INCORPORATING SOCIAL GOALS INTO ECONOMIC POLICIES FURTHERS ECONOMIC PROGRESS, SPEAKERS TELL SOCIAL DEVELOPMENT COMMISSION

Commission for Social Development

Fortieth Session

3^rd and 4^th Meetings (AM & PM)

INCORPORATING SOCIAL GOALS INTO ECONOMIC POLICIES FURTHERS ECONOMIC PROGRESS,

SPEAKERS TELL SOCIAL DEVELOPMENT COMMISSION

Continuing their general debate on the priority theme of the current session -– Integration of social and economic policy -– members of the Commission for Social Development today explored ways to better implement the commitments made at the World Summit for Social Development and its follow-up at the twenty-fourth special session of the General Assembly, held in Geneva in the year 2000. 

The representative of Bangladesh pointed out that this session of the Commission was being held in the wake of last week’s economic and social forums, which had dealt with two sides of the same coin, looking at globalization from different vantage points.  The World Economic Forum had done it through the prism of efficiency, growth and macroeconomic stability, and the World Social Forum, through the filter of equity, redistribution and social justice.

Speakers in the discussion stressed that incorporation of broad social objectives into economic policies would contribute not only to the realization of social goals, but also to the success of economic policies themselves.  Also noted was the need to correct a tendency, in policy formulation which put the poor and the marginalized at a greater disadvantage.

In that connection, several delegates expressed hope that the forthcoming Financing for Development Conference in Mexico and the World Summit for Sustainable Development in South Africa would present an opportunity to fully explore concrete and innovative sources of financing for development and for meeting commitments made in recent years.  Also noted were encouraging signs that international financial institutions were trying to integrate economic and social policies into their social adjustment programmes. 

Emphasizing the need for the developed countries to intensify their technical assistance efforts, the representative of Indonesia said that continued and strengthened multilateral efforts would allow many developing countries to move forward and cope with the realities imposed by globalization.  International donors needed to be sensitive to local needs, cultures and circumstances and align their aid with national development goals.

The representative of Cuba stressed that first of all, it was important to globalize justice and solidarity.  It was time to move from words to deeds.  It was essential that the limited resources that today were wasted on arms and illicit drug trafficking should be put to the service of humankind. 

Stressing the need for a supportive international environment for the developing countries, the representative of Venezuela (on behalf of the Group of 77 Developing Countries and China) said that in many cases, strict macroeconomic measures had resulted in growing inequalities within societies, erosion of health and educational systems, and increasing levels of poverty.  One of the developing countries’ most pressing challenges was financing social services in the context of limited revenue.  That situation added new urgency to the need for innovative new sources of financing for development. 

Disagreeing with the notion that there was a necessary choice between economic reform and social development, the United States representative said it was precisely through economic reform that the social objectives of job creation and reduction of poverty, inequality and social exclusion could be best achieved.  He also said that introducing the concept of “social assessment” should not serve as an excuse for the expansion of a “social science research empire”, which would hold conferences and produce reports confirming the existence of already familiar problems or repeating recommendations, which had never been implemented.  Instead, it was important to focus on practical solutions.

The representatives of Spain (on behalf of the European Union and associated States) and the European Council said the main areas of action in Europe focused on employment, economic reforms and social cohesion.  The recently adopted social cohesion strategy started from the premise that economic and social policy went hand in hand.

Also today, the Commission approved a draft decision, making recommendations to the Economic and Social Council regarding the terms of office of the members of the Commission and the elections of the Bureau for its next regular session.

Also speaking today were the representatives of Sweden, China, Morocco, Republic of Korea, Argentina, Croatia, El Salvador, Russian Federation, Mexico, the Czech Republic, Malaysia, Thailand, Belarus and Democratic People’s Republic of Korea.

Representatives of UNAIDS, the Council of Europe and the International Organization of Employers, also spoke.

At 10 a.m. tomorrow, the Commission is expected to continue its general debate with participation of non-governmental organizations.

Background

The Commission for Social Development met this morning to begin its general debate on the priority theme of its fortieth session:  “Integration of social and economic policy”.  For information about the current session, see Press Release SOC/4589 of 6 February.

Draft Decision for Adoption by Economic and Social Council

There is a draft decision by which the Commission for Social Development recommends to the Economic and Social Council that the terms of the Commission members would cover four regular sessions of the Commission, to begin immediately after the conclusion of work of the Commission’s regular session held after

1 January following their election by the Council and to end at the conclusion of the regular session held after 1 January following the election of the States that were to succeed them as members of the Commission. 

By the terms of the draft, the Council would recommend extending the terms of office of those members of the Commission whose terms are to expire on

31 December 2002 until the conclusion of the forty-first session of the Commission; of those members whose terms are to expire on 31 December 2003 until the conclusion of the forty-second session of the Commission; and of those members whose terms are to expire on 31 December 2004 until the conclusion of the forty-third session of the Commission.

It is also recommended that the Commission, immediately following the closure of a regular session, hold the first meeting of its subsequent regular session for the sole purpose of electing the new chairman and other members of the Bureau, and that, in this context, the provisions of General Assembly resolution 1798 (XVII) of 11 December 1962 will apply only to the substantive part of the Commission’s sessions.

Statements

ADRIANA PULIDO (Venezuela), speaking on behalf of the "Group of 77" Developing Countries and China, said that at the World Summit for Social Development in 1995, the Governments had affirmed that “the ultimate goal of social development was to improve and enhance the quality of life of all people”.  That should be the guiding principle of the Commission’s actions when designing economic and social policies.  For the Group of 77 and China, that goal implicitly required coordination and integration of actions in both social and economic realms.  In practice, however, there was a gap between the implementation of macroeconomic policy measures and the design and implementation of social policies and programmes.  That gap was most visible among developing countries, particularly those that had undergone the process of implementing stabilization or structural packages.  Unfortunately, the Secretary-General’s report before the Commission did not elaborate sufficiently on the underlying causes of the “divorce” between the formulation of economic and social policies. 

In keeping with the objectives of the World Summit for Social Development, the Group attached great importance to the integration of social and economic policies, he continued.  Social development would not be realized simply through the free interaction of market forces.  Also needed were policies aimed at correcting market failures, complementing market mechanisms, maintaining social stability and creating national and international economic environments that would promote sustainable growth on a global scale, leading to sustainable development.  Sadly, in many developing countries, the implementation of strict macroeconomic measures had resulted in growing inequalities within societies, erosion of health and educational systems, and increasing levels of poverty.  In many instances, those macroeconomic policies had even reversed years of gains in the social sector and reduced the living standards of many segments of the population.  Moreover, as described by the Secretary-General in his report, developing countries were faced with one of the most pressing challenges of financing the provision of public goods in the context of limited sources of revenue, restricted by an increasingly liberalized international economic environment.  That situation added new urgency to the need for innovative new sources of financing for development. 

While acknowledging the responsibility of national Governments in the formulation of economic and social policies, she further stressed that a supportive international environment should promote the efforts of developing countries in those endeavours.  Economic policies should incorporate broad social development objectives, which would contribute not only to the realization of social goals, but also to the success of macroeconomic policies themselves.  There were encouraging signs that the international financial institutions were trying to integrate economic and social policies into their social adjustment programmes.  Lessons could be drawn from such mechanisms as the Structural Adjustment Participatory Review Initiative, under the auspices of the World Bank.  However, it was important to ensure participation of Governments in such structures.  The forthcoming Monterrey Conference would signify an important step forward in building a global alliance for development.  The Group awaited with interest the methodology for social and environmental impact analysis of structural adjustment programmes being prepared by the World Bank and the International Monetary Fund. 

JOSE MANUEL LOPEZ-BARRON (Spain), speaking on behalf of the European Union and associated States, said that recent European Council meetings in Lisbon and Nice had established the main areas of future action in dealing with economic, social and environmental issues in a mutually beneficial way.  The strategy designed in Lisbon set out three main areas of action:  employment, economic reforms and social cohesion.  The goal in Europe was to improve social conditions, in particular through achieving full employment and creating a society better adapted to the needs of both men and women. 

He stressed the need to strengthen coordination within the United Nations system, which should include, for example, closer links between the Commission on Social Development and the International Labour Organization, and between the United Nations and international financial institutions.  Such efforts were consistent with wider goals envisioned by the Copenhagen Summit.  It was important to encourage a coherent approach to the integration of social and development goals.  The recently developed European social agenda was a decisive step in the direction of achieving social cohesion, which should involve creation of better social conditions and adequate levels of productivity along with improved provision of services.  Both efficiency and social justice required setting clear goals, which included tax relief in cases of need, achievement of full employment, job creation and taking full account of internationally agreed core labour standards.  Supporting participatory policy making, it was also important to encourage participation of civil society and involvement of vulnerable groups of population in the formulation of policies.  The role of social dialogue was well recognized within the European Union. 

The concept of social assessment in the fight against poverty had been widely discussed in recent years, he continued.  Great efforts were made to further define it and develop tools and methods to be used by both industrialized and developing countries.  It was important to tailor social assessment to national capacities and ensure transparency of that exercise.  Recognizing the multilateral nature of the phenomenon of poverty, which could not be measured only in the terms of money, the European Union believed that more human-centred indexes should become key elements in the new approach towards monitoring the efforts directed at poverty reduction. 

Turning to social expenditure as a productive factor, he emphasized the need for greater equity in social models.  There were indivisible links between social benefits and increased productivity.  The guiding principle of the social agenda was to strengthen the role of social policies in development.  The European Union stressed the importance of coordination with such agencies as the ILO towards linking social benefits and progress.  Special importance also needed to be attached to education, health, housing, food supply and the fight against poverty.  Social protection and regional integration policies would allow for better cohesion within societies.  A well-balanced mix of private and public providers of social protection was also essential.

EWA PERSSON GORANSSON (Sweden) said that in the years to come, countries all over the world faced a series of significant common challenges in the field of social and economic policy.  These were the transforming world of work, changing family structures, persistent gender inequalities, falling birth rates and an ageing population.  Taken together, the situation called for policies aiming at inclusive societies, promoting full employment, education for all, access to quality social services, equal opportunities for women and men, the ability to combine work and family life and the modernization of social protection systems.

If social injustice and social exclusion were to be tackled, it was important to recognize and further strengthen, the link between political, economic, environmental and social development, she said.  Policies aiming at sustainable social development and policies promoting sustainable economic growth and prosperity were mutually reinforcing each other.  She said that social protection was certainly not a matter of charity.  It was a human right.  Social protection was neither by any means an economic burden.  It was a productive factor, an engine for growth and an investment for the future. 

She stressed that Governments had a fundamental role in ensuring social protection by promoting the capabilities and opportunities of all individuals.  Equality, participation, empowerment and solidarity were all vital components for an inclusive and sustainable approach to social protection.

XIE BOHUA (China) said that social issues such as the environment, poverty, HIV/AIDS, drugs and refugees were becoming more and more serious and hazardous for the entire international community.  Promoting development not only served to improve people’s livelihood but also, more fundamentally, helped to eliminate many of the destabilizing factors in the world.  Currently, poverty and unemployment were still salient problems for developing countries, he said.  Under such circumstances, all countries, developing countries in particular, must keep learning from their past experiences, strengthen their policies to eliminate poverty and increase employment, to ensure the fulfillment of social development goals.  The causes of poverty and unemployment were global; therefore policies and cooperation for the elimination of poverty and the increase of employment must not be restricted by national borders. 

Basic social services reflected the degree of social progress, he continued.  A government with foresight must not consider education, public hygiene and social protection as just immediate benefits for the people, but also as important long-term goals bearing on the well-being of the entire State and the nation.  All governments must strengthen public fiscal policies, integrate the issue of ageing into the mainstream of the national social and economic development plans, increase financial input in that regard and step up the building of the infrastructure for social services to meet the material and cultural needs of the people.  The impact of many social issues transcended national borders, and their solution called for extensive cooperation and joint efforts of the entire international community.  So long as countries could learn from one another and respect diversity they would surely benefit from this kind of cooperation.

NAIMA SENHADJI (Morocco) said that social policies were no longer seen as charity and played an increasingly important role in national development models.  The international community had finally realized that social development could be directly linked to employment opportunities and productivity.  Governments, international organizations, and economic and social partners were now convinced that the fight against poverty and exclusion required social action integrated with economic growth. 

She stressed that, following the events of 11 September, international society was facing threats of terrorism and violence, as well as serious economic recession in many parts of the world.  The World Economic Forum and the Social Forum had agreed on at least one point –- extremism, violence and terrorism were directly linked to exclusion and poverty.  It was essential that the international community turn to the root causes of such phenomena, including specific development programmes which would improve the conditions of life and the well-being of vulnerable groups.  There could be no peace in the world as long as millions of people were economically and socially excluded. 

Since the 1995 Copenhagen Summit, Morocco had put in place a social development strategy based on improving access to basic social services, the promotion of employment and income-generating activities and the social integration of excluded and vulnerable groups.  She explained that this strategy consisted of a combination of focal areas such as drinkable water, electricity in rural areas, rural roads, urban and rural poverty as well as illiteracy.  Morocco had reformed both the education and the health sectors and had initiated job promotion, including the support for entrepreneurship.  Morocco’s fight for economic and social development was unfortunately severely challenged by factors such as drought, external debts, oil prices and economic fluctuations, which particularly affected the poor.

SHIN ON-HAN, Assistant Minister for Social Welfare Policy, Ministry of Health and Social Welfare of Republic of Korea, said his delegation shared the view of the Secretary-general that the ultimate ends of economic policy were, in the broad sense, social.  It was important to balance the efforts aimed at social and economic development.  While market forces should determine the allocation of resources, economic opportunity should be made available to all, and macro-economic policies should incorporate effective social protection systems for the vulnerable, especially during times of economic transition and reform.  Minimum-level social expenditure was required to provide for a comprehensive and productive system of social protection.

The recent economic hardship that had struck his country in late 1997 had resulted in a widening gap between the rich and the poor, he said.  The crisis had prompted his Government to embark upon a bold reshaping of the economy, to make it more responsive to the demands of the marketplace, while being sensitive to the needs of workers and vulnerable groups.  The task had been to restructure the corporate entities and firmly establish a framework for providing a minimum standard of living to all socio-economic classes.  A concept of “productive welfare” had been introduced in the Republic of Korea to serve as a foundation for Government policies aimed at attaining sustained economic growth while distributing the fruits of that growth among all citizens.   The main goals were to strengthen self-sufficiency, generate greater value-added productivity, restore economic independence for the unemployed, assist people engaged in small businesses and provide job opportunities for elderly and disabled persons who were able to work.

His country’s experience provided some valuable lessons for others to draw upon, he said.  First, social and welfare policy should not consist of transfer programmes that merely gave out assistance to the needy –- instead, it should be designed to increase the earning capacity of the poor, focusing on education, training and re-training.  Also, social concerns should be integrated into economic policies, without placing excessive burden on the growth potential of the economy.  It was essential to achieve consensus on what constituted priority social concerns.   Integration of social and economic policy called for a comprehensive approach to addressing a full range of overlapping challenges and issues, including inequality, fiscal restraint, economic transparency and the growing influence of transnational capital.

DOMINGO CULLEN (Argentina) said that the integration of social and economic policies was highly important to developing countries, including Argentina.  His country had begun the process of overcoming an economic crisis, which had resulted in a high level of unemployment and poverty and worsening of living conditions. 

Economic growth plans must include measures to improve the social situation in countries along with achieving sustainable development and growth, he continued.  He agreed with the conclusions of the report before the Commission, which envisioned an integrated approach to social and economic issues, sharing experiences and adopting a balanced level of social protection.  It was important that international financial institutions should integrate social approaches into their programmes.  The basis for the development of nations lay in the sound socio-economic policies and creation of a favourable climate for foreign investment.

The report’s recommendations could be supplemented by proposals regarding international trade, which should be free from obstacles and artificial subsidies, which distorted the natural market picture, he said.  Following recent international conferences, a new consensus was arising placing the human being at the centre of development.  A similar approach had been taken by several important regional events, including the recent meeting of the Economic Commission for Latin America and the Caribbean (ECLAC).  In his region, the increase in countries’ social expenses provided evidence regarding the will of Governments to improve their social policies and develop more efficient management.

Turning to his country’s situation, he said that an emergency had been declared to normalize the financial and economic situation there.  Temporary drastic measures had to be adopted, but he reaffirmed his Government’s intention to normalize the situation and eradicate poverty by implementing effective social and economic policies.  Priorities included the food security programme and family policies that sought to respond urgently to the needs of the population.  Active participation of both public and private actors was envisioned in implementing those programmes.  Urgent cooperation of the international community was also needed to overcome the crisis.

NINO ZGANEC, Assistant Minister in the Ministry of Labour and Social Welfare of Croatia, said his country had prepared a development strategy for the twenty-first century.  The Strategy provided a framework of the developmental changes that must be launched to realize economic and social growth and development.  Aware that the implementation of reforms required a consensus of all social partners, the Government of Croatia had concluded an agreement with the representatives of employers and trade unions.  That agreement contained the main common goals of economic and social policy.  To achieve faster economic growth and development, he said Croatia must create new resources and identify new activities whose primary objective would not be to create material goods, but to offer services which would focus on human resources.

Despite limited economic resources, his country had invested

25 per cent of its gross domestic product into the social sphere, he said.  To provide for greater social security for its citizens and to solve the biggest social problems, a series of measures had been undertaken, and reforms had been implemented in various areas of social policy.  Reforms were being implemented to improve the quality of health services and limit the growth of the health care expenditure.  In doing so, three strategic goals had been identified:  to increase life expectancy, to improve health-related quality of life and to reduce differences in the availability of necessary health care.  Changes and reforms were also planned in the education, unemployment and housing spheres. 

Poverty and social exclusion constituted a problem which had affected Croatia as well as others, he said.  According to research, about 10 per cent of the Croatian population lived in absolute poverty.  He was aware that the achievement of the social policy goals was closely related to, and dependent on the country’s economic development.  However, he considered that social policy might be the basis for social cohesion and social development, only if it had been brought in line with the macroeconomic goals. 

HAZEL ESCRICH (El Salvador) said her delegation supported the statement by the representative of Venezuela on behalf of the Group of 77.  Sharing her country’s experiences, she also stressed the need to achieve integration of social and economic policies.  The issues of macroeconomic development continued to be complex, but social efforts should not be subordinate to economic policies.  Trade and fiscal policies were also closely related to social development.  El Salvador had adopted an integral approach to its development strategy, and its economy was growing at a higher rate than that of the region.  However, the country had to deal with the consequences of natural disasters and the fluctuations of international prices on such products as coffee.

To address problems faced by the population, there had been a strong increase in the public investment in the country, she continued.  More resources were being devoted to social development.  As a result of the Government’s long-term efforts, poverty had been reduced, and the newly open economy had begun to grow.  Progress had been achieved in supporting small businesses and integrating economic and social objectives at the local and municipal level.  However, challenges remained, which required attention.  It was important to continue considering new and improved ways of integrating social and economic goals.  At the international and regional levels, El Salvador was sharing its experiences with other countries.  For instance, efforts to improve family policies were being made within the framework of the Rio Group.  Foreign investors were watching with interest the developments in the country. 

IFTEKHAR AHMED CHOWDURY (Bangladesh) said the Commission meeting was being held in the wake of two significant events held simultaneously -- the World Economic Forum and the World Social Forum.  The first was now recognized as an institution, a celebration of market values, whereas the second had been termed as a “rival gathering” of the former by none other than the Secretary-General.  Both however, dealt with two sides of the same coin.  They looked at globalization from different vantage points.  The first through the prism of efficiency, growth and macroeconomic stability; the second through that of equity, redistribution and social justice.  Both had addressed the eradication of poverty, the building of social capital and more generally, the creation of an enabling environment for human security and human development.

This year the Commission was taking up a priority theme that addressed what the two fora were dealing with -– an inclusive approach to public policy that would not only focus on the immediate issues of macroeconomic stability and sustenance of growth, but one addressing long-term social and economic goals.  The challenge was to correct a tendency to put the poor and the marginalized at a greater disadvantage.  When comparing the findings in the report of the Secretary-General with what had happened on the ground in Bangladesh, it was clear that determined public action to upgrade basic social services, especially in areas like education, health care, water supplies and sanitation, had enhanced Bangladesh’s human capital. 

Mainstreaming gender into public policy had been a pillar of the approach, he said.  Deliberate efforts to develop a gender-sensitive development paradigm had brought dividends.  That was most evident in the involvement of women in the economy, their role in decision-making within their communities and in the family, and in employment patterns both in the formal and non-formal sectors.  However, even with those positive steps, the poor and specific social groups remained vulnerable.  It was an ongoing challenge to sustain efforts which accorded them the protection they needed.  Vulnerability resulted from the forces of globalization, natural disasters, and the lack of necessary skills or adaptability.

JOHN MURRAY, observer of the Council of Europe, said that in line with its fundamental commitment to human rights, the Council of Europe had a rights-based approach to social questions.  Social, economic and cultural rights were seen as part of human rights.  The human rights approach meant that the Council got its priorities right from the outset; it made it clear that human well-being for all was the primary objective, rather than economic growth for its own sake.  The concept of social cohesion was now the leitmotiv of the work of the Council on social policy.  A social cohesion strategy had been adopted, which started from the premise that economic and social policy went hand in hand.  Further, it recognized that sound international policies could not be directed solely by market mechanisms without risking damaging social consequences.  Moreover, economic development without accompanying social development would result in serious problems sooner or later.

The Council of Europe believed that social expenditure, including social protection, must not just be seen as a cost, a potential drag on economic growth.  It must also be seen as a necessary and beneficial investment.  This being said, governments were, of course, right to be more concerned than they used to be about whether money for social expenditure was being spent wisely.  It was necessary to fix clearer objectives for social programmes and to devise tools for monitoring their progress and measuring their effectiveness.  Social security was costly, but he saw it as essential to the European social model.  At the same time, there was a need for change.  For the disadvantaged, the danger of welfare dependence was real and debilitating.  It was important to find ways of making social benefits a springboard for activation so that they could help lift people out of poverty, instead of leaving people as passive recipients of benefits.

He said globalization was increasing the pace of change.  If the social consequences of globalization were ignored, globalization itself and market mechanisms, would be discredited and come to be seen as inhuman.  This was why the Council of Europe was planning a conference later this year on social responsibility and globalization.  The Council saw a clear link between the Commission and the forthcoming Johannesburg Summit on Sustainable Development.  The world had learnt that the pursuit of economic growth without concern for its environmental consequences would be unsustainable in the long-run -– it was time to learn that a society without concern for economic justice and social justice would also turn out to be unsustainable. 

Action on Draft

At the opening of its afternoon session, the Commission adopted, without a vote, the draft decision contained in document E/CN.5/2002/L.2, which was introduced by the Commission’s Chairperson, Faith Innerarity (Jamaica). 

The representatives of Spain (on behalf of the European Union) and Algeria spoke on the organizational matters before the Commission.

Statements

MARINA O. KORUNOVA (Russian Federation) said the priority topic of the current session was a key question for each and every Government, as well as for the international community as a whole.  Economic and social spheres were the two sides of a single medal, and it was no accident that the outcome of the twenty-fourth special session of the General Assembly –- Copenhagen + 5 -- addressed the questions of reinforcing the social component of the activities of international financial institutions; facilitating access to the world markets; creating a favourable investment climate; and fighting corruption.  The Commission should not lose sight of the implementation of the initiatives adopted during the special session.

When formulating its socio-economic development strategy, Russia focused on the decisions of the Social Summit and the special session, she continued.  Its contribution to the implementation of the decisions of those forums was represented by an international experts’ meeting on social security in the transition countries, which was held in St. Petersburg last December.

Turning to her country’s experiences, she said that, having dismantled its old administrative system and liberalized its economy, Russia was entering the new century as a democratic, market economy State.  Today, opportunities had appeared for the solving of fundamental social problems.  The Government had adopted a long-term strategy, which was directed at modernizing the economy, freeing up private initiative and strengthening the role of the State in ensuring progressive institutional changes.  Under the new programme, instead of a social paternalism State, the role of the Government would be to ensure social guarantees to the extent to which the society itself was unable to do so on its own.

She said that under the modernization scenario, the country would be able to radically improve the standard of living through investment in the human being and creation of proper conditions for realizing the citizens’ rights to work, education, improved health and social assistance.  The programme for socio-economic change adopted by the country was focused on dynamically developing a market economy with a lesser degree of dependence on the international financial situation.  The main aim of the State’s added responsibility was to reduce the level of poverty and provide assistance to vulnerable population groups.

BLANCA LILIA GARCIA (Mexico) said it was necessary to promote social goals in a more decisive fashion.  As a subsidiary body of the Economic and Social Council, the Commission was called upon to play an important role.  During the last revision of the commitments made at the Social Summit, it had become clear that it was important to blend social and economic policies.  The final aim was to improve the security and the well-being of the human being. 

In the last decades, the paradigms of development had changed, and in searching for the new development mode it was necessary to take them into account, she continued.  It was important to seek new ways of reaching the goals adopted by the international community, which included elimination of poverty and provision of social security.  For that reason, her country had volunteered to host the international conference soon to be held in Monterrey.  In reiterating her Government’s invitation to Member States to take an active part in the upcoming event, she said it was important to see what each country could bring to that event and how it could contribute to strengthening the international community’s efforts towards social development.

The eyes of the world were turning to social development as an important part of overall development efforts, she said.  While it was clear that economic development was absolutely essential for overall development, it did not guarantee certain levels of welfare.  More needed to be done.  Social development policies should not be perceived as subordinate ones.  It was important to develop multilateral-directional action.  On its part, Mexico was developing numerous strategies to find answers to various problems, with participation of all sectors of the economy.  Social development was to be based on democratic practice and Government transparency. 

MS. TOMKOVA (Czech Republic) said the Czech Republic had suffered greatly in the early 1990’s, as had many other countries that faced economic difficulties at the time.  It was particularly important to protect social groups such as families, children, and the elderly from falling into poverty as a result of economic difficulties.  Economic changes might have negative consequences such as inflation or unemployment, which made it necessary for the social system to be stable.

It was also necessary to analyze each stage in macroeconomic policy.  Those stages included loans for housing, and the situation for women, urban and rural populations, and elderly and unemployed persons.  Short-term measures must not have long-term effects.  It was vital that vulnerable groups were protected.  She gave the example of a family losing its source of income and stated that this must not mean that the children interrupt their education.  The need for a social protection system was stressed, and that system must be differentiated and targeted to help vulnerable groups, activate them, encourage entrepreneurship and lift them out of poverty.  

Speaking as an observer, BRUNO RODRIGUEZ PARRILLA (Cuba) said the integration of economic and social policies was an urgent necessity, in particular for the countries where poverty was growing, creating a danger of explosive crises.  The Copenhagen Summit had determined that such integration should be achieved immediately, and a number of goals had been set in that respect.  While it was recognized that the structural adjustment programmes should start to include social development programmes, in reality, the majority of the developing countries were forced to pursue policies which took them further away from those goals.  The neo-liberal policies imposed by international financial institutions had, in fact, aggravated the social crises. 

The market, which had become globalized, claimed to create immense wealth for everybody, but in fact, the opposite happened, he continued.  In fact, recently, there had been a tendency towards reduction in the growth rate of the developing countries.  The super-rich were becoming richer, while the poor were becoming poorer.  The external debt, which seemed to increase as countries were paying it back, had reached a point of some 43 per cent of the gross national product of the developing countries.  The negative social impact of macroeconomic policies was becoming obvious.  Social investment in many developing countries had actually diminished.  The world development indicators showed that public sector expenditure had gone down from 4.2 to 4 per cent.

Cuba, however, had demonstrated that equitable investment in social needs made it possible to meet the needs of the population even before the country had reached sustainable development.  Reorientation towards social programmes was especially beneficial to the poor and most vulnerable groups of society.  Despite the financial and economic blockade imposed by the United States, the results obtained in Cuba were impressive.  The country’s growth rate was 4 to 5 times higher than that of an average Latin American country, and the budget deficit was extremely small and manageable.  All social indicators were improving, and unemployment had been reduced.  Everybody had access to basic health care and education.  The country was also developing its social security programme.  Human resources were considered as a key factor in economy.

He concluded that with solidarity and cooperation, much more could be achieved, provided there was the will to do so.  For instance, more than

6,000 health professionals were providing assistance to other developing countries.  The industrialized countries could and should do more in that respect.  It was time to move from words to deeds.  It was essential that the limited resources that today were wasted on arms and illicit drug trafficking should be put to the service of humankind.  First of all, it was important to globalize justice and solidarity.

JOHN DAVISON (United States) said the United States had long subscribed to the socio-economic concepts underlying this thematic agenda, mainly, that economic decisions at both the macro- and micro- level typically had social implications and human consequences.  Therefore, economic and social policies in both the public and private sectors must ideally be coordinated and integrated.  He also recognized that this imperative had been made more urgent by the globalizing effects of modern media, computer and telecommunications technologies.  The United States supported free trade, free competition, privatization of State enterprises and liberalized foreign investment.  It did not support the implication in the third recommendation of the Secretary-General’s report that there was a necessary choice between economic reform and social development.  Rather, the United States believed it was precisely through economic reform that the social objectives of job creation and reduction of poverty, inequality and social exclusion could be best achieved.

The United States’ support for the term “social assessment” was conditional, he said, pending further clarification of its precise meaning.  If “social assessment” referred to a process of deliberately ascertaining the views of consumers or services, and thereby disseminating a culture of democracy and insuring transparent and accountable government, the United States supported it wholeheartedly.

He was hopeful that the type of “social assessment” referred to by the Secretary-General’s report would not serve as an excuse for the creation and expansion of a social science research empire which would hold conferences and seminars and produce studies and reports, all proving the existence of problems already familiar to them or repeating recommendations which had never been implemented.  If this was “social assessment”, the United States could not support it and, instead, called upon the Commission to focus on practical solutions, such as hiring and deploying more doctors and teachers and purchasing and distributing more medicines and textbooks.

Y.M. RAJA DATO’ZAHARATON RAJA ZAINAL ABIDIN (Malaysia), speaking as an observer, said that the Malaysian Government had strongly advocated that economic development must involve and accrue to all citizens, especially in a plural society like Malaysia.  Growth in her country was not pursued as an end in itself.  Instead it had to be accompanied by equitable distribution, so that all segments of society would benefit from the growth process.  She said that Malaysia’s experience had showed that improvements in the quality of life in the population had been more a result of social policies than economic growth alone that increased the purchasing power of the population.  Raising income, and hence demand, was not a guarantee that a population would have adequate access to social services.  Accessibility was as crucial as affordability.

In Malaysia, there had already been a strong social infrastructure network that was able to minimize the impact of the 1997 financial crisis and the economic slowdown of 2001 on the population.  Measures taken in response to these events showed that they had to be tailor-made to suit the country’s economic and social conditions.  Policy prescription had to be flexible, and they had to be adapted to the changing dynamics of the situation without undermining long-term objectives.  The social dimension of any policy response must be taken into consideration so as to avert social unrest and ensure social stability.  In Malaysia’s case, fiscal and monetary policies had been relaxed and complemented with selective exchange controls to restore stability and mitigate the impact of the crisis on the poorer segments of society.

She believed that there was a need to ensure the full participation of all countries in the benefits of globalization and also to reduce their vulnerability to its negative impacts.  Towards this end, there was a need for better integration of economic and social policy in the overall development agenda.  This was to ensure that the development agenda for the future was aimed at promoting a more humane world, which included the enhancement of the environment, the eradication of poverty, guaranteed human security, and where the concept of development did not focus on growth per se, but on its character and distribution. 

CHOLCHINEEPAN CHIRANOND (Thailand) said that in many countries, including Thailand, social sector expenditures such as education, health social protection and rural development, had taken up a greater share of GDP, and often represented the largest expenditures items in the overall government budget.  Governments were thus facing the challenges of developing efficient steering mechanisms for the social sector, which would ensure that limited resources were put to optimal use in areas where they were most needed.  These mechanisms must be able to address the overall national social expenditures and financial burdens under different development scenarios and reform options.  At the same time, the development of such mechanisms must also take into account good governance, transparency, accountability and involvement or popular participation by the public in the processes of policy formulation and implementation.  To be effective, policies on the social sector must be compatible with those on the economic front and vice versa.

Apart from the need for viable social safety nets and social protection systems, the 1997 financial crisis had shown that social projects would really benefit people at the grass roots when they were managed by people themselves.  Indeed, she believed that the empowerment of people at the grass-roots level was crucial to social development and thus an essential component in the integration of economic and social policy.  In this regard, the Thai Government, in tandem with political reform, had pursued the policy of decentralization.  Certain administrative and legislative powers had been delegated to the local administration to promote broader participation at the grass-roots level. 

She concluded by noting that efforts at the national level were not enough to ensure sustained economic and social development.  There was also a need for an enabling socio-economic environment at the international level.  She called on the international community to recommit itself to the Millennium Development Goals and to the promotion of a fully inclusive and equitable economic system.  The moral undertone must be heeded to create development with a human face.

SERGEI S. LING (Belarus) said that in the present-day world, one could not speak of social policies as a mere appendage of economic efforts.  Concern over the well-being of human beings was one of the priorities of modern-day macroeconomic policies, and on which his country based its efforts.  Having gone through a difficult period following the collapse of the Soviet Union, the country had adopted a number of urgent measures to deal with the budget deficit and transform the economy.  Over the last three years, Belarus had improved its situation and had achieved a certain level of stability. 

That did not mean it had reached the level of sustainable development, however, he continued.  The Chernobyl problem contributed to the difficulties the country was experiencing.  Despite the problems, Belarus was taking measures for the social protection of the population and adopting social development programmes.  As a result of the Government’s efforts, there was steady growth in the wages and purchasing power of people.  The real income of the population had recently grown by some 75 per cent.  The reform of the pension system and revision of the social insurance system were among the priorities.  An important aim was a reduction in the number of people living below the poverty line and introduction of new labour standards for the protection of workers. 

He concluded that it was a combination of national and international efforts, including technical and financial assistance, that could be most beneficial in the long run.

MUN JONG CHOL (Democratic People’s Republic of Korea) said that while major international conferences had produced strategies and goals for social development, the reality showed there was a long way to go for the full realization of international commitments to reduce poverty.  In recent years, several countries had gained in economic growth; however, social development remained slow, particularly since the emergence of globalization.  There was a widening gap between the rich and poor, increasing the number of people who lived in poverty.  This was mainly attributable to the fact that governments, while focusing only on economic growth for simple profit, paid less attention to social development which constituted a sound basis for sustained economic development.

He believed that achieving social development by integrating social and economic policy required the proper attitude of government towards social development and political will concerning social policies.  To ensure sustained expenditure on education, health and other social fields and thus create a basis for economic development, proper attitudes towards social development and government determination were of great importance.  The experience of his country proved that government policy making played a decisive role in achieving social development. 

The Democratic People’s Republic of Korea had long ago introduced popular policies consisting of comprehensive free and compulsory education, free health care, and free access to housing, thus ensuring that every person was entitled to the full enjoyment of their rights.  These policies had remained intact through natural disasters and political and economic pressure from outside forces hostile to the country.

BALI MONIAGA (Indonesia) said the international community had long recognized the links between the economic and social aspects of development, but, as the report before the Commission correctly pointed out, there was often a gap in priorities between the two.  For developing countries, the integration of economic and social development, as reflected at the World Summit for Social Development, remained of great importance, as did the goals for the eradication of poverty and hunger and improvements in the social development agenda.

The lack of financial resources was a principal restraint faced by the developing countries, he said.  They fully understood the need to undertake appropriate social investments and social protection schemes, but they lacked the means.  Therefore, his delegation eagerly looked forward to the Financing for Development Conference in Mexico and the World Summit for Sustainable Development in South Africa.  Those meetings offered an excellent opportunity to fully explore the need for concrete and innovative sources of financing for development and for meeting commitments made on official development assistance (ODA).  Continued and strengthened multilateral efforts would allow many developing countries to move forward and cope with the realities imposed by globalization.

Indonesia’s situation offered ample evidence of the negative effects that the forces of globalization could have on social and economic development policies, he said.  It was necessary for developed countries to intensify their technical assistance efforts.  International donors needed to be sensitive to local needs, cultures and circumstances and align their aid with national development goals.  Also, certain initiatives could not be left at the mercy of the market, but must be undertaken as a necessary ingredient of economic growth.  There was broad agreement that investment in education, including on-the-job training and other labour programmes, did lay the foundation for future growth.  The public sector should work in partnership with the private sector in achieving many of those goals, but it could not abrogate its responsibilities.  In allocating resources for the elimination of poverty, appropriate attention should be given to the root causes that bred discontent. 

DAVID LAWSON, of the Joint United Nations Programme on HIV/AIDS (UNAIDS) in New York, said that over 40 million people were living with HIV/AIDS, and that

30 million of those people lived in Africa.  In heavily affected countries, HIV/AIDS was the greatest challenge to social and economic development.  The spread of that pandemic in sub-Saharan Africa had already led to a reversal of hard-won development gains, particularly in health and education.  That had resulted in a decline of more than 15 years in life expectancy at birth in many countries of the region and the undermining of fragile social and economic institutions and infrastructure.  AIDS reduced economic growth rates and obstructed service delivery in both the public and private sectors, and had impoverished millions of families.

If societies were to move towards and eventually achieve sustainable and human-centred development, public policies must respond to HIV/AIDS as part of a broader aspiration to promote more positive forms of social, economic and

political development.  The socio-economic realities that prevailed within a country shaped the progression of the epidemic, as well as the response that was mounted within that particular country, he said.

The UNAIDS had long advocated for the integration of HIV/AIDS into national development policies, including poverty reduction strategy papers, and he was pleased to see that these views had found resonance within the Commission’s report.  He also mentioned important aspects of a national strategy for social development that included HIV/AIDS.  There was a need for ensuring that building and sustaining multisectoral responses to HIV/AIDS was an integrated part of all national poverty reduction and economic growth strategies.  It was also necessary to reduce the stigma and discrimination of HIV/AIDS by assuring the full participation of civil society and people living with HIV/AIDS in national discussions and planning for concerted action to reverse the epidemic. 

BRENT WILSON, of the International Organization of Employers, said that “integration” was a term that had come into common usage in recent times.  That was certainly the case when discussions turned to the questions of economic and social policy.  Increasingly, thinking was turning to policy integration as a means to respond to some of the challenges of globalization; that by integrating economic and social policy some of the negative consequences of globalization, as they were perceived, could be mitigated or even avoided.  He added that the process of globalization had gathered momentum, spurred on by technological changes in communications and transportation set within a liberalized international economic environment.  On balance, globalization had been a powerful force for economic betterment, he said.

There was also evidence which showed that participation in the global economy strengthened democracy and democratic institutions, something proven to further assist in national economic and social development.  The problem was not globalization per se, but rather that in some parts of the world there had not been enough globalization.  One aspect of globalization was the speed at which the rest of the world was affected by the slowing down of any other part of the world economy.  This reality had led to a new emphasis on the need for social safety nets to offset the worst aspects of poverty and to protect those affected by economic and structural change. 

He stressed that employers needed a regulatory framework that supported risk taking and investment.  It needed an environment where profits could be made and from which resources could become available for employment.  Only if an enterprise could operate efficiently would it be able to generate and maintain productive employment and contribute to economic growth, thereby giving governments the ability to respond to social concerns.  If however, those social concerns led to a policy response or were a precondition to the creation of a business, then employment creation would not happen.  Job creation and employment promotion were the ultimate social safety net, he said.

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