The following government remarks, selected from the statements given by many different governments, were presented at the Fortieth Session for the Commission for Social Development on the integration of social and economic policy. This topic has more recently attracted intense discussion and debate at the international level, and has been an underlying theme throughout the UN Financing for Development process.


United States
Edited from the statement delivered by Mr. John Davison
Deputy United States Representative on the United Nations Economic and Social Council

Madam Chairperson, distinguished colleagues:

Although the United States does not agree with all of the recommendations proposed by the Secretary-General in his report on our priority theme, we very much appreciate the work done by the Secretariat, including on the 3 component topics: ‘Social aspects of macroeconomic policies,’ ‘Expenditures in the social sector as a productive factor’ and ‘Social assessment as a policy tool’.

The United States has long subscribed to the socio-economic concepts underlying this thematic agenda, mainly, that economic decisions at both the macro- and micro- level typically have social implications and human consequences. Therefore, economic and social policies in both the public and private sectors should ideally be coordinated and integrated.

The United States supports free trade, free competition, privatisation of state enterprises and liberalised foreign investment. We do not support the implication in the third recommendation of the Secretary-General’s report that there is a necessary choice between economic reform and social development. Rather, the United States believes it is precisely through economic reform that the social objectives of job creation and reduction of poverty, inequality and social exclusion can be best achieved.

The United States strongly supports the Secretary-General’s priorities of education, health and nutrition. In fact, the need for policy integration within the social sector is as critical as the need for social and economic policies, as demonstrated in our longstanding children’s programs such as Head Start and the school lunch program which integrate health, education and nutrition service provision.

The United States’ support for the term ‘social assessment’ is conditional, pending further clarification of its precise meaning. If ‘social assessment’ refers to a process of deliberately ascertaining the views of consumers of services, and thereby disseminating a culture of democracy and insuring transparent and accountable government, we support it wholeheartedly.

We are hopeful that the type of ‘social assessment’ referred to in the Secretary-General’s report will not serve as an excuse for the creation and expansion of a social science research empire which will hold conferences and seminars and produce studies and reports, all proving the existence of problems already familiar to us or repeating recommendations which have never been implemented. If this is ‘social assessment’, we cannot support it and, instead, call upon the Commission for Social Development to focus on practical solutions, such as hiring and deploying more doctors and teachers, and purchasing and distributing more medicines and textbooks.

Madam Chairperson, distinguished colleagues:

In the midst of the international community’s debate about the opportunities and challenges of globalisation and about the relative merits of economic growth or social development as the primary engine of progress for the world’s poor, the United States has appreciated this opportunity to discuss, however theoretically, the possible benefits of integrating social and economic policy.

Now what lies ahead is the infinitely more difficult process of step- by-step implementation of an integrated social and economic policy. That will require peace, political will, good governance, trust between the developed and developing worlds, and, of course, financing.

It is our fervent hope that, in the coming year, the international conference on Financing for Development, the World Food Summit and the World Summit on Sustainable Development will together further our ultimate goal of poverty eradication, continuing economic growth and prosperity, and sustainable development.

Thank you, Madam Chairperson.

For the full text of this statement, go to: www.un.int/usa/02_018.htm



Venezuela
Edited from the statement delivered by Ambassador Adriana Pulido,
Alternate Permanent Representative of Venezuela to the United Nations, on behalf of the Group of 77 and China

Madam Chairperson,

In 1995, in the framework of the World Summit for Social Development, our Governments affirmed, “The ultimate goal of social development is to improve and enhance the quality of life of all people”.1 This should be the guiding principle of our actions when designing economic and social policies.

For the G-77 and China, the goal of improving the quality of life of all people implicitly requires the coordination and integration of actions in social and economic realms. But as the Secretary General has rightly pointed out in his report, in practice, there is a gap between the two realms. This gap is visible mostly among developing countries, particularly those that have gone through the process of implementing stabilisation or structural packages.

Unfortunately, the report does not delve sufficiently enough into the underlying causes of this ‘divorce’.

Madam Chairperson,

In keeping with the objectives of the World Summit for Social Development, the Group of 77 and China attach great importance to the integration of social and economic policies. Social development will not be simply realised through the free interaction of market forces. It is necessary to put in place policies aimed at correcting market failures, complementing market mechanisms, maintaining social stability and creating a national and international economic environment that promotes sustainable growth on a global scale, leading to sustainable development.

Sadly, we have witnessed how the implementation of strict macroeconomic measures in many developing countries has resulted in growing inequalities within societies, erosion of health and educational systems, and increasing levels of poverty. It is well known that, in many instances, these macroeconomic policies have even reversed years of gains in the social sector and have reduced the living standards of many segments of the population.

Often social measures have had to be put in place to reduce these impacts, attending to the immediate undesired effects derived from the implementation of certain macroeconomic measures.

Madam Chairperson,

While the G-77 and China acknowledge the responsibility of national Governments in the formulation of integrated economic and social policies, we believe that a supportive international environment should promote the efforts of developing countries in these endeavours. Economic policies should incorporate broad social development objectives, which would contribute not only towards the realisation of social goals, but also in the success of macroeconomic policies themselves.

There are encouraging signs that the international financial institutions are trying to work towards the goal of integrating economic and social policies when designing structural adjustment programmes.

In this context, the Group of 77 and China finds that mechanisms such as the Structural Adjustment Participatory Review Initiative (SAPRI), under the auspices of the World Bank, are an interesting idea from which lessons can be drawn. However, participation of Governments in this type of mechanism should be ensured and encouraged, bearing in mind their fundamental role in implementing macroeconomic and social policies.

We also await with interest the methodology for ex ante social and environmental impact analysis of structural adjustment programmes being prepared by the World Bank and the International Monetary Fund.

Madam Chairperson,

To conclude, let me reiterate to you the readiness of the Group of 77 and China to work closely and cooperatively with you and the Bureau, as well as with our negotiating partners, in order to produce a successful outcome in our deliberations of this year.

Thank you, Madam Chairpersons

For the full text of this statement, go to: www.g77.org/Speeches/021202.htm

1 United Nations Programme Of Action of the World Summit for Social Development, Chapter 1, paragraph 7.