Reports on UNCTAD Meetings - Day 1

The public Symposium “Global economic crisis and development – the way forward”, organized by the United Nations Conference on Trade and Development  in cooperation with the United Nations Non-Governmental Liaison Service (NGLS), opened today.

The different international civil society networks, organizations, platforms, trade-unions that work on the issues of  debt cancellation, women’s rights, the World Social Forum, climate change, health care, children’s rights, etc. have gathered in the Palais des Nations, Geneva.

The voices of the people demonstrating for humanitarian response to the crisis outside the UN space drifted away in the spring drizzle. In the room prepared for the event, civil society documents and statements were delivered to the attending representatives.

The President of UNCTAD Board, Dian Trianshah Djani, chaired the panel from 10 am to 1:15 pm.

Most presentations emphasized on:

Characteristics of the crisis

• The crisis (or crises) that erupted in 2008 had been brewing in a model set in motion 30 years ago.
• It is a systemic crisis, that is to say, it affects the whole society system and the relationships between market, society and the State (nation).
• Finances supplanted production and real economy.
• The crisis affects the foundations of the present society so society has to be called for and its opinions and proposals must be heard
• UNCTAD and other supranational organizations warned about the problems that were brewing and they were not heard
• The financial crisis stemmed from usury practiced by rich countries’ banks but it affects the poor and poorest in emerging countries, low-income countries, developing countries, impoverished countries or whatever these countries are called depending on the aspect taken into account.
• The fact that the G20 included this issue in its debates and decisions of April 2009 is interesting. However, the rescue plan of banks is a great hypocrisy as the flow of funds allocated to development decreases, regardless of the signed commitments by Heads of States of wealthy countries.

Relevant aspects to consider in the solution to the crisis

• A new paradigm that redirects the role of economy to restore the importance of productivity is needed
• The impacts on vulnerable population sectors have been clearly underlined, and the negative effects on women and children in particular.
• A renewed role of National States -this time within the framework of a globalized process that did not exist before; this process is demanded to be inclusive.
• Inclusion, reduction and disappearance of disparities between countries. Return to their strategic plans and the protection of their strategic sectors which were dismantled by the formulas of international financial organizations (International Monetary Fund).
• Build up a new financial morality and benefit-generation management: national and international rules and regulations
• Definition of a new association among countries that would lead us to the reform of the United Nations, its bodies and to a new financial architecture.
• A gender-sensitive global package (the additional US$ 1.1 trillion programme established by the G20 in London) for impoverished countries.
• Ensure a progressive increase of financing for development.
• Economy predictions must go beyond econometric mathematic models and must study permanently the qualitative aspects of human beings’ expectations and patterns of conduct in resource management. Both rational and irrational aspects should be taken into account.
• It is estimated that for each year of crisis, four or five years are needed for the measures taken to overcome the crisis to produce any results. These crises are estimated to last until 2011 and unemployment rates are expected to increase and surpass the 14 million people who lost their jobs in 2008.
• We should not let ourselves be dazzled by the apparent improvement of the stock market which reacted to the recent funds injection in rich countries’ economies.
• Increase employment, ensuring that a good percentage of it is directed to women.
• Improve social security systems. 24% of workers are estimated to be poorly insured due to the last employment flexibilization policies.

Controversy

• Who would lead this process: G20? (which has already given a first step in this area?)
• United Nations as the most credible actor? There is no defined consensus on the issue.

Those were some of the elements of the first day of the symposium in Geneva.
 
 Luisa Cruz Hefti, GCAP Feminist Task Force