdependence.

The fact was that the world economy was not global, he continued. Trade, investment and financial flows were mostly concentrated within the developed blocs. The vast and cheap labour pools of developing countries were being exploited by multinational corporations. The markets of developing countries were being pried open in the name of trade liberalization, while the developed economies limited access to their own markets. In addition, the large majority of the developing countries, which suffered the negative consequences of globalization, had virtually no role in defining the rules of the game.

In evolving universal prescriptions, a one-size-fits-all approach must be avoided, India’s representative warned. Specifically, universally applicable timetables for liberalization, whether in the trade or financial sectors, must be avoided. Trade and financial liberalization should be undertaken at a pace and in a sequence that was country specific. Hasty or ill-considered liberalization had led to massive unemployment and a breakdown of social systems. To avoid the human misery witnessed during the recent Asian financial crisis, countries must be allowed to evolve time frames and modalities to cope with the enhanced competition that came in the wake of trade liberalization.

Speaking on behalf of the European Union and associated States, the representative of Finland said that responsibility for shaping globalization could not be left to market forces alone. There was an increasing need for political measures to accompany and, where possible, to guide globalization in order to spread its benefits more widely. Challenges to global governance included the balance between the State and other public and private actors.

Second Committee - 1a - Press Release GA/EF/2879 23rd Meeting (PM) 26 October 1999

Transparent and participatory processes were essential. Closer dialogue between countries and with the private sector, as well as with non- governmental organizations (NGOs) and other sectors of civil society, was indispensable. The private sector, a driving force for globalization, must shoulder its responsibility.

Several speakers noted the important role the United Nations had to play in securing globalization with a human face. The representative of Ghana said it was urgent for the United Nations to validate and assert its leadership. In view of its universal and democratic character, the Organization was the only body with the authority to lead the process for restructuring the international financing architecture and ensuring a stronger, more stable and participatory system, as well as in designing a coherent network of global governance linking finance, trade and development.

Introducing the report on the item, Under-Secretary-General for Economic and Social Affairs Nitin Desai said that the international community must move beyond concepts and into a discussion of what could be done to manage globalization, particularly to a better understanding of how the process could be influenced and changed. There were three areas to be addressed systematically. Globalization was driven by technology, the internationalization of national private-capital markets, and an expansion of world trade. Concerns about globalization arose basically from the belief that there was no one in charge.

Statements were also made by the representatives of Guyana (on behalf of the Group of 77 developing countries and China), United States, Russian Federation, Republic of Korea and Brazil.

Also this afternoon, the Committee concluded its consideration of the implementation of the Programme of Action of the 1994 International Conference on Population and Development, held in Cairo. Statements were made on that item by the representatives of the Russian Federation, Ethiopia, Japan, New Zealand (on behalf of Australia and Canada), Ukraine, South Africa, China and Iran. The representative of the International Labour Organization (ILO) also spoke. Closing remarks were made by the Executive Director of the United Nations Population Fund (UNFPA) and the Director of the Population Division of the Department of Economic and Social Affairs.

The Committee will meet again at 3 p.m. tomorrow to continue its discussion of globalization and interdependence.

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to conclude its consideration of the implementation of the Programme of Action of the International Conference on Population and Development (ICPD) (Cairo, 1994). For further background, see Press Release GA/EF/2878; issued this morning.

The Committee was also expected to begin its consideration of globalization and interdependence. It had before it the report of the Secretary-General on the role of the United Nations in promoting development in the context of globalization and interdependence (document A/54/358), which was prepared in collaboration with the United Nations Conference on Trade and Development (UNCTAD) and in consultation with relevant organizations, including the World Bank and the International Labour Organization (ILO). The report seeks to clarify the ways in which the complex phenomenon of globalization affects development, and the implications of this interaction for the development role of the United Nations.

While the principal focus of the report is on the core issues of finance and trade, it also seeks to identify the ramifications of globalization processes in other areas and to explore ways of enhancing the coherence of the United Nations system’s response to these interrelated challenges. It aims to identify and further enhance the role of the United Nations system in designing and implementing a response, both at national and international levels, to globalization’s challenges. The analysis at the global level is supplemented by a review of country-level trends based on responses to a questionnaire from a number of resident coordinators. The recommendations contained therein are designed not only to strengthen and enhance the development capacity of the United Nations system in response to the changing global environment, but also to identify the issues around which further intergovernmental deliberations in the United Nations on globalization and its impact could be structured.

Regarding the challenges of globalization, the report states that identifying the nature and contents of globalization, particularly from the development perspective, is imperative for developing effective policy responses to its challenges. National and international policies affecting trade, finance, social and environmental aspects must be formulated with an eye to the interrelatedness of these issues and the cumulative impact of globalization. Bringing coherence to policy-making is among the first and foremost challenges posed by globalization. Given its universality, democratic nature and broad mandate, says the report, the United Nations has a clear comparative advantage in promoting such coherence at both the national and international levels.

Institutional or governance deficit is the second greatest challenge of globalization, the report continues. Increasingly, effective public action to manage the economy needs to be coordinated among States and, as in the case of trade, an open and rule-based system, overseen or implemented by such bodies as the World Trade Organization (WTO). Such concerted action does not necessarily weaken States; rather it can strengthen them by stabilizing the external economic environment and thus giving them greater scope to pursue national goals. Without such concerted action, and without a strengthened institutional capacity to manage globalization, there is a risk that the world will witness a backlash against it.

In the area of policy coherence, the report states that although policy changes have generated some economic growth recently, the increase in global interdependence resulting from these trends poses problems regarding the coherence, complementarity and coordination of global economic policy-making. For example, the ability of developing countries to achieve their growth potential, to close the gap in per capita incomes with the developed world, and to maintain macroeconomic stability is significantly determined by macroeconomic policies pursued by the major industrial countries.

Increased interdependence of developed and developing countries has made trade and finance two key areas in which the introduction of coherent and complementary policies can help achieve the maximum benefits of global growth and development, continues the report. In these areas it is possible to identify policy objectives that serve the interests of both developed and developing countries. For example, it has long been recognized that stable exchange rates and the steady expansion of income and employment are preconditions for the maintenance and development of a more open system of international trade. If based on consensus, arrangements enabling improved coherence, complementarity and coordination in global policy-making can avoid unnecessary divisiveness and conflict, while promoting fruitful forms of international economic cooperation. Policy coherence thus needs to be seen across a broader canvas of trade, finance, social and environmental imperatives.

According to the report, there are other areas that are being transformed by ongoing globalization. Wider dissemination of ideas, culture and lifestyles may lead to loss of cultural diversity. Other important features of a globalized world economy include new patterns of labour migration, new challenges and opportunities for health, and on the negative side, new opportunities for the growth of criminal activities by organized crime, such as the trade in drugs and money laundering. Perhaps the most important catalyst for bringing about increasing globalization is the spread of information technology. Investing in and acquiring new technologies, no matter how imperative for integration into the world economy, can only succeed if a country has the requisite human-resources base. Globalization has made the need for human-resources development within countries ever more imperative, since the benefits of participating in global markets can accrue only if the country has a well educated labour force able to adapt its skills quickly in response to the changing demands of the global market place.

There is a perverse interdependency, the report states, between money laundering and globalization. Globalization has opened new opportunities for the laundering of illicit proceeds. At the same time, money laundering impacts on the development of free and competitive markets. Money laundering also undermines international efforts towards free and competitive markets and therefore towards successful trade liberalization, because it distorts the functioning of markets. Money laundering is closely tied to the proliferation of illicit drugs and traffic in women and children over the last decade or so, which has created a huge industry that leaves no country immune to their economic, social, health and criminal manifestations.

The United Nations is uniquely suited to assume normative leadership for “globalization with a human face”, according to the report. It can do so by promoting a broader vision of human development. As a first step, it needs to help devise an effective response to the twin challenges of globalization -– the need for greater policy coherence and institutional capacity-building at the national, regional and global levels. The United Nations is the pre-eminent body to launch discussions on setting the “rules of the game”, norms and standards, and to build consensus around the institutional arrangements needed for applying them. The report sets out observations intended to stimulate reflection on the directions that can be pursued by the United Nations in promoting development in the context of globalization.

With regard to operational activities, the report states that the challenge for operational activities of the system is to evolve and adapt, in order to respond to the new demand from countries that want to take greater advantage of the new opportunities opened by increased trade, capital flows and technological progress. The primary purpose of operational activities should be to contribute to the expansion of national capacity to take advantage of the positive implications of globalization and to deal with its negative implications.

Statements

CINDY BERMAN, Adviser International Labour Office, ILO, said that high population growth –- especially in developing countries -– had created phenomenal increases in the labour supply, but without a commensurate increase in employment opportunities. The lack of productive employment meant that vast numbers were without the means to earn a living. At the same time, the quality of available work in some countries had deteriorated in terms of both working conditions in the formal sector, and low levels of productivity and earnings in the informal sector. In the wake of the ICPD, the ILO had played an active role in advocating, and drafting instruments and conventions to protect vulnerable groups, such as women, children and migrant workers.

She said that the adoption of a human rights framework in the implementation of the ICPD Programme of Action was consistent with the ILO’s own standards on human rights, including basic worker’s rights. The ILO’s work on population and development also included programmes targeting specific groups, such as youth and women, and the development of schemes aimed at enhancing employment opportunities. The ILO had also undertaken advocacy activities to sensitize its tripartite constituents –- governments, employers and workers’ organizations –- to the importance of population in development policies and programmes, and its link with employment.

Considering the devastating impact of HIV/AIDS on society, especially the decimation of the workforce in Africa, ILO’s work in that area was responding to the challenge, she said. Recent ILO publications on HIV/AIDS and employment had dealt with the legislative and regulatory framework, enterprise practices and recommendations for practical strategies concerning HIV/AIDS and the workplace. There had also been a number of regional workshops involving ILO’s tripartite constituents.

VASSILI A. NEBENZIA (Russian Federation) said that the special session on review and appraisal of the implementation of the Cairo Programme of Action was a major international event, whose tasks were to evaluate the work done and devise measures for further action. It reaffirmed the growing attention in the world to population parameters for development, such as reduction in infant and maternal mortality. His country was concerned about the inadequacy of necessary resources for implementation. It was unclear whether and how the development of partnerships with non-governmental organizations (NGOs) and other actors in civil society could replace concrete official assistance. Success could be seen in the agreement reached on concrete key actions for further implementation of the Programme, including measures such as reducing the vulnerability of adolescents to HIV/AIDS. He welcomed the attention given to the needs of the elderly, as well as the measures to halt the spread of AIDS. In the course of conducting market reforms many countries with economies in transition, such as his own, had experienced difficulties in meeting their commitments under the Programme. Methods of gathering and evaluating population data, particularly in transition economies, should be improved.

AZANAW T. ABREHA (Ethiopia) said the review process had once again made it abundantly clear that there was a need for strengthened international partnership for effective implementation of the ICPD. While developing countries, under difficult circumstances -- notably the debt burden, unfavorable terms of trade and growing marginalization -- had made concerted efforts to mobilize domestic resources for population questions, the translation of commitments by developed countries into commensurate resource levels fell far short of what was agreed to at Cairo. A lack of financial resources remained one of the primary obstacles to full implementation of the Programme of Action.

Ethiopia, the third most populous country in Africa, had established regional population offices to foster grass-roots participation and promote sustainability of population programmes. The national policy on women emphasized gender mainstreaming within the development process, and was aimed at ensuring equality, equity and empowerment of women. Due to the emphasis given to the issue at the highest political levels, along with the involvement of NGOs and civil society, the fertility rate had gone down to 6.4 per cent and the contraceptive prevalence rate had increased to 10 per cent for women of reproductive years.

NORIMASA SHIMOMURA (Japan) said that since population was related to all other socio-economic problems, the requirements of those related issues – agriculture and food supply, trade and environment, poverty eradication and empowerment of women -- also had to be taken into account. While the concepts of reproductive health and reproductive rights had been new at the time of the Cairo Conference in 1994, they enjoyed much broader acceptance today. In order for ICPD and ICPD+5 to be a success, however, all nations of the world, all NGOs and all international organizations needed to be engaged in the follow-up process. And in that process, different methods of implementation, monitoring and evaluation -- methods sensitive to local cultural, political and religious traditions -- might be required.

The Official Development Assistance (ODA) and other financial and technical assistance for development were important in alleviating many human-security concerns. As population issues posed a serious threat to individual and collective human security, those issues needed continued attention from the international community. The Government of Japan would attach high priority to them in determining its ODA policy, and was resolved to continue to play an active role in the world’s efforts to address population issues.

GRANT ROBERTSON (New Zealand), speaking also on behalf of Australia and Canada, said that population issues were at the heart of balanced and sustainable development. The essential message of Cairo, reinforced at ICPD+5, was that population issues were development issues and that the Cairo agenda should be considered part of a global framework for sustained and sustainable development. The Cairo approach involved recognizing and supporting the full participation of women in all aspects of society and the economy. It was based on the understanding that investing in the well-being of women was a critical aspect of the development of society and the economy as a whole, including economic development and environment.

Despite the success of ICPD+5 and the encouraging progress in meeting commitments made at Cairo, there were still formidable challenges, he said. Examples were inadequate resources, the still frequent lack of political commitment and support at the national and international levels, and the all too common environment of gender inequality. Only through a partnership between developed and developing countries, between governments and civil society, including NGOs, indigenous peoples, and the private sector could those obstacles be overcome. The UNFPA had been successful in working in partnership and in bringing about a number of innovative projects, which had greatly helped to bring the benefits of sexual and reproductive health services to those most in need. New Zealand strongly urged the continued support of the Fund, as the lead United Nations agency in implementing the Programme of Action and the only multilateral agency carrying out the whole range of population and reproductive health services set out in the Programme.

OLEKSII HOLUBOV (Ukraine) said that like other countries in transition, his country had experienced a number of negative tendencies in its social and demographic development. Among them was the ageing of the population, caused by a decline in births and a relatively high death rate, worsening of the nation’s health, large migration outflow and an unfavourable ecological situation. The most serious threat to the nation’s health stemmed from HIV/AIDS, which mostly affected young people, and from a significant growth in venereal diseases, including infections of newborns. The aftermath of the Chernobyl disaster had also had a negative impact on the health of the country’s population. All those factors had caused a natural decline in the population, which had dropped during the last five years by almost two million.

He said that Ukraine had undertaken decisive measures to translate the Programme of Action into its national population strategy to make it an integral part of the social and development policy, with a special emphasis on the most acute demographic problems. The country’s Parliament had reviewed the national legislation in the field of population by adopting a wide range of specific laws aimed at strengthening public health, preventing AIDS, and ensuring social protection of the disabled and the people most affected by the Chernobyl disaster. The next steps would establish a system of medical insurance in Ukraine, improving infection prevention and giving more protection to the rights of patients. He appreciated the recent visit by UNFPA Executive Director Nafis Sadik to Ukraine, which was evidence of the increased attention the Fund was paying to the problems of that region. That visit was important in promoting further cooperation between the Fund and Ukraine.

M. VAN SCHALKWYK (South Africa) said that the ICPD Programme of Action held special significance for his country, in view of the widespread suffering and marginalization that had occurred over a period of more than four decades and that needed to be corrected. His country’s efforts to improve its socio-economic situation were being hampered by three major impediments, namely, the HIV/AIDS epidemic, unsafe abortions and teenage pregnancies. Substantial efforts were underway, with the assistance of donor countries and the UNFPA, to address those scourges.

Although he welcomed the outcome of the twenty-first special Assembly session, and recognized that it was probably the best outcome possible at the time, he would have preferred more forward looking and action orientated proposals for the further implementation of the Programme of Action. The ever decreasing levels of donor support were already having a negative impact on the Fund’s activities and threatened to wipe out the gains which had been realized through substantial financial cost and human effort. He strongly urged donor governments to increase their contributions to the Population Fund, in order to help realize the goals and objectives which had been agreed to in Cairo.

LI CHIGIAN (China) noted that alleviating the pressure of rapid population growth was not a task to be accomplished overnight. Since the Cairo conference, the international community and national governments had made positive efforts towards implementation of the Programme of Action. However, economic crises and natural disasters in some countries and regions had had a serious effect on the process of implementation. Local wars and regional conflicts also posed a serious threat to peace and development of mankind. At present, there were still many couples and individuals in the world who did not have adequate access to basic reproductive health and family planning services.

China was a developing country with the largest population in the world. It regarded family planning, population-growth control and the enhancement of the quality of life of its population as fundamental to its national policies. Over the past 30 years, he said, the number of potential births had been reduced by 338 million, contributing markedly to China's economic development. The Chinese Government had the confidence and capacity to solve the population problem and harmonize the relationship between economic development and population, resources and environment. It looked forward to strengthening its extensive cooperation with the international community, and would make due contributions to stabilizing world population and promoting world peace and development.

MOHAMMAD ALI ZARIE ZARE (Iran) said that existing data on total global flows for population indicated that developing countries had made substantial progress in achieving the goals set in Cairo. That was clearly indicative of their practical commitment to the Programme of Action. However, the same could not be said about international assistance. Donor funding for population activities had stagnated, and was far below the $17 billion required by the year 2000. Successful implementation of the key actions and outcomes of the review process was directly related to and contingent on success in resource mobilization by the donor community and on international cooperation.

Iran’s strategy for reproductive health and family planning had been based on the simultaneous promulgation of appropriate legislation, promotion of public awareness and provision of necessary services, particularly directed to young couples. Another important pillar of that strategy was the establishment of a nation-wide primary health-care system, which now covered 95 per cent of the population. The tremendous reduction in infant and maternal mortality was one of the achievements of that system. Despite serious financial constraints, the health-care system and reproductive services had also been extended to the more than two million refugees in Iran. Assistance from the international community was necessary for continuation and sustainability of those services. In addition, efforts had been made to promote the status of women through such steps as the promulgation of legislation in various individual and family-related areas, promotion of education at all levels and facilitation of women’s participation in all areas of social life.

JOSEPH CHAMIE, Director of the Population Division of the United Nations Department of Economic and Social Affairs (DESA), said that population had been an area of success for the United Nations. The system had facilitated historic international responses to historic population changes in this century. However, despite those significant successes, efforts must be sustained to carry the level of achievement over into the twenty-first century.

NAFIS SADIK, Executive Director of the United Nations Population Fund (UNFPA), thanked all governments for their strong support. She also thanked everyone for their nice words on the thirtieth anniversary of UNFPA, and thanked the United Nations Educational, Scientific, and Cultural Organization (UNESCO) for its nice words on her thirtieth birthday. She added that she was encouraged by the statements made by donors. Finland, on behalf of the European Union, had stressed the urgent need for mobilization of resources. She especially welcomed the United States’ statement indicating that it would restore funding for the UNFPA, and hoped that other donor countries would heed the call for contributions.

Globalization and interdependence

NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, introduced the report on globalization and interdependence. The issue, he said, lay at the very heart of the work of the Second Committee. The Assembly and the Committee had played a pioneering role in the discussions on the issue. The phenomenon was a process that was underway, evolving and changing. States ought to be able to influence the process in order to steer it in the right direction. The international community must move beyond concepts and into a discussion on what could be done in order to enhance the capacity to manage globalization. The discussion had to move on to a better understanding of how the process could be influenced and changed. The report identified two broad challenges -- that of policy coherence and institutional governance. The international community did not yet possess the mechanisms to ensure policy coherence. There was a need to promote a better understanding of the phenomenon and to maintain an open dialogue on it.

There were three areas to be addressed systematically, he said. First, globalization was technology-driven. Much of what was being seen was driven by dramatic changes in information technology. Second, the area of private capital markets must be addressed. Globalization was being driven by the internationalization of national private-capital markets. The third area to be addressed was trade. Globalization had been driven by an expansion of world trade. The answers had to be sought both in what had to be done at the global level, and in the work done to correct the problem of the uneven impact of globalization on different areas of the world. Concerns about globalization arose basically from the belief that there was no one in charge. The uneven impact of globalization was thus a main area of concern.

S.R. INSANALLY (Guyana), speaking on behalf of the Group of 77 developing countries and China, said that while the effects of globalization continued to extend into the daily lives of people everywhere, the process itself had engendered in many a sense of powerlessness and loss of control. At the same time, the results of globalization to date had been a mixed bag. A strategy to manage globalization could not be stereotyped: it had to be responsive to the specific needs and circumstances of individual countries. In particular, safety mechanisms should be established to protect the most vulnerable sectors of society.

It was critical that integration should take place at a pace designed to allow developing countries to withstand the unbridled competition of the market, and to benefit from globalization and trade liberalization in a smooth and stable manner. For that to happen, human-resources development as well as capacity- building and purposeful leadership were urgently needed. Globalization had also magnified the need for new forms of partnership for development. Alone, governments found themselves unable to cope with the challenges. The rise of the private sector and the growing importance of civil society throughout the world had changed the landscape of international enterprise. They had become important actors and had to be taken into account.

The Group of 77 and China urged the adoption of a policy framework aimed at creating equitable and development-oriented international structures in trade, finance and transfer of technology. They also called for immediate realization of the special and differential provision in multilateral trade agreements, as well as reform of the global financial architecture to provide for greater participation by developing countries in the decision-making process. Intensification of cooperation between the United Nations, the Bretton Woods institutions, and the WTO was also called for. The United Nations had to play a more proactive role in the area of information and communication technology.

MARJATTA RASI (Finland), speaking on behalf of the European Union and Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Cyprus, Malta and Iceland, said that an effective framework for global governance required a new perspective -- one that relied on a more comprehensive, coherent and coordinated approach to the various dimensions of sustainable development. Adequate attention to equity and a more equitable distribution of the benefits of globalization at the national and international level were further required. Responsibility for shaping globalization could not be left to market forces alone. There was an increasing need for political measures to accompany and, where possible, to guide globalization in order to spread its benefits more widely.

The prime responsibility for development lay with the nation States themselves. The support of the international community could only be seen as supplementary. One of the key challenges was to strengthen institutional capacities of developing countries in order to utilize the opportunities of globalization. An integrated world economy offered developing countries the best opportunity for doing so. The forthcoming round of WTO trade negotiations should further the process of trade liberalization, strengthen the functional framework of the multilateral trading system, and ensure that particular interests and concerns of developing countries were taken into account.

Challenges to global governance included the balance between the State and other public and private actors. Transparent and participatory processes were essential. Closer dialogue between countries and with the private sector, as well as with NGOs and other sectors of civil society, was indispensable. The private sector had been a driving force for globalization. It needed to shoulder its responsibility and to respect and promote common standards and values shared by the global community. Participation in the emerging global information network was imperative for any country to benefit from globalization, she said.

KWABENA OSEI-DANQUAH (Ghana) said the common thread in the various studies and reports on globalization and the new trends in Washington was the unprecedented urgency of the need for an integrated focus in development. What had been left unsaid was how urgent it was for the United Nations to validate and assert its leadership in the process. In view of its universal and democratic character, the United Nations was the only body with the authority to lead the process of restructuring the international financing architecture and ensuring a stronger, more stable and participatory system. It was equally equipped to design a coherent network of global governance that linked finance, trade and development.

Strong and effective governance was necessary if governments were to have a chance of managing the consequences of globalization at home. Strong and effective governance at the international level was needed to deal with aspects of globalization that remained outside the control of national governments, and to ensure that the sum of governmental action was as comprehensive as the demands of globalization on policy. The United Nations must provide the forum for identifying the respective responsibilities of developing countries, developed countries and multilateral institutions in governance. Effective governance, he said, would require a balance between implementation of national and global responsibilities.

REVIUS O. ORTIQUE, JR. (United States) said there were several steps to take in promoting development in the midst of globalization. First, there was a need for flexibility and the readiness to adjust. While there had been much discussion about the need for new structures and architecture, the focus should instead be on developing the existing ones. Second, in the midst of change, there were constants which must continue to be emphasized, namely health, education and basic infrastructure. There was a need to take a comprehensive, holistic and coherent approach to policy-making, stressing the interrelationship among economic, social and environmental factors. Third, the exponential increase in the availability of information, as well as the growing inequities in access to it, must be taken into consideration. Access to information and the knowledge that sprang from it were the principal means by which individuals and governments could take advantage of the opportunities and defend against the negative impacts of globalization.

The key question was what the United Nations could do to promote development, given a changing world characterized by globalization and interdependence, he continued. The United Nations, particularly in its operational activities, should focus on the fundamentals he had mentioned -– health, education and basic infrastructure. The Organization could help countries lay the framework and support the development of essential skills, so that they could take advantage of the opportunities opened up by globalization. In that context, he stressed the need for continuing human-resources development. The United Nations also needed to build flexibility into its responses. Finally, it could provide a forum to discuss issues of concern in working towards common developmental goals.

YURI ISAKOV (Russian Federation) said that in order to cope with the risks posed by globalization, it was necessary to develop a concerted strategy of efficient management, to adapt national economies to the conditions of globalization and to ensure fair use of its benefits by all countries, regardless of their development level, in the interest of ensuring economic growth and attaining the objectives of sustainable development. The growing interdependence of national economies as a result of the dynamic increase of trans-border movements of goods, services and capital, and the intensive exchange of information and technologies, had led to pivotal changes in such fields as production, communication, trade and finance.

Globalization was also fraught with a number of negative implications, he continued. The growing openness of some economies made them more vulnerable to outside adverse effects, and promoted the spread of local economic problems to other regions -- as the 1997 financial crisis had shown. Relatively slow economic growth and lower competitiveness in the spheres of technology, information and human resources in developing countries and countries in transition had created additional difficulties in the process of adaptation to globalization. Reinforcing multilateral mechanisms of coordination of macroeconomic policy in the interests of stability, predictability and global economic growth was necessary for effective management of the globalization process. In that context, the most important task was to strengthen the capacity of the United Nations and other multilateral institutions engaged in the complex issues of trade, finance and development.

KIM HAK-SU (Republic of Korea) said that given the increasing interdependence among nations, markets and individuals, it was certain that -- without effective multilateralism and enhanced policy coherence -- globalization was bound to lead to crisis. With its vast array of expertise and its normative and operative capacity, the United Nations and its subsidiary organs had a comparative advantage in providing the leadership to address the twin challenges of globalization –- lack of policy coherence at the national and international levels, and lack of institutional governance. Apart from those challenges, there were two other roles to be played by the Organization.

First, the United Nations should continue to assign priority to empowering developing countries to adapt to new opportunities arising from globalization, he said. In particular, it should focus on how information and communication technologies could help developing countries move towards the goal of development. Second, the regional economic commissions needed to be strengthened so that they could more effectively tackle divergent demands arising from globalization. As the outposts of the United Nations system, they needed to be streamlined in order to evaluate the ramifications of globalization, taking into account the specific needs of each region. He added that in order to realize genuine sustainability, a stable environment permitting broader segments of the population to benefit from globalization’s rich promise should be in place. Good governance, involving transparency and accountability, were urgently needed at both the national and international levels.

LUIZ TUPY CALDAS DE MOURA (Brazil) said that globalization had emerged from the extraordinary developments in communication systems, dating back to the late 1960s. The most important aspect of it, from an economic perspective, was the expansion of finance and capital flows, and their impact on the monetary policies of national economies as well as on the stability of the financial system. Globalization was not only economic, however: it had political, technological and cultural dimensions as well. In fact, it had to do with the daily lives of people all over the world.

Globalization did not occur in a void. Economic processes developed under institutional frameworks at both national and international levels. Institutional and regulatory mechanisms had not yet adjusted to the new realities of globalization. The challenges of globalization could not be effectively dealt with by countries on a unilateral basis. The United Nations, in particular the Economic and Social Council, was uniquely suited to initiate a comprehensive discussion of how to turn the potential benefits of globalization into a reality world wide.

INAM-UL-HAQUE (Pakistan) said that supporters of globalization argued that it was a panacea for all economic difficulties faced by the developing countries. Those suffering from globalization’s negative consequences believed that it was a new form of economic, cultural and eventually political domination. The fact was that the world economy was not global. Trade, investment and financial flows were mostly concentrated within the developed blocs. To put it starkly, globalization was in many ways a new form of economic colonialism and represented the success of ravenous capitalism.

The vast, cheap labour pools of developing countries were being exploited by multinational corporations, he said. Commodity prices were manipulated and constantly lowered to ensure the developed world a continued supply of cheap raw materials. The markets of developing countries were being pried open in the name of trade liberalization, while the developed economies limited access to their own markets. A large majority of developing countries suffered the negative consequences of globalization, but had virtually no role in defining the rules of the game.

The push towards globalization was a triumph of capital over labour. Developed countries intervened on behalf of their multinationals to ensure their smooth operations in the host countries. Investments by many multinational corporations were conditional on the grant of specific immunities for their activities. Globalization was being shaped to serve the interests of powerful economies. It was a tool to plunder the fragile economies of the South. The privatization and unfettered market ethos promoted by globalization was a barely disguised attempt to create a new type of Western domination, rooted in the absolute power of capital and the monopolization of technology.

JAYANT MALHOUTRA (India) said that if globalization were made meaningful at the national level, it could lead not only to enhanced international trade and financial flows but to raising standards and quality of life world wide. Specifically, at the national level, globalization must address poverty, unemployment, education and health, and lead to higher living standards. For that, it was necessary to assess how globalization was impacting each individual developing country. More specifically, there was a need to recognize differences between the economic and social capacities of different countries and regions in responding to globalization’s many challenges. In evolving universal prescriptions, a one-size-fits-all approach must be avoided. Universally applicable timetables for liberalization, whether in the trade or financial sectors, must be rejected. Trade and financial liberalization should be undertaken at a pace and in a sequence that was country specific. Particularly hasty or ill-considered liberalization had clearly led to massive unemployment and a breakdown of social systems.

To avoid the human misery witnessed during the recent Asian financial crisis, countries must be allowed to evolve time frames and modalities to cope with the enhanced activity that came in the wake of trade liberalization, he continued. They should elaborate adequate financial and other measures, including retraining the labour force, in order to address the fallout of globalization. Investment in research and development and infrastructure was crucial if developing countries were to be equipped to manage the challenges of globalization.

* *** *