Speech by President of the Republic Tarja Halonen at the European regional dialogue under the World Commission on the Socila Dimension of Globalization in Brussels on 3 February 2003

Globalization which corresponds to people's needs can only be achieved by listening to people - their experience, needs and dreams - in different parts of the world. So I am very pleased that the European Commission has arranged this high-level seminar in order to support the work of the World Commission on the Social Dimension of Globalization.

Our commission wants to collect as much information as possible on local and regional experiences concerning globalization and means to govern it. We have already arranged several national dialogues around the world. This seminar is the third regional dialogue following those in Latin America and Asia. The African regional dialogue will be held next Thursday and Friday in Arusha, Tanzania.

Europe and its countries have always been a key part of globalization - in a good and bad sense. The colonialist policy which was practiced by a number of European countries was globalization in its own day. All too often those in a weaker position complain that today's globalization is also exploitation, based on the legacy of an unfair international system.

The European Union is the world's most significant regional arrangement intended to promote peace, stability and prosperity. Beginning with economic cooperation, over the past fifty years the arrangement has steadily acquired new members and at the same time expanded and deepened cooperation to include new areas of policy. Enlargement eastwards has further increased the importance of commitment to democracy, human rights and the rule of law as well as economic and social justice as common value base of the Union.

The single market based on the four freedoms, a common currency, the Common Agricultural Policy, the Lisbon strategy to promote economic growth, social security and employment, and many other steps are significant regional measures in directing and governing globalization.

In addition to its internal activities the EU is also an important international actor in the world of globalization. The EU member states account about twenty percent of world trade. A large part (forty seven percent) of direct foreign investment comes from the EU and twenty percent goes to the EU. The EU faces an increasing flow of immigrants, the EU is the world's biggest supplier of development aid and the EU's importance in world politics continues to grow. Outside of the Union it is considered to be self evident that the EU wants to influence world affairs.

Influence brings with it responsibility. This responsibility extends far beyond the Union's geographical area. In developing the Union to meet citizens' needs better, we must also develop the Union to meet global challenges better. In addition to traditional trade policy, this requires a more effective foreign policy as well as greater emphasis on development cooperation.

European Union's commitment to developing fairer globalization will at least partly be measured on the basis of one key issue. This is, of course, Doha development round - agriculture and subsidies for it.

Everybody here today knows the expectations associated with the Doha development round. During the past year I have participated in many discussions regarding globalization. A key issue in all of these discussions has been the restricted market access of agricultural products from developing countries and the negative effects of the industrialized countries' export subsidies on the developing countries' own agricultural production.

I am sorry to say that the EU is often mentioned in a very negative light in this connection.

It is clear to me that the EU cannot work credibly for international fairness and fairer globalization unless we are able to reform the Common Agricultural Policy. We must hold on to the right of all countries to their own agricultural production, but we must reduce harmful export subsidies for our agricultural products.

The goal of the World Commission on the Social Dimension of Globalization is 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, prosperity, growth and employment and reduces poverty. In other words the aim is globalization, which promotes a decent life.

In our report next autumn our intention is to present initiatives and recommendations concerning how this vision can be achieved. Recommendations will be aimed at key actors: nation-states, international organizations, businesses, trade unions and other parts of civil society. Some recommendations will be immediate while others will require long-term action.

Our commission has made good progress in its work, in my opinion. Without anticipating the content of our report, I would like to mention a few things which have stood out in our discussions in the commission and in national dialogues.

Creating fair international rules. Time and again we have heard the generally accepted statement that the rules and agreements which regulate international dealings are not fair. Especially in the developing countries people feel that ostensibly equal rules favour the industrialized countries. The industrialized countries are in a better position to take advantage of opportunities provided by agreements. In other words, the playing field is not level. Even fair rules do not automatically lead to a fair result. We need arrangements, which enable those in a weaker position to take advantage of their proportional advantage and to jump on the bandwagon of development. Criticism focuses above all on the WTO agreements and their implementation as well as the World Bank and the International Monetary Fund, but the United Nations has also received its share of criticism.

The role of the nation-state. Despite the increase in international cooperation and dealings, nation-states are still the key actor in globalization. Measures at the national level can lead to better governance of globalization at the regional or local level, as we have noticed in the European integration process.

National measures have the strongest impact on people's lives. The nation-state is also a key level of political influence. Key demands on the nation-state are democracy, respect for human rights and the rule of law. Nation-states should also strive for good governance.

Business. With the opening of economies and markets, the significance of business has continued to grow. International corporations in particular can have a large significance for employment and finances in individual countries, not to mention their importance for those people who are directly dependent on them. Business is often criticized and this criticism is surely often deserved. Less attention seems to be given to companies' positive effect on employment and also good practices. In the best case a foreign company can help a country develop practices which are much more progressive than legislation. There is all need to support and develop best practices, like the UN's Global Compact-initiative.

Development. Many speeches have called for development to be the key goal of globalization. Many people find the present situation to be far from this. Globalization can promote development, but this requires that poor countries and their citizens also obtain the benefits. This in turn requires solidarity on the part of the industrialized countries, including development aid and the elimination of market access barriers. It is not a one-way street, however: the developing countries for their part must also display willingness and commitment to development.

Movement of people. Globally speaking, only a small portion of people move from one country to another. The portion who move for economic reasons is even smaller; the reasons are more often natural or political catastrophes. Migration has a large impact on both source and destination countries, however. Source countries can in the worst case suffer a brain drain which substantially slows down their own development. In destination countries, unemployment and other unfavorable developments are far too often blamed on immigrants. The economic significance of migration is also reflected by the fact that the amount of money sent by immigrants to their home countries is greater than all the development aid supplied around the world. Anyway I hope that in the future people will not have to move unless they want to.

At last an issue, which has not been mentioned too often, women. Children's vulnerability and the need for their protection has been well noticed and also covered e.g. in the ILO-conventions. There should be more emphasis for women's position in a globalized world. Women hold often keys to development, women just need to be empowered to use them.

I have mentioned only a few of the themes that have come up in the commission's work or dialogues. There are many more and I believe that new themes will be addressed and additional light will be shed on familiar themes here.

I would like to thank the European Commission for arranging this dialogue. I wish you a rewarding and fruitful seminar and look forward to the results. I will continue today my journey to Tanzania, where I will participate also in the African regional dialogue on the social dimension of globalization.