Statement by

Ms. Zobaida JALAL, Minister for Education, Social Welfare and Special Education

Government of Pakistan

Geneva, 28 June 2000

Mr. President, Excellencies, Distinguished Delegates,

1. In the closing decade of the last century world leaders met at Copenhagen and agreed to take concrete measures for the realization of "social progress and better standards of life". It was envisioned that the international community would work together for the attainment of conditions in which the equitable development of all peoples is ensured.

2. We are now in a new millennium. Yet the goal that inspired us at Copenhagen remains elusive. The principles that were to serve as guide posts have provided scant direction, and the actions that we were to take remain largely unimplemented. For an unacceptably large number of men and women the world remains as it was - a place marked by deprivation and misery, devoid of opportunities, and even hope.

3. This has happened against the backdrop of profound changes in the global economy. Vast productive forces have been unleashed. World trade has increased significantly. Investment flows have reached dramatic levels. Production and distribution networks are being established on a global scale. Communications technology has vanquished time and distance. The material means, and the know how, to address long entrenched social deficits are clearly available.

4. And yet, the social indicators remain abysmal. Among the 4.4 billion people who live in developing countries, three fifths have no access to basic sanitation; almost one third are without safe drinking water, and one quarter lack adequate housing. The number of people living in absolute poverty has not declined.

5. Why is this so? Why is it that despite repeated assertions that the international community shall not tolerate the, perpetuation of want and misery we continue to be confronted with the tragedy of persistent poverty?

6. The answer is not too difficult. At Copenhagen, the international community had recognized that in order to "sustain social justice" it was necessary to have " broad based and sustained economic growth". This was an acknowledgement of the simple fact that enunciating social goals is not enough - there must also be the ability to pay for these goals.

7. Most countries lack this ability, for the benefits of recent developments have been grotesquely lopsided. Income disparity between the richest 20% and the poorest 20% of the world has more than doubled in the last 30 years. While a handful of countries have seen an improvement in economic growth over the past few decades. 1.6 billion people live in more than 100 countries which are economically worse of today than they were 15 years ago. Between 1960 and 1993 the per capita income gap between industrial and developing countries almost tripled from $ 5700 to $ 15400. It is estimated that 15% of the highest income countries control about 80% of the world GDP; 82.1 % of the world's trade and 94% of all commercial lending. Where as, the debt burden of low income country is increasing at a rate of about 10% per annum, siphoning of a major portion of the resources of low income countries. The benefits of globalisation are definitely not global, these remain stubbornly limited and local.

Mr. President,

8. Broad based growth can be ensured. Resources can be generated that would permit funding of social programmes by all countries. But, this requires a number of measures, including

One, international trade rules should evolve in a manner that these ensure a truly level playing field, enabling developing countries to enhance their supply capacities, and to compete with developed countries that have vastly greater resources. These rules must also ensure symmetrical benefits for all countries, with trade liberalisation proceeding in a balanced manner in areas of interest to both developed and developing countries.

Two, the debt burden of developing countries must be expeditiously addressed. Recent measures for the Highly Indebted Poor Countries are encouraging, but it should be realised that the HIPCs account for only about 10% of developing countries' debt. The rest is owed by low and middle income countries. Their ability to achieve social objectives is sharply constrained by the overriding priority to service and repay their debt.

Three, the international monetary and financial system needs to be imbued with greater equity and stability. Seventy percent of foreign direct investment flows are to developed countries, whereas vast majority of the developing countries are excluded. Also, volatile capital flows can overturn years of hard won social and developmental gains. Changes in exchange rates, very often unrelated to differentials in inflation rates or other competitive factors, can neutralise a country's ability to trade and compete in the global market. Developing countries cannot be left at the mercy of capricious financial markets while endeavoring to attain urgent social targets.

Four, the persistent decline in ODA flows need to be reversed. Foreign investment flows alone cannot be relied upon to meet capital needs, for these are directed to a limited number of countries, and also tend to concentrate in the most profitable sectors. Most countries, and critical sectors within countries, remain starved of much needed capital. Moreover, it is a myth that ODA is not "effective". The European Union's experience is most instructive in this regard. Its internal aid policy has been recognized as having in helped four of its less developed members to increase their per capita income from 66% of the EU average in 1983 to 76% in 1995.

Five, the ability of countries to generate and acquire technology must be improved. Technology is now a critical factor in the ability of developing countries to compete in the global economy, and also to provide their growing populations with food, health care, education, and other social goods. Yet, technological disparity between developed and developing countries is widening, propelled by inadequate institutional capacity to generate technology and, more disturbingly, by regimes that inhibit access to technology.

Mr. President

9. A more equitable global economy, that would allow broad based growth, is essential if we are to make a decisive breakthrough in our endeavours to achieve the goals of the Social Summit. It is also true that growth must be complemented by policies that actively channel the benefits of growth to the disadvantaged. Policy makers shall always be confronted by competing demands, but they must resolutely give priority to measures that improve the quality of life of ordinary people.

10. On our part, despite a difficult financial situation and in the absence of an enabling international environment, Pakistan has striven hard to give priority attention to the improving the quality of life for all, with particular emphasis on the poor and the vulnerable segment of the society. In line with our commitment at Copenhagen, we have tried to ensure (a) continued investment in the social sector (b) mobilised additional resources for employment generation and poverty alleviation and (c) strengthened national institutions concerned with social development by enhancing their finances. As a result;

i) Investment in the social sector in Pakistan has grown at the rate of 15% per annum. The budget for 2000-2001 reflects an increase of 50% in resource allocation to poverty reduction, especially for the rural areas.

ii) Primary school enrolment of both boys and girls has increased from 55% in 1995 to 75% in 2000.

iii) The coverage of health facilities has been enlarged to include 100% of the basic administrative units in all provinces.

iv) A Comprehensive and integrated approach to poverty reduction has been adopted by evolving a Poverty Reduction Strategy Paper. This is an action oriented blue print for poverty reduction under which efforts have been made to create additional employment opportunities; promote transparent and accountable governance; establish a credible social safety net to provide poorer segments with minimum income to cover basic needs; and to build partnerships with civil society. Over the longer term, the poverty alleviation strategy aims to succeed by focusing on education and empowerment, inter alia, through universal access to education, especially for girls, in a knowledge based economy to ensure sustainable livelihood for all.

v) Specific programmes such as the Social Action Programme (SAP), the Mass Literacy Programme and Vaccination Programme to Combat Childhood Disease have been implemented, especially for the poor.

vi) Government is setting up Micro Credit Banks, which will formally start operating from 14 August 2000 to provide the poor, particularly women, with self
employment opportunities.

vii) The Devolution of Power Plan has been developed to ensure the full involvement of the people in their own governance. It aims at making people incharge of their own affairs. This will be done through devolution of government functions and responsibilities from the federal to the local level. The philosophy of this bottom up approach is that all services can be delivered at the local level.

viii) The Government has launched an Integrated Rural and Urban Development Programme (IRDUP) to create additional employment and income opportunities for the poor. In this context, the National Training Board (NTB), consisting of representatives of government, the private sector and trade unions, is mobilising resources for the establishment of additional vocational training institutions and skill development centres. The existing NTB's have already helped thousands of men and women in finding gainful employment.

Mr. President,

11. It is clear that a global environment that promotes growth, coupled with policies that privilege the needs of the poor, is essential to social progress. It should, then, be equally clear that in order to ensure a meaningful follow up to the Social Summit we should focus on measures that would render the global economic environment more conducive to broad based growth, and which would also assist the efforts of individual countries to meet the basic needs of their people.

12. Instead of seriously addressing these key issues, there is an unfortunate, indeed perverse, focus on devising ways to sanction and punish countries that fail to meet arbitrarily defined social standards. Indeed, in the guise of social concerns protectionist measures are being vigorously advocated and outright conditional ities are being forcefully proposed.

13. The main motivating force behind these moves are groups that seek to protect themselves from increasing competition from developing countries. No longer able to rely on traditional protectionist devices, they now seek a neo-protectionist regime that would exploit social considerations for self-serving economic ends. The calls for a new social architecture, as articulated by these elements, mask the desire for a new architecture of control, comprising essentially of measures to prevent developing countries from using their comparative advantage to compete in an increasingly open global economy.

14. Regrettably, these groups are, at times, joined by well intentioned people who are genuinely concerned about the social effects of globalization. We share their concerns. Many of our citizens are equally apprehensive about the effects of the global economy on their socio-economic prospects.

15. The best way to address these concerns is to agree on minimum standards in relevant international fora, and to provide the means to progressively implement those standards. Sanctions, boycotts, and discriminatory action can only worsen the situation of the socially disadvantaged, the very people in whose name such actions are advocated.

Mr. President,

16. The social goals that we all aspire to are not beyond our reach. A properly structured global economy can provide us with the necessary resources. And, a renewed political will can lead to the channelling of these resources, both at the national and international levels, to programmes to improve social standards. The outcome of our deliberations must reflect forward movement in both these areas.

I thank you, Mr. President.