Development Dossier


Commission on Global Governance



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Commission on Global Governance

I am speaking on behalf of the Commission on Global Governance which under the chairmanship of Swedish Prime Minister Ingvar Carlsson has explored new directions in international cooperation.


The commission's report, released a few weeks ago, is called Our Global Neighbourhood ‑ a title which echoes one of the themes running through our efforts this week ‑ the realization that we now live in a global and interdependent world. The poor parts of this global neighbourhood are no longer confined to the South and the better parts aren't only in the North. Jobs have to be created throughout this global neighbourhood.
The benefits of economic growth have to be more evenly spread throughout the whole neighbourhood. There have been economic miracles in parts of Asia and Latin America ‑ but in both regions the numbers in absolute poverty have been increasing. One fifth of humanity lives in destitution ‑ a growing, global underclass.
There is already broad consensus on the economic policies necessary to break the grip of poverty: financial stability, outward looking trade policies, high rates of savings and investment, releasing the private sector from bureaucratic controls. But it is also the other way around:

social issues have immediate economic implications, in the present global competitive economy even more than in the past. The role of women in the work force, child labour, education levels, female literacy infant mortality, basic wage rates ‑ all affect a nation's competitiveness and its

ability to function in a global economy. Two policy conclusions can be drawn from this. First: social policies should not be viewed as distinct from economic and financial policies with the only aim to compensate negative consequences of the latter. On the contrary, the three ‑ financial, economic and social ‑ should be integrated from the very outset. Second: social as well as economic policies should not only be discussed at the national but also at the international level.
There is no substitute for a sustained domestic commitment to reduce poverty. But there is also need for action at the international level. The present lack of any effective mechanism of global economic governance is a structural deficit in the world economy.
While such a mechanism does not exist at present, the G7 would like to provide it ‑ but its seven members represent just 12% of the world's people ‑ without India and China it cannot even claim to represent the seven major economies. The lack of any framework for developing and implementing social and economic policy at the international level has consequences for every

region. For example ‑ the worst of Mexico's problems might be over but we have not seen any moves towards reconciling the capital needs in emerging economies, their over‑indebtedness and the practices of financial markets. We have provided aid but not found ways to bring sub‑Saharan Africa into the world economy. We are stumbling in efforts to assist the transition to market economies across the former Soviet Union.


To fill this structural deficit, the Carlsson Commission proposes the establishment of an Economic Security Council This should include the existing major economies as well as representatives from the regional economic groupings. As we envisage it, this Economic Security Council would be representative enough to gain the necessary consensus for setting effective, long term policy directions. It would meet at the ministerial level (e.g. Ministers of Finance) twice or more a year with annual meetings at the heads of government level. With real political commitment it will be possible to develop a forum which provides leadership in economic, social and environmental issues leadership needed throughout the world.
We believe that such an Economic Security Council would be a suitable response to the demand of this Summit's Draft Programme of Action for the creation of 'a framework of sustained economic growth and sustainable development'. To this end we further propose an overall and integrated package of reforms of the UN system and its affiliates, including those parts of the system which deal with social and economic policy‑making.
In our report, we endorse some of the new thinking on aid, both in terms of quantities and in terms of impact. There is a need for more resources applied less selfishly. Only a few countries have ever met the target of 0.7% of their GDP for development assistance. Far too many countries give aid to promote exports or their own priorities, rather than those of the recipients. A redirection of aid both in terms of quantity, quality and composition should be based in particular on social objectives.
We make a case for combining strong domestic policy reform with radical debt reduction ‑ even for a package of measures somewhat similar to corporate bankruptcy. The alternative is to condemn whole countries and their people to indefinite misery. That would be the opposite of a social policy in our global neighbourhood.
The declaration drafted for this summit puts people at the centre of its concerns and their entitlement to a healthy and productive life in harmony with the environment. This is not a utopian dream ‑ it recognises that the era of contending nation states is passing and that we have a chance to address the economic and social security of people and not just the financial and political security of states. It requires leadership to link the two.

Minister Jan Pronk


Commission on Global Governance

11 Avenue Joli-Mont, Caisse Postale 184

CH-1211 Geneva 28, Switzerland

Confederaciòn Mundial del Trabajo
La Conferederaciòn Mundial del Trabajo—CMT—ha estado estrechamente ligada a la preparaciòn de esta Cumbre Mundial, y nos comprometemos—junto con nuestras organizaciones miembros de 108 paìses, a realizar los esfuerzos necesarios para la continuidad de esta Cumbre.
En el dìa de ayer, dirigentes sindicales de todo el mundo, de diversas orientaciones y regiones, que representan más de 300 millones de trabajadores organizados, hemos aprobado una Declaración Sindical, donde especialmente—además de denunciar la incompatibilidad de la miseria, de la desocupación y de la exclusión con la democracía—subrayamos que las diferencias se agravan (recordamos que el 19% de la población mundial acapara el 83% de la riqueza), pero que es imposible terminar con estos flegelos:
a) sin cuestionar el actual modelo económico que excluye una visión racional y social;

b) sin cambiar las reglas desiguales del Comercio Internacional;

c) sin anular los efectos nefastos de la Deuda Externa;

d) sin poner un orden democrático y un control político a los organismos económicos y financieros internacionales;

e)y, finalmente, sin poner un control racional a los flujos de capitales y la infame especulación financiera internacional.
Para nosotros, el hombre—y su desarrollo integral—son el objetivo central de todo proceso democrático y de un verdadero desarrollo, y particularmente el esfuerzo debemos relizarlo en favor de los más pobres y más desfavorecidos. Reconocemos la importancia del mercado y de las leyes económicas, pero en favor del hombre, y no para aumentar las diferencias y las desigualdades.
Pero la que más nos importa ahora, Señor Presidente, es la puesta en marcha de la continuidad de la Cumbre, lo que haremos a partir del próximo lunes.
Nosotros solicitamos que para la continuidad de la Cumbre, se tengan en cuenta particularmente 4 aspectos:
1. A nivel nacional, la constitución de una Comisión tripartita, compuesta por los interlocutores sociales (Empleadores y Sindicatos), sin ignorar la importancia de las ONGs;
2. Coordinar los organismos económicos y financieros internacionales, junto con la OIT, que por lo demás, acaba de presentar un excelente informe y programa sobre el empleo.
3. Impulsar una verdadera legislación internacional, especialmente en el campo:

-social


-económico

-financiero y

-ecológico.
Y en el terreno social, consideramos fundamental las más importantes convenciones internacionales de la OIT.
4. Consideramos muy importante que la propia Asamblea General de las Naciones Unidas tenga en cuenta y supervise la aplicación y la continuidad de la Cumbre.
Finalmente, Señor Presidente, nos comprometemos por nuestra parte a -trabajar a nivel nacional con nuestras organizaciones;
-comprometimos, con todos las instituciones y sectores interesados, a concretizar la continuidad de la Cumbre;

-insistir, con la OIT, y a partir de su Grupo de Trabajadores, en el rol que debe cumplir esta institución internacional.


Son propuestas concretas para que nuestra Cumbre no quede en palabras.
Muchas gracias, Señor Presidente.



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