Speech by President of the Republic Tarja Halonen at a discussion arranged by the World Commission on the Social Dimension of Globalization in Beijing on 26 November 2002

The International Labour Organization, ILO, set up a World Commission on the Social Dimension of Globalization last winter. It is very important to support the process to make globalization more human and inclusive. I am happy that you have organized this seminar. I would now like to share with you a few thoughts concerning globalization, its effects and the work of the World Commission on the Social Dimension of Globalization.

Globalization can be viewed as an extension of general internationalization. The difference compared with the past is the rapid development of technology and especially information and communication technology. Cross-border interaction is greater than ever before. Obstacles to interaction have been removed and the development of technology has also made its own contribution in this respect.

Businesses are often regarded as the engines of globalization. Yet the nation-states and their governments are key players in globalization - especially in harnessing it - as they prepare national legislation and conclude international agreements. In eliminating obstacles to international dealings, governments are at least partly responding also to citizens' demands for a better standard of living and quality of life. Globalization is not a law of nature but a process, which has taken place largely through political choices.

Globalization is often regarded mainly as an economic phenomenon. The significance of economics should not be underestimated. It is clear, however, that cross-border interaction is much broader in scope. The speeding up of communications, the spread of cultural influences, tourism and other travel and cross-border relations are key elements of globalization.

Globalization is by definition world-wide. However, in their own lives people experience globalization locally. Even for global businesses, markets are local. Globalization is always present somewhere. As a result of increased interdependence, local actions have global effects. Local becomes global and vice versa. It is important that, in analyzing the effects of globalization or considering ways to manage it, we keep our attention focused on people. People are at the same time the objects and the subjects of globalization.

Two weeks ago we arranged a dialogue similar to this one in Finland. On that occasion there was a consensus that Finland and Finns have mainly done well in the process of globalization. Key reasons for this were considered to be our early integration in international exchange, heavy investments in education and social welfare of people as well as our democratic society, which respects human rights and is based on the rule of law.

Finland's national challenge is to succeed in tomorrow's globalization as well. At our national discussion, education and expertise were viewed as key tools in this regard. This is quite understandable, since information and expertise have become key competition factors in the age of globalization.

Globalization's losers are people who themselves or whose governments, businesses and societies have not been able to adjust to tougher competition. Most of these people live in developing countries. The developing countries' better and fairer participation in globalization requires short-term concessions - solidarity - from the industrial countries and their citizens. Over the long term everyone will benefit.

China is in a class by herself with regard to globalization. China's incredibly fast economic growth and participation in international trade have made China a truly significant actor in today's world. Nokia Chairman and CEO Jorma Ollila, who is also taking part in my state visit, has noted that China is the most important single country for Nokia. And Nokia is not an individual case.

China's rapid development has of course caused great problems and challenges for the Chinese government and the Chinese in general. Migration to growth centres has been unparalleled and has not been without problems. Meanwhile, adjusting to international competition has increased unemployment in some sectors. You have certainly discussed these matters today, and I am extremely interested to hear what conclusions you have reached.

The goal of the World Commission on the Social Dimension of Globalization is

a) To move discussion concerning globalization from confrontation to dialogue. Discussion is presently characterized by polarisation and the presentation of narrow viewpoints. We need a discussion in which globalization is approached in a comprehensive manner.

b) To present a practical vision of a fair and sustainable globalization which corresponds to people's needs. The goal is globalization which has a more human face, promotes development, growth and employment and reduces poverty. In other words the aim is globalization which promotes a decent life.

c) To present initiatives and recommendations concerning how this vision can be achieved. Recommendations would be aimed at key actors: nation-states, international organisations, businesses, trade unions and other parts of civil society. Some recommendations would be immediate while others would require long-term action.

Our commission has made good progress in its work, in my opinion. During our three meetings we have come a long way from general discussion to more focused, solution-oriented discussion. Without going into detail, our future report will most likely deal inter alia with international trade, international financial institutions, migration and development issues. In this respect it is clear that the stability and predictability of international capital markets have to be improved and the rights at work have to be guaranteed better.

I would like to thank Lu Mai for arranging this national dialogue. I am very happy to have had this opportunity to speak to you. I am also very enthusiastic about the commission's work and look forward with great interest to the results of today's meeting.