Untitled Document

Poul Nielson

Royal Danish Ministry of Foreign Affairs

Opening Address

    The Minister began by stating that the Copenhagen Social Summit was a milestone on the road towards the elaboration of a new development paradigm. The approach evolved during the 1980s – the so-called “Washington Consensus” – equated development with economic growth and good economic performance; balanced budgets, liberalisation, deregulation and privatisation. However, it was gradually realised that economic growth by itself did not do away with mass poverty, marginalisation and exclusion.

    At the Copenhagen Summit, the international community took significant steps on the road towards a new development paradigm. The “Copenhagen Consensus” places the individual human being at the centre of development, underlining that sound economic policies have to be accompanied by policies directly aimed at social development and eradication of poverty. He felt that the new consensus had gained ground since then.

    The Minister went on to state that today’s consensus recognises the importance of public institutions and public action to prevent and correct the shortcomings of the market. Neo-interventionism is replacing neo- or ultra-liberalism. Three years after Copenhagen, he noted that eradication of poverty has been incorporated as the overriding objective in the policies of the World Bank, the United Nations system, and of donor countries.

    Poul Nielson commented on the United Nations Development Programme (UNDP) Report entitled “Overcoming Human Poverty” and what efforts the developing countries themselves have made. The report states that of 130 developing countries, 43 have now adopted national poverty plans. Another 35 have national planning frameworks in which poverty is explicitly addressed, but only 38 countries have set targets for the eradication of extreme poverty and 39 for overall poverty. The UNDP report concludes that the world has made significant progress in the struggle against poverty, but that much more is needed.

    There is, however, a lack of detailed and precise knowledge about poverty. There needs to be improved statistics, and the Minimum National Social Data adopted by the UN system, is an important step in this direction. The Minister went on to say that the Danish government intends to devote a significant part of the next Copenhagen Seminar for Social Progress in 1999 to the question of conceptualisation, measurement and monitoring of the various elements that determine processes of development and improved well-being of people.

    However, in spite of progress, the UNDP Poverty report is sobering reading. Certain statistics stand out:

32% of the population of developing countries earn less than US$1 per day;
30% of all children under five are underweight;
14% of the population will not attain the age of 40;
the female illiteracy rate is 38%.

The Minister spoke of the main challenges ahead: 1) an enabling environment for social development; 2) resources; and 3) the role of NGOs.

1. Creating an enabling environment

    This is a challenge, first of all for developing countries themselves. Reforms cannot be imposed from the outside. If they are to succeed, local ownership and local roots are essential. A democratic culture is key to this. Democracy implies decisions by the majority and respect of the minority. Democracy includes the right of the poor to mobilise themselves. They are not pawns in the struggle against poverty, but should be actively engaged themselves. The struggle against poverty is really about empowerment and participation of the poor. Good governance, rule of law, and respect for human rights are essential elements of an enabling environment.

2. Resources – Official Development Assistance (ODA)

    The absence of an enabling environment is one of the main reasons for insufficient progress from the Copenhagen Summit and in the struggle against poverty. The fall in ODA is another main reason.
During the 1970s and 1980s, ODA remained stable at around 0.35% of the Gross Domestic Product (GDP) of donor countries. But the past decade has seen a steady decline. In 1997 ODA reached the all-time low of 0.22%, a far cry from the UN target of 0.7%.

    ODA has an essential role to play in helping the poorest countries and in building up the sectors that do not attract private flows: health, education, the social sectors, and capacity building in general. The question of ODA is fundamentally a question of global solidarity. The industrialised countries must honour the commitments entered into at the Copenhagen Summit.

    Developing countries will not be able to pursue sound policies if their economies are crippled by heavy debt. In response to international concerns about the debt situation of poor countries the International Monetary Fund and the World Bank launched the Heavily Indebted Poor Countries (HIPC) initiative. Although the Minister recognised NGO concerns about HIPC, he did state that the initiative has helped with debt relief.

3. The role of NGOs

The Minister spelt out what he considers to be the key roles of the NGO sector:

that they continue to make sure that governments and public opinion do not forget their commitments to the “Copenhagen Consensus”;
that they take an active part in monitoring the implementation of the Copenhagen Summit.

The example set by ICSW through its publications is an essential contribution to the preparatory process leading up to the special session of the UN General Assembly in the year 2000. Innumerable NGOs are executing concrete projects in developing countries.

The Minister concluded by reiterating the efforts and policies of the Danish Government. They were:

continuing the policy of devoting 1% of GDP to ODA;
contributing to the debate about the “Copenhagen Consensus” through the annual Copenhagen Seminars for Social Progress;
contributing actively, and financially, to the UN Special Session to review progress on implementation. Here there will be three main aims:
- emphasis on and further elaboration of the “Copenhagen Consensus”;
- monitoring progress in the implementation of the Summit Commitments;
- making sure that representatives of developing countries and of the poor themselves are able to take part in the process and enabling their voices to be heard.

Poul Nielson is Minister for Development
Co-operation, Royal Danish Ministry of Foreign Affairs.