Commission for Social Development

Fortieth Session

5^th and 6^th Meetings (AM & PM)

SPEAKERS STRESS QUALITY OF LIFE AS KEY SOCIAL DEVELOPMENT GOAL IN CONCLUDING

COMMISSION'S DEBATE ON ECONOMIC, SOCIAL POLICY INTEGRATION

As the Commission for Social Development concluded its general discussion on the priority theme of the current session -– integration of social and economic policy -– in two meetings today, most speakers agreed that improved quality of life was one of the overarching goals of social development.

While the international community had agreed on important Millennium Development Goals, the question of the “mechanics of implementation” remained.  A key problem was the means of achieving integration from operational and financial standpoints.  The representative of Chile suggested new decisions be participatory and inclusive, based on social agreement, and not imposed by fiscal policies from above.

The representative of Japan stressed the need for “human centred development”.  That was particularly important in the provision of official development assistance (ODA) in loans supporting the development of socio-economic infrastructure, underpinning the process of economic growth.  Special attention should be devoted, however, to ensure that vested interests did not emerge in aid-receiving sectors and recipient countries.

Developing countries needed more financial and technical support to effectively implement economic policies that were responsive to social needs, said the representative of Malawi.  In that regard, the representative of Ghana said that the “one size fits all” structural adjustment programmes had failed to address investments needs, especially for the agricultural sector, said the representative of Ghana.  An ill-conceived liberalization process had created conditions for marginalization of the country’s economy in the context of globalization.

Today’s discussion included presentations by various United Nations system bodies and non-governmental organizations, in which each emphasized the important elements of the relation between the economic and social dimensions of development from the point of view of their respective competence.

The representative of the World Bank explained the difference between economic and social policy and the possibilities for integration.  Economic policy referred to economic growth, fiscal and external sustainability, trade and competitiveness and development and aid effectiveness.  Social policy included the areas of public policy which determined how a nation, a community or a society,

allocated its resources and protected and promoted members of that society individually and collectively.

The representative of the International Labour Organization noted that integrated approaches, which considered economic and non-economic factors simultaneously and equally, were likely to be more effective than those developed in isolation.  Such policies could reap the full benefits of policy complementarity -- simultaneous progress in achieving economic growth and reducing inequality.

Several of the speakers from non-governmental organizations expressed the concern that few governments appeared to be in a position to adopt policies giving priority to the art of living over economic interests.  It was also pointed out that when dealing with issues such as development, globalization, gender issues, poverty eradication and human rights, there was an overlap which not only made an integrated approach a possibility but a necessity. 

At the conclusion of the afternoon meeting, representatives of India, Egypt, Algeria, Syria, Spain (on behalf of the European Union), Benin, the United States and Argentina raised questions regarding the format of the outcome document to be approved by the Commission at the conclusion of the session and the procedural aspects of its elaboration.

Also addressing the Commission today were the representatives of Jamaica, Suriname, Switzerland, South Africa and Mali.

The following United Nations bodies also addressed the Commission this morning:  Department for Economic and Social Affairs, World Health Organization, and the United Nations Educational, Scientific and Cultural Organization. 

The International Council on Social Welfare, the Triglav Circle, the Gruppo Cerfe, the Congregation of the Sisters of the Good Shepherd, the Sisters of Loretta and the Society of Catholic Medical Missionaries also addressed the Commission this morning.

The Commission will meet again tomorrow at 10 a.m. to review relevant United Nations plans and programmes of action pertaining to the situation of social groups.

Background

Today, the Commission for Social Development met to conclude its general discussion on the priority theme of the fortieth session –- integration of social and economic policy.  Representatives of United Nations agencies and non-governmental organizations were also expected to address the Commission.  For background information on the session, see Press Release SOC/4589 of 6 February.

Statements

RUMI YABUKI (Japan) said that to enhance the sustainable development of social welfare, it was important to take into account both social and economic policy.  The maintenance of sustainable economic development constituted an essential requirement in promoting social development.  Therefore, Japan had used its official development assistance (ODA) loans to actively support the development of social and economic infrastructure that underpinned the process of economic growth.  In fact, the Asian Crisis of 1997-1998 had revealed just how vulnerable economic systems could be.  Based on this understanding, Japan had adhered to the principle of “human centred development” in providing ODA. 

Basic education and health played a critical role in poverty alleviation, she said.  Japan had therefore directed its support to achieve the goals of the “20/20 Initiative”; to assist developing countries striving to improve capacity in policy formulation and implementation and to comprehensively address poverty alleviation; to employ comprehensive and cross-sectoral approaches involving gender considerations, job training and employment creation; and to reduce regional disparities in a country.

Concerning ODA, Japan recommended the encouragement of the self-help efforts and initiatives of developing countries so they worked toward economic take-off.  Further, she suggested the utilization of effective and efficient aid projects that conformed to national conditions and needs, based on the proper evaluation of the development agendas and the needs and wishes of individual countries.  Special attention must be paid to ensure that vested interests did not emerge in aid-receiving sectors and recipient countries.  Finally, to enhance the impact of aid it was necessary to ensure that available resources of pertinent entities such as developing countries, donor countries, international organization, the private sector, and non-governmental organizations must be appropriately coordinated.

Speaking as an observer, CRISTIÁN MAQUIEIRA (Chile) said it was not for the first time that the international community was dealing with the subject of social and economic policy integration.  That question had already been addressed in Copenhagen and at the General Assembly special session to review that Summit’s outcome.  It was important to seek consensus on the matter and translate the decisions into concrete action.  The news of tomorrow would be today’s agreements at the United Nations.

Regarding regional efforts, he said the Economic Commission for Latin America and the Caribbean (ECLAC) had recently developed a novel vision of the macroeconomic development, emphasizing social protection as a major part of development.  Numerous recent studies demonstrated a certain gap between the international agreements and the level of their implementation, however.  What was needed was not only relief action, but also prevention.  It was important to incorporate productive social aspects into economic policies.  Redistribution of social investment generated positive growth by increasing the productive participation of an individual. 

Among the key questions to be asked, however, were:  what did integration mean? and how would it be achieved from an operational standpoint?  Certain proposals by ECLAC were important in that respect, for they were based on the need to hold a dialogue at the national level with the participation of all actors.  New decisions should be based on social agreement and should not be imposed by fiscal policies from above.  There was consensus that priorities of the macroeconomic policies included numerous social components, including sound trade and fiscal policies.  It was also important to set the priorities for the future, which would influence the situation in the countries by focusing on combating either inflation or unemployment.

O’NEIL FRANCIS (Jamaica) said the success of social policy initiatives was a key component of sustainable development.  Sustained economic growth rested on a productive human capital base and the inclusive participation of all economic agents in the development process.  In that context, public policy must tackle social exclusion, discrimination and injustice and must support the rights and well-being of vulnerable populations who faced constant risks.  Their contribution to development rested on ensuring their security from risk and their access to basic social services such as education, health care and adequate social protection.  Public spending on human capital was therefore central to the concept of social investment as a productive factor.

One of the most compelling challenges on the international agenda, the eradication of poverty, demonstrated in unequivocal terms the inherent connection between social and economic policy, he said.  The multidimensional nature of poverty, with structural determination in the economic and social realm provided clear evidence of the need for an integrated social and economic approach to development.  Poverty reduction required a convergence of policy imperatives with economic growth initiatives being managed to generate positive social effects. 

He said that without a fair and equitable international trading and financial system the conditions for social development in developing countries would be compromised and the ultimate aim of integrating social and economic policy inhibited.  In the case of small island States, such as those in the Caribbean with open economies, issues of trade were of paramount importance.  The socio-economic welfare of farmers and the rural population as a whole was greatly affected by unfavourable terms of trade for primary agricultural produce.  They were often confronted with steep drops in prices of their exports.  That underlined the imperative of action at the national level to design measures to mitigate the adverse effects of global economic changes and to provide protection for the most vulnerable.

Presentations by United Nations System Organizations

JOHN LANGMORE of the International Labour Organization said the traditional dichotomy between economic and social policies was an inadequate basis for solving the major social and economic problems in the current era of globalization.  In particular, it had contributed to the relative neglect of a rigorous preliminary analysis of the social impact of economic policies in such spheres as macroeconomic stabilization, structural adjustment and the transition to a market economy.  A narrow economic approach to macro- and micro-economic and structural policies had also resulted in many inferior economic and social outcomes, which included the “big bang” programmes of privatization and enterprise restructuring; labour market deregulation; reduced social protection; and market failures. 

In contrast, more integrated approaches, which considered economic and non-economic factors simultaneously and equally, were likely to be more effective, he continued.  A major advantage of such approaches was that they could reap the full benefits of policy complementarity.  Simultaneous progress in achieving economic growth, reducing inequality, improving socioeconomic security, strengthening basic rights and democratic governance, and developing sound institutions could all be made mutually supportive. 

The central goal of employment growth illustrated those points, he said, for it embodied most fully the integration of social and economic policy.  Growth of employment would contribute to increasing personal, social and national economic security, reducing waste and increasing efficiency.  At the same time, it would improve equity, reduce poverty and strengthen social integration.  Yet in most countries unemployment and under-employment were disastrously high.  Decent work for all who wanted it was a vital issue. 

He went on to say that the rate of growth of employment was in part a political choice and partially a question of priority and strength of commitment.  The first and principal requirement for finding a solution was adoption of the goal of full employment.  A national commitment to employment growth led automatically to inclusion of a national employment strategy in the national economic and social plans. 

Major elements needed for reaching that goal included job creation, entrepreneurship, increasing employability and freedom from discrimination, he said.  Small, local public works were an important means of employment creation.  Progressive tax policies contributed most to stimulating demand because of the higher propensity of lower income earners to consume.  Improvements in access to financial services could contribute to increasing domestic savings.  Also needed were equitable approaches to income determination through social dialogue.  It was vital that richer countries supported such policies with greatly increased aid, debt cancellation, increased market access for developing countries and more equitable participation in global governance. 

JACQUES BAUDOT, of the Department of Economic and Social Affairs, informed the Commission that a project, the “International Forum for Social Development” had been launched by the Department of Economic and Social Affairs, under the personal initiative of the Under-Secretary-General for Economic and Social Affairs, Nitin Desai.  The very first meeting of the forum had been held a few days ago.  Its purpose was to assist in the implementation of the recommendations of major United Nations conferences, such as the Copenhagen Social Summit, and the Millennium Declaration.  The main goal was to help developing countries achieve their social development goals in a globalized world, through initiatives such as technical assistance.  Various stakeholders had gathered in New York last week to discuss possible actions and initiatives with the aim of spreading the results as widely as possible.

Many of the observations or conclusions of the meeting had concerned both the spiritual and material well-being of society.  He said that economic growth was one of the means to the ultimate end of social development.  However, the financing of social development was more problematic today than it had been in recent years.  Governments had fewer resources to finance social development, even though the world was actually richer than it had ever been.  This depended largely on the prioritization of spending as well as the recent shift in wealth from the public to the private sector.   

During the meeting, the concept of globalization had been discussed at some length, along with the historic notion of individual freedom and freedom to show entrepreneurship -- the root of the market economy.  It had been observed that entrepreneurship had been inhibited by the concentration of economic and social power, he added.  The financing of social development rested on economic, political and moral foundations, while solidarity rested on an awareness of a common humanity and a common destiny. 

The economic argument could not be set aside, but it was important to give more visibility to the moral argument, he said.  The meeting had concluded that traditional methods of financing for social developments must remain, such as ODA.  Those methods had demonstrated their value.  However, it would also be useful to look into newer and more innovative approaches, without jeopardizing the existence of the more traditional methods.  Innovative measures, such as the Tobin tax were important, but this did not mean that other obligations could be set aside. 

JOHN MARTIN of the World Health Organization (WHO) addressed the issue of health as a productive factor, saying that the key question was “What do we do next?”  As the Millennium Development Goals provided new focus for action to reduce poverty, there was also a growing understanding that those goals could not be achieved without changes in policy and a steep increase in resources.  For WHO, "Copenhagen + Five" had become an important milestone in advancing the place of health in human development, based on the realization that good health was a precious asset, particularly for the poor.  Specifically, the conference had called for health policy to be used as an instrument for poverty reduction.  In so doing, it challenged the longstanding “mindset”, which equated health with the delivery of basic services –- a safety net approach, rather than a springboard for increasing the capabilities of the poor.

He said there was now convincing evidence that good health contributed to economic growth and poverty reduction.  A recent report presented by the Commission on Macroeconomics and Health presented solid scientific evidence that increased spending on health made sound economic sense.  It also argued that present spending levels were grossly inadequate.  It demonstrated, in particular, that at the household level, injury and premature death of the breadwinners could propel entire households into poverty. 

A high proportion of the disease burden in low-income countries could be attributed to a small number of diseases and conditions, which included HIV/AIDS, TB, childhood communicable diseases and malnutrition, he said.  While effective interventions existed that could prevent those conditions, they were not reaching the poor to the extent that was needed.  A significant reason for that failure was persistent and longstanding under-investment in health and health systems.  If the resource gap could be filled, some 8 million lives per year could be saved by 2010.

Health was determined by a range of sectors, all of which required adequate financing if improved health outcomes for poor people were to be achieved, he continued.   The WHO saw that message as a demand for financial realism.  There were some encouraging signs of political commitment to increased funding for health.  The Global Fund to fight AIDS, TB and malaria was now a reality.  The international community was also learning important practical lessons about public-private partnerships, such as the Global Alliance for Vaccines and Immunization.  At the same time, the Review of the Poverty Reduction and Growth Facility (PRGF) was receiving unprecedented support from a wide range of development stakeholders.  On the negative side, however, a recent WHO review had revealed that countries were failing to reflect the link between good health and economic growth in national poverty reduction strategies.     

JUDITH EDSTROM, of the World Bank, said the integration of economic and social policy was important to the World Bank.  There was a conventional view on what was involved in economic policy -- economic growth, fiscal and external sustainability, trade and competitiveness and development and aid effectiveness.  Social policy included the areas of public policy which determined how a nation, a community or a society, allocated its resources and protected and promoted members of that society individually and collectively.  It also included fiscal, regulatory or legislative policies in the sense that social policy related to social services provision, including health, education and social security administration, as well as areas of policy covering tax, labour, social protection, race, disability, age, gender, ethnicity, and sexual preferences. 

She quoted the Secretary-General’s report to the Commission and agreed that “there was no serious doubt that the ultimate ends of economic policy were in the broadest sense ‘social’”.  She added that there had been significant changes in World Bank policies, particularly in the areas of economic reform, social services, social protection and public sector reform.  There had been a move from the income indicator of poverty to non-income indicators of poverty.  Other factors considered were opportunities in terms of social inclusion, empowerment and security.  The World Bank was in the process of strengthening its poverty and social impact analysis.  This was the analysis of intended and unintended consequences of policy intervention on the well-being of different social groups, with a special focus on the vulnerable and poor.  It also applied to macroeconomic, structural and sectoral reforms and emphasized maximizing benefits as well as minimizing adverse impacts.

Concerning security, she said the World Bank was engaged in conflict analysis, conflict prevention, mitigation through empowerment through the building of social capital, the establishment of community systems of social risk management and natural disaster management.  The World Bank was working toward a social development strategy which meant development that was equitable, socially inclusive and therefore sustainable.  It would empower poor people to participate effectively in development processes and promoted institutions that were responsive, accountable and inclusive. 

Mr. KYAZZE of United Nations Educational, Scientific and Cultural Organization (UNESCO) said that almost seven years after Copenhagen, little seemed to have changed in the approach to development macroeconomic values, which still prevailed over macro-social factors.  Current patterns of globalization had contributed to a sense of insecurity for many.  Growing interdependence of nationals meant economic shocks were transmitted across borders.  The lengthy discussion on the opportunities and challenges of globalization failed to hide that anxiety and frustration, as had become evident from the extreme forms of resistance displayed in Seattle and Washington, for example.   

Overall, there was a need to agree on universally accepted mechanisms to ensure equitable participation in globalization and its management, he continued.  By virtue of its intellectual and ethical mandates, UNESCO was called upon to advocate the moral and political imperative of a more humanized globalization, as was done through its Management of Social Transformations Programme. 

Today, extreme poverty affected 1.2 billion persons, of which three quarters lived and worked in rural areas.  Extreme poverty was a violation of human rights, notably the rights to a decent standard of living, adequate housing, education, work, health, protection of the family, privacy, adequate food and even the right to life.  Educational, cultural and science-related dimensions of poverty and anti-poverty policies were often neglected at the real-life level, even though they had prominence in the commitments made in Copenhagen and elsewhere.  The UNESCO had placed poverty eradication as a cross-cutting theme for its activities.  It sought to contribute to a better understanding of such human-centred concepts as human capabilities, vulnerability and dignity.  The Organization’s integrated, intersectoral approach involved going beyond policies and measures which addressed poverty only sectorally.  The efforts to eradicate poverty and achieve development needed to be supported by a combination of economic and social measures.

In general, UNESCO’s actions for development and poverty eradication were centred on human rights as a guiding principle for development, capacity-building and human resource development through education, he said.  Also important were democratic and participatory governance, incorporation of cultural factors in development strategies, environmental protection and harnessing science and technology for development.  To sum up, development was to aim for a “triple win”: economic efficiency, social equity and environmental protection.

He said that public responsibility for equality of opportunity and minimal levels of quality in education services remained a basic principle of any long-term solution.  The Education for All movement placed formal and non-formal basic education as the highest priority.  Access to basic social services, notably education and health, should be at the very heart of any sound policy to achieve social development.  That required far-sighted fiscal policies that took into account the defining role of those services.

The international community needed to take on the responsibility of developing global rules and regulations to deal with globalization, he said.  Those rules should put the forces of the world market in their proper social and ecological place.  Globalization should become a tool for enhancing social and economic progress so that all countries could use it to their benefit.  The quality of international economic trends and arrangements ought to be assessed in the light of the distribution of opportunities they opened and benefits they yielded.

Discussion Session

A speaker commented that it was important to ask what exactly the development strategy was and what its priorities were. It was becoming clear what elements needed to be taken into account when determining such strategies: education, job creation, health, fiscal policies and so on.  However, it was necessary to determine the particular ways of improving the employment situation, for example.  The International Forum for Social Development represented a valuable initiative in that respect. 

What emerged from the discussion was the lack of an organizing principle for the integration of the social and economic aspects, a speaker said.  It was important to address that question.  How was the international community going to finance the new initiatives?

Several speakers also emphasized the importance of women’s education, for in many developing countries, it represented a serious problem.  It was also important to remember that human rights education was a key to development, a delegate said. 

Questions were also asked regarding the feasibility of the Millennium goals.  Were they realistic?  Could they be implemented?

Responding to comments from the floor, Mr. LANGMORE said the organizing principle had been articulated in yesterday’s discussion:  improvement of the quality of life.  Improvements in education, health care and the job situation were linked to that premise.  On the Millennium goals, it was difficult to give a straightforward answer, for along with promising international developments, many challenges remained.

Ms. ELDSTROM stressed the importance of national dialogue to determine the strategy and priorities for the future.  As for social development financing, at least part of that question referred to the international community.  Regarding the Millennium goals, she said they remained challenging, but systematic efforts were being made by various international agencies to tackle those cross-cutting objectives.  Some tangible and measurable programmes were under way.

Mr. BAUDOT said that with the common views established, it was important to increase the margin of autonomy of individual States in implementing their policies.  The perception of development was being revised, and it was important to avoid a single simplistic solution.  It was important that a common direction was emerging.  International financial institutions were not the only ones responsible for social development -– it was important not to underestimate the role of all other actors, including the private sector and the national governments.

Mr. KYAZZE said it was important for all actors involved in social issues to receive assistance, and ODA was important in that regard.  As for human rights education, it was a basic component of UNESCO’s efforts. 

Agreeing that it was necessary to avoid a simplistic approach, Mr. MARTIN added that at the same time, it was also important to seek social outcomes with guidance from the Millennium Development Goals.  Coherence between different policies was of great importance, whether they concerned environmental, educational or health sectors.   Also important were means of assessing the achievements. 

As for the Millennium goals, he said some of them could not be achieved without political will and an increase in resources.  The health objectives, for example, could not be achieved without an increase in expenditure for medicines and “pro-poor” initiatives at the national level.  Huge efforts were needed to address the needs of rural populations.

Regarding human rights education, the Commission’s Chairperson, FAITH INNERARITY (Jamaica) said that socialization in the home was one of its most important tools, for it was in the family that attitudes toward racism and discrimination, for example, emerged. 

Summarizing the discussion, she agreed that the quality of life was one of the overarching goals of social development.  However, the question of “mechanics of implementation” remained.  It was important to give a voice to the poor in moving from the conceptual to the practical realm.  Ideas must be translated into concrete action for all goals to be attained.

Non-governmental Organization Segment

BEVERLY SUTHERLAND-LEWIS, of the International Council on Social Welfare, said that after having studied the report of the Secretary-General, it was clear that it reflected the same issues faced by non-governmental organizations (NGOs) on social development.  Governments must provide the framework for social and economic integration; however often they were unable to do so for internal and external reasons.  Government Ministers in the developing world provided individual budgets and did not cooperate enough to achieve an integrated approach to problems.  Another weakness of governments was the lack of capacity to do adequate research for their development strategies, mostly due to lack of resources.  In the developing world there were stagnating flows in official development assistance and heavy foreign debts, which hindered progress.  Part of the work of her organization was a proposed international poverty pact that linked social development goals to resource commitments.

BARBARA BAUDOT, of the Triglav Circle, said that the capacity to attain meaning, love, and wisdom essential for coping with life’s hardships could not be nurtured by economic progress predicated on profit seeking.  There were growing misgivings about today’s form of globalization and the quality of life it generated.  She stressed that intellectual and other non-material factors, although not amenable to quantifiable measurement, must figure in a comprehensive assessment of society’s progress in its search for higher and more humane living standards.  Unfortunately, few governments appeared to be in a position to adopt countervailing policies giving priority to the art of living over economic interests.  The challenge was to generate an acceptable and sustainable vision of economic, social and scientific progress, shepherded by beliefs that might defy rational calculation, but be able to generate an inexorable advance toward a higher status of knowledge, culture and moral estate.  

GIOVANNA DECLICH, of the Gruppo Cerfe, emphasized that in today’s society and discussion there had been a great change. The types of documents and the current discussion proved that there had been a change in attitude towards integration between economic and social policies.  However, it was necessary to identify solutions to today’s great world problems.  Lessons had been learned, including that there could be no development without active partners both from the north and the south.  It was important to strengthen local leadership in that regard.  There was also a role for the middle class in developing countries.  Convergence between economic and social policies was also extremely pertinent when talking about human resources, and there was a need for an integrated approach.  She called for preventative measures to reduce poverty and the need for unity between nations. 

MS. NOLAN, of the Congregation of the Sisters of the Good Shepherd, said that she wholeheartedly supported integration between social and economic policies.  Development, globalization, gender issues, poverty eradication and human rights overlapped and required some kind of integrated approach.  This could be done by simple and creative processes, providing information sharing and interactive dialogue.  The Commission must communicate its message to the Commission on the Status of Women and the Financing for Development Conference, so that the word could be spread.  Through such integration, better partnerships could be established.  She welcomed creative thinking on this matter, not only on the policy levels but within the very bodies that created those policies. 

PHILO MORRIS, of the Society of Catholic Medical Missionaries, said that in the area of debt, the Heavily Indebted Poor Countries (HIPC) initiative was not enough.  The cancellation of debt was needed so that the Millennium Development goals could be reached.  Also, the fact remained that 70 per cent of the world’s poor were women, and they were vulnerable due to their low economic and social status.  Human rights needed to be respected in all countries.  Governments needed to have a policy of paying their male and female employees according to the work they were carrying out, and reducing women’s poverty was a necessity.  There were 100 million poor people that required housing and it was necessary to give them a roof over their heads.  The construction of houses would provide job opportunities in developing countries. 

PAT KENOYER, of the Sisters of Loretta, said the development of the individual could not occur so long as human and economic capital were drained for the purposes of armed conflict.  That was a waste of capital and human ingenuity that could otherwise be used to address poverty.  She hoped the Commission would speak on the role of the military, which destroyed the human capital so desperately needed for development, trust and transparency. 

MAVIS KUSORGBOR (Ghana) said that although economic growth and development formed the basis of any national economic agenda, their possible implications for the social sector had to be fully recognized by policymakers.  In the past two decades, many developing countries, including Ghana, had rigorously implemented structural adjustment programmes to achieve economic growth and development.  In Ghana, however, following the implementation of such a programme, the lofty goals remained unmet.  Inadequate attention to the social impact of adjustment had reduced the effectiveness of his Government in tackling the problems of mass unemployment, low incomes and reduced access to basic social services.

The “one size fits all” structural adjustment programmes failed to address investments needs, especially for the agricultural sector, she said.  An ill-conceived liberalization process had created conditions for marginalization of the country’s economy in the context of globalization.  To cushion the social sector from economic shocks, the Government had initiated programmes offering training services to workers and providing micro-credit for self-employed ventures in the country.  A poverty eradication programme was introduced in Ghana in the 1990s, and a common fund was set up to address urgent social concerns at the district level.  About 10 per cent of the national budget was committed annually to that fund.  In 2000, some 17.4 per cent of the total governmental expenditure were allocated for the provision of basic services for the poor and free primary health

care for pregnant women, infants and the aged.  Efforts were also made to improve the education in the country.

She said new ways must be sought to integrate social and economic policy to achieve development and promote social stability.  Ghana’s experience showed that a poverty reduction strategy provided the basis for social development.  Such a strategy should integrate the issues of debt relief, market access, capacity-building and social safety nets with adequate resource flows from both public and private sources.  It was her hope that together with the multinational financial institutions, the private sector and civil society, countries could forge the requisite partnership to create a conducive environment for the attainment of social development goals.

IRMA LOEMBAN TOBING-KLEIN (Suriname) said the international community owed it to its peoples to ensure them that in the year 2002, the urgent need for the doubling of ODA would be met. 

Suriname had adopted a development plan which included a national development strategy for sustainable production and a strategy for poverty reduction.  Her Government believed that the availability of natural resources, well-developed human resources and trade were important conditions for development.  The plan therefore included provisions, checks and balances to ensure that development was sustainable and that the natural and human resources were used in a balanced way.  Equally important were open and honest governance with respect for law and order and human rights and the establishment of a corruption-free society.

The national development strategy implied the creation of opportunities for women, youth and older persons; the encouragement of participation; and the improvement of social care.  The specific target groups were youth, underprivileged women, women trying to establish their own private business, persons with disabilities, workers with incomes below the official poverty line, migrants and older persons. 

Speaking as an observer, ISAAC C. LAMBA (Malawi) said he believed that social and economic development could only be meaningful if no segment of society was left behind, or indeed rendered unable to benefit from the development process.  Macroeconomic policies that were blind to the need of certain vulnerable groups must go back to the drawing board to ensure that the needs of the society at large were kept in focus.  Poverty alleviation was the centre of Malawi’s development strategy, and his Government had recently completed its poverty reduction strategy paper.  Among the many important issues being addressed was the food security situation and the economic empowerment of various segments of the society. 

Education was a pillar in any socio-economic development agenda.  Good education required huge financial input, he said.  He added that Malawi’s health indicators were among the worst in the world, as life expectancy at birth was reported to have dropped from 44 to 39 years due to the HIV/AIDS epidemic.  HIV/AIDS was now the leading cause of death in the most productive age group.  Out of a population of 11 million, about 1 million were living with HIV/AIDS.  The pandemic continued to spread unabated and had seriously undermined socio-economic development gains.  Developing countries needed more financial and technical support to effectively implement economic policies that were responsive to the social needs of the poor, he concluded. 

Speaking as an observer, STEFAN BRUPBACHER (Switzerland) said the priority theme of the session had influenced recent policy changes in such organizations as the World Bank, the IMF and the ILO.  In that respect, he drew the Commission’s attention to the ILO decision to establish a high-level commission on the social dimension of globalization, which would, hopefully, tackle many of the issues raised.

His delegation welcomed the attempts to find a balance between social and economic policies, he said.  However, the document before the Commission was overly negative on the impact of liberal economic policy.  The report overlooked the dire experiences of the working and middle classes caused by unsustainable public spending and import substitution programmes of the 1970s and 80s.  It was government bankruptcies, misallocation of resources, high inflation and huge unemployment that had paved the way for neo-liberal economics.  The report also put too much emphasis on the conflict between social and economic policies and overlooked the potential for “win-win situations”.

Regarding the role of liberalization, he said that countries opening up to trade had higher growth rates, and that, in turn, was a precondition for development.  Not surprisingly, at the fourth ministerial conference of the World Trade Organization, the developing countries had requested more access to the developed countries’ markets.  It was also the primary duty of Governments to provide societies with an environment conducive to economic growth and fair distribution of benefits.  Such a framework included sound economic policies assuring low inflation and fiscal balance.  It also included education, social security systems and infrastructure.  Here, open economies and social spending depended on each other. 

Such social expenditures as education would facilitate market access for the people, he said, but it was also necessary to add competition policy to the list of priority issues, for monopolies punished consumers through higher prices and excluded new and more efficient enterprises.  That was again an area where economic and social policies did concur and not compete.  He also stressed the importance of central banks’ independence and measures directed against corruption.  Instead of moving back to the policies of the 1970s and 80s, it was important to leave behind the ideological battles of the past century and build “country-tailored” economic and social policies for the new century.

JEANETTE NDHLOVU (South Africa) said that at the center of South Africa’s national goal of building a caring and people-centred society was the urgent need to eradicate poverty and underdevelopment.  South Africa was still facing several challenges, as there were still communities divided along poverty lines.  Political will, partnerships and practical actions must be the guiding principles in the struggle for a better world for all, a world free of dehumanizing poverty and underdevelopment.

The framework for the integration of economic and social policy must also address the relationship between labour market policy and welfare policies that provided a basic social safety net for the unemployed and marginalized, she said.  If labour market integration did not materialize, the social security system must

still be structured to ensure that social integration was promoted as a goal of social security. 

She added that through macroeconomic policies, governments could create an environment that facilitated economic growth and the reduction of poverty and inequality.  Economic growth was crucial for the reduction of poverty and could contribute to the reduction of inequalities.  Policies aimed at achieving higher economic growth rates and those policies aimed at reducing poverty and inequality must reinforce each other. 

Speaking as an observer, DIAKITE FATOUMATA N’DIAYE, Minister for Social Development and Solidarity with the Elderly of Mali, said the improvement of the quality of life of all people should be the ultimate goal of social policies.  The developing world had lived through 20 years of structural adjustment programmes which had aggravated social inequalities and increased poverty.  It was gratifying that at the time of globalization, the international community had decided to address those problems.

Mali had initiated a strategy for poverty alleviation and worked out a medium-term plan to combat poverty, which had been formulated with broad participation at all levels, she said.  The World Bank and the IMF had approved such an approach.  Specific action for poverty prevention supported basic initiatives and projects for micro-finance, training and education.  The Government, with the help of voluntary contributions from the private sector, had created a bank of solidarity and a fund for national solidarity.  Transparency and programmes addressing the needs of the rural population were among the priorities. A large percentage of the budget was devoted to education and basic social services. 

Summarizing the three days of discussions on the priority theme of the session, the Commission’s Chairperson said that while disagreeing regarding the breadth and depth of actions required, all had agreed that there was a need for better integration of social policies.  She hoped that the final document to be adopted by the Commission would reflect the wide range of views expressed during the debate.

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