Commission for Social Development

Forty-seventh Session

10^th Meeting (AM)

CALL FOR ‘NEW WORLD ECONOMIC ORDER’ AS COMMISSION FOR SOCIAL DEVELOPMENT CONCLUDES

GENERAL DISCUSSION BY TAKING UP IMPACT OF MULTIPLE GLOBAL CRISES

Concluding its general discussion today, the Commission for Social Development examined the impact of the current multiple global crises, particularly the sharp worldwide economic decline, on social development, as delegates urged Governments to sustain commitments to meet their social obligations to citizens.

The Russian Federation’s representative said socio-economic development remained a priority for his country and the crises had stimulated its undiminished commitment to fulfil the social contract with its citizens under any and all circumstances.  The global financial-economic crisis was a grim reality, unprecedented in its scope and dimension, but it had not been unexpected, having developed over many decades and left whole regions on the periphery of the economic process.  The crisis was clear evidence of the fallibility of the market model of economic development.

Noting that the social consequences of the crises had been the most serious, affecting the overwhelming majority of countries, he said it was not repairs that were needed but a radical overhaul of the overall system of global management.  A new system should be based on the ability of major financial centres to prevent a “monopolar” world from devolving into chaos.  A more just and appropriate world financial architecture was needed, accompanied by a wholesale reorganization of existing economic regulations.  Because the crisis would not be solved any time soon, preparations must be made for the post-crisis world.

Venezuela’s representative, describing the environmental, energy, food, financial and economic crises as authentic evidence of the failure of the global capitalist system, called for “deep-seeded transformation” and a new global order based on solidarity and social justice.  The disastrous present system, based on greed, fed on exploitation, misery, famine and the deaths of millions.  The multiple crises were swiftly eroding economic and social development, with the world’s poor as the main victims.  Those were signs of the end of an era; the global capitalist system, based on exploitation rather than development, had fallen.

Also seriously concerned about the severe impact of the global crises on social development was Italy’s representative, who said the country’s Government had called urgently for policies that could guarantee minimum income levels.  The worst crisis since the Great Depression required a systemic global response based on better rules and regulations, reform of the world’s major financial institutions and better international coordination in support of the world economy.  Every effort should be made towards a coordinated approach that would sustain consumption and investment.  It must involve emerging economies as they would be especially affected and rightfully wished to have their voices heard.

As the Commission considered programme questions and other matters, it heard Elsa Stamatopoulou, Acting Director of Social Policy and Development in the Department of Economic and Social Affairs, introduce the agenda item “Programme performance and implementation for the biennium 2006-2007”, noting that the relevant informal paper contained an extract from the Secretary-General’s report on Programme Performance of the United Nations for the biennium 2006-2007 (document A/63/70).

The Commission also heard from Thandika Mkandawire, Director of the United Nations Research Institute for Social Development, who presented the highlights of that body’s work in 2007-2008 and introduced its report (document E/CN.5/2009/8), saying that much of the Institute’s research, both before and after the World Summit for Social Development, had focused on the social integration dimension of development.

Following that presentation, the Commission nominated four candidates to its Board, as follows:  Bina Agarwal, Yesim Arat, Evelina Dagnino and Julia Szalai.  It re-nominated a fifth candidate, Christian Comeliau, whose term expires on 30 June and who was eligible for re-nomination for a further period of two years, until 30 June 2011.  (The candidates’ biographical information can be found in an annex to document E/CN.5/2009/7.)

Other speakers in today’s meeting were the representatives of Bangladesh, Italy, Belarus, United Arab Emirates, Guyana and Egypt.

The Commission will meet again at 10 a.m. on Thursday, 12 February, to hear the introduction of draft proposals.

Background

The Commission for Social Development met this morning to conclude its general discussion on the impact of the global crises on social development, and to take up programme questions and other matters, including the United Nations Research Institute for Social Development (UNRISD).

General Discussion

NIKOLAI RAKOVSKIY ( Russian Federation) said the global financial-economic crisis had become a grim reality everywhere, as had its unimagined, unprecedented scope and universal dimension.  However, the crisis had not come out of the blue, but had developed over many decades as the unipolar economic system had left whole regions on the periphery of the economic process.  The crisis had been growing for a long time and had ultimately led to a serious breakdown.  That provided clear evidence of the fallibility of the market model of economic development, which entailed the most serious consequences on a planetary scale.  The social consequences had been the most serious, affecting the overwhelming majority of countries.  Those effects were the result of over-reliance on market mechanisms and globalization, the distortions of which had stimulated growth and provided advantages for some to the detriment of others.

Equally dangerous was excessive Government intervention and indulgence in regulatory protection, which risked concentrating surplus assets in the hands of the State and dampening entrepreneurship, he warned.  It was not repairs that were needed but a radical overhaul of the overall system of global management.  A new system should be based on the ability of major financial centres to prevent a “monopolar” world from devolving into chaos.  There was a need for a more just and more appropriate world financial architecture, accompanied by a wholesale reorganization of existing economic regulations.  The present crisis had forced the Russian Federation to take urgent measures to stabilize its economy, but it had in no way reduced the need to preserve the economic and social rights of its people.  Socio-economic development remained a priority and the crisis had stimulated the country’s undiminished commitment to meeting its social obligations to its citizens -– under any and all circumstances.  Because the crisis would not be solved any time soon, preparations must be made for the “post-crisis” world.

TAREQ MOHAMMED ARIFUL ISLAM ( Bangladesh) said that exports, remittances, foreign direct investment (FDI) and official development assistance (ODA) comprised the backbone of many developing economies, adding that access to credit markets was also critically important.  Any adverse fallout in those areas resulting from the current financial crisis would likely be a big blow.  Bangladesh had so far cushioned the shocks, but, like other developing countries, it was not immune to activity on the international markets and in the economies of leading countries because more than half of its gross domestic product was connected to the external sector.  The effects of the financial crisis were already evident.

Noting a slide in his country’s shipments of primary and agriculture products, he said it was dragging down export growth.  The Bangladesh stock market was suffering following the Wall Street crash and the impact on tourism had started.  Bangladeshi workers were reportedly losing their jobs abroad, leading to reduced remittances.  FDI flows, crucial to the country’s ability to achieve its development goals, were likely to slow considerably, and the same could occur with foreign aid since developed countries, already far below their commitments on development financing, may be more constrained from providing ODA.  The Government would form a high-powered panel to combat possible domestic economic fallout from the global meltdown.  In addition to economic bailout policy planning and national initiatives, the international community should make concerted efforts to address the adverse effects of the global crises on social development, particularly in the most vulnerable least developed countries.

ROBERTO STORACI ( Italy) said his Government was seriously concerned about the severe impact of the current global crisis on social development, which urgently called for policies that could guarantee minimum income levels.  The worst crisis since the Great Depression required a systemic global response based on better rules and regulations, reform of the world’s major financial institutions and better international coordination in supporting the world economy.  Every effort should be made to push for a coordinated approach that could sustain the consumption and investment needed to promote growth and newly stimulate trade and investments, thus fostering social development.

At the same time, there was a need to promote a multilateral perspective in order to avoid closure based on self-sufficiency, he said, adding that his country had already taken action, through its Group of Eight (G-8) presidency, to put social issues and employment at the centre of the international debate on the crisis.  Italy would dedicate the March G-8 ministerial meeting on labour to related issues, and had extended invitations to a group of important non-G-8 States.  In the long-term, the global crisis might in fact lead to a few promising developments.  For example, the current difficulties could encourage the creation of a new, more modern and effective social pact aimed at reducing disparities, thereby better providing for social needs and environmental sustainability, while ensuring wealth creation, which was the prerequisite of any redistribution policy.

Meanwhile, excesses and imbalances should be questioned, he stressed, calling also for a greater sensitivity to healthy, non-invasive control of a few sectors.  Governments must be proactive and ingenious, while striving to enhance enterprise and allow more efficient and integrated participation by workers, including as protagonists of consumption.  Emerging economies active in the world economy should be fully involved, as they would be especially affected, and thus rightfully wished their voices to be heard.  The global ability to react, the wisdom of decisions made and success in balancing the various needs of expansion and development would ultimately be the key to global recovery and the solution to the current crisis.

IRINA VELICHKO ( Belarus), pointing out that the financial crisis was having a devastating impact worldwide, noted that many developing countries were in no position to provide their citizens with such basic necessities as food, medicine and decent living conditions.  While States were responsible for their own development, most developing countries could not follow the example of their developed counterparts because they lacked the resources to allocate social and financial support.  Belarus welcomed the steps taken by the United Nations Development Programme (UNDP), the World Bank and the International Monetary Fund (IMF) to provide States with financial assistance to deal with the crisis.

New and innovative ideas were needed to address emergency situations, she said, stressing the need to do everything possible to help people in vulnerable countries, particularly in Africa, to gain access to food, energy and medicine.  New technologies could be used to save many lives, and developing them should override profit motives.  The global community should focus on providing vital needs for a fair price.  It was also important to balance the development of, and adequate access to, vital products through the protection of intellectual property rights.  The time had come to give serious thought to the creation, under United Nations auspices, of effective machinery to ensure global access to vital technologies, which should be viewed as common property.

ABDULLAH RASHID AL-SUWAIDI, Under Secretary, Ministry of Social Affairs, United Arab Emirates, said his country attached great importance to the development of all segments of society and paid particular attention to special groups such as women, children and youth, the elderly and the disabled.  The United Arab Emirates had begun a new era by launching the Federal Government Strategy for 2008-2010 aimed at achieving comprehensive sustainable development and moving from a concept of social care to one of social development by expanding cooperation and including all social categories and sectors in the process.  The Social Affairs Ministry had been established as one of the specialized institutions to translate that strategy into action.

United Arab Emirates society still held dear the values of the extended family, which reinforced respect and appreciation for the elderly, he said.  To underpin that, the Government had laid the legal foundation to ensure a dignified life for the elderly within their families.  The social security law provided them with social and financial aid, health care and training, while the law on personal status obligated their children also to ensure financial support.  The Global Conference on Old Age, organized and hosted by the Government of the United Arab Emirates in April 2008, had resulted in important recommendations, including the call for an international covenant ensuring the rights of the elderly.

On another front, a federal law had laid the foundations for empowering and integrating persons with disabilities into the fabric of society, including through education, rehabilitation, health and work, he said.  The Social Affairs Ministry had undertaken to implement those rights with very satisfying results.  The most important pillar of the Government’s plans in the area of social development concerned preparing the youth to contribute to the growth of society.  It was, therefore, keen to provide young people with free education at all levels, as well as vocational and technical training.  To meet the requirements of a changing market, the State had updated school curricula.  It was also paying special attention to juvenile delinquents and had established special centres under professional supervision to train and rehabilitate them.

NAVIN CHANDARPAL ( Guyana), while agreeing with the policy recommendations contained in the Secretariat note on immediate short-term measures as well as medium- and long-term steps to address the current financial crisis, said the real solution lay in a more comprehensive approach to questions of social inequality.  Development was a central goal in itself and sustainable development, in its economic, social and environmental aspects, was the overarching framework of United Nations activities.  United Nations resolutions on the Organization’s role in promoting a new global human order stressed the need for a broad-based consensus for action, within a comprehensive and holistic framework, aimed at achieving development and poverty-eradication goals with the involvement of all actors.

In an increasingly globalized environment of disorder and confusion, there was very little room for concepts of development that placed prime emphasis on the promotion of narrow national interests above the common good of humanity, he said.  There must be an end to the unjust world economic order.  A development strategy for the eradication of poverty must be global and positive -- not South against North nor North against South, but the North and South in interdependence, cooperation and partnership.  In the wake of the financial crisis, many had benefited from huge financial bailouts, but there was none for the poorest and most socially vulnerable who had suffered most.  Hope for the socially vulnerable rested in a new approach to social relations within and between States.  In that search, the further development of a new global human order could provide important new inputs.  Guyana encouraged the Commission to further consider United Nations resolutions on promoting a new global human order.

MOIRA MENDEZ ( Venezuela) said the looming environmental, energy, food, financial and economic crises were authentic evidence of the failure of the global capitalist system.  The disastrous system was based on greed and fed on exploitation, misery, famine and the deaths of millions.  The crises had begun swiftly to erode economic and social development, including the enjoyment of human rights.  The situation was moving towards a tragedy for the entire human species.  Global warming was accelerating, primarily in developing countries, and the world’s poor were the main victims, she said.  In the area of food, the indiscriminate increase in the prices of food staples in mid-2008 had led to “hunger revolts” in more than 40 countries.

Food was used as a commodity, serving to maximize earnings as the current crisis caused millions of workers worldwide to be laid off, she said.  The International Labour Organization (ILO) had warned that the current economic crisis could mean that, in 2009, unemployment would rise by more than 50 million compared to 2007.  That disastrous situation would widen inequalities, reduce social protection for the poorest and even threaten to turn into a global social crisis.  Those were signs of the end of an era; the global capitalist system, based on exploitation and not development, had fallen.  It was a time for deep-seeded transformation, a time to set up a new global order based on solidarity and social justice.  The situation would be examined during the upcoming high-level United Nations Summit in June, with a view to transforming the global financial system into an equitable, inclusive and democratic one, reflecting the interests of all Member States.

It was important not to lose sight of the commitment to attain the Millennium Development Goals, she said, stressing that the global crises should not be allowed to affect ODA flows.  In 2007, President Hugo Chavez had proposed the creation of a development bank so as to promote economic integration as a way to strengthen South American nations and promote a common South American currency.  Efforts had already begun towards establishing such a currency and a reserve financial development fund, which would allow regional nations to “de-dollarize” trade relations.  Venezuela had also been implementing a set of public policies geared to ensuring the right to food.  It also sought to boost free trade and access to credit through the establishment of an agriculture bank, and had taken action to alleviate the high cost of energy, using oil as a lever.  Venezuela also stressed the crucial importance of energy cooperation and integration with Caribbean countries.

AHMED ABOU-ELKHEIR ( Egypt) said the real problem of the global financial crisis was not the lack of resources, but the need for a real understanding of the crisis and its general impact.  Although all countries had developed ways to stem the crisis, the application of those measures was very slow.  Emerging from the crisis required a return to financing methods that involved strong regulation that would lead to real economic activity followed by economic incentives.  Those kinds of solutions must be adopted rapidly, bearing in mind that the current crisis could be followed by debt accumulation, an increase in unemployment and other obstacles to trade.

It was important not to overlook arrangements that would make it possible to strengthen the financial system and all other measures required to open up markets and expand investment, he stressed.  The world was facing a slowdown in economic growth and an increase in bank indebtedness, a situation which, if it continued, could destabilize the global economic and social systems.  The slowdown in growth would affect marginalized and vulnerable groups in particular and increase unemployment.  It was necessary to adopt and strengthen social-protection measures to guarantee that those groups would not be affected by crisis.  The weakest deserved the most protection.

Programme Questions and Other Matters

ELSA STAMATOPOULOU, Acting Director, Division for Social Policy and Development, Department of Economic and Social Affairs, introduced the agenda item “Programme performance and implementation for the biennium 2006-2007”, saying that the relevant informal paper contained an extract from the Secretary-General’s report on Programme Performance of the United Nations for the biennium 2006-2007 (document A/63/70).

THANDIKA MKANDAWIRE, Director, United Nations Research Institute for Social Development (UNRISD), presented the highlights of the Institute’s work over the biennium 2007-2008 and introduced the body’s report (document E/CN.5/2009/8), saying that much of its research, both before and after the World Summit for Social Development, had focused on the social integration dimension of development.  Over the years, it had examined the multiple roles of social policy in social and economic development, and in building cohesive societies.  During the last biennium, the Institute had paid particular attention to the role of social policy in poverty reduction, and the policy implications of its research emphasized two crucial aspects -- the need for cross-sectoral as well as transformative social policies.

The Institute undertook most of its work through collaboration with researchers from academic institutions around the world, he said, adding that it designed its research agenda to be in alignment with current development trends and concerns.  It aimed to ensure that areas of inquiry formed part of a coherent research strategy and gave attention to issues not addressed in research elsewhere in the United Nations system.  In 2007 and 2008, research had been carried out on the Institute’s flagship project, poverty reduction and policy regimes, as well as on 15 other projects under five programme areas:  social policy and development; gender and development; markets, business and regulation; identities, conflict and cohesion; and civil society and social movements.

He said the poverty-reduction project examined the interconnections between institutions and policies in the economic, social and political domains to explain variations in poverty outcomes.  Current poverty-reduction strategies in many low-income countries were constrained by an overly restrictive macroeconomic framework.  Furthermore, because recent growth accelerations in many low-income countries were linked to the boom in commodity prices and the global economic expansion, the current economic slowdown would likely reverse growth trends and adversely affect poverty and social cohesion.

Some of the broad policy implications of reducing poverty were particularly relevant to the Commission, he said.  For instance, in emerging economies where the services sector had become the engine of growth, and where both industrialization and agricultural development had failed, policies must seek to address persistent unemployment or widespread underemployment.  “Universalist” welfare programmes tended to reduce poverty more than those based on the principles of targeting.  There was also a need to find innovative ways to extend social insurance to workers in the non-formal sector and the unemployed, and to design growth strategies that shifted the bulk of the labour force to productive sectors.

The Institute’s recent work on social policy involved several other topics, including the role of social policy in South-South migration, and the poverty impact of migratory flows, he said, calling attention also to its research on the political and social economy of care.  Market-driven development strategies that ignored the unpaid economy of care or social reproduction had serious implications for the promotion of social equity and social inclusion, as it did for the promotion of gender equality.  Most of the Institute’s country-level research for that project explored gender inequalities and power dynamics with families, States, markets and the voluntary sectors, in addition to the implications of different care arrangements for care providers in terms of poverty and access to social rights.  The Institute received no funding from the regular United Nations budget and depended entirely on voluntary contributions from Member States.

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For information media • not an official record