Professional Documents
Culture Documents
S O C I A L W A T C H R E P O R T 2 0 0 9
SENEGAL: The environmental crisis resulting from CAMBODIA: More than 90% of the workers laid off
global warming has reduced fishing (...) Fishing is were women from rural communities.
an important source of resources for the primary
S O C I A L W A T C H R E P O R T 2 0 0 9
sector and one of the main sources of protein for
the population. CANADA: ... women are over-represented in part-
time and precarious work and are often the first to
be laid off. R E P O R T 2 0 0 9
DEVELOPING COUNTRIES: ... the poor spend upwards
of 50% of their income on food – the poorest spend
80% or more. The increase in food prices has GHANA: Initial damage has included decreasing
increased not just poverty, but also hunger. exports and remittances from abroad and galloping
devaluation.
Social Watch is an international network of citizens’ organizations struggling to eradicate poverty and
the causes of poverty, to ensure an equitable distribution of wealth and the realization of human rights.
We are committed to social, economic and gender justice, and we emphasize the right of all people
ISSN: 0797-9231
not to be poor.
0797-9231
A c i t i z e ns ´ g l o b a l p r o g r e ss r e p o r t
Social Watch holds governments, the UN system and international organizations accountable for the
fulfilment of national, regional and international commitments to eradicate poverty. o n p o v e r t y e r a d i c a t i o n an d g e n d e r e q ui t y
SW2009 ESP v02.indb 2 8/27/09 7:31:31 PM
SOCIAL WATCH REPORT 2009
Coordinating Committee
Emily Joy Sikazwe (Zambia) and Jens Martens (Germany), co-chairs. Nancy Baroni (Canada), Leonor Briones (Philippines), Anas El Hasnaoui
(Morocco), Javier Gómez (Bolivia), Arjun Karki (Nepal), Thida Khus (Cambodia), Edward Oyugi (Kenya), Iara Pietricovsky (Brazil), Ziad Abdel
Samad (Lebanon), Areli Sandoval (Mexico), Alexandra Spieldoch (United States), Genoveva Tisheva (Bulgaria), Mirjam van Reisen (European
Union) and Roberto Bissio (Uruguay, ex officio).
The International Secretariat of Social Watch is based in Montevideo, Uruguay, hosted by the Third World Institute (ITeM).
Editor-in-Chief
Roberto Bissio
Editor
Amir Hamed
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Ana Zeballos
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Advocacy Coordinator
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Translation
Soledad Bervejillo, Marcela Dutra, Bachir El Omari, Ana Fostik, Susana Ibarburu, Emilie Jung,
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Technical support
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SW National Coalition
Social Watch V
Social Watch IX
X Social Watch
From its number 0, published in 1996, to this 60 countries around the world, and membership In addition to national coalitions, the network
present issue, the 14th, the Social Watch Report grows each year. is structured around three bodies: the General
has brought to light more than 600 reports from Assembly, the Coordinating Committee and the
civil society organizations, all of them sharing the A flexible network International Secretariat. In recent years, some
aim of reminding governments of their commit- As the “meeting place” has grown, several aspects regional and sub-regional coordination structures
ments and tracking their implementation, both of it have evolved, but the founding ideas and ob- were established as a space for articulation–not as
country by country and at the international level. jectives remain. In preparing for their participation a necessary intermediate body to link the national
The present issue, featuring contributions in the Copenhagen Social Summit, civil society with the global.
from 61 national Social Watch coalitions, sustains organizations adopted flexible and ad hoc ways The Social Watch network is not an incor-
the flame that brought the network into existence in of organizing as a network. No formal governing porated entity and it did not start by drafting its
1995: the need to generate tools and strategies to structure or steering committee was created and governing bylaws. Instead, a short Memorandum
rectify the lack of accountability mechanisms and no stable coordinating group was established. of Understanding between national groups and
ensure compliance with international commitments Non-governmental organizations (NGOs) pre- the network became the basic framework estab-
related to social policies and development goals. ferred to inform each other and coordinate ac- lishing mutual expectations, respecting both the
In the decade Social Watch was created, a tivities in horizontal open spaces, an approach autonomy of national coalitions and democratic
series of high-level United Nations conferences, that some analysts regard as a forerunner of the horizontal decision-making. A key principle that
starting with the ‘Children’s Summit’ in 1990 and organizational format later adopted by the World distinguishes Social Watch from other interna-
ending with the Millennium Summit in 2000, rede- Social Forum. Many of the NGOs that took part in tional civil society networks is that no central body
fined the global social agenda. In 1995, the Social the Social Summit later formed the backbone of provides funds for its members. These operational
Summit (Copenhagen) and the Women’s Confer- Social Watch. As a result, the structure and func- principles help avoid the tensions associated with
ence (Beijing) defined, for the first time, the eradi- tioning of the network preserves much of original donor/recipient relationships within the network –
cation of poverty and gender equality as common flexibility and openness. since there aren’t any – and also the loss of energy
universal objectives, setting concrete targets and
timelines to achieve the goal vaguely formulated in
1946 in the UN Charter as “dignity for all”. To pro-
mote the political will needed for those promises Memorandum of Understanding between
to become a reality, the Social Watch network was
created as a “meeting place for non-governmental national groups and the Social Watch network
organizations concerned with social development
1. Coalitions must be based in the country and be active in social development issues in that
and gender discrimination” (Social Watch No. 0,
country (not exclusively as academics or consultants).
1996), by a group of civil society organizations.
Thus, the Social Watch Report was formulat- 2. Their basic commitment to the international network is to provide a national report, with their
ed as a powerful tool for the presentation of inter- own conclusions and determination of priorities, to be included in the annual publication.
nationally available statistical information and for
3. They are expected to use their national report and the global report in lobbying activities at
reporting on qualitative aspects of the issues ad-
a national level.
dressed through analyses by social organizations
working at a national level. A yearly publication, 4. They must be open to the incorporation of other organizations, work actively to broaden
the Report is devoted to progress and setbacks in awareness of Social Watch and encourage the participation of other organizations.
the struggle against poverty and for gender equal-
5. They are responsible for raising funds for their activities. National coalitions are not dependent
ity, two largely overlapping objectives, since the
absolute majority of the persons living in poverty for funds on, or financially accountable to, the Secretariat or any other international Social
are women. Watch entity.
The Social Watch yearly reports, while add- 6. Each coalition determines its own organizational structure.
ing an international dimension to local efforts and
7. Social Watch membership and the exercise of governmental functions are absolutely in-
campaigns, became the first sustained monitoring
initiative on social development and gender equity compatible.
at a national level, and the first to combine both in 8. Cooperation with other national platforms should be encouraged at sub-regional, regional
one international overview. and global levels.
The report Nº0, published in 1996, featured
contributions from 13 organizations; since then, The Memorandum of Understanding was adopted during the 1st General Assembly, Rome, 2000. Available from:
the network has been steadily rising. Currently, <www.socialwatch.org/en/acercaDe/asambleaRoma.htm>.
Social Watch has members (“watchers”) in over
Social Watch XI
XI tema
3 Social Watch (2009) Who Pays? The Global Crisis and What
Needs to Be Done, available from:<www.socialwatch.org/en/
avancesyRetrocesos/poster09/index.htm>.
4 The first Occasional Paper by Mirjam Van Reisen, The Lion’s
Teeth, examines the political context in which Social Watch
was created. The second, by Ana María Arteaga, Control
Ciudadano desde la base, analyzes the democratization of
international human rights instruments experience in Chile in
1997. The third, a compilation by Patricia Garcé and Roberto
Bissio, introduces the experience of monitoring Copenhagen
goals through the concrete example of Social Watch. Papers
4 and 5, coordinated by the Social Watch Social Sciences
Research Team, address poverty and inequality in Latin 5 Social Watch (2009) Learning from Successful Experiences:
America and the links between poverty and human rights. Summary of the Análisis of Four Case Studies from the
Occasional Papers available from: <www.socialwatch.org/en/ Social Watch National Coalitions, available from: <www.
informeImpreso/cuadernosOcasionales.htm>. socialwatch.org/en/informeImpreso/publicacion09.html>.
Bahrain............................................................................................. 54
Bangladesh...................................................................................... 56
THEMATIC REPORTS
Belgium ............................................................................................ 58
A human rights-based response
Benin.................................................................................................. 60
to the financial and economic crisis................................................... 13
Aldo Caliari, Center of Concern Bolivia............................................................................................... 62
Italy.................................................................................................. 106
Slovakia.......................................................................................... 148
Slovenia.......................................................................................... 150
Somalia........................................................................................... 152
Spain................................................................................................ 154
Tanzania.......................................................................................... 156
Thailand.......................................................................................... 158
Uganda............................................................................................ 160
Venezuela....................................................................................... 164
Vietnam........................................................................................... 166
Yemen............................................................................................... 168
Zambia.............................................................................................. 170
Social Watch 3
calculated from global aggregates, not the results growth of the grey economy will affect women
Roberto Bissio
Social Watch International Secretariat of direct observation from the ground. The accu- more than men, as they are more often engaged
mulation of findings from rich and poor countries in low paid jobs, especially in the private service
of all continents show remarkable similarities and sector (e.g. in retail).”
also a diversity of situations that enriches the pic- In France the global crisis has had a direct
The bankruptcy of the Lehman Brothers investment ture available so far, makes it even more dramatic impact on the people, as it has in all the developed
bank in September 2008 is seen by many as the and challenges decision-makers with the urgency countries where it began. The most obvious effects
tipping point in a series of collapses in the bank- of implementing policies that put people first. It is have been rising unemployment and increased social
ing system that spread like prairie fire through the not just a matter of social justice, but also of sound exclusion, and “sectors that not long ago were in a
financial markets and stock exchanges of the richest economic policy, as a brief overview of the country comfortable situation are even suffering food short-
economies of the world. Since then, the word “crisis” reports demonstrates. ages” according to the French Social Watch report.
has dominated the media as well as political discus- Similarly, the German Government’s crisis manage-
sion worldwide. The Great Depression that shook the Innocent bystanders ment strategy does not include social or indeed eco-
world in the early 1930s is frequently cited as the only In capitalist finances, like in a casino, the riskier logical goals. Its stimulus packages and tax cuts are
precedent and well-known historian Eric Hobsbawn the bets the higher the earnings. But risky bets also socially inequitable; layoffs and the rise in part-time
has compared the fall of Wall Street to the fall of the means frequent losses. In that logic, the scandal workers are revealing the ugly face of deregulation.
Berlin Wall. Regarded as the greatest historian of is not the bankruptcy of Lehman Brothers, but the Poverty is becoming “massive” in both Eastern and
the twentieth century, Hobsbaum said, “the totally decision by US president George W. Bush and his Western extremes of Europe, report the Social Watch
unrestricted and uncontrolled free-market capital- Treasury Secretary Hank Paulson to spend hun- coalitions from Portugal and Moldova.
ist economy (…) that captured the world and its dreds of billions of dollars of taxpayers’ money to In the Czech Republic, “the global economic
governments in the years since Margaret Thatcher rescue failed banks, such as Goldman Sachs, of crisis (...) is lowering the standard of living” mainly
and President Reagan (…) is breaking down before which Paulson was Chief Executive Officer before because of increased unemployment. The Czech
our eyes”, the same as “the centrally state-planned joining the Government, and insurance groups, Social Watch coalition challenges the official unem-
economies of the Soviet type broke down twenty such as A.I.G. When President Yayi Boni of Benin, ployment figure, arguing that 178,000 people who
years ago”.1 elected owing to his solid reputation as a banker, were considered to be not actively seeking employ-
The dust has not settled yet. While politically learned of this decision, he wondered publicly ment were left out and that adding this group would
connected US investment banks such as Gold- where the trillions of dollars of rescue funds would have pushed the unemployment rate 50% higher.
man Sachs, have started to make profits again and come from and concluded that the poor would end Foreign workers, particularly those from Asia, are
reward their executives with multimillion dollar up paying for the crisis. The Belgian report for So- found to be those suffering the most in the Czech
bonuses, unemployment is still growing in most of cial Watch agrees: when the shares of banks and Republic, but also the Social Watch coalitions in
the so called “advanced” economies and the tsu- the principal enterprises in the country collapsed, Malta, Slovakia and Cyprus report on rising difficul-
nami wave of the crisis is only now, one year after the Belgian Government went to the rescue of the ties for foreigners and even cases of xenophobia.
the earthquake at the financial epicenter, starting to banks and provided deposit guarantees. The crisis At the other end, economic difficulties derived
hit more distant shores. In Bolivia, for example, the is still causing unemployment to rise, while the cost from diminishing remittances by exported workers
local Social Watch coalition in its contribution for of the bank rescue is making itself felt in the drastic are reported from the Philippines, Morocco, Mex-
this report writes that “as a cycle of world growth increase of public debt, with serious repercussions ico, Nicaragua and many other places. In the case
roared past (previous to the crisis), Bolivia stood in the provision of social security. In Benin itself, of Egypt “the drop in remittances and the return of
by and watched, unable to take advantage of the the local Social Watch coalition has discovered that émigrés has put pressure on a labour market badly
opportunity to establish its own rhythm of devel- in its efforts to stimulate the economy the State is prepared to absorb more unemployed workers.” In
opment. Its economy was just beginning to pick competing with the poor for scarce construction El Salvador, “more than 300,000 families − 26.7%
up speed, when the global boom began to stall and materials and grassroots organizations are mobi- of the population − receive money from abroad,
then go into reverse.” lizing against the rising cost of living. which helps defray the cost of food, clothing and
The findings from civil society organizations in Many of the national Social Watch reports basic services.” Flows of remittances almost
over 60 countries are included in this Social Watch show how women tend to suffer the impact of the stopped growing in 2008 and it is estimated that
report, the first global bottom-up report on the so- crisis disproportionately. In the words of the Polish they will start falling in 2009.
cial impact of the crisis. UN agencies and other in- coalition, “the decrease in family incomes due to The speed at which countries get affected by
stitutions have reported estimates of the millions of the economic crisis might cause pauperization of the tsunami is not related to its physical distance
jobs that will be lost worldwide, the millions more whole social groups, particularly among the lower to Wall Street, of course, but with how its economy
people who will be thrown into poverty and the ad- and middle classes. It is very likely that this will in is linked to those at the epicenter. In Mozambique,
ditional number of children likely to die as a result turn have a more significant impact on women, for example, which is one of the poorest countries
of the inability of the markets to solve the problems since they traditionally are the main responsi- in the world, the privately own Mozambique In-
they created (contrary to what was the prevailing ble for family well-being (this is particularly true ternational Bank (Millennium Bim) has published
credo until last year). Valuable as these are, they are among the lower income groups). According to a report forecasting that the nation’s economy
some analysts, crises amplify the grey (informal) will shrink because of negative growth in donor
sector in the Polish economy as many, especially countries that finance more than half the national
1 See: “Socialism has failed. Now capitalism is bankrupt. So
small entrepreneurs try to minimize labour costs budget, and those that make foreign direct invest-
what comes next?” by Eric Hobsbawm, published by The
Guardian on April 10, 2009. Available from: <www.guardian. and avoid taxation and other costs associated with ments. Social Watch-Mozambique reports that
co.uk>. formal employment. It seems very likely that the prices for aluminum, tobacco, sugar, tea, chest-
6 Social Watch
Social Watch 7
“
and financial clean-up of public economic institu-
Three million people in New York are food insecure and the purchasing of cheap un-
tions by erasing the debts owed them by viable
healthy food has risen since the financial crisis in 2008. Many neighborhoods in Brooklyn
companies. The Government has given responsi-
and the Bronx have few supermarkets with fresh food. One solution to this problem is bility for supervising these clean-up measures to
Community Supported Agriculture, which brings together family farms, which produce an inter-ministerial working group for the finance
organic agriculture with the consumers, thus helping to increase inner-city access to industry and investment promotion among small
healthy food.
” Nadia Johnson (WEDO and Just Food, New York)
and medium enterprises.”
8 Social Watch
Social Watch 9
Aldo Caliari1
At the same time, it is not hard to find support nutritional and health status among children who
Center of Concern (COC) for the notion that the enjoyment of human rights will suffer from reduced (or lower quality) food con-
be significantly affected by the crisis everywhere. For sumption can be irreversible, and estimates suggest
instance, the dramatic decline in aggregate demand that the food crisis has already increased the number
What started as a crisis in the sub-prime mortgage globally has resulted in extensive unemployment and of people suffering from malnutrition by 44 million.8
sector in the US, in the summer of 2007, has become destruction of livelihoods. After years of declining The effects of the crisis are also likely to lead to
an economic crisis of global dimensions that has been unemployment, some 20 million more people will increasing inequality. The gap between richer and
called the worst crisis since the Great Depression. be unemployed in 2009 than in 2007, according to poorer households that has been widening since the
The magnitude of the crisis is shedding an forecasts by the ILO.3 Some 50 million people could 1990s will get bigger. The income gap between the
altogether new light on the consequences of the be put out of work if the crisis matches the magni- top and bottom 10% of wage earners had increased
traditional approach to human rights and the regula- tude of unemployment in the 1990s.4 These general in 70% of a sample of countries investigated in an
tion of finance. Under this paradigm, human rights figures hide the greater impacts on women and their ILO report published last year.9
advocates are told that matters of financial regulation children, the poor, indigenous groups, ethnic minori- If social unrest and public expressions of des-
are entirely technical and to be left to the experts, ties and migrant workers. Alongside increasing un- peration and frustration are met, as they have already
while human rights policy and concerns should employment, social protection – conditional in many been in some countries, with violent repression by
either be addressed independently from financial countries on having a job – is declining. For those government forces, then civil and political rights will
regulatory issues or simply circumscribed by what- who still have a job, more unemployment means also be threatened by the economic crisis. The rise
ever approach financial experts decide to take on greater pressure on their salaries and social cover- in xenophobic or otherwise discriminatory senti-
such issues. However, the crisis has revealed the age. Social security for senior citizens is also be- ments that is being seen in several places could also
deficiencies of this approach and is emboldening a ing significantly affected by the crisis, with pension jeopardize the rights of migrant workers and minority
human rights-based critique of financial regulation. funds registering losses of close to 50% in some groups, who are most vulnerable to discrimination.
While there have been many explanations about the cases.5 The shift to fewer publicly funded pension Looking at these impacts, and accepting the
sources of the crisis, there is broad agreement on systems of the last decades magnifies these impacts. consensus about the sources of the crisis, one has
the importance of a number of failures due to lax In turn, the public revenues needed to bolster the re- to conclude that choices made on financial regula-
regulation and supervision of financial markets, the quired support for social and pension coverage have tion have tangible consequences for the enjoyment
actors that operate in them and the instruments with fallen substantially, limiting government options. of rights. The reverse is also true: an approach that
which they operate.2 Poverty is expected to increase worldwide by as seeks to uphold human rights standards independ-
much as 53 million people.6 Even this figure may be ently of addressing the impacts of financial policy
optimistic as it is based on the World Bank’s widely and regulatory choices will prove to be woefully in-
questioned definition of poverty and is likely to un- sufficient and ineffective.
derstate the real number of the poor.7 The decline in The evidence presented by this crisis, however,
is no different from that revealed by other financial
1 An earlier draft of this article served as the basis for a
statement issued by the International Network for Economic, 3 ILO. “The Financial and Economic Crisis: A Decent Work
crises that have periodically hit different parts of the
Social and Cultural Rights (ESCR-Net) in consultation with Response.” Discussion Paper, 2009 GB.304/ESP/2. world in the last century, notably East Asia in the late
a large number of human rights organizations. The author is 4 Ibid. 1990s. They all bring extreme hardships and suffer-
grateful to Nicolas Lusiani, who helped finalize the statement, ing to ordinary citizens, especially the most vulner-
as well as many human rights organizations that commented 5 World Bank. The Financial Crisis and Mandatory Pension
Systems for Developing Countries. Washington, DC: World able and marginalized, while those who profited from
on it and provided inputs. Responsibility for any mistakes is,
of course, solely that of the author. Bank. financial speculation are not held to account for their
2 For a detailed survey of the main official sources (IMF, Bank 6 World Bank News, 12 February 2009. actions. For instance, the last few years have seen
of International Settlements, Financial Stability Forum), 7 The World Bank’s arbitrary classification of people living not only a continuation of trends towards increasing
showing the remarkable similarity in understanding the below USD 2 a day as poor, and those living below USD 1 income inequality but also a reported increase in the
proximate causes of the financial crisis, see Caliari (2009), a day as extremely poor, has been repeatedly criticized as
“Assessing Global Regulatory Impacts of the U.S. Subprime failing to capture the reality of poverty in different countries
Mortgage Meltdown: International Banking Supervision and with very different poverty lines, and the basket of goods
the Regulation of Credit Rating Agencies”, paper prepared for these incomes could purchase in different countries. In
the symposium on Financial Markets and Systemic Risk: The 2008, the Bank updated its long-outdated purchasing power 8 World Bank. Swimming Against the Tide: How Developing
Global Repercussions of the U.S. Subprime Mortgage parity (PPP) calculations; on this basis the number of people Countries Are Coping with the Global Crisis. Washington, DC:
Meltdown, co-organized by the Journal of Transnational the Bank defines as extremely poor, now those living under World Bank. 2009.
Law and Contemporary Problems at the University of Iowa USD 1.25 a day, was revised upwards to 1.4 billion, almost 9 ILO. World of Work Report 2008: Income Inequalities in the
College of Law, in conjunction with the University of Iowa 50% more than the previous estimate of 1 billion (see UN Age of Financial Globalization. Geneva: International Labour
Center for International Finance and Development. Millennium Development Goals Report 2009: 4-7). Organization (ILO).
“
resentation and transparency in policy-making to
African-American people and indigenous peoples have a common history of exploitation
address economic policies as they relate to develop-
and conquest, and are disproportionately suffering the impacts of the crisis. Our current
ment priorities beyond the narrow purview of finance
or economic ministries. American Empire was built on the so-called American dream, but we see that stolen land
and stolen labor was also used to construct this country, the wealthiest the world has
Banking and financial sector regulation ever known. From the outset, financial institutions aided and abetted profiteers seeking
A striking aspect of the crisis is the extent to which to build empire by any means necessary. We must reject the neoliberal theology and
financial entities managed to transfer the burden of
their irresponsible risk-taking to the most vulnerable
in society, and it was specific government policies
construct more progressive theological theories.
”
Jean Rice (Picture the Homeless, New York)
designed to deregulate the financial system as a
whole that enabled this. Governments – domesti-
cally and in concert with others – must therefore schemes. Hedge funds have been allowed to be- of responsibility in serving the interests of society
adopt measures to protect the human rights of their come, in many countries, the mainstream mecha- as a whole. They must balance the need to achieve
peoples through robust banking and financial sector nism for ordinary citizens to hold their savings, plac- stable and low inflation with their obligations to battle
regulation. They must also strengthen accountability ing citizens’ access to social security at risk. Hedge income inequalities and stabilize peoples’ jobs and
and the rule of law by reining in criminal behaviour. funds and private equity funds have also forced sud- livelihoods through various credit and supervisory
Where certain acts are not currently seen as crimes den unemployment and other labour rights viola- instruments.
(e.g., “tax evasion” in certain countries) or as offenc- tions through their undue influence on the decision-
es that triggers legal liability, then appropriate legis- making processes in the restructuring of companies The crisis and human rights in the South
lation should be passed and enforced. Furthermore, around the world. Extraordinary profits were also The extent to which the crisis compromises the
governments must take serious action to ensure that fostered by leverage strategies that relied on tax ex- achievement of human rights commitments may be
those individuals and countries affected through no emptions on debt financing, thereby putting sources more dramatically exposed in the South. Developing
fault of their own find remedy. of public revenue at risk. This has limited the fiscal countries that for a long time were told they must
Banks are the most regulated of all financial expansion possibilities of many governments just at rely on export-led growth and free market policies
sector entities. Yet their behaviour has increasingly the time they need it most to spur job creation and are now suffering the most due to the drop in ex-
been ruled by principles of supervision that rely on strengthen social protection measures. ternal demand caused by the crisis. They should be
their own internal mechanisms for risk management, Recognizing that the activities of these finan- allowed special flexibility, so they can fully take into
rather than externally developed standards shaped by cial actors have profound, measurable impacts on account their human rights obligations as they de-
national supervisors. In response to pressure from human rights, the state must not abdicate its duty velop trade policies that can deal with the crisis and
industrialized countries, many poor countries have to protect. Governments should work together to forestall export-related vulnerabilities in the future.
progressively adopted these same principles, partly adopt all necessary measures to prevent hedge The export profile and strategy chosen by a country,
lured by the possibility of attracting international funds, private equity funds, derivative instruments and its balance between exports and domestic mar-
banks. They also acceded, for the same reason, to and credit rating agencies from adversely affecting ket needs, should be carefully guided by its human
the unrestricted movement of capital by such banks. human rights. rights obligations, in particular the need to ensure
Deregulation to attract foreign banks has often not The liberalization of capital and the creation of non-discrimination and progressive realization of
had the desired payoffs, however. Empirical evidence impenetrable tax havens have made it more difficult rights.
shows no link between liberalized capital accounts to engage in progressive taxation of capital flows, Debt levels are also set to rise in developing
and increased economic growth. Access to credit, and further eroded the tax base in countries of both countries. Not only will the crisis worsen their trade
especially by the most marginalized groups, has North and South by facilitating the shifting of profits and financial situations, making more borrowing
shown little improvement, while large international from where they are earned to other low- or zero- necessary, but also an effective crisis response that
banks have tended to eliminate the domestic banking tax regimes. This has negative outcomes on public does not resort to deficit spending to expedite re-
sector on which the neediest depend. Today, those revenue, which is critical for governments to be able covery is likely to undermine minimum core levels
countries with the greatest exposure to and depen to meet their human rights obligations. Governments of well-being. However the human rights conse-
dence on foreign banks are the ones worst affected must live up to their duties toward their people by quences and impacts for the future of borrowing
by the financial crisis, as these institutions retreat protecting public revenue in a transparent and ac- cannot be ignored. Part of the increase in debt is
back to their home countries and refuse to lend in countable way, closing tax havens and taking appro- due to the proliferation of rapid lines of credit by
now fragile economies. priate measures to control the movement of capital multilateral financial institutions including the World
Reforms in the banking sector should include and strengthen fiscal accounts. Bank, purportedly to help developing countries cope
the space for national governments to regulate the Central banks for their part are public agencies with the crisis. These lines of credit are disbursing
services provided by any bank in the interest of en- and, as part of the government, have obligations vast amounts of money with little or no opportunity
suring broad access to credit and other key social to human rights. The principle of “central bank in- for citizen control and public accountability, with real
functions. If state-provided banking services are dependence” has too often meant independence risks of completely bypassing social and environ-
considered a better option for guaranteeing rights, from social and human rights interests. It has not mental safeguards. Part of the increase in debt levels
they should be fully pursued. meant, however, freedom from interference by pri- comes as a result of countries having to refinance
Hedge funds, private equity funds and credit vate financial interest groups. Central banks must debt in stressed private capital markets where funds
rating agencies have been left to self-regulatory recognize that independence does not mean lack have become scarce, as developing countries try in
Nancy Baroni
The Women’s Working Group on Financing for The just-released US Department of State re-
Canadian Feminist Alliance for International Action Development has noted that the financial crisis offers port on human trafficking 3 notes that the global
Mirjana Dokmanovic, PhD a critical opportunity to change the global financial economic crisis is contributing to labour and sex
Association Technology and Society, architecture to adhere to rights-based and equitable trafficking, as increasing unemployment and pov-
Serbia and Women in Development Europe (WIDE)
principles. The group calls for an alternative to the erty make people more vulnerable to traffickers
Genoveva Tisheva
Bulgarian Gender Research Foundation G-20 decision to replenish the International Monetary and there is a growing demand for cheap goods
and Bulgarian-European Partnership Association Fund. Such a move would only perpetuate failed neo- and services. The report predicts that the economic
Emily Sikazwe liberal economic policies; reinforce past structural in- crisis will push more businesses underground in
Women for Change
equalities; and increase the indebtedness of develop- order to avoid taxes and labour protection laws
ing countries. This scenario continues the antiquated while hiring non-union labour, which will increase
and unjust approach of a few rich nations working the use of forced, cheap and child labour by cash-
Gender inequality is not a new phenomenon; how- on behalf of many nations of varying circumstances. strapped multinational companies.
ever, the current economic crisis has exacerbated The Women’s Working Group calls for solutions and According to Amnesty International, the eco-
gender inequalities throughout the world. As the remedies for the financial crisis coming from a broad, nomic crisis is aggravating existing human rights
global recession persists, bailouts and equity loans consultative, inclusive process, not a process housed problems and some very important issues are not
are being negotiated between governments and pri- in the IMF, but in the United Nations, where women’s getting the attention and resources they need, in-
vate industry; public services are increasingly be- human rights are enshrined and where each member cluding poverty, reproductive rights and violence
ing privatized to “protect” government coffers; and state has a voice at the table.2 against women. Governments are investing in set-
corporate taxes are being cut to benefit corporations Government approaches to addressing the ting the market straight again, but the market is not
and the wealthy. In all of this, it is increasingly clear economic and financial crisis are not, for the most going to address human rights problems. In the past
that women stand to be profoundly disadvantaged part, based on human rights or equality principles. governments used security as a means to undermine
by the global recession and national responses to Many countries in the global North have negotiated human rights, now the economic crisis has produced
the crisis. huge bailouts using public monies to prop up major another imperative for governments, and they are
The UN reports that while men’s job losses industries. Many are also investing in infrastruc- again ignoring human rights.
initially increased faster than women’s, men’s job ture projects, focused primarily on male-dominated The reactions to the economic crisis involve cut-
loss rate is now slowing down, while that for women trades (construction, transport, etc.) rather than backs in financing for gender equality mechanisms
keeps going up. The global unemployment rate for investing in soft infrastructure where women tradi- and the implementation of gender equality legisla-
women could reach as high as 7.4% compared to tionally are the principal beneficiaries (health care, tion, which will jeopardize gender equality legislation
7.0% for men.1 While the financial crisis first hit the child care, income supports, etc.). Unemployment and inevitably reinforce existing gender stereotypes.
US and Europe in the mostly male-dominated fi- insurance programmes, where they exist, generally Related to this is the decreased financial support for
nancial and manufacturing sectors, its effects are cover only full-time workers and rarely take into ac- women’s organizations which are an essential part of
starting to take hold in sectors dominated by women, count the part-time workforce in which women are the global women’s movement.
namely the service industry and retail trade. traditionally over-represented. Reports of violence Some regional trends in the gendered impact
Women in the developing world are particularly against women are increasing; lacking economic of the economic crisis were identified at a Euro-
disadvantaged due to the financial crisis. Their weak- and social security, women have a more difficult time pean Commission conference on “Equality between
er control over property and resources, over-repre- escaping violent situations. Men and Women in Times of Change” (15-16 June
sentation in piece-rate or vulnerable employment, 2009). The problems identified are similar to the
lower earnings and lower levels of social protection global trends: in Europe, women are overrepre-
make them, and their children, more vulnerable to 2 The Women’s Working Group on Financing for development sented in insecure, part-time and short-term jobs,
is coordinated by Development Alternatives with Women
the financial crisis. As a result, women are in a much in large part due to their disproportionate house-
for a New Era (DAWN) and includes the following networks/
weaker social and economic position than men in organizations: African Women’s Development and hold and care-giving responsibilities. Despite the
terms of their ability to cope with the recession. Communication Network (FEMNET), Arab NGO Network EU standards on gender equality in employment,
Women may have to work longer hours and take for Development (ANND), Association for Women’s Rights the problems of unequal pay and need to balance
on extra forms of employment while maintaining in Development (AWID), Feminist Task Force-Global Call to work with family life remain. Although the crisis
Action against Poverty (FTF-GCAP), Global Policy Forum
primary household care responsibilities. (GPF), International Council for Adult Education (ICAE),
has affected both women and men in Europe, it has
International Gender and Trade Network (IGTN), International affected them differently.
Trade Union Confederation (ITUC), Network for Women’s
Rights in Ghana (NETRIGHT), Red de Educación Popular
entre Mujeres para America Latina y el Caribe (REPEM), Third
World Network-Africa (TWN-Africa), Women’s Environment 3 US State Department. Trafficking in Persons Report.
1 See: ILO. Global Employment Trends for Women. Geneva: and Development Organization (WEDO), and Women in Washington, DC, 2009. Available from:
International Labour Office, 2009. Development Europe (WIDE). <www.state.gov/g/tip/rls/tiprpt/2009>.
“ The financial crisis has definitely affected Benin. Today many households can only afford Doha round. Moreover, these measures should be
accompanied by the cancellation of the illegitimate
just one meal a day. Forced marriages have increased, as a way for families to sell their girls debts of developing countries and the creation of a
and to cope with the crisis. It has set back advances made to stop violence against women. debt workout mechanism with the participation of
Gender-based impacts of the crisis are on the rise, for example, girls’ enrollment in schools debtor governments, women’s rights groups and
and their presence in the formal job market is decreasing. Women are the first to lose their other civil society organizations.
”
At the UN High Level Conference on the Global
jobs, and are often left to care for their families without any social assistance.
Financial and Economic Crisis and Its Impact on De-
Sonon Blanche (Social Watch Benín) velopment (24-26 June 2009), the Women’s Work-
ing Group reminded UN Member States that women
cannot wait, and that this is the time to act on funda-
mental reform of the global financial architecture.5
Despite the unanimous call to action by civil society
“ The Bulgarian Government only admitted that Bulgaria was being affected by the crisis in
February of this year. As of now, 44,000 people have lost their jobs due to the crisis, 96%
organizations, the conference outcome document did
not meet expectations. In order to safeguard a fragile
consensus, Member States have shown only weak
of them being women. Many of the affected industries – such as the garment, shoe, food
commitment to reforming the financial architecture,
service, and the public administration – are feminized. The crisis is also having an impact while the central role of the UN (the so-called “G-
in violence against women. Usually there is an average of 17-19 cases per year presented 192”), in economic governance nearly vanished.
to the court in my city; this year we have seen 42 cases so far. In many cases men are Women’s rights advocates welcomed language
abandoning their women and children when she have been fired, so these families now in the document that recognizes women as facing
“greater income insecurity and increased burdens
have to survive on EUR 50 or less per month they receive as unemployment insurance.
of family care” (para. 3) and the recognition that
Many of the women interviewed had been sexually harassed in the work place, and had women and children had been particularly impov-
suffered problems finding work in the formal sector.
”
Milena Kadieva (Gender Research Foundation, Bulgaria)
erished by the crisis (para. 7). The document further
recognized that responses to the crisis need to have
a gender perspective (para. 10), mitigation measures
should take into account gender equality, among
others (para. 21), and leadership appointments in the
Among other things, the conference concluded response to it. The fundamental issue is empowering International Financial Institutions (IFIs) should take
that there is a need for additional measures to en- people living in poverty. The campaign focuses on gender balance into account (para. 49). The big dis-
courage women to participate in the labour market; strengthening their voice along with government appointment was the lack of any strong commitment
equality between women and men must be a key ele- transparency and accountability, so that they can to follow-up. The consistent reference to a “United
ment in the development of anti-crisis measures and hold governments accountable for commitments to Nations Development System” throughout the text
policies; the participation of women in private sector gender equality and women’s rights, and can partici- represents a narrowing of the UN role to a limited
leadership positions should be encouraged; busi- pate in decisions that affect their lives. Special em- arena of humanitarian assistance and development
nesses must adopt family-friendly policies; and it is phasis is put on women’s rights and the participation cooperation. The conclusion of civil society groups
essential to invest in women’s education and train- of women in decisions related to their rights. was that the outcome document represented a clear
ing. Furthermore, the importance of gender equality Besides these initiatives, special attention is to attempt to keep the G-192 out of the global economic
laws and mechanisms in time of crisis was outlined. be payed to the challenges and opportunities that the governance system.
global crisis presents for women’s empowerment Looking forward, however, the Women’s Work-
Strengthening women’s rights and leadership. We are witnessing positive examples ing Group has stressed that women will continue to
during the crisis of women emerging as high level leaders as a result demand economic justice and gender justice within
An important initiative which was recently announced of the global economic and financial crisis, most no- the UN arena, despite the continued resistance of
by the ILO Director-General Juan Somavia is the cre- tably in the case of the new Prime Minister of Iceland the IFIs and the G-20 to put people, instead of profit,
ation of an emergency global jobs pact designed to and the new President of Lithuania, both of whom at the centre of development. Despite proven fail-
promote a coordinated policy response to the global were elected in large part due to voter frustration with ure of their neoliberal policy prescriptions and ir-
jobs crisis and to the increase in unemployment, the failed economic policies that contributed to the responsible financial governance system, the IMF
working poor and those in vulnerable employment.4 impact of the crisis in those countries. and the World Bank continue to promote their flawed
This response is aimed at avoiding global social re- According to the Women’s Working Group policies and impose conditionalities on developing
cession and mitigating its effects on people. The pact for Financing for Development, the rights-based countries, acting not as special agencies of the UN,
will help both the extraordinary stimulus measures response to the crisis requires, inter alia, immedi- but as if the UN were their special agency. In the UN
together with other government policies better ad- ate reform of the global financial architecture to ef- system, in which all Member States should be equal,
dress the needs of people who need protection and fectively manage liquidity shortages and balance some—now widened to 20—are more equal than
work, in order to accelerate combined economic and of payments imbalances, and ensure that policy the remaining 172. The Women’s Working Group
employment recovery. responses do not shift the burden of family welfare statement states its strong opposition to this prac-
Amnesty International recently launched a De- and service provision to the care economy. The tice, and demands that all the Member States have
mand Dignity campaign to fight for rights threatened Women’s Working Group advocates setting in place equal votes, equal rights and equal obligations at the
by the economic crisis, and for those neglected in the national, regional and international measures and decision-making table.
processes that respect national policy space, and are
4 ILO projections of working poverty across the world indicate consistent with internationally agreed standards and
that 200 million workers are at risk of joining the ranks of 5 Women’s Working Group on Financing for Development
commitments, including those regarding women’s
people living on less than USD 2 per day between 2007 and (WWG-FfD). “Time to Act: Women Cannot Wait. A call for
2009. See: ILO. Global Employment Trends Update, May rights and gender equality. Trade policies and agree- rights based responses to the global financial and economic
2009. ments should enable countries to move away from crisis,” June 2009.
Sophia Murphy
hunger occurred as world population was growing about how important each of these elements was and
Senior Advisor, Trade and Global Governance Programme rapidly – the net effect was to save billions of people continues to be.
Institute for Agriculture and Trade Policy from lives compromised by poor health and reduced First, supply:
mental capacity.
Starting in 2005 and peaking in July 2008, many agri- Chronic hunger is something we – govern- Water
cultural commodity prices on world markets reached ments, societies, community organizations, and Irrigated agriculture accounts for almost 70% of
their highest levels in 30 years. In some cases the citizens – can eliminate. world water use. Irrigated agriculture produces 40%
prices set new records. From March 2007 to March of global food on 20% of the world’s agricultural
2008, the price of rice went up 74%, and most of that Why did it happen? land. It is highly productive but the amount of water
in just a few weeks during March 2008. The price of Price reflects a relationship between supply and de- used is often unsustainable. An estimated 1.4 billion
wheat more than doubled, rising 130% during the mand, complicated by currency values and specu- people live in areas with scarce water supplies. A diet
same one-year period, March 2007 – March 2008.1 lation on what the future holds. There are supply, rich in meat and dairy products, common in most
Then, as oil prices collapsed (from peaks of over demand and institutional factors at work. developed countries and increasingly common in
USD150 a barrel in June 2008 back to USD 40 a few Supply shortfalls are a normal part of agriculture. much of the global South, puts a lot more stress
months later), agricultural commodity prices also Typically, a supply shortfall triggers increased produc- on the world’s water supply than a diet based on
fell on world markets. Nonetheless, as FAO and oth- tion through higher prices as more farmers are drawn vegetable protein.
ers continue to remind us, food prices have hardly to plant the crop that is fetching the higher prices.
fallen in many developing countries, and they remain There is generally a lag (crops take time to mature) Stocks
higher than they were two or three years ago. In 10 and often the supply response overwhelms the po- World food stocks have halved since 2002. The world
countries the latest prices are the highest on record. tential demand, so that there is a common pattern in is now estimated to have roughly two months reserve,
FAO reports the persistent high prices are most agriculture whereby price spikes usher in periods of which is the minimum cushion recommended by the
evident in sub-Saharan Africa, where every country high supply and relative price depression, which last FAO in case of supply disruption. Low reserves mean
considered is facing rice prices far above those of 12 much longer than the price rise. This phenomenon small changes in supply have a big effect on prices.
months before. Prices of maize, millet and sorghum is linked to what economists call ‘inelastic demand’: Stocks-to-use ratios for grains have not been this
are higher in 89% of African countries compared to a people must eat to survive, but once fed, look to spend low since 1972-1973; wheat reserves in particular
year earlier. Other regions, the article notes, are also their money elsewhere. The richer the people are, have never been this low. Governments and private
affected, especially rice prices in Asia and maize and the smaller the share of their income they spend on firms trusted that low stocks at home could be com-
wheat in Central and South America. food. This is also known as Engels’ Law, named for pensated for by access to a global market under lib-
The poor spend upwards of 50% of their income the famous 19th century economist who was the first eralized trade agreements, so falling reserves did not
on food, while the poorest spend 80% or more. This to write about this behaviour. immediately trigger higher prices, as they would once
makes the recent food prices increases unaffordable. In the 21st century, some things are a bit dif- have done. When bad weather hit several of the major
The result is not just increased poverty (no money to ferent. Not least, there is a new and theoretically global suppliers simultaneously, and several years
spend on health care, education, a business venture unlimited source of demand for agricultural com- running, no one was prepared with an adequate cush-
or anything else), but also increased hunger, which modities coming from the biofuels sector, together ion and prices started to climb—belatedly but fast.
means decreased productivity; stunted physical and with mounting stress on the quantity and quality of There is some discussion as to whether low
mental development of foetuses, babies and chil- soil and water available and the uncertainty about stock levels were all that important. For instance,
dren; and, ultimately, death. None of these deaths how climate change will affect growing conditions. David Dawe at FAO suggests much of the drop was
are inevitable. Consider that in 1966, one in three There is disturbing evidence to suggest the past 50 the result of China alone, which decided to run down
people faced chronic hunger. Almost 35% of the glo- years of steadily improving agricultural productivity its very considerable stocks to a more manageable
bal population went hungry, day after day. By 2005, might be coming to an end. level.2 Yet it is possible to argue that the more China
the number was closer to one in seven, at around These are structural changes that have dramatic (which is home to more than 15% of the world’s
15%. This dramatic reduction in the incidence of implications for public policy to ensure food security population) depends on world markets, the more
and future agricultural production. If the food crisis is important a strong reserve becomes, because China
about short-term or reversible problems (e.g., a bad alone needs so much food to maintain domestic food
1 The price increases were far more dramatic in nominal US
law, a need to emergency cash flows, a need to subsi- security. Dawe also points out that stocks of some
dollars than in other currencies. Since 2002, world maize dize fertilizers) then governments will do very different crops, such as wheat, have been on a downward
prices have risen 143% in nominal dollars, but only 37% in things, than if the crisis is understood to be about more trend for decades. Here, too, though the question
real (i.e., constant) Euros. The many developing countries profound problems in food and agriculture systems.
that buy their food imports in a currency linked to the US
The following is a quick review of the causes
dollar have seen prices jump much more than those that are 2 Dawe, David. “The Unimportance of ‘Low’ World Grain
more independent, or whose currencies are linked to the given for the sudden and dramatic increase in agri- Stocks for Recent World Price Increases”, ESA Working
Euro instead. cultural commodity prices. There is ongoing debate Paper No. 09-01, Geneva, February 2009.
“ Sixty nine per cent of Sudanese are living under the line of poverty, especially women which mediate the relationship between supply and
demand. The governance of markets has changed
working in the agricultural sector. In recent years, health services have improved, but
considerably in the past 20 years. New trade, invest-
the poor are still suffering, due to the increase in food prices. The Sudanese civil soci- ment, and commodity exchange regulations have
ety reclaims more financing for development, but from a multidimensional – not just played their part in the food price crisis.
economic – perspective. Development must be strategic, involving the participation of
women at the grassroots level.
”
Niemat Kuku (Gender Research and Training Center, Sudan)
Speculation
Most agricultural commodities are traded on in-
ternational exchanges. Until recently, commodity
exchanges (most of which are based in the US or
UK) were governed by laws that limited the partici-
pation of actors that did not intend to buy or sell
arises, how low is too low? Wheat remains funda- Then, demand: physical commodities, but were only interested in
mental to food security. Is there a point where there price speculation. The laws thereby controlled the
will simply be too little in stock for wheat to be reliably Population level of speculative activity. The laws were gradu-
available in world markets should one or more big Each year, another 78 million people are added to the ally changed starting is the late 1980s. In the grain
exporters face poor harvests? earth’s total population. Growth is tapering off, but exchange, for example, speculators had been limited
we are expected to reach approximately 9 billion peo- to 11 million bushels of grains. In 2008, the two larg-
Production costs ple before the earth’s population stabilizes in 2050. est index funds had a combined position of more
Fertilizer, oil, pesticides and seed prices rose very than 1.5 billion bushels. As regulations were relaxed,
steeply between 2007 and 2008. Fertilizer prices Diet investment from speculators grew very fast, from
have risen more than any other commodity group More importantly, what people eat is changing. Each USD13 billion in 2003 to USD 260 billion in March
(including oil) since 2007 and since 2000 (i.e., in year, more people eat like rich Westerners. In other 2008. Commodity market prices directly affect how
both the short and long term). Oil price increases words, they eat too many calories, especially fat and much food governments can afford to import and
were responsible for much of the food price inflation sugar; and, they eat foods raised, processed and whether people get enough to eat.
in developed countries and hurt poor countries, too. transported using too much water and energy. In
Higher input costs make it more expensive to pro- developed countries, an estimated one half of food Investment
duce food and reduce net farm incomes in rural areas is wasted, much of it thrown out in the household, Governments worldwide have liberalized investment
that depend on external inputs for their agriculture. by supermarkets or in restaurants whose portions laws considerably since the advent of structural
are too large.4 Western diets create degraded eco- adjustment programmes and the proliferation of
Drought systems and result in bad health. The change in what regional and bilateral trade agreements. Many coun-
Droughts appear to be more frequent and more the rich eat makes the diet of the poor more expen- tries have reduced or eliminated laws that prohib-
widespread today than at any time in recent history, sive by reducing the land available for traditional ited foreign ownership of land; others have reduced
exacerbated by desertification and deforestation, staples, such as cassava, millet, wheat, and local demands on foreign companies to reinvest profits
poor urban planning, and the overuse of ground- vegetables. in the host country, reducing the potential benefit
water supplies. In 2007, most of the major wheat of the investment for the host country economy.
exporters, including Australia, Argentina and the US Biofuels Recently, there has been a pronounced increase in
suffered weather-related crop problems. The result Biofuels (also called agrofuels) are liquid fuels made the lease or purchase of land abroad to grow food or
was less supply in world markets. from plant matter. Most commercial biofuel today fuel for re-export to the investing country or, where
is made from sugarcane, corn, canola, palm oil or private firms are involved, for export to wherever
Climate change soy oil. Considerable acreage has also been given demand dictates. For example, a London-based firm
Climate change is affecting rainfall and tempera- to japtropha plantations, which is a plant rich in oil (Central African Mining and Exploration Company)
tures, both vital to agricultural productivity. Even a that can be used to make biodiesel. Since 2006, both has leased 30,000 hectares in Mozambique to grow
1ºC-2°C change (a threshold most experts expect us demand and supply of biofuels have grown expo- sugarcane. In Kenya, the Government has signed
to exceed) will reduce food production in tropical and nentially. Biofuels are thought to have consumed a deal with Qatar to lease 40 000 hectares to grow
sub-tropical regions. Experts predict 75-250 million over 7% of the global oil seed supply and about 4.5% fresh fruit and vegetables for export to Qatar. These
people in Africa will be affected by climate change, of the global cereal crop in 2007. Estimates of how deals increase pressure on land, water and infra-
with agricultural production in some rain-fed regions this demand has affected world food prices ranges structure, and risk crowding out food production
losing half their potential by 2020. In Central, South from 10% to more than 70%. The results depend for local markets.
and Southeast Asia, falling river levels will reduce on assumptions. Nonetheless, the expectation of
irrigation and therefore output. The UN’s Food and continued growth in biofuel demand, supported by Trade
Agriculture Organisation estimates 65 countries – ambitious targets for use in the European Union and Global and regional trade agreements have changed
home to roughly half the world’s people – will see the United States, has triggered higher speculative the way world prices interact with domestic food
cereal production fall due to climate change.3 prices in futures markets and expanded production markets. As trade barriers are reduced, world prices
of biofuel feedstocks, including on environmentally are more and more directly connected to national
sensitive land, such as peat bogs in Indonesia and prices – they are not necessarily (or even often) the
the Cerrado of Brazil. same, but they have a greater impact on domestic
prices. Global markets are often promoted as provid-
ing access to a global supply pool. The unexamined
aspect of this integration, however, is the creation
4 The Swedish International Water Institute estimates that of a global competition among consumers. Without
the developing world also wastes half the food it grows,
protection, poor consumers inevitably lose the fight,
3 UN Food and Agricultural Organization (FAO). Falling because it is left in the fields, is poorly stored, or cannot be
prices in perspective, 2009. Available from: <www.fao.org/ transported for lack of decent roads and other transport allowing globalization to pull more and more land into
docrep/011/ai474e/ai474e13.htm>. infrastructure. producing fuel and animal feed rather than food.
“ In Colombia, there are about 84 indigenous tribes with 64 distinct languages, who live (ODA, technology, etc.) and allowed to increase their
emissions as they shoot for that income goal.
in the border regions of Colombia with Venezuela, Peru, and Brazil, precisely where the
What is the equivalent carbon footprint of USD
most precious reserves of natural resources are located. We fight for the defense of our 9,000 GDP per capita? Probably about 9 tons of CO2
territory and the preservation of our culture. Due to this fight, since the 1970s, more than per person. Even if rich countries agreed to come
1,400 of our leaders have been killed. Right now, many indigenous regions are militarized down to that level and poor countries succeeded in
and where they aren’t militarized, there are paramilitary forces present. The Government reaching it, and even if our lives run on a mix of fos-
is trying to displace our communities so they can negotiate with transnational compa- sil fuels and renewable energy, imagine how much
nies to exploit the natural resources, such as timber and oil, in these areas. Indigenous energy and carbon that would mean, especially con-
peoples in Colombia are opposed to free trade agreements, because these treaties cause sidering world population projections of 7.6 billion
greater displacement of our communities and instead of opening markets, only increase for 2020 and 9.1 billion for 2050.
”
Against that income level the targets set under
the frontier of US power.
the Millennium Development Goals (MDGs) look
Jesús Avirama (Regional Indigenous Council of Cauca, Colombia) inadequate even if met by 2015 (something that at
current pace is not going to happen). Developing
countries must avoid the unsustainable path taken by
industrial countries. The earlier they shift to produc-
CHART 1. Annual global emissions of would be a mix of sustainers and high consumers. The tion and consumption of clean energy the better for
carbon from fossil fuels and cement excluded under-consumers or under-emitters would the planet and all of us. With sustainable agriculture
production, 1850–1999, and concentration be the over 2 billion people who are poorly fed, poorly and fisheries, conservation of water and forest re-
of CO2 in the atmosphere, parts per educated, jobless, voiceless, lacking access to health sources, development of renewable energy and a re-
million volume (ppmv), 1850–2000 care, water and sanitation, and living in degraded en- duction in poverty and inequality, they stand a chance
vironments. They must have primacy in the right to of adapting to climate change. A truly green revolu-
8 400 development and should be the main beneficiaries of tion in both agriculture and fisheries and avoiding
resource transfers between and within countries. deforestation can contribute to carbon capture and
7 350
Global CO2 concentration
To avert catastrophe the deal is fair and simple: reducing the carbon footprint.
the rich in both rich and poor countries must give up Non-Annex 1 countries are spared from bind-
Global carbon emissions, billion tons per year
6 300
much more so that the poor and all of us may live ing mitigation commitments but they can help, for
5 250 sustainable lives. instance, by levying a progressive carbon tax on their
own rich over-consumers and by moving early on
CO2, ppmv
4 200 Mitigation, the heart of justice towards soft energy and low-carbon paths to de-
There are many proposals on the table regarding the velopment. Keeping to its carrying capacity8 should
3 150
“fair share” principle, for example, the green devel- be every nation’s goal. Stabilizing the population at
2 100
opment rights, common but differentiated conver- sustainable levels should be a particular concern for
Global carbon
emissions gence, contraction and convergence by 2050, etc. countries such as the Philippines, which is projected
1 50 They are all basically about climate stabilization. to grow to over 100 million in 2020 and to nearly 150
High-emission countries must commit to dras- million by 2050.
0 0 tic, deep and binding cuts on their GHG emissions High-emission countries insist that the deck is
1850 1875 1900 1925 1950 1975 2000
from their 1990 levels and help developing countries stacked in favour of the more advanced developing
with “soft” money and clean technology. The contrac- countries, where emission levels are rising fast. At
Source: P. Tans, Climate Monitoring and Diagnostics tion required from them is huge whatever the agreed the 13th Conference of the Parties in Bali, Indonesia,
Laboratory, National Oceanic and Atmospheric
Administration, USA. emission stabilization scenario. This ranges between in 2007 they suggested that binding emission reduc-
a 25%–50% cut or more between 2020 and 2050. The tion targets should equally apply to the likes of China
s tabilization scenarios may be decided – 350 ppm, reduction covers all six gases of the Kyoto Protocol: and India. This is a tricky and problematic issue and
450 ppm, 550 ppm, 650 ppm – must be based on the CO2, methane (CH4), nitrous oxide (N2O), hydroflouro- says a lot about the complexities of “negotiating”
differentiated share of responsibilities for what has carbons (HFC), perflourocarbon (PFC) and sulphur justice. It is true that China’s emissions are rising
happened and continues to happen, and on the dif- hexafluoride (SF6) – which are translated into CO2 tons fast because of its high growth levels and reliance
ferent levels of development. Countries and peoples equivalent (CO2teq) in each country’s GHG inventory. on dirty coal. But the current carbon concentration in
of the world can be divided into three groups: over- Developing countries have a right to develop- the atmosphere has been the result of a continuous
consumers or high emitters; under-consumers or ment, but this right should not be taken as a license build up over many generations, and China or India
under-emitters; and sustainers or those living within to pollute the environment. The right to development had relatively smaller contributions to this (although
sustainable limits. This classification corresponds under the climate justice principle is not only about their carbon imprint, because of their current high
respectively to (a) industrial countries – all of the growing the economy; more importantly, it is about growth, will show up later).
Organisation for Economic Cooperation and De- the satisfaction of basic needs leading to a decent Moreover, China’s emission level on average is
velopment (OECD); (b) least developed countries, level of security and well-being for all. The authors still way below that of the US on a per person share.
including most of Africa; and (c) advanced develop- of the Greenhouse Development Rights Framework China is using up the world’s raw materials, but it is
ing countries such as Brazil, China, India and some suggest an income of USD 9,000 per person per year also accepting mountains of waste that other coun-
other East and Southeast Asian countries. as the level at which all countries could converge.7 tries do not want to keep in their own backyards.
In every country, rich or poor, however, there This would mean that developing countries, all of them It is recycling the world’s waste and undertaking
will be some who do not neatly fit these categories:
a rich Filipino, for example, has a similar lifestyle to 7 Baer, P., Athanasiou, T., Kartha, S. and Kemp-Benedict, E.
The Greenhouse Development Rights Framework: The Right 8 The number of individuals who can be supported in a given
and therefore the same CO2 emission level as – his
to Development in a Climate Constrained World. 2nd Edition. area within natural resource limits and without degrading the
rich American counterpart. The 600 or so million of Berlin: Heinrich Böll Foundation, 2008. Available from: natural social, cultural and economic environment for present
non-poor, middle class and rich Chinese and Indians <www.ecoequity.org/docs/TheGDRsFramework.pdf>. and future generations. See <www.carryingcapacity.org/>.
“
fact, China probably has the highest carrying capac- The current crisis is global, so policies to end it must also be global but linked with local
ity anywhere on the planet – taking care of one of
movements. We believe that stimulus packages should be invested in things like green
every six members of humanity in a comparatively
small space. However one might question who is
infrastructure and social infrastructure, which would allow for the creation of green
paying for the fact that China produces cheaply for all jobs, an acknowledgement of the disproportionate impacts of the crisis for women
of us. Another question is why Beijing cannot shift at workers, and the recovery of the care economy. These kind of policies are spelled out
once to clean production and produce more durable in the ILO Global Jobs Pact. The UN is the only place for the countries bearing the brunt
goods. If China can help bail out the global economy of the crisis to have a representative voice. The labor movement is working within the
with its surplus money, why not spend it in cleaning framework of the UN and trying to bring in the Decent Work and Green Jobs Agenda. It
up its own mess and shift to a low-carbon path of is not just a question of increasing development aid and being a bit more generous – as
development? some industrialized countries would like to assert. There is a need for social transfor-
US carbon emissions, a quarter of the world’s
mation. Multilateral institutions need to be systemically reformed and we need specific
total, remain at very high levels. Its per capita CO2
emission level has seen little or no reduction at all
mechanisms to ensure that we have enduring solutions to the financial and economic
since 1990. The World Development Report 2006:
Equity and Development put it at 19.8 tons/person
crisis.
” Gemma Adaba (International Trade Union Confederation)
that year.9 Europe, Japan and other industrialized na-
tions may have succeeded in cutting down but their
efforts still fall short of the Kyoto Protocol’s minimal
standard. Overall, annual global CO2 emissions have CHART 2. Projected impacts of climate change.
not let up since 1990. To some this a sign of prosper-
ity, meaning an indication that economies are con- Global temperature change (relative to pre-industrial)
“ In El Salvador, we have been facing for years now the impact of climate change, suffering how they produce and consume. In other words, they
must give up on their unsustainable lifestyle.
floods and droughts, hurricanes, the drying of major rivers, the collapse of communities.
Each year the material costs are high, and so is the loss of human lives and the emigration Slow down, cool the earth
of our people, especially the youth. We must work for a new era in which development is What scenario can cool an overheating planet and
measured by the well-being of humanity and that of Mother Earth, and not just by material spare us from disaster – 350 ppm, 450 ppm? Which-
wealth.
” Marta Benavides (GCAP Feminist Task Force, El Salvador)
ever is the answer, the action should be the same: we
all must slow down. Strictly speaking, scenarios are
not predictions; they are a range of possibilities that
can lead to different alternative futures. As the future
is inherently unpredictable, there is no certainty on
what will come out of the action of so many. However
“ While industrialized Northern countries are mainly responsible for greenhouse gas emis-
sions causing climate change especially in per capita terms, countries of the South, and
the poor and women in particular, will bear a bigger burden of the adverse environmental
scenarios are useful because one of the causes of
unpredictability and uncertainty is human action – or
the possibility of it – to change the course of events.
The future is shaped by what we believe it will be and
effects of climate change and its socio-economic impacts. Some of these effects are the
by what we do to make it happen.
displacement of people living in low-lying coastal areas; the loss of sources of livelihood;
Oddly, the current global recession may turn
food insecurity; and reduced access to water. From an ecological debt perspective, rich, out to be a blessing in disguise. Perhaps the deeper
industrialized countries do not only have the responsibility of drastically cutting green- it cuts and the longer it lasts, the better it will be for
house gas emissions down, but they also have an ethical and moral obligation to provide all of us. Less growth implies less emissions and
compensatory and reparative finance to developing countries to fund climate change less stress on the environment. Cleaner production
mitigation and adaptation efforts.
” Athena Peralta (World Council of Churches)
and universal reduction in per capita consumption
means less carbon footprint and – maybe –healthier
living. Perhaps all these things will happen regard-
less of what comes out of the climate negotiations in
Copenhagen and beyond.
at a conference held in April 2008 in Johannesburg, their coastal resources properly, they would be doing Is there any time to save ourselves? Maybe yes,
South Africa. The IAASTD admitted to the shortcom- it not only for themselves but for all of us. If a poor maybe no. In any case, let it not be said that our gen-
ings of the Green Revolution technology and recog- country takes care of its biodiversity, it is doing a eration did not do enough for justice. n
nized the critical role of indigenous knowledge and great service not only to itself but also to humanity.
sustainable agriculture in attaining food security. These efforts deserve to be compensated or recipro-
It released a report indicating that modern agricul- cated somehow through, for example, a carbon tax
ture will have to change radically from the dominant on the rich, untied ODA, unconditional debt relief,
corporate model if the world is to avoid social break- fairer trade terms, technology or other forms of re-
down and environmental collapse.13 source transfers.
The report – opposed by Australia, Canada and Financing climate stabilization requires huge
the US – also criticized genetic modification (GM) amounts of money. Oxfam International15 has said
and the conversion of farmlands to biofuel produc- that the cost of adaptation for developing countries
tion. It said that the so-called GM technology was not will be at least USD 50 billion a year, in addition to the
the way to feed the world’s poor, and that growing current ODA level, which already includes funding
agrofuels to feed cars on land that should be used to commitment for the MDGs. However in his presen-
feed people will surely worsen world hunger and an tation of the Fourth Assessment Report in Bali, IPCC
already very fragile human security situation.14 chair Pachauri said that “the cost of mitigation is re-
Although adaptation has emerged as a key ally not all that much” as it is estimated annually to be
policy question in negotiations on climate change, less than 1% of global GDP. Rich countries are bail-
the issue has not yet been addressed forcefully in ing out the big banks that caused the current global
policy development planning at all levels. Building financial mess. It is only fair for developing countries
adaptive capacity, or meeting MDG targets, is very to ask for an equivalent bail-out for the eradication of
different from growing the economy and working for world poverty, rehabilitation of the environment and
development as usual. It is about delivering social stabilization of the climate system.
and environmental justice – a necessary condition Although Annex 1 parties agree that climate
for securing the path to sustainability. change is the most serious threat to sustainable
development, their actions up to now have been
Justice in finance and technology transfers simply disappointing. Decisions that truly matter
The UNFCCC states that rich countries are duty- for eradicating poverty and redressing global dispari-
bound to make transfers to developing countries, but ties take too long, often ending up in insufficient or
nobody should be a beggar. If poor peasants shifted even negative net transfers with heavy strings at-
to organic farming or municipal fishers managed tached. Moreover, the rich themselves must begin to
Jana Silverman
Union and the UN. This means that by and large they as companies.5 Other international standards in the
Social Watch have not been subject to the rights and obligations realm of “soft law” that directly impose human rights
Alvaro Orsatti of international law, including international human obligations on companies include the International
Trade Union Confederation of the Americas rights law. Labour Organization Tripartite Declaration on Princi-
This interpretation is gradually being revised in ples concerning Multinational Enterprises and Social
The financial and economic crisis sweeping the practice, however. Some contemporary scholars ad- Policy (formulated in 1977) and the Organisation for
globe is not simply another cyclical downturn en- vocate granting transnational business enterprises Economic Co-operation and Development (OECD)
demic to the capitalist system. It represents a spec- neo-feudal or corporative rights.1 Some international Guidelines for Multinational Enterprises ( adopted in
tacular collapse of the neo-liberal economic model. treaties – in particular bilateral and multilateral trade 1976 and revised in 2000).
Implementation of this model, which prescribed and investment agreements – give transnational In addition, a growing number of corporations
financial-sector deregulation, trade liberalization, enterprises specific rights that can be enforced in are designing and implementing specific human
and privatization of state functions and enterprises, either the host country’s courts or in international rights policies. More than 240 enterprises have for-
led not only to destabilization of the world’s markets arbitration tribunals.2 For example, the Chapter 11 mulated their own guidelines, according to the Busi-
but to the creation of an acute global imbalance of provisions under the North American Free Trade ness and Human Rights Resource Center,6 and more
power between workers, private enterprises, and Agreement allow investors to bring claims directly than 5200 companies are listed as active members
states. against participating States for presumed violations of the UN Global Compact,7 a multi-stakeholder
During the heyday of neo-liberalism, many of the investment provisions in the treaty. Similarly, initiative that commits businesses to respect uni-
companies took advantage of improved commu- many bilateral investment treaties include mecha- versal principals relating to human rights, labour
nications and transportation infrastructure, lax na- nisms that allow companies to bring cases against rights, environmental issues and anti-corruption
tional regulations, and the auctioning off of lucrative signatory States in arbitration tribunals, such as the practices.
State assets to transform themselves into gigantic International Centre for the Settlement of Investment
transnational conglomerates with a substantial pres- Disputes, on expropriations, losses incurred due to Civil society and corporate
ence around the world, and achieved record profits civil disturbances, and restrictions on the repatria- social responsibility
in the process. Their economic muscle gave them tion of capital and other matters.3 The implications of The changing relationship between businesses
immense political clout among developing countries these clauses are profound. Since 1995, more than and human rights is intimately linked to the rise of
eager for foreign direct investment. These countries 370 bilateral and multilateral trade agreements have corporate social responsibility, defined by the Eu-
attempted to make their territories more “attractive” been signed and more than 1,500 bilateral invest- ropean Commission as a “concept whereby com-
to multinationals by strengthening legislation pro- ment treaties have been concluded, involving virtu- panies integrate social and environmental concerns
tecting investments and weakening labour and en- ally all of the world’s major economies.4 These agree- in their business operations and in their interactions
vironmental laws. Thus, in addition to its economic ments confer supra-national rights on corporations, with stakeholders on a voluntary basis”.8 Although
consequences, the proliferation of investments by without granting corresponding rights to the people some companies have implemented philanthropic
multinational enterprises in developing countries who may be adversely affected by their actions. programmes to benefit their employees, local com-
over the last decades has had profound social and Today, the obligations of non-state actors such munities and society in general since at least the
environmental impacts, to the point where some as business enterprises to protect and promote 1950s, the current notion is different. It promotes the
multinationals have been complicit in gross viola- human rights are becoming more explicit in both incorporation of human, social and environmental
tions of fundamental human, social, labour and en- theory and practice. For instance, the Preamble of rights as an integral part of corporate strategies, not
vironmental rights. the Universal Declaration of Human Rights calls for to comply with any moral or ethical imperative but
“every individual and every organ of society” to up- simply as a good business practice that can minimise
Transnational corporations and hold and promote the principles contained in the risks and enhance company performance.
human rights obligations Declaration. According to legal scholars, that obliga-
Business enterprises, particularly transnational tion includes all persons and all legal entities such
companies, are typically private, non-governmental 5 Avery, Christopher, Short, Annabel, & Tzeutschler
1 See Teitelbaum, Alejandro. Al margen de la ley: Sociedades Regaignon, Gregory “Why all companies should address
entities subject only to national laws in either the
transnacionales y derechos humanos, Bogota: ILSA, 2007. p. human rights”, 2006. Available from: <www.cca-institute.
country where the company has its headquarters 31. org/pdf/averybusiness%26humanrights.pdf>.
or in the host countries where the company has in-
2 Ibid. 6 See: <www.business-humanrights.org/Documents/
vestments. Even though these companies may have Policies>.
3 Damrosch, Lori ed. International Law, St. Paul, USA: West
significant presence in multiple countries, they are Publishing, 2001. pp. 809-12. 7 See:<www.unglobalcompact.org/
not technically considered to have international legal ParticipantsAndStakeholders/search_participant.html>.
4 Adlung, Rudolph and Molinuevo, Martín. Bilateralism in
status, which is limited to states and certain inter- Services Trade: Is There Fire Behind the (BIT) Smoke? 8 European Commission. “What is CSR ?”, 2009. Available
governmental organizations such as the European Geneva: World Trade Organization, 2008. pp. 1-2. from: <ec.europa.eu/enterprise/csr/index_en.htm>.
Social Watch 31 Holding Transnational Corporations Accountable for Human Rights Obligations
“
law (which only applies to violations of “specific, uni-
The impacts of the crisis are evident in the massive lay-offs taking place in foreign banks
versal and obligatory” norms such as those against
such as the BBVA, Santander, and HSBC. Our rights as workers have been taken away.
torture, genocide, crimes against humanity, and
Debtors are also feeling the impacts, it’s already happening. They are being evicted summary executions), others for reasons related
because for different reasons they cannot pay anymore. What is worse, especial military to an applicable statute of limitations or a failure to
forces of the state are being used to carry out the evictions; those forces are there for the provide sufficient evidence linking the company to
security of all, not to throw poor people in the streets because they cannot pay.
“
per cent of the total. The Global Unions participate in
I began working with a major Spanish advertising and film producing company, which
other kinds of work with businesses and institutes
opened a division here in Argentina in 2007. When the crisis broke in earnest, everything
co-sponsored with business organizations, such
as the one involving the International Federation of started to get complicated. Work decreased a lot, and we spent up to a month without
Journalists, and multi-stakeholder forums, such as filming. In January they told me that they had to fire me. I received the severance pay
one related to coffee production in which the Inter- and started looking for work. Since then up until today, I haven’t been able to find any
national Union of Farmworkers participates. Other decent job. What little work exists is practically slave labour: 8 or 9 hours, with very poor
framework agreements have been organized on a salaries. I have almost spent all my savings and I live alone in a rented flat, so I need to
sub-regional basis.
Once GFAs are signed, they can be used in vari-
ous ways. Companies tend to use them as evidence of
get something urgently. What else am I going to do?
” Young woman from Buenos Aires
their commitment to corporate responsibiity, as their
signing and implementation are voluntary. This per-
spective is being challenged by the union movement
and by European academics, with the goal of con- complainants that had a positive result was similar to bottom” regarding the promotion and protection of
structing a strategy to make the contents of frame- those at the global level. human rights and labor standards, among countries
work agreements legally binding. In the meantime, The Trade Union Confederation of the Americas as well as companies.
union denunciations of corporate practices violating (TUCA), created in March 2008 and headquartered This tendency notwithstanding, human rights
clauses of a framework agreement have sometimes in Sao Paulo, has developed an explicit strategy re- protection need not be a zero-sum game. The solu-
compelled multinational companies to change their garding corporate social responsibility, based on tion is to change the paradigms of both the human
policies; for example, by agreeing that unions can be that of the ITUC. It is working with the Global Union rights framework for corporations and of the eco-
established in their foreign subsidiaries. federations and the TUAC on issues related to global nomic model in general. A comprehensive interna-
The OECD Guidelines have been adopted by its framework agreements and the OECD Guidelines, tional treaty formulated within the UN human rights
30 member countries as well as nine observer coun- particularly to assist union organizations in testing the system could clarify the human rights obligations
tries, including Argentina, Brazil, Chile and Peru in complaints mechanisms of these instruments. It has of businesses, which have been obscured by the
Latin America. This instrument includes an explicit also extended an invitation to OECD Watch to coordi- literally hundreds of CSR initiatives that have sprung
complaints mechanism that can be activated when a nate work related to the Guidelines. Additionally, it has up over the last two decades, and establish binding
violation of the spirit and letter of a Guideline clause organized campaigns to counter the concept of social mechanisms that can provide remedies for victims in
is identified. The thematic scope of the Guidelines responsibility promoted by the Inter-American Devel- cases where it is impossible to prosecute victimizing
is quite broad. In addition to labour rights, clauses opment Bank. TUCA, in collaboration with the Global companies in domestic jurisdictions. A conceptual
cover the environment, consumer rights, science and Union federations and the Friedrich Ebert Foundation framework proposed in 2008 by John Ruggie, Spe-
technology, and competition. Complaints are directed in Latin America as well as with like-minded NGOs, cial Representative to the UN Secretary on Business
to “national contact points” that governments are has created a Working Group on Transnational Com- and Human Rights, based on the governmental ob-
obligated to create. The Guidelines call for voluntary panies to further develop concepts and strategies ligation to protect rights, business responsibility
compliance by companies, which means that they relating to trade union perspectives. to respect rights, and the need for victim access to
can ignore the mediation efforts of governments with effective remedies in cases where abuses have oc-
respect to the complaints presented by an interested The need for a paradigm shift curred, is a step forward. However, this framework
party. However, once the process is completed, the Although not all of the mechanisms profiled above needs effective mechanisms to instrumentalize it.
national contact point can publicly reveal the negative have been equally effective in protecting and pro- In addition, a wider transformation is neces-
actions of the company and publicize critical opin- moting the fundamental human and labor rights sary to reverse the negative impact of the neo-liberal
ions. As a result, resort to the Guidelines complaints that companies are obligated to uphold, they at least economic model that has been imposed upon de-
mechanism tends to have consequences similar to begin to address the weaknesses inherent in the uni- veloping countries in recent years. The role of the
the rulings of the Commission of Experts on the Ap- lateral, voluntary model of corporate social respon- state as an active shaper and regulator of economic
plication of Conventions and Recommendations of sibility. Although it can be argued that the generation and social policy must be revived, along with endog-
the ILO. Although employers frequently assert that of business initiatives linked to this model has helped enous paths to development based on strengthen-
this mechanism goes beyond their concept of CSR, it to introduce human rights issues into corporate cul- ing internal markets and national productive capac-
has been widely acknowledged not just by civil society ture, from the point of view of civil society, these ity. This would break the cycle of dependence on
organizations but also by governments of countries measures are no substitute for enforceable human investments by unscrupulous multinationals. The
that belong to the OECD. rights laws on the national level that are consist- current economic and financial crisis has raised real
To date, approximately 200 complaints have ent with international norms and accompanied by questions about the “benevolence” of the private
been brought to national contact points, of which strong, independent judiciary systems that provide sector and highlighted the flaws inherent in the neo-
80 per cent were lodged by trade unions. Accord- concrete remedies for victims. Unfortunately, many liberal model. This provides a historic opportunity
ing to the Trade Union Advisory Committee (TUAC), governments choose not to take forceful action to to establish a social compact between businesses,
complainants achieved satisfactory results around hold companies accountable for violations of their workers, consumers and the state that can generate
half the time. At the end of 2008, 24 union-based human rights obligations, as they are fearful of losing a new economic model based on human rights and
complaints were presented in Latin America, and foreign investment to countries that enforce rights sustainable development. We should not squander
10 others were brought by NGOs. The proportion of less stringently. This creates a deplorable “race to the this opportunity. n
Social Watch 33 Holding Transnational Corporations Accountable for Human Rights Obligations
Arjun Karki
The current global economic crisis has not only Because the majority of poor people in LDCs
LDC Watch shaken the foundations of the largest economies, spend 70%-80% of their income on food, they are
stock markets and the most influential financial very hard hit by the sharp increases in domestic food
institutions around the globe, but also has put the prices. The consequences of the food crisis, which
As defined by the United Nations, there are 49 Least already fragile small economies of the LDCs into the head of WFP has called ‘a silent tsunami’, include
Developed Countries (LDCs) in the world,1 which are peril, pushing millions of poor women, men and widespread misery and malnutrition for millions
home to about 750 million people. The ever-increas- children into poverty and hardship. While the eco- of people. The food crisis shows that the existing
ing wave of neoliberal globalization has continuously nomic crisis resulted from the fallibility of the rich, agro-industrial and market-led approach to food se-
threatened the life and livelihood of the people living industrialized and developed countries, the LDCs curity has totally failed to feed hungry people living
in these LDCs. In general, the LDC economy is char- are in the forefront of those bearing the brunt of it. In in LDCs. A variety of other factors, such as the pro-
acterized by an increasing debt burden, economic LDC countries, the economic crisis has also fed into motion of corporate farming and the introduction of
shocks, hunger, and human rights violations, includ- the current food, fuel, climate, debt, development extreme dependence on external food supplies, lack
ing gender injustice, conflicts, weak governance, and and political crises. of productive investments in local agricultural sys-
inherent environmental vulnerabilities. tems, global warming, trade imbalances and trade
Food crisis liberalization are also to blame for food insecurity in
Unprecedented food crises, triggered by soaring developing countries. These factors have led to the
1 Criteria for LDCs: In its latest triennial review of the list food prices and leading to “food riots”, have shaken present crisis, forcing a billion people to go hungry,
of LDCs in 2006, the United Nations Committee for
over 30 LDCs, where workers and peasants have drastically reducing biodiversity, and nearly ruining
Development Policy (CDP) used the following three criteria
for the identification of the LDCs. become unable to afford food items basic for sur- the ecosystem.
(i) A low-income criterion, based on a three-year average vival. Protests over grain prices in Haiti, Cameroon, Food has been declared a basic human right in
estimate of the gross national income (GNI) per capita Senegal, the Ivory Coast, Mozambique, Ethiopia, a series of World Food Summits and international
(under USD 745 for inclusion, above USD 900 for Madagascar, Mauritania and other parts of Africa agreements, including the Universal Declaration of
graduation);
(ii) A human capital status criterion, involving a composite
and a hungry children’s march in Yemen are some Human Rights (UDHR), the Preamble of the FAO
Human Assets Index (HAI) based on: (a) nutrition: examples.2 According to the Food and Agriculture Constitution, and the International Covenant on Eco-
percentage of population undernourished; (b) health: Organisation (FAO), 22 countries are particularly vul- nomic, Social and Cultural Rights. For nearly two
mortality rate for children aged 5 years or under; (c) nerable to the recent food price increases, because decades, the international community at high-level
education: the gross secondary school enrolment ratio;
and (d) adult literacy rate; and
they are not only very poor but also are highly de- meetings attended by heads of state and govern-
(iii) An economic vulnerability criterion, involving a pendent on food imports. In 2008-2009 Eritrea has ment has repeatedly reaffirmed its commitment to
composite Economic Vulnerability Index (EVI) based produced only about 30% of its food requirements. eradicating malnutrition and assuring food secu-
on indicators of: (a) population size; (b) remoteness; UNICEF warned that higher global food prices could rity for all. The Rome Declaration on World Food
(c) merchandise export concentration; (d) share of
be affecting up to 2 million Eritreans, more than half Security in 1992, the World Food Summit Plan of
agriculture, forestry and fisheries in gross domestic
product; (e) homelessness owing to natural disasters; (f) the population. UN agencies have projected that the Action adopted in 1996 and affirmed at the five-year
instability of agricultural production; and (g) instability of 1.3 million people living below the poverty line would review conference in 2002 pledged concerted efforts
exports of goods and services. suffer most. The FAO has warned that increasing towards eradicating hunger as an essential first step
To be added to the list, a country must satisfy all three
prices have “triggered a food crisis” in 36 countries. and set a target of halving the number of hungry
criteria. In addition, since the fundamental meaning of the
LDC category, i.e. the recognition of structural handicaps, Again, according to the United Nations World Food people by 2015.4 The Millennium Summit (2000)
excludes large economies, the population must not Programme (WFP), 12 out of the 16 “hunger hotspot and a series of follow-up meetings have reaffirmed
exceed 75 million. To be eligible for graduation, a country countries” are in the LDCs (Afghanistan, Djibouti, commitments to achieving food security and good
must reach threshold levels for graduation for at least
Ethiopia, Guinea, Haiti, Liberia, Mauritania, Nepal, nutrition for all. Despite the repeated commitments
two of the three criteria, or its GNI per capita must exceed
at least twice the threshold level, and the likelihood that Senegal, Somalia, Uganda, Yemen).3 by the world’s leaders on the urgent need to reduce
the level of GNI per capita is sustainable must be deemed hunger and malnutrition, progress in achieving the
high. See: <www.un.org/ohrlls>. targets and indicators under the Millennium Devel-
With regard to the 2006 triennial review, the CDP opment Goals (MDGs) has been extremely disap-
recommended that Papua New Guinea be included in, and 2 Martin Khor, “Global Trends,” The Star Online, 14 April 2008;
Samoa be graduated from, the list of LDCs. Equatorial see “LDC Watch: Food Crisis: Defending food sovereignty in pointing, notwithstanding the great strides that have
Guinea, Kiribati, Tuvalu and Vanuatu were found eligible for LDCs,” 2008. Available from: <www.ldcwatch.org>. been made in a number of individual countries. To
graduation for the first time. The General Assembly in its 3 See WFP, “Cash roll-out to help hunger hot spots,” Rome,
recent resolutions (59/209, 59/210 and 60/33) decided on 12 August 2008. Available at: <wfp.org/english/?ModuleID=
the graduation of Cape Verde at the end of 2007 and Maldives 137&Key=2899>; “UN System Response to the World Food 4 See FAO, “International Conference on Nutrition,” Rome,
in January 2011. At the end of 2007, Cape Verde became the Security Crisis (as of September 2008)”; available from: 1992; FAO, “World Food Summit Plan of Action, 1996; FAO,
only second country to graduate from the LDC group since <www.un.org/esa/sustdev/publications/trends_Africa2008/ World Food Summit: Five Years Later,” 2002. Available from:
its establishment in 1974. Botswana left the group in 1994. indx.htm>. <www.fao.org/worldfoodsummit/english/index.html>.
“
depend on the carpet sector. The lambskin industry
In Kenia we began to see impacts of the crisis late in 2008: reduced tourism followed by
has already been badly affected by a year of drought;
unemployment. Many Kenyans also rely on remittances from the U.S., which fell sharply.
now the financial burden on farmers is increasing
Due to the crisis, more families can not afford to send their children to school, and foreign with falling demand for this commodity at the inter-
investors are moving projects out of the country. Much of the land is going fallow and national level.
there were water shortages during the past year. All these factors, combined with the In Ethiopia, it is reported that this year’s import
high levels of income inequality and corruption that were already present, are a recipe revenue has declined by USD 803 billion. The Trade
for disaster for Kenya’s people and economy.
” Edward Oyugi (SODNET, Kenya)
and Industry Ministry claimed the current world
economic crisis has affected the export market for
Ethiopian produce, especially coffee and oil seeds.
In many cases, the major producers are the small
holding farmers that will directly be affected.
date, the human right to food has been continually Remittances and foreign employment
denied; food is considered more as an item for trade Remittances to the LDCs from people working in The way forward
than as an essential good for survival. other countries are also declining, as migrant work- The above situation, which is pushing millions of
ers lose their jobs due to the economic recession in people in the LDCs towards increased poverty and
Climate crisis the countries that provided employment. The IMF vulnerability, demands immediate and urgent action.
The concerns of LDCs about food, water and energy predicts a drop of between 4% and 8% in 2009. In order to overcome the global economic crisis and
security are deepened by the climate crisis that chal- Remittances are particularly important for coun- create an enabling environment for development
lenges the goals of inclusive and environmentally tries such as Haiti, Lesotho, and Nepal – where they in the LDCs, it is crucial that the international com-
sustainable economic growth. The LDCs, already amount to more than 15% of gross national income munity and the LDC governments come together to
plagued by poverty, natural disasters, conflicts and (GNI). Similarly, the export-oriented industries in combat the impacts of economic crisis in the LDCs.
geo-physical constraints, are now at risk of further LDCs such as garments are scaling down or even This will only be achieved with a fundamental
devastating impacts of climate change, including in- stopping production due to the economic downfall. transformation of the global financial architecture.
creased desertification, rising sea levels, increased Declines in remittances have also been felt in The dramatic failure of the current system not only
rainfall and risk of flooding and hurricanes, which Pacific LDCs such as Samoa, Tuvalu and Kiribati exposes its inadequacies, but also shines a spotlight
will perpetuate the cycles of poverty, food and fuel due to the effects of slowdown in the labour markets on the failure of current approaches to development.
crises, conflict, inequality, indebtedness and un- and high unemployment in the source nations, par- For many people living in poverty in LDCs, the cur-
derdevelopment. Even though the people living in ticularly in the USA, New Zealand and Australia. The rent model of economic growth has brought little
the LDCs are the hardest hit by increased climate already high rates of unemployment in the LDCs are benefit, if any. In seeking solutions to the problems
change, their concerns are rarely heard and ad- likely to rise further in near future, with a subsequent created as a result of the economic crisis, the follow-
dressed in the official negotiation processes at any increase in socio-economic conflicts and political ing actions are crucial.
level. It is therefore important to raise the voice of unrest. For LDCs that have invested in the establish- • Opening developed country markets to LDC
the climate change victims from the LDCs in the up- ment of offshore financial markets as a source of exports without any conditionality is neces-
coming climate negotiations, including UN Climate government revenue, such as Tuvalu and Kiribati, sary to promote fair trade and support the LDC
Change Conference in Copenhagen in December the value of the investment trust funds they set up is economies to regenerate and grow. Only 79%
2009 (CoP 15), where it is hoped that agreement expected to decline as world stock markets remain of LDC exports enjoy duty-free access to de-
can be reached on the principles for a new treaty to highly unsettled. veloped country markets as per the 2008 UN
replace the Kyoto Protocol. In Senegal, one of the LDCs in Africa, remit- MDG Gap taskforce report. Duty-free treatment
tances account for up to 10% of GDP. In 2008, they to 97% of tariff lines of LDC exports (arms and
Official Development Assistance (ODA) were estimated at close to EUR 1 billion, which is oil excluded), as committed by the 2005 WTO
Official Development Assistance (ODA) flows in the more than 11% of that year’s GDP. The decline in Ministerial Declaration, must be honoured.
LDCs are also predicted to decline as governments in remittances reduces household consumption in
• There is an urgent need to transform and re-
developed countries use resources to provide stimu- many regions along with the level of public works
structure the governance of the International
lus to their own economies and continue to bail out and construction projects. This, together with cuts in
Financial Institutions (IFIs) in order to promote
the financial institutions that have been at the centre government services, has resulted in more hardship
public accountability and transparency, which
of the economic crisis. Since most LDCs continue to and drudgery for women and children, particularly
must take place in accordance to the needs of
be highly indebted, the prospect of reduced aid flows in terms of health, education, livelihood and food
the LDCs. Additionally, democratic participation
has put pressure on LDC governments to maintain security.
of all countries in the negotiation with the IFIs
a balance between investing for development and
Exports and monetary institutions, with the UN at the
paying back loans, resulting in less resources being
centre, is critical to ensuring a more equitable,
directed to development needs. As a result, the LDCs In Afghanistan, major export items such as carpets
democratic and sustainable financial system.
are increasingly facing difficulty in fulfilling the basic and lambskin are now being badly hit by the financial
economic needs as well as the social and cultural crisis. Exports of carpets fell 25% and exports of the • In order to cope with the economic crisis in the
rights of their people. silky lambskin known as Karakul fell by 20%, accord- LDCs, all debts must be cancelled immedi-
ing to the Afghanistan Investment Support Agency ately, unconditionally and irreversibly. To
(export promotion agency). The livelihoods of more facilitate this process, there is an urgent need
Kinda Mohamadieh
Indeed, raising the poverty line from USD 2 a day to as the privileged have not shared, a good part of the
Arab NGO Network for Development USD 3 a day more than doubles the total number of region’s population is currently living in poverty or
Oliver Pearce people living in poverty from 45 million to 92 million. in poverty’s treshold. Moreover, countries in conflict
Christian Aid1 In Egypt, over 70% of the population lives on USD 3 such as Iraq, Lebanon, the Occupied Palestinian Ter-
a day or less; this proportion rises to over four out of ritories and Sudan have not experienced the consist-
five if the line is raised to USD 4 a day.2 ent growth trends witnessed by many of the other
The global economic and financial crisis comes at a Measurements related to higher poverty lines countries in the region.
time when countries and citizens have been trying to do matter, particularly at a time when families across
adjust to wildly fluctuating food and fuel prices. Like the region have recently had to absorb much higher Chronic unemployment
other parts of the world, the Arab region is experienc- costs for basic goods, including both food and fuel, One of the reasons for the persistent proportion of
ing shrinking economic activity, higher rates of pov- which account for a large proportion of their expen- people living in poverty in the region is chronic unem-
erty and unemployment, growing demands on social ditures. UN sources note that, as a result of the food ployment. In fact, even during those years in which
services, further economic insecurity and increasing crisis, around 31 million people in the Arab region economies were growing and individual incomes also
violations of economic and social rights. are hungry (about 10 % of the total population). This seemed to be on the rise, unemployment was high and
Past economic crises have had disproportion- reflects an increase of 6 million hungry people com- increasing. Other factors make this one of the major
ate impacts on the poor, and this one will be no dif- pared to 1992, including record numbers in Sudan concerns in light of the global crisis, including: (1) the
ferent in that regard. This means further stress on and Yemen,3 precisely during a period in which over- high birth rate and relatively young populations of the
communities that have already been suffering due to all human development indicators showed continu- region, which means that many new graduates and
climate change and fluctuations in food and energy ing improvements. Indeed, the food prices crisis has school leavers enter the labour force with diminish-
prices. Arab countries are particularly vulnerable to exposed the vulnerabilities in a region that imports ing prospects for work; and (2) the concentration
the fallout from the global crisis since recent gains more than 50% of food consumed. of economic activity in sectors with low job creation
in human development indicators are fragile and not Arab governments implemented a variety of capacities, such as real estate and finance.4
built on long-term Government policies that would measures in response to the food crisis, often includ- At a time of falling output across the globe, the
help safeguard their sustainability. Moreover, conflict ing direct provision of basic foods or increasing sub- gap between available jobs and numbers in the labour
and political instability are widespread and likely to sidies for them. These measures – together with con- force is likely to increase sharply. The return of nation-
worsen due to the economic downturn. trols on exports – have done little to ensure that prices als who had been working abroad as economic mi-
will not rise considerably in the future or that, more grants will further swell labour markets, with cutbacks
Key development challenges facing the fundamentally, supplies of basic foods will be suffi- in economic activity in the Gulf Cooperation Council
region cient. Core issues such as increasing food production, (GCC) countries having serious repercussions in
supporting small farmers in selling their products and poorer countries.5 It is therefore important that Gov-
Rising numbers of people living in poverty
accessing markets, ensuring poor consumers have ernments and other institutions on which poor and
The Arab region witnessed a noticeable reduction in access to affordable food and addressing the imbal- vulnerable communities rely – such as families over-
poverty levels from the 1980s to the early 1990s. Dur- ances in the global trade system and agreements on
ing the mid 1990s, however, the proportion of people agriculture have not been adequately addressed. 4 International Labour Organization (ILO). Global Employment
living in poverty – at the most basic USD 1 and USD 2 Trend Brief. Geneva: International Labour Office. 2007. The
per day benchmarks – rose and essentially remained Persistent and rising inequalities report indicates very high labour force growth in the Arab
region, averaging 3.7% annually between 2000 and 2005.
stagnant into the 21st century, with only a very gradu- The high degree of inequalities between countries, as In 2005–2007, unemployment exceeded 13%, while youth
al decline. Since the population of the region has been well as sustained inequalities within many countries, unemployment rates in the Middle East and North Africa
steadily growing, the total number of people living in is another notable feature of the region that has to (MENA) were the highest around the globe and estimated
by the ILO at 25.7% in 2003 (ranging between 46% in
extreme poverty has actually increased. be taken into consideration. The increase in wealth
Algeria and 6.3% in the United Arab Emirates). These official
Moreover, if the poverty threshold is raised a little in recent years has not translated into equity and, aggregate data are likely to both under-estimate the rate of
– for example from USD 1 to USD 2 a day or from USD general unemployment and also mask the higher rates in
2 to USD 3 or 4 a day – the numbers rise substantially. 2 Iqbal, F. Sustaining Gains in Poverty Reduction and poorer countries such as Egypt, where 20% would mean well
Human Development in the Middle East and North Africa. over 10 million unemployed citizens looking for work.
Washington, DC: The World Bank. 2006. 5 Khan, A., Abimourched, R. and Ciobanu, R. O. “The Global
1 This article is a shortened version of a policy document 3 According to Jacques Diouf, Director General of the UN Food Economic Crisis and the Impact on Migrant Workers.”
developed by the two organizations on the occasion of the and Agriculture Organization (FAO), speaking at the High ILO Global Job Crisis Observatory, 2009. Available from:
UN High Level Conference on the Economic and Financial Level Conference preparatory private sector and civil society <www.ilo.org/public/english/support/lib/financialcrisis/
Crisis and its Impact on Development. forum, 19 June 2009. featurestories/story11.htm>.
“
ing countries.10
We should form an international watchdog coalition to monitor what is going on with the
However, this increase has been concentrated
stimulus packages, and be able to have rapid responses if governments do not use this
in a few countries and tends to reflect the geopolitical
money properly. Rights based approaches to trade and finance must be constructed in and military events in the region and the underlying
order to end the crisis, above all by reconstructing safety nets in the North and South. We strategies of the main international actors. Indeed
don’t want to just “tweak” the economic model in order to fix it, but instead to reconstruct the less developed countries in the region (including
it completely. In order to advocate for this, political moments such as the UN Conference Comoros, Djibouti, Mauritania, Somalia and Yemen)
and the World Social Forum must be taken advantage of, in order to bring people and received only 25.3% of the ODA received between
social movements together at this critical time.
”
Tanya Dawkins (Global-Local Links Project, Miami)
2000 and 2006. On the other hand, 46% of the as-
sistance in that period went to Iraq. Overall, Iraq, the
Occupied Palestinian Territories and Sudan received
63% of the total assistance.11 It is evident that there
is a clear gap between the orientation of assistance
seas, aid donors and banks – are able to fill gaps when c urrent account deficits in 2008 amounted to 1% of flowing to the region and human development pri-
individual incomes are under such pressure. GDP in Egypt, 2.7% in Syria, 13.5% in Lebanon, and orities.12
18% in Jordan.9 The IMF reported a 1–2.6% current With regard to overall FDI, the Arab share during
Governments’ economic policy tools and account deficit for the Maghreb countries in 2008, the decade between 1990 and 2000 was only 2.1%
sources of revenue which is expected to worsen by 2012. With export (1% between 1990 and 1999). It then increased dra-
Economies in the Arab region have been growing opportunities shrinking, budget deficits are expected matically from USD 6 billion between 1995 and 1999
based on rentier and semi-rentier models. They in- to increase – especially due to decreasing demand in to more than USD 24 billion in 2006.13 Around 34%
clude oil producing countries, where the bulk of GDP the European market, which absorbed the highest of countries’ FDI comes from other Arab countries.
and government revenue comes from exports of oil proportion of exports from the Arab region, and limi- Between 1996 and 2006, the share of FDI as a per-
products, and non-oil producing countries, heavily tations on demand by Gulf countries that absorbed centage of GDP rose from 1% to 1.7% for the whole
dependent on different kinds of income, mainly re- exports from other labour-abundant Arab countries. region (excluding Iraq). In resource-poor and labour-
mittances, foreign aid and bilateral and multilateral In addition, revenues from taxes are expected to fall abundant countries, it rose significantly from 2.4%
loans.6 as a result of the crisis, with further falls expected in to 8%; in resource-rich, labour-abundant countries
Since the mid 1980s, Arab governments have wages, remittances and government transfers. The it went from 0.2% to 0.9%; and in resource-rich,
enhanced economic reforms triggered by the de- resulting diminution in public and private resources labour-importing countries it decreased from 0.7%
cline in income due to fluctuating oil prices and puts recent development gains at serious risk, lead- to 0.3%.
related shrinking remittances. Reform measures ing to a possible rise in the incidence and depth of These inflows – concentrated in Egypt, Jordan,
have also been externally driven, focusing on pro- poverty and unemployment, unless targeted meas- Lebanon, Morocco and Tunisia, as well as the United
grammes prescribed by institutions such as the IMF ures and decisive actions are undertaken. Arab Emirates – are being fuelled by the comple-
and the World Bank that focused on pro-cyclical The crisis has exposed the fluctuating nature tion of major privatization deals and increased in-
policy recommendations, cutbacks in government of aid and remittances as well as the limited returns vestments in the energy sector. For example, FDI in
spending, privatization, as well as liberalization of from trade liberalization. These policy options cannot Egypt increased to USD 6.1 billion in 2006 due to a
trade, interest policy and exchange rates.7 At the be considered factors of a stable nature on which telecommunications license and privatization in the
same time, social policies were increasingly mar- long-term sustained growth policy is built. Such banking sector. This suggests that FDI flows were not
ginalized. policy tools should be considered complementary designed according to human development priorities
In undertaking policy choices and designing to a more stable policy that needs to be developed in and did not prioritise social added value.
measures, governments in non-oil producing coun- the region, with significant orientation towards giv- It is reasonable to assume that both ODA and
tries have increasingly given weight to aid flows, ing primacy to supporting intra-regional production FDI may not be delivered according to previous
foreign direct investment (FDI), trade liberalization cycles and intra-regional trade as well as domestic projections due to the global tightening in budgets.
and remittances, while oil producing countries consumption and production. This will mean less investment per person at a time
continued to focus on rent from oil exports.8 How- when falling incomes from hydrocarbons and taxes
ever they have seen increasing budget deficits, and Aid and foreign direct investment (FDI) have already resulted in tight budgets. It will also put
For some Arab countries, aid has become a signifi- greater pressure on budgets in poorly resourced and
cant proportion of GDP, particularly in countries
6 Allisa, S. “The Challenge of Economic Reform in Arab
World: Toward More Productive Economies.” Carnegie
affected by conflict such as Iraq, Lebanon and the 10 Mahjoub, A. “Official Development Assistance in
Endowment for International Peace, May 2007. Available Occupied Palestinian Territories, though amounts Arab Countries.” Prepared for the Arab NGO Network
for Development in preparation for the Financing for
from: <www.carnegieendowment.org/publications/index. fluctuate greatly. The net official development assist-
cfm?fa=view&id=19147>. Development Review Conference (Doha, 2008).
ance (ODA) given to 22 Arab countries by all donors
11 Another large recipient of aid in the region is Egypt; between
7 Al-Jourchi, S. “Economic and Social Rights: Preliminary reached USD 17.1 billion in 2006. This was almost
Review of International and Regional Initiatives”. Prepared 2000 and 2006 it received 10% of the ODA to Arab countries
for the Arab NGO Network for Development, 2008. from the Development Assistance Committee.
9 Saif, I. and Choucair, F.“Arab Countries Stumble in the Face
8 The World Bank has indicated in several of its reports that of Growing Economic Crisis”. Carnegie Endowment for 12 Ibid.
the GDP growth in resource-poor and labour-abundant International Peace, May 2009. Available from: 13 This section is based on numbers in World Bank. Economic
Arab countries has been driven by strong flows of tourism <www.carnegieendowment.org/files/economic_crisis_wc_ Developments and Prospects: Job Creation in an Era of High
revenues, remittances and increasing FDI. english.pdf>. Growth. Washington, DC: World Bank, 2007.
$ Billion
2007
to trade, investment and capital flows with countries
60 2008
in other regions. Yet, despite the many reforms, total
trade in 2005 in Arab countries represented only 2009
40
4% of world trade. Furthermore, despite massive
hydrocarbon exports and trade liberalization, the 20
region accounts for only 5.5% of global exports, of
which 90% is oil.14 0
On the regional front, despite the launch of the
-20
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removal of tariffs for the movement of goods be-
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“
attitude towards the Lisbon Treaty it would probably When we look at the welfare state and social protection systems the capacity of the EU
be in favour of the Lisbon Treaty”.8
Member States to address the rising demand for social security varies greatly. Thus in
Europe’s role some cases we have increased social and unemployment benefits, extension of cover-
in promoting development age for unemployment as well as social benefits, tax rebates or exemptions for specific
The EU is also claiming leadership in efforts to mitigate groups including pensioners. On the other hand, other States are cutting back benefits.
the social effects of the crisis in developing countries. Hungary is reducing subsidies and private sector wages, as well as cancelling pension
As EC President Barroso argued, “Europe has taken expenditure plans, and Finland is also expecting a reduction in social service spending.
the lead in ensuring that the G-20 lays foundations To offset the effect on the labor market, some countries also try to pursue active employ-
for a fair and sustainable recovery for all, including ment policies by maintaining workers through flex time, but despite these efforts the
”
developing countries”.9 However there is an asym- effects are still very drastic.
metry between EC measures to address the effects
of the crisis internally and those to help developing Verena Winkler (Eurostep, Belgium)
countries to do so, as shown by the funds injected
into European economies compared to funds avail-
able to help developing countries. This asymmetry is
also seen in its support to the IMF, which has imposed GNI in 2015 in ODA.12 Yet Italy, Ireland, Latvia and and the conclusion of Economic Partnership Agree-
strong conditionalities on loans to poor countries, Estonia have already slashed their aid budgets as an ments (EPAs).
preventing them from implementing counter-cyclical outcome of the crisis.
economic policies to address the crisis. At the same time the EC has proposed speeding Budget support
As export revenues, foreign investment flows up aid delivery by “frontloading” a significant por- Recognizing that poorer economies are in urgent
and remittances fall sharply, developing countries tion of financial transfers to developing countries, need of external finance as a result of the crisis, the
are hard hit by the global financial and economic amounting to EUR 4.3 billion in 2009. This includes EC ‘frontloading’ proposals envisage increased use
crisis. The World Bank estimates that developing EUR 3 billion delivered in the form of budget support, of budget support, including some EUR 500 million
countries may face a financing gap of USD 270 to EUR 800 million for the food facility and EUR 500 mil- from the 10th European Development Fund to support
USD 700 billion and as many as 53 million people lion through an ad hoc FLEX mechanism designed to African, Caribbean and Pacific (ACP) countries hard-
are likely to fall into poverty in 2009.10 Bank president help the most vulnerable countries. However, this est hit by the crisis. The EC also indicated it would
Robert Zoellick, speaking in London on the eve of would not consist of new finance, suggesting that if review ongoing budget support operations in most
the G-20 meeting, said that an estimated “200,000 agreed, there would be less funding available in fu- vulnerable countries in order to assess possibilities
to 400,000 babies will die this year because of the ture years. In addition, Member States who will have for frontloading disbursements. The Commission’s
drop in growth”.11 The UN estimates that funding to provide the resources are already resisting. argument in favour of budget support is that it is a
necessary to mitigate the effects of the crisis might Parallel to their aid commitments, European quick impact instrument allowing long-term predict-
be as much as USD 1 trillion. Yet many developing countries have contributed some USD 100 billion able financing for government expenditure including
countries have limited fiscal space to react to the to the USD 1.1 trillion extra money for the IFIs. The in social sectors such as education and health.
crisis, making external support critical. USD 50 billion provided to safeguard development in However, budget support raises a number of
Although Europe recognizes that developing low-income countries does not appear to be accom- concerns. First, internal capacity and opportunity
countries will face a crippling financing gap, its com- panied by any greater flexibility in fiscal and mon- to monitor budgets and resource allocation, which
mitments to official development assistance (ODA) etary policies to access IMF loans. Despite the recent is critical for democratic accountability, is lacking in
remains insufficient. With almost EUR 50 billion dis- “modernization” of IMF conditionality policies, the most countries. The use of international accountancy
bursed in 2008, aid volumes are meagre compared same old recipes of tight fiscal discipline and cuts in firms to monitor implementation increases the ten-
to resources injected into European economies to government spending seem to apply. In that context dency for budget support to increase governments’
safeguard banks and boost growth. In April 2009, the ability to invest in the social sector remains low.13 accountability externally, undermining internal
EU governments had committed EUR 3 trillion to Once again there is a clear contradiction between the “ownership” and democratic accountability through
support financial institutions through guarantees or counter-cyclical policies applied within Europe and national parliaments. Second, the EC has identified
cash injections. If this level of finance can be made the fiscal constraint imposed on developing coun- a number of conditions that should be met before
available so quickly to support financial institutions, tries.14 If Europeans think that expansionary financial budget support is considered, including democracy
it is difficult to understand why European govern- and monetary policies are the way out of the crisis, and respect for human rights. However, studies of
ments are unable to increase their aid budgets. why do they promote the exact opposite policies in a number of budget support agreements find little
In May 2009, EU Member States confirmed poorer countries? evidence of any comprehensive assessment being
their intention to meet their collective promise to made of these conditions being in place.15 Finally,
allocate 0.56% of EU GNP in 2010 and 0.70% of EU The crisis, a means to further the EC includes budget support in its calculations
Europe’s interest? to meet a legal requirement established on the in-
Another impact of the crisis on Europe’s relation with sistence of the European Parliament to use 20% of
developing countries appears to be the acceleration its aid for basic health and education, even though
8 Smyth, J. “Crisis likely to favour Lisbon Yes – Barroso”. The of controversial measures such as budget support the OECD/DAC, which manages the classification
Irish Times, 8 May 2009. Available from: <www.irishtimes. system of development aid, considers that budget
com/newspaper/world/2009/0508/1224246132086.html>. 12 Council of the European Union, 18-19 May 2009, Press support should be classified separately from alloca-
9 European Commission. Commission first to act on G-20 with release. Available from: <www.consilium.europa.eu/uedocs/ tions to the health and education sectors.
strategy to support developing countries. 2009. Available cms_data/docs/pressdata/en/gena/107921.pdf>
from: <europa.eu/rapid/pressReleasesAction.do?reference=I 13 Ibid.
P/09/550&format=HTML>.
14 While transition countries such as Latvia and Romania are
10 World Bank News, 12 February 2009. also obliged to seek IMF loans, they are in a better position
11 Eurodad. Not much on offer for poor countries to counter the to do so as the EC has raised a EUR 50 billion loan facility to 15 Alliance2015. “The EU‘s contribution to the Millennium
crisis. 2009. Available from: <www.eurodad.org/whatsnew/ help non-euro area European countries to cope with balance- Development Goals Poverty Eradication: From Rhetoric to
articles.aspx?id=3599&LangType=1036>. of-payment facilities. Results?” Ed. EEPA, Brussels, September 2008.
* “Peoples’ Voices on the Crisis” endorsing organizations: Social Watch, Eurostep, LDC
Watch, Institute for Policy Studies, Global Policy Forum, Center of Concern, ESCR-Net,
Institute for Agriculture and Trade Policy, Global-Local Links Project, Jubilee USA
Network, Jubilee South, GCAP Feminist Task Force, Alliance for Responsible Trade,
Miguel D´Escoto Brockmann at the Peoples’ Voices event. Women’s Environment and Development Organization, International Council for Adult
Education, UN Non-Governmental Liaison Service, Global Action on Aging, Latindadd,
US Human Rights Network, CONGO Social Development Committee, Sub-Committee
This forum was also an opportunity for civil society leaders to share on the Eradication of Poverty, Hemispheric Social Alliance, Womens’ Working Group on
ideas and experiences on how to construct a global movement with local Financing for Development, Medical Mission Sisters International, World Federation of
roots that can push for a new economic system based on human rights and United Nations Associations, International Youth and Student Movement for the United
environmental sustainability. Nations, Enlazando Alternativas, Transnational Institute, Our World Is Not For Sale
Network.
“Peoples’ Voices on the Crisis” was held in the context of the landmark Video clips from “Peoples’ Voices on the Crisis” are available from the Social Watch
UN Conference on the Financial and Economic Crisis and its Impacts on YouTube channel: <www.youtube.com/SocWatch>.
100 100
95
5 See: <www.mtp.gov.dz/autoroute%20est-ouest.htm>.
6 See: <www.lemaghrebdz.com/lire.php?id=13393>.
7 Intervention by Prof. Farid Yaici: “The effects of the crisis on
the Algerian economy“. Seminar organized in collaboration
with the Ministry of Industry and Investment Promotion.
52
SW2009 ING v02.indb 52 39 8/27/09 7:00:07 PM
a llowances, along with incentives for employment c onsidered “unemployable”, particularly women number of formal wage earners. A child whose father
registration and other measures. This approach ap- with children or who might give birth. According or mother is outside the formal labour market, as a
pears to be grounded in a growing confidence in to official data, 504,784 families were in the pro- self-employed worker or as a beneficiary of a social
the market as a focal point for integration and the gramme by August 2007. Benefits to these families programme, should benefit from these programmes
preferred mechanism for meeting individual and so- varied according to the number of children in the as well.
cial needs, supplemented by a series of “temporary” household below the age of 19, and disabled people Similar discrimination is evident in income
policies. of any age in their care. The basic benefit is 155 Ar- transfer social programmes. The PF provides moth-
Income transfer programmes for sectors out- gentine pesos (USD 42) and may be as much as 305 ers with 45 pesos (USD 12) per child, while a child
side the formal labour market experiencing various pesos (USD 82) if the family includes six minors. who is lucky enough to have two parents in the for-
types of “vulnerability” include the Unemployed Mothers with seven or more children are eligible for mal work sector may receive as much as 100 pesos
Heads of Household Plan (PJJHD), established in re- a pension of 390 pesos (USD 105). (USD 27) through the family allowance system.
sponse to the economic crisis and high level of social Despite the scale of these programmes, they
conflict during final years of currency convertibility. are hardly responsible for the drop in poverty and The new scenario
This programme focuses on providing direct mon- indigence percentages between 2002 and 2007. It is possible that the international crisis may be
etary aid (about USD 40 per beneficiary). It is billed Their contributions can at best be characterized as sparking a “rediscovery” of poverty and open a win-
as “guaranteeing the family right to social inclusion”, “relief”, rather than a strategy to “overcome” pov- dow of opportunity for discussion of universality.
which is understood to mean ensuring that children erty.10 Above all, in the shadow of the international In an encouraging sign, a range of political sectors
attend school, that people can get health care, that crisis, the persistent and intractable nature of the have proposed income transfer plans for children,
recipients participate in the formal education system situation makes it truly alarming. Although PJJHD with a variety of benefit levels and various degrees of
and/or labour training activities that will contribute has far fewer recipients than it did during 2001-02 “universality”. So far, they have been discussed only
to their future employment, and that they have an crisis, their numbers are still significant for a country in parliamentary committees; none have reached
opportunity to participate in productive projects or that has experienced considerable economic growth. the full Congress. However, the province of Buenos
community service, in accordance with the method Furthermore, at this point access to both PJJDH and Aires, the most significant in the country in terms of
of “compensation”.7 PF is only available to people who obtain a court both political influence and population, is gradually
One of the plan’s major achievements has order. For many sectors, universal coverage is only implementing a “universal” benefit policy.
doubtless been its success in assisting large num- a dream. Although the universal policies suggested so far
bers of people within a short period of time. The will not solve the problem of poverty and exclusion,
PJJHD began operations in June 2003, and reached Need for universal social policies they could generate a social policy appropriate to
1,992,497 people. In November 2007 it had 795,274 Increases in employment and income have been the socio-economic context and the changes in the
recipients on its rolls.8 Since then, the number of largely confined to the formal labour market. The labour market. This will only happen if policymakers
beneficiaries has dropped, due to rising employ- State has created and maintained macroeconomic pay attention to the transformations the economy
ment, young people aging out as they passed their conditions that have spurred an economic revival has undergone in recent years and avoid policies
19th birthday, and the transfer of many beneficiaries and supplemented this resurgence by introducing appropriate to other contexts, such as a full-employ-
to other social programmes, such as the Families for a variety of policies and actions such as a minimum ment economy.
Social Inclusion Programme (PF). wage, aimed at boosting the incomes of wage-earn- The conclusion is obvious: during the economic
In March 2006, during the period of economic ers in the formal sector. The position of these work- recovery, the State has not substantially modified
growth, the Government introduced a training and ers has improved over what it was under the policies the country’s high concentration of income and ex-
employment insurance plan for recipients of PJJHD pursued in the 1990s. However the persistence of treme inequality. A transformation agenda should be
aid who were considered “employable” or on the a high level of unregistered employment, poverty based on the principle that social policy is essential
way to becoming so, however only 32,000 recipients and indigence diminishes the impact of measures to the construction of citizenship based on respect
joined the programme in its first 12 months.9 aimed at formal workers and increases the disparity and the enhancement of individual and social rights.
The PF was created within the orbit of the Min- between the two sectors. Universal policies could provide an effective strategy
istry of Social Development to provide for people This gap is accentuated by income transfer for overcoming the exclusionary dynamics of recent
programmes. For example, workers within the decades. Formulating them will only be possible if
7 Decree Nº 565/02 2002. formal labour market receive a family allowance the public has access to reliable and extensive gov-
8 According to Ministry of Labour, Employment and Social (AAFF) per child. Those not eligible include workers ernment data on socio-economic conditions. n
Security information, in December 2008 the total number of
in the informal economy, self-employed workers,
employment programme beneficiaries amounted to 970,000.
However, in establishing a non-differentiated benefit for unemployed workers who are not unemployment
every unemployed head of household, the PJJHD did not insurance beneficiaries (such as those who ben-
make any distinction regarding the composition of the family efit from social plans), domestic workers, migrants,
group. Thus, the larger number of people in the household,
persons deprived of their freedom or persons who
the smaller the impact of the benefit. It also lacked any
administrative and/or judicial means of making claims. are institutionalized due to mental health problems.
Although many appeals on the grounds of unconstitutionality Thus, the 2001 National Population Census found
have been submitted, the results are not encouraging, that 70% of all children were excluded. Although it
either with regard to changing public policy, or in terms of
should be noted that the aim of the family allowance
promoting dialogue and interaction.
See: Pilar Arcidiácono and Laura Royo. "More market and was not to cover each child directly, but to encour-
fewer rights: the State's response to the housing crisis". age family growth and promote an increase in the
Social Watch Report 2007.
9 “The labyrinth of social plans”. La Nación, 4 March 2007. 10 INDEC (2007).
52
SW2009 ING v02.indb 54 8/27/09 7:00:12 PM
is viewed as a departure from the social norm and
has caused friction between the two communities,
especially those adjacent to each other. In general,
the lower standard of living and lack of social life
among these workers generates an environment
conducive to crime, especially sexual assault, bur-
glary, theft and physical abuse/assaults. Poor living
conditions, mistreatment from employers, such as
the withholding of payment, often for months, has
led many foreign workers to suicide, since they find
themselves in debt and unable to send money back
to families in their countries of origin.
Conclusion
Despite the fact that the Bahraini economy is
booming with a high growth rate and increasing
per capita income, the benefits of globalization
have not extended to the population as a whole.
There are increasing numbers of millionaires, and
a shrinking middle class and impoverished lower
class. The country has been witnessing repeated
confrontations and tension between impoverished
communities and security forces, especially in the
villages, which is why the World Bank now ranks
Bahrain low in political stability.3 There is need for a
strategy to shield society from the negative impacts
of globalization. n
Unnayan Shamannay
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Taifur Rahman
Arifur Rahman 100 100 100
BCI = 56 GEI = 53
Children reaching Empowerment
5th grade
55
Since its independence in 1971, Bangladesh pur-
sued an inward looking development strategy with
19
excessive government intervention in every aspect of
0 6 0 0
economic activity. With the vision of a socialist type
of agriculture, cooperative 20
34 farming was encouraged 93
99 while the100procurement and distribution of seed, fer- 54
100 100 100 100 100
86 100 100 74
tilizers, pesticides and all sorts of agricultural98equip- Births attended by
ment was controlled by the Government. A series of skilled health personnel Survival up to 5 Economic activity Education
measures, quantitative IEGrestrictions,
of Bahrainhighly
= 46 differen- BCI of Bangladesh = 56 IEG of Bangladesh = 52,7 BC
= 99 tiated tariff rates (ranging from 0% to 400%), and which translated into sectoral policies that supported policies and the liberalization of food grain imports
huge subsidies, along with an overvalued exchange macroeconomic liberalization. Reform measures by the private sector.
rate, were put in place to protect domestic farms adopted included the rationalization of tariffs, the The liberalization efforts were not confined to
from competition. This restrictive environment was liberalization of investment in irrigation, the privatiza- the agricultural sector. The whole economy began
reinforced by domestic market policy interventions tion of trade in fertilizers, agricultural machinery im- to go through all-out liberalization, particularly after
in the form of credit ceilings,
100 arbitrary licensing and ports, seed delivery and 100food
98
distribution systems, the early 1990s, and became
100 one of the most rapidly
price controls. as well as management of agricultural research and liberalized in the world. Although some claim that
These policies did not result in a sustained extension systems. Moreover, reforms in farming this was done too rapidly, the World Bank observed,
increase of production and productive efficiency; led to a shrinking role of the Government; this was “While trade liberalization occurred in fits and starts
43
on the contrary, the gap between 29 demand for and reflected in the distribution of goods, the reduction of in Bangladesh, stronger and more decisive commit-
supply of agricultural products widened over the subsidies, the liberalization of markets with produc- ment to trade liberalization was seen in the majority
years. To find a way out of 0this crisis in the 1980s, 0
ers’ price incentives, the gradual elimination and nar- of the rest of the world. As 0
a result Bangladesh lags
the country pursued a policy shift away from state rowing down of the public grain distribution system, behind on most measures of trade openness. Even
100 100 100
interventionism68 to more market-oriented policies price stabilization through open tender procurement after the reduction
64 in nominal protection in the finan-
100 100 100 100 100 100 100 100 74
98 cial year 2007 budget, Bangladesh has the 97 highest
level of trade protection in the region, which itself is
BCI of IEG of Czech Rep. = 68,1
= 99,6 CHART 1. the most trade restrictive region in the world”.1 ICB de
IEG of Cyprus = 65,1 República Checa = 99,2
Despite mounting pressure for more liberaliza-
Global Climate Global tion, the results of past liberalization measures must
Price Crisis Change Financial Crisis also be assessed. Did common people benefit from
the process of liberalization or were the only ben-
eficiaries some booming multinational giants? One
Global Increased frequency
food price
100increase and severity of
Reduced flow
100
of the major consequences100
of the all-out reforms
of remittances has been increased dependency on imports, includ-
natural disasters
81
ing agricultural products. As a result, despite being
an agricultural nation, the country has been losing
control of the prices of many ordinary products that
Shortage of Reduced people need every day.
8 purchasing
The impact of theNO VAcrises
0 food supply 0 0 0
capacity global
92 37 89 95 The diagram in the opposite page illustrates the 99
100 100 78 100 100 100
impact100of the inter-related global crises in100
climate 100
Increased
food insecurity, poverty change, commodity prices and economic and finan-
and vulnerability cial crises on poverty and food insecurity.
= 68,5 IEG of India = 40,7 BCI of Irak = 88,4 IEG of Iraq = 0 BC
1 World Bank. Bangladesh: Strategy for Sustained Growth,
Source: falta fuente falta fuente falta fuente!!!!
Bangladesh Development Series, 2007.
64
2 European Parliament. “Climate Change Impacts and 4 UNICEF. “A Matter of Magnitude. The Impact of the Economic
Responses in Bangladesh”, 2008. Available from: <www. Crisis on Women and Children in South Asia”, 2009.
europarl.europa.eu/activities/committees/studies/download. 3 See: <www.idsa.in/publications/stratcomments/ Available from: <www.unicef.org/rosa/Complete_Matter_of_
do?file=19195>. AnandKumar300708.htm>. Magnitude.pdf>.
100 100
BELGIUM
0 0
When the shares of banks and the42principal enterprises in the country collapsed, the Government went 100
87
to the rescue of the banks
100 and provided deposit guarantees.
100 The crisis
100 81is still causing unemployment
83 100 100
to rise, while the cost of the bank rescue is making itself felt in the drastic increase of public debt, with
serious repercussions in the provision of social security.
BCI of Uganda = 59,2 IEG of Uganda = 67,2 BCI o
Unido
CNCD - 11.11.11
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Arnaud Zacharie
Gaspard Denis 100 96 100
BCI = 98 GEI = 72
Children reaching Empowerment
5th grade
56
In 2008, two of the largest banks in Belgium, For-
tis and Dexia, began to experience serious prob-
lems, worsened by the financial crisis which other
0 0
banks in the world were suffering. The shares of
Fortis and Dexia, like most of the shares in Belgian
99 100 94
companies, collapsed. The Government’s reaction 100 100 100 64 100 100
was to go to the rescue of the banks and guarantee Births attended by 96
deposits, but the cost of the financial collapse skilled health personnel Survival up to 5 Economic activity Education
has still been particularly serious, not because ICB de Belgica = 98,3 IEG de Belgica = 72,2 ICB de Co
of the bail-out funds paid out by the State, but 1.4 billion) from the State. This investment has in- ous problem arose: the weight of the public debt.
because of the vast increase in the level of public creased French participation from 11.5% to close Although Maastricht convergence criteria stipu-
debt which the country had been attempting to to 28% of the bank’s capital and, as a result, made lated that a member state’s debt should not exceed
reduce for about fifteen years. it possible for the French share to achieve a minor- 60% of its GDP, Belgian public debt exceeded it by
The State has spent almost EUR 20 billion ity with blocking capacity in the banking group. 130% in 1993 and 1994.
(USD 28 billion) in providing a capital increase for The KBC bank, for its part, has benefited from Because of this, an austerity plan was im-
the banking sector. To this sum should be added three successive rescue plans to date. First, in Oc- plemented with painful results for the levels of
EUR 25 billion (USD 35 billion) offered by the State tober 2008 the Federal State intervened providing public spending but it made possible to reduce
in the form of guarantees, due to which the total EUR 3.5 billion (USD 4.9 billion). Then, in January the country’s debt, which had descended to 84%
bill for public aid given to banks is close to EUR 2009 the Flemish Region paid out EUR 2 billion of its GDP in 2007.
45 billion (USD 63 billion). In addition to debt, the (USD 2.8 billion) and lastly, in May it again issued Today, the cost of the bank bail-outs and the
consequences of the rescue also include budget State bonds for a total of EUR 2 billion (USD 2.8 impact of the financial crisis on public finance
problems, rising unemployment and uncertainty billion) in order to finance the KBC group. In all, have resulted in a sharp increase in the rate of
regarding the State’s capacity to continue to fi- to date KBC has received close to EUR 7.5 billion debt, reaching 89.7% in 2008, while the Belgian
nance its social model. (USD 10.5 billion) from Belgian tax-payers. National Bank forecasts a rise to 103% in 2010.
Regarding the bail-out of Fortis, the Belgian- This constitutes a debt of over EUR 30,000 (USD
The cost of rescuing the banks Dutch group, capital participation of the Belgian 42,000) per inhabitant. The Government deficit
The rescue operations carried out by the Federal State reached 99.93% in October 2008, which has naturally followed the same curve: from 1.2%
Government and the federated bodies led to the constitutes a total of EUR 9.4 billion (USD 13.16 of the GDP in 2008 it is expected to soar to 5.5%
nationalization of Fortis Banque, as well as a capi- billion). However, it has shown from the start a in 2009.
tal increase for the Dexia Banque, the KBC group willingness to sell 75% of its holdings in Fortis to
and Ethias, an insurance company. Within a term the French group BNP Paribas. Nevertheless, the Social security and unemployment
of three months, public authorities reappeared in opposition of Fortis Holding shareholders to the Due to the Government deficit, financing for social
the Belgian banking sector, after having abandon- dismantling of their group has twice forced the security has also been affected, with a deficit of
ing it almost two decades earlier. However, condi- Government and BNP to revise their agreement EUR 2.45 billion (USD 3.43 billion) in 2009 due to
tions for the financial institutions’ plans for a capi- for the transfer of Fortis Banque. The third version the drop in revenue from social security contribu-
tal increase have been to a large extent, weak and was finally approved by the shareholders in two tions and VAT. The Government forecasts a deficit
obscure. Thus, rescue measures have adapted general assemblies held on 28 and 29 April 2009 increase for social security of EUR 5.3 billion (USD
perfectly to the old liberal adage: “socialize losses, in Gand (Belgium) and Utrecht (Netherlands). In 7.42 billion) in 2010.
privatize profit”. short, in exchange for transferring its holdings in Lastly, unemployment is still on the rise due
Dexia, a Franco-Belgian-Luxembourg bank, Fortis Banque to BNP Paribas, the Belgian State to the recession of the economy. In June 2009,
received a capital increase of EUR 3 billion (USD has received 11.6% of the French banking group’s 443,574 people were unemployed, which means
4.2 billion), from Belgian public authorities (the capital. that there are 43,433 new unemployed persons
federal State and federated bodies). The French over the past year.
supplied an equivalent sum of EUR 2 billion (USD Public debt soars In June 2009, the High Council for Employ-
2.8 billion) through the French state financial in- When Belgium applied for inclusion in the Euro- ment, which answers to the Ministry of Employ-
stitution Caisse des Depots, and 1 billion (USD pean single currency in the early 1990s, a seri- ment and Equal Opportunities, published a report
1 See: <www.emploi.belgique.be/defaultNews.
aspx?id=23984>.
73
CEDLA
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Javier Gómez and Gustavo Luna1
100 100 100
BCI = 79 GEI = 66
83 Children reaching Empowerment
5th grade
The first result of the world economic crisis was
to shatter the myth that the capitalist system could
38
bring about a sustained improvement in the living
conditions of workers and their18families. This basic
0 0 0
failure, which is most evident in the wealthiest coun-
tries on the planet (the epicenter of the latest financial
85 55 been glaring in54the less devel- 94 97
100
earthquake)100
has long 100 100
61
100 100 66 100 100
oped countries in the world periphery. Births attended by 95
Bolivia’s economy has been a testimony to the skilled health personnel Survival up to 5 Economic activity Education
fragility reflects the nature of capitalist development, from money sent home by workers who had emigrat- tween 2005 and 2007 the proportion living in extreme
100 which is based on realizing profits and in the process ed. In 2007 and 2008 these remittances poured more 42
55
100
of doing 100
that generates massive inequalities97among100 100
than USD 100
1 billion into the country, more than 6% of 100
3 According 100the
to the National Statistics Institute, in 2007, 100
incidence of households final consumption expenditure was
and within countries. GDP.2 This cash contributed to increase household
2.98% of the GNP, an increase of 3.91% compared to 2008.
This was a larger figure than the one reached in the previous
= 99,5 IEG of Italy = 64,5 BC
1 Javier Gómez is an economist and executive director 2 Central Bank, Bolivia. In 2008, remittances reached USD decade (1998).
of CEDLA. Gustavo Luna is a commentator and general 1.097 billion, an increase of 7.5% compared to 2007. This 4 Escóbar, Silvia. Desempleo, condiciones laborales e
coordinator of CEDLA. figure was 6,4% of the GNP. ingresos. Mimeo. CEDLA, 2009.
62
economy as a whole contracted significantly. foreign investors generally had little choice but to policy has been appallingly managed during the crisis
leave, Brazilian investors preferred to stay. As a re- by monetary authorities that are so far to the right of
BCI of
sult, the problems with theKenya
balance= of
71payments did any other central bankerIEG of Kenya
in the world= 59
that even private BCI
1 Professor of Economics at the Federal University of Rio de
Janeiro and Consultant at the Brazilian Institute of Social and not become as serious and paralyzing as they had banks seem to be bothered by their inability to offer any
Economic Analyses (Ibase). been in the recent past. constructive contribution to economic recovery.
Social unrest
Bulgaria, the poorest country in the European Union, has been enjoying some economic benefits from
joining the EU. However, Government assurances that the economy is solid notwithstanding, investment
and exports are dropping and the GDP will soon contract. Government measures to mitigate the impact
of the global crisis will probably not be sufficient. NGOs are demanding that both employers and the
Government adopt emergency measures to rein in inflation, agree to wage settlements that increase real
income and assess the impact of the crisis on the most vulnerable sectors of society.
47
SW2009 ING v02.indb 66 8/27/09 7:00:41 PM
first two months of 2009 were 27% lower than in the budget. The remaining 10% is to be released based dispute. Although the Government expresses confi-
first two months of 2008, while the drop in imports on budget developments.7 This solution could be dence in corporate profitability, NGOs are less certain
was even sharper (32%), suggesting that domestic pragmatic, but it is far from transparent. Indeed, for- due to the paucity of data available.
demand has contracted rapidly. As a result, the current eign observers, probably not aware of the 10% rule,
account deficit declined from an annualized rate of perceive a budget based on unrealistic revenues. The financial sector
25.8% of GDP in the first two months of 2008 to 11.6% It is important to ensure that mechanisms to im- Strong policies will also help the financial sector,
in the first two months of 2009.5 Indeed, leading indica- plement the 10% rule are clearly understood. Some which is currently well capitalized and profitable. In
tors of economic activity suggest that the economy plans and programmes may need to be postponed. the period ahead profitability is likely to decline, as
may already be contracting. The International Mon- Ministries should signal their spending priorities foreign funding is becoming scarce, strong competi-
etary Fund (IMF) recently predicted that the Bulgarian early on and make sure they are clearly communi- tion for domestic deposits has raised the cost of
economy will shrink by around 3.5% in 2009 and 1% in cated to the public. Strict budget execution is also es- funds, and lending growth is expected to slow. At the
2010, down 2% from its April 2009 projection.6 sential. Implementation of the 10% rule would only same time, the reliance of banks on foreign funding
An international gas crisis in January 2009 slow spending growth from a budgeted 17% to 11% for new lending makes them vulnerable to the current
practically erased whatever positive momentum re- in real terms. If GDP growth slows to the projected disruption in international financial markets. Never-
mained from 2008. When the dispute between Rus- 2%, the fiscal surplus is likely to fall to 2% of GDP.8 theless, banks are well positioned for a slowdown,
sia and Ukraine cut gas supplies to Europe, Bulgaria and have strong capital and liquidity cushions.
was among the most unprepared countries, with no Accelerate reforms Unemployment will probably not reach dou-
real alternative sources of gas. The cost in lost pro- Fiscal and structural reforms should be accelerated, ble digits. Those most likely to be jobless are young
duction is estimated at more than EUR 250 million notwithstanding the election cycle. Problems regard- people who lack an employment history, low-skilled
(about USD 333 million). The Government officially ing the disbursement of EU funds underscore the workers, elderly workers, people with disabilities and
requested compensation from Russia, but even if need to further upgrade control systems. The Gov- women. It should be noted that the number of unreg-
some compensation is provided, the long-term ef- ernment has introduced several changes to social istered unemployed is at least equal to the number
fects of the halt in production could pose risks to the security contributions and social policy-– e.g., a de- registered, and may be higher. Migrant workers are
entire economy. crease in social insurance contribution rates paid by also returning, which ends the remittances they were
employers and an increase in maternity benefits. In sending home to their families. Some projections
Government priorities in fiscal policy making further reforms, maintaining fiscal neutrality estimate that some 20% of short-term emigrants
In this difficult environment, maintaining confidence is essential to ensuring the long-term sustainability may come back—mainly from Greece, Spain and
in both the currency board and the financial system of the public finances.9 To accelerate convergence to several other EU countries where unemployment is
is crucial. The two are mutually dependent: a strong EU standards, the State has to complete the re- rising sharply.
and resilient financial system is needed to sustain form of education, make progress in health care
the currency board; and confidence in it bolsters reform and improve the efficiency of the public and The civil society perspective
the financial system. The IMF believes that the cur- private sectors. NGOs and trade unions do not agree that reduc-
rency board can enable the country to cope with the ing social expenditures is acceptable in times of
turbulence, since Bulgaria has adequate fiscal and Increase wages as productivity increases crisis. They have been meager expenses since the
currency reserves. The IMF didn’t even consider The Government is aware that the high growth rate establishment of the currency board. Any further
alternative measures to compensate for negative in wages during 2008 cannot be sustained. Although reduction could shatter the country’s social peace.
balance of payments, such as currency devaluation wages are still low compared to those in Western Although NGO experts support the increase in the
or adoption of the Euro. Europe, further increases must be accompanied share of investment going to transport infrastruc-
by improvements in productivity. According to the ture, they are sharply critical of the Government’s
Recommendations IMF, the current pace of wage growth is far too rapid failure to use EU structural funds allocated to Bul-
for Bulgaria’s relatively small productivity growth. garia during its first two years of full membership.
Maintain surpluses
Moreover, as the experience of other countries Only 0.6% of the EUR 2.2 billion had been spent by
Fiscal policy should aim at maintaining large sur- has demonstrated during the downturn, the faster the end of 2008. Lack of financial capacity, excessive
pluses, not only because they have been a pillar for wages grow, the more unemployment is likely to bureaucracy and scarcely transparent procedures
the currency board, but also to preserve balances in increase.10 have all prevented the funds from reaching their in-
the fiscal reserve account – an important cushion in Moderation in unit labour cost increases is es- tended beneficiaries.
the event that problems emerge. For 2008, the Gov- sential given that resources will need to be shifted to NGOs insist that both employers and the Gov-
ernment targeted a surplus equal to 3.5% of GDP. export-oriented sectors. As domestic-market sector ernment take emergency measures to rein in infla-
Preserving the surpluses in a time of slow revenue growth slows, GDP growth can be maintained only tion, negotiate compensation for decreases in real
increases will require a significant slowdown in the if exports take up the slack, but both sectors must income, guarantee wages, assess the impact of the
growth of expenditures. However, neither revenues remain competitive. Whether they are is a matter of crisis on the most vulnerable groups in society and
nor expenditures projected in the current budget take measures to protect basic social and economic
reflect the expected decline in GDP growth. rights. n
7 Ministry of Finance. Report to the Draft Law on State Budget
Make implementation of the 10% budget rule for 2009 [only in Bulgarian]. Available from: <www.minfin.
bg/>.
transparent
8 Government of Bulgari, op. cit., p.1.
The Government plans to contain expenditure growth
9 Confederation of Independent Trade Union, op. cit.
by restricting spending to 90% of what was origi-
10 Bulgarian workers and employees continue to receive the
nally budgeted for 2009, rather than by revising the lowest remuneration in Europe, while the level of prices
remains comparatively high – with an average monthly salary
of EUR 255 (USD 339). This means that with 20% of the
5 Government of Bulgaria. “Plan for economic stability and average European salary one must cope with price levels that
progress in 2009” [only in Bulgarian]. Available from: <www. come up to approximately 46% the average European price
government.bg>. levels. – This is one of the main claims of the Confederation
6 International Monetary Fund. World Economic Outlook, April of Independent Trade Unions (KNSB) for a just and decent
2009. pay. May 2008.
burma
NO 0VA
0 0 0 N
Under the ruling Military Junta, the Burmese people live with perpetual crises, whether related to the
95 99 100 55
100 100 economy, 100
politics, food100or the environment. These100have combined 100 to create a situation of extreme100 100
97
poverty, lack of basic rights and increasingly deteriorating social conditions. People’s organizations,
= 88,4 which
IEG of Iraq = 0 may constitute a part of civil
BCI society
of Italia =in the future, are underdeveloped,
99,5 IEG banned
of Italy = or
64,5persecuted
by the Government. Rights are reserved only for the military elite and their cronies, while the most
vulnerable citizens are disproportionately affected by crises and disaster.
Burma Lawyers’ Council Basic Capabilities Index (BCI) indirectly affected workers by depressing investment
100 100 in domestic industries.100The market for consumer or
BCI = 73
As a result of 47 years of misguided policies, op- Children reaching small business credit is functionally non-existent. At
73 5th grade
pression and corruption by the ruling State Peace its heart, the development of a free market economy
and Development Council (SPDC), the current global in the country is a myth, and the right to develop
crises that are affecting financial34 markets, the avail- industries is reserved for the ruling Military Junta,
ability of basic goods and the environment have hit their families and their cronies.6
0
the Burmese faster and harder than other peoples
0
NO VA
0
Additionally, the SPDC’s0,0misuse of the nation’s
around the world. funds for increased military spending continues
86 90
Late100
in 2006, with the annual per capita
68 income 57 to have100serious consequences for the poorest and
100 100 100 100 100 100
at around USD 92 300, the cost of basic food com- Births attended by most desperate. While the Government was unable
modities rose in Burma between 30 and 40% – a skilled health personnel Survival up to 5 to support its citizens in the aftermath of the cyclone
que = 66,1 tremendous threat for IEGpeople who spend =70%
of Mozambique 64,4of BCI of Myanmar, without significantIEGforeign aid, it spends
of Burma =0 nearly half BCI
their income on food.1 In August 2007, the Govern- that the Government
Birmaniawas the donor.
o Burma = 73.2Amnesty In- of its budget on the military.
ment reduced fuel subsidies, leading to gas price in- ternational expressed concern that the Government The global financial crisis has worsened the
creases. Many people could not even travel to work. was using its citizens’ suffering in the wake of the economic reality of the country. The fishing, mining,
As the price of basic goods increased another four cyclone to tighten its grip and expand the reach of garment, food processing and advertising indus-
to five times, widespread peaceful protests led by its forced labour programmes among a population tries, for instance, have all suffered.7 Burmese living
Buddhist monks and the100 vestiges of Burmese civil lacking basic necessities. 4
100 98 abroad are also financially
100 distressed and thus un-
society broke out across the country. In response, In the same month, the Government held a dis- able to send as much money back to their families
the Government brutally cracked down, firing into credited referendum on the new Constitution, taking as they did before. Developed countries’ demand
unarmed crowds and ransacking monasteries at advantage of the displacement of cyclone victim. for goods from factories where Burmese migrants
42
night. Nearly 2,000 civilians were taken as politi- Many of the victims could not vote either in the origi- work has decreased, both lowering the availability
cal prisoners.2 Participants were sentenced to long nally scheduled 10 May balloting or in the additional of jobs for migrant workers and increasing abuse as
prison terms. NO VA
0 0,0
0,0
voting held on 24 May, on 0
the pretext of accommo- 0
employers attempt to maximize profit margins.8
Then, in May 2008, the Government failed to dating displaced voters. Reports also note that Gov-
99
provide warning about the impending landfall of ernment 100 99
officials exchanged foreign aid packages The environmental crisis 100
100 100 100 100 100 100 67 100 100
Cyclone Nargis, which struck the Irrawaddy Delta for votes and labour. The current global financial,
5
There is increasing environmental degradation
97 as
with devastating force. An estimated 140,000 people environmental and food crises have intensified the the SPDC is putting on sale the rights to domes-
a = 98,1 died in the immediateIEG aftermath, while
of Serbia = 0the disaster hardships that theBCIBurmese were already
of Eslovaquia = 99 suffering. tic resources, both mineral and biological.
IEG of Slovakia = 68,8Burma’s BCI of
directly affected at least 3.4 million. The Government In the face of this dire situation, however, the SPDC neighbours, along with a compliant Government,
refused aid workers entry into the most devastated has shown no willingness to change its policies or exploit the country’s natural resources without atten-
regions and closed aid camps for displaced citizens, system of governance. tion to the environmental and cultural consequences.
forcing them to return to flood-stricken areas without In Kachin state, Chinese loggers are currently ex-
food, water, shelter or medical care.3 The SPDC also The financial crisis tracting wood without considering either the short-
repackaged foreign aid deliveries
100
to make it seem Burma has long suffered 100
internal domestic finan- or long-term impact, without
100
employing Burmese
cial crises. Inflation in basic commodity prices, in- workers and without providing any stimulus to the
cluding food and fuel, led to 66
widespread protests
* There are no available data on GEI.
because individuals could no longer afford these
44Burma’s Unrest”. BBC
1 Head, J. “The Hardship that Sparked goods and because the price increases translated
News, 2 October 2007. Available from: <news.bbc.co.uk/1/ 6 Pepper. D. “In Burma, Business Ventures Start with Military”.
hi/world/asia-pacific/7023548.stm>.
into job losses. Furthermore, the credit crunch has SFGate, 13 November 2008. Available from: <www.sfgate.
0 0 0 6
2 See: Head, J. “Burma Leaders Double Fuel Prices”. BBC com/cgi-bin/article.cgi?f=/c/a/2008/11/12/MNNU12SBS8.
News, 15 August 2007. Available from: <news.bbc.co.uk/2/ 20 DTL>.
34 43
98 hi/asia-pacific/6947251.stm>. And also: Assistance 4 Amnesty International. “Myanmar Briefing: Human90 7 See, for example, Mizzima, “Burmese49 Fishery Export Hit
100 100 for81
Association 100
Political Prisoners. Crackdown in Burma 100
Right 100
Concerns a Month after Cyclone Nargis”. 2 June 100 100
Hard”, 27 November 2008; “China Slowdown Hits Burmese 100
97
Continues, 31 January 2008. Available from: <www.aappb. 2008. Available from: <www.amnesty.org/en/library/ Mining”, 28 January 2009; “Ad Industry in Burma in
org/release100.html>. asset/ASA16/013/2008/en/85931049-32e5-11dd-863f- Doldrums”, 14 February 2009; “Rangoon Factories Begin
3 Tun, A. H. “Myanmar Cyclone Toll Rises to 138,000 e9cd398f74da/asa160132008eng.pdf>. Cutting Jobs”, 5 February 2009. Available from: <www.
m = 92,8 IEG of Vietnam = 73,9 BCI of Yemen = 58,7 IEG of Yemen = 30
mizzima.com/news/global-financial-crisis-a-burma.html>. BCI of Za
Dead, Missing”. Reuters, 24 June 2008. Available 5 Yeni and Min Lwin. “Massive Cheating Reported from Polling
from: <uk.reuters.com/article/featuredCrisis/ Stations”. The Irrawaddy, 10 May 2008. Available from: 8 Interviews with Mae Sot, Thailand area factory workers by
idUKBKK15852620080624?>. <www.irrawaddy.org/article.php?art_id=11923>. Burma Lawyers’ Council staff, June 2008.
65
SILAKA
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Gender and Development of Cambodia
COMFREL 100 100 100
BCI = 66 GEI = 62
NICFEL Children reaching Empowerment
NGO Commitee on CEDAW 5th grade
62
The NGO Forum 53
CEDAC
Thida C. Khus 23
0 0 0
en from rural communities, who typically send 2005 to 2008, and the Government responded by Due to the weakness of public health serv-
36,2 99to 16% 100
97 much of their income home to support siblings jacking100
up the bank security rate, from 8% ices, even families
47 of modest means can fall into
100 100
in school. Garment factories are operating98,4 at100
only 100 100
poverty100 100
when a member gets sick. The99Govern- 100
47 47
SW2009 ING v02.indb 70 8/27/09 7:00:52 PM
medical care to poor families, but these tend to At projected growth rates for 2009, the likeli- organizations are working with these communi-
be inadequate and unreliable. Policy makers have hood of raising sufficient revenues to finance the ties to help them learn about their rights and land
been considering several safety net options for planned social programmes appears limited. For ownership legislation.
the general population, but none have been im- a variety of reasons, ranging from natural disas- While some civil society organizations are
plemented. ters to inadequate agricultural policies, both the providing information to protect vulnerable
Other development indicators are distressing, distribution of food and access to it are becoming populations, others are monitoring land grab-
especially the maternal mortality rate. According problems for a significant and growing portion of bing and dislocations of rural communities that
to the Cambodia Demographic and Health Survey, the population. The Government is providing food violate human rights. Some NGOs are monitor-
it has remained stagnant at a high level: 432 per to the World Food Programme, which is currently ing the national budget, identifying discrepancies
10,000 live births in 2000 to 472 per 10,000 in assisting more than 1 million Cambodians. It is between policy priorities and budget allocations
2005. Five women per day die giving birth, the also altering the current budget to increase the and demanding more transparency. Others are
same number as 9 years ago. Dr. Te Kuy Seang, allocation to the Rural Development Bank for farm concentrating on building the capacity of civil so-
Secretary of State of the Ministry of Health, de- credits. So far, however, it has provided little infor- ciety organizations to promote citizen engagement
clared that his office does not have the funds to mation on how much money will be provided and in local and national governance. A group of civil
implement its plan to increase the number of mid- how it will ensure the benefit of those in need. society organizations has demanded that oil, gas
wives by 300, from the current 3,000, and build and mining be managed more effectively to ensure
facilities for expectant mothers in rural communi- Indigenous communities and NGO work the transparency of revenues and sustainability for
ties. Government land concessions for rubber planta- future generations.
Girls still experience discrimination within tions have usurped the ancestral land of indig- Cambodia is still rebuilding its economic and
both their families and the public educational sys- enous communities in the provinces of Stung political institutions, which have been shattered
tem. In 2007, girls made up 47% of the enrolment Treng, Rattanakiri and Mondulkiri. Despite a com- by two decades of war. The country achieved high
in primary school, 46% in lower secondary school, munal land law passed in 2001, none of these economic growth but failed to diversify economic
40% in upper secondary school and only 35% in communities were able to register their commu- investments or make urgently needed investments
higher education. To address this inequality, the nal land. The seizure violates these communities’ in education and health services. Despite some
Government and international organizations have right to their only source of survival and identity. slow progress in reducing poverty, a lack of trans-
been introducing programmes to provide school Plans for hydropower plants are also threatening parency in decision-making and mismanagement
meals, free boarding for girls, scholarship awards the livelihood of many indigenous communities of state affairs continue to be issues of concern. n
and other incentives for girls, however these pro- across the country, which were not consulted on
grammes have yet to reach the entire population. most of these plans. Local NGOs and international
Source: Heng Sour, Director General of Administration and Finance, Ministry of Labour and Vocational Training;
Human Rights, development and the impacts of the global economic crisis, 12 March 2009
Source: National Institute of Statistics, Consumer Price Index Bulletin, March 2007,
and Koh Santepheap Newspaper, 4 March, 2008.
23
During the October 2008 General Election, which co-
0 0 0
incided with a growing awareness that Canada could
face a possible recession, Prime Minister Stephen
92 100 99
Harper assured voters that the economy would be 74
100 100 78 100 100 100 100 100
immune to the84global difficulties, that their savings, Births attended by 96
pensions and assets would be secure and that his skilled health personnel Survival up to 5 Economic activity Education
boya = 66 Government would never IEG go
of Cambodia
into deficit. =
He61,6
asserted BCI of Canadá = 99,3 IEG of Canada = 74,5
this on the basis that Canada’s banking system is well coalition government. Many civil society organiza- • Does it help the hundreds of thousands of newly
regulated and stable, and largely ignored the fact that tions were supportive of this move to replace the unemployed Canadians by increasing employ-
the country would be heavily affected as the United Conservative government with a more progressive ment insurance benefits from 55% to 60% of
States is, by far, the country’s largest trade partner. one that would represent the majority of Canadi- insured earnings and extending the period for
What the Prime Minister did not say was that the ans. However, as the proposed coalition government receiving those benefits to 50 weeks?
unemployment rates would100 likely skyrocket, or that low- gathered momentum and 100 threatened to take power • Does it support those
100 who need it most, such as
income Canadians would feel the brunt of a weakened through a vote of no confidence in Parliament, the unemployed, low-income Canadians and hard
economy, especially since there had been so little invest- Prime Minister requested and 68 was granted proroga- hit communities, by making a commitment to
ment in social programmes in the previous decade. He tion (essentially an extended parliamentary break) reduce poverty by 25% in the next five years?
also said very little about the choices his Government – if from the Governor General, Canada’s head of State.
• Does it implement an ambitious
24 social, physical
elected – would make to head off11the worst effects of a The Government committed to reconvening Parlia-
and green public infrastructure programme,
possible recession. Despite the0 fact that many Canadians ment six weeks later with0 a full budget outlining an 0
creating jobs in both male- and female-domi-
were worried about this “head in the sand” approach, economic stimulus plan. During the six weeks of pro-
88 41 nated professions?
37
the governing Conservative Party was re-elected with 96 party
rogation, the leader of the official opposition
100 100 83 100 100 100 100 100
37.6% of the vote (on the basis of less than79 60% of the resigned, a new leader was named, and the coalition • Does it support key value-added sectors
94 with
eligible vote, the lowest turnout in history).1 alternative was taken off the table. restructuring criteria to ensure they become
When the newly IEGelected
of GhanaGovernment
= 57,6 set out its BCI of Guatemala = 68,3 green and sustainable?
= 75,5 IEG of Guatemala = 51,3
priorities, Canadians were expecting a solid economic Budget 2009 and civil society • Does it emphasize spending over tax cuts?
stimulus package in order to protect jobs, invest in a During the prorogation of Parliament, individuals
strengthened social safety net for low-income citizens and organizations were invited to make submis- Budget 2009 failed all five tests.
and make strategic investments to lessen the blow sions to the Department of Finance consultations
of the recession. Instead, it delivered a highly parti- regarding what should be included in the budget. Support for unemployed workers
san and ideological agenda that would, among other During this period, the100Canadian Centre for Policy In terms of employment100insurance, Budget 2009 an-
100 99
measures, eliminate financial support for political par- Alternatives (CCPA) released their annual Alternative nounced changes that allow claimants five additional
ties and no longer uphold pay equity in the public serv- Federal Budget (AFB), a participatory budget cre- weeks of benefits over the next two years. This is not
ice as a human right, leaving it to unions to negotiate ated by civil society with a heavy focus on creating sufficient given the record job losses being reported.
this through the collective bargaining process. and sustaining green jobs, investing in social and Moreover, relatively few Canadians are eligible to
30 29
physical infrastructure, strengthening employment receive these benefits despite all workers earning
Parliamentary response0 insurance and supporting 0 low-income Canadians. taxable income making mandatory
0 payments into the
In an unprecedented step, the three elected opposi- Participants proposed five tests for the efficacy of programme. Some 44% of those who are currently
99 tion parties then negotiated
47 an agreement to form a 100 budget:2
the federal 99 unemployed are drawing
50 insurance benefits. In 1990
100 100 100 100 100 100 100
99
that figure was 83%.3 97
* “Children reaching…” estimated following procedure “1” in
p. 209.
ia = 96,9 IEG of Malaysia = 58,3 2 Canadian Centre forBCI
PolicyofAlternatives
Malta = (CCPA)
99,5 “Five Tests IEG of Malta = 58,2
1 CBC. “Voter Turnout Drops to Record Low”. 15 October for Canada’s Next Federal Budget”. Press Release, 23 3 Battle, K., Mendelson M. and Torjman S. Towards a New
2008. Available from: <www.cbc.ca/news/canadavotes/ January 2009. Available from: <www.policyalternatives.ca/ Architecture for Canada’s Adult Benefits. Ottawa: Caledon
story/2008/10/15/voter-turnout.html>. news/2009/01/pressrelease2080/>. Institute of Social Policy (2006).
77
65
47
SW2009 ING v02.indb 72 8/27/09 7:00:57 PM
The employment insurance programme was growth of a sustainable, green economy. Civil society spending cuts were all but assured by 2010. The
greatly weakened by deep government spending organizations are concerned that, as Canada focuses economic crisis was an opportunity to use govern-
cuts made in the 1990s. Although before the reces- on reversing the economic downturn, environmental ment stimulus to start to address a number of unsus-
sion Canada saw nearly a decade of economic growth and sustainability standards will drop. Further, jobs tainable features of the economy such as inequality,
and government surpluses, spending to social pro- that are being created are in male-dominated indus- climate change and overstretched public infrastruc-
grammes was never restored. There is almost uni- tries such as bridge building and road repair. Women ture, including soft infrastructure such as health care
versal agreement across the political spectrum and continue to bear the brunt of this economic crisis. and child care. The Government chose to deal with
among analysts that employment insurance needs They are over-represented in part-time and precari- the circumstances by consistently underplaying both
to be fixed to improve access to jobless benefits. The ous work and are often the first to be laid off. Because the severity and potential duration of the downturn,
opposition parties unanimously supported a motion of this work pattern, women are more likely to be and by treating the stimulus plan as something for
in the House of Commons calling for reform in the ineligible for employment insurance benefits. getting the economy “back to normal”. This is short
programme. It is only the minority Conservatives sighted and does not do enough to meet the needs of
who are opposed. ODA: good news and bad the thousands of Canadians feeling the brunt of the
One of the most significant advances in 2008 was the economic crisis. n
Canada’s weakened social safety net passage of the Official Development Assistance Ac-
Although touted as the Government’s economic countability Act, which requires the Government to
stimulus package, Budget 2009 saw no commit- report to Parliament on how Canada’s aid coincides
ment to reduce poverty or any measures to help with official human rights commitments, relieves
Canada’s most vulnerable. In November 2008, the poverty and meets needs expressed by the poor. All
UN Committee on the Elimination of Discrimination parties supported the motion. However, later in the
against Women called on Canada to act immediately year, the Government announced that it was remov-
to address inadequate and impoverishing social as- ing a number of African countries from priority focus
sistance rates.4 As jobs are lost and people are not (including Cameroon, Kenya, Malawi and Zambia)
qualifying for insurance benefits, more and more and focusing instead on a number of Western
Canadians will need to turn to social assistance. Hemisphere countries including Bolivia, Colombia,
Deep cuts to these programs in the 1990s means Haiti, Honduras and Peru. The full implications of the
that that form of income support will not be available change are not yet visible, but in such fields as HIV
to hundreds of thousands of unemployed Canadi- and AIDS and poverty relief, it means a switch from
ans. Substantial investments are needed to improve high-incidence countries to low. The Government as-
the rates as well as undertake welfare system re- sures Canadians that the long-standing commitment
form so that eligibility requirements are broadened, to increase aid to Africa, overall, remains.
clawbacks of Government benefits for recipients are
eliminated and recipients can earn more income. Tax cuts for the wealthy over social
This would enable more low-income Canadians to investment
lift themselves out of the poverty trap that the current While civil society groups have long called on the
welfare system has become since the spending cuts Government to make lasting social investments that
mentioned above. would be of most benefit to low-income Canadians,
Budget 2009 continued a trend of tax cuts and credits
Budget 2009 and infrastructure targeted to high income Canadians and corporations.
Budget 2009 saw some investment in physical in- Before Budget 2009, the Government had introduced
frastructure projects. Canada has an estimated USD $ 200 billion (USD 184,2 billion) in tax cuts. The
105 billion municipal infrastructure deficit due to “stimulus” budget added another $ 20 billion (USD
years of under-funding and the amount announced is 18,4 billion) in permanent tax cuts. Nearly 40% of
a drop in the bucket. Further, it relies heavily on Gov- women in Canada and 24% of men earned so little
ernment partnership with private industry.5 In most income in 2007 that they do not pay income taxes,6
cases, municipalities have to match federal funding and thus do not benefit from any of the proposed tax
in order to access these infrastructure monies. credits and cuts aimed at stimulating the economy
The Budget made some investments in key sec- (all of the tax cuts are permanent, except for one
tors, although many sector representatives argue temporary capital cost allowance for computers pur-
that these are not strategic and do not foster the chased between 27 January 2009 and 11 February
2011). In contrast, every single spending measure
4 Canadian Feminist Alliance for International Action (FAFIA). is temporary, with a “best before” date stamped on
“UN Asks Canada to Report Back on Poverty and Murdered each measure of no longer than two years from the
Aboriginal Women”.Press Release, 24 November 2008. adoption of the budget.
Available from: <www.fafia-afai.org/files/CEDAW_PR_
Canada’s fiscal situation going into the reces-
EN.pdf>.
sion was increasingly precarious due to aggressive
5 “Federal Budget 2009 and Municipal Infrastructure”.
tax cutting, with budget balances so razor thin that
Canadian Union of Public Employees (CUPE). 29 January
2009. Available from: <cupe.ca/budget/2009-budget-
municipal-infrastructure>. 6 Canada Customs and Revenue Agency (2007). “Tax Statistics”.
Instead of diminishing, poverty has increased significantly in the Central African39 Republic since 1990.
95 96 99
The disturbances, looting and destruction that accompanied the rebellion that placed General François
100 100 100 100 100
97
Bozizé in the presidency ruined the already weak economy. While the Government is proposing a
strategy for poverty reduction, itBCI
is of
unlikely
Argelia =that
95,7this will succeed in reducing
IEG poverty
of Algeria in half unless
= 52,7 BCI o
the country is able to chart an immediate and lasting change of direction towards peace and security,
accompanied by an exceptionally high level of growth benefitting the poor.
GAPAFOT
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Pastor Clotaire Rodonne Siribi
100 100
BCI = 65 GEI = 46
Children reaching Empowerment
5th grade
Despite its many resources, the economy of the Cen- 59
tral African Republic has been sabotaged by years of
plundering of public funds and recurring political and
military crises. The rebellion of 15 March 2003 that 11
0 0
placed General François Bozizé in the presidency was
accompanied by disturbances, looting and destruc- 83
54 56 100
tion. This shredded an economic fabric already ripped 100 100 100 70 100 100
apart by more than 20 years of gangster-like rule that Births attended by
emptied state coffers and devastated production. skilled health personnel Survival up to 5 Economic activity Education
A large part of the republic’s 623,000 km2 BCI of República Centroafricana = 65,2 B
IEG of Central African Republic = 45,8
is covered in forests; its soil is rich in diamonds. partners – the European Union, France, China and the • Creating wealth by strengthening human and
However this natural wealth– the country’s principal Central African Economic and Monetary Community. institutional capabilities within the productive
source of income – has long been exploited to fill The State appears to be incapable of paying salaries system, including those of the poorest inhabit-
the pockets of whoever happens to be in power and to its civil servants, let alone pensions and grants. ants, through good governance and the rees-
his cronies. Even though the soil is fertile – only a When President Ange Patassé was deposed in March tablishment of security.
fifth of it is cultivated – and the climate favourable, 2003, government employees100 were owed 36 months’ • Improving and expanding
100 basic social services
cotton and coffee production have steadily declined salary. When his successor,83François Bozizé, wiped through a participatory approach to implemen-
in recent years. The 2004-2005 cotton harvest was the slate clean, he made a commitment to pay sala- tation and control/evaluation of the country’s
5,000 tonnes, down from 50,000 in 1998. This is ries on time. The Ministry of Economy soon admitted 54
Poverty Reduction Strategy.
partly a result of erratic support, but primarily due that this was impossible; civil servants received their
to a system of international commerce that tips the July 2004 salaries in January 2008. These delays The strategy has four main objectives:
0 0
scales against African producers – most heavily by have reduced domestic consumption and generated • Restoration of security, consolidation of peace
permitting industrialized countries to subsidize their social tension, which has been exacerbated by high and prevention of conflict. The reforms this will
97 100
producers. In the past, the country harvested more inflation, particularly
67
in food prices. Despite these require 54
include reinforcement of the material
100 100 100 100 100
than 18,000 tonnes of coffee annually, but the crop difficulties, the economy inched ahead 2.5% in 2004 and human capabilities of the Social99Develop-
has virtually disappeared. Agriculture in general is in after several years of stagnation. ment Fund (SDF) as well as reform, restructur-
ruins. The country’s farmers, who were devastated For Central Africans, the Millennium Develop- ing, territorial IEG
reorganization and=participatory
BCI of Honduras = 82,4 of Honduras 68,9 BCI
during the rebellion, are living in a state of chronic ment Goals (MDGs) will continue to be a distant and coordinated transformation of the security
insecurity and barely able to continue harvesting dream. According to the United Nations Develop- sector.
subsistence crops. ment Programme (UNDP), two thirds of the popula-
• Promotion of good governance and the rule of
The steady decline in production has decimated tion (3.8 million people) subsist below the poverty
law through reforms that include reinforcing
income from taxes and customs tariffs, already lim- level. Life expectancy is 39.5; more than one child
political and judicial governance, improving
ited by inefficient tax collection – a problem regularly in ten (11.5%) dies before the age of five. Less than
100
95 economic governance,
100 improving local govern-
cited by the IMF, which granted the country a USD 8.2 half the adult population (48.6%) is literate. These
ance and gender participation and promotion.
million loan in July 2004 to support a post-conflict statistics place the Central African Republic in 169th
rehabilitation programme. While revenues are down, place amongst the 177 countries classified in the • Reconstruction and diversification of the econ-
the country still has to make payments on a crush- Human Development Index. omy through macroeconomic
39 stabilisation,
ing foreign debt, which had reached more than USD In the course of a decade in which life expect- rural development, transparent and effective
administration of natural resources, promotion
1 billion by the end of 2002. Servicing it devoured
44.7% of the budget in 2003, according to the Bank
ancy at birth dropped by0six months each year and
the country experienced one of the highest HIV/AIDS
0
of tourism and crafts, and development of infra-
N
of the Central African States (BEAC). rates in the
94 region, official development assistance
97 structure that44supports production.
100 100 100 100 100
plunged 80%. • Development of human capital through 99 reforms
The State’s incapacity that include expansion of education, particularly
All foreign aid has been suspended since an at- A strategy for poverty reduction primary and secondary schools; accessibility to
tempted coup d’état in May 2001. The country has To ameliorate thisBCI of México
disastrous = 95,2the Govern-
situation, IEG of Mexico = 60,5
health services; the fight against HIV/AIDS; and
BCI
only been able to keep its head above water thanks ment is attempting to implement a Poverty Reduc- measures to generate employment.
to donations in 2004 from the country’s traditional tion Strategy (PRS) with two major goals:
100 98 100
45
SW2009 ING v02.indb 74 8/27/09 7:01:03 PM
Analysing poverty Poor conditions are prevalent throughout the The consumption level of the poorest 10% of house-
The current analysis of poverty in the Central African country. Some neighbourhoods of Bangui, the capi- holds is barely one-tenth that of the wealthiest 10%.
Republic is based on two studies conducted by the tal city, have electricity only four days out of seven; It is highly unlikely that the objective of reducing
Ministry of Planning on living conditions in urban most neighbourhoods have no access to drinking poverty to 31% by 2015 will be attained unless the
and rural settings. They were carried out in 2003 with water. Faced with a sharp drop in income, many country achieves a rapid and lasting return to peace
technical and financial support from the UNDP, and Central Africans are invading green space in cities and security throughout its territory, as well as an
supplemented in 2006 with a participatory research and forested areas. With inflation rapidly eroding exceptionally high level of growth that benefits the
study financed by the World Bank. already meagre incomes, selling wood for fuel is poor, particularly in rural areas. n
These studies identified 10 major problems: often the only alternative to the more precarious,
bad governance, insecurity, low income, inefficient badly-paid and illicit ways of earning an income that
education and training, poor health, corruption, lack have also proliferated. As a result, the savannah is
of employment and the absence of opportunities, advancing at a rate of nearly 500 meters a year on
lack of drinking water, the absence of a policy for each side of the Bangui-Boal axis; it has already
strengthening of national capabilities and environ- moved almost 30 kilometers toward the south and
mental issues. Amongst these 10, group or individual southwest.
statements of participants in every region singled out Overall, the poverty rate is 73% in cities and
three as most pressing: poor governance, insecurity 69% in rural areas. This deprivation is heightened by
and lack of peace. huge disparities in income and domestic expenses.
CHART 1. Progress towards achieving the MDGs between 1990 and 2003
CHILE
56
39 While recession and unemployment advance, pension funds are depleted and income drops, the 99
96 99 98
62
100 100 Government 100 puts pressure
100 on wages in order to expand 100 the economy.
100 The unions and civil society
100 100
97 99
propose other solutions: workers defend their wages, rights, funds and the right to decent work for all,
a = 95,7 and=NGOs
IEG of Algeria 52,7 stress the need to build together
BCI of Argentinaan= economy
97,8 that prioritizes people
IEGand the planet.
of Argentina = 72,3
ICB de
43
In 2009 Chile is being hard hit by the economic crisis,
which started in mid 2007 due11 to the collapse of the
0 0 0
sub-prime market in the United States and rapidly
83
became global. The Chilean economy is extraordi-
100 99 46 99
narily open and 70 56
therefore external phenomena can
100 100 100 100 100 100 100 100
have major impacts. The fall in the international price Births attended by 97
of commodities, which began in 2008, has been felt skilled health personnel Survival up to 5 Economic activity Education
acutely
Centroafricana = 65,2 since the country’s economic and trade struc- BCI of Chile = 99 BCI
IEG of Central African Republic = 45,8 IEG of Chile = 61,9
ture is heavily dependent on the export of a limited which continued to decline and reached 9% over Pension funds
range of primary products with low added value. 12 months. At the same time, the fall in the price of Another noticeable impact of the crisis is the fall
For example, the price of a pound of copper commodities led to the attenuation of one of the main in pension fund holdings, which are invested in
reached its highest nominal level in July 2008 when social problems of 2008 – the high rate of inflation, Chilean and foreign financial assets. The collapse
it surpassed USD 4. By the end of the year it was aver- which also mainly affected the poor. In October 2008 of financial markets during the crisis caused a con-
aging USD 1.40, although100 it recovered slightly in the the annually adjusted rate 100 of99
inflation reached 9.9%. siderable reduction in 100
retirement savings, amount-
first months of 2009. The drop in the price of copper This percentage was higher for the poorer two-fifths ing to a loss of USD 27 billion, more than 26% of
affects, among other things, the rate of exchange, the of the population due to a higher-than-average in- the total funds, by the end of 2008. A study by
54
terms of trade, the balance of payments and general crease in the price of foodstuffs. As internal demand the Asian Development Bank analysing the events
45
economic activity, all of which in turn have negative fell, inflationary pressure was reduced and, partly for of 2008 lists Chile as the Latin American country
social repercussions. this reason, the Consumer Price Index (CPI) began in which household wealth suffered the greatest
In the fourth quarter of0 2008 the Chilean econ- to fall in November and is0expected to continue to do losses, due largely to the0
influence of the pension
omy entered a recession. Economic activity declined so during the year. funds. Despite repeated protests from the people
97 100 99 47
dramatically, in step54with similar worldwide tenden- Another major reason for the drop in inflation is who have been 68
affected, neither the private funds
100 100 100 100 100 100 100 100
cies and clearly highlighting the strong relationship
99 the reduction in the international price of oil, which nor the Government have taken any action 96 to com-
between the national reality and the general trend of is the country’s main import. On the other hand, due pensate them.
the crisis. During October–December the seasonally to the Government’s policy of stimulating investment
duras = 82,4 IEG of Honduras = 68,9 BCI of Hungría = 99,3 Remuneration IEG of Hungary = 69,8 BC
adjusted and annualized figures fell for the second in certain sectors at the expense of consumers, the
consecutive quarter, when compared to the three price of electricity continues to be high. This is also Official policy to confront the contraction of the
preceding months. In the third quarter the reduction, the case for water rates and sanitation. economy has been to lobby for the reduction of
according to National Accounts fell by 0.1%. In the real wages – unfortunately with success. The con-
fourth quarter, on the same basis, it is estimated to Unemployment cept of wage adjustment is based on the Govern-
have contracted by 5%. 100 One of the major social100costs of the recession is the ment’s estimates of future
100
inflation – as has been
Industrial production declined over a period of increase in unemployment. According to the statistics the practice during the governments of the “Con-
12 months; during the fourth quarter it fell by 3.6%, of the Department of Economics at the University of certación” (a coalition of political parties) since
the largest drop since 1999. In December the annu- Chile, unemployment in Greater Santiago (the capital 1990 – and not on the loss52in value of real wages.
ally adjusted figures showed an39 even steeper decline: and the metropolitan area) began to approach double This has an adverse effect on workers’ incomes,
4.3%. In the fourth quarter, in comparison with the figures for the three-month period from December and official attempts to apply this policy were met
same period in 2007, total0sales fell by 4%, while to February, increasing two
those on the internal market fell by 4.7%.1
NO VA
0 percentage points from
53
45
SW2009 ING v02.indb 76 8/27/09 7:01:08 PM
To the reduction reflected in the wage charts private and public savings are effectively routed tive and lobbying for the cancellation of all the
one must add the reduction in credit that affects the towards productive activities. World leaders illegitimate and unpayable debts of developing
general population, in particular the poorest, and must insist on reforms regarding the govern- countries.
small and medium-sized enterprises. ance of the World Bank and the International • Build a green economy, pressing world leaders
Monetary Fund (IMF) in order to make them at the Copenhagen Climate Change Conference
Non-governmental proposals more democratic, and ensure that all financial to agree to substantial and verifiable reductions
During this period of crisis, the Chilean Unitarian institutions, financial products and multination- of greenhouse gases and to undertake new and
Workers’ Centre has combined proposals for Un al enterprises operate with transparency and substantial transfers of resources from the
Chile Justo [A Fair Chile] into five main demands: are publicly accountable for their activities. This North to the South in order to support the ad-
(i) prevent using the crisis as an excuse to abandon should include the elimination of bank secrecy aptation and sustainable development of poor
workers’ rights; (ii) defend jobs; (iii) defend wages; and tax havens, as well as the introduction of countries. There is an urgent need to imple-
(iv) defend pension funds affected by the crisis and public control in all countries by means of inter- ment policies that set aside the liberalization
ask for government intervention in the pension sys- national standards of accountancy. and deregulation measures that characterized
tem; and (v) defend decent employment. • Generate decent jobs and public services for all, the 1990s. The letter calls on the governments
In a broader social and transnational context, AC- guaranteeing massive investment in a “green of the G-20 as well as other countries to take
CIÓN, the Chilean association of NGOs consisting of new deal”, in order to create a green economy advantage of this opportunity to begin to build
over 70 development organizations, has sent a letter based on decent jobs and fair wages, investing an economy that places people and the planet
to the world leaders that constitute the G-20 with four in and strengthening the provision of essential in the forefront, in order to achieve a fairer and
major proposals regarding the current world crisis: public services, and working in favour of financ- more equitable society. n
• Guarantee democratic governance of the econo- ing the development of all those countries that
my, regulating financial activities, creating new need it, without restrictive conditions attached.
fiscal instruments, creating barriers and restric- • Put an end to world poverty and inequality, dedi-
tions to speculation, forbidding ‘casino’ financial cating 0.7% of national income to development
products and ensuring that the resources from by 2013, making these resources more effec-
CHART 1: Monthly variations in 2008 in the indices for wages and staff power costs
per hour
Wages per hour Staff power costs per hour
Month % Month %
0 0 0
Costa Rican society has100been witnessing the confrontation between two opposing ways of perceiving 95
87 99
100 100 81 and projecting
83 100 the country. While some sectors advocate
100 100 a market100model,
72 others expect the Welfare
100 100
97
State to deal with matters such as the social, economic and cultural rights of the population. The crisis
and the possible ways out of it constitute the new arena in which these two visions collide. While the
a = 59,2 IEG of Uganda = 67,2 BCI of Estados IEG of Usa = 73,8 BCI of V
Government proposes a package of measures
Unidos de Américawhich
= 98.1 seems diffident and overdue, civil society stands
behind stronger social and productive intervention.
cyprus
56
The global economic crisis 99 will damage tourism and real estate, two of the country’s
34 major industries,
98 99
62
100 100 and raise unemployment levels. Government measures taken to alleviate the crisis will not benefit
100 100 100 100 100 100
99 98
some of the most vulnerable sectors of society. The Government should open the way for civil society
na = 97,8 to provide
IEG of Argentina assistance, specifically NGOs that are in close contact with all sectors
= 72,3 IEG ofofBahrain
society. This would
= 46 BCI
ICB de Bahrein = 99
require reform of the legal and regulatory framework regulating NGOs.
CARDET
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Charalambos Vrasidas
Myria Koushiappi 100 100 100 100
BCI = 99+* GEI = 65
Michalinos Zembylas Children reaching Empowerment
5th grade
43
The collapse of markets around the world has hit 29
emerging markets hard. Governments are faced with
0 0 0
the complex task of ensuring equal access to basic
needs while securing human rights for all individuals
99 46 99 100 100
100
living within
100
their borders. The economic crisis is just
100 100 100 100 68 100 100
beginning to buffet Cyprus; its effects are expected
97 Births attended by 98
to grow more severe by the end of 2009. The most skilled health personnel Survival up to 5 Economic activity Education
BCI of
le = 99 marginalized sectors of society will bear the brunt of BCI of Chipre = 99,6 Repúbl
IEG of Chile = 61,9 IEG of Cyprus = 65,1
the downturn. a much stronger performance than in the EU as a the 20% wage gap between male and female workers
Cyprus has always had a mixed economy with whole, where unemployment is expected to reach is one of the largest in Europe.10
a strong State role, especially in basic services such 8% and economic growth in most countries will be Over the last decade, the immigrant population
as electricity, water, telecommunications, health care, negative.5 has climbed by 15% a year. By 2007, non-citizens
education and transport. In recent years growth has Tourism and real estate, two of the most impor- made up 25% of the country’s labour force.11 Along
been strong, and the Minister100of Finance announced that tant industries, are already
100 reeling from the global with gradually increasing100 economic disparities,
the 2009 state budget will run a surplus that will be in- crisis. Predictions for tourism, which contributes this has contributed to increasing mistrust of im-
vested in public services.1 However it is becoming clear 20% of the country’s GDP, 66 range from pessimistic migrants among Cypriots. Employers tend to hire
that the value added tax and other 45
indirect taxes, the to dire.6 The construction and real estate sector has undocumented immigrants to reduce their costs,
major sources of government revenue, are falling as the been hit hard as well. Both sectors employ substan- and migrant workers endure the worst employment
economy falters, which will restrict the Government’s tial numbers of migrants and women.7 As a result, conditions. To discourage applications for asylum,
0 0 8
ability to fund public investments and programmes these vulnerable groups0 will suffer more than the the Government has adopted policies such as limit-
to help mitigate the impact of the crisis.2 Chronic low population as a whole. ing immigrants and asylum seekers to employment
99 92 37 89
productivity in the68
public sector will also restrict the Women are 47 traditionally marginalized in the in sectors such as house cleaning, farming and agri-
100 100 100 100 100 100 78 100 100
Government’s ability to respond to the rapidly escalating
96 country’s socio-economic life, and absent from de- culture. Although schools have made some progress
economic crisis quickly, effectively and efficiently.3 cision making bodies, a situation that is unlikely to in integrating migrant children, opportunities for
improve during the economic crisis.8 As a service- adult immigrants to learn Greek are limited.
ría = 99,3 IEG of Hungary = 69,8
Impact of the crisis BCI of India = 68,5 IEG of India = 40,7 BC
based sector employing seasonal workers, tourism On many occasions, the media have used immi-
Unavoidably, Cyprus will have to cope with unem- relies primarily on female workers, many of whom are grants as scapegoats, holding them responsible for
ployment, which is expected to rise to 4.5% in 2009, likely to lose their jobs.9 Even before the downturn, economic and social problems.12 Stereotypes attract
from 3.9% in 2008. The growth rate is expected to only 62.4% of the female workforce was employed, readers and viewers, and in Cyprus the media often
remain positive in 2009, at around 2.1%. 4 This is versus 80% of the adult male workforce. In addition, present one-sided reports on incidents involving
100 100
immigrants, and rarely100 give exposure to their point
of view. Despite their contribution to the national
* “Birth attended…” estimated following procedure “1” in 5 ECEFA (2009). Interim Forecast84
January 2009. European
p. 209. Commission Economic and Financial Affairs. Retrieved 25
economy, migrant workers remain excluded from
52 February 2009 from <ec.europa.eu/economy_finance/>.
1 KIPE (2008). “The Most Stable Bank System in Europe”. 10 Lokar, S. (2009). “Women’s Lobby of Cyprus 50-50
Cyprus News Agency (KIPE), 13 October 2008. Retrieved 25 6 Polemitou, M. (2009). “Fears for Massive Redundancies in campaign for EU elections”. Retrieved 25 February 2009
February 2009 from <www.singmalive.com>. Hotels by April”. Simerini. Retrieved 25 February 2009 from 21
from <www.europeanforum.net>.
0
2 Antoniadou, C. (2009). “Falling Psychology in the Cyprus <www.sigmalive.com>. 0 0
11 Michail, M, Hadjigiannis, K, Stafanidis, M, Christoforidis,
Market”. Simerini. Retrieved 25 February 2009 from 7 Pallala Charidi, N. (2009). “Red Card on Unemployment”. L, Kliridis, S and Mixalakopoullou, M. (2008). “The Effects
96 29
<www.sigmalive.com>. Simerini. Retrieved 25 February 2009 from of Immigration on Unemployment, Part-Time Jops and 48
100 100 72 “Financial Crisis and Development”.100 100
63
<www.sigmalive.com>. 100 100 100 100
3 Hadjiloe, T. (2008). Participation in Workforce”. Essays of Economic
84 Policies,
98
Simerini. Retrieved 25 February 2009 from 8 EWL (2008) “Women and the Economic Crisis–An 08-08. Retrieved 25 February 2009 from
<www.sigmalive.com>. opportunity to assert another vision of the world?”, European <www.erc.ucy.ac.cy>.
BCI of Marruecos = 81,1 IEG of Morocco = 44,8
via = 0 4 MoF (2009). Cyprus IEG of Moldova
Economy, = 73,9
Overview and Potentials. Women’s Lobby, Retrieved 25 April 2009 from 12 ENAR (2008). “Communication consultation on Opportunities, BCI of
Ministry of Finance. Presented by Charilaos Stavrakis at www.womenlobby.org. Access and Solidarity Towards a New Social Vision for
Press Conference. Retrieved 25 February 2009 from 9 Nicolaou-Pavlidi, E (2009). “Wage Gap between Genders”. 21st Century Europe”. European Network Against Racism.
<www.mof.gov.cy>. Retrieved 25 February 2009 from <www.sigmalive.com>. Retrieved 25 February 2009 from <www.enar-eu.org>.
53
42
SW2009 ING v02.indb 80 8/27/09 7:01:19 PM
public benefits. They have limited labour and social measure to achieve this should be to invite all civil References
rights, and no political rights whatsoever. During the society actors to participate in a public debate on Antoniadou, C. (2009). “Falling Psychology in the Cyprus
last five years, 700 cases of racism and xenophobia the economic crisis and appropriate responses. Market”. Simerini. Retrieved 25 February 2009 from <www.
sigmalive.com>.
have been reported.13 Although in recent years the Because their specialized grassroots work keeps
Government has attempted to enforce several Euro- NGOs in touch with social needs, they are more flex- Demetriou, O. (2009). Living Together. Migrant Cities Research:
Nicosia South. Nicosia: British Council.
pean directives on immigration, so far these polices ible than Government and can be more effective in
ECEFA (2009). Interim Forecast January 2009. European
have not been fully effective.14 reaching marginalized groups. Their expertise could
Commission Economic and Financial Affairs. Retrieved 25
be indirectly employed by State institutions to ac- February 2009 from <ec.europa.eu/economy_finance/>.
Response to the crisis complish strategic goals. Furthermore, NGOs could
ENAR (2008). “Communication consultation on Opportunities,
The Government has announced several measures recommend innovative and creative practices for Access and Solidarity Towards a New Social Vision for
designed to boost the economy. In a classic Key- promoting the education, empowerment, gender 21st Century Europe”. European Network Against Racism.
nesian economic move,15 it has attempted to speed equality, and human and labour rights of those who Retrieved 25 February 2009 from <www.enar-eu.org>.
up several development projects for new buildings, are currently disempowered. EWL (2008) “Women and the Economic Crisis–An opportunity
roads, and infrastructure. It has also spent EUR 470 Empowering civil society is crucial to cushion- to assert another vision of the world?”, European Women’s
Lobby. Available at: <www.womenlobby.org>.
million (about USD 622 million) to support the tour- ing the impact of the economic crisis. One of the
Hadjiloe, T. (2008). “Financial Crisis and Development”. Simerini.
ism industry. These measures are expected to keep primary challenges confronting NGOs in Cyprus is to
Available at: <www.sigmalive.com>.
the unemployment rate low and ensure GDP growth make their voice heard in society. Despite substantial
KIPE (2008). “The Most Stable Bank System in Europe”. Cyprus
of 2%. A fair amount of this countercyclical spending progress in recent years, NGOs that support mar- News Agency (KIPE), 13 October 2008. Available at: <www.
is designed to assist vulnerable and marginalized ginalized groups must still overcome mistrust and singmalive.com>.
Cypriots, including increases in pensions, financial prejudice. The absence of a coherent and transparent Lokar, S. (2009). “Women’s Lobby of Cyprus 50-50 campaign
aid for university students and financial housing sup- framework of cooperation between civil society ac- for EU elections”. Available from: <www.europeanforum.
port for low-income couples. In addition, a new law tors and public institutions significantly reduces the net>.
has been adopted that increases the social security efficacy of national policies. Michail, M, Hadjigiannis, K, Stafanidis, M, Christoforidis, L,
contributions of both employers and employees by Expert reviews of the current legal and regula- Kliridis, S and Mixalakopoullou, M. (2008). “The Effects
of Immigration on Unemployment, Part-Time Jops and
1.3% for the next five years. tory framework affecting NGOs have concluded that
Participation in Workforce”. Essays of Economic Policies,
Government, trade unions and the federation it needs to be reformed and modernized to meet 08-08. Available at: <www.erc.ucy.ac.cy>.
of employers have also recently agreed on a pro- European best-practice requirements and to be con- MoF (2009). Cyprus Economy, Overview and Potentials. Ministry
gramme to combat hiring illegal workers, including a sistent with international law. The Planning Bureau, of Finance. Presented by Charilaos Stavrakis at Press
hotline for reporting illegal immigrants and employ- through CyprusAid, initiated this process in 2008, Conference. Available at: <www.mof.gov.cy>.
ers who offer them jobs. This opens up opportunities when NGOs were invited to participate and voice Nicolaou-Pavlidi, E (2009). “Wage Gap between Genders”.
for further discrimination and exploitation of “cheap” their opinions. They have urged the State to create Available at: <www.sigmalive.com>.
labour, however, as employers seeking to maximize a coherent legal and political framework for coop- Pallala Charidi, N. (2009). “Red Card on Unemployment”.
profits will adhere to the agreement selectively to suit eration, arguing that this would allow civil society Simerini. Available at: <www.sigmalive.com>.
their interests. to empower itself and make it possible for the State Polemitou, M. (2009). “Fears for Massive Redundancies in
Hotels by April”. Simerini. Retrieved 25 February 2009 from
Critics argue that the measures proposed so far to implement national policies more efficiently and
<www.sigmalive.com>.
are inadequate and will not be sufficient to boost the effectively.
The Ombudsman (2007). Annual Report 2007. Available at:
economy, nor will they protect the rights of everyone Particularly in this time of economic crisis, the <www.ombudsman.gov.cy/>.
who lives and works within the country’s borders. For Government must engage all stakeholders in devel-
example, the measure to provide financial support to oping and implementing ameliorative measures.
university students excludes foreign students and The absence of a legal framework makes it difficult
migrants. Foreign students are only allowed to work for NGOs to take action to secure the rights of the
20 hours a week, and are restricted to employment entire population. NGOs and the Government need
in areas such as agriculture, cleaning, construction to establish better channels of communication and
and restaurant work. information exchange so that NGOs can become
vehicles for implementing national policies in every
Role of civil society corner of the island. In addition, as the crisis gener-
Given the multifaceted nature of the current crisis, ates increased xenophobia in European countries, it
the Governments should re-evaluate all policies and is essential for the Government and NGOs to engage
practices to ensure that they help protect the civil in an information and education campaign to raise
and human rights of all residents. One immediate awareness about the causes of unemployment and
the effects of the crisis in order to help reduce bias
13 Tsiartas, A. (2009). “Human Rights Issues in Cyprus”. against immigrants. n
Presentation at the Living Together conference. Nicosia,
Cyprus, March 6, 2009.
14 Demetriou, O. (2009). Living Together. Migrant Cities
Research: Nicosia South. Nicosia: British Council.
15 British economist John Maynard Keynes advocated
interventionist policies (e.g., encouraging consumption by
increasing public investment) as a form of mitigating the
effects of economic recessions.
czech republic
55
Democracy at a dead end 19
0 6 0 0
20
Last year President Vaclav Klaus proclaimed that93the country was living in its prime, with a “faith in
34
99 54
100 100 today”. That euphoria is now evaporating as the economy
100 100 100 begins showing
100 signs of weakness.86Reforms
100 100 74
98
in public finances, such as lower taxation for the wealthiest and increasing the value added tax (VAT)
on basic
IEG of Bahrain = 46 articles, have created new
BCI burdens for poor.
of Bangladesh = 56 Conditions of some marginalized groups
IEG of Bangladesh such as
= 52,7 BC
= 99
the Roma have become so difficult that they are emigrating. On a positive note, the country has made
some progress – though not enough— in bridging the gender gap.
0 0 0
42
SW2009 ING v02.indb 82 8/27/09 7:01:25 PM
institutionalized discrimination and a lack of Govern- groups have a hard time getting funding, in part due for single mothers are severely limited as well. Im-
ment interest in resolving Roma problems. to their exclusion from the Ministry of Work and So- migrants of both sexes are generally limited to less
In January 2008, the Agency for Social Inclusion cial Affairs 2008 grant competition which stipulates attractive, poorly paid jobs, but immigrant women
in Roma localities opened its doors,10 with a mission that projects “may not have political elements and frequently endure unequal treatment. These condi-
of raising the standard of living of socially excluded cannot promote any political or ideological causes, tions are partly the result of their ethnicity or nation-
Roma and facilitating their inclusion in Czech society. including feminist ideology.” As a result, many of ality, but also due to gender discrimination in the
The main vehicle for accomplishing this was sup- these groups have had to terminate their activities. recruitment process, as well as inequities in working
posed to be providing funding for immediate pur- The Czech legal system does not have laws that conditions and remuneration.18
chase of services. However, the Government ordered prohibit discrimination. The President vetoed anti-
the agency to establish a framework for cooperation discrimination legislation that would have brought Development cooperation
with interested parties in each region before ordering the Czech Republic into conformity with European Czech Overseas Development Assistance (ODA) is
any services. The staff spent the entire year on this law; an absolute majority in parliament is required largely devoted to transformation cooperation. Its
task, after which an internal audit concluded that the to override his veto. Until it does, the Czech Republic aim is to promote the so called Western-style de-
agency’s approach violated Cabinet policies. will be in breach of its commitments as a member mocracy in the countries of the former Soviet Union,
The agency has been a disappointment. Its of the EU. Serious gaps remain in the protection of Cuba, Burma and Iraq. According to the Govern-
mandate is weak. Instead of money, it offers only individual rights. These are particularly egregious ment, this focus is justified primarily by the Czech
advice. The State’s long-standing neglect and exten- in the labour code, which had been amended in the Republic’s experience in post-communist transfor-
sive economic problems have made some groups of legislation vetoed by the President. mation. Nevertheless, the Government has given
Roma in socially excluded localities targets of racial In the economic sphere, statistics show that far up on fulfilling its EU commitment to increase ODA.
hatred. In one extreme example, in 2008 neo-Nazis more men than women between the ages of 20 to 35 Growth ceased in 2007 and aid actually decreased
and other inhabitants held mass anti-Roma demon- are economically active,15 primarily because raising for the first time as a proportion of gross national
strations in Litvinov.11 In April 2009, a two-year-old children is still considered to be mainly women’s income (GNI) – from 0.12% to 0.11%, despite
girl was severely burned in a petrol bomb attack on responsibility. This is only one of the many gender pressure from NGOs and other parties. Ministerial
the house of a Roma family in Vítkov; her parents and stereotypes linked to maternity that place women at representatives told a parliamentary foreign affairs
other family members were wounded. a disadvantage in the labour market—during the hir- committee meeting that the percentage contribution
During 2008, the Government ascribed the in- ing process, on the career ladder and in their access will increase, primarily due to a decrease in GNI. The
crease in the number of Roma applying for asylum to further education. programme is not transparent – the 2008 tender
in Canada to economic difficulties.12 It is true that The gender gap in income is another discrimina- process for the transformational project in Cuba was
the Roma face severe economic hardship; however tion issue. In 2007, this was 19.8%, higher than the not made public. Projects that obtained funding were
this is only one factor among many driving them to European average.16 The public considers this a sig- co-financed by neo-liberal institutions such as the
emigrate. They do not feel welcome in the Czech Re- nificant concern. Nearly two-fifths of women (39%) National Endowment for Democracy in the US.
public and fear the country’s rising fascist tide.13 and a quarter of men (25%) think that women receive
less pay than men do when they perform the same Non-governmental organisations and the
The status of women tasks. According to opinion polls, the Czech public media
Participation of women in public life and decision- regards age (64%) and gender (45%) as the most Czech NGOs are under huge financial pressure; their
making remains minimal. Even so, the Government prevalent barriers to success in the labour market.17 financing has gradually become dependent on the
has not adopted any measures to bridge the gender In January 2008, the Government adopted a State or on foreign foundations, few of which provide
gap in political and decision-making positions. The new policy on parental allowances, known as “three significant support for independent civic initiatives.
proportion of women in the lower chamber of par- speed” parental leave. Parents can now choose the Successful grant applicants must fulfil political cri-
liament stands at 15.5%, putting the country at 69 amount of time they will get a parental allowance. teria and their activities must be in conformity with
on the Inter-Parliamentary Union data base. With the The duration determines the monthly benefit. Wo the donor policies. To avoid criticism and exclusion,
exception of the judicial system, where 64.5% of dis- men with high incomes get the most, while women most organizations are eschewing advocacy work
trict court judges and 60.4% of regional court judges with low income receive the least. The Ministry of and focusing on service work. The least restrictive
are women, they hold less than 25% of most legisla- Work and Social Issues, which is extremely con- financial support comes from the European Com-
tive and executive positions. Even in the judiciary, the servative on gender issues, refuses to support and mission, particularly those administered directly by
higher the court, the lower the proportion of women.14 develop childcare institutions and is moving to abol- the Commission. The largest civic campaign remains
In recent years, the country has made significant ish crèches, of which there are only about 40 in the Czechs Against Poverty, which participates in the
progress with regard to violence against women, en- country. The Government’s so-called pro-family Global Call to Action Against Poverty and focuses
acting legislation to prevent domestic violence and package does not include comprehensive support on advocacy and fulfilling the Millennium Develop-
making stalking a criminal offence. However, these for childcare institutions. ment Goals.
measures are still insufficient to constrain all forms Another problem is the lack of support for poli- Independent journalism is practically nonexist-
of gender-based violence. Regrettably, women’s cies that combine childcare and family programmes ent. Exposure of political scandals very frequently
with activities that promote integration of female appears to be generated by political directives, rather
10 See <www.socialni-zaclenovani.cz/>. immigrants. Entering the labour market, these than independent investigative work. The media pro-
11 See <www.romea.cz/romeatv/index.php?id=detail&source=t women are also at a disadvantage due to their lack vide information that is selective and incomplete;
&vid=ukbpGyZFEbE&detail=ukbpGyZFEbE>. of academic credentials and skills. Job opportunities their objective often seems to be providing support
12 See <www.vlada.cz/cz/media-centrum/tiskove-konference/ for the interests of particular economic and political
tiskova-konference-premiera-mirka-topolanka-a-ministryne- 15 Zeny a muzi v datech. Prague: Urad vlady, Cesky statisticky groups. In this environment, democracy in the Czech
pro-lidska-prava-a-narodnostni-mensiny-dzamily- urad, 2008. Republic is at a dead end. n
stehlikove-28—srpna-2008-40581/>. 16 Ibid.
13 Taylor, L. “Czech minister blasted by Roma”. The Star, 19 17 Quantitative research was done in September-October 2008
November 2008. Available from:<www.thestar.com/News/ to find out how male and female employees perceive equality
GTA/article/539490>. of opportunities, as well as whether they think their employer
14 Zeny a muzi v datech (2008). CSU, Urad vlady. enables them to harmonize their work with private and 18 Krchova, A., Viznerova, H. and Kutalkova, P. Zeny migrantky v
Available from: <www.czso.cz/csu/2008edicniplan. family life. See Gender Studies, o.p.s. available at: <www. Ceske republice. Uvedeni do problematiky. Prague: Fes Prag,
nsf/t/23003275C8/$File/14150807.pdf>. genderstudies.cz>. 2008.
EGYPT 72
An unprotected economy 19 18
0 0 0
93
The food price crisis in 2008 showed that after decades of paying no attention to its agricultural sector, Egypt
54 85 55 54 61
100 100 lacks food
86 sovereignty.
100 Today
100 the Egyptian economy is100
74 beginning to feel
100 the impact of the global crisis.
100 The 100
drop in remittances and the return of émigrés has put pressure on a labour market badly prepared to absorb
adesh = 56 more unemployed
IEG of Bangladesh = 52,7 workers. The Government
BCI of Benin has adopted measures to promote investment
= 76,9 IEG of Benin and economic
= 42,1
recovery. While these are long overdue, it remains to be seen whether they can deliver the needed stimulus
before rising unemployment and lack of food security lead to widespread social unrest.
in exports for 2009, together with declining foreign development of the agricultural sector, enhanced 550 in the mining sector. When the Assiut Cement
86 investment and reduced income from the Suez Ca- support for farmers and the adoption of 90 alterna- company, which belongs to French Siemens, de-
68 57
100 100 100 100 100 100 100 100
nal and tourism—all
92 due to the global slowdown. tive agricultural policies are needed to provide food cided to stop production to carry out ‘maintenance’
safety and to dignify the life of Egyptians by means work, only 680 of a total of 4,400 employees had
work contracts, while the rest worked on a daily
que = 66,1 IEG of Mozambique = 64,4 BCI of Myanmar, IEG In
of Burma = 0Orascom Con- BCI
or temporary basis. addition,
1 This report draws on reports from the Land Center for 2 Rachid, R.M.Birmania o Burma
“The Financial = 73.2 on Egypt”,
Crisis: Repercussions
Human Rights (LCHR) and Center for Trade Unions & 2008. Available from: <www.amcham.org.eg/operation/ struction dismissed 400 temporary employees
Workers Services (CTUWS). events/events08/FinancialCrisis/FinancialCrisis.asp>. in March 2009, and the building company CEAC
42
SW2009 ING v02.indb 84 8/27/09 7:01:30 PM
dismissed 150 in January.3 The banking sector has The Government’s response • Efforts to solve problems and simplify invest-
also announced staff retrenchments in the coming In response to the crisis, the Government has imple- ment procedures, especially in labour-intensive
months. mented a series of measures to strengthen sectors sectors, such as agriculture, industry and serv-
of the economy that are likely to stimulate renewed ices.
Investment and savings growth.5 These measures include: • Efforts to achieve price stability of energy for
According to the Economic Development minister, • Increased expenditure on public investment, industries.
reduced growth along with increased public invest- including the implementation of urgent labour- • Increased support to the productive and export-
ment –in human development, infrastructure, educa- intensive projects to boost consumption and ing sectors.
tion and health programmes, among others – will revitalize the economic cycle. • Provision of land needed for infrastructure
produce a deficit between investment and domestic
• Reduced tariffs on intermediate goods and capi- projects and productive activities.
savings that could reach EGP 85 billion (just over
tal to help companies compete abroad and to • Improved coordination with the Central Bank
USD 13 billion). As for remittances, EGP 40 billion
encourage investment. in order to provide credit to small and medium
(some USD 7.2 billion) are expected in 2009-10,
some USD 180 million less than the previous year. • Lifting of taxes on imports of capital goods for enterprises and to develop big surpluses of li-
The same will happen with the share of private in- one year, in order to promote investment. quidity to finance productive projects.
vestment in total investment – it is expected that this • Investment of some EGP 15 billion in projects
will reach 57%, compared to 67% in the previous with public and private participation. In addition, a number of long-overdue banking re-
period.4 forms have also been announced. At this point, how-
• Plans to attract foreign investment, particularly
The loss of jobs among Egyptians living ever, it remains to be seen what sort of impact these
from the Arab region, amounting to USD 10
abroad is estimated to result in the return of ap- measures will have in terms of renewed growth. In
billion annually.
proximately 250,000 out of a total of 6 million, the meantime, it is increasingly urgent to provide
which will further stress the labour market. On the • New investment opportunities in feasible measures to mitigate the impact of the economic
one hand, the Government is in no condition to projects such as oil, irrigation, civil aviation, crisis on the population, particularly those who have
absorb the returning workers; on the other, private free trade zones, tourism, urban development, lost their jobs and can no longer pay for basic food
companies increasingly demand better qualifica- housing, agriculture, trade and information items. Without such measures, social unrest is likely
tions and expertise when hiring new employees. technologies, among others. to escalate dramatically, and it is only a matter of time
This situation can only serve to increase unem- • The establishment of investment promotion before people take to the streets. n
ployment dramatically. bodies at local government level.
el salvador 83
0 0 0
Two decades of neoliberal economic policies have left the country in an extremely vulnerable situation
85 55 54 94 97
61 66political and environmental
100 100 in the face 100
of the global100economic crisis. Deteriorating100 social, economic,
100 100 100
95
conditions, social and labour market exclusion, falling remittances and rising prices of basic goods
n = 76,9 are =just
IEG of Benin 42,1some of the devastating effects. Although
BCI of Bolivia = 79,4part of the problem has been the
IEG of high= degree
Bolivia 66,1 of BC
dependency on the United States, political changes in both countries could make this very dependency
conducive to finding a way out.
[Coalition to Fight Poverty] (MCLCP) and Save the Children, del mundo [Employment19 in one of the most hardworking food has been continuously increasing. Average
nations in the world]. Report on Human Development 35
90 which jointly organized a forum on the impact of the crisis on 94 Report inflation over the
57 last four years was 4.9%, and in
100 100 100 in El100
Salvador. San Salvador: United Nations Development
100 100 74 100 100
Peruvian and other Latin American children, warn about the April 2008 it hit 6.8%. Cumulative inflation in this
increase in child labour in the region. Programme (UNDP), 2008.
42 43
SW2009 ING v02.indb 86 8/27/09 7:01:35 PM
period was 19.5%. The minimum monthly salary Phenomena such as deforestation, forest degrada- Conclusions
is between SVC 85.58 (USD 10) and SVC 183 (USD tion and pollution of rivers and other water courses Changes in the political leadership of the United
21). In February 2008 the basic food basket (BFB) paved the way for abandoning rural agriculture in States and El Salvador bring hope that a way will
cost SVC 163 (USD 19), while the basket of goods the face of an adverse economic climate, leading to be found to overcome the effects of the crisis, given
and services, which includes all the average family’s a shortage of housing and basic services for both the the close trading links between the two countries.
needs (food, health, education, housing, clothing), rural and urban poor, thus putting them at permanent It is imperative that a new relationship is based on
cost SVC 703 (USD 82).8 risk. Infectious and vector-transmitted diseases are autonomy, respect, equity and solidarity. The Sal-
According to the 2006 National Income and on the increase. vadoran electoral results of March 2009, granting
Expenditure Survey, food represents some 30% of Given the environmental situation it is estimated executive power to the democratic opposition, make
the budget in lower-income homes. In June 2008 that the target under Goal 7 of the Millennium Devel- possible a new direction and lay the foundations for
the cost of the urban BFB increased around 22% opment Goals (MDGs), “To reduce by half the pro- a model of development that will rebuild agricultural
compared to June 2007, while the rural BFB has in portion of people without sustainable access to safe and industrial capacity and generate social welfare.
recent months seen increases close to 25% com- drinking water and basic sanitation by 2015”, will be Social Watch El Salvador will be playing a vigilant
pared with the same period a year earlier. This seems almost impossible to achieve, like most other MDG role on the country’s new political stage from 2009 re-
to be leading to a rapid increase in national poverty targets. However, lack of clear, objective informa- garding compliance with Economic, Social, Cultural
and extreme poverty rates.9 tion on MDG indicators related to drinking water and and Environmental Rights and MDGs, not only result-
It is worth noting that although the impact of sanitation make it difficult to gauge advances and ing from the change of government, but also because
the price increases for basic products is greater and backward steps in this field. Official statistics for the there is a debt owing from previous governments in
more dramatic in lower-income homes, it is also hav- scope, quality and availability of drinking water and this respect, already seen to have been due to the lack
ing a considerable effect on middle-income homes. sanitation differ from those given by environmental of any will to comply with them.13 n
Food, electricity and transport − the three areas most institutions and fail to recognize that simply having a
affected by changes at the international level − ac- standpipe is no guarantee of access to good-quality
count for around 50% of the average monthly ex- water.
penditure of Salvadoran families.10 For example, the Multipurpose Household Sur-
Given this situation, social and economic poli- vey (EHPM) reports that by 2007 the total proportion
cies are required to stimulate national production, of homes with private running water was 74%, 11
particularly farming. This means price regulation, while the National Administration of Waterways
productive investment, higher salaries, job creation and Drainage Systems (ANDA) reports that it was
and the intervention of the State to control flaws in 54.2%.12 The EHPM gives the coverage by public
the market. Food security should be at the centre of fountains or standpipes as 4.2%, but ANDA reports
Government action. it as 6.2%. In either case these figures are alarm-
ing and indicate the shortages in drinking water that
Inequalities heightened by the crisis working class areas have to put up with.
The climate crisis – higher temperatures, changes The MDG progress report prepared by UNDP
in the pattern of rainfall and greater frequency and in 2007 highlights advances in achieving the MDG
intensity of droughts, floods, landslides and hurri- target on water and sanitation but environmental
cane-force winds – has increased economic, gender, and consumer organizations find this questionable
ethnic and other inequalities. It has also heightened when the Government has used provision of domes-
existing fragilities associated with the most vulner- tic connections, standpipes, water wells, springs
able population groups, such as women, children, and rainwater reservoirs as indicators of progress in
the elderly, indigenous peoples and the rural and sustainable access to improved water sources. There
urban poor. is no reliable information to indicate whether these
Year after year rural families lose their crops resources are really protected and comply with qual-
and smallholdings, which reduces their access to ity standards for water fit for human consumption.
land and water for human consumption. As a re-
sult, their income falls and they abandon their places
of origin, emigrating to major cities or abroad. The
country’s economic system multiplies the effects
of environmental vulnerability on poor populations.
ERITREA 76
0 0 0
With no working constitution, functioning parliament, independent judiciary, free press, bureaucratic accountability 99
94 97 98
100 100 66 or officially published
100 national
100 budget, Eritrea, the most militarized
100 country 65 world, lacks the mechanisms
100 in the 100 100
95 97
required to tackle the current global crisis. The shrinking global economy has drained remittances to Eritrea, while
olivia = 79,4 IEG of prices
Bolivia of food and fuel have skyrocketed.
= 66,1 BCI ofThe country
Brasil = 90,2 needs an immediate transition toofa democratic
IEG Brasil = 68,2system of BC
governance that has the support of the international community. Humanitarian aid monitored by independent
international NGOs appears to be the most effective emergency plan to save the lives of helpless Eritreans.
74
43
SW2009 ING v02.indb 88 8/27/09 7:01:41 PM
The numerous abhorrent violations of human rights GONGOs (Government-operated NGOs) ment Fund, but has legitimate concerns regarding
perpetrated under the NMSP include rape and other A sound development agenda driven by a rights- the Eritrean Government’s contempt for the legal
sexual violence against female conscripts. In recent based approach gives strategic preference to em- requirements attached to any responsible develop-
years, military commanders have been in effective powerment of local communities and accountability. ment aid plan. These include commitment to the
control of all senior academic institutions. In 2003, This approach endows people with the power and principles of good governance, accountability, and
the country ranked as the most militarized state in capacity to become the major actors in their own respect for human rights and the rule of law, none
the world and third highest, after North Korea and lives. One way to achieve this is through the involve- of which exist in Eritrea. The country has neither the
Angola, in percentage of Gross National Product go- ment of independent civil society organizations and political will nor the means to ensure a genuine de-
ing to the military.6 By mid-2000, Eritrea military local NGOs representing the interests of their com- velopment policy, and lacks a transparent decision-
had 300,000 people in its ranks, more than at any munities. Sadly, the repressive atmosphere renders making process for formulating and implementing
other time in its history. Since then the number of impossible the work of independent civil society. The state policies to overcome the current global crisis.
personnel is believed to have increased exponen- country has only three active local organizations en- Eritrea needs an immediate transition to a dem-
tially. Female conscripts make up 45.27% of the total gaged in the national development agenda purported ocratic system of governance that has the support
national army, and their vulnerability is proportional to benefit the general population: the National Union of the international community. Until that occurs,
to their number. of Eritrean Women (NUEW), the National Union of humanitarian aid monitored by independent interna-
The country’s pervasive crisis has been exac- Eritrean Youth and Students (NUEYS) and the Na- tional NGOs appears to be the most effective emer-
erbated by the shrinking global economy, which has tional Confederation of Eritrean Workers (NCEW). gency approach to saving the lives of the helpless
choked off remittances from abroad. The cost of Other “civil society organizations” are timorous and population, suffocated by severe political repression
food and fuel has skyrocketed. Prices at fuel pumps, exist in name only. as well as an economic meltdown. n
strictly regulated by the Government, are said to be Even the three active organizations are not
the highest in the world. Actually, fuel is hardly avail- genuine or independent enough to represent the in- References
able. Food can be purchased legally only at Govern- terests of their constituencies, as is widely known. Awate Team (2003). Defending Indefensible, Indulging
ment-owned outlets, and farmers have to sell their They function as the women’s, the youth’s and the Incompetence. Available from: <www.unhcr.dk/Pdf/
grain to these stores at a fixed price. Sale of grain in workers’ leagues (branches) of the ruling party, statistics/global_trends_2006.pdf>.
local markets has been effectively criminalized, as which picks their leaders and commands their al- Mekonnen, D.R. (2008). ‘Transitional Justice: Framing a Model
the President himself stated in an extensive media legiance. In other words, they are typical examples of for Eritrea’, unpublished LLD thesis, University of the Free
State.
briefing in January 2009. Government-operated NGOs (GONGOs), designed
to conceal the country’s dependency on foreign aid Mekonnen, D.R. (2007). ‘The Abolition of Female Circumcision
Governmental response and pay lip service to civil society participation.7 The
in Eritrea: Inadequacies of New Legislation’, African Human
Rights Law Journal 7(2): 407-08.
The Government categorically dismisses reports only independent civil society organizations, such as
Office of the High Commission for Human Rights. ‘Human
of economic deprivation, as well as reports on po- the Eritrean Movement for Democracy and Human Rights in Development: Rights-Based Approaches’.
litical repression, as “enemy propaganda”. In fact, Rights, work in exile, excoriated by the Government Geneva. Available from: <www.unhchr.ch/development/
the President quipped that accounts of pervasive as “enemy stooges”; if caught inside the country, approaches-04.html>. Accessed 17 March 2009.
economic hardship represent nothing more than the their members are jailed and tortured. Reporters without Borders (2007). Annual Worldwide Press
frustrations of “overfed and spoilt people” who do Freedom Index. Available from: <www.rsf.org/article.
not know how to spend their resources. In reality, International cooperation php3?id_article=24025>. Accessed 16 October 2007.
UN High Commission for Refugees (UNHCR) (2007). Global
people are literally dying on their knees of hunger International cooperation is crucial in resolving the
Trends: Refugees, Asylum Seekers, Returnees, Internally
– in a famine caused by the PFDJ. With no working multiple global crises disproportionately scourg- Displaced and Stateless Persons. Geneva. Available from:
constitution, functioning parliament, independent ing people in developing countries. For many years, <www.unhcr.dk/Pdf/statistics/global_trends_2006.pdf>.
judiciary, free press, bureaucratic accountability or Eritrea’s food deficit has been covered by food aid UN Office of the High Commission for Human Rights (UNHCHR)
even an officially published national budget, Eritrea donated by the international community (although (2002). ‘Human Rights in Development: Rights-Based
acutely lacks the legislative, administrative and in- the Government does not acknowledge this). Inter- Approaches’. Available from: <www.unhchr.ch/development/
approaches-04.html>. Accessed 17 March 2009.
stitutional mechanisms required to respond to the national aid organizations and NGOs have played
current global crisis. Moreover, traditional mecha- a pivotal role in this regard. Nonetheless, many of Welt Hunger Ilfe (2007). The Challenge of Hunger 2007.
Available from: <www.welthungerhilfe.de/fileadmin/media/
nisms for coping with crises such as emigration are them were expelled as a result of the Government’s pdf/Pressemitteilungen/DWHH_GHI_english.pdf>. Accessed
hardly available. Under the suffocating martial law, illusory policy of “self reliance”. When not refusing 4 January 2008.
exit and entry points are closed tight. After deplet- food aid, the Government makes it difficult for this
ing whatever meagre resources they may have, the assistance to enter into the country. It prefers inter-
starving masses, particularly women, the elderly national aid in the form of cash.
and children, are unable to go anywhere and have The European Union (EU) remains one of the
to resign themselves to dying in their villages. The leading international providers of food and develop-
Government has yet to adopt any programmes to ment aid to Eritrea. It is currently debating the release
protect the most vulnerable population. of development aid worth EUR 122 million (about
USD 161 million) from the 10th European Develop-
0 0 0
In France the world crisis95has had a direct impact on98the people, as it has in all the developed countries 88
99
61
100 100 72 – which is 100
where it began.
100 The most obvious effects100have been rising
100 unemployment and increased
100 100
97 98
social exclusion, and sectors that not long ago were in a comfortable situation are even suffering
food shortages. In addition, because of the crisis and the country’s inability to create new resources
s IEG of Usa = 73,8 BCI of Venezuela = 94,5 IEG of Venezuela = 67,7 ICB d
érica = 98.1 for Official Development Assistance, this aid has been cut back sharply and France will not fulfil its
commitments in this area.
Coordination SUD
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Katia Hergott
Secours Catholique 100 100 98 100
BCI = 99 GEI = 72
Yves Casalis Children reaching Empowerment
5th grade
0 0 0
74 74
ghana
62
53
Inequality: the biggest challenge 23
0 0 0
ch
ril
ay
ne
ly
r
st
be
be
be
be
ar
Ju
ua
Ap
gu
M
ar
Ju
to
m
br
Au
Oc
ve
ce
98
Ja
98
pt
Fe
56
No
De
60
Se
51
SW2009 ING v02.indb 94 8/27/09 7:01:59 PM
uncertain; so far there is no clear indication about the
direction of its economic policy. CHART 2. The incidence of poverty by area in 2005/06 (%)
The 2009 budget has three major goals: it is an Share in population Poverty incidence Share in total poor
initial effort to put into practice the ideas contained
in the ruling National Democratic Congress (NDC) National 100.0 28.5 100.0
party manifesto; to respond to the global financial,
Urban 37.6 10.8 14.3
fuel and food crises; and to tackle current socio-eco-
nomic challenges. The driving force is the four main Rural 62.4 39.2 85.7
themes espoused in the NDC manifesto: transparent
Accra 11.8 10.6 4.4
governance, a strong economy creating real jobs,
investing in people and expanding infrastructure Coastal, urban 5.8 5.5 1.1
for growth. Coastal, rural 11.0 24.0 9.2
Even though the Government has outlined
some policy initiatives to try to mitigate the effects of Forest, urban 14.6 6.9 3.5
the global crisis, they do not seem adequate. More Forest, rural 28.0 27.7 27.2
over, it should be noted that government measures
Savannah, urban 5.4 27.6 5.2
to stimulate and subsidize farming production are
minimal. According to the IMF, agriculture contrib- Savannah, rural 23.4 60.1 49.3
utes nearly 40% of the country’s GDP and employs Source: Ghana Statistical Service, 2007.
more than half of the active labour force, but this
is the sector with the highest incidence of poverty.
About 70% of the rural population is actively involved
in agriculture.4 Even so, the country imports more CHART 3. The incidence of poverty in the northern regions, 1990/91-2005/06 (%)
than 40% of its food. This could be turned around: 1991/92 1998/99 2005/06
Ghana has the capability to lead a “green revolution”
in Africa. Only some 16% of the country’s arable Northern 63 69 52
land is used for farming.5 To boost agriculture and
Upper East 67 88 70
contribute to job creation, economic growth, and the
general well-being of the population, farmers need Upper West 88 84 88
the supported of investments in inputs, fertilizer, Source: Ghana Statistical Service, 2007.
training and access to markets. However at this criti-
cal moment, the 2009 budget allocates only 10% of
its funds to agriculture. The World Food Programme’s Comprehensive The impact of the global crisis on Ghana’s
Food Security and Vulnerability Analysis for Ghana economy will be severe in the medium term. The
The biggest challenge revealed that about 1.2 million people – 5% of the question that citizens are trying to come to grips
Drastically reducing poverty will require more eq- population – were food insecure. However, this na- with is whether the country should focus on aid from
uitable distribution as well as higher growth. At the tional average hid striking regional differences: 34% the international community to cope with the eco-
moment, the country is experiencing rising inequal- of the population in the Upper West region, 15% nomic fallout, or resort to harsh fiscal and monetary
ity, growing regional disparities and deep poverty. In in the Upper East region and 10% in the Northern initiatives. Urgently, women farmers in Ghana need
the rural savannah, for example, a staggering 60% of region are food insecure, a total of about 435,000 support in the form of investments in inputs, such as
the population remains poor, and poverty is declining people. The study also identified about 2 million Gha- fertilizers, and also in training and access to markets.
at a slower rate than elsewhere in the country. In the naians who had food consumption patterns barely These would boost agriculture while contributing to
Upper East and Upper West regions, the poverty rate acceptable at the time of the survey that may quickly job creation, economic growth, and the well-being
did not decline at all between 1991/92 and 2005/06, deteriorate following a natural or human-created of the population. n
and in the Greater Accra and Upper West Regions, it shock. Of those, 1.5 million live in rural areas of the
actually increased. Upper West, Upper East and Northern regions.
GUATEMALA
54
Rich country, poor people 23
0 0 0
92
The relentless food crisis affecting the country, with 12199
of 333 municipalities beset by famine, indicates
100
100 100
84 that the
78 current feudal system of agricultural production urgently needs
100 100 100 100 to be changed. Putting an
74 100 end
96
to the displacement of the farming communities and allowing them to own their land would not only
boya = 66 make landholding
IEG of Cambodia = 61,6 fairer but also enable a return
BCI of Canadá to food self-sufficiency. The promised
= 99,3 Comprehensive
IEG of Canada = 74,5
Agrarian Reform must be implemented without delay.
51
SW2009 ING v02.indb 96 41 8/27/09 7:02:04 PM
either by means of “legal procedures” or by armed Macroeconomic stability is to be maintained, substitution of traditional leadership by financed
force. This even happens in the so-called protected whatever the cost. This implies, among other poli- leadership has led to confrontations between peas-
areas (for the protection and maintenance of biologi- cies, high international reserves, low salaries and the ant movements. The criminalization and persecution
cal diversity and natural resources) in connivance attraction of industries by means of the elimination of peasant leaders, who are fighting for access to
with bureaucrats. of taxes. The fundamental paradigm for the State and land in order to produce food, has also occurred.
The installation and expansion of large-scale the ruling classes is the enlargement of the area of
agricultural monocultures – such as sugar cane, free trade agreements, two of which are considered Social alternatives
African palm and pine kernels – aimed at the export to be of prime importance: the Free Trade Agreement According to the Political Constitution of the Repub-
market also means the expulsion of the peasant pop- with North America, which has been in force for three lic of Guatemala, “private property is an inherent hu-
ulation. The land surface sown with sugar cane was years; and the Economic Partnership Agreement man right”. In other words, all Guatemalans have the
6% of the total in 1995 and 11% in 2007. The annual with the European Union, which is being negotiated. right to be owners of property. To this end “in specific
growth of the area dedicated to growing cane was Neither of these systems proposes benefits for the cases property can be expropriated for reasons of
3.6% between 1990 and 2005 but 17.7% between small producer. collective use, social benefit or duly proven public
2005 and 2007. The Gremial de Aceites [Oil Chamber One of the Government measures to tackle interest”. Malnutrition, poverty, extreme poverty,
of Commerce] estimates that by 2012, 150 thousand the crisis was to increase zero tariff import quotas unemployment and now the intensification of the
hectares will have been planted, with an investment for products such as yellow maize, wheat flour and recurrent food crisis all have their origin in the in-
in land purchases amounting to USD 32.5 million. common rice. However, one group of importers, ability of the population to provide themselves with
The amount of land involved might easily exceed the Buena Group, obtained 82% of the import quo- the necessary means of livelihood, since they lack
these estimates. Turning more land over to exports tas. This did not lead to lower prices and in practice the assets required for that purpose, especially land.
devastates vast areas that were producing foodstuffs constituted a subsidy for this company since it did This is a clear case of “collective use” and “proven
and causes the removal of hundreds of peasant not transfer the reduction in duties to consumers. public interest”; in other words, the situation is cov-
families, since these farms do not generate mass Furthermore, there is 20% direct taxation and 80% ered by the Constitution.
employment. Destruction of the cultural patterns of indirect taxation. The Government’s promise to initi- Opening up agriculture can ameliorate the cur-
the displaced population causes not only economic ate a process of fiscal reform in order to change the rent situation and offer a path to development; it is
poverty but also social, cultural and spiritual poverty, current model is not being kept. The planned reform, therefore necessary to destroy the feudal system
as well as despair and violence. within the context of the present crisis, has been of production. The equitable distribution of land is
The growing drug trade is another threat. This reduced to making improvements in the macroeco- a practical way to foster rural employment and in-
is sometimes related to lack of livelihood options nomic cycle and providing aid programmes for peo- crease farm productivity while also contributing to
following extensive cattle-raising which relies on the ple suffering extreme poverty. the growth of the economy, the capacity to save and
protection of the State in order to expel peasants and As regards farming, there are programmes to the provision of food. Agrarian reform cannot be put
exploit their lands. Peasant families are defenceless assist in the leasing of land, but not for access to off. It is a means to social peace and governance and
in the face of the purchasing power of the drug trade ownership or farming credit for peasants. The new will put an end to the conflicts rooted in the usur-
and the owners of large single-crop estates. Government has increased the number of forcible pation of peasant and indigenous land. It will also
evictions of peasants (50 by 31 March 2009). This prevent the destruction of forests and encourage the
The State’s response has generated instability and discontent in the in- emergence of sectors with the capacity to produce
The policies and actions proposed by the Government digenous and peasant organizations, which had and invest. Future generations will have more and
within the framework of its Emergency Programme looked forward to the approval and implementation better means of self-fulfilment and the capacity to
for Economic Recovery includes a counter-cyclical of the promised Agrarian Policy for Rural Develop- consume will increase, which in turn will invigorate
fiscal policy, a policy of social protection and other ment. Community leadership is being taken over by the chain of production.3 n
sectoral policies (rural development, programmes for the Government and multinational mining compa-
broader competitive agriculture, agricultural develop- nies, which are generating their own parallel social
ment and food assistance, sustainability of natural movements based on patronage and on financing
resources and the strengthening of land leasing). questionable representatives of the social base. The
100 100
HONDURAS
59
Honduras is one of the poorest countries in Latin83America. The international financial crisis already 100
54 56
predicted that life would
100 be even more difficult for 100the Honduran
100 population,
70 but the coup 100d’état, 100
supported by the most reactionary sectors of society – in particular the defenders of the patriarchal
culture – has exacerbated the situation. Social organizations, in particular women’s movements, are B
BCI of República Centroafricana = 65,2 IEG of Central African Republic = 45,8
organizing the resistance against the de facto regime.
poverty should drop to 42% and extreme poverty to lack of citizen security. Prosecutor’s Office. This event triggered a series
19%.3 Clearly this goal will not be reached; added 0
Since the PRS was approved in 1999 after Hurri- 0
of similar allegations regarding the State Attorney N
to the country’s existing problems are the conse- cane Mitch, each government has carried out its own General, magistrates of the Supreme Court of Jus-
quences of the current worldwide crisis. The Ministry 94
modifications to the document. For his part,97 Presi- 44
tice, the National Human Rights Commissioner and
100 100 100 100 100
of Labour has reported that over 10,745 people were dent Zelaya has weakened its institutional frame- magistrates of the Supreme Electoral Court. 99
laid off between late 2008 and early 2009. Moreover, work. On his own initiative he created the Ministry of Furthermore, delay in submitting the general
it is estimated that inflation exceeded 11% in 2008. Social Development and the Red Solidaria [Solidarity budget for 2007, which was sent to the National Con-
BCI of México = 95,2 IEG of Mexico = 60,5 BCI
Family remittances from the United States and Network], which automatically reduced the standing gress in April 2008 – while the 2008 budget had not
Spain have begun to slow down. Their contribution of the PRS Consultative Council in which civil society yet been submitted in April 2009 – makes it possible
to GDP decreased from 21% in 2007 to 20% in 2008 and government organizations were represented. to use public funds unlawfully and delays the imple-
and is expected to fall again to 18% in 2009.4 mentation of anti-crisis projects.
Some expectations but further regression
The Zelaya plan Over the strong opposition of private enterprises, The impact of the crisis and mitigating
100 98 100
The Government of Manuel Zelaya Rosales has re- the Government increased the minimum wage to measures
tained its populist welfare policies which, according HNL 5,500 (USD 297), though it exempted bonded The recession resulting from the global crisis makes
to the World Bank, have limited coverage, most of assembly plants and domestic work from the in- existing problems even worse.
45
them lacking in control and evaluation. It has also crease. In addition, the signing of ALBA in August
continued the confrontation between the three state 2008 gave rise to a great deal of expectation in the The energy crisis
powers, with the Executive on one side and the Leg- population, particularly among
0 the more vulnerable. The increase by over 100% 0 of the international price
islative and Judicial bodies on the other. For example, The agreement includes medical and educational of crude oil and oil products during 2008 caused
100
aid, donations of machinery and equipment 99and the the cost of transport and the production of goods 100
100 100 100 69 100 100
1 National Statistics Institute (INE) database. “Petrocaribe” initiative, which will make it possible to and food to shoot up. This in turn led to 96a dramatic
2 See Mauricio Díaz Burdett. “Honduras: ¿Cómo afrontar la purchase oil with long-term financing and very low increase in the basic food basket and a drop in the
crisis financiera internacional?” interest.5 The savings generated by this transaction purchasing power of the population. The cost of pro-
BCI of Polonia = 99,1 IEG of Poland = 70 BCI of
3 World Bank. “Informe sobre el gasto público 2007” ducing electricity also increased – at present over
4 Government of Honduras. Plan to Face the Effects of the 5 Report by the Committee for the Administration of Oil, 70% of the energy consumed in the country is gener-
International Economic and Financial Crisis. March 2009. November 2008. ated by plants that operate on fuel oil – and rates have
100 100
49
SW2009 ING v02.indb 98 37 8/27/09 7:02:10 PM
shot up 30%, affecting the poorer sectors, the middle
class, small businesses and small producers in par-
ticular. The Government tried to contain the impact Against blows to democracy and blows to women
by granting around USD 6 million in subsidies, but
this only benefited 3.3%6 of the poorest quintile of the On 28 June 2009 the Honduran army staged a lature of congresswomen with links to the Opus
population – some 100 thousand families.7 Despite coup d’état against the constitutionally elected Dei and the most conservative sectors of the
the subsequent drop in the price of crude oil on the president Manuel Zelaya Rosales, sending him Catholic Church, has set back women’s rights
world market, the electricity rates in Honduras remain into exile and naming Roberto Micheletti, un- and encouraged the coup d’état.
as high as at the worst moment of the energy crisis. til then president of the National Congress, as Now the repression unleashed by the de
In early 2009 the President of the National Con- his successor or “provisional president”. This facto Government has resulted in deaths, hun-
gress submitted a bill aimed at dramatically cutting coup was carried out with the support of the dreds of injured and displaced people, as well
the electricity rates. However, this measure, which did traditional political parties, the business sector, as the violation of fundamental rights. The rights
not stipulate any means of control, would aggravate the Supreme Court, the Catholic Church and to freedom of movement and of speech, among
the already critical situation of the National Electric En- most of the mass media, among others. others, are limited, especially for those who have
ergy Company while substantially benefiting private The coup has also been a blow to the Hon- risen up in popular resistance. In this context of
plants. In response, social and popular organizations duran social organizations. The de facto Gov- violence and almost total absence of the rule of
carried out a series of marches and public demon- ernment’s repression has resulted in deaths, law, the violence against women has increased,
strations in order to demand that the Government hundreds of injured and displaced people, and catalyzed by the patriarchal culture that considers
nationalize all of the energy generation plants. the violation of fundamental rights. the female body as its property. Women in the
Traditionally, Honduran women suffer popular resistance and also other women who,
The financial crisis great disadvantages. Although their education- by chance, and without participating in it, were in-
The Honduran economy is very dependent on the al level is higher than men’s and they represent volved in resistance scenarios, have experienced
United States; over 85% of the goods produced are 52.6% of the population of working age, only first hand the repression of the police and the
exported to that market. One of the sectors that has 34.3% of them is part of the economically active army. Since the first days of the new de facto re-
been directly affected by the crisis is the free zone population. Poverty in women-led households gime, the women’s movement and the feminists
area or bonded assembly plants. The National As- (64.1%) is proportionally greater than those are opposed to it, and have joined the resistance
sociation of Bonded Assembly Plants announced headed by men (58.8%).1 This gap is deeper along with the popular sectors throughout the
in November 2008 the loss of 25,000 jobs – 85% of with regards to extreme poverty, where 38.8% country.
them held by women – due to factory closures. are women and 34.9% are men. Feminists in Resistance – a coordination
As part of its anti-crisis plan, the Government has Between the end of 2008 and the first of women’s organizations, and organized and
announced that a large number of jobs will be gener- months of 2009 the National Congress passed independent feminists – emerged in the frame
ated all over the country in the short term. One of the several decrees that violated women’s right to of the different actions of resistance. Its work fo-
principal sources of employment will be the Caminos decide over their own body. Such is the case cuses on defending and highlighting the rights
por Mano de Obra [Roads for Labour] programme, of decree number 54-2009 that penalizes the and struggles of women. With messages such
which will carry out projects involving the construc- selling, use and promotion of emergency con- as “Against blows to democracy and blows to
tion of local roads.8 This is not going to be easy to put traception pills. In January 2009 a reform bill women” they have managed to link two major
into practice, however, as 2009 is Zelaya’s last year of the penal code was introduced in order to national problems, thus contributing to a more
in office and past experience shows that when a new recognize the right to life since conception, al- comprehensive vision of current issues.
government assumes power, it ignores the previous though it was still under discussion when the Feminists in Resistance of Honduras have
one’s plans.9 reactionary forces took power. planned and carried out different actions to-
With regard to the banking sector, the compa- The international crisis has favoured the gether with the feminists in resistance of Costa
nies exporting goods are not requesting financing increase of crimes, sexual violence against Rica, Guatemala and other organizations of
from the commercial banks. This has held up the women and girls (over 540 cases annually2) Central America and other countries. The dif-
flow of money and led to a lack of liquidity in the and femicides (more than 1.000 in the last six ferent organizations that make up the national
system. Another problem is the cornering of capital years3). In addition, the advance of religious coalition of Social Watch in Honduras, includ-
by the banks’ partners, who do not wish to risk their fundamentalisms, with the access to the legis- ing the Centro de Estudios de la Mujer and the
capital and prefer that the Government make the Centro de Estudios y Acción para el Desarrollo
investments. This practice was made clear when 1 INE (2007). Encuesta Permanente de Hogares de de Honduras are involved in this initiative. n
Propósitos Múltiples.
the largest shareholders in banks sent an average
of USD 200 million abroad in a period of about a 2 Dirección General de Medicina Forense.
month.10 The situation was reported to the National 3 Centro de Estudios de la Mujer database and the report
of Observatorio de la Violencia, UNAH, January 2009.
Banks and Insurance Committee, whose president
was fired. In order to generate liquidity, the Govern-
ment reduced the banks’ reserves and increased
financing for productive sectors at a borrowing rate The food crisis rise in the price of maize led to an increase in the
of interest not greater than 10%. The global rise in the price of wheat led to a 40% rise cost of all products based on cornflour. In addition, a
in the cost of wheat flour in Honduras, which in turn crisis arose related to the production of basic grains
6 World Bank, op. cit. led to an increase in the price of bread. Products as a direct consequence of the increase in the price of
7 Autonomous National University of Honduras (UNAH)
that the population consumes daily, such as rice and agricultural supplies, which went up 80%.
(2008). Forum on Energy Crisis and Development in cornflour, underwent an increase of 110% during the In order to mitigate the impact of the crisis, the
Honduras. second half of 2008. The shortage of foodstuffs is not Government has implemented some social welfare
8 Government of Honduras. Plan to Face the Effects of the only due to the lack of production but is also linked to measures such as a mother and child voucher, an
International Economic and Financial Crisis. March 2009. the worldwide energy crisis. Because of this, maize educational voucher, and the school satchel and
9 Interview with Congressman Marvin Ponce. harvested for human consumption was diverted and school meal plans, which assist 61.4%, 41.6% and
10 Interview with economist Martín Barahona. exported for the production of ethanol. The inevitable 29.8% of the poorest quintile respectively. n
hungary
11
0 0 0
ATTAC HUNGARY
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Matyas Benyik
100 100 99 100
BCI = 99* GEI = 70
Children reaching Empowerment
5th grade
Until a few years ago, Hungary had one of the largest
budget deficits in the European 54 Union, more than 9% 45
of GDP. Austerity measures introduced in 2006 cut it to
one of the lowest in the EU (below 3% of GDP). How-
0 0 0
ever, years of mismanagement left the economy on the
brink of meltdown, and since September 2008 the situ-
97 100 99 47
ation has100 54
grown progressively worse. The effects of
100 100 100 100 100 68 100 100
the global financial crisis on the real economy 99 became Births attended by 96
especially severe in the last quarter of 2008 as the col- skilled health personnel Survival up to 5 Economic activity Education
leaving a total of 378,000 people without jobs. will shrink by 3.5% this year, but others predict a been particularly protective of pensioners, wary
fall of 5-6%. Compounding the crisis, Hungary re-
a = 99,1 IEG of Poland = 70 BCI of Portugal = 99,4 IEG of Portugal = 73,1 BCI
* “Children reaching…” estimated following procedure “1” in 3 After Germany, the most important consumers of Hungarian
p. 209. 2 See: < epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2- goods are Austria, Italy, France, UK, Romania, Poland and
1 Ministry of Finance, 29 October 2008. 15052009-BP/EN/2-15052009-BP-EN.PDF>. the US.
52
SW2009 ING v02.indb 100 37 8/27/09 7:02:15 PM
that any cuts could cause hardship among older EU average of 28%. Services related to family sup- Other points in his memorandum include:
Hungarians, who form a key Socialist voting bloc. port accounted for 2.7% of GDP, and came to only
The number of beneficiaries swelled in the early one-fourth of the EU average per capita. The social • Increasing the age of retirement. At the moment
1990s as newly privatized companies dumped system is diversified, and includes social assist- it is age 62, but the actual average is around 58.
workers who had been on the state payroll. Draw- ance, family support, benefits provided to people Bajnai would begin reforms in 2010, including
ing a pension became an attractive alternative to living with disabilities or health injuries, the pen- elimination of the “13th month”.
unemployment as the pensions of higher-income sion system and social services. • Reducing sickness benefits. Currently, if a doc-
workers give them a larger share of their wages In 2006, the system was standardized, tor certifies that people are too sick to work, they
than in many other countries. The average pension streamlined and its targeting was improved. The get 70% of their pay for six months. Half of this
runs about USD 350 a month, untaxed. This goes a real value of means-tested benefits had decreased is paid by the employer.
long way in a country where the average after-tax until 2004, but the disbursement systems for
• Freezing child support. For years, it has been go-
wage amounts to just over USD 500 a month. Men regular social assistance and old-age allowance
ing up. Bajnai plans to reduce childcare support
reach full retirement at 62, but can take a pension were amended in 2005-06. Since then, benefits for
for three years and childcare benefits for two.
earlier if they have 40 years of service, and have the poorest groups have become more generous.
little financial incentive to continue working. The The basic and specialized social and child wel- • Cutting subsidies. Bajnai seeks to end finan-
average Hungarian retires at the age of 58, and fare system established over the last two decades cial assistance temporarily for young couples
just 1% of Hungarians between 60 and 64 years is complex. Programmes for individual services with children who are buying a first home and
old are currently working. The OECD estimates leave significant gaps in capacity and accessibility, decrease subsidies on gas consumption and
that Hungary’s pension outlays will be among the primarily in smaller communities. heating. After 2010, all subsidies would be
fastest growing in Europe in the coming decades. The child poverty rate is approximately one terminated. In addition, he plans to cut alloca-
The country already has 3 million pensioners, out and half times the EU average. Nearly one-fifth tions for public transportation, especially to the
of a total population of about 10 million. of Hungarian children live in households with per Hungarian railroads and public radio and televi-
Both employers and employees pay into the capita income below 60% of the median. Child sion. Government payments to the farmers will
State pension program, but their contributions do poverty is usually the result of parental unemploy- shrink significantly as well.
not cover all the benefits paid. Government makes ment and geographical disadvantages. In addi-
up the difference out of the central budget. For tion, the selection mechanisms in the education While he tightens government spending, Bajnai
years, Hungary has run fiscal deficits to pay for and training system intensify the impact of fam- wants to give “first aid to mid-sized and small Hun-
social programmes; the annual tab for pensions ily background on the performance of children, garian businesses that provide two-thirds of the
alone surpasses 10% of GDP. To finance these rather than counteract it. When parents have low country’s jobs” by reducing the tax burden on both
outlays, the Government sold bonds. In October education levels and a poor labour market position employers and employees. Last but not least, he en-
2008, investors stopped buying those bonds. Al- and live in isolation, they typically transmit these visions a stimulus package funded by EU subsidies
though the IMF provided an emergency bailout disadvantages to their children. to help the country ease the crisis and eventually
so Hungary could pay its bills, many international make its way out. n
investors pulled out, sending the Hungarian cur- The Bajnai austerity program
rency tumbling and darkening its economic out- Premier Bajnai has assumed office in the midst of
look. the country’s worst economic decline in almost
Critics say the country cannot afford a pen- two decades. To rescue the budget, keep it within
sion system that gives wage earners an incentive IMF guidelines and regain investors’ confidence,
to retire young or leave the work force when they he plans to cut pensions, public sector bonuses,
have relatively minor ailments. The IMF, backed by maternity support, mortgage subsidies and energy
Hungarian reformers, is pressing particularly hard and public transport subsidies.
for cuts in the “13th month,” a bonus monthly The most striking feature of Bajnai’s initial
payment made to all retirees introduced in 2003 memorandum – which has been termed his “Po-
by Gyurcsany’s predecessor. litical Manifesto” – is his insistence that the ur-
After his re-election in 2006, Gyurcsany gency of the situation demands “immediate and
proposed a reform of the pension system that in- determined action”. He warns that in July he will
cluded eliminating the 13th-month bonus, but he introduce “unavoidable, painful measures”. His
wanted current retirees to get the same amount main goal is to save as many jobs as possible, in
as before, spread over 12 months. He also pro- an effort to avoid social unrest and further division
posed gradually raising the retirement age to 65 of Hungarian society into haves and have-nots. He
by 2020 for women and to 68-69 by 2050 for men. also wants to achieve relative stability for the forint,
Gordon Bajnai, the new premier, will probably be reduce the deficit and join the Eurozone as soon as
compelled to propose deeper cuts that could prove possible. To achieve these goals, he states, “the
devastating for older Hungarians. Aging retirees whole government structure must be revised in
are already accusing politicians of dismantling the order to spend less on administration”. This would
promises of a previous generation, leaving them include freezing the salaries of public employees for
dangling in the wind. two years and eliminating 13th month bonuses for
In 2003, social protection expenditures ac- public employees beginning in 2010. He would also
counted for 21.4% of GDP in 2003, less than the cut national allocations to local governments.
india
0 0 0
99 46
Although several indicators
99
show that India’s situation is not among the worst, many sectors have declined
100 100
100 100 due to the downturn in the global economy while others have not been
100 100 100 100 able
68 to regain or maintain 100their 100
97 98
growth trends. Thus, for instance, there has been drastically reduced growth in personal and consumer
BCI of
le = 99
loans and industrial production. BCI
Inflation, increasing
of Chipre = 99,6 unemployment and decline in foreign institutional Repúbl
IEG of Chile = 61,9 IEG of Cyprus = 65,1
investment are some additional impacts. The Government must find a balance between economic
reforms to stimulate growth and the necessary relief for 250 million Indians living in extreme poverty.
ría = 99,3 a growth of 4.5%.2 IEG of Hungary = 69,8 BCI of India = 68,5 IEG of India = 40,7 BC
The collapse of the stock market in 2008 was an The most immediate impact of the crisis was cession deepens and financial firms – tradition-
indication of a further deepening of the crisis, and the on foreign institutional investment (FII). An out- ally large users of outsourcing services – are
markets have not been able to regain their health. Al- flow of USD 15 billion from the equity market was restructured”.8 On the other hand, for those who
though it is hard to predict how things will turn out, it recorded between April 2008 and March 2009 as have accumulated foreign exchange payment com-
is clear that the Government’s initial prediction that the compared to an inflow of USD 20.3 billion in the mitments, the depreciation of the rupee is not good
country would emerge unscathed,
100 was shortsighted. same period in 2007–08. 100 Other portfolio invest- news, nor does it assist
100in Government’s efforts to
It is important to explore the impact on India’s poor ments such as American 84 Depository Receipts/ rein in inflation.9
and marginalized populations as well as the effective- Global Depository Receipts registered the same The slower growth of industrial production
ness of the Government’s responses52 so far. trend.4 is evident from the fact that the yearly rate of ex-
The pullout of FII, which had reached USD pansion was 8.8% between April 2007 and Febru-
Impacts of the economic crisis 66.5 billion at the beginning of 2008, triggered a ary 2008 but came down 21 drastically to 2.8% in
The downturn can be seen in0lower industrial growth, collapse in the stock market0
and as a result the 0
2008–09.10 The Index of Industrial Production (IIP)
inflation, widening of the current account deficit, Sensex, an index of the country’s biggest enterpris- registered an average29 growth of 5.6% during April
96 48
a plummeting stock market and a depreciation in es, “fell from its
63closing peak of 20,873 on1008 Janu- to July 2008, slipped to a low of 1.7% in August,
100 100 72 100 100 100 84 1006% in 100
the value of the national currency, the rupee. 98 The ary 2008 to less than 10,000 by 17 October 2008”.5 but recovered to a comparatively healthy
financial crisis has also been accompanied by a rise FII outflows also resulted in a dramatic devaluation September. However, the IIP registered negative
in some food prices. According to the Wholesale BCI of
of the rupee, which fellMarruecos
from 39.99=against
81,1 the US growth again betweenIEGDecember
of Morocco = 44,8
2008 and Febru-
via = 0 IEG of Moldova = 73,9 BCI of
Price Index (WPI), rice cost 12.8% more in March dollar in March 2008 to 52.09 per dollar in March ary 2009. The growth rate of the manufacturing
2009 than in March 2008, as compared to a global in- 2009. The rupee also fell against other currencies sector declined from 9.3% in 2007-2008 (April to
crease of -1.0, while wheat went up 5.2% compared including the euro (6.5%), yen (22.8%) and yuan February) to a projected 2.8% in the same period
to a global drop of -47.5%. Inflation went from 7.7% (23.6%). 6 Although this might sound like good in 2008-2009. The core sector of infrastructure
in March 2008 to peak at 12.9% in August 2008 (it news for Indian exports, the downturn in the US, grew at a rate of 3% in 2008-2009 (April to Febru-
may be noted that the WPI 100
fell sharply to 0.3% that EU and Middle East economies
100
– which consti- ary), down from 5.8%100during the same period in
March). The annual inflation in key commodity prices tute three quarters of India’s91 goods and services 2007-2008.11
highlights the severity of the problem. Consumer trade – translated into a lack of demand. From a In addition, banks are cutting back on their
price inflation reached 9.6–10.8% 53 during January/ 24.5% growth between April 2007 and November credit. Between February 2008 and February 2009,
February 2009 compared to 7.3–8.8% in June 2008 2008, exports have declined to 17.6% in the same 42
the rate of growth declined substantially from 12%
and 5.2–6.4% in February 2008.3 months between 2008 and 2009.7 to 7.5% in housing, from 13.2% to 8.5% in per-
0 There is also a likelihood
0 that the slowdown sonal loans and from 5.9% 0 to -14.5% in consumer
1 Subbarao, D. “India: Managing the Impact of the Global in the export of services will intensify “as the re- durables.12
100 Financial Crisis”. Speech delivered at Confederation of Indian 99 98 99
100 Industry100 69
Annual Session, 26 March 2009. 100 100 100 100 75 100 100
98 4 Ibid. 97
2 Outlook Indi. “IMF Lowers India’s Growth Estimate to 8 Subbarao, D., op. cit.
4.5% for 2009.” 22 April 2009. Available from: < news. 5 Chandrashekhar C. P. and Ghosh, J. “India and the Global
Financial Crisis”. Macroscan. 2008 Available from: <www. 9 Ibid.
l = 99,4 outlookindia.com/item.aspx?658780>.
IEG of Portugal = 73,1 BCI of Rumania = 96 IEG of Romania = 71,3 BCI
macroscan.org/the/trade/oct08/trd15102008Crisis.htm>. 10 Ibid.
3 RBI. Macroeconomic and Monetary Development in 2008-
09. Reserve Bank of India. Available from: <rbidocs.rbi.org. 6 Ibid. 11 Ibid.
in/rdocs/Publications/PDFs/MMDAPRFull2004.pdf>. 7 Macroeconomic and Monetary Development in 2008-09. 12 Ibid.
52
44
SW2009 ING v02.indb 102 8/27/09 7:02:21 PM
Interventions to check the downturn Central budget allocations for development de- Conclusion
Following the G-20 Summit in November 2008, the clined from 7.5% in 2002–03 to 6.0% in 2007–08 The citizens of India have shown their confidence and
Prime Minister set up a group under his chairman- under the rules of the Fiscal Responsibility and Budg- trust in voting back the current United Progressive
ship to work out a detailed plan for appropriate and et Management Act. The budget allocation for devel- Alliance for a second term. However, the challenge
timely state intervention. The Finance Minister, In- opment in 2008–09 is about 6.8% of GDP; it has to for the current Government is to strike a judicious
dustry and Commerce Minister, Deputy Chairman of be raised to at least 7.5% to have an overall impact, balance between its ongoing economic reform
the Planning Commission and Governor of the Re- which means that “additional expenditure should be agenda and providing social and economic relief
serve Bank of India (RBI) were the other members of in the tune of around INR 400 billion (USD 8.3 billion) to the 250 million Indians who, according to World
this group. Remedies came in the shape of “stimulus instead of INR 200 billion (USD 4.1 billion)”.17 Bank statistics, are still living in extreme poverty.20
packages,” the first announced in December 2008 Reduction in CENVAT by 4% means that this will The current crisis poses a new set of problems for a
and the second in January 2009.13 Measures includ- only apply to products with a duty of more than 4%, country already suffering from massive inequalities
ed an additional expenditure of INR 200 billion (USD which entails a boost to consumer demand mainly and alarming levels of hunger and malnutrition.21 n
4.15 billion) covering critical rural infrastructure and for durable and luxury goods. In addition, it has been
social security schemes, a reduction in central value pointed out that this “will have an impact in terms of
added taxes (CENVAT) by 4% across the board, spe- supporting economic activity only if producers re-
cific measures on customs duties in sectors such as spond by cutting prices and such price cuts generate
steel and cement, and tax concessions and enhance- demand responses”.18 This does not seem to work.
ment of drawback rates for exports. For instance, in the aviation industry, the cut in fuel
Some additional measures were also adopted, prices did not translate into the reduction of prices to
including: subvention of interest rates and pre and consumers as expected.
post shipment credit for labour-intensive exports; There have been numerous demands for a mas-
refinancing facilities of INR 40 billion (USD 831 mil- sive public investment programme spent on social
lion) for the National Housing Bank for the housing and economic infrastructure, providing employment
sector, and INR 70 billion (USD 1.5 billion) to the and expanding domestic demand.
Small Industry Development Bank of India for micro,
small and medium enterprises, as well as authorizing Job losses and the social security challenge
the India Infrastructure Finance Company Limited to Loss of employment in many of the key sectors pos-
raise INR 100 billion (USD 2.1 billion) through tax- es a serious challenge to an already minimalist social
free bonds.14 Some monetary measures were also security policy. A sample survey of export-related in-
adopted by the RBI, such as the reduction in repo dustries carried out by the Department of Commerce
rates (the rate at which Indians banks borrow rupees reveals some 109,513 job losses during the period
from the RBI) from 9% in August 2008 to 5% in Janu- August 2008–January 2009. Similarly, the Ministry
ary 2009, reduction of reverse repo and the reduction of Employment carried out a survey of important
of the cash reserve ratio from 9% in August 2008 to sectors such as automobile manufacturing, mining,
5% from January 2009 onwards.15 textiles, metals, gems and jewellery, which together
However, there are some fundamental problems contributed to more than 60% of GDP in 2007–2008,
with the nature, direction and anticipated effects of revealing that about half a million workers lost their
these packages. One is that the amount allocated jobs during October–December 2008.
is grossly inadequate, if one takes into account the This poses a serious social security challenge
fact that the total stimulus amount of INR 311 billion since out of the total workforce of 457.5 million,
(USD 6.5 billion) is a mere 0.8% of GDP. Moreover, 422.6 million are categorized as unorganized or un-
there is ambiguity about the sectors in which the ad- protected. Of these, 393.5 million are in the informal
ditional amount of INR 200 billion (USD 4.2 billion) sector and merely 29.2 million are in the formal sec-
is to be spent. There is already a backlog of almost tor. Around 38% of this unprotected workforce is
eight months on actual expenditure. Adding more made up of women.19
funds with such an existing backlog makes it difficult
for the expenditure to be timely.16
iraq
0 0 0
Amal Shlash1
Basic Capabilities Index (BCI) the market may provide new opportunities in the
100 100 private sector, but it will
100 also increase competition
BCI = 88*
Experience in many countries has shown that transi- 81 Children reaching for jobs and require skills that the education system
5th grade
tion to democratic rule can help remove institutional imparts unequally. In addition, there will be fewer
and cultural obstacles to women’s empowerment. jobs for women in the public sector. Article 23 of
For this to happen, however, women must them- the 2005 Constitution guarantees “the right of the
selves advocate for equal rights. Moreover, while Iraqi to ownership” without any discrimination
0 8
emerging democracies have the opportunity to
0
NO VA
0
based on gender. Although 0no data exist to meas-
92
reform societies by establishing
37 basic freedoms, ure ownership of such assets as land, property and
89 95 99
democratic government, free markets and human businesses, it is safe to say that women in100general
100 100 78 100 100 100 100 100
rights, the insecurity associated with conflict can Births attended by possess fewer financial assets than men. For ex-
undermine such important outcomes. When transi- skilled health personnel Survival up to 5 ample, the vast majority of land and housing units
= 68,5 tion takes place in theIEG
midst of a conflict,
of India = 40,7 the need BCI of Irak = 88,4 are registered in theIEG
names of men,
of Iraq = 0 and men clearly BC
for a stable democratic system becomes the main dominate in private sector ownership and manage-
priority and can eclipse the imperative of equality. If then no longer fulfil its responsibilities or provide ment. Female heads of household – this is 11% of
that happens, the transitional phase may increase, key services in the transitional economy. Neither the total households – also own fewer assets than
rather than decrease, the prevalence of gender in- the private sector nor civil society has been able to other women.
equality. step in to provide such services, and women have
lost most of their social Women’s personal status
100 100 benefits, including state- 100
The State’s role and transition sponsored childcare. The new Constitution of 2005 strove to include a
Since the establishment of modern Iraq, the State has 64 number of positive measures for women. Women
created opportunities for the institutional empower- Development indicators, employment may pass now on their nationality to their children,
ment of women through wider access to education, and assets for example (Article 18). 34 However it contains a
health services and job training. 21 Their professional The imposition of sanctions and the growing po- number of articles, clauses and implications that
levels have risen, especially0in the more socially ac- litical and economic crisis, 0
with the insecurity and 0
could be considered discriminatory. For instance,
cepted fields of education29 and health services. For conflict it has bred since 1990, have meant that Article 41 states that “Iraqis are free to abide by their
96
instance, in the period 1997–2004, 68% of teach- women have not48fared well compared 86 to men in personal status according to their religion,
68 beliefs, 57
100 100 100 100 100 100 100 100
ers were women, and the overall rate of84women’s recent decades. They are worse off on several key doctrines 92
or choices”, which may allow for different
participation as medical staff was 30–60%. Before human development indicators. In 2007, although interpretations of Islamic Sharia, resulting in bar-
cos = 81,1 2003, women represented IEG 46%
of Morocco
of public=sector
44,8 em- women’s life expectancy (62) was much higher than riers to legal equality,
BCI of Mozambique = 66,1 IEG especially in matters
of Mozambique of civil
= 64,4 BCI of M
ployees, and were the main providers of services and that of men (55), 30% of women aged 15 and up code such as marriage and divorce. Varying inter- Birmania
social benefits in health and education, especially in were illiterate compared to 14% of men. Combined pretations could set up different practices in different
areas benefiting women. Yet the State has shown no school enrolment rates (primary, intermediate provinces, in rural and urban populations or among
real awareness that empowerment is not achieved and secondary) were 55% for females and 68% members of different religions. These provisions are
solely through enacting legislation but comes about for males. Unemployment rates were also higher seen as a step backwards when compared with the
only when society puts these 100
laws into practice – among women: 23% compared 100 96
to 16%. Women’s provisions of Law No. 100 188/1959, which regulate all
which in turn demands cultural changes. Women’s earned income is only 11% of men’s. Agricultural matters relating to marriage, divorce, inheritance,
empowerment requires a culture of equality of ac- work constitutes 60% of total working hours per guardianship and custody of children for all Iraqis,
cess and opportunity. week for women and only 22% for men. This helps regardless of sect.2 Indeed, Article 41 of the Consti-
Transitional stages often 42entail a review of the explain their low income, as agricultural work for tution contradicts the fundamental guarantee found
role of state institutions and mechanisms in order to women is known to be mostly unpaid and of lower in Article 14 of the Law that “Iraqis are equal before
better adjust to realities and 0enhance equality among productivity. In 2007 the Human
0 Development Index NO0,0VA
the law with no discrimination
0 0,0because of gender or
citizens. However, reforms in Iraq have been accom- for Iraq was 0.627, while the Gender Development
98 panied by the dismantling of the State, which could Index was99 0.584. 99 100
2 This law – which included the right to retain the marital home
100 100 75 100
In100general, the rate of women’s participation
100 100 100 100
97 after the divorce for a period of three years, equal marriage
in Iraqi economic activity is considerably lower age for female and male, equating the dowry of women in
* There are no available data on GEI. divorce with the price of gold at the time of divorce, and
than men’s participation (21% compared to 79%
ania = 96 IEG ofReport
1 Lead author of “Iraq: National Romania = 71,3
on the Status of Human BCI of Serbia = 98,1 requiring the husband IEG of Serbia
to prove financial=ability
0 to maintain BCI of
in 2004). The transition towards an open market
Development 2008.” This article is based on facts and a second wife before contracting a polygamous marriage –
analysis of that report, which is available at <www.iauiraq. economy may provide both more opportunities and was subjected to diverse amendments over the years, mostly
org/reports/NRSHD-English.pdf>. more challenges for Iraqi women. The opening of detrimental to women.
44 44
SW2009 ING v02.indb 104 8/27/09 7:02:27 PM
race”. Such a contradiction compromises the unity they gained 28% of seats. Additionally, adherence to tribe, thus reversing the gains of almost a century of
of universally applicable legislation. the quota system significantly raised the number of modernization undertaken by the State itself.
When it comes to providing protection for, and women elected to governing councils. Since 2003, Lack of security has hampered progress in hu-
prohibiting violence against, women, constitutional the number of women in administrative decision- man development and damaged mechanisms for
and legal provisions alike may be inadequate. The making positions has increased from 12.7% to genuine empowerment. But there is still an opportu-
Constitution, for example, does not refer specifi- 22.4%. Although they represented only 2% of the nity to improve the situation of women. The specific
cally to women when it addresses the issue of vio- judiciary in 2006, they fared better in the executive. responsibilities of the State include to:
lence in the chapter on rights. Article 4 does not In 2006, there were four female cabinet ministers, • Amend laws (and the Constitution) to eliminate
consider marital violence as a specific crime. Article and 342 high-ranking officials, including 8 under- provisions, omissions and contradictions that
44 states that “the Iraqi is free to move, travel and secretaries, 33 counsellors and inspectors general, perpetuate discrimination.
reside inside or outside Iraq”, but in practice the 86 directors general, and 215 assistant directors
• Ensure freedom of opinion to encourage public
law does not allow a woman under 40 to obtain general. However it should be noted that the hurdles
debate and dialogue; there is a need for public
a passport without the permission of a guardian. women have to surmount to reach and retain these
consciousness-raising campaigns and deep
Another example is that women have the right to opportunities are higher and more numerous.
changes in media stereotypes of women.
equal wages, but the law does not provide binding
provisions to guarantee equal promotion. Thus, A legacy of cultural restrictions • Create a new labour environment that sets aside
even where the Constitution provides for de jure For women, cultural heritage – which is formed by the present division of labour based on limited
non-discrimination against women, legal, social tradition rather than by religion – is one of the basic roles for women and their restriction as workers
and cultural factors often represent de facto ob- references in forming notions of acceptable conduct. to sectors of weak productivity.
stacles in the way. The legal and legislative climate A stereotypical image of women has lasted for cen- • Confront the culture of domination and margin-
in the Kurdistan Region seems to be more positive turies because the State, throughout its history, has alization and disseminate a culture of peace and
towards women. For example, the Personal Status helped perpetuate it to avoid entering into conflict tolerance to eliminate violence against women
Act No. 188, drafted in 1959 but considered pro- with society and its religious and cultural leaders. in all its forms and put an end to its perpetuation
gressive for its time, is being applied there, and the So ingrained has this image become that, as several as part of accepted culture.
Commission on Women’s Affairs has succeeded in studies have shown, the view some women hold of
• Open up new opportunities through reform of
introducing some amendments. In 2007, additional their own sex is not altogether different from that
the lending system in public banks, by lifting
conditions were imposed in cases of polygamy, fe- held by men.
the requirement for real estate as collateral
male circumcision was prohibited and regulations Women’s acceptance of this false image pro-
and by encouraging women-friendly banking
concerning divorce were changed to make them vides the State with the rationale to delay enacting
services.
more favourable to women. legislation that would improve their situation. Their
In 1986, Iraq ratified the Convention on the seclusion is also justified by society as a means of • Reform educational systems and curricula
Elimination of All Forms of Discrimination against ensuring their protection. In this way, the family re- to change society’s perceptions of violence
Women (CEDAW), with reservations to Articles mains the most resistant pocket of cultural bigotry against women, and instil a sense of common
2, 9 and 29. Those reservations effectively nul- against women, where male violence is accepted as a responsibility for ending it.
lify the Convention’s provisions for equality be- disciplinary or preventive right. For instance, a report • Expand access to micro-credit projects and
tween women and men. Since the beginning of the by the Ministry of Human Rights in the Kurdistan home-based work for women with limited edu-
transition in 2003, women’s organizations have Region indicates that 239 women were driven to set cation and training, rural women, the elderly,
tried without success to have these reservations fire to themselves during the first 8 months of 2006. and widows supporting families.
removed. The Constitution further does not in- This situation is not very different in other areas, and
clude any article acknowledging the ratification of honour-related murders are common in the centre By taking a firm stand on a culture of human
international conventions as binding. In any case, and south of Iraq. It is probable that such practices rights, equal opportunities and gender equality,
the new regime has rejected commitments to in- have been under-reported owing to the undeveloped the Government could dispatch the centuries-old
ternational conventions ratified by its predecessor, monitoring capabilities of women’s organizations as culture of discrimination against women in Iraq
in particular CEDAW, on the basis of contradiction well as to media biases. for good. n
with the Sharia.3
Conclusions
Bringing women into decision-making The empowerment of Iraqi women should be an
A quota system for women in political life was in- overarching goal, not a side objective, as women
troduced in 2003 and the new Constitution also have an equal part to play in overall economic, politi-
provides for affirmative action, granting in Article cal and social development. Yet evidence shows that
49 a quota for women of no less than 25% of the Iraqi women are disproportionately affected by the
seats in Parliament. Electoral Law No. 6 of 2005 also shrinking of the State’s power, the insecurity arising
stipulates that election candidate lists should abide from political instability, the breakdown of economic
by this quota. In the 2005 elections, women gained activities and the deterioration of social structures, all
87 out of 275 seats in the National Assembly (31%). resulting from ongoing conflicts. Increased violence
In local council elections from closed electoral lists against women is currently the most dangerous con-
sequence of the transition and requires urgent inter-
3 The same rejection applies to UN Security Council Resolution vention from all actors in society. Seeking protection,
1325 on women, peace and security. women have retreated to their community, sect or
italy
15
0 0 0
100
Government intervention to support those financial institutions exposed25to the fluctuations in
97
100 100 64 international100 markets confirms
100 74 that Italian banks have100 been in difficulties
100 since the beginning of the
100 100 69
97 91
global financial crisis. The worst consequence of the crisis so far is the shrinking of the credit market.
IEG of CzechIn
Rep. = 68,1 where 90% of businesses
a country ICB de Egipto
are= of
89,1 IEG of Egypt = 43,9
medium or small size, the Government’s response has
a = 99,2 BCI of
been quantitatively and qualitatively insufficient. There is a need for different policies that adequately
distribute the resources to fight poverty and protect workers.
42
Although the Italian Government has tried to instil
confidence by claiming that the country will not only
NO VA
0
remain untouched by the crisis 0but even come out of
0 0 N
it stronger, the evidence to the contrary is undenia-
95 99 100 55
100
ble. While100
the Government has not yet needed to100 save 100 100 100 100 100
any banks, this has not prevented the credit crunch Births attended by 97
from harming families and enterprises. Figures from skilled health personnel Survival up to 5 Economic activity Education
66
44
SW2009 ING v02.indb 106 8/27/09 7:02:33 PM
EUR 22 billion in Great Britain). Second, they will well as loosening environmental legislation and per- The dismantling of development
not strengthen the system of production. Especially mits for the private building industry. No attention is cooperation
problematic is the downplaying of the fight against given to renewable energy, emission reduction or the The Ministry of Foreign Affairs’ guidelines for de-
tax evasion – a phenomenon with disturbing dimen- hundreds of small infrastructure projects the country velopment cooperation 2009–2011 establish clear
sions in Italy at approximately 18% of GDP, which urgently needs. priorities.9 Sub-Saharan Africa will receive 50% of
means that more than EUR 100 billion in revenue is Apart from anti-crisis measures, the Govern- bilateral funding with priority countries identified for
lost every year.8 ment is proposing a very short consultation on the each region. Agriculture, water and the environment,
welfare model. The agenda includes some worry- global health, education and governance will be – in
Families ing proposals, such as pushing for further labour that order – at the centre of Italian international co-
The most important measures are single payments flexibility; a shift towards “workfare” models; the operation, with gender and the rights of children and
and cheques for low-income families. Additions to treatment of immigration as a problem, and not as people with disabilities as cross-cutting issues.
family income are welcome by those who receive a resource; and lack of recognition for the non-profit These issues are at the centre of Italy’s develop-
them, but 40 euros per month (the value of the so- sector as a key actor in the Italian welfare system, ment agenda for the 2009 G8, which it is hosting.10
called “social card”) can neither cover their expenses making reference only to volunteers and ignoring the However, despite these ambitious statements, Ital-
nor protect them from present and future problems. role of thousands of social enterprises. ian development cooperation is at a historic low. If
overseas development assistance (ODA) stalled at
Labour Proposals from the Italian Social Watch 0.20% of GDP in 2008,11 according to the budget for
Measures proposed by the Government are credit Coalition 2009 resources for ODA will be reduced by 56%, go-
aids and redundancy funds for the largest enter- In order to offer a different response to the crisis ing from EUR 733 million in 2008 to EUR 322 million
prises. As about 90% of Italian businesses are of and re-launch the Italian economy from the starting in 2009. These amounts will again be reduced in the
medium or small size, however, most enterprises point of those who are most affected by it, the Social next two years to EUR 215 million in 2011.12 NGOs
and workers will not be able to access this support. Watch Italian Coalition is proposing a number of and analysts agree that the ODA commitment for
Moreover, the sector that benefits the most is the au- measures: 2009 could be as low as 0.09% of GDP unless new
tomobile industry. Around the world, most countries resources are added.13 This is a far cry not only from
help this sector and Italy is no different; however, Family and welfare the general objective of 0.7%, but also from the Eu-
the Government should have tied the transfers to The key words should be “fighting poverty and re- ropean commitment of 0.51% that Italy should reach
investments in environmental sustainability and in- distributing resources”. A real welfare policy through by 2010. On the way to the G8, Italy has also tried to
novation. Besides, there are other sectors, such as public services benefits for those who really need advance a new aid accountability concept that seeks
garments, that need urgent help (in particular to sup- help, rather than direct money transfers, is the main to track down the contributions made by “the Italian
port their exports and the internal demand) for them tool to guarantee redistribution of resources within system as a whole” (State, local authorities, non-
to remain competitive. society. The Government, at the central and local lev- profit actors, foundations and private firms), thus
el, has to improve basic services, health, assistance, minimizing the importance of ODA, as a way to hide
Welfare day nurseries, public schools, migrant inclusion and the country’s poor record in keeping its promises.
Welfare money transfers have not been set out as housing policies since these measures represent the NGOs will suffer particularly from this trend,
policy. This means that the Government is giving out real struggle against poverty and vulnerability, as since their resources will be halved. In addition,
money without implementing safety nets, active la- well as a counter-cyclical economic policy to work funds for international organizations have been cut
bour policies, social inclusion, promotion, vocational against the effects of the crisis. by 68%, risking failure to fulfil most Italian commit-
training, etc. In the near future, there will be scores ments to the United Nations. Particularly at risk is the
of unemployed workers lacking structures that could Labour financing for the Global Fund to Fight Aids, Tubercu-
guarantee basic services for a decent life. At the same The moral imperative for every government is to losis and Malaria, which the Government promoted
time, in order not to face budgetary problems, the prevent the main consequences of the crisis falling at the G8 meeting in Genoa in 2001.
Government has reduced specific funds for social on the workers. Priority measures include defend- Moreover, scarce Italian aid is still far from be-
policies, self-sufficiency, local public transport and ing the less protected workers from a contractual ing efficient and remains strongly tied to the pur-
the inclusion of migrants. point of view, through the activation of both a social chase of Italian goods and services, as underlined
security cushion plan for precarious workers and in the recent OECD-DAC Aid peer review. Italian
Finance incentives for companies that decide to retain their external policies need serious revision. The Govern-
The so-called Tremonti bonds, named after the Min- employees. ment must understand the fundamental role played
ister of Economy and Finance, are in essence pub- To shape a different economy, support is ur- by development cooperation in building a country’s
lic loans that can be used by the banks in order to gently needed to enable the public and private re- reputation. n
strengthen their financial statements. The goal is to search sectors to embark on innovative processes.
re-launch the credit system, particularly for medium Moreover, a massive investment plan on renewable
and small enterprises. The effects of this have yet energies is essential in order to reduce dependency
to be seen. on fossil fuels, fight against climate change and sup-
port those sustainable economic sectors that look
Other measures to the future.
The Government’s plans for the future include cutting In response to the crisis, more and more ac- 9 Ministry of Foreign Affairs. La cooperazione italiana
allo sviluppo nel triennio 2009-2011. Available from:
resources for research and development and invest- count holders in Italy are entering the world of ethical
<www.cooperazioneallosviluppo.esteri.it/pdgcs/italiano/
ing in nuclear power. Measures supposed to stimu- finance. The ethical finance client cares about how Cooperazione/Pdf/Programmazione%202009-2011.pdf>.
late demand are investments in high-speed transport his own money is used, but also about his bank go- 10 See: <www.g8italia2009.it>.
and the huge Bridge on the Straits of Messina, as ing bankrupt. Many banks today are thus multiplying
11 OECD-DAC. “Development Aid at its highest level ever in
their efforts to improve their reputations. Returning 2008”, Paris, 30 March 2009.
to the original mandate of the banking system to sus- 12 La cooperazione italiana allo sviluppo nel triennio 2009-2011.
8 Pisani, S. and Polito, C (eds.). Analisi dell’evasione fondata
tain the real economy has to be a constant reference
sui dati IRAP Anni 1998-2002. Agenzia delle Entrate, 2006. 13 See: Viciani, I. and de Fraia, L. (eds.). Aiuto pubblico allo
Available from: <www1.agenziaentrate.it/ufficiostudi/ for finding a way out of the crisis. sviluppo italiano nel 2009. Previsione dopo la finanziaria.
pdf/2006/Sintesi-evasione-Irap-06.pdf>. ActionAid. 2009 <www.actionaid.it>.
kenya
60
25
0 0 0
Don Bonyo
Futa Magendo Chapters 42 88 98
100 Ayoma Matunga100 100 100 100 100 100 100
81 85
Mazira Foundation Births attended by
Eddy Orinda skilled health personnel Survival up to 5 Economic activity Education
Haki Elimu
Opiata Odindo BCI of Kenya = 71 IEG of Kenya = 59 BCI
Kenya Land Alliance Kenya is more than familiar with stock promo- lion) through a Euro Bank scam to finance the presi-
Odenda Lumumba tions, Ponzi schemes, structured asset destruc- dential campaign.
Migori Clan tion through inflation that has had a lot to do with In a new election the NSSF, true to character,
William Janak
asset-stripping through fraudulent privatization, regained its notorious profile. A commercial plot ad-
KETAM
James Kamau debt peonage, corporate conmanship and blatant jacent to the equally scandal-ridden Laico (formerly
Kenya-Cuba Friendship Association
100 dispossession of assets, 100 as the case of rampant Grand) Regency Hotel100 was sold to a lower bidder.
Mwandawiro Mganga raiding of the National Social 83Security Fund (NSSF) It was reported that the NSSF rejected an offer of
Bunge la Mwananchi
demonstrates. This eventually led to parastatal col- KES 1.4 billion (USD 18.88 million) for the plot and
George Nyongesa
ChildFund Africa Region lapses and decimation of stock through credit and accepted that of KES 1.3 billion (USD 17.53 million)
Andiwo Obondoh share manipulation by unscrupulous capital market after the lower bidder offered a kickback to trustees
23
Undugu Society of Kenya insiders, like Suntra Investments, Nyaga Brokers to the tune of KES 650 million 9
(USD 8.77 million).
Alloys Opiyo 0
Ltd, Francis Thuo Ltd and0 others. 0
The Fund’s management denied this but in July 2008
The NSSF was established in 1966 as a manda- the Minister for Labour dissolved the Board and fired
35 100
94 Thirty years of unfettered,
57 free-market capitalism, tory provident fund for employees in Kenya. Although 47 to pave way for investigations
the Managing Trustee
100 100 74 100 100 81 100 100 77 100 100
based on the neo-liberal model, can no longer ob- both employees and employers each contribute only into this and other scandals. In September 2008 it
scure the systemic faultlines of a system whose time KES 400 (USD 5.4) monthly, the Fund has, by dint of was disclosed that NSSF was at risk of losing KES
has run out. its sheer size, chalked up a cumulative portfolio of 1 billion (USD 13.49 million) in Discount Security
= 58,4 IEG of Nepal = 51,2 ICBbillion
de Nigeria = 66,3 IEG of Niger = 44,4 BCI o
Commoditization and privatization of public more than KES 80 (USD 1.08 billion) or about – a stock brokerage firm that collapsed and was as-
assets hitherto considered essential to prosperity 8.2% of the country’s GDP. It continues to be used by sociated with a former Managing Trustee of NSSF.
has led to the transfer of assets from the public and the Government as a gravy train for its close associ- The lie that the neo-liberal state must, as a matter of
popular realms to the private and class-privileged ates, forgetting that it is a contractual savings and strategic efficacy, give the market a wide berth has
domains. The resultant predatory and speculative investment support scheme for supporting old-age been laid bare by the fact that instead of maximizing
financialisation of trade transactions
100
has led to the retirement. Originally a100department in the Ministry its effectiveness away 100
from the market, it has been
steep rise in the daily turnover of financial transac- of Labour, the NSSF was elevated to a stand-alone assigned the role of a prime agent of redistributive
tions in international markets, which rose from USD parastatal in 1987. Since then the pensioners have 74resources from upper
policies, reversing the flow of
2.3 billion in 1983 to USD 130 billion in 2001. No known nothing but melancholy. to lower classes that can only be associated with the
43
wonder, the accompanying deregulation allowed In the run up to the first multiparty elections in era of embedded liberalism; effectively subsidizing
25
financial systems to assume centre stage in redis- 1991-92, the NSSF was used as the main source of the rich in society through confiscatory deflation
tributive activity through speculation,
0 predation, out- slush funds for oiling the0 campaign machinery for practices.1 0
right fraud and thievery. Stimulus plans may be tech- the then ruling Kenya African National Union (KANU)
100 nical steps in the right direction, particularly if they
33
party. Pensioners’ money was funneled 86out of the Velvet glove treatment for criminals 99
58
100
virtues71of working bottom-up rather
have the 100 82 100 than 100
Fund in order to fund dubious real estate deals 100
that 100
Nowhere is this more starkly demonstrated 98
100
than in 100
top-down through the inert banking system. Essen- created instant billionaires among youngsters then the public fraud that was the Initial Public Offer (IPO)
tially, however, they remain technical fixes designed known as “Youth for KANU ’92”. It continued to be a
a = 99,5 IEG of Slovenia = 65,1 BCI of Somalia = 47,8 IEG of Spain = 76,9 BCI o
to pump up demand and get consumers shopping cash cow for the politically connected and got to the
1 See: Wade, R. Governing the Market: Economic Theory
again instead of empowering them to question the headlines only 10 years later, when in a pre-election and the Role of Government in East Asian Industrialization.
much-touted efficiency of neo-liberal capitalism. deal in 2002 it lost KES 256 million (USD 3.45 mil- Princeton: Princeton University Press, 1992.
lebanon 73
November, 2008. economic forum held in Beirut in 2 and 3 April 2009, Prime
1 Ziad Abdel-Samad IEG
is Executive Director of the Arab NGO Minister Fouad Siniora underlined the absence of alternatives
= 47,8 of Spain = 76,9 BCI of
5 Laithy, H., Abu-Ismail, España
K. and = 99,6
Hamdan, K. Poverty Growth to the market economy.IEG of Spain = 76,9 BCI of T
Network for Development (ANND). and Income Distribution in Lebanon. IPC Country Study No.
2 Ministry of Finance. Debt And Debt Markets. Issue No. 7, 13. Brasilia: International Poverty Centre (IPC) and United 7 Gemayel was assassinated in November 2006 in Beirut.
Quarter IV, 2008. Nations Development Programme (UNDP), 2008. 8 See: <www.industry.gov.lb/>.
66
9 CDR is an autonomous structure responsible for the planning 12 The current Prime Minister was Minister of Finance in
and implementation of master infrastructure projects all 1992–1998 and 2000–2004. The current Minister of Finance
around the country. It functions under the direct supervision worked at the IMF before he became the Prime Minister’s
of the Prime Minister. main advisor in 2005; he was appointed as Minister in June
10 Iskandar, M. “Mr. Prime Minister, Your Plan 2009–2010 is 2008.
Not Convincing”. Al-Nahar, No 23612, 15 February, 2009. 13 Hamdan, K. “Primary Reading in the Implications of the
11 The Ministry of Finance estimates the cost of this policy will Financial and Economic Crisis”. Al-Safir, No. 11146, 10
be an increase in public debts of USD 4 billion. November, 2008.
A gloomy outlook
11
0 0 0
96
Malaysia, which relies heavily on exports for economic88 growth and imports most of its food, will 41
50
100 100 68 have to brace for years of economic difficulties. There is a sharp100fall83 in industrial production,
100 100 100 79 100 the 100
94
unemployment rate is soaring and analysts warn that the coming recession could be worse than that of
ia = 99,3
1997.
IEG of Germany The Government has beenBCI
= 78,2 criticized
of Ghanafor acting too late and for focusingIEG
= 75,5 onofbailing
Ghana =out companies.
57,6 BCI of
Civil society organizations are holding protests and public fora to raise public awareness of the negative
impacts of these crises, especially to the vulnerable groups in society.
of last year and into the first few months of 2009. export engines of growth are stalled or in reverse which if not addressed will have serious repercus-
The economy contracted a faster-than-expected gear. Another sign of bad times is the consistent sions on social and political stability. The USD 17
= 99,6 IEG of Spain = 76,9 BCI of Tanzanía = 72,7 IEG of Tanzania = 71,9 BCI of T
6.2% year-on-year in the first quarter, prompting the sharp fall in industrial production since July 2008; billion plan will allocate money for fiscal injection,
Government to steeply cut its forecast to a 4%-5% the latest available figure shows that in January 2009 guarantee funds and other assistance for industry,
contraction for this year. production fell 20% compared to a year ago. equity investments and tax incentives. The four main
100
malta 68
88 Although the Maltese economy41 seemed at first to be shielded from the37global economic crisis,
96
100 100 83 the effects
79 are starting100to be felt. Tourism is declining,
100 100 and food100and utilities have become100more
94
expensive. Opinion polls show that the Maltese are not confident of the immediate future, expecting
= 75,5 deteriorating
IEG of Ghana = 57,6 quality of life inBCI
2009. The number
of Guatemala = 68,3 of asylum seekers grows daily, and
IEG of Guatemala their plight
= 51,3
tends to get worse.
Kopin Malta
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Joseph M. Sammut
100 100 99 100
BCI = 99 GEI = 58
Children reaching Empowerment
5th grade
At the end of 2008, most developed countries were
in recession and the world economy was in a steep
downturn. During the year’s first 30 two quarters, the 29
Maltese economy seemed largely sheltered from
0 0 0
the effects of the financial crisis. Growth continued
to be driven by domestic demand, primarily in the
99 47 100 99 50
100
form of higher
100
consumption expenditure and a sharp100 100 100 100 100
accumulation of inventories.1 Conditions in99the la- Births attended by 97
bour market remained favourable, with the private skilled health personnel Survival up to 5 Economic activity Education
100 100
mexico 83
54
The worsening crisis challenges social rights
0 0
Problems such as increasing poverty, the breakdown97of the agricultural sector, insufficient employment 100
54
67 existed in Mexico before
and the decline of GDP100already 100 the current
100 crisis hit. The minor adjustments100 100
99
the Government is announcing only reinforce the neo-liberal economic model, and social unrest is on
the rise. However, there are a number of civil society
BCI of Honduras = 82,4 proposals that call for IEGalternative
of Hondurasstrategies
= 68,9 to BCI
confront the manifold crises, to minimize impacts and revise the economic model.
6 Assessments based on documents issued by the National Crisis.” Presentation during an Espacio DESC session, 14 de la Cueva, H. Otra integración es posible y otra salida a la
Movement for Food and Energy Autonomy, Workers’ Rights 23 April 2009. crisis también: escenarios de las Américas en el 2009 y los
and Democratic Freedom and the Democratic Alliance of Civil 9 Figures by National Statistics and Geography Institute retos del Movimiento Sindical [A different integration and
BCI of Uganda = 59,2 IEG of Uganda = 67,2 BCI o
Organizations (ADOC) – networks of which Equipo Pueblo (INEGI), based in National Poll on Occupation and a different way out of the crisis are possible: scenarios in
is a member – as well as the “Crisis Analysis and Strategy” Employment (ENOE), third quarter of 2008, published by the Americas in 2009 and the challenges of the Trade Union
Unido
session of Espacio DESC (23 April 2009) . El Financiero, 18 November 2008. Movement]. Mexico City, 2009.
100 96 100
56
SW2009 ING v02.indb 116 8/27/09 7:03:02 PM
made worse by the crisis: (1) food speculation on in early April 2009, the Government received support
CHART 1. Classification of Government
the stock market, which puts foodstuffs beyond the for its request for a USD 47 billion loan from the IMF. measures to address the crisis in Latin
reach of poorer families; (2) the invasion of national In addition, it was announced at the Summit that a America and announced or already
markets by food products produced and traded by further USD 850 billion would be allocated to emerging implemented by Mexico
transnational corporations, which sacrifice soil, for- economies – Mexico among them – in order to finance Monetary and financial Fiscal policy:
ests and water reserves to productivity and destroy countercyclical spending, recapitalization of banks and policy:
national systems of production, particularly tradi- infrastructure, among other things.19 • Reduction and/or • Reduction of taxes /
tional ones; and (3) the flood of genetically modified Even without having touched the USD 57 billion flexibilization of bank Increase of subsidies
seeds, which sweeps away the store of natural seeds from the IMF, World Bank and Inter-American Devel- reserves • Increase and/or antici-
and ancient ecosystems.15 The national No Maize no opment Bank credit lines, President Felipe Calderón’s • Provision of liquidity pation of expenditure
in national currency (infrastructure)
Country16 campaign – endorsed by our organiza- administration increased public debt by MXN 968.48
tion – proposes such measures as moving from an million (about USD 72.74 million) in just its first two Exchange and foreign trade policy:
agricultural model based on large monocultures that years in office (2007–2008), a sum equal to 12 times • Provision of liquidity in foreign currency (excluding
involve the increasing use of water, machinery and the debt contracted during the first two years of Er- Central Banks that intervened by selling foreign
contaminants, towards sustainable peasant farming nesto Zedillo’s Government (1995–1996), when the currency on the exchange markets)
that not only has the potential to respond to national country faced its worst economic crisis in 60 years.20 • Increase of tariffs or import restrictions
food needs but also has additional ecological vir- It is extremely worrying that these measures, in addi- • Reduction of tariffs
tues. tion to increasing the public debt, reinforce the neo- • Financing for exporters
• Credit negotiation with international financial
On the basis of this evaluation, it is possible to liberal economic model and its institutions, whose
institutions
state that Mexico was faced with the worst possible limitations and contradictions have been pointed out
Sectorial policy: Labour and social
scenario with which to confront a crisis that had been in many different forums. It is also surprising, given
policy:
in the making for several years. The Government has that several countries in Latin America are trying
submitted uncritically to the neo-liberal economic out different measures or procedures from those • Housing - Small and • Employment stimuli
medium enterprises • Social programmes
model, and several of the measures announced are imposed by this model.
• Agriculture - Tourism -
merely minor adjustments that sustain and reinforce Public unrest has been growing in the face of Industry
this model. the crisis, but so have the number of proposals being
Source: produced by the authors, based on ECLAC (2009).
put forward by civil society. For example, the National
Government and civil society responses Movement for Food and Energy Autonomy, Workers’
During the recent Summit of the Americas, the Eco- Rights and Democratic Freedom – in a letter dated 16 programmes”.21 It should be noted that the Gov-
nomic Commission for Latin America and the Carib- April 2009 addressed to Barack Obama, the President ernment responded to the 1995 crisis by cutting
bean17 confirmed that countries in Latin America do of the United States – suggested initiating a dialogue at expenditure, which seriously affected education,
not have a common strategy to overcome the crisis the highest level on items such as the urgent renego- health and electricity and had very negative effects
but have announced and implemented a diversity of tiation of NAFTA and the safeguarding of labour, social on the achievement of economic, social and cultural
measures, as shown in the table. and human rights in the region. This would include rights. Although so far the Government has asserted
In October 2008, shortly after minimizing the po- establishing an Asymmetrical Compensation Fund for that it will maintain its spending levels, it is vital that
tential threat of the United States crisis on Mexico due North America, negotiating a bi-national agreement its budgetary allocations tackle social issues more
to the “strength of the country’s public finances”, the regarding immigration, and the signature of an agree- effectively and sustainably “by reducing operating
Government announced a Programme for the Promo- ment in order to promote the Treaty for the Economic expenses, refocusing priorities and reducing admin-
tion of Growth and Employment (PICE, in Spanish), and Social Development of North America. istrative costs in certain departments”.22
a five-point anti-crisis plan that consisted of: (1) ex- Others believe that times of crisis provide fertile From the human rights perspective it is also es-
panding public expenditure in infrastructure in order ground for new theoretical concepts. In any case, sential to follow up on investments in infrastructure
to foster economic growth; (2) changing the rules it is imperative to generate new ideas, alternatives promoted as part of the PICE, particularly in order to
regarding the exercise of this expenditure in order to and strategies that are capable of dealing with “the ensure that, in the case of mega-projects (such as
accelerate the process; (3) initiating construction of a crisis”, be it to minimize its impact or to revise the dams), the communities that are likely to be affected
new refinery; (4) launching an extraordinary support economic model. are duly informed and consulted, and that social and
programme for small and medium enterprises, and (5) environmental studies are carried out effectively in
making national industry more competitive by means Supervising public expenditure order to evaluate projects’ viability and their capacity
of a new deregulation and tariff relief programme. In the short and medium term, a major issue on the to promote real development.
At the same time the Federal Government pointed agenda of civil society organizations working on In the long term, there is an opportunity at hand
out that the country had been reducing its foreign debt social development and human rights will be the not only to survive, but also to outline and foster a more
for several years, that its inflation was the lowest in Lat- supervision of public expenditure. This is related to equitable economic and social model, as a way out of
in America and that its reserves amounted to over USD the State’s obligation to devote the highest quantity the current crisis and to prevent new ones.23 In any case,
90 billion, which enabled it to resist balance of payment of resources available for the progressive achieve- respect for international human rights framework is the
pressures.18 Six months later, during the G-20 Summit ment of economic, social and cultural rights, as key point of reference that will make possible the crea-
well as the premise that “even when resources are tion of “another Mexico” and “another world”. n
15 Quintana, V. “La guerra que Obama ignora” [The war Obama severely limited, due to adjustment processes, eco-
does not know about]. La Jornada, 17 April 2009. nomic recession or other factors, it is possible and,
16 For further information see: <www.sinmaiznohaypais.org/>. in fact, it is a duty to protect the vulnerable members 21 UN CESCR. “General Comment Nº 3: The nature of
17 ECLAC. “The Reaction of the Governments of the Americas of society through the adoption of relatively low-cost States parties obligations,” paragraph 12. United Nations
to the International Crisis: A Synthetic Presentation of the Committee on Economic, Social and Cultural Rights. 1990.
Policy Measures announced up to 31 March 2009”. Fifth Available from: <www.unhchr.ch/tbs/doc.nsf/(symbol)/
Summit of the Americas, Port of Spain, 17–19 April 2009. CESCR+General+comment+3.En?OpenDocument>.
Available from: <www.eclac.org>. 19 La Jornada, 3 April 2009. 22 Serdán Rosales, A. “Mexico: Poverty and Social Budget
18 El Universal. “Anuncia Calderón plan anticrisis de cinco puntos” 20 González, S. and Rodríguez, I. “Calderón increased public Within the Context of the 2008-2009 Financial Crisis.”
[Calderón announces 5-point anti-crisis plan]. 8 October 2008. debt by almost one trillion pesos in 2 years”. La Jornada, Presentation during an Espacio DESC session, 23 April 2009.
Available at: <www.eluniversal.com.mx/notas/545274.html>. 13 April 2009. 23 Héctor de la Cueva, op. cit.
moldova
54
There is a crisis, after all 45
0 0 0
97
Moldova is living through
100
turbulent times. Prior to99the April elections, the ruling Communist Party
54 47
100 100 downplayed the effects of the financial crisis, even though
100 100 100 experts100had stated
68 that those countries100 for 100
99 96
which remittances constitute one third of GDP, such as Moldova, would be the most vulnerable. Once
duras = 82,4 the polls
IEG of Honduras were over, however, the
= 68,9 BCIGovernment started to refer to the crisis as
of Hungría = 99,3 IEGaof“catastrophe”.
Hungary = 69,8 Yet the BC
measures it has promoted in response are missing the target.
police and ransacking Parliament. The Government tions as a “test” for Moldovan democracy, as well
97 44
100
claimed that
100
the dispute over the election results100was as for 100
guaranteeing progress towards integration100 100 72 100 100
63
a cover for an attempted coup organized with 99 the into Europe (over half of Moldova’s trade is with the 98
involvement of Romania. Later, after the presidential EU, a large number of Moldovans work in the EU Economic activity Education
elections in June, the
BCI of
o = 95,2 IEGPresident
of Mexicoand leader of the
= 60,5 and over 70% of BCI the population
of Moldaviasupport
= 0 European IEG of Moldova = 73,9
PCRM, Vladimir Voronin, publicly “ceased political integration). However, the preliminary result of the global financial crisis. The initial consequences were
partnership” with the opposition. “test” has been abuse of administrative resources, already visible in the last quarter of 2008 and have
the constant harassment of the opposition leading been confirmed by statistical indicators in the first
A new political reality to protests and revolt, and the flagrant violation of quarter of 2009.3 According to the Moldovan Pre-
The fact that the political crisis overlapped with the human rights by law enforcement bodies. mier, Zinaida Greceanii, the effects are mostly due to
economic/financial crisis 100increased the gap between Moldovan society100 has been
99 deeply divided and decreasing exports and100 imports, reduced production
the Government and the opposition, as they both radicalized not just by the way the electoral campaign and lower remittances. In this situation, only a policy
denied any responsibility and each blamed the other. was carried out, but more so by the behaviour of the meant to secure and keep economic stability will
Fresh parliamentary elections 45 on July 29 produced security forces in the post-electoral period. Political allow Moldova to tackle the crisis.
53
a parliament in which no single party had a major- stability will only be regained if there is a full investi- Premier Greceanii underscored that invest-
ity, much less the 61-seat supermajority necessary gation of the April events. ments in infrastructure are to come both from
0 0 0
to elect a new president. The four main opposition budgetary and foreign resources. She cited a Czech
groups gained a combined total of 53 parliamentary Crisis and opportunities investment project to be implemented in the north
99 100
100before the elections in April 2009 the Gov- 99
seats. This is still not enough to push for a president Although of the country, which provides EUR 600 million for
100 100 69 100 100 100 100 69 100 100
of their choice, although leaders vowed to 96 form an ernment vehemently denied the crisis would affect the construction of a power station. According98 to the
alliance to force the Communists out. the country and tried to artificially maintain the eco- Prime Minister, the economic liberalization reform
a = 99,1 The TransnistrianIEGsettlement
of Poland =has 70also been nomic situation,BCI
the of
World Bank was
Portugal not so optimis-
= 99,4 (capital legalization,
IEG offiscal amnesty,
Portugal the tax on rein-
= 73,1 BCI
brought back to centre stage. This is a consequence tic and it included Moldova among the developing vested income, as well as the strict banking policies
of the pre-electoral strategy of President Voronin, countries with the highest level of vulnerability.2 After that have been lately promoted) will also help ensure
who signed the Barvikha Declaration, regarded by the elections, however, President Voronin declared Moldova’s macroeconomic stability and diminish the
the opposition as a capitulation to Russian inter- in a meeting with businesspersons, members of the effect of the crisis.
ests.1 As a result of the declaration, the Russian acting Government, congresspersons and politi- The Minister of Finance has said that the
military presence could end 100
up being legalized, the cians that “the crisis is100a fire, a catastrophe”. Gov- Moldovan financial system 100
is very solid and that
country could become confederated or Moldova ernment officials explained 95 that the downplaying of during the last year the capitalization of banks in-
could lose Transnistria. The opposition fears that the crisis before the elections has been aimed at not creased by 26.8%, assets by 22.3% and credit port-
little is left of Moldova’s sovereignty, independence “creating panic”. folios by 19.4%. As a result, 52 the current liquidity
and territorial integrity and feels37 it has the right to Indeed, despite Moldova’s impressive eco- of the Moldovan banking system is approximately
nomic growth in 2008 (7.2%), the country has been 30%, significantly more than the requirements of
0 severely hit by the second0 round of effects from the risks limitation (at least 20%).
0 4
* There are no available data on BCI.
1 President Voronin, Russian President Dmitry Medvedev and
87 100 99 95
Transnistria’s Russian-installed “president” Igor Smirnov 2 World Trade Organization. “The World Bank has Included
100 100 81 100 100 100 100 72 100 100
signed a Russian-drafted joint declaration on 1883March Moldova among the Developing Countries with the Highest 97
declaring that “noting the stabilizing role of the existing Level of Vulnerability to the World Crisis”. 10 April 2009.
peacekeeping operation, the sides consider that it would Available at <moldovainomc.org/index.php?option=com_c
be advisable to transform it into a peace-guaranteeing ontent&view=article&id=103:world-bank-has-included-
a = 59,2 IEG of Uganda = 67,2 BCI of Estados IEG of Usa = 73,8
3 See: <www.expert-grup.org/?go=biblioteca&n=110>. BCI of V
operation under the aegis of the Organization for Security moldova-among-the-developing-countries-with-the-highest-
and Cooperation in Europe upon [attaining] the outcome of a
Unidos de América = 98.1
level-of-vulnerability-to-the-world-crisis&catid=1:latest- 4 The first – and so far the only – bank to announce bankruptcy
settlement in Transnistria.” news&Itemid=50>. was the Investprivatbank, in June 2009.
56
48
SW2009 ING v02.indb 118 8/27/09 7:03:08 PM
However, the Association for Participatory of the Moldovan population lives in households that On the other hand, economists say that reduc-
Democracy announced that, due to the economic receive remittances.7 tion by 5% of the social contribution comes too late.
crisis, many domestic banks have stopped grant- A poll conducted in Moldova by CBS-AXA re- It threatens the de-capitalization of social funds and
ing credit to individuals for personal consumption vealed that 20% of the Moldovan beneficiaries of re- puts in jeopardy the capacity of the Government to
and mortgages and even to companies, as the latter, mittances in 2008 are now not receiving money from pay pensions. In addition, increasing VAT from 20
particularly in the building sector, are incapable of abroad and 45% reported that they receive less or to 22% will hinder consumption even further and
repaying the loans. On the other hand, with the po- much less than last year8. However, contrary to many reduce exports. Since the national economy is based
tential depreciation of the national currency, the leu, assumptions and concerns, there is no evidence of a on consumption, it would have been better to lower
versus main reference currencies, citizens are not mass return of migrants due to the economic crisis, VAT. If these measures are the whole “anti-crisis
crowding in to ask for credit. although the number of those who returned tempo- package”, then the Government is only taking care of
Much of the banks’ liquidity was due to remit- rarily in 2008 doubled (from 4.9% to 9.1%) and 8% accumulating new financial means in the budget. n
tances from Moldovans working abroad. It may be of them declared they were returning for good. What
that, since transfers have decreased, the banks have is particularly interesting is that the main reason References
less currency in their portfolios. Data from the Na- mentioned for the return was family, while job-loss Frunza, V. (2009). “All Bad is for Good: World Crisis Might Have
tional Bank of Moldova show that currency reserves and lack of financially interesting opportunities were Positive Effects for the Republic of Moldova”. 28 April.
in April 2009 constituted USD 1.086 billion, having only secondary motivations. Available at <moldovainomc.org/index.php?option=com_
diminished by almost USD 586 million (35%) com- content&view=article&id=111:all-bad-is-for-good-world-
pared to December 2008. This reduction was due to The Government’s response crisis-might-have-positive-effects-for-the-republic-of-
moldova&catid=1:latest-news&Itemid=50>.
interventions on the currency market under the form The Government’s priority is the payment of sala-
International Organization for Migration (DATE?]. Full reference
of sales and to payments made to the account of ries, pensions, scholarships and social allowances.9 needed
country’s external debt, among other external pay- Programmes meant to help initiate new businesses World Trade Organization (2009). “World Bank has Included
ments, as well as the reduction of the exchange rate and infrastructure projects are to be further launched Moldova among the Developing Countries with the Highest
of component currencies of the currency reserves in and implemented to ensure Moldova’s economic Level of Vulnerability to the World Crisis”. 10 April. Available
relation to the US dollar. The International Monetary stability and to attract new foreign investments. at <moldovainomc.org/index.php?option=com_content&
view=article&id=103:world-bank-has-included-moldova-
Fund (IMF), for its part, predicts that if remittances Among the measures included in the anti-crisis (or
among-the-developing-countries-with-the-highest-
and exports continue to decrease, the currency re- anti-catastrophe) plan announced by President Vo- level-of-vulnerability-to-the-world-crisis&catid=1:latest-
serves of the country might fall by USD 1.3 billion, ronin are: keeping the “zero quota” of corporative news&Itemid=50>.
which means in practice that the country will be with- income tax for the next four years, with the aim of
out currency reserves. sustaining the economic agents in the context of
On the other hand, according to the Academy of the global crisis; introduction of a fixed rate for the
Sciences of Moldova (ASM), the world crisis might income of physical persons – for example, 15% –
have positive effects for the country.5 While remit- and increasing the amount of non-taxable income;
tances and imports will be reduced, this will “stimu- reducing the contribution to the social budget by
late the real economy in order to fill in the vacuum of 5%; increasing VAT from 20% to 22% to ensure the
products on the internal market”. The depreciation of Social Fund; and reducing budgetary expenses to a
the leu is also seen as having some positive effects minimum of 20%.
such as increasing exports. The need to be com- The anti-crisis plan provides approximately 40
petitive, the ASM report stresses, might lead to an modifications to legislative documents. Parliament
improvement in the quality of goods to conform to will examine the plan after the new composition of
European standards. 6 the Government is approved. According to the acting
Vice-Premier, none of these measures will give sup-
A country dependent on remittances plementary income to the budget; instead, they will
In the opinion of World Bank economists, countries signal employers to make public the real wages.
for which money remittances constitute one third of
GDP are the most vulnerable to the economic crisis. Shortcomings of the Government’s plan
Among these countries are Moldova and Tajikistan, Ion Sturza, who was Prime Minister in 1999, has
where money remittances constitute 35% and 45% of declared that the fiscal reforms are not relevant for
GDP respectively, and also Armenia and Kyrgyzstan. the Moldovan economy and give the impression that
In 2008, Moldovan migrants sent back USD 1.66 new privileges are offered in exchange for support. In
billion just through official channels – mostly from his opinion, the proposals testify to the fact that none
Italy and Russia. Recent research by the International of the previous reforms were efficient or produced
Organization for Migration confirmed that over 35% the expected results.
MOROCCO
66
0 0 0 8
99 Morocco’s heavy dependence on the world economy 92 has made it vulnerable37 to the global economic 89
47
100 100 68 crisis. A drop in the demand for Moroccan exports, the sharp reduction in remittances and
100 100 100 100 78 a severe
100 100
96
inflationary process are some of the worst effects. The scant success of anti-crisis policies promoted by
ría = 99,3 the Government
IEG of Hungary = 69,8 aggravates the situation and
BCI of India increases social instability. NewIEG
= 68,5 proposals
of India = arise
40,7 from the BC
unions and civil society in order to create new conditions for a more equitable economic and social
model.
Espace Associatif1
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
100 100 100
BCI = 81 GEI = 45
While the impact of the systemic crisis is most evi- 84 Children reaching Empowerment
5th grade
dent at an economic level, the cost in social and hu-
52
man terms should not be overlooked. This cost could
be high, although it is hard to evaluate for at least two
21
reasons. The first is that the negative effect of the
0 0 0
global crisis on the Moroccan economy is only in its
initial stages and there is a risk that it may intensify 96 29
48
100
in the near future,
100 72with ever-increasing social conse-
100 100
63 100 100 100 100
84
quences. The second is related to the fact that, 98 at the Births attended by
moment, there are no reliable and disaggregated of- skilled health personnel Survival up to 5 Economic activity Education
ficial data available with
BCI of Marruecos = 81,1 IEG of Morocco = 44,8
via = 0 IEG regard to the social
of Moldova = 73,9impacts. BCI of
to a decrease in poverty of 4.2 percentage points, (e.g., cereals, sugar and cooking oil) represent over
The social aspects of the crisis from 23% in the late 1990s to 19% at present. How- 50% of the family budget.3
The social impacts will make themselves felt through ever, MRE remittances have fallen about 15%, from The loss of purchasing power will consequently
several macroeconomic channels. According to the MAD 8,200 million (some USD 1,020 million) in Jan- be reflected in a reduction in the quality and quantity
economic growth forecasts of the High Commis- uary-February 2008, to little over MAD 7,000 million of foodstuffs consumed and/or the sacrifice of other
sion for Planning (HCP, in100French), non-agricultural (USD 870 million) for the 100same period in 2009. A ma- expenses (such as education,
100 health and transport).
activities will show a net reduction of 3.9% in 2009 jor reduction should therefore 91be expected in sources Children, pregnant women and nursing mothers will
against 5% in 2008, due to the worldwide reces- of income and in the purchasing power of the families be at particular risk. Moreover, there is a risk that
sion which will cause global demand
53 for Moroccan of emigrants, who belong mainly to the poorer sec- chronic malnutrition will persist due to the lack of mi-
42
products to fall 1.2% in 2009, after a growth of 2% in tors of the population. The negative impact of the cronutrients – such as vitamins and minerals – which
2008. Exports dropped 31.8% in January-February reduction of MRE transfers also risks impacting on close to a third of the population suffer from, espe-
0 0
2009, compared to the previous year, while the cost real estate, which provides work for thousands of cially women and children0 under the age of three.
of imports only fell 15.7% as a consequence of lower Moroccans in many regions of the country, particu-
100
prices for raw materials in recent months. Tourist 99 east.2
larly in the 98 The energy and environmental crises 99
100 100 69 100 100 100 100 75 100 100
income and foreign investments decreased9825.5% Moreover, the crisis will probably mean in- The energy crisis has aggravated the difficulties
97 of
and 71.9% respectively between January-February creased unemployment among some MREs, who daily life for the disadvantaged strata and even for the
l = 99,4 2008 and the same IEGperiod in 2009.= 73,1
of Portugal therefore risk lapsingBCI ofinto poverty.
Rumania In Spain, for
= 96 middle strata, particularly due to rising
IEG of Romania water, elec-
= 71,3 BCI
The impact on employment is already being felt. example, the unemployment rate amongst Moroc- tricity, sanitation and public transport bills, which
Thousands of workers – particularly women – have cans – the largest foreign community after European represent around 15% of the Guaranteed Inter-Pro-
been laid off over the last months in the textile and Union nationals – is over 21%, compared to 14% fessional Minimum Wage (SMIG, in French).
clothing industry, and work schedules have been for Spaniards. Increased violence and racist and The environmental crisis, which is a conse-
drastically cut. At the same time, several companies xenophobic acts, which often focus on Maghrebi quence of demographic pressures and a develop-
are beginning to consider salary cuts, postponing
100
foreigners, will probably 100
increase in several Euro- ment model focused on 100
growth and urbanization,
staff promotions and training incentives, as well as pean countries. 91 threatens to exhaust resources and worsen stand-
cutting back on training budgets. Others are aban- The third factor affecting the vulnerable so- ards of living and sanitary conditions. The floods,
doning hiring projects and/or 52 favouring short-term cial layers of the population is inflation, which has downpours and snowfalls which have recently af-
44
employment contracts. increased sharply during the last two years, rising fected several regions, killing over 40 people and
Another form of transferring the crisis to poorer from an average level of under 2% in the 1996-2007 exposing thousands to total indigence and poverty,
households is linked to remittances
0 sent by Moroc- period, to 3.9% in 2008. This 0 rate, however, does not are a good example of these 0 dangers.
can Residents Overseas (MREs, in French), which show the wide-ranging price hike for staple items In conclusion, the impact of the multilateral
99 in 2008 represented over 8% of Moroccan GDP. Ac- during the 95 last two years (see chart). The impact
98 of crisis of neoliberal capitalism places the fulfilment 88
61
100
cording to some72
100 100
studies, these transfers contributed
97
100
these increases 100
will be more damaging for disadvan- 100
of economic 100
and social rights at risk, particularly
98
100
taged social strata, amongst whom basic foodstuffs the right to food, to work, to health and access to
48 48
SW2009 ING v02.indb 120 8/27/09 7:03:14 PM
water and to mobility. Moreover, new population CHART 1. Evolution of the cost of living index (in %)
groups run the risk of falling into poverty. Achieving
Year 1998 - 2007 2008 (11 months)
the Millennium Development Goals in Morocco may
be seriously endangered if the current crisis persists
and worsens. Non-food products + 1.7 +1.4
The Government has taken measures to help some -soft wheat - +22.3
of the sectors which are particularly exposed to the
-flour - +21.8
crisis, such as the textile and clothing, leather, and
automobile equipment sectors. This anti-crisis plan -industrial butter - +25.4
has three dimensions: -cooking oil - +41.4
• With regard to social aspects, the State will take
-sugar - +3
on 100% of employer payments to the National
Fuente: HCP (2009 statistics).
Social Security Fund, and the export companies
benefiting from this measure undertake to re-
tain their personnel.
newed conflicts with unions emerged as a result civil society with data and information in order to
• In the financial area, the Central Guarantee Fund
of the deterioration of economic and social rights raise the awareness of public opinion and mobilize
will provide guarantees in favour of exporting
and the failure of social dialogue, due to the Govern- vulnerable populations. In the long term, the main
companies so that they can have access to
ment’s refusal to satisfy union claims with regard to role of the democratic State must be to promote eco-
exploitation credit, and postpone 2009 expiry
the revaluation of salaries and family subsidies, civil nomic and social rights through the creation of citi-
dates for investment credit.
service promotions, compliance with trade union zen forces, which favour a new economic and social
• In commercial terms, the State will assume 80% freedom and the right to strike, and the adoption of model based on social justice and give priority to the
of the expenses of trade or market diversifica- social protection. satisfaction of basic needs, food autonomy, social
tion missions. To date, there have been several sectoral strikes economy, and the protection of the environment and
In order to limit the impact of higher global pri (education, health, local communities, etc.) and a cultural diversity. n
ces on basic products, the Government has adopted general strike as well. Amongst other particularly
an increase in Compensation Fund amounts to sub- dynamic social movements, it should be mentioned
sidized products, the temporary suspension of taxes the various struggles fostered by the Coordinating
on wheat imports and a slight increase of minimum Committee against the High Cost of Living, as well
hourly wages. as by the National Associations of Unemployed Pro-
Exporters in the textile and clothing sector ben- fessionals. Several collective action strategies have
efited from the social dimension of the anti-crisis been deployed, such as sit-ins, spontaneous popular
plan, which did not prevent them from reducing marches and national mobilization days against pov-
workers’ salaries or cutting working schedules. The erty. Demands make reference to halting the increase
financial and commercial measures had very little of prices, sustaining the Compensations Fund, ap-
effect, due to the reluctance of banks and the lethargy plying a mobile salary scale, bringing public services
of exporting enterprises. Lay-offs and restrictions up to standard, stopping the privatization of water
in working conditions have also affected several and electricity distribution, and claiming the right to
sectors which are barely covered by the plan (such work in the civil service. The Government has sup-
as tourism, export agriculture and construction). pressed some of the demonstrations with a heavy
The supposed social measures had scant effect on hand; a case in point are the events that took place
the rise of the prices of staple items, most of which in the cities of Sefrou and Sidi Ifni. Moreover, certain
are deregulated, while the increase of the minimum difficulties appear to be hindering the activities of
wage barely compensated for the rise in the cost of these movements, such as internal disagreements,
living. This led to a net loss in purchasing power for little activity with regard to vulnerable populations
thousands of workers. It may be concluded that the and the absence of political perspective.
Government still has a greater interest in protecting This does not mean that there are no alternative
capital than in defending the economic and social proposals in order to confront the crisis and promote
rights of the disadvantaged social strata. the economic and social rights of the disadvantaged
social strata. On the basis of the principle that the
Civil society’s response State should guarantee economic and social rights,
In such a situation it is hardly surprising that there social movements propose creating an insurance
should be new outbreaks of worker and social un- fund against unemployment, the defence and de-
rest. Protests are led by the unions, by some civil mocratization of public services, combating mo-
society associations and by coalitions of both, and nopolies and situational income, and establishing a
joined by left-wing politicians and other groups. Re- guaranteed minimum income, as well as supplying
mozambique 81
and because incentives are paid for crops grown for biofuels rather than food. As there is no ongoing
= 68,5 participative
IEG of India = 40,7 dialogue between the Government
BCI of Irak = 88,4 and the people, progress IEG in human
of Iraq = development
0 BC
is almost impossible in the short or medium term. The main challenges facing the country include
strengthening democracy and making public administration fairer and more transparent.
48 47
SW2009 ING v02.indb 122 8/27/09 7:03:20 PM
per year, only a third or a quarter of what is spent on problems in the health care field include the lack In November 2008, the country was reorgan-
the security services. The State has implemented of qualified human resources to provide training in ized into 43 municipal councils (from the 33 that
an incentive scheme to stimulate the production of the sector and the need for greater technical and had existed previously). The scheme to continue
jatropha, a plant that provides the raw material for financial resources. decentralizing the sectoral funds is still in opera-
biofuels, and encourage farmers to switch from food The HIV and AIDS situation is very serious. It is tion, and the same applies to how these funds are
production to this crop even though a market for it estimated to be spreading at a rate of 500 new cases administered. However it has emerged that a large
has not yet been developed. One example of the dire per day9 and now affects some 16.2% of the popula- portion of the budget is not being administered at
consequences of this policy occurred in Mogincual, tion. The UN reports that the incidence is 1.7 times the local level but is still controlled by the central
which suffered a famine in 2008 as a result of low higher among women.10 It has been estimated that Government or the provinces. These resources have
agricultural food production because priority had AIDS will reduce the country’s per capita economic to be decentralized just as the administration has
been given to jatropha.5 The land that has been set growth by 0.1%–0.3% per year. Life expectancy been. For this to take place, people have to be trained
aside for growing this crop, mainly in the provinces would also fall from 37.1 years in 2006 to 35.9 years and the necessary infrastructure, electrical power
of Gaza, Manica, Solafa, Tete and Nampula, is very by 2010.11 grid, telephone network and banking institutions
fertile, and in the years ahead this may mean a re- have to be developed.
duction in food production for family consumption, Other challenges
which will further intensify the problem of hunger. The G-19 countries have also called on the Govern- Conclusion
To make matters worse, specialized enterprises ment to strengthen its capacity to guarantee social While the Government has managed to main-
are planting other kinds of crops for export such as security and improve access to justice. They have tain a policy that is applauded abroad, at home it has
sugar cane. expressed concern about excessive bureaucracy, not maintained ongoing, inclusive and participative
lack of impetus in the fight against poverty and little dialogue with the people, so it is almost impossible
Problems in education and health progress in combating corruption, even though this for there to be progress in human development in
According to UNICEF,6 more than a million children has been identified as the root cause of numerous the short and medium term. Other big obstacles to
are growing up outside the education system, and other ills that are putting a brake on Mozambique’s development are the fact that the legal system is
the average teacher in Mozambique has to cater to development. weak and there is discrimination in relation to party
74 pupils. To improve the education system, enrol- To address income inequality, in 2007 the Gov- allegiances. So the problems remain: democracy has
ment fees should be abolished and there should be ernment set up a fund known as the “Seven Mil- to be strengthened and public administration has to
increased investment in infrastructure and teach- lion Meticals” (the nation’s currency, around USD become fairer and more transparent. n
ing materials, as well as the number of teachers, 264,000) to stimulate rural districts by training
and access to education for young people should people organized in associations to undertake local
be widened. UNICEF stresses that while significant income-generating initiatives. However the fund has
progress has been made in expanding teaching in the been severely criticized for having no clear criteria
country, this has not been accompanied by increased regarding its objectives or how it would be man-
investment in the sector. It is known that around half aged. The district administrations that have been
of primary school teachers have no formal vocational put in charge are not competent in the management
training. of banking or microfinance institutions. In addition,
National health services reach only 30% of the workers in these rural districts are among the low-
people.7 More than 65% of children suffer from vita- est skilled in the country. It has been reported that
min A deficiency. In 2008 the G-19 countries injected fake associations have been set up to receive the
around EUR 308 million into the general budget and money, more than half the debtors cannot be located
warned Mozambique that it would have to step up and there are no guarantees that the loans will be
the fight against malaria (still the deadliest disease), repaid. Some critics claim that the real purpose of
cholera and HIV and AIDS. The programmes to pre- the fund is to maintain the visibility and presence in
vent or combat diseases are very feeble and in any rural districts of the Frelimo party, which has been in
case they are concentrated in the main urban areas power since 1975.
so rural populations suffer more.8 Other outstanding The Government has implemented a medium-
term public sector pay policy in an effort to attract
and retain skilled personnel, particularly in rural
5 Gil, F. “Atraso na assistência alimentar: Tragédia
districts. But in practice professionals with higher
espreita Mogincual.” Available from: <macua.blogs.
com/moambique_para_todos/2009/02/atraso-na- levels of training prefer to seek employment in the
assist%C3%AAncia-alimentar-trag%C3%A9dia-espreita- private sector, where pay levels and working condi-
mogincual.html>. tions are better.
6 UNICEF. “Países Africanos reunidos em Nairobi discutem
abolição de taxas escolares”. 5 April 2006. Available from:
<www.unicef.org/mozambique/media_2877.html>.
7 Machava, J. R. “A situaçao da pobreza en Moçambique:
diferenciaçoes regionais e principais desafios”. Revista 9 National Statistics Institute. “Contendo dados do HIV/SIDA.”
Eletrônica de Geografia, 5(1). 2007. Available from: CD-Rom. 2004.
<cecemca.rc.unesp.br/ojs/index.php/estgeo/article/ 10 See: <www.unaids.org/en/CountryResponses/Countries/
view/542>. mozambique.asp>.
8 Ibid. 11 See: <www.unicef.org/mozambique/overview.html>.
0 NO0 VA NO0 VA
According to experts, Nepal will feel the effects of the global financial crisis on several fronts. Other 42
100 55
100 100 crises, related
100 to the environment,
100 food, energy, finance
100 and politics
100 have been buffeting the society
100 100
97
for a long time. It is imperative to see this reality from a gender perspective, and to analyse the role of
= 99,5 civil
IEG of Italy society in promoting initiatives and programmes to help alleviate the situation of the vulnerable
= 64,5 BC
populations disproportionately affected by the downturn.
100
0 0 0
98
In Nicaragua, the fall in income
88
from exports and remittances is already beginning to make itself felt and is
98
61
100 100 having a tangible effect in terms of higher unemployment
100 100 100and increased100
poverty.
81 In the short term, to limit
100 the 100
98 97
impact of the crisis, the government should increase public sector expenditure and thus stimulate economic
activity and employment, even though these measures alone do not attack the country’s main problems. A major
= 94,5 IEG of Venezuela = 67,7 ICBoverhaul
de Viet Nam = 92,8 IEG of Vietnam = 73,9 BCI o
change of direction and a complete of the current growth model are urgently needed. Agriculture is
very backward and must be revived, and a major effort to recapitalise the country’s human capital is essential.
Nigeria
IEG of = 47,3
83
Deepening plight
NO0 VA 0 0
11
The majority of Nigerians have42been living for a88long time in a situation of economic meltdown.
98
100 100 Corruption100is widespread,
100 the country lacks electricity,
100 education
100 and
81 health are in a deplorable
85 100 100
condition, and the armed fight for the control of oil resources continues to be intense. The global
economic crisis has further deepened
BCI ofthe plight
Kenya = 71of the poor. Experts underscore
IEGthat the country
of Kenya = 59 should BCI
take measures to curtail its dependence on crude oil and address the poor implementation of annual
budgets.
100 100
PALESTINE
15
Since 1948, when they were turned into a refugee population within their own country and the 83
100 100 64 neighbouring
100 Arab States,
100 Palestinians’ living conditions
100 have been
100 grim. Furthermore, since 100 the 100
82 79
99
Israeli military occupation in 1967, colonization and racial discrimination have become common
practices of the occupying power. Both the separation wall, on which construction began in April 2002,
1,3 IEG of Zambia = 56,2 BCI of Cisjordania y Gaza o Palestina = 0 Cisjordania o Palestina S/D (español) BCI of Rep. De
the closure imposed on the Palestinian territories and the last brutal Israeli attack on Gaza of December
2008 have increased segregation, unemployment and economic recession.
For more than 60 years the Palestinian people have 1,129 in 2006. Moreover, GDP was being increas-
been deprived of their basic right to self-deter- ingly driven by government and private consump-
mination and prevented from establishing their tion from remittances and donor aid; investment had
own independent state within which social devel- fallen to extremely low levels, leaving “an inadequate
opment could be realized without major external NO VA
0
productive base for a self-sustaining economy”.1
0 n/d
15
political impediments. Ever since 1948, the year Moreover, the West Bank and Gaza had an ex-
of the Nakba (catastrophe), when more than half panding 100
labour force and, as result of the unpredict-
100 100 100
the Palestinians were expelled from their original ability of the border crossings and checkpoints, the 99
lands, the whole process of their development private sector was shrinking. For this reason, public Economic activity Education
has been shaped by outside forces. The year 1967 sector employment grew by 60%. While the public
BCI of Cisjordania y Gaza o Palestina = 0 Cisjordania o Palestina N/D (inglés)
witnessed an additional complication as the Israeli sector expanded, the economy’s productive capa- Palestinian People in May 2007 indicate that 58%
military forces occupied the rest of Palestine. bility hollowed out, making it increasingly donor of Palestinians live below the poverty line, and
dependent.2 about half of these, 30%, live in extreme poverty.3
Only instability has grown Furthermore, about 9.4% of the average-sized
The establishment of the Palestinian Authority in Behind the wall Palestinian households that are technically above
1994 as a result of the Oslo agreements signed in The Palestinian areas are completely segregated the poverty line (a monthly income of about USD
Washington DC gave it responsibility for the socio- into three major clusters; Palestinians are denied 500–750) are at high risk of falling into poverty if
economic welfare of the Palestinian population in access to Jerusalem. The internal closure regime the current socioeconomic conditions continue.
the areas of the West Bank and Gaza. However, the imposed by the Israeli occupying power over the In terms of the negative income poverty
inability to conclude the peace treaty by 2000 led to West Bank and the erection of the separation trend, the percentage of households below the
the second Palestinian Intifada (rebellion) that re- wall have resulted in deep economic recession poverty line rose from 50% in March 2006 to
sulted in a major deterioration in the socioeconomic and in negative economic growth over the past 60% in August 2007, with intervening peaks of
indicators of the population. nine years. In addition, Israel has withheld tax income poverty of as much as 68% as measured
revenues collected on behalf of the Palestinian in November 2006. Poverty in the Gaza Strip is
Authority. This affected the flow and direction of more pronounced, with 71% of households poor
CHART 1. Demolitions of Israeli and donors’ aid by re-directing it into budget support. in August 2007, up from 52% in March 2006. It is
Palestinian Homes By preventing any development in Area C (mainly most prevalent and severe in the governorates of
regions to the East and South), Israel stopped Khan Younis and North Gaza. In the West Bank,
donors from directing their aid to nearly 60% of the share of poor households over the same pe-
the areas supposedly under Palestinian Authority riod appears to have remained essentially stable,
20,000 25% 250
18,147 jurisdiction. This restriction should be23challenged moving from 49% to 51%; 227 but these figures hide
18,000
by donors, as it is leaving large areas in dire need regular peaks of income poverty to over 60%4 and
16,000 20% 200
of assistance. some governorates in the northern West Bank,
14,000 such as Toubas, Salfit, Tulkarem and Qalqilya,
12,000 Increasing
15% poverty show poverty 150rates similar to the Gaza Strip.
10,000 More Palestinians have become poor and more Persistent high poverty rates force many
8,000 are now10%
at risk of falling into poverty. Surveys con- households100 to rely on coping mechanisms such
ducted for the United 7.3 Nations Development Pro- as drawing on other resources than the main
6,000
gramme (UNDP)/Programme of Assistance to the household income. However, underscoring the
4,000 5% 50
severity of poverty in the occupied Palestinian
2,000
0 territory, nearly 40% of the population no0 longer
0 * There are
0% no available data on BCI. 0
Israeli Palestinian Israelis
1 World Bank. “Two Years Palestinians
After London: Restarting Palestinian IsraelisPalestinian Territory
3 UNDP. “Poverty in the Occupied Palestinians
2007”.
homes homes Economic Recovery. Economic Monitoring Report to the Development Times, Issue No. 1, July 2007. Available from:
Ad Hoc Liaison Committee”. 24 September 2007. Available <www.undp.ps/en/newsroom/publications/pdf/other/dtpov.
from: <siteresources.worldbank.org/INTWESTBANKGAZA/ pdf>.
Resources/AHLCMainReportfinalSept18&cover.pdf>. 4 See: “The Palestinian Poverty Monitor” and the monthly
Source: <ifamericansknew.org>
Homes unemployment Illegal Settlements
2 Ibid. “Pulse”. Available from: <www.neareastconsulting.com>.
Demolished rates
Informes nacionales 130 Social Watch
4,000 50 5% 50
2,000
0 0 0
0 0 0% 0
stinians Israeli
Israelis Palestinian
Palestinians Israelis Palestinians Israelis Palestinians
homes homes
nt Homes
Illegal Settlements unemployment Illegal Settlements
Demolished rates
5 UNDP (2007), op. cit.
6 World Bank (2007), op. cit. 7 Ibid.
88
Despite the serious setbacks 98
expected as a result of97 the international financial
36,2 crisis, the outlook for 100
100 100 81 Paraguay 85 could
100 be worse.
100 The country has a low level100 of external 100
debt (due in part to the difficulty
100 of 100
98,4
previous governments in implementing earlier loans), a respectable level of international reserves, and
a = 71 an economy
IEG of Kenya = 59 largely based on exporting agricultural
BCI of Líbano = 95,6 commodities. A small IEG country such =as46,9
of Lebanon Paraguay, BCI
which produces food and clean energy and has plenty of fresh water and fertile land, has comparative
advantages that can and should be strengthened.
19.4% to 22.8%—the intermediate target for 2008 would be the best use of limited public resources at a
time when so many sectors need assistance.
aza o Palestina = 0 Cisjordania o Palestina S/D (español) BCI of Rep. Dem. del Congo = 76,3 IEG of 29
4 ABC Newspaper, Rep. Dem.2008,
December del 20
Congo
January=2009.
45.1
1 UNDP/UNICEF/UNFPA. “Investing in People programme.”
Study on the impact of the crisis on poverty indices in 2 Última Hora, 17 January 2009. 5 ABC Newspaper, 6 October 2008; Última Hora, 18 October
Paraguay. 3 Ibid. 2008
100
0 6,2 0 0
CHART 1. Lima: Economically Active Population, employed occupied and real wages,
1970-2006 (constant December 2001)
6,000
74
73 75
5,600
5,200 72 76
4,800 71
77
4,400
70
4,000
3,600
78
Real wages
3,200
2,800
82 83 87
2,400 81 86
79 84
2,000 80 85
1,600
99 98
00 01 03
1,200 92 95 06
94
88 90 02 97 04
05
800 91 93 96
89
400
200 300 400 400 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700
philippines
0 0 0
99
In the Philippines, economic
100
globalization resulted in the expansion of informal labour, the contraction
47 99 50
100 100 of local industries and heavy dependence on exports
100 100 100 and remittances
100 from abroad while poverty 100
99 97
continued to rise due to inequitable distribution of the gains. Today, the global crisis is slowing down
ia = 96,9 remittances
IEG of Malaysia = 58,3 while factories are BCI
closing. As= usual,
of Malta 99,5 it is the poor and the marginalized who pay the
IEG of Malta = 58,2
heaviest cost. A stimulus package that is rights-based, pro-poor and sustainable is urgently needed.
100 100
95
poland
0 0
N
Even before the world financial crisis started to take its toll causing devaluation,44increased unemployment
94 97
and reduced income, investments
100 and exports, Poland100had already experienced
100 rising wage and income
100 100
99
inequality during its transition to a market economy. As the Government lacks transparency in its operations,
there is no opportunity for publicBCIdebate to discuss the measures taken to cope with
of México = 95,2
the crisis, such as the use
IEG of Mexico = 60,5 BCI
of loans from international financial institutions. At the same time, Polish society’s patriarchal mentality and
lack of social protection policies make women the first victims of the crisis.
0 0
Prior to the world financial crisis, Poland was an
exemplary case of a successful neoliberal transi-
100 99 100
tion into the market economy. According to a recent 100 100 100 69 100 100
report from the Organisation for Economic Coopera- Births attended by 96
tion and Development (OECD), Poland was second skilled health personnel Survival up to 5 Economic activity Education
lowest among 30 member states in child poverty BCI of Polonia = 99,1 IEG of Poland = 70 BCI of
and fourth in income inequality, with the richest 10% of those unemployed are entitled to an allowance Furthermore, Poland has started to be affect-
of the population gaining a bigger share of market and eligible for public health care.2 The rest are on ed by a sudden halt in capital inflow, followed by
income and paying a lower share of the tax burden their own. increasing risk aversion among investors and the
than in any other OECD state except Turkey.1 Privati- In addition, the statistical average does not crowding-out effect, as competition grows among
zations have affected most acutely the social sectors reflect the hardships in towns where one significant the strongest EU economies for public debt financ-
(pensions, health care and education), while state employer, from whom100 the majority of households ing.4 The situation has100
been further exacerbated by
support has been extended to businesses (e.g., the derive their livelihoods, is closing due to plum- the foreign exchange crisis: the weakening Zloty had
Deputy Prime Minister has announced a plan to sup- meting orders or opportunistic manoeuvres: for a damaging impact on companies that entered into
port companies that had engaged in risky currency example, some companies 49 are reportedly blaming currency options contracts as well as on persons
options markets) but not to citizens. the financial crisis in order to lay off workers and 37
repaying foreign currency mortgages.
This gloomy picture, however, is getting even cut costs. The supply of credit has been strongly limited
0 0
darker as the crisis unfolds. The initial impact was a The effects of the financial crisis are most se- in all segments of the credit market, and more than
drastic devaluation of the Zloty (the national curren- verely felt by those who do not have any savings, 80% of the banks have introduced far more rig-
cy) – by approximately 25-30% within six months means to produce42their own food or rural 87 family orous criteria for extending credit of any type. In 100
100 100 100 81 83 100 100
in relation to the euro and the Swiss franc – and a ties (despite being on the verge of extinction under particular, they have increased the requirements
plunge in the Warsaw stock exchange. While this pressure from large scale agriculture, smallholder concerning the level of security and, in the case
initially affected primarily Polish financial markets farms still survive in Poland). However, the new of mortgage loans, the amount of the borrowers’
and companies involved in currency options, it has BCI ofare
middle class families Uganda
also in= a59,2
tight spot, es- own contributions.IEG Also,
of Uganda
almost= every
67,2 bank has BCI o
now begun to affect the national political debate, pecially young couples with children who have raised its credit margins – from 1-2% in mid-2008 Unido
particularly with the more recent decrease in na- incurred huge mortgages with adjustable interest to 7-8% in the first quarter of 2009. 5 The cost
tional revenues and decline in investments and ex- rates, or in foreign currencies, to purchase their of money in the interbank market has increased
ports. Further, contrary to initial (rather optimistic) dwellings. substantially due to an unprecedented decline in
scenarios, the financial crisis is having a significant 100 96
mutual trust between100financial institutions. The
impact on access to finance for both Polish busi- Access to finance and long-term growth Polish Financial Supervision Commission (FSC)
nesses and consumers. perspectives has sharpened liquidity ratios and reporting obli-
As a result of the so-called “credit crunch” (a sud- 56
gations.6 The banks’ assessment of the prospects
Unemployment den reduction of access to credit and an increase in
Recent labour market surveys indicate that unem- its costs), the prospects for the country’s economic 4 Rybiński, K. Finansowanie rozwoju Polski w kryzysie.
ployment has increased from 9% to 12% since the growth have declined substantially:
0 from a reported 0
Ernest & Young, February 2009.
beginning of the crisis, including in white-collar posi- 6.5% in 2007 and 5.5% in 2008 to a prediction for 5 All data based on report by the National Bank of Poland.
tions. However, the actual numbers of people without 2009 ranging
99 between 2.5% and 3.7%.3 100 Situation of the credit market in the first quarter of 2009, 94
100 100 64
100 January, 100 100
any means of livelihood are higher, and only 15.5% Warsaw, 2009.
96
6 In July 2008, the Polish Financial Supervision Authority
2 National Statistical Office. “Registered Unemployment, first imposed an obligation on banks to maintain and report
1 Organisation for Economic Cooperation and Development. ICB<www.stat.gov.pl/cps/rde/xbcr/gus/
quarter 2008.” See: de Belgica = 98,3 IEG liquidity
their quantity de Belgica = 72,2
standards, thereby improving banks’ ICB de Co
Growing Unequal. Income Distribution and Poverty in OED PUBL_PDL_bezrobocie_rejestrowane_I-III_kw_2008.pdf>. liquidity and helping to contain the “confidence crisis”. See:
Countries. Paris: OECD, 2006. Available from: <www.oecd. 3 Estimates reported by web portal Bankier.pl. Available from: <www.knf.gov.pl/sektor_bankowy/Decyzje_stanowiska_
org/dataoecd/48/56/41494435.pdf>. <euro.bankier.pl/news/article.html?article_id=1886336>. nadzoru/uchwaly/index.html>.
portugal
0
NO0 VA 0
44
The economic crisis that Portugal has been facing since at least 2001, reinforced by the current international
97
63
100 100 financial and100 economic 100
crisis, has brought increasing unemployment
100 and poverty.
100 72 The latter, however,
100 is 100
99 98
not just an effect of the current situation, but remains a structural condition. Almost half the population,
including members of the middle class who lost their jobs and/or houses, experienced poverty between BCI of
o = 95,2 IEG of Mexico = 60,5 BCI of Moldavia = 0 IEG of Moldova = 73,9
1995 and 2000. Climate change is also affecting the economy and the well being of citizens. New
approaches and specific measures are needed to combat poverty and tackle environmental challenges.
* “Children reaching…” estimated following procedure “1” in cally and become dependent on the help of third
p. 209. • Integrating economic policies into the fight
100 parties. 94
The President of the European Anti99 Pov- 54 99
100 100 64 100 100 against poverty, namely in terms of employ-
1 See: <www.bportugal.pt/publish/bolecon/primavera_09/
96 erty Network has said that, of the 2 million100
poor in 100
98
100 100
econ_port_primavera09_p.pdf>. ment opportunities and institutionalization
2 National Statistics Institute (INE). “Dia Internacional de
= 98,3 ErradicaçãoIEG de Belgica
da Pobreza.” = 72,2
Destaque, 15 October 2007. ICB de Costa
3 See: <www.pnai.pt/>. Rica = 93,5 IEG de Costa Rica = 66,8
5 See Rede Europeia Anti Pobreza at: <www.reapn.org/>.
ICB d
Available from: <www.ine.pt/ngt_server/attachfileu. 4 Costa, A., Baptista, I., Perista P. and Carrilho, P. Um olhar
jsp?look_parentBoui=8046108&att_display=n&att_ sobre a pobreza – vulnerabilidades e exclusão social no 6 Costa, A., Baptista, I., Perista P. and Carrilho, P., Op. Cit.
download=y>. Portugal contemporâneo. Lisbon: Gradiva. 2008. 7 Ibid.
romania 84
Dire prospects
52
21
0 0 0
l = 99,4 IEG of Portugal = 73,1 BCI of Rumania = 96 IEG of Romania = 71,3 BCI
State budget, remittances and – with 8.7% less in January than the same period in the Government also decided to extend the period
unemployment 2008 – and is likely to worsen. The largest decrease of unemployment benefits by three months, while
Romania is dependent on falling EU markets. Exports was in taxes on profits (-30.7%). Taxes on earn- employers and employees will be exempted for three
have decreased by 25% and capital flows are revers- ings and salaries brought in almost 20% more than months from paying social insurance contributions
ing direction. January 2009 alone saw repatriations the same period in 2008. Funds collected through during temporary suspension of activities.3
worth EUR 539 million. The 100 decrease in exports has VAT, which remains the100main source for the budget, According to data 100
from the National Bank of Ro-
led to rising unemployment, bankruptcies and a con- dropped 8% and are likely to91 drop further. mania, citizens working abroad sent home EUR 8.7
traction in companies’ activities. Some 500,000 peo- In response, new and higher taxes as well as in- billion in 2008 (up from 7 billion in 2007).4 This was
ple (5.7%) were unemployed in 52 April 2009, almost creases in social contributions have been proposed. almost as much as total foreign direct investment
44
half of them women, compared to 3.9% in April 2008. In March 2009, the Government announced an in- (a record EUR 9 billion) and represents 5% of GNI.5
In May 2009, the European Commission estimated crease in contributions to health insurance funds A study released by the World Bank ranks Romania
0 0 0
that unemployment would rise to 8%. Each percent- of around 1% for both employees and employers, 8th among developing countries in terms of migrant
age point means an additional 100,000 unemployed. explaining that higher unemployment would lead remittances.6However, at the beginning of 2009, the
99 Although the average net monthly salary was EUR to fewer95 98
contributions. Previously, the mandatory level of remittances
61 dropped 10% compared with the
88
100 100 72 100 100 100 100 100 100
327 in March 2009, an increase of 17.6% compared 97 to contribution had been 5.2% for employees and 5.5% same period in 2008. Italy and Spain, the98 two coun-
March 2008 according to the National Statistics Insti- for employers. Business representatives believe that tries that are the source of 90% of total remittances,
tute, this is less impressive than in the first months of this measure will further increase unemployment both face serious economic problems and high rates
s 2008, when there were IEG of Usaof=more
raises 73,8than 30%.1 It is since companiesBCIwill
of Venezuela
continue to =cut94,5
costs and oper- of unemployment.IEG ofSome
Venezuela
800,000= 67,7
Romanians were ICB d
érica = 98.1 expected that the crisis will cause the increases to slow ate with fewer employees.
further and even reverse. The Government has an- In February 2009, the Government announced 3 Press conference of the Prime-Minister of Romania, 5
nounced that budgetary salaries will be frozen, which that companies hiring unemployed persons, sole Februray 2009. Available frrom: <www.gov.ro/conferinta-
de-presa-sustinuta-de-premierul-emil-boc-la-finalul-
means less purchasing power. In a national television supporters of families or persons over 50 years
sedintei-de-guvern__l1a104257.html>. See also: “Guvernul
interview in April 2009, the100Prime Minister, Emil Bloc, old would receive subsidies
100 98
for a period of up to 12 a prelungit ajutorul de şomaj
100 cu trei luni şi acordc scutire
recognized that there was a real danger that the Gov- months in order to cover half the salaries of their la CAS dacă firma îşi „îngheaţă” temporar activitatea”, in
ernment would not be able to pay state salaries and new employees. The subsidies would also support Gandul, 19 March 2009, available from <www.gandul.info/
actualitatea/guvernul-a-prelungit-ajutorul-de-somaj-cu-
pensions. In addition, as traditional
48
export markets for employment of Roma and of those who, because of 48
trei-luni-si-acorda-scutire-la-cas-daca-firma-isi-ingheata-
food producers have contracted, Romanian farmers lack of education or skills, do not have a fair chance in temporar-activitatea.html?3927;4061408>.
also find themselves threatened at home by subsidized the labour market. For people unemployed for more 4 “Banii trimişi de căpşunari, mai puţini cu 1,5 milioane euro
agricultural and food product0 imports from other EU than two years, the subsidies
0 would cover 75% of pe zi” in Gandul, 6 April 2009. 0
Available from: <www.gandul.
member states looking to reorient their exports. their salary for 24 months. The scheme, worth a total info/economia/banii-trimisi-de-capsunari-mai-putini-cu-1-5-
99 Budgetary revenues began to go down in the last of EUR 99133 million, is 85% funded by the European
100 milioane-euro-pe-zi.html?3936;4160396>.
54
100 72 directe au incheiat 2008 in scadere” 67
quarter of1002008, a trend that has continued 98 in 100
2009 100
Commission. 100
Of this, EUR 29 million is allocated 100
5 “Investitiile straine
97
100 in 100
Standard, 13 February 2009. Available from: <standard.
for employment in the rural areas.2 In March 2009,
money.ro/articol_80733/investitiile_straine_directe_au_
= 93,5 IEG de Costa
* “Children reaching…” Rica
estimated = 66,8
following procedure “1” in ICB de Francia = 98,8 IEG de Francia = 72
incheiat_2008_in_scadere.html>. ICB de
p. 209. 2 Fonduri Structurale.ro. Available from: <www.fonduri- 6 People Move, a blog about migration. Available from:
1 National Statistics Institute. Available from: <www.insse.ro/ structurale.ro/detaliu.aspx?t=Stiri&eID=4128&AspxAutoDet <peoplemove.worldbank.org/en/content/remittance-flows-
cms/rw/pages/index.ro.do>. ectCookieSupport=1>. to-developing-countries>.
Senegal
66
0 0 0 6
As the most food-import dependent country20 in West Africa, Senegal faces several challenges as a consequence
34 43
98 90 49
100 100 81 of the multiple global crises which affect the economy, finance, environment, energy and, of course, food.
100 100 100 100 100 All 100
97
of these challenges result in the decline of the quality of life of Senegal’s citizens – particularly amongst the more
vulnerable sectors – because of their repercussions on the country’s scant production, diminished imports and
m = 92,8 IEG of Vietnam = 73,9 BCI of Yemen = 58,7 IEG of Yemen = 30 BCI of Za
the high price of basic products. The Government’s plans do not provide an adequate response to the country’s
needs. Civil society proposes returning to traditional agriculture, duly encouraged and supported by the State.
serbia
64
0 0 0
96 29 Government indecisiveness and lack of a clear strategy and vision to counter the negative effects of
48 86 57
the crisis 68
100 100 84 have
100 fuelled pessimism
100 and discontent among 100 the population,
100
92
which demands actions 100– not 100
just words – to combat corruption and crime and to establish the rule of law. The economic situation
cos = 81,1 IEG of Morocco = 44,8
has been deteriorating, endangering citizens’ economic and social rights. Government revenues have
BCI of Mozambique = 66,1 IEG of Mozambique = 64,4 BCI of M
declined owing to large-scale privatizations since 2003. Pressured both by the IMF and by public Birmania
discontent, politicians draft plans that are almost immediately discarded.
slovakia
62
NO0 VA
0,0 0 0
19
90 Slovakia successfully reformed its economy to enter the EU. Growth is slowing down, however, and the car industry 35
94 57
100 100 – the country’s industrial pride and joy – is already reducing
100 100 100 production.100To tackle the crisis the Government
74 100 has 100
taken various measures, many designed to boost employment and regulate the market. For their part, NGOs must
immediately
IEG of Burma =0 address their lack of preparedness
BCI of Nepal =for the crisis. Discrimination againstIEG
58,4 Roma and =women
of Nepal 51,2 persists, as ICB de
= 73.2 does the authoritarian way in which the Government tries to ignore its political opponents. Overseas development
assistance (ODA) has been legally institutionalized and is growing; nevertheless it still remains below EU standards.
slovenia
62
NO0 VA
0,0 0 0
19
The effects of the global crisis are beginning to be felt in this export-oriented country. They translate
90 35
94 57
100 100 into rising food and energy prices, unemployment and
100 100 100 poverty, and100 require a systemic response.
74 100This 100
creates an opportunity to focus on human rights and environmental concerns, as well as on civil society
issues that have been gaining momentum
IEG of Burma = 0
nationally. Slovenians therefore need
BCI of Nepal = 58,4
to demand more from
IEG of Nepal = 51,2 ICB de
a = 73.2 their Government than a mere boosting of the market.
42 43
somalia 83
A defenceless country 23
0 0 0
9
94
The calamitous conditions in this35war-torn country are being exacerbated by 47
the global systemic crisis. 100
57
100 100 With74the means
100 of production,
100 finance and the81 provision
100 of basic
100services in the hands of 77 a few,
100 the 100
cost of living has soared. Currency devaluation has been coupled with hyper-inflation and increased
58,4 IEG of Nepalfood
= 51,2prices; unaffordable energy is further limiting the delivery of services
ICB de Nigeria = 66,3 IEGsuch as education,
of Niger = 44,4 health BCI of
and sanitation. Moreover environmental degradation is reducing the availability of water, grazing and
bio-diversity, thus negatively affecting livelihoods.
such as bananas and watermelons. However, many supplying supplementary feeding to 44,000 children In Somaliland, comprising
15 the north-western
under five years old along the 30 km Mogadishu-Afgoye territories, the water crisis is even worse. Entire
100 100
corridor and in central and southern Somalia.100
3
99
100
* “Children reaching…” estimated following procedure “2” in 4 Abdinur, M.H. “Somalis rally against rising food prices,
p. 209. inflation.” Agence France Presse (AFP), 6 May 2008.
** There are no available data on GEI. 2 Ibid.
BCI of Cisjordania y Gaza o Palestina = 0 5 IRINCisjordania o Palestina
(Integrated Regional N/D
Information (inglés)
Networks). “Somalia:
1 FSAU (Food Security Analysis Unit – Somalia). “2008/09 Post- 3 UNICEF. “UNICEF feeds 44,000 children in Somalia.” Press Severe food and water crisis in Gedo”. UN Office for the
Deyr Analysis.” Technical Series Report No. V, 17. 2009. Available Centre, Nairobi, Kenya, 14 May 2008. Available at: <www. Coordination of Humanitarian Affairs, 5 April 2006. Available
at: <www.fsausomali.org/fileadmin/uploads/1481.pdf>. unicef.org/infobycountry/media_43930.html>. at: <www.irinnews.org/Report.aspx?ReportId=58667>.
More than 60,000 Somalis crossed the border into that boats carry abroad on average the equivalent
Kenya in January 2009 alone, and the Dhadhab in charcoal of 10,000 trees. This trade in Somalia’s
camps in north-eastern Kenya are estimated to hold ‘black gold’ causes an environmental disaster. As
230,000 refugees. Some 850,000 fled Mogadishu’s traders demand more and more charcoal, the loss
violence in 2007/2008 while 400,000 of those in- of trees leads to scarcity of water, lower rainfalls and
ternally displaced, previously in Mogadishu’s IDP extremely high evaporation.
camps, fled to the outskirts of the city seeking safety. Unfortunately, droughts are often followed by
Another 50,000 persons were displaced as a result devastating flooding of the rivers that flow from the
of the 2008 border dispute between Somaliland and Ethiopian highlands. This has become a recurrent
Puntland; they remain in camps in Ethiopia, Somali- cycle.
land and Puntland.
Unfortunately, the assistance provided by both Recommendations
international and local NGOs has been hindered by Civil society groups, from community-based organi-
the seemingly endless insecurity, especially in the zations to national forums, are advocating for the
southern and central regions. Two World Food Pro- causes of the disasters to be addressed. Govern-
gramme Somalia staff members were deliberately ment ministries and empowered bodies are badly
targeted and murdered in January 2009, while 34 aid needed to combat deforestation. Action against en-
workers were killed in 2008; other aid workers have vironmental abuse will limit its adverse effects on
been kidnapped and remain in captivity. There con- rainfall, the soil’s capacity to hold water, the local
tinue to be roadblocks set up at strategic positions to climate, habitats for animal species and bio-diversity
hijack supplies, and piracy against vessels carrying in general. n
humanitarian goods.
Fuel crisis
Somalia is a net fuel importer. Any fluctuation in oil
prices therefore directly affects the country. Fuel
nearly tripled in price during one two-week period in
late 2007 and early 2008, from USD 0.40 per litre to
USD 1.10. In some cases, the cost of transportation
has quadrupled, leaving many people cut off. Other
goods such as imported foodstuffs and medicines,
0
9 0 0
0 0 0
98
Although its financial system has not yet been severely affected by the global economic crisis, the
56 98
63 60
100 100 decrease in100exports, remittances
100 73 and aid will imperil100Tanzania’s progress
100 in eradicating poverty.100Basic 100
98 99
services, such as the provision of clean water, sanitation and health, must be extended, as well as credit
ay = 95,3
and instruction to farmers. For all
IEG of Paraguay = 66,8
this, it is essential that aid is not discontinued.IEG of Peru = 69,7
BCI of Perú = 87,8 B
thailand 77
65
0 0 0
The Government has issued a prompt response to the crisis under the usual shape of stimulus packages.
98 97
63 60 64
100 100 However, 100 a more sustainable
100 vision becomes mandatory:
100 one100that brings into the solution 100 the
99 99
environmental and food security concerns the country and the world are currently facing. If change
= 87,8
is to=happen,
IEG of Peru 69,7 it will have to come from
BCI ofan invigorated
Filipinas = 78,1 social movement, backed by solid =support
IEG of Philippines 75,6 from
academics and entrepreneurs.
Nantiya Tangwisutijit
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Social Agenda Working Group
100 100 100
BCI = 96* 91 GEI = 70
Children reaching Empowerment
5th grade
Initially, people in Thailand watched the subprime
51
mortgage crisis unfold in the United States with little
41
idea of what it meant, much less how it could affect
them. Their first clue came in November 2008 when
0 0 0
exports, which had enjoyed double-digit annual
growth during the past decade, were suddenly down
88 97 99
100
20% compared
100
to November 2007. Next, as employ- 72
84 81 100 100 100 100 100
ers moved quickly to minimize costs, workers took to Births attended by 98
the streets in protest of wage and benefits cuts. Then skilled health personnel Survival up to 5 Economic activity Education
100 98 100
uganda
0 0
that Uganda is at risk due to borrowing for investment in 2007 (see Chart 1). The World Bank notes that the National Development Plan.9
in the stock market.4 The Central Bank has warned that, low-income countries in sub-Saharan Africa have Uganda’s population in 2008 was 29.6 million,
0 0
with diminished earnings from exports and tourism, come under pressure owing to the impact of lower 49% of which was under 15 years old. The population
the country’s economic growth will now be in the range commodity prices.8 distribution is 85.1% rural and 14.9% urban. The to-
of 5% or 6% rather than the 8% previously projected.5 100 tal fertility rate is 94
646.7 births per woman, and the popu-
99
The Finance Minister has reported that while Outlook
100 for achieving the MDGs cloudy
100 100
lation growth rate continues at 3.2%. It is notable
96
100
that
100
Uganda is not “directly exposed” to risk, the eco- According to the IMF World Economic Outlook report the percentage of people living below the poverty line
nomic downturn could lead to a reduction of finan- 2008, a declineICBin world growth= of
de Belgica one percentage
98,3 was reduced IEGfrom 38.8% to
de Belgica = 31.1%
72,2 between Uganda ICB de Co
cial inflows from outside investments, tourism, point would lead to a 0.5 percentage point drop in National Household Surveys (UNHS) 2002/03 and
Africa’s gross domestic product (GDP). The report UNHS 2005/06, a reduction by 1.4 million persons
anticipated the possibly serious effects of the global in absolute terms.10 However, a significant number
1 The World Bank (2009). Available from: <web.worldbank.
org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/O,,Conten
financial crisis on Africa in terms of trade, foreign di- will still face hardships in coping with the effects of
tMDK:21990236~piPK:146830~theSitePK:258644,00.html>. rect investment (FDI) and aid resources. It also noted the global financial crisis. The share of agriculture in
2 te Velde, D.W. (2008). “The Global Financial Crisis and that while the correlation between African GDP and the total GDP has continued to decrease and stood at
Developing Countries: Which countries are at risk and world GDP between 1980 and 1999 had been 0.5, it 21% in 2007. This means more strategies, including
what can be done?” London: Overseas Development was only 0.2 between 2000 and 2007. Meanwhile, modernization, are needed to improve agricultural
Institute (ODI). Available at <www.odi.org.uk/resources/
the UNCTAD World Investment Report 2008 showed production and the incomes of the rural population
download/2462.pdf>.
FDI inflows to Uganda for the years 2004, 2005, 2006 in order to reduce poverty.
3 Gu, Z and Wang, X. “UN Commission discusses steps
to mitigate negative impact of global financial crisis on
and 2007 to be USD 295 million, USD 380 million, The net enrolment ratio in primary education
social development.” China View online. 6 February 2009. USD 400 million and USD 368 million. was 84% in 2005/06; and literacy rates of 15-24 year
Available at: <news.xinhuanet.com/english/2009-02/06/ olds increased from 80% to 84%. Although the pro-
content_10770873.htm>. vision of universal primary education and universal
4 IMF (2009). Impact of the Global Financial Crisis on Sub- 6 Republic of Uganda. Budget Speech 2008/9 Financial Year.
Saharan Africa. Washington, DC: IMF. Available from: <www. Kampala: Ministry of Finance, Planning and Economic
imf.org/External/pubs/ft/books/2009/afrglobfin/ssaglobalfin. Development (MFPED). 9 Ministry of Finance, Planning and Economic Development.
pdf>. 7 IMF. Op Cit. Poverty Eradication Action Plan (2004/5-2007/8). Kampala:
5 Reuters. “The Financial Crisis.” 23 October 2008. Available 8 World Bank. “Crisis Takes a Mounting Toll on Developing MFPED.
from: <customers.reuters.com/community/stayinformed/ Countries.” 13 March 2009. See: <go.worldbank.org/ 10 2008 Statistical Abstract. Kampala: Uganda Bureau of
middleeastafrica/MEA_23.10.08_Newsletter.pdf>. YGK6U1EFI0>. Statistics (UBOS). See: <www.ubos.org>.
budget support and projects, is expected to make efforts from civil society – supported by adequate UNCTAD (United Nations Conference on Trade and Development)
(2008). World Investment Report 2008: Transnational
up 30% of the national budget 2008/09. The Gov- resources from the Government, development part-
Corporations and the Infrastructure Challenge. Geneva:
ernment should ensure a reduction in spending on ners and communities – crystallize into a solid con- UNCTAD.
tribution for coping with the crisis. n World Bank (2009). “Crisis Takes a Mounting Toll on Developing
11 See: <www.finance.go.ug/docs/BudgetSpeechFY202008_09 Countries.” 13 March. See: <http://go.worldbank.org/
_12thJune2008_Final.pdf>. YGK6U1EFI0>.
0 0 0
99
The unemployment crisis underscores the reality 100 of a system that does not recognize or guarantee 99
100
100 100 69 essential social or economic rights. Since December
100 100 100 2007, the number
100 69of unemployed has risen 100 to 100
96 98
13.1 million – 5.6 million more than at the start of the recession. Movements for human rights, green
a = 99,1 jobs,
IEG of Poland fair trade, healthcare andBCI
= 70 housing are advancing
of Portugal = 99,4 proposals and stepping
IEG ofup demands
Portugal for real and
= 73,1 BCI
structural change. The U.S. cannot afford to squander this opportunity for real change.
87 100 99 95
100
The global economic crisis has re-branded the100
100 81
host 100 100 100 72 100 100
83
of interconnected crises – housing, food, climate, Births attended by 97
inequality and accountability – which have sim- skilled health personnel Survival up to 5 Economic activity Education
mered below the radar in the U.S. and worldwide.
a = 59,2 IEG of Uganda = 67,2 BCI of Estados IEG of Usa = 73,8 BCI of V
As Americans come to grips with the deep, systemic gages that now far exceed the value of their house. ver, these figures understate the true picture, as the
Unidos de América = 98.1
and global nature of the crisis, the world looks to the The equity of banks and other institutions holding official unemployment rate only includes those who
U.S. for quick and definitive action to stem the crises mortgages and related securities was also greatly have actively sought jobs in the last four weeks. This
it helped to create. reduced or eliminated. This scenario was driven by definition excludes discouraged workers7 and does
Blind loyalty to the “free” market as the best arbi- a generation of government policy that severely un- not reflect those who are under-employed and unable
ter of social, environmental100and economic matters has dermined the regulatory100and oversight infrastructure to generate sufficient income
100 to meet basic needs.
created a “perfect storm”1 of failing financial institu- of the economy and financial88markets. Minorities have been disproportionally affected
tions, weak democratic infrastructure, and a safety net These dynamics have intensified an already acute by declining employment prospects. As of March
woefully inadequate to the scope 56 of human suffering national crisis in homelessness and affordable hous- 2009, unemployment among 48 blacks, Hispanic and
and displacement. The effect of lost homes, destabi- ing. Homelessness has increased, largely due to a rise white populations increased by 4.4%, 5.2% and
lized communities and economic vulnerability result- in foreclosures exacerbated by job losses, increasing 3.5%, respectively, reflecting longstanding trends in
0
ing from under-regulated and unscrupulous finance food and other costs which0 undermine people’s ability 0
inequality, particularly in the areas of education, em-
schemes continues to unfold. Millions of Americans to afford housing. An October 2008, 12-state survey ployment and access to justice. As of June 30, 2009
100 displaced by the housing
64 and employment crisis are revealed94 that a growing number of families 99
with chil- these increases were
54 reflected in national unemploy- 99
100 100 100 100 100 100 100 100
joining their long invisible counterparts at home96 and dren were becoming homeless.2 In the period from ment rates that stood at 14.7%, 12.2% and 98 7.8%.
8
abroad who have lived in the eye of this storm for June 2007 to the same month in 2008 the number of The unemployment crisis underscores the
= 98,3 decades. ThisIEG provides a rare=opportunity
de Belgica 72,2 to chart a requests forICBshelter doubled.
de Costa
3
RicaIn =March
93,5 2009, it was reality ofIEG
a system that does
de Costa Rica not recognize or guar-
= 66,8 ICB d
course for a new era of leadership and partnership for reported that one in every nine U.S. mortgage-holders antee essential social or economic rights. Because
real change, development, sustainability and human was behind on home loan payments or in some stage access to education, food, healthcare and housing
rights at home and throughout the world. of foreclosure at the end of 2008, as mounting job are generally a function of one’s access to a job,
losses exacerbated the housing crisis.4 More than 2.3 being unemployed has tremendous repercussions
WANTED: The right to a place to call home million homes were seized during 2008, an increase of on an individual or family’s ability to access basic
As the U.S. housing bubble burst, it had a domino 81% from 2007 and up 225% from 2006.5 necessities. The U.S. has the second lowest unem-
effect on the stock market – the largest repositories ployment benefits among OECD countries; almost
of wealth for individuals in the country. The decline in WANTED: The right to a decent job two-thirds of these offer double or more unemploy-
real estate values wiped out or significantly reduced Since December 2007, the estimated number of un- ment benefits – plus social assistance – than does
the equity of large numbers of individual homeown- employed people has risen to 13.1 million – 5.6 mil- the U.S.9
ers and institutional real estate holders. For example, lion more than at the start of the recession.6 Moreo-
a family that purchased a home for USD 189,000 in light at end of tunnel.” 3 April 2009. Available from: <www.
epi.org/publications/entry/jobspicture20090403/>.
2006 saw its value decline by 26% to 139,000 in 2 “Homeless numbers alarming”, USA Today, 22 October 2008.
2008. The decline in housing prices has meant that 7 Discouraged workers are those who, while willing and able
3 Ibid. to engage in a job, are not seeking work because they believe
many of those fortunate enough to own homes have
4 S. Scholtes, “US home loan arrears affect one in nine.” there are no suitable available jobs. See : <stats.oecd.org/
lost all or most of their equity or are trapped in mort- 6 March 2009. Available from: <www.ft.com/cms/ glossary/detail.asp?ID=645>.
s/0/61598348-09e0-11de-add8-0000779fd2ac.html>. 8 Austin, Algernon. "Unequal Employment: Racial Disparities
1 A perfect storm refers to a critical or disastrous situation 5 S. McNulty, “Foreclosure fears spread to middle class.” Will Worsen by State in 2010." Economic Policy Institute.
created by a powerful concurrence of factors. See: <www. Financial Times, 29 January 2009. Web. <http://www.epi.org/publications/entry/ib257/>.
merriam-webster.com/dictionary/perfect+storm>. 6 H. Shierholz and K. Edwards. “Jobs report offers no sign of 9 OECD. Society at a Glance, 2006. Out of work benefits.
0 0 0
vietnam
0 0
NO0,00 VA
0,0
98
Vietnam has translated socialist principles into action99by achieving most of the Millennium Development 100
99
100 100 75 Goals (MDGs)100 well ahead
100 of time. However, it is not100 immune to the 100multiple global crises. There
100is an 100
97
increasing gap between the rich and the poor, and rising sea levels due to climate change are already
ania = 96 having
IEG of Romania negative impacts. Although
= 71,3 civil
BCI of society
Serbia = 98,1organizations still do not have
IEG much of=a0presence in
of Serbia BCI of
the country, some groups have taken the lead to respond collectively to the issues.
ActionAid International
Basic Capabilities Index (BCI) Gender Equity Index (GEI)
Oxfam Great Britain
100 100 100
BCI = 93 92 GEI = 74
Empowerment
Children reaching
5th grade
As the global crisis began to be felt in 2008, Vietnam
witnessed an inflation rate of 44 14.1% in February – 44
an all time high in East Asia, almost twice that of
Indonesia (7.4%) and more than twice that of China
0 0 0
(6.5%). This led to a price hike of 24% for foodstuffs
compared to the same period in 2007 and a 17%
98 88 98
100
increase 100
in electricity,
61 water and gasoline compared
100 100 100 100 100 100
81
to the previous year.1 Around the time of Tet, the
98 Viet- Births attended by 97
namese new year, in 2008 the price of rice fluctuated skilled health personnel Survival up to 5 Economic activity Education
between VND 5,000 and VND 7,000 (about USD 0.30
= 94,5 IEG of Venezuela = 67,7 IEG of Vietnam = 73,9 BCI o
and 0.40, respectively) per kilogram. Since then, the total expenditureICB decountry,
in the Viet Nam = 92,8
while the remaining A 2008 report by ActionAid revealed that the
price has increased to over VND 10,000 (USD 0.60). 80% spends modestly. The situation has created urban poor and migrants, as net consumers, were
The Consumer Price Index hit a record high of 28.9% two disparate groups: a minority with “voice”, repre- the worst hit by price hikes. They have also been the
in December 2008, though it stabilized in the first sented by emerging capitalists, and a voiceless ma- first and worst affected by the impact of the recent
four months of 2009 and is currently at 11.6%. jority made up of rural communities, wage labourers, economic crisis. The majority of migrants work on a
Economic growth during100 the first quarter of small farmers and those 100being left out of the race. short-term basis and are100the most vulnerable group
2009 was fairly high at 3.4% but far lower than the during the economic downturns affecting the em-
targeted annual plan. The worst hit have been the ma- Poverty and rural-urban dynamics ployment sector. According to the Ministry of Labour,
jor export-oriented sectors (agriculture,
48 garments Since 2005 Vietnam has witnessed
47 a blossoming of War Invalids and Social Affairs in January 2009, ap-
and textiles). This has added more pressure to the industrial zones and urbanized areas, with more than proximately 67,000 workers, mostly migrants, had
macroeconomy in general and to the most vulner- 190 industrial zones and clusters built on land recov- lost their jobs. The number20is predicted to rise to
able wage-earning groups in0 particular. Diminishing 0
ered from over 100,000 households. This is leaving 150,000 by the end of 2009.0
Since the unemployed
demand is affecting industries and causing unem- rural areas with limited livelihood resources. Ap- do not have insurance, this crisis is pushing rural
100 96 36
ployment. Nguyen Phu Diep, head of the Labour proximately 90% 67
of the poor depend on agricultural migrants into extremely difficult situations. 52
100 100 72 100 100 100 100 100 100
Management Department in Hanoi’s Industrial 97 Parks production – which is distributed in a relatively even 99
(IPs) and Export Processing Zones (EPZs), says that fashion. Only 4% of rural households have no agricul- Agriculture
= 98,8 19 enterprises there cutde
IEG 4,300 jobs, =which
Francia 72 is approxi- tural land of their
ICB own,
de which may be= considered
Nicaragua 70,1 as an Vietnam hasIEGbecome the world’s= second
de Nicaragua 51,5 largest rice ICB de S
mately 20% of workers in these sectors. It is esti- advantage for ensuring household food security.2 exporter, largely by maintaining an annual agricultur-
mated that 10,000 workers in Thang Long IP will lose An estimated two-thirds of displaced households al sector growth rate of 4% for the last two decades.
their jobs in 2009. Declining purchasing power leads benefit from greater job opportunities and the chance This was a major factor in helping the country to
families to cut essential expenses such as health and to realize the cash value of their land holdings. Equal avoid being trapped in the economic crisis of 1997.
education; the current rate of out-of-pocket health property (land) rights have become a very important Almost 70% of the labour force works in farming.
expenditures is approximately 62.8%. issue as strong gender stereotypes still exist. Though The Central Committee of the Communist Party
there has been legislation to promote equal access to aims to industrialize and modernize the country by
Causes and impacts of the crisis land for women, the implementation of these laws is reducing the farming labour force to 30% by 2020.
Over the last decade, Vietnam has stood as an ex- very limited. As a result, women are the worst affected However, the current crisis is making it difficult to
ample of a development model that lifted millions of during transitions. Large numbers of people are try- achieve these goals, despite the introduction of sev-
people out of poverty while trying to ensure that the ing to find an opportunity to earn a living in the cities. eral modernization programmes in the sector. More
benefits of its vibrant market economy were fairly In Hanoi alone, the annual population growth is 3%. than 75% of the labour force has not yet undergone
and evenly distributed across society to maintain It is estimated that by 2010 there will be 120,000 to any vocational training, and adult education still re-
the Government’s socialist orientation. However, 130,000 people migrating to the capital city. quires a lot of reinforcement.
the aim of reducing poverty is still a challenge, as Membership in the World Trade Organiza-
is the increasing gap between the rich and the poor. 2 ActionAid Vietnam (n.d.). “Food Security for the Poor tion (WTO) has widened Vietnam’s opportunities
According to the World Bank, the consumption of the in Vietnam in the Context of Economic Integration and for economic growth but also introduced a number
Climate Change”. Available from: <www.isgmard.org.vn/
richest 20% of the population accounts for 43.3% of of challenges in the agricultural sector. Due to the
Information%20Service/Report/Plenary%20Meeting%20
Report%2017-11-2008/Group%203/Bao%20cao%20 push towards commercialized production and the
1 See: <tintuc.timnhanh.com/kinh_te/20080225/35A7142E/>. tham%20luan%20AAV-En.doc>. increasing drive of market forces and capital accu-
yemen
NO0,00 VA
0,0 0 0
66 5th grade
zambia
A Government in denial 42 43
0 0 0
23, prohibits discrimination against women, but this Diversification from copper UNDP (1998). The Human Development Report for Zambia.
Lusaka: United Nations Development Programme (UNDP).
has not translated into positive results for women Cooperating Partners Group Chairperson and World
in practice. Bank country manager Dr. Kapil Kapoor has observed Xinhua (2008). “Interview: Minister Says High Electricity Tariffs
in Zambia Hinder Investment”. China Wire, 17 May. Available
that “diversification out of copper has been a much from: <http://www.china-wire.org/2006/ 05/interview-
Liberal economic policies stated objective of Zambian leadership for several minister-says-high-electricity-tariffs-in-zambia-hinder-
Although the West praises Zambia’s liberal economic years”.13 But he notes that this “has not been achieved investment-2/>.
policies, the truth is that 64% of Zambians, including and over 70% of foreign exchange earnings still come
the majority in rural areas, are still trapped in poverty. from copper’, leaving the country vulnerable to price
These same policies mean high interest rates and fluctuations. There has been no serious effort to re-
permanent budget deficits that drain the labour mar- duce reliance on copper in spite of poor performance.
ket. The Government, in its MDG Progress Report, Copper is a technology-intensive industry. Most of
praises its management of the country’s economy the processing plants depend on the availability of
and for its commitment to policies aimed at ensur- huge amounts of foreign exchange, so that the indus-
ing poverty reduction that led the country to reach try is not only the main producer of foreign exchange
the Highly Indebted Poor Country Initiative (HIPC) but also the main consumer. With credit drying up on
completion point. It further claims that this is affect- the money markets and purchasers of copper prod-
ing poverty levels and most of the social indicators. ucts withdrawing from the markets,14 it is not difficult
to see the dark clouds gathering over Zambia – some
8 See Sooka, M. “Energy Statistics: The Case of Zambia”.
would say the storm has already broken. n
Paper prepared for presentation to a workshop on
environmental statistics held on 16-20 July 2006, Addis
Ababa, Ethiopia. Also see: UNDP. The Human Development 11 Republic of Zambia. Millennium Development Goals
Report for Zambia 1998. Lusaka: United Nations Progress Report 2008.
Development Programme (UNDP). 12 Musokotwane, S. Budget Address by the Minister of Finance
9 Xinhua. “Interview: Minister Says High Electricity Tariffs and National Planning, delivered to the National Assembly on
in Zambia Hinder Investment”. China Wire, 17 May 2008. Friday 30 January 2009.
Available from: <www.china-wire.org/2006/ 05/interview- 13 The Post. “Adhere to Governance Agenda, Cooperating
minister-says-high-electricity-tariffs-in-zambia-hinder- Partners Urge Government.” The Post, 31 March 2009.
investment-2/>. Available from: <www.postzambia.com/content/view/6837>.
10 For example, a policeman beat his girlfriend so hard that 14 Toovey, L.M. “Declining Asian Consumption and a Diving US
she was left permanently blind in one eye, and a 25-year-old Dollar Battle Copper Prices”. Copper Investing News, 16 July
woman who lost an eye after it was damaged when she was 2008. Available from:
working on a farm was only compensated ZMK 100,000 <www.copperinvestingnews.com/?s=declining+asian+cons
(USD 20) by her employer. umption&x=0&y=0>.
A fragmented scenario
Better situation g Significant progress
Above average d Slight progress
Below average h Stagnant
e Regression
Worse situation f Major regression
g Afghanistan (47) 33 g 33
g Albania (96) 7 h 6 g 7 Note:
h Barbados (98) 13 h 13
3. Stagnant Evolution: In those indicators showing
h Belarus (100) 4 h 1 h 3 stagnant evolution in all their values, said evolution
h Belgium (98) 8 h 8 responds to lack of updating, being reproduced those
values registered in 2008. Data refer to years or periods
g Belize (92) 6 h 6 other than those specified in the indicator definition.
g Benin (77) 16 h 18 g 17
g Bhutan (79) 15 h 14 g 15
g Bolivia (79) 7 h 5 g 6 Source:
g Botswana (90) 10 h 11 g 11
g Brazil (90) 8 h 4 g 6
h Brunei Darussalam (99) 10 h 10 For more detailed information on the reference
years of the data see complete tables at:
h Bulgaria (97) 10 h 10 www.socialwatch.org/statistics2009
g Burkina Faso (71) 16 h 32 g 24
g Burma/Myanmar (73) 15 h 15
g Burundi (61) 11 h 35 g 23 Definition of indicators:
g Cambodia (66) 11 h 28 g 20
g Cameroon (77) 11 h 16 g 14 Estimated low birth weight (%): Percentage of
newborns weighing less than 2.500 grams, with
h Canada (99) 6 h 6 measurement taken within the first hours of life, before
h Cape Verde (93) 13 h 13 significant postnatal weight loss has occurred. Due
to changes in the methodology of the sources the
g Central African Republic (65) 13 h 24 g 19 construction of data series presents comparability
problems.
g Chad (44) 22 h 22
f Chile (99) 6 h 6 Under-5 child malnutrition (underweight for age, %):
g China (95) 2 h 6 g 4 Percentage of children under five whose weight for age
is less than minus two standard deviations from the
g Colombia (94) 9 h 5 g 7 median for the international reference population ages
0 to 59 months. The reference population adopted by
h Comoros (79) 25 h 25
the WHO in 1983 is based on children from the United
g Congo DR (68) 12 h 28 g 20 States, who are assumed to be well nourished.
h Fiji (93) 10 h 10
h Finland (100) 4 h 4
Source:
h France (99) 7 h 7
UNICEF (www.unicef.org/sowc09).
g Gabon (82) 14 h 8 g 11
g Gambia (73) 20 h 16 g 18
g Georgia (96) 7 h 2 g 5
For more detailed information on the reference
h Germany (99) 7 h 7 years of the data see complete tables at:
g Ghana (76) 9 h 13 g 11 www.socialwatch.org/statistics2009
h Greece (99) 8 h 8
h Grenada (92) 9 h 9
g Guatemala (68) 12 h 18 g 15 Definition of indicators:
g Guinea (68) 12 h 22 g 17
Estimated low birth weight (%): Percentage of
g Guinea-Bissau (58) 24 h 15 g 20 newborns weighing less than 2.500 grams, with
measurement taken within the first hours of life, before
g Guyana (84) 13 h 10 g 12 significant postnatal weight loss has occurred. Due
g Haiti (48) 25 h 18 g 22 to changes in the methodology of the sources the
construction of data series presents comparability
g Honduras (82) 10 h 8 g 9 problems.
h Hungary (99) 9 h 9
Under-5 child malnutrition (underweight for age, %):
h Iceland (98) 4 h 4 Percentage of children under five whose weight for age
d India (68) 30 h 43 g 37 is less than minus two standard deviations from the
median for the international reference population ages
g Indonesia (85) 9 h 23 g 16 0 to 59 months. The reference population adopted by
the WHO in 1983 is based on children from the United
g Iraq (88) 15 h 6 g 11
States, who are assumed to be well nourished.
g Iran (95) 7 h 7
h Ireland (100) 6 h 6
h Israel (99) 8 h 8
h Italy (100) 6 h 6
g Jamaica (95) 12 h 3 g 8
h Japan (99) 8 h 8
f Jordan (99) 12 h 12
h Kazakhstan (99) 6 h 4 h 5
g Kenya (71) 10 h 16 g 13
g Kiribati (89) 5 h 5
g Montenegro (94) 4 h 2 g 3
d Morocco (81) 15 h 9 g 12
g Mozambique (66) 15 h 20 g 18 Definition of indicators:
g Namibia (89) 14 h 14
Estimated low birth weight (%): Percentage of
h Nepal (58) 21 h 39 h 30 newborns weighing less than 2.500 grams, with
measurement taken within the first hours of life, before
h New Zealand (98) 6 h 6 significant postnatal weight loss has occurred. Due
f Nicaragua (70) 12 h 12 to changes in the methodology of the sources the
construction of data series presents comparability
g Niger (55) 13 h 39 g 26 problems.
g Nigeria (56) 14 h 24 g 19
Under-5 child malnutrition (underweight for age, %):
h Norway (100) 5 h 5 Percentage of children under five whose weight for age
g Oman (98) 8 h 13 g 11 is less than minus two standard deviations from the
median for the international reference population ages
g Pakistan (71) 19 h 31 g 25 0 to 59 months. The reference population adopted by
the WHO in 1983 is based on children from the United
h Palau (99) 9 h 9
States, who are assumed to be well nourished.
g Panama (93) 10 h 6 g 8
h Papua New Guinea (62) 11 h 11
g Paraguay (95) 9 h 3 g 6
g Peru (88) 11 h 6 g 9
g Philippines (78) 20 h 21 g 21
h Poland (99) 6 h 6
h Portugal (99) 8 h 8
f Qatar (95) 10 h 10
f Romania (96) 8 h 4 f 6
f Russia (99) 6 h 6
g Rwanda (53) 6 h 18 g 12
h Samoa (97) 4 h 4 Note:
h Spain (100) 6 h 6
3. Stagnant Evolution: In those indicators showing
g Sri Lanka (96) 22 h 23 g 23 stagnant evolution in all their values, said evolution
h St Kitts and Nevis (95) 9 h 9 responds to lack of updating, being reproduced those
values registered in 2008. Data refer to years or periods
h St Lucia (98) 12 h 12 other than those specified in the indicator definition.
h St Vincent and Grenadines (95) 5 h 5
g Sudan (70) 31 h 31
g Suriname (82) 13 h 7 g 10 Source:
g Swaziland (80) 9 h 5 g 7 UNICEF (www.unicef.org/sowc09).
h Sweden (100) 4 h 4
h Switzerland (97) 6 h 6
g Syria (95) 9 h 9 g 9 For more detailed information on the reference
years of the data see complete tables at:
g Tajikistan (89) 10 h 14 g 12 www.socialwatch.org/statistics2009
g Tanzania (73) 10 h 17 g 14
g Thailand (96) 9 h 7 g 8
g Timor-Leste (56) 12 h 12
Definition of indicators:
g Togo (68) 12 h 22 g 17
h Tonga (96) 3 h 3 Estimated low birth weight (%): Percentage of
newborns weighing less than 2.500 grams, with
f Trinidad and Tobago (95) 19 h 19 measurement taken within the first hours of life, before
f Tunisia (95) 7 h 7 significant postnatal weight loss has occurred. Due
to changes in the methodology of the sources the
f Turkey (92) 16 h 16 construction of data series presents comparability
g Turkmenistan (88) 4 h 8 g 6 problems.
h Tuvalu (89) 5 h 5
Under-5 child malnutrition (underweight for age, %):
g Uganda (59) 12 h 16 g 14 Percentage of children under five whose weight for age
is less than minus two standard deviations from the
f Uklraine (99) 4 h 4 median for the international reference population ages
e United Arab Emirates (100) 15 h 15 0 to 59 months. The reference population adopted by
the WHO in 1983 is based on children from the United
h United Kingdom (99) 8 h 8 States, who are assumed to be well nourished.
g United States of America (98) 8 h 1 g 5
f Uruguay (98) 8 h 8
g Uzbekistan (93) 5 h 4 g 5
h Vanuatu (87) 6 h 6
f Venezuela (94) 9 h 9
g Vietnam (93) 7 h 7
f West Bank and Gaza (—) 7 h 7
g Yemen (59) 32 h 42 g 37
g Zambia (71) 12 h 15 g 14
g Zimbabwe (77) 11 h 12 g 12
A fragmented scenario 30
Differences become
Better situation g Significant progress
Above average d Slight progress
more noticeable
Below average h Stagnant
e Regression
Worse situation f Major regression
UNESCO (www.uis.unesco.org/).
uis.unesco.org/). Tertiary education enrolment ratio (gross):
Secondary school enrolment ratio (net, %): UNESCO (www.
d Belarus (100) 100 h 90.2 h 99.5 86.9 e 68.5 g 89
h Belgium (98) 98.3 h 96.3 87.1 f 62.5 h 86
e Belize (92) 99.7 h 87.3 f 67.1 f 2.6 h 64
g Benin (77) 52 g 82.8 g 71.5 g 17.1 h 5.1 g 46
f Bermuda (—) 92.7 f 89.8 h 18.8 f 67
g Bhutan (79) 74 88.4 g 93.2 d 45.4 g 5.3 g 61
h Bolivia (79) 99 d 95.0 h 83.3 e 69.9 e 40.6 h 78
f Bosnia and Herzegovina (98) 100 h 36.9 68
e Botswana (90) 94 h 84.1 e 82.5 f 55.9 f 5.1 h 64
h Brazil (90) 98 d 93.5 e 75.6 f 77.0 h 30.0 g 75
d Brunei Darussalam (99) 100 d 96.5 d 99.3 h 89.1 d 15.4 d 80
d Bulgaria (97) 97 e 96.3 d 94.1 87.9 e 49.5 g 85
g Burkina Faso (71) 39 g 59.2 g 79.6 g 14.1 g 3.0 g 39
g Burma/Myanmar (73) 95 h 73.0 d 84
g Burundi (61) 73 h 81.3 g 66.2 e 1.9 f 56
Definition of indicators at the end of this table.
www.socialwatch.org/statistics2009
years of the data see complete tables at:
For more detailed information on the reference
UNESCO (www.uis.unesco.org/).
uis.unesco.org/). Tertiary education enrolment ratio (gross):
Secondary school enrolment ratio (net, %): UNESCO (www.
h Finland (100) 96.5 e 99.9 h 96.9 d 93.8 d 97
h France (99) 99.2 h 98.0 h 98.5 h 55.6 h 88
g Gabon (82) 97 d 89.5 d 69.3 h 85
g Gambia (73) 69.3 e 73.0 40.1 f 1.1 h 46
g Georgia (96) 94.5 g 100.0 g 81.9 d 37.3 f 78
Germany (99) 99.8 98.4 99
g Ghana (76) 78 g 73.3 g 88.6 g 44.9 g 5.8 g 58
h Greece (99) 99 h 99.8 h 98.5 h 91.0 h 90.8 h 96
e Grenada (92) 78.7 f 79.0 h 78.8 h 79
g Guatemala (68) 85 d 96.8 d 68.0 h 38.1 g 17.7 g 61
g Guinea (68) 47 h 75.1 g 83.0 g 30.1 g 5.3 g 48
h Guinea-Bissau (58) 45.3 h 8.7 h 27
d Guyana (84) 64.0 h 12.3 g 38
g Honduras (82) 94 g 93.9 h 83.0 g 17.2 h 72
d Hong Kong (—) 94.9 d 100.0 h 78.6 d 33.8 g 77
g Hungary (99) 99 93.0 d 89.4 h 69.1 g 88
UNESCO (www.uis.unesco.org/).
uis.unesco.org/). Tertiary education enrolment ratio (gross):
Secondary school enrolment ratio (net, %): UNESCO (www.
d Morocco (81) 75 g 89.3 d 84.0 g 34.5 h 11.3 h 59
d Mozambique (66) 53 g 76.0 h 64.0 d 2.6 f 1.5 h 39
g Namibia (89) 93 h 88.1 g 98.0 g 49.6 g 6.4 d 67
g Nauru (76) 72.3 31.0 h 52
f Nepal (58) 79 g 80.0 h 62.0 f 42.0 11.3 g 55
d Netherlands (100) 98.6 h 99.0 h 88.6 d 60.3 d 87
e Netherlands Antilles (—) 98 h 97.0 h 81.0 h 21.2 h 74
New Caledonia (—) 99 99
h New Zealand (98) 99.3 h 91.9 h 79.8 e 90
d Nicaragua (70) 87 h 97.1 g 47.0 f 45.5 g 18.1 h 59
g Niger (55) 37 d 45.5 g 72.0 g 9.0 d 1.0 f 33
g Nigeria (56) 87 d 65.2 d 83.0 g 27.0 g 10.2 d 54
h Norway (100) 98.7 h 100.0 h 96.8 d 76.2 e 93
d Oman (98) 98 h 75.0 d 98.0 e 78.6 d 25.5 g 75
g Pakistan (71) 69 g 65.6 e 70.0 h 32.2 g 5.1 g 48
h Palau (99) 96.4 h 40.2 h 68
NotE:
1. Evolution: Evolution of indicators obtained by re-escalating This rate is obtained from the following operation: 3. Stagnant Evolution: In those indicators showing stagnant
those values resulting from the relative rate of variation (2009 value – 2008 value/ 2008 value)*100 evolution in all their values, said evolution responds to lack of
amongh the following ranks: updating, being reproduced those values registered in 2008.
2. Value reached by the index: The value results from
Minor than -5: significant regression; Between -5 and -1:
adding the values calculated for each dimension and dividing
regression; Between -1 and 1: stagnant; Between 1 a 5: slight
the result by the total number of dimensions presenting data.
progress; Larger than 5: significant progress.
Definition of indicators:
Literacy (15-24 years old, %): Percentage of people aged Children reaching 5th grade of primary school (%): Tertiary education enrolment ratio (gross): Ratio of total
15-24 who can, with understanding, read and write a short, Percentage of children entering first grade of primary enrolment, regardless of age, to the population of the age
simple statement on their everyday life. school who eventually reach grade five. group that officially corresponds to the level of education
shown. Tertiary education, whether or not to an advanced
Primary school enrolment ratio (net, %): Number of Secondary school enrolment ratio (net, %): Number of research qualification, normally requires, as a minimum
children enrolled in primary school who belong to the age children enrolled in secondary school who belong condition of admission, successful completion of education
group that officially corresponds to primary schooling, as to the agegroup that officially corresponds to secondary at secondary level.
percentage of the total population of the same age group. schooling, as percentage of the total population
Last available data: 2003/2006. of the same age group Methodological notes and guidelines at the end of the section.
Differences become
more noticeable 30
I
Above average
mproving the quality of education, covering differ-
20
ent levels and reducing by 50% the number of illiter- Best relative situation
ate adults are key objectives agreed by a large part of
the countries in the world. Target dates have been set 15
for 2014 or 2015, depending on the case, and require
constant monitoring. For this reason, Social Watch 10
monitors several basic indicators which, independ-
ently of their participation in other indices, have their
5
own specific value and require independent attention.
Global evolution 0
East Asia & Europe Central Latin America Middle East South Asia Sub-Saharan North
Although the number of countries which have re- Pacific Asia & Caribbean & North Africa Africa America
gressed (15.9%) is greater than in 2008 (5%), more
than six in ten countries achieved slight (36.4% of
the countries) or significant (27.2%) progress. In
2008 barely 15.8% of the countries had shown any
significant progress (Table 1). TABLE 1. Current situation according to evolution in education (number of countries)
Polarization is, therefore, clearly present since
f e h d g
average figures by indicator – with the exception of
tertiary education (which has risen from 4% to 4.8%) – Worse relative situation 7 1 22
have fallen amongst the countries in the worst relative Below average 3 1 1 31
situation and risen amongst those in the best relative
situation. On analyzing indicators which measure a Above average 10 2 3 42
greater educational level, it becomes clear that, from Better relative situation 21 8 2 6 35
2008 to 2009, both the condition and degree of the de-
Total 41 12 3 9 130
cline deteriorate amongst countries in the worst situ-
ation and improve amongst those in the best relative
situation. The countries in the worst situation – which
are becoming fewer – show a lower level of educational TABLE 2. Averages by indicator of countries in better and worse relative educational
coverage and those in the best situation – more and situations
more of them – display better levels of coverage. In
addition, differences in indicators which measure the Literacy Primary Children Secondary Tertiary
lower levels of instruction are emphasized amongst (15-24 education who reach education education
years, %) enrolment 5th grade enrolment rate enrolment rate
the first, and in indicators which measure the higher
rate (net, %) (%) (net, %) (gross, %)
levels of instruction, amongst the second. Regard-
ing the rest of the indicators, the number of countries
ranked in the worst relative situation has diminished, Worse relative Average 51.2 56.7 56.3 21.5 4.8
although not as significantly as the increase of the situation Number of countries 16 21 26 31 56
number of countries in the best relative situation1.
Better relative Average 99.2 98.0 98.5 89.9 72.9
Access by Region situation Number of countries 61 70 51 52 34
The regions in the best situation regarding the ac-
Total Average 88.5 88.4 84.4 64.8 30.6
cess of their populations to education are led by North
America and Central Asia, with no countries below the Number of countries 139 181 152 162 171
average. Europe, with no countries in the worst relative
situation, does however have three countries below
the average (7.1%), 12 countries above the average
(28.6%) and 27 in the best relative situation (64.3%).
Latin America and the Caribbean, and the Middle (67.5% and 80%, respectively) and the number of In contrast, South Asia has no above average
East and North Africa, display a similar distribution: countries in the worst relative situation is marginal countries and seven out of ten countries are in the worst
most of their countries are ranked above average (2.5% and 5% respectively). situation or below average (20% and 50% respective-
On the other hand, in East Asia and the Pacific, ly). It is thus the most polarized of all the regions.
1 It may be observed that between 2008 and 2009 the number countries in an intermediate situation are in the ma- However, the worst situated of the geographical
of countries covered by the indicators whose levels of jority, although the balance is positive: nearly four areas is Sub-Saharan Africa, where nine out of ten
coverage most clearly deteriorated (literacy between 15 and out of ten countries are in the worst relative situation countries are in the worst relative situation (59.6%)
24 years of age, net enrolment rate in primary education, and
(15.2%) or below average (24.2%), while six out of or below average (29.8%) and only one in ten has
children who reach 5th grade) has dropped, while increasing
for all the rest (net enrolment rate for secondary education ten have ranked above average (36.4%) or in the best achieved an above average ranking (6.4%) or best
and gross enrolment rate for tertiary education). relative situation (24.2%). possible situation (4.3%). n
Definition of indicators:
Internet users (per 1,000 people): People with access Information and communication technology expenditure (% Research and development expenditure (% of GDP):
to the internet, per 1,000 people. of GDP): Includes external spending on information technology Expenditures for research and development are current and
(‘tangible’ spending on information technology products capital expenditures (both public and private) on creative work
Personal computers (per 1,000 people): Personal purchased by businesses, households, governments, and undertaken systematically to increase knowledge, including
computers are self-contained computers designed education institutions from vendors or organizations outside knowledge of humanity, culture, and society, and the use of
to be used by a single individual, per 1,000 people. the purchasing entity), internal spending on information knowledge for new applications. R&D covers basic research,
Telephone mainlines (per 1,000 people): Telephone lines technology (‘intangible’ spending on internally customized applied research, and experimental development. Expressed as
connecting a customer’s equipment to the public switched software, capital depreciation, and the like), and spending on percentage of gross domestic product (GDP).
telephone network. Data are presented per 1,000 people for telecommunications and other office equipment. Expressed as
the entire country. percentage of gross domestic product (GDP). Methodological notes and guidelines at, the end of the section.
Below average
35
Above average
30
Best relative situation
20
Official Development Assistance (% of GNI): Grants or economic development and welfare as the main objective; and credits for military purposes are excluded. Transfer
loans to countries and territories on Part I of the DAC List (c) at concessional financial terms (if a loan, having a Grant payments to private individuals (e.g. pensions, reparations or
of Aid Recipients (developing countries) which are: (a) Element [q.v.] of at least 25%). In addition to financial flows, insurance payouts) are in general not counted. Expressed as
undertaken by the official sector; (b) with promotion of Technical Co-operation q.v. is included in aid. Grants, loans percentage of gross national income (GNI).
Summary: Countries Population Population Value Summary: Countries Population Population Value
with with with with
current (Basic Capabilities current (Basic Capabilities
situation access to access to situation access to access to
Index value, 0-100) sanitation improved Index value, 0-100) sanitation improved
(colour) (colour)
(%) water (%) water
Recent Recent
sources sources
evolution evolution
(arrow-icon) (%) (arrow-icon) (%)
Definition of indicators:
Population with access to sanitation (%): Percentage of the population with at least Population with access to improved water sources (%): Percentage of the population
adequate excreta disposal facilities (private or shared, but not public) that can effectively who use any of the following types of water supply for drinking: piped water, public tap,
prevent human, animal, and insect contact with excreta. Improved facilities range from borehole or pump, protected well, protected spring or rainwater. Improved water sources do
simple but protected pit latrines to flush toilets with a sewerage connection. To be effective, not include vendor provided waters, bottled water, tanker trucks or unprotected wells and
facilities must be correctly constructed and properly maintained. springs.
For more detailed information on the reference years of the data see complete tables at: www.socialwatch.org/statistics2009
A
Below average
ccording to WHO, in 2000 1.1 billion people 30
(17% of the world’s population) lacked access Above average
to an improved water supply. Nearly two-thirds of 25 Best relative situation
these people live in Asia. In Sub-Saharan Africa, at
20
present four out of ten persons lack access to an
improved water supply. In 2002, there were 2.6 bil- 15
lion people who lacked improved sanitation services.
Nearly 1.5 billion of them lived in China and India. In 10
Sub-Saharan Africa, only 36% had access to these
services. These deficiencies are closely linked to 5
Unequal improvement
Better situation g Significant progress
Above average d Slight progress
Below average h Stagnant
e Regression
Worse situation f Major regression
(www.worldbank.org)
People living with HIV/AIDS: World Bank
Tuberculosis: World Bank (www.worldbank.org).
Sources:
g Albania (96) 16.9 g 13 g 16 g 15
d Algeria (96) 56.6 e 0.1 f 33 h 34 g 31
American Samoa (—) 5 5
f Andorra (93) 18.9 f 3 h 3 h 8
g Angola (58) 286.5 g 2.1 g 116 g 243 g 162
g Antigua and Barbuda (94) 5.5 10 h 10 g 9
g Argentina (98) 30.8 g 0.5 f 15 f 15 g 15
g Armenia (95) 72.3 g 0.1 g 22 e 21 g 29
g Australia (99) 6.2 g 0.2 f 5 h 5 g 4
f Austria (99) 12.4 f 0.2 f 4 h 4 g 5
g Azerbaijan (96) 77.1 g 0.2 f 34 g 84 d 49
e Bahamas (99) 44.2 f 3 f 12 g 12 g 18
g Bahrain (99) 40.5 g 9 h 11 f 20
g Bangladesh (56) 222.5 g 47 g 65 g 112
Barbados (98) 3.6 1.2 11 12 7
(www.worldbank.org)
People living with HIV/AIDS: World Bank
Tuberculosis: World Bank (www.worldbank.org).
Sources:
g Cyprus (100) 4.9 g 3 h 3 g 4
f Czech Republic (99) 8.8 g 3 h 4 h 5
e Denmark (100) 8.1 f 0.2 f 4 h 4 g 4
g Dijibouti (90) 812.5 g 3.1 e 84 d 112 g 253
g Dominica (96) 13.3 g 9 g 14 g 12
g Dominican Republic (87) 69.3 g 1.1 f 31 f 29 h 33
g Ecuador (86) 101.3 g 0.3 f 20 d 21 g 36
f Egypt (89) 21 g 30 e 33 g 28
g El Salvador (80) 39.6 g 0.8 e 21 d 23 g 21
g Equatorial Guinea (58) 255.9 g 3.4 f 124 h 206 h 147
g Eritrea (60) 95.4 g 1.3 g 46 d 68 g 53
g Estonia (99) 38.1 d 1.3 f 4 g 4 g 12
g Ethiopia (53) 378.2 g 2.1 g 75 d 113 g 142
g Fiji (93) 20.7 g 0.1 g 16 h 17 g 13
f Finland (100) 5.9 f 0.1 f 3 h 3 g 3
www.socialwatch.org/statistics2009
years of the data see complete tables at:
For more detailed information on the reference
g Honduras (82) 59.4 g 0.7 g 20 g 27 h 27
Hong Kong (—) 61.9 62
g Hungary (99) 16.7 g 0.1 f 6 h 7 h 7
e Iceland (98) 3.6 f 0.2 g 2 h 3 h 2
g India (68) 167.8 g 0.3 g 54 g 76 h 75
g Indonesia (85) 228 g 0.2 f 25 d 34 h 72
g Iraq (88) 56 g 36 d 47 e 46
g Iran (95) 21.7 g 0.2 f 29 d 35 e 21
f Ireland (100) 13.2 f 0.2 f 4 h 4 g 5
g Israel (99) 7.5 f 0.1 4 h 5 h 4
e Italy (100) 7.4 f 0.4 f 3 g 4 h 4
h Jamaica (95) 6.5 g 1.6 f 26 h 32 e 17
e Japan (99) 21.1 g 3 h 4 h 9
e Jordan (99) 7.4 f 21 h 25 h 18
g Kazakhstan (99) 129 g 0.1 d 28 f 29 h 47
f Kenya (71) 352.6 f 80 e 121 h 185
g Kiribati (89) 365.1 g 46 d 64 h 158
f Korea, DPR (87) 344.4 f 42 h 53 146
g Korea, Rep. (100) 89.6 g 0.1 f 4 g 31
d Kuwait (100) 23.6 g 9 h 11 h 15
g Kyrgyzstan (95) 121.3 g 0.1 g 34 g 41 h 49
g Lao PDR (58) 151.1 g 0.2 f 56 g 75 h 71
g Latvia (99) 53 g 0.8 f 7 g 9 h 17
f Lebanon (96) 18.6 f 0.1 g 26 h 31 e 19
f Lesotho (72) 636.6 f 23.2 e 68 g 132 h 215
g Liberia (61) 277.1 g 1.7 93 g 235 h 152
d Libya (99) 17.2 d 17 h 18 h 17
g Liechtenstein (—) 2 g 2
(www.worldbank.org)
People living with HIV/AIDS: World Bank
Tuberculosis: World Bank (www.worldbank.org).
Sources:
h Luxembourg (100) 12.2 f 0.2 g 2 g 4 h 5
Macau (—) 62.6 63
g Macedonia (—) 29.3 g 0.1 f 15 h 15
g Madagascar (59) 250.8 g 0.1 g 70 d 115 h 109
e Malawi (62) 345.7 f 11.9 g 71 g 120 h 137
g Malaysia (97) 103.3 g 0.5 f 10 h 12 h 31
g Maldives (91) 46.9 g 26 h 30 h 34
g Mali (67) 318.9 g 1.5 d 117 d 217 h 164
d Malta (99) 6 f 0.1 g 4 g 6 h 4
f Marshall Islands (93) 215.2 f 49 d 56 h 107
g Mauritania (68) 317.7 g 0.8 f 75 d 125 h 130
g Mauritius (99) 22.4 g 1.8 f 13 h 15 f 13
g Mexico (95) 20 g 0.3 f 29 h 35 h 21
g Micronesia (89) 97.1 g 33 h 41 h 57
f Moldova (—) 141 g 0.4 g 16 h 52
www.socialwatch.org/statistics2009
years of the data see complete tables at:
For more detailed information on the reference
g Niue (98) 42 42
Northern Mariana Islands (—) 58.3 58
f Norway (100) 5.5 f 0.1 f 3 h 4 h 3
d Oman (98) 12.8 g 11 f 11 g 12
g Pakistan (71) 181.3 g 0.1 f 73 g 97 h 88
f Palau (99) 60.2 f 9 g 11 h 27
f Panama (93) 47.4 f 1 f 18 h 23 h 22
g Papua New Guinea (62) 249.5 g 1.5 g 50 g 73 h 94
g Paraguay (95) 58.3 g 0.6 f 24 f 22 h 26
g Peru (88) 125.9 g 0.5 e 17 g 25 h 42
g Philippines (78) 290 g 23 d 26 g 113
d Poland (99) 25.2 g 0.1 f 6 h 7 h 10
f Portugal (99) 29.6 f 0.5 f 3 h 4 g 9
Puerto Rico (—) 4 4
g Qatar (95) 69.9 d 12 g 11 g 31
g Romania (96) 114.9 g 0.1 f 13 g 16 g 36
g Russia (99) 110.4 g 1.1 f 13 g 13 g 34
g Rwanda (53) 397 g 2.8 g 109 f 160 h 167
g Samoa (97) 18.8 g 22 d 28 h 23
f San Marino (—) 6.2 f 4 f 3 h 4
g São Tomé and Príncipe (83) 101.1 g 64 e 96 h 87
g Saudi Arabia (95) 46.3 g 20 d 23 g 30
g Senegal (68) 271.5 g 1 f 59 d 116 h 112
g Serbia (98) 32.4 g 0.1 7 h 8 h 12
g Seychelles (99) 32.4 g 12 h 13 h 19
g Sierra Leone (57) 573.9 g 1.7 f 155 d 269 h 250
f Singapore (92) 26.5 f 0.2 f 2 h 3 h 8
g Slovakia (99) 16.6 g 0.1 f 7 h 7 g 8
(www.worldbank.org)
People living with HIV/AIDS: World Bank
Tuberculosis: World Bank (www.worldbank.org).
Sources:
g Solomon Islands (—) 127.8 g 53 d 90
g Somalia (48) 248.7 g 0.5 g 88 d 145 h 121
g South Africa (89) 948.2 d 18.1 f 46 g 69 h 270
f Spain (100) 29.6 f 0.5 f 4 h 4 h 10
f Sri Lanka (96) 60.5 g 17 f 13 h 30
g St Kitts and Nevis (95) 9.3 g 16 g 19 h 15
g St Lucia (98) 14.3 g 0.6 14 f 14 h 11
g St Vincent and Grenadines (95) 24.7 g 17 h 20 h 21
g Sudan (70) 243.3 g 1.4 d 69 f 89 h 101
f Suriname (82) 116.3 f 2.4 f 27 g 39 h 46
e Swaziland (80) 1198 f 26.1 g 66 g 164 h 364
f Sweden (100) 6 f 0.1 g 3 h 4 f 3
f Switzerland (97) 6.1 f 0.6 f 4 h 5 h 4
www.socialwatch.org/statistics2009
years of the data see complete tables at:
For more detailed information on the reference
g United Arab Emirates (100) 15.8 g 7 g 7 g 10
f United Kingdom (99) 15.3 f 0.2 f 5 h 6 h 7
f United States of America (98) 4.2 f 0.6 f 7 f 7 g 5
g Uruguay (98) 22.3 g 0.6 f 12 f 15 f 12
US Virgin Islands (—) 10.1 10
g Uzbekistan (93) 112.6 g 0.1 g 36 g 44 e 48
f Vanuatu (87) 77.1 f 28 g 36 h 47
e Venezuela (94) 33.6 g 17 g 21 24
g Vietnam (93) 171.2 g 0.5 f 13 g 17 h 50
e West Bank and Gaza (—) 19.9 24 f 22
g Yemen (59) 76.5 g 55 g 100 h 77
g Zambia (71) 506.1 g 15.2 d 103 h 182 h 202
f Zimbabwe (77) 782.1 f 15.3 g 59 g 85 g 235
NotE:
1. Evolution: Evolution of indicators obtained by re-escalating This rate is obtained from the following operation: 3. Stagnant Evolution: In those indicators showing stagnant
those values resulting from the relative rate of variation among (2009 value – 2008 value/ 2008 value)*100 evolution in all their values, said evolution responds to lack of
the following ranks: updating, being reproduced those values registered in 2008.
2. Value reached by the index: The value results from adding
Minor than -5: significant progress; Between -5 and -1: slight Source: World Development Indicators 2009, World Bank
the values calculated for each dimension and dividing the
progress; Between -1 and 1: stagnant; Between 1 a 5: (www.worldbank.org).
result by the total number of dimensions presenting data.
regression; Larger than 5: significant regression.
Definition of indicators:
Tuberculosis (cases per 100,000 people): Total number People living with HIV/AIDS (15-49 years old, %): Under-5 mortality (per 1,000 live births): Probability of dying
of tuberculosis cases reported to the World Health Percentage of adults (15-49 years) living with HIV/AIDS. between birth and exactly five years of age expressed per 1,000
Organization per 100,000 people. A tuberculosis case live births.
is defined as a patient in whom tuberculosis has been Infant mortality (per 1,000 live births): Number of infants
dying before reaching one year of age, per 1,000 live births Methodological notes and guidelines at the end
bacteriologically confirmed or diagnosed by a clinician.
in a given year. of the section.
Unequal improvement
40
Below average
25
Above average
Marked polarization
Better situation g Significant progress
Above average d Slight progress
Below average h Stagnant
e Regression
Worse situation f Major regression
g Afghanistan (47) 52 h 14 h 33
2008.
of updating, being reproduced those values registered in
evolution in all their values, said evolution responds to lack
3. Stagnant Evolution: In those indicators showing stagnant
presenting data.
dividing the result by the total number of dimensions
adding the values calculated for each dimension and
2. Value reached by the index: The value results from
h h
f Belize (92) 91 h 34.3 f 63
h Benin (77) 88 h 74 h 17 e 60
g Bhutan (79) 51 h 35.4 g 43
g Bolivia (79) 79.1 h 60.8 h 70
g Bosnia and Herzegovina (98) 99 h 100 h 100
g Botswana (90) 99 h 99 h 99
g Brazil (90) 97 h 97
h Brunei Darussalam (99) 100 h 100
g Bulgaria (97) 99 h 99
g Burkina Faso (71) 72.8 h 54 h 63
g Burma/Myanmar (73) 68 h 68
g Burundi (61) 93 h 34 h 64
g Cambodia (66) 69.3 h 43.8 h 57
aged 15-49: World Bank (www.worldbank.org).
Contraceptive use among currently in union women
(www.measuredhs.com/accesssurveys).
for (+) Demographic and Health Surveys - STAT compiler
and Research, WHO (www.who.int/reproductivehealth/). Except
Health Indicators Database, Department of Reproductive Health
Births attended by skilled health personnel: Reproductive
Global Health Atlas, WHO (www.who.int/GlobalAtlas).
Women aged 15-49 attended at least once during pregnancy:
Sources:
g h
g Iran (95) 97 h 97
h Ireland (100) 100 h 100
g Italy (100) 99 h 99
g Jamaica (95) 97 h 97
g Japan (99) 100 h 100
h Jordan (99) 98.6 h 100 h 57.1 d 85
g Kazakhstan (99) 82 h 100 h 91
g Kenya (71) 88.1 h 42 h 65
g Kiribati (89) 90 h 90
g Korea, DPR (87) 98 h 97 h 98
g Korea, Rep. (100) 100 h 100
g Kuwait (100) 100 h 100
g Kyrgyzstan (95) 88 h 98 h 93
h Lao PDR (58) 44 h 19 h 32
h Latvia (99) 100 h 100
g Lebanon (96) 98 h 98
DEFinition of indicators:
Women aged 15-49 attended at least once during pregnancy Births attended by skilled health personnel (%): Percentage Contraceptive use among women currently in union aged
by skilled health personnel (%): Percentage of women aged of births attended by skilled health personnel (doctors, 15-49 (%): Percentage of women in union aged 15-49 years
15-49 years attended at least once during pregnancy by skilled nurses or midwives). currently using contraception.
health personnel (doctors, nurses or midwives).
For more detailed information on the reference years
of the data see complete tables at:
Methodological notes and guidelines at the end of the section. www.socialwatch.org/statistics2009
Above average
discrimination in respect
Countries that have not
Freedom of association
compulsory labour
compulsory labour
of employment and
of employment and
Abolition of child
Abolition of child
Elimination of
Elimination of
of forced and
of forced and
conventions
conventions
Elimination
Elimination
occupation
occupation
labour
labour
C 87 C 98 C 105 C 100 C 111 C 138 C 182 C 87 C 98 C 105 C 100 C 111 C 138 C 182
Afghanistan d d c c c d d Liberia c c c d c d c
Australia c c c c c d c Malaysia d c 4 c d c c
Bahrain d d c d c d c Mexico c d c c c d c
Bangladesh c c c c c d c Morocco d c c c c c c
Brazil d c c c c c c Namibia c c c d c c c
Burma/Myanmar c d d d d d d Nepal d c c c c c c
China d d d c c c c Qatar d d c d c c c
Gabon c c c c c d c Singapore d c c c d c c
Guinea-Bissau d c c c c c c Somalia d d c d c d d
Iraq d c c c c c c Suriname c c c d d d c
Japan c c d c d c c Thailand d d c c d c c
Jordan d c c c c c c Timor-Leste d c d d d d c
Kenya d c c c c c c Turkmenistan c c c c c d d
Kuwait c c c d c c c Uzbekistan d c c c c c c
c Convention ratified
d Convention not yet ratified
4 Convention denounced
A: International Covenant on Economic, Social and Cultural Rights (CESCR), 1966. Entry into force: 3 January 1976.
B: International Covenant on Civil and Political Rights (CCPR), 1966. Entry into force: 23 March 1976.
C: International Convention on the Elimination of All Forms of Racial Discrimination (CERD), 1965. Entry into force: 4 January 1969.
D: Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), 1979. Entry into force: 3 September 1981.
E: Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (CAT), 1984. Entry into force: 26 June 1987.
F: Convention on the Rights of the Child (CRC), 1989. Entry into force: 2 September 1990.
G: Convention on the Prevention and Punishment of the Crime of Genocide, 1948. Entry into force: 12 January 1951.
H: Convention/Protocol Relating to the Status of Refugees, 1951/1967. Entry into force: 22 April 1954/4 October 1967.
I: International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families (MWC), 1990. Entry into force: 1 July 2003.
UN UN
Member A B C D E F G H I Member A B C D E F G H I
since since
Afghanistan 1946 ● ● ● ● ● ● ● ● Cyprus 1960 ● ● ● ● ● ● ● ●
● Ratification, accession, approval, notification or succession, acceptance, consent to be bound or definitive signature.
❍ Signature not yet followed by ratification.
HealtH
references
Current SituAtion
8
reCent evolution (Between
Summary: CountrieS tuBerCuloSiS
(cases
PeoPle
living
infAnt
mortAlity
unDer-5
mortAlity
value
(latest available data) most
recent and previous available current (Basic Capabilities index per 100,000 with hiv/AiDS (per 1,000 (per 1,000
data)
Situation value, 0-100)
unequal improvement
Better situation g Significant progress people) (15-49 years old, %) live births) live births)
(colour)
above average d Slight progress
h
recent evolution
Below average Stagnant
(arrow-icon)
e regression
Worse situation
f Major regression
g Slovenia (99) 12.9 g 0.1 f 3 h 4 h 5
(www.worldbank.org)
People living with hiv/AiDS: World Bank
tuberculosis: World Bank (www.worldbank.org).
SourCeS:
g Solomon islands (—) 127.8 g 53 d 90
complete table at: www.socialwatch.org/statistics2009
g Somalia (48) 248.7 g 0.5 g 88 d 145 h 121
Summary: CountrieS tuBerCuloSiS PeoPle infAnt unDer-5 value g South africa (89) 948.2 d 18.1 f 46 g 69 h 270
1
(cases living mortAlity mortAlity f Spain (100) 29.6 f 0.5 f 4 h 4 h 10
current (Basic Capabilities index per 100,000 with hiv/AiDS (per 1,000 (per 1,000 f Sri lanka (96) 60.5 g 17 f 13 h 30
Situation value, 0-100) people) (15-49 years old, %) live births) live births)
(colour) g St Kitts and nevis (95) 9.3 g 16 g 19 h 15
recent evolution
3 4 7 g St lucia (98) 14.3 g 0.6 14 f 14 h 11
2
(arrow-icon) g St vincent and Grenadines (95) 24.7 g 17 h 20 h 21
g Sudan (70) 243.3 g 1.4 d 69 f 89 h 101
f afghanistan (47) 168.3 g 165 h 254 d 196 f Suriname (82) 116.3 f 2.4 f 27 g 39 h 46
(www.worldbank.org)
People living with hiv/AiDS: World Bank
tuberculosis: World Bank (www.worldbank.org).
SourCeS:
g albania (96) 16.9 g 13 g 16 g 15 Swaziland (80) 1198 26.1 66 164 364
e f g g h
d algeria (96) 56.6 e 0.1 f 33 h 34 g 31
f Sweden (100) 6 f 0.1 g 3 h 4 f 3
american Samoa (—) 5 5
f Switzerland (97) 6.1 f 0.6 f 4 h 5 h 4
f andorra (93) 18.9 f 3 h 3 h 8
5
g antigua and Barbuda (94) 5.5 10 h 10 g 9 g tajikistan (89) 230.7 g 0.3 f 57 e 68 h 89
g argentina (98) 30.8 g 0.5 f 15 f 15 g 15 g tanzania (73) 297.4 g 6.2 e 73 d 118 h 124
g armenia (95) 72.3 g 0.1 g 22 e 21 g 29 g thailand (96) 142.3 g 1.4 f 6 g 8 h 39
g australia (99) 6.2 g 0.2 f 5 h 5 g 4 g timor-leste (56) 322 g 77 f 55 h 151
f austria (99) 12.4 f 0.2 f 4 h 4 g 5 g togo (68) 429.2 g 3.3 f 65 g 107 h 151
g azerbaijan (96) 77.1 g 0.2 f 34 g 84 d 49 g tonga (96) 24 g 19 d 24 h 22
e Bahamas (99) 44.2 f 3 f 12 g 12 g 18 d trinidad and tobago (95) 11.2 f 1.5 g 31 g 38 h 20
6 9
g Bahrain (99) 40.5 g 9 h 11 f 20 d tunisia (95) 26 g 0.1 g 18 g 23 h 17
g Bangladesh (56) 222.5 g 47 g 65 g 112 g turkey (92) 29.6 g 21 g 26 h 26
Barbados (98) 3.6 1.2 11 12 7
under-5 mortality: uniceF (www.unicef.org/sowc09).
infant mortality: uniceF (www.unicef.org/sowc09).
g g d h h
g turkmenistan (88) 68.5 g 0.1 f 45 h 51 h 41
g Belarus (100) 61 g 0.2 g 12 h 7 g 20
g tuvalu (89) 30 d 38 h 34
f Belgium (98) 11.8 f 0.2 f 4 h 5 f 5
g uganda (59) 329.6 g 5.4 g 82 f 134 h 138
g Belize (92) 40 g 2.1 h 22 f 14 g 20
g uklraine (99) 101.5 g 1.6 f 20 h 24 h 37
g Benin (77) 90.9 g 1.2 g 78 g 149 h 80
www.socialwatch.org/statistics2009
years of the data see complete tables at:
For more detailed information on the reference
Bermuda (—) 3.7 4 g united arab emirates (100) 15.8 g 7 g 7 g 10
f Bhutan (79) 246 f 0.1 f 56 g 65 g 92 f united Kingdom (99) 15.3 f 0.2 f 5 h 6 h 7
g Bolivia (79) 154.6 g 0.2 f 48 d 60 d 66 f united States of america (98) 4.2 f 0.6 f 7 f 7 g 5
g Bosnia and Herzegovina (98) 51.1 g 0.1 f 13 h 12 g 19 g uruguay (98) 22.3 g 0.6 f 12 f 15 f 12
f Botswana (90) 731.4 f 23.9 e 33 g 119 d 227 uS virgin islands (—) 10.1 10
g Brazil (90) 48 g 0.6 f 20 f 18 g 22 g uzbekistan (93) 112.6 g 0.1 g 36 g 44 e 48
g Brunei Darussalam (99) 59 g 8 h 8 g 25 f vanuatu (87) 77.1 f 28 g 36 h 47
f Bulgaria (97) 38.8 g 10 g 12 g 20 e venezuela (94) 33.6 g 17 g 21 24
g Burkina Faso (71) 226.2 g 1.6 g 104 g 203 h 134 g vietnam (93) 171.2 g 0.5 f 13 g 17 h 50
h Burma/Myanmar (73) 170.9 e 0.7 g 74 h 104 h 87
e West Bank and Gaza (—) 19.9 24 f 22
g Burundi (61) 367 g 2 g 108 h 175 d 163
www.socialwatch.org/statistics2009
years of the data see complete tables at:
For more detailed information on the reference
9
g g f d f regression; Larger than 5: significant regression.
g colombia (94) 35.4 g 0.6 f 17 h 17 g 18
g comoros (79) 42 g 0.1 g 49 d 63 g 39 Definition of inDiCAtorS:
g congo Dr (68) 391.7 g 108 g 193 g 231 tuberculosis (cases per 100,000 people): total number People living with hiv/AiDS (15-49 years old, %): under-5 mortality (per 1,000 live births): Probability of dying
g congo, rep. (76) 403.1 g 3.5 g 79 h 121 d 152 of tuberculosis cases reported to the World Health Percentage of adults (15-49 years) living with Hiv/aiDS. between birth and exactly five years of age expressed per 1,000
g cook islands (98) 16 h 16 organization per 100,000 people. a tuberculosis case live births.
is defined as a patient in whom tuberculosis has been infant mortality (per 1,000 live births): number of infants
g costa rica (93) 11 g 0.4 f 10 g 11 g 8 bacteriologically confirmed or diagnosed by a clinician. dying before reaching one year of age, per 1,000 live births Methodological notes and guidelines at the end
g côte d'ivoire (74) 420.5 g 3.9 g 89 d 106 g 155 in a given year. of the section.
The thematic area tables present the 3. Basic Capabilities Index (BCI) evaluate and compare the present 7. Value reached in the index:
statistical information available for value: Presents the values of the situation in the countries of the world. Presents the value resulting from add-
each indicator. BCI for each country, a measure- Given that in many cases, the latest ing the reached values in each dimen-
ment designed by Social Watch that available figures are not up to date, it is sion and dividing by the total number
1. Current situation in the area: evaluates country status with regard important to take into account the time of data dimensions.
Illustrates the current situation of the to the basic conditions of develop- period to which the data correspond.
countries in the corresponding dimen- ment (for more information, see the 8. References: Shows the catego-
sion through a summarizing measure- box “Technical notes: BCI design in 6. Evolution: Based on current and ries of the Current situation in
ment that evaluates countries based countries” in the “Basic Capabilities initial data,1 the rate of progress or a country in the area and the Recent
on their performance on the set of in- Index 2008” article in this Report). regression over the intervening time evolution for each indicator and for
dicators included for which informa- Countries with the highest BCI scores period is calculated for each country the whole area. These variables are
tion is available (see box “Methodo- are listed first. with reference to the evolution of all of constructed by Social Watch to facili-
logical notes: Thematic tables”). The the countries in this indicator (see box tate the evaluation of countries in each
different categories are colour coded 4. Indicator: Each thematic area in- “Methodological notes: Thematic ta- area based on the information avail-
(see References: 7).The categories cludes indicators that are pertinent to bles”). The result is expressed graphi- able (see box “Methodological notes:
are: Better situation, Above average, evaluating the dimension in question cally (see 7), facilitating the reading Thematic tables”).
Below average, Worse situation. and for which information is available and evaluation of performance in
from a large number of countries. This the indicator during this period. The 9. Definitions, Notes and Sources:
2. Evolution in the area: Presents makes it possible to visualize the situ- categories are: Major regression, Re- The definition of each indicator as well
the evolution of country situations as ation in each country while compar- gression, Stagnant, Slight progress, as the source(s) of the information
an average of the evolution in indica- ing the distances between them. The Significant progress. used are provided on the right side or
tors for which sufficient information definitions of each indicator can be at the foot of the corresponding table.
is available (see box “Methodological found on the right or at the foot of the The information used for the indica-
notes: Thematic tables”). The catego- corresponding table (see 8). 1 Initial data or starting point: Presents the tors is obtained from recognized inter-
ries are indicated by symbols (see 7). 5. Current situation: This column available information from as close as national organizations that compile the
possible to 1990 (the year that is taken
Categories are: Major regression, Re- presents the latest data available for statistics produced by the countries.
as the starting point in the international
gression, Stagnant, Slight progress, each country according to the source commitments that set quantitative goals in Notes have been added with informa-
Significant progress. consulted. These figures allow us to different aspects of social development). tion needed to read the tables.
Countries above average Significant progress applies to those countries which are
progressing at rates above the average for all countries making
Countries below average progress.
Slight progress applies to those countries which are pro-
Countries in worse situation gressing at rates below the average for all countries making
progress.
Countries for which sufficient information to be included in Stagnant refers to those countries where no changes (or
the ranking is lacking (Countries with insufficient data to sum- quantitatively insignificant changes) have been recorded over
marize the area) are also shown. the period in question.
Regression applies to those countries which are regressing
Recent evolution
at rates below the average for all countries regressing (i.e. they
The evolution of countries on each indicator is evaluated by are regressing more slowly).
comparing the latest data available with previous information. Major regression applies to those countries which are re-
This procedure involves assessing the country’s initial and final gressing at rates above the average for all countries regressing
levels in the two latest reports. The rate of change is the relative (i.e. they are regressing more rapidly).
proportion of variation in relation to the latest data available, In addition, an average of progress and regression of the
which is why this is a rate of variation (an incremental rate based indicators is built for each dimension for which information on
on 100). recent evolution is available. The average appears in the column
“Recent evolution” of the area, and values are also rescaled to
obtain the aforementioned five categories. n
1 For this, the variable was normalized (by subtracting the mean and dividing
by the standard deviation) and then the mean positive values and the mean
negative values for the normalized indicator were calculated. The four
categories were established according to the values above and below the
mean positive values for the normalized indicator, and the values above and
below the mean negative values for the normalized indicator.
S O C I A L W A T C H R E P O R T 2 0 0 9
SENEGAL: The environmental crisis resulting from CAMBODIA: More than 90% of the workers laid off
global warming has reduced fishing (...) Fishing is were women from rural communities.
an important source of resources for the primary
S O C I A L W A T C H R E P O R T 2 0 0 9
sector and one of the main sources of protein for
the population. CANADA: ... women are over-represented in part-
time and precarious work and are often the first to
be laid off. R E P O R T 2 0 0 9
DEVELOPING COUNTRIES: ... the poor spend upwards
of 50% of their income on food – the poorest spend
80% or more. The increase in food prices has GHANA: Initial damage has included decreasing
increased not just poverty, but also hunger. exports and remittances from abroad and galloping
devaluation.
Social Watch is an international network of citizens’ organizations struggling to eradicate poverty and
the causes of poverty, to ensure an equitable distribution of wealth and the realization of human rights.
We are committed to social, economic and gender justice, and we emphasize the right of all people
ISSN: 0797-9231
not to be poor.
0797-9231
A c i t i z e ns ´ g l o b a l p r o g r e ss r e p o r t
Social Watch holds governments, the UN system and international organizations accountable for the
fulfilment of national, regional and international commitments to eradicate poverty. o n p o v e r t y e r a d i c a t i o n an d g e n d e r e q ui t y