2001 REPORT ON WORLD SOCIAL SITUATION LAUNCHED AT HEADQUARTERS PRESS BRIEFING

2001 REPORT ON WORLD SOCIAL SITUATION LAUNCHED

AT HEADQUARTERS PRESS BRIEFING

The developing world’s struggle to reduce poverty, avoid marginalization and overcome gaps in income distribution has generally been hindered by economic liberalization policies, correspondents were told at the launch of the 2001 Report on the World Social Situation held this morning at Headquarters.

Three panelists introduced the 300-page report, which was prepared by the United Nations Department of Economic and Social Affairs.  In addition to its assessment of major trends in socio-economic development, the report covers such topics as: institutional frameworks, living conditions, social protection, social disruptions and equity.

Sergei Zelenev, Director, Social Analysis and Policy Unit for the Department of Economic and Social Affairs, said the report’s authors attempted to put forward a comprehensive and objective document regarding social trends in the world.  The report stresses the institutional dimensions of development, including family issues and the interaction between market, State and civil society.  In addition to social trends, the report discusses such complicating factors as violence, discrimination and armed conflict.

Mr. Zelenev added that the report provided a “snapshot” of what was happening in the world but did not prescribe cures.  The report did argue, however, that there was still a need for government intervention in the global economy.  It would be naive and short-sighted to simply rely on the free hand of the world market to create equity and raise living standards for all.

Overall, there was an attempt to create a consistently thoughtful text that would not only raise issues but also carefully evaluate the questions that had arisen, he said.  To what extent that was successful was left up to Member States, which will discuss the report this afternoon in the Third Committee.

Maria Amparo Cruz-Saco, Associate Professor of Economics at Connecticut College, said the key issue for the developing world was its struggle to enter the global economy.  Such efforts to create a free market were having a detrimental effect on a State’s ability to provide social services and income security.

Many countries were now less able to provide decent, productive employment for their citizens, she said.  Another trend was that countries were benefiting in a very uneven manner from technology advances.  Many were suffering from what had been called a digital divide.  Another problem was youth unemployment, which was now two to three times larger than the general unemployment rate in most countries in the world.  That affected both developed and developing countries.  Child labour was also a troubling phenomenon -- in Africa, for example, 20 per cent of children were working instead of going to school.

While there had been some development successes, she said, policies over the last 10 years had not generally led to less poverty and increased economic growth. 

Levels of poverty remained high and inequality continued to be an issue.  On top of that, prospects for economic growth might also be slowing.

Giovanni Andrea Cornia, Professor at the University of Florence, said the report showed that although there was progress, that progress was seen as being not enough and unequally distributed.  Economic growth in the 1990s had been slower than growth in the 1960s and 1970s, and that growth was increasingly unstable -- evident from the frequency of crises in the world economy.

Economic growth was also less egalitarian, he said.  In two thirds of the world’s countries, inequality had increased in recent years.  That applied to all nations, developed and developing.  Growth was also less formal; the new type of development had led to fewer and fewer people with written contracts and the social protection that went along with those contracts.  Growth was also increasingly conflict-ridden.  In the early 1990s there were about 20 humanitarian emergencies per year; by mid-decade there were about 50 per year.

Those factors showed that globalization might not be leading to a convergence in living standards, economic growth and levels of well-being.  The report’s analysis was clear that there was a need for correction.  Perhaps the major objectives of international economic policy, which were currently liberalization and globalization, could be changed.  Such a policy should emphasized broad-based egalitarian growth that looked directly into the sources of well-being, such as life expectancy, nutrition and education.

A correspondent asked why the social implications of the global arms trade were not discussed in the report.

Mr. Zelenev said the report addressed a number of issues related to social development but was not exhaustive.  The arms trade was an important issue.  However, the report’s authors chose to concentrate on mostly social aspects.

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