Africa: Fair Globalization Report
AfricaFocus Bulletin
Mar 3, 2004 (040303)
(Reposted from sources cited below)
Editor's Note
"No one likes to eat crumbs from a feast; everyone likes to sit
at the table." Tanzanian President Benjamin William Mkapa quoted
this African proverb in introducing the report of the World
Commission on the Social Dimensions of Globalization, released last
week. The Commission, initiated by Juan Somavia of the
International Labour Organization (ILO) and chaired by the
presidents of Tanzania and Finland, offers specific proposals to
move the world towards "fair globalization."
The Commission members stress the diversity of their backgrounds
and the necessity of finding common ground despite significant
divergence of views. In addition to President Mkapa, African
members of the Commission included Heba Handoussa of the Egyptian
parliament, Aminata D. Traoré of the Centre Amadou Hampate Ba in
Mali, and Zwelinzima Vavi of COSATU in South Africa. Members from
the U.S. included Nobel Prize laureate Joseph Stiglitz, John
Sweeney of the AFL-CIO, and Ann McLaughlin Korologos of the Rand
Corporation.
This issue of AfricaFocus Bulletin contains excerpts from the
report synopsis and from a news release on the report, which is
being considered by the ILO's governing body this month. Full text
of the report and other related material, including a video-clip
from President Mkapa's remarks, are available on the ILO website
at: http://www.ilo.org/public/english/wcsdg
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A Fair Globalization: Creating Opportunities for All
Introduction
Our remit, the Social Dimension of Globalization, is a vast and
complex one. As a Commission we were broadly representative of the
diverse and contending actors and interests that exist in the real
world. Co-chaired by two serving Heads of State, a woman and a man,
from North and South, we came from countries in different parts of
the world and at all stages of development. Our affiliations were
equally diverse: government, politics, parliaments, business and
multinational corporations, organized labour, academia and civil
society.
Yet, through a spirit of common purpose, we arrived at the shared
understandings that are before you. As a collective document it is
quite different from alternative reports each one of us would have
written individually. But our experience has demonstrated the value
and power of dialogue as an instrument for change. Through
listening patiently and respectfully to diverse views and interests
we found common ground.
We were spurred on by the realization that action to build a fair
and inclusive process of globalization was urgent. This could only
happen in the future through forging agreements among a broad
spectrum of actors on the course for action. We are convinced that
our experience can and should be replicated on a larger and wider
scale, expanding the space for dialogue aimed at building consensus
for action.
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World Commission says globalization can and must change, calls for
urgent rethink of global governance
Tuesday 24 February 2004 (ILO/04/07)
[Excerpts only; for full text of this news release and the World
Commission report, see http://www.ilo.org/public/english/wcsdg]
GENEVA (ILO News) - Globalization can and must change, says a new,
groundbreaking report presented today to the International Labour
Organization (ILO) urging that building a fair and inclusive
globalization become a worldwide priority.
A Fair Globalization: Creating Opportunities for All calls for an
"urgent rethink" of current policies and institutions of global
governance. The report was issued by the World Commission on the
Social Dimension of Globalization, which was co-chaired by
President Tarja Halonen of Finland and President Benjamin William
Mkapa of Tanzania.
The 168-page report acknowledges that globalization's "potential
for good is immense" and that it "has opened the door to many
benefits promoted open societies and open economies and
encouraged a freer exchange of goods, ideas and knowledge (and)
a truly global conscience is beginning to emerge sensitive to the
inequities of poverty, gender discrimination, child labour and
environmental degradation, wherever these may occur".
Nevertheless, it says, "There are deep-seated and persistent
imbalances in the current workings of the global economy, which are
ethically unacceptable and politically unsustainable Seen through
the eyes of the vast majority of men and women, globalization has
not met their simple and legitimate aspirations for decent jobs and
a better future for their children".
"There is growing concern about the direction globalization is
currently taking", says the report. "Its advantages are too distant
for too many, while its risks are all too real. Corruption is
widespread. Open societies are threatened by global terrorism, and
the future of open markets is increasingly in question. Global
governance is in crisis. We are at a critical juncture, and we need
to urgently rethink our current policies and institutions."
Juan Somavia, Director-General of the ILO, who originally proposed
the Commission, said this was the first time there had been a
systematic attempt to deal with the social dimension of
globalization. He added that the Commission was convened by the ILO
to search for common ground and make proposals on issues which are
today the subject of "parallel monologues" and a "dialogue of the
deaf". "This Commission provides a clear-eyed, common sense message
of hope. Making globalization fair and inclusive is difficult but
do-able, and is an urgent worldwide priority", he said.
Mr. Somavia said the 26 Commission members - including a Nobel
Economics laureate, politicians, parliamentarians, social and
economic experts and representatives of business and multinational
corporations, organized labour, academia and civil society - were
"broadly representative of the diverse and contending actors and
issues that characterize globalization today and had accepted the
challenge to analyze its effects and provide a series of proposals
for righting its imbalances". Their report "offers no miraculous or
simple solutions, for there are none. But is an attempt to help
break the current impasse by focusing on the concerns and
aspirations of people and on the ways to better harness the
potential of globalization itself".
Among its prescriptions for achieving a fair and inclusive
globalization, the Commission proposes a series of coordinated
measures across a broad front to improve governance and
accountability at both national and international levels. These
include fairer rules for international trade, investment, finance
and migration, which take account of all interests, rights and
responsibilities; measures to promote core labour standards and a
minimum level of social protection in the global economy; and new
efforts to mobilize international resources to raise capabilities
and meet the Millennium Development Goals (MDGs). The Commission
argues that a fair globalization also depends on better national
governance in all countries, and maps out the priorities for
national, local and regional policies which can empower people to
participate effectively in the opportunities of globalization.
The Commission recommends that "decent work for all should be made
a global goal and be pursued through complementary national and
international policies. This would respond to a major political
demand in all countries". Addressing the need to accelerate
employment creation in all countries would help to reduce social
tensions within countries and economic frictions between them. The
report calls for "enhanced coordination of macroeconomic policies
to attain a more balanced strategy for sustainable global growth
and full employment, including an equitable sharing among countries
of the responsibility for maintaining high levels of effective
demand". ...
The co-Chairs of the Commission, Presidents Halonen and Mkapa,
said: "We believe a better globalization is the key to a better and
secure life for people everywhere in the 21st Century. Ours is a
critical but positive message for changing the current path of
globalization. We believe the benefits of globalization can be
extended to more people and better shared between and within
countries, with many more voices having an influence on its course.
The resources and the means are at hand. Our proposals are
ambitious but feasible. We are certain that a better world is
possible".
Divergent views, converging voices
The Commission examined a wide range of data during its
deliberations and concluded, "The current process of globalization
is generating unbalanced outcomes, both between and within
countries. Wealth is being created, but too many countries and
people are not sharing in its benefits". It noted that work and
employment are central to any strategy for widening the benefits of
globalization, and highlighted the fact that global unemployment
has reached over 185 million people, the highest ever recorded
figure. ...
It developed its conclusions and recommendations after listening to
the voices of a wide variety of people in consultations held around
the world over the last two years. In the 26 "dialogues" held in
over 20 countries, the Commission sought not only to establish the
facts, but also to encourage debate among a range of divergent and
often critical views. ...
The Commission noted, "In the kaleidoscope of opinions that emerged
from the dialogues, there was also much common ground". This
included a sense of insecurity and concerns about employment - in
the words of one dialogue participant from the Philippines, "there
is no point to a globalization that reduces the price of a child's
shoes, but costs the father his job". ...
Among the widespread concerns was migration, in sending and
receiving countries alike. In addition to the "brain-drain", which
undermined efforts to build national capabilities, participants
said poor migrants from all regions often found themselves -
especially if they were women - driven into an illegal economy in
countries of destination.
In all parts of the world, regional integration was seen as a route
towards fairer, more inclusive globalization and there were
repeated expressions of support for the United Nations as the best
means of responding to the challenges of globalization. ,,,
Addressing globalization begins at home
The report argues that a fair globalization requires improvements
in governance both within countries and at the international level.
Public and private actors in countries at all levels of development
must be democratically accountable for the policies they pursue and
the actions they take. Says the report: "no country has a monopoly
of good governance". ...
Within countries, the benefits of globalization can only be widely
shared, and the adverse effects controlled, if the basic principles
of democracy, social equity, human rights and the rule of law are
respected. Sound institutions are likewise required to promote
opportunity and enterprise in a well-functioning market economy.
The report calls for a more effective State with the capacity to
manage the process of integration into the global economy, to
strengthen the capabilities of people and enterprises, provide
adequate social protection and to deliver on key social and
economic goals. ...
The report emphasizes that the benefits of globalization can only
reach all people if the huge informal economy is brought into the
economic mainstream by establishing and respecting property rights
and the rights of workers, and by increasing productivity and
access to markets. ...
Fair rules, equitable policies
Among its key recommendations, the Commission said global rules and
policies on trade and finance must allow more space for policy
autonomy in developing countries, adding "This is essential for
developing policies and institutional arrangements best suited to
their level of development and specific circumstances. Existing
rules that unduly restrict their policy options for accelerating
agricultural growth and industrialization and for maintaining
financial and economic stability need to be reviewed".
"The policies of international organizations and donor countries
must also shift more decisively away from external conditionality
to national ownership of policies", the report says. "Affirmative
action is required in favour of countries that do not have the same
capabilities of those who developed earlier."
The report also says:
* The multilateral trading system should substantially reduce
unfair barriers to market access for goods in which developing
countries have comparative advantage, especially textiles and
garments and agricultural products. In doing so, the interests of
the Least Developed Countries should be safeguarded through special
and differential treatment to nurture their export potential.
* Fair rules for trade and capital flows need to be complemented by
fair rules for the cross-border movement of people. Steps have to
be taken to build a multilateral framework that provides uniform
and transparent rules for the cross-border movement of people and
balances the interests of both migrants themselves and of countries
of origin and destination. ...
* Core labour standards as defined by the ILO provide a minimum set
of global rules for labour in the global economy and respect for
them should be strengthened in all countries. Stronger action is
required to ensure respect for core labour standards in export
processing zones and, more generally, in global production systems.
All relevant international institutions should assume their part in
promoting these standards and ensure that no aspect of their
policies and programmes impedes implementation of these rights.
* A minimum level of social protection for individuals and families
needs to be accepted and undisputed as part of the socio-economic
"floor" of the global economy, including adjustment assistance to
displaced workers. Donors and financial institutions should
contribute to the strengthening of social protection systems in
developing countries.
* The international financial system should be made more supportive
of sustainable global growth. Cross-border financial flows have
grown massively but the system is unstable, prone to crises and
contagion, and largely bypasses poor and capital scarce countries.
Efforts to devise effective and equitable mechanisms for debt
resolution should be intensified, so as to provide for a fair
allocation of responsibilities and burdens between debtors and
lenders, alongside an acceleration and deepening of debt relief.
* A greater effort is required to mobilize more international
resources to attain key global goals, particularly the Millennium
Development Goals (MDGs). The 0.7 per cent target for ODA must be
met and new sources for funding over and above this target should
be actively explored and developed. If this target had been met
over the last 30 years, 2.5 trillion additional dollars would have
been available for development. ...
Reinforcing the multilateral system - Improving the quality of
global governance
"The implementation of reforms in international economic and social
policy will require worldwide political support, the commitment of
key global actors, and the strengthening of global institutions",
the report says. "The UN multilateral system constitutes the core
of global governance and is uniquely equipped to spearhead the
process of reform. For it to cope with the current and emerging
challenges of globalization it has to enhance its effectiveness and
improve the quality of its governance, especially with respect to
democratic representation and decision-making, accountability to
people, and policy coherence."
Key recommendations in the report include a variety of measures to
make the multilateral system, including the Bretton Woods
institutions and the WTO, more democratic and accountable to
people, in its decision-making procedures, mechanisms for
independent evaluation, and through parliamentary scrutiny of
international policies. The report recommends a global
parliamentary group to develop integrated oversight of the major
international organizations. ...
Making it happen - Buy-in of multiple stakeholders
The Commission stresses the responsibilities of all actors to
respect universally shared values and principles, and to contribute
to the overall goal of a fairer globalization, and calls for
follow-up of its recommendations by a wide range of people, in
government, politics, business, labour and civil society. At the
international level, the Commission notes that many of the
proposals in the report should be addressed in existing
institutions and forums that have the mandate to do so. But other
issues require new forums for dialogue and consensus building among
all interests concerned.
It therefore proposes a series of multi-stakeholder Policy
Development Dialogues, ...
The report will be discussed by the ILO's Governing Body in March,
and the Director-General will make proposals for follow up in the
ILO to its International Labour Conference in June. It will also be
submitted to Heads of State and Government, the Secretary-General
of the United Nations and the heads of the main international
organizations, as well as other intergovernmental bodies, and to
the key non-state actors of the global community. Each will be
invited to debate the recommendations and consider appropriate
follow-up action in their own spheres of responsibility and
institutional competencies. ...
"This is an ambitious but realizable common sense vision", the two
presidents say. "The choice is clear. We can correct the global
governance deficit in the world today, ensure accountability and
adopt coherent policies that forge a path for globalization that is
fair and just, both within and between countries; or we can
prevaricate and risk a slide into further spirals of insecurity,
political turbulence, conflicts and wars."
Annex I
[summary: The Commission was chaired by President Tarja Halonen of
Finland and President Benjamin William Mkapa of Tanzania. Other
members included Giuliano Amato, Italy; Ruth Cardoso, Brazil; Heba
Handoussa, Egypt; Eveline Herfkens, Netherlands; Ann McLaughlin
Korologos, USA; Lu Mai, China; Valentina Matvienko, Russia; Deepak
Nayyar, India; Taizo Nishimuro, Japan; François Perigot, France;
Surin Pitsuwan, Thailand; Julio Maria Sanguinetti, Uruguay;
Hernando de Soto, Peru; Joseph Stiglitz, USA; John J. Sweeney, USA;
Victoria Tauli-Corpuz, Philippines; Aminata D. Traoré, Mali,
Zwelinzima Vavi, South Africa; and Ernst Ulrich von Weizsaecker,
Germany.]
Annex II [selected points]
* Since 1990, global GDP growth has been slower than in previous
decades. This, the Commission said, "is at variance with the more
optimistic predictions on the growth-enhancing impact of
globalization"; ...
* The income gap between the richest and poorest countries is
widening significantly, rising from US$ 212 versus US$ 11,417
respectively in 1960-1962 to US$ 267 versus US$ 32,339 in
2000-2002; ...
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