PRESS CONFERENCE LAUNCHING REPORT ON WORLD SOCIAL SITUATION

PRESS CONFERENCE LAUNCHING REPORT ON WORLD SOCIAL SITUATION

Launching the report “World Social Situation 2005:  The Inequality Predicament” at a Headquarters press conference today, Under-Secretary-General for Economic and Social Affairs José Antonio Ocampo pointed to the rise of the informal sector and global growth in unemployment as among that report’s most significant findings.

Ten years after the 1995 World Summit on Social Development, and half a century from the launching of the first report, this year’s report was especially important, he said.  Concentrating on the theme of the Copenhagen Declaration -- “ Opportunity for All” -- the report defined equality not only in terms of economic, but also social and political equality.  In that regard, inequality included economic, as well as social inequality, including access to basic services such as health, education and income protection.  It also included inequality in political terms, namely access to power and decision-making.

The 2005 report also indicated that many forms of inequality had increased in the last 25 years, he said.  One of the most pervasive forms of inequality was gender inequality which had decreased in area of access to education, but inequality in employment and the political arena had improved only slightly or not at all.  Some 60 per cent of informal workers were women, which, given the fact that fewer women participated in the labour market than men, was a very high proportion. 

Highlighting some of the report’s most significant findings, he said there had been a growth in the informal economy.  The trend towards informality had not only increased in the developing countries, particularly the poorest of the developing countries, but also in a large number of other countries.  Unemployment was higher for the poor in all countries and had worsened in several parts of the developing world.  It was a particularly severe and growing issue in Latin America and the Caribbean.  And while access to basic services such as education, health and social protection had shown some improvement, the gaps were large and, in some cases, growing.

Income inequality had been increasing in a large number of countries, both industrial and developing, he added.  Some of the report’s most striking figures reflected that trend.  For example, since the 1980s, income inequality had increased in 48 out of 73 countries and improvements had been seen in only nine countries.  Income inequality was a widespread trend in the developing world.  The gap between the income of the highly developed countries and the poorest countries had also increased.  With the exception of East and South Asia, many parts of the developing world had experienced a wider gap in terms of income inequality.

The report also reflected some positive trends, he said.  The worldwide gender movement had put the issue of gender at the centre of world policy, as well as the policies of many industrialized countries.  Civil society engagement had also been a positive trend in terms of raising awareness of the issue of inequality.  Official development assistance, which had been declining, had turned around since Monterrey, with several commitments this year to increase assistance. 

The emphasis on poverty in World Bank and International Monetary Fund programmes was also an important trend, he added.  There had also been a rise in social spending in certain parts of the world.

At the national level, he noted that the report called for integrated strategies and polices for poverty eradication, which meant nothing less than the major implementation of the commitments made at the various United Nations conferences, including the 1995 Copenhagen Summit.  Given the rise in unemployment and informality around the world, the question of how to address the unemployment remained central to the issue of global inequalities.

Responding to a question on youth unemployment, he noted that nearly half of the world’s unemployed were young people.  The issue of unemployment and employment opportunities for young people was essential to the global agenda.

On the issue of inequality and violence, he said that, while the report made several connections in that regard, it also recognized that, while the incidence of internal conflict was higher in poor countries, violence was not totally determined by inequality.  Regarding terrorism, it was difficult to tie that issue too closely with the issue of inequality, as it was a much more multidimensional question. 

While the report addressed general global trends, how did it reflect such issues as the tsunami or the Zimbabwe house evictions? a correspondent asked. 

Responding, Mr. Ocampo said one of the issues facing poor people concerned unexpected events, such as natural disasters and war.  Creating forms of protection for the poor against unexpected events was a serious issue.  The response to the tsunami at the national and even individual level had been a positive trend in terms of raising international support for the poor.  What was missing, however, was a broader social protection system against risk.

Responding to a question on intergenerational disparities, Johan Schölvink, Director of the Division for Social Policy and Development noted that the inequality predicament made the transmission of poverty between generations highly likely.  In that regard, the report stressed the need to break the vicious circle of intergenerational poverty transmission.

Asked whether globalization had played a role in widening the gap between rich and poor, Mr. Ocampo said it was a complex issue.  While some inequalities pre-dated the current globalization trend, there were clear signs that some problems had taken placed during the phase known as globalization.  Some global trends had generated global problems.  What was happening with labour markets could be associated with global trends.  The increasing informality of the labour market might also be associated with globalization. 

Asked whether poverty was transmitted between countries and within regions, he said there had been some cases in which the transition to market economies had generated a significant rise in inequalities in some parts of the world. 

Responding to a question on Brazil’s efforts to reduce poverty, Mr. Ocampo noted that Brazil’s income inequality was the worst in Latin America.  While income inequality had remained constant in Brazil, there had been improvements in other areas, especially in terms of educational levels.  While Brazil used to have one of the worst indicators in terms of access to education, it now had that of an average Latin American country.  Brazil was also a leader in the fight against HIV/AIDS.

In terms of ethnic issues, the major concern had to do with Afro descendents, he said.  Although that had been the focus of some action, the gaps remained very large.  Because Brazil’s indigenous communities were quite small, that was less an issue than in other Latin American countries.

To what extent was the rhetoric of people such as Venezuelan President Chavez a serious expression of social and economic disgruntlement in Latin America? a correspondent asked.

Responding, Mr. Ocampo said it was difficult to judge.  Reports indicated that, while Latin Americans continued to be supporters of democracy, they were dissatisfied with its results.  A poll conducted by a Chilean firm reflected a sharp change in the Latin American public opinion in terms of privatization or market development.  Whether you were a right- or left-wing politician in Latin America, no one these days ran on the ticket of structural reforms.

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