Statement on behalf of the European Union at the ECOSOC Substantive Session, Coordination Segment, "Sustained economic growth for social development, including poverty eradication and hunger" in Geneva on 6 July 2006
Statement by Ms. Anneli Vuorinen, Deputy Director General, Ministry for Foreign Affairs, Finland, on behalf of the European Union
Mr. President,
I have the honour to speak on behalf of the European Union. The Acceding Countries Bulgaria and Romania, the Candidate Countries Turkey, Croatia* and the former Yugoslav Republic of Macedonia , the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina, Serbia as well as Ukraine and the Republic of Moldova align themselves with this declaration.
1. Poverty eradication is the primary and overarching objective of EU's development cooperation and the EU Member States support the implementation of Poverty Reduction Strategies at country level. A priority is given to supporting the efforts of the least developed countries. The European Consensus on Development Policy emphasizes that combating poverty will be successful only if equal importance is given to investing in people, protecting natural resources, securing rural livelihoods and investing in wealth creation.
2. The European Union has adopted a comprehensive strategy to meet the challenges of sustainable development to improve the quality of life and well-being for present and future generations. This includes reconciling economic growth and sound environmental management, promoting social equity and cohesion as well as economic prosperity with high-quality employment for its citizens. Investment in human, social and environmental capital as well as technological innovation are the prerequisites for long-term competitiveness and economic prosperity, social cohesion, quality employment and better environmental protection. We recognise that economic, social and environmental objectives can reinforce each other and should therefore be advanced together.
3. In this framework, the European Union's internal and external policies should be consistent with global sustainable development and the EU's international commitments. Sustainable development concerns relate to all of the external policies of the European Union. To this end, the EU is determined to make significant progress towards meeting the commitments with regard to internationally agreed goals and targets, including the Millennium Development Goals and those deriving from the UN summits in Copenhagen, Monterrey and Johannesburg as well as related processes such as the Doha Development Agenda. The EU is also strongly committed to the Paris Declaration on Aid Harmonisation and increasing aid effectiveness. Increasing the effectiveness, coherence and quality of the EU's multilateral and bilateral development cooperation, and that of its Member States' policies, is an important joint endeavour. The European Union is making efforts to contribute to a better economic environment that takes into account the needs of developing countries. To mention just one example, the EU participates actively in the initiative 'Aid for Trade', which is being developed within the context of the World Trade Organisation.
4. Economic growth is a powerful engine in pulling people out of poverty. But it is important to bear in mind that not just any growth is pro-poor. Unless governments take timely corrective action, economic growth can become lopsided and flawed. Determined efforts are needed to avoid growth that is jobless, ruthless, voiceless, rootless and futureless. Well-managed economic growth can create higher incomes, which help people save, invest and protect themselves when times are hard. Higher family incomes could mean that children can go to school rather than work. And with growth, governments could raise the money they need for public services. But macro-economic policy making has too often been based on the assumption that liberalization, deregulation and privatization alone will create growth, and this growth will somehow automatically generate social cohesion, employment and environmental protection. Experience shows, however, that growth can fail to engage and enhance the capacities and productivities of many of the economic actors, in other words, those of the poorest citizens. How can the mpattern of growth be made sustainable and pro-poor?
5. The EU believes that social development and equity are central to sustaining economic growth over the long term. Social policies cannot be conceived only as an afterthought or an add-on to macroeconomic reforms and growth policies. Economic growth is not an end in itself but a means to reach social goals, such as poverty eradication, that are the basis for its sustainability. Without explicit policies promoting economic and social inclusion, empowerment and social investment, growth and stability would not necessarily result in poverty reduction. Reducing poverty sustainably means ensuring that economic growth today does not come with the cost of environmental failure tomorrow. Poor people are particularly dependant on environmental resources and vulnerable to the consequences of their misuse.
6. For pro poor growth policies to emerge, the poor need to be informed and empowered to participate in the Poverty Reduction Strategies and other policy making processes. These processes have to be accountable to the interests of the poor. The policies, on the other hand, need to create the conditions and remove the barriers to the participation of the poor in the growth process, e.g. by increasing access to land, labour, technology, information and financial and business services, and by investing in basic social services, social protection and infrastructure. Policies need to address the risks and vulnerabilities faced by poor people.
7. A well-functioning state is important for responding to the needs of the poor. Effective pro-poor growth strategies often call for policy and institutional changes. The state needs to provide the opportunity for structured public-private dialogue at various levels, including with the social partners and the broader civil society.
8. Globally and nationally, there is a need to promote interdisciplinary and multi-stakeholder dialogues and research work on economic and social policies in order to better understand the economic and social impacts of policy reforms. Poverty and Social Impact Assessments (PSIAs) and Country Social Analysis (CSAs) are important tools that the World Bank has introduced in country level development cooperation. At country level, capacity building of the ministries and social partners responsible for the social, environmental and employment dimensions of development can help to ensure that all dimensions of sustainable development are taken into account in the national development plans and programmes in a balanced manner. Poverty reduction is a central objective of the EU's development cooperation and the EU Member States support the implementation of Poverty Reduction Strategies at country level. The European Consensus on Development Policy emphasizes that combating poverty will be successful only if equal importance is given to investing in people, protecting natural resources, securing rural livelihoods and investing in wealth creation.
9. Democracy, participation and social accountability are often as important for citizens as GDP-growth. Active employment and labour market policies, as well as social protection, are required. Development policies also have to be able to guide citizens and enterprises towards sustainable production and consumption patterns that limit the harmful consequences of growth for the environment.
10. Citizens are the most valuable economic asset of every nation. Therefore, public investments into the health, education and social protection of women, men and children should not be regarded as costs only, but as the most important investment into the productive capacity and competitiveness of the national economy. The Millennium Development Goals have helped to formulate clearer targets in poverty reduction strategies and national development plans in this respect.
11. Poverty often has a female face. Women face particular barriers concerning assets, access and participation in the growth process, with serious implications for the ability of growth to be pro-poor. Thus poverty eradication and social development are closely linked to eliminating gender discrimination. The EU calls for the UN and the international community to make further efforts to incorporate a gender perspective into all policies and programmes that are related to poverty reduction and hunger.
12. Well-functioning and accessible markets are important for pro-poor growth. Market failure and market exclusion hurt the poor disproportionately and programmes are needed to ensure that markets that matter for the livelihoods of the poor work better. Generally, in making growth pro-poor, it is essential that all men and women, including their enterprises, cooperatives and communities, can participate in, contribute to and benefit from that economic development.
Mr. Chairman,
13. The UN system needs to develop more flexible, coherent and integrated policies and working practices in order to respond to theexisting challenges. The ECOSOC should have a leading role in this effort and strive for thematic and policy coherence in the UN-system.
14. In order to serve their purpose, the functional commissions and various UN-agencies and secretariats have to be driven by one common vision. Instead of fragmentation and mutual competition, the various parts of the UN-system have to be so disciplined, encouraged and empowered that they will all be able to make their maximum contribution towards achieving the common goals.
15. It is impossible to promote just one dimension of sustainable development at a time as the social, economic and environmental dimensions of sustainable development are interlinked and mutually dependent. Within the UN-system it should be equally clear that successful promotion of the goals of one functional commission or UN-agency will not be possible without interlinked and mutually supportive progress in the fields of the other functional commissions and UN-agencies.
Thank you.