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SOCIAL WATCHR E P O R T 2 0 0 9Making finances work:People firstOver SIXTY reports from civil societyorganizations around the world show thatthe only way out of the current ecologicaland economic crisis is to invest in people.A c i t i z e n s ´ g l o b a l p r o g r e s s r e p o r ton poverty eradication and gender equity
SOCIAL WATCH REPORT <strong>2009</strong>
SOCIAL WATCH REPORT <strong>2009</strong>People first
SOCIAL WATCHCoordinating CommitteeEmily 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 AbdelSamad (Lebanon), Areli Sandoval (Mexico), Alexandra Spieldoch (United States), Genoveva Tisheva (Bulgaria), Mirjam van Reisen (EuropeanUnion) and Roberto Bissio (Uruguay, ex officio).The International Secretariat of <strong>Social</strong> <strong>Watch</strong> is based in Montevideo, Uruguay, hosted by the Third World Institute (ITeM).Editor-in-ChiefRoberto BissioEditorAmir HamedProduction ManagerAna ZeballosAssociate EditorsKaren Judd, Tina Johnson, Jon SteinbergResearch and EditingGustavo Alzugaray, Enrique Buchichio<strong>Social</strong> Sciences Research Team, Departamento de Sociologíade la Facultad de Ciencias <strong>Social</strong>es de la Universidad de la República, UruguayGabriel Errandonea (Coordinator)Gabriel Gómez, Daniel Umpiérrez, Ruy BlancoAdvocacy CoordinatorNatalia CardonaCampaigns and CommunicationsJana Silverman (Coordinator)Agustín FernándezTranslationSoledad Bervejillo, Marcela Dutra, Bachir El Omari, Ana Fostik, Susana Ibarburu, Emilie Jung,Richard Manning, María Laura Mazza, Alexandra Potts, Álvaro Queiruga, Alejandra TrellesTechnical supportArturo GonzálezWeb design and developmentAndrea Antelo, Ximena Pucciarelli, Ernesto Rapetti© Copyright <strong>2009</strong>INSTITUTO DEL TERCER MUNDO18 de Julio 1077/ 903, Montevideo 11100, Uruguayitem@item.org.uyFax: +598 (2) 902 0490 ext.113Made possible thanks to the funding and support of the European Commission, Oxfam Novib and the Ford Foundation.This publication has been produced with the assistance of the European Union, Oxfam Novib and the Ford Foundation. The contents of thispublication are the sole responsibility of its authors and of the <strong>Social</strong> <strong>Watch</strong> network and can in no way be taken to reflect the views of theEuropean Union, Oxfam Novib and the Ford Foundation.The content of this publication may be reproduced by non-governmental organizations for non-commercial purposes (please send us copies).Any other form of reproduction, storage in a retrieval system or transmission by any means for commercial purposes requires priorpermission from ITeM.Original layout: MONOCROMOLayout: FORMA ESTUDIOwww.formaestudio.comPhone: +598 (2) 916 3273Printed by: Gráfica MoscaPrinted in UruguayEdición hecha al amparo del Art. 79 de la Ley 13.349(Comisión del Papel)ISSN: 0797-9231Dep. Legal:For orders and requests please contact:<strong>Social</strong> <strong>Watch</strong>Casilla de Correo 1539Montevideo 11000, Uruguaysocwatch@socialwatch.orgwww.socialwatch.orgPhone: +598 (2) 902 0490Fax: +598 (2) 902 0490 ext.113
<strong>Social</strong> <strong>Watch</strong> in the worldSW National CoalitionTHE SOCIAL WATCH INITIATIVE IS PROMOTED AND DEVELOPED BY:• Albania:Human Development Promotion Centre(HDPC), hdpc@icc-al.org• Algeria:Association El Amel pour leDéveloppement <strong>Social</strong>, mselougha@yahoo.fr;Algerian Youth Forum• Angola:Sindicato Nacional de Professores(SINPROF), sinprof@angonet.org,www.sinprof.org• Argentina:Centro de Estudios Legales y <strong>Social</strong>es(CELS), parcidiacono@cels.org.ar,lroyo@cels.org.ar, www.cels.org.ar,Foro Ciudadano de Participación por laJusticia y los Derechos Humanos (FOCO)foco@inpade.org.ar, www.inpade.org.ar• Armenia:«Sociometr» Independent SociologicalResearch Center, svetaslan@hotmail.com• Azerbaijan:Public Finance Monitoring Center(PFMC), kenan@pfmc.az, www.pfmc.az• Bahrain:Bahrain Human Rights Society (BHRS),bhrs@bhrs.org, anhalekry@yahoo.com,www.bhrs.org/arabic/;Bahrain Transpraency bahts@batelco.com.bh• Bangladesh:Unnayan Shamannay, shamunnay@sdnbd.org, www.shamunnay.org;Action on Disability and Development(ADD); Bangladesh Adivasi Forum;Campaign for Good Governance(SHUPRO); Community DevelopmentLibrary (CDL); Education <strong>Watch</strong>(CAMPE); Ganoshastho Kendro;Manusher Jonno Foundation; People’sHealth Movement (PHM); StepsTowards Development• Belgium:Plateforme belge pour le travaildécent coordinated by Centre Nationalde Coopération au Développement(CNCD), cncd@cncd.be, www.cncd.be, and 11.11.11 (North-South FlamishCooperation), www.11.be• Benin:<strong>Social</strong> <strong>Watch</strong> Benin, swbenin@yahoo.fr, www.socialwatchbenin.org;Action Citoyenne pour un développementdurable (ACIDU-SUSUNYUEN); Art-Culture Tourisme Sans Frontière(ACT-SF); Assistance à la Promotionde la Femme et de la Jeune Fille(APROFEJ); Association Béninoisede Droit du Développement (ABDD);Association de Lutte contre leRégionalisme, l’Ethnocentrisme et duRacisme (ALCRER); Association desBonnes Volontés pour l’Excellence(ABOVE ESPOIR); Association desFemmes Alphabétiseures du Bénin(AFA-BENIN); Association des Femmespour le Développement Rural Intégré(AFDRI); Association des Instituteurs etInstitutrices du Bénin (AIIB); Associationdes Jeunes pour le Progrès et leDéveloppement de l’Education (AJPDE);Association des Personnes Rénovatricesdes Technologies Traditionnelles(APRECTECTRA); Association Femmes etVie (AFV); Association pour la Promotiondes Initiatives Locales (ASSOPIL);Association Vinavo et Environnement(ASSOVIE); Caritas-Benin; Centre AfrikaObota (CAO); Centre Béninois pourl’Environnement et le DéveloppementEconomique et <strong>Social</strong> (CEBEDES);Centre de Réflexion et d’Action sur leDéveloppement Intégré et la solidarité(CeRADIS); Cercle d’Auto promotionpour le Développement Durable (CADD);Comité Inter-Africaine sur les pratiquestraditionnelles ayant effet sur la santéde la femme et de l’enfant (CI-AF);Conseil des Activités Educatives duBénin (CAEB); Eglise ProtestanteMéthodiste du Bénin (EPMB); Espace& Vie; Espoir Plus; Flourished YouthAssociation (FYA-BENIN); ForcesNouvelles pour un DéveloppementHumain Durable (FNDHD); Grouped’Action pour l’Amour du Bien-êtreFamilial (GABF); Groupe d’Action pourla Justice et l’Egalité <strong>Social</strong>e (GAJES);Groupe d’Appui à l’Education et à laSanté de Base (GRAPESAB); Groupe deRecherche et d’Action pour la Promotionde l’Agriculture et le Développement(GRAPAD); Groupe de Recherche etd’Action pour le Développement de laFemme au Bénin (GRAD-FB); Groupe deRecherche et d’Appui aux Initiatives deBase pour un Développement Durable(GRAIB); Groupe de Sécurité Alimentairepour Tous (GSAT); Jeunesse SansFrontière Bénin (JSF-ONG); Laboratoired’Analyse Régionale et d’Expertise<strong>Social</strong>e (LARES); Le Jour Utile - ONG(LJU); Le Rural; Ligue pour la Défensedu Consommateur au Bénin (LDCB);Nouveau Défi pour le Développement(NDD); Nouvelles Perspectives Afrique(NPA); Organisation Communautairepour la Santé, l’Education et leDéveloppement (OCSED); Organisationpour le Développement Economique et<strong>Social</strong> (ODES); Our Conviction; Projetd’Appui aux Producteurs Agricolesdu Bénin (PAPA BENIN); Rechercheet Action pour la Promotion desInitiatives de Développement Local(RAPIDEL); Recherches, ActionsCommunautaires, Initiatives pour unNouvel Espoir (RACINES); Regardsur notre Développement – NotreSanté la Sécurité Alimentaire de nosPeuples et la Prévention du Sida surles Cotes Africaines (RD-SSAP-PSCA);Réseau d’Intégration des Femmesdes ONG et Associations du Bénin(RIFONGA); Réseau de Développementd’Agriculture Durable (REDAD); Réseaudes Journalistes Economique du Bénin(RESEAU JEB); Réseau Glegbenu; SIDAHONYI; SINAÏ; SIN-DO; Sœurs Unies àl’Œuvre (SUO); SUBLIME EXCELLENCE;Syndicat National des Agents ExpertsMaritimes et Assimilés (SYNAEMAB);Syndicat National des Paysans duBénin (SYNPA-Synergie Paysanne);Union des Femmes Aboméennes pourla Démocratie et le Développement(UFADD); Victory Way; Women in Lawand Development in Africa (WILDAF)• Bolivia:Centro de Estudios para el DesarrolloLaboral y Agrario (CEDLA), cedla@cedla.org, www.cedla.org;Red UNITAS, Fundación ACLO Dir.General, Fundación ACLO reg.Chiquisaca,Fundación ACLO reg. Potosí, FundaciónACLO reg. Tarija, APT, CEDIB, CENDA,CEJIS Santa Cruz, CEJIS Trinidad,CEJIS Riberalta, CEJIS La Paz, Centrode Asesoramiento Multidisciplinario“VICENTE CAÑAS”, CEPROMIN,CEPROMIN Oruro, CER-DET, CESA,CIAC Central, CIAC Tarija, CIAC Potosí,CIAC CINTI, CIAC Tupiza, CIDEM, CIPCANACIONAL Biblioteca (Lola), CIPCA Beni,CIPCA Cochabamba, CIPCA Cordillera,CIPCA La Paz, CIPCA Norte (Riberalta),CIPCA Pando, CIPCA Santa Cruz, D.N.I.Nacional, D.N.I. Cochabamba, D.N.I.La Paz, D.N.I. Oruro, D.N.I. Santa Cruz,DESAFIO, INDICEP, IPTK, IICCA, ISALP,IIADI, KURMI Cochabamba, KURMI<strong>Social</strong> <strong>Watch</strong>V
La Paz, Mujeres en Acción, OASISanta Cruz, OASI Bermejo, PIO XII,PIO XII Oruro, PIO XII Cochabamba,PROMUTAR, PIDEP, QHANA, SEMTA,TEAPRO, YUNTA• Brazil:Coordinating Group: Instituto Brasileirode Análises Sociais e Econômicas(IBASE), observatorio@ibase.org.br, www.ibase.br; Centro Feministade Estudos e Assessoria (Cfemea);Centro de Estudos de Segurança eCidadania da Universidade CandidoMendes (Cesec/Ucam); Criola-Rio;Federação de Órgãos para Assistência<strong>Social</strong> e Educacional (Fase); Institutode Estudos Socioeconômicos (Inesc);Rede Dawn;Ação pela Tributação das TransaçõesEspeculativas em Apoio aos Cidadãos(Attac); ActionAid; Articulação deMulheres Brasileiras (AMB); Articulaçãode Mulheres Negras Brasileiras;Assessoria Jurídica e Estudos de Gênero(Themis); Associação Brasileira deOrganizações Não-Governamentais(Abong); Associação BrasileiraInterdisciplinar de Aids (Abia); CEN/Fórum de Mulheres do Piauí; Centrode Articulação de PopulaçõesMarginalizadas (Ceap); Centro deAtividades Culturais, Econômicas eSociais (Caces); Centro de Cultura LuizFreire; Centro de Defesa da Criança e doAdolescente/Movimento de Emus; Centrode Defesa dos Direitos Humanos BentoRubião; Centro de Estudos de Defesado Negro do Pará; Centro de Mulheresdo Cabo (CMC); Centro de Pesquisa eAssessoria (Esplar); Cidadania EstudoPesquisa Informação e Ação (Cepia);Comissão Pastoral da Terra (CPT/Fian);Comitê Latino-Americano e do Caribepara a Defesa dos Direitos da Mulher(Cladem); Comunicação, Informaçãoe Educação em Gênero (Cemina);Comunidade Baha’í; Conselho Estadualdos Direitos da Mulher (Cedim); FalaPreta; Fórum da Amazônia Oriental(Faor); Fórum de Mulheres de Salvador;Fórum de Mulheres do Rio Grande Norte;Grupo de Mulheres Negras Malunga;Instituto da Mulher Negra (Geledés);Instituto de Estudos da Religião (Iser);Instituto de Estudos, Formação eAssessoria em Estudos Sociais (Pólis);Instituto de Pesquisa e PlanejamentoUrbano e Regional (Ippur/UFRJ);Instituto Patrícia Galvão; Laboratóriode Análises Econômicas, Sociais eEstatísticas das Relações Raciais(LAESER); Movimento Nacional deDireitos Humanos (MNDH); Nova; Redede Desenvolvimento Humano (Redeh);Rede Mulher de Educação; Rede Saúde;Ser Mulher – Centro de Estudos e Açãoda Mulher Urbana e Rural; SOS Corpo;SOS Mata Atlântica• Bulgaria:Bulgarian Gender and ResearchFoundation (BGRF), bgrf@fastbg.net,www.bgrf.org;BGRF Sofia, BGRF Plovdiv, BGRFHaskovo, ATTAC Bulgaria; Bulgarian-European Partnership Association(BEPA); Confederation of IndependentTrade Unions in Bulgaria (KNSB);“Demetra” Association Burgas• Burma:Burma Lawyers’ Council, aunghtoo@csloxinfo.com, www.blc-burma.org• Cambodia:SILAKA, silaka@silaka.org, www.silaka.org;NGO Committee on CEDAW; NGO Forumon Cambodia; Gender and Developmentfor Cambodia GAD/C; Women ForProsperity WFP; Committee for Free andFair Election in Cambodia COMFREL;Cambodia Development ResearchInstitute CDRI; Cambodia Women forPeace and Development CWPD; Neutraland Impartial Committee for Free andFair Election in Cambodia NICFEC• Cameroon:Fédération des Organisations dela Société Civile Camerounaise(FOSCAM), mballamballa2001@yahoo.fr; andelac@yahoo.com, www.foscam.org;COSADER, CSP, INTERACTION, AGAGES-Consult, CRADIF, CRADEC• Canada:The North-South Institute (NSI),jfoster@nsi-ins.ca, www.nsi-ins.ca;Canadian Centre for Policy Alternatives(CCPA), ccpa@policyalternatives.ca,www.policyalternatives.ca; CanadianFeminist Alliance for InternationalAffairs (FAFIA)• Central African Republic:Groupe d’Action de Paix et deFormation pour la Transformation(GAPAFOT), crosiribi@yahoo.fr,gapafot@yahoo.fr, www.grip.org/rafal/membres/gapafot.htm• Chile:Centro de Estudios Nacionales deDesarrollo Alternativo (CENDA), www.cendachile.cl, mpascual@cendachile.cl• Colombia:Corporación Región, coregion@region.org.co, antoja@region.org.co, www.region.org.co;Plataforma Colombiana DerechosHumanos, Democracia y Desarrollo• Congo, Dem. Rep.:Centre Africain d’Echange Culturel,b.schombe@gmail.com, www.societecivile.cd• Costa Rica:Red Costarricense de ControlCiudadano, Centro de Estudiosy Publicaciones Alforja, cep.ciudadania@alforja.or.cr, www.alforja.or.cr/centros/cep/;Agenda Cantonal de Mujeres deDesamparados (ACAMUDE); AgendaPolítica de Mujeres; Asociación Centro deEducación Popular Vecinos; AsociaciónCentroamericana para la Economía,la Salud, y el Ambiente (ASEPESA);Asociación de Profesores/as deSegunda Enseñanza (APSE); AsociaciónMadreselva, Derechos Humanos y SaludIntegral; Asociación para el Desarrollodel Trabajo; Capacitación y AcciónAlternativa (PROCAL); Centro para elDesarrollo y Capacitación en Salud(CEDCAS); Colectiva por el Derechoa Decidir; Comisión de DerechosHumanos (CODEHU); Coordinadorade Organizaciones <strong>Social</strong>es para laDefensa de los Derechos de la Niñez(COSECODENI); Defensa de Niñas yNiños Internacional (DNI); Dirección deExtensión Universitaria de la UniversidadEstatal a Distancia; FederaciónCostarricense de Organizaciones dePersonas con Discapacidad (FECODIS);Fundación Pedagógica Nuestra América;Fundación Promoción; Liga Internacionalde Mujeres por Paz y Libertad (LIMPAL);Movimiento Diversidad; Mujeres Unidasen Salud y Desarrollo (MUSADE); RedesComunitarias de Salud de la Provincia dePuntarenas (Pacífico Central); Serviciode Paz y Justicia (SERPAJ); Sindicatode Empleados/as del Banco Nacional(SEBANA); Unión Nacional de Empleadosde la Caja Costarricense de Seguro<strong>Social</strong> (CCSS, UNDECA)• Cyprus:Centre for the Advancement ofResearch and Development inEducational Technology (CARDET),pambos@cardet.org, www.cardet.org• Czech Republic:Ecumenical Academy Prague, tozicka@ceskoprotichudobe.cz, ekumakad@volny.cz, www.ekumakad.cz;Advanced Development Technologies;Centre of Global Studies; Gender Studies,o.p.s.; Forum 50 %• Ecuador:Centro de Derechos Económicos y<strong>Social</strong>es (CDES), cdes@cdes.org.ec,www.cdes.org.ec• Egypt:The Egyptian Association forCommunity Participation Enhancement(EACPE), cpe_eg@yahoo.com, www.mosharka.org;National Association for Human Rights;New Woman Centre; Research andResource Centre for Human Rights• El Salvador:Asociación Intersectorial para elDesarrollo Económico y el Progreso<strong>Social</strong> (CIDEP), cidep@cidepelsalvador.org, www.cidepelsalvador.org;Comité de Familiares de Víctimas deViolaciones a los Derechos Humanosde El Salvador “Marianela García Villas”(CODEFAM); Fundación Maquilishuat(FUMA); Centro para la Defensa de losDerechos Humanos “Madeleine Lagadec”• Estonia:Estonian Roundtable for DevelopmentCooperation (AKÜ), anu@terveilm.net,info@terveilm.net, www.terveilm.net• European Union:European Solidarity Towards EqualParticipation of People (EUROSTEP),admin@eurostep.org, sstocker@eurostep.org, www.eurostep.org• France:Secours Catholique-Caritas France,michel-roy@secours-catholique.asso.fr, www.secours-catholique.asso.fr; Coordination SUD, europe@coordinationsud.org, www.coordinationsud.org• Germany:<strong>Social</strong> <strong>Watch</strong> Germany, jensmartens@globalpolicy.org, www.social-watch.de;Coordinating Committee: EvangelischerEntwicklungsdienst (EED); Global PolicyForum Europe; Terre des HommesGermany; Werkstatt Ökonomie;WOMNET;Asienhaus; Aktion Brot für die Welt;Deutscher Caritasverband; DGB-Bildungswerk; Diakonisches Werk derEKD; FIAN Sektion der BundesrepublikDeutschland; Friedrich-Ebert-Stiftung;IG Metall; Ökumenischer TrägerkreisArmut/Reichtum – Gerechtigkeit; PaxChristi; Pro Asyl e.V.; ver.di – VereinigteDienstleistungsgewerkschaft; WEED(Weltwirtschaft, Entwicklung undÖkologie. e.V.)• Ghana:Network for Women’s Rights in Ghana(NETRIGHT) – Convenor of <strong>Social</strong> <strong>Watch</strong>Ghana: netright@twnafrica.org;Third World Network Africa (TWN Af),ABANTU for Development (ROWA),Ghana Trades Union Congress (GTUC),General Agricultural Workers’ Unionof GTUC (GAWU), Gender Studies andHuman Rights Documentation Centre(Gender Centre), Women’s Initiative forSelf Empowerment (WISE), The Coalitionon the Women’s Manifesto for Ghana(WMC), Integrated <strong>Social</strong> DevelopmentCentre (ISODEC), Foundation forGrassRoots Initiatives in Africa, Centrefor Democracy and Development(CDD), Civic Response, NationalCoalition Against Water privatisation(NCAP), Institute for DemocraticGovernance (IDEG), Save the ChildrenGhana, Ghana National Association ofTeachers (GNAT), Ghana Associationof the Blind, Consumers Associationof Ghana, Christian Council of Ghana,Ghana Registered Nurses Association(GRNA), University of Ghana StudentsRepresentatives Council, NationalUnion of Ghana Students (NUGS),Ghana Federation of Labour,EcumenicalAssociation for Sustainable Agricultureand Rural Development (ECASARD),Fataale Rural Foundation, Civil SocietyCoalition on Land (CICOL)• Guatemala:CONGCOOP – COORDINACIÓN DEONG Y COOPERATIVAS, congcoop@congcoop.org.gt, www.congcoop.org.gt;Asociación de Desarrollo Defensa delMedio Ambiente y Recursos Naturalesde Guatemala (ACCION ECOLOGICA),Asociación de Desarrollo para AméricaCentral (ADEPAC), Asociación para elDesarrollo Integral (ADI), Alternativa parael Desarrollo Ambiental (APDA), Centrode Documentación y Educación Popular(CIEP), Centro de Investigación, Estudiosy Promoción de Derechos Humanos(CIEPRODH), Coordinadora Cakchiquelde Desarrollo Integral (COKADI),Coordinadora Mesoamericana para el<strong>Social</strong> <strong>Watch</strong> in the worldVI<strong>Social</strong> <strong>Watch</strong>
Desarrollo Integral (COMADEP), ConsejoCristiano de Agencias de Desarrollo(CONCAD), Federación de CooperativasAgrícolas de Guatemala (FEDECOAG),Fundación para el Apoyo Técnico enProyectos (FUNDATEP), Fundación parael Desarrollo Comunitario (FUNDESCO),Asociación (IDEAS), Instituto deEnseñanza para el Desarrollo Sostenible(IEPADES), Proyecto de DesarrolloSantiago (PRODESSA), Servicios yApoyo al Desarrollo de Guatemala(SADEGUA), Servicios de CapacitaciónTécnica (SERCATE)• Honduras:Centro de Estudios de la MujerHonduras (CEM-H), cemhhonduras@yahoo.es, anmfech@yahoo.es, www.cemh.org.hn;Articulación Feminista de Redes Locales;Centro de Estudios y Acción para elDesarrollo de Honduras (CESADEH);Centro de Hondureño de Promoción parael Desarrollo Comunitario (CEHPRODEC);Marcha Mundial de la Mujeres - CapítuloHonduras; Mujeres Sindicalistas(Sindicato de la Educación SIEMPE),Red de Mujeres Colonia Ramon AmayaAmador, Red de Mujeres Colonia CruzRoja, Red de Mujeres del Municipiode La Paz, Red de Mujeres Jovenesdel Distrito Central, Red de MujeresPositivas de Honduras, REDMUNA• Hungary:ATTAC Hungary, benyikmatyas@gmail.com, www.attac.hu;Foundation for the Hungarian <strong>Social</strong>Forum Movements, Hungarian AntifascistLeague, Karl Marx Society, Workers’ FreeTime Association of Ferencvaros• India:National <strong>Social</strong> <strong>Watch</strong> Coalition(NSWC), info@socialwatchindia.com,nationalsocialwatch@yahoo.co.in,www.socialwatchindia.net;Adivasi Sanghamam, Agragati, AsianDevelopment Research Institute,Association for Democratic Reforms(ADR), Centre for Community Economicsand Development Consultants Society(CECOEDECON), Centre for Policy Studies(CPS), Centre for World Solidarity (CWS),Centre for Youth and <strong>Social</strong> Development(CYSD), Community DevelopmentFoundation (CDF), Dalit Bahujan ShramikUnion (DBSU), Ekta Parishad, Forum ofVoluntary Organisations (West Bengal,Kolkata), Gene Campaign, GraminYuva Abhikram (GYA), HOPE, Instituteof Development Studies, Institute forMotivating Self Employment (IMSE),KABIR, Karnataka <strong>Social</strong> <strong>Watch</strong>, Kerala<strong>Social</strong> <strong>Watch</strong>, LJK, Madhya PradeshVoluntary Action Network (MPVAN),Mayaram Surjan Foundation (MSF),National Centre for Advocacy Studies(NCAS), Oxfam Novib, People’s Campaignfor Socio-Economic Equity in Himalayas(PcfSEEiH), Pratham, PRS LegislativeResearch, Rejuvenate India Movement(RIM), RTDC- Voluntary Action Group(RTDC- VAG), SAFDAR, SamarthanCentre for Development Support, SouthAsian Network for <strong>Social</strong> and AgriculturalDevelopment (SANSAD), SPAR, SwarajFoundation, Tamilnadu <strong>Social</strong> <strong>Watch</strong>(TNSW), Uttar Pradesh Voluntary ActionNetwork (UPVAN), Vidyasagar SamajikSuraksha Seva Evam Shodh Sansthan,Vikas Sahyog Pratisthan (VSP), Youth forVoluntary Action (YUVA)• Indonesia:Women Headed HouseholdEmpowerment Program (PEKKA),naniz@centrin.net.id;Alfa – Omega, ASPPUK, FITRA,Formasi Indonesia, Forum KeberdayaanMasyarakat Bengkulu, Forum LSM DIY,Forum Perempuan, Kalimantan, INFID,LP2M Padang, Nurani Perempuan,PCSSF – Papua, PeningkatanKeberdayaan Masyarakat (PKM) Sultra,Perekumpulan Sada Ahmo, PerkumpulanPanca Karsa, PERSEPSI, PKBI Bengkulu,PKM Nasional, Seknas Walhi, SwaraParangpuan Sulut• Iraq:Iraqi Al-Amal Association, baghdad@iraqi-alamal.org, www.iraqi-alamal.org;Iraqi Council for Peace and Solidarity,Iraqi Women Network, REACH org• Italy:<strong>Social</strong> <strong>Watch</strong> Italian Coalition,info@socialwatch.it, jason.nardi@socialwatch.it;Associazione Cristiana LavoratoriItaliani (ACLI); Associazione Ricreativae Culturale Italiana (ARCI); Campagnaper la Riforma della Banca Mondiale;Fondazione Culturale ResponsabilitàEtica; Lunaria; Mani Tese; Sbilanciamoci;Ucodep; World Wildlife Fund Italy(WWF)• Jordan:Jordanian Women Union, jwu@go.com.jo;Jordanian Association to CombatIlliteracy• Kenya:<strong>Social</strong> Development Network(SODNET), sodnet@sodnet.or.ke, www.sodnet.or.ke;Kenya Human Rights Commission(KHRC), Kutuo Cha Sheria, Huruma<strong>Social</strong> Forum, Agakhan Foundation,Centre for Governance and Democracy(CGD), CRADLE, Kenya Organizationfor Environmental Education (KOEE),Sustainability <strong>Watch</strong> – Kenya, Logolink• Korea, Rep.:Citizens’ Coalition for Economic Justice(CCEJ), suyoung@ccej.or.kr, iccej@ccej.or.kr, www.ccej.or.kr• Latvia:MiTi Foundation, miti@telenet.lv• Lebanon:Arab NGO Network for Development(ANND), annd@annd.org, www.annd.org;Ecole <strong>Social</strong>e-USJ; LebaneseDevelopment Forum; Lebanese NGONetwork; Najdeh Association; SecoursPopulaire Libanais• Lithuania:Centre for Civic Initiatives, girvydas@pic.lt, www.pic.lt• Malaysia:Third World Network (TWN), twnet@po.jaring.my, www.twnside.org.sg;Consumers’ Association of Penang,meenaco@pd.jaring.my;Cini Smallholders’ Network; PenangInshore Fishermen Welfare Association;Sahabat Alam Malaysia (Friends of theEarth, Malaysia); Teras PengupayaanMelayu• Malta:Koperazzjoni Internazzjonali (KOPIN),kopin@maltaforum.org, jmsammut@maltanet.net, www.kopin.org• Mauritania:Réseau des organisations de lasociété civile pour la Promotion de laCitoyenneté (RPC), resrpc@gmail.com,dogoli56@yahoo.fr• Mexico:DECA Equipo Pueblo, pueblodip@equipopueblo.org.mx, www.equipopueblo.org.mx; ESCR civilsociety coordination forum (EspacioDesc):DECA Equipo Pueblo; Casa y Ciudadde Coalición Hábitat México; CátedraUNESCO de Derechos Humanos de laUniversidad Nacional Autónoma deMéxico; Centro de Estudios <strong>Social</strong>esy Culturales Antonio de Montesinos(CAM); Centro de Derechos HumanosMiguel Agustín Pro Juárez (PRODH);Centro de Reflexión y Acción Laboral(CEREAL) de Fomento Cultural yEducativo; Comisión Mexicana deDefensa y Promoción de los DerechosHumanos (CMDPDH); Defensoría delDerecho a la Salud Chiapas; FIANSección México, Instituto Mexicano parael Desarrollo Comunitario (IMDEC) -Guadalajara; Liga Mexicana de Defensade Derechos Humanos (LIMEDDH);Oficina Regional para América Latina yel Caribe de la Coalición Internacionaldel Hábitat; Radar-Colectivo de EstudiosAlternativos en Derecho• Moldova:National Women’s Studies andInformation Centre “Partnership forDevelopment”, cpd@progen.md, www.progen.md• Mongolia:Democracy Education Centre (DEMO),demo@magicnet.mn, www.demo.org.mn• Morocco:Espace Associatif, contact@espaceassociatif.ma,www.espace-associatif.ma;Association Démocratique des Femmesdu Maroc (ADFM); AssociationMarocaine des Droits Humains (AMDH);Organisation Marocaine des DroitsHumains (OMDH); Union Marocainedu Travail (UMT); TransparencyMaroc; Réseau pour le droit à la santé;Association de Développement LocalRabat (ADL); Association Professionnelledes Tapissiers; Association ChantierJeunesse; Association Marocainepour l’Education de la Jeunesse;Confédération Démocratique du Travail;Organisation Démocratique du Travail;Forum des Economistes Marocains;Centre d’Etudes et de Recherches AzizBlal (CERAB); Coordination contre lacherté de la vie; Said SAADI; AbderrahimDIAB• Mozambique:Liga Moçambicana dos DireitosHumanos, cnesta@gmail.com;Grupo Moçambicano da Divida;Associacão dos ParlamentaresEuropeus para Africa (AWEPA); Rede deOrganizações Contra Sida (MONASO);Sociedade Aberta; Jornalistas Para osDireitos Humanos• Nepal:Rural Reconstruction Nepal (RRN),akarki@rrn.org.np, sarba@rrn.org.np,prajeena@rrn.org.np, www.rrn.org.np;National Alliance for Human Rights and<strong>Social</strong> Justice (the national networkof more than 1,000 human rightsorganisations); Child Workers ConcernCentre (CWIN); NGO Federation of Nepal(the national network of more than 4,500NGOs); General Federation of NepaleseTrade Union; South Asia Alliance forPoverty Eradication (SAAPE); LDC<strong>Watch</strong>; Jagaran Nepal; Children-Womenin <strong>Social</strong> Service and Human Rights(CWISH)• Netherlands:OXFAM-NOVIB Netherlands, sita.dewkalie@oxfamnovib.nl, www.oxfamnovib.nl; National Committeefor International Cooperation andSustainable Development (NCDO)• Nicaragua:Coordinadora Civil (CC), mquintana@ccer.org.ni, fmoreira@ccer.org.ni,www.ccer.org.ni;Acción Ciudadana; Asociación deMujeres Nicaragüenses Luisa AmandaEspinoza (AMNLAE); Consejo dela Juventud de Nicaragua (CJN);Coordinadora de ONGs que trabajan conla Niñez y la Adolescencia (CODENI);Federación de Organismos NoGubernamentales (FONG); Federaciónde Organizaciones por la Rehabilitacióne Integración (FECONORI); Foro deEducación y Desarrollo Humano (FEDH);Mesa Agropecuaria y Forestal (MAF);Movimiento Comunal Nicaragüense(MCN); Movimiento PedagógicoNicaragüense (MPN); Red de Mujerescontra la Violencia; Red Nicaragüense deComercio Comunitario (RENICC); RedNicaragüense por la Democracia y elDesarrollo Local; Red de Vivienda; UniónNacional de Agricultores y Ganaderos(UNAG)• Nigeria:<strong>Social</strong> <strong>Watch</strong> Nigeria: Socio EconomicRights Initiative (SRI), sri@hyperia.com, seri@hyperia.com, onyegur@hyperia.com, onyegur@yahoo.com;Africa Youth Growth Foundation;Campaign for Child’s Right and Survival(CCRS); Care and Action Research(CaRE-NGO); Chiamaka CooperativeUnion; Christian Foundation for<strong>Social</strong> Justice & Equity; CommunityConservation Initiative; Community<strong>Social</strong> <strong>Watch</strong>VII
Health and Development Advisory Trust(COHDAT); Community Life AdvancementProject (CLAP); Conscientizing againstInjustices and Violence (CAN); Credit &Thrift Society; Daughter of Virtue andEmpowerment Initiatives (DOVENET);Destiny Daughters of Nigeria (DEDAN);Federated Ebonyi Women Association(FEWA); Friendly Environment andHuman Development Foundation(FEHDF); Initiative Development Now(IDN); International Centre for YouthDevelopment (ICYD); Kanewa WomenGroup; Life Intervention Project(LIP); Methodist Diocese of Enugu;Mindset and Community AdvancementOperations (MICADO); National Councilof Women Societies (NCWS Abia StateBranch); National Productivity CentreCoop; Natural Resources DevelopmentMotivators; Nigerian Concerned Groupfor Environment, Population andDevelopment; NOB Movement for theLess privileged; Oasis of the Elderly, Youth& Family Development (OEYFAD); OsaFoundation; Otia Development Foundation;People’s Rights Organization (PRO); RuralLife Improvement Foundation (RULIF);Safe Motherhood & Child SurvivalOrganization of Africa (SMACS); SafeMotherhood Ladies Association (SMLAS);SEDAFRICA; Survival Foundation Network(SUFON); Volunteer Societies of NigeriaOrganization on AIDS (VOSONOA);Women Empowerment and PovertyAlleviation (WEPA); Women in Nigeria(WIN); Women in Nigeria (WIN), ImoState; Women of Virtue; Women Survivaland Development Association; WomenUnited for Economic Empowerment(WUEE); Youth Resource DevelopmentEducation and Leadership Center forAfrica (YORDEL AFRICA)• Pakistan:Civil Society Support Programme(CSSP), csspsindh@yahoo.com, soonharani@yahoo.com;Indus Development Foundation,qureshiaijaz@yahoo.com• Palestine:Palestinian NGO Network (PNGO),j_allam@hotmail.com;Arab Association for Human Rights,Bisan Center for Research andDevelopment• Paraguay:Decidamos, Campaña por la ExpresiónCiudadana, direccion@decidamos.org.py, www.decidamos.org.py;Educación Comunicación y TecnologíaAlternativa (BASE - ECTA); Centro deDocumentación y Estudios (CDE);Centro de Estudios Paraguayos AntonioGuasch (CEPAG); FE Y ALEGRÍAMovimiento de Educación PopularIntegral; ÑEMONGUETARA Programade Educación y Comunicación Popular;Servicio de Educación y Apoyo <strong>Social</strong>(SEAS - AR); Servicio de EducaciónPopular (SEDUPO); Servicio Paz yJusticia Paraguay (SERPAJ - PY)• Peru:Comité de Iniciativa, Grupo de AcciónInternacional de la ConferenciaNacional sobre Desarrollo <strong>Social</strong>(CONADES), cedep@cedepperu.org,hecbejar@yahoo.com, www.conades.org.pe;Asociación Nacional de Centros deInvestigación, Promoción <strong>Social</strong> yDesarrollo; Centro de Estudios para elDesarrollo y la Participación (CEDEP);Grupo de Economía Solidaria; GrupoGénero y Economía; PlataformaInteramericana de Derechos Humanos,Comité Perú; Red Jubileo 2000• Philippines:<strong>Social</strong> <strong>Watch</strong> Philippines, sowat@info.com.ph;Action for Economic Reforms (AER);ALAGAD-Mindanao; Albay NGO-PONetwork; Alliance of CommunityDevelopment Advocate; Alliance ofCommunity Development AdvocatesProvincial NGO Federation of NuevaVizcaya; Alliance of ConcernedTeachers(ACT); Alternate Forum forResearch in Mindanao (AFRIM);Alternative Community-CenteredOrganization for Rural Development(ACCORD); Asian NGO Coalition forAgrarian Reform and Rural Development(ANGOC); Bantay Katilingban; BanwangTuburan; BAPAKA; Bataan NGO-PONetwork; Bisaya Alliance Growth andSustainable Sugar Estate (BAGASSE);Bohol Alliance of Non-GovernmentalOrganizations (BANGON); Broad Initiativefor Negros Development (BIND);CARET Inc.; Caucus of DevelopmentNGO Networks (CODENGO); Caucuson Poverty Reduction; CCAGG;CCF Reconciliation Center; Centerfor Migrant Advocacy Philippines(CMA - Phils.); Center for Policy andExecutive Development (CPED); CentroSaka, Inc.; Civil Society Network forEducation Reforms (E-Net); CMLC;COMPAX - Cotabato; Co-Multiversity;Convergence; Daluyong Ugnayan ngmga Kababaihan (National Federationof Women’s Group); DAWN-SoutheastAsia / Women & Gender Institute;Earth Savers Movement; EcowasteCoalition; ELAC - Cebu; EmancipatoryMovement for People’s Empowerment;Focus on the Global South – PhilippineProgram; Freedom from Debt Coalition(FDC); Global Call to Action AgainstPoverty – Philippines; Health Carewithout Harm; IBASSMADC; IloiloCode of NGOs; Indicative Medicine forAlternative Health Care System Phils.,Inc. (INAM); Initiatives for InternationalDialogue (IID); Institute for PopularDemocracy (IPD); Institute for <strong>Social</strong>Studies and Action (ISSA); Instituteof Public Health Management (IPHM);Integral Development Services, Phils.(IDS-Phils); Jaro Archdiocesan <strong>Social</strong>Action Center; Jihad Al Akbar; Justicefor Peace and Integrity of Creation-Integrated Development Center (JPIC-IDC); KAMAM; Kaisampalad; Kalipunanng Maraming Tinig ng ManggagawangInpormal (KATINIG); KasanyaganFoundation Inc. (KFI); KinayahanFoundation; Kitanglad Integrated NGO’s(KIN); Konpederasyon ng mga NoboEsihano para sa Kalikasan at KaayusangPanlipunan; La Liga Policy Institute;Labing Kubos Foundation, Inc.; LubongSalakniban Movement; Management& Organizational Development forEmpowerment (MODE); MedicalAction Group (MAG); Micah Challenge;Midsayap Consortium of NGOs andPOs; Mindanao Land Foundation(MLF); Mindanawon Initiative forCultural Dialogue; Multi-sectoralorganization of CSOs for environmentaland development in Marinduque(KASAMAKAPA); Nagkakaisang Ugnayanng mga Manggagawa at Magsasaka saNiyugan (NIUGAN); National Councilof Churches in the Philippines(NCCP);NATRIPAL; NEGRONET; Negros OrientalCenter for People’s Empowerment(NOCFED); NGO-PO Network of Quezon;NGO-PO of Tabaco City; Oxfam GreatBritain; Paghiliusa sa Paghidaet-Negros;Panaghugpong sa Gagmayng BayanihangGrupo sa Oriental Negros (PAGBAGO);Participatory Research Organization ofCommunities and Education towardsStruggle for Self Reliance (PROCESSBohol); Partido Kalikasan; Partnershipfor Clean Air; Peace AdvocatesNetwork; Philippine Alliance of HumanRights Advocates (PAHRA); PhilippineCenter for Investigative Journalism(PCIJ); Philippine Human Rights InfoCenter; Philippine Network of RuralDevelopment Institutes (PhilNet-RDI); Philippine Partnership for theDevelopment of Human Resources inRural Areas -Davao; Philippine RuralReconstruction Movement (PRRM);Phil-Net Visayas; Piglas Kababaihan;PIPULI Foundation, Inc.; Positive ActionFoundation Philippines, Inc. (PAFPI);Public Services Labor IndependentConfederation (PSLink); Research andCommunication for Justice and Peace;Rice <strong>Watch</strong> and Action Network (RWAN);Rural Development Institute of SultanKudarat (RDISK); Rural Enlightenment &Accretion in Philippine Society (REAPS);SAMAPACO; SARILAYA; Save the IfugaoTerraces Movement (SITMO); SillimanUniversity; <strong>Social</strong> Action Center ofMalaybalay Bukidnon; Southeast AsiaRegional Initiatives for CommunityEmpowerment (SEARICE); StudentCouncil Alliance of the Philippines(SCAP); Sustainability <strong>Watch</strong>; TambuyogDevelopment Center; Tanggol Kalikasan;Tarbilang Foundation; Task ForceDetainees of the Philippines (TFDP);Tebtebba Foundation, Inc.; TechnicalAssistance Center for the Development ofRural and Urban Poor (TACDRUP); TheCommunity Advocates of Cotabato; ThirdWorld Studies Center (TWSC); U.S. Savethe Children; Unity for the Advancementof Sus Dev and Good Governance;Unlad Kabayan; UPLift Philippines;Womanhealth Philippines; Youth AgainstDebt (YAD)• Poland:KARAT Coalition, secretariat@karat.org.pl, www.karat.org; The Networkof East-West Women (NEWW-Polska),neww@neww.org.pl, www.neww.org.pl• Portugal:Oikos - Cooperação e Desenvolvimento,jjfernandes@oikos.pt, catarina_cordas@hotmail.com, www.oikos.pt;Portuguese Network of LocalDevelopment Associations (ANIMAR);Portuguese National Platform ofDevelopment NGOs (Plataforma Nacionalde ONGD)• Romania:Civil Society Development Foundation(FDSC), fdsc@fdsc.ro, valentin.burada@fdsc.ro, www.fdsc.ro;Asociatia pentru Dezvoltarea Organizatiei(SAH ROM); Asociatia Specialistilor inResurse Umane (AUR); ConfederatiaCaritas Romania• Senegal:Association pour le DéveloppementÉconomique <strong>Social</strong> Environnemental duNord (ADESEN), adesen@yahoo.com;ACAPES; ENDA Tiers-Monde• Serbia:Association Technology and Society,dana@eunet.rs, mirad@eunet.rs,www.eccf.su.ac.yu/tid/english.htm;Victimology Society of Serbia vds@eunet.rs, www.vds.org.yu, Group 484ms@grupa484.org.rs www.grupa484.org.rs• Slovakia:Slovak-European Cultural Association(FEMAN), daniel.klimovsky@upjs.sk;University of Pavol Jozef Šafárik inKošice• Slovenia:Humanitas, info@humanitas.si, www.humanitas.si• Somalia:Somali Organization for CommunityDevelopment Activities (SOCDA);Afgoi Agricultural DevelopmentOrganization (AADO); Afgoi Center forEducation and Community Development(ACECOD); Banadir University; BaniadamRelief and Development Organization;Civil Society in Action; Coalition ofGrassroots Women Organization(COGWO); Community Organizationfor Relief and Development (CORD);Dr. Ismael Jumale Human RightsOrganization (DIJHRO); Elman Peaceand Human Rights; Hamar UniversityIslamic University; HINNA; Horn Relief;Humanitarian Agency for Relief &Development (HARDO); Iida WomenDevelopment Organization; IimanWomen Development Organization;Indian Ocean University; Iniskoy HumanRights Organization; Isha HumanRights Organization; Kalsan VoluntaryOrganization for Women (Kalsan);Mogadishu Standard Newspaper(Independent newspaper); MogadishuUniversity; Muslim Aid; Network forSomali NGOs (NETSON); Network inSomalia (FPENS); North and SouthSomali Women Widows Group; PeaceAction Society for Somalia (PASS);Peace and Human Rights Network(PHRN); Pen Network; Private FormalEducation; Resource ManagementSomali Network (RMSN); SaacidVoluntary Organization; School<strong>Social</strong> <strong>Watch</strong> in the world VIII <strong>Social</strong> <strong>Watch</strong>
Association for Formal Education(SAFE); Sifa Women VoluntaryOrganization; SIRWA; Somali BusinessWomen Association (SBWA); SomaliConsultant Association (SOCA);Somali Engineering Union; SomaliHealth Care Organization (SHCO);Somali Independent NewspaperAssociation (SOINA); Somali Instituteof Management & AdministrationDevelopment (SIMAD); SomaliJournalists Network (SOJON);Somali Law Society; Somali NationalNetwork of AIDS Service Organization(SONNASO); Somali Peaceline; SomaliRehabilitation Relief and DevelopmentOrganization (SORRDO); Somali ScoutOrganization (SSO); Somali WomenJournalist (SOWJA); Somali YoungWomen Activist (SOYWA); SomaliYouth Council; Somalink Relief andDevelopment Organization; SSWC;Subiye Development VolunteerOrganization; Tadamun <strong>Social</strong> Society(TASS); Talowadaag Network; UmmuRuman Women Organization; UmulKheyr; Wanle Weyn Human Rights andDevelopment Organization; We AreWomen Activists (WAWA); WomenCare Organization (WOCA); Youth AntiHIV/AIDS (YAA); Youth Movement forDemocracy• Spain:Plataforma 2015 y más,coordinacion@2015ymas.org,www.2015ymas.org; Intermón Oxfam,info@intermonoxfam.org, www.intermonoxfam.org;ACSUR-Las Segovias; Arquitectos SinFronteras; Asamblea de Cooperaciónpor la Paz; Associació Catalana perla Pau, Comisión Española de Ayudaal Refugiado (CEAR); Cooperacció;Economistas sin Fronteras; FundaciónCEAR; Instituto de Estudios Políticospara América Latina y África (IEPALA);Instituto de Promoción y Apoyo alDesarrollo (IPADE); Instituto Sindicalde Cooperación y Desarrollo (ISCOD);Movimiento por la Paz, el Desarme y laLibertad (MPDL); Observatorio DESC;Paz y Solidaridad; PTM-mundubat;Solidaridad Internacional• Sri Lanka:Movement for National Land andAgricultural Reform (MONLAR),monlar@sltnet.lk, www.geocities.com/monlarslk;Law & Society Trust (LST)• Sudan:National Civic Forum, h_abdelati@hotmail.com, hassan.abdelati@usa.net;Al Amal <strong>Social</strong> Association• Switzerland:Alliance Sud - Swiss Alliance ofDevelopment Organisations, pepo.hofstetter@alliancesud.ch, www.alliancesud.ch;Bread for All; Caritas; Catholic LentenFund; Helvetas; Interchurch Aid; Swissaid• Syria:Syrian Environment Association (SEA),sea-sy@scs-net.org, www.sea-sy.org• Tanzania:Southern Africa Human Rights NGONetwork (SAHRiNGON)-TanzaniaChapter, sahringontz@yahoo.com,rshilamba@yahoo.com;The Legal and Human Rights Centre(LHRC), National Legal Assistance(NOLA), Taaluma Women Group(TWG), Journalists’ EnvironmentalAssociation of Tanzania (JET), Womenin Law and Development in Africa(WILDAF), Women’s Legal Aid Centre(WLAC), Children Education Society(CHESO), Disabled Organization forLegal Affairs and <strong>Social</strong> EconomicDevelopment (DOLASED), ChamaCha Walemavu Tanzania (CHAWATA),Action for Relief and DevelopmentAssistance (AFREDA), Environmentaland Human Rights Organization(ENVIHURO), Tanzania Volunteer WomenAssociation (TAWOVA), Associationfor the Prevention of Torture (APT),Tanzania Media Women’s Association(TAMWA), Tanzania Gender NetworkingProgramme (TGNP), Tanzania HomeEconomics Association (TAHEA),Environmental Human Rights Care andGender Organization (ENVIROCARE),Women Advancement Trust (WAT),United Nations Association of Tanzania(UNA-Tanzania), Women’s Research andDocumentation Programme, TanzaniaYouth Awareness Trust Fund (TAYOA),Walio Katika Mapambano Na AidsTanzania (WAMATA), Development Peaceand Human Rights Centre (DPHRC),Lumbesa Group, Economic, Healthand <strong>Social</strong> Development Association,Hakielimu, Tanzania Women and ChildrenWelfare Centre (TWCWC), TanzaniaWomen Lawyers’ Association (TAWLA),The Leadership Forum, The HumanRights Centre for Disabled Persons(HRCDP), PCNW, Environmental andHuman Rights Organization (ENVIHURO),Upendo Women’s Group, TanzaniaYouth Association, Campaign for GoodGovernance (CGG), Centre for HumanRights Promotion (CHRP), Kagera Groupfor Development (KADGE), WomenEconomic Group Co-ordinating Council,Tanzania Mineworkers DevelopmentOrganization (TMDO), Mbozi Biogas andEnvironmental Protection Association(MBEPA), Kilimanjaro WomenInformation Exchange and ConsultancyCompany Limited (KWIECO), Centrefor <strong>Social</strong> Ethics, Morogoro ParelegalCentre, Mwanza Women DevelopmentAssociation (MWDA), Kivulini Women’sRights Organization, Kuleana Centerfor Children’s Rights Profile, YouthPartnership Countrywide (YPC), WazeeNa Ukimwi Singida (WAUSI), ParalegalAid Scheme for Women and Children,Mategemeo Group Mlalo (MGM), TangaAids Working Group (TAWG), ZanzibarLegal Services Centre, Umoja WaWalemavu Zanzibar• Thailand:<strong>Social</strong> Agenda Working Group (<strong>Social</strong><strong>Watch</strong>, Thailand), suiranee@yahoo.com;Arom Pongpangan Foundation;Centre for <strong>Social</strong> Development Study;Chulalongkorn University ResearchInstitute; Drug Study Group; Focus onthe Global South Thailand; Foundationfor Children’s Development; Foundationfor Women; Peace and Conflict StudyCentre; Peace and Culture Foundation;Political Economy Centre; ThaiDevelopment Support Committee;Women Network for the Advancementand Peace• Tunisia:Tunisian League for Human Rights,sjourshi@voila.fr; Tunisian Associationfor Democratic Women, bochra.bhhavocate@voila.fr• Uganda:Development Network of IndigenousVoluntary Association (DENIVA);Acoke Rural Development Initiatives(ARDI); Action Aid Uganda; Action forDevelopment (ACFODE); Action for SlumHealth and Development; Action forYouth Organization Uganda; Action Linefor Development (ALFORD); Action toPositive Change on People withDisabilities; Adult Education Centre;Adyaka Orphan Development Initiatives(AODI); Africa 2000 Network Uganda;Africa for Christ International; AfricanChild Care Foundation; AfricanInternational Christian Ministry (AICM);Agency for Promoting SustainableDevelopment Initiative (ASDI);Agriculture and Rural DevelopmentProgramme; Akiika Embuga Women’sSelf Help Association; Akwata EmpolaWomen Development Association; AnakaFoundation Gulu; Anthony YouthDevelopment Association (AYDA); AntiCorruption Coalition Uganda (ACCU);Arua District Farmers Association; AruaDistrict Indigenous NGO Network(ADINGON); Awake Bushenyi; BagyaBasaaga Orange Freshed Potato Growersand Processors (BBOFPGAP); BahaiFaith International National SpiritualAssembly of The Bahai of Uganda;Bakatawamu Information andDevelopment Empowerment (BIDE);Bakonzo Culture Association; BalyalwobaRehabilitation and Development Agency(BARDEA); Banyo DevelopmentFoundation; Basic Needs UK in Uganda;Bedmot Child and Family Programme;Benevolent Support Child ProgrammeKampala; Bidhompola CommunityDevelopment Association Mayuge(BICODA); Bileafe Rural DevelopmentAssociation (Arua); Blessings ChristianRehab Ministries; Blind But Able SelfHelp Project; Budde Women’sDevelopment Association; BudongoForest Community DevelopmentOrganization (BUCODO); Bugiri DistrictLiteracy and Adult Education Network(BLAEN); Bugisu Civil Society Forum(BUCINET); Build Up Again Ex PrisonersAssociation (BAP); Bukogolwa Widowsand Orphans Care Centre; BundibugyoAssociation of the Disabled; BundibugyoDistrict NGOs/CBs Forum; BunyoroYouth Development Network; BushenyiDistrict Civil Society Organization Forum(BUDCOF); Buso Foundation; BuwagiRural Development Foundation; CeazariaComplex Public Library; Centre forCommunity Enterprise; Centre forConflict Resolution (CECORE); Centre forEnvironmental Technology and RuralDevelopment (CETRUD); Centre forPeace Research (CPR); Centre for theIntegrated Development; Child AidInternational Lyantonde; ChristianChildren’s Network International;Community Action for RuralDevelopment Association (CARD);Community Based Rehabilitation Alliance(COMBRA); Community DevelopmentResource Network (CDRN); CommunityEffort for Women Development Concerns(CEWDCO); Community EmpowermentPartnership; Community Health andDevelopment Association-Uganda(COHEDA-Uganda); CommunityIntegrated Development Initiatives;Concern for the Girl Child; CulturalAgency for <strong>Social</strong> and EnvironmentDevelopment (CASRDEN); Developmentand Rehabilitation Organization (DABO);Development Training and ResearchCentre (DETREC); Ebnezer RuralMinistries Uganda (ERIMU); Engabu ZaTooro Tooro Youth Platform for Action;Enhance Abilities Initiatives (EAI); FirstAfrican Bicycle Information Office(Fabio); Forum for Women inDemocracy; Foundation for Developmentand International Links (FODILI);Foundation for Human Rights Initiatives(FHRI); Foundation for RuralDevelopment (FORUD); Foundation forRural/Urban Poverty Alleviation(FORUPA); Foundation for Urban andRural Advancement (FURA); Foundationfor Young Orphans (FYO); Fountain ofHope Ministry Pader; Friends in NeedAssociation (FINA); Friends of OrphansPader; Friends Orphanage School;General Community DevelopmentAssociation; Genesis MicrofinanceBureaux Ltd (Genefina); GermanDevelopment Services; Goal Uganda;God’s Mercy Uganda (Traditional Herbs);Good Hope Foundation for RuralDevelopment; Gospel Pace-SettingMinistries (GPM); Grass Root WomenDevelopment Organization (GWODEO);Green Pasture Christian Outreach;Gukwatamanzi Farmers Association Ltd;Gulu Community Based ManagementNetwork Project (GCBMNT); GuluDistrict NGO Forum (GDNF); GuluFoundation Community BasedRehabilitation; Gulu WomenEmpowerment Network; GwosusaEmwanyi Women’s Association; Habitatfor Humanity; Hamukungu WomenAssociation Group; Hewasa Healththrough Water and SanitationProgramme; HIV/AIDS Care and SupportProject; Holistic Services for Uganda;Hope after Rape; Hope Association;Huys Link Community Initiative; IbandaRural Development Promoters; IbandaZero Grazing Association (IZGA); IgangaDistrict NGO/CBO Forum; Ikongo RuralDevelopment Association; Initiative forWomen Equation (IWE); Integrated Careand Development Initiative; IntegratedEnvironmental Defence (INED);<strong>Social</strong> <strong>Watch</strong>IX
Integrated Family Development Initiatives (IFDI);Integrated Rural Development Initiatives; InternationalAnti Corruption Theatre Movement; International ChildWelfare Organization; International Institute for Culturaland Ethical Development; Jamii Ya Kupatanisha; JinjaDiocesan Coordinating Organization (JIDDECO); JinjaMothers’ Savings and Credit Scheme; Joint Energy andEnvironment Project (JEEP); Joint Energy to Save theEnvironment (JESE); Jonam Development Foundation;Kabaale District Civil Society Organizations Network;Kabale Civil Society Forum (KACSOF); Kabale FarmersNetworking Association; Kabarole Intergrated Women’sEffort in Development (KIWED); Kabarole NGOs andCBOs Association (KANCA); Kabarole Research andResource Centre (KRC); Kabbo Women’s AssistanceFinance and Project; Kabongo Women’s Group / DodothCommunity Based Development Association; KakuutoNetwork of Indigenous Voluntary Associations(KANIVA); Kamengo Business Institute; KamuliLutheran Church; Kamuli Lutheran Church HIV/AIDSCare and Support Project; Kamuli Network of NGOs(KANENGO); Kamwenge Bee Keepers Cooperative;Kamwenge District Indigenous Voluntary DevelopmentOrganizations Network (KADIVDO); Kanyenze RuralWomen’s Organization; Kapchorwa Civil SocietyOrganizations Alliances (KACSOA); Karambi Women’sAssociation; Kasangati Orphans Fund Society; KasawoNamuganga Development Association; KaserengetheRural Development Initiative Women Group; KaseseDistrict Development Network; Kasilo Christian YouthAssociation; Katakwi Evangakinos People Living withAIDS (HIV/AIDS (KEPLWA); Kayunga District FarmersAssociation; Kibaale District Civil Society Network;Kibuku Multipurpose Cooperative Society Ltd;Kicwamba Nyankuku Rural Development; Kigezi HealthCare Foundation; Kigulu Development Group; KiimaFoods; Kiira Adult Education Association; KinawatakaWomen Initiative; Kinyamaseke United Women Club;Koboko Civil Society Network; Koka WomenDevelopment Programme; Kumi Network ofDevelopment Organizations; Kumi PentecostalAssemblies of God; Kyakulumbye DevelopmentFoundation; Kyebando Associates Club; Lira CommunityDevelopment Association; Literacy and Adult BasicEducation; Little Sister of St. Francis; MakindyeMultipurpose Youth and Vendors Group-CBO; MalukhuYouth Development Foundation; Masindi DistrictEducation Network; Matilong Youth Mixed FarmingOrganization; Mbarara District Civil SocietyOrganizations Forum; Mengo Child and FamilyDevelopment Project Ltd; Mpigi Widows Entrepreneurs(MWEA); Mpigi Women Development Trust (MWODET);Ms Uganda; Mt. Rwenzori Initiative for RuralDevelopment; Mukono Multipurpose Youth Organization(MUMYO); Musingi Rural Development Association;Nabinyonyi Development Group; Namutumba DistrictCivil Societies Network; Nangabo Environment Initiative(NEI); National Community of Women Living with HIV/AIDS (Nacwola) Kamuli; National Foundation for HumanRights in Uganda (FHRI); National Union of DisabledPersons in Uganda (NUDIPU); National WomenAssociation for <strong>Social</strong> & Education Advancement;Ndiima Cares Association (NDICA); Network of UgandanResearchers and Research Users (NURRU); NgeyeDevelopment Initiative (NDI); Nile Vocational Institute(NVI); Northern Uganda Rural Association; NorthernUganda Vision Association; Ntulume Village Women’sAssociation; Ntungamo District Farmers Association;Ntungamo District Local Government CBO; NtungamoDistrict NGOs/CBOs Forum; Ntungamo Rural and UrbanDevelopment Foundation; Nyabubare United Group;Nyio Development Association; Organization for RuralDevelopment; Osia Integrated Farmers’ Cooperative;Palissa Development Initiative; Pallisa District NGOs/CBOs Network; Pamo Volunteers; Participatory Initiativefor Real Development (PIRD); Participatory Rural Actionfor Development; Peace Foundation; Plan InternationalKampala; Poverty Alert and Community DevelopmentOrganization (PACDO); Poverty Alleviation Credit Trust;Prayer Palace Christian Centre Kibuye; ProtectingFamilies against HIV/AIDS (PREFA); Rakai ChildrenTrust; Rakai Community Strategy for Development(RUCOSDE); Redeemed Bible Way Church Organization;Riamiriam Moroto Nakapiripiriti Civil Society Network;Ruhama Bee Keeping Group; Rural Initiative forCommunity Empowerment; Rural InitiativesDevelopment Foundation (RIDF); Rural Productivity forDevelopment Africa; Rushenyi Youth Drama Actors;Rushooka Orphans Education Centre; RwenzoriAgriculture Diversification Promotion Organization;Rwenzori Information Centre (RUCNET); RwenzoriOrganization for Children Living Under DifficultCircumstances; Rwenzori Peace Bridge ofReconciliation; Rwoho Bakyara Twimusyane Tukore;Samaritan Partners for Development; Saving and CreditSociety; Single Parents Association of Uganda; SmallWorld Counselling Health Education Association; SorotiDistrict Association of NGOs/CBOs Network; SorotiRural Development Agency; South Eastern PrivateSector Promotion Enterprise Limited; SpiritualAssembly of Uganda; St. Francis Tailoring HelperProgramme; Sustainable Agriculture Society of Kasese;Sustainable Agriculture Trainers Network; Talent CallsClub; Tecwaa Child and Family Project Bweyale-Masindi;Temele Development Organization (TEMEDO); The AgedFamily Uganda; The Forestry College at Nyabyeya; TheModern Campaign against Illiteracy; The Organizationfor the Emancipation of the Rural Poor; The UgandaReach the Aged Association; The United OrphansAssociation; The Youth Organization for CreatingEmployment; Tirinyi Welfare Circle; Tororo Civil SocietyNetwork; Tororo District NGO Forum; Trinita RuralIntegrated Community Development Association;Tripartite Training Programme; Triple B KaseseCommunity; Tukole Women’s Group; Tusubira Healthand Research Foundation; Twezimbe Rural DevelopmentOrganization; Uganda Change Agent Association;Uganda Christian Prisoners Aid Foundation; UgandaChurch Women Development Centre; Uganda Coalitionfor Crisis Prevention (UCCP); Uganda DevelopmentInitiatives Foundation; Uganda Environmental EducationFoundation; Uganda Environmental Protection Forum(UEPF); Uganda Gender Resource Centre; UgandaHuman Rights Activists; Uganda Indigenous Women’sClub; Uganda Joint Action for Adult Education; UgandaMartyrs Parish; Uganda Media Women’s Association;Uganda Mid Land Multipurpose DevelopmentAssociation; Uganda Mid Land MultipurposeDevelopment Foundation; Uganda National Action onPhysical Disabilities (UNAPD); Uganda Orphans RuralDevelopment Programme; Uganda ProjectImplementation and Management Centre (UPIMAC);Uganda Restoration Gospel Churches Organization;Uganda Rural Development and Training Programme;Uganda Rural Self Help Development Promotion(SEDEP); Uganda Support for Children and WomenOrganization; Uganda Women Foundation Fund; UgandaWomen Tree Planting Movement; Uganda Women’sFinance and Credit Trust Limited; Uganda Women’sWelfare Association; Uganda Women’s Effort to SaveOrphans; Uganda Young Men’s Christian Association;Uganda Youth Anti AIDS Association; UN Association ofUganda; United African Orphanage Foundation; UnitedHumanitarian Development Association; UnitedOrphanage School; Urban Rural EnvironmentDevelopment Programme; Victoria Grass RootFoundation for Development; Voluntary Service TeamMubende; Voluntary Services Overseas; VoluntaryServices Trust Team; Volunteer Efforts for DevelopmentConcerns; Vredeseilanden Coopibo-Uganda; WakisoEnvironment Conservation and Development Initiative;Wera Development Association; Women Alliance andChildren Affairs; Women Together for Development;World Learning Inc; World Light Caring MissionInitiative; Youth Alliance in Karamoja (YAK); YouthDevelopment Foundation; Youth DevelopmentOrganization - Arua; Youth Initiative for DevelopmentAssociation; Youth Organization for <strong>Social</strong> Educationand Development• Ukraine:Liberal Society Institute, okisselyova@voliacable.com; okisselyova@yahoo.com• United Kingdom:Oxfam GB for UK Coalition against Poverty, eileen.devaney@ukcap.org, cecily.craven@ukcap.org, www.oxfam.org.uk;Anti Poverty Network Cymru (APNC), Wales; EuropeanAnti Poverty Network, England; Northern IrelandAnti Poverty Network (NIAPN); Poverty Alliance(PA),Scotland; Trades Union Congress of the UK (TUC)• United States of America:Institute for Agriculture and Trade Policy (IATP), iatp@iatp.org, aspieldoch@iatp.org, www.iatp.org;Action Aid USA; Center of Concern; Global-Local LinksProject; Hunger Notes• Uruguay:<strong>Social</strong> <strong>Watch</strong> Secretariat, socwatch@socialwatch.org,www.socialwatch.org; CNS Mujeres por Democracia,Equidad y Ciudadanía; Instituto del Tercer Mundo• Venezuela:PROVEA, provea@derechos.org.ve, www.derechos.org.ve• Vietnam:VUFO-NGO Resource Centre (NGO RC), director@ngocentre.org.vn, www.ngocentre.org.vn• Yemen:Human Rights Information and Training Center,hritc@y.net.ye• Zambia:Women for Change (WFC), wfc@zamnet.zm, www.wfc.org.zmX<strong>Social</strong> <strong>Watch</strong>
<strong>Social</strong> <strong>Watch</strong>: promoting accountability<strong>Social</strong> <strong>Watch</strong>, a network that today has members in over 60 countries around the world, was created in 1995 as a “meeting placefor non-governmental organizations concerned with social development and gender discrimination, ” responding to the need topromote the political will required for making the United Nations promises come true. Since then, this network, which is continuallygrowing both qualitatively and quantitatively, has published 14 yearly reports on progress and setbacks in the struggle againstpoverty and for gender equality, which have been used as tools for advocacy on a local, regional, and international level.From its number 0, published in 1996, to thispresent issue, the 14th, the <strong>Social</strong> <strong>Watch</strong> <strong>Report</strong>has brought to light more than 600 reports fromcivil society organizations, all of them sharing theaim of reminding governments of their commitmentsand tracking their implementation, bothcountry by country and at the international level.The present issue, featuring contributionsfrom 61 national <strong>Social</strong> <strong>Watch</strong> coalitions, sustainsthe flame that brought the network into existence in1995: the need to generate tools and strategies torectify the lack of accountability mechanisms andensure compliance with international commitmentsrelated to social policies and development goals.In the decade <strong>Social</strong> <strong>Watch</strong> was created, aseries of high-level United Nations conferences,starting with the ‘Children’s Summit’ in 1990 andending with the Millennium Summit in 2000, redefinedthe global social agenda. In 1995, the <strong>Social</strong>Summit (Copenhagen) and the Women’s Conference(Beijing) defined, for the first time, the eradicationof poverty and gender equality as commonuniversal objectives, setting concrete targets andtimelines to achieve the goal vaguely formulated in1946 in the UN Charter as “dignity for all”. To promotethe political will needed for those promisesto become a reality, the <strong>Social</strong> <strong>Watch</strong> network wascreated as a “meeting place for non-governmentalorganizations concerned with social developmentand gender discrimination” (<strong>Social</strong> <strong>Watch</strong> No. 0,1996), by a group of civil society organizations.Thus, the <strong>Social</strong> <strong>Watch</strong> <strong>Report</strong> was formulatedas a powerful tool for the presentation of internationallyavailable statistical information and forreporting on qualitative aspects of the issues addressedthrough analyses by social organizationsworking at a national level. A yearly publication,the <strong>Report</strong> is devoted to progress and setbacks inthe struggle against poverty and for gender equality,two largely overlapping objectives, since theabsolute majority of the persons living in povertyare women.The <strong>Social</strong> <strong>Watch</strong> yearly reports, while addingan international dimension to local efforts andcampaigns, became the first sustained monitoringinitiative on social development and gender equityat a national level, and the first to combine both inone international overview.The report Nº0, published in 1996, featuredcontributions from 13 organizations; since then,the network has been steadily rising. Currently,<strong>Social</strong> <strong>Watch</strong> has members (“watchers”) in over60 countries around the world, and membershipgrows each year.A flexible networkAs the “meeting place” has grown, several aspectsof it have evolved, but the founding ideas and objectivesremain. In preparing for their participationin the Copenhagen <strong>Social</strong> Summit, civil societyorganizations adopted flexible and ad hoc waysof organizing as a network. No formal governingstructure or steering committee was created andno stable coordinating group was established.Non-governmental organizations (NGOs) preferredto inform each other and coordinate activitiesin horizontal open spaces, an approachthat some analysts regard as a forerunner of theorganizational format later adopted by the World<strong>Social</strong> Forum. Many of the NGOs that took part inthe <strong>Social</strong> Summit later formed the backbone of<strong>Social</strong> <strong>Watch</strong>. As a result, the structure and functioningof the network preserves much of originalflexibility and openness.In addition to national coalitions, the networkis structured around three bodies: the GeneralAssembly, the Coordinating Committee and theInternational Secretariat. In recent years, someregional and sub-regional coordination structureswere established as a space for articulation–not asa necessary intermediate body to link the nationalwith the global.The <strong>Social</strong> <strong>Watch</strong> network is not an incorporatedentity and it did not start by drafting itsgoverning bylaws. Instead, a short Memorandumof Understanding between national groups andthe network became the basic framework establishingmutual expectations, respecting both theautonomy of national coalitions and democratichorizontal decision-making. A key principle thatdistinguishes <strong>Social</strong> <strong>Watch</strong> from other internationalcivil society networks is that no central bodyprovides funds for its members. These operationalprinciples help avoid the tensions associated withdonor/recipient relationships within the network –since there aren’t any – and also the loss of energyMemorandum of Understanding betweennational groups and the <strong>Social</strong> <strong>Watch</strong> network1. Coalitions must be based in the country and be active in social development issues in thatcountry (not exclusively as academics or consultants).2.3.4.5.6.7.8.Their basic commitment to the international network is to provide a national report, with theirown conclusions and determination of priorities, to be included in the annual publication.They are expected to use their national report and the global report in lobbying activities ata national level.They must be open to the incorporation of other organizations, work actively to broadenawareness of <strong>Social</strong> <strong>Watch</strong> and encourage the participation of other organizations.They are responsible for raising funds for their activities. National coalitions are not dependentfor funds on, or financially accountable to, the Secretariat or any other international <strong>Social</strong><strong>Watch</strong> entity.Each coalition determines its own organizational structure.<strong>Social</strong> <strong>Watch</strong> membership and the exercise of governmental functions are absolutely incompatible.Cooperation with other national platforms should be encouraged at sub-regional, regionaland global levels.The Memorandum of Understanding was adopted during the 1st General Assembly, Rome, 2000. Available from:.<strong>Social</strong> <strong>Watch</strong> XItema
that could result from lengthy discussions aboutmoney, budgeting and reporting, as well as proceduralmatters. It has also resulted in members’strong sense of tenure over the network.National coalitions organize the way theywant – or can – according to the conditions in eachcountry. The membership of <strong>Social</strong> <strong>Watch</strong> coalitionsis very diverse, including research institutesor centres, NGOs, grassroots organizations, tradeunions, women’s groups, rural organizations andothers. Since the international <strong>Social</strong> <strong>Watch</strong> reportcan only devote a couple of pages to each countryand is only available in English and Spanish, thelocal coalitions publish more extensive national reportsin national languages in Benin, Brazil, CzechRepublic, Germany, India, Italy, Poland, the Philippines,and the Arab region.General AssemblyThe General Assembly is the <strong>Social</strong> <strong>Watch</strong> network’shighest directive body. Policy discussionand medium- to long-term strategic planning happensin its realm, which serves as a decision-makingforum. However, it is also a space for reinforcingthe sense of belonging and strengthening thenetwork’s identity and unity. It takes place everythree years and up to now has been held threetimes: in Rome 2000, Beirut 2003 and Sofia 2006. 1This year, the General Assembly will meet for thefourth time in Accra, Ghana in October. In additionto setting medium- and long-term priorities andidentifying potential alliances in advocacy strategy,the Assembly elects members of the CoordinatingCommittee to whom coordination and politicalleadership between assemblies are delegated.Coordinating CommitteeThe Coordinating Committee (CC) is the key politicalbody for the ‘daily’ work of the network, with anorganizational structure which requires fluid communications,facilitated principally through an emaillist, plus biannual face-to-face meetings and regulartelephone conferences to discuss specific issues.As the CC’s task is to “ensure the political visibilityand participation of the network in relevantspaces and processes,” 2 its composition endeavoursto represent a geographical and gender balance, aswell as considering the contribution, in terms of experienceand capabilities, that members can provideto the whole network. In general, the CC’s decisionsare adopted by consensus, and every single decision(and discussion) is communicated to the watchersin a timely manner. The constant participation oftwo Secretariat members as ad hoc members of theCC ensures coordination between the two bodies,the function of the Secretariat being to support andimplement the strategic decisions made.International SecretariatThe Secretariat is the main executive body of <strong>Social</strong><strong>Watch</strong>. The first external evaluation of the network(1995-2000) noted that, “Of the various roles inthe <strong>Social</strong> <strong>Watch</strong> network, that of the Secretariathas changed the most” (Hessini and Nayar, 2000).Originally the Secretariat’s function was limited toresponsibility for the production of the <strong>Report</strong>, butdue to the network’s growth it has subsequentlyincorporated a series of new functions, includingresearch, capacity building, campaigning, promotionof the network and its representation ininternational forums.The local, the global and the <strong>Report</strong>Every year <strong>Social</strong> <strong>Watch</strong> chooses to analyze a differentsubject in depth through its <strong>Report</strong>, usuallyfocusing on topics under discussion on theinternational agenda that can be addressed froma local perspective. Experts from diverse originsand disciplines contribute alternative views on theissues through thematic articles. This internationalperspective is complemented with national andregional reports through which member organizationscontribute a local perspective, reporting onthe state of affairs in their countries in relation toeach year’s specific theme.In addition, <strong>Social</strong> <strong>Watch</strong> produces indexesand tables with comparable international information,presenting a macro-perspective of thesituation related to certain dimensions of develop-1 Final reports, working papers and other materials from thesethree Assemblies available from: 2 The document describing the nature and mandate of theCoordinating Committee was agreed at the 2nd GeneralAssembly, Beirut 2003. Available from: Thematic reports XII<strong>Social</strong> <strong>Watch</strong>
ment while also providing national level readings.<strong>Social</strong> <strong>Watch</strong> has developed alternative indicatorsto measure progress or setbacks in gender equityand the meeting of basic human capacities, whichare now used as reference points for both civilsociety and international institutions.Although members use the document for advocacywork in diverse situations, <strong>Report</strong> launchesare key opportunities for dissemination of itscontents, taking place both in relevant spaces ofinternational and national debate and decisionmaking.This year, some preliminary findings fromthe <strong>2009</strong> <strong>Report</strong> were showcased in the publicationWho Pays? The Global Crisis and What Needsto Be Done, 3 which was presented in June in NewYork at the UN Conference on the Financial andEconomic Crisis and its Impacts on Developmentand at the “Peoples´ Voices on the Crisis” forumwhich brought together over 100 civil society activistsfrom around the world.Occasional Papers are published, mainly tohelp build the capacity of member coalitions, 4regional training workshops have been organized,and position papers have been produced.For example, this year <strong>Social</strong> <strong>Watch</strong> drafted recommendationson issues related to the financialarchitecture and its impacts on developmentfor the Commission of Experts of the Presidentof the UN General Assembly on Reforms of theInternational Monetary and Financial System.In addition, in order to share best practicesrelated to the work of national <strong>Social</strong> <strong>Watch</strong> groups,the publication Learning from Successful Experiences:Summary of the Analysis Four Case Studiesfrom the <strong>Social</strong> <strong>Watch</strong> National Coalitions wasproduced and disseminated. 5 Through its website,blog, and presence in social networking platforms,<strong>Social</strong> <strong>Watch</strong> is also utilizing new multimedia toolsto disseminate information on gender, developmentand human rights issues, generate discussionsamong fellow civil society practitioners, andconduct outreach to policymakers and journalists.Additionally, on several occasions, <strong>Social</strong> <strong>Watch</strong>spokespersons have addressed the UN GeneralAssembly and other intergovernmental bodies onbehalf of the network or wider civil society constituencies.nReferencesFriedlander, E. and Adams, B. (2006). <strong>Social</strong> <strong>Watch</strong> externalevaluation 2001-2005. Available from: .Hessini, L. and Nayar, A. (2000). A Movement Toward <strong>Social</strong>Justice. An Evaluation <strong>Report</strong>. Strategic Analysis for GenderEquity (SAGE). New York. Available from: .<strong>Social</strong> <strong>Watch</strong> No. 0 (1996). The starting point. Instituto del TercerMundo. Montevideo. Available from: .<strong>Social</strong> <strong>Watch</strong> (2006). Strategy and Framework of Activities 2007-<strong>2009</strong>. Available from: .Van Reisen, M. (2001). The lion’s teeth. The prehistory of <strong>Social</strong><strong>Watch</strong>. Instituto del Tercer Mundo. Montevideo. Availablefrom: .3 <strong>Social</strong> <strong>Watch</strong> (<strong>2009</strong>) Who Pays? The Global Crisis and WhatNeeds to Be Done, available from:.4 The first Occasional Paper by Mirjam Van Reisen, The Lion’sTeeth, examines the political context in which <strong>Social</strong> <strong>Watch</strong>was created. The second, by Ana María Arteaga, ControlCiudadano desde la base, analyzes the democratization ofinternational human rights instruments experience in Chile in1997. The third, a compilation by Patricia Garcé and RobertoBissio, introduces the experience of monitoring Copenhagengoals through the concrete example of <strong>Social</strong> <strong>Watch</strong>. Papers4 and 5, coordinated by the <strong>Social</strong> <strong>Watch</strong> <strong>Social</strong> SciencesResearch Team, address poverty and inequality in LatinAmerica and the links between poverty and human rights.Occasional Papers available from: .5 <strong>Social</strong> <strong>Watch</strong> (<strong>2009</strong>) Learning from Successful Experiences:Summary of the Análisis of Four Case Studies from the<strong>Social</strong> <strong>Watch</strong> National Coalitions, available from: .<strong>Social</strong> <strong>Watch</strong> XIIItema
Table of ContentsVoices that make a difference.............................................................. 3Roberto BissioPeople first............................................................................................ 5Roberto BissioNATIONAL REPORTSAlgeria.............................................................................................. 50Argentina......................................................................................... 52Bahrain............................................................................................. 54THEMATIC REPORTSA human rights-based responseto the financial and economic crisis.................................................. 13Aldo Caliari, Center of ConcernGender equality and the financial crisis............................................ 17Nancy Baroni, Canadian Feminist Alliance for International Action;Mirjana Dokmanovic, Association Technology and Society,Serbia and Women in Development Europe (WIDE);Genoveva Tisheva, Bulgarian Gender Research Foundationand Bulgarian-European Partnership Association;Emily Sikazwe, Women for ChangeThe global food price crisis................................................................ 21Sophia Murphy, Institute for Agriculture and Trade PolicyJustice to cool the planet................................................................... 25Isagani Serrano, PRRM, <strong>Social</strong> <strong>Watch</strong> FilipinasEnergy challenges for Europe............................................................ 29Elena Triffonova, Bulgarian-European Partnership AssociationHolding transnational corporations accountable forhuman rights obligations: the role of civil society............................ 31Jana Silverman, <strong>Social</strong> <strong>Watch</strong>;Álvaro Orsatti, Trade Union Confederation of the AmericasThe global economic crisis and the leastdeveloped countries: citizens’ concerns............................................ 35Arjun Karki, LDC <strong>Watch</strong>Mounting development challenges posed bythe world economic crisis: policy options in the Arab region........... 39Kinda Mohamadieh, Arab NGO Network for Development;Oliver Pearce, Christian AidEurope’s response to the globalfinancial and economic crisis............................................................ 43Mirjam van Reisen, Europe External Policy Advisors (EEPA);Simon Stocker y Louisa Vogiazides, EurostepBangladesh..................................................................................... 56Belgium ............................................................................................ 58Benin.................................................................................................. 60Bolivia............................................................................................... 62Brazil................................................................................................ 64Bulgaria........................................................................................... 66Burma (Myanmar).......................................................................... 68Cambodia.......................................................................................... 70Canada.............................................................................................. 72Central African Republic........................................................... 74Chile.................................................................................................. 76Costa Rica........................................................................................ 78Cyprus.............................................................................................. 80Czech Republic................................................................................ 82Egypt................................................................................................. 84El Salvador..................................................................................... 86Eritrea.............................................................................................. 88France............................................................................................... 90Germany........................................................................................... 92Ghana................................................................................................ 94Guatemala........................................................................................ 96Honduras......................................................................................... 98Hungary.......................................................................................... 100India................................................................................................. 102Iraq.................................................................................................. 104Italy................................................................................................. 106g
Kenya............................................................................................... 108Lebanon.......................................................................................... 110Malaysia......................................................................................... 112Malta............................................................................................... 114Mexico............................................................................................. 116Moldova......................................................................................... 118Morocco......................................................................................... 120Mozambique................................................................................... 122Nepal .............................................................................................. 124Nicaragua...................................................................................... 126Nigeria............................................................................................ 128Palestine........................................................................................ 130Paraguay........................................................................................ 132Peru................................................................................................. 134Philippines..................................................................................... 136Poland............................................................................................ 138Portugal........................................................................................ 140Romania.......................................................................................... 142Senegal........................................................................................... 144Serbia.............................................................................................. 146MEASURING PROGRESSFood security ................................................................................... 175A fragmented scenarioEducation.......................................................................................... 180Differences become more noticeableInformation, science and technology............................................... 185The fastest breachDevelopment assistance.................................................................. 190Commitments undertaken are furtherand further away from being fulfilledWater and sanitation........................................................................ 191The gap is wideningHealth............................................................................................... 194Unequal improvementReproductive health......................................................................... 199Marked polarizationRatifications of fundamental ILO conventions................................. 204Ratifications of human rightsinternational treaties........................................................................ 205How to read the <strong>Social</strong> <strong>Watch</strong> tables............................................... 207Methodological notes: thematic tables............................................ 208Slovakia.......................................................................................... 148Slovenia......................................................................................... 150Somalia........................................................................................... 152Spain................................................................................................ 154Tanzania.......................................................................................... 156Thailand......................................................................................... 158Uganda............................................................................................ 160United States of America........................................................... 162Venezuela....................................................................................... 164Vietnam........................................................................................... 166Yemen.............................................................................................. 168Zambia............................................................................................. 170
Voices that make a differenceThis <strong>Social</strong> <strong>Watch</strong> <strong>Report</strong> goes to print in September <strong>2009</strong>,a year after the US Government failed to rescue LehmanBrothers from bankruptcy. The collapse of this globalinvestment bank marked the peak of a crisis that started atthe epicenter of globalized finance on Wall Street and soonspread to national economies everywhere.Since “crisis” has been the keyword for <strong>2009</strong>, thequestion that <strong>Social</strong> <strong>Watch</strong> asked its network of nationalgrassroots organizations to respond to in framing theircountry reports was obvious: What is the social andenvironmental impact of the global economic and financialcrisis in your country? What is your Government doing aboutit? What proposals are being put forward by civil society?Each national <strong>Social</strong> <strong>Watch</strong> coalition, examining thesituation in its own country, has identified a variety ofways in which the crisis is affecting them. Those findingsare the heart of this report and they provide the bottomupperspective of the people working with and from thegrassroots.This is not a commissioned report. Each national <strong>Social</strong><strong>Watch</strong> chapter is made up of organizations and movementsthat are active year-round on social development issues.Their findings are not intended as pure research. Rather, theyare used to draw the attention of the authorities to issues ofconcern and to help shape more equitable, gender-sensitiveand pro-poor policies.Asked to comment on the crisis, the <strong>Social</strong> <strong>Watch</strong> nationalchapters decided on their own priorities and emphasesand even on their own definition of what the current crisisencompasses. To make the report possible, each national<strong>Social</strong> <strong>Watch</strong> coalition raises its own funds and defines itsown ways to consult with the grassroots to gather evidenceand validate their findings. They do not shy away fromcriticizing national authorities, policies, elites or governancesystems whenever they feel it is necessary. And the voicingof critical views helps strengthen democratic processes. Buteven when the reports find that much can (and needs to)improve at home, these findings also point to internationalconstraints that cannot be solved at the country level.There is little democracy in international decision-makingeither for civil society or for governments. Civil societyorganizations cannot attend, even as observers, many ofthe key decision-making fora and in many cases this is alsotrue for governments of developing countries, especiallythe least developed countries. The World Bank and theInternational Monetary Fund, the two main pillars of globalfinancial governance, are controlled by seven countries andthe United States has veto power in both institutions (as doesthe EU, if its member countries take a common position).Thus, the convening at the heads of state level of the “G-20”,an informal grouping of 22 economies from the North andthe South considered to be of “systemic importance” is awelcome step towards recognizing the new realities in theworld economy. But it is clearly not enough, for two mainreasons: first of all, because some 170 countries are left out,as happened at the G-20 summits in Washington (November2008), London (April <strong>2009</strong>) and Pittsburgh (September<strong>2009</strong>). And secondly, because the G-20 has no institutionalweight, no legal status, no accountability, no secretariat incharge of following up on its resolutions and unknown rulesfor reaching a decision in case the closed-door negotiationsfail to reach an agreement.Yet, it is argued that the advantage of the G-20 is that areduced number of leaders meeting at the highest level isable to produce significant results, while a large meetingconducted in a transparent way could only produce inflamedspeeches for political consumption but no significantagreements. What happened over the last 12 months,instead, was that the General Assembly of the United Nations,meeting in Doha in December 2008 and in New York inJune <strong>2009</strong>, managed to come out with a consensus of the“G-192” (the total number of members of the UN) that goesdeeper in its analysis of the global crisis than has any otherinternationally agreed document.<strong>Social</strong> <strong>Watch</strong> was an active participant in all the hearingsconvened by Father Miguel D’Escoto, president of the63 rd session of the UN General Assembly, and submittedrecommendations to the commission of experts ledby economist Joseph Stiglitz that advised the highestinternational body in its deliberations on the economic andfinancial crisis and its impact on development. <strong>Social</strong> <strong>Watch</strong>organized, together with dozens of local and internationalcivil society organizations, a “Peoples’ Voices” event inNew York that brought together local victims of the crisiswith activists and researchers from around the world. Ournetwork was also actively involved in the round tables duringthe June High Level Conference itself and even when only afew of our recommendations actually found their way intothe final outcome document, we publicly commended thegovernment negotiators for having achieved a consensusthat seemed impossible.Now it is time to put those agreements into practice; totransform the words into action.The whys and hows of bringing this about is what thereader will find in this <strong>Social</strong> <strong>Watch</strong> <strong>Report</strong> <strong>2009</strong>. nRoberto Bissio<strong>Social</strong> <strong>Watch</strong> International Secretariat<strong>Social</strong> <strong>Watch</strong>3
People firstRoberto Bissio<strong>Social</strong> <strong>Watch</strong> International SecretariatThe bankruptcy of the Lehman Brothers investmentbank in September 2008 is seen by many as thetipping point in a series of collapses in the bankingsystem that spread like prairie fire through thefinancial markets and stock exchanges of the richesteconomies of the world. Since then, the word “crisis”has dominated the media as well as political discussionworldwide. The Great Depression that shook theworld in the early 1930s is frequently cited as the onlyprecedent and well-known historian Eric Hobsbawnhas compared the fall of Wall Street to the fall of theBerlin Wall. Regarded as the greatest historian ofthe twentieth century, Hobsbaum said, “the totallyunrestricted and uncontrolled free-market capitalisteconomy (…) that captured the world and itsgovernments in the years since Margaret Thatcherand President Reagan (…) is breaking down beforeour eyes”, the same as “the centrally state-plannedeconomies of the Soviet type broke down twentyyears ago”. 1The dust has not settled yet. While politicallyconnected US investment banks such as GoldmanSachs, have started to make profits again andreward their executives with multimillion dollarbonuses, unemployment is still growing in most ofthe so called “advanced” economies and the tsunamiwave of the crisis is only now, one year afterthe earthquake at the financial epicenter, starting tohit more distant shores. In Bolivia, for example, thelocal <strong>Social</strong> <strong>Watch</strong> coalition in its contribution forthis report writes that “as a cycle of world growthroared past (previous to the crisis), Bolivia stoodby and watched, unable to take advantage of theopportunity to establish its own rhythm of development.Its economy was just beginning to pickup speed, when the global boom began to stall andthen go into reverse.”The findings from civil society organizations inover 60 countries are included in this <strong>Social</strong> <strong>Watch</strong>report, the first global bottom-up report on the socialimpact of the crisis. UN agencies and other institutionshave reported estimates of the millions ofjobs that will be lost worldwide, the millions morepeople who will be thrown into poverty and the additionalnumber of children likely to die as a resultof the inability of the markets to solve the problemsthey created (contrary to what was the prevailingcredo until last year). Valuable as these are, they are1 See: “<strong>Social</strong>ism has failed. Now capitalism is bankrupt. Sowhat comes next?” by Eric Hobsbawm, published by TheGuardian on April 10, <strong>2009</strong>. Available from: .calculated from global aggregates, not the resultsof direct observation from the ground. The accumulationof findings from rich and poor countriesof all continents show remarkable similarities andalso a diversity of situations that enriches the pictureavailable so far, makes it even more dramaticand challenges decision- makers with the urgencyof implementing policies that put people first. It isnot just a matter of social justice, but also of soundeconomic policy, as a brief overview of the countryreports demonstrates.Innocent bystandersIn capitalist finances, like in a casino, the riskierthe bets the higher the earnings. But risky bets alsomeans frequent losses. In that logic, the scandalis not the bankruptcy of Lehman Brothers, but thedecision by US president George W. Bush and hisTreasury Secretary Hank Paulson to spend hundredsof billions of dollars of taxpayers’ money torescue failed banks, such as Goldman Sachs, ofwhich Paulson was Chief Executive Officer beforejoining the Government, and insurance groups,such as A.I.G. When President Yayi Boni of Benin,elected owing to his solid reputation as a banker,learned of this decision, he wondered publiclywhere the trillions of dollars of rescue funds wouldcome from and concluded that the poor would endup paying for the crisis. The Belgian report for <strong>Social</strong><strong>Watch</strong> agrees: when the shares of banks andthe principal enterprises in the country collapsed,the Belgian Government went to the rescue of thebanks and provided deposit guarantees. The crisisis still causing unemployment to rise, while the costof the bank rescue is making itself felt in the drasticincrease of public debt, with serious repercussionsin the provision of social security. In Benin itself,the local <strong>Social</strong> <strong>Watch</strong> coalition has discovered thatin its efforts to stimulate the economy the State iscompeting with the poor for scarce constructionmaterials and grassroots organizations are mobilizingagainst the rising cost of living.Many of the national <strong>Social</strong> <strong>Watch</strong> reportsshow how women tend to suffer the impact of thecrisis disproportionately. In the words of the Polishcoalition, “the decrease in family incomes due tothe economic crisis might cause pauperization ofwhole social groups, particularly among the lowerand middle classes. It is very likely that this will inturn have a more significant impact on women,since they traditionally are the main responsiblefor family well-being (this is particularly trueamong the lower income groups). According tosome analysts, crises amplify the grey (informal)sector in the Polish economy as many, especiallysmall entrepreneurs try to minimize labour costsand avoid taxation and other costs associated withformal employment. It seems very likely that thegrowth of the grey economy will affect womenmore than men, as they are more often engagedin low paid jobs, especially in the private servicesector (e.g. in retail).”In France the global crisis has had a directimpact on the people, as it has in all the developedcountries where it began. The most obvious effectshave been rising unemployment and increased socialexclusion, and “sectors that not long ago were in acomfortable situation are even suffering food shortages”according to the French <strong>Social</strong> <strong>Watch</strong> report.Similarly, the German Government’s crisis managementstrategy does not include social or indeed ecologicalgoals. Its stimulus packages and tax cuts aresocially inequitable; layoffs and the rise in part-timeworkers are revealing the ugly face of deregulation.Poverty is becoming “massive” in both Eastern andWestern extremes of Europe, report the <strong>Social</strong> <strong>Watch</strong>coalitions from Portugal and Moldova.In the Czech Republic, “the global economiccrisis (...) is lowering the standard of living” mainlybecause of increased unemployment. The Czech<strong>Social</strong> <strong>Watch</strong> coalition challenges the official unemploymentfigure, arguing that 178,000 people whowere considered to be not actively seeking employmentwere left out and that adding this group wouldhave pushed the unemployment rate 50% higher.Foreign workers, particularly those from Asia, arefound to be those suffering the most in the CzechRepublic, but also the <strong>Social</strong> <strong>Watch</strong> coalitions inMalta, Slovakia and Cyprus report on rising difficultiesfor foreigners and even cases of xenophobia.At the other end, economic difficulties derivedfrom diminishing remittances by exported workersare reported from the Philippines, Morocco, Mexico,Nicaragua and many other places. In the caseof Egypt “the drop in remittances and the return ofémigrés has put pressure on a labour market badlyprepared to absorb more unemployed workers.” InEl Salvador, “more than 300,000 families − 26.7%of the population − receive money from abroad,which helps defray the cost of food, clothing andbasic services.” Flows of remittances almoststopped growing in 2008 and it is estimated thatthey will start falling in <strong>2009</strong>.The speed at which countries get affected bythe tsunami is not related to its physical distanceto Wall Street, of course, but with how its economyis linked to those at the epicenter. In Mozambique,for example, which is one of the poorest countriesin the world, the privately own Mozambique InternationalBank (Millennium Bim) has publisheda report forecasting that the nation’s economywill shrink because of negative growth in donorcountries that finance more than half the nationalbudget, and those that make foreign direct investments.<strong>Social</strong> <strong>Watch</strong>-Mozambique reports thatprices for aluminum, tobacco, sugar, tea, chest-<strong>Social</strong> <strong>Watch</strong>5 tema
nuts and prawns have fallen. Export revenues willbe affected and this in turn will weaken activitiesthat foster economic growth and hamper effortsto promote tourism. With 42% of its budget fundedby aid, Tanzania is in a similar situation. TheFrench <strong>Social</strong> <strong>Watch</strong> report shows that, becauseof the crisis and the country’s inability to createnew resources for Official Development Assistance(ODA), this aid has been cut back sharply andFrance will not fulfil its commitments in this area.By contrast, Spain has reaffirmed its commitmentto channel 0.7% of its national income into ODA by2012. But even if all donor countries were to honourtheir commitments, those goals are expressedin percentages of the economy, and therefore thebudgets for ODA are bound to decrease in timesof recession.Among developing countries, the greater thelinkage with the globalized economy, the biggerand faster has been the impact. México and Chile,two Latin American countries tied to the US economyby free trade and investment agreements, wereimmediately affected. The price of copper, Chile’smain export, peaked at over USD 4 per pound inmid 2008, only to fall to USD 1.4 at the end of theyear. Yet, the most noticeable impact of the crisisis, according to the Chilean <strong>Social</strong> <strong>Watch</strong> report,the fall in pension fund holdings, which are investedin local and foreign financial assets. Thevalue of retirement savings suffered a loss of USD27 billion, more than 26% of the total funds, bythe end of 2008. This is the reason why householdwealth in Chile suffered the greatest losses inLatin America, yet despite repeated protests fromthe people affected, they were not as lucky as theshareholders of some of the big global banks andnobody came to their rescue or did anything tocompensate them.Falling commodity prices have caused thecrisis to spread to many countries. In Uganda thelocal <strong>Social</strong> <strong>Watch</strong> coalition estimates that thismight reverse recent social progress and make itimpossible to achieve the Millennium DevelopmentGoals. Zambia suffers even more than Chile fromthe drop in copper prices, on which the countryis highly dependent. The Zambian contribution to<strong>Social</strong> <strong>Watch</strong> rightly notes that: “Unlike the UnitedStates and other countries that have responded tothe economic meltdown by providing financing tofailing banks and major industries to try to keepthem afloat, Zambian President Rupiah Bandadoes not have any resources to give out.”The report from Ghana comments on thesame problem: “The question that citizens are tryingto come to grips with is whether the countryshould focus on aid from the international communityto cope with the economic fallout, or resortto harsh fiscal and monetary initiatives.”As Brazilian financial expert Fernando Cardimwrites in his analysis for the local <strong>Social</strong> <strong>Watch</strong>report: “increasing income and tax revenues (…)is precisely what President Obama is trying to accomplishin the United States. It is also what theManaging Director of the International MonetaryFund (IMF), Dominique Strauss-Kahn, has defendedrepeatedly since 2007.” Yet, “the Fund itself hasresisted adopting this view, as demonstrated bythe conditionalities imposed on the Central Europeancountries that were bailed out by the IMF.”In the case of Romania, the national <strong>Social</strong><strong>Watch</strong> report notes that “the IMF loan seems tohave been contracted under external pressures,mainly to save foreign companies’ interests inRomania. It will not serve to repay the country’sforeign debt but will cover the debts of local subsidiariesof foreign banks. Public funds will thus beused to repair the damage done by private capital.”Instead of reacting to local needs, the IMF went toRomania as a result of “desperate calls from theAustrian Government for EU and IMF interventionto rescue its banks in Eastern Europe.” Austrianbanks had lent the region an amount equivalentto 70% of Austria’s GDP. Now, “the repayment ofa loan that represents 40% of Romania’s annualbudget will only be possible over the next yearsthrough decreasing the population’s standard ofliving.”In Hungary, an IMF bailout was needed toavoid total collapse of the economy, but it led todevaluation, tax increases, procyclical measuressuch as spending cuts and other unpopular measures.Prime Minister Ferenc Gyucsany was forcedto resign in March <strong>2009</strong>. The new Governmentplans to cut pensions, public sector bonuses andmaternity support; to mortgage energy and transportsubsidies; and to raise the age for retirement.Similarly in Serbia, pressure by the IMF todecrease the state deficit led the Government toannounce in March <strong>2009</strong> the introduction of a temporary“solidarity” salary and a pension tax of 6%for those who earned above USD 170. This createddiscontent among workers and pensioners whiletrade unions announced protests. They argued thatthe “solidarity” tax would hit the poorest, cause areduction in salaries and increase unemploymentand work in the informal sector, while the richwould remain untouched. Overnight, the wholesavings plan was revoked. According to the Serbian<strong>Social</strong> <strong>Watch</strong> coalition, the Government “wascaught between fear of social turbulence on oneside and pressure from the IMF on the other, andthe following weeks were marked by discordantvoices from policy makers, who announced newpackages of saving measures in the evening thatwere revoked the following morning.” The menuof new ideas included reducing the number of ministries,increasing property taxes, taxing mobilephone bills and new car purchases, introducinga luxury car tax, banning new employment in thepublic sector, limiting business trips abroad and reducingworking hours. Yet, the Serbian “watchers”note that if “the newly adopted Law on Confiscationof Property Gained by Crime, the State could collectUSD 2.64 billion in one year, a sum equalling theone Serbia is asking for from the IMF.”In Bulgaria NGOs and trade unions also do notagree that reducing social expenditures is acceptablein times of crisis. “Any further reduction couldshatter the country’s social peace”, warns the local<strong>Social</strong> <strong>Watch</strong>. Although NGO experts support theincrease in the share of investment going to transportinfrastructure, they are sharply critical of theGovernment’s failure to use EU structural fundsallocated to Bulgaria during its first two years offull membership. “Only 0.6% of the EUR 2.2 billionhad been spent by the end of 2008. Lack of financialcapacity, excessive bureaucracy and scarcelytransparent procedures have all prevented thefunds from reaching their intended beneficiaries.”Slowing down can be dramaticWhen the financial crisis started, some economistsput forward the “decoupling” hypothesis, accordingto which emerging economies would be relativelyuntouched by the global financial crisis owing totheir substantial foreign exchange reserves, robustcorporate balance sheets and relatively healthy bankingsectors. Yet they felt the impact anyhow. As <strong>Social</strong><strong>Watch</strong>-India observes, “the Government’s initialprediction that the country would emerge unscathed,was shortsighted” and economic growth droppedfrom a healthy 9.3% in 2007 to 7.3% in 2008. For<strong>2009</strong>, the IMF forecasts a growth of 4.5%. Similardrops from two digits growth figures to 5% occurredin Vietnam, Peru and Cambodia.Five per cent growth can make finance ministersin OECD countries envious, since most ofthem are trying to emerge from negative growth(i.e., recession), but the departure point should notbe ignored. Five per cent growth per year in lowincomecountries means an increase of less than adime a day for the average person. But a few centsmake enormous difference when you are poor. As<strong>Social</strong> <strong>Watch</strong> Cambodia points out for example,the reduction of the growth rate by one half meansthat “people living around Tonle Sap, the country’smajor lake, are especially vulnerable, since theyhad already gone into debt to make ends meet. Lastyear they had to sell productive assets and pulltheir children out of school to go to work.”Permanent crisisThe term “crisis” refers to a turning point, a decisivemoment, an unstable time, yet for many of6 <strong>Social</strong> <strong>Watch</strong>
the reporting <strong>Social</strong> <strong>Watch</strong> coalitions, the crisisthey are suffering is a matter of decades and didnot start with the collapse of the financial markets.In the Central African Republic, poverty is seen asincreasing and not diminishing since 1990, withpolitical instability and violence damaging an alreadyweak economy.Eritrea is reported as having “a deep economic,social and political mess of its own making” beforebeing hit by the global crisis, while in Nigeria mostpeople “have been living for a long time in a situationof economic meltdown. Corruption is widespread,the country lacks electricity, education andhealth are in a deplorable condition, and the armedfight for the control of oil resources continues tobe intense.” In Yemen, the local <strong>Social</strong> <strong>Watch</strong> teamsees lack of rights as being at the origin of crisisafter crisis since 1990, with 42% of the populationliving below the poverty line and an even worsesituation for women. In Burma there is a crisis inevery area, whether the economy, politics, food orenvironment, with the Government showing itselfto be unable to support its own citizens in the aftermathof a devastating cyclone and yet spendingnearly half of its budget on the military.In Nepal the crisis is expected to hit soon,adding its effects to “other crises, related to theenvironment, food, energy, finance and politics[that] have been buffeting the society for a longtime.” In Bangladesh, cyclone Sidr on top of twoconsecutive floods has shown the extreme vulnerabilityof millions of people threatened by climatechange. A complete lack of governmental authorityis at the root of problems in Somalia, while foreignoccupation is the major concern in Palestine. Alsocontributing from a critical conflict situation, theIraqi <strong>Social</strong> <strong>Watch</strong> decided this year to focus itsreport on the situation of women. Their findingshave, however, universal value: “a culture of equalityof access and opportunity is needed in additionto legislation.”PolarizationIn March <strong>2009</strong>, at the height of the crisis and thepolitical debate on how to cut expenses in Serbia,an automobile fair was held in Belgrade. All themost expensive models were sold on opening dayfor a total of more than USD 2.6 million!Polarization is being exacerbated everywhereby the crisis. The <strong>Social</strong> <strong>Watch</strong> report from Bahraindescribes “increasing numbers of millionaires,and a shrinking middle class and impoverishedlower class.” The sense of unfairness, more thanabsolute poverty, has led to “repeated confrontationsand tension between impoverished communitiesand security forces, especially in the villages,which is why the World Bank now ranks Bahrainlow in political stability.”In Vietnam, frequently quoted as an exampleof a development model that lifted millions of peopleout of poverty, consumption by the richest 20%of the population accounts for 43.3% of total expenditurein the country, while the remaining 80%spends very modestly. Similar polarization is describedby the <strong>Social</strong> <strong>Watch</strong> report for Honduras,where the confrontation between rich and poor isclearly at the root of the coup d’etat that deposedPresident Manuel Zelaya in June <strong>2009</strong>, reviving a“regime change” practice that Latin America hadseemed to have abandoned in favour of democraticmethods two decades ago.In neighbouring Costa Rica, a traditional havenof peace and constitutional stability in CentralAmerica, the local watchers warn that “if the challenges[of the crisis] are not dealt with on the basisof social dialogue and by means of a firm changeof course, the persistence of traditional solutions(one-time cash handouts and cuts in public spending,as well as the reduction of rights) will doubtlesslead to greater inequality and poverty and tothe risk we have already pointed out of turningconjunctural poverty due to the loss of income,into structural poverty, and increasing violenceagainst women, children and the elderly.”The game of the ostrich“In Kenya the Government is in denial”, – write thelocal watchers – “playing the game of the ostrich,burying its head in the sand. The governing eliteargues that the crisis is circumstantial and that thenational economy is sheltered enough by its weakties with international capital.”Similar denials are reported from many countries.In the case of Moldova, <strong>Social</strong> <strong>Watch</strong> foundout that before the elections in April <strong>2009</strong>, theGovernment vehemently denied the crisis wouldaffect the country and tried to artificially maintainthe economic situation. The World Bank was notso optimistic, and included Moldova among thedeveloping countries with the highest level of vulnerability.After the elections, however, PresidentVoronin declared in a meeting with businesspersons,members of the acting Government, congresspersonsand politicians that “‘the crisis is afire, a catastrophe.’ Government officials explainedthat the downplaying of the crisis before the electionshas been aimed at not ‘creating panic.’”In other situations, not only did incumbentpoliticians downplay the importance of the crisis,but leaders of social organizations have adoptedthe same approach, afraid that the fear of a catastrophemight lead decision-makers to acceptopportunistic demands by the already privileged.<strong>Social</strong> <strong>Watch</strong> Bolivia reports that “Bolivian entrepreneursare part of this trend, responding to thesevere global downturn through unequal negotiationsthat shift the burden of the crisis onto theshoulders of their workers through layoffs andreductions in benefits and wages.”In Slovenia, the local watchers also detectedemployers abusing the fear of the crisis to restructureworkers’ rights. In Guatemala, the Governmentmeasures aimed at confronting the foodcrisis, such as zero tariff import quotas, result inbenefits for one group but not to the consumers.From Paraguay, the local <strong>Social</strong> <strong>Watch</strong> coalitionreports that the first sectors to demand additionalsupport “were those that had benefited fromthe prior Government’s neoliberal policies andmarket integration: agro-exporters, industrialists,importers and advertising executives. (…) The soyproducers, for example, insisted that the Governmentnot only to cover their losses, but also provideenough funding to maintain their level of productionand profit through public subsidies. Theyearned extraordinary profits in the previous cycle,thanks in part to speculation in the futures marketfor agricultural commodities that accompanied thepromotion of biofuels in many countries.”In Poland “the public believes that banks aremanipulating the exchange rates at the clients’cost. At present the difference between the purchaseand the selling rate can reach as much as12%, 2 while even the Office of Competition andConsumer Protection is unable to impose exchangerate restrictions. Consumer groups aretherefore forming through the Internet in order topurchase foreign currencies in wholesale quantities,hoping to negotiate the amount of spread andsometimes even renegotiate terms and conditionsof credit agreements.”After having attended a seminar organized byThird World Network on Asian responses to thecrisis, <strong>Social</strong> <strong>Watch</strong> advocacy coordinator NataliaCardona wrote that there seems to be “an atmosphereof defensiveness among governments in theregion. Rather than a proactive and new approachto changing the international financial system theyare relying on old policy to try to deal with new andworsening economic problems.”<strong>Social</strong> <strong>Watch</strong> Argentina finds the Governmentto be similarly unprepared for the magnitude of thechallenges posed by the crisis, while the Braziliancoalition believes its leaders are “confusing theinability to act with financial and fiscal prudence.”In times of recession, “tax revenues go down whilesocial security spending rises. Fiscal deficits thenrise precisely because governments were not boldenough to act against the contraction of the economy.Paradoxically, the attempt to look prudent2 Online survey by Money.pl. Available from: .<strong>Social</strong> <strong>Watch</strong>7
“Three million people in New York are food insecure and the purchasing of cheap unhealthyfood has risen since the financial crisis in 2008. Many neighborhoods in Brooklynand the Bronx have few supermarkets with fresh food. One solution to this problem isCommunity Supported Agriculture, which brings together family farms, which produceorganic agriculture with the consumers, thus helping to increase inner-city access tohealthy food.”Nadia Johnson (WEDO and Just Food, New York)puts a country in an even worse fiscal positionthan would be the case if its Government had acteddecisively to support demand.”Supporting the already privilegedFurther, not all attempts to stimulate the economyare successful, or even fair. The Canadian watchersbelieve that their Government’s “short-sightedeconomic stimulus plan that does not meet theneeds of the thousands of citizens feeling the bruntof the crisis. Jobs being created by Governmentinvestments are in male-dominated industries,while women are over-represented in part-timeand precarious work and are often the first to belaid off.”Those are almost the same words used bythe Thai <strong>Social</strong> <strong>Watch</strong> report: “One of the mostcontroversial measures was the one-time THB2,000 (USD 57) cash handouts to governmentand private-sector employees earning less thanTHB 14,000 (USD 397) per month. Even thoseeligible for the fund criticized the policy as blatantpopulism as opposed to a meaningful stimulus.For example, by far the most workers in this categoryare working in the informal sector, and arethus ineligible; this also raises the issue of genderdiscrimination, since the vast majority of womenare working in the informal economy.”While Western economies inject massivenew bailout funds into their financial institutions,and in some cases re-nationalize their banks, theparliament in Kenya, according to the local <strong>Social</strong><strong>Watch</strong> coalition, is legislating the privatization ofthe few remaining strategic public assets in orderto provide a one-time government revenue injection.Among the organizations set for privatizationare the Kenya Electricity Generation Company; theKenya Pipeline Company; the state-owned sugarindustries, hotels, banks and others.In Lebanon, both the Prime Minister and Ministerof Finance have acknowledged the negativeimpacts expected from the global crisis and theneed to protect the national economy. However,the analysis by the local <strong>Social</strong> <strong>Watch</strong> concludesthat measures they are implementing speed upthe procedures needed for the country to jointhe World Trade Organization, which will meanliberalizing services and productive sectors of theeconomy.Similarly, in Thailand “to complement itsstimulus plan, the Government is also workingon a major overhaul of the regulatory structurefor financial markets. However, contrary to manyother countries that are establishing greater safeguardsto protect consumers and their economies,Thailand is moving towards wholesale deregulationand liberalization to increase the role of thecapital market in developing the economy.” TheThai watchers fear that “this initiative, led by manyof the same people involved in the 1997 financialcrisis looking exclusively for short term gains, willpave the way for a new crisis as soon as the countryis again on its feet.”In Malaysia, which relies heavily on exportsfor economic growth and imports most of itsfood, socialwatchers report that the country “willhave to brace for years of economic difficulties.There is a sharp fall in industrial production, theunemployment rate is soaring and analysts warnthat the coming recession could be worse thanthat of 1997. The Government has been criticizedfor acting too late and for focusing on bailing outcompanies. Civil society organizations are holdingprotests and public fora to raise public awarenessof the negative impacts of these crises, especiallyon the vulnerable groups in society.”This is quite the opposite of the policies beingimplemented in Venezuela, where povertyreduction is explicitly sought through massivegovernment spending, even when the policies arenot always as transparent as the local “watchers”would like.Algeria, on the other hand, seems to havelearned some lessons from the crisis. In September2008 Sid Saïd, a leader of the General Union ofAlgerian Workers, announced that the Governmenthad abandoned its “everything can be privatized”policy. The local <strong>Social</strong> <strong>Watch</strong> report estimatesthat “220 public enterprises awaiting privatizationas soon as new regulatory measures were implementedwere cut from the list of companies to besold. In addition, the Government’s inter-ministerialcouncil applied in January 2008 on bank creditand financial clean-up of public economic institutionsby erasing the debts owed them by viablecompanies. The Government has given responsibilityfor supervising these clean-up measures toan inter-ministerial working group for the financeindustry and investment promotion among smalland medium enterprises.”Invest in the peopleMany citizens from around the world can sharethe conclusion of the Peruvian watchers: “Whentimes are good, workers are typically asked to waitpatiently for the benefits of growth; in times ofcrisis, they are expected to tighten their belts.”But this is not fair and, economists now realize,does not even work. Stimulus packages that haverelied on cutting taxes to the rich and subsidizingbig banks and corporations have not produced thedesired results. Anticipating a prolonged recession,the rich and the middle classes tend to saveany additional money, instead of spending it, whilebanks have used stimulus money to rebuild theirassets instead of lending it.But when funds are channelled to the poor it isspent immediately. Not because they have a betterunderstanding of their role in contributing to therecovery of global economy, but just because theydo not have a choice.All around the world, civil society organizationsare demanding similar things in differentways. In Morocco, as reported by the local <strong>Social</strong><strong>Watch</strong> coalition, “there have been several sectoralstrikes (education, health, local communities,etc.) and a general strike as well. Amongst otherparticularly dynamic social movements, it shouldbe mentioned the various struggles fostered bythe Coordinating Committee against the High Costof Living, as well as by the National Associationsof Unemployed Professionals. Several collectiveaction strategies have been deployed, such as sitins,spontaneous popular marches and nationalmobilization days against poverty. Demands makereference to halting the increase of prices, sustainingthe Compensations Fund, applying a mobilesalary scale, bringing public services up tostandard, stopping the privatization of water andelectricity distribution, and claiming the right towork in the civil service.”In the United States, where the crisis started,and where the number of unemployed has risento 13.1 million – 5.6 million more than at the startof the recession, the Republican Party was “punished”by the electorate that elected Brack Obamaon a platform of hope and change. Now, accordingto the American <strong>Social</strong> <strong>Watch</strong> report “movementsfor human rights, green jobs, fair trade, healthcareand housing are advancing proposals and step-8 <strong>Social</strong> <strong>Watch</strong>
ping up demands for real and structural change.The U.S. cannot afford to squander this opportunityfor real change.”In Ghana, <strong>Social</strong> <strong>Watch</strong> demands support forwomen farmers “in the form of investments in inputs,such as fertilizers, and also in training andaccess to markets. These would boost agriculturewhile contributing to job creation, economic growth,and the well-being of the population.” A similar demandcomes from Senegal, the most food-importdependent country in West Africa. Where civil societyproposes “returning to traditional agriculture,duly encouraged and supported by the State.”Real wage increase should be the stimulus,concludes <strong>Social</strong> <strong>Watch</strong> in Bulgaria. And in the Philippines,“A stimulus package is definitely in orderbut, unlike the one outlined by the Government, itshould be based on a clear national strategy that isrights-based, pro-poor and sustainable that aimsto strengthen domestic demand, especially in lightof the current economic climate that is hostile toexports. It should place a premium on food security,on job creation by strengthening local enterprises tobenefit both male and female workers, and on investmentin pro-poor and green infrastructure projects(e.g., construction of a network of irrigation systems,electrification of far-flung villages and developingclean energy) as well as expansion of social and economicsecurity for the poor and unemployed. (...)Finally, renegotiation of the national debt so that thebulk of the country’s revenues go to urgently meetingthe basic needs of the people rather than to servicethe debt requires serious consideration.”In Thailand, <strong>Social</strong> <strong>Watch</strong> advocates for a widealliance similar to the one that led to the “People’sconstitution” of 1997, in the aftermath of the SouthEast Asian financial crisis. In Peru watchers emphasizethat “counteracting the damage caused bythis crisis requires boosting domestic demand byincreasing workers’ consumption and protectingnational production, as well as suspending freetrade agreements (FTAs) that leave the Peruvianmarket far too open at a time of shrinking internationalmarkets.” The Mexican <strong>Social</strong> <strong>Watch</strong> coalitionalso wants a revision of the North AmericanFree Trade Agreement: “the National Movementfor Food and Energy Autonomy, Workers’ Rightsand Democratic Freedom – in a letter dated 16 April<strong>2009</strong> addressed to Barack Obama, the President ofthe United States – suggested initiating a dialogueat the highest level on items such as the urgentrenegotiation of NAFTA and the safeguarding oflabour, social and human rights in the region. Thiswould include establishing an Asymmetrical CompensationFund for North America, negotiating abi-national agreement regarding immigration, andthe signature of an agreement in order to promotethe Treaty for the Economic and <strong>Social</strong> Developmentof North America.”In response to the crisis, more and more accountholders in Italy are entering the world ofethical finance. “The ethical finance client caresabout how his own money is used, but also abouthis bank going bankrupt. Many banks today arethus multiplying their efforts to improve their reputations.Returning to the original mandate of thebanking system to sustain the real economy hasto be a constant reference for finding a way out ofthe crisis”, argue the Italian watchers. Their conclusionhas validity everywhere: “The key wordsshould be ‘fighting poverty and redistributing resources.”n<strong>Social</strong> <strong>Watch</strong>9
THEMATIC REPORTS
A human rights-based response to the financial andeconomic crisisAlthough the legacy of the ongoing financial crisis will be gloomy, it may also have another legacy in that crucial ideas abouthuman rights can no longer be dismissed. The crisis presents a historic opportunity – and a generational responsibility – torethink decision-making in economic policy. A human rights-based approach calls for a reform of governance structures toensure that all economic policy is carried out in accordance with the human rights regime. This will ensure participation at alllevels, subjecting decisions to public scrutiny, transparency and accountability at every step.Aldo Caliari 1Center of Concern (COC)What started as a crisis in the sub-prime mortgagesector in the US, in the summer of 2007, has becomean economic crisis of global dimensions that has beencalled the worst crisis since the Great Depression.The magnitude of the crisis is shedding analtogether new light on the consequences of thetraditional approach to human rights and the regulationof finance. Under this paradigm, human rightsadvocates are told that matters of financial regulationare entirely technical and to be left to the experts,while human rights policy and concerns shouldeither be addressed independently from financialregulatory issues or simply circumscribed by whateverapproach financial experts decide to take onsuch issues. However, the crisis has revealed thedeficiencies of this approach and is emboldening ahuman rights-based critique of financial regulation.While there have been many explanations about thesources of the crisis, there is broad agreement onthe importance of a number of failures due to laxregulation and supervision of financial markets, theactors that operate in them and the instruments withwhich they operate. 21 An earlier draft of this article served as the basis for astatement issued by the International Network for Economic,<strong>Social</strong> and Cultural Rights (ESCR-Net) in consultation witha large number of human rights organizations. The author isgrateful to Nicolas Lusiani, who helped finalize the statement,as well as many human rights organizations that commentedon it and provided inputs. Responsibility for any mistakes is,of course, solely that of the author.2 For a detailed survey of the main official sources (IMF, Bankof International Settlements, Financial Stability Forum),showing the remarkable similarity in understanding theproximate causes of the financial crisis, see Caliari (<strong>2009</strong>),“Assessing Global Regulatory Impacts of the U.S. SubprimeMortgage Meltdown: International Banking Supervision andthe Regulation of Credit Rating Agencies”, paper prepared forthe symposium on Financial Markets and Systemic Risk: TheGlobal Repercussions of the U.S. Subprime MortgageMeltdown, co-organized by the Journal of TransnationalLaw and Contemporary Problems at the University of IowaCollege of Law, in conjunction with the University of IowaCenter for International Finance and Development.At the same time, it is not hard to find supportfor the notion that the enjoyment of human rights willbe significantly affected by the crisis everywhere. Forinstance, the dramatic decline in aggregate demandglobally has resulted in extensive unemployment anddestruction of livelihoods. After years of decliningunemployment, some 20 million more people willbe unemployed in <strong>2009</strong> than in 2007, according toforecasts by the ILO. 3 Some 50 million people couldbe put out of work if the crisis matches the magnitudeof unemployment in the 1990s. 4 These generalfigures hide the greater impacts on women and theirchildren, the poor, indigenous groups, ethnic minoritiesand migrant workers. Alongside increasing unemployment,social protection – conditional in manycountries on having a job – is declining. For thosewho still have a job, more unemployment meansgreater pressure on their salaries and social coverage.<strong>Social</strong> security for senior citizens is also beingsignificantly affected by the crisis, with pensionfunds registering losses of close to 50% in somecases. 5 The shift to fewer publicly funded pensionsystems of the last decades magnifies these impacts.In turn, the public revenues needed to bolster the requiredsupport for social and pension coverage havefallen substantially, limiting government options.Poverty is expected to increase worldwide by asmuch as 53 million people. 6 Even this figure may beoptimistic as it is based on the World Bank’s widelyquestioned definition of poverty and is likely to understatethe real number of the poor. 7 The decline in3 ILO. “The Financial and Economic Crisis: A Decent WorkResponse.” Discussion Paper, <strong>2009</strong> GB.304/ESP/2.4 Ibid.5 World Bank. The Financial Crisis and Mandatory PensionSystems for Developing Countries. Washington, DC: WorldBank.6 World Bank News, 12 February <strong>2009</strong>.7 The World Bank’s arbitrary classification of people livingbelow USD 2 a day as poor, and those living below USD 1a day as extremely poor, has been repeatedly criticized asfailing to capture the reality of poverty in different countrieswith very different poverty lines, and the basket of goodsthese incomes could purchase in different countries. In2008, the Bank updated its long-outdated purchasing powerparity (PPP) calculations; on this basis the number of peoplethe Bank defines as extremely poor, now those living underUSD 1.25 a day, was revised upwards to 1.4 billion, almost50% more than the previous estimate of 1 billion (see UNMillennium Development Goals <strong>Report</strong> <strong>2009</strong>: 4-7).nutritional and health status among children whosuffer from reduced (or lower quality) food consumptioncan be irreversible, and estimates suggestthat the food crisis has already increased the numberof people suffering from malnutrition by 44 million. 8The effects of the crisis are also likely to lead toincreasing inequality. The gap between richer andpoorer households that has been widening since the1990s will get bigger. The income gap between thetop and bottom 10% of wage earners had increasedin 70% of a sample of countries investigated in anILO report published last year. 9If social unrest and public expressions of desperationand frustration are met, as they have alreadybeen in some countries, with violent repression bygovernment forces, then civil and political rights willalso be threatened by the economic crisis. The risein xenophobic or otherwise discriminatory sentimentsthat is being seen in several places could alsojeopardize the rights of migrant workers and minoritygroups, who are most vulnerable to discrimination.Looking at these impacts, and accepting theconsensus about the sources of the crisis, one hasto conclude that choices made on financial regulationhave tangible consequences for the enjoymentof rights. The reverse is also true: an approach thatseeks to uphold human rights standards independentlyof addressing the impacts of financial policyand regulatory choices will prove to be woefully insufficientand ineffective.The evidence presented by this crisis, however,is no different from that revealed by other financialcrises that have periodically hit different parts of theworld in the last century, notably East Asia in the late1990s. They all bring extreme hardships and sufferingto ordinary citizens, especially the most vulnerableand marginalized, while those who profited fromfinancial speculation are not held to account for theiractions. For instance, the last few years have seennot only a continuation of trends towards increasingincome inequality but also a reported increase in the8 World Bank. Swimming Against the Tide: How DevelopingCountries Are Coping with the Global Crisis. Washington, DC:World Bank. <strong>2009</strong>.9 ILO. World of Work <strong>Report</strong> 2008: Income Inequalities in theAge of Financial Globalization. Geneva: International LabourOrganization (ILO).<strong>Social</strong> <strong>Watch</strong>13A human rights-based response
amount of wealth controlled by the “super-rich”. 10This phenomenon was possible with aggressiveinvestment strategies – read, speculation – facilitatedby loose flows of capital. 11 Yet it is low-incomegroups, not those who profited from the pre-crisisboom, who will be disproportionately affected by thepost-crisis bust.In this regard, the financial crisis also calls intoquestion the belief that the wealth earned on marketswould “trickle down” to everyone else. Nobel Prizewinningeconomist Joseph Stiglitz recently statedthat financial markets – and indeed GDP growth ascurrently measured – are not an end in themselvesbut exist to serve people’s well-being. What is goodfor finance and what is good for GDP growth aloneis not necessarily good for the economic well-beingof all. This systemic collapse calls for a new role fornational governments in economic policy-making– both domestically and, increasingly, at the internationallevel.A human rights response: the principlesA response to the financial and economic recessionthat places human rights norms at its centre is notonly necessary as a matter of justice; it will also makereforms of the financial and economic system moresustainable and resilient to future crises.A human rights-based policy response doesnot presuppose a certain type of economic system.Yet it does take as its point of departure a clear anduniversally recognized framework – a set of standardsfounded in the core instruments of internationalhuman rights law – to guide the design and implementationof economic policies and programmesto address the crisis. Human rights do not only setlimits to oppression and authoritarianism; they alsoimpose positive obligations on states to uphold economic,social and cultural rights. States have theduty to respect, protect and fulfil human rights at alltimes, especially in times of crisis.Governments have a duty to ensure minimumessential levels of enjoyment of social and economicrights as a matter of priority, and they havea specific and continuing obligation to move as expeditiouslyand effectively as possible towards fullimplementation. Human rights standards call forgovernments to ensure that no deliberately retrogressivemea sures are taken – for example, cutting10 According to a 2007 study by Merrill Lynch and Capgemini,“The number of people with USD 1 million or more to investgrew by 8% to 9.5 million last year, and the wealth theycontrol expanded to USD 37,200 billion. About 35% is in thehands of just 95,000 people with assets of more than USD 30million.” See Thal Larsen. P. “Super-rich Widen Wealth Gapby Taking More Risks.” Financial Times, 28 June 2007.11 Thal Larson (op. cit.), quoting a Merrill Lynch’s executivewho said the difference between the rich and super-richreflected “a willingness by the very rich to take greater risks”.essential programmes – unless this is fully justifiedby reference to the totality of the rights provided forin the core human rights treaties and in the contextof the full use of the maximum available resources.Even in the face of public revenue limitations, statesmust marshal the maximum available resources toensure that full implementation of economic andsocial rights is progressively realized in the shortand longer term.In addition, the principle of non-discriminationrequires that states ensure that all measures adoptedin response to the crisis avoid disproportionate effectsand that deliberate, targeted measures are putinto place to secure substantive equality of accessto basic services across countries and populationgroups. Disadvantaged members of society mustbe protected as a matter of priority, even in times ofsevere resource constraints.While the primary human rights obligations ofstates rest within their jurisdictions, they are also – inthe spirit of the UN Charter and applicable internationallaw – required to contribute to internationalcooperation in the full realization of human rights.When acting within inter-governmental forums suchas the UN, the World Bank and ad hoc meetings of theGroup of 20 (G-20), states must guarantee that theirpolicies are consistent and conducive to the realizationof human rights. In this regard, those states thathave enjoyed a more powerful position in decisionmakingon global economic policies have had greaterresponsibility for causing, through their actions andomissions, this global meltdown. This means thatthey also carry greater responsibility for the mitigationof the consequences and for taking the stepsneeded to assure a just and sustainable way forward.Under international law, governments must also ensurethat human rights standards take primacy overtrade, investment or finance commitments.Basic human rights principles include socialparticipation, transparency, access to information,judicial protection and accountability. People mustbe able to participate in public life and to meaningfullyinteract with the decision-making process affectingthem, thus rendering the processes affectingtheir lives open to contest. Additionally, statesmust ensure that no one is above the law. Individualswhose rights have been affected must enjoy accessibleand effective remedies to seek redress. Thoseresponsible for harms, including private actors, mustbe brought to justice, and future activities affectinghuman rights must be prevented.Reform of decision-making processes oneconomic policyThe crisis facing us today provides a historic opportunityand indeed a generational responsibilityto rethink the manner in which decision-making oneconomic policy has so far taken place. A humanrights approach calls for the reform of governancestructures to ensure that all economic policy at thedomestic and international levels is carried out inaccordance with the legal content that the humanrights regime offers.Too often, official decisions on the regulation offinancial capital flows, for example – or the need todispense with them – are made by a few “experts”,often including representatives of the private-sectorindustries themselves. This process in essence closesavenues for public participation in fundamentalpolicy and legal discussions that affect everyone,with particular impacts on the most vulnerable andmarginalized. A human rights-based policy responsewould transform this process, ensuring participationat all levels and subjecting decisions to public scrutiny,transparency and accountability at every step.Accountability and participation in economicpolicy-making are also impaired when intrusivepolicy conditions are demanded by international financialinstitutions and donors or by inflexible rulesin trade and investment agreements. States shouldbe empowered to assert that their human rights obligationstake priority over economic commitmentsor investors’ rights.These same human rights principles must beinstilled at the international level, where cooperationin the realization of these rights is an obligation ofall states, particularly those responsible for harms.Despite the far-reaching consequences of financialpolicy measures, the inter-governmental bodies settingthe agenda and designing financial reforms,such as the Basel Committee on Banking Supervision,the Financial Stability Forum and the G-20, limitparticipation from the majority of countries. The IMFand the World Bank for their part continue to be ruledby principles regarding decision-making that confinedeveloping countries to a marginal role and limittransparency. Equally important, other internationalorganizations that have the express mandate to protecthuman rights are excluded from the design ofpolicy responses in these forums.The UN, as the guardian of the internationallegal framework, is the most appropriate and mostlegitimate forum to discuss the reforms that are necessaryto restructure the international economicand financial system on a human rights foundation.Its role would be greatly strengthened by theestablishment of a Global Economic CoordinationCouncil, as recommended by the UN Commissionof Experts. 12 Such a body, operating under the principleof constituency-based representation and at alevel equal to the General Assembly and the Security12 United Nations General Assembly. “Recommendations ofthe Commission of Experts of the President of the GeneralAssembly on Reform of the International Monetary andFinancial System.” A/63/838. 29 April <strong>2009</strong>.Thematic reports 14 <strong>Social</strong> <strong>Watch</strong>
Council, could provide greater effectiveness, representationand transparency in policy-making toaddress economic policies as they relate to developmentpriorities beyond the narrow purview of financeor economic ministries.Banking and financial sector regulationA striking aspect of the crisis is the extent to whichfinancial entities managed to transfer the burden oftheir irresponsible risk-taking to the most vulnerablein society, and it was specific government policiesdesigned to deregulate the financial system as awhole that enabled this. Governments – domesticallyand in concert with others – must thereforeadopt measures to protect the human rights of theirpeoples through robust banking and financial sectorregulation. They must also strengthen accountabilityand the rule of law by reining in criminal behaviour.Where certain acts are not currently seen as crimes(e.g., “tax evasion” in certain countries) or as offencesthat triggers legal liability, then appropriate legislationshould be passed and enforced. Furthermore,governments must take serious action to ensure thatthose individuals and countries affected through nofault of their own find remedy.Banks are the most regulated of all financialsector entities. Yet their behaviour has increasinglybeen ruled by principles of supervision that rely ontheir own internal mechanisms for risk management,rather than externally developed standards shaped bynational supervisors. In response to pressure fromindustrialized countries, many poor countries haveprogressively adopted these same principles, partlylured by the possibility of attracting internationalbanks. They also acceded, for the same reason, tothe unrestricted movement of capital by such banks.Deregulation to attract foreign banks has often nothad the desired payoffs, however. Empirical evidenceshows no link between liberalized capital accountsand increased economic growth. Access to credit,especially by the most marginalized groups, hasshown little improvement, while large internationalbanks have tended to eliminate the domestic bankingsector on which the neediest depend. Today, thosecountries with the greatest exposure to and dependenceon foreign banks are the ones worst affectedby the financial crisis, as these institutions retreatback to their home countries and refuse to lend innow fragile economies.Reforms in the banking sector should includethe space for national governments to regulate theservices provided by any bank in the interest of ensuringbroad access to credit and other key socialfunctions. If state-provided banking services areconsidered a better option for guaranteeing rights,they should be fully pursued.Hedge funds, private equity funds and creditrating agencies have been left to self-regulatory“African-American people and indigenous peoples have a common history of exploitationand conquest, and are disproportionately suffering the impacts of the crisis. Our currentAmerican Empire was built on the so-called American dream, but we see that stolen landand stolen labor was also used to construct this country, the wealthiest the world hasever known. From the outset, financial institutions aided and abetted profiteers seekingto build empire by any means necessary. We must reject the neoliberal theology andconstruct more progressive theological theories.”Jean Rice (Picture the Homeless, New York)schemes. Hedge funds have been allowed to become,in many countries, the mainstream mechanismfor ordinary citizens to hold their savings, placingcitizens’ access to social security at risk. Hedgefunds and private equity funds have also forced suddenunemployment and other labour rights violationsthrough their undue influence on the decisionmakingprocesses in the restructuring of companiesaround the world. Extraordinary profits were alsofostered by leverage strategies that relied on tax exemptionson debt financing, thereby putting sourcesof public revenue at risk. This has limited the fiscalexpansion possibilities of many governments just atthe time they need it most to spur job creation andstrengthen social protection measures.Recognizing that the activities of these financialactors have profound, measurable impacts onhuman rights, the state must not abdicate its dutyto protect. Governments should work together toadopt all necessary measures to prevent hedgefunds, private equity funds, derivative instrumentsand credit rating agencies from adversely affectinghuman rights.The liberalization of capital and the creation ofimpenetrable tax havens have made it more difficultto engage in progressive taxation of capital flows,and further eroded the tax base in countries of bothNorth and South by facilitating the shifting of profitsfrom where they are earned to other low- or zerotaxregimes. This has negative outcomes on publicrevenue, which is critical for governments to be ableto meet their human rights obligations. Governmentsmust live up to their duties toward their people byprotecting public revenue in a transparent and accountableway, closing tax havens and taking appropriatemeasures to control the movement of capitaland strengthen fiscal accounts.Central banks for their part are public agenciesand, as part of the government, have obligationsto human rights. The principle of “central bank independence”has too often meant independencefrom social and human rights interests. It has notmeant, however, freedom from interference by privatefinancial interest groups. Central banks mustrecognize that independence does not mean lackof responsibility in serving the interests of societyas a whole. They must balance the need to achievestable and low inflation with their obligations to battleincome inequalities and stabilize peoples’ jobs andlivelihoods through various credit and supervisoryinstruments.The crisis and human rights in the SouthThe extent to which the crisis compromises theachievement of human rights commitments may bemore dramatically exposed in the South. Developingcountries that for a long time were told they mustrely on export-led growth and free market policiesare now suffering the most due to the drop in externaldemand caused by the crisis. They should beallowed special flexibility, so they can fully take intoaccount their human rights obligations as they developtrade policies that can deal with the crisis andforestall export-related vulnerabilities in the future.The export profile and strategy chosen by a country,and its balance between exports and domestic marketneeds, should be carefully guided by its humanrights obligations, in particular the need to ensurenon-discrimination and progressive realization ofrights.Debt levels are also set to rise in developingcountries. Not only will the crisis worsen their tradeand financial situations, making more borrowingnecessary, but also an effective crisis response thatdoes not resort to deficit spending to expedite recoveryis likely to undermine minimum core levelsof well-being. However the human rights consequencesand impacts for the future of borrowingcannot be ignored. Part of the increase in debt isdue to the proliferation of rapid lines of credit bymultilateral financial institutions including the WorldBank, purportedly to help developing countries copewith the crisis. These lines of credit are disbursingvast amounts of money with little or no opportunityfor citizen control and public accountability, with realrisks of completely bypassing social and environmentalsafeguards. Part of the increase in debt levelscomes as a result of countries having to refinancedebt in stressed private capital markets where fundshave become scarce, as developing countries try in<strong>Social</strong> <strong>Watch</strong>15A human rights-based response
vain to compete with industrialized countries in orderto fix their troubled banking sectors and implementstimulus plans.While in the short term these lines of creditmay be necessary to allow governments to stabilizespending, human rights principles are critical todetermine: (1) the strictly necessary borrowing thatneeds to be undertaken, (2) the demands that shouldbe met through concessional finance rather thanborrowing, and (3) the accountability and transparencyprinciples that will ensure new lending is donein a responsible way, with appropriate social control,so as to prevent the generation of more illegitimatedebts that future generations will be forced to pay.Some forecast that the budgetary cuts provokedby the crisis, and the shift of funds to fiscal stimuluspackages, will lead donor countries to cut back ontheir development aid. With the enjoyment of humanrights of so many people at stake due to the financialcrisis, donor governments must not regress on theirobligations to international assistance by cuttingdevelopment aid in any way.Human rights-oriented economic stimuluspackagesThe outline of a human rights approach to the crisiswould not be complete without reference to the veryparticular role that human rights standards shouldplay in domestic economic stimulus packages. Particularlyrelevant in this regard are the aforementionedprinciples of non-discrimination, transparency,accountability and participation.Economic stimulus packages must not in anyway discriminate. Governments should evaluatethe distributional consequences of the packagesacross society to ensure that equitable benefits areexperienced across lines of gender, ethnicity, sexualorientation and class. Extra measures may need tobe taken to promote substantive equality for thosehistorically marginalized and especially vulnerable.Gender-sensitive policies, for example, require women’sparticipation in the design and implementationof stimulus packages. Decisions throughout the lifeof the stimulus must also be open to question andbased on participation and transparency in order tostrengthen public accountability.One particular area of priority for governmentsin their fiscal stimulus packages should be the stabilizationand strengthening of social protectionsystems for all, especially the most vulnerable. Theright to social security is recognized in the UniversalDeclaration of Human Rights and in numerousinternational human rights treaties, and all stateshave an obligation to immediately establish a basicsocial protection system and progressively expandit over time according to their available resources.The strengthening of such systems both fulfils theshort-term duty to protect people from an economicdownturn and contributes to the longer-term economicpriority of investing in people.Yet at present not all countries have the ability toinvoke economic stimulus packages in order to avoidregressive measures in the fulfilment of rights and toboost their national economies. While guaranteeingthat such packages meet basic human rights standardsat home, governments should likewise upholdtheir obligation to international cooperation by fillingthe finance gap in the global South.It is important that, in an effort to stabilize employmentand livelihoods, stimulus packages do notexpand demand along patterns of consumption thatare out-dated and untenable in both rich and poorcountries alike. The continuation of a high-carboneconomy, by depleting the Earth’s resources andincreasing greenhouse gas emissions, will onlycompound the challenges that many countries alreadyface in their attempts to uphold human rightsstandards.Concluding remarksWe should expect a gloomy legacy to the ongoingfinancial crisis, more so than to any other crisis thatthe current generation has seen. But alongside this,there is a legacy of important ideas that can no longerbe dismissed and that should be at the heart of therestructuring of the global economic system. The undeniablerelevance to financial and economic policychoices of the human rights commitments that theinternational community has endorsed since 1948 isone of them. Humanity would be well advised not toforget at what cost the modern human rights instrumentswere forged. nThematic reports 16 <strong>Social</strong> <strong>Watch</strong>
Gender Equality and the Financial CrisisEquality between women and men has to be a key element in the development of anti- crisis measures and policies, since thefinancial crisis is starting to take hold in sectors dominated by female workers and rates of violence against women are increasing.A gendered analysis is required in order to understand the depth and scope of the crisis, as well as to design appropriate responses.However, in addition to the challenges, the economic crisis is also presenting opportunities for women’s empowerment andleadership, as has been seen already in countries in which women have emerged as leaders.Nancy BaroniCanadian Feminist Alliance for International ActionMirjana Dokmanovic, PhDAssociation Technology and Society,Serbia and Women in Development Europe (WIDE)Genoveva TishevaBulgarian Gender Research Foundationand Bulgarian-European Partnership AssociationEmily SikazweWomen for ChangeGender inequality is not a new phenomenon; however,the current economic crisis has exacerbatedgender inequalities throughout the world. As theglobal recession persists, bailouts and equity loansare being negotiated between governments and privateindustry; public services are increasingly beingprivatized to “protect” government coffers; andcorporate taxes are being cut to benefit corporationsand the wealthy. In all of this, it is increasingly clearthat women stand to be profoundly disadvantagedby the global recession and national responses tothe crisis.The UN reports that while men’s job lossesinitially increased faster than women’s, men’s jobloss rate is now slowing down, while that for womenkeeps going up. The global unemployment rate forwomen could reach as high as 7.4% compared to7.0% for men. 1 While the financial crisis first hit theUS and Europe in the mostly male-dominated financialand manufacturing sectors, its effects arestarting to take hold in sectors dominated by women,namely the service industry and retail trade.Women in the developing world are particularlydisadvantaged due to the financial crisis. Their weakercontrol over property and resources, over-representationin piece-rate or vulnerable employment,lower earnings and lower levels of social protectionmake them, and their children, more vulnerable tothe financial crisis. As a result, women are in a muchweaker social and economic position than men interms of their ability to cope with the recession.Women may have to work longer hours and takeon extra forms of employment while maintainingprimary household care responsibilities.1 See: ILO. Global Employment Trends for Women. Geneva:International Labour Office, <strong>2009</strong>.The Women’s Working Group on Financing forDevelopment has noted that the financial crisis offersa critical opportunity to change the global financialarchitecture to adhere to rights-based and equitableprinciples. The group calls for an alternative to theG-20 decision to replenish the International MonetaryFund. Such a move would only perpetuate failed neoliberaleconomic policies; reinforce past structural inequalities;and increase the indebtedness of developingcountries. This scenario continues the antiquatedand unjust approach of a few rich nations workingon behalf of many nations of varying circumstances.The Women’s Working Group calls for solutions andremedies for the financial crisis coming from a broad,consultative, inclusive process, not a process housedin the IMF, but in the United Nations, where women’shuman rights are enshrined and where each memberstate has a voice at the table. 2Government approaches to addressing theeconomic and financial crisis are not, for the mostpart, based on human rights or equality principles.Many countries in the global North have negotiatedhuge bailouts using public monies to prop up majorindustries. Many are also investing in infrastructureprojects, focused primarily on male-dominatedtrades (construction, transport, etc.) rather thaninvesting in soft infrastructure where women traditionallyare the principal beneficiaries (health care,child care, income supports, etc.). Unemploymentinsurance programmes, where they exist, generallycover only full-time workers and rarely take into accountthe part-time workforce in which women aretraditionally over-represented. <strong>Report</strong>s of violenceagainst women are increasing; lacking economicand social security, women have a more difficult timeescaping violent situations.2 The Women’s Working Group on Financing for developmentis coordinated by Development Alternatives with Womenfor a New Era (DAWN) and includes the following networks/organizations: African Women’s Development andCommunication Network (FEMNET), Arab NGO Networkfor Development (ANND), Association for Women’s Rightsin Development (AWID), Feminist Task Force-Global Call toAction against Poverty (FTF-GCAP), Global Policy Forum(GPF), International Council for Adult Education (ICAE),International Gender and Trade Network (IGTN), InternationalTrade Union Confederation (ITUC), Network for Women’sRights in Ghana (NETRIGHT), Red de Educación Popularentre Mujeres para America Latina y el Caribe (REPEM), ThirdWorld Network-Africa (TWN-Africa), Women’s Environmentand Development Organization (WEDO), and Women inDevelopment Europe (WIDE).The just-released US Department of State reporton human trafficking 3 notes that the globaleconomic crisis is contributing to labour and sextrafficking, as increasing unemployment and povertymake people more vulnerable to traffickersand there is a growing demand for cheap goodsand services. The report predicts that the economiccrisis will push more businesses underground inorder to avoid taxes and labour protection lawswhile hiring non-union labour, which will increasethe use of forced, cheap and child labour by cashstrappedmultinational companies.According to Amnesty International, the economiccrisis is aggravating existing human rightsproblems and some very important issues are notgetting the attention and resources they need, includingpoverty, reproductive rights and violenceagainst women. Governments are investing in settingthe market straight again, but the market is notgoing to address human rights problems. In the pastgovernments used security as a means to underminehuman rights, now the economic crisis has producedanother imperative for governments, and they areagain ignoring human rights.The reactions to the economic crisis involve cutbacksin financing for gender equality mechanismsand the implementation of gender equality legislation,which will jeopardize gender equality legislationand inevitably reinforce existing gender stereotypes.Related to this is the decreased financial support forwomen’s organizations which are an essential part ofthe global women’s movement.Some regional trends in the gendered impactof the economic crisis were identified at a EuropeanCommission conference on “Equality betweenMen and Women in Times of Change” (15-16 June<strong>2009</strong>). The problems identified are similar to theglobal trends: in Europe, women are overrepresentedin insecure, part-time and short-term jobs,in large part due to their disproportionate householdand care-giving responsibilities. Despite theEU standards on gender equality in employment,the problems of unequal pay and need to balancework with family life remain. Although the crisishas affected both women and men in Europe, it hasaffected them differently.3 US State Department. Trafficking in Persons <strong>Report</strong>.Washington, DC, <strong>2009</strong>. Available from:.<strong>Social</strong> <strong>Watch</strong>17Gender Equality and the Financial Crisis
“The financial crisis has definitely affected Benin. Today many households can only affordjust one meal a day. Forced marriages have increased, as a way for families to sell their girlsand to cope with the crisis. It has set back advances made to stop violence against women.Gender-based impacts of the crisis are on the rise, for example, girls’ enrollment in schoolsand their presence in the formal job market is decreasing. Women are the first to lose theirjobs, and are often left to care for their families without any social assistance.”Sonon Blanche (<strong>Social</strong> <strong>Watch</strong> Benín)“The Bulgarian Government only admitted that Bulgaria was being affected by the crisis inFebruary of this year. As of now, 44,000 people have lost their jobs due to the crisis, 96%of them being women. Many of the affected industries – such as the garment, shoe, foodservice, and the public administration – are feminized. The crisis is also having an impactin violence against women. Usually there is an average of 17-19 cases per year presentedto the court in my city; this year we have seen 42 cases so far. In many cases men areabandoning their women and children when she have been fired, so these families nowhave to survive on EUR 50 or less per month they receive as unemployment insurance.Many of the women interviewed had been sexually harassed in the work place, and hadsuffered problems finding work in the formal sector.”Milena Kadieva (Gender Research Foundation, Bulgaria)Among other things, the conference concludedthat there is a need for additional measures to encouragewomen to participate in the labour market;equality between women and men must be a key elementin the development of anti-crisis measures andpolicies; the participation of women in private sectorleadership positions should be encouraged; businessesmust adopt family-friendly policies; and it isessential to invest in women’s education and training.Furthermore, the importance of gender equalitylaws and mechanisms in time of crisis was outlined.Strengthening women’s rightsduring the crisisAn important initiative which was recently announcedby the ILO Director-General Juan Somavia is the creationof an emergency global jobs pact designed topromote a coordinated policy response to the globaljobs crisis and to the increase in unemployment,working poor and those in vulnerable employment. 4This response is aimed at avoiding global social recessionand mitigating its effects on people. The pactwill help both the extraordinary stimulus measurestogether with other government policies better addressthe needs of people who need protection andwork, in order to accelerate combined economic andemployment recovery.Amnesty International recently launched a DemandDignity campaign to fight for rights threatenedby the economic crisis, and for those neglected in the4 ILO projections of working poverty across the world indicatethat 200 million workers are at risk of joining the ranks ofpeople living on less than USD 2 per day between 2007 and<strong>2009</strong>. See: ILO. Global Employment Trends Update, May<strong>2009</strong>.response to it. The fundamental issue is empoweringpeople living in poverty. The campaign focuses onstrengthening their voice along with governmenttransparency and accountability, so that they canhold governments accountable for commitments togender equality and women’s rights, and can participatein decisions that affect their lives. Special emphasisis put on women’s rights and the participationof women in decisions related to their rights.Besides these initiatives, special attention is tobe payed to the challenges and opportunities that theglobal crisis presents for women’s empowermentand leadership. We are witnessing positive examplesof women emerging as high level leaders as a resultof the global economic and financial crisis, most notablyin the case of the new Prime Minister of Icelandand the new President of Lithuania, both of whomwere elected in large part due to voter frustration withthe failed economic policies that contributed to theimpact of the crisis in those countries.According to the Women’s Working Groupfor Financing for Development, the rights-basedresponse to the crisis requires, inter alia, immediatereform of the global financial architecture to effectivelymanage liquidity shortages and balanceof payments imbalances, and ensure that policyresponses do not shift the burden of family welfareand service provision to the care economy. TheWomen’s Working Group advocates setting in placenational, regional and international measures andprocesses that respect national policy space, and areconsistent with internationally agreed standards andcommitments, including those regarding women’srights and gender equality. Trade policies and agreementsshould enable countries to move away fromthe imbalances of the WTO regime and the failedDoha round. Moreover, these measures should beaccompanied by the cancellation of the illegitimatedebts of developing countries and the creation of adebt workout mechanism with the participation ofdebtor governments, women’s rights groups andother civil society organizations.At the UN High Level Conference on the GlobalFinancial and Economic Crisis and Its Impact on Development(24-26 June <strong>2009</strong>), the Women’s WorkingGroup reminded UN Member States that womencannot wait, and that this is the time to act on fundamentalreform of the global financial architecture. 5Despite the unanimous call to action by civil societyorganizations, the conference outcome document didnot meet expectations. In order to safeguard a fragileconsensus, Member States have shown only weakcommitment to reforming the financial architecture,while the central role of the UN (the so-called “G-192”), in economic governance nearly vanished.Women’s rights advocates welcomed languagein the document that recognizes women as facing“greater income insecurity and increased burdensof family care” (para. 3) and the recognition thatwomen and children had been particularly impoverishedby the crisis (para. 7). The document furtherrecognized that responses to the crisis need to havea gender perspective (para. 10), mitigation measuresshould take into account gender equality, amongothers (para. 21), and leadership appointments in theInternational Financial Institutions (IFIs) should takegender balance into account (para. 49). The big disappointmentwas the lack of any strong commitmentto follow-up. The consistent reference to a “UnitedNations Development System” throughout the textrepresents a narrowing of the UN role to a limitedarena of humanitarian assistance and developmentcooperation. The conclusion of civil society groupswas that the outcome document represented a clearattempt to keep the G-192 out of the global economicgovernance system.Looking forward, however, the Women’s WorkingGroup has stressed that women will continue todemand economic justice and gender justice withinthe UN arena, despite the continued resistance ofthe IFIs and the G-20 to put people, instead of profit,at the centre of development. Despite proven failureof their neoliberal policy prescriptions and irresponsiblefinancial governance system, the IMFand the World Bank continue to promote their flawedpolicies and impose conditionalities on developingcountries, acting not as special agencies of the UN,but as if the UN were their special agency. In the UNsystem, in which all Member States should be equal,some—now widened to 20—are more equal thanthe remaining 172. The Women’s Working Groupstatement states its strong opposition to this practice,and demands that all the Member States haveequal votes, equal rights and equal obligations at thedecision-making table.5 Women’s Working Group on Financing for Development(WWG-FfD). “Time to Act: Women Cannot Wait. A call forrights based responses to the global financial and economiccrisis,” June <strong>2009</strong>.Thematic reports 18 <strong>Social</strong> <strong>Watch</strong>
Gendered impacts of the crisis in Eastern EuropeGlobal trends in the impact of the global crisis on women are characteristicalso of countries in Eastern Europe, as seen in the national reports includedin this volume. In the Czech Republic, for example, the reforms in publicfinances, such as lower taxation for the richest and increasing Value AddedTax (VAT) on basic articles, have put the largest share of the burden on themost deprived, women included. The same happens with the introductionof fees for services and the attempts to decrease social insurance taxes,especially for the richest taxpayers. Even before the crisis, unequal pay anddiscrimination based on gender and age continued to be important issues.Additional gender equality problems in the Czech Republic are due to theGovernment’s conservative policy and lack of support for childcare institutions.Discrimination against female immigrants, particularly from Asia, hasalso been exacerbated as a result of the crisis.In Hungary, one of the Eastern European countries most affected by thecrisis, the new Government has agreed to a number of measures, includingcutting pensions, public sector bonuses, maternity support, mortgagesubsidies, energy subsidies and public transport subsidies as a condition ofthe IMF rescue package to address the impact of the economic crisis. All ofthese will negatively impact women and increase their care-giving burden,as will some of the additional measures being planned, including reductionsin childcare support and childcare benefits, as well as assistance to youngcouples with children.In Poland, the decrease in family incomes resulting from the economiccrisis risks the pauperization of whole social groups, particularly among thelower and middle classes. It is very likely that this will in turn have a moresignificant impact on women, since they are traditionally responsible for thefamily’s well being. According to some analysts, the crisis is also likely toamplify the grey zone in the Polish economy, as many, especially small entrepreneurs,try to minimize labour costs and avoid taxation and other costsassociated with formal employment. Consequently, it seems very likely thatthe growth of the grey economy will affect women more than men, as theyare more often engaged in low-paid jobs, especially in the private servicesector (e.g., in retail). Other gender equality issues are: the shrinking of thehighly feminized garment sector and the limited labour market mobility dueto higher housing rental costs, especially in small towns in economicallydepressed areas.In Bulgaria, NGOs and trade unions would not agree with what they sawas a Government policy shift towards accepting the need to reduce socialexpenditures in times of crisis. These expenditures were already scarce atthe beginning of the currency board arrangement and any further reductioncould rupture the country’s social peace. Unemployment is increasing (itshould be noted that the unregistered unemployed equal – or even exceed–the registered) and will affect mainly young people that lack an employmentrecord, low-skilled workers, elderly workers, people with disabilitiesand women.In Serbia, trade unions have accepted the Government’s proposal topostpone the implementation of the General Collective Bargaining Contract,and to delay some of the employers’ financial obligations towards workers,including paying worker benefits, “to assist the private sector to get out ofthe economic crisis”. Workers’ rights are openly violated under the excuseof maintaining economic stability, while big companies and tycoons arefree to refrain from paying taxes, salaries and other benefits. It was recentlyannounced that maintenance of the new stand-by arrangement with the IMF,worth USD 3.96 billion, will lead to cuts in pensions, education and healthcare, all of which will further deteriorate women’s social position. And inSlovakia, despite initial predictions that the country would not be affected,official estimates of job losses topped 30,000 in April <strong>2009</strong>. In these conditions,discrimination against women in the labour market persists.As a rule, in all the countries of the CEE/CES region, women constitutethe majority of temporary, seasonal, and contract labourers as well as lowskilledworkers, who are unlikely to be covered by formal unemploymentinsurance or social protection schemes. As the July <strong>2009</strong> Development& Transition report warns, the crisis seems likely to affect women in suchareas as employment and social safety nets, unpaid care work, education,migration and gender based violence. For example, in Kazakhstan, limitedaccess to the financial resources necessary for formal business activitiespushes women into self-employment and small-scale commercial activitiesin the informal sector. Women’s vulnerability could easily deepen as thecrisis unfolds. The scale of female labour migration is often under-reported,and with it the impact on families dependent on their wages for survival. Onthe other hand, women may find themselves in an even more vulnerableposition when they return home, rejected by their communities and familiesand perceived as prostitutes. 1 n1 Sperl, L. “The Crisis and its consequences for women”, in Development & Transition,No.13, <strong>2009</strong>.<strong>Social</strong> <strong>Watch</strong>19Gender Equality and the Financial Crisis
Gendered impacts of the crisisin Sub-Saharan AfricaWhile in the industrialized countries companies have been bailed out, in the South, the crisis has ledto the intensification of privatization and to relaxing the collection of revenues from foreign investors.In many Sub-Saharan African countries, companies have taken advantage of the situation byfurther freezing wage increases and redundancies and even closing down operations in the nameof reducing overhead costs. For instance, in Zambia in order to address the effects of the globalfinancial crisis, the Government first and foremost removed windfall taxes on mining, in a bid toprevent investors in the mining sector from closing their operations. All of these measures havenarrowed revenue collection. Consequently Governments in the South have continued to cut downon the provision of social services such as education and health.Women continue to be the first to lose their jobs and are increasingly finding themselvesengaged in petty informal trading of vegetables and tomatoes as a coping mechanism.What is more worrying is the absence of women’s voices in the resolution to the crisis. Malebiaseddecisions continue to be taken to resolve the crisis, in order to serve men’s interests first.There is therefore a need to increase women’s participation in decision making, in order for theirissues to be included in national measures to address the global economic and financial crisis. nCivil society organizations, including women’sorganizations and networks, call for a rights-basedapproach to development. A review of the implementationof this approach by UN agencies shows that itcan be effective in eradicating poverty, developingdemocracy and human rights, and supporting vulnerablegroups, particularly women, to participatein decision-making. 6 The application of this conceptcontributes to the realization of states parties’ commitmentsderived from the Convention on the Eliminationof all Forms of Discrimination against Women(CEDAW) and the Beijing Platform for Action.However, there is a need to improve this approachin order to address effectively the needs ofwomen and to improve gender equality relations.There are a number of shortcomings that derive fromexcessive generality, weak implementation mechanisms,and insufficient application of the human rightsconcept. The rights-based approach to developmentis grounded in the principles of participation, responsibility,non-discrimination, equality, special attentionto vulnerable groups, empowerment, linkage to humanrights standards, progressive realization, nonregression,and rule of law. However, this approachto development does not target the dismantling of thesocial, economic and political relations that are basedon discrimination and unequal distribution of wealth,power and resources. The human rights framework isnot sufficient by itself to change the neoliberal ideologythat significantly undermines the realization ofhuman rights and women’s rights, as the majority ofhuman rights standards are not binding and there isto date no binding mechanism established to obligestates to put their commitments into practice.A gender analysis shows that such an approachrequires developing good analytical tools for understandingthe inequalities inherent both in theneoliberal market economy and in gender relations.Feminist economists have analysed gender inequalitiesin macroeconomic policy-making and have developedsuch tools as gender-specific indicators,gender-responsive budgeting and gender-sensitivestatistics for use along with a rights-based approachto strengthen women’s empowerment in the processof development and demand corporate responsibilityof international financial institutions. n6 Inter-Agency Standing Committee, Growing the ShelteringTree, Protecting Rights through Humanitarian Action,Programmes & Practices Gathered from the Field, UNICEF;Moser, C., Norton, A. (2001) To Claim Our Rights: LivelihoodSecurity, Human Rights and Sustainable Development,Overseas Development Institute, London OECD, 2006.Integrating Human Rights into Development: Donorsapproaches, experiences and challenges. OECD OHCHR,Draft Guidelines: A Human Rights Approach to PovertyReduction Strategies, UN, 10 September, 2002.Thematic reports 20 <strong>Social</strong> <strong>Watch</strong>
The global food price crisisIn developing countries the poor spend upwards of 50% of their income on food – the poorest spend 80% or more. The increasein food prices has increased not just poverty, but also hunger. Some elements that have influenced the rise in agriculturalcommodity prices are, among others: scarce water supplies, production costs, droughts and climate change. We need a newfood system, a system that respects political, social, cultural, and environmental rights as well as the economic importance ofagriculture. Governments need to integrate respect for the universal human right to food in all economic policy planning.Sophia MurphySenior Advisor, Trade and Global Governance ProgrammeInstitute for Agriculture and Trade PolicyStarting in 2005 and peaking in July 2008, many agriculturalcommodity prices on world markets reachedtheir highest levels in 30 years. In some cases theprices set new records. From March 2007 to March2008, the price of rice went up 74%, and most of thatin just a few weeks during March 2008. The price ofwheat more than doubled, rising 130% during thesame one-year period, March 2007 – March 2008. 1Then, as oil prices collapsed (from peaks of overUSD150 a barrel in June 2008 back to USD 40 a fewmonths later), agricultural commodity prices alsofell on world markets. Nonetheless, as FAO and otherscontinue to remind us, food prices have hardlyfallen in many developing countries, and they remainhigher than they were two or three years ago. In 10countries the latest prices are the highest on record.FAO reports the persistent high prices are mostevident in sub-Saharan Africa, where every countryconsidered is facing rice prices far above those of 12months before. Prices of maize, millet and sorghumare higher in 89% of African countries compared to ayear earlier. Other regions, the article notes, are alsoaffected, especially rice prices in Asia and maize andwheat in Central and South America.The poor spend upwards of 50% of their incomeon food, while the poorest spend 80% or more. Thismakes the recent food prices increases unaffordable.The result is not just increased poverty (no money tospend on health care, education, a business ventureor anything else), but also increased hunger, whichmeans decreased productivity; stunted physical andmental development of foetuses, babies and children;and, ultimately, death. None of these deathsare inevitable. Consider that in 1966, one in threepeople faced chronic hunger. Almost 35% of the globalpopulation went hungry, day after day. By 2005,the number was closer to one in seven, at around15%. This dramatic reduction in the incidence of1 The price increases were far more dramatic in nominal USdollars than in other currencies. Since 2002, world maizeprices have risen 143% in nominal dollars, but only 37% inreal (i.e., constant) Euros. The many developing countriesthat buy their food imports in a currency linked to the USdollar have seen prices jump much more than those that aremore independent, or whose currencies are linked to theEuro instead.hunger occurred as world population was growingrapidly – the net effect was to save billions of peoplefrom lives compromised by poor health and reducedmental capacity.Chronic hunger is something we – governments,societies, community organizations, andcitizens – can eliminate.Why did it happen?Price reflects a relationship between supply and demand,complicated by currency values and speculationon what the future holds. There are supply,demand and institutional factors at work.Supply shortfalls are a normal part of agriculture.Typically, a supply shortfall triggers increased productionthrough higher prices as more farmers are drawnto plant the crop that is fetching the higher prices.There is generally a lag (crops take time to mature)and often the supply response overwhelms the potentialdemand, so that there is a common pattern inagriculture whereby price spikes usher in periods ofhigh supply and relative price depression, which lastmuch longer than the price rise. This phenomenonis linked to what economists call ‘inelastic demand’:people must eat to survive, but once fed, look to spendtheir money elsewhere. The richer the people are,the smaller the share of their income they spend onfood. This is also known as Engels’ Law, named forthe famous 19 th century economist who was the firstto write about this behaviour.In the 21 st century, some things are a bit different.Not least, there is a new and theoreticallyunlimited source of demand for agricultural commoditiescoming from the biofuels sector, togetherwith mounting stress on the quantity and quality ofsoil and water available and the uncertainty abouthow climate change will affect growing conditions.There is disturbing evidence to suggest the past 50years of steadily improving agricultural productivitymight be coming to an end.These are structural changes that have dramaticimplications for public policy to ensure food securityand future agricultural production. If the food crisis isabout short-term or reversible problems (e.g., a badlaw, a need to emergency cash flows, a need to subsidizefertilizers) then governments will do very differentthings, than if the crisis is understood to be about moreprofound problems in food and agriculture systems.The following is a quick review of the causesgiven for the sudden and dramatic increase in agriculturalcommodity prices. There is ongoing debateabout how important each of these elements was andcontinues to be.First, supply:WaterIrrigated agriculture accounts for almost 70% ofworld water use. Irrigated agriculture produces 40%of global food on 20% of the world’s agriculturalland. It is highly productive but the amount of waterused is often unsustainable. An estimated 1.4 billionpeople live in areas with scarce water supplies. A dietrich in meat and dairy products, common in mostdeveloped countries and increasingly common inmuch of the global South, puts a lot more stresson the world’s water supply than a diet based onvegetable protein.StocksWorld food stocks have halved since 2002. The worldis now estimated to have roughly two months reserve,which is the minimum cushion recommended by theFAO in case of supply disruption. Low reserves meansmall changes in supply have a big effect on prices.Stocks-to-use ratios for grains have not been thislow since 1972-1973; wheat reserves in particularhave never been this low. Governments and privatefirms trusted that low stocks at home could be compensatedfor by access to a global market under liberalizedtrade agreements, so falling reserves did notimmediately trigger higher prices, as they would oncehave done. When bad weather hit several of the majorglobal suppliers simultaneously, and several yearsrunning, no one was prepared with an adequate cushionand prices started to climb—belatedly but fast.There is some discussion as to whether lowstock levels were all that important. For instance,David Dawe at FAO suggests much of the drop wasthe result of China alone, which decided to run downits very considerable stocks to a more manageablelevel. 2 Yet it is possible to argue that the more China(which is home to more than 15% of the world’spopulation) depends on world markets, the moreimportant a strong reserve becomes, because Chinaalone needs so much food to maintain domestic foodsecurity. Dawe also points out that stocks of somecrops, such as wheat, have been on a downwardtrend for decades. Here, too, though the question2 Dawe, David. “The Unimportance of ‘Low’ World GrainStocks for Recent World Price Increases”, ESA WorkingPaper No. 09-01, Geneva, February <strong>2009</strong>.<strong>Social</strong> <strong>Watch</strong>21The Global Food Price Crisis
“Sixty nine per cent of Sudanese are living under the line of poverty, especially womenworking in the agricultural sector. In recent years, health services have improved, butthe poor are still suffering, due to the increase in food prices. The Sudanese civil societyreclaims more financing for development, but from a multidimensional – not justeconomic – perspective. Development must be strategic, involving the participation ofwomen at the grassroots level.”Niemat Kuku (Gender Research and Training Center, Sudan)arises, how low is too low? Wheat remains fundamentalto food security. Is there a point where therewill simply be too little in stock for wheat to be reliablyavailable in world markets should one or more bigexporters face poor harvests?Production costsFertilizer, oil, pesticides and seed prices rose verysteeply between 2007 and 2008. Fertilizer priceshave risen more than any other commodity group(including oil) since 2007 and since 2000 (i.e., inboth the short and long term). Oil price increaseswere responsible for much of the food price inflationin developed countries and hurt poor countries, too.Higher input costs make it more expensive to producefood and reduce net farm incomes in rural areasthat depend on external inputs for their agriculture.DroughtDroughts appear to be more frequent and morewidespread today than at any time in recent history,exacerbated by desertification and deforestation,poor urban planning, and the overuse of groundwatersupplies. In 2007, most of the major wheatexporters, including Australia, Argentina and the USsuffered weather-related crop problems. The resultwas less supply in world markets.Climate changeClimate change is affecting rainfall and temperatures,both vital to agricultural productivity. Even a1ºC-2°C change (a threshold most experts expect usto exceed) will reduce food production in tropical andsub-tropical regions. Experts predict 75-250 millionpeople in Africa will be affected by climate change,with agricultural production in some rain-fed regionslosing half their potential by 2020. In Central, Southand Southeast Asia, falling river levels will reduceirrigation and therefore output. The UN’s Food andAgriculture Organisation estimates 65 countries –home to roughly half the world’s people – will seecereal production fall due to climate change. 33 UN Food and Agricultural Organization (FAO). Fallingprices in perspective, <strong>2009</strong>. Available from: .Then, demand:PopulationEach year, another 78 million people are added to theearth’s total population. Growth is tapering off, butwe are expected to reach approximately 9 billion peoplebefore the earth’s population stabilizes in 2050.DietMore importantly, what people eat is changing. Eachyear, more people eat like rich Westerners. In otherwords, they eat too many calories, especially fat andsugar; and, they eat foods raised, processed andtransported using too much water and energy. Indeveloped countries, an estimated one half of foodis wasted, much of it thrown out in the household,by supermarkets or in restaurants whose portionsare too large. 4 Western diets create degraded ecosystemsand result in bad health. The change in whatthe rich eat makes the diet of the poor more expensiveby reducing the land available for traditionalstaples, such as cassava, millet, wheat, and localvegetables.BiofuelsBiofuels (also called agrofuels) are liquid fuels madefrom plant matter. Most commercial biofuel todayis made from sugarcane, corn, canola, palm oil orsoy oil. Considerable acreage has also been givento japtropha plantations, which is a plant rich in oilthat can be used to make biodiesel. Since 2006, bothdemand and supply of biofuels have grown exponentially.Biofuels are thought to have consumedover 7% of the global oil seed supply and about 4.5%of the global cereal crop in 2007. Estimates of howthis demand has affected world food prices rangesfrom 10% to more than 70%. The results dependon assumptions. Nonetheless, the expectation ofcontinued growth in biofuel demand, supported byambitious targets for use in the European Union andthe United States, has triggered higher speculativeprices in futures markets and expanded productionof biofuel feedstocks, including on environmentallysensitive land, such as peat bogs in Indonesia andthe Cerrado of Brazil.4 The Swedish International Water Institute estimates thatthe developing world also wastes half the food it grows,because it is left in the fields, is poorly stored, or cannot betransported for lack of decent roads and other transportinfrastructure.Finally, a third element to consider is markets,which mediate the relationship between supply anddemand. The governance of markets has changedconsiderably in the past 20 years. New trade, investment,and commodity exchange regulations haveplayed their part in the food price crisis.SpeculationMost agricultural commodities are traded on internationalexchanges. Until recently, commodityexchanges (most of which are based in the US orUK) were governed by laws that limited the participationof actors that did not intend to buy or sellphysical commodities, but were only interested inprice speculation. The laws thereby controlled thelevel of speculative activity. The laws were graduallychanged starting is the late 1980s. In the grainexchange, for example, speculators had been limitedto 11 million bushels of grains. In 2008, the two largestindex funds had a combined position of morethan 1.5 billion bushels. As regulations were relaxed,investment from speculators grew very fast, fromUSD13 billion in 2003 to USD 260 billion in March2008. Commodity market prices directly affect howmuch food governments can afford to import andwhether people get enough to eat.InvestmentGovernments worldwide have liberalized investmentlaws considerably since the advent of structuraladjustment programmes and the proliferation ofregional and bilateral trade agreements. Many countrieshave reduced or eliminated laws that prohibitedforeign ownership of land; others have reduceddemands on foreign companies to reinvest profitsin the host country, reducing the potential benefitof the investment for the host country economy.Recently, there has been a pronounced increase inthe lease or purchase of land abroad to grow food orfuel for re-export to the investing country or, whereprivate firms are involved, for export to whereverdemand dictates. For example, a London-based firm(Central African Mining and Exploration Company)has leased 30,000 hectares in Mozambique to growsugarcane. In Kenya, the Government has signeda deal with Qatar to lease 40 000 hectares to growfresh fruit and vegetables for export to Qatar. Thesedeals increase pressure on land, water and infrastructure,and risk crowding out food productionfor local markets.TradeGlobal and regional trade agreements have changedthe way world prices interact with domestic foodmarkets. As trade barriers are reduced, world pricesare more and more directly connected to nationalprices – they are not necessarily (or even often) thesame, but they have a greater impact on domesticprices. Global markets are often promoted as providingaccess to a global supply pool. The unexaminedaspect of this integration, however, is the creationof a global competition among consumers. Withoutprotection, poor consumers inevitably lose the fight,allowing globalization to pull more and more land intoproducing fuel and animal feed rather than food.Thematic reports 22 <strong>Social</strong> <strong>Watch</strong>
Structural causesIt is worth looking further at some of the issues thatunderlie the crisis. For example, there is widespreadagreement on the need to invest on increased productivecapacity. The proportion of Official DevelopmentAssistance flowing to support agriculture indeveloping countries dropped from 11.5% in the1980s to about 3% in recent years. Domestic investmentfell, too, especially in developing countries.This trend needs to be reversed and there are promisingsigns that that is happening. But then the questionremains: investment in what kind of productivetechnologies and systems? The U.S. Government,the Gates Foundation and a number of think tanksand private firms are pushing biotechnology as theway to increase output in developing countries. Theslogan they have coined is: ‘A New Green Revolutionfor Africa.’ Yet the green revolution has already beentried in Africa. It failed. If the problem is seen as onlyone of technology and inputs, then the new effortsare doomed to fail as well.The World Bank, among others, has been encouragingcountries to liberalize fertilizer marketsand even to subsidize (though national and donorresources) access to fertilizer and pesticides. This isnot a model for sustainability. The policy also makessmall producers dependent on purchased (and oftenimported) inputs, increasing their dependence on acash economy and reducing their market power.There are alternatives. For example, the potentialfor agro-ecology is enormous, and increasinglywell-documented as well. In 1988, floods affectedan area northwest of Dhaka in Bangladesh calledTangail. The Bangladeshi NGO Unnayan BikalperNitinirdharoni Gobeshona (UBINIG) [Policy Researchfor Development Alternatives], alreadyworking with weavers in the district, offered theirhelp. UBINIG staff met women who complained thatthe pesticides used in agriculture were damagingtheir health and that of their children, and killing theuncultivated leafy greens and fish that they relied onfor food. The villagers started work on a project todevelop an agricultural production system that didnot use chemical inputs. The project has grown andis now called “Nayakrishi Andolon,” which meansNew Agriculture Movement in Bengali. The movementinvolves over 170,000 farm households infifteen different districts across Bangladesh. Somelocal governments have now declared their jurisdictionspesticide-free. 5The International Assessment of AgriculturalKnowledge, Science and Technology for Development(IAASTD), a four-year project that involvedover 400 experts and that 58 governments to datehave ratified, says, “AKST (agricultural knowledge,science and technology) must address the needsof small-scale farms in diverse ecosystems and tocreate realistic opportunities for their developmentwhere the potential for improved area productivity5 See Mazhar, F. et al. Food Sovereignty and UncultivatedBiodiversity in South Asia, Academic Foundation: New Delhi;International Development Research Centre: Ottawa, 2007pp. 3-4. Available from: .is low and where climate change may have its mostadverse consequences.” 6Oil and biofuelsUnderstanding the importance of oil as a centralcomponent of industrial agriculture helps to understandthe deeper structural causes of the food crisis.In effect, the Green Revolution used plant breedingand technology to augment photosynthesis – thesolar powered agricultural system that has fed humanity,and every other living thing on the planet,for all time – with fossil fuels. The Green Revolutionrelied on seeds bred to respond to higher levels ofinorganic fertilizer and water. And it achieved extraordinaryresults, with significantly increased yields perplant. An earlier technological revolution had alreadyreplaced human and animal labour on farms with oildrivenmachines. With the Green Revolution, fossilfuels also started to provide fertilizers, pesticides andelectricity for irrigation pumps.One implication of the growth in oil as a vitalingredient of food production is that agriculture hasbecome a major source of greenhouse gas emissions.Another is that agriculture has become dependenton a finite resource. A third is that on-farmeconomics have been transformed with the replacementof inputs generated on farm (energy, seeds,fertilizers, pest control) with inputs that must bepurchased. For many farmers, North and South, thepurchased inputs are imported, making their priceless predictable.Recent numbers from the United States showincreases in farm costs in 2007 and 2008 were thelargest ever year-over-year increases on record: USD20.5 billion in 2007 and USD 36.2 billion in 2008.They are expected to fall to USD 22.7 billion in <strong>2009</strong>,but is still 9% higher than in 2007. 7 Fuel, feed andfertilizer prices all contributed to the significantlyhigher costs.There is a still a debate raging about the role ofbiofuels in the food crisis. No one denies that biofuelsdemand played a role in higher food prices, buthow much and to what effect is still contentious.Higher prices for most farmers are a necessity. Atthe same time, the interests of poor consumers, includingsmall farmers who are often net consumersof food, must be protected. But higher prices forfarmers are only a part of the answer. The challengeis how to ensure a more equitable division of thevalue of commodities among farmers, processorsand retailers. The challenge for policy-makers is toredress the disproportionate market power of foodcorporations.Investments in land abroadThe food crisis has triggered a worrying phenomenon:an explosion of interest among investors in6 International Assessment of Agricultural Knowledge, Scienceand Technology for Development (IAASTD). ‘ExecutiveSummary, Synthesis <strong>Report</strong>’, 2008. Available from: .7 See: . Accessed on 7 May <strong>2009</strong>. Numbersupdated regularly.land purchases or leases abroad. The press hasdubbed the phenomenon a land grab. The BarcelonabasedNGO, GRAIN, listed in October 2008 some 180proposed deals in their on-line review of the issueentitled, Seized! The 2008 land grab for food and financialsecurity. International Food Policy ResearchInstitute (IFPRI)’s report on the issue, published inApril <strong>2009</strong>, estimates 20 million hectares of landhave been sold since 2006 in some fifty deals, mainlyin Africa. 8The two big drivers are food security concernsand demand for biofuels. Net-food importing countries,such as Saudi Arabia and South Korea, do nottrust that world markets are a sufficient guaranteeof supply. Meanwhile, the mandates and targetsfor minimum incorporation of biofuels into energypolicy, particularly in the EU and the United States,but also in countries around the world, has createda big interest among private investors in growingbiofuel feedstocks (including soybeans, palm oil,jatropha for biodiesel; and, sugar cane and maizefor bioethanol).The deals are troubling from a number of angles.The power relationships are asymmetrical,with big firms and (mostly) richer countries dealingwith small and often highly impoverished countries,many with weak institutions of governance. 9 Thehost countries include Sudan, Pakistan, Ethiopia,Madagascar, and Zimbabwe. Some of the countriestargeted for investment receive food aid from theWorld Food Programme, including Cambodia, Niger,Tanzania, Ethiopia, and Burma. 10The right to foodThe General Comment on the Right to Food says:“the roots of the problem of hunger and malnutritionare not lack of food but lack of access to availablefood”. 11 As a recent Institute for Agriculture andTrade Policy (IATP) report says, “The United Statesis food secure, but the Government fails to protect itspeople’s right to food. The US Department of Agriculturereports that some 11% of US households (and18% of US children) lack access to adequate food atsome point in the year. That statistic represents 12.6million people. Yet, even after exports, the domesticsupply of food in the US could feed everyone in thecountry twice over.” 12The report goes on to contrast the United Stateswith Nepal, one of the world’s poorest countries,“Nepal is … taking steps to realize the right to food.8 Van Braun and Meinzen-Dick. Van Braun, J. and Meinzen-Dick, R. “Land Grabbing by Foreign Investors in DevelopingCountries: Risks and Opportunities”, IFPRI Policy Brief, 13April <strong>2009</strong>.9 Cotula, L., Dyer, N. and Vermeulen, S. Bioenergy And LandTenure: The Implications Of Biofuels For Land Tenure AndLand Policy. International Institute for Environment andDevelopment (IIED) and FAO: London and Rome, 2008.10 World Food Programme Operations List. Available from:
A new Government, formed after the end of a decadeof civil war, included the right to food sovereignty intheir interim constitution. On 25 September 2008,the Supreme Court of Nepal, recognizing this right,ordered the Government of Nepal to immediatelysupply food to 32 food-short districts.”What is the international community doing?In April 2008, UN Secretary-General Ban Ki-mooncreated a High-Level Task Force on the Food Crisis(HLTF). The stated purpose was to “promote aunified response to the challenge of achieving globalfood security.” 13 The task force was meant tocoordinate the UN and Bretton Woods agencies tocreate a collective response to the food crisis. Thetask force includes some 15 UN agencies, officesand programmes, as well as the World Bank, IMFand WTO. It lacks resources and it is not yet clearwhat role it can play.The HLTF did produce the ComprehensiveFramework for Action (CFA) in July 2008. 14 The documentreflects the strengths and weaknesses of itscomplicated composition: it does a good job of settingdown the multiple causes that contributed to thecrisis, and also makes some important recommendations.On the other hand, it also promotes macroeconomicpolicies that undermine its own recommendations.15 For example, it highlights the importanceof investing in small-scale farmers. Indeed, if thereis one acquis from the food crisis, starting with theWorld Bank’s World Development <strong>Report</strong> of 2008,it is the acceptance in multilateral discourse of theimportance of a political voice for small farmers. TheCFA underlined this point. Yet it went on to urge governmentsto complete the Doha Round of multilateraltrade negotiations, and supported more Aid for Tradefunding. The Doha Agenda has virtually nothing tooffer countries facing a food price crisis. 16 The agendais the product of another time, however recent, andlooks increasingly out of place in the changed realityof tight commodity supplies, ambivalence abouttrade among major food exporters, and a seriouscredit crunch that is contributing to what the WTOexpects will be the biggest contraction in global tradevolumes since the Second World War. 1713 See:
Justice to cool the planetThe current global recession may end up being a blessing in disguise for the world, since less growth implies less stress on theenvironment and emissions need to be slowed down. It offers a golden opportunity to deliver on social and environmentaljustice. Only a fairer deal will lead to sustainability, and a bail-out to eradicate world poverty, rehabilitate the environmentand stabilize the climate is mandatory for this. It will not be possible, however, until the rich change the way they produce andconsume and learn to live within sustainable limits. At the same time, developing countries should avoid the path taken by theindustrial ones and shift to clean production and consumption right away.PRRM/<strong>Social</strong> <strong>Watch</strong> PhilippinesIsagani R. SerranoThe human signature on current climate changeis much clearer now. How to undo what has alreadybeen done and avoid catastrophe are whatthe UN Framework Convention on Climate Change(UNFCCC) 1 and its derivative the Kyoto Protocol 2and accords are all about. However although actionneeds to be taken, the standoff between developedand developing countries continues with no clearend in sight. Meanwhile even the best scientistsseem to be underestimating how fast the climateis really changing. For example, while the FourthAssessment <strong>Report</strong> of the Intergovernmental Panelon Climate Change (IPCC) projected that the ArcticOcean would retain some ice year-round until about2050, 3 it was shown shortly afterwards that thisgreatly underestimated the extent of sea-ice decline,and the ocean is expected to lose its summer sea icemuch sooner. 4It is clear something has got to give here, beforethe threshold is passed where climate change is irreversible.Yet neither side will give way. Not the richcountries because they think that they are being pressuredto meet difficult and demanding targets beforethe poorer countries do anything. And not the poorercountries either because they think they are beingasked to adhere to the same targets as rich countriesbefore they have had a chance to catch up.Game over?In the 1880s, after we started burning fossil fuels andhad built today’s industrial society, the concentrationof carbon dioxide (CO 2) in the atmosphere was 2801 United Nations. United Nations Framework Convention onClimate Change. 1992. Entered into force 1994. Availablefrom: .2 United Nations. “Kyoto Protocol to the United NationsFramework Convention on Climate Change.” 1998. Availablefrom: .3 IPCC. “Climate Change 2007: Synthesis <strong>Report</strong>.” FourthAssessment <strong>Report</strong> of the Intergovernmental Panel onClimate Change. Geneva: International Panel on ClimateChange.4 Lovett, R. “Arctic Ice Melting Much Faster Than Predicted.”National Geographic News, 1 May 2007. Available from:< news.nationalgeographic.com/news/2007/05/070501-arctic-ice.html>.parts per million (ppm). By the 1950s, it had alreadyreached 315 ppm. When NASA scientist JamesHansen first sounded the alarm on climate change inthe late 1980s, he established 350 ppm as the highestaffordable level “if humanity wishes to preserve aplanet similar to that on which civilization developedand to which life on Earth is adapted”. 5However we are past that point already. It is 380ppm now and counting, with CO 2in the air said to beincreasing by about two ppm each year. In fact, thereis no consensus yet on the level of safety. Some say450 ppm. Others say it should be much lower. Atthe Poznan Conference of the Parties in December2008, the former Vice-President of the United States,Al Gore, unsuccessfully tried to reach consensusaround 350 ppm. Rajendra Pachauri, chairman of theUNFCCC/IPCC has said that, without basic reformsby 2012 we may find the climate system spinning outof control and that global CO 2emissions must startto decline by 2050. 6The IPCC avoids prescription, however, andlimits itself to offering policy makers a portfolio ofscenarios. Since 1990 it has drawn up 40 such scenarios,built on four major storylines. These scenariosare categorized according to whether the future isfocused on economic (denoted A) or environmental(denoted B) development and whether it is orientedon the global (number 1) or regional (number 2)level. So A1 is economic/global, A2 economic/regional,B1 environmental/global and B2 environmental/regional.The A1 scenario is further divided intothree different scenarios: fossil fuel intensive (A1F1);balanced between fossil and non-fossil (A1B); anda transition to non-fossil fuels (A1T). Business-asusual(BAU), the scenario that assumes doing nothingon Greenhouse Gas (GHG) emission reduction,is of course out of the question.Meanwhile, the signs are mounting that theworst-case scenario may come earlier than imagined.Extreme events such as storms, floods anddroughts have devastating impacts on water resources,food security, agriculture, ecosystems,biodiversity and human health. In August 2003there was a heat wave in Europe that killed nearly15,000 people in France and 35,000 in nine other5 Hansen, J. Testimony to the US Congress, 23 June 1988.6 McKibben, B. “Think Again: Climate Change.” Foreign Policy,January/February <strong>2009</strong>. Available from: .European countries. There were recently Californiaand Australian forest infernos alongside unprecedentedfloods elsewhere. Such events have beenanticipated in all IPCC assessments; however theyare now common everywhere and happen whenleast expected. The prolonged droughts in majorfood-producing countries could cause a 20%–40%decline in food production in <strong>2009</strong>. Diseases againstwhich progress was being made, such as TB, malariaand dengue fever, are having a resurgence inmany pla ces. Deforestation, which accounts forabout 17% of GHG emissions, has recently been exacerbatedby the rising demand for biofuels. Primaryforests were lost at the rate of 6 million hectaresa year between 2000 and 2005, and biodiversitydeclined steadily along with them.Justice in climateA more even-handed world stands a better chanceof surviving and adapting to climate change. Settinglimits to growth (regardless of whether fearedthresholds may have been crossed), and establishingequity between and within nations and communities,between women and men, present and future generations,should make the world more resilient.The principle of climate justice derives directlyfrom the UNFCCC, whose article 3.1 establishes thatcountries should act “on the basis of equity and inaccordance with their common but differentiatedresponsibilities and respective capabilities”. This iscomplemented by two other principles in the RioDeclaration on Environment and Development andAgenda 21 that resulted from the Earth Summit in1992: precaution and polluters pay. The first saysthat if you are not sure about the benefit and consequencesof what you are going to do, do not do it.The second is self-explanatory. Climate justice is alsoexplicitly stated or implied in many other UN declarationsand agreements.Although climate change spares no one, rich orpoor, it has a greater impact on the poor even thoughthey have less to answer for. Developing, or so-calledNon-Annex I, countries contributed far less to GHGemissions than developed or Annex I countries, butthey are destined to suffer more. The Least DevelopedCountries (LDCs), who contributed the least in pollution,will suffer the most. Many small island developingstates may one day just disappear from the map.Sharing the effort to stabilize GHG concentrationsin the atmosphere at whatever emission<strong>Social</strong> <strong>Watch</strong>25Justice to cool the planet
“In Colombia, there are about 84 indigenous tribes with 64 distinct languages, who livein the border regions of Colombia with Venezuela, Peru, and Brazil, precisely where themost precious reserves of natural resources are located. We fight for the defense of ourterritory and the preservation of our culture. Due to this fight, since the 1970s, more than1,400 of our leaders have been killed. Right now, many indigenous regions are militarizedand where they aren’t militarized, there are paramilitary forces present. The Governmentis trying to displace our communities so they can negotiate with transnational companiesto exploit the natural resources, such as timber and oil, in these areas. Indigenouspeoples in Colombia are opposed to free trade agreements, because these treaties causegreater displacement of our communities and instead of opening markets, only increasethe frontier of US power.”Jesús Avirama (Regional Indigenous Council of Cauca, Colombia)CHART 1. Annual global emissions ofcarbon from fossil fuels and cementproduction, 1850–1999, and concentrationof CO 2in the atmosphere, parts permillion volume (ppmv), 1850–2000Global carbon emissions, billion tons per year876543210Global CO 2 concentrationGlobal carbonemissions1850 1875 1900 1925 1950 1975 2000stabilization scenarios may be decided – 350 ppm,450 ppm, 550 ppm, 650 ppm – must be based on thedifferentiated share of responsibilities for what hashappened and continues to happen, and on the differentlevels of development. Countries and peoplesof the world can be divided into three groups: overconsumersor high emitters; under-consumers orunder-emitters; and sustainers or those living withinsustainable limits. This classification correspondsrespectively to (a) industrial countries – all of theOrganisation for Economic Cooperation and Development(OECD); (b) least developed countries,including most of Africa; and (c) advanced developingcountries such as Brazil, China, India and someother East and Southeast Asian countries.In every country, rich or poor, however, therewill be some who do not neatly fit these categories:a rich Filipino, for example, has a similar lifestyle toand therefore the same CO 2emission level as – hisrich American counterpart. The 600 or so million ofnon-poor, middle class and rich Chinese and Indians400350300250200150100Source: P. Tans, Climate Monitoring and DiagnosticsLaboratory, National Oceanic and AtmosphericAdministration, USA.500CO 2 , ppmvwould be a mix of sustainers and high consumers. Theexcluded under-consumers or under-emitters wouldbe the over 2 billion people who are poorly fed, poorlyeducated, jobless, voiceless, lacking access to healthcare, water and sanitation, and living in degraded environments.They must have primacy in the right todevelopment and should be the main beneficiaries ofresource transfers between and within countries.To avert catastrophe the deal is fair and simple:the rich in both rich and poor countries must give upmuch more so that the poor and all of us may livesustainable lives.Mitigation, the heart of justiceThere are many proposals on the table regarding the“fair share” principle, for example, the green developmentrights, common but differentiated convergence,contraction and convergence by 2050, etc.They are all basically about climate stabilization.High-emission countries must commit to drastic,deep and binding cuts on their GHG emissionsfrom their 1990 levels and help developing countrieswith “soft” money and clean technology. The contractionrequired from them is huge whatever the agreedemission stabilization scenario. This ranges betweena 25%–50% cut or more between 2020 and 2050. Thereduction covers all six gases of the Kyoto Protocol:CO 2, methane (CH 4), nitrous oxide (N 2O), hydroflourocarbons(HFC), perflourocarbon (PFC) and sulphurhexafluoride (SF 6) – which are translated into CO 2tonsequivalent (CO 2teq) in each country’s GHG inventory.Developing countries have a right to development,but this right should not be taken as a licenseto pollute the environment. The right to developmentunder the climate justice principle is not only aboutgrowing the economy; more importantly, it is aboutthe satisfaction of basic needs leading to a decentle vel of security and well-being for all. The authorsof the Greenhouse Development Rights Frameworksuggest an income of USD 9,000 per person per yearas the level at which all countries could converge. 7This would mean that developing countries, all of them7 Baer, P., Athanasiou, T., Kartha, S. and Kemp-Benedict, E.The Greenhouse Development Rights Framework: The Rightto Development in a Climate Constrained World. 2 nd Edition.Berlin: Heinrich Böll Foundation, 2008. Available from:.falling below that line, should be entitled to transfers(ODA, technology, etc.) and allowed to increase theiremissions as they shoot for that income goal.What is the equivalent carbon footprint of USD9,000 GDP per capita? Probably about 9 tons of CO 2per person. Even if rich countries agreed to comedown to that level and poor countries succeeded inreaching it, and even if our lives run on a mix of fossilfuels and renewable energy, imagine how muchenergy and carbon that would mean, especially consideringworld population projections of 7.6 billionfor 2020 and 9.1 billion for 2050.Against that income level the targets set underthe Millennium Development Goals (MDGs) lookinadequate even if met by 2015 (something that atcurrent pace is not going to happen). Developingcountries must avoid the unsustainable path taken byindustrial countries. The earlier they shift to productionand consumption of clean energy the better forthe planet and all of us. With sustainable agricultureand fisheries, conservation of water and forest resources,development of renewable energy and a reductionin poverty and inequality, they stand a chanceof adapting to climate change. A truly green revolutionin both agriculture and fisheries and avoidingdeforestation can contribute to carbon capture andreducing the carbon footprint.Non-Annex 1 countries are spared from bindingmitigation commitments but they can help, forinstance, by levying a progressive carbon tax on theirown rich over-consumers and by moving early ontowards soft energy and low-carbon paths to development.Keeping to its carrying capacity 8 shouldbe every nation’s goal. Stabilizing the population atsustainable levels should be a particular concern forcountries such as the Philippines, which is projectedto grow to over 100 million in 2020 and to nearly 150million by 2050.High-emission countries insist that the deck isstacked in favour of the more advanced developingcountries, where emission levels are rising fast. Atthe 13th Conference of the Parties in Bali, Indonesia,in 2007 they suggested that binding emission reductiontargets should equally apply to the likes of Chinaand India. This is a tricky and problematic issue andsays a lot about the complexities of “negotiating”justice. It is true that China’s emissions are risingfast because of its high growth levels and relianceon dirty coal. But the current carbon concentration inthe atmosphere has been the result of a continuousbuild up over many generations, and China or Indiahad relatively smaller contributions to this (althoughtheir carbon imprint, because of their current highgrowth, will show up later).Moreover, China’s emission level on average isstill way below that of the US on a per person share.China is using up the world’s raw materials, but it isalso accepting mountains of waste that other countriesdo not want to keep in their own backyards.It is recycling the world’s waste and undertaking8 The number of individuals who can be supported in a givenarea within natural resource limits and without degrading thenatural social, cultural and economic environment for presentand future generations. See .Thematic reports 26 <strong>Social</strong> <strong>Watch</strong>
sustainable agriculture and massive tree planting. Infact, China probably has the highest carrying capacityanywhere on the planet – taking care of one ofevery six members of humanity in a comparativelysmall space. However one might question who ispaying for the fact that China produces cheaply for allof us. Another question is why Beijing cannot shift atonce to clean production and produce more durablegoods. If China can help bail out the global economywith its surplus money, why not spend it in cleaningup its own mess and shift to a low-carbon path ofdevelopment?US carbon emissions, a quarter of the world’stotal, remain at very high levels. Its per capita CO 2emission level has seen little or no reduction at allsince 1990. The World Development <strong>Report</strong> 2006:Equity and Development put it at 19.8 tons/personthat year. 9 Europe, Japan and other industrialized nationsmay have succeeded in cutting down but theirefforts still fall short of the Kyoto Protocol’s minimalstandard. Overall, annual global CO 2emissions havenot let up since 1990. To some this a sign of prosperity,meaning an indication that economies are continuingto grow. To others it is ominous, as it bringsus closer to the point of no return. Contraction andconvergence efforts must result in preventing an averageglobal temperature rise of more than 2 degreeCentigrade by 2050 – the threshold we are advised torespect or die. This is not much time, obviously.Adapt or perishPoor countries cannot afford to wait for dramaticmitigation efforts to happen. They might perish beforethey get justice. With or without assistance, theyhave to find ways to adjust to climate change beforeit is too late.Defined in the IPCC’s Third Assessment <strong>Report</strong>,but already inherent in the agency’s original mandatefrom 1988, adaptation refers to adjustments in ecological,social or economic systems in response toactual or expected climatic stimuli and their effectsor impacts. 10 It refers to changes in processes, practicesor structures to moderate or offset potentialdamages or to take advantage of opportunities associatedwith changes in climate. It involves adjustmentsto reduce the vulnerability of communities andregions to climate change and variability.The User’s Guidebook on the Adaptation PolicyFramework (APF) of the UNDP-Global EnvironmentalFacility defines adaptation as “a process by which strategiesto moderate and cope with the consequencesof climate change – including climate variability – areenhanced, developed and implemented”. 11 The APFincludes seven components: defining project scope;assessing current vulnerability; characterizing future9 World Bank. World Development <strong>Report</strong> 2006: Equity andDevelopment. Washington, DC.10 IPCC. “Climate Change 2001: Impacts, Adaptation, andVulnerability.” Contribution of Working Group II to the ThirdAssessment <strong>Report</strong> of the Intergovernmental Panel onClimate Change. Cambridge: Cambridge University Press.11 Dougherty, B. and Spanger-Siegfried, E. User’s Guidebookon the Adaptation Policy Framework. Boston: StockholmEnvironment Institute US and United Nations DevelopmentProgramme (UNDP), 2005.“The current crisis is global, so policies to end it must also be global but linked with localmovements. We believe that stimulus packages should be invested in things like greeninfrastructure and social infrastructure, which would allow for the creation of greenjobs, an acknowledgement of the disproportionate impacts of the crisis for womenworkers, and the recovery of the care economy. These kind of policies are spelled outin the ILO Global Jobs Pact. The UN is the only place for the countries bearing the bruntof the crisis to have a representative voice. The labor movement is working within theframework of the UN and trying to bring in the Decent Work and Green Jobs Agenda. Itis not just a question of increasing development aid and being a bit more generous – assome industrialized countries would like to assert. There is a need for social transformation.Multilateral institutions need to be systemically reformed and we need specificmechanisms to ensure that we have enduring solutions to the financial and economiccrisis.”Gemma Adaba (International Trade Union Confederation)CHART 2. Projected impacts of climate change.FoodWaterrisks; developing an adaptation strategy; continuingthe adaptation process; engaging stakeholders; andenhancing adaptive capacity. Decisions about how touse this framework will depend on a country’s priorwork, needs, goals and resources. 12According to the IPCC, the requirements thatneed to be met for a country to have a high adaptivecapacity include: a stable and prosperous economy;a high degree of access to technology at all levels;well-delineated roles and responsibilities for implementationof adaptation strategies; systems in placefor the national, regional and local dissemination ofclimate change and adaptation information; and anequitable distribution of access to resources. Thisbasically excludes non–Annex I countries.Growing concern about adaptation has beenaddressed by decisions of the Conference of the Parties(COP). The Marrakesh Accords that came outof COP-7 delineated instruments and mechanisms12 Available from: .Global temperature change (relative to pre-industrial)0 o C 1 o C 2 o C 3 o C 4 o C 5 o C 6 o CEcosystemsExtreme WeatherEventsSmall mountain glaciersdisappear - water suppliesthreatened in several areasRisk of Abrupt and MajorIrreversible ChangesPossible rising yields insome high latitude regionsExtensive Damageto Coral ReefsFalling crop yields in many areas, particularly developing regionsSignificant decreases in wateravailability in many areas, includingMediterranean and Southern AfricaFalling yields in manydeveloped regionsSea level risethreatens major citiesRising number of species face extinctionRising intensity of storms, forest fire, drughts, flooding and heat wavesIncreasing risk of dangerous feedbacks andabrupt, large-scale shifts in the climate systemSource: UNEP/GRID-Arendal (2008). “Projected Impact of Climate Change.” UNEP/GRID-Arendal Maps and Graphics Library. 12for supporting adaptation, including the creationof three new funds: (a) The Special Climate ChangeFund under the UNFCCC for supporting the “implementationof adaptation activities where sufficientinformation is available”; (b) the LDC Fund dedicatedto the preparation and implementation of nationaladaptation programmes of action (NAPAs), which“will communicate priority activities addressing theurgent and immediate needs and concerns of theLDCs relating to adaptation to the adverse effects ofclimate change”; and, (c) the Adaptation Fund set upunder the Kyoto Protocol and getting advice from theGlobal Environmental Facility on its operations.Sustainable agriculture and fisheries, sustainableforestry and watershed management, and ecologicalwaste management are adaptation paths thatcan help cool the planet. Ensuring food security callsfor a radical change in the way farming is done, aview that has long been advocated by farmers’ movementsworldwide. This got a strong boost from theInternational Assessment of Agricultural Knowledge,Science and Technology for Development (IAASTD)<strong>Social</strong> <strong>Watch</strong>27Justice to cool the planet
“In El Salvador, we have been facing for years now the impact of climate change, sufferingfloods 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 emigrationof our people, especially the youth. We must work for a new era in which development ismeasured by the well-being of humanity and that of Mother Earth, and not just by materialwealth.”Marta Benavides (GCAP Feminist Task Force, El Salvador)“While industrialized Northern countries are mainly responsible for greenhouse gas emissionscausing climate change especially in per capita terms, countries of the South, andthe poor and women in particular, will bear a bigger burden of the adverse environmentaleffects of climate change and its socio-economic impacts. Some of these effects are thedisplacement of people living in low-lying coastal areas; the loss of sources of livelihood;food insecurity; and reduced access to water. From an ecological debt perspective, rich,industrialized countries do not only have the responsibility of drastically cutting greenhousegas emissions down, but they also have an ethical and moral obligation to providecompensatory and reparative finance to developing countries to fund climate changemitigation and adaptation efforts.”Athena Peralta (World Council of Churches)at a conference held in April 2008 in Johannesburg,South Africa. The IAASTD admitted to the shortcomingsof the Green Revolution technology and recognizedthe critical role of indigenous knowledge andsustainable agriculture in attaining food security.It released a report indicating that modern agriculturewill have to change radically from the dominantcorporate model if the world is to avoid social breakdownand environmental collapse. 13The report – opposed by Australia, Canada andthe US – also criticized genetic modification (GM)and the conversion of farmlands to biofuel production.It said that the so-called GM technology was notthe way to feed the world’s poor, and that growingagrofuels to feed cars on land that should be used tofeed people will surely worsen world hunger and analready very fragile human security situation. 14Although adaptation has emerged as a keypolicy question in negotiations on climate change,the issue has not yet been addressed forcefully inpolicy development planning at all levels. Buildingadaptive capacity, or meeting MDG targets, is verydifferent from growing the economy and working fordevelopment as usual. It is about delivering socialand environmental justice – a necessary conditionfor securing the path to sustainability.Justice in finance and technology transfersThe UNFCCC states that rich countries are dutyboundto make transfers to developing countries, butnobody should be a beggar. If poor peasants shiftedto organic farming or municipal fishers managedtheir coastal resources properly, they would be doingit not only for themselves but for all of us. If a poorcountry takes care of its biodiversity, it is doing agreat service not only to itself but also to humanity.These efforts deserve to be compensated or reciprocatedsomehow through, for example, a carbon taxon the rich, untied ODA, unconditional debt relief,fairer trade terms, technology or other forms of resourcetransfers.Financing climate stabilization requires hugeamounts of money. Oxfam International 15 has saidthat the cost of adaptation for developing countrieswill be at least USD 50 billion a year, in addition to thecurrent ODA level, which already includes fundingcommitment for the MDGs. However in his presentationof the Fourth Assessment <strong>Report</strong> in Bali, IPCCchair Pachauri said that “the cost of mitigation is reallynot all that much” as it is estimated annually to beless than 1% of global GDP. Rich countries are bailingout the big banks that caused the current globalfinancial mess. It is only fair for developing countriesto ask for an equivalent bail-out for the eradication ofworld poverty, rehabilitation of the environment andstabilization of the climate system.Although Annex 1 parties agree that climatechange is the most serious threat to sustainabledevelopment, their actions up to now have beensimply disappointing. Decisions that truly matterfor eradicating poverty and redressing global disparitiestake too long, often ending up in insufficient oreven negative net transfers with heavy strings attached.Moreover, the rich themselves must begin todramatically change the way they see the world andhow they produce and consume. In other words, theymust give up on their unsustainable lifestyle.Slow down, cool the earthWhat scenario can cool an overheating planet andspare us from disaster – 350 ppm, 450 ppm? Whicheveris the answer, the action should be the same: weall must slow down. Strictly speaking, scenarios arenot predictions; they are a range of possibilities thatcan lead to different alternative futures. As the futureis inherently unpredictable, there is no certainty onwhat will come out of the action of so many. Howeverscenarios are useful because one of the causes ofunpredictability and uncertainty is human action – orthe possibility of it – to change the course of events.The future is shaped by what we believe it will be andby what we do to make it happen.Oddly, the current global recession may turnout to be a blessing in disguise. Perhaps the deeperit cuts and the longer it lasts, the better it will be forall of us. Less growth implies less emissions andless stress on the environment. Cleaner productionand universal reduction in per capita consumptionmeans less carbon footprint and – maybe –healthierliving. Perhaps all these things will happen regardlessof what comes out of the climate negotiations inCopenhagen and beyond.Is there any time to save ourselves? Maybe yes,maybe no. In any case, let it not be said that our generationdid not do enough for justice. n13 IAASTD. Agriculture at the Crossroads: Global <strong>Report</strong>.Washington, DC: Island Press. 200814 Vidal, J. “Change in Farming Can Feed World – <strong>Report</strong>.”The Guardian, 16 April 2008.15 Oxfam International. “Adapting to Climate Change: What’sNeeded in Poor Countries and Who Should Pay.” OxfamBriefing Paper 104, May 2007. Available from: .Thematic reports 28 <strong>Social</strong> <strong>Watch</strong>
Energy Challenges for EuropeElena TriffonovaBulgarian-European Partnership AssociationThe European Union (EU) is a huge consumer of energy. In 2006 the 25 memberstates 1 consumed 1,722.8 million tonnes of oil equivalent (mtoe). Nearlytwo-thirds came from hydrocarbons: 706.3 million tonnes of oil (14.9 millionbarrels per day) and 420.6 mtoe (476.4 billion cubic meters) of natural gas.The remaining 34.6% came from coal, nuclear and renewable sources. 2 Someforecasts suggest that by 2030 EU energy consumption will have increasedby 15%. 3However, the EU does not have an integrated energy market. The fragmentationof this sector dates back to the 1970s, when member states respondedindividually to the oil crisis. Some of them, such as Germany, built upstrategic gas reserves and invested in infrastructure development; others,such as the UK, proceeded to explore their own reserves.Russia is the world’s largest gas producer, and it currently suppliesaround 30% of the EU’s total gas needs. 4 European countries can be dividedinto three groups, with different levels of dependence on Russian gasimports: 51. Countries with very low dependence – about 15%: Belgium, Ireland,Luxembourg, the Netherlands, Portugal, Spain, Sweden, Switzerland andthe UK.2. Countries with moderate dependence – 20–40%: France, Italy, andGermany.3. Countries that are highly dependent – more than 50%: Austria, CzechRepublic, Greece, Hungary, Poland, Rumania and Slovenia. Some countries– Bulgaria, Croatia, Finland, Latvia, Lithuania, Serbia and Slovakia – rely onRussia for all their gas imports.The gas dispute between Russia and Ukraine in early January <strong>2009</strong> thusdirectly affected a total of 17 European countries. In a speech in mid-<strong>2009</strong>,European Commission President José Manuel Barroso noted the particularvulnerability of several countries, 6 including Bulgaria and Slovakia.In Bulgaria, the State is the single buyer of energy. During the last decadeit signed a number of exclusive contracts with the Russian consortium Gazprom,and as a result the country increased its 90% dependency on Russiangas. On the other hand, since 1956 the Bulgarian Government has favouredthe use of nuclear power. Initially a research reactor, the IRT-2000, was constructedand then in 1966 an agreement was signed with the Soviet Union forcommercial units to provide the basis for the country’s power programme.As a condition for EU entry, Bulgaria has shut two nuclear reactors. The tworemaining reactors generate about 35% of the country’s electricity. 7 Theconsumption of electricity has grown since 1980 and Bulgaria is also a majorpower exporter. In 2006, the National Electricity Company (NEK) produced 46billion kilowatt hours and exported 7.8 of these to Greece, Macedonia, Serbiaand Turkey. 8In the case of Slovakia, although its market for electric power generationand distribution is small compared to other Central European countries,1 Bulgaria and Romania joined in 2007, for the current total of 27 members.2 Data from BP, “BP Statistical Review of World Energy,” June 2007, pp. 11–12, 27–28, and 41.3 European Commission, Directorate-General for Energy and Transport,European Energyand Transport: Trends to 2030— Update 2005, 2006.4 Gas relations date back to 1968, when the Soviet Union first supplied gas to Austria.5 The present classification is taken from “Russia and Europe: Mutual Dependence in theEnergy Sector”, by Antonio Sánchez Andrés , 2007.6 Barroso, J. M. “Statement of President Barroso at European Council Press Conference.”19 June <strong>2009</strong>.7 Data from the National Electrical Company (NEK). See: .8 World Nuclear Association. “Nuclear Power in Bulgaria”, <strong>2009</strong>.projections indicate that its power system will need to be broadened to meetgrowing demand. The generation of electricity is primarily dependent onhydroelectric and nuclear resources, though this is somewhat balanced bythermal power stations (coal, natural gas and oil). The Slovak gas market ischaracterized by a high level of dependence on Russian supply and the dominanceof a predominantly state-owned and vertically integrated company.Slovakia plays a significant role in the European gas network as it is animportant transit country for transporting natural gas to countries in Centraland Western Europe. In general, one of the challenges in the energy relationsbetween Russia and the EU is the transport of gas through third countries.Although Europe attributes its ‘vulnerability’ to Russia, part of the problem –as was the case with Belarus in early 2007 and with Ukraine in early 2006 and<strong>2009</strong> – lies in transit countries.The January <strong>2009</strong> energy crisis highlights the lack of an integrated EUenergy policy, even though the need for a policy has been approved by theEuropean Commission and various proposals have been put forward. Thelack of such a policy is reflected in the fact that energy from Russia does notflow in equal amounts to the entire region. In addition, the problem of mutualdependence is particularly complex. It is not hard to understand why theEuropean Commission has been unable to coordinate a common vision, norwhy some countries, including France, Germany and Italy, have been trying todevelop their own relationships of energy dependence. National governmentshave to decide on the balance between dependence and diversification and onalternatives for the future.During the last decade the lobby for the renewable energy industry hasbeen gaining leverage in the EU. One of the proposals in the 2007 EnergyPolicy for Europe was to incorporate a minimum of 10% of biofuels in totaltransport fuel by 2020, to be accompanied by the introduction of a sustainabilityscheme for biofuels. The existing regulation fixes the target at 5.75%in 2010. 9 A binding 20% target for the overall share of renewable energy by2020 has also been proposed, the effort to be shared in an appropriate waybetween member states.The main goals to be achieved by implementing a common Europeanstrategy to promote biofuels are: 1) to increase energy security, as the increasingprice of oil is rapidly affecting the cost of energy and reducing Europeancitizens’ purchasing power; and 2) to reduce the emission of greenhousegases (GHG), the main determinant of climate change. Rises in temperatureand changes in precipitation seasons might affect water resources as well asagricultural production.The future of alternative energy resources raises the question of nutritionand the future of the EU Common Agricultural Policy. Diversification in energysupplies and investment in alternative energy sources are more affordableamong old EU member states. There is limited renewable energy potential fornewcomers to the EU, amid demands to scale back coal power plants due toenvironmental reasons and resistance to the development of nuclear power.In order to tackle the political divisiveness of the EU-Russia gas relationship,and the specific risks to the security of gas supply of states in central andeastern Europe, the EU should make gas market integration the priority of itsstrategic energy policy. 10 Steps also need to be taken towards the enhancementof energy security development, including energy efficiency, renewableenergy sources and demand-side management. n9 European Parliament and the Council of the EU. “Directive 2003/30/EC on the Promotionof the Use of Biofuels or Other Renewable Fuels for Transport.” Official Journal of theEuropean Union, 17 May 2003.10 Noël, P. “Beyond Dependence: How to Deal with Russian Gas.” Policy Briefs, EuropeanCouncil on Foreign Relations (ECFR), November 2008.<strong>Social</strong> <strong>Watch</strong>29Energy challenges for Europe
Holding transnational corporations accountable forhuman rights obligations: the role of civil societyCivil society organizations are employing a variety of methods to hold corporations accountable for meeting their human andlabour rights obligations. These initiatives and mechanisms aim to protect and promote fundamental human and labour rights,with varying degrees of effectiveness. Although they represent an initial attempt to address weaknesses inherent in the unilateral,voluntary model of Corporate <strong>Social</strong> Responsibility, the only truly effective solution would be to change the paradigms of boththe human rights framework for corporations and the economic model in general.Jana Silverman<strong>Social</strong> <strong>Watch</strong>Alvaro OrsattiTrade Union Confederation of the AmericasThe financial and economic crisis sweeping theglobe is not simply another cyclical downturn endemicto the capitalist system. It represents a spectacularcollapse of the neo-liberal economic model.Implementation of this model, which prescribedfinancial-sector deregulation, trade liberalization,and privatization of state functions and enterprises,led not only to destabilization of the world’s marketsbut to the creation of an acute global imbalance ofpower between workers, private enterprises, andstates.During the heyday of neo-liberalism, manycompanies took advantage of improved communicationsand transportation infrastructure, lax nationalregulations, and the auctioning off of lucrativeState assets to transform themselves into gigantictransnational conglomerates with a substantial presencearound the world, and achieved record profitsin the process. Their economic muscle gave themimmense political clout among developing countrieseager for foreign direct investment. These countriesattempted to make their territories more “attractive”to multinationals by strengthening legislation protectinginvestments and weakening labour and environmentallaws. Thus, in addition to its economicconsequences, the proliferation of investments bymultinational enterprises in developing countriesover the last decades has had profound social andenvironmental impacts, to the point where somemultinationals have been complicit in gross violationsof fundamental human, social, labour and environmentalrights.Transnational corporations andhuman rights obligationsBusiness enterprises, particularly transnationalcompanies, are typically private, non-governmentalentities subject only to national laws in either thecountry where the company has its headquartersor in the host countries where the company has investments.Even though these companies may havesignificant presence in multiple countries, they arenot technically considered to have international legalstatus, which is limited to states and certain intergovernmentalorganizations such as the EuropeanUnion and the UN. This means that by and large theyhave not been subject to the rights and obligationsof international law, including international humanrights law.This interpretation is gradually being revised inpractice, however. Some contemporary scholars advocategranting transnational business enterprisesneo-feudal or corporative rights. 1 Some internationaltreaties – in particular bilateral and multilateral tradeand investment agreements – give transnationalenterprises specific rights that can be enforced ineither the host country’s courts or in internationalarbitration tribunals. 2 For example, the Chapter 11provisions under the North American Free TradeAgreement allow investors to bring claims directlyagainst participating States for presumed violationsof the investment provisions in the treaty. Similarly,many bilateral investment treaties include mechanismsthat allow companies to bring cases againstsignatory States in arbitration tribunals, such as theInternational Centre for the Settlement of InvestmentDisputes, on expropriations, losses incurred due tocivil disturbances, and restrictions on the repatriationof capital and other matters. 3 The implications ofthese clauses are profound. Since 1995, more than370 bilateral and multilateral trade agreements havebeen signed and more than 1,500 bilateral investmenttreaties have been concluded, involving virtuallyall of the world’s major economies. 4 These agreementsconfer supra-national rights on corporations,without granting corresponding rights to the peoplewho may be adversely affected by their actions.Today, the obligations of non-state actors suchas business enterprises to protect and promotehuman rights are becoming more explicit in boththeory and practice. For instance, the Preamble ofthe Universal Declaration of Human Rights calls for“every individual and every organ of society” to upholdand promote the principles contained in theDeclaration. According to legal scholars, that obligationincludes all persons and all legal entities such1 See Teitelbaum, Alejandro. Al margen de la ley: Sociedadestransnacionales y derechos humanos, Bogota: ILSA, 2007. p.31.2 Ibid.3 Damrosch, Lori ed. International Law, St. Paul, USA: WestPublishing, 2001. pp. 809-12.4 Adlung, Rudolph and Molinuevo, Martín. Bilateralism inServices Trade: Is There Fire Behind the (BIT) Smoke?Geneva: World Trade Organization, 2008. pp. 1-2.as companies. 5 Other international standards in therealm of “soft law” that directly impose human rightsobligations on companies include the InternationalLabour Organization Tripartite Declaration on Principlesconcerning Multinational Enterprises and <strong>Social</strong>Policy (formulated in 1977) and the Organisation forEconomic Co-operation and Development (OECD)Guidelines for Multinational Enterprises ( adopted in1976 and revised in 2000).In addition, a growing number of corporationsare designing and implementing specific humanrights policies. More than 240 enterprises have formulatedtheir own guidelines, according to the Businessand Human Rights Resource Center, 6 and morethan 5200 companies are listed as active membersof the UN Global Compact, 7 a multi-stakeholderinitiative that commits businesses to respect universalprincipals relating to human rights, labourrights, environmental issues and anti-corruptionpractices.Civil society and corporatesocial responsibilityThe changing relationship between businessesand human rights is intimately linked to the rise ofcorporate social responsibility, defined by the EuropeanCommission as a “concept whereby companiesintegrate social and environmental concernsin their business operations and in their interactionswith stakeholders on a voluntary basis”. 8 Althoughsome companies have implemented philanthropicprogrammes to benefit their employees, local communitiesand society in general since at least the1950s, the current notion is different. It promotes theincorporation of human, social and environmentalrights as an integral part of corporate strategies, notto comply with any moral or ethical imperative butsimply as a good business practice that can minimiserisks and enhance company performance.5 Avery, Christopher, Short, Annabel, & TzeutschlerRegaignon, Gregory “Why all companies should addresshuman rights”, 2006. Available from: .6 See: .7 See:.8 European Commission. “What is CSR ?”, <strong>2009</strong>. Availablefrom: .<strong>Social</strong> <strong>Watch</strong>31Holding Transnational Corporations Accountable for Human Rights Obligations
“The impacts of the crisis are evident in the massive lay-offs taking place in foreign bankssuch as the BBVA, Santander, and HSBC. Our rights as workers have been taken away.Debtors are also feeling the impacts, it’s already happening. They are being evictedbecause for different reasons they cannot pay anymore. What is worse, especial militaryforces of the state are being used to carry out the evictions; those forces are there for thesecurity of all, not to throw poor people in the streets because they cannot pay.”Janio Romero (union leader of the Unión Nacionalde Empleados Bancarios, Colombia)This shift in the concept and practice of corporatesocial responsibility did not arise out of aspontaneous change of heart in the business community.It resulted from the work of journalists andcivil society organizations that have exposed grossrights violations committed directly or indirectlyby corporate actors, leading to public outcry anda push for stronger social controls on companies.Early initiatives led by civil society to hold companiesaccountable for rights abuses included the groundbreakingcampaigns in the early 1990s related tolabour malpractices committed by Nike in Indonesiaand other Southeast Asian countries and thecomplicity of Royal Dutch Shell in the execution ofKen Saro Wiwa and other human rights activistsin Nigeria. More recent campaigns have includedtargeting Coca-Cola for alleged involvement of itsbottlers in Colombia in the assassination of tradeunion leaders.The typical reaction of companies under scrutinyin such cases has been to try to mitigate damageto their operations and image by establishingprinciples and practices such as “codes of conduct”and “sustainability reporting” to prevent similar occurrencesin the future. Many other companies thathave remained relatively unscathed by these types ofcampaigns have adopted similar measures. For example,more than 1000 companies issued in-depthreports on their social and environmental performancein 2008, applying the “Global <strong>Report</strong>ing Initiative”guidelines. 9Despite the diversity of initiatives that havesprung up in recent years, nearly all have been unilateraland voluntary, lacking binding mechanismsthat can be used to invoke real and not just moralsanctions in cases of corporate complicity in rightsabuses. For this reason, a wide segment of civil society,including unions, human rights organizationsand environmental groups, has tended to regardcorporate responsibility initiatives with scepticism,9 Available from: .seeing them as mechanisms to improve the publicimage of companies that do not address the substantiveissues that the social and environmentalpractices of businesses generate. That said, manycivil society groups have been using the social responsibilityconcept to develop more transparent,effective mechanisms to hold companies accountablefor human, labour and environmental rightsobligations, as spelled out in international normsand national laws.Some of the fundamental challenges that civilsociety organizations face when trying to seek remediesfor human rights violations aided or abetted bymultinational corporations are a lack of legal remediesin host country jurisdictions with lax nationallaws, inefficient justice systems, lack of political willto prosecute investors, or a combination of theseobstacles. However, since 1992 a number of civillawsuits have been filed against transnational corporationsunder a little-used provision in US lawcalled the Alien Tort Claims Act (ATCA), which wasinvoked and reaffirmed in the 1980s in a case involvingindividuals, 10 and the subsequent passage of theTorture Victim Protection Act. 11 Based on the preceptof universal jurisdiction for crimes involving the “lawof nations”, this legislation entitles US courts to ruleon cases involving gross violations of human rightsregardless of the location and nationality of the perpetratorsand their victims. Between 1993 and 2006,NGOs such as the International Labor Rights Fund,Earthrights International, and the Center for ConstitutionalRights filed 36 lawsuits against multinationalcompanies in US District Courts under ATCA, bringingto light alleged corporate complicity in humanrights abuses.To date, however, no companies have beenfound guilty under ACTA. Of the 36 cases presented,20 were dismissed, 12 some on the grounds that the10 Filartiga v. Pena-Irala, 630 F.2d 876 (2 nd cir. 1980)11 See: and.12 Baue, Bill. “Win or Lose in Court” in Business Ethics,Summer 2006, p. 12.crimes committed did not fall within the scope of thelaw (which only applies to violations of “specific, universaland obligatory” norms such as those againsttorture, genocide, crimes against humanity, andsummary executions), others for reasons relatedto an applicable statute of limitations or a failure toprovide sufficient evidence linking the company tothe crime committed. Several companies that werebrought to trial under ATCA, such as DrummondMining and Chevron, were found not guilty by juries.The remaining cases were either settled out of courtby the companies or are still pending.On the positive side, the out-of-court settlementsin cases such as the lawsuit against Shell forthe murder of Nigerian activists mentioned abovehave been exemplary, with the company agreeingto a USD 15.5 million payment to the victims. 13Overall, although ATCA has not yet created a strongdeterrent effect among corporations potentiallyimplicated in human rights abuses, the importantprecedents it has set for the use of innovative legalmechanisms based on extraterritorial jurisdictioncould pave the way for the creation of new forumssuch as an “International Criminal Court” that wouldprovide legally binding remedies for victims ofgrave human rights violations committed by businessenterprises.Trade unions and corporate socialresponsibility instrumentsThe experience of trade unions in the use of corporatesocial responsibility instruments is based on a strategythat was previously defined in the internationalarena by the International Trade Union Confederation(ITUC). This strategy asserts that companies have an“internal responsibility” for their workers that shouldbe regulated and enforceable. Mechanisms for accomplishingthis include the Tripartite Declarationof the ILO and the OECD Guidelines for MultinationalEnterprises and bilateral global framework agreements(GFAs) negotiated between Global Unions andmultinational corporations.It is estimated that the Global Unions havesigned close to 70 general framework agreements;although no centralized, up-to-date register exists. 14These agreements are based on the companies’“internal social responsibility”, and clearly linkedto ILO norms. The metalworkers federation (IMF),service-sector workers federation (UNI), chemicaland oil workers federation (ICEM) and constructionworkers federation (BWI) are especially active in13 Kahn, Chris. “Settlement Reached in Human Rights Casesagainst Royal Dutch Shell“, <strong>2009</strong>. Available from : .See: .14 See: .Thematic reports 32 <strong>Social</strong> <strong>Watch</strong>
negotiating these agreements, accounting for 80per cent of the total. The Global Unions participate inother kinds of work with businesses and institutesco-sponsored with business organizations, suchas the one involving the International Federation ofJournalists, and multi-stakeholder forums, such asone related to coffee production in which the InternationalUnion of Farmworkers participates. Otherframework agreements have been organized on asub-regional basis.Once GFAs are signed, they can be used in variousways. Companies tend to use them as evidence oftheir commitment to corporate responsibiity, as theirsigning and implementation are voluntary. This perspectiveis being challenged by the union movementand by European academics, with the goal of constructinga strategy to make the contents of frameworkagreements legally binding. In the meantime,union denunciations of corporate practices violatingclauses of a framework agreement have sometimescompelled multinational companies to change theirpolicies; for example, by agreeing that unions can beestablished in their foreign subsidiaries.The OECD Guidelines have been adopted by its30 member countries as well as nine observer countries,including Argentina, Brazil, Chile and Peru inLatin America. This instrument includes an explicitcomplaints mechanism that can be activated when aviolation of the spirit and letter of a Guideline clauseis identified. The thematic scope of the Guidelinesis quite broad. In addition to labour rights, clausescover the environment, consumer rights, science andtechnology, and competition. Complaints are directedto “national contact points” that governments areobligated to create. The Guidelines call for voluntarycompliance by companies, which means that theycan ignore the mediation efforts of governments withrespect to the complaints presented by an interestedparty. However, once the process is completed, thenational contact point can publicly reveal the negativeactions of the company and publicize critical opinions.As a result, resort to the Guidelines complaintsmechanism tends to have consequences similar tothe rulings of the Commission of Experts on the Applicationof Conventions and Recommendations ofthe ILO. Although employers frequently assert thatthis mechanism goes beyond their concept of CSR, ithas been widely acknowledged not just by civil societyorganizations but also by governments of countriesthat belong to the OECD.To date, approximately 200 complaints havebeen brought to national contact points, of which80 per cent were lodged by trade unions. Accordingto the Trade Union Advisory Committee (TUAC),complainants achieved satisfactory results aroundhalf the time. At the end of 2008, 24 union-basedcomplaints were presented in Latin America, and10 others were brought by NGOs. The proportion of“I began working with a major Spanish advertising and film producing company, whichopened a division here in Argentina in 2007. When the crisis broke in earnest, everythingstarted to get complicated. Work decreased a lot, and we spent up to a month withoutfilming. In January they told me that they had to fire me. I received the severance payand started looking for work. Since then up until today, I haven’t been able to find anydecent job. What little work exists is practically slave labour: 8 or 9 hours, with very poorsalaries. I have almost spent all my savings and I live alone in a rented flat, so I need toget something urgently. What else am I going to do?”Young woman from Buenos Airescomplainants that had a positive result was similar tothose at the global level.The Trade Union Confederation of the Americas(TUCA), created in March 2008 and headquarteredin Sao Paulo, has developed an explicit strategy regardingcorporate social responsibility, based onthat of the ITUC. It is working with the Global Unionfederations and the TUAC on issues related to globalframework agreements and the OECD Guidelines,particularly to assist union organizations in testing thecomplaints mechanisms of these instruments. It hasalso extended an invitation to OECD <strong>Watch</strong> to coordinatework related to the Guidelines. Additionally, it hasorganized campaigns to counter the concept of socialresponsibility promoted by the Inter-American DevelopmentBank. TUCA, in collaboration with the GlobalUnion federations and the Friedrich Ebert Foundationin Latin America as well as with like-minded NGOs,has created a Working Group on Transnational Companiesto further develop concepts and strategiesrelating to trade union perspectives.The need for a paradigm shiftAlthough not all of the mechanisms profiled abovehave been equally effective in protecting and promotingthe fundamental human and labor rightsthat companies are obligated to uphold, they at leastbegin to address the weaknesses inherent in the unilateral,voluntary model of corporate social responsibility.Although it can be argued that the generationof business initiatives linked to this model has helpedto introduce human rights issues into corporate culture,from the point of view of civil society, thesemeasures are no substitute for enforceable humanrights laws on the national level that are consistentwith international norms and accompanied bystrong, independent judiciary systems that provideconcrete remedies for victims. Unfortunately, manygovernments choose not to take forceful action tohold companies accountable for violations of theirhuman rights obligations, as they are fearful of losingforeign investment to countries that enforce rightsless stringently. This creates a deplorable “race to thebottom” regarding the promotion and protection ofhuman rights and labor standards, among countriesas well as companies.This tendency notwithstanding, human rightsprotection need not be a zero-sum game. The solutionis to change the paradigms of both the humanrights framework for corporations and of the economicmodel in general. A comprehensive internationaltreaty formulated within the UN human rightssystem could clarify the human rights obligationsof businesses, which have been obscured by theliterally hundreds of CSR initiatives that have sprungup over the last two decades, and establish bindingmechanisms that can provide remedies for victims incases where it is impossible to prosecute victimizingcompanies in domestic jurisdictions. A conceptualframework proposed in 2008 by John Ruggie, SpecialRepresentative to the UN Secretary on Businessand Human Rights, based on the governmental obligationto protect rights, business responsibilityto respect rights, and the need for victim access toeffective remedies in cases where abuses have occurred,is a step forward. However, this frameworkneeds effective mechanisms to instrumentalize it.In addition, a wider transformation is necessaryto reverse the negative impact of the neo-liberaleconomic model that has been imposed upon developingcountries in recent years. The role of thestate as an active shaper and regulator of economicand social policy must be revived, along with endogenouspaths to development based on strengtheninginternal markets and national productive capacity.This would break the cycle of dependence oninvestments by unscrupulous multinationals. Thecurrent economic and financial crisis has raised realquestions about the “benevolence” of the privatesector and highlighted the flaws inherent in the neoliberalmodel. This provides a historic opportunityto establish a social compact between businesses,workers, consumers and the state that can generatea new economic model based on human rights andsustainable development. We should not squanderthis opportunity. n<strong>Social</strong> <strong>Watch</strong>33Holding Transnational Corporations Accountable for Human Rights Obligations
The global economic crisis and the least developedcountries: citizen’s concernsThe Least Developed Countres (LDCs) are in the forefront of those bearing the brunt of the global economic crisis. In LDC countriesthe economic crisis translates into food, fuel, climate, debt, development and political crises. A fundamental transformation of theglobal financial architecture is needed: for many people living in poverty in LDCs, the current model of economic growth hasbrought little benefit, if any. The global economic crisis must be used as an opportunity to bring about real transformation in theglobal system so that everyone on this planet is offered better opportunities to lead meaningful and secure lives.Arjun KarkiLDC <strong>Watch</strong>As defined by the United Nations, there are 49 LeastDeveloped Countries (LDCs) in the world, 1 which arehome to about 750 million people. The ever-increasingwave of neoliberal globalization has continuouslythreatened the life and livelihood of the people livingin these LDCs. In general, the LDC economy is characterizedby an increasing debt burden, economicshocks, hunger, and human rights violations, includinggender injustice, conflicts, weak governance, andinherent environmental vulnerabilities.1 Criteria for LDCs: In its latest triennial review of the listof LDCs in 2006, the United Nations Committee forDevelopment Policy (CDP) used the following three criteriafor the identification of the LDCs.(i) A low-income criterion, based on a three-year averageestimate of the gross national income (GNI) per capita(under USD 745 for inclusion, above USD 900 forgraduation);(ii) A human capital status criterion, involving a compositeHuman Assets Index (HAI) based on: (a) nutrition:percentage of population undernourished; (b) health:mortality rate for children aged 5 years or under; (c)education: the gross secondary school enrolment ratio;and (d) adult literacy rate; and(iii) An economic vulnerability criterion, involving acomposite Economic Vulnerability Index (EVI) basedon indicators of: (a) population size; (b) remoteness;(c) merchandise export concentration; (d) share ofagriculture, forestry and fisheries in gross domesticproduct; (e) homelessness owing to natural disasters; (f)instability of agricultural production; and (g) instability ofexports of goods and services.To be added to the list, a country must satisfy all threecriteria. In addition, since the fundamental meaning of theLDC category, i.e. the recognition of structural handicaps,excludes large economies, the population must notexceed 75 million. To be eligible for graduation, a countrymust reach threshold levels for graduation for at leasttwo of the three criteria, or its GNI per capita must exceedat least twice the threshold level, and the likelihood thatthe level of GNI per capita is sustainable must be deemedhigh. See: .With regard to the 2006 triennial review, the CDPrecommended that Papua New Guinea be included in, andSamoa be graduated from, the list of LDCs. EquatorialGuinea, Kiribati, Tuvalu and Vanuatu were found eligible forgraduation for the first time. The General Assembly in itsrecent resolutions (59/209, 59/210 and 60/33) decided onthe graduation of Cape Verde at the end of 2007 and Maldivesin January 2011. At the end of 2007, Cape Verde became theonly second country to graduate from the LDC group sinceits establishment in 1974. Botswana left the group in 1994.The current global economic crisis has not onlyshaken the foundations of the largest economies,stock markets and the most influential financialinstitutions around the globe, but also has put thealready fragile small economies of the LDCs intoperil, pushing millions of poor women, men andchildren into poverty and hardship. While the economiccrisis resulted from the fallibility of the rich,industrialized and developed countries, the LDCsare in the forefront of those bearing the brunt of it. InLDC countries, the economic crisis has also fed intothe current food, fuel, climate, debt, developmentand political crises.Food crisisUnprecedented food crises, triggered by soaringfood prices and leading to “food riots”, have shakenover 30 LDCs, where workers and peasants havebecome unable to afford food items basic for survival.Protests over grain prices in Haiti, Cameroon,Senegal, the Ivory Coast, Mozambique, Ethiopia,Madagascar, Mauritania and other parts of Africaand a hungry children’s march in Yemen are someexamples. 2 According to the Food and AgricultureOrganisation (FAO), 22 countries are particularly vulnerableto the recent food price increases, becausethey are not only very poor but also are highly dependenton food imports. In 2008-<strong>2009</strong> Eritrea hasproduced only about 30% of its food requirements.UNICEF warned that higher global food prices couldbe affecting up to 2 million Eritreans, more than halfthe population. UN agencies have projected that the1.3 million people living below the poverty line wouldsuffer most. The FAO has warned that increasingprices have “triggered a food crisis” in 36 countries.Again, according to the United Nations World FoodProgramme (WFP), 12 out of the 16 “hunger hotspotcountries” are in the LDCs (Afghanistan, Djibouti,Ethiopia, Guinea, Haiti, Liberia, Mauritania, Nepal,Senegal, Somalia, Uganda, Yemen). 32 Martin Khor, “Global Trends,” The Star Online, 14 April 2008;see “LDC <strong>Watch</strong>: Food Crisis: Defending food sovereignty inLDCs,” 2008. Available from: .3 See WFP, “Cash roll-out to help hunger hot spots,” Rome,12 August 2008. Available at: ; “UN System Response to the World FoodSecurity Crisis (as of September 2008)”; available from:.Because the majority of poor people in LDCsspend 70%-80% of their income on food, they arevery hard hit by the sharp increases in domestic foodprices. The consequences of the food crisis, whichthe head of WFP has called ‘a silent tsunami’, includewidespread misery and malnutrition for millionsof people. The food crisis shows that the existingagro-industrial and market-led approach to food securityhas totally failed to feed hungry people livingin LDCs. A variety of other factors, such as the promotionof corporate farming and the introduction ofextreme dependence on external food supplies, lackof productive investments in local agricultural systems,global warming, trade imbalances and tradeliberalization are also to blame for food insecurity indeveloping countries. These factors have led to thepresent crisis, forcing a billion people to go hungry,drastically reducing biodiversity, and nearly ruiningthe ecosystem.Food has been declared a basic human right ina series of World Food Summits and internationalagreements, including the Universal Declaration ofHuman Rights (UDHR), the Preamble of the FAOConstitution, and the International Covenant on Economic,<strong>Social</strong> and Cultural Rights. For nearly twodecades, the international community at high-levelmeetings attended by heads of state and governmenthas repeatedly reaffirmed its commitment toeradicating malnutrition and assuring food securityfor all. The Rome Declaration on World FoodSecurity in 1992, the World Food Summit Plan ofAction adopted in 1996 and affirmed at the five-yearreview conference in 2002 pledged concerted effortstowards eradicating hunger as an essential first stepand set a target of halving the number of hungrypeople by 2015. 4 The Millennium Summit (2000)and a series of follow-up meetings have reaffirmedcommitments to achieving food security and goodnutrition for all. Despite the repeated commitmentsby the world’s leaders on the urgent need to reducehunger and malnutrition, progress in achieving thetargets and indicators under the Millennium DevelopmentGoals (MDGs) has been extremely disappointing,notwithstanding the great strides that havebeen made in a number of individual countries. To4 See FAO, “International Conference on Nutrition,” Rome,1992; FAO, “World Food Summit Plan of Action, 1996; FAO,World Food Summit: Five Years Later,” 2002. Available from:.<strong>Social</strong> <strong>Watch</strong>35The crisis and the least developed countries
“In Kenia we began to see impacts of the crisis late in 2008: reduced tourism followed byunemployment. Many Kenyans also rely on remittances from the U.S., which fell sharply.Due to the crisis, more families can not afford to send their children to school, and foreigninvestors are moving projects out of the country. Much of the land is going fallow andthere were water shortages during the past year. All these factors, combined with thehigh levels of income inequality and corruption that were already present, are a recipefor disaster for Kenya’s people and economy.”Edward Oyugi (SODNET, Kenya)date, the human right to food has been continuallydenied; food is considered more as an item for tradethan as an essential good for survival.Climate crisisThe concerns of LDCs about food, water and energysecurity are deepened by the climate crisis that challengesthe goals of inclusive and environmentallysustainable economic growth. The LDCs, alreadyplagued by poverty, natural disasters, conflicts andgeo-physical constraints, are now at risk of furtherdevastating impacts of climate change, including increaseddesertification, rising sea levels, increasedrainfall and risk of flooding and hurricanes, whichwill perpetuate the cycles of poverty, food and fuelcrises, conflict, inequality, indebtedness and underdevelopment.Even though the people living inthe LDCs are the hardest hit by increased climatechange, their concerns are rarely heard and addressedin the official negotiation processes at anylevel. It is therefore important to raise the voice ofthe climate change victims from the LDCs in the upcomingclimate negotiations, including UN ClimateChange Conference in Copenhagen in December<strong>2009</strong> (CoP 15), where it is hoped that agreementcan be reached on the principles for a new treaty toreplace the Kyoto Protocol.Official Development Assistance (ODA)Official Development Assistance (ODA) flows in theLDCs are also predicted to decline as governments indeveloped countries use resources to provide stimulusto their own economies and continue to bail outthe financial institutions that have been at the centreof the economic crisis. Since most LDCs continue tobe highly indebted, the prospect of reduced aid flowshas put pressure on LDC governments to maintaina balance between investing for development andpaying back loans, resulting in less resources beingdirected to development needs. As a result, the LDCsare increasingly facing difficulty in fulfilling the basiceconomic needs as well as the social and culturalrights of their people.Remittances and foreign employmentRemittances to the LDCs from people working inother countries are also declining, as migrant workerslose their jobs due to the economic recession inthe countries that provided employment. The IMFpredicts a drop of between 4% and 8% in <strong>2009</strong>.Remittances are particularly important for countriessuch as Haiti, Lesotho, and Nepal – where theyamount to more than 15% of gross national income(GNI). Similarly, the export-oriented industries inLDCs such as garments are scaling down or evenstopping production due to the economic downfall.Declines in remittances have also been felt inPacific LDCs such as Samoa, Tuvalu and Kiribatidue to the effects of slowdown in the labour marketsand high unemployment in the source nations, particularlyin the USA, New Zealand and Australia. Thealready high rates of unemployment in the LDCs arelikely to rise further in near future, with a subsequentincrease in socio-economic conflicts and politicalunrest. For LDCs that have invested in the establishmentof offshore financial markets as a source ofgovernment revenue, such as Tuvalu and Kiribati,the value of the investment trust funds they set up isexpected to decline as world stock markets remainhighly unsettled.In Senegal, one of the LDCs in Africa, remittancesaccount for up to 10% of GDP. In 2008, theywere estimated at close to EUR 1 billion, which ismore than 11% of that year’s GDP. The decline inremittances reduces household consumption inmany regions along with the level of public worksand construction projects. This, together with cuts ingovernment services, has resulted in more hardshipand drudgery for women and children, particularlyin terms of health, education, livelihood and foodsecurity.ExportsIn Afghanistan, major export items such as carpetsand lambskin are now being badly hit by the financialcrisis. Exports of carpets fell 25% and exports of thesilky lambskin known as Karakul fell by 20%, accordingto the Afghanistan Investment Support Agency(export promotion agency). The livelihoods of morethan 50% of the people in the Northern provincesdepend on the carpet sector. The lambskin industryhas already been badly affected by a year of drought;now the financial burden on farmers is increasingwith falling demand for this commodity at the internationallevel.In Ethiopia, it is reported that this year’s importrevenue has declined by USD 803 billion. The Tradeand Industry Ministry claimed the current worldeconomic crisis has affected the export market forEthiopian produce, especially coffee and oil seeds.In many cases, the major producers are the smallholding farmers that will directly be affected.The way forwardThe above situation, which is pushing millions ofpeople in the LDCs towards increased poverty andvulnerability, demands immediate and urgent action.In order to overcome the global economic crisis andcreate an enabling environment for developmentin the LDCs, it is crucial that the international communityand the LDC governments come together tocombat the impacts of economic crisis in the LDCs.This will only be achieved with a fundamentaltransformation of the global financial architecture.The dramatic failure of the current system not onlyexposes its inadequacies, but also shines a spotlighton the failure of current approaches to development.For many people living in poverty in LDCs, the currentmodel of economic growth has brought littlebenefit, if any. In seeking solutions to the problemscreated as a result of the economic crisis, the followingactions are crucial.• Opening developed country markets to LDCexports without any conditionality is necessaryto promote fair trade and support the LDCeconomies to regenerate and grow. Only 79%of LDC exports enjoy duty-free access to developedcountry markets as per the 2008 UNMDG Gap taskforce report. Duty-free treatmentto 97% of tariff lines of LDC exports (arms andoil excluded), as committed by the 2005 WTOMinisterial Declaration, must be honoured.• There is an urgent need to transform and restructurethe governance of the InternationalFinancial Institutions (IFIs) in order to promotepublic accountability and transparency, whichmust take place in accordance to the needs ofthe LDCs. Additionally, democratic participationof all countries in the negotiation with the IFIsand monetary institutions, with the UN at thecentre, is critical to ensuring a more equitable,democratic and sustainable financial system.• In order to cope with the economic crisis in theLDCs, all debts must be cancelled immediately,unconditionally and irreversibly. Tofacilitate this process, there is an urgent needThematic reports 36 <strong>Social</strong> <strong>Watch</strong>
to establish a comprehensive process mechanism,which is internationally applicable, transparentand impartial.• Similarly, equitable mobilization of both domesticand international financial resourcesis essential in order to achieve sustainable developmentin the LDCs, particularly focusing onaccess to basic economic and social infrastructureand social protection. Implementation ofthe 2001 OECD-DAC recommendations to untieaid to LDCs must not be delayed. 5• It is urgent to increase aid flows to the LDCs inorder to enable them to cope with the economiccrisis and promote development. Despitethe 2002 Monterrey Consensus on Financingfor Development, which urged developed countriesto make ‘concrete efforts towards meetingthe target of 0.7% of gross national product(GNP) as ODA to developing countries’, and0.15% to 0.20% of GNP of developed countriesto LDCs by 2010 as agreed in the Beijing Platformfor Action, several countries seem to haveignored these targets.• The LDCs need a special stimulus package inthe form of grants to combat the impacts ofthe economic crisis. Failure to introduce sucha package will result in a high risk of increasedatrocities and gross violations of human rightsin the LDCs. In this context, the recommendationsadvanced by the Commission of Expertsset up by the President of the UN General Assembly(known as the ‘Stiglitz Commission’)on reforming the international monetary and financialsystem are welcome. Additionally, thereis a need to create a global reserve system anda global economic coordination council underthe UN as part of the fundamental reform of theinternational financial architecture. Similarly,international commitments must be put intoaction with immediate effect in order to addressthe underlying causes of the global economiccrisis, and achieve internationally agreed developmentgoals, including the Brussels Programmeof Action (BPoA), the MDGs and theAccra Agenda for Action (AAA) on Aid Effectivenessin the LDCs. It is pertinent to highlight anddraw the attention of international communityto the fact that failure to achieve MDGs in theLDCs will result in their overall failure.ConclusionThe globalized world we live in demands new globalapproaches. If we are to achieve the goals to whichwe all claim to aspire, we need to make sure that, aswe work to mitigate the devastating consequences ofthis global economic crisis, we use it as an opportunityto bring about real transformation in the globalsystem so that everyone on this planet gets betteropportunities to lead meaningful and secure lives.Success will depend on how we address the needs ofthose amongst us, particularly those living in LDCs,who are facing the greatest challenges. n5 The 2001 DAC Recommendation to untie ODA to LDCswas amended on 15 March 2006, and more recently in July2008, extending the Recommendation to include non-LDCHIPCs. See: .<strong>Social</strong> <strong>Watch</strong>37The crisis and the least developed countries
Mounting development challenges posed by the worldeconomic crisis: policy options in the Arab regionThe global economic crisis comes at a time when countries and citizens in the Arab region have been trying to adjust to wildlyfluctuating food and fuel prices. In addition, the region is increasingly affected by climate change, with increasing desertification,rising coastal waters and scarcity of fresh water. The confluence of these crises exposes explosive vulnerabilities across the region,at the centre of which are poverty and unemployment. This calls for intervention from different stakeholders; and responsesto the economic crisis should take into account the need to tackle the other crises as well. Arab governments should strengthenco-ordination, enable citizens to participate in setting development priorities, and orient social policies to reduce poverty in asustainable and equitable way.Kinda MohamadiehArab NGO Network for DevelopmentOliver PearceChristian Aid 1The global economic and financial crisis comes at atime when countries and citizens have been trying toadjust to wildly fluctuating food and fuel prices. Likeother parts of the world, the Arab region is experiencingshrinking economic activity, higher rates of povertyand unemployment, growing demands on socialservices, further economic insecurity and increasingviolations of economic and social rights.Past economic crises have had disproportionateimpacts on the poor, and this one will be no differentin that regard. This means further stress oncommunities that have already been suffering due toclimate change and fluctuations in food and energyprices. Arab countries are particularly vulnerable tothe fallout from the global crisis since recent gainsin human development indicators are fragile and notbuilt on long-term Government policies that wouldhelp safeguard their sustainability. Moreover, conflictand political instability are widespread and likely toworsen due to the economic downturn.Key development challenges facing theregionRising numbers of people living in povertyThe Arab region witnessed a noticeable reduction inpoverty levels from the 1980s to the early 1990s. Duringthe mid 1990s, however, the proportion of peopleliving in poverty – at the most basic USD 1 and USD 2per day benchmarks – rose and essentially remainedstagnant into the 21st century, with only a very gradualdecline. Since the population of the region has beensteadily growing, the total number of people living inextreme poverty has actually increased.Moreover, if the poverty threshold is raised a little– for example from USD 1 to USD 2 a day or from USD2 to USD 3 or 4 a day – the numbers rise substantially.1 This article is a shortened version of a policy documentdeveloped by the two organizations on the occasion of theUN High Level Conference on the Economic and FinancialCrisis and its Impact on Development.Indeed, raising the poverty line from USD 2 a day toUSD 3 a day more than doubles the total number ofpeople living in poverty from 45 million to 92 million.In Egypt, over 70% of the population lives on USD 3a day or less; this proportion rises to over four out offive if the line is raised to USD 4 a day. 2Measurements related to higher poverty linesdo matter, particularly at a time when families acrossthe region have recently had to absorb much highercosts for basic goods, including both food and fuel,which account for a large proportion of their expenditures.UN sources note that, as a result of the foodcrisis, around 31 million people in the Arab regionare hungry (about 10 % of the total population). Thisreflects an increase of 6 million hungry people comparedto 1992, including record numbers in Sudanand Yemen, 3 precisely during a period in which overallhuman development indicators showed continuingimprovements. Indeed, the food prices crisis hasexposed the vulnerabilities in a region that importsmore than 50% of food consumed.Arab governments implemented a variety ofmeasures in response to the food crisis, often includingdirect provision of basic foods or increasing subsidiesfor them. These measures – together with controlson exports – have done little to ensure that priceswill not rise considerably in the future or that, morefundamentally, supplies of basic foods will be sufficient.Core issues such as increasing food production,supporting small farmers in selling their products andaccessing markets, ensuring poor consumers haveaccess to affordable food and addressing the imbalancesin the global trade system and agreements onagriculture have not been adequately addressed.Persistent and rising inequalitiesThe high degree of inequalities between countries, aswell as sustained inequalities within many countries,is another notable feature of the region that has tobe taken into consideration. The increase in wealthin recent years has not translated into equity and,2 Iqbal, F. Sustaining Gains in Poverty Reduction andHuman Development in the Middle East and North Africa.Washington, DC: The World Bank. 2006.3 According to Jacques Diouf, Director General of the UN Foodand Agriculture Organization (FAO), speaking at the HighLevel Conference preparatory private sector and civil societyforum, 19 June <strong>2009</strong>.as the privileged have not shared, a good part of theregion’s population is currently living in poverty orin poverty’s treshold. Moreover, countries in conflictsuch as Iraq, Lebanon, the Occupied Palestinian Territoriesand Sudan have not experienced the consistentgrowth trends witnessed by many of the othercountries in the region.Chronic unemploymentOne of the reasons for the persistent proportion ofpeople living in poverty in the region is chronic unemployment.In fact, even during those years in whicheconomies were growing and individual incomes alsoseemed to be on the rise, unemployment was high andincreasing. Other factors make this one of the majorconcerns in light of the global crisis, including: (1) thehigh birth rate and relatively young populations of theregion, which means that many new graduates andschool leavers enter the labour force with diminishingprospects for work; and (2) the concentrationof economic activity in sectors with low job creationcapacities, such as real estate and finance. 4At a time of falling output across the globe, thegap between available jobs and numbers in the labourforce is likely to increase sharply. The return of nationalswho had been working abroad as economic migrantswill further swell labour markets, with cutbacksin economic activity in the Gulf Cooperation Council(GCC) countries having serious repercussions inpoorer countries. 5 It is therefore important that Governmentsand other institutions on which poor andvulnerable communities rely – such as families over-4 International Labour Organization (ILO). Global EmploymentTrend Brief. Geneva: International Labour Office. 2007. Thereport indicates very high labour force growth in the Arabregion, averaging 3.7% annually between 2000 and 2005.In 2005–2007, unemployment exceeded 13%, while youthunemployment rates in the Middle East and North Africa(MENA) were the highest around the globe and estimatedby the ILO at 25.7% in 2003 (ranging between 46% inAlgeria and 6.3% in the United Arab Emirates). These officialaggregate data are likely to both under-estimate the rate ofgeneral unemployment and also mask the higher rates inpoorer countries such as Egypt, where 20% would mean wellover 10 million unemployed citizens looking for work.5 Khan, A., Abimourched, R. and Ciobanu, R. O. “The GlobalEconomic Crisis and the Impact on Migrant Workers.”ILO Global Job Crisis Observatory, <strong>2009</strong>. Available from:.<strong>Social</strong> <strong>Watch</strong>39Policy options in the Arab region
“We should form an international watchdog coalition to monitor what is going on with thestimulus packages, and be able to have rapid responses if governments do not use thismoney properly. Rights based approaches to trade and finance must be constructed inorder to end the crisis, above all by reconstructing safety nets in the North and South. Wedon’t want to just “tweak” the economic model in order to fix it, but instead to reconstructit completely. In order to advocate for this, political moments such as the UN Conferenceand the World <strong>Social</strong> Forum must be taken advantage of, in order to bring people andsocial movements together at this critical time.”Tanya Dawkins (Global-Local Links Project, Miami)seas, aid donors and banks – are able to fill gaps whenindividual incomes are under such pressure.Governments’ economic policy tools andsources of revenueEconomies in the Arab region have been growingbased on rentier and semi-rentier models. They includeoil producing countries, where the bulk of GDPand government revenue comes from exports of oilproducts, and non-oil producing countries, heavilydependent on different kinds of income, mainly remittances,foreign aid and bilateral and multilateralloans. 6Since the mid 1980s, Arab governments haveenhanced economic reforms triggered by the declinein income due to fluctuating oil prices andrelated shrinking remittances. Reform measureshave also been externally driven, focusing on programmesprescribed by institutions such as the IMFand the World Bank that focused on pro-cyclicalpolicy recommendations, cutbacks in governmentspending, privatization, as well as liberalization oftrade, interest policy and exchange rates. 7 At thesame time, social policies were increasingly marginalized.In undertaking policy choices and designingmeasures, governments in non-oil producing countrieshave increasingly given weight to aid flows,foreign direct investment (FDI), trade liberalizationand remittances, while oil producing countriescontinued to focus on rent from oil exports. 8 Howeverthey have seen increasing budget deficits, and6 Allisa, S. “The Challenge of Economic Reform in ArabWorld: Toward More Productive Economies.” CarnegieEndowment for International Peace, May 2007. Availablefrom: .7 Al-Jourchi, S. “Economic and <strong>Social</strong> Rights: PreliminaryReview of International and Regional Initiatives”. Preparedfor the Arab NGO Network for Development, 2008.8 The World Bank has indicated in several of its reports thatthe GDP growth in resource-poor and labour-abundantArab countries has been driven by strong flows of tourismrevenues, remittances and increasing FDI.current account deficits in 2008 amounted to 1% ofGDP in Egypt, 2.7% in Syria, 13.5% in Lebanon, and18% in Jordan. 9 The IMF reported a 1–2.6% currentaccount deficit for the Maghreb countries in 2008,which is expected to worsen by 2012. With exportopportunities shrinking, budget deficits are expectedto increase – especially due to decreasing demand inthe European market, which absorbed the highestproportion of exports from the Arab region, and limitationson demand by Gulf countries that absorbedexports from other labour-abundant Arab countries.In addition, revenues from taxes are expected to fallas a result of the crisis, with further falls expected inwages, remittances and government transfers. Theresulting diminution in public and private resourcesputs recent development gains at serious risk, leadingto a possible rise in the incidence and depth ofpoverty and unemployment, unless targeted measuresand decisive actions are undertaken.The crisis has exposed the fluctuating natureof aid and remittances as well as the limited returnsfrom trade liberalization. These policy options cannotbe considered factors of a stable nature on whichlong-term sustained growth policy is built. Suchpolicy tools should be considered complementaryto a more stable policy that needs to be developed inthe region, with significant orientation towards givingprimacy to supporting intra-regional productioncycles and intra-regional trade as well as domesticconsumption and production.Aid and foreign direct investment (FDI)For some Arab countries, aid has become a significantproportion of GDP, particularly in countriesaffected by conflict such as Iraq, Lebanon and theOccupied Palestinian Territories, though amountsfluctuate greatly. The net official development assistance(ODA) given to 22 Arab countries by all donorsreached USD 17.1 billion in 2006. This was almost9 Saif, I. and Choucair, F.“Arab Countries Stumble in the Faceof Growing Economic Crisis”. Carnegie Endowment forInternational Peace, May <strong>2009</strong>. Available from:.20% of the total ODA donated by donors to developingcountries. 10However, this increase has been concentratedin a few countries and tends to reflect the geopoliticaland military events in the region and the underlyingstrategies of the main international actors. Indeedthe less developed countries in the region (includingComoros, Djibouti, Mauritania, Somalia and Yemen)received only 25.3% of the ODA received between2000 and 2006. On the other hand, 46% of the assistancein that period went to Iraq. Overall, Iraq, theOccupied Palestinian Territories and Sudan received63% of the total assistance. 11 It is evident that thereis a clear gap between the orientation of assistanceflowing to the region and human development priorities.12With regard to overall FDI, the Arab share duringthe decade between 1990 and 2000 was only 2.1%(1% between 1990 and 1999). It then increased dramaticallyfrom USD 6 billion between 1995 and 1999to more than USD 24 billion in 2006. 13 Around 34%of countries’ FDI comes from other Arab countries.Between 1996 and 2006, the share of FDI as a percentageof GDP rose from 1% to 1.7% for the wholeregion (excluding Iraq). In resource-poor and labourabundantcountries, it rose significantly from 2.4%to 8%; in resource-rich, labour-abundant countriesit went from 0.2% to 0.9%; and in resource-rich,labour-importing countries it decreased from 0.7%to 0.3%.These inflows – concentrated in Egypt, Jordan,Lebanon, Morocco and Tunisia, as well as the UnitedArab Emirates – are being fuelled by the completionof major privatization deals and increased investmentsin the energy sector. For example, FDI inEgypt increased to USD 6.1 billion in 2006 due to atelecommunications license and privatization in thebanking sector. This suggests that FDI flows were notdesigned according to human development prioritiesand did not prioritise social added value.It is reasonable to assume that both ODA andFDI may not be delivered according to previousprojections due to the global tightening in budgets.This will mean less investment per person at a timewhen falling incomes from hydrocarbons and taxeshave already resulted in tight budgets. It will also putgreater pressure on budgets in poorly resourced and10 Mahjoub, A. “Official Development Assistance inArab Countries.” Prepared for the Arab NGO Networkfor Development in preparation for the Financing forDevelopment Review Conference (Doha, 2008).11 Another large recipient of aid in the region is Egypt; between2000 and 2006 it received 10% of the ODA to Arab countriesfrom the Development Assistance Committee.12 Ibid.13 This section is based on numbers in World Bank. EconomicDevelopments and Prospects: Job Creation in an Era of HighGrowth. Washington, DC: World Bank, 2007.Thematic reports 40 <strong>Social</strong> <strong>Watch</strong>
labour-abundant countries that currently depend onFDI for more than 8% of their GDP.TradeTrade liberalization has been one of the major policyrecommendations promoted and adopted within theregion as a tool for further growth and attraction ofFDI. Arab countries have been very active in expandingand deepening trade agreements among themselvesand have significantly opened their economiesto trade, investment and capital flows with countriesin other regions. Yet, despite the many reforms, totaltrade in 2005 in Arab countries represented only4% of world trade. Furthermore, despite massivehydrocarbon exports and trade liberalization, theregion accounts for only 5.5% of global exports, ofwhich 90% is oil. 14On the regional front, despite the launch of thePan-Arab Free Trade Area (PAFTA) in 1997 and theremoval of tariffs for the movement of goods between19 out of 22 Arab countries so far, intra-Arabtrade today ranges between 10% and 13% of theiroverall trade volumes. This is a slight increase fromthe 9% achieved in 1997. The lack of agreement regardingrules of origin for products that are importantfrom an intra-regional trade perspective is one ofthe major obstacles PAFTA currently faces.As regional and bilateral trade agreementsproliferate, 15 trade policy tariffs have been significantlyreduced in almost all the region’s countries,with most non-tariff barriers eliminated or significantlyreduced. Overall, the region ranks secondamong developing regions on tariff reforms carriedout since 2000, trailing behind only Europe and CentralAsia.All Arab countries – both oil-exporting andnot – will see a shock to trade accounts as a resultof the crisis. While the former have been hit by oilprice fluctuations and the fall in demand, the latterwill see their exports to Europe and countries of theGulf decreasing due to shrinking demand, and all ofthem will be forced to limit imports. Together with thehigher relative costs of most needed imports such asfoodstuffs, the impact on the region’s trade balancewill be dramatic.RemittancesAt more than USD 30 billion, remittances constitutea greater inflow than aid to the Arab region, having14 Arab Monetary Fund. Joint Arab Economic <strong>Report</strong> 2006.Available (in Arabic only) from: .15 Currently, six Arab countries are in the accession process tothe WTO. While there are obvious advantages to membershipin terms of multilateral market access and rules-basedprotection, terms of accession currently under negotiationundermine development prospects. Most acceding countriesare being asked for greater liberalization and implementationcommitments than original WTO members had to make.CHART 1. Trade balances in Arab Region 2007-09$ Billiona huge impact on families and communities. A substantialproportion of low-income households aredependent on them. Resource-poor and labourabundantcountries – including Djibouti, Egypt, Jordan,Lebanon, Morocco, the Occupied PalestinianTerritories and Tunisia – saw remittances increasefrom USD 8 billion in 1996–99 to USD 13.9 billion in2006. 16 Similarly in resource-rich, labour-abundantcountries such as Algeria and Syria, remittancesincreased from USD 1 billion to USD 2.5 billion andUSD 0.5 to USD 0.9 billion respectively over thesame period. 17 In 2007, remittance inflows made uparound 9% of GDP in Morocco, 5% in Tunisia and2.2% in Algeria. 18The World Bank predicts that remittances, havingrisen almost 8% in the previous year, will fall in<strong>2009</strong>. The size of the fall is hard to gauge, althoughthe worst-case scenario modelled last year predictsa 5% drop in <strong>2009</strong> compared to 2008 and a furtherfall for 2010.<strong>Social</strong> policiesThe Arab countries suffer a consistent deficiency interms of social policies. This is in part a reflection ofthe lack of satisfactory levels of participation in theprocess of developing policy responses or rescueschemes by different stakeholders, including civilsociety organizations. In addition, it reflects the limitedcapacities official institutions have in developingcomprehensive economic and social policies.Affordable, quality social services are lacking, as16 World Bank. op. cit.17 Ibid.16014012010080604020-2018 Saif and Choucair. op. cit.0CountrySaudi ArabiaKuwaitAlgeriaUAELibyaQatarIraqOmanBahrainTunisiaYemenSyriaLebanon20072008<strong>2009</strong>EgyptJordanMoroccoSource: based on IMF data.is access to these services, and the scope of socialprotection measures that are available for varioussocial groups is limited. 19<strong>Social</strong> policy problems in the labour marketrelate to making available quality social servicesthat are affordable. Another problem is the scopeof social protection measures that are available forthe different social groups. Comprehensive socialpolicies are necessary to cushion against possiblesocial unrest, especially as governmental responsesfall short in curtailing the negative impacts of the crisis.Such policies need to extend beyond the regularsocial safety nets that existed before the crisis, whichwere often limited to food subsidies, energy subsidies,cash transfers and support for microfinanceschemes. Comprehensive social policies also needto encompass the informal sector, which alreadyemploys a large segment of the population in theArab countries and is expected to expand further inlight of the crisis.A persistent lack of coordination andcomprehensive policy-makingThe diverse capacities and nature of the Arab countries’economies imply that the responses to the crisiswill vary, as well as the timeframes. No cooperationor common responses have been undertaken atthe regional level. Overall, there has been no sense ofurgency, and a comprehensive vision that pays carefulattention to social policies has been lacking.19 Even in a country such as Tunisia, where the social securityfund is considered a model one, the Government is facingproblems responding to the needs of the newly unemployedas a result of the crisis (Saif and Choucair <strong>2009</strong>).<strong>Social</strong> <strong>Watch</strong>41Policy options in the Arab region
The GCC countries’ responses came morequickly and were more extensive. At the sub-regionallevel, they agreed to coordinate their fiscal, monetaryand financial policies and set in place measures tohelp ease inter-bank lending rates and add new regulationsto their stock markets. At the national level,they relaxed monetary policy and led expansionaryfiscal policies in a few sectors. In other countriesof the region, responses were sluggish; many governmentsinsisted, at the early stages of the crisis,that their countries were isolated from its impacts.As their fiscal policies gave little room for manoeuvre,these countries were cautious about taking anyexpansionary policy decisions, and their interventionslacked planning and focused on short-termstabilization.Moving forward: policy considerations toface the crisesIt is evident that Arab governments need to prioritizelong-term structural changes while addressingshort-term needs in light of the crisis. In doingso, they can add value by (1) working together andcapitalizing on their regional capacities and cooperationin facing the crisis; (2) providing the poor andvulnerable communities with greater protection oftheir economic and social rights; and (3) providingspaces for the active participation of differentsocial partners, including civil society and women’sgroups, in drawing up economic and governanceframeworks.This should be an opportunity for Arab governmentsto review the assumptions behind policymakingprocesses related to social and economic reform,including revising relations between economy,finance and production and consumption patterns.This requires giving priority to building sustainabledevelopment and prioritizing social equity, decentwork, gender equality and environmental sustainability.It includes as well supporting stable long-termgrowth in the productive sectors and developingcomprehensive policies to address poverty eradication.Employment creation should be central toshort-term and long-term policies, with an emphasison decent work opportunities in sustainable productivesectors.As the economic crisis is intertwined with thefood and climate crises, responses must address allof them. In the run-up to the Copenhagen negotiationsof December <strong>2009</strong>, Arab governments shouldto take an effective, more proactive role coordinatedwith other developing countries. New ways of productionand consumption, and trading in an environmentallysustainable way, should be at the core ofdiscussions for reforming the development system.On social policies<strong>Social</strong> priorities, including strengthening automaticmacroeconomic stabilizers and social insurancesystems, should be determined through the participationand representation of multiple stakeholders,including civil society organizations. <strong>Social</strong> insurancesystems should encourage individuals to work or berecognized for their role in households, families andcommunities. Furthermore, properly targeted socialpolicy packages should be employed to limit the impactsof rising unemployment and the related incidenceand depth of poverty in many communities.On tradeThere is need for assessment and, where necessary,revision of the outcomes from the liberalization undertakenas part of World Trade Organization (WTO)memberships and regional and bilateral free tradeagreements. Trade policies should be undertakenwithin the context of comprehensive developmentstrategies, built on assessments of their sustainabilityand human rights impacts. Governments shouldensure that any continuation of the WTO Doha roundguarantees true special and differential treatmentfor developing countries, including greater accessto markets in developed countries by reducing subsidies.Furthermore, the Arab governments shouldconsider steps to review trade and investment agreementsthat limit policy space and may be impedingtheir ability to effectively respond to the crisis, especiallyin the area of capital flows and the liberalizationof financial services.Intra-regional trade and economic cooperationin general should be conducted on the basis of specialand differential treatment and choice by countries;limitations and barriers to enhancing inter-Arabtrade and economic cooperation resulting from theoverlapping membership of Arab countries in multipleregional economic blocks should be addressed.This includes urgently needed coordination and harmonizationof economic integration policies.On Aid and FDIGovernments should set in place clear policies thatallow for directing aid and FDI to areas and sectorsthat directly contribute to poverty eradication, increasedemployment opportunities, gender equalityand human development priorities.Furthermore, regional financial resources needto be mobilized towards sustainable development,particularly access to quality basic economic andsocial infrastructure. Accordingly, Arab countriesshould work to augment liquidity through regionalchannels. Regional cooperation arrangements canbe particularly effective because of a greater recognitionof cross-border externalities and greater sensitivitiesto the distinctive conditions in neighbouringcountries.On addressing falling government revenuesArab governments could increase their stable sourcesof revenues through enhancing a fair, effectiveand progressive means of taxation. This needs tobe complemented by efficient, effective, transparentand accountable public finance managementsystems and practices through participatory mechanisms.Tax avoidance should be addressed throughsupporting greater transparency in tax payments, acountry-by-country reporting standard for multinationalcorporations, and a truly multilateral agreementon the automatic exchange of tax information.On regional cooperationAs the crisis is global in nature, no single country canface its ramifications alone; hence a more collectiveeffort should be pursued in the region, at both governmentaland private levels. Re-thinking regionalcooperation as a solution to the crisis can give a powerfulimpulse to building an alternative developmentproject that is more sustainable and equitable. Suchcooperation would enable an enhanced coordinationof labour policies, amongst other priorities. Withinthis context, there is need to establish time-boundimplementation mechanisms for decisions undertakenat the Arab Economic, <strong>Social</strong> and DevelopmentSummit. 20In light of such orientation, there is a need torevise and reform the mandates and mechanisms ofexisting regional institutions, including the regionaldevelopment banks. Such reform should serve towardsachieving stronger links between finance andthe needs of the real economy.In conclusion, governments in the Arab regionshould strengthen their co-ordination, enable citizensto participate in setting development priorities,and orient their social policies to reducing povertyin a sustainable and equitable way. The current convergenceof crises presents an opportunity to reviseoutmoded policies and instigate action that willprevent the current crisis from becoming a humancatastrophe in the region.20 This includes implementation of agreed projects, such as theemergency programme on food security and programmeson common railways, water security, a common electricityproject, limiting unemployment, implementing theMillennium Development Goals (MDGs) in the leastdeveloped countries in the region, and education and healthcare.Thematic reports 42 <strong>Social</strong> <strong>Watch</strong>
contribute financially they can have a say. The poorwill remain excluded.The European position on IMF governance aswell as the role of the UN clearly indicates a desire tomaintain the architecture of the global financial systemalmost intact. Governments are certainly usingthe opportunity to implement changes that strengthentheir own economies’ respective positions in thefinancial system, such those regarding tax havensand banking secrecy, which at the same time allowthem to avoid more comprehensive change.<strong>Social</strong> impacts of the crisis in EuropeSince its creation in 1957, the European EconomicCommunity (EEC) has brought greater prosperityand improved living conditions to the majority of itscitizens. Founded with the integration of the economiesof Member States as a central objective, it hasprogressively evolved into a common Europeanmarket, involving free flow of goods, services andpeople. 2Parallel to the growth of the market economy,the EEC sought to decrease economic inequalitiesamong regions through subsidies and other forms ofaid, promoting social justice and solidarity. Europeancountries generally share a common vision of howto improve the welfare of their citizens; this vision,which has come to be known as the ‘European <strong>Social</strong>Model’ implies the promotion of full employment,decent work, equality of opportunities, universal socialprotection and social inclusion.In recent years, increasing financial deregulationand privatization has put the European <strong>Social</strong> Modelunder threat. In this new paradigm the welfare ofcitizens is increasingly provided by the market ratherthan the State, resulting in a progressive retreat of thestate from several social and economic spheres. Althoughthe market economy has successfully contributedto improved living conditions for the majority ofEuropean citizens, it has also brought problems. Thisis well illustrated by the deregulation and privatizationof the pension systems. To address the increasedstrains in the public pension system, many Europeanstates resorted to privatization and liberalization. Citizenswere encouraged to rely more on private pensionfunds, which, in turn, depend on the vicissitudes ofthe market. Before the crisis, pension funds were doingwell, as the value of their assets steadily increased.Collectively pension funds have become substantialplayers in the equity market. However, the currenteconomic and financial crisis has substantially reducedthe value of many pension funds, jeopardizingthe future pensions of many Europeans.The economic recession resulting from the crisisfurther threatens Europe’s approach to social2 The EEC was created in 1957 to bring about economicintegration (including a single market) among Belgium,France, Germany, Italy, Luxembourg and the Netherlands.It was enlarged later to include six additional states and,from 1967, its institutions also governed the EuropeanCoal and Steel Community (ECSC) and European AtomicEnergy Community (EAEC or Euratom) under the termEuropean Communities. When the European Union (EU)was created in 1993, the EEC was transformed into theEuropean Community, one of the EU’s three pillars, with EECinstitutions continuing as those of the EU.welfare. The EU has forecast a 4% recession in <strong>2009</strong>in the Euro zone and estimates indicate that 8.5 millionpeople in the EU will lose their jobs in <strong>2009</strong>-10.This translates into an unemployment rate of 11.5%in 2010, its highest level since the Second WorldWar. The crisis also has a significant impact on publicbudgets. Public deficits in the Euro zone are expectedto reach 5.3% in <strong>2009</strong> and 6.5% in 2010. 3What is Europe’s response? From the outset ofthe crisis the European Commission and its MemberStates have taken a variety of measures to counterthe effects of the economic downturn, largelythrough recovery plans and rescue packages. Thebulk of these have focused on the financial sector.In April <strong>2009</strong> the EU indicated that the cost ofmeasures approved by the Commission to supportfinancial institutions amounts to an estimated EUR 3trillion. This figure encompasses the overall amountof guarantees (up to EUR 2,3 trillion), recapitalizationschemes (EUR 300 billion) and rescue and restructuringsupport for individual banks and financialinstitutions (about EUR 400 billion). 4The logic of support to the financial sector isthat state guarantees and recapitalizations will allowbanks to make more loans available, thus stimulatingan increase in investment, which is expected tocreate and maintain jobs. It is by no means clear,however, that devoting such large amounts of publicresources to support the banking system willserve the needs of the majority of citizens. There aremany reasons for scepticism. First, banks are beingfunded and supported by contributions from taxpayers,who are themselves less secure due to theeconomic downturn. Second, most of the measuresseek to increase the availability of credit, throughthe provision of EUR 2,3 trillion of state guarantees.With the same objective, the European Central Bankhas lowered its interest rate to a historically low levelof less than 1%. Yet loose credit policy helped createthe conditions for the financial breakdown in thefirst place. It is ironic that taxpayers, many of whomare suffering heavily from the crisis, are providingmoney to failing institutions, and to many of thesenior managers within them, that contributed tothe collapse of the system.The growing unemployment crisis argues thatmore emphasis be given to addressing the social impactsof the crisis. Measures to integrate those whoare excluded from the labour market, invest in socialand health services and improve social protectionsystems are needed. Yet the scale of the state-fundedstimulus packages and the substantially increasedpublic budget deficits of European governmentsseverely reduce the ability to fund social welfareschemes and investments in social services, not justin the short term but for the foreseeable future.One casualty of the crisis was an extraordinaryEuropean Council Meeting on employment that3 European Commission. Economic forecasts Spring<strong>2009</strong>. Available from: .4 European Commission (<strong>2009</strong>). State Aid Scoreboard– Spring <strong>2009</strong> update. Available from: .would have involved labour ministers of all EU MemberStates, replaced by a meeting of the so-called“social troika” (Czech Republic, Sweden and Spain),the EC and social partners. This “downgrading” ofthe employment summit was not seen as a positivemessage to those losing their jobs as a direct consequenceof the crisis. As John Monks, President ofthe European Trade Union Confederation, stated, therenunciation “gives the impression that Europeanpolicy-makers are not sufficiently concerned aboutunemployment.” 5The crisis has triggered unexpected reactionsamong European policy makers. Those who werepromoting unfettered free market policies beforethe crisis are now actively seeking to secure Statebailouts. Competition Commissioner Neelie Kroes,known as a fervent promoter of free market policies,said that “the past six months have shown that Stateaid control plays a key role in tackling the challengesof the economic crisis in a coordinated way acrossEurope (…). The responsibility now lies with thefinancial sector to clean up their balance sheets andrestructure to ensure a viable future”. 6 In this framework,state intervention is no longer considered anobstacle to development and economic growth. Onthe contrary, it is largely agreed that States havethe responsibility to address the current recessionthrough active intervention in the market. This paradigmshift suggests that when benefits and growthare secure, the State is encouraged to retreat, whilein recessions, State intervention is encouraged asthe necessary solution. In other words, profits remainprivate and losses are socialized. This is in clearcontradiction to the principles of social justice andsolidarity based on the idea that profits and lossesshould be shared equally.At another level, the crisis may have triggered increased“Europeanism”. An EC poll from mid-Januaryto mid-February <strong>2009</strong> indicates that nearly two-thirdsof the EU population believed that Europeans wouldbe better protected if Member States adopted a coordinatedapproach, while only 39% believed that existingcoordination was sufficient. 7 This suggests broadagreement that cooperation at EU level is necessary totackle the financial crisis.Recent electoral results in Iceland suggest thatfeelings of greater Europeanism are not limited to EUcitizens. After the country was nearly bankrupted,Icelanders elected by a wide margin a president whofavours joining the EU. Commission President Barrosoargues that acting alone, countries like Ireland,Britain, France or Germany have much fewer instrumentsto cope with the crisis than if they act together:5 Anon. “Exit le sommet sur l’emploi”. Le Soir. 21-22 March<strong>2009</strong>, p. 17.6 European Commission. State aid: latest Scoreboard reviewsMember States’ action to fight economic crisis. <strong>2009</strong>.Available from: .7 European Parliament. European Parliament Eurobarometerhears calls for coordinated EU action in fight againstfinancial crisis. <strong>2009</strong>. Available from: .Thematic reports 44 <strong>Social</strong> <strong>Watch</strong>
“I think that if there is some impact of the crisis on theattitude towards the Lisbon Treaty it would probablybe in favour of the Lisbon Treaty”. 8Europe’s rolein promoting developmentThe EU is also claiming leadership in efforts to mitigatethe social effects of the crisis in developing countries.As EC President Barroso argued, “Europe has takenthe lead in ensuring that the G-20 lays foundationsfor a fair and sustainable recovery for all, includingdeveloping countries”. 9 However there is an asymmetrybetween EC measures to address the effectsof the crisis internally and those to help developingcountries to do so, as shown by the funds injectedinto European economies compared to funds availableto help developing countries. This asymmetry isalso seen in its support to the IMF, which has imposedstrong conditionalities on loans to poor countries,preventing them from implementing counter-cyclicaleconomic policies to address the crisis.As export revenues, foreign investment flowsand remittances fall sharply, developing countriesare hard hit by the global financial and economiccrisis. The World Bank estimates that developingcountries may face a financing gap of USD 270 toUSD 700 billion and as many as 53 million peopleare likely to fall into poverty in <strong>2009</strong>. 10 Bank presidentRobert Zoellick, speaking in London on the eve ofthe G-20 meeting, said that an estimated “200,000to 400,000 babies will die this year because of thedrop in growth”. 11 The UN estimates that fundingnecessary to mitigate the effects of the crisis mightbe as much as USD 1 trillion. Yet many developingcountries have limited fiscal space to react to thecrisis, making external support critical.Although Europe recognizes that developingcountries will face a crippling financing gap, its commitmentsto official development assistance (ODA)remains insufficient. With almost EUR 50 billion disbursedin 2008, aid volumes are meagre comparedto resources injected into European economies tosafeguard banks and boost growth. In April <strong>2009</strong>,EU governments had committed EUR 3 trillion tosupport financial institutions through guarantees orcash injections. If this level of finance can be madeavailable so quickly to support financial institutions,it is difficult to understand why European governmentsare unable to increase their aid budgets.In May <strong>2009</strong>, EU Member States confirmedtheir intention to meet their collective promise toallocate 0.56% of EU GNP in 2010 and 0.70% of EU8 Smyth, J. “Crisis likely to favour Lisbon Yes – Barroso”. TheIrish Times, 8 May <strong>2009</strong>. Available from: .9 European Commission. Commission first to act on G-20 withstrategy to support developing countries. <strong>2009</strong>. Availablefrom: .10 World Bank News, 12 February <strong>2009</strong>.11 Eurodad. Not much on offer for poor countries to counter thecrisis. <strong>2009</strong>. Available from: .“When we look at the welfare state and social protection systems the capacity of the EUMember States to address the rising demand for social security varies greatly. Thus insome cases we have increased social and unemployment benefits, extension of coveragefor unemployment as well as social benefits, tax rebates or exemptions for specificgroups including pensioners. On the other hand, other States are cutting back benefits.Hungary is reducing subsidies and private sector wages, as well as cancelling pensionexpenditure plans, and Finland is also expecting a reduction in social service spending.To offset the effect on the labor market, some countries also try to pursue active employmentpolicies by maintaining workers through flex time, but despite these efforts theeffects are still very drastic.”Verena Winkler (Eurostep, Belgium)GNI in 2015 in ODA. 12 Yet Italy, Ireland, Latvia andEstonia have already slashed their aid budgets as anoutcome of the crisis.At the same time the EC has proposed speedingup aid delivery by “frontloading” a significant portionof financial transfers to developing countries,amounting to EUR 4.3 billion in <strong>2009</strong>. This includesEUR 3 billion delivered in the form of budget support,EUR 800 million for the food facility and EUR 500 millionthrough an ad hoc FLEX mechanism designed tohelp the most vulnerable countries. However, thiswould not consist of new finance, suggesting that ifagreed, there would be less funding available in futureyears. In addition, Member States who will haveto provide the resources are already resisting.Parallel to their aid commitments, Europeancountries have contributed some USD 100 billionto the USD 1.1 trillion extra money for the IFIs. TheUSD 50 billion provided to safeguard development inlow-income countries does not appear to be accompaniedby any greater flexibility in fiscal and monetarypolicies to access IMF loans. Despite the recent“modernization” of IMF conditionality policies, thesame old recipes of tight fiscal discipline and cuts ingovernment spending seem to apply. In that contextthe ability to invest in the social sector remains low. 13Once again there is a clear contradiction between thecounter-cyclical policies applied within Europe andthe fiscal constraint imposed on developing countries.14 If Europeans think that expansionary financialand monetary policies are the way out of the crisis,why do they promote the exact opposite policies inpoorer countries?The crisis, a means to furtherEurope’s interest?Another impact of the crisis on Europe’s relation withdeveloping countries appears to be the accelerationof controversial measures such as budget support12 Council of the European Union, 18-19 May <strong>2009</strong>, Pressrelease. Available from: 13 Ibid.14 While transition countries such as Latvia and Romania arealso obliged to seek IMF loans, they are in a better positionto do so as the EC has raised a EUR 50 billion loan facility tohelp non-euro area European countries to cope with balanceof-paymentfacilities.and the conclusion of Economic Partnership Agreements(EPAs).Budget supportRecognizing that poorer economies are in urgentneed of external finance as a result of the crisis, theEC ‘frontloading’ proposals envisage increased useof budget support, including some EUR 500 millionfrom the 10 th European Development Fund to supportAfrican, Caribbean and Pacific (ACP) countries hardesthit by the crisis. The EC also indicated it wouldreview ongoing budget support operations in mostvulnerable countries in order to assess possibilitiesfor frontloading disbursements. The Commission’sargument in favour of budget support is that it is aquick impact instrument allowing long-term predictablefinancing for government expenditure includingin social sectors such as education and health.However, budget support raises a number ofconcerns. First, internal capacity and opportunityto monitor budgets and resource allocation, whichis critical for democratic accountability, is lacking inmost countries. The use of international accountancyfirms to monitor implementation increases the tendencyfor budget support to increase governments’accountability externally, undermining internal“ownership” and democratic accountability throughnational parliaments. Second, the EC has identifieda number of conditions that should be met beforebudget support is considered, including democracyand respect for human rights. However, studies ofa number of budget support agreements find littleevidence of any comprehensive assessment beingmade of these conditions being in place. 15 Finally,the EC includes budget support in its calculationsto meet a legal requirement established on the insistenceof the European Parliament to use 20% ofits aid for basic health and education, even thoughthe OECD/DAC, which manages the classificationsystem of development aid, considers that budgetsupport should be classified separately from allocationsto the health and education sectors.15 Alliance2015. “The EU‘s contribution to the MillenniumDevelopment Goals Poverty Eradication: From Rhetoric toResults?” Ed. EEPA, Brussels, September 2008.<strong>Social</strong> <strong>Watch</strong>45Europe’s response to the global crisis
EPAsThe establishment of Economic Partnership Agreements(EPAs), creating free trade regimes betweenthe EU and ACP countries, is one of the majorcontroversial elements of the Cotonou agreement.EPAs are intended to replace preferential tradeagreements under the Lomé conventions whichwere held to be incompatible with WTO rules on barriersto trade. Originally EPAs were due to have beenin place by the beginning of 2008, but in mid-<strong>2009</strong>they remain a source of considerable contention. 16The EC has always portrayed EPAs as developmentagreements, a claim that their terms belie.First, they are likely to result in an important loss ofcustom tariffs for many ACP countries, for whichthe EU is often the main trade partner. Second, ACPcountries often lack the infrastructure needed tocompete in an open market economy. Aid for adjustingto EPAs or ‘aid for trade’ has been projected asan addition to the original financial envelope providedby the Commission, but analysis indicatesthat much of this will not be additional. Third, theinclusion of areas of trade on which there is noagreement, such as services and procurement, willopen up areas of the economy of ACP countries toEU companies.Despite these concerns, the EC argues that inthe current crisis, EPAs will contribute to promotingeconomic growth and development in partnercountries. João Aguiar Machado, one of the Commission’schief EPA negotiators, explains that theagreements would support development by creatinga predictable trade environment which, in turn,would spur investment and create employment. Inorder to reassure distrusting ACP governments,Trade Commissioner Catherine Ashton recognizedthe need for greater flexibility in the negotiationsand promised that the negotiation of full EPAs willreflect and respect the regional specificity of theparties to that agreement. However, in her speechto the Joint Parliamentary Assembly in Prague inApril <strong>2009</strong>, she expressed her wish that an agreementacceptable to all parties would be reachedquickly and that all interim EPAs would be signedbefore the end of the current Commission in October<strong>2009</strong>. With EPA negotiations having beendeadlocked for so long, it seems that the urgencyto address the effects of the financial and economiccrisis is being used as an opportunity to acceleratethe process and increase pressure on ACP governmentsto concede. n16 In June <strong>2009</strong>, only the CARIFORUM countries (15 countriesin the Caribbean) have signed a full EPA, and only Botswana,Cameroon, Ivory Cost, Lesotho and Swaziland have signedinterim EPAs.Thematic reports 46 <strong>Social</strong> <strong>Watch</strong>
Panel on Indigenous Rights.Peoples’ Voices on the Crisis *On 20 June <strong>2009</strong>, at the Church of the Holy Trinity in New York, the “Peoples’Voices on the Crisis” initiative, brought together activists from over 30civil society organizations, trade unions and grassroots groups on a local,national and international level to discuss the social and environmentalconsequences of the financial and economic crisis for working and unemployedwomen and men all over the world. At the event, advocates for social,economic, gender, labor and environmental rights offered testimonials onhow the crisis is impacting local communities from Sudan to San Salvadorto the South Bronx.Development, which was the first truly multilateral forum to address thesocial impacts of the current financial meltdown. The keynote speaker of the“Peoples’ Voices” event was Father Miguel D’Escoto Brockmann, Presidentof the 63 rd Session of the UN General Assembly, who welcomed civil society’ssupport for the solutions to the crisis taking shape in the heart of theUN, and exhorted the participants to “inject a new spirit of responsibility andsolidarity” with the people who are being disproportionately impacted by thecrisis. The event concluded with a call by <strong>Social</strong> <strong>Watch</strong> Coordinator RobertoBissio to advocate for reforms to the current global financial architecturethat would help lift people out of poverty, instead of reinforcing currenteconomic and social inequalities both within and across borders.Disseminated throughout the Thematic Chapter of the <strong>Social</strong> <strong>Watch</strong><strong>Report</strong> <strong>2009</strong> you have been reading key interventions from participantsin this activity, together with some testimonials of the impact of the crisisin ordinary people the <strong>Social</strong> <strong>Watch</strong> network gathered in countries of theSouth. nMiguel D´Escoto Brockmann at the Peoples’ Voices event.This forum was also an opportunity for civil society leaders to shareideas and experiences on how to construct a global movement with localroots that can push for a new economic system based on human rights andenvironmental sustainability.“Peoples’ Voices on the Crisis” was held in the context of the landmarkUN Conference on the Financial and Economic Crisis and its Impacts on* “Peoples’ Voices on the Crisis” endorsing organizations: <strong>Social</strong> <strong>Watch</strong>, Eurostep, LDC<strong>Watch</strong>, Institute for Policy Studies, Global Policy Forum, Center of Concern, ESCR-Net,Institute for Agriculture and Trade Policy, Global-Local Links Project, Jubilee USANetwork, Jubilee South, GCAP Feminist Task Force, Alliance for Responsible Trade,Women’s Environment and Development Organization, International Council for AdultEducation, UN Non-Governmental Liaison Service, Global Action on Aging, Latindadd,US Human Rights Network, CONGO <strong>Social</strong> Development Committee, Sub-Committeeon the Eradication of Poverty, Hemispheric <strong>Social</strong> Alliance, Womens’ Working Group onFinancing for Development, Medical Mission Sisters International, World Federation ofUnited Nations Associations, International Youth and Student Movement for the UnitedNations, Enlazando Alternativas, Transnational Institute, Our World Is Not For SaleNetwork.Video clips from “Peoples’ Voices on the Crisis” are available from the <strong>Social</strong> <strong>Watch</strong>YouTube channel: .<strong>Social</strong> <strong>Watch</strong>47 Peoples’ Voices on the Crisis
NATIONAL REPORTS
ALGERIAOutside the system but, safe from the crisis?The weakest aspect of Algeria’s economy is its heavy dependence on the production and export ofhydrocarbons. Although this sector is highly developed, the financial sector has lagged far behind andbecome disconnected from global finance. Paradoxically, this backwardness prevented the bankingsystem from becoming enmeshed in the international financial crisis. Even so, the crisis will infect thecountry through imports of goods and services.El-Amel Association For <strong>Social</strong> DevelopmentResearch Team led by Selougha KamelThe breakdown of the US financial markets beganduring the summer of 2007. By autumn of 2008,the world was in the throes of a full-fledged financialcrisis, with credit access drying up, stockmarkets plunging, and the entire international financialsystem threatened with collapse. Directlyor indirectly, every country in the world has felt theimpact, including Algeria.The President blames the global economiccrisis partly on the absence of financial regulationand inadequate efforts to clean up the economicenvironment, which had been abandoned to thelaw of the markets. In highlighting financial andeconomic traps to be avoided, the worldwidefinancial crisis should constitute a lesson forAlgeria. Whether based on economic foresightor other considerations, Government directiveshave protected the national interest and limitedthe exposure of Algeria’s economy and finances tothe dangerous imbalances that the imposition ofneo-liberalism has created in the global financialsystem.This strong position is partly the result of thecountry’s oil wealth, the mainstay of its economy.Chakib Khelil, Minister of Energy and Mining andcurrent President of the Organisation of the PetroleumExporting Countries (OPEC) has observedthat the oil market has experienced a spectacularevolution, influenced by structural volatility that isheightened by speculators. 1 The price of a barrelof oil in the OPEC basket rose beyond USD 140in July 2008, and has since then tumbled to USD59. The annual average price for 2008 up to 4 Novemberwas USD 103.56, compared to USD 65 in2007. An Algerian barrel fetched USD 108.28, upfrom USD 71.13 in 2007.As the table indicates, Algeria’s economy iswell positioned to withstand the global financialand economic crisis, at least for the next twoyears. This cushion can be credited to the country’slimited exposure to international financialmarkets, prudent management of foreign exchangereserves (realized profit reached 4.6%1 Chakib Khelil, Minister of Energy and Mining, President ofOPEC, during a forum organised by El-Moudjahid, 3 March<strong>2009</strong>.Basic Capabilities Index (BCI)100BCI = 96 96GEI = 53Children reaching5th grade0BCI of Honduras = 82,42 See: Mohamed Gacem. “Crise financière mondiale: Vers unrecadrage des réformes“. Available from: .Gender Equity Index (GEI)Empowerment95 399910096100 100100 100Births attended byskilled health personnelSurvival up to 5 Economic activity97EducationBCI of Argelia = 95,7IEG of Algeria = 52,7in 2007), husbanding of a substantial proportion Rural revitalizationof revenue growth (an average of 20% of GDP Thanks to natural population growth averagingin 2005-2007), and use of a structural surplus 1.62%, annually — up considerably from an alreadyin domestic liquidity to finance the economy inhigh 1.48% in 2000 — the number of thelocal currency.country’s inhabitants swelled by 4.6 million between100The need for reformJuly 1998 and 100 1 July 2007. By the end of2010, the population will reach 35.7 million. ToAfter a brief inter-governmental debate, efforts to feed this young and rapidly growing population,59transfer control of Crédit Populaire and the Bank Algeria needs more food.for Local Development (BDL) to financial institutionsAlgeria’s waters have a biomass of 600,000in the US or France were dropped because tonnes, which would allow 11 an annual catch of00officials decided the country was not prepared for 220,000 tonnes; however, a lack of material resourceshas limited the annual harvest to 170,000a foreign takeover. To the extent that the economy83has been liberalized 54 and privatized, the anticipated tonnes. 356100benefits have not materialized. 2100100 70100The country has a negative agricultural tradeIn September 2008 Sid Saïd, a leader of the balance, and is one of the world’s top ten foodGeneral Union of Algerian Workers, announced importers. Farm produce accounts for more thanBCI of República Centroafricana = 65,2 IEG of Central African Republic = 45,8that the Government had abandoned its “everythinga quarter of the country’s total imports. By value,can be privatized” policy. The 220 public the three main components are cereals and theirenterprises awaiting privatization as soon as new by-products (40%), milk and other dairy productsregulatory measures were implemented were cut (14.3%) and oils and fats (10.5%). 4from the list of companies to be sold. In addition,Spending on imported cereals and their by-the Government’s inter-ministerial council products, drugs, milk and dairy products jumped100100applied in January 2008 on bank credit and financialclean-up of public economic institutions up from a bit over USD 2,000 a year earlier.to USD 2,600 million during the first half of 2008,83by erasing the debts owed them by viable companies.Spurred primarily by a 9.2% 54 increase in the priceThe Government has given responsibility of food, inflation reached 4.9% in the first half offor supervising these clean-up measures to an 2008, though it was up only 2.5% for the entireinter-ministerial working 0 group for the finance year (June 2007-June 02008). In an attempt toindustry and investment promotion among small temper price volatility, the Government launchedand medium enterprises.97100 67100100054100 100993 See: .IEG of Honduras = 68,94 High Level Conference on Water for agriculture and energy inAfrica: the challenges of climate change. The Algerian case.Sirte, Libya, 15-17 December 2008.22100100100100National reports 50 <strong>Social</strong> <strong>Watch</strong>10095100
CHART 1.160140120100806040200138.5Exchangereserve68IncomeregulationfundsExcessof bankliquidityExternaldebta regulatory system in July 2008. Since then, ithas stored about 51,700 tonnes of potatoes.394Source: Bank of Algeria.To revitalize rural areas, which house a substantialproportion of the population, the Governmenthas launched a multi-pronged developmentplan based on the following three elements:• Improvements in the living conditions of therural population, including the rehabilitationand modernization of villages and ksours(Berber villages throughout the oases).• Diversification of rural economic activity toincrease incomes, while protecting and increasingthe value of natural resources, aswell as both material and nonmaterial aspectsof rural heritage.• Building human resources through technicalassistance. Almost all farming is private, withvarious forms of ownership. Traditionally,most farmers have been engaged in cultivatingdry cereals and breeding small ruminants,however in recent years, some have begunsowing crops with higher value added, suchas fruits and vegetables. With the exceptionof industrial tomatoes and olive oil, productionof industrial crops remains limited.In another effort to stimulate rural revitalization,the Government has initiated more than5,000 local development projects benefiting morethan 2 million households – which amount tonearly 8 million people.The national highway plan for 2005-2025produced by the Ministry of Public Works includesa 1,216 km-long network of east-west motorwaysconnecting Annaba and Tlemcen. This will benefit24 wilayas (provinces) and generate 100,000construction jobs. The project is scheduled tobegin in <strong>2009</strong>. 5ConclusionFor at least a decade, two factors have had a powerfulimpact on Algeria’s economy and finance.One is a hydrocarbon policy that has promoted developmentof the country’s resources, leading toan increase in production capacity — oil productionjumped from 0.9 million barrels a day in 2000to 1.4 million in 2008, of which 1.2 million barrelswere exported. 6 The other is unprecedented Statesupport for public banks — 2.6% of the averageannual GDP for the 1991-2002 period and 1.7%for 2005-2006 — within a context of monetaryand financial reform. 7 These two polices broughta massive increase in foreign exchange reserves,robust income regulation funds, a surfeit of bankliquidity and a low level of foreign debt. n5 See: .6 See: .7 Intervention by Prof. Farid Yaici: “The effects of the crisis onthe Algerian economy“. Seminar organized in collaborationwith the Ministry of Industry and Investment Promotion.<strong>Social</strong> <strong>Watch</strong>51Algeria
argentinaNew context, old policiesInflation, poverty and indigence levels are far higher than official statistics indicate. Measures taken tocombat the imminent economic crisis should be designed to diminish the concentration of resourcesand inequality. This would require an agenda that includes social policies that reverse the dynamics ofexclusion the country has endured in recent decades and create a citizenship based on individual andsocial rights. Sustaining these social policies will require ensuring access to reliable official information– a significant change from what has been provided lately.Centro de Estudios Legales y <strong>Social</strong>es (CELS) 1Basic Capabilities Index (BCI)fricana = 65,2100Without a doubt, the global financial crisis will soonhit Argentina, raising several questions: What policiesare being proposed to mitigate the impendingincrease in poverty? Are the post-crisis policies of222001, which have been sustained in a context of economicgrowth, still in effect? And, finally, what are00the chances that current narrowly targeted national96 3999 98programmes to ameliorate exclusion, poverty and100 100 100100 100indigence (income transfers, for example) 97will be Births attended byabandoned in favour of universal policies?skilled health personnelSurvival up to 5The 1990s were IEG a period of Algeria of economic, = 52,7politicalBCI of Argentina = 97,8and social transformation in Latin America. This was The elevated level of poverty is particularlyparticularly true in Argentina, which implemented alarming at a time when the era of economic growththe policies dictated by international credit institutionsappears to be ending and the international crisis ismore rigorously than any other country. At the making its way to Argentina. <strong>Social</strong> vulnerability issame time, in the space of a few years the country high. The greatest threat is inflation – which unofficialtransformed its economic 100 system, regulatory frameworkand social security coverage; privatised its If the cost of the basic food basket outpaces wageestimates calculate at 100 four times the official figure.98public services; abandoned State responsibility for increases, the narrow margin that separates manya number of concerns and services; and adopted a households from poverty will quickly disappear.concept of social policy that ignored human rights.Contrary to the expectations of the initiators of Unemployment1100these policies, unemployment, poverty, indigence Between 2003 and 2007 the unemployment rate3and inequity rose steeply. In late 2001, in the midst dropped by more than a third; during the fourth quarterof 2008of an acute institutional and economic 56crisis the Gov-100it was 7.3%. 5 Underemployment 99also fell100 100 70100100 100ernment fell; the country abandoned currency convertibility,which had been maintained for a decade.In October 2002 57.2% of the population was livingin poverty; this includes 27.5% who were indigent. 2Although signs of economic recovery emergedafter 2003, according to government figures (whichare currently unreliable), 17.8% of the populationwas still below the poverty line in the first half of2008, and 5.1% was indigent. 3 Private and independentreports estimate that more than 30% of100the population remained below the poverty line in2008 – about 12 million people; 54while 10% (about 4million) were indigent. 4100BCI = 98 96GEI = 72Children reaching5th gradesignificantly, to 9.1%. While welcome, these improvementsare less heartening than they might appear atfirst glance. Many of the newly employed work in theGender Equity Index (GEI)Empowerment62100 10099Economic activityEducationIEG of Argentina = 72,3Access to informationThe country’s economic distress is exacerbated bythe failure of the Government’s National Instituteof Statistics and Surveys (INDEC) to produce anddisseminate reliable information on employment,poverty and inflation and other sensitive topics. This100makes it difficult to develop a realistic analysis ofthe social situation and to design appropriate policies.The statistical user bases for the Permanent43Household Survey and the Household ExpenditureSurvey, which are essential for analysing inequalities0in household income, as well as the socioeconomiccharacteristics of households, are no longer madepublic. Other Government 46 agencies are similarly100 100unhelpful. The website of the Information, 97Monitor-ing and Evaluation System for <strong>Social</strong> Programmes(SIEMPRO) was suspended for a lengthy period;the relaunched site does not contain complete information.Other official websites do not providecurrent data, which makes it difficult to analyse socialpolicies.Inevitably, in the absence of good official data,alternative measurements have proliferated. TheyIEG of Central African Republic = 45,8 BCI of Chile = 99IEG of Chile = 61,9informal sector; although unregistered employment hasfallen from 47% of the workforce in the first quarter of2003 to 37.8% in the final quarter of 2008, this is still anextremely high level. It means that four out of ten wageearners are excluded from labour regulations and publicpolicies that promote indirect wage payments (such100 99100as increases in family allowances, regulations on benevolentfunds, retirement schemes, etc.). Independentresearchers estimate that only 125,000 people are collectingunemployment insurance out of thestatistics indicate.451,200,000reveal, among other things, that levels of inflation,poverty and indigence are far higher than the officialGovernment solutionswho the Government officially reports are unemployed.1 Written by Pilar Arcidiácono and 0 Laura Royo, director and The majority are discouraged, 0 among other things, by Since the 2002 crisis, Argentina’s 0 social policies canmember of the Programme for Economic, <strong>Social</strong> and Culturalthe low benefit rate, which barely equals 20% of the averagecurrent 100 salary. It should also be noted that 99 gender at workers in the formal labour market and policiesbe grouped in two broad categories: policies aimedRights at the Centre for Legal and <strong>Social</strong> Studies (CELS), and97Facundo Capurro Robles, 54 member of CELS. Our thanks to100 100 100100 100100 68100Gustavo Gamallo (University of Buenos Aires).inequities in the labour market persist, and the Governmenthas done nothing to remove them. 6social programmes that transfer income.designed to assist the rest of the population through99962 Statistics and Surveys Institute (INDEC). Permanent82,4Household Survey and statistical regions (2001). AvailableAside from wage increases, the policies targetingworkers infrom: . IEG of Honduras = 68,9 BCI of Hungría = 99,35 “Seguro de desempleo: lo piden pocos y estáIEGtheofformalHungarylabour= 69,8market have3 INDEC (2008).4 La Nación, 4 March 2008.desactualizado”. Clarín, 9 March <strong>2009</strong>.6 Ibid.also included reforms of social security and family1000569910099100100National reports 52 <strong>Social</strong> <strong>Watch</strong>100 100100
allowances, along with incentives for employmentregistration and other measures. This approach appearsto be grounded in a growing confidence inthe market as a focal point for integration and thepreferred mechanism for meeting individual and socialneeds, supplemented by a series of “temporary”policies.Income transfer programmes for sectors outsidethe formal labour market experiencing varioustypes of “vulnerability” include the UnemployedHeads of Household Plan (PJJHD), established in responseto the economic crisis and high level of socialconflict during final years of currency convertibility.This programme focuses on providing direct monetaryaid (about USD 40 per beneficiary). It is billedas “guaranteeing the family right to social inclusion”,which is understood to mean ensuring that childrenattend school, that people can get health care, thatrecipients participate in the formal education systemand/or labour training activities that will contributeto their future employment, and that they have anopportunity to participate in productive projects orcommunity service, in accordance with the methodof “compensation”. 7One of the plan’s major achievements hasdoubtless been its success in assisting large numbersof people within a short period of time. ThePJJHD began operations in June 2003, and reached1,992,497 people. In November 2007 it had 795,274recipients on its rolls. 8 Since then, the number ofbeneficiaries has dropped, due to rising employment,young people aging out as they passed their19 th birthday, and the transfer of many beneficiariesto other social programmes, such as the Families for<strong>Social</strong> Inclusion Programme (PF).In March 2006, during the period of economicgrowth, the Government introduced a training andemployment insurance plan for recipients of PJJHDaid who were considered “employable” or on theway to becoming so, however only 32,000 recipientsjoined the programme in its first 12 months. 9The PF was created within the orbit of the Ministryof <strong>Social</strong> Development to provide for people7 Decree Nº 565/02 2002.8 According to Ministry of Labour, Employment and <strong>Social</strong>Security information, in December 2008 the total number ofemployment programme beneficiaries amounted to 970,000.However, in establishing a non-differentiated benefit forevery unemployed head of household, the PJJHD did notmake any distinction regarding the composition of the familygroup. Thus, the larger number of people in the household,the smaller the impact of the benefit. It also lacked anyadministrative and/or judicial means of making claims.Although many appeals on the grounds of unconstitutionalityhave been submitted, the results are not encouraging,either with regard to changing public policy, or in terms ofpromoting dialogue and interaction.See: Pilar Arcidiácono and Laura Royo. "More market andfewer rights: the State's response to the housing crisis".<strong>Social</strong> <strong>Watch</strong> <strong>Report</strong> 2007.9 “The labyrinth of social plans”. La Nación, 4 March 2007.considered “unemployable”, particularly womenwith children or who might give birth. Accordingto official data, 504,784 families were in the programmeby August 2007. Benefits to these familiesvaried according to the number of children in thehousehold below the age of 19, and disabled peopleof any age in their care. The basic benefit is 155 Argentinepesos (USD 42) and may be as much as 305pesos (USD 82) if the family includes six minors.Mothers with seven or more children are eligible fora pension of 390 pesos (USD 105).Despite the scale of these programmes, theyare hardly responsible for the drop in poverty andindigence percentages between 2002 and 2007.Their contributions can at best be characterized as“relief”, rather than a strategy to “overcome” poverty.10 Above all, in the shadow of the internationalcrisis, the persistent and intractable nature of thesituation makes it truly alarming. Although PJJHDhas far fewer recipients than it did during 2001-02crisis, their numbers are still significant for a countrythat has experienced considerable economic growth.Furthermore, at this point access to both PJJDH andPF is only available to people who obtain a courtorder. For many sectors, universal coverage is onlya dream.Need for universal social policiesIncreases in employment and income have beenlargely confined to the formal labour market. TheState has created and maintained macroeconomicconditions that have spurred an economic revivaland supplemented this resurgence by introducinga variety of policies and actions such as a minimumwage, aimed at boosting the incomes of wage-earnersin the formal sector. The position of these workershas improved over what it was under the policiespursued in the 1990s. However the persistence ofa high level of unregistered employment, povertyand indigence diminishes the impact of measuresaimed at formal workers and increases the disparitybetween the two sectors.This gap is accentuated by income transferprogrammes. For example, workers within theformal labour market receive a family allowance(AAFF) per child. Those not eligible include workersin the informal economy, self-employed workers,unemployed workers who are not unemploymentinsurance beneficiaries (such as those who benefitfrom social plans), domestic workers, migrants,persons deprived of their freedom or persons whoare institutionalized due to mental health problems.Thus, the 2001 National Population Census foundthat 70% of all children were excluded. Although itshould be noted that the aim of the family allowancewas not to cover each child directly, but to encouragefamily growth and promote an increase in the10 INDEC (2007).number of formal wage earners. A child whose fatheror mother is outside the formal labour market, as aself-employed worker or as a beneficiary of a socialprogramme, should benefit from these programmesas well.Similar discrimination is evident in incometransfer social programmes. The PF provides motherswith 45 pesos (USD 12) per child, while a childwho is lucky enough to have two parents in the formalwork sector may receive as much as 100 pesos(USD 27) through the family allowance system.The new scenarioIt is possible that the international crisis may besparking a “rediscovery” of poverty and open a windowof opportunity for discussion of universality.In an encouraging sign, a range of political sectorshave proposed income transfer plans for children,with a variety of benefit levels and various degrees of“universality”. So far, they have been discussed onlyin parliamentary committees; none have reachedthe full Congress. However, the province of BuenosAires, the most significant in the country in terms ofboth political influence and population, is graduallyimplementing a “universal” benefit policy.Although the universal policies suggested so farwill not solve the problem of poverty and exclusion,they could generate a social policy appropriate tothe socio-economic context and the changes in thelabour market. This will only happen if policymakerspay attention to the transformations the economyhas undergone in recent years and avoid policiesappropriate to other contexts, such as a full-employmenteconomy.The conclusion is obvious: during the economicrecovery, the State has not substantially modifiedthe country’s high concentration of income and extremeinequality. A transformation agenda should bebased on the principle that social policy is essentialto the construction of citizenship based on respectand the enhancement of individual and social rights.Universal policies could provide an effective strategyfor overcoming the exclusionary dynamics of recentdecades. Formulating them will only be possible ifthe public has access to reliable and extensive governmentdata on socio-economic conditions. n<strong>Social</strong> <strong>Watch</strong>53Argentina
ahrainThe impact of globalization on Bahraini peopleThe Bahrain’s economy is growing, along with per capita income. However, along with the increasingnumbers of millionaires the middle class is shrinking and the lower class is becoming impoverished.There are increasing confrontations and tension between the impoverished groups and security forces.A strategy to shield society from the negative impacts of globalization is urgently needed.8<strong>Social</strong> <strong>Watch</strong> Bahrain 1Basic Capabilities Index (BCI)100100 99Bahrain traditionally has had an open economyfor trade, investment and exchange. Since its independenceChildren reaching5th gradein 1971, the country has been a fi-56nancial hub for international banks and financialinstitutions, joint Gulf Cooperation Council (GCC)0ventures and a transit spot for trade and commodities.0It has been a member of the World Trade9899Organisation since 62 1997, removing barriers to99100 100 100100 100trade and investment and the movement of 99 labour. Births attended byBahrain signed a Free Trade Agreement (FTA) with skilled health personnelSurvival up to 5the US which facilitates trade, investment and labourmovement between the two countries. As amember of the GCC, Bahrain is negotiating with theEuropean Union (EU) regarding a FTA and recentlyhosted an ASEAN-GCC conference which debatedthe prospects of concluding an FTA between thetwo economic groups. 100Like many other countries, Bahrain has beeninfluenced positively and negatively by globalization.This report will concentrate on the impact of43globalization on the well-being of Bahraini residentsand consider this from a number of angles:0Liberalization of the economyThe Government has 46been steadily pursuing economicliberalization, which means less and less 97 state100 100involvement in running the economy. This has in inevitablyled to the State abandoning certain essentialservices it previously rendered to its citizens. It hasalso led to the opening of the market to competitionbetween local and foreign companies. Furthermore,the reduction of restrictions on foreign residents hasresulted in their occupying jobs traditionally limitedto Bahrainis, such as legal counselors and auditors.100PrivatizationIn attempting to maintain pace with globalizationand to be able to compete in an open mar-45ket, the Government has resorted to privatizing anumber of state institutions 0 and services, includingelectricity and public transport. In addition, ithas increasingly opened other sectors to private100 68100control, such as education, health care services, 96BCI = 99 GEI = 46Gender Equity Index (GEI)Empowerment100 10098Economic activityEducationIEG of Argentina = 72,3 IEG of Bahrain = 46municipal services,ICB deadministrationBahrein = 99of ports andair transportation.InflationThe inflation rate has increased steadily, exceeding7% annually for the last few years. There hasHousingbeen no substantial concurrent increase in salaries,The Government has increasingly lifted restrictionson the acquisition 100 of 100 real estate by foreign liament agreed in December 100 2008 to a BD50 (USDespecially in the public sector. In view of this, Par-residents, especially for GCC citizens, which has 133) allowance/bonus to Bahraini families annualy,led to a rise in ownership of land and property in for the next two years. However, this does little toresidential areas. Bahrainis now find themselves at alleviate the impact of inflation for most workers,a disadvantage in terms of purchasing power comparedto other GCC citizens. This has led to an acute are in the same situation, with wages failing to keepincluding the low-income 29 foreign residents who00housing crisis: the demand for state-subsidized pace with inflation. The disparity between a minoritywith very high incomes and a majority with veryhousing is surpassing supply and there is currently99 99100100a backlog of some 60,000 applications. As a result, low incomes is increasing. There are some Bahrainifamilies who are living on BD 120 per 98 month100 100 100100 68100100many families have been obliged to move back intoextended family accommodations, many of them (USD 319). Although the Government denies thatcongested and poorly equipped to deal with overcrowding.this kind of relative poverty exists in Bahrain, it hasIEG of Chile = 61,9 BCI of Chipre = 99,6IEG of Cyprus = 65,1EmploymentDue to the lax policy control on the flow of foreignworkers, especially cheap labour, Bahraini jobseekers are in a weak position when competing for100jobs that require specific educational backgroundsand skills. Foreign workers are also more willingto accept lower salaries and tougher working66conditions. So, despite increased employment opportunitiesgenerated by a growing economy, unemploymentis growing 0among Bahraini citizens,especially among women and those whose educationalqualifications (e.g., liberal arts or 92 sociologydegrees) are not well matched with the new jobs.been identified by independent researchers as wellas the United Nations Development Programme(UNDP). 2Changing social fabricThe steady increase in foreign workers, especially100from Asia, over the last decade has resulted in thegrowth of the expatriate population from 37% of thetotal in 2001 to 50% in 2007, altering the fabric ofsociety. Foreign workers tend to live in work camps,isolated from indigenous communities, in derelictareas of town and in small 0 8groups adjacent to indigenouscommunities. There is, in general, little integrationof these workers into the public arena, in37100social activities and in NGOs. Moreover, 78 100the majorityof these workers live alone, with no family, which9947 89100 100 1001003 1 Bahrain <strong>Social</strong> <strong>Watch</strong> Coalition IEG of is Hungary composed = of 69,8 BahrainTransparency, Bahrain Human Rights Society, BahrainiWomen Renaiscence Society, Awal Women Society,Sociologists Society Best.BCI of India = 68,5IEG of India = 40,72 UNDP’s Human Development <strong>Report</strong> 2007-2008 givesBahrain 0.88 points on the Human Development Index,despite its impressive per capita income of 20,800.3410006100National reports 54 <strong>Social</strong> <strong>Watch</strong>100 10010084
is viewed as a departure from the social norm andhas caused friction between the two communities,especially those adjacent to each other. In general,the lower standard of living and lack of social lifeamong these workers generates an environmentconducive to crime, especially sexual assault, burglary,theft and physical abuse/assaults. Poor livingconditions, mistreatment from employers, such asthe withholding of payment, often for months, hasled many foreign workers to suicide, since they findthemselves in debt and unable to send money backto families in their countries of origin.ConclusionDespite the fact that the Bahraini economy isbooming with a high growth rate and increasingper capita income, the benefits of globalizationhave not extended to the population as a whole.There are increasing numbers of millionaires, anda shrinking middle class and impoverished lowerclass. The country has been witnessing repeatedconfrontations and tension between impoverishedcommunities and security forces, especially in thevillages, which is why the World Bank now ranksBahrain low in political stability. 3 There is need for astrategy to shield society from the negative impactsof globalization. n3 World Bank, Governance Matters <strong>2009</strong>: WorldwideGovernance Indicators, 1996-2008 shows that Bahrain’sranking rose above .50 only in 2003, after which it declinedsteadily until 2007, improving only slightly in 2008 to about.36. Available at: .<strong>Social</strong> <strong>Watch</strong>55Bahrain
angladeshMore poverty, vulnerability and food insecurityPoverty, vulnerability and food insecurity have increased in Bangladesh. The high price of food grainsand the high level of inflation have led an additional 12.1 million people into poverty. There is increasedfrequency and severity of natural disasters. Two consecutive floods, plus Cyclone Sidr, together withthe global price of food have led to food supply problems. It is the poorest and the female-headedhouseholds who are worst hit by the hike in prices for basic goods.Unnayan ShamannayTaifur RahmanArifur Rahman100Basic Capabilities Index (BCI)100BCI = 56 GEI = 53Children reaching5th grade55Gender Equity Index (GEI)EmpowermentSince its independence in 1971, Bangladesh pursuedan inward looking development strategy with19excessive government intervention in every aspect of0 600economic activity. With the vision of a socialist typeof agriculture, cooperative farming was encouraged20349993while the procurement and distribution of seed, fertilizers,pesticides and all sorts of agricultural 98equip-Births attended by54100 100 100100 100100 10086ment was controlled by the Government. A series of skilled health personnelSurvival up to 5 Economic activityEducationmeasures, quantitative IEG restrictions, of Bahrain highly = 46 differen-BCI of Bangladesh = 56IEG of Bangladesh = 52,7tiated tariff rates (ranging from 0% to 400%), andhuge subsidies, along with an overvalued exchangerate, were put in place to protect domestic farmsfrom competition. This restrictive environment wasreinforced by domestic market policy interventionsin the form of credit ceilings, 100 arbitrary licensing andwhich translated into sectoral policies that supportedmacroeconomic liberalization. Reform measuresadopted included the rationalization of tariffs, theliberalization of investment in irrigation, the privatizationof trade in fertilizers, agricultural machinery imports,seed delivery and 100food distribution systems,98price controls.as well as management of agricultural research andThese policies did not result in a sustained extension systems. Moreover, reforms in farmingincrease of production and productive efficiency; led to a shrinking role of the Government; this wason the contrary, the gap between 29 demand for and reflected in the distribution of goods, the reduction ofsupply of agricultural products widened over the subsidies, the liberalization of markets with producers’price incentives, the gradual elimination and nar-00years. To find a way out of this crisis in the 1980s,the country pursued a policy shift away from state rowing down of the public grain distribution system,100100100interventionism to more market -oriented policies price stabilization through open tender procurement100 100 68100100 10098policies and the liberalization of food grain importsby the private sector.The liberalization efforts were not confined tothe agricultural sector. The whole economy beganto go through all-out liberalization, particularly afterthe early 1990s, and became 100 one of the most rapidlyliberalized in the world. Although some claim thatthis was done too rapidly, the World Bank observed,“While trade liberalization occurred in fits and starts43in Bangladesh, stronger and more decisive commitmentto trade liberalization was seen in the majority0of the rest of the world. As a result Bangladesh lagsbehind on most measures of trade openness. Evenafter the reduction in nominal protection in the financialyear 2007 budget, Bangladesh has the 97 highest10064100100CHART 1.level of trade protection in the region, which itself isBCI ofthe most trade restrictive IEG of Czech region Rep. in the = 68,1 world”. 1IEG of Cyprus = 65,1República Checa = 99,2Despite mounting pressure for more liberalization,GlobalPrice CrisisClimateChangeGlobalFinancial Crisisthe results of past liberalization measures mustalso be assessed. Did common people benefit fromthe process of liberalization or were the only beneficiariessome booming multinational giants? OneGlobalIncreased frequencyReduced flowof the major consequences of the all-out reformsfood price 100increaseand severity of100100of remittancesnatural disastershas been increased dependency on imports, includingagricultural products. As a result, despite being81an agricultural nation, the country has been losingcontrol of the prices of many ordinary products that0Shortage ofReducedpeople need every day.8food supplypurchasing 00capacityThe impact of theNOglobalVA0crises923789 95 The diagram in the opposite page illustrates the 99100 100 78 100100 100100 100100impact of the inter-related global crises in climateIncreasedfood insecurity, povertychange, commodity prices and economic and financialIEG of India = 40,7and vulnerabilityBCI of Irak = 88,4crises on poverty and food insecurity.IEG of Iraq = 010010077Source: falta fuente falta fuente falta fuente!!!!1 World Bank. Bangladesh: Strategy for Sustained Growth,Bangladesh Development Series, 2007.National reports 56 <strong>Social</strong> <strong>Watch</strong>100 100100
Climate changeBangladesh tops the list of countries worst affectedby climate change. One of the recent changes thatthe country is facing is the increased frequency andseverity of natural disasters. Cyclone Sidr, whichhit the Bangladesh coastal belt in 2007, was one ofthe most devastating disasters in the history of thecountry, resulting in a huge loss in natural resourcesand, more importantly, contributing to one of themajor food shortages since the 1974 famine. Thiscoincided with peaking global food and commodityprices and an unprecedented shortage of food suppliesaround the world.Sidr and its impact on food insecurity constituteonly one example of the many problems Bangladeshfaces as a result of climate change. The changesin seasonal patterns and temperature have a negativeimpact on agricultural yields and on productioncosts. 2 On the one hand the country is struggling toproduce the food it requires, and on the other theprice of food remains high due to the increased costsof production.Climate change is particularly impacting somepoverty pockets in Bangladesh, which are now beingconsidered also as ‘climate change hotspots’. Thepoor and extremely poor people living in these ecologicallyvulnerable pockets are facing increasinglyharder realities due to changed patterns of nature. Forexample, in the northwest region the severity of soilerosion caused by river flows has increased substantiallymaking poor inhabitants much more vulnerableto poverty and hunger. Similarly, in the northeastwater basins, the changed timings of emergenceand retreat of water are having significant negativeimpacts on agriculture and food production.CHART 2. Food Inflation Rate: 2007-08Food pricesIn addition to the massive loss in domestic productionin 2007 and 2008 following two devastatingfloods and cyclone Sidr, another major contributorwas the global rise in food and commodity prices.The food inflation rate for the poor was much higher,exceeding 20% towards the end of 2007. Chart 2presents the official food inflation rates, includingthe overall rate and the rate estimated for the povertyline food basket. It is worth to mention that althoughthe bumper crops in 2008 and <strong>2009</strong> led to aggregatefood supply and that, as a result of close monitoringby the Government, food prices, particularly thoseof rice and edible oil went down significantly, theproblem remains in distribution. The level of food insecurityamong the poorest households, particularlyin the ecologically vulnerable areas, has not beensolved. Moreover, the high costs of production havelowered the farmers’ margin. A study by the Dhakabasedthink tank Centre for Policy Dialogue (CPD)indicates that 48.5% of people in Bangladesh do nothave enough money to buy basic food items suchas rice, compared to 40% in 2005. 3 The CPD reportSep 2008over Sep2007Point to Point Inflation RateDec 2008over Dec2007Jan <strong>2009</strong>over Jan2008Feb <strong>2009</strong>over Feb2008Official rate of food inflation 12.07 6.83 6.83 6.15Inflation according to poverty line food basket(average for 4 major cities)18.65 10.32 9.18 8.70Inflation rate for low income groups -- 9.45 8.03 7.72Source: Shamunnay (<strong>2009</strong>).stresses that, “as a consequence of high prices offood grains and high level of general Inflation, anadditional 12.1 million people (8.5% of total population)became poor between January 2005 and March2008”.InflationStarting in late 2007, the inflation rate in Bangladesh,which had been practically unseen during the lastdecade, reached double digits – hitting 11.21% inNovember, according to the Bangladesh Bureau ofStatistics. The burden of inflation fell disproportionatelyon the poorer sectors of society. Some studieshave showed that it was the poorest and the femaleheadedhouseholds who were hit the most from thehike in prices of essential goods. 4The net result of all this is that the extent ofextreme poverty, vulnerability and food insecuritymight have increased. It is feared that the rate ofextreme poverty may have actually increased, aggravatedby continuing food insecurity, especially in thepockets of extreme poverty and vulnerability. n2 European Parliament. “Climate Change Impacts andResponses in Bangladesh”, 2008. Available from: .3 See: .4 UNICEF. “A Matter of Magnitude. The Impact of the EconomicCrisis on Women and Children in South Asia”, <strong>2009</strong>.Available from: .<strong>Social</strong> <strong>Watch</strong>57Bangladesh
BELGIUMThe high cost of the bank rescue100491003700When the shares of banks and the principal enterprises in the country collapsed, the Government went87to the rescue of the banks 100 and provided deposit guarantees. 100 The crisis 100 81is still causing unemployment83 100to rise, while the cost of the bank rescue is making itself felt in the drastic increase of public debt, withserious repercussions in the provision of social security.BCI of Uganda = 59,2IEG of Uganda = 67,242 100100CNCD - 11.11.11Arnaud ZacharieGaspard DenisIn 2008, two of the largest banks in Belgium, Fortisand Dexia, began to experience serious problems,worsened by the financial crisis which otherbanks in the world were suffering. The shares ofFortis and Dexia, like most of the shares in Belgiancompanies, collapsed. The Government’s reactionwas to go to the rescue of the banks and guaranteedeposits, but the cost of the financial collapsehas still been particularly serious, not becauseof the bail-out funds paid out by the State, butbecause of the vast increase in the level of publicdebt which the country had been attempting toreduce for about fifteen years.The State has spent almost EUR 20 billion(USD 28 billion) in providing a capital increase forthe banking sector. To this sum should be addedEUR 25 billion (USD 35 billion) offered by the Statein the form of guarantees, due to which the totalbill for public aid given to banks is close to EUR45 billion (USD 63 billion). In addition to debt, theconsequences of the rescue also include budgetproblems, rising unemployment and uncertaintyregarding the State’s capacity to continue to financeits social model.The cost of rescuing the banksThe rescue operations carried out by the FederalGovernment and the federated bodies led to thenationalization of Fortis Banque, as well as a capitalincrease for the Dexia Banque, the KBC groupand Ethias, an insurance company. Within a termof three months, public authorities reappeared inthe Belgian banking sector, after having abandoningit almost two decades earlier. However, conditionsfor the financial institutions’ plans for a capitalincrease have been to a large extent, weak andobscure. Thus, rescue measures have adaptedperfectly to the old liberal adage: “socialize losses,privatize profit”.Dexia, a Franco-Belgian-Luxembourg bank,received a capital increase of EUR 3 billion (USD4.2 billion), from Belgian public authorities (thefederal State and federated bodies). The Frenchsupplied an equivalent sum of EUR 2 billion (USD2.8 billion) through the French state financial institutionCaisse des Depots, and 1 billion (USDBasic Capabilities Index (BCI)100BCI = 98 96GEI = 72Children reaching5th grade0100100 100Births attended byskilled health personnelSurvival up to 5ICB de Belgica = 98,31.4 billion) from the State. This investment has increasedFrench participation from 11.5% to closeto 28% of the bank’s capital and, as a result, madeit possible for the French share to achieve a minoritywith blocking capacity in the banking group.The KBC bank, for its part, has benefited fromthree successive rescue plans to date. First, in October2008 the Federal State intervened providingEUR 3.5 billion (USD 4.9 billion). Then, in January<strong>2009</strong> the Flemish Region paid out EUR 2 billion(USD 2.8 billion) and lastly, in May it again issuedState bonds for a total of EUR 2 billion (USD 2.8billion) in order to finance the KBC group. In all,to date KBC has received close to EUR 7.5 billion(USD 10.5 billion) from Belgian tax-payers.Regarding the bail-out of Fortis, the Belgian-Dutch group, capital participation of the BelgianState reached 99.93% in October 2008, whichconstitutes a total of EUR 9.4 billion (USD 13.16billion). However, it has shown from the start awillingness to sell 75% of its holdings in Fortis tothe French group BNP Paribas. Nevertheless, theopposition of Fortis Holding shareholders to thedismantling of their group has twice forced theGovernment and BNP to revise their agreementfor the transfer of Fortis Banque. The third versionwas finally approved by the shareholders in twogeneral assemblies held on 28 and 29 April <strong>2009</strong>in Gand (Belgium) and Utrecht (Netherlands). Inshort, in exchange for transferring its holdings inFortis Banque to BNP Paribas, the Belgian Statehas received 11.6% of the French banking group’scapital.Gender Equity Index (GEI)Empowerment99 9410064100100961000Public debt soarsWhen Belgium applied for inclusion in the Europeansingle currency in the early 1990s, a seri-Economic activityEducationIEG de Belgica = 72,2ous pro blem arose: the weight of the public debt.Although Maastricht convergence criteria stipulatedthat a member state’s debt should not exceed60% of its GDP, Belgian public debt exceeded it by130% in 1993 and 1994.Because of this, an austerity plan was implementedwith painful results for the levels ofpublic spending but it made possible to reducethe country’s debt, which had descended to 84%of its GDP in 2007.Today, the cost of the bank bail-outs and theimpact of the financial crisis on public financehave resulted in a sharp increase in the rate ofdebt, reaching 89.7% in 2008, while the BelgianNational Bank forecasts a rise to 103% in 2010.This constitutes a debt of over EUR 30,000 (USD42,000) per inhabitant. The Government deficithas naturally followed the same curve: from 1.2%of the GDP in 2008 it is expected to soar to 5.5%in <strong>2009</strong>.<strong>Social</strong> security and unemploymentDue to the Government deficit, financing for socialsecurity has also been affected, with a deficit ofEUR 2.45 billion (USD 3.43 billion) in <strong>2009</strong> due tothe drop in revenue from social security contributionsand VAT. The Government forecasts a deficitincrease for social security of EUR 5.3 billion (USD7.42 billion) in 2010.Lastly, unemployment is still on the rise dueto the recession of the economy. In June <strong>2009</strong>,443,574 people were unemployed, which meansthat there are 43,433 new unemployed personsover the past year.In June <strong>2009</strong>, the High Council for Employment,which answers to the Ministry of Employmentand Equal Opportunities, published a report56ICNational reports 58 <strong>Social</strong> <strong>Watch</strong>
on “Recent evolution and the outlook for progressin labour” 1 , devoted to the analysis of the globaleconomic crisis and its consequences for employment.According to this document, activity regressed1.7% in the first quarter of <strong>2009</strong>, as comparedto the same period in 2008. After a zerogrowthperiod for employment during the fourthquarter of 2008, close to 10,000 jobs disappearedin the first quarter of <strong>2009</strong>. The number of hoursworked in temporary jobs had not ceased to dropafter the second quarter of 2008. This tendencybecame more marked in April with a 28% dropcompared to the previous year. Belgium’s NationalBank forecasts the disappearance of 36,000 jobsin <strong>2009</strong> and a further 80,000 in 2010. Bearing inmind the continuous growth of the active population,the number of persons seeking employmentwill increase in <strong>2009</strong> to 68,000 and to 111,000 in2010. The unemployment rate will therefore risefrom 7% in 2008 to 9.2% in 2010. n1 See: .<strong>Social</strong> <strong>Watch</strong>59Belgium
eninCivil society to the foreThe multiple global crises have had a varied impact on Benin’s economy and the population as awhole has become more vulnerable, especially the poorer members. Civil society has worked both asa partner and in liaison with Government in promoting ways to combat the crisis, develop a new greenrevolution and provide school food programmes. It has also encouraged investment in agriculture andcombating climate change, as well as technological exchange.93<strong>Social</strong> <strong>Watch</strong> Benin100The multiple global crises have had a varied impacton the economy of Benin. Villages have become morevulnerable, especially the poorer ones. Everywhere,options are narrower; funding for small and medium19enterprises, as well as public aid for development0and direct foreign investment, may dwindle.President Yayi Boni, a former banker, expressedindignation when 54 the outgoing president of theBasic Capabilities Index (BCI)100BCI = 77 GEI = 42Children reaching72 5th gradeGender Equity Index (GEI)Empowerment100 100 100100 100100 1008674United States, George Bush, sought to mitigate the Births attended byUS financial crisis by placing USD 710 billion at the skilled health personnelSurvival up to 5 Economic activityEducation6 disposal of large US IEG banks of Bangladesh facing bankruptcy. = 52,7ThisBCI of Benin = 76,9IEG of Benin = 42,1policy was imitated in the European Union, whichcommitted more than EUR 1.3 trillion (USD 1.7trillion) to bailouts. Asking rhetorically where thismoney would come from, Boni predicted that theworld’s poorer countries would end up paying forthe crisis in the long run. 100 In response to this threat1 See: .085551000The role of civil societyGovernment campaigns to minimize cost of livingincreases were supported by civil society organizations.Consumer associations collaborated with theState in supervising prices and helped formulateproposals through their participation in the workState measuresAs it did in 2008, the Government has responded tothe food crisis this year by cutting taxes and creatingtemporary food reserves through the NationalBureau for Food Security. These measures partiallyeased the effects of the 2008 crisis. The chief benefi-to the wellbeing of those who already have least, he100 97100ciaries, however, were traders, who continued to sell of the committees monitoring the cost of living, thecalled for better world governance and reform of the at high prices and made large profits at the expense publication of press releases and the organization ofUnited Nations, including two seats for Africa on the of consumers and the State.press conferences.43Security Council. 1In other measures, the Government suspendedthe Value Added Tax and introduced subsidies for The energy crisis15Financial and food crises 000some foodstuffs (e.g., 25% for rice, milk and sugar) In response to the sharp rise in the price of oil on theIn Benin, the basic family basket is now beyond as well as price controls. To help enforce these, it international market, 25 the population is using more100reach. Shipments of foodstuffs from rural areas launched a nationwide public awareness campaign 97 adulterated fuel, known as kpayo. Official service100 10064100100 74100100 100to the cities have declined and the cost of 97 building and directed the National Bureau for Food Security to stations selling oil products are rarely visited, 91 whichmaterials has increased. A number of constructionprojects have been IEG halted, of Czech including Rep. some = 68,1 Governmentwork. The State has had to use its power torequisition building materials for its most importantprojects. Rural villages, particularly the poorer ones,have been compelled to exhaust their economic resources;they can no longer invest in education andopen offices in the country’s 77 municipalities to monitorprices. The Government ICB de Egipto also = established 89,1 a nationaleffort to control rises in the cost of living, decentralizedthrough departmental and communal committees Thecountry also benefitted from major donations of rice,maize and sugar from Libya and the Gulf states.Despite these measures, poorer and morereduces State income.The high price IEG of of fuel Egypt is particularly = 43,9 onerous in acountry where barely one household in five (22.4%)has had access to a public source of electricity, accordingto the 2002 general census of populationand habitat (RGPH-3). The remaining 77% relied onoil-based lighting. As far as the provision of electricitygoes, Benin appears to have learnt nothing fromfamily health.vulnerable consumers derive little benefit from the100100 100100The increase in the cost of a barrel of oil, the subsidies and continue to have great difficulty obtainingthe previous crisis. After waiting nearly a year fordevelopment of agro-fuels and international speculationpushed the entire world, especially Africa, intoan unprecedented crisis in 2008. Benin was hit by ageneral increase in the price of basic products. Thefood. The Government has failed to providepromised funding for the committees, which arelargely ineffectual. Two long term programmes toalleviate the food crisis are now being implemented:a solution to come from abroad – principally froma hookup between the Transmission Company ofNigeria and the Electrical Community42of Benin – thecountry belatedly decided to acquire gas turbines.price of maize, the most widely 0 consumed product, the Urgent Programme to Support Food Security, This is taking a considerable amount of time.NO VA000soared 220%. Shortages exacerbated the hardships, budgeted at USD 128 million, and the Agricultural In the meantime, much of the economy has95 as low farm productivity and growing demand led to Diversification 99 Programme for the Increase 100 in Value been paralyzed, 55 in particular major industries and100 100 100100 100100 100the over-purchase of locally produced foodstuffs and of the Valleys, estimated to cost USD 20.5 million. microenterprises. Consequences have included97anreduced distribution to consumers, especially theincrease in the price of cement, interruptions in themore vulnerable ones.IEG of Iraq = 0 BCI of Italia = 99,5supply of drinking water and repeated disruptions ofIEG of Italy = 64,5appliances (electrical household appliances, computers,etc.) in villages and towns. This has damagedboth public and private enterprises. Businessmen1854100100100National reports 60 <strong>Social</strong> <strong>Watch</strong>100 10010073
are finding it impossible to meet their commitmentswith financial institutions.The State subsidized the price of oil for a considerableperiod of time, until it declared this had becomefinancially impossible. When international oilprices fell, to discourage the informal sale of kpayo,which causes numerous problems for the population,the Government announced that it would selloil at cost.In response to Economic Community of WestAfrican States (ECOWAS) agreements at summitconferences in December 2001 and January 2006 toinstitute a system for exchanging electric power tomeet growing demand in the region, member statescreated the Ghana-Togo-Benin 330kV Power InterconnectionProject. This project, which requires ahuge financial investment, is designed to encouragecommercialization of electricity, improve distribution,help to reduce the cost of production and coverthe shortfalls in hydroelectric power stations duringperiods of drought.In addition, within the framework of its Strategyfor Growth and to Reduce Poverty (SGRP), theGovernment has initiated reforms in the electricalpower sector to a long-term increase in efficiencyand provide a level of distribution that is satisfactoryin both quantity and quality. It has also introduced taxincentives to encourage private operators to acquireelectricity generation resources from the BenineseSociety for Electric Energy.The climate crisisThe climate crisis in Benin takes the form of increasedvariations in rainfall, a reduction in annual rainfall(projected to drop 15% by 2025) in the northeastof the country, an increase in extreme phenomenasuch as heavy rainfall and storms, a shorter rainyseason, delays and irregularity in the commencementof the rains, and a long-term increase in theaverage temperature (up 1 to 2 degrees by the end ofthe 21 st century). These changes will have a negativeeffect on agriculture, water reserves, and the lakeecosystems of lower Benin, as well as the country’scoast, parks and natural reserves. Three-quarters ofthe port city of Grand-Popo is already submerged.Cotonou, the capital, to the east of the port, is beingtotally eroded. Some scenarios for 2035-2050predict erosion will reach 40 cm.The country’s biodiversity is also expected tosuffer. A major decrease in rainfall north of the 8 thparallel will reduce the exchange of layers by 20% to40%. In addition, it will lead to excessive exploitationof the water reserves on the Calavi Plateau, which willincrease saline intrusion.Forecasts indicate that by 2025, the proportionof the population living in cities will rise from 37% to52%. The country urgently needs to review its urbantransport system and the use of energy to reducepollution. Climate change will have a direct impacton farm production. The rice yield is expected to fall25% by 2050 and pole beans 15%, while productionof yams, the basic food in central Benin, will increaseby 4%. If these scenarios prove accurate, between50% and 60% of the population of southern Beninwill be facing food insufficiency, along with between25.9% and 33% of inhabitants in the central areasof the country.To secure sustainable exploitation of the basinsin the Northwest despite climate change, the Government,with the support of German Technical Cooperation,has launched ProCGRN, a pilot project toconserve and manage natural resources. It focuseson 4 main areas:• Raising awareness of the effect of climatechange on living conditions amongst targetgroups and means of adaptation;• Promoting integrated management of riverbasins to reduce erosion and improve waterinfiltration;• Increasing the availability of drinking water andwater resources for farming; and• Disseminating the results achieved.In addition, Benin prepared a National AdaptationProgramme of Action (NAPA) for climatechange, and has received USD 3.1 million from theWorld Environment Fund to implement it.Climate change was discussed at the meetingof experts from Least Developed Countries (LDCs)in March <strong>2009</strong>. The experts called for guaranteesthat the principal measures of an immediate andurgent nature contained in the NAPAs for climatechange would be implemented. It was noted thatby December 2008, 39 of the 48 LDCs had completedtheir NAPAs but only Bhutan had begun toimplement its programme. This is an indication ofthe difficulty and complexity of applying the principalmeasures of adaptation. According to the Ministerfor the Environment and Protection of Nature, JustinAdanmayi, one of the critical points when applying aNAPA is access to LDC funds and the mobilization ofthe necessary complementary financial resources,especially the national contribution guaranteeing therealization of adaptation measures in situ.Civil society groups have carried out awareness-raisingcampaigns in several populated areasregarding the degradation of the mangrove swamps,which reduces the productivity of lagoons considerablyand threatens their ecosystem.RecommendationsThe food crisis• Immediately respond to the urgent need for foodto prevent malnutrition;• Implement a new green revolution that greatlyincreases farm yield without depleting the soil,support small farmers as essential to sustainedeconomic growth and the elimination of hunger;• Introduce a national food programme forschools using locally produced foodstuffs andensure that nutritional needs are met throughnational nutritional programmes;• Greatly increase investment in farm research, inparticular in the areas of high-yield crops andlivestock, as well as sustainable farming techniques,water control, with particular attentionto the likely effects of climate change;• Promote the production, transformation andconsumption of appetizing local foods; and• Encourage disadvantaged members of the populationto become economically active throughIncome-generating Activities (AGR, in French)and the development of micro-finance initiatives.The climate crisis• Strengthen the powers of leading actors in theissue and those with responsibilities relating toclimate change at national, departmental andcommunal levels;• Create a comprehensive strategy for dealingwith the problems generated by climate changethat includes plans of action at each level ofthe State;• Integrate the theme of climate change into primary,secondary and tertiary curricula;• Support NGOs, which are the real link betweengovernment and local communities;• Initiate in-depth research regarding technologicaltransfer and local knowledge that couldfacilitate adaptation to the negative effects ofclimate change. n<strong>Social</strong> <strong>Watch</strong>61Benin
oliviaThe moment of truthAs a cycle of world growth roared past, Bolivia stood by and watched, unable to take advantage ofthe opportunity to establish its own rhythm of development. Its economy was just beginning to pickup speed, when the global boom began to stall and then go into reverse. In recent years, distributivetendencies in the world economy have been weak. Bolivian entrepreneurs are part of this trend,responding to the severe global downturn through unequal negotiations that shift the burden of thecrisis onto the shoulders of their workers through layoffs and reductions in benefits and wages.85CEDLAJavier Gómez and Gustavo Luna 1100The first result of the world economic crisis wasto shatter the myth that the capitalist system couldbring about a sustained improvement in the livingconditions of workers and their 18families. This basic0failure, which is most evident in the wealthiest countrieson the planet (the epicenter of the latest financialBasic Capabilities Index (BCI)100BCI = 7983 Children reaching5th gradeGEI = 66Gender Equity Index (GEI)Empowermentearthquake) has long 55 been glaring in 54the less devel-100 100 100100 100100 100oped countries in the world periphery.Births attended by95Bolivia’s economy has been a testimony to the skilled health personnelSurvival up to 5 Economic activityEducationinability of capitalism, by IEG its very of Benin nature = and 42,1structure,BCI of Bolivia = 79,4IEG of Bolivia = 66,1to meet the needs of the majority. It initially becameintegrated into the world market as a colonial supplierof raw materials; despite nearly 200 years of independence,it has not been able to break that mold and overcomeits structural vulnerability. This severely limitsBolivia’s ability to take full 100 advantage of cycles of economicexpansion, and makes it extremely vulnerable toexternal shocks whenever the global cycle turns down.The crisisThe current world economic crisis 15 is not just one0more “serious episode” caused by a lack of regulationin financial markets; 25it is a crisis throughout theglobal capitalist system, sending tremors through100 100all spheres of production (energy, food, 91 ecology,social and cultural). This earthquake has revealed theinternal contradictions IEG of of over-production, Egypt = 43,9 the structuraltendency for profit rates to fall and a generaldepression in consumption – all consequences ofthe pursuit of ever-greater profits through constantlyincreasing exploitation of the workforce. From thisperspective, it is easier to understand the “irrationality”of financial speculation in monopolistic capitalism;the drive to scour liberalized financial markets100throughout the world in search of extraordinary profitsderived from the circulation of capital.This is a serious crisis, and42one that will be withus for a long time. Already, it has again exposed theextreme fragility of less developed 0 economies. Thisfragility reflects the nature of capitalist development,which is based on realizing 55 profits and in the process100 100of doing that generates massive inequalities97amongand within countries.IEG of Italy = 64,51 Javier Gómez is an economist and executive directorof CEDLA. Gustavo Luna is a commentator and generalcoordinator of CEDLA.This profile is only too evident in Bolivia. Overthe last seven years large infusions of transnationalcapital have expanded primary materials exports,mostly of natural gas and minerals. At the same time,the industrial base remains weak and wealth remainsconcentrated in the hands 100 of a few, while the vastmajority of households are permanently consignedto a precarious existence. 74Behind the mirageAs the global economy recovered from the Asian crisis0of 1999, trade expanded rapidly and demand for rawmaterials soared. Bolivia’s annual growth has averagedabout 5% over the last four years (2005-2008), 98spurred69by export revenues reaped from high global prices forthe country’s raw materials. The administration of PresidentEvo Morales has taken credit for this expansion,BCI of El Salvador = 80,1claiming that it proves the Government’s post-neoliberaleconomic policy has been a success. However, Peruand other countries that remained faithful to neoliberalismachieved even greater increases in production andexports. In fact, the cyclical boom concealed severestructural defects in the Bolivian economy.100Despite the country’s macroeconomic success,some social indicators failed to improve. Povertyreduction quickly stalled as soaring food pricessqueezed poor households, which spend a largeproportion of their income on their diet.The economy enjoyed NO 0 VA another artificial boostfrom money sent home by workers who had emigrated.In 2007 and 2008 these remittances poured morethan USD 1 billion into the country, more than 6% ofGDP. 2 This cash contributed to increase household97100 100 100100100 100 100612 Central Bank, Bolivia. In 2008, remittances reached USD1.097 billion, an increase of 7.5% compared to 2007. Thisfigure was 6,4% of the GNP.094661000consumption and accelerated growth in sectors likeconstruction and services. 3 However, remittancesare extremely volatile, which soon became only tooclear. The countries of the European Union began implementingrepatriation policies at the beginning of2008, when the crisis was 100 barely looming. It greatlyintensified these policies in September as the crisisbattered construction, manufacturing and personalservices – sectors where most 52 of these workers wereemployed. No longer needed, many immigrants weresummarily expelled.0The return of workers who had emigrated hasintensified pressures in the Bolivian labour market.Underemployment 51 was already prevalent. The influx100 100of repatriated workers has pushed wages 99down toeven lower levels than before, increased the officialunemployment rate and led to worsening workingIEG of El Salvador = 67,5conditions.Income: the Achilles heelPer capita income in Bolivia jumped 34.3% between2002 and 2007, 4 prompting international aidagencies to promote the country from low-income100to middle-income. However most of the populationdid not benefit from the country’s growth, asIEG of = 47,3pay and employment levels and other indicatorsclearly show.Because income is so unequally distributed, about60% of the population NO is still 0 VA below the poverty line. Between2005 and 2007 the proportion living in extreme3 According 100 to the National Statistics Institute, in 2007, 100theincidence of households final consumption expenditure was2.98% of the GNP, an increase of 3.91% compared to 2008.This was a larger figure than the one reached in the previousdecade (1998).4 Escóbar, Silvia. Desempleo, condiciones laborales eingresos. Mimeo. CEDLA, <strong>2009</strong>.3897100100100National reports 62 <strong>Social</strong> <strong>Watch</strong>100 100100
poverty actually increased, from 36.7% to 37.7%. Inrural areas, where poverty is pervasive, the Gini Indexclimbed from an already high 0.62 to reach 0.64. 5These trends reveal that recent economic policiesand expansion have had a negligible effect onincome distribution. Once again, the trickle-downeffect has been exposed as a fallacy; economicprosperity for the majority requires effective publicpolicies that generate greater access to productiveresources and good jobs while raising wages andother income derived from work.Although production expanded at a modest rateof 3.1% per year from 2001 to 2004, employmentgrew at a similar pace, indicating that productivitydid not increase at all. This trend was evident in urbanas well as rural areas. During the 2004 to 2007period, production climbed steadily, with an averageannual increase of 4.5%. Employment growth alsoaccelerated, to 3.9% per year, but its lower rate ofexpansion reflects an annual productivity increaseof 0.7%. In other words, although the economygenerated new employment, most of the gains continuedto be concentrated in low-quality jobs. Again,this was true in urban as well as rural areas.Another mining boomAccording to the National Statistics Institute (INE), in2008 Bolivia’s GDP jumped 6.15%, breaking the 1976record of 6.1%. Most of this expansion was fueled bythe explosion in world demand and prices for hydrocarbonsand minerals. Bolivia’s mining GDP was up9.98% in 2007 and a spectacular 56.26% in 2008.This far outpaced the rate in other economic activities,which averaged only 4.33% growth. In consequence,mining’s incidence rose from 0.41% to 2.41%, and itsshare in GDP rose from 5.81% to 8.55%. 6The boom in mining was not the fruit of a robustsector with several enterprises competing to exportmore. Quite the contrary, it was generated by a singleenterprise, the San Cristóbal Mining Project (PMSC),operating with transnational capital. This companyaccounted for 40.7% of the total production valueof minerals in the country. Without the PMSC, BolivianGDP growth would have been only 5.13%, wellbelow the level achieved in 1976. Another problemis that only a very small proportion of the wealthgenerated by the extraction of minerals remains inthe country through taxation. In 2008, the aggregatevalue of mining production was around USD 2 billion;only USD 94.14 million of this (4.64%), flowedinto state coffers. 7Now that the crisis has hit and world prices forminerals have fallen, the mining operations hardesthit are not giants such as the PMSC, but small-scalecooperatives. These enterprises provide most of theemployment, but rely on primitive forms of workorganization, perpetuating the vicious circle of lowsalaries and precarious existence.ConclusionThe moment of truth has come. While the worldenjoyed a cycle of economic expansion, Bolivia letit pass by. Mired in inertia, it failed to develop aninternal capacity for growth. But that opportunitywas just a chimera. Under the reign of capitalismbooms merely reproduce the established order, withits built-in inequalities. And now that the worst globalcrisis in recent history has struck, the Bolivianeconomy is just waking up to what it missed out on.The entrepreneurial class has reacted to the globaldownturn and the end of its run of extraordinaryprofits by taking advantage of worker vulnerability toinsist on reductions in benefits and wages, as well aslayoffs. While they are shifting the weight of the crisisonto workers’ shoulders, they are also making surethat fees, bonuses and other subsidies to businessowners remain untouched, or are increased.The seasonal workers and so-called self-employedwho make up the overwhelming majorityof the labour force can do little except wait for theGovernment to offer another bond issue that mightprovide sufficient funds to somehow help them meettheir basic needs. n5 In 2006 the Gini Index was 0.519 in Argentina, and 0.517 inChile. Only Brazil, with a level of 0.593, exceeded the figureestimated for Bolivia. Based on per capita income, these areall middle-income countries.6 Guachalla, Osvaldo. Bolivia: el Producto Interno Bruto crecióen 6,15%. Mimeo. CEDLA. <strong>2009</strong>7 Ibid.<strong>Social</strong> <strong>Watch</strong>63Bolivia
BRAZILSwimming through a tsunami?Brazil has paid the price of being “integrated” into the global economy. As foreign investors and speculatorspulled out, the securities markets slumped and the currency was sharply devalued. The Government’sresponse has been somewhat timid, with expenditure lower and slower than needed. Brazil still maybe able to ride out the crisis if the Government rises to the challenge, however. Meanwhile, the worldeconomy has a unique opportunity to promote environmentally sustainable growth strategies and newrules for making financial systems work for development and the redistribution of income and wealth.<strong>Social</strong> <strong>Watch</strong> BrazilFernando J. Cardim de Carvalho 1100Basic Capabilities Index (BCI)100BCI = 90 GEI = 68Children reaching765th gradeGender Equity Index (GEI)EmpowermentMany observers saw the relatively low level of contagionby emerging economies of the financial panic,38that began in the United States in 2007, as a sign44that these countries could successfully “decouple”0their destiny from that of developed countries. Brazil00was expected to be among the lucky ones – that is,9497 9899those countries that could avoid being swallowed by100 100 66100100 100100 65100100the shock waves of the financial crisis, sustaining 95Births attended by97some degree of prosperity and reining in unemploymentskilled health personnelSurvival up to 5 Economic activityEducation9,4 by redirecting productive IEG of activities Bolivia to = 66,1 domesticBCI of Brasil = 90,2IEG of Brasil =68,2markets.This view seemed to be vindicated by the vigorousgrowth of the Brazilian economy in the firstthree quarters of 2008. It did not grow at “Chineserates”, of course, but it grew fast enough not onlyto expand employment but 100also to move a growingThe disturbances in the domestic securitiesmarkets and the sharp devaluation of the real, however,were enough to induce local banks to curtailcredit to firms and consumers, despite some timidattempts by the Central Bank to supply them withThe Government’s timid responseThe Brazilian version of the international crisis hasspecific roots. The domestic banking system was notexposed to the kind of speculative investments thatruined the financial systems of the United States, Europeand parts of Asia. As 100 a result of the high interest additional liquidity. The 100credit crunch created immediateshare of the workforce from informal jobs to the betterrates paid on domestic public debt, banks operatingdifficulties in sectors such as consumerpaid and more secure formal sector. Household in Brazil preferred to invest in these securities instead durables, particularly cars, the demand for which is60consumption led overall growth, 52 fed by the increase of trying their luck with the “financial innovations” heavily dependent on the availability of credit. Collectivevacations and other tricks to temporarily reducein real wages (particularly the minimum wage) and created in the United States. Nevertheless, the countrycould not avoid the consequences of becoming production were adopted in the automobile industry,25employment, as well as by the social policies that0increased the purchasing power of the lowest income0“integrated” into the global economy.0but it could not help but transmit the fall in demand togroups.In recent years, 28 the Brazilian economy has re-other industries. The twin threats of idle capacity and98The Federal Government, 51 with President Lula ceived a large amount of foreign capital, both 93 in the unemployment broke 54 the spirits of 62 consumers and100 100 100100 100100 100at its head, mounted a strong public campaign 99 to form of direct investment and as speculative portfolio firms. Facing idle capacity, firms suspended investmentkeep up business and consumer morale so that capital. The São Paulo Stock Exchange soared andplans, deepening the impact of the initial fall in,1demand would remain high, stimulating firms to large amounts of debt securities were placed on the demand. In the end, only the Government was stillIEG of El Salvador = 67,5 BCI of Eritrea = 60,2IEG of Eritrea = 47,1keep producing and expand investment. The Presidentmarket. When the crisis exploded in the United States expanding its spending in the last quarter of 2008.frequently reminded the population that hisGrowth Acceleration Plan (PAC) should act as alever to keep up demand, so that consumers shouldnot fear unemployment and firms would not faceidle capacity.and soon after in Western Europe, many of theseinvestors and speculators took their money out, inmany cases to cover their losses at home. As a result,not only did the Brazilian domestic securities marketsslump but also the national currency, the real, wentIn contrast to the previous year, <strong>2009</strong> began withmuch more subdued expectations. Opinion polls showthat fear of unemployment has made its way back tothe top of most people’s list of concerns, topping urbanviolence and public safety. In particular, and another100100100The strategy seemed to be successful until the through a rapid and sharp process of devaluation. serious cause for concern, it became clear that despitethe aggressive rhetoric adopted by the President83IEG of = 47,3virtuous path was abruptly interrupted in the last The results were not as catastrophic as theyquarter of 2008, when GDP fell 3.6% in comparisonwith the previous quarter. All sectors of the economyhad been in past crises, largely because the turmoildid not induce capital flight by residents. Domesticsince the beginning of 2008, counter-cyclical policieshave been much less vigorous and effective than theyactually contracted, but the manufacturing sec-financial speculators, in fact, had no reason to flee need to be. It is well known that President Lula, when11tor was by far the hardest NO hit, 0 VA falling more than 7%. since the Government was 0 still paying the highest he was inaugurated, acted 0 to reassure financial markets100Investments, which had been growing at healthyrates, fell almost 10%. Consumers and investors100 100could not sustain their previous spending, so theeconomy as a whole contracted significantly.interest rates in the world. Besides, there was nosafe place to go. In 42addition, Brazil holds 88 a relatively100 100large amount of international reserves. Thus, whileforeign investors generally had little choice but toby maintaining a de facto independent CentralBank, ruled mostly by functionaries of private financial100ins titutions. 81100It should surprise no one that 85 monetarypolicy has been appallingly managed during the crisis98100leave, Brazilian investors preferred to stay. As a result,the problems withby monetary authorities that are so far to the right ofBCI oftheKenyabalance=of71payments did any other central bankerIEG ofin theKenyaworld= 59that even private1 Professor of Economics at the Federal University of Rio deJaneiro and Consultant at the Brazilian Institute of <strong>Social</strong> and not become as serious and paralyzing as they had banks seem to be bothered by their inability to offer anyEconomic Analyses (Ibase).been in the recent past.constructive contribution to economic recovery.100100100National reports 64 <strong>Social</strong> <strong>Watch</strong>10010083100
More surprising, perhaps, is the timidity of governmentalspending policies. The President’s callsfor bold action seem to have fallen on deaf ears amonghis own Cabinet ministers. The Government has persistedwith PAC, which was defined for normal timesand is obviously insufficient to fight a recession thatmay end up longer and deeper than it seemed atfirst. However, even PAC has been implemented inan uncertain and timid way. Spending plans are delayedby bureaucratic obstacles, resulting in publicexpenditure that is lower and slower than required.The hesitant behaviour of leading authorities in theGovernment’s economic team betrays a worryinglack of understanding of the potential damage that acrisis such as the one currently unfolding can causeto a developing country such as Brazil.As the Brazilian economy continued to declinein the first quarter of <strong>2009</strong>, however, more forcefulpolicies were implemented, although still far fromwhat is necessary to make up for the contractionaryimpulses coming from abroad. Public banks increasedtheir supply of credit, at lower interest rates.Income transference to the poor, through the FamilyGrants program, sustained consumption in the lowerincome groups. The overall improvement of expectations,after what seemed to be an overreaction in thelast quarter of 2008, led to a still tentative and timidrecovery, which is presently going on. All things considered,all indications point to the same direction: asmall recovery, which in itself, given the internationalcontext, is still a relief.At a moment like this, one of the biggest risksa country can expose itself to is confusing the inabilityto act with financial and fiscal prudence. Afraidof increasing spending, governments can resignthemselves to watching private demand fall and, as aresult, production and employment fall too. In sucha situation, tax revenues go down while social securityspending rises. Fiscal deficits then rise preciselybecause governments were not bold enough to actagainst the contraction of the economy. Paradoxically,the attempt to look prudent puts a country inan even worse fiscal position than would be the caseif its government had acted decisively to support demand,increasing income and tax revenues. Incidentally,this is precisely what President Obama is tryingto accomplish in the United States. It is also whatthe Managing Director of the International MonetaryFund (IMF), Dominique Strauss-Kahn, has defendedrepeatedly since 2007. 2An opportunity to reset the world economyThe current international financial crisis representsthe most serious disruption faced by the globaleconomy since the Great Depression of the 1930s.2 Though the Fund itself has resisted adopting this view, asdemonstrated by the conditionalities imposed on the CentralEuropean countries that were bailed out by the IMF.The threat to food securityFrancisco Menezes 1Brazil’s Zero Hunger programme and the strengthening of a number of public policies have madeit a recognized world leader in the fight against hunger. However, both the food and financial criseshave had significant impacts on the country’s food security.In the second half of 2007, food prices started to increase, reversing the downward trend of theprevious few years and putting the gains at risk. The most vulnerable social groups are the hardesthit by food price increases, as food takes up more of their budgets. Concerned with this, the Governmentincreased by 8% the benefits distributed through the Bolsa Família (a guaranteed minimumincome programme). 2 It also incorporated a larger number of families into the programme and tookmeasures to boost food production through incentives and guarantees to rural producers.In the second half of 2008, food prices levelled off or even fell, following the trend for commoditiesin world markets. However, new threats to food security have resulted from lower incomesamong the poorest people, increased unemployment and a likely reduction in real wages. It isnecessary to follow events very closely in <strong>2009</strong>. The food security budget is certainly a relevantindicator of the direction being followed, both in terms of releasing funds for this year and the 2010budgetary proposal.1 Specialist on food security and co-Director of Ibase.2 See: .Even its duration underlines its dangerous nature:the crisis is advancing through its third year andthere is as yet no light at the end of the tunnel, no signof recovery. It is most likely that, in the short term,the situation will become still more serious, with theincrease in unemployment and social disruption thisphenomenon causes everywhere. Brazil still has achance to reduce these risks if the Government risesto the challenge.Nevertheless, it needs to be noted that crisessuch as this one always transform, more or lessdeeply, the way the economy and society work. Thus,as important as it is to stop the economic declinein the short term, it is also and perhaps even morevital to prepare for the future. The Great Depressionresulted in the expansion of the welfare state andwidespread public intervention in the economy, bothferociously combated by the neo-liberal revolution ofthe late 20th century.Now there is another opportunity to reset thepath of the world economy. All indications point toso-called “green investments” as the next frontierof investment and innovation, promoting environmentallysustainable growth strategies that increaseefficiency in the generation and use of energy. Alsoimportant is to repair the damage caused by thedominance of neo-liberal ideologies that has fosteredfinancial deregulation since the 1980s and ledthe world to the brink of disaster. New regulatoryand supervisory strategies are necessary given theirwidespread failure. However, the new rules shouldfocus on how to make financial systems work topromote development and the distribution of incomeand wealth, not the welfare of financial speculators.These rules are now decided in forums such as theBasle Committee and the Financial Stability Forum.The crisis forced the richest countries, which havetraditionally monopolized these decisions, to openthe door to emerging economies, making the G20,at least for the moment, the centre of attention. Onemay argue that it is better to have a G20 than a G7,but, in reality, no G can really provide the solution.These institutions must become representative, andthis is not achieved by simply co-opting a few newmembers in order to allow existing clubs to maintaintheir exclusive nature. The current crisis creates animportant opportunity to attain the effective democratizationof international institutions. This chanceshould not be missed. 33 In fact, this is precisely the goal of the project “Financialliberalization and global governance: the role of internationalentities”, coordinated by Fernando J.C. Carvalho andJan Kregel, developed by Ibase and sponsored by theFord Foundation. See “Financial Crisis and DemocraticDeficit”. Available from: .<strong>Social</strong> <strong>Watch</strong>65Brazil
ulgaria<strong>Social</strong> unrestBulgaria, the poorest country in the European Union, has been enjoying some economic benefits fromjoining the EU. However, Government assurances that the economy is solid notwithstanding, investmentand exports are dropping and the GDP will soon contract. Government measures to mitigate the impactof the global crisis will probably not be sufficient. NGOs are demanding that both employers and theGovernment adopt emergency measures to rein in inflation, agree to wage settlements that increase realincome and assess the impact of the crisis on the most vulnerable sectors of society.Bulgarian Gender Research Foundation andBulgarian-European Partnership AssociationBasic Capabilities Index (BCI)Gender Equity Index (GEI)100100100BCI = 97 94GEI = 73Children reachingEmpowermentAlthough Bulgaria, the poorest EU country, has yet to5th gradefeel the full impact of the global 44 economic crisis, social53protests have already erupted in response to theEuropean Commission’s decision to cut the country’spre-accession funding due to rampant corrup-000tion. Bulgarians demonstrated in front of the Parliamentbuilding in January <strong>2009</strong> to demand economic989999100 100 65100100 100100 72100reforms, calling on the Government to act 97or step Births attended by96100down. In the same month, farmers demonstrated skilled health personnelSurvival up to 5 Economic activityEducationthroughout the country IEG and of blocked Brasil = the 68,2 only bridgeBCI of Bulgaria = 97,3IEG of Bulgaria = 73,4to Romania, demanding that the Government set a in 2004 to 67% in 2007. By 2008, inflows made up subsidiaries are unlikely to continue receiving theminimum price for milk and stop imports of cheap about 30% of GDP. 1large capital transfers from their parent banks thatforeign dairy products. Police officers, banned by The surge in outside capital generated strong have funded credit growth. Without this financing,law from striking, have been holding “silent” protests GDP growth, but sharply widened external and internalenterprises will reduce their production and servicessince December to obtain a 50% pay hike and betterimbalances. GDP grew by more than 6% an-or shut down entirely, causing an increase in un-working conditions. 100nually, one of the fastest 100 rates 98 in Europe. 2 Growth employment. Metallurgy 100 and construction have alreadyDespite this social unrest, as well as a global remained a strong 6.25% in 2008. However, theshrunk. In January <strong>2009</strong> industrial productionfinancial crisis that has inspired a re-examination of growth of domestic demand outpaced GDP growth, plunged 19% from the previous 73 month, according tocurrent economic policies all over the world, widespreadwidening the current account deficit from 5% of GDP the official Statistical Institute.questioning of the neo-liberal model and calls in 2003 to over 24% in 2008. This gap was accentu-At the same time, shrinking foreign demand25for stricter government regulation, the neo-liberal ated by the concentration of growth in construction, and declining commodity prices might lead to a drop0model remains fashionable in Bulgaria. Prime Minister0real estate, and financial services according to the0in Bulgarian exports and a decline in tourism. TheSergey Stanishev acknowledges that Bulgaria is National Statistics Institute.latest IMF projections show a contraction of more93 experiencing its first 54economic crisis as a capitalist As1009662unemployment dropped and the labour markettightened, wage growth accelerated to 24% in Europe’s growth and exports. In Bulgaria, 94 exportsthan 0.5% in G-7 GDP, which would squeeze Eastern100 100 100100 100100 68100country and is not immune to the difficulties facing100its economic partners. However, he continues to insistthat the country’s problems are less severe than er with rising food and oil prices, accelerated inflation prices.June 2008. The overheating of the economy, togeth-have been hard hit by a decline in orders and metalBCI of Alemania = 99,3IEG of Eritrea = 47,1IEG of Germany = 78,2those of other European Union members.to a peak of 14.7% in June 2008, with food pricessoaring more than 25%. Escalating prices of natural Economic outlookBoom and crunchgas, electricity, central heating, road and railroad GDP growth in <strong>2009</strong> is likely to slow to about 2%,A currency board was introduced in 1997 after a transport, water, and so on will push the cost of living or even 0%, according to one recent forecast. 4 Withsevere crisis in the national bank system led to hyperinflation,up around 17% on an annual basis, while inflation for slower growth, the current account deficit is pro-bank closures, acute political crisis and the full year will probably surpass 12%. The inflation jected to shrink to 15% of GDP, while a sharp drop100100100mass impoverishment. Since then every government,forecast for <strong>2009</strong> is around 4%. 92 3 However, Centre for in global commodity prices should temper inflation.whatever its political orientation, has favoured Economic Development experts are warning that the However, there is significant risk that growth willretaining it in order to avoid another massive crisis. real danger ahead is deflation, not inflation. slow even more. Fortunately, the country’s publicThe currency board’s strategy has been to stabilize Global financial turmoil and risk aversion by finances are in good shape, with one of the highestthe macroeconomic environment while barring any investors are likely to reduce capital flows to Central fiscal surpluses in Europe. Nevertheless, the dramaticshift in the balance 0 of 6,2payments shows the11increases in pay, even though 0 Bulgaria has the lowest and Eastern Europe, including 0 Bulgaria. Local bankwages in the EU.severe shock the country is experiencing.88Since 2004, when agreement was reached on 1 IMF. Bulgaria. 98 Article IV Consultation–Staff <strong>Report</strong>. 97Staff36,2In the five months since October, net capital inflows100totaled only EUR 800 million, down from EUR100 100 Statement; Public Information Notice on the Executive Boardaccession to the 81100100 100100 100100EU, Bulgaria has experienced 85 aDiscussion; and Statement by the Executive Director for98,4surge in capital inflows and a credit boom. The influx Bulgaria February <strong>2009</strong>. p. 25.6.1 billion in the previous five months and EUR 5.6of capital was stimulated by expectations of rapid 2 World Bank. EU 10 Regular Economic <strong>Report</strong>, February billion in the same period a year ago. Exports in theconvergence with theIEGEU, andof Kenyafurther=boosted59by theBCI of Líbano = 95,6IEG of Lebanon = 46,9<strong>2009</strong>.presence of the currency board and a strong fiscal 3 Confederation of Independent Trade Unions (<strong>2009</strong>). “Living 4 IMF, Bulgaria. Staff Visit; Concluding Statement of IMFpolicy. The ratio of credit to GDP exploded from 36% standard”. Available from: .Mission, April <strong>2009</strong>. See: .National reports 66 <strong>Social</strong> <strong>Watch</strong>10010088100
first two months of <strong>2009</strong> were 27% lower than in thefirst two months of 2008, while the drop in importswas even sharper (32%), suggesting that domesticdemand has contracted rapidly. As a result, the currentaccount deficit declined from an annualized rate of25.8% of GDP in the first two months of 2008 to 11.6%in the first two months of <strong>2009</strong>. 5 Indeed, leading indicatorsof economic activity suggest that the economymay already be contracting. The International MonetaryFund (IMF) recently predicted that the Bulgarianeconomy will shrink by around 3.5% in <strong>2009</strong> and 1% in2010, down 2% from its April <strong>2009</strong> projection. 6An international gas crisis in January <strong>2009</strong>practically erased whatever positive momentum remainedfrom 2008. When the dispute between Russiaand Ukraine cut gas supplies to Europe, Bulgariawas among the most unprepared countries, with noreal alternative sources of gas. The cost in lost productionis estimated at more than EUR 250 million(about USD 333 million). The Government officiallyrequested compensation from Russia, but even ifsome compensation is provided, the long-term effectsof the halt in production could pose risks to theentire economy.Government priorities in fiscal policyIn this difficult environment, maintaining confidencein both the currency board and the financial systemis crucial. The two are mutually dependent: a strongand resilient financial system is needed to sustainthe currency board; and confidence in it bolstersthe financial system. The IMF believes that the currencyboard can enable the country to cope with theturbulence, since Bulgaria has adequate fiscal andcurrency reserves. The IMF didn’t even consideralternative measures to compensate for negativebalance of payments, such as currency devaluationor adoption of the Euro.RecommendationsMaintain surplusesFiscal policy should aim at maintaining large surpluses,not only because they have been a pillar forthe currency board, but also to preserve balances inthe fiscal reserve account – an important cushion inthe event that problems emerge. For 2008, the Governmenttargeted a surplus equal to 3.5% of GDP.Preserving the surpluses in a time of slow revenueincreases will require a significant slowdown in thegrowth of expenditures. However, neither revenuesnor expenditures projected in the current budgetreflect the expected decline in GDP growth.Make implementation of the 10% budget ruletransparentThe Government plans to contain expenditure growthby restricting spending to 90% of what was originallybudgeted for <strong>2009</strong>, rather than by revising the5 Government of Bulgaria. “Plan for economic stability andprogress in <strong>2009</strong>” [only in Bulgarian]. Available from: .6 International Monetary Fund. World Economic Outlook, April<strong>2009</strong>.budget. The remaining 10% is to be released basedon budget developments. 7 This solution could bepragmatic, but it is far from transparent. Indeed, foreignobservers, probably not aware of the 10% rule,perceive a budget based on unrealistic revenues.It is important to ensure that mechanisms to implementthe 10% rule are clearly understood. Someplans and programmes may need to be postponed.Ministries should signal their spending prioritiesearly on and make sure they are clearly communicatedto the public. Strict budget execution is also essential.Implementation of the 10% rule would onlyslow spending growth from a budgeted 17% to 11%in real terms. If GDP growth slows to the projected2%, the fiscal surplus is likely to fall to 2% of GDP. 8Accelerate reformsFiscal and structural reforms should be accelerated,notwithstanding the election cycle. Problems regardingthe disbursement of EU funds underscore theneed to further upgrade control systems. The Governmenthas introduced several changes to socialsecurity contributions and social policy-– e.g., a decreasein social insurance contribution rates paid byemployers and an increase in maternity benefits. Inmaking further reforms, maintaining fiscal neutralityis essential to ensuring the long-term sustainabilityof the public finances. 9 To accelerate convergence toEU standards, the State has to complete the reformof education, make progress in health carereform and improve the efficiency of the public andprivate sectors.Increase wages as productivity increasesThe Government is aware that the high growth ratein wages during 2008 cannot be sustained. Althoughwages are still low compared to those in WesternEurope, further increases must be accompaniedby improvements in productivity. According to theIMF, the current pace of wage growth is far too rapidfor Bulgaria’s relatively small productivity growth.Moreover, as the experience of other countrieshas demonstrated during the downturn, the fasterwages grow, the more unemployment is likely toincrease. 10Moderation in unit labour cost increases is essentialgiven that resources will need to be shifted toexport-oriented sectors. As domestic-market sectorgrowth slows, GDP growth can be maintained onlyif exports take up the slack, but both sectors mustremain competitive. Whether they are is a matter of7 Ministry of Finance. <strong>Report</strong> to the Draft Law on State Budgetfor <strong>2009</strong> [only in Bulgarian]. Available from: .8 Government of Bulgari, op. cit., p.1.9 Confederation of Independent Trade Union, op. cit.10 Bulgarian workers and employees continue to receive thelowest remuneration in Europe, while the level of pricesremains comparatively high – with an average monthly salaryof EUR 255 (USD 339). This means that with 20% of theaverage European salary one must cope with price levels thatcome up to approximately 46% the average European pricelevels. – This is one of the main claims of the Confederationof Independent Trade Unions (KNSB) for a just and decentpay. May 2008.dispute. Although the Government expresses confidencein corporate profitability, NGOs are less certaindue to the paucity of data available.The financial sectorStrong policies will also help the financial sector,which is currently well capitalized and profitable. Inthe period ahead profitability is likely to decline, asforeign funding is becoming scarce, strong competitionfor domestic deposits has raised the cost offunds, and lending growth is expected to slow. At thesame time, the reliance of banks on foreign fundingfor new lending makes them vulnerable to the currentdisruption in international financial markets. Nevertheless,banks are well positioned for a slowdown,and have strong capital and liquidity cushions.Unemployment will probably not reach doubledigits. Those most likely to be jobless are youngpeople who lack an employment history, low-skilledworkers, elderly workers, people with disabilities andwomen. It should be noted that the number of unregisteredunemployed is at least equal to the numberregistered, and may be higher. Migrant workers arealso returning, which ends the remittances they weresending home to their families. Some projectionsestimate that some 20% of short-term emigrantsmay come back—mainly from Greece, Spain andseveral other EU countries where unemployment isrising sharply.The civil society perspectiveNGOs and trade unions do not agree that reducingsocial expenditures is acceptable in times ofcrisis. They have been meager expenses since theestablishment of the currency board. Any furtherreduction could shatter the country’s social peace.Although NGO experts support the increase in theshare of investment going to transport infrastructure,they are sharply critical of the Government’sfailure to use EU structural funds allocated to Bulgariaduring its first two years of full membership.Only 0.6% of the EUR 2.2 billion had been spent bythe end of 2008. Lack of financial capacity, excessivebureaucracy and scarcely transparent procedureshave all prevented the funds from reaching their intendedbeneficiaries.NGOs insist that both employers and the Governmenttake emergency measures to rein in inflation,negotiate compensation for decreases in realincome, guarantee wages, assess the impact of thecrisis on the most vulnerable groups in society andtake measures to protect basic social and economicrights. n<strong>Social</strong> <strong>Watch</strong>67Bulgaria
urma100Many crises, no response0NO VA0Under the ruling Military Junta, the Burmese people live with perpetual crises, whether related to the9910055economy, politics, food or the environment. These have combined 100 to create a situation of extreme 10097poverty, lack of basic rights and increasingly deteriorating social conditions. People’s organizations,IEG of Iraqwhich= 0may constitute a part of civilBCIsocietyof Italia =in99,5the future, are underdeveloped,IEGbannedof Italy =or64,5persecutedby the Government. Rights are reserved only for the military elite and their cronies, while the mostvulnerable citizens are disproportionately affected by crises and disaster.95100 100 100100 1001000100100042100Burma Lawyers’ CouncilBasic Capabilities Index (BCI)indirectly affected workers by depressing investment100100in domestic industries. 100 The market for consumer orBCI = 73As a result of 47 years of misguided policies, oppressionand corruption by the ruling State Peaceits heart, the development of a free market economyChildren reaching small business credit is functionally non-existent. At73 5th gradeand Development Council (SPDC), the current globalin the country is a myth, and the right to developcrises that are affecting financial 34 markets, the availabilityindustries is reserved for the ruling Military Junta,of basic goods and the environment have hittheir families and their cronies. 6000the Burmese faster and harder than other peoplesAdditionally, the NO SPDC’s VA 0,0 misuse of the nation’saround the world.funds for increased military spending continues8690Late in 2006, with the annual per capita incometo have serious consequences for the poorest and100 100 6857100100 100100 100at around USD 92 300, the cost of basic food commoditiesBirths attended bymost desperate . While the Government was unablerose in Burma between 30 and 40% – a skilled health personnelSurvival up to 5 to support its citizens in the aftermath of the cyclone,1 tremendous threat for IEG people of Mozambique who spend = 70% 64,4ofBCI of Myanmar,without significantIEGforeignof Burmaaid, it spends= 0nearly halftheir income on food. 1 In August 2007, the Governmentthat the Government Birmania was o Burma the donor. = 73.2Amnesty In-of its budget on the military.reduced fuel subsidies, leading to gas price internationalexpressed concern that the Government The global financial crisis has worsened thecreases. 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 industries,to five times, widespread peaceful protests led by its forced labour programmes among a populationfor instance, have all suffered. 7 Burmese livingBuddhist monks and the 100 vestiges of Burmese civil lacking basic necessities. 4abroad are also financially 100 distressed and thus unableto send as much money back to their familiesas they did before. Developed countries’ demandsociety broke out across the country. In response,the Government brutally cracked down, firing intounarmed crowds and ransacking monasteries atnight. Nearly 2,000 civilians were taken as politicalprisoners. 2 Participants were sentenced to long100 98In the same month, the Government held a discreditedreferendum on the new Constitution, takingadvantage of the displacement of cyclone victim.Many of the victims could not vote either in the origi-for goods from factories where Burmese migrants42work has decreased, both lowering the availabilitynally scheduled 10 May balloting or in the additional of jobs for migrant workers and increasing abuse as0prison terms. NO VA 0,000voting held on 24 May, on the pretext of accommodatingdisplaced voters. <strong>Report</strong>s also note that Gov-employers attempt to maximize profit margins.0,08Then, in May 2008, the Government failed to99100 99provide warning about the impending landfall of ernment officials exchanged foreign aid packages The environmental crisis100100 100 100100Cyclone Nargis, which struck the Irrawaddy Delta for votes and labour. 5 100100 67100100The current global financial, There is increasing environmental degradation 97 aswith devastating force. An estimated 140,000 people environmental and food crises have intensified the the SPDC is putting on sale the rights to domesticresources, both mineraldied in the immediateIEGaftermath,of Serbiawhile= 0the disaster hardships that theBCIBurmeseof Eslovaquiawere already= 99suffering.IEG of Slovakiaand biological.= 68,8Burma’sdirectly 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 devastatedregions and closed aid camps for displaced citizens,has shown no willingness to change its policies orsystem of governance.exploit the country’s natural resources without attentionto the environmental and cultural consequences.forcing them to return to flood-stricken areas withoutIn Kachin state, Chinese loggers are currently extractingwood without considering either the short-food, water, shelter or medical care. 3 The SPDC also The financial crisisrepackaged foreign aid deliveries to make it seem Burma has long suffered internal domestic financialcrises. Inflation in basic commodity prices, in-workers and without providing any stimulus to theor long-term impact, without employing Burmese100100100* There are no available data on GEI.1 Head, J. “The Hardship that Sparked 44Burma’s Unrest”. BBCcluding food and fuel, led to widespread protests66because individuals could no longer afford thesegoods and because the price increases translatedNews, 2 October 2007. Available from: .SFGate, 13 November 2008. Available from: . And also: Assistance4 Amnesty International. “Myanmar Briefing: Human 907 See, for example, Mizzima, “Burmese 49 Fishery Export Hit100 Association 100 for 81Political Prisoners. Crackdown in Burma 100 Right 100 Concerns a Month after Cyclone Nargis”. 2 June 100Hard”, 10027 November 2008; “China Slowdown Hits Burmese 10010097Continues, 31 January 2008. Available from: .Doldrums”, 14 February <strong>2009</strong>; “Rangoon Factories Begin8Cutting Jobs”, 5 February <strong>2009</strong>. Available from: .IEG of Yemen = 30Bfrom: .Stations”. The Irrawaddy, 10 May 2008. Available from:.8 Interviews with Mae Sot, Thailand area factory workers byBurma Lawyers’ Council staff, June 2008.100Informes nacionales 68 <strong>Social</strong> <strong>Watch</strong>100 100100
local economy. 9 Similarly, the SPDC has long soldrights to Burma’s rich mineral reserves, includinggold and gems, without any regulatory oversight ofthe effects on the environment.Over the past two decades, Burma has sufferedfrom one of the highest rates of deforestation, losingclose to 20% of its forests. 10 This has occurreddespite warnings of widespread environmental damagewhen development ignores the interdependenceof ecosystems. 11 A number of large dams that arecurrently being planned and constructed on Burma’smajor rivers by Chinese, Indian and Thai corporationsand governments threaten the country’s biodiversity.12 The financial benefit goes to the militaryleaders, while the harm is suffered by the people.The food crisisThe global food crisis has directly affected Burma,where for decades people have been suffering alocalized, domestic alimentary crisis, including adramatic reduction in protein. 13 While Burma is technicallya “food surplus” country because it producesmore food than it consumes, inadequate distributionschemes have left the population severely malnourished,with 32% of children underweight. 14 Muchof the population is at high risk of food shortageswhen natural disasters and environmental incidentsare poorly managed, illustrated by the aftermath ofCyclone Nargis. In Chin state, a recent plague of ratsplaced 100,000 people at risk of starvation, yet theGovernment provided no aid. 15Crisis in educationBurmese funding for education, both as a percentageof GDP and in absolute numbers, ranks towards9 Kachin News Group. “China Resumes ImportingTimber from Northern Burma”. Kachin News, 17December 2008. Available from: .10 Mongobay.com (nd). “Myanmar: Environmental Profile”.Available from: .11 Curtis, G. “Christian Aid Warns of Burma EnvironmentalDamage”. Christian Today, 15 May 2007. Available from:.12 Pichai, U. “Environmentalists Demand Halt to US $ 35 BillionBurma Dams”. Mizzima, 16 March <strong>2009</strong>. Available at .13 Suu Kyi, A.S. “Breakfast Blues”. In Letters from Burma,27-30. 1998.14 WFP (nd). “Myanmar”. World Food Programme (WFP).Available from: .15 Carroll, B. “Rampaging Rats Bring Starvation to Burma”.BBC News, 26 September 2008. Available from: .the very bottom globally at a mere 1.2% of GDP. 16Nationally, only about one-third of students whoenter primary or secondary schools finish the fullcurriculum. 17Political crisisOverarching all the other factors is the broken politicalsystem. The SPDC and its predecessor dictatorshave refused to allow a true transition to democracy,despite the steep decline of the country since the militaryseized power. The regime’s “Seven-Step Roadto Democracy” is widely viewed as a seven-step roadto permanent military entrenchment. Among otherpoints, the new Constitution reinforces the military’sunlimited control over government operations, failsto provide for an independent judiciary and lacksmeaningful human rights protections. 18 A numberof prominent political groups, such as the NationalLeague for Democracy (NLD), the New Mon StateParty, the Mon National Democratic Front, and theKachin Independence Organization, refused to participatein the constitutional referendum. Key oppositiongroups, led by the NLD, plan to boycott theupcoming 2010 election.In addition, among military ranks a potential crisisis brewing between the SPDC and the United Wastate Army (USWA), which controls part of the ShanState. Although the groups agreed on a ceasefire in1989, the USWA rejected the order to disarm andbecome a government-controlled militia. The USWAhas been printing official documents as “Governmentof Wa State, Special Autonomous Region, Unionof Myanmar”, and have stated that it will neitherdisarm nor participate in the 2010 elections unlessthis status is granted. 19The SPDC’s continued arrests and detention ofanyone who dares to criticize Government policy is aclear indicator of its unwillingness to allow meaningfulchange in the political sphere. In the past year,the house arrest of Daw Aung San Suu Kyi, NobelLaureate and democratically elected leader, was extended.The popular Burmese comedian and socialcommentator Zaganar was sentenced to 45 years inprison for his criticism of the Government’s response16 CIA (<strong>2009</strong>). World Factbook, Burma. Available from: .17 “Child Education in Burma”. Asian Tribune, 3 September2003. Available from: .18 See: Htoo, A.U. “Analysis of the SPDC’s Constitution fromthe Perspective of Human Rights”. Legal Issues on BurmaJournal, No. 30. 2008; and two publications by the BurmaLawyers’ Council.“2010 Elections: No Hope for HumanRights”. Legal Issues on Burma Journal, No. 30.2008, and“Statement on the Failure of the 2008 SPDC Constitution toProtect Judicial Independence”. 4 December 2008.19 Weng. L. “UWSP Proposes Autonomous Wa Region”. TheIrrawaddy, 5 January <strong>2009</strong>. Available from: .to Cyclone Nargis. Currently, there are an estimated2,100 political prisoners. 20Civil society under suspicionIn times of crisis, civil society organizations are crucialin providing relief and an alternative voice to helpsolve a nation’s most pressing problems. In Burma,however, such organizations are underdeveloped,banned or persecuted by the SPDC. The prominentgroups that are allowed to exist merely help to propup the military. For example, the Auxiliary Fire Squadprimarily serves as an anti-riot force. Likewise,government-sanctioned women’s groups promotegovernment policy rather than lobby to change it.While some community-based organizations do exist,they must receive Government permission toundertake any activity. 21 Furthermore, members oforganizations found to have done something “unlawful”,which often merely means opposing theGovernment, are often punished. 22ConclusionUnder the ruling Junta, the Burmese people live withperpetual crises, whether economic, political or environmental.In recent years, these crises have frequentlyserved to fuel one another and to perpetuatea harmful status quo. In response, the Governmentincreases its crackdowns and arrests and refusesto provide any form of safety net to its citizens. Ithas created a country with rights reserved only forits military elite and their cronies, while the mostvulnerable citizens are disproportionately affectedby crises and disaster. n20 France 24. “Online Mobilization for Political Prisoners inBurma”. Available from: .21 Ni Aung, M.A. “Creating Space in Myanmar/Burma”. In Zarni(ed.) Active Citizens Under Political Wraps: Experiences fromMyanmar/Burma and Vietnam. Chaing Mai: Heinrich BollFoundation. 2006.22 Lorch, J. “Civil Society Actors and Their Room for Maneuverin Myanmar/Burma”. In Zarni (ed.) Active Citizens UnderPolitical Wraps: Experiences from Myanmar/Burma andVietnam. Chaing Mai: Heinrich Boll Foundation. 2006.<strong>Social</strong> <strong>Watch</strong>69Burma
cambodiaEconomic growth must be re-directedAfter two decades of war, Cambodia is rebuilding its State institutions. Economic growth has been high,but the country needs significant investment in human resources, especially in areas such as educationand health. The global economic crisis is having a devastating impact, jeopardizing the realization ofsome national development programmes. Some NGOs are defending the rights of indigenous peoples,which have been threatened by government land concessions for plantations and developmentinfrastructure. Other NGOs are demanding greater budget transparency.SILAKAGender and Development of CambodiaCOMFREL100NICFELNGO Commitee on CEDAWThe NGO Forum53CEDACThida C. Khus0Basic Capabilities Index (BCI)100BCI = 66 GEI = 62Children reaching5th grade620Gender Equity Index (GEI)100023EmpowermentFrom 1997 to 2007, Cambodia enjoyed an average9944 92100economic growth of 9.5% annually, including a100 100 72100100 100100 100100double-digit increase during the years 2005-2007. 9684 78Births attended byAlthough the gross domestic product (GDP) continuedskilled health personnelSurvival up to 5 Economic activityEducation,3to climb quickly IEG in of the Bulgaria first half = of 73,4 2008, inBCI of Camboya = 66IEG of Cambodia = 61,6the final months of the year the economy was crippled40%-50% of capacity, and more than 80 factories (later reduced to 12% as the global financial crisisby the global meltdown. The collapse of the have shut down entirely. The Government has began to bite) and introduced monetary measureslocal real estate market, along with a slowdown given garment manufacturers generous incentivesto deter banks from extending credit for propertyin garment exports and foreign tourism, draggedto keep them in business, but has not pro-development. Since 2008, real estate in Phnom2008 growth down to 5.5%. For <strong>2009</strong>, the Governmentvided significant support to the garment workers. Penh has been plunging, and is already downhas predicted a 100 6% increase in GDP but Unable to survive on a 100 minimum wage too meagre 30%-40% from its 2008 100 peak, causingheavyinternational institutions are much gloomier aboutthe country’s prospects. The 73 Asian DevelopmentBank expects 2.5% growth; the InternationalMonetary Fund a meagre 0.5%; and the WorldBank predicts a contraction of -1%.to cover living expenses, many 89 of them have gonehome to farm.The cost of food and oil skyrocketed in thefirst half of 2008, accelerating a rise in the consumerprice index (CPI) from 13.7% in Januarylosses among investors. 5Compared to financial institutions in otherparts of the region and in the West, Cambodianbanks appear to be functioning quite well. Theirinterest rates range between 113% and 7%, dependingon the amount and duration of the investment.000Cambodia’s economy relies heavily on tourism,2008 to 25.7% in May. However prices of basicgarment exports, construction and agricul-commodities eased during the second half of the However, some economists have expressed con-9688ture, all industries extremely vulnerable to the globalmeltdown. Services industries, mainly 94 tour-13.5% in December.close to default), 8379year, and CPI inflation 50 slowly followed, hovering at cerns about non-performing loans (those in or100 100 68100100 100100 100100which have reached 3.4% inism, have been the main source of income, and The sudden increase in the global price of Cambodia, compared to 5.7% in the Asian Pacificand 1.8% in IEG developed of Ghana countries = 57,66 , as wellthe recent decline IEG in foreign of Germany visitors = – 78,2 down 2% in rice provided aBCIhandsomeof Ghanaprofit= 75,5for rice surplusJanuary <strong>2009</strong> from a year earlier – is expected to traders, but cut deeply into the food security of as about the inadequacy of the infrastructure forworsen over the next two to three years. 1 31% of the population 3 – nearly 4 million people extending credit to agribusiness.Cambodia also relies on remittances from who do not produce enough rice to meet theirexporting labour abroad, primarily to Thailand, own needs. 4 People living around Tonle Sap, the The challenge to human developmentMalaysia and South Korea. As of the first quarter country’s major lake, are especially vulnerable, Notwithstanding recent socio-economic progress,of <strong>2009</strong>, Thailand and Malaysia had cancelled all since they had already gone into debt to make Cambodia remains one of the poorest countries in100100100imports of labour, and Korea had cut the quota ends meet. Last year they 92 had to sell productive Asia. In the decade ending in 2007, the nationalfor Cambodian workers for <strong>2009</strong> to 1,000, onequarterof the 2008 rate. 2 Employment has alsoassets and pull their children out of school to goto work. The Government has responded with apoverty rate edged down from 34.8% to 30.1%,but given the high and rising levels of inequalityplunged in the garment industry. By March <strong>2009</strong>, USD 40 million food emergency programme for and vulnerability, it is likely the food and energy3051,000 of 400,000 total jobs had disappeared. vulnerable populations in these provinces. crises of 2008 have set back efforts to alleviateMore than 90% of the workers 0 6,2 laid off were womenReal estate prices went 0 through the roof from poverty.097from rural communities, who typically send36,2much of their income home to support siblings2005 to 2008, and the Government responded byjacking 100 up the bank security rate, from 8% 99to 16%Due to the weakness of public health services,even families 47 of modest means can fall into 100100 100 100100 100100 100100in school. Garment factories are operating at onlypoverty when a member gets sick. The Governmenthas introduced programmes to provide free98,4993 Chan Sophal. “Impact of High Food Prices in Cambodia.”1 Tith Chinda, Director General of the Ministry of Tourism, 12 Annual Development Review 2008-09.IEG of Lebanon = 46,9 BCI of Malasia = 96,9IEG of Malaysia = 58,3March <strong>2009</strong>.4 In the nine villages studied by CDRI in 2001 and 2004, up5 Cambodia Reality. Seng Bunna, Bunna Reality, 20 March2 Ministry of Labor and Vocational Training, via Free Asiato 65% of households did not cultivate enough rice for their<strong>2009</strong>.Radio, 7 April <strong>2009</strong>.own consumption.6 Ibid.National reports 70 <strong>Social</strong> <strong>Watch</strong>100 10010093
medical care to poor families, but these tend tobe inadequate and unreliable. Policy makers havebeen considering several safety net options forthe general population, but none have been implemented.Other development indicators are distressing,especially the maternal mortality rate. Accordingto the Cambodia Demographic and Health Survey,it has remained stagnant at a high level: 432 per10,000 live births in 2000 to 472 per 10,000 in2005. Five women per day die giving birth, thesame number as 9 years ago. Dr. Te Kuy Seang,Secretary of State of the Ministry of Health, declaredthat his office does not have the funds toimplement its plan to increase the number of midwivesby 300, from the current 3,000, and buildfacilities for expectant mothers in rural communities.Girls still experience discrimination withinboth their families and the public educational system.In 2007, girls made up 47% of the enrolmentin primary school, 46% in lower secondary school,40% in upper secondary school and only 35% inhigher education. To address this inequality, theGovernment and international organizations havebeen introducing programmes to provide schoolmeals, free boarding for girls, scholarship awardsand other incentives for girls, however these programmeshave yet to reach the entire population.At projected growth rates for <strong>2009</strong>, the likelihoodof raising sufficient revenues to finance theplanned social programmes appears limited. Fora variety of reasons, ranging from natural disastersto inadequate agricultural policies, both thedistribution of food and access to it are becomingproblems for a significant and growing portion ofthe population. The Government is providing foodto the World Food Programme, which is currentlyassisting more than 1 million Cambodians. It isalso altering the current budget to increase theallocation to the Rural Development Bank for farmcredits. So far, however, it has provided little informationon how much money will be provided andhow it will ensure the benefit of those in need.Indigenous communities and NGO workGovernment land concessions for rubber plantationshave usurped the ancestral land of indigenouscommunities in the provinces of StungTreng, Rattanakiri and Mondulkiri. Despite a communalland law passed in 2001, none of thesecommunities were able to register their communalland. The seizure violates these communities’right to their only source of survival and identity.Plans for hydropower plants are also threateningthe livelihood of many indigenous communitiesacross the country, which were not consulted onmost of these plans. Local NGOs and internationalorganizations are working with these communitiesto help them learn about their rights and landownership legislation.While some civil society organizations areproviding information to protect vulnerablepopulations, others are monitoring land grabbingand dislocations of rural communities thatviolate human rights. Some NGOs are monitoringthe national budget, identifying discrepanciesbetween policy priorities and budget allocationsand demanding more transparency. Others areconcentrating on building the capacity of civil societyorganizations to promote citizen engagementin local and national governance. A group of civilsociety organizations has demanded that oil, gasand mining be managed more effectively to ensurethe transparency of revenues and sustainability forfuture generations.Cambodia is still rebuilding its economic andpolitical institutions, which have been shatteredby two decades of war. The country achieved higheconomic growth but failed to diversify economicinvestments or make urgently needed investmentsin education and health services. Despite someslow progress in reducing poverty, a lack of transparencyin decision-making and mismanagementof state affairs continue to be issues of concern. nCHART 1. Share of Labour and Economic ContributionTotal Agriculture Industries Services% in the total economy 100% 31.9% 28.0% 40.0%% total labor 100% 60.3% 12.5% 27.2%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 <strong>2009</strong>CHART 2. Increase in basic food prices (USD 1 = KHR 4,100)Food Per kilo March 07 in KHR March 08 in KHR Cost Increase %Rice No. 2 1,770 2,933 66%Pork Quality 2 9,000 15,750 75%Chicken 12,000 21,000 75%Mud fish 9,800 12,667 29%Source: National Institute of Statistics, Consumer Price Index Bulletin, March 2007,and Koh Santepheap Newspaper, 4 March, 2008.<strong>Social</strong> <strong>Watch</strong>71Cambodia
canadaEconomic stimulus <strong>2009</strong>: opportunity lostBudget <strong>2009</strong> was an opportunity for the Government to lessen the blow of the recession by focusing on themost vulnerable citizens, but political jockeying led to a short-sighted economic stimulus plan that does notmeet the needs of the thousands of citizens feeling the brunt of the crisis. Jobs being created by Governmentinvestments are in male-dominated industries, while women are over-represented in part-time and precariouswork and are often the first to be laid off. Civil society organizations are concerned that, as Canada focuses onreversing the economic downturn, environmental and sustainability standards will drop.Canadian Feminist Alliance for International ActionNancy Baroni & Nancy PeckfordNorth-South Institute 100John FosterCanadian Centre for Policy AlternativesArmine YalnizyanBasic Capabilities Index (BCI)100 99BCI = 99* GEI = 75Children reaching5th gradeGender Equity Index (GEI)10054Empowerment23During the October 2008 General Election, which coincidedwith a growing awareness that Canada could000face a possible recession, Prime Minister Stephen92 100 99Harper assured voters that the economy would be100 100 100100 100100 10084 7874immune to the global difficulties, that their savings, Births attended by96pensions and assets would be secure and that his skilled health personnelSurvival up to 5 Economic activityEducation6 Government would never IEG go of Cambodia into deficit. = He 61,6 assertedBCI of Canadá = 99,3IEG of Canada = 74,5this on the basis that Canada’s banking system is well coalition government. Many civil society organizations• Does it help the hundreds of thousands of newlyregulated and stable, and largely ignored the fact thatwere 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% ofStates is, by far, the country’s largest trade partner. one that would represent the majority of Canadians.insured earnings and extending the period forWhat the Prime Minister did not say was that theHowever, as the proposed coalition government receiving those benefits to 50 weeks?unemployment rates would 100 likely skyrocket, or that low-gathered momentum and 100 threatened to take power • Does it support those 100 who need it most, such asincome Canadians would feel the brunt of a weakenedeconomy, especially since there had been so little investmentin social programmes in the previous decade. Healso said very little about the choices his Government – ifelected – would make to head off the worst effects of a110possible recession. Despite the fact that many Canadianswere worried about this “head in the sand” approach,the governing Conservative Party was re-elected with10037.6% of the vote 8379 100(on the basis of less than 60% of theeligible vote, the lowest turnout in history). 1When the newly elected Government set out itspriorities, Canadians were expecting a solid economicstimulus package in order to protect jobs, invest in astrengthened social safety net for low-income citizensand make strategic investments to lessen the blowof the recession. Instead, it delivered a highly partisanand ideological agenda that would, among other100measures, eliminate financial support for political partiesand no longer uphold pay equity in the public serviceas a human right, leaving it to unions to negotiatethis through the collective bargaining process.Parliamentary response0In an unprecedented step, the three elected oppositionparties then negotiated 47 an agreement to form athrough a vote of no confidence in Parliament, thePrime Minister requested and 68was granted prorogation(essentially an extended parliamentary break)from the Governor General, Canada’s head of State.The Government committed to reconvening Parlia-• Does it implement an ambitious 24 social, physical0and green public infrastructure 0 programme,ment six weeks later with a full budget outlining ancreating jobs in both male- and female-dominatedprofessions? 37economic stimulus plan. During the six weeks of prorogation,the leader of the official opposition 968841party100 100 100resigned, a new leader was named, and the coalitionalternative was taken off the table.•100 100Does it support key value-added sectors 94 withrestructuring criteria to ensure they becomeIEG of Ghana = 57,6 BCI of Guatemala = 68,3green and sustainable?IEG of Guatemala = 51,3Budget <strong>2009</strong> and civil society• Does it emphasize spending over tax cuts?During the prorogation of Parliament, individualsand organizations were invited to make submissionsBudget <strong>2009</strong> failed all five tests.to the Department of Finance consultationsregarding what should be included in the budget.During this period, the Canadian Centre for PolicySupport for unemployed workersIn terms of employment insurance, Budget <strong>2009</strong> an-9930100 99Alternatives (CCPA) released their annual AlternativeFederal Budget (AFB), a participatory budget createdby civil society with a heavy focus on creatingand sustaining green jobs, investing in social andphysical infrastructure, strengthening employmentinsurance and supporting 0 low-income Canadians.Participants proposed five tests for the efficacy ofthe federal 100 budget: 299100 100 100100 10099unemployed, low-income Canadians and hardhit communities, by making a commitment toreduce poverty by 25% in the next five years?100nounced changes that allow claimants five additionalweeks of benefits over the next two years. This is notsufficient given the record job losses being reported.Moreover, relatively few Canadians are eligible to29receive these benefits despite all workers earningtaxable income making mandatory 0 payments into theprogramme. Some 44% of those who are currentlyunemployed are drawing 50 insurance benefits. In 1990100that figure was 83%. 3100* “Children reaching…” estimated following procedure “1” inp. 209.IEG of Malaysia = 58,3 2 Canadian Centre for BCI Policy of Alternatives Malta = (CCPA) 99,5 “Five TestsIEG of Malta = 58,21 CBC. “Voter Turnout Drops to Record Low”. 15 October2008. Available from: .for Canada’s Next Federal Budget”. Press Release, 23January <strong>2009</strong>. Available from: .3 Battle, K., Mendelson M. and Torjman S. Towards a NewArchitecture for Canada’s Adult Benefits. Ottawa: CaledonInstitute of <strong>Social</strong> Policy (2006).97National reports 72 <strong>Social</strong> <strong>Watch</strong>100 10010077
The employment insurance programme wasgreatly weakened by deep government spendingcuts made in the 1990s. Although before the recessionCanada saw nearly a decade of economic growthand government surpluses, spending to social programmeswas never restored. There is almost universalagreement across the political spectrum andamong analysts that employment insurance needsto be fixed to improve access to jobless benefits. Theopposition parties unanimously supported a motionin the House of Commons calling for reform in theprogramme. It is only the minority Conservativeswho are opposed.Canada’s weakened social safety netAlthough touted as the Government’s economicstimulus package, Budget <strong>2009</strong> saw no commitmentto reduce poverty or any measures to helpCanada’s most vulnerable. In November 2008, theUN Committee on the Elimination of Discriminationagainst Women called on Canada to act immediatelyto address inadequate and impoverishing social assistancerates. 4 As jobs are lost and people are notqualifying for insurance benefits, more and moreCanadians will need to turn to social assistance.Deep cuts to these programs in the 1990s meansthat that form of income support will not be availableto hundreds of thousands of unemployed Canadians.Substantial investments are needed to improvethe rates as well as undertake welfare system reformso that eligibility requirements are broadened,clawbacks of Government benefits for recipients areeliminated and recipients can earn more income.This would enable more low-income Canadians tolift themselves out of the poverty trap that the currentwelfare system has become since the spending cutsmentioned above.Budget <strong>2009</strong> and infrastructureBudget <strong>2009</strong> saw some investment in physical infrastructureprojects. Canada has an estimated USD105 billion municipal infrastructure deficit due toyears of under-funding and the amount announced isa drop in the bucket. Further, it relies heavily on Governmentpartnership with private industry. 5 In mostcases, municipalities have to match federal fundingin order to access these infrastructure monies.The Budget made some investments in key sectors,although many sector representatives arguethat these are not strategic and do not foster the4 Canadian Feminist Alliance for International Action (FAFIA).“UN Asks Canada to <strong>Report</strong> Back on Poverty and MurderedAboriginal Women”.Press Release, 24 November 2008.Available from: .5 “Federal Budget <strong>2009</strong> and Municipal Infrastructure”.Canadian Union of Public Employees (CUPE). 29 January<strong>2009</strong>. Available from: .growth of a sustainable, green economy. Civil societyorganizations are concerned that, as Canada focuseson reversing the economic downturn, environmentaland sustainability standards will drop. Further, jobsthat are being created are in male-dominated industriessuch as bridge building and road repair. Womencontinue to bear the brunt of this economic crisis.They are over-represented in part-time and precariouswork and are often the first to be laid off. Becauseof this work pattern, women are more likely to beineligible for employment insurance benefits.ODA: good news and badOne of the most significant advances in 2008 was thepassage of the Official Development Assistance AccountabilityAct, which requires the Government toreport to Parliament on how Canada’s aid coincideswith official human rights commitments, relievespoverty and meets needs expressed by the poor. Allparties supported the motion. However, later in theyear, the Government announced that it was removinga number of African countries from priority focus(including Cameroon, Kenya, Malawi and Zambia)and focusing instead on a number of WesternHemisphere countries including Bolivia, Colombia,Haiti, Honduras and Peru. The full implications of thechange are not yet visible, but in such fields as HIVand AIDS and poverty relief, it means a switch fromhigh-incidence countries to low. The Government assuresCanadians that the long-standing commitmentto increase aid to Africa, overall, remains.Tax cuts for the wealthy over socialinvestmentWhile civil society groups have long called on theGovernment to make lasting social investments thatwould be of most benefit to low-income Canadians,Budget <strong>2009</strong> continued a trend of tax cuts and creditstargeted to high income Canadians and corporations.Before Budget <strong>2009</strong>, the Government had introduced$ 200 billion (USD 184,2 billion) in tax cuts. The“stimulus” budget added another $ 20 billion (USD18,4 billion) in permanent tax cuts. Nearly 40% ofwomen in Canada and 24% of men earned so littleincome in 2007 that they do not pay income taxes, 6and thus do not benefit from any of the proposed taxcredits and cuts aimed at stimulating the economy(all of the tax cuts are permanent, except for onetemporary capital cost allowance for computers purchasedbetween 27 January <strong>2009</strong> and 11 February2011). In contrast, every single spending measureis temporary, with a “best before” date stamped oneach measure of no longer than two years from theadoption of the budget.Canada’s fiscal situation going into the recessionwas increasingly precarious due to aggressivetax cutting, with budget balances so razor thin that6 Canada Customs and Revenue Agency (2007). “Tax Statistics”.spending cuts were all but assured by 2010. Theeconomic crisis was an opportunity to use governmentstimulus to start to address a number of unsustainablefeatures of the economy such as inequality,climate change and overstretched public infrastructure,including soft infrastructure such as health careand child care. The Government chose to deal withthe circumstances by consistently underplaying boththe severity and potential duration of the downturn,and by treating the stimulus plan as something forgetting the economy “back to normal”. This is shortsighted and does not do enough to meet the needs ofthe thousands of Canadians feeling the brunt of theeconomic crisis. n<strong>Social</strong> <strong>Watch</strong>73Canada
CENTRAL AFRICAN REPUBLICThe reduction of poverty: a very distant objective100096Instead of diminishing, poverty has increased significantly in the Central African Republic since 1990.9639The disturbances, looting 100 and destruction that accompanied 100 the rebellion 100 that placed General François 10097Bozizé in the presidency ruined the already weak economy. While the Government is proposing astrategy for poverty reduction, it BCI is of unlikely Argelia = that 95,7this will succeed in reducing IEG poverty of Algeria in = 52,7 half unlessthe 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.95 99100100022GAPAFOTPastor Clotaire Rodonne SiribiDespite its many resources, the economy of the CentralAfrican Republic has been sabotaged by years ofplundering of public funds and recurring political andmilitary crises. The rebellion of 15 March 2003 thatplaced General François Bozizé in the presidency wasaccompanied by disturbances, looting and destruction.This shredded an economic fabric already rippedapart by more than 20 years of gangster-like rule thatemptied state coffers and devastated production.A large part of the republic’s 623,000 km 2is covered in forests; its soil is rich in diamonds.However this natural wealth– the country’s principalsource of income – has long been exploited to fillthe pockets of whoever happens to be in power andhis cronies. Even though the soil is fertile – only afifth of it is cultivated – and the climate favourable,cotton and coffee production have steadily declinedin recent years. The 2004-2005 cotton harvest was5,000 tonnes, down from 50,000 in 1998. This ispartly a result of erratic support, but primarily dueto a system of international commerce that tips thescales against African producers – most heavily bypermitting industrialized countries to subsidize theirproducers. In the past, the country harvested morethan 18,000 tonnes of coffee annually, but the crophas virtually disappeared. Agriculture in general is inruins. The country’s farmers, who were devastatedduring the rebellion, are living in a state of chronicinsecurity and barely able to continue harvestingsubsistence crops.The steady decline in production has decimatedincome from taxes and customs tariffs, already limitedby inefficient tax collection – a problem regularlycited by the IMF, which granted the country a USD 8.2million loan in July 2004 to support a post-conflictrehabilitation programme. While revenues are down,the country still has to make payments on a crushingforeign debt, which had reached more than USD1 billion by the end of 2002. Servicing it devoured44.7% of the budget in 2003, according to the Bankof the Central African States (BEAC).The State’s incapacityAll foreign aid has been suspended since an attemptedcoup d’état in May 2001. The country hasonly been able to keep its head above water thanksto donations in 2004 from the country’s traditionalBasic Capabilities Index (BCI)100BCI = 65 GEI = 46Children reaching5th grade5908354100 100Births attended byskilled health personnelSurvival up to 5BCI of República Centroafricana = 65,2partners – the European Union, France, China and theCentral African Economic and Monetary Community.The State appears to be incapable of paying salariesto its civil servants, let alone pensions and grants.When President Ange Patassé was deposed in March2003, government employees 100 were owed 36 months’salary. When his successor, 83 François Bozizé, wipedthe slate clean, he made a commitment to pay salarieson time. The Ministry of Economy soon admittedthat this was impossible; civil servants received theirJuly 2004 salaries in January 2008. These delays0have reduced domestic consumption and generatedsocial tension, which has been exacerbated by high97inflation, particularly in food prices. Despite these100 67100difficulties, the economy inched ahead 2.5% in 2004after several years of stagnation.For Central Africans, the Millennium DevelopmentGoals (MDGs) will continue to be a distantBCI of Honduras = 82,4dream. According to the United Nations DevelopmentProgramme (UNDP), two thirds of the population(3.8 million people) subsist below the povertylevel. Life expectancy is 39.5; more than one childin ten (11.5%) dies before the age of five. Less than10095half the adult population (48.6%) is literate. Thesestatistics place the Central African Republic in 169 thplace amongst the 177 countries classified in theHuman Development Index.In the course of a decade in which life expectancyat birth dropped by 0six months each year andthe country experienced one of the highest HIV/AIDSrates in the 94 region, official development assistance 97100 100plunged 80%.A strategy for poverty reductionTo ameliorate this BCI disastrous of México situation, = 95,2the Governmentis attempting to implement a Poverty ReductionStrategy (PRS) with two major goals:Gender Equity Index (GEI)Economic activity1000Empowerment56100 70100EducationIEG of Central African Republic = 45,8• Creating wealth by strengthening human andinstitutional capabilities within the productivesystem, including those of the poorest inhabitants,through good governance and the reestablishmentof security.• Improving and expanding 100 basic social servicesthrough a participatory approach to implementationand control/evaluation of the country’s54Poverty Reduction Strategy.The strategy has four main objectives:0• Restoration of security, consolidation of peaceand prevention of conflict. The reforms this will54require 100 include reinforcement of the material 100and human capabilities of the <strong>Social</strong> 99Develop-ment Fund (SDF) as well as reform, restructuring,territorial IEG reorganization of Honduras and = participatory 68,9and coordinated transformation of the securitysector.• Promotion of good governance and the rule oflaw through reforms that include reinforcingpolitical and judicial governance, improvingeconomic governance, 100 improving local governanceand gender participation and promotion.• Reconstruction and diversification of the economythrough macroeconomic 39 stabilisation,rural development, transparent and effectiveadministration of natural 0 resources, promotionof tourism and crafts, and development of infrastructurethat 44 supports production.100 100• Development of human capital through 99 reformsthat include expansion of education, particularlyprimary and secondary schools; accessibility toIEG of Mexico = 60,5health services; the fight against HIV/AIDS; andmeasures to generate employment.11100100100100100National reports 74 <strong>Social</strong> <strong>Watch</strong>10098100
Analysing povertyThe current analysis of poverty in the Central AfricanRepublic is based on two studies conducted by theMinistry of Planning on living conditions in urbanand rural settings. They were carried out in 2003 withtechnical and financial support from the UNDP, andsupplemented in 2006 with a participatory researchstudy financed by the World Bank.These studies identified 10 major problems:bad governance, insecurity, low income, inefficienteducation and training, poor health, corruption, lackof employment and the absence of opportunities,lack of drinking water, the absence of a policy forstrengthening of national capabilities and environmentalissues. Amongst these 10, group or individualstatements of participants in every region singled outthree as most pressing: poor governance, insecurityand lack of peace.Poor conditions are prevalent throughout thecountry. Some neighbourhoods of Bangui, the capitalcity, have electricity only four days out of seven;most neighbourhoods have no access to drinkingwater. Faced with a sharp drop in income, manyCentral Africans are invading green space in citiesand forested areas. With inflation rapidly erodingalready meagre incomes, selling wood for fuel isoften the only alternative to the more precarious,badly-paid and illicit ways of earning an income thathave also proliferated. As a result, the savannah isadvancing at a rate of nearly 500 meters a year oneach side of the Bangui-Boal axis; it has alreadymoved almost 30 kilometers toward the south andsouthwest.Overall, the poverty rate is 73% in cities and69% in rural areas. This deprivation is heightened byhuge disparities in income and domestic expenses.The consumption level of the poorest 10% of householdsis barely one-tenth that of the wealthiest 10%.It is highly unlikely that the objective of reducingpoverty to 31% by 2015 will be attained unless thecountry achieves a rapid and lasting return to peaceand security throughout its territory, as well as anexceptionally high level of growth that benefits thepoor, particularly in rural areas. nCHART 1. Progress towards achieving the MDGs between 1990 and 2003GOAL 1. Eradicate Extreme Poverty and Hunger 1990 1995 2003Incidence of poverty (%) 62 67Percentage of children with insufficient weight (below the weight considered healthy) (%) 23 21GOAL 2. Achieve Universal Primary EducationNet school enrolment rate (%) 47 62 40Literacy rate between 15 and 24 years of age (%) 26 39.1 46.7GOAL 3. Promote Gender Equality & Empower WomenGirl/boy ratio in primary school (%) 64 69Girl/boy ratio in secondary school (%) 39 41 60GOAL 4. Reduce Child Mortality Below Age 5Child mortality rate (per 1000 births) 212 157 220Child mortality rate (per 1000 live births) 97 132Measles immunization rate (%) 83 46 35GOAL 5. Improve Maternal HealthMaternal mortality rate (per 100,000 live births) 683 948 1,355Rate of births assisted by skilled health personnel (%) 50 44GOAL 6. Combat Hiv/Aids, Malaria And Other DiseasesPeople living with AIDS (% women 15-49 years) 2 10.7People living with malaria (%)GOAL 7. Ensure Environmental SustainabilityArea of protected land (km 2 ) 67,615% of the population with access to an improved water source (%) 52 75% of the population with access to drinking water (%) 17.5 26.1% of the population with access to sanitation (%) 30Source: United Nations Development Group.<strong>Social</strong> <strong>Watch</strong>75Central African Republic
CHILE100100 96100The social impact of the crisis and the people’s response2200039While recession and unemployment advance, pension funds are depleted and income drops, the62Government puts pressure on wages in order to expand the economy. 100 The unions and civil society 1009799propose other solutions: workers defend their wages, rights, funds and the right to decent work for all,IEG of Algeria and = NGOs 52,7 stress the need to build BCI of together Argentina an = economy 97,8 that prioritizes people IEG and of Argentina the planet. = 72,396 99 98100 100 100100 1005610099Centro de Estudios Nacionales de Desarrollo Alternativo(CENDA)Hugo Fazio100Martín PascualBasic Capabilities Index (BCI)100 98BCI = 99 GEI = 62Children reaching5th gradeGender Equity Index (GEI)100Empowerment3fricana = 65,297In <strong>2009</strong> Chile is being hard hit by the economic crisis,which started in mid 2007 due 11 to the collapse of the0sub-prime market in the United States and rapidly0became global. The Chilean economy is extraordinarily100open and therefore external phenomena 5610099can100 70100100 100have major impacts. The fall in the international price Births attended byof commodities, which began in 2008, has been felt skilled health personnelSurvival up to 5acutely since the country’s economic and trade structureis heavily dependent on the export of a limitedrange of primary products with low added value.For example, the price of a pound of copperreached its highest nominal level in July 2008 whenit surpassed USD 4. By the end of the year it was averagingUSD 1.40, although 100 it recovered slightly in thefirst months of <strong>2009</strong>. The drop in the price of copperaffects, among other things, the rate of exchange, theterms of trade, the balance of payments 54 and generaleconomic activity, all of which in turn have negativesocial repercussions.0In the fourth quarter of 2008 the Chilean economyentered a recession. Economic activity declineddramatically, in step 54with similar worldwide tendenciesand clearly highlighting the strong relationship 99100 100between the national reality and the general trend ofthe crisis. During October–December the seasonallyadjusted and annualized figures fell for the secondconsecutive quarter, when compared to the threepreceding months. In the third quarter the reduction,according to National Accounts fell by 0.1%. In thefourth quarter, on the same basis, it is estimated tohave contracted by 5%.100Industrial production declined over a period of12 months; during the fourth quarter it fell by 3.6%,the largest drop since 1999. In December the annuallyadjusted figures showed an 39 even steeper decline:4.3%. In the fourth quarter, in comparison with thesame period in 2007, total 0sales fell by 4%, whilethose on the internal market fell by 4.7%. 11 Central Bank of Chile.Economic activityEducationIEG of Central African Republic = 45,8 BCI of Chile = 99which continued to decline and reached 9% over Pension fundsIEG of Chile = 61,912 months. At the same time, the fall in the price ofcommodities led to the attenuation of one of the mainsocial problems of 2008 – the high rate of inflation,which also mainly affected the poor. In October 2008the annually adjusted rate 100 of 99 inflation reached 9.9%.This percentage was higher for the poorer two-fifthsof the population due to a higher-than-average increaseAnother noticeable impact of the crisis is the fallin pension fund holdings, which are invested inChilean and foreign financial assets. The collapseof financial markets during the crisis caused a considerablereduction in 100 retirement savings, amountingto a loss of USD 27 billion, more than 26% ofthe total funds, by the end of 2008. A study byin the price of foodstuffs. As internal demand the Asian Development Bank analysing the events45fell, inflationary pressure was reduced and, partly for of 2008 lists Chile as the Latin American countrythis reason, the Consumer Price Index (CPI) began0to fall in November and is expected to continue to doin which household wealth suffered the greatest0losses, due largely to the influence of the pensionso during the year.funds. Despite repeated protests from the people10099Another major reason for the drop in inflation is who have been affected, neither the private funds100 68100the reduction in the international price of oil, which nor the Government have taken any action 96 to compensateIEG of Honduras = 68,9is the country’s main import. On the other hand, dueto the Government’s policy of stimulating investmentin certain sectors at the expense of consumers, theprice of electricity continues to be high. This is alsothe case for water rates and sanitation.them.Remuneration IEG of Hungary = 69,8100 100 10082,4 BCI of Hungría = 99,32 National Statistics Institute (INE).046100 10097Official policy to confront the contraction of theeconomy has been to lobby for the reduction ofreal wages – unfortunately with success. The conceptof wage adjustment is based on the Govern-UnemploymentOne of the major social costs of the recession is the ment’s estimates of future inflation – as has been100100increase in unemployment. According to the statistics the practice during the governments of the “Concertación”(a coalition of political parties) sinceof the Department of Economics at the University ofChile, unemployment in Greater Santiago (the capital 1990 – and not on the loss 52 in value of real wages.and the metropolitan area) began to approach double This has an adverse effect on workers’ incomes,figures for the three-month period from December and official attempts to apply this policy were metto February, increasing two 0 percentage points from at the end of 2008 with 0mass protests organizedNO VA7.7% of the work force to 9.7%, despite the fact that by civil servants.9744seasonal employment increases in the summer. The An assessment of the variations in the general100 Consumption 100 and inflation100100 100100 72100recent official figure for national unemployment for index of wages per hour and the cost of staff power,9998During the fourth quarter there was a considerable the same quarter is 8.5%, which is 0.5 percentage prepared monthly by the National Statistics Institute,reduction in consumption, mostly caused by reduced points higher than the previous quarter. 2shows the consequences. Wages were negative asspending by the poorer IEG of sections Mexico of = the 60,5 population,BCI of Moldavia = 0IEG of Moldova = 73,9from June 2008, having experienced no changesduring May, but lower than the second index, whichconsiders wages from the employer’s perspective.4399100100100National reports 76 <strong>Social</strong> <strong>Watch</strong>100 100 99100
To the reduction reflected in the wage chartsone must add the reduction in credit that affects thegeneral population, in particular the poorest, andsmall and medium-sized enterprises.Non-governmental proposalsDuring this period of crisis, the Chilean UnitarianWorkers’ Centre has combined proposals for UnChile Justo [A Fair Chile] into five main demands:(i) prevent using the crisis as an excuse to abandonworkers’ rights; (ii) defend jobs; (iii) defend wages;(iv) defend pension funds affected by the crisis andask for government intervention in the pension system;and (v) defend decent employment.In a broader social and transnational context, AC-CIÓN, the Chilean association of NGOs consisting ofover 70 development organizations, has sent a letterto the world leaders that constitute the G-20 with fourmajor proposals regarding the current world crisis:• Guarantee democratic governance of the economy,regulating financial activities, creating newfiscal instruments, creating barriers and restrictionsto speculation, forbidding ‘casino’ financialproducts and ensuring that the resources from••private and public savings are effectively routedtowards productive activities. World leadersmust insist on reforms regarding the governanceof the World Bank and the InternationalMonetary Fund (IMF) in order to make themmore democratic, and ensure that all financialinstitutions, financial products and multinationalenterprises operate with transparency andare publicly accountable for their activities. Thisshould include the elimination of bank secrecyand tax havens, as well as the introduction ofpublic control in all countries by means of internationalstandards of accountancy.Generate decent jobs and public services for all,guaranteeing massive investment in a “greennew deal”, in order to create a green economybased on decent jobs and fair wages, investingin and strengthening the provision of essentialpublic services, and working in favour of financingthe development of all those countries thatneed it, without restrictive conditions attached.Put an end to world poverty and inequality, dedicating0.7% of national income to developmentby 2013, making these resources more effec-•tive and lobbying for the cancellation of all theillegitimate and unpayable debts of developingcountries.Build a green economy, pressing world leadersat the Copenhagen Climate Change Conferenceto agree to substantial and verifiable reductionsof greenhouse gases and to undertake new andsubstantial transfers of resources from theNorth to the South in order to support the adaptationand sustainable development of poorcountries. There is an urgent need to implementpolicies that set aside the liberalizationand deregulation measures that characterizedthe 1990s. The letter calls on the governmentsof the G-20 as well as other countries to takeadvantage of this opportunity to begin to buildan economy that places people and the planetin the forefront, in order to achieve a fairer andmore equitable society. nCHART 1: Monthly variations in 2008 in the indices for wages and staff power costsper hourWages per hourStaff power costs per hourMonth % Month %January 1.3 January -0.7February 0.6 February -1.4March 0.1 March -1.8April 0.3 April -1.4May 0.0 May -1.5June -0.8 June -1.9July -1.3 July -2.1August -1.0 August -1.7September -0.9 September -1.6October -1.4 October -2.0November -0.6 November -1.1December 1.3 December 1.1Annual average -0.2 Annual average -1.3Source: INE, a percentage comparison with the same month in 2007.<strong>Social</strong> <strong>Watch</strong>77Chile
100Costa RicaOne crisis, two37country visions1009510052000Costa Rican society has been witnessing the confrontation between two opposing ways of perceiving99and projecting 83 the country. While some sectors advocate a market 100model, 72 others expect the Welfare 10097State to deal with matters such as the social, economic and cultural rights of the population. The crisisand the possible ways out of it constitute the new arena in which these two visions collide. While theIEG of Uganda = 67,2 BCI of EstadosIEG of Usa = 73,8Government proposes a package Unidos of measures de América which = 98.1 seems diffident and overdue, civil society standsbehind stronger social and productive intervention.87100 95100 100 81100100 100100BPrograma de Participación CiudadanaCEP-Alforja 1Mario Céspedes and Carmen Chacón 10056The impact of the world crisis began to make itselffelt in Costa Rica as from the second half of 2008.Some of the relevant data includes the decreaseBasic Capabilities Index (BCI)100BCI = 9388Children reaching5th gradeGEI = 67Gender Equity Index (GEI)Empowerment0(year-to-year) of the Monthly Index of Economic00Activity (MIEA) given as -1.0% in October 2008,10094 99-2.5% in November, -3.7% in December and -4.5%99100 1006454100100 100100 100100in January <strong>2009</strong>. According to some opinions, 96 “a Births attended by98sector-by-sector analysis based on the MIEA itself skilled health personnelSurvival up to 5 Economic activityEducationwould show IEG that de the Belgica agricultural, = 72,2 manufacturing in-ICB de Costa Rica = 93,5IEG de Costa Rica = 66,8dustry, commercial and hotel sectors are already in arecession, since the MIEA rate for December 2008 islower than the rate for December 2007”. 2In July 2008 the Caja Costarricense del Seguro<strong>Social</strong>, CCSS (the Costa Rican social security bank),reported 1,376,667 insured workers; six monthslater it reported 1,385,350, which represents an increaseof only 0.1% of the monthly average. Therewere in all 8,683 new workers. This means that thereduction of productive growth had already affectedthe generation of sources of employment during thesecond half of 2008. 3There are two specific examples related to migrantsand women which illustrate this last point.CCSS’s report specifies that there were just under90,000 insured construction workers, but that in January<strong>2009</strong> barely 74,000 were employed; 4 that is, a lossof 16,000 jobs in six months. This fact is particularlysignificant as it involves the most affected sector of thepopulation: migrants; above all, Nicaraguans.A study carried out by the Ministry of Labour and<strong>Social</strong> Security concludes, in its section on migrants,that two years ago 65% of some 150,000 constructionworkers were Nicaraguan. 5 It should be notedthat figures reported by the CCSS are far lower thanthe real numbers, since most of the migrant popula-1 This article is derived from Dialogue Series: Global Crisis andits Impacts on Costa Rica, organized by the Alforja Studiesand Publications Centre and the Citizen Control Network inMarch <strong>2009</strong>.2 Helio Fallas. Crisis Económica Mundial y la economía políticaen CR (“World Economic Crisis and Economic Policy inCosta Rica”), 23 January <strong>2009</strong>.3 La Nación, 5 March <strong>2009</strong>.4 Ibidem.5 El Centroamericano, 9 March <strong>2009</strong>.tion hired in construction do not contribute to theCCSS, which puts them in an extremely vulnerableposition and deprives them of multiple benefits.Gender and the crisisThe consequences of the impact on women lead to anincrease in unemployment and a widening pay gap betweenmen and women. An ILO report published on 8May <strong>2009</strong> states with regard to the first outcome thatnearly half a million people – most of them women –will lose their jobs in Central America during <strong>2009</strong>. Thismeans that the unemployment rate for women will rise3.5 percentage points to 14%.Women’s average hourly wages – as comparedto men’s – have fallen from 99.1% in 1999 to 83.9%in 2007. The pay gap is even wider in agriculture andfishing – in which they devote 13 hours more to non-remuneratedlabour – followed by professional activitiesand unqualified workers, with a difference of 10 hours.Although the time women actually devote to remuneratedwork is comparable to the time men devote to it,and despite their increasing participation in the labourmarket, the non-remunerated dimension of the workwhich is socially necessary in order to reproduce andcare for not only the labour force but also the old and thesick, still falls to women to a disproportionate degree.Women devote an additional working day plus onefurther hour to dealing with these social demands. 6The Government’s responseIn January <strong>2009</strong> President Oscar Arias launched theso-called Plan Escudo (“Shield Plan”) in response tothe crisis – a response which is overdue and insufficient.The project, which aims to support families,workers, enterprises and the financial sector, con-6 Ibidem.100sists in the implementation of new measures – suchas the Law for the Protection of Employment in Timesof Crisis – and in the continuation of others which arealready in place. Amongst these are a 15% increasein the CCSS’s non-contributive pensions, a food programmefor more vulnerable children on week-ends,the Avancemos (“Moving Forward”) Programme, 7 ahousing subsidy and the write-off of overdue debtsfor 2,100 underprivileged families.Some of these proposals reinforce strategieswhich focus on dealing with poverty, thus consolidatingthe welfare system and running the risk ofbecoming pork-barrel handouts during the electoralcampaign which has already begun. The Plan’s omissionsregarding specific measures to cover the needsof women are particularly serious. In fact, there is nomention of any steps to eliminate gender discriminationin the labour market and the exploitation ofwomen in the area of reproductive and care labour,or to improve the quality of their jobs. 8The draft Law for the Protection of Employment inTimes of Crisis, which will require enterprises to undertaketo reduce the working day without reducing wagesor firing personnel, deserves a special mention.Other measures involve the promotion of micro,small and medium enterprises and capital increasesfor state banks and investments in public infrastructure,particularly education and the national roadnetwork, for which loans are being negotiated withthe Inter-American Development Bank and other internationalfinancial organizations.7 A government programme for economic transfers oncondition that families keep their children within theeducational system.8 Msc. María Flores-Estrada. Technical Coordinator of theEconomic Programme for Women. “Plan Escudo: why it isnot enough for women”, <strong>2009</strong>.48National reports 78 <strong>Social</strong> <strong>Watch</strong>
According to Dr. Luis Paulino Vargas, 9 foreigndebt contracted in order to confront the crisis in compliancewith the Plan, will amount to USD 1.4 billion,merely to cover expenditure on public works. “Thisimplies an increase in the foreign debt of approximately25% in one go, which is no small thing. At thevery least, this demands meticulous planning for theuse of such resources”. 10 A further problem is the contrastbetween the urgency with which these resourcesare needed and the complexity and slowness of theloan negotiation process, parliamentary approval andthe concession of public works contracts.<strong>Social</strong>, political and entrepreneurial sectors –possibly dissatisfied with how the initiative was presentedby the Government – state that so far the resultsof the Plan Escudo do not fulfil expectations. PresidentArias did not instigate national dialogue processes inorder to construct a wide social consensus. Furthermore,the initiative was launched during a pre-electoralyear, which makes the execution of measures morecomplex, distorts parliamentary debate and deepenscitizens’ distrust regarding the “good intentions” of thepresident and his party.A proposal made by social organizationsThree months after the presentation of the PlanEscudo, several social organizations submitted tonational public opinion a proposal called “Ten Stepsto Confront the Crisis through <strong>Social</strong> and ProductiveInclusion”.This proposal is included within a contextin which social organizations have been able tostrengthen their resistance to the neo-liberal model;for example, regarding the Free Trade Agreement withthe United States, greater influence in national debateson the country’s position and a greater capacityfor the submission of proposals. Its points are:• Recovering the socio-productive function ofthe financial system. Redirecting the financialsystem towards the national productive sectorthrough the flexibilization of financial indicatorsand the establishment of social and productiveperformance requirements.• Guaranteeing food security and autonomy as wellas agricultural employment. The reactivation ofagriculture and guarantees for the provision ofbasic food items through price stability, the promotionof production and the marketing of smallfood-producing crop and cattle undertakings.• PROWORK / A conditioned transfer system topromote decent work. In the face of proposalsto reduce the cost of production, either in fact orby law (labour flexibilization and reduction of theworking day and wages), we propose a “rewardsand punishments” system in order to promotethe protection and creation of jobs and decentwork, complying with basic standards, minimizinglayoffs for economic reasons, discouragingthe unfair competition of informal labour and9 Vargas, Luis. “Plan Escudo”. Extract from the article submittedduring “Global Crisis and its Impacts on Costa Rica”, a seriesorganized by the Alforja Studies and Publications Centre andthe Citizen Control Network in March <strong>2009</strong>.10 Ibidem.encouraging social, labour and environmentalinvestment.• Joint social responsibility and decent workthrough infrastructure for social care. Confrontedwith the Government’s exclusively compensatoryproposal in the matter of social investment,we suggest generating jobs and overcomingbarriers to women’s access to the labour marketby widening and creating a social care infrastructurewhich will increase the income of householdsand reduce school dropout rates.• Towards a new role for the Central Bank: redefiningexchange and balance of paymentspolicy. Efforts should be made to achieve atransparent monetary policy which is subjectto accountability, which contemplates the objectivesof price stability and the achievementof full employment in a balanced manner andwhich makes it possible to return to the minidevaluationsystem.• A humanitarian plan for the rescue of heavilyindebted persons. It is urgent to have a financialrescue plan in place for persons who are heavilyindebted, which will guarantee the restructureof their debt, the recovery of their self-esteem,training with regard to responsible consumptionand family budget management. Creditcard limits should be fixed, at least in terms of apassive basic rate plus a predefined percentageof 10%. These criteria should apply for a periodof at least two years, after which they may beflexibilized to a certain extent.• “Home-made” consumption. The promotion ofthe responsible consumption of national productsand the promotion of equitable local markets.Since all national goods and services involve hundredsand thousands of jobs, we should aim atconsuming national goods and services. In addition,it is essential to develop local markets, socialeconomic systems, fair trade and social commercializationstrategies, understood and declaredto be public interest activities, and which enablethe coordination of the supply of national production,particularly in the case of small producers, bymeans of short commercialization chains.• Public employment stability. At this juncture itis essential to ensure the availability of publicand private employment. In the case of publicemployment, central and decentralized governmentshould provide security through amassive process of tenure appointments, bothby means of appropriate civil service examinations,and through competition-free appointmentsaccording to the terms stipulated by law.In addition, dismissals for economic reasonsor due to institutional restructuring should befrozen for a prudential period.• A policy for the recovery of purchasing powerand the progressive increase of salaries. It isessential to deal with the depressed salaries ofnon-professional personnel in the public sector.Furthermore, both in the public and in the privatesectors the purchasing power of the work-•ing population in general – and the populationwith the lowest salaries in particular – shouldbe maintained.Community property in coastal communities andother forms of gaining access to property. Incoastal communities, the sustainability of familiesdepends on avoiding eviction under the pretext ofthe construction of mega-projects which are nowparalyzed because of the crisis. The social impactof mega-projects – ongoing or paralyzed – is enormous.This is why a community property systemmust be promoted which will allow families wholive on the coastal fringe to remain there, and alsofoster sustainable forms of production, includingsustainable tourism, and the improvement of thecapacity for responsible consumption. In additionto the coastal communities, it is necessary togenerate forms of gaining access to land throughrentals or the use of idle land.In expectation of national dialogueCosta Rican society is split into two visions of thecountry which have been confronting each other forsome time. For example, in resistance and mobilizationagainst the ICE 11 Combo (2000), in the 2006 electionsand in the fight against the FTA through the 2007referendum. On the one hand are the sectors whichpromote the free trade model. On the other, those promotingthe Welfare State model but who also wish tosee progress in the increase of social, economic andcultural rights, and a higher degree of democracy.Regarding the Government’s timid responses,social organizations warn that “…if these challengesare not dealt with on the basis of social dialogue andby means of a firm change of course, the persistenceof traditional solutions (one-time cash handouts andcuts in public spending, as well as the reduction ofrights) will doubtless lead to greater inequality andpoverty and to the risk we have already pointed outof turning conjunctural poverty due to the loss ofincome, into structural poverty, and increasing violenceagainst women, children and the elderly”. 12It remains to be seen whether the proposalsof the social organizations are capable of overcomingthe economicist interpretations of the crisis, focusingon people’s lives, on how they are situatedand how they are recognized in production, labour,recreation or household administration, amongstother areas. If such an approach is not included,the so-called alternative vision would remain in accordwith the prevalent economic paradigms whichexclude a variety of activities traditionally consideredtypical of the “private sphere”. In those, women arepersistently made to appear invisible in their role assubjects in the development and reproduction of life,their exclusion and subordination increases and theirproductive and reproductive labour put to use for theoperation of the system itself. n11 An attempt at legislation to privatize telecommunications inCosta Rica, which are under a monopoly held by the CostaRican Electricity Institute (ICE) with a social projection.12 Several authors. Diez medidas para enfrentar la crisiseconómica con inclusión social y productiva (“Ten Steps toConfront the Economic Crisis through <strong>Social</strong> and ProductiveInclusion”), <strong>2009</strong>.<strong>Social</strong> <strong>Watch</strong>79Costa Rica
8cyprus100100 9910056Time to re-evaluate policies000 6The global economic crisis99will damage tourism and real estate, two of the country’s 34 major industries,99and raise unemployment levels. Government measures taken to 100 alleviate the crisis will not benefit 1009998some of the most vulnerable sectors of society. The Government should open the way for civil societyIEG of Argentina to provide = 72,3 assistance, specifically NGOs that are in close contact with all sectors IEG of of Bahrain society. = 46 This wouldICB de Bahrein = 99require reform of the legal and regulatory framework regulating NGOs.9862100 100 100100 100100CARDETCharalambos VrasidasMyria KoushiappiMichalinos Zembylas100Basic Capabilities Index (BCI)100 100BCI = 99+* GEI = 65Children reaching5th gradeGender Equity Index (GEI)100Empowerment43The collapse of markets around the world has hit29emerging markets hard. Governments are faced with0the complex task of ensuring equal access to basic00needs while securing human rights for all individuals99 4699100100living within their borders. The economic crisis is just100 100 100100 100100 68100100beginning to buffet Cyprus; its effects are expected 97Births attended by98to grow more severe by the end of <strong>2009</strong>. The most skilled health personnelSurvival up to 5 Economic activityEducationmarginalized sectors of society will bear the brunt ofIEG of Chile = 61,9 BCI of Chipre = 99,6IEG of Cyprus = 65,1the downturn.a much stronger performance than in the EU as a the 20% wage gap between male and female workersCyprus has always had a mixed economy with whole, where unemployment is expected to reach is one of the largest in Europe. 10a strong State role, especially in basic services such 8% and economic growth in most countries will be Over the last decade, the immigrant populationas electricity, water, telecommunications, health care, negative. 5has climbed by 15% a year. By 2007, non-citizenseducation and transport. In recent years growth has Tourism and real estate, two of the most importantmade up 25% of the country’s labour force. 11 Alongbeen strong, and the Minister 100of Finance announced thatindustries, are already 100 reeling from the global with gradually increasing 100 economic disparities,the <strong>2009</strong> state budget will run a surplus that will be investedcrisis. Predictions for tourism, which contributes this has contributed to increasing mistrust of im-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 hirethat the value added tax and other indirect taxes, the to dire. 6 The construction and real estate sector has undocumented immigrants to reduce their costs,45major sources of government revenue, are falling as the been hit hard as well. Both sectors employ substantialand migrant workers endure the worst employmentnumbers of migrants and women. 7 As a result, conditions. To discourage applications for asylum,economy falters, which will restrict the Government’s000 8ability to fund public investments and programmes these vulnerable groups will suffer more than the the Government has adopted policies such as limitingimmigrants and asylum seekers to employmentto help mitigate the impact of the crisis. 2 Chronic low population as a whole.99productivity in the public sector will also restrict the Women are 47 923789traditionally marginalized in the in sectors such as house cleaning, farming and agriculture.Although schools have made some progress100 100 68100100 100100 78 100100Government’s ability to respond to the rapidly escalating 96 country’s socio-economic life, and absent from decisioneconomic crisis quickly, effectively and efficiently. 3making bodies, a situation that is unlikely to in integrating migrant children, opportunities for3 Impact of the crisis IEG of Hungary = 69,8improve during the economic crisis. 8 As a servicebasedsector employing seasonal workers, tourism On many occasions, the media have used immi-adult immigrants to learn Greek are limited.BCI of India = 68,5IEG of India = 40,7Unavoidably, Cyprus will have to cope with unemployment,relies primarily on female workers, many of whom are grants as scapegoats, holding them responsible forwhich is expected to rise to 4.5% in <strong>2009</strong>, likely to lose their jobs. 9 Even before the downturn, economic and social problems. 12 Stereotypes attractfrom 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 oftenremain positive in <strong>2009</strong>, at around 2.1%. 4 This is versus 80% of the adult male workforce. In addition, present one-sided reports on incidents involvingimmigrants, and rarely give exposure to their point100* “Birth attended…” estimated following procedure “1” inp. 209.521 KIPE (2008). “The Most Stable Bank System in Europe”.Cyprus News Agency (KIPE), 13 October 2008. Retrieved 25February <strong>2009</strong> from .5 ECEFA (<strong>2009</strong>). Interim Forecast 84 January <strong>2009</strong>. EuropeanCommission Economic and Financial Affairs. Retrieved 25February <strong>2009</strong> from .6 Polemitou, M. (<strong>2009</strong>). “Fears for Massive Redundancies inHotels by April”. Simerini. Retrieved 25 February <strong>2009</strong> from02 Antoniadou, C. (<strong>2009</strong>). “Falling Psychology in the Cyprus. 0Market”. Simerini. Retrieved 25 February <strong>2009</strong> from7 Pallala Charidi, N. (<strong>2009</strong>). “Red Card on Unemployment”..Simerini. Retrieved 25 February <strong>2009</strong> from 96100 3 Hadjiloe, 100 T. (2008). 72 “Financial Crisis and Development”.. 63100100 10098Simerini. Retrieved 25 February <strong>2009</strong> from8 EWL (2008) “Women and the Economic Crisis–An.opportunity to assert another vision of the world?”, EuropeanBCI of Marruecos = 81,14 MoF (<strong>2009</strong>). Cyprus Economy, Overview and Potentials.Women’s Lobby, Retrieved 25 April <strong>2009</strong> fromIEG of Moldova = 73,9Ministry of Finance. Presented by Charilaos Stavrakis atwww.womenlobby.org.Press Conference. Retrieved 25 February <strong>2009</strong> from.9 Nicolaou-Pavlidi, E (<strong>2009</strong>). “Wage Gap between Genders”.Retrieved 25 February <strong>2009</strong> from .100100of view. Despite their contribution to the nationaleconomy, migrant workers remain excluded from10 Lokar, S. (<strong>2009</strong>). “Women’s Lobby of Cyprus 50-50campaign for EU elections”. Retrieved 25 February <strong>2009</strong>21from .011 Michail, M, Hadjigiannis, K, Stafanidis, M, Christoforidis,L, Kliridis, S and Mixalakopoullou, 29 M. (2008). “The Effectsof Immigration on Unemployment, Part-Time Jops andParticipation 100 in Workforce”. Essays of Economic 84 Policies, 10008-08. Retrieved 25 February <strong>2009</strong> from.IEG of Morocco = 44,812 ENAR (2008). “Communication consultation on Opportunities,Access and Solidarity Towards a New <strong>Social</strong> Vision for21 st Century Europe”. European Network Against Racism.Retrieved 25 February <strong>2009</strong> from .100National reports 80 <strong>Social</strong> <strong>Watch</strong>100 10010091
public benefits. They have limited labour and socialrights, and no political rights whatsoever. During thelast five years, 700 cases of racism and xenophobiahave been reported. 13 Although in recent years theGovernment has attempted to enforce several Europeandirectives on immigration, so far these policeshave not been fully effective. 14Response to the crisisThe Government has announced several measuresdesigned to boost the economy. In a classic Keynesianeconomic move, 15 it has attempted to speedup several development projects for new buildings,roads, and infrastructure. It has also spent EUR 470million (about USD 622 million) to support the tourismindustry. These measures are expected to keepthe unemployment rate low and ensure GDP growthof 2%. A fair amount of this countercyclical spendingis designed to assist vulnerable and marginalizedCypriots, including increases in pensions, financialaid for university students and financial housing supportfor low-income couples. In addition, a new lawhas been adopted that increases the social securitycontributions of both employers and employees by1.3% for the next five years.Government, trade unions and the federationof employers have also recently agreed on a programmeto combat hiring illegal workers, including ahotline for reporting illegal immigrants and employerswho offer them jobs. This opens up opportunitiesfor further discrimination and exploitation of “cheap”labour, however, as employers seeking to maximizeprofits will adhere to the agreement selectively to suittheir interests.Critics argue that the measures proposed so farare inadequate and will not be sufficient to boost theeconomy, nor will they protect the rights of everyonewho lives and works within the country’s borders. Forexample, the measure to provide financial support touniversity students excludes foreign students andmigrants. Foreign students are only allowed to work20 hours a week, and are restricted to employmentin areas such as agriculture, cleaning, constructionand restaurant work.Role of civil societyGiven the multifaceted nature of the current crisis,the Governments should re-evaluate all policies andpractices to ensure that they help protect the civiland human rights of all residents. One immediate13 Tsiartas, A. (<strong>2009</strong>). “Human Rights Issues in Cyprus”.Presentation at the Living Together conference. Nicosia,Cyprus, March 6, <strong>2009</strong>.14 Demetriou, O. (<strong>2009</strong>). Living Together. Migrant CitiesResearch: Nicosia South. Nicosia: British Council.15 British economist John Maynard Keynes advocatedinterventionist policies (e.g., encouraging consumption byincreasing public investment) as a form of mitigating theeffects of economic recessions.measure to achieve this should be to invite all civilsociety actors to participate in a public debate onthe economic crisis and appropriate responses.Because their specialized grassroots work keepsNGOs in touch with social needs, they are more flexiblethan Government and can be more effective inreaching marginalized groups. Their expertise couldbe indirectly employed by State institutions to accomplishstrategic goals. Furthermore, NGOs couldrecommend innovative and creative practices forpromoting the education, empowerment, genderequality, and human and labour rights of those whoare currently disempowered.Empowering civil society is crucial to cushioningthe impact of the economic crisis. One of theprimary challenges confronting NGOs in Cyprus is tomake their voice heard in society. Despite substantialprogress in recent years, NGOs that support marginalizedgroups must still overcome mistrust andprejudice. The absence of a coherent and transparentframework of cooperation between civil society actorsand public institutions significantly reduces theefficacy of national policies.Expert reviews of the current legal and regulatoryframework affecting NGOs have concluded thatit needs to be reformed and modernized to meetEuropean best-practice requirements and to be consistentwith international law. The Planning Bureau,through CyprusAid, initiated this process in 2008,when NGOs were invited to participate and voicetheir opinions. They have urged the State to createa coherent legal and political framework for cooperation,arguing that this would allow civil societyto empower itself and make it possible for the Stateto implement national policies more efficiently andeffectively.Particularly in this time of economic crisis, theGovernment must engage all stakeholders in developingand implementing ameliorative measures.The absence of a legal framework makes it difficultfor NGOs to take action to secure the rights of theentire population. NGOs and the Government needto establish better channels of communication andinformation exchange so that NGOs can becomevehicles for implementing national policies in everycorner of the island. In addition, as the crisis generatesincreased xenophobia in European countries, itis essential for the Government and NGOs to engagein an information and education campaign to raiseawareness about the causes of unemployment andthe effects of the crisis in order to help reduce biasagainst immigrants. nReferencesAntoniadou, C. (<strong>2009</strong>). “Falling Psychology in the CyprusMarket”. Simerini. Retrieved 25 February <strong>2009</strong> from .Demetriou, O. (<strong>2009</strong>). Living Together. Migrant Cities Research:Nicosia South. Nicosia: British Council.ECEFA (<strong>2009</strong>). Interim Forecast January <strong>2009</strong>. EuropeanCommission Economic and Financial Affairs. Retrieved 25February <strong>2009</strong> from .ENAR (2008). “Communication consultation on Opportunities,Access and Solidarity Towards a New <strong>Social</strong> Vision for21 st Century Europe”. European Network Against Racism.Retrieved 25 February <strong>2009</strong> from .EWL (2008) “Women and the Economic Crisis–An opportunityto assert another vision of the world?”, European Women’sLobby. Available at: .Hadjiloe, T. (2008). “Financial Crisis and Development”. Simerini.Available at: .KIPE (2008). “The Most Stable Bank System in Europe”. CyprusNews Agency (KIPE), 13 October 2008. Available at: .Lokar, S. (<strong>2009</strong>). “Women’s Lobby of Cyprus 50-50 campaignfor EU elections”. Available from: .Michail, M, Hadjigiannis, K, Stafanidis, M, Christoforidis, L,Kliridis, S and Mixalakopoullou, M. (2008). “The Effectsof Immigration on Unemployment, Part-Time Jops andParticipation in Workforce”. Essays of Economic Policies,08-08. Available at: .MoF (<strong>2009</strong>). Cyprus Economy, Overview and Potentials. Ministryof Finance. Presented by Charilaos Stavrakis at PressConference. Available at: .Nicolaou-Pavlidi, E (<strong>2009</strong>). “Wage Gap between Genders”.Available at: .Pallala Charidi, N. (<strong>2009</strong>). “Red Card on Unemployment”.Simerini. Available at: .Polemitou, M. (<strong>2009</strong>). “Fears for Massive Redundancies inHotels by April”. Simerini. Retrieved 25 February <strong>2009</strong> from.The Ombudsman (2007). Annual <strong>Report</strong> 2007. Available at:.<strong>Social</strong> <strong>Watch</strong>81Cyprus
100czech republicDemocracy at a dead end06Last year President Vaclav Klaus proclaimed2034that the country was living in its prime, with a “faith in9354today”. That euphoria is now evaporating as the economy begins showing 100 signs of weakness. Reforms 1008698in public finances, such as lower taxation for the wealthiest and increasing the value added tax (VAT)IEG of Bahrain on basic = 46 articles, have created new BCI burdens of Bangladesh for poor. = 56 Conditions of some marginalized IEG of Bangladesh groups = 52,7 such asthe Roma have become so difficult that they are emigrating. On a positive note, the country has madesome progress – though not enough— in bridging the gender gap.99100 100 100100 1001000551000191007Gender Studies, o.p.s.Linda SokačováADEPTTs100Saša UhlováTrast pro Ekonomiku a společnostPetr GočevEkumenická akademieTomáš Tožička29Basic Capabilities Index (BCI)100 98BCI = 99 GEI = 68Children reaching5th gradeGender Equity Index (GEI)10043Empowerment000President Vaclav Klaus began the year 2008 by declaringthis the best period in Czech history, noting100100100100 100 68100100 100that the enormous increase in loans and mortgages 98Births attended bywas a symptom of “faith in today”. He also boasted skilled health personnelSurvival up to 5BCI ofof the country’s robust national currency, assertingIEG of Cyprus = 65,1República Checa = 99,2that it was evidence of a strengthening economy. In 2005. By the end of 2008, the official unemploymentfact, the Czech Crone (CZK) was being artificially rate hit 4.4%. However, the official figure omittedbolstered by speculation. The right-wing Government,178,000 people who were considered to be not ac-in tune with the President, remained in denial, tively seeking employment; adding this group wouldrefusing to acknowledge that the global economic have pushed the unemployment rate 50% higher. 4crisis would affect the Czech 100 Republic. This opti-Foreign workers, particularly 100 those from Asia, are92,11006410097Economic activityEducationIEG of Czech Rep. = 68,1supporting this usury, for instance by introducingmechanisms to facilitate debt collection. A 2008 insolvencylaw includes a bankruptcy option for privateindividuals, however using it is very difficult.Health system reformmism began to evaporate only when statistics andthe daily reality experienced by the most of the populationmade it impossible to deny that productionwas plummeting at an unprecedented rate, the fifthtypically the first to be dismissed 81 and are sufferingthe most. Their legislative protection is inadequate;most are dependent on job agencies, which makestheir work status precarious, and the majority borrowedSince the Minister of Health declared, “I want capitalismto be in the health system”, he has done his bestto achieve this goal. 7 Several regional hospitals havebeen privatized; they have reduced so-called non-money to immigrate. In addition to being a lucrative services, primarily treatment of difficult orworst performance in the EU. 10 800personal economic disaster, returning home would long-term cases. Responsibility NO VA0for these cases isThe impact of government reforms and the jeopardize the livelihoods of their families.being shifted to large state hospitals and teachingfinancial crisis3789Since the impact of the crisis began 95 to be felt, hospitals. In 2008, government health care expenditures99100 100 78 100In 2007, the Government initiated a reform of publicfinances, lowering taxes on earners in the highest100 100every second small or medium size company has alreadydismissed employees and cut working hours orfell to less than 7% of GDP, one of the lowest100 100proportions in the EU, and about 20,000 employees100income bracket and increasing the value added tax is preparing to do so in the immediate future. 5 Stock (8%) left the health care system. 8 The introductionIEG of India = 40,7 BCI of Irak = 88,4IEG of Iraq = 0on basic articles, which increased the tax burden on exchange indices are down more than 50% from their of fees for services and attempts to decrease socialmulti-member and low-income households. Whilethe Ministry of Finance predicted 3.8% inflation for2008, the consumer price index jumped 6.3% 2 and2007 peaks. Nevertheless, the Government has notabandoned its plans to privatize the pension system. 6By late 2008, it began to consider anti-crisis measures,insurance taxes, especially for the wealthiest taxpayers,are key components of the Government’s regressivetaxation strategy.largely in response to growing global concernreal incomes declined by -2.7% 3 year-on-year by thethird quarter of 2008. Even before the impact of the as well as pressure from domestic industry. The Roma and social exclusion100100100world economic crisis became evident in the Czech The huge increase in household debt has put Antisocial reforms and the onset of the economicRepublic, predictions that reforms would hurt most the financial industry in a precarious position. Until crisis have been most harmful to those already excluded,such as old age pensioners, single moth-64of the population became reality.recently, personal borrowing was increasing by onethirdThe global economic crisis, only now beginningto hit the country, is lowering the 21 standard of livingeven further. In the third quarter 0 of 2008, the numberevery year. The bulk of this was mortgage debt,but nearly 20% consisted of loans from non-bankinginstitutions, mainly for 0instalment purchases. Iners and other vulnerable groups. 34 Not all Roma aresocially excluded, however most of the 250,000 inthe Czech Republic have been 0 directly affected by theof unemployed workers was higher than in the previousquarter, the first time this had happened since nual interest rate 48greater than 200%. The 86 state is data were compiled, 80,000 Roma lived in some 300some cases, these loans come with an effective an-declining economy. In 2006, when the most recent29100 100 100100 100100 6884socially excluded localities 9 100100. This was mainly due to961 See .2 See .3 See .6 See .9 See .921001007BBNational reports 82 <strong>Social</strong> <strong>Watch</strong>100 100 96100
institutionalized discrimination and a lack of Governmentinterest in resolving Roma problems.In January 2008, the Agency for <strong>Social</strong> Inclusionin Roma localities opened its doors, 10 with a missionof raising the standard of living of socially excludedRoma and facilitating their inclusion in Czech society.The main vehicle for accomplishing this was supposedto be providing funding for immediate purchaseof services. However, the Government orderedthe agency to establish a framework for cooperationwith interested parties in each region before orderingany services. The staff spent the entire year on thistask, after which an internal audit concluded that theagency’s approach violated Cabinet policies.The agency has been a disappointment. Itsmandate is weak. Instead of money, it offers onlyadvice. The State’s long-standing neglect and extensiveeconomic problems have made some groups ofRoma in socially excluded localities targets of racialhatred. In one extreme example, in 2008 neo-Nazisand other inhabitants held mass anti-Roma demonstrationsin Litvinov. 11 In April <strong>2009</strong>, a two-year-oldgirl was severely burned in a petrol bomb attack onthe house of a Roma family in Vítkov; her parents andother family members were wounded.During 2008, the Government ascribed the increasein the number of Roma applying for asylumin Canada to economic difficulties. 12 It is true thatthe Roma face severe economic hardship; howeverthis is only one factor among many driving them toemigrate. They do not feel welcome in the Czech Republicand fear the country’s rising fascist tide. 13The status of womenParticipation of women in public life and decisionmakingremains minimal. Even so, the Governmenthas not adopted any measures to bridge the gendergap in political and decision-making positions. Theproportion of women in the lower chamber of parliamentstands at 15.5%, putting the country at 69on the Inter-Parliamentary Union data base. With theexception of the judicial system, where 64.5% of districtcourt judges and 60.4% of regional court judgesare women, they hold less than 25% of most legislativeand executive positions. Even in the judiciary, thehigher the court, the lower the proportion of women. 14In recent years, the country has made significantprogress with regard to violence against women, enactinglegislation to prevent domestic violence andmaking stalking a criminal offence. However, thesemeasures are still insufficient to constrain all formsof gender-based violence. Regrettably, women’s10 See .11 See .12 See .13 Taylor, L. “Czech minister blasted by Roma”. The Star, 19November 2008. Available from:.14 Zeny a muzi v datech (2008). CSU, Urad vlady.Available from: .groups have a hard time getting funding, in part dueto their exclusion from the Ministry of Work and <strong>Social</strong>Affairs 2008 grant competition which stipulatesthat projects “may not have political elements andcannot promote any political or ideological causes,including feminist ideology.” As a result, many ofthese groups have had to terminate their activities.The Czech legal system does not have laws thatprohibit discrimination. The President vetoed antidiscriminationlegislation that would have broughtthe Czech Republic into conformity with Europeanlaw; an absolute majority in parliament is requiredto override his veto. Until it does, the Czech Republicwill be in breach of its commitments as a memberof the EU. Serious gaps remain in the protection ofindividual rights. These are particularly egregiousin the labour code, which had been amended in thelegislation vetoed by the President.In the economic sphere, statistics show that farmore men than women between the ages of 20 to 35are economically active, 15 primarily because raisingchildren is still considered to be mainly women’sresponsibility. This is only one of the many genderstereotypes linked to maternity that place women ata disadvantage in the labour market—during the hiringprocess, on the career ladder and in their accessto further education.The gender gap in income is another discriminationissue. In 2007, this was 19.8%, higher than theEuropean average. 16 The public considers this a significantconcern. Nearly two-fifths of women (39%)and a quarter of men (25%) think that women receiveless pay than men do when they perform the sametasks. According to opinion polls, the Czech publicregards age (64%) and gender (45%) as the mostprevalent barriers to success in the labour market. 17In January 2008, the Government adopted anew policy on parental allowances, known as “threespeed” parental leave. Parents can now choose theamount of time they will get a parental allowance.The duration determines the monthly benefit. Womenwith high incomes get the most, while womenwith low income receive the least. The Ministry ofWork and <strong>Social</strong> Issues, which is extremely conservativeon gender issues, refuses to support anddevelop childcare institutions and is moving to abolishcrèches, of which there are only about 40 in thecountry. The Government’s so-called pro-familypackage does not include comprehensive supportfor childcare institutions.Another problem is the lack of support for policiesthat combine childcare and family programmeswith activities that promote integration of femaleimmigrants. Entering the labour market, thesewomen are also at a disadvantage due to their lackof academic credentials and skills. Job opportunities15 Zeny a muzi v datech. Prague: Urad vlady, Cesky statistickyurad, 2008.16 Ibid.17 Quantitative research was done in September-October 2008to find out how male and female employees perceive equalityof opportunities, as well as whether they think their employerenables them to harmonize their work with private andfamily life. See Gender Studies, o.p.s. available at: .for single mothers are severely limited as well. Immigrantsof both sexes are generally limited to lessattractive, poorly paid jobs, but immigrant womenfrequently endure unequal treatment. These conditionsare partly the result of their ethnicity or nationality,but also due to gender discrimination in therecruitment process, as well as inequities in workingconditions and remuneration. 18Development cooperationCzech Overseas Development Assistance (ODA) islargely devoted to transformation cooperation. Itsaim is to promote the so called Western-style democracyin the countries of the former Soviet Union,Cuba, Burma and Iraq. According to the Government,this focus is justified primarily by the CzechRepublic’s experience in post-communist transformation.Nevertheless, the Government has givenup on fulfilling its EU commitment to increase ODA.Growth ceased in 2007 and aid actually decreasedfor the first time as a proportion of gross nationalincome (GNI) – from 0.12% to 0.11%, despitepressure from NGOs and other parties. Ministerialrepresentatives told a parliamentary foreign affairscommittee meeting that the percentage contributionwill increase, primarily due to a decrease in GNI. Theprogramme is not transparent – the 2008 tenderprocess for the transformational project in Cuba wasnot made public. Projects that obtained funding wereco-financed by neo-liberal institutions such as theNational Endowment for Democracy in the US.Non-governmental organisations and themediaCzech NGOs are under huge financial pressure; theirfinancing has gradually become dependent on theState or on foreign foundations, few of which providesignificant support for independent civic initiatives.Successful grant applicants must fulfil political criteriaand their activities must be in conformity withthe donor policies. To avoid criticism and exclusion,most organizations are eschewing advocacy workand focusing on service work. The least restrictivefinancial support comes from the European Commission,particularly those administered directly bythe Commission. The largest civic campaign remainsCzechs Against Poverty, which participates in theGlobal Call to Action Against Poverty and focuseson advocacy and fulfilling the Millennium DevelopmentGoals.Independent journalism is practically nonexistent.Exposure of political scandals very frequentlyappears to be generated by political directives, ratherthan independent investigative work. The media provideinformation that is selective and incomplete;their objective often seems to be providing supportfor the interests of particular economic and politicalgroups. In this environment, democracy in the CzechRepublic is at a dead end. n18 Krchova, A., Viznerova, H. and Kutalkova, P. Zeny migrantky vCeske republice. Uvedeni do problematiky. Prague: Fes Prag,2008.<strong>Social</strong> <strong>Watch</strong>83Czech Republic
EGYPT100An unprotected economyThe food price crisis in 2008 showed that after decades of paying no attention to its agricultural sector, Egypt9354855554100 100 lacks food sovereignty. 100 Today 100 the Egyptian economy is 100 beginning to feel 100 the impact of the global crisis. 1008674Thedrop in remittances and the return of émigrés has put pressure on a labour market badly prepared to absorb6 IEG of Bangladesh more unemployed = 52,7 workers. The Government BCI of Benin has = 76,9 adopted measures to promote investment IEG of Benin and = 42,1 economicrecovery. While these are long overdue, it remains to be seen whether they can deliver the needed stimulusbefore rising unemployment and lack of food security lead to widespread social unrest.The Egyptian Association for Community ParticipationEnhancement (EACPE) 1Afaf Marei100Basic Capabilities Index (BCI)100 97BCI = 89 GEI = 44Children reaching5th gradeGender Equity Index (GEI)EmpowermentAlthough the Egyptian economy 43 has experiencedrapid growth over the last five years, the fact thatthe country imports two-thirds of its food has put15000it in a vulnerable position. As a consequence ofthe soaring increase in international food prices in25100972008, a great part of the population had difficulties100 10064100100 74100100 100in feeding their families, and social tensions 97 grew.91Births attended byOn the other hand, the global food crisis revealed skilled health personnelSurvival up to 5 Economic activityEducationIEG of Czech Rep. = 68,1 ICB de Egipto = 89,1IEG of Egypt = 43,9the importance of food self-sufficiency for developingcountries such as Egypt, most of which haveneglected investment in agriculture during the last25 years due to low prices for food commodities ininternational markets.In addition, with the constant deterioration ofland fertility, climate change 100and water scarcity, crop019The same will happen with the indexes of growth.As 70 per cent of the country’s currency revenuecomes from the services sector and the crisis hashit the global demand for tourism particularly hard,the Egyptian economy during the present fiscal yearis expected to have its 100slowest annual growth inof a system that addresses their social, economicand political rights.UnemploymentThe Executive Director of the Centre for IndustrialModernization, Adham Nadim, announced the loss of100yields in Egypt are declining each year while, at thesame time, imports of agricultural products havefive years.At a luncheon of the American Chamber of45 per cent of existing jobs, due to the fact that theywere not professional jobs. Thirty-five per cent of theincreased to meet the demands of a growing population.All of these contributed to the overall loss of Trade and Industry Rachid Mohamed Rachid stated labour protection. According to Nadim, immediateCommerce held in Cairo in October 2008, Minister of 2 million people in the industrial workforce have no42food sovereignty.that additional measures were needed if the country measures are needed to correct the situation.0NO VA000wanted to maintain the same level of growth. “If we In March <strong>2009</strong>, the Minister of Economic Developmentdeclared that the social development planA slowdown in growthkeep on doing what we have been doing to reach a 795 Since 2004, following the election of Prime Ministerper cent 99growth,” he stated, “it is very clear 100we will for <strong>2009</strong>-10 will 55 be difficult to implement due to theAhmed Nazif, the Government has promoted a not be achieving that 7 per cent, neither in 2008 nor global crisis and its impact on the Egyptian 97economy.100 100 100100 100100 100highly open market economy. An inflow of foreign in <strong>2009</strong>”. He noted that assuring the viability of the He estimated that growth slowdown would lead toinvestment and record income from tourism, shippingand other activities related to the Suez Canal most vulnerable sectors in order to keep on growing. 150,000 jobs.financial sector was as important as supporting the an increase in unemployment, with the loss of aboutIEG of Iraq = 0 BCI of Italia = 99,5IEG of Italy = 64,5allowed the country to experience the most rapideconomic growth in decades. Nevertheless, sincethe last quarter of the fiscal year 2007-08, thisgrowth has started to slow down. According to theHe also pointed out that the fact that the banking sectorwas healthy and had enough liquidity was goodnews, and that this liquidity should be assigned tothe export sector, investment and consumption. 2A survey carried out by the Centre for TradeUnion and Workers Services (CTUWS) in April <strong>2009</strong>showed that 6,100 workers had been laid off in severalsectors, including 3,100 in the textile sectorMinister of Economic Development, Osman MohamedOsman, growth slowed by 5.8 per cent in the Impacts on agriculturenantly women. A tourism company in Hurghadaand 270 in tourism, both of which employ predomi-100100100first quarter of the fiscal year 2008-09. At the sametime, the rise in food prices, which led to an indexof inflation of over 20 per cent, 34has had a negativeimpact on consumption.The Government anticipates 0 a continued dropin exports for <strong>2009</strong>, together with declining foreignThe lack of investment in agriculture 73 will result in aninevitable increase in the unemployment rate and, asconsequence, an increase of the number of peopleliving in poverty along with the level of out-migration– especially in Upper 0 Egypt. Comprehensivedevelopment of the agricultural sector, enhanceddismissed 200 of its 890 personnel. In other touristcities, 25 per cent of workers’ benefits have beencut off.In addition, some 1,400 workers have beenlaid off in construction, 700 0NO VA 0,0 in the food sector and550 in the mining sector. When the Assiut Cement86 investment and reduced income from the Suez Canaland tourism—all due to the globalsupport for farmers and the adoption of 90alterna-company, which belongs to French Siemens, de-100 100 6857100100 100100 100slowdown.92tive 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 hadwork contracts, while the rest worked on a daily,1 IEG of Mozambique = 64,4 BCI of Myanmar,or temporary basis. IEG In of Burma addition, = 0Orascom Constructiondismissed 400 temporary employees1 This report draws on reports from the Land Center for 2 Rachid, R.M. Birmania “The Financial o Burma Crisis: Repercussions = 73.2 on Egypt”,Human Rights (LCHR) and Center for Trade Unions &2008. Available from: . in March <strong>2009</strong>, and the building company CEAC100072100100018100100100100National reports 84 <strong>Social</strong> <strong>Watch</strong>100 100 98100
dismissed 150 in January. 3 The banking sector hasalso announced staff retrenchments in the comingmonths.Investment and savingsAccording to the Economic Development minister,reduced growth along with increased public investment–in human development, infrastructure, educationand health programmes, among others – willproduce a deficit between investment and domesticsavings that could reach EGP 85 billion (just overUSD 13 billion). As for remittances, EGP 40 billion(some USD 7.2 billion) are expected in <strong>2009</strong>-10,some USD 180 million less than the previous year.The same will happen with the share of private investmentin total investment – it is expected that thiswill reach 57%, compared to 67% in the previousperiod. 4The loss of jobs among Egyptians livingabroad is estimated to result in the return of approximately250,000 out of a total of 6 million,which will further stress the labour market. On theone hand, the Government is in no condition toabsorb the returning workers; on the other, privatecompanies increasingly demand better qualificationsand expertise when hiring new employees.This situation can only serve to increase unemploymentdramatically.The Government’s responseIn response to the crisis, the Government has implementeda series of measures to strengthen sectorsof the economy that are likely to stimulate renewedgrowth. 5 These measures include:• Increased expenditure on public investment,including the implementation of urgent labourintensiveprojects to boost consumption andrevitalize the economic cycle.• Reduced tariffs on intermediate goods and capitalto help companies compete abroad and toencourage investment.• Lifting of taxes on imports of capital goods forone year, in order to promote investment.• Investment of some EGP 15 billion in projectswith public and private participation.• Plans to attract foreign investment, particularlyfrom the Arab region, amounting to USD 10billion annually.• New investment opportunities in feasibleprojects such as oil, irrigation, civil aviation,free trade zones, tourism, urban development,housing, agriculture, trade and informationtechnologies, among others.• The establishment of investment promotionbodies at local government level.• Efforts to solve problems and simplify investmentprocedures, especially in labour-intensivesectors, such as agriculture, industry and services.• Efforts to achieve price stability of energy forindustries.• Increased support to the productive and exportingsectors.• Provision of land needed for infrastructureprojects and productive activities.• Improved coordination with the Central Bankin order to provide credit to small and mediumenterprises and to develop big surpluses of liquidityto finance productive projects.In addition, a number of long-overdue banking reformshave also been announced. At this point, however,it remains to be seen what sort of impact thesemeasures will have in terms of renewed growth. Inthe meantime, it is increasingly urgent to providemeasures to mitigate the impact of the economiccrisis on the population, particularly those who havelost their jobs and can no longer pay for basic fooditems. Without such measures, social unrest is likelyto escalate dramatically, and it is only a matter of timebefore people take to the streets. n3 CTUWS. “Impacts of the Global Financial Crisis on EgyptianWorkers”. <strong>2009</strong>. Available from: .4 CTUWS. op. cit.5 Alasrag, Hussein. Impact of the global financial crisis on theEgyptian economy.<strong>Social</strong> <strong>Watch</strong>85Egypt
el salvadorThe crisis and some encouraging changes<strong>Social</strong> <strong>Watch</strong> El SalvadorMario PaniaguaArmando PérezScarlett Cortez 1100Basic Capabilities Index (BCI)100BCI = 80 GEI = 68Children reaching74 5th gradeEl Salvador has experienced 20 years of neoliberalgovernment that infringed the economic, social, culturaland environmental rights of 15broad sections of the00population. This situation is further complicated by thefact that no provision has 25 been made to counteract the9798effects of the recession in the United States, the crisis100 100 100100 69100in food and fuel prices or the environmental crisis. 91Births attended byskilled health personnelSurvival up to 5IEG of Egypt = 43,9Deteriorating public servicesand conditions of employmentTwo decades of neoliberal economic policies have left the country in an extremely vulnerable situation549461in the face of the global economic crisis. Deteriorating social, economic, 100 66political and environmental 10095conditions, social and labour market exclusion, falling remittances and rising prices of basic goodsIEG of Benin are = just 42,1some of the devastating effects. BCI of Bolivia Although = 79,4part of the problem has been IEG of the Bolivia high = degree 66,1 ofdependency on the United States, political changes in both countries could make this very dependencyconducive to finding a way out.8555100 100 100100 100100There has been a deterioration in the quality andscope of public services due to the erosion of therole of the State. The proportion of the budget assignedto provide these services has been reducedand a market approach has 100been imposed involvingprivatization of state-owned companies and the saleof state assets. Housing, health care, education andwater are increasingly under pressure and, if the42economic crisis becomes prolonged, this is likelyto provoke further social tensions, weakening the0State and increasing the likelihood of instability andviolence. Amongst the most vulnerable populationsthere is concern over 55 the increase in the number of100working children, 2 100in gastrointestinal and respiratory 97diseases, in people with HIV, and in insecurity, as wellas in children and teenagers joining urban gangs.IEG of Italy = 64,5In addition, flexibilization of the labour marketas a “business incentive” for reducing labour costshas led to a deterioration in working conditions, theloss of purchasing power of salaries, and the creationof low-productivity jobs and productive jobs carriedout in precarious conditions. 3 Apart from limited100018BCI of El Salvador = 80,1access to public services and livelihoods for the unemployed,there is a lack of access to productive,quality jobs that are sufficiently attractive to retainthe employed population. 4 While for the last five-yearperiod the unemployed population is estimated to beless than 7% of the economically 100 active population(EAP), UNDP reports that only 20% of the EAP has apermanent, well-paid job with all social benefits. 5Gender Equity Index (GEI)Empowerment51100 10099Economic activityEducationIEG of El Salvador = 67,5but this was a notable decline compared with 2004when they had increased 17% over the previous year.There are signs that in <strong>2009</strong> and 2010 remittanceswill fall by around 3% of the total received so far. Oneof the sectors most affected by the deceleration inthe United States has been 100 the building trade, whichemploys a considerable proportion of the SalvadoranIEG of = 47,3population resident there, 7 and this will have a significantimpact.An economy dependent on the United StatesAlthough various global financial institutions have The food and fuel crisisnoted that El Salvador’sNO 0economyVAis one of the most Privatization schemesNO 0putVAin place by the Governmentsound in Central America, it is highly dependent onturned away from agricultural production fo-100trade with the United States and the effects of the crisiscused on guaranteeing food security, to focus on100 were soon felt. According to the Central Reserve100 100100 100the import of basic grains. Free trade led to inflationBank (BCR), 51% of Salvadoran exports went to the and a lack of purchasing power by the populationUnited States in 2007. In October 2008 banks began due to the absence of any State regulation of theincreasing interest rates and restricting access to market. Estimates by the Economic Commission forcredit, leading to uncertainty. Exports, tourism and Latin America and the Caribbean (ECLAC) show thatfamily remittances began to fall. 6for every 15% rise in food prices, there is a 2.8%More than 300,000 families − 26.7% of the increase in poverty in countries in the region. Sincepopulation − receive money from abroad, which El Salvador has seen the greatest price increases,helps defray the cost of food, clothing and basic chances are that it has also suffered the greatest100100services. The BCR reported that between 1998 and increase in poverty.1 Members of the organizations that make up <strong>Social</strong> <strong>Watch</strong> 2008 remittances had trebled to reach nearly USD The impact of the increase in oil prices can62El Salvador are APSAL, CIDEP, CODEFAM, FUMA and 3.8 million, most of it from the United States. Flows be seen in the higher cost of the basic shoppingMEC. Thanks to Yvette Aguilar, Ana Ella Gómez, Carolina of remittances went up 2.5% in 2008 over 2007, basket, producing a rapid decrease in purchasingConstanza, Jeannette Alvarado, Ana María Galdámez andpower and subsequent impoverishment 23 of broadKaren Martínez for their support.02 The Mesa de Concertación NO para la VA 0,00Lucha contra la Pobreza4 UNDP. El empleo en uno de los pueblos más trabajadores sections of the population. 0 Since 2007 the price of[Coalition to Fight Poverty] (MCLCP) and Save the Children,del mundo [Employment 19 in one of the most hardworking food has been continuously increasing. Average90which jointly organized a forum on the impact of the crisis onnations in the world]. <strong>Report</strong> on Human Development 94 <strong>Report</strong> inflation over the 57last four years was 4.9%, and in100 Peruvian 100 and other Latin American children, warn about 100 thein El 100 Salvador. San Salvador: United Nations Development 100100 74 100April 2008 it hit 6.8%. Cumulative inflation in thisincrease in child labour in the region.Programme (UNDP), 2008.3 Weller, Jürgen. “Procesos de exclusión e inclusión laboral:la expansión del empleo IEG del of sector Burma terciario” = 0[Processesof occupational exclusion and inclusion: the expansion ofwork in the services sector]. Macroeconomía del DesarrolloSeries, 6. Santiago, Chile: ECLAC, 2001.5 Ibid.6 El Periódico. “Economías BCI of centroamericanas Nepal = 58,4reciben impactode la crisis financiera” [Central American economies feelthe impact of the financial crisis]. El Periódico. Mexico, 24January, <strong>2009</strong>.7 UNDP. “Una mirada IEG al nuevo of Nepal nosotros: = 51,2 el impacto de lasmigraciones” [A new look at ourselves: the impact ofmigrations]. Human Development <strong>Report</strong> on El Salvador.San Salvador: UNDP, 2005.10008310010000385297100100100100National reports 86 <strong>Social</strong> <strong>Watch</strong>100 100 99100
period was 19.5%. The minimum monthly salaryis between SVC 85.58 (USD 10) and SVC 183 (USD21). In February 2008 the basic food basket (BFB)cost SVC 163 (USD 19), while the basket of goodsand services, which includes all the average family’sneeds (food, health, education, housing, clothing),cost SVC 703 (USD 82). 8According to the 2006 National Income andExpenditure Survey, food represents some 30% ofthe budget in lower-income homes. In June 2008the cost of the urban BFB increased around 22%compared to June 2007, while the rural BFB has inrecent months seen increases close to 25% comparedwith the same period a year earlier. This seemsto be leading to a rapid increase in national povertyand extreme poverty rates. 9It is worth noting that although the impact ofthe price increases for basic products is greater andmore dramatic in lower-income homes, it is also havinga considerable effect on middle-income homes.Food, electricity and transport − the three areas mostaffected by changes at the international level − accountfor around 50% of the average monthly expenditureof Salvadoran families. 10Given this situation, social and economic policiesare required to stimulate national production,particularly farming. This means price regulation,productive investment, higher salaries, job creationand the intervention of the State to control flaws inthe market. Food security should be at the centre ofGovernment action.Inequalities heightened by the crisisThe climate crisis – higher temperatures, changesin the pattern of rainfall and greater frequency andintensity of droughts, floods, landslides and hurricane-forcewinds – has increased economic, gender,ethnic and other inequalities. It has also heightenedexisting fragilities associated with the most vulnerablepopulation groups, such as women, children,the elderly, indigenous peoples and the rural andurban poor.Year after year rural families lose their cropsand smallholdings, which reduces their access toland and water for human consumption. As a result,their income falls and they abandon their placesof origin, emigrating to major cities or abroad. Thecountry’s economic system multiplies the effectsof environmental vulnerability on poor populations.Phenomena such as deforestation, forest degradationand pollution of rivers and other water coursespaved the way for abandoning rural agriculture inthe face of an adverse economic climate, leading toa shortage of housing and basic services for both therural and urban poor, thus putting them at permanentrisk. Infectious and vector-transmitted diseases areon the increase.Given the environmental situation it is estimatedthat the target under Goal 7 of the Millennium DevelopmentGoals (MDGs), “To reduce by half the proportionof people without sustainable access to safedrinking water and basic sanitation by 2015”, will bealmost impossible to achieve, like most other MDGtargets. However, lack of clear, objective informationon MDG indicators related to drinking water andsanitation make it difficult to gauge advances andbackward steps in this field. Official statistics for thescope, quality and availability of drinking water andsanitation differ from those given by environmentalinstitutions and fail to recognize that simply having astandpipe is no guarantee of access to good-qualitywater.For example, the Multipurpose Household Survey(EHPM) reports that by 2007 the total proportionof homes with private running water was 74%, 11while the National Administration of Waterwaysand Drainage Systems (ANDA) reports that it was54.2%. 12 The EHPM gives the coverage by publicfountains or standpipes as 4.2%, but ANDA reportsit as 6.2%. In either case these figures are alarmingand indicate the shortages in drinking water thatworking class areas have to put up with.The MDG progress report prepared by UNDPin 2007 highlights advances in achieving the MDGtarget on water and sanitation but environmentaland consumer organizations find this questionablewhen the Government has used provision of domesticconnections, standpipes, water wells, springsand rainwater reservoirs as indicators of progress insustainable access to improved water sources. Thereis no reliable information to indicate whether theseresources are really protected and comply with qualitystandards for water fit for human consumption.ConclusionsChanges in the political leadership of the UnitedStates and El Salvador bring hope that a way willbe found to overcome the effects of the crisis, giventhe close trading links between the two countries.It is imperative that a new relationship is based onautonomy, respect, equity and solidarity. The Salvadoranelectoral results of March <strong>2009</strong>, grantingexecutive power to the democratic opposition, makepossible a new direction and lay the foundations fora model of development that will rebuild agriculturaland industrial capacity and generate social welfare.<strong>Social</strong> <strong>Watch</strong> El Salvador will be playing a vigilantrole on the country’s new political stage from <strong>2009</strong> regardingcompliance with Economic, <strong>Social</strong>, Culturaland Environmental Rights and MDGs, not only resultingfrom the change of government, but also becausethere is a debt owing from previous governments inthis respect, already seen to have been due to the lackof any will to comply with them. 13 n8 Goitia, A. Crisis alimentaria y crisis del modelo neoliberal enEl Salvador [Food crisis and crisis of the neoliberal model inEl Salvador].9 UNDP. “Contrarrestando el impacto de la crisis internacionalsobre la economía de los hogares salvadoreños[Counteracting the impact of the international crisis onthe economy of Salvadorean households]. Final <strong>Report</strong> ofthe UNDP Multidisciplinary Commission. San Salvador:Impresos Múltiples S.A. de C.V., 2008.10 Goitia, A., op. cit.11 Ministry of the Economy. 2007 Multipurpose HouseholdSurvey. San Salvador: General Directorate of Statistics andCensuses.12 ANDA. <strong>Report</strong> on National Coverage of Drinking Waterand Sanitation 2003-2007. San Salvador: AdministraciónNacional de Acueductos y Alcantarillados (ANDA), 2007.13 “Economic and social rights: there is no political will”. <strong>Social</strong><strong>Watch</strong> <strong>Report</strong> 2008. El Salvador.<strong>Social</strong> <strong>Watch</strong>87El Salvador
ERITREA10010076An open-air prison38confronts the global crisis10044With no working constitution, functioning parliament, independent judiciary, free press, bureaucratic accountability9498100 100 66 or officially published 100 national 100 budget, Eritrea, the most militarized 100 country 100 in the65world, lacks the mechanisms 1009597required to tackle the current global crisis. The shrinking global economy has drained remittances to Eritrea, while9,4 IEG of prices Bolivia of = 66,1 food and fuel have skyrocketed. BCI of The Brasil country = 90,2needs an immediate transition IEG to of a democratic Brasil = 68,2system ofgovernance that has the support of the international community. Humanitarian aid monitored by independentinternational NGOs appears to be the most effective emergency plan to save the lives of helpless Eritreans.Eritrean Movement for Democracy and Human Rights(EMDHR)Daniel R Mekonnen 100Basic Capabilities Index (BCI)100BCI = 60 GEI = 47Children reaching5th grade60Gender Equity Index (GEI)EmpowermentLong before the global financial crisis became acutein late 2008, Eritrea was already in a deep economic,250social and political mess of its own making. The00country has one of the poorest records of human2898rights protection in the 5193world, as attested by regional5462100 100 100100 100100 100and international human rights monitoring 99 bodies, Births attended byincluding the African Commission on Human and skilled health personnelSurvival up to 5 Economic activityEducation,1Peoples’ Rights and IEG the of UN El Salvador Working Group = 67,5on ArbitraryDetention. The human rights crisis worsened war against its own people. Today, a common adage Many reports from independent sources rankBCI of Eritrea = 60,2IEG of Eritrea = 47,1after the 1998-2000 border conflict with Ethiopia, among Eritreans is that the only difference between Eritrea miserably. For example, the Global Hungersince then the Government has used the repercussionsthe Derg regime and the current rule of the People’s Index puts Eritrea third from the bottom, 116thof the conflict as a pretext to suppress funda-Front for Democracy and Justice (PFDJ) is that the among the 118 countries assessed by the report. 2mental rights and freedoms.officials of the Derg used to speak in Amharic (the The country receives critical grades on the Basic Capabilities100Ethiopian official language) 100 while the PFDJ officialsIndex, denoting 100serious difficulties in everyAn open-air prisonconverse in Tigrinya, a vernacular 83 dialect with de dimension of social development. 3 In press freedom,IEG of = 47,3facto official status.Individuals who do not subscribe to state ideologyor followers of religious beliefs not officiallyEritrea is ranked worst in the world, replacing NorthKorea, according to <strong>Report</strong>ers without Borders. 4Despite its small population of four million, the country’salarming record of human 11 rights violations hassanctioned by the Government are systematically00targeted and severely punished by the security and caused it to be ranked as the fourth largest source ofmilitary apparatus. As a result, human rights violationsare rampant; violation is the norm and42 88protectionrefugees in the world. The 19,400 new claims during2005-2006 place it just above the failed or chaotic 98100 the exception. Some conservative estimates100 100suggest that more than 20,000 people are in detention100states of Somalia, 81 Iraq and Zimbabwe. 5 85100100without trial or any contact with the outside in The most militarized countryBCI of Kenya = 71IEG of Kenya = 59more than 300 formal and informal sites all over Excessive militarization is another major evil. Highthe country. Most of these sites are administeredby army generals, who are not accountable to eitherthe police or ordinary courts. In short, the countryhas been transformed into an open-air prison whereschool students are forced to enrol in military campsfor “formal education”. Among them is the notoriousSawa Military Training Camp, where the students aredisciplined under strict martial rule. The abusive NationalMilitary Service Programme (NMSP), whichall fundamental rights and freedoms are completely100100muzzled by nightmarish, Kafkaesque, pervasive and starts at the age of eighteen and ends nowhere,83abusive practices.continues this preparatory stage of indoctrination.An independent state since 1991, Eritrea has yet tooffer its citizens true freedom. In fact, conventionalfeatures of a free and democratic government arebarely visible. 1 Virtually all countries in the worldhave an enforceable nationalNO 0 VAconstitution, andmost also have functioning parliaments. They conductregular and periodic elections, irrespective100 100of whether they are free or fair in real terms. Theyallow private media outlets, even if regulations becomeso restrictive that they give zero freedom tothe press. In Eritrea, the Government adopted aConstitution in 1997, but has never implementedit. The nominal parliament ceased functioning inFebruary 2002. Private media (radio, TV, print andelectronic) disappeared between 1997 and 2001;only Government-owned outlets remain, and their100allegiance has always been to the ruling elite ratherthan to the truth. Worst of all, since it gained independence,the country has never enjoyed free andfair elections.Today, as bread queues spread 23 in the streets ofAsmara, the capital city, life 0has become extremelydifficult for Eritreans. Like the former occupationauthorities of the 57 Derg (a coordinating committee100 74 100of the armed forces, police and territorial army) inthe 1970s, the Government seems to have declared<strong>Social</strong> and development indicatorsDevelopments indicators are contradictory. <strong>Report</strong>sfrom some sources indicate 0 “progress” in certain09areas, such as infant mortality and maternal morbidity.However, the extremely repressive political354 January 20083 <strong>Social</strong> <strong>Watch</strong> <strong>Report</strong> 472008.IEG of Nepal = 51,2100atmosphere and the impossibility of obtaining 81 100reliabledata make it difficult to take these accounts at facevalue. In truth, the flawed economic policies of theauthoritarian PFDJ ICB totally de Nigeria depleted = 66,3 the national andlocal economies long before the global financial crisishit in late 2008.IEG of Niger = 44,41 See Mekonnen, D.R. (2008). ‘Transitional Justice: Framing aModel for Eritrea’, unpublished LLD thesis, University of theFree State.052097 991002 Welt Hunger Ilfe (2007). The Challenge of Hunger 2007.Available from: . Accessed94 100100 4 <strong>Report</strong>ers 100 without Borders (2007). Annual Worldwide 77 100100Press Freedom Index. Available from: . Accessed 16 October 2007.10005 UN High Commission for Refugees (UNHCR) (2007). GlobalTrends: Refugees, Asylum Seekers, Returnees, InternallyDisplaced and Stateless Persons. Geneva. Available from:.100100National reports 88 <strong>Social</strong> <strong>Watch</strong>100 10010074
The numerous abhorrent violations of human rightsperpetrated under the NMSP include rape and othersexual violence against female conscripts. In recentyears, military commanders have been in effectivecontrol of all senior academic institutions. In 2003,the country ranked as the most militarized state inthe world and third highest, after North Korea andAngola, in percentage of Gross National Product goingto the military. 6 By mid-2000, Eritrea militaryhad 300,000 people in its ranks, more than at anyother time in its history. Since then the number ofpersonnel is believed to have increased exponentially.Female conscripts make up 45.27% of the totalnational army, and their vulnerability is proportionalto their number.The country’s pervasive crisis has been exacerbatedby the shrinking global economy, which haschoked off remittances from abroad. The cost offood and fuel has skyrocketed. Prices at fuel pumps,strictly regulated by the Government, are said to bethe highest in the world. Actually, fuel is hardly available.Food can be purchased legally only at Government-ownedoutlets, and farmers have to sell theirgrain to these stores at a fixed price. Sale of grain inlocal markets has been effectively criminalized, asthe President himself stated in an extensive mediabriefing in January <strong>2009</strong>.Governmental responseThe Government categorically dismisses reportsof economic deprivation, as well as reports on politicalrepression, as “enemy propaganda”. In fact,the President quipped that accounts of pervasiveeconomic hardship represent nothing more than thefrustrations of “overfed and spoilt people” who donot know how to spend their resources. In reality,people are literally dying on their knees of hunger– in a famine caused by the PFDJ. With no workingconstitution, functioning parliament, independentjudiciary, free press, bureaucratic accountability oreven an officially published national budget, Eritreaacutely lacks the legislative, administrative and institutionalmechanisms required to respond to thecurrent global crisis. Moreover, traditional mechanismsfor coping with crises such as emigration arehardly available. Under the suffocating martial law,exit and entry points are closed tight. After depletingwhatever meagre resources they may have, thestarving masses, particularly women, the elderlyand children, are unable to go anywhere and haveto resign themselves to dying in their villages. TheGovernment has yet to adopt any programmes toprotect the most vulnerable population.GONGOs (Government-operated NGOs)A sound development agenda driven by a rightsbasedapproach gives strategic preference to empowermentof local communities and accountability.This approach endows people with the power andcapacity to become the major actors in their ownlives. One way to achieve this is through the involvementof independent civil society organizations andlocal NGOs representing the interests of their communities.Sadly, the repressive atmosphere rendersimpossible the work of independent civil society. Thecountry has only three active local organizations engagedin the national development agenda purportedto benefit the general population: the National Unionof Eritrean Women (NUEW), the National Union ofEritrean Youth and Students (NUEYS) and the NationalConfederation of Eritrean Workers (NCEW).Other “civil society organizations” are timorous andexist in name only.Even the three active organizations are notgenuine or independent enough to represent the interestsof their constituencies, as is widely known.They function as the women’s, the youth’s and theworkers’ leagues (branches) of the ruling party,which picks their leaders and commands their allegiance.In other words, they are typical examples ofGovernment-operated NGOs (GONGOs), designedto conceal the country’s dependency on foreign aidand pay lip service to civil society participation. 7 Theonly independent civil society organizations, such asthe Eritrean Movement for Democracy and HumanRights, work in exile, excoriated by the Governmentas “enemy stooges”; if caught inside the country,their members are jailed and tortured.International cooperationInternational cooperation is crucial in resolving themultiple global crises disproportionately scourgingpeople in developing countries. For many years,Eritrea’s food deficit has been covered by food aiddonated by the international community (althoughthe Government does not acknowledge this). Internationalaid organizations and NGOs have playeda pivotal role in this regard. Nonetheless, many ofthem were expelled as a result of the Government’sillusory policy of “self reliance”. When not refusingfood aid, the Government makes it difficult for thisassistance to enter into the country. It prefers internationalaid in the form of cash.The European Union (EU) remains one of theleading international providers of food and developmentaid to Eritrea. It is currently debating the releaseof development aid worth EUR 122 million (aboutUSD 161 million) from the 10th European Develop-ment Fund, but has legitimate concerns regardingthe Eritrean Government’s contempt for the legalrequirements attached to any responsible developmentaid plan. These include commitment to theprinciples of good governance, accountability, andrespect for human rights and the rule of law, noneof which exist in Eritrea. The country has neither thepolitical will nor the means to ensure a genuine developmentpolicy, and lacks a transparent decisionmakingprocess for formulating and implementingstate policies to overcome the current global crisis.Eritrea needs an immediate transition to a democraticsystem of governance that has the supportof the international community. Until that occurs,humanitarian aid monitored by independent internationalNGOs appears to be the most effective emergencyapproach to saving the lives of the helplesspopulation, suffocated by severe political repressionas well as an economic meltdown. nReferencesAwate Team (2003). Defending Indefensible, IndulgingIncompetence. Available from: .Mekonnen, D.R. (2008). ‘Transitional Justice: Framing a Modelfor Eritrea’, unpublished LLD thesis, University of the FreeState.Mekonnen, D.R. (2007). ‘The Abolition of Female Circumcisionin Eritrea: Inadequacies of New Legislation’, African HumanRights Law Journal 7(2): 407-08.Office of the High Commission for Human Rights. ‘HumanRights in Development: Rights-Based Approaches’.Geneva. Available from: . Accessed 17 March <strong>2009</strong>.<strong>Report</strong>ers without Borders (2007). Annual Worldwide PressFreedom Index. Available from: . Accessed 16 October 2007.UN High Commission for Refugees (UNHCR) (2007). GlobalTrends: Refugees, Asylum Seekers, Returnees, InternallyDisplaced and Stateless Persons. Geneva. Available from:.UN Office of the High Commission for Human Rights (UNHCHR)(2002). ‘Human Rights in Development: Rights-BasedApproaches’. Available from: . Accessed 17 March <strong>2009</strong>.Welt Hunger Ilfe (2007). The Challenge of Hunger 2007.Available from: . Accessed4 January 2008.6 Awate Team (2003). Defending Indefensible, IndulgingIncompetence. Available from: .7 For further discussion on this see Daniel R. Mekonnen "TheAbolition of Female Circumcision in Eritrea: Inadequacies ofNew Legislation". African Human Rights Law Journal 20077(2): 407-408.<strong>Social</strong> <strong>Watch</strong>89Eritrea
France1001009152Unemployment, exclusion and ineffective aid10044Coordination SUDKatia HergottSecours CatholiqueYves CasalisIn France the world crisis has had a direct impact on the people, as it has in all the developed countries959861– which is where it began. The most obvious effects have been rising 100 unemployment and increased 1009798social exclusion, and sectors that not long ago were in a comfortable situation are even sufferingfood shortages. In addition, because of the crisis and the country’s inability to create new resourcesIEG of Usa = 73,8 BCI of Venezuela = 94,5IEG of Venezuela = 67,7for Official Development Assistance, this aid has been cut back sharply and France will not fulfil itscommitments in this area.99100 100 72100100 1008.199100This report is an analysis of the 48 consequences ofthe economic crisis not only in terms of its impacton the French people, which is evident in rising unemployment,increased marginalisation and even0food shortages, but also as regards its negative repercussionsfor the 54country’s official developmentBasic Capabilities Index (BCI)100 98BCI = 99 GEI = 72Children reaching5th grade100 100 100100 100assistance effort, thus affecting the beneficiaries 98 of Births attended bythese programmes.skilled health personnelIEG de Costa Rica = 66,8Unemployment and exclusion: the face ofthe crisisFrance’s socio-economic structure has been totteringsince the last quarter of 2008, and social plans in enterpriseshave multiplied. In December the Natixis Bankannounced the loss of 450 jobs on top of the 850 layoffsthat occurred in May. In November 2008, PSA PeugeotCitroën implemented the ‘voluntary retirement’ of3,550 employees. In October, the computer suppliesgroup Hewlett-Packard announced 580 redundancies,and in December the automobile equipment manufacturerValeo reported the loss of 1,600 jobs.In the first six months of <strong>2009</strong>, Sanofi-Aventis,the leading pharmaceutical group in France, announcedthe first phase of a ‘voluntary retirement’scheme affecting approximately 1,300 employees,and it plans to close down four research centres inthe country. In February <strong>2009</strong>, the specialist telecommunicationsgroup Alcatel-Lucent laid off 200 directemployees, and a further 400 sub-contractors losttheir jobs too. According to the French Economic Observatory(OFCE), “The French economy could loseapproximately 800,000 jobs in <strong>2009</strong> and 2010”.According to Cáritas France, a total of “...492,000euros in supplementary aid was allocated in the firsteight months of 2008. In Savoy (in the south-east),unemployed day labourers are coming in to our refugecentres. In the Eure (in the west), a rural area,temporary employment agencies are overwhelmedand are having to refuse new registrations. In the socalled Gold Coast (south-east of Paris), the high costof petrol and food have had a severe impact sincethe start of the year. In this sector, people in need arecoming to us more and more frequently just to tryto survive to the end of the month(…) In the Val-de-Marne, the Paris region itself, there has been a bigincrease in the number of food parcels distributed”.09900100Gender Equity Index (GEI)Survival up to 5 Economic activityICB de Francia = 98,8 IEG de Francia = 72In January <strong>2009</strong>, the Research Centre for theStudy of the Conditions of Life (CREDOC) presentedevidence of the impact the economic crisis is havingon the supply of food: some 66% of householdsthat are below the poverty threshold (880 euros permonth per person) have had to reduce their consumptionof meat, fish, fruit and vegetables, and insome homes people even skip lunch or dinner.Nothing left but self-respectThe numbers of people soliciting food, the unemployed,people in debt and/or who are denied accessto support, have multiplied. In <strong>2009</strong>, according to theBank of France over-indebtedness barometer, some20,225 people filed in February and 21,247 in March,which is 16% more than during the same period in2008. Some 85% of these involve renewable credits,and these open-ended loans are very costly and cannotbe controlled by the lenders.We hear a similar diagnosis from the Doctorsof the World association: “Poor workers are cominginto our centres again, in many cases undocumentedworkers, the beneficiaries of social assistance, andpeople who do not have the means to pay health insurance.Most people with economic problems delayseeking assistance ...When people who are sociallyincluded but cannot get to the end of the month cometo us, they’ve got to set their self-respect aside”, saidone director of a charity organization. “Many of themtell us that”.The responseAction is urgently needed to cope with this continuingor even worsening fracture in the socialstructure. What is needed is to deal as closely aspossible with people who are excluded and givethem clear priority in policies. Are government10000Empowerment100 7210097Educationinitiatives doing this? In the spring, the authoritieslaunched an emergency plan to help the 434,300young people under 25 who are unemployed. Thisinvolved creating around 100,000 supplementaryalternative contracts in the private sector (for learning,for vocational training), and there are specialpremiums whereby enterprises are paid betweenEUR 1,000 and 2,000 for each contract created.The most important measure, the Active SolidarityIncome scheme (RSA) began to be implementedlast June. Poor workers (some 800,000) receive asupplementary wage – and an acceptable level ofincome – when they resume an activity.However, the RSA only really serves to helppeople who are close to the labour market and havesome minimum level of skills, but it does not have thesame results for those who have been most affectedby years of exclusion from the system.The crisis and ODAFrance has reiterated its commitment to increasingOfficial Development Assistance (ODA) at every internationalsummit – most recently at the last meetingof the G8 – but there is serious doubt about thecredibility of these promises. There was a considerablefall in French ODA in 2007 but in 2008 it increasedslightly, and according to the <strong>2009</strong>-2012 public financesprogramming law, France will not fulfil itsEuropean commitments in 2010. 1 With an ODA levelof around 0.41% of Gross National Income (GNI) in2010, France will fall far short of the 0.51% that it hascommitted itself to in the European Union.1 The countries belonging to the European Union have made acollective commitment to allocate 0.56% of their GNI to ODA,which translates into an objective of 0.51% for France and 14other older members.4888100100National reports 90 <strong>Social</strong> <strong>Watch</strong>
If France is to make good on its commitmentto allocate 0.7% of GNI to ODA by 2015, it will haveto increase the amount it donates by EUR 1,500 millionper year. However, bearing in mind the financialrestrictions the country is labouring under, whichare further aggravated by the world crisis, it is mostunlikely that this will happen if there is no strongpolitical move to support it. French cooperationpolicy does not have an overall strategy, so ODA isdependent on the priorities of the government ofthe day. In addition, a large proportion of French assistancedoes not create fresh resources to financedevelopment.An illusory increaseFrance is one of the leading countries in the world interms of ODA contributions. In 2008, its contributionwas EUR 7,600 million, and the OECD 2 DevelopmentAssistance Committee (CAD) ranked it fourth for itsnet amount of ODA and 13th for the percentage ofGNI it allocated to assistance (0.39%). There was abig drop in its 2007 level (-16%), but French assistancehas still increased markedly since 2002.However, a considerable portion of this increaseis due to an artificial inflation of the statistics and notto the creation of fresh resources to finance development,which in fact hardly occurred at all. This accountingmanoeuvre mainly involves implementingmultilateral debt cancellation plans. Leaving the 2007ODA fall of more than 50% aside, in the 2001 to 2007period debt reductions accounted for an average of27% of French ODA.In fact, for the most part these debt cancellationswere no more than a bookkeeping exercise totidy up unpaid credits, so the impact in the beneficiarycountries was extremely limited. These countriesare very poor, they had fallen into a spiral of overindebtednessand were hardly able to pay their debt.What is more, a large proportion of the cancelleddebt was generated by an active French policy tosupport its exports by providing state guarantees tounderpin sales abroad, a scheme that is managed bythe Compagnie Française pour le Comerce Extérieur(COFACE – the French Company for Foreign Trade).This system to promote exports is clearly a differentthing altogether from the promotion of development,and there is nothing to justify its inclusion in the accountingof ODA.To evaluate ‘real’ French ODA, Coordination SUDhad recourse to a procedure recommended by DanielCohen. 3 Since most of the total debt reductions were2 The CAD is made up of twenty-three of the main ‘traditional’donors of bilateral funds. Emerging donors like China orIndia are not members of the CAD. Neither are the newmembers of the European Union, and for them cooperationfor development is in most cases a recent policy.3 Cohen Daniel, OECD Development Centre, Technical paperNo. 166, The HIPC initiative: true and false promises, October2000.in fact liquidations in the accounting of unpaid credits,he recommends that only 10% of these cancellationsshould figure as ODA, and the remaining 90% shouldappear as losses from debt reductions.Quite apart from the cancellation of debt, forsome years French ODA accounting has includedthe fast growth of certain ex post statistical additionsthat do not correspond to new resources for development– such as the “reception of refugees” (EUR 275million in 2007) or expenditure for foreign studentsin France (EUR 879 million). Besides this, some expenditure(EUR 345 million) that is included doesnot go to foreign countries at all but to two Frenchoverseas territories (Mayotte – the top beneficiary ofFrench assistance apart from the debt cancellationcountries – and Wallis and Futuna) and to providecredits to promote French cultural influence and thediffusion of the French language abroad.When the main components of all this ‘artificial’ODA are eliminated from the statistics, the extent ofFrance’s real contribution to financing developmentis revealed, and it is considerably lower than what isclaimed. In 2007, according to the Government, ODAamounted to EUR 7,200 million (0.38% of GNI), butthe ‘real’ figure was only EUR 4,700 million (0.25%of GNI).ODA at the service of French commercialand strategic interestsEven in the realm of ODA that is considered ‘real’there is a certain amount of expenditure that isgeared to objectives that are not connected to thefight against poverty and inequality. In particular,as part of its assistance policy, France is lendingmore and more to emerging countries in pursuit ofdiplomatic objectives to promote its influence anddisseminate its culture. 4In order to develop its activities in a context inwhich budget resources are limited, the French DevelopmentAgency (AFD), the country’s main instrumentfor implementing its cooperation for developmentpolicy, has oriented its activities to fosteringloans, especially to private parties, at a lower cost forthe State. The amount of these loans included in ODAstatistics increased by 98% from 2008 to <strong>2009</strong> (fromEUR 469 to 927 million).In order to reduce its costs for these loans, theState, which participates with an allowance geared tolowering the interest rate on financial resources proposedby the AFD for developing countries, is seekingto maximise its leverage. 5 Thus, more loans aregranted, they carry interest rates as close as possibleto those pertaining in the market, and while it is truethey go to emerging and middle income countries itis mainly the private sector that receives them.4 Coordination SUD. Analyses, PLF <strong>2009</strong> et budget pluriannuel<strong>2009</strong>-2011, 3 November 2008.5 The amount of loan generated by one euro of state subsidy.The CAD stresses that “the objective of the fightagainst poverty that is being pursued in the poorestcountries in the Priority Solidarity Area is thereforelimited by resources in the form of donations, whereasthe objective of preserving world public goodsthat is pursued in the emerging and middle incomecountries can take advantage of loan instruments forwhich authorisations for commitments are muchhigher”. 6 However, as the CAD has emphasised, theallocation of assistance in terms of geography andsectors should be based on a strategic vision andnot on the suitability of instruments. The expansionof loans to emerging and middle income countries isbuilt around the logic of economic cooperation, sothere is no reason at all why it should be counted aspart of French ODA.In France the creation of the Ministry of Immigration,National Identity, Integration and SolidarityDevelopment (MIIDS) has consecrated the increasinginterconnectedness between cooperation topromote development in the countries of the Southand the control of migratory flows – a trend whichis beginning to make itself felt not only in Francebut throughout Europe. This translates in particularinto MIIDS participation in the various spheres ofdecision-making about development cooperationpolicies and the negotiation of agreements for the‘concerted’ management of migratory flows, whichincludes a rather opaque MIIDS programme of assistancefor development which has not been coordinatedin any way with the Foreign Ministry. 7The poorer countries in the world are also thosethat have been hardest hit by the food, climate, financialand economic crises, but today a large proportionof French assistance does not respond to thefundamental objective, which is to fight poverty andinequality. Moreover, although France has been ableto mobilise considerable resources to cope with theeconomic and financial consequences of the crisis athome, it has already confirmed that it will not fulfil itsEuropean ODA commitment in 2010. While budgetaryallocations for ODA have not been reduced in<strong>2009</strong>, they are simply not sufficient for France tomeet the challenges that the various world criseshave brought about in the poor countries. n6 CAD/OCDE, op. cit. p.48.7 For further information on this subject see the France sectionin the <strong>Social</strong> <strong>Watch</strong> Europe report on migration.<strong>Social</strong> <strong>Watch</strong>91France
100germany1001009444Before the storm: social impacts of the financial crisis530The German Government’s crisis management strategy does not include social or indeed ecological9999goals. Its stimulus packages and tax cuts are socially inequitable; layoffs 100 and 72 the rise in part-time workers 1009796are revealing the ugly face of deregulation. Although German ODA has increased and commitmentsIEG of Brasil for the = 68,2 Least Developed Countries BCI (LDCs) of Bulgaria in <strong>2009</strong> = 97,3 are higher than ever before, IEG they of Bulgaria are still = insufficient. 73,4Declarations of Chancellor Angela Merkel may promise a new approach in international relations, butin practice, the Government’s crisis management policies have been focused on the G20.98100 100 65100100 10000100<strong>Social</strong> <strong>Watch</strong> GermanyUwe Kerkow100Basic Capabilities Index (BCI)100 98BCI = 99 GEI = 78Children reaching5th gradeGender Equity Index (GEI)EmpowermentThe last three years were marked by a reduction inunemployment but stagnating real wages. 1 However,it is becoming increasingly apparent25that, contraryto the Government’s claims, its deregulation of the0labour market did not spur the growth in employment;00the credit should go to the healthy economy.93Now that the (credit-financed) 5410096boom 62 is ending, the100 100 100100 100100 68100100ugly face of deregulation is being revealed. UnemploymentBirths attended by94is climbing. Informal jobs have been the skilled health personnelSurvival up to 5 Economic activityEducationBCI of Alemania = 99,3first to go: Annelie Buntenbach, IEG of Eritrea a member = 47,1of theIEG of Germany = 78,2Federal Executive Board of the German Trade Union Government responsein extra investment 5 —certainly not enough to breakConfederation (DGB, in German), estimates that by Government measures to ease the crisis include the the public investment bottleneck. Just to match thethe end of January <strong>2009</strong>, roughly 120,000 temporary following:European average, Germany would have to spendworkers had already been dismissed. 2• EUR 480 billion earmarked for a special Financial an additional EUR 25 billion – and the emphasis onOfficial jobless figures are also rising, though Markets Stabilization Fund, to bail out troubled road-building projects, the “scrapping premium” fornot yet alarmingly. According 100 to the Federal EmploymentAgency, in January <strong>2009</strong> unemployment was for recapitalization and absorbing toxic assets. inspires confidence.banks. An additional 100 EUR 80 billion is available cars and the renovation 100of military barracks hardly92actually down 170,000 from a year earlier. Nonetheless,the seasonally adjusted unemployment ratestimulus programmes; they are also socially inequi-Not only will tax cuts undermine impact of the• EUR 100 billion for liquidity guarantees andcredit facilities/loans for industry, with a strongwas moving higher, while the number of reportedtable, as the following examples indicate:focus on the car industry.vacancies was plunging. 3 Frank-Jürgen 11 Weise, head• According to calculations by the DGB, munici-0of the agency, is worried that the number of jobless • EUR 11 billion for a first 0 stimulus package ( KonjunkturpaketI), which offers tax breaks and pro-0 6,2palities are supposed to receive EUR 11.51 billionfrom the two economic stimulus packages.could climb from the current 3.4 million to almost 48836,2million before the end of <strong>2009</strong>.vides 98 funding for infrastructure projects, 97 with a100100 100 However, tax cuts implemented at the same timeThe real surge, 81100100 100100 100100however, has occurred 85 in parttimefocus on transport.will reduce municipal budgets by EUR 98,4 6 billion.work. In February <strong>2009</strong> alone, more than 16,900 • EUR 50 billion for a second stimulus package “Ultimately, not even half the amount pledgedcompanies applied to put 700,000 workers on partIEG of Kenya = 59 (Konjunkturpaket BCI of II). Líbano In addition = 95,6 to a one-time will be available IEG (...) of Lebanon It’s debatable = 46,9 whether thistime for economic reasons; that was 648,800 more extra child benefit, known as the Kinderbonus, can actually save jobs”, says the DGB. 6than a year earlier. The employees affected are only and investments in infrastructure, this package• The tax cuts for households are structured in apaid for the hours they work, but they also get a includes tax cuts and a "scrapping premium”way that is socially inequitable. Earners with annualincomes up to EUR 10,000 will receive taxstate-subsidized part-time-work supplement for a that gives Germans who buy a new car an extraspecified period—recently extended to 18 months. EUR 2,500 for their old one.cuts totalling EUR 0.15 billion, whereas thoseThey thus receive two-thirds of their normal income100100with annual incomes 100 above EUR 53,000 willwithout losing their jobs, at least at first. 4 Despite Figures on economic stimulus 88 allocations fromget nearly 10 times as much. As one analysisthese subsidies, it is already clear that the economic the ministries concerned are in some cases far higherconcluded, “Other than raising the subsistenceand financial crisis will damage the social welfare of than those stated above. For example, in Novemberlevel for children from low-income 47 families withseveral million people.2008 the Ministry of Economics and Technology andthe kinderbonus (...), no other measures arethe Ministry of Finance announced that the first economicstimulus package 0would cost a total of EUR09included.”1 <strong>Social</strong> <strong>Watch</strong> Germany has decided 0 to focus this year’s reporton economic policy responses to the systemic crisis as this 32 billion through 2010. However, the Government is This depressing trend will be reinforced by the100is where the social impact is most evident in Germany.47pouring 100 9-10 times more cash into private 98 debt (the “debt brake” unveiled 56 to the German Bundestag,2 See: .98activity. As these packages also include tax breaks,1003 See: .5 Junge Welt. See: .IEG of Niger = 44,4 BCI of Paraguay = 95,3IEG of Paraguay = 66,84 See: .are likely to be relatively small. Indeed, accordingto some calculations, the second stimulus packageis likely to provide only EUR 9 billion per year6 See: .7 Junge Welt, op.cit.100737National reports 92 <strong>Social</strong> <strong>Watch</strong>100 100 10010074 74
to 0.35% of gross national income (GNI). 8 Criticsexpect that austerity policies being pursued in thesocial sector will continue unabated in the wake ofthe massive bank bailout. Hendrik Auhagen, a memberof ATTAC Germany’s Coordinating Council, haswarned that “public debt to serve the interests of thebanks and corporations, tax cuts for the affluent, plusa debt brake in future all set the course for a furtherdismantling of the welfare state (...) and for masspoverty and rising crime”. 9Development policyGerman ODA increased to USD 13.91 billion in 2008,up from USD 9 billion in 2007. In absolute terms, thismakes Germany the world’s second largest donorof ODA. However, if ODA is measured as a share ofGross National Product (GNP), its ratio of 0.38%gives it a rank of 14th amongst the lead donor nations.It is also noteworthy that in 2008 around onefifthof German ODA consisted of debt relief. 10 The<strong>2009</strong> ODA budget, however, contains some goodnews: commitments for less developed countries(LDCs) are higher than ever before, at EUR 827 million(USD 1.09 billion); they make up more than halfof country’s total aid commitments.As part of the second economic stimulus package,the Government made an extra-budgetary allocationof EUR 100 million (USD 132 million) tothe Federal Ministry for Economic Cooperation andDevelopment in order to ‘support’ World Bank infrastructureprojects. 11 The Association of German DevelopmentNon-Governmental Organizations (VEN-RO, in German) applauded this as a step in the rightdirection, but characterized this “economic stimuluspackage for developing countries” as inadequate:“The poorest of the poor are being fobbed off withcharity despite being hardest hit by the impacts of thecrisis”, objected Claudia Warning, chairperson of theVENRO Board. 12 Development Minister HeidemarieWieczorek-Zeul maintains that “the financial plan forthe period 2008-2012 includes further measures tostimulate growth”, 13 but the prospects for fulfillingthis pledge appear poor. To reach the European Uniontarget of development spending equal to 0.51%of GNP by 2010, Germany would have to increase itsODA to EUR 13.1 billion (USD 17.33 billion). 14A new approach in international relations?German Chancellor Angela Merkel raised some eyebrowswith her recent proposal to create a UN WorldEconomic Council. “The G20 is a step forward, ofcourse, but it certainly does not represent a completepicture of the world”, she declared at a ChristianDemocratic Union party conference in December2008. “I am firmly convinced that we need a worldeconomic council to deal with economic issues, justas we have (...) the UN Security Council.” 15 ChancellorMerkel followed this up at the G20 financial summitin February <strong>2009</strong> by calling for a global “charterfor sustainable economic governance” that wouldestablish principles for a future world financial architecture.16How serious the Chancellor is about these initiativesremains to be seen. So far, the Government’scrisis management policies have remained firmlyfocused on the G20. n8 See: . Accessed on 27 February <strong>2009</strong>.9 See: .10 See: .11 Regierungserklärung zum Stand derMillenniumsentwicklungsziele 2015 und zu denAuswirkungen der Finanz- und Wirtschaftskrise auf dieEntwicklungsländer [Government Statement on the Statusof the Millennium Development Goals 2015 and the Impactsof the Financial and Economic Crisis on the DevelopingCountries], 29 January <strong>2009</strong>. Available from: .12 See: .13 See: .Accessed on 27 February <strong>2009</strong>.14 See: .15 See: .16 See: .<strong>Social</strong> <strong>Watch</strong>93Germany
ghana10053Inequality: the biggest challengeThe global crisis has already wounded Ghana’s economy severely. Initial damage has included9992100 100 72 decreasing 100 exports and 100 remittances from abroad and 100 galloping devaluation. 100 The crisis is threatening 100 to9684 78hamper efforts to reduce poverty, which had been registering successes. Government efforts to mitigate,3 IEG of Bulgaria the impact = 73,4 of the crisis appear insufficient. BCI of Camboya The = biggest 66 challenge is to improve IEG of income Cambodia distribution,= 61,6since poverty is deeper in rural areas. Policies are urgently needed to strengthen agriculture, a sectorthat had been contributing almost 40% of the GDP.The <strong>Social</strong> <strong>Watch</strong> Coalition-Ghana10073The harsh winds of the global financial crisis havealready begun to batter Ghana. The cedi, Ghana’scurrency, lost 23% of its value against the dollar in2008, and 19% against the euro. Private capital flows0Basic Capabilities Index (BCI)100BCI = 76 89Children reaching5th gradeGEI = 58Gender Equity Index (GEI)Empowerment000are drying up and large investment projects are beingput on hold due to cash flow problems and doubts968850about their ultimate profitability. Donor inflows to100 100 68100100 100100 100both the Government and civil society organizations 948379Births attended byare dwindling. Vulnerable sections of society, partic-skilled health personnelSurvival up to 5 Economic activityEducationIEG of Germany = 78,2 BCI of Ghana = 75,5IEG of Ghana = 57,6ularly poor rural and urban women and children whodepend for their survival on charitable organizations,philanthropists and NGO safety net programmes, arein serious jeopardy.According to the Ghana Living Standard Survey,the percentage of the population living below thedownturn will result in very, very serious repercussionsfor our economy”. He also predicted that thedip in remittances from abroad would be followed bytumbling donor support and trade.The squeeze on remittances will put additionalof climbing between 6% and 8% as predicted, pricesjumped between 16.5% and 18.1%. Currency depreciationhelped boost the rate to 20.53% in March<strong>2009</strong>. The rising price of fuel imports could maketransportation one of the main drivers of inflationpoverty line fell significantly, 100 from 51.7% in 1991/92 pressure on the cedi, 100 which has dropped due to by April <strong>2009</strong>. 3 10092to 28.5% in 2005/6, including a drop of 17% in urbanareas and 24% in rural communities. 1 Although oil bills and food prices, infrastructural development The <strong>2009</strong> budgetgreater demand for foreign currency to meet higherprogress was slower in the country’s three northernregions, this trend generated great optimism thatneeds and payments on external debts. The cedi lostground against all the major currencies in the secondIn response to the deceleration of growth and itsunequal benefits, the Government 30 is likely to adopt a97Ghana could achieve its first MDG poverty reduction quarter of 2008, at an annual rate of 31%. In the first “distribution-with-growth and stability development0 6,200target within a few years.quarter of <strong>2009</strong>, actual depreciation reached 10%. strategy,” which would target disadvantaged groupsThis optimism is being eclipsed by the lengtheningshadow of the global crisis. Gross Domestic ning far 100 99This is expected to accelerate inflation, already run-and regions. Whether it will actually fulfill this goal is36,2above projections as a result of higher international47100food and crude oil prices. In 2008, instead 3 Business & Financial Times, 14 April <strong>2009</strong>. 99100 100 100100 100100 100100Product (GDP) was forecast to climb 7% 98,4 in 2008but the actual rate was 6.2%. The lower <strong>2009</strong> targetof 5.9% reflects a belief that the decline in globalIEG of Lebanon = 46,9economic growth will probably drive down the worldmarket price of cocoa, one of Ghana’s main exports.Compounding the damage of the anticipateddrop in the quantity and price of Ghana’s exports,economists are projecting a 20% plunge in remittancesCHART 1. Monthly BCI of Inflation Malasia = 2007-2008 96,93530IEG of Malaysia = 58,3from Ghanaians working abroad in <strong>2009</strong>. 2 This 25100would be a hard blow, since they currently equal 30% 2010093100of exports. Speaking at the Royal Institute of InternationalAffairs in London in March <strong>2009</strong>, President15471047Atta Mills admitted that Ghana’s economy was facingworrisome challenges, adding that the “economic 500001 Daily Graphic, 23 April <strong>2009</strong>.982 UN World Food Programme5698100 100 (UNWFP). Assessing the 100100 7363100 Months 100 100Impacts of the Global Economic and Financial Crisis 98 on99Vulnerable Households in Ghana, <strong>2009</strong>. Available from:.BCI of Perú = 87,8IEG of Peru = 69,7Source: World Bank Ghana 2008.JanuaryFebruary10006244 100100MarchAprilMayJuneJulyAugustSeptember1001000October2311NovemberDecember100100National reports 94 <strong>Social</strong> <strong>Watch</strong>100 1001008774
uncertain; so far there is no clear indication about thedirection of its economic policy.The <strong>2009</strong> budget has three major goals: it is aninitial effort to put into practice the ideas containedin the ruling National Democratic Congress (NDC)party manifesto; to respond to the global financial,fuel and food crises; and to tackle current socio-economicchallenges. The driving force is the four mainthemes espoused in the NDC manifesto: transparentgovernance, a strong economy creating real jobs,investing in people and expanding infrastructurefor growth.Even though the Government has outlinedsome policy initiatives to try to mitigate the effects ofthe global crisis, they do not seem adequate. Moreover,it should be noted that government measuresto stimulate and subsidize farming production areminimal. According to the IMF, agriculture contributesnearly 40% of the country’s GDP and employsmore than half of the active labour force, but thisis the sector with the highest incidence of poverty.About 70% of the rural population is actively involvedin agriculture. 4 Even so, the country imports morethan 40% of its food. This could be turned around:Ghana has the capability to lead a “green revolution”in Africa. Only some 16% of the country’s arableland is used for farming. 5 To boost agriculture andcontribute to job creation, economic growth, and thegeneral well-being of the population, farmers needthe supported of investments in inputs, fertilizer,training and access to markets. However at this criticalmoment, the <strong>2009</strong> budget allocates only 10% ofits funds to agriculture.The biggest challengeDrastically reducing poverty will require more equitabledistribution as well as higher growth. At themoment, the country is experiencing rising inequality,growing regional disparities and deep poverty. Inthe rural savannah, for example, a staggering 60% ofthe population remains poor, and poverty is decliningat a slower rate than elsewhere in the country. In theUpper East and Upper West regions, the poverty ratedid not decline at all between 1991/92 and 2005/06,and in the Greater Accra and Upper West Regions, itactually increased.CHART 2. The incidence of poverty by area in 2005/06 (%)The World Food Programme’s ComprehensiveFood Security and Vulnerability Analysis for Ghanarevealed that about 1.2 million people – 5% of thepopulation – were food insecure. However, this nationalaverage hid striking regional differences: 34%of the population in the Upper West region, 15%in the Upper East region and 10% in the Northernregion are food insecure, a total of about 435,000people. The study also identified about 2 million Ghanaianswho had food consumption patterns barelyacceptable at the time of the survey that may quicklydeteriorate following a natural or human-createdshock. Of those, 1.5 million live in rural areas of theUpper West, Upper East and Northern regions.Share in population Poverty incidence Share in total poorNational 100.0 28.5 100.0Urban 37.6 10.8 14.3Rural 62.4 39.2 85.7Accra 11.8 10.6 4.4Coastal, urban 5.8 5.5 1.1Coastal, rural 11.0 24.0 9.2Forest, urban 14.6 6.9 3.5Forest, rural 28.0 27.7 27.2Savannah, urban 5.4 27.6 5.2Savannah, rural 23.4 60.1 49.3Source: Ghana Statistical Service, 2007.CHART 3. The incidence of poverty in the northern regions, 1990/91-2005/06 (%)1991/92 1998/99 2005/06Northern 63 69 52Upper East 67 88 70Upper West 88 84 88Source: Ghana Statistical Service, 2007.The impact of the global crisis on Ghana’seconomy will be severe in the medium term. Thequestion that citizens are trying to come to gripswith is whether the country should focus on aid fromthe international community to cope with the economicfallout, or resort to harsh fiscal and monetaryinitiatives. Urgently, women farmers in Ghana needsupport in the form of investments in inputs, such asfertilizers, and also in training and access to markets.These would boost agriculture while contributing tojob creation, economic growth, and the well-beingof the population. n4 Farming continues to dominate the economy with a 33.59%share of total GDP in 2008. Growth in the sector was 5.1%driven by crops and livestock sub-sectors which went up by5.82%.5 Data from the Green Economy Initiative; “Ghana goesbiofuel, despite global food crisis”. Available from:.<strong>Social</strong> <strong>Watch</strong>95Ghana
100GUATEMALARich country, poor people23100 9910054000The relentless food crisis affecting the country, with 121 of 333 municipalities beset by famine, indicates92 100 99100 100 that the current 100 feudal system 100 of agricultural production 100 urgently needs 100 to be changed. Putting an 10084 7874end96to the displacement of the farming communities and allowing them to own their land would not only6 IEG of Cambodia make landholding = 61,6 fairer but also enable BCI of Canadá a return = 99,3 to food self-sufficiency. The promised IEG of Canada Comprehensive= 74,5Agrarian Reform must be implemented without delay.Coordinación de ONG y Cooperativas de GuatemalaCONGCOOPZully Morales100Helmer VelásquezLess than 2% of the farmers in Guatemala own almost57% of the productive land. Of the 18,937 km 2suitable for the cultivation of maize, 11 7,235 km 2 areBasic Capabilities Index (BCI)100BCI = 68 GEI = 51Children reaching68 5th gradeGender Equity Index (GEI)Empowerment0owned by large private farms that underutilize the0088 land, much of which is covered by scrubland, shrubs419637and cultivated and natural grasses. This situation,100 1008379 100100 100100 100added to the policies of structural adjustment and Births attended by94trade liberalization of the 1980s, has meant that the skilled health personnelSurvival up to 5 Economic activityEducationcountry has gone from IEG being of Ghana self-sufficient = 57,6 in foodBCI of Guatemala = 68,3IEG of Guatemala = 51,3to importing 70% of the food it needs.99the prices of the goods that make up the basic food The importance of maizebasket have risen steeply, which has forced the poor In the high plateau area (where 90% of the indigenouspopulation lives and which is the poorest partto reduce consumption. This situation is also affectingthe middle class.of the country), 100% of the population consumesmaize as part of the daily diet, 2 averaging 310 gramsDismantling the system of production100 99per capita (a total of 110 100 kilograms per year). Nationalconsumption is almost 3 million metric tons,Until the 1970s the public farming system providedextension services, credit, land allocation, research giving rise to a deficit of about 1.5 million metric tonsand technological information for peasants and that is covered by purchases on the internationalsmall producers, with programmes and promotion market, mainly the United States, 29 of more than USDprojects for basic grain cultivation, forest protectionand cattle raising. This, combined with the non-There were massive price increases internation-73 million for 2002.00importation of foodstuffs, ensured that the country ally between January 2006 and January <strong>2009</strong> of 62%could continue100to produce its own food. However, 99 for yellow maize, 5070% for rice and 39% for wheat100 100structural adjustments had brought about the closureof all extension services by the beginning of the came down in 2007 and 2008, they are still in forceflour. Although these prices on the world 97 market21st century, dismantling the public farm system, in Guatemala (except for rice, which returned to theIEG of Malaysia = 58,3 BCI of Malta = 99,5IEG of Malta = 58,2which went from 18,000 workers to 1,200.2006 level).Simultaneously the management of the storageof basic grains in the country’s silos was granted to New threats for the rural populationprivate enterprises, depriving the country of food Since the reform of the mining law of 1996, carriedreserves in the case of catastrophes or shortages. out at the behest of the World Bank, this industry hasSince the State also ceased to intervene in the grain grown. Seventeen of the country’s departments are100100trade, the borders were opened to grains produced the object of exploration and/or extraction. Tourismin the north of the continent 77at subsidized prices, also threatens peasant and indigenous land ownershipin the north and south of the country. Urbaniza-65thereby suppressing the national system of production.One of the most disturbing results is that 49% tion and the building of commercial centres reduceof children suffer from chronic malnutrition and 24% farmland, displacing inhabitants and weakeningof the population is undernourished, 0 which is detrimentalin terms of virtually all indicators of individual The extensive rearing of cattle wears out productiveproductive capacity especially 0 with regard to food.physiological development.97 land and produces large-scale deforestation, and6064100 100peasants and indigenous inhabitants are expelledStructural inequality in farming and foodinsecurityPrior to 2007, state action designed to meet MillenniumDevelopment Goal 100 (MDG) 1 st target (theeradication of extreme poverty and hunger) wasshowing modest progress. However, the achievementof this objective is in serious doubt in view ofthe current food crisis. The World 30 Food Programmeestimates that poverty and extreme poverty affect0more than half of the population. Approximately 6million, out of a total population of 13 million, havefallen below the poverty 47 line. Between 2007 and100 1002008, the United Nations Development Programme 99(UNDP) estimated that 700,000 more people werepushed into poverty. Of the 1.3 million poor householdsin rural areas, 51% lack land or own less thanone hectare.The minimum wage is the equivalent of USD6.50 per day. However, the National Coordinator ofPeasant Organizations calculates that a peasant inthe countryside actually receives USD 3–5 for an1008–10 hour working day, depending on the localityand the crop. Poverty is mainly concentrated amongthe indigenous peasant population. The 2006 NationalSurvey of Living Conditions (ENCOVI) indi-47cated that the tendency for general poverty (livingon less than USD 2 a day) to 0be twice as high for theindigenous population has become consolidated; 1moreover, extreme poverty (living on less than USD63100 1001 a day) was three times higher than it is for the nonindigenouspopulation. During the first half of992008,100 100 10098100 100 100IEG of Peru = 69,7 BCI of Filipinas = 78,12 According to the IEG Popol of Vuh Philippines – the sacred = book 75,6 of the Maya –1 The 2006 ENCOVI defines extreme poverty as the levelpeople find themselves at when they cannot cover theminimum cost of food.“Of yellow maize and white were made their bodies, of maizedough their arms, and their legs, only maize dough was usedto form the flesh of our fathers.”1002499National reports 96 <strong>Social</strong> <strong>Watch</strong>100 10010091
either by means of “legal procedures” or by armedforce. This even happens in the so-called protectedareas (for the protection and maintenance of biologicaldiversity and natural resources) in connivancewith bureaucrats.The installation and expansion of large-scaleagricultural monocultures – such as sugar cane,African palm and pine kernels – aimed at the exportmarket also means the expulsion of the peasant population.The land surface sown with sugar cane was6% of the total in 1995 and 11% in 2007. The annualgrowth of the area dedicated to growing cane was3.6% between 1990 and 2005 but 17.7% between2005 and 2007. The Gremial de Aceites [Oil Chamberof Commerce] estimates that by 2012, 150 thousandhectares will have been planted, with an investmentin land purchases amounting to USD 32.5 million.The amount of land involved might easily exceedthese estimates. Turning more land over to exportsdevastates vast areas that were producing foodstuffsand causes the removal of hundreds of peasantfamilies, since these farms do not generate massemployment. Destruction of the cultural patterns ofthe displaced population causes not only economicpoverty but also social, cultural and spiritual poverty,as well as despair and violence.The growing drug trade is another threat. Thisis sometimes related to lack of livelihood optionsfollowing extensive cattle-raising which relies on theprotection of the State in order to expel peasants andexploit their lands. Peasant families are defencelessin the face of the purchasing power of the drug tradeand the owners of large single-crop estates.The State’s responseThe policies and actions proposed by the Governmentwithin the framework of its Emergency Programmefor Economic Recovery includes a counter-cyclicalfiscal policy, a policy of social protection and othersectoral policies (rural development, programmes forbroader competitive agriculture, agricultural developmentand food assistance, sustainability of naturalresources and the strengthening of land leasing).Macroeconomic stability is to be maintained,whatever the cost. This implies, among other policies,high international reserves, low salaries and theattraction of industries by means of the eliminationof taxes. The fundamental paradigm for the State andthe ruling classes is the enlargement of the area offree trade agreements, two of which are consideredto be of prime importance: the Free Trade Agreementwith North America, which has been in force for threeyears; and the Economic Partnership Agreementwith the European Union, which is being negotiated.Neither of these systems proposes benefits for thesmall producer.One of the Government measures to tacklethe crisis was to increase zero tariff import quotasfor products such as yellow maize, wheat flour andcommon rice. However, one group of importers,the Buena Group, obtained 82% of the import quotas.This did not lead to lower prices and in practiceconstituted a subsidy for this company since it didnot transfer the reduction in duties to consumers.Furthermore, there is 20% direct taxation and 80%indirect taxation. The Government’s promise to initiatea process of fiscal reform in order to change thecurrent model is not being kept. The planned reform,within the context of the present crisis, has beenreduced to making improvements in the macroeconomiccycle and providing aid programmes for peoplesuffering extreme poverty.As regards farming, there are programmes toassist in the leasing of land, but not for access toownership or farming credit for peasants. The newGovernment has increased the number of forcibleevictions of peasants (50 by 31 March <strong>2009</strong>). Thishas generated instability and discontent in the indigenousand peasant organizations, which hadlooked forward to the approval and implementationof the promised Agrarian Policy for Rural Development.Community leadership is being taken over bythe Government and multinational mining companies,which are generating their own parallel socialmovements based on patronage and on financingquestionable representatives of the social base. Thesubstitution of traditional leadership by financedleadership has led to confrontations between peasantmovements. The criminalization and persecutionof peasant leaders, who are fighting for access toland in order to produce food, has also occurred.<strong>Social</strong> alternativesAccording to the Political Constitution of the Republicof Guatemala, “private property is an inherent humanright”. In other words, all Guatemalans have theright to be owners of property. To this end “in specificcases property can be expropriated for reasons ofcollective use, social benefit or duly proven publicinterest”. Malnutrition, poverty, extreme poverty,unemployment and now the intensification of therecurrent food crisis all have their origin in the inabilityof the population to provide themselves withthe necessary means of livelihood, since they lackthe assets required for that purpose, especially land.This is a clear case of “collective use” and “provenpublic interest”; in other words, the situation is coveredby the Constitution.Opening up agriculture can ameliorate the currentsituation and offer a path to development; it istherefore necessary to destroy the feudal systemof production. The equitable distribution of land isa practical way to foster rural employment and increasefarm productivity while also contributing tothe growth of the economy, the capacity to save andthe provision of food. Agrarian reform cannot be putoff. It is a means to social peace and governance andwill put an end to the conflicts rooted in the usurpationof peasant and indigenous land. It will alsoprevent the destruction of forests and encourage theemergence of sectors with the capacity to produceand invest. Future generations will have more andbetter means of self-fulfilment and the capacity toconsume will increase, which in turn will invigoratethe chain of production. 3 n3 Data and analyses from the Coordination between NGOs andCooperatives of Guatemala, via its two analysis institutes: theStudies for Democracy Institute, which is being established,and the Institute for Agricultural Studies and RuralDevelopment, Guatemala, <strong>2009</strong>.<strong>Social</strong> <strong>Watch</strong>97Guatemala
HONDURASFirst the crisis, then dictatorship100100591100Honduras is one of the poorest countries in Latin83America. The international financial crisis already5456predicted that life would 100 be even more difficult for 100the Honduran 100 population, 70 but the coup 100 d’état,supported by the most reactionary sectors of society – in particular the defenders of the patriarchalculture – has exacerbated the situation. <strong>Social</strong> organizations, in particular women’s movements, areBCI of República Centroafricana = 65,2 IEG of Central African Republic = 45,8organizing the resistance against the de facto regime.100100Centro de Estudios de la Mujer – Honduras (CEM-H)Suyapa MartínezAna FerreraMauricio AguilarThe following report is comprised of two sections.The first one was written before the coup d’état of 28June <strong>2009</strong>, and refers to the impacts of the world crisison the Honduran economy and society. The secondaddresses the social movements’ – in particularwomen’s organizations – response to the coup.Honduras is the third poorest country in LatinAmerica, after Haiti and Nicaragua. Although povertywas reduced from 63.7% in 2005 to 59.2% in 2008and extreme poverty from 46% to 36.2% in the sameperiod, 1 these figures do not represent any greatprogress. Despite 73,831 households no longer beingclassified as in extreme poverty, there are now121,390 new households in relative poverty (i.e.,many households moved from extreme poverty torelative poverty while some are newly poor). 2The aim of the Poverty Reduction Strategy(PRS) – developed in order to reach the MillenniumDevelopment Goals (MDGs) by 2015 – is that relativepoverty should drop to 42% and extreme poverty to19%. 3 Clearly this goal will not be reached; addedto the country’s existing problems are the consequencesof the current worldwide crisis. The Ministryof Labour has reported that over 10,745 people werelaid off between late 2008 and early <strong>2009</strong>. Moreover,it is estimated that inflation exceeded 11% in 2008.Family remittances from the United States andSpain have begun to slow down. Their contributionto GDP decreased from 21% in 2007 to 20% in 2008and is expected to fall again to 18% in <strong>2009</strong>. 4The Zelaya planThe Government of Manuel Zelaya Rosales has retainedits populist welfare policies which, accordingto the World Bank, have limited coverage, most ofthem lacking in control and evaluation. It has alsocontinued the confrontation between the three statepowers, with the Executive on one side and the Legislativeand Judicial bodies on the other. For example,1 National Statistics Institute (INE) database.2 See Mauricio Díaz Burdett. “Honduras: ¿Cómo afrontar lacrisis financiera internacional?”3 World Bank. “Informe sobre el gasto público 2007”4 Government of Honduras. Plan to Face the Effects of theInternational Economic and Financial Crisis. March <strong>2009</strong>.Basic Capabilities Index (BCI)100BCI = 82 GEI = 6983 Children reaching5th grade97100 67100Births attended byskilled health personnelSurvival up to 5BCI of Honduras = 82,4actions taken by the Executive to promote fuel savinghave been challenged as unconstitutional and theSupreme Court of Justice has accepted the appeal.In addition, the signing of the Alternativa Bolivarianapara América Latina y El Caribe (ALBA) [BolivarianAlternative for Latin America 100 and the Caribbean] – an95agreement promoted by Venezuela – was endorsedby the Executive without the support of the Legislature.This has led to an escalation of the country’sprincipal problems, such as the energy crisis and thelack of citizen security.0Since the PRS was approved in 1999 after HurricaneMitch, each government has carried out its ownmodifications 94 to the document. For his part, 97 PresidentZelaya has weakened its institutional frame-100 100work. On his own initiative he created the Ministry of<strong>Social</strong> Development and the Red Solidaria [SolidarityBCI of México = 95,2Network], which automatically reduced the standingof the PRS Consultative Council in which civil societyand government organizations were represented.Some expectations but further regressionOver the strong opposition of private enterprises,100 98the Government increased the minimum wage toHNL 5,500 (USD 297), though it exempted bondedassembly plants and domestic work from the increase.In addition, the signing of ALBA in August2008 gave rise to a great deal of expectation in thepopulation, particularly among 0 the more vulnerable.The agreement includes medical and educationalaid, donations of machinery and equipment 99and the100 100“Petrocaribe” initiative, which will make it possible topurchase oil with long-term financing and very lowinterest. 5 The savings generated by this transactionBCI of Polonia = 99,15 <strong>Report</strong> by the Committee for the Administration of Oil,November 2008.0Gender Equity Index (GEI)1000Empowerment54100 10099Economic activityEducationIEG of Honduras = 68,9are to be put into a trust fund that will be used tofinance social development projects.Although the Ministry of Security’s budget rosefrom USD 140.6 million to USD 156.6 million, drugtrafficking and corruption are on the increase. InMarch 2008 human rights 100 organizations, women’sand feminist movements, churches and popularmovements gave their support to a group of publicprosecutors who went on a hunger strike as a wayof denouncing the corruption 39prevalent in the PublicProsecutor’s Office. This event triggered a series0of similar allegations regarding the State AttorneyGeneral, magistrates of the Supreme Court of Justice,the National Human44Rights Commissioner and100 100magistrates of the Supreme Electoral Court. 99Furthermore, delay in submitting the generalbudget for 2007, which was sent to the National Congressin April 2008 – while the 2008 budget had notIEG of Mexico = 60,5yet been submitted in April <strong>2009</strong> – makes it possibleto use public funds unlawfully and delays the implementationof anti-crisis projects.The impact of the crisis and mitigating100measuresThe recession resulting from the global crisis makesexisting problems even worse.The energy crisisThe increase by over 100% 0 of the international priceof crude oil and oil products during 2008 causedthe cost of transport and the production of goods100 69100and food to shoot up. This in turn led to 96 a dramaticincrease in the basic food basket and a drop in thepurchasing power of the population. The cost of producingelectricity also increased – at present overIEG of Poland = 7070% of the energy consumed in the country is generatedby plants that operate on fuel oil – and rates have100 1001005445100100100National reports 98 <strong>Social</strong> <strong>Watch</strong>100100
shot up 30%, affecting the poorer sectors, the middleclass, small businesses and small producers in particular.The Government tried to contain the impactby granting around USD 6 million in subsidies, butthis only benefited 3.3% 6 of the poorest quintile of thepopulation – some 100 thousand families. 7 Despitethe subsequent drop in the price of crude oil on theworld market, the electricity rates in Honduras remainas high as at the worst moment of the energy crisis.In early <strong>2009</strong> the President of the National Congresssubmitted a bill aimed at dramatically cuttingthe electricity rates. However, this measure, which didnot stipulate any means of control, would aggravatethe already critical situation of the National Electric EnergyCompany while substantially benefiting privateplants. In response, social and popular organizationscarried out a series of marches and public demonstrationsin order to demand that the Governmentnationalize all of the energy generation plants.The financial crisisThe Honduran economy is very dependent on theUnited States; over 85% of the goods produced areexported to that market. One of the sectors that hasbeen directly affected by the crisis is the free zonearea or bonded assembly plants. The National Associationof Bonded Assembly Plants announcedin November 2008 the loss of 25,000 jobs – 85% ofthem held by women – due to factory closures.As part of its anti-crisis plan, the Government hasannounced that a large number of jobs will be generatedall over the country in the short term. One of theprincipal sources of employment will be the Caminospor Mano de Obra [Roads for Labour] programme,which will carry out projects involving the constructionof local roads. 8 This is not going to be easy to putinto practice, however, as <strong>2009</strong> is Zelaya’s last yearin office and past experience shows that when a newgovernment assumes power, it ignores the previousone’s plans. 9With regard to the banking sector, the companiesexporting goods are not requesting financingfrom the commercial banks. This has held up theflow of money and led to a lack of liquidity in thesystem. Another problem is the cornering of capitalby the banks’ partners, who do not wish to risk theircapital and prefer that the Government make theinvestments. This practice was made clear whenthe largest shareholders in banks sent an averageof USD 200 million abroad in a period of about amonth. 10 The situation was reported to the NationalBanks and Insurance Committee, whose presidentwas fired. In order to generate liquidity, the Governmentreduced the banks’ reserves and increasedfinancing for productive sectors at a borrowing rateof interest not greater than 10%.6 World Bank, op. cit.7 Autonomous National University of Honduras (UNAH)(2008). Forum on Energy Crisis and Development inHonduras.8 Government of Honduras. Plan to Face the Effects of theInternational Economic and Financial Crisis. March <strong>2009</strong>.9 Interview with Congressman Marvin Ponce.10 Interview with economist Martín Barahona.Against blows to democracy and blows to womenOn 28 June <strong>2009</strong> the Honduran army staged acoup d’état against the constitutionally electedpresident Manuel Zelaya Rosales, sending himinto exile and naming Roberto Micheletti, untilthen president of the National Congress, ashis successor or “provisional president”. Thiscoup was carried out with the support of thetraditional political parties, the business sector,the Supreme Court, the Catholic Church andmost of the mass media, among others.The coup has also been a blow to the Honduransocial organizations. The de facto Government’srepression has resulted in deaths,hundreds of injured and displaced people, andthe violation of fundamental rights.Traditionally, Honduran women suffergreat disadvantages. Although their educationallevel is higher than men’s and they represent52.6% of the population of working age, only34.3% of them is part of the economically activepopulation. Poverty in women-led households(64.1%) is proportionally greater than thoseheaded by men (58.8%). 1 This gap is deeperwith regards to extreme poverty, where 38.8%are women and 34.9% are men.Between the end of 2008 and the firstmonths of <strong>2009</strong> the National Congress passedseveral decrees that violated women’s right todecide over their own body. Such is the caseof decree number 54-<strong>2009</strong> that penalizes theselling, use and promotion of emergency contraceptionpills. In January <strong>2009</strong> a reform billof the penal code was introduced in order torecognize the right to life since conception, althoughit was still under discussion when thereactionary forces took power.The international crisis has favoured theincrease of crimes, sexual violence againstwomen and girls (over 540 cases annually 2 )and femicides (more than 1.000 in the last sixyears 3 ). In addition, the advance of religiousfundamentalisms, with the access to the legis-1 INE (2007). Encuesta Permanente de Hogares dePropósitos Múltiples.2 Dirección General de Medicina Forense.3 Centro de Estudios de la Mujer database and the reportof Observatorio de la Violencia, UNAH, January <strong>2009</strong>.The food crisisThe global rise in the price of wheat led to a 40% risein the cost of wheat flour in Honduras, which in turnled to an increase in the price of bread. Productsthat the population consumes daily, such as rice andcornflour, underwent an increase of 110% during thesecond half of 2008. The shortage of foodstuffs is notonly due to the lack of production but is also linked tothe worldwide energy crisis. Because of this, maizeharvested for human consumption was diverted andexported for the production of ethanol. The inevitablelature of congresswomen with links to the OpusDei and the most conservative sectors of theCatholic Church, has set back women’s rightsand encouraged the coup d’état.Now the repression unleashed by the defacto Government has resulted in deaths, hundredsof injured and displaced people, as wellas the violation of fundamental rights. The rightsto freedom of movement and of speech, amongothers, are limited, especially for those who haverisen up in popular resistance. In this context ofviolence and almost total absence of the rule oflaw, the violence against women has increased,catalyzed by the patriarchal culture that considersthe female body as its property. Women in thepopular resistance and also other women who,by chance, and without participating in it, were involvedin resistance scenarios, have experiencedfirst hand the repression of the police and thearmy. Since the first days of the new de facto regime,the women’s movement and the feministsare opposed to it, and have joined the resistancealong with the popular sectors throughout thecountry.Feminists in Resistance – a coordinationof women’s organizations, and organized andindependent feminists – emerged in the frameof the different actions of resistance. Its work focuseson defending and highlighting the rightsand struggles of women. With messages suchas “Against blows to democracy and blows towomen” they have managed to link two majornational problems, thus contributing to a morecomprehensive vision of current issues.Feminists in Resistance of Honduras haveplanned and carried out different actions togetherwith the feminists in resistance of CostaRica, Guatemala and other organizations ofCentral America and other countries. The differentorganizations that make up the nationalcoalition of <strong>Social</strong> <strong>Watch</strong> in Honduras, includingthe Centro de Estudios de la Mujer and theCentro de Estudios y Acción para el Desarrollode Honduras are involved in this initiative. nrise in the price of maize led to an increase in thecost of all products based on cornflour. In addition, acrisis arose related to the production of basic grainsas a direct consequence of the increase in the price ofagricultural supplies, which went up 80%.In order to mitigate the impact of the crisis, theGovernment has implemented some social welfaremeasures such as a mother and child voucher, aneducational voucher, and the school satchel andschool meal plans, which assist 61.4%, 41.6% and29.8% of the poorest quintile respectively. n<strong>Social</strong> <strong>Watch</strong>99Honduras
3100hungaryGovernment structure being revised0The global crisis has pushed Hungary into the worst economic decline in almost two decades. It was56100994670 partially responsible for the resignation of Premier Ferenc Gyucsany 100 earlier this year. The exportdependenteconomy has suffered from the slowdown of its main commercial partners. The social system10097is crippled by corruption, the national currency has plunged and public finances are heavily burdened byIEG of Central African Republic = 45,8 BCI of Chile = 99IEG of Chile = 61,9pension obligations. The new Premier plans to cut pensions, public sector bonuses and maternity support;to mortgage energy and transport subsidies; and to raise the age for retirement.100 100 100100 100fricana = 65,21110009810004310099ATTAC HUNGARYMatyas BenyikBasic Capabilities Index (BCI)Gender Equity Index (GEI)100100 99100BCI = 99* GEI = 70Children reachingEmpowermentUntil a few years ago, Hungary had one of the largest5th grade54budget deficits in the European Union, more than 9%45of GDP. Austerity measures introduced in 2006 cut it toone of the lowest in the EU (below 3% of GDP). However,years of mismanagement left the economy on the000brink of meltdown, and since September 2008 the situationhas grown progressively 549710099worse. The effects of100 100 100100 100100 68100the global financial crisis on the real economy 99 became Births attended by96especially severe in the last quarter of 2008 as the collapseskilled health personnelSurvival up to 5 Economic activityEducation82,4of internal and external IEG of demand Honduras dragged = 68,9downBCI of Hungría = 99,3IEG of Hungary = 69,8production, consumption, investment and employment.The political and economic crisismains crippled by corruption, heavy debt and a blackAt the same time, speculative attacks against Former Premier Gyurcsany never recovered from the economy that may account for one-fifth of GDP. Po-the forint, Hungary’s currency, knocked it down 19% riots that erupted in Autumn 2006 after he confessed litically, it is in denial. Nationalist intellectuals use theagainst the U.S. dollar and 13% against the Euro, causingthat his administration had lied repeatedly about the language of the 1930s to rail against foreign capitalinflation to soar. To avert total collapse, the Govern-state of the economy to win the country’s elections. and “cosmopolitan” influences. Viktor Orban, leaderment obtained a USD 25.1100billion bailout from the EU Although he remained 100 in office and cut the deficit of the right-wing Fidesz, 100 laments that more than 80%and the International Monetary Fund (IMF). 1from more than 9% of GDP in 2006 to 3.3% in 2008 of the financial system is “in foreigners’ hands”. HisEconomic performancethrough tax increases and spending cuts, he failed party now boasts the widest support.to win public support for wider economic reforms. The plunge of the forint 52 is particularly devastatingFollowing slow growth of 1.1% 39in 2007, Hungary’s As the economic crisis hit, his Government winchedto households. About 60% of all loans are denom-economy perked up in the first half of 2008, only to its austerity programme ever tighter, solidifying inated in foreign currencies, mainly Swiss francs.0be dragged down as its major economic partners0his position as the most NO unpopular VA premier in the0Continuing pressure on the forint heightens the dangerstumbled. GDP growth ran at about 2% in the first country’s era of electoral democracy and a marketof growing defaults on these personal loans and97 half of 2008 and 0.8%44in the third quarter. In the economy. In addition, financial circles were unhappy mortgages. Rising defaults may intensify pressure on100 100 100100 100100 72100final quarter, it fell 2.3%. This is the worst performance99 with the Cabinet’s hesitation to take decisive action the banking system and the credit crunch. 98since the 1990s, when the transition to a market in response to the economic downturn. Beset on Whatever mistakes Hungary might have made,economy brought considerable economic turmoil. every side, Gyurcsany announced his resignation at the country is also a victim of the global capitalist system.The slowdown in Germany and other marketsIEG of Mexico = 60,5 BCI of Moldavia = 0IEG of Moldova = 73,9In February <strong>2009</strong>, industrial gross output was a convention of his ruling <strong>Social</strong>ist Party (MSZP) indown 28.9% from a year earlier (25.4% after adjustmentMarch <strong>2009</strong>.for Hungary’s exports is much deeper and is likely tofor actual working days). The volume of produc-Hungary’s budget deficit makes tax reform last much longer than originally anticipated. 3 Euro-tion was 26.1% lower in the first two months of <strong>2009</strong> difficult. While many other countries are pumping pean banks are facing their own sub-prime crisis, asthan in the same period of 2008. The volume of industrialstimulus funds into their economies, Hungary is they hold most of Central and Eastern Europe’s debt.production in February plunged 4.1% from the pre-concentrating on cutting costs. Although they quar-Across Eastern and Central Europe, Austrianbanks100vious month adjusted for season and working days.The global slump cut the growth in industrial exports,which had been going from strength to strength.45In January <strong>2009</strong>, the volume of exports and importsfell by 28% and 27%, respectively, compared to January2008. Industrial export sales 0 tumbled 30.4% in thefirst two months of <strong>2009</strong>; in February it was 31.1%below February 2008. From December 2008 through100 69100February <strong>2009</strong>, unemployment jumped 1.1%, 96 to 9.1%,leaving a total of 378,000 people without jobs.* “Children reaching…” estimated following procedure “1” inp. 209.1 Ministry of Finance, 29 October 2008.100 99rel with each other, under pressure from the IMF,both the bourgeois left and the rightwing parties areadvocating neo-liberal economic policies– loweringtaxes on capital but reducing the budget deficit bydrastically curtailing social expenditures.Despite an IMF rescue 0 package, the forint hita record low in March <strong>2009</strong>. According to the latestEurostat figures, Hungary’s GDP decreased 100by 1%quarter over quarter. 2 Government forecasts that itwill shrink by 3.5% this year, but others predict afall of 5-6%. Compounding the crisis, Hungary re-2 See: < epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-1505<strong>2009</strong>-BP/EN/2-1505<strong>2009</strong>-BP-EN.PDF>.100are blamed for the financial debacle.Impacts of the crisis53After the fall of the Soviet Union, the former <strong>Social</strong>istRepublics were keen to dismantle theirState system. Hungary enthusiastically 0embracedcapitalism and championed privatization of assets.Even so, successive governments attempted to retainthe social safety net. MSZP Governments have100 6910098been particularly protective of pensioners, wary99100 99100 100 100100IEG of Poland = 70 BCI of Portugal = 99,4IEG of Portugal = 73,13 After Germany, the most important consumers of Hungariangoods are Austria, Italy, France, UK, Romania, Poland andthe US.100100National reports 100 <strong>Social</strong> <strong>Watch</strong>100 10010095
that any cuts could cause hardship among olderHungarians, who form a key <strong>Social</strong>ist voting bloc.The number of beneficiaries swelled in the early1990s as newly privatized companies dumpedworkers who had been on the state payroll. Drawinga pension became an attractive alternative tounemployment as the pensions of higher-incomeworkers give them a larger share of their wagesthan in many other countries. The average pensionruns about USD 350 a month, untaxed. This goes along way in a country where the average after-taxwage amounts to just over USD 500 a month. Menreach full retirement at 62, but can take a pensionearlier if they have 40 years of service, and havelittle financial incentive to continue working. Theaverage Hungarian retires at the age of 58, andjust 1% of Hungarians between 60 and 64 yearsold are currently working. The OECD estimatesthat Hungary’s pension outlays will be among thefastest growing in Europe in the coming decades.The country already has 3 million pensioners, outof a total population of about 10 million.Both employers and employees pay into theState pension program, but their contributions donot cover all the benefits paid. Government makesup the difference out of the central budget. Foryears, Hungary has run fiscal deficits to pay forsocial programmes; the annual tab for pensionsalone surpasses 10% of GDP. To finance theseoutlays, the Government sold bonds. In October2008, investors stopped buying those bonds. Althoughthe IMF provided an emergency bailoutso Hungary could pay its bills, many internationalinvestors pulled out, sending the Hungarian currencytumbling and darkening its economic outlook.Critics say the country cannot afford a pensionsystem that gives wage earners an incentiveto retire young or leave the work force when theyhave relatively minor ailments. The IMF, backed byHungarian reformers, is pressing particularly hardfor cuts in the “13th month,” a bonus monthlypayment made to all retirees introduced in 2003by Gyurcsany’s predecessor.After his re-election in 2006, Gyurcsanyproposed a reform of the pension system that includedeliminating the 13th-month bonus, but hewanted current retirees to get the same amountas before, spread over 12 months. He also proposedgradually raising the retirement age to 65by 2020 for women and to 68-69 by 2050 for men.Gordon Bajnai, the new premier, will probably becompelled to propose deeper cuts that could provedevastating for older Hungarians. Aging retireesare already accusing politicians of dismantling thepromises of a previous generation, leaving themdangling in the wind.In 2003, social protection expenditures accountedfor 21.4% of GDP in 2003, less than theEU average of 28%. Services related to family supportaccounted for 2.7% of GDP, and came to onlyone-fourth of the EU average per capita. The socialsystem is diversified, and includes social assistance,family support, benefits provided to peopleliving with disabilities or health injuries, the pensionsystem and social services.In 2006, the system was standardized,streamlined and its targeting was improved. Thereal value of means-tested benefits had decreaseduntil 2004, but the disbursement systems forregular social assistance and old-age allowancewere amended in 2005-06. Since then, benefits forthe poorest groups have become more generous.The basic and specialized social and child welfaresystem established over the last two decadesis complex. Programmes for individual servicesleave significant gaps in capacity and accessibility,primarily in smaller communities.The child poverty rate is approximately oneand half times the EU average. Nearly one-fifthof Hungarian children live in households with percapita income below 60% of the median. Childpoverty is usually the result of parental unemploymentand geographical disadvantages. In addition,the selection mechanisms in the educationand training system intensify the impact of familybackground on the performance of children,rather than counteract it. When parents have loweducation levels and a poor labour market positionand live in isolation, they typically transmit thesedisadvantages to their children.The Bajnai austerity programPremier Bajnai has assumed office in the midst ofthe country’s worst economic decline in almosttwo decades. To rescue the budget, keep it withinIMF guidelines and regain investors’ confidence,he plans to cut pensions, public sector bonuses,maternity support, mortgage subsidies and energyand public transport subsidies.The most striking feature of Bajnai’s initialmemorandum – which has been termed his “PoliticalManifesto” – is his insistence that the urgencyof the situation demands “immediate anddetermined action”. He warns that in July he willintroduce “unavoidable, painful measures”. Hismain goal is to save as many jobs as possible, inan effort to avoid social unrest and further divisionof Hungarian society into haves and have-nots. Healso wants to achieve relative stability for the forint,reduce the deficit and join the Eurozone as soon aspossible. To achieve these goals, he states, “thewhole government structure must be revised inorder to spend less on administration”. This wouldinclude freezing the salaries of public employees fortwo years and eliminating 13 th month bonuses forpublic employees beginning in 2010. He would alsocut national allocations to local governments.Other points in his memorandum include:• Increasing the age of retirement. At the momentit is age 62, but the actual average is around 58.Bajnai would begin reforms in 2010, includingelimination of the “13 th month”.• Reducing sickness benefits. Currently, if a doctorcertifies that people are too sick to work, theyget 70% of their pay for six months. Half of thisis paid by the employer.• Freezing child support. For years, it has been goingup. Bajnai plans to reduce childcare supportfor three years and childcare benefits for two.• Cutting subsidies. Bajnai seeks to end financialassistance temporarily for young coupleswith children who are buying a first home anddecrease subsidies on gas consumption andheating. After 2010, all subsidies would beterminated. In addition, he plans to cut allocationsfor public transportation, especially to theHungarian railroads and public radio and television.Government payments to the farmers willshrink significantly as well.While he tightens government spending, Bajnaiwants to give “first aid to mid-sized and small Hungarianbusinesses that provide two-thirds of thecountry’s jobs” by reducing the tax burden on bothemployers and employees. Last but not least, he envisionsa stimulus package funded by EU subsidiesto help the country ease the crisis and eventuallymake its way out. n<strong>Social</strong> <strong>Watch</strong> 101 Hungary
india100100 10043Breaks in the road and missed milestones100290Although several indicators show that India’s situation is not among the worst, many sectors have declined99100due to the downturn in the global economy while others have not been 100 able 68 to regain or maintain 100their9798growth trends. Thus, for instance, there has been drastically reduced growth in personal and consumerloans and industrial production. Inflation, increasing unemployment and decline in foreign institutionalIEG of Chile = 61,9 BCI of Chipre = 99,6IEG of Cyprus = 65,1investment are some additional impacts. The Government must find a balance between economicreforms to stimulate growth and the necessary relief for 250 million Indians living in extreme poverty.99 46100100 100 100100 100100<strong>Social</strong> <strong>Watch</strong> IndiaHimanshu JhaBasic Capabilities Index (BCI)Gender Equity Index (GEI)100100100BCI = 68 GEI = 41Children reachingEmpowermentContrary to the “decoupling” hypothesis, according665th gradeto which emerging economies 45would be relativelyuntouched by the global financial crisis owing to theirsubstantial foreign exchange reserves, robust corporatebalance sheets and relatively healthy banking000 8sectors, many are already feeling the impact. 1 This9947 923789includes India, which has experienced a significant100 100 68100100 100100 78 100100decline in economic growth— from a healthy 96 9.3% Births attended byin 2007 to 7.3% in 2008. For <strong>2009</strong>, the IMF forecasts skilled health personnelSurvival up to 5 Economic activityEducationa growth of 4.5%. 23 BCI of India = 68,5The collapse of the stock market in 2008 was anindication of a further deepening of the crisis, and themarkets have not been able to regain their health. Althoughit is hard to predict how things will turn out, itis clear that the Government’s initial prediction that thecountry would emerge unscathed, 100 was shortsighted.100It is important to explore the impact on India’s poor84and marginalized populations as well as the effectivenessof the Government’s responses 52 so far.0IEG of Hungary = 69,8 IEG of India = 40,7The most immediate impact of the crisis wason foreign institutional investment (FII). An outflowof USD 15 billion from the equity market wasrecorded between April 2008 and March <strong>2009</strong> ascompared to an inflow of USD 20.3 billion in thesame period in 2007–08. Other portfolio invest-100cession deepens and financial firms – traditionallylarge users of outsourcing services – arerestructured”. 8 On the other hand, for those whohave accumulated foreign exchange payment commitments,the depreciation of the rupee is not goodnews, nor does it assist in Government’s efforts toments such as American Depository Receipts/ rein in inflation. 9Global Depository Receipts registered the same The slower growth of industrial productiontrend. 4is evident from the fact that the yearly rate of expansionImpacts of the economic crisiswas 8.8% between April 2007 and Febru-The pullout of FII, which had reached USD66.5 billion at the beginning of 2008, triggered a ary 2008 but came down21drastically to 2.8% in0The downturn can be seen in lower industrial growth,0collapse in the stock market and as a result the 2008–09. 10 0The Index of Industrial Production (IIP)inflation, widening of the current account deficit, Sensex, an index of the country’s biggest enterprises,“fell from its closing peak of 20,873 on 8 Janu-to July 2008, slipped to a low of 1.7% in August,registered an average growth of 5.6% during April9629a plummeting stock market and a depreciation in100 100 7263100100 100the value of the national currency, the rupee. The ary 2008 to less than 10,000 by 17 October 2008”. 5100but recovered to a comparatively healthy 84 100100986% infinancial crisis has also been accompanied by a rise FII outflows also resulted in a dramatic devaluation September. However, the IIP registered negativein some food prices. According to the Wholesale of the rupee, which BCI of fell Marruecos from 39.99 = against 81,1 the US growth again between IEG December of Morocco 2008 = 44,8 and February<strong>2009</strong>. The growth rate of the manufacturingIEG of Moldova = 73,9Price Index (WPI), rice cost 12.8% more in March dollar in March 2008 to 52.09 per dollar in March<strong>2009</strong> than in March 2008, as compared to a global increaseof -1.0, while wheat went up 5.2% comparedto a global drop of -47.5%. Inflation went from 7.7%in March 2008 to peak at 12.9% in August 2008 (it<strong>2009</strong>. The rupee also fell against other currenciesincluding the euro (6.5%), yen (22.8%) and yuan(23.6%). 6 Although this might sound like goodnews for Indian exports, the downturn in the US,sector declined from 9.3% in 2007-2008 (April toFebruary) to a projected 2.8% in the same periodin 2008-<strong>2009</strong>. The core sector of infrastructuregrew at a rate of 3% in 2008-<strong>2009</strong> (April to February),down from 5.8% during the same period inmay be noted that the WPI fell sharply to 0.3% that EU and Middle East economies – which constitutethree quarters of India’s 91 goods and services 2007-2008. 11100100100March). The annual inflation in key commodity priceshighlights the severity of the problem. Consumerprice inflation reached 9.6–10.8% 53 during January/February <strong>2009</strong> compared to 7.3–8.8% in June 2008and 5.2–6.4% in February 2008. 30trade – translated into a lack of demand. From a24.5% growth between April 2007 and November2008, exports have declined to 17.6% in the samemonths between 2008 and <strong>2009</strong>. 7There is also a likelihood 0 that the slowdownIn addition, banks are cutting back on theircredit. Between February 2008 and February <strong>2009</strong>,the rate of growth declined substantially42from 12%to 7.5% in housing, from 13.2% to 8.5% in personalloans and from 5.9% 0 to -14.5% in consumer1 Subbarao, D. “India: Managing the Impact of the Global in the export of services will intensify “as the re- durables. 12100Financial Crisis”. Speech delivered at Confederation of Indian99 9899100 Industry 100 Annual Session, 69 26 March <strong>2009</strong>.100100 100100 7510010098 4 Ibid.972 Outlook Indi. “IMF Lowers India’s Growth Estimate to8 Subbarao, D., op. cit.4.5% for <strong>2009</strong>.” 22 April <strong>2009</strong>. Available from: < news.5 Chandrashekhar C. P. and Ghosh, J. “India and the Globaloutlookindia.com/item.aspx?658780>.Financial Crisis”. Macroscan. 2008 Available from: .BCI of Rumania = 9610 Ibid. IEG of Romania = 71,33 RBI. Macroeconomic and Monetary Development in 2008-09. Reserve Bank of India. Available from: .6 Ibid.7 Macroeconomic and Monetary Development in 2008-09.11 Ibid.12 Ibid.0National reports 102 <strong>Social</strong> <strong>Watch</strong>100 10010091
Interventions to check the downturnFollowing the G-20 Summit in November 2008, thePrime Minister set up a group under his chairmanshipto work out a detailed plan for appropriate andtimely state intervention. The Finance Minister, Industryand Commerce Minister, Deputy Chairman ofthe Planning Commission and Governor of the ReserveBank of India (RBI) were the other members ofthis group. Remedies came in the shape of “stimuluspackages,” the first announced in December 2008and the second in January <strong>2009</strong>. 13 Measures includedan additional expenditure of INR 200 billion (USD4.15 billion) covering critical rural infrastructure andsocial security schemes, a reduction in central valueadded taxes (CENVAT) by 4% across the board, specificmeasures on customs duties in sectors such assteel and cement, and tax concessions and enhancementof drawback rates for exports.Some additional measures were also adopted,including: subvention of interest rates and pre andpost shipment credit for labour-intensive exports;refinancing facilities of INR 40 billion (USD 831 million)for the National Housing Bank for the housingsector, and INR 70 billion (USD 1.5 billion) to theSmall Industry Development Bank of India for micro,small and medium enterprises, as well as authorizingthe India Infrastructure Finance Company Limited toraise INR 100 billion (USD 2.1 billion) through taxfreebonds. 14 Some monetary measures were alsoadopted by the RBI, such as the reduction in reporates (the rate at which Indians banks borrow rupeesfrom the RBI) from 9% in August 2008 to 5% in January<strong>2009</strong>, reduction of reverse repo and the reductionof the cash reserve ratio from 9% in August 2008 to5% from January <strong>2009</strong> onwards. 15However, there are some fundamental problemswith the nature, direction and anticipated effects ofthese packages. One is that the amount allocatedis grossly inadequate, if one takes into account thefact that the total stimulus amount of INR 311 billion(USD 6.5 billion) is a mere 0.8% of GDP. Moreover,there is ambiguity about the sectors in which the additionalamount of INR 200 billion (USD 4.2 billion)is to be spent. There is already a backlog of almosteight months on actual expenditure. Adding morefunds with such an existing backlog makes it difficultfor the expenditure to be timely. 16Central budget allocations for development declinedfrom 7.5% in 2002–03 to 6.0% in 2007–08under the rules of the Fiscal Responsibility and BudgetManagement Act. The budget allocation for developmentin 2008–09 is about 6.8% of GDP; it has tobe raised to at least 7.5% to have an overall impact,which means that “additional expenditure should bein the tune of around INR 400 billion (USD 8.3 billion)instead of INR 200 billion (USD 4.1 billion)”. 17Reduction in CENVAT by 4% means that this willonly apply to products with a duty of more than 4%,which entails a boost to consumer demand mainlyfor durable and luxury goods. In addition, it has beenpointed out that this “will have an impact in terms ofsupporting economic activity only if producers respondby cutting prices and such price cuts generatedemand responses”. 18 This does not seem to work.For instance, in the aviation industry, the cut in fuelprices did not translate into the reduction of prices toconsumers as expected.There have been numerous demands for a massivepublic investment programme spent on socialand economic infrastructure, providing employmentand expanding domestic demand.Job losses and the social security challengeLoss of employment in many of the key sectors posesa serious challenge to an already minimalist socialsecurity policy. A sample survey of export-related industriescarried out by the Department of Commercereveals some 109,513 job losses during the periodAugust 2008–January <strong>2009</strong>. Similarly, the Ministryof Employment carried out a survey of importantsectors such as automobile manufacturing, mining,textiles, metals, gems and jewellery, which togethercontributed to more than 60% of GDP in 2007–2008,revealing that about half a million workers lost theirjobs during October–December 2008.This poses a serious social security challengesince out of the total workforce of 457.5 million,422.6 million are categorized as unorganized or unprotected.Of these, 393.5 million are in the informalsector and merely 29.2 million are in the formal sector.Around 38% of this unprotected workforce ismade up of women. 19ConclusionThe citizens of India have shown their confidence andtrust in voting back the current United ProgressiveAlliance for a second term. However, the challengefor the current Government is to strike a judiciousbalance between its ongoing economic reformagenda and providing social and economic reliefto the 250 million Indians who, according to WorldBank statistics, are still living in extreme poverty. 20The current crisis poses a new set of problems for acountry already suffering from massive inequalitiesand alarming levels of hunger and malnutrition. 21 n13 Government of India. “Additional Government Measures forStimulating the Economy.” Press release. 2 January <strong>2009</strong>,and “Further Concessions in Central Excise and Service TaxAnnounced.” Press release. 24 February <strong>2009</strong>.14 Ibid.15 Ibid.16 EPW Research Foundation. “Stimulus Packages FacingInstitutional Constraints”. Economic and Political Weekly,44(04), 24 January <strong>2009</strong>.17 Ibid.18 Ghosh, J.. “Weak Stimulus”. Frontline, 22 January <strong>2009</strong>.19 Government of India. “Unorganized Manufacturing Sectorin India: Input, Output and Value Added.” National SampleSurvey <strong>Report</strong> 526. Ministry of Statistics and ProgrammeImplementation. <strong>2009</strong>20 Chen, S. and Ravallion, M. (). “The Developing World isPoorer than We Thought, But No Less Successful in the Fightagainst Poverty.” Policy Research Working Paper 4703.Washington, DC: World Bank. 2008.21 According to IFPRI (2008), India is home to the world’slargest food insecure population, with more than 200 millionpeople who are hungry. The report shows that strongeconomic growth has not translated into lower hunger levels.<strong>Social</strong> <strong>Watch</strong> 103 India
iraq100100 98Women’s empowerment: 29 a misunderstood process100430The 2005 Iraqi Constitution100strove to include a number of positive measures for women’s empowerment;100however, a culture of equality of access and opportunity is needed 100in addition64to legislation. During 1009897this transition period, women have not only lost most of the benefits hitherto provided by the State;BCI ofthey are disproportionately affected by the shrinking of the State’s power, IEG the of insecurity Czech Rep. arising = 68,1 fromIEG of Cyprus = 65,1República Checa = 99,2political instability, the breakdown of economic activities due to the war; and the deterioration of socialstructures. Increased violence against women requires urgent intervention from all actors in society.100100 100 68100100 10000100792Amal Shlash 1Basic Capabilities Index (BCI)the market may provide new opportunities in the100private sector, but it will 100also increase competitionBCI = 88*81 Children reaching for jobs and require skills that the education system5th gradeimparts unequally. In addition, there will be fewerjobs for women in the public sector. Article 23 ofthe 2005 Constitution guarantees “the right of theIraqi to ownership” without any discrimination0based on gender. Although NO VA0no data exist to measureownership of such assets as land, property and89 99businesses, it is safe to say that women in general100 100100possess fewer financial assets than men. For example,the vast majority of land and housing unitsIEG of India = 40,7 BCI of Irak = 88,4are registered in the IEG names of Iraq of men, = 0and men clearly100Experience in many countries has shown that transitionto democratic rule can help remove institutionaland cultural obstacles to women’s empowerment.For this to happen, however, women must themselvesadvocate for equal rights. Moreover, while0 8emerging democracies have the opportunity to0reform societies by establishing 37 basic freedoms,95democratic government, free markets and human100 100 78 100100 100rights, the insecurity associated with conflict can Births attended byundermine such important outcomes. When transitionskilled health personnelSurvival up to 5takes place in the midst of a conflict, theneedfor a stable democratic system becomes the mainpriority and can eclipse the imperative of equality. Ifthat happens, the transitional phase may increase,rather than decrease, the prevalence of gender inequality.then no longer fulfil its responsibilities or providekey services in the transitional economy. Neitherthe private sector nor civil society has been able todominate in private sector ownership and management.Female heads of household – this is 11% ofthe total households – also own fewer assets thanother women.step in to provide such services, and women havelost most of their social benefits, including statesponsoredchildcare.The new Constitution of 2005 strove to include aWomen’s personal status100100100The State’s role and transitionSince the establishment of modern Iraq, the State has64number of positive measures for women. Womencreated opportunities for the institutional empowermentof women through wider access to education, and assetsfor example (Article 18). 34 However it contains aDevelopment indicators, employment may pass now on their nationality to their children,health services and job training.21Their professional0levels have risen, especially in the more socially acceptedThe imposition of sanctions and the growing politicaland economic crisis, with the insecurity and0number of articles, clauses and implications that0could be considered discriminatory. For instance,fields of education and health services. For conflict it has bred since 1990, have meant that Article 41 states that “Iraqis are free to abide by their9629instance, in the period 1997–2004, 68% of teacherswere women, and the overall rate of 84100100women have not 48fared well compared 86 to men in personal status according to their religion, beliefs,100 100 100100 100100 68women’s recent decades. They are worse off on several key doctrines 92 or choices”, which may allow for different,1participation as medical staff was 30–60%. Before2003, women represented IEG 46% of Morocco of public = sector 44,8 employees,and were the main providers of services andsocial benefits in health and education, especially inareas benefiting women. Yet the State has shown noreal awareness that empowerment is not achievedsolely through enacting legislation but comes abouthuman development indicators. In 2007, althoughwomen’s life expectancy BCI of Mozambique (62) was much = 66,1 higher thanthat of men (55), 30% of women aged 15 and upwere illiterate compared to 14% of men. Combinedschool enrolment rates (primary, intermediateand secondary) were 55% for females and 68%for males. Unemployment rates were also higherinterpretations of Islamic Sharia, resulting in barriersto legal equality, IEG especially of Mozambique in matters = 64,4 of civilcode such as marriage and divorce. Varying interpretationscould set up different practices in differentprovinces, in rural and urban populations or amongmembers of different religions. These provisions areseen as a step backwards when compared with theonly when society puts these laws into practice – among women: 23% compared to 16%. Women’s provisions of Law No. 188/1959, which regulate all100100 96100which 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 accessand opportunity.Transitional stages often42entail a review of therole of state institutions and mechanisms in order towork constitutes 60% of total working hours perweek for women and only 22% for men. This helpsexplain their low income, as agricultural work forwomen is known to be mostly unpaid and of lowerguardianship and custody of children for all Iraqis,regardless of sect. 2 Indeed, Article 41 of the Constitutioncontradicts the fundamental guarantee foundin Article 14 of the Law that “Iraqis are equal beforebetter adjust to realities and 0enhance equality among productivity. In 2007 the Human 0 Development Index the law with no discrimination 0NO VA 0,0because of gender or0,0citizens. However, reforms in Iraq have been accompaniedfor Iraq was 0.627, while the Gender Development98by the dismantling of the State, which could Index was 99 0.584.99100100 100 75100100 100In general, the rate of women’s participation97in Iraqi economic activity is considerably lower2 This law – which included the right to retain the marital home100 100after the divorce for a period of three years, equal marriageage for female and male, equating the dowry of women in* There are no available data on GEI.than men’s participation (21% compared to 79% divorce with the price of gold at the time of divorce, and1 Lead author of “Iraq: National IEG of <strong>Report</strong> Romania on the Status = 71,3 of HumanBCI of Serbia = 98,1requiring the husband IEG to prove of Serbia financial = ability 0 to maintainin 2004). The transition towards an open marketDevelopment 2008.” This article is based on facts anda second wife before contracting a polygamous marriage –analysis of that report, which is available at .more challenges for Iraqi women. The opening of detrimental to women.100BBInformes nacionales 104 <strong>Social</strong> <strong>Watch</strong>100 10010092
ace”. Such a contradiction compromises the unityof universally applicable legislation.When it comes to providing protection for, andprohibiting violence against, women, constitutionaland legal provisions alike may be inadequate. TheConstitution, for example, does not refer specificallyto women when it addresses the issue of violencein the chapter on rights. Article 4 does notconsider marital violence as a specific crime. Article44 states that “the Iraqi is free to move, travel andreside inside or outside Iraq”, but in practice thelaw does not allow a woman under 40 to obtaina passport without the permission of a guardian.Another example is that women have the right toequal wages, but the law does not provide bindingprovisions to guarantee equal promotion. Thus,even where the Constitution provides for de jurenon-discrimination against women, legal, socialand cultural factors often represent de facto obstaclesin the way. The legal and legislative climatein the Kurdistan Region seems to be more positivetowards women. For example, the Personal StatusAct No. 188, drafted in 1959 but considered progressivefor its time, is being applied there, and theCommission on Women’s Affairs has succeeded inintroducing some amendments. In 2007, additionalconditions were imposed in cases of polygamy, femalecircumcision was prohibited and regulationsconcerning divorce were changed to make themmore favourable to women.In 1986, Iraq ratified the Convention on theElimination of All Forms of Discrimination againstWomen (CEDAW), with reservations to Articles2, 9 and 29. Those reservations effectively nullifythe Convention’s provisions for equality betweenwomen and men. Since the beginning of thetransition in 2003, women’s organizations havetried without success to have these reservationsremoved. The Constitution further does not includeany article acknowledging the ratification ofinternational conventions as binding. In any case,the new regime has rejected commitments to internationalconventions ratified by its predecessor,in particular CEDAW, on the basis of contradictionwith the Sharia. 3Bringing women into decision-makingA quota system for women in political life was introducedin 2003 and the new Constitution alsoprovides for affirmative action, granting in Article49 a quota for women of no less than 25% of theseats in Parliament. Electoral Law No. 6 of 2005 alsostipulates that election candidate lists should abideby this quota. In the 2005 elections, women gained87 out of 275 seats in the National Assembly (31%).In local council elections from closed electoral lists3 The same rejection applies to UN Security Council Resolution1325 on women, peace and security.they gained 28% of seats. Additionally, adherence tothe quota system significantly raised the number ofwomen elected to governing councils. Since 2003,the number of women in administrative decisionmakingpositions has increased from 12.7% to22.4%. Although they represented only 2% of thejudiciary in 2006, they fared better in the executive.In 2006, there were four female cabinet ministers,and 342 high-ranking officials, including 8 undersecretaries,33 counsellors and inspectors general,86 directors general, and 215 assistant directorsgeneral. However it should be noted that the hurdleswomen have to surmount to reach and retain theseopportunities are higher and more numerous.A legacy of cultural restrictionsFor women, cultural heritage – which is formed bytradition rather than by religion – is one of the basicreferences in forming notions of acceptable conduct.A stereotypical image of women has lasted for centuriesbecause the State, throughout its history, hashelped perpetuate it to avoid entering into conflictwith society and its religious and cultural leaders.So ingrained has this image become that, as severalstudies have shown, the view some women hold oftheir own sex is not altogether different from thatheld by men.Women’s acceptance of this false image providesthe State with the rationale to delay enactinglegislation that would improve their situation. Theirseclusion is also justified by society as a means ofensuring their protection. In this way, the family remainsthe most resistant pocket of cultural bigotryagainst women, where male violence is accepted as adisciplinary or preventive right. For instance, a reportby the Ministry of Human Rights in the KurdistanRegion indicates that 239 women were driven to setfire to themselves during the first 8 months of 2006.This situation is not very different in other areas, andhonour-related murders are common in the centreand south of Iraq. It is probable that such practiceshave been under-reported owing to the undevelopedmonitoring capabilities of women’s organizations aswell as to media biases.ConclusionsThe empowerment of Iraqi women should be anoverarching goal, not a side objective, as womenhave an equal part to play in overall economic, politicaland social development. Yet evidence shows thatIraqi women are disproportionately affected by theshrinking of the State’s power, the insecurity arisingfrom political instability, the breakdown of economicactivities and the deterioration of social structures, allresulting from ongoing conflicts. Increased violenceagainst women is currently the most dangerous consequenceof the transition and requires urgent interventionfrom all actors in society. Seeking protection,women have retreated to their community, sect ortribe, thus reversing the gains of almost a century ofmodernization undertaken by the State itself.Lack of security has hampered progress in humandevelopment and damaged mechanisms forgenuine empowerment. But there is still an opportunityto improve the situation of women. The specificresponsibilities of the State include to:• Amend laws (and the Constitution) to eliminateprovisions, omissions and contradictions thatperpetuate discrimination.• Ensure freedom of opinion to encourage publicdebate and dialogue; there is a need for publicconsciousness-raising campaigns and deepchanges in media stereotypes of women.• Create a new labour environment that sets asidethe present division of labour based on limitedroles for women and their restriction as workersto sectors of weak productivity.• Confront the culture of domination and marginalizationand disseminate a culture of peace andtolerance to eliminate violence against womenin all its forms and put an end to its perpetuationas part of accepted culture.• Open up new opportunities through reform ofthe lending system in public banks, by liftingthe requirement for real estate as collateraland by encouraging women-friendly bankingservices.• Reform educational systems and curriculato change society’s perceptions of violenceagainst women, and instil a sense of commonresponsibility for ending it.• Expand access to micro-credit projects andhome-based work for women with limited educationand training, rural women, the elderly,and widows supporting families.By taking a firm stand on a culture of humanrights, equal opportunities and gender equality,the Government could dispatch the centuries-oldculture of discrimination against women in Iraqfor good. n<strong>Social</strong> <strong>Watch</strong> 105 Iraq
italy10043A weak and inadequate response0Government intervention to support those financial institutions exposed 25to the fluctuations in97international markets confirms 74 that Italian banks have been in difficulties 100 since the beginning 100 of the9791global financial crisis. The worst consequence of the crisis so far is the shrinking of the credit market.IEG of Czech In Rep. a country = 68,1 where 90% of businesses ICB de Egipto are = of 89,1 medium or small size, the Government’s IEG of Egypt = 43,9 response hasbeen quantitatively and qualitatively insufficient. There is a need for different policies that adequatelydistribute the resources to fight poverty and protect workers.100100 10064100100 100100097100015100Italian <strong>Social</strong> <strong>Watch</strong> CoalitionJason Nardi, Tommaso Rondinella (Lunaria),Elisa Bacciotti (Ucodep), Andrea 100 Baranes (CRBM),Sergio Giovagnoli (ARCI), Giulio Sensi (Mani Tese),Sabina Siniscalchi (FCRE)Basic Capabilities Index (BCI)100 100BCI = 99+ GEI = 65Children reaching5th gradeGender Equity Index (GEI)100EmpowermentAlthough the Italian Government has tried to instilconfidence by claiming that the country will not only0remain untouched by the NO crisis VA0but even come out of0it stronger, the evidence to the contrary is undeniable.While the Government has not yet needed to save9599100100 100 100100 100any banks, this has not prevented the credit crunch Births attended byfrom harming families and enterprises. Figures from skilled health personnelSurvival up to 5Istat, the National Institute for Statistics, show thatduring 2008 unemployment reached 7.1%, up from6.4% the previous year, and that between Januaryand February <strong>2009</strong>, 370,561 workers lost their jobs– an increase of 46% compared to the same periodin 2008.With regards to the industrial 100 sector, the ItalianConfederation of Workers Unions (CISL) 2008 reporthighlights that there are 900,000 jobs at risk, 1 whilestudies done by the Italian Labour General Confederation(CGIL) project an unemployment 34 rate of 9%at the end of <strong>2009</strong> and up to 10.1% in 2010. 2 Another0significant indicator of the impact of the crisis isthat, for the first time in Italy, immigrants are facingproblems getting work, particularly in the north-east.100 68 100According to 92the CGIA (the association of artisansand small industrialists) in the Veneto Region, 24%of those unemployed during January <strong>2009</strong> were immigrantsfrom outside the EU. 3The cracks in the financial systemThe message that politicians and financial agentshave been repeating for months in order to reassuresavers and markets is that Italian banks and100the financial system are healthy and not subject tothe risks of failure and collapse that hit some othercountries. A closer look, however, reveals that thesituation is more complex. In 2008, the Italian stockexchange lost 49% of its value, and it kept goingdown in <strong>2009</strong>. 4 Credit institutions, 0 representing55100 10097Economic activityEducationIEG of Iraq = 0 BCI of Italia = 99,5IEG of Italy = 64,5nearly 30% of Italian stock exchange capitalization,have been hit the hardest.Even though the Italian financial system was notas deeply immersed in speculative activities as thoseof the United States and Great Britain, Italian bankspursued aggressive expansion 100 policies, in particularbuying other financial institutions in Eastern Europe.And the difficulties they currently 73 experience havebeen confirmed by the intervention of the Governmentin support of those major banking groups mostThe most severely hit by this crunch are migrants,precarious workers, young people and othersectors of society that were already considered nonbankableprior to the crisis. It is also affecting families.The result is a dramatic increase in non-bankborrowing at high levels 100 of interest, particularly in thesouth, where the number of over-indebted familieshas increased by 69.4% in the last year and recourseto such loans increased by 48.2%. 6Government measures to revitalize the lendingexposed to international markets.system do not seem to have had any effect. Banks00During the past few years there has been continuousare using the new measures NO VA 0,0 to improve their bottomshifting of the pension system to one man-line and assets without broadening lending chan-90aged by private 57 pension funds. Due to the financial nels. Similarly, the reduction in interest rates by the100 100crisis, 5.9% of savings managed by pension funds European Central Bank has translated into increasedwere cancelled in 2008. Open-end funds, usually profits for the Italian banks rather than improvedriskier, registered BCI of a Myanmar, loss of 8.6%. 5 In most cases, access to credit for their clients.these workers’ Birmania savings o simply Burma disappeared. = 73.2Italy is a country in which the transfer of incomefrom labour to profits has been most evident. ThisShrinking creditThe worst consequence of the financial crisis so farhas been the reduction in the availability of credit.Several banks have significantly reduced access totrend, common to most Western economies, hasmeant a shift of 8 points of GDP (EUR 120 billion) 7 inItaly from workers to enterprise profits, leading to aprogressive “financialization” of the economy.86100 100 100,1IEG of Mozambique = 64,4 IEG of Burma = 0100 98100credit, particularly for small enterprises, the mostimportant part of the Italian system of production. Government responsesThe situation is aggravated by the fact that many After a brief parliamentary discussion, an “anti-crisisbanks have been progressively shifting their business42decree” was made law on 28 January <strong>2009</strong>. Thefrom the traditional activity of collecting sav-measures adopted to deal with the recession areNO VA 0,0ings to fund productive activities 0 towards financial completely deficient for 0two reasons. First, the allocatedresources are insufficient, especially when0,0operations. Only half of their revenues now come99from credit 100 activity, while commissions and 99financialcompared with other European countries (EUR 5 1001 See: .deals constitute the other half.billion in Italy versus EUR 60 billion in97Germany,2 See: .EUR 38 billion in Spain, EUR 26 billion in France and3 Cgia. Available from: .5 Felice Roberto Pizzuti, on data by COVIP. Available from:6 Associazione Contribuenti Italiani. Sportello Antiusura. See:4 See: .7 AMECO data, elaborated in Travaglino,<strong>2009</strong>.042100100National reports 106 <strong>Social</strong> <strong>Watch</strong>100 100100
EUR 22 billion in Great Britain). Second, they willnot strengthen the system of production. Especiallyproblematic is the downplaying of the fight againsttax evasion – a phenomenon with disturbing dimensionsin Italy at approximately 18% of GDP, whichmeans that more than EUR 100 billion in revenue islost every year. 8FamiliesThe most important measures are single paymentsand cheques for low-income families. Additions tofamily income are welcome by those who receivethem, but 40 euros per month (the value of the socalled“social card”) can neither cover their expensesnor protect them from present and future problems.LabourMeasures proposed by the Government are creditaids and redundancy funds for the largest enterprises.As about 90% of Italian businesses are ofmedium or small size, however, most enterprisesand workers will not be able to access this support.Moreover, the sector that benefits the most is the automobileindustry. Around the world, most countrieshelp this sector and Italy is no different; however,the Government should have tied the transfers toinvestments in environmental sustainability and innovation.Besides, there are other sectors, such asgarments, that need urgent help (in particular to supporttheir exports and the internal demand) for themto remain competitive.WelfareWelfare money transfers have not been set out aspolicy. This means that the Government is giving outmoney without implementing safety nets, active labourpolicies, social inclusion, promotion, vocationaltraining, etc. In the near future, there will be scoresof unemployed workers lacking structures that couldguarantee basic services for a decent life. At the sametime, in order not to face budgetary problems, theGovernment has reduced specific funds for socialpolicies, self-sufficiency, local public transport andthe inclusion of migrants.FinanceThe so-called Tremonti bonds, named after the Ministerof Economy and Finance, are in essence publicloans that can be used by the banks in order tostrengthen their financial statements. The goal is tore-launch the credit system, particularly for mediumand small enterprises. The effects of this have yetto be seen.Other measuresThe Government’s plans for the future include cuttingresources for research and development and investingin nuclear power. Measures supposed to stimulatedemand are investments in high-speed transportand the huge Bridge on the Straits of Messina, as8 Pisani, S. and Polito, C (eds.). Analisi dell’evasione fondatasui dati IRAP Anni 1998-2002. Agenzia delle Entrate, 2006.Available from: .well as loosening environmental legislation and permitsfor the private building industry. No attention isgiven to renewable energy, emission reduction or thehundreds of small infrastructure projects the countryurgently needs.Apart from anti-crisis measures, the Governmentis proposing a very short consultation on thewelfare model. The agenda includes some worryingproposals, such as pushing for further labourflexibility; a shift towards “workfare” models; thetreatment of immigration as a problem, and not asa resource; and lack of recognition for the non-profitsector as a key actor in the Italian welfare system,making reference only to volunteers and ignoring therole of thousands of social enterprises.Proposals from the Italian <strong>Social</strong> <strong>Watch</strong>CoalitionIn order to offer a different response to the crisisand re-launch the Italian economy from the startingpoint of those who are most affected by it, the <strong>Social</strong><strong>Watch</strong> Italian Coalition is proposing a number ofmeasures:Family and welfareThe key words should be “fighting poverty and redistributingresources”. A real welfare policy throughpublic services benefits for those who really needhelp, rather than direct money transfers, is the maintool to guarantee redistribution of resources withinsociety. The Government, at the central and local level,has to improve basic services, health, assistance,day nurseries, public schools, migrant inclusion andhousing policies since these measures represent thereal struggle against poverty and vulnerability, aswell as a counter-cyclical economic policy to workagainst the effects of the crisis.LabourThe moral imperative for every government is toprevent the main consequences of the crisis fallingon the workers. Priority measures include defendingthe less protected workers from a contractualpoint of view, through the activation of both a socialsecurity cushion plan for precarious workers andincentives for companies that decide to retain theiremployees.To shape a different economy, support is urgentlyneeded to enable the public and private researchsectors to embark on innovative processes.Moreover, a massive investment plan on renewableenergies is essential in order to reduce dependencyon fossil fuels, fight against climate change and supportthose sustainable economic sectors that lookto the future.In response to the crisis, more and more accountholders in Italy are entering the world of ethicalfinance. The ethical finance client cares about howhis own money is used, but also about his bank goingbankrupt. Many banks today are thus multiplyingtheir efforts to improve their reputations. Returningto the original mandate of the banking system to sustainthe real economy has to be a constant referencefor finding a way out of the crisis.The dismantling of developmentcooperationThe Ministry of Foreign Affairs’ guidelines for developmentcooperation <strong>2009</strong>–2011 establish clearpriorities. 9 Sub-Saharan Africa will receive 50% ofbilateral funding with priority countries identified foreach region. Agriculture, water and the environment,global health, education and governance will be – inthat order – at the centre of Italian international cooperation,with gender and the rights of children andpeople with disabilities as cross-cutting issues.These issues are at the centre of Italy’s developmentagenda for the <strong>2009</strong> G8, which it is hosting. 10However, despite these ambitious statements, Italiandevelopment cooperation is at a historic low. Ifoverseas development assistance (ODA) stalled at0.20% of GDP in 2008, 11 according to the budget for<strong>2009</strong> resources for ODA will be reduced by 56%, goingfrom EUR 733 million in 2008 to EUR 322 millionin <strong>2009</strong>. These amounts will again be reduced in thenext two years to EUR 215 million in 2011. 12 NGOsand analysts agree that the ODA commitment for<strong>2009</strong> could be as low as 0.09% of GDP unless newresources are added. 13 This is a far cry not only fromthe general objective of 0.7%, but also from the Europeancommitment of 0.51% that Italy should reachby 2010. On the way to the G8, Italy has also tried toadvance a new aid accountability concept that seeksto track down the contributions made by “the Italiansystem as a whole” (State, local authorities, nonprofitactors, foundations and private firms), thusminimizing the importance of ODA, as a way to hidethe country’s poor record in keeping its promises.NGOs will suffer particularly from this trend,since their resources will be halved. In addition,funds for international organizations have been cutby 68%, risking failure to fulfil most Italian commitmentsto the United Nations. Particularly at risk is thefinancing for the Global Fund to Fight Aids, Tuberculosisand Malaria, which the Government promotedat the G8 meeting in Genoa in 2001.Moreover, scarce Italian aid is still far from beingefficient and remains strongly tied to the purchaseof Italian goods and services, as underlinedin the recent OECD-DAC Aid peer review. Italianexternal policies need serious revision. The Governmentmust understand the fundamental role playedby development cooperation in building a country’sreputation. n9 Ministry of Foreign Affairs. La cooperazione italianaallo sviluppo nel triennio <strong>2009</strong>-2011. Available from:.10 See: .11 OECD-DAC. “Development Aid at its highest level ever in2008”, Paris, 30 March <strong>2009</strong>.12 La cooperazione italiana allo sviluppo nel triennio <strong>2009</strong>-2011.13 See: Viciani, I. and de Fraia, L. (eds.). Aiuto pubblico allosviluppo italiano nel <strong>2009</strong>. Previsione dopo la finanziaria.ActionAid. <strong>2009</strong> .<strong>Social</strong> <strong>Watch</strong> 107 Italy
kenya10010052Neo-liberal orthodoxy and the ostrich game6010025000Neo-liberal capitalism has lost its 28 reason to exist. It is a structural crisis of liberal democracy, but in9851935462100 100 Kenya the 100 Government 100 is in denial, playing the game 100 of the ostrich, 100 burying its head in the 100 sand.99The governing elite argues that the crisis is circumstancial and that the national economy is shelteredenough by its weak ties with international capital. Kenyan civil society keeps warning that, contrary to,1 IEG of El Salvador = 67,5 BCI of Eritrea = 60,2IEG of Eritrea = 47,1the Government’s predictions, the country is about to sink in the turbulent waters of neo-liberalism.100100<strong>Social</strong> Development NetworkProf. Edward OyugiPhilip Thigo100SEATINI KENYAIEG of = 47,3Oduor OngwenKenya Debt Relief NetworkWahu KaaraBEACONRebecca TanuiDaraja-Civic Initiatives Forum 0Don BonyoFuta Magendo ChaptersNO VAAyoma MatungaMazira FoundationEddy OrindaHaki ElimuOpiata OdindoKenya Land AllianceOdenda LumumbaMigori ClanWilliam JanakKETAMJames KamauKenya-Cuba Friendship Association 100Basic Capabilities Index (BCI)100BCI = 71 GEI = 5983 Children reaching5th grade100 100 100100 100Births attended byskilled health personnelSurvival up to 50BCI of Kenya = 71Kenya is more than familiar with stock promotions,Ponzi schemes, structured asset destructionthrough inflation that has had a lot to do withasset-stripping through fraudulent privatization,debt peonage, corporate conmanship and blatantdispossession of assets, 100 as the case of rampantraiding of the National <strong>Social</strong> 83Security Fund (NSSF)Gender Equity Index (GEI)Economic activityEmpowerment42 8898100 81100100851000EducationMwandawiro MgangaIt was reported that the NSSF rejected an offer ofBunge la Mwananchidemonstrates. This eventually led to parastatal collapsesand decimation of stock through credit and accepted that of KES 1.3 billion (USD 17.53 million)KES 1.4 billion (USD 18.88 million) for the plot andGeorge NyongesaChildFund Africa RegionAndiwo Obondohshare manipulation by unscrupulous capital market after the lower bidder offered a kickback to trusteesUndugu Society of Kenya23insiders, like Suntra Investments, Nyaga Brokers to the tune of KES 650 million (USD 8.77 million).9Alloys Opiyo000Ltd, Francis Thuo Ltd and others.The Fund’s management denied this but in July 2008The NSSF was established in 1966 as a mandatoryprovident fund for employees in Kenya. Although the Managing Trustee 47 to pave way for investigations 100the Minister for Labour dissolved the Board and fired3594 Thirty years of unfettered, 57 free-market capitalism,100 100 74 100100 81 100100 77 100100based on the neo-liberal model, can no longer obscureboth employees and employers each contribute only into this and other scandals. In September 2008 itthe 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 KEShas run out.its sheer size, chalked up a cumulative portfolio of 1 billion (USD 13.49 million) in Discount SecurityIEG of Nepal = 51,2Commoditization and privatization of public more than KES 80ICBbillionde Nigeria(USD 1.08= 66,3IEG of Niger = 44,4billion) or about – a stock brokerage firm that collapsed and was associatedassets hitherto considered essential to prosperityhas led to the transfer of assets from the public andpopular realms to the private and class-privilegeddomains. The resultant predatory and speculative8.2% of the country’s GDP. It continues to be used bythe Government as a gravy train for its close associates,forgetting that it is a contractual savings andinvestment support scheme for supporting old-agewith a former Managing Trustee of NSSF.The lie that the neo-liberal state must, as a matter ofstrategic efficacy, give the market a wide berth hasbeen laid bare by the fact that instead of maximizingfinancialisation of trade transactions has led to the retirement. Originally a department in the Ministry its effectiveness away from the market, it has been100100100steep rise in the daily turnover of financial transactionsof Labour, the NSSF was elevated to a stand-alone assigned the role of a prime agent of redistributivein international markets, which rose from USD2.3 billion in 1983 to USD 130 billion in 2001. No43wonder, the accompanying deregulation allowedfinancial systems to assume centre stage in redistributiveparastatal in 1987. Since then the pensioners haveknown nothing but melancholy.In the run up to the first multiparty elections in251991-92, the NSSF was used as the main source ofpolicies, reversing the flow of 74resources from upperto lower classes that can only be associated with theera of embedded liberalism; effectively subsidizingthe rich in society through confiscatory deflationactivity through speculation, 0 predation, out-slush funds for oiling the 0 campaign machinery for practices. 10right fraud and thievery. Stimulus plans may be technicalsteps in the right direction, particularly if they party. Pensioners’ money was funneled 86out of the Velvet glove treatment for criminalsthe then ruling Kenya African National Union (KANU)100335899100 100 71have the virtues of working bottom-up rather 82 100100 100100 100100than Fund in order to fund dubious real estate deals that Nowhere is this more starkly demonstrated than in98top-down through the inert banking system. Essentially,created instant billionaires among youngsters then the public fraud that was the Initial Public Offer (IPO)however, they remain technical fixes designed known as “Youth for KANU ’92”. It continued to be aIEG of Slovenia = 65,1BCI of Somalia = 47,8IEG of Spain = 76,9to pump up demand and get consumers shopping cash cow for the politically connected and got to the1 See: Wade, R. Governing the Market: Economic Theoryagain 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.IEG of Kenya = 59lion) through a Euro Bank scam to finance the presidentialcampaign.In a new election the NSSF, true to character,regained its notorious profile. A commercial plot adjacentto the equally scandal-ridden Laico (formerlyGrand) Regency Hotel 100 was sold to a lower bidder.11National reports 108 <strong>Social</strong> <strong>Watch</strong>100 100100
of Safaricom shares. Despite voices of dissent comingfrom the civil society watchdogs as well as theOrange Democratic Movement (ODM) – the principalcoalition partner in the Kibaki administration – theKenyan Government decided to offload 25% of itsshares in Safaricom, a mobile telephony company,to raise the badly needed KES 50 billion (USD 674million) to bridge its budget deficit.Two concerns arise. First, how could a facelessand foreign company known as Mobitelea came toown 10% and then 5% of a public company in Kenyaand, even more perplexing, how could it be that thisforeign company never paid a single cent to haveshares in Safaricom? Second, when the Governmentoffered to offload 25% of its shares in Safaricom, thepublic was made to believe that these shares wouldmake ordinary Kenyans own the company. However,when Safaricom was finally on sale, they had no firstright of refusal. They had to compete with the rest ofEast Africans while a whopping 35% of the government’s25% shares on offer had been reserved forsome faceless foreign investors. It is believed thatthese investors are local oligarchs with substantialinterest in offshore companies. As if that was notenough swindle, the IPO (the first offering to thepublic of the company’s shares on the stock market)was grossly oversubscribed. In the end, Safaricom’sstock brokers had to refund a whopping KES 236billion (USD 3,183 million) of which KES 119 billion(USD 1.6 billion) was due to local people. Now closeto one year down the line, a majority of the applicants(a staggering majority of them being ordinary peoplewho got bank loans) are yet to receive their refunds,while Safaricom shares fell by more than 50% in theweek of 9 March <strong>2009</strong>.In the recent past, the Nairobi Stock Exchange(NSE) has witnessed a surge of rogue stock brokers.In less than two years, four of such firms have hadto fold up following fraudulent activities and outrighttheft of clients’ investment funds. The first tocome to light was Francis Thuo Stock Brokers whowere suspended from the NSE in 2007. It shouldbe noted that the owner, Francis Thuo, was a longservingchairman of the NSE. At the time FrancisThuo brokers were suspended, several complaintswere raised about another firm – Nyaga Stock Brokers– to the Capital Markets Authority (CMA), theregulatory body. But nothing was done. Finally, thelocal press in March 2008 published that Nyaga’soperating capital was not only negative but also thefirm had been using gains made from illegally tradingin clients’ shares to prop up its operating capital; theNSE feigned surprise and quickly moved to create aKES 100 million (USD 1.4 million) bailout packageto cushion the affected clients. The matter was thenswept under the carpet. Nobody at Nyaga or FrancisThuo has to date faced any criminal charges.In quick succession, Discount Securities andSuntra Investments have followed suit. The velvetglove treatment accorded these criminal firms notonly attests to the nature of the rampancy of malpracticesin the NSE but, more importantly, to abuseof the touted free and efficient market. A section ofcivil society has consistently demanded that a marketdealing in public funds of this magnitude needs astrong, efficient and independent regulator. The CMAdoes not qualify: it is obsessed with maintaining statusquo, leaving rogue brokers to rule the roost withtheir perpetual power plays and manipulations.In the last 20 years, no less than 20 privatecommercial banks have gone under with depositors’fortunes – mainly those of pensioners and informalsector savers – estimated at KES 70 billion (USD944 million). Among the private banks and financialinstitutions that collapsed with depositors’ fundsare Rural Urban Finance Company, Jimba Credit Finance(owned by the Nairobi Stock Exchange, JimnaMbaru), Trade Bank, Trust Bank, Continental Bank(owned by close associates of President Kibaki) andEuro Bank. In Kenya, these perpetrators continue tobe appointed to high public office. On 16 December2008 – amid a growing global financial crisis – theCabinet agreed to privatize more financial institutions,including the National Bank of Kenya and ConsolidatedBank.The ostrich gameAs widespread doubt about the immutable efficiencyof market forces grows in the leading capitalisteconomies, their client economies in the South arestill in denial, sustained by naïve faith in the cyclicnature of capitalist crises. As the economic principlesinforming free-market economies began to crumble,the Kenyan political elite, like the legendary desertostrich, buried its head in the sand; hoping that thecrisis would pass. Against this silence, civil societyorganizations warn that Kenya’s economic boat isleaking and rescue measures are urgent.Opportunities for mobilizing dissent are growing,and these must be taken lest the country experiencea neo-conservative resurgence. In the meantimeit is important to reject the illusion that Southerneconomies will be shielded from the meltdown,owing to not being fully integrated into the globalcapitalist economy and may even benefit throughthe escalation of domestic demand. They confuse acyclical (if severe) downturn in the historical fortunesof capitalism with its fundamental crisis. The Kenyanruling elite remains oblivious to the looming disaster:massive food insecurity, impending environmentaldisaster (in the Mau Forest, in Mount Kenya, in LakeVictoria, etc.), unemployment/underemployment,spiraling crime and disparity between the wealthyand the poor, declining tourist arrivals and volume ofremittances from overseas.Instead of taking heed, the recent National conferenceon “The Kenya We Want”, like the currentpolicy instrument for turning Kenya into a middleincome economy by 2030 (“Vision 2030”), continueto adhere to the thoroughly discredited WashingtonConsensus. Even as Western economies inject massivenew bailout funds into their financial institutions,and in some cases re-nationalize their banks, theKenyan Parliament is legislating the privatization ofthe few remaining strategic public assets in order toprovide a one-time government revenue injection. 2The stimulus and bailout packages preferredby Western governments are unlikely to make asignificant difference beyond harmonizing governmentand business responses to the crisis. Asstop-gap measures, such packages can only delaythe inevitable. Without democratizing the ownershipof the means of production and strengtheninginternal mechanisms of the domestic economy,Klaus Schwab’s global redesign initiave, launched inDavos in February <strong>2009</strong>, will do little to resolve thecrisis. In the face of such a situation, even the tradeagreements currently under discussion, such as theEconomic Partnership Agreements (EPAs) must bere-negotiated.Often, an epic moment in the history of a socialpraxis is catalyzed by catastrophes like the onewe are experiencing, particularly those that permitfundamental changes in attitudes and social behaviour.The signs of capitalism’s distress have beenshowing for a long time, but in gradual installments.Now they are obvious. The global capitalist systemno longer merits any retrofitting. It calls for a reconstructionby new actors favoured by history. This isthe crisis of liberal democracy, which has failed todeliver economic justice and equity. n2 Organizations set for privatization: Kenya ElectricityGeneration Company (KENGEN); Kenya Pipeline Company;Chemelil Sugar Company; Sony Sugar Company; NzoiaSugar Company; Miwani Sugar Company; Muhoroni SugarCompany; Kenya Tourism Development Authority andsome hotels; National Bank of Kenya; Consolidated Bank;Development Bank of Kenya; Kenya Wine Agencies Ltd; EastAfrican Portland Cement Company; Kenya Meat Commission;New Kenya Cooperative Creameries; Kenya Ports Authorityby way of a container terminal at Eldoret and outsourcing ofstevedoring services and development of new berths.<strong>Social</strong> <strong>Watch</strong> 109 Kenya
lebanon100No dialogue on the crisis251009810073000The global economic and financial crisis is receiving increasing attention in official discourse as the1009662Government has realized that, unless it is responsibly and seriously 100tackled, 68 the impact will be severe. 10094While the direct effects of the crisis have yet to be felt in the country, the nature of the economy rendersBCI of Alemania = 99,3IEG of Eritrea it extremely = 47,1 vulnerable. However, although a national dialogue is needed, IEG the of Germany Government = 78,2 has notheld consultations with NGOs and other concerned parties.9354100 100 100100 100100Arab NGO Network for Development (ANND)Ziad Abdel-Samad 1100Basic Capabilities Index (BCI)BCI = 9610092Children reachingGEI = 475th gradeGender Equity Index (GEI)EmpowermentPositive indicators marked the end of 2008 inLebanon despite the global financial crisis. In fact,according to the Lebanese Central Bank and theInternational Finance Corporation, 11 the country witnessed8% growth mainly fuelled by the real estate,000 6,2construction, tourism and financial services (banking)sectors. The main contributing factor remained8836,298 97100100 100 81100100 100100 10010085workers’ remittances, which at close to USD 8 billion Births attended by98,4were equivalent to more than 10% of the total depositsskilled health personnelSurvival up to 5 Economic activityEducationin Lebanese commercial IEG of and Kenya investment = 59 banks.BCI of Líbano = 95,6IEG of Lebanon =46,9Furthermore, debt-to-GDP ratio dropped from 180%to 162%. 2Other reasons why Lebanon has so far beenonly slightly affected by the crisis include the smallsize of its economy, financial sector and operations;the modest growth rates 100registered in previousyears; the resilience of the banking sector, which enjoyssolvency of USD 95 billion or 322% of GDP andis actively regulated by the Central Bank; and foreignaid, which helps the country overcome economicand financial challenges.1 Ziad Abdel-Samad IEG is Executive of Spain Director = 76,9 of the Arab NGONetwork for Development (ANND).2 Ministry of Finance. Debt And Debt Markets. Issue No. 7,Quarter IV, 2008.direct investment (FDI), as well as a reduction in theaid monies pledged at the Paris donors’ conferenceof January 2007 (known as Paris III). 3 Although thebanking sector is the main engine of the Lebaneseeconomy, it may lose its resilience due to the crisis ofconfidence in financial 100 markets and its relationshipswith international and regional 88 banks. 4employment-generating sectors. 6 Investors focusedon construction, real estate and finance while indus-Economic and social settingtry and agriculture were neglected. 47The UNDP report “Poverty Growth and Income DistributionIt should be mentioned that the late Lebanesein Lebanon” indicates that 28.5% of resi-Minister of Industry, Pierre El Gemayel, 7 submitted9000However, the economy presents multiple structuraldents live below the upper poverty line and 8.1% live a proposal to the Cabinet in 2006 on “Industry forimbalances that render it vulnerable to the re-below the lower poverty line. 5 It also reveals major the Youth 2010”. This 10-year plan was intended to100percussions of the crisis, 47 including a 30% budget imbalances 10098in the geographic distribution of poverty, encourage and strengthen 56 the sector, focusing on its100 77 100100 100100 100deficit, a two-thirds balance of payments deficit, the which is concentrated in rural areas and clusters important role in promoting economic growth 98 and162% debt-to-GDP ratio mentioned above and an surrounding major cities. The 0.375 GINI coefficient job creation. 8 It stressed the necessity of a nationalinflation rate that exceeds 10%. In the coming year, registered by Lebanon further confirms this. The root commitment to developing industry and highlightedIEG of Niger = 44,4 BCI of Paraguay = 95,3IEG of Paraguay = 66,8remittances are expected to drop, at the same time causes are the economic policies adopted by successivethe lack of coherence in national policies. The Government,that reverse migration leads to higher demand forjobs. This has already started as the global crisishits the Gulf countries, particularly the United ArabEmirates.governments, most significantly the searchfor growth through attracting FDI and creating a taxhaven, while policies aimed at fairly redistributinghowever, did not implement the plan. As aresult, the economy became increasingly orientedtowards financial and banking services and a rentiereconomy, while investments in the productive sectorswere lacking.Given this context, the most optimistic predictions–by the International Monetary Fund and the3 Paris III is the third of the “Friends of Lebanon Conferences100for Investment and Finance” 100 held 100 in Paris in February 2001,100November 2002 and January 2007. The last one took placeMinistry of Finance– do not expect 74 a growth of moreThe Government’s plana few months after the Israeli war against Lebanon of 2006;74than 5% for <strong>2009</strong>. They also expect the debt-to-GDPratio to increase due to the budget deficit and theits programme was articulated around three main objectives:(1) to respond to the results of the Israeli war in terms ofSeveral months after the financial crisis began – andwith many voices warning of its impacts globally,rehabilitation and reconstruction, (2) to respond to theneed for borrowing to cover expenditures. The Ministryof Finance estimates an 0 increase in public debt0regionally and nationally – the Lebanese Governmenteconomic and financial crisis that Lebanon was facing, (3)to adopt the <strong>Social</strong> Action Plan presented by the Lebanese finally realized the magnitude 0 of the problem andof USD 4 billion.Government. ANND discussed the Paris III document in the presented a preventive two-year plan to cushion the6Furthermore, a deepening global crisis will bring national report included in <strong>Social</strong> <strong>Watch</strong> 2007.589910058100 100 100about a decline in inter-Arab investments and foreign 4 Hamdan, 100 K. “Primary Reading in the Implications of 100 the100 10098Financial and Economic Crisis”. Al-Safir, No. 11146, 106 Most recently, in his opening speech during the 17 98th ArabNovember, 2008.economic forum held in Beirut in 2 and 3 April <strong>2009</strong>, PrimeMinister Fouad Siniora underlined the absence of alternatives5 Laithy, H., Abu-Ismail, BCI of K. and España Hamdan, = 99,6 K. Poverty GrowthIEG of Spain = 76,9and Income Distribution in Lebanon. IPC Country Study No.13. Brasilia: International Poverty Centre (IPC) and UnitedNations Development Programme (UNDP), 2008.100growth returns through a balanced tax structure andthe provision of basic services were overlooked.Lebanese officials, including the Prime Minister,promote the market system without mentioning therole of Government in monitoring market mechanismsand encouraging 100 investments in productive orto the market economy.7 Gemayel was assassinated in November 2006 in Beirut.8 See: .1001007100National reports 110 <strong>Social</strong> <strong>Watch</strong>100100
national economy from its effects. The plan revolvesaround three main points: (1) injecting liquidity intothe markets through increasing wages in the publicand private sectors and launching constructionand infrastructure projects through the Council forDevelopment and Reconstruction (CDR) 9 and othergovernment agencies; (2) activating the projectsneeded to obtain the funds pledged at the Paris IIIconference; and (3) encouraging investments andstimulating the private sector through cuts in taxesand fees and the establishment of three free zones indifferent regions of the country.However, this set of measures fails to make upa comprehensive national plan that a challenge ofthis magnitude requires. The Government’s plans toinject liquidity into the economy amount to 10% ofGDP, on par with what industrial countries adoptedto address the crisis, 10 but the accumulated budgetdeficit limits its ability to spend. Accordingly, it willhave to resort to borrowing, thus increasing publicdebt and debt service.Furthermore, although the Government’s plansinclude an increase in wages and the waiving of socialsecurity charges for new investors as an incentive,these measures do not indicate that it is willing to playa role in stimulating the economy. The increase merelyremoves a more than decade-long wage freeze.The plan also relies on a drop in oil prices, whichwould result in reduced costs in electricity productionand public transportation. Furthermore, the waivingof social security charges comes at the expense ofworkers’ rights to social protection, especially as thebudget deficit of the National <strong>Social</strong> Security Fundthreatens its ability to meet beneficiaries’ needs. Theinjected liquidity, the increased public debt and the reductionin remittances will all lead to greater pressureon the economy and on public finances. 11Moreover, while the Government relies on theParis III Agenda as a basis to its work plan, this wasinitially formulated as a series of measures to reducedebt through curbing expenditures and increasingrevenues on the one hand, and reducing debt servicethrough privatization in the telecom and energy sectorson the other. In order to increase revenues, the planseeks to increase VAT and taxes on other consumablecommodities. At the level of basic services, Paris IIIwas the first of the “Friends of Lebanon” conferencesto address social aspects; however, the proposed remediesare confined to a few programmes that arebased on social safety nets and not on a nationalstrategy for social development. It is worth notingthat Paris III did mention the need for administrativereforms in public administrations and ministries.Both the Prime Minister and the Minister of Financehave acknowledged the negative impacts expectedfrom the global crisis and the need to protectthe national economy. 12 However, as their answer,they restate their commitment to implementing theParis III Agenda without addressing any revisionor reconsideration of the measures it promoted.Although theoretically designed to meet Lebanesefinancial and economic challenges, in practice theAgenda speeds up the procedures needed for thecountry to join the World Trade Organization (WTO),especially as it reaches the final stages of the bilateraland multilateral round of negotiations on non-agriculturaland agricultural goods as well as services.The Government will need to reassess theParis III Agenda, including the scope of deregulatorymeasures it is undertaking and the requirementsrelated to the WTO. It should consider revising andexpanding the social considerations in its plan andthe mechanisms for supporting the economy, investingin productive sectors and addressing the level ofmonopolization of the national market that hindersthe emergence of new entrepreneurs and small andmedium businesses. 13The role of civil societyThe High Level Forum III on Aid Effectiveness, held inAccra in 2008, stressed the principle of “democraticownership”. This should be reflected in national consultationprocesses that include civil society representativesin the formulation of national strategiesand in the definition of priorities to meet national economicand financial challenges and social needs.Moreover, the Financing for Development conferenceheld in Doha in November 2008 stressedthe need for input from civil society during theformulation and adoption of national policies foreconomic and social development. It underscoredthe important link between democracy, social developmentand civil society’s active participation.It also concluded that developing countries wouldbe especially vulnerable to the global crisis withouta reassessment of current policies, the setting ofgoals and the launching of collective and responsibleaction to reach them.Civil society organizations (CSOs) play an importantrole in formulating sound development strategiesthat answer to the priorities and rights of localcommunities. Their advocacy efforts bring addedvalue to the process of adopting adequate economic,financial and social policies and monitoring their impact.They advocate for laws that preserve citizens’economic, social and cultural rights. Their continuedstruggle, for instance, to monitor the implementationof the Convention on the Elimination of All Forms ofDiscrimination against Women (CEDAW) and theConvention on the Rights of the Child (CRC) hasscored successes. In addition, and among manyother successful examples, CSOs have providedimportant inputs in reforming parliamentary andmunicipal electoral laws and in formulating manyanti-corruption laws.In Lebanon, the mechanisms for consultationin policy formulation between the Government andCSOs are not effective. However, CSOs representsolid partners in social service delivery, either by individuallyproviding services through centres spreadacross the country or in partnership with public sectorinstitutions. Regarding lobbying activities foreconomic and financial reforms, however, CSOs arenot very active mainly because of their lack of experiencein this field. Since this is becoming a veryimportant process, CSO have to engage more anddevelop clear strategies and objectives for successfuladvocacy.At a time when meeting the challenges requiresthe convergence of efforts to establish national andregional partnerships, some CSOs have attemptedto start a dialogue on the crisis, its roots, its consequencesand ways to address it. However, theGovernment persists in ignoring these efforts and inmaking decisions without effective consultation withconcerned parties. n9 CDR is an autonomous structure responsible for the planningand implementation of master infrastructure projects allaround the country. It functions under the direct supervisionof the Prime Minister.10 Iskandar, M. “Mr. Prime Minister, Your Plan <strong>2009</strong>–2010 isNot Convincing”. Al-Nahar, No 23612, 15 February, <strong>2009</strong>.11 The Ministry of Finance estimates the cost of this policy willbe an increase in public debts of USD 4 billion.12 The current Prime Minister was Minister of Finance in1992–1998 and 2000–2004. The current Minister of Financeworked at the IMF before he became the Prime Minister’smain advisor in 2005; he was appointed as Minister in June2008.13 Hamdan, K. “Primary Reading in the Implications of theFinancial and Economic Crisis”. Al-Safir, No. 11146, 10November, 2008.<strong>Social</strong> <strong>Watch</strong> 111 Lebanon
goals of the package are to protect and create jobs,ease the burden of the crisis on the population, assistthe private sector and build capacity for the future.With the growing job losses and expectation ofmore lay-offs to come, the Government has begun toreview its policy on foreign workers who have beena major lifeline in many sectors. Worried about thesteady rate of retrenchment, it announced that employerswho wish to downsize their workforce should layoff foreign workers first before they retrench locals.Malaysia — one of Asia’s largest importers oflabour — has an estimated 2 million foreign workers(predominantly from neighbouring Indonesia –66%–followed by Nepal and India) who are the mainstayof the plantation and manufacturing sectors. Butnow with unemployment mounting the governmenthas banned the hiring of new foreign workers in themanufacturing and services sectors. It has reportedlyslashed its work permit approvals by over 70%this year. It has also approved a proposal to doublethe foreign workers’ levy imposed on employers todiscourage the hiring of foreign workers.However, activists worry that employers couldpass down these higher charges to their foreignworkers to absorb, further burdening the latter whoare already saddled with hefty agent fees. Instead,it was proposed by some that minimum wages beimposed to curb the intake of foreign workers asemployers tend to turn to foreigners because theyare cheaper to hire than locals, often receiving wagesbelow the poverty line.The stimulus package and its uncertainoutcomeWhile there are some medium to longer term measurescommitted in the Government’s mini-budget,some observers noticed a lack of initiatives to dealwith the immediate and urgent need to stall thecontinued economic decline, stimulate demand andraise business activities, considered critical in anycrisis-driven “stimulus budget”. Instead, it was criticizedfor focusing on what appeared to be the bailingout of companies, given that nearly half of the moneywill go to assisting the private sector. In comparison,only 17% was budgeted towards easing the burdenof the people, the majority of whom are sufferingfrom high costs of living. There was also concernthat the specific needs of women, with the exceptionof single mothers, during the economic crisis havebeen overlooked, as only 1.4% was allocated for theless fortunate.The success of the stimulus package will dependon the execution, implementation and transparencyin the disbursement of the stimulus funds. This willdetermine if the trickle-down and multiplier effectof the package is felt across a large section of thepopulation and that it will not only benefit the wellconnectedcompanies and individuals as often happenedbefore.In responding to calls for transparency andaccountability, the Government said it will launcha special website to monitor how funds under thegovernment’s two economic stimulus packages arespent. The website will provide information to thepublic on the allocations and the amount spent, theprogrammes and projects that are implemented andtheir progress. Such an initiative is relatively newand a reflection of the need to respond to growingpressure for greater public accountability in a governmentthat is often viewed as mired in corruptionand political patronage. But as with all governmentpolicies, their implementation remains to be seen.An unknown scenarioDespite the gloomy outlook, economists often pointto Malaysia’s strong economic fundamentals and itsexperience from the previous Asian financial crisis in1997 which they believe will allow it to weather thecurrent crisis. But the nature of the present globalcrisis is still unfolding and no one really knows howdeep and how long the crisis will play out. Whilethe banking sector is still resilient for now, it willeventually be affected as businesses face difficultiesin repaying loans. And while non-performing loansmay be manageable now, this may not continue, assome analysts warn that the coming recession couldbe worse than that sparked by the 1997 Asian crisis.There are fears of social problems caused byunemployment, including a higher crime rate coupledwith the deterioration of poverty values andgreater income inequality as many low- and middleincomeworkers lose jobs in manufacturing. With theexperience of the recession of the mid to late 1980sin mind, there has been a proposal for a comprehensivesocial security plan. Increasingly, calls are beingheard for a national retrenchment fund to protectworkers in anticipation of possible job losses whichthe Government has said it is considering.Food crisis and food insecurityWhile high commodities prices brought benefits tosome, simultaneous high food prices were a bane tomost Malaysians already struggling with the high costof food and other basic necessities brought on by thesharp increases in oil prices in 2008. While inflationhas dropped in the past few months as the agriculturalcommodity bubble burst and oil prices fall from theirpeaks, food prices remain high with the consumerprice index showing a sharp 9.2% rise in February<strong>2009</strong> for food. (The food and non-alcoholic beveragescomponent contributes close to 80% of the 3.8%rise in the overall CPI in February <strong>2009</strong>.) Significantincreases were seen for rice, bread and other cerealswhose indices have shot up by a whopping 18 per cent.Oil prices, though has been cut a few times over thelast few months of 2008 in line with the drop in globaloil prices, were still higher than the pre-crisis levels.Much of the increase in food prices is also dueto the fact that Malaysia is a major food importer andtherefore is vulnerable to rising prices and speculationin food prices. Rapid development in the past fewdecades has shifted the focus of economic planningtowards industrialization and industrial agriculture atthe expense of food production as it became cheaper tobuy food from other countries. Apart from rice, Malaysiaalso imports vegetables, fruits, meat, and grains.Malaysia is currently about 60% self-sufficient inrice and the Government plans to inject about USD 2billion to increase rice production to once again reachthe 90% self-sufficiency level. The Food Security Policywas launched in April 2008 and subsidies and incentiveshave been paid out with the hope to boost riceproduction nation-wide. Simultaneously, the Bumi Hijau(green earth) campaign, an initiative similar to thatintroduced in the 1970s, was to encourage Malaysiansto grow vegetables and other edible greens apart fromrearing chicken and fish for their own consumption.Despite these initiatives, there needs to be moreeffective long-term planning for economic recovery.The Government needs to give serious considerationto different aspects of the problem, including moreefficient use of land, labour and technology, that mayhamper the achievement of the targetted goals.Civil society responsesA series of protests and activities including public forumswere held by various civil society organizationsand NGOs to raise public awareness of the negativeimpacts of these crises— especially to the vulnerablegroups in society.The Oppressed People’s Network (JERIT; theacronym means “scream”), a coalition of civil societygroups, has been particularly active in organizingvarious activities to highlight their concerns andpresent their demands. They held a protest againstthe oil price hike in January 2008 and ended the yearwith the “The People: The Force of Change” bicyclecampaign to express their concern for workers’rights and the hardships being faced by ordinary,working class Malaysians as the economy faces aslowdown.The bicycle campaign saw groups of cyclistsflagged off from three main locations in the north,south and east coast of Peninsular Malaysia andthey pedaled simultaneously towards the Parliamentbuilding in the capital city of Kuala Lumpur to presenta memorandum to the Government and oppositionparty, highlighting their concerns and demands.Their main demands include the introduction of aminimum wage, decent housing, price controls for essentialgoods and an end to the privatization of essentialservices. They also linked this to broader civil andpolitical rights including the restoration of local governmentelection and the repeal of the Internal SecurityAct, which allows indefinite detention without trial.Along the way, they distributed leaflets tothe public and presented the memorandum to thechief ministers of the various states (Malaysia hasa federal system of government). Despite numerousobstacles placed by the police including arrests,they managed to make their way to their final destination.And during those two weeks in December2008, the campaign received much publicity andpublic support along the routes they traveled on. n<strong>Social</strong> <strong>Watch</strong> 113 Malaysia
88malta100100100No shelter from the crisis2411000Although the Maltese economy41seemed at first to be shielded from the global economic crisis,9637the effects 79 are starting to be felt. Tourism is declining, and food 100and utilities have become 100 more94expensive. Opinion polls show that the Maltese are not confident of the immediate future, expectingIEG of Ghana deteriorating = 57,6 quality of life in BCI <strong>2009</strong>. of Guatemala The number = 68,3 of asylum seekers grows IEG of Guatemala daily, and = 51,3 their plighttends to get worse.100 10083100100 10068Kopin MaltaJoseph M. Sammut100At the end of 2008, most developed countries werein recession and the world economy was in a steepBasic Capabilities Index (BCI)100 99BCI = 99 GEI = 58Children reaching5th gradedownturn. During the year’s first 30 two quarters, theMaltese economy seemed largely sheltered from0the effects of the financial crisis. Growth continued0to be driven by domestic demand, primarily in the994710099form of higher consumption expenditure and a sharp100 100 100100 100accumulation of inventories. 1 Conditions in 99the labourmarket remained favourable, with the privateBirths attended byskilled health personnelSurvival up to 5sector continuing to fuel job creation. There wasa slight increase in employment (1.3%), while theunemployment rate remained stable at a relativelylow 6%. However, net exports contributed negativelyto growth for the third and fourth quarters.The rise in international food and fuel pricesresulted in higher consumer 100 prices and inflation.Malta’s inflation rate was 4.7% – the highest ratein the euro area in 2008. 2 Moreover, recent internationaldevelopments pose increasing 47 risks to growth.Malta’s export market was the worst affected in thewhole of the EU in 2008: there was a fall of 14%,0compared with an average rise of 6.2%. The Springreport of the European Commission Economic andFinancial Affairs forecasts 63 0.7% GDP growth, 1.9%100 100inflation, 7.4% unemployment, a negative balance 99 of2.6% in the budgetary deficit’s proportion of GDP anda lowering of the current account balance by -7.0%. 3Maltese banks remain sufficiently liquid andwell capitalized to cover credit and operational andmarket risks. They are well regulated to protect clients,although one of the most important banks suffereda 60% decrease in its annual profits for 2008due to the collapse of an international bank. The100Government guaranteed bank deposits up to EUR100,000 (USD 132,000).Gender Equity Index (GEI)Economic activityIEG of Malaysia = 58,3 BCI of Malta = 99,5IEG of Malta = 58,2Inflation put some strain on household finances,particularly those in the lower income bracket.Residents’ deposits with Maltese banks increased,though their annual growth rate declined, whilecredit to residents continued to expand. Averagebank rates dropped by 100102 basis points betweenSeptember and November as banks passed on part77of the reduction in official interests rates to customers.Meanwhile, yields on Government securitiesdeclined while equity prices continued to fall. 410065Empowerment50100 10097small and medium enterprises. The Chamber ofFood and energy 00Small Businesses ordered its members not to pay aMalta imports most of its food. Eurostat reports proportion of their utility bills. 798show that the country experienced a rise 9760in food The minister 64 responsible for utilities promised100 100 100100 100prices between April 2007 and April 2008 of 9.7%. in September that rates would be reduced 99when theThis figure amounts to twice the yearly inflation rate international price of oil fell below USD 85/bbl. However,IEG of Peru = 69,7although oil prices dropped to half that figureand significantly affected consumers’ disposableBCI of Filipinas = 78,1IEG of Philippines = 75,6income. A handful of importers dominate the market (USD 37/bbl), 8 consumers continue to be chargedand hinder competition: the Eurostat’s report recognisesthe same high prices. In this regard, it should bethat Malta suffers from lack of competition, mentioned that the Government is preparing Ene-while the rise in prices probably is also associated malta, the national energy company, for privatizationwith the change over to the euro. The Maltese Officeof Fair Competition should analyse and investigate1005 Malta Union of Midwives 100 and Nurses (MUMN), Malta Unionthis situation.91of Teachers (MUT), General Workers Union (GWU), UnionThe dramatic rise in 2008 of the world market of Cabin Crew, Union Haddiema Bank Centrali, Union of51Technical and Clerical Workers of Malta Environment andprice of oil (USD 147/bbl) was reflected in higherPlanning Authority (MEPA), Union Professjonisti Awtoritàprices of fuel, electricity and especially water, as41ghall-Ambjent u Ppjanar, University of Malta AcademicMalta generates a substantial amount of this usingreverse osmosis plants. 0 In October 2008, utility Periti u Inginiera Servizz Pubbliku 0 and Association of Airline1 Central Bank of Malta. Quarterly Review 2008, Vol. 41, No.Staff Association (Umasa), Airline Pilots Association, Union04. Available from: .Engineers.costs for consumers almost doubled, with small88 2 Eurostat. “Euro Area External Trade Deficit 32.1 bn Euros”, households 97 that do not fall under the eco-reduction 996 See: .100 7210084scheme – which stimulates voluntary energy savings98from: .Times of Malta, 29 January <strong>2009</strong>. Available from: .IEG Thailand = 70,2“Spring Forecasts <strong>2009</strong>–2010.” 4 May <strong>2009</strong>. Availablefrom: .4 Central Bank of Malta. Quarterly Review 2008.8 Department of Information. Press Release, No. 0164, 3March <strong>2009</strong>. Available from: .1000Educationto the Prime Minister on 10 December 2008 aboutdiscrepancies in the way these were calculated. 5They claimed that the Government was playing withfigures and inflating the number of families set tobenefit from eco-reductions. In January <strong>2009</strong>, theunions directed consumers not to pay their utilitybills before the end of the 45-day window allowedby the Water Services Corporation. 6 The employers’organisation subsequently joined in criticizing therate structure, claiming that it discriminated against29National reports 114 <strong>Social</strong> <strong>Watch</strong>
and needs to place the loss-making corporation ona sound financial footing. The issue of utility billsrequires a proper socio-economic study that is basednot only on global or average figures but also onbudgetary surveys of different types of households,businesses and organizations. Such a study shouldalso offer viable recommendations on sustainableenergy scenarios in Malta.LabourThe global slowdown began to be felt at the beginningof <strong>2009</strong>, when many manufacturing companiesbrought in a four-day week and others announcedredundancies to reduce their work force and financiallosses. Redundancies may amount to hundredsor even thousands during <strong>2009</strong>. Tourism plays animportant role in the Maltese economic and labourspheres; currently, fewer tourists are coming fromGreat Britain, which accounts for 33% of the market. 9This will badly affect workers in this industry.Malta Shipyards used to be the bulwark of theMaltese workforce, employing 5,000–6,000 workersas recently as the 1990s. In 2008, privatization wasset in motion and employees were offered early retirementand voluntary resignation schemes. Out of1,626 employees, only 59 workers did not apply forany of the schemes and remained on the company’sbooks, while another 679 who had applied for earlyretirement have stayed on to complete remainingcontracts before the company is wound down. Therewere 14 interested bidders for the shipyard, but alocal paper revealed that none of the offers met theGovernment’s expectations. The failure to clinch anacceptable deal is a severe blow to the administration.In an interview to Time of Malta in 2008, EUCompetition Commissioner Neelie Kroes criticizedthe privatization strategy, stating that the Government’sintention to write off EUR 100 million (USD132 million) in losses before the shipyard is privatizedis not acceptable under EU law.Development aidThe Government’s published Overseas DevelopmentPolicy (October 2007) identified five priority countriesfor Maltese development aid, four of which arein central and eastern Africa: Somalia, Sudan, Eritreaand Ethiopia. 10 Maltese NGOs believe this is a politicalchoice since most immigrants come from thesecountries. 11The lack of transparency and of timely and independentevaluations of official Maltese aid compromisesNGOs’ engagement on development cooperationissues. The Government has promised NGOs a9 National Statistics Office. “Departing Tourists: December2008”. News release 015/<strong>2009</strong>. 27 January <strong>2009</strong>.Available from: .10 See: .11 Concord. No Time to Waste: European Governments BehindSchedule on Aid Quantity and Quality. Brussels: Concord,2008. Available from: .clear analysis of figures in reporting on official developmentassistance (ODA), but this has yet to happen.The Government has also indicated that more aidfunds will be allocated for technical assistance andthat information and communications technologies(ICTs) will be a priority. NGOs are concerned thattechnical assistance does not generally respond tothe real needs of developing countries and suffersfrom low accountability, while ICTs usually do notmatch the principle of country ownership.Although in 2007 Malta continued to have thehighest ratio of ODA to GNI (0.15%) in the EU, NGOsare concerned that a substantial share of reportedODA was spent on housing asylum seekers in theirfirst year in the country. In practice, this means thataid money is being spent on detention centres. NGOsare also worried that aid is inflated by the inclusion ofimputed student costs.Migration and asylum-seekersThe situation of migrants and asylum seekers has notimproved and, in some respects, has worsened dueto the record number of boat people arriving in 2008and in the first two months of <strong>2009</strong>. A United NationsWorking Group on Arbitrary Detention visited Maltain January <strong>2009</strong>. Although the Working Group notedmany positive points, it said that the detention ofasylum seekers was not consistent with internationalhuman rights law and described the conditions atthe Safi and Lyster Barracks camps as “appalling”. 12According to the Working Group, the conditions inthe camps affect the physical and mental health ofdetainees to such a degree that they are unable tounderstand their rights or follow up the legal processthat would lead, for better or worse, to a change intheir status.Asylum applications take an inordinate amountof time to be processed: after six months in Maltasome migrants are still waiting just to be interviewed.The so-called “fast track” system is not much better.Although intended for the most vulnerable people– for example, pregnant women and people with disabilities– it takes up to three months to secure theirrelease from detention centres. An Eritrean migrantfiled a constitutional case against the Principal ImmigrationOfficer and the Justice and Home AffairsMinister in May 2007, claiming a violation of his humanrights due to the lengthy procedures for asylumand inhumane conditions of detention; a verdict isstill awaited. 13The Government affirms that it has to achievea balance between security and humanitarian concerns,and that efforts are ceaselessly undertakento improve conditions, but the system is currentlyoverwhelmed: in 2008 it had to cope with 2,775 newarrivals, compared to 1,702 the previous year. Finally,whilst appreciating the United Nations Group’scomments that illegal immigration is a problem that12 United Nations. “Annex to Press Release: UN Working Groupon Arbitrary Detention Concludes Visit to Malta”. 26 January<strong>2009</strong>. Available from: .13 See: .should be shared by the world as a whole, it is worthnoting that such appeals have already been made inthe past, to little effect. 14The financial crisis and public opinionThe autumn 2008 Eurobarometer 15 indicates thatthe Maltese are becoming increasingly pessimisticabout the economy; trust in the political establishmentis dwindling and expectations for an improvementin the quality of life are going down. 16 A decisivemajority (57%) gave the economy a negative assessment,while only 39% perceived it to be in goodshape and 45% expect it to deteriorate further during<strong>2009</strong> – a hefty 25% increase in economic pessimismthan that registered a year earlier. Thirty-two per centstated that employment would worsen, while only23% thought that the situation would improve and afurther 27% did not expect the situation to change inthe coming 12 months. Sixty-five per cent of thosesurveyed said they had difficulty paying their bills atthe end of the month, while only 28% reported theyhad no such trouble. Fifty-six per cent believed thatMalta has become more economically stable thanksto the adoption of the euro, while 33% disagreed.Maltese confidence in the euro outstrips that expressedby other euro zone members, where some48% of respondents agreed that the euro has helpedstabilize their economies and 42% disagreed.In the political sphere, 51% of Maltese expresseddissatisfaction with their political parties, while only34% expressed confidence. This was reflected in theMarch 2008 parliamentary elections, where voterturnout was slightly lower than usual. On the flipside,59% of Maltese said they trusted the EuropeanCommission, while just 13% did not. The EuropeanParliament is the most trusted institution among Malteserespondents, with 64% saying they trust it asopposed to 14% who said they do not. A lower proportion(57%) tends to trust the Maltese parliament,though this is a 15-point increase over last year; 50%trusted the Government as an institution – a 5 percentpoints increase – and 37% did not.The issues of inequality and poverty in Malta,it is hard to quantify since statistics are not easilyavailable. The growing number of migrants settling indistinct areas is creating the phenomenon of “ghettoization”.These ghettos are surely poverty traps andbreeding grounds of future social tensions. Whenone takes into consideration the effects of the economicslowdown, the higher food and utility prices,the four-day week, redundancies, and pensionerswho survive on a pension ceiling set 30 years ago, itis safe to predict that more people in <strong>2009</strong> will fall intothe category of “have-nots”. n14 See: .15 See: .16 See: .<strong>Social</strong> <strong>Watch</strong> 115 Malta
mexico10083The worsening crisis challenges social rights1005400Problems such as increasing poverty, the breakdown of the agricultural sector, insufficient employment9754and the decline of GDP 100 already 67 existed in Mexico before 100 the current 100 crisis hit. The minor adjustments 10099the Government is announcing only reinforce the neo-liberal economic model, and social unrest is onthe rise. However, there are a numberBCI of Hondurasof civil society= 82,4proposals that call forIEGalternativeof Hondurasstrategies= 68,9toconfront the manifold crises, to minimize impacts and revise the economic model.100100With the support of: Espacio DESC 1Laura Becerra Pozos 2Areli Sandoval Terán 3Several Mexican civil society organizations agree thatthe current global crisis is systemic and is a consequenceof the exhausted capitalist neo-liberal economicmodel based on financial deregulation and trade liberalization.The crisis is not only in finance but also in food,labour, environmental, energy and other sectors, andalthough its impact is being felt by all of humanity, it isparticularly severe in the countries of the South. 4As explained by Arturo Guillén, the crisis hasfollowed a complex path, triggered in its final stagesby the real estate crisis in the United States and the resultingeconomic recession, which tended to “rapidlyglobalize” and cause the GDP of apparently strongeconomies in Europe and Asia to drop. 5 The crisis hasalso spread to Latin America, with varying impacts indifferent countries, areas and sectors, but it cannot beblamed solely on factors outside the region.The impact of the crisis in Mexico 6Without belittling the effects of the global crisis onthe country, it must be said that many of the problems– such as the increase of poverty in absolutefigures, the breakdown of the agricultural sector,the insufficient generation of jobs (in spite of theslightly favourable export-import balance prior to the1 Espacio DESC is the reference group for <strong>Social</strong> <strong>Watch</strong> inMexico and contributed in the area of economic, social andcultural rights.2 Executive Director of DECA Equipo Pueblo, A.C., the focalpoint organization of <strong>Social</strong> <strong>Watch</strong> in Mexico since 1996;.3 Coordinator of the Citizen Diplomacy Programme, DESCA, and<strong>Social</strong> <strong>Watch</strong> Mexico .4 “Para un nuevo modelo económico social ¡Pongámos lafinancia en su sitio!” [For a New Economic and <strong>Social</strong> Model.Let’s Put Finance in its Place!]. A call for the signatures ofNGOs, trade unions and social movements arising from aseries of World <strong>Social</strong> Forum seminars in Belem, <strong>2009</strong>. See:.5 Guillén, A. La Crisis Global y la Recesión Generalizada,versión preliminar [Global Crisis and Generalized Recession,preliminary version]. Mexico City: Metropolitan AutonomousUniversity (UAM) Iztapalapa Unit, March <strong>2009</strong>.6 Assessments based on documents issued by the NationalMovement for Food and Energy Autonomy, Workers’ Rightsand Democratic Freedom and the Democratic Alliance of CivilOrganizations (ADOC) – networks of which Equipo Pueblois a member – as well as the “Crisis Analysis and Strategy”session of Espacio DESC (23 April <strong>2009</strong>) .Basic Capabilities Index (BCI)100BCI = 95 95GEI = 61Children reaching5th grade09497100 100Births attended byskilled health personnelSurvival up to 5BCI of México = 95,2crisis) and the drop in GDP – were already present inthe economy. 7 Undoubtedly, the systemic crisis hasmade these problems worse.The following figures help illustrate the nationaldimensions of the crisis:• The worldwide increase 100 98in fuel prices has ledto increases in food prices over and above thegeneral rate of inflation. In January <strong>2009</strong> foodprices went up 11.3%, while inflation was 6.3%.The impact has been most severely felt by thepoorest as they devote a greater percentage of0their income to the purchase of food. 8• In the third quarter of 2008, 71.3% of the 99 economically100 active population (31 million people) 100 lived onan income of three minimum wages – MXN 152a day (about USD 11.4) – or less. The unemploymentrate was BCI 4.2%, of Polonia which meant = 99,1 that 1.9 millionpeople were unemployed, and 11.8 million peoplewere surviving in the informal sector. 9• Exports to the United States have plummeted,and hundreds of thousands of people are losingtheir jobs as companies slash expenditures. In100November 2008 manufacturing exports overall•Gender Equity Index (GEI)Empowerment44100 10099Economic activityEducationIEG of Mexico = 60,5dropped an average of 7.3%, while those to theUnited States fell 18%. 10North of the border, unemployment among Mexicanimmigrants has increased, causing remittancesto fall; remittances were down -9.8% inDecember 2008 from 100 December 2007. Householdsin the poorest 20% of the population thatreceive remittances therefore realized only 6 outof 10 pesos. 11 These are 45 the households that willsuffer more the decrease in remittances.By February <strong>2009</strong> unemployment 0was 5.3%and industrial activity had dropped by 13.2%, 13the worst figures in these areas since the socalled100 “tequila 69 crisis” in the mid-1990s 100 and anindication that there will be a severe 96 recession.•12100 100100The grave impactIEGof theofcrisisPolandin=the70labour sectorwill be used as an excuse to freeze or reduce salaries,work will become even more precarious, employerswill be given more freedom to hire and fire and jobswill be outsourced; all of which will reduce rights andrestrict the authority of the unions. 14With regard to rural areas, the absence of an equitableagricultural policy and indifference have given100rise over the years to three types of consequences,7 Serdán Rosales, A. “México: Pobreza y presupuesto social49en el contexto de la crisis financiera 2008-<strong>2009</strong>” [Mexico: 10 Serdán Rosales, “México: Pobreza 37 y presupuesto social en elPoverty and <strong>Social</strong> Budget Within the Context of the 2008- contexto de la crisis financiera 2008-<strong>2009</strong>”.<strong>2009</strong> Financial Crisis]. Presentation during an Espacio DESCsession, 23 April <strong>2009</strong>.011 Ibid.08 Serdán Rosales, A. with data from Bank of Mexico andNational Poll on Income42and Expenditure in households 8712 ENOE, March <strong>2009</strong>.13 See: .100(ENIGH 100 2006) Within the Context of the 2008-<strong>2009</strong>100Financial100 8183 100100Crisis.” Presentation during an Espacio DESC session,14 de la Cueva, H. Otra integración es posible y otra salida a la23 April <strong>2009</strong>.crisis también: escenarios de las Américas en el <strong>2009</strong> y los9 Figures by National Statistics Geography Instituteretos del Movimiento Sindical [A different integration andBCI of Uganda = 59,2IEG of Uganda = 67,2(INEGI), based in National Poll on Occupation anda different way out of the crisis are possible: scenarios inEmployment (ENOE), third quarter of 2008, published byEl Financiero, 18 November 2008.the Americas in <strong>2009</strong> and the challenges of the Trade UnionMovement]. Mexico City, <strong>2009</strong>.100039100National reports 116 <strong>Social</strong> <strong>Watch</strong>10096100
made worse by the crisis: (1) food speculation onthe stock market, which puts foodstuffs beyond thereach of poorer families; (2) the invasion of nationalmarkets by food products produced and traded bytransnational corporations, which sacrifice soil, forestsand water reserves to productivity and destroynational systems of production, particularly traditionalones; and (3) the flood of genetically modifiedseeds, which sweeps away the store of natural seedsand ancient ecosystems. 15 The national No Maize noCountry 16 campaign – endorsed by our organization– proposes such measures as moving from anagricultural model based on large monocultures thatinvolve the increasing use of water, machinery andcontaminants, towards sustainable peasant farmingthat not only has the potential to respond to nationalfood needs but also has additional ecological virtues.On the basis of this evaluation, it is possible tostate that Mexico was faced with the worst possiblescenario with which to confront a crisis that had beenin the making for several years. The Government hassubmitted uncritically to the neo-liberal economicmodel, and several of the measures announced aremerely minor adjustments that sustain and reinforcethis model.Government and civil society responsesDuring the recent Summit of the Americas, the EconomicCommission for Latin America and the Caribbean17 confirmed that countries in Latin America donot have a common strategy to overcome the crisisbut have announced and implemented a diversity ofmeasures, as shown in the table.In October 2008, shortly after minimizing the potentialthreat of the United States crisis on Mexico dueto the “strength of the country’s public finances”, theGovernment announced a Programme for the Promotionof Growth and Employment (PICE, in Spanish),a five-point anti-crisis plan that consisted of: (1) expandingpublic expenditure in infrastructure in orderto foster economic growth; (2) changing the rulesregarding the exercise of this expenditure in order toaccelerate the process; (3) initiating construction of anew refinery; (4) launching an extraordinary supportprogramme for small and medium enterprises, and (5)making national industry more competitive by meansof a new deregulation and tariff relief programme.At the same time the Federal Government pointedout that the country had been reducing its foreign debtfor several years, that its inflation was the lowest in LatinAmerica and that its reserves amounted to over USD90 billion, which enabled it to resist balance of paymentpressures. 18 Six months later, during the G-20 Summit15 Quintana, V. “La guerra que Obama ignora” [The war Obamadoes not know about]. La Jornada, 17 April <strong>2009</strong>.16 For further information see: .17 ECLAC. “The Reaction of the Governments of the Americasto the International Crisis: A Synthetic Presentation of thePolicy Measures announced up to 31 March <strong>2009</strong>”. FifthSummit of the Americas, Port of Spain, 17–19 April <strong>2009</strong>.Available from: .18 El Universal. “Anuncia Calderón plan anticrisis de cinco puntos”[Calderón announces 5-point anti-crisis plan]. 8 October 2008.Available at: .in early April <strong>2009</strong>, the Government received supportfor its request for a USD 47 billion loan from the IMF.In addition, it was announced at the Summit that afurther USD 850 billion would be allocated to emergingeconomies – Mexico among them – in order to financecountercyclical spending, recapitalization of banks andinfrastructure, among other things. 19Even without having touched the USD 57 billionfrom the IMF, World Bank and Inter-American DevelopmentBank credit lines, President Felipe Calderón’sadministration increased public debt by MXN 968.48million (about USD 72.74 million) in just its first twoyears in office (2007–2008), a sum equal to 12 timesthe debt contracted during the first two years of ErnestoZedillo’s Government (1995–1996), when thecountry faced its worst economic crisis in 60 years. 20It is extremely worrying that these measures, in additionto increasing the public debt, reinforce the neoliberaleconomic model and its institutions, whoselimitations and contradictions have been pointed outin many different forums. It is also surprising, giventhat several countries in Latin America are tryingout different measures or procedures from thoseimposed by this model.Public unrest has been growing in the face ofthe crisis, but so have the number of proposals beingput forward by civil society. For example, the NationalMovement for Food and Energy Autonomy, Workers’Rights and Democratic Freedom – in a letter dated 16April <strong>2009</strong> addressed to Barack Obama, the Presidentof the United States – suggested initiating a dialogue atthe highest level on items such as the urgent renegotiationof NAFTA and the safeguarding of labour, socialand human rights in the region. This would includeestablishing an Asymmetrical Compensation Fund forNorth America, negotiating a bi-national agreementregarding immigration, and the signature of an agreementin order to promote the Treaty for the Economicand <strong>Social</strong> Development of North America.Others believe that times of crisis provide fertileground for new theoretical concepts. In any case,it is imperative to generate new ideas, alternativesand strategies that are capable of dealing with “thecrisis”, be it to minimize its impact or to revise theeconomic model.Supervising public expenditureIn the short and medium term, a major issue on theagenda of civil society organizations working onsocial development and human rights will be thesupervision of public expenditure. This is related tothe State’s obligation to devote the highest quantityof resources available for the progressive achievementof economic, social and cultural rights, aswell as the premise that “even when resources areseverely limited, due to adjustment processes, economicrecession or other factors, it is possible and,in fact, it is a duty to protect the vulnerable membersof society through the adoption of relatively low-cost19 La Jornada, 3 April <strong>2009</strong>.20 González, S. and Rodríguez, I. “Calderón increased publicdebt by almost one trillion pesos in 2 years”. La Jornada,13 April <strong>2009</strong>.CHART 1. Classification of Governmentmeasures to address the crisis in LatinAmerica and announced or alreadyimplemented by MexicoMonetary and financial Fiscal policy:policy:• Reduction and/or • Reduction of taxes /flexibilization of bank Increase of subsidiesreserves• Increase and/or antici-• Provision of liquidity pation of expenditurein national currency (infrastructure)Exchange and foreign trade policy:• Provision of liquidity in foreign currency (excludingCentral Banks that intervened by selling foreigncurrency on the exchange markets)• Increase of tariffs or import restrictions• Reduction of tariffs• Financing for exporters• Credit negotiation with international financialinstitutionsSectorial policy: Labour and socialpolicy:• Housing - Small and • Employment stimulimedium enterprises • <strong>Social</strong> programmes• Agriculture - Tourism -IndustrySource: produced by the authors, based on ECLAC (<strong>2009</strong>).programmes”. 21 It should be noted that the Governmentresponded to the 1995 crisis by cuttingexpenditure, which seriously affected education,health and electricity and had very negative effectson the achievement of economic, social and culturalrights. Although so far the Government has assertedthat it will maintain its spending levels, it is vital thatits budgetary allocations tackle social issues moreeffectively and sustainably “by reducing operatingexpenses, refocusing priorities and reducing administrativecosts in certain departments”. 22From the human rights perspective it is also essentialto follow up on investments in infrastructurepromoted as part of the PICE, particularly in order toensure that, in the case of mega-projects (such asdams), the communities that are likely to be affectedare duly informed and consulted, and that social andenvironmental studies are carried out effectively inorder to evaluate projects’ viability and their capacityto promote real development.In the long term, there is an opportunity at handnot only to survive, but also to outline and foster a moreequitable economic and social model, as a way out ofthe current crisis and to prevent new ones. 23 In any case,respect for international human rights framework is thekey point of reference that will make possible the creationof “another Mexico” and “another world”. n21 UN CESCR. “General Comment Nº 3: The nature ofStates parties obligations,” paragraph 12. United NationsCommittee on Economic, <strong>Social</strong> and Cultural Rights. 1990.Available from: .22 Serdán Rosales, A. “Mexico: Poverty and <strong>Social</strong> BudgetWithin the Context of the 2008-<strong>2009</strong> Financial Crisis.”Presentation during an Espacio DESC session, 23 April <strong>2009</strong>.23 Héctor de la Cueva, op. cit.<strong>Social</strong> <strong>Watch</strong> 117 Mexico
100moldova54There is a crisis, after all1009910045000Moldova is living through turbulent times. Prior to the April elections, the ruling Communist Party975410099100 100 downplayed 100 the effects 100 of the financial crisis, even though 100 experts 100 had stated 68 that those countries 100 for9996which remittances constitute one third of GDP, such as Moldova, would be the most vulnerable. Once82,4 IEG of Hondurasthe polls= 68,9were over, however, theBCIGovernmentof Hungría = 99,3started to refer to the crisis asIEGaof“catastrophe”.Hungary = 69,8Yet themeasures it has promoted in response are missing the target.100disagree with the price the PCRM leader paid forPartnership for Development CenterRussia’s support – with the purpose of eliminatingfrom the race other 100contestants who targeted100Gender Equity Index (GEI)Diana Mocanu100GEI = 74the Russian-speaking electorate – in the electoralEmpowermentMoldova is currently experiencing stormy political campaign.times. In April <strong>2009</strong>, when the ruling Party of Communistsof the Republic of Moldova (PCRM) won the ing has deteriorated and its bid to join the EuropeanAt the same time, Moldova’s international stand-5239parliamentary elections, thousands of demonstratorstook to the streets alleging fraud, fighting with of rhetoric were expended NO in VA defining the April elec-Community has been jeopardized. Huge amounts000police and ransacking Parliament. The Government tions as a “test” for Moldovan democracy, as well9744claimed that the dispute over the election results was as for guaranteeing progress towards integration100 100 100100 100100 72100100a cover for an attempted coup organized with 99 the into Europe (over half of Moldova’s trade is with the98involvement of Romania. Later, after the presidential EU, a large number of Moldovans work in the EU Economic activityEducationelections in June, theIEGPresidentof Mexicoand= 60,5leader of the and over 70% ofBCIthe populationof Moldaviasupport= 0EuropeanIEG of Moldova = 73,9PCRM, Vladimir Voronin, publicly “ceased political integration). However, the preliminary result of the global financial crisis. The initial consequences werepartnership” with the opposition.“test” has been abuse of administrative resources, already visible in the last quarter of 2008 and haveA new political realitythe constant harassment of the opposition leading been confirmed by statistical indicators in the firstto protests and revolt, and the flagrant violation of quarter of <strong>2009</strong>. 3 According to the Moldovan Premier,The fact that the political crisis overlapped with the human rights by law enforcement bodies.Zinaida Greceanii, the effects are mostly due toeconomic/financial crisis 100 increased the gap between Moldovan society 100 has been 99 deeply divided and decreasing exports and 100 imports, reduced productionthe Government and the opposition, as they both radicalized not just by the way the electoral campaign and lower remittances. In this situation, only a policydenied 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 willFresh parliamentary elections on July 29 produced security forces in the post-electoral period. Political allow Moldova to tackle the crisis. 5345a parliament in which no single party had a majority,stability will only be regained if there is a full investi-Premier Greceanii underscored that invest-much less the 61-seat supermajority necessary gation of the April events.ments in infrastructure are to come both from000to elect a new president. The four main oppositionbudgetary and foreign resources. She cited a Czechgroups gained a combined total of 53 parliamentary Crisis and opportunitiesinvestment project to be implemented in the north99 seats. This is still not enough to push for a president Although 100 100before the elections in April <strong>2009</strong> the Governmentvehemently denied the crisis would affect the construction of a power station. According 98 to theof the country, which provides EUR 600 million for 99100 100 69100100 100100 69100100of their choice, although leaders vowed to 96 form analliance to force the Communists out.the country and tried to artificially maintain the economicPrime Minister, the economic liberalization reformsituation,The TransnistrianIEGsettlementof Poland =has70also beenBCItheofWorldPortugalBank was= 99,4not so optimisticand it included Moldova among the developing vested income, as well as the strict banking policies(capital legalization,IEG offiscalPortugalamnesty,= 73,1the tax on rein-brought back to centre stage. This is a consequenceof the pre-electoral strategy of President Voronin, countries with the highest level of vulnerability. 2 After that have been lately promoted) will also help ensurewho signed the Barvikha Declaration, regarded by the elections, however, President Voronin declared Moldova’s macroeconomic stability and diminish thethe opposition as a capitulation to Russian interests.in a meeting with businesspersons, members of the effect of the crisis.1 As a result of the declaration, the Russian acting Government, congresspersons and politi-The Minister of Finance has said that themilitary presence could end up being legalized, the cians that “the crisis is a fire, a catastrophe”. Governmentofficials explained that the downplaying of during the last year the capitalization of banks in-Moldovan financial system is very solid and that10010010095country could become confederated or Moldovacould 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 portfolioslittle is left of Moldova’s sovereignty, independence “creating panic”.by 19.4%. As a result, 52 the current liquidityand territorial integrity and feels 37 it has the right to Indeed, despite Moldova’s impressive economicof the Moldovan banking system is approximatelygrowth in 2008 (7.2%), the country has been 30%, significantly more than the requirements of0* There are no available data on BCI.severely hit by the second 0 round of effects from the risks limitation (at least 20%). 0 41 President Voronin, Russian President Dmitry Medvedev and87100 9995Transnistria’s Russian-installed “president” Igor Smirnov 2 World Trade Organization. “The World Bank has Included100 100signed a Russian-drafted 81 joint declaration on 1883100100 100100 72100100MarchMoldova among the Developing Countries with the Highest97declaring that “noting the stabilizing role of the existingpeacekeeping operation, the sides consider that it wouldLevel of Vulnerability to the World Crisis”. 10 April <strong>2009</strong>.Available at .was the Investprivatbank, in June<strong>2009</strong>.BInformes nacionales 118 <strong>Social</strong> <strong>Watch</strong>100 10010088
However, the Association for ParticipatoryDemocracy announced that, due to the economiccrisis, many domestic banks have stopped grantingcredit to individuals for personal consumptionand mortgages and even to companies, as the latter,particularly in the building sector, are incapable ofrepaying the loans. On the other hand, with the potentialdepreciation of the national currency, the leu,versus main reference currencies, citizens are notcrowding in to ask for credit.Much of the banks’ liquidity was due to remittancesfrom Moldovans working abroad. It may bethat, since transfers have decreased, the banks haveless currency in their portfolios. Data from the NationalBank of Moldova show that currency reservesin April <strong>2009</strong> constituted USD 1.086 billion, havingdiminished by almost USD 586 million (35%) comparedto December 2008. This reduction was due tointerventions on the currency market under the formof sales and to payments made to the account ofcountry’s external debt, among other external payments,as well as the reduction of the exchange rateof component currencies of the currency reserves inrelation to the US dollar. The International MonetaryFund (IMF), for its part, predicts that if remittancesand exports continue to decrease, the currency reservesof the country might fall by USD 1.3 billion,which means in practice that the country will be withoutcurrency reserves.On the other hand, according to the Academy ofSciences of Moldova (ASM), the world crisis mighthave positive effects for the country. 5 While remittancesand imports will be reduced, this will “stimulatethe real economy in order to fill in the vacuum ofproducts on the internal market”. The depreciation ofthe leu is also seen as having some positive effectssuch as increasing exports. The need to be competitive,the ASM report stresses, might lead to animprovement in the quality of goods to conform toEuropean standards. 6A country dependent on remittancesIn the opinion of World Bank economists, countriesfor which money remittances constitute one third ofGDP are the most vulnerable to the economic crisis.Among these countries are Moldova and Tajikistan,where money remittances constitute 35% and 45% ofGDP respectively, and also Armenia and Kyrgyzstan.In 2008, Moldovan migrants sent back USD 1.66billion just through official channels – mostly fromItaly and Russia. Recent research by the InternationalOrganization for Migration confirmed that over 35%of the Moldovan population lives in households thatreceive remittances. 7A poll conducted in Moldova by CBS-AXA revealedthat 20% of the Moldovan beneficiaries of remittancesin 2008 are now not receiving money fromabroad and 45% reported that they receive less ormuch less than last year 8 . However, contrary to manyassumptions and concerns, there is no evidence of amass return of migrants due to the economic crisis,although the number of those who returned temporarilyin 2008 doubled (from 4.9% to 9.1%) and 8%of them declared they were returning for good. Whatis particularly interesting is that the main reasonmentioned for the return was family, while job-lossand lack of financially interesting opportunities wereonly secondary motivations.The Government’s responseThe Government’s priority is the payment of salaries,pensions, scholarships and social allowances. 9Programmes meant to help initiate new businessesand infrastructure projects are to be further launchedand implemented to ensure Moldova’s economicstability and to attract new foreign investments.Among the measures included in the anti-crisis (oranti-catastrophe) plan announced by President Voroninare: keeping the “zero quota” of corporativeincome tax for the next four years, with the aim ofsustaining the economic agents in the context ofthe global crisis; introduction of a fixed rate for theincome of physical persons – for example, 15% –and increasing the amount of non-taxable income;reducing the contribution to the social budget by5%; increasing VAT from 20% to 22% to ensure the<strong>Social</strong> Fund; and reducing budgetary expenses to aminimum of 20%.The anti-crisis plan provides approximately 40modifications to legislative documents. Parliamentwill examine the plan after the new composition ofthe Government is approved. According to the actingVice-Premier, none of these measures will give supplementaryincome to the budget; instead, they willsignal employers to make public the real wages.Shortcomings of the Government’s planIon Sturza, who was Prime Minister in 1999, hasdeclared that the fiscal reforms are not relevant forthe Moldovan economy and give the impression thatnew privileges are offered in exchange for support. Inhis opinion, the proposals testify to the fact that noneof the previous reforms were efficient or producedthe expected results.On the other hand, economists say that reductionby 5% of the social contribution comes too late.It threatens the de-capitalization of social funds andputs in jeopardy the capacity of the Government topay pensions. In addition, increasing VAT from 20to 22% will hinder consumption even further andreduce exports. Since the national economy is basedon consumption, it would have been better to lowerVAT. If these measures are the whole “anti-crisispackage”, then the Government is only taking care ofaccumulating new financial means in the budget. nReferencesFrunza, V. (<strong>2009</strong>). “All Bad is for Good: World Crisis Might HavePositive Effects for the Republic of Moldova”. 28 April.Available at .International Organization for Migration (DATE?]. Full referenceneededWorld Trade Organization (<strong>2009</strong>). “World Bank has IncludedMoldova among the Developing Countries with the HighestLevel of Vulnerability to the World Crisis”. 10 April. Availableat .5 Frunza, V. “All Bad is for Good: World Crisis Might HavePositive Effects for the Republic of Moldova”. 28 April <strong>2009</strong>.Available at .6 Ibid.7 See: .8 See: .9 See: .<strong>Social</strong> <strong>Watch</strong> 119 Moldova
MOROCCO45Direct impacts, weak responses99Morocco’s heavy dependence on the world economy 92 has made it vulnerable 37to the global economic100 100 68 crisis. A drop 100 in the demand 100 for Moroccan exports, 100the sharp reduction 100 in remittances and 78 a severe 10096inflationary process are some of the worst effects. The scant success of anti-crisis policies promoted by3 IEG of Hungarythe Government= 69,8aggravates the situationBCI of Indiaand= 68,5increases social instability. NewIEGproposalsof India =arise40,7from theunions and civil society in order to create new conditions for a more equitable economic and socialmodel.Espace Associatif 11000100Basic Capabilities Index (BCI)047 89100Gender Equity Index (GEI)100100100BCI = 81 GEI = 45While the impact of the systemic crisis is most evident84 Children reachingEmpowermentat an economic level, the cost in social and hu-5th grademan terms should not be overlooked. 52 This cost couldbe high, although it is hard to evaluate for at least tworeasons. The first is that the negative effect of the210global crisis on the Moroccan economy is only in its00initial stages and there is a risk that it may intensify9629in the near future, with ever-increasing social consequences.The second is related to the fact that, 98 at the Births attended by100 100 7263100100 100100 84 100100moment, there are no reliable and disaggregated officialdata available with regard to the social impacts.IEG of Morocco = 44,8skilled health personnelSurvival up to 5 Economic activityEducationBCI of Marruecos = 81,1IEG of Moldova = 73,9to a decrease in poverty of 4.2 percentage points, (e.g., cereals, sugar and cooking oil) represent overThe social aspects of the crisisfrom 23% in the late 1990s to 19% at present. However,50% of the family budget. 3The social impacts will make themselves felt throughMRE remittances have fallen about 15%, from The loss of purchasing power will consequentlyseveral macroeconomic channels. According to the MAD 8,200 million (some USD 1,020 million) in January-Februarybe reflected in a reduction in the quality and quantityeconomic growth forecasts of the High Commission2008, to little over MAD 7,000 million of foodstuffs consumed and/or the sacrifice of otherfor Planning (HCP, in 100 French), non-agricultural (USD 870 million) for the 100same period in <strong>2009</strong>. A majorexpenses (such as education, 100 health and transport).activities will show a net reduction of 3.9% in <strong>2009</strong>reduction should therefore 91be expected in sources Children, pregnant women and nursing mothers willagainst 5% in 2008, due to the worldwide recessionof income and in the purchasing power of the families be at particular risk. Moreover, there is a risk thatwhich 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-42products to fall 1.2% in <strong>2009</strong>, after a growth of 2% in tors of the population. The negative impact of the cronutrients – such as vitamins and minerals – which2008. Exports dropped 31.8% in January-February reduction of MRE transfers also risks impacting on close to a third of the population suffer from, especially0<strong>2009</strong>, compared to the previous year, while the cost0real estate, which provides work for thousands ofwomen and children under the age of three.0of imports only fell 15.7% as a consequence of lower Moroccans in many regions of the country, particularlyin the 99 east. 298 The energy and environmental crises99100prices for raw materials in recent months. Tourist100 100 69100100 100100 75100100income and foreign investments decreased 9825.5%Moreover, the crisis will probably mean increasedThe energy crisis has aggravated the difficulties 97 ofand 71.9% respectively between January-Februaryunemployment among some MREs, who daily life for the disadvantaged strata and even for the2008 and the sameIEGperiodof Portugalin <strong>2009</strong>.= 73,1therefore risk lapsingBCI ofintoRumaniapoverty.= 96In Spain, for middle strata, particularlyIEG of Romaniadue to rising= 71,3water, electricity,sanitation and public transport bills, whichThe impact on employment is already being felt. example, the unemployment rate amongst MoroccansThousands of workers – particularly women – have– 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 consequencedrastically cut. At the same time, several companies xenophobic acts, which often focus on Maghrebiof demographic pressures and a develop-are beginning to consider salary cuts, postponing foreigners, will probably increase in several Europeancountries.91threatens to exhaust resources and worsen standmentmodel focused on growth and urbanization,100100100staff promotions and training incentives, as well ascutting back on training budgets. Others are abandoningThe third factor affecting the vulnerable soardsof living and sanitary conditions. The floods,hiring projects and/or 52 favouring short-term cial layers of the population is inflation, which has downpours and snowfalls which have recently af-44employment contracts.increased sharply during the last two years, rising fected several regions, killing over 40 people andAnother 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 Moroccanperiod, to 3.9% in 2008. This 0 rate, however, does not are a good example of these 0 dangers.Residents Overseas (MREs, in French), which show the wide-ranging price hike for staple items In conclusion, the impact of the multilateral99 in 2008 represented over 8% of Moroccan GDP. Accordingto some studies, these transfers contributedduring the 95last two years (see chart). The impact 98 of crisis of neoliberal capitalism places the fulfilment 8861100 100 72100100 100100 10010097these increases will be more damaging for disadvantagedsocial strata, amongst whom basic foodstuffs the right to food, to work, to health and accessof economic and social rights at risk, particularly98to66100088.11 Associations, unions, researchers and representatives ofIEG of Usa = 73,8 BCI of Venezuela = 94,5IEG of Venezuela = 67,7social movements and Espace Associatif participated in this 2 Bourchachen, J. “Apports des transferts des résidents à 3 High Commission for Planning (HCP). Journée africaine dereport. Said Saadi (university graduate and associative actor)was the editorial director.l’étranger à la réduction de la pauvreté: cas du Maroc”,SessionI-Pa 5c, Montreux, September 2000.la statistique on “Défis de la hausse des prix des denréesalimentaires”. Rabat, <strong>2009</strong>.National reports 120 <strong>Social</strong> <strong>Watch</strong>100 100 98100
water and to mobility. Moreover, new populationgroups run the risk of falling into poverty. Achievingthe Millennium Development Goals in Morocco maybe seriously endangered if the current crisis persistsand worsens.Government measures in response to thecrisisThe Government has taken measures to help someof the sectors which are particularly exposed to thecrisis, such as the textile and clothing, leather, andautomobile equipment sectors. This anti-crisis planhas three dimensions:• With regard to social aspects, the State will takeon 100% of employer payments to the National<strong>Social</strong> Security Fund, and the export companiesbenefiting from this measure undertake to retaintheir personnel.• In the financial area, the Central Guarantee Fundwill provide guarantees in favour of exportingcompanies so that they can have access toexploitation credit, and postpone <strong>2009</strong> expirydates for investment credit.• In commercial terms, the State will assume 80%of the expenses of trade or market diversificationmissions.In order to limit the impact of higher global priceson basic products, the Government has adoptedan increase in Compensation Fund amounts to subsidizedproducts, the temporary suspension of taxeson wheat imports and a slight increase of minimumhourly wages.Exporters in the textile and clothing sector benefitedfrom the social dimension of the anti-crisisplan, which did not prevent them from reducingworkers’ salaries or cutting working schedules. Thefinancial and commercial measures had very littleeffect, due to the reluctance of banks and the lethargyof exporting enterprises. Lay-offs and restrictionsin working conditions have also affected severalsectors which are barely covered by the plan (suchas tourism, export agriculture and construction).The supposed social measures had scant effect onthe rise of the prices of staple items, most of whichare deregulated, while the increase of the minimumwage barely compensated for the rise in the cost ofliving. This led to a net loss in purchasing power forthousands of workers. It may be concluded that theGovernment still has a greater interest in protectingcapital than in defending the economic and socialrights of the disadvantaged social strata.CHART 1. Evolution of the cost of living index (in %)Year 1998 - 2007 2008 (11 months)Non-food products + 1.7 +1.4Food products + 1.6 +1.8-durum wheat - +39.5-soft wheat - +22.3-flour - +21.8-industrial butter - +25.4-cooking oil - +41.4-sugar - +3Civil society’s responseIn such a situation it is hardly surprising that thereshould be new outbreaks of worker and social unrest.Protests are led by the unions, by some civilsociety associations and by coalitions of both, andjoined by left-wing politicians and other groups. Renewedconflicts with unions emerged as a resultof the deterioration of economic and social rightsand the failure of social dialogue, due to the Government’srefusal to satisfy union claims with regard tothe revaluation of salaries and family subsidies, civilservice promotions, compliance with trade unionfreedom and the right to strike, and the adoption ofsocial protection.To date, there have been several sectoral strikes(education, health, local communities, etc.) and ageneral strike as well. Amongst other particularlydynamic social movements, it should be mentionedthe various struggles fostered by the CoordinatingCommittee against the High Cost of Living, as wellas by the National Associations of Unemployed Professionals.Several collective action strategies havebeen deployed, such as sit-ins, spontaneous popularmarches and national mobilization days against poverty.Demands make reference to halting the increaseof prices, sustaining the Compensations Fund, applyinga mobile salary scale, bringing public servicesup to standard, stopping the privatization of waterand electricity distribution, and claiming the right towork in the civil service. The Government has suppressedsome of the demonstrations with a heavyhand; a case in point are the events that took placein the cities of Sefrou and Sidi Ifni. Moreover, certaindifficulties appear to be hindering the activities ofthese movements, such as internal disagreements,little activity with regard to vulnerable populationsand the absence of political perspective.This does not mean that there are no alternativeproposals in order to confront the crisis and promotethe economic and social rights of the disadvantagedsocial strata. On the basis of the principle that theState should guarantee economic and social rights,social movements propose creating an insurancefund against unemployment, the defence and democratizationof public services, combating monopoliesand situational income, and establishing aguaranteed minimum income, as well as supplyingFuente: HCP (<strong>2009</strong> statistics).civil society with data and information in order toraise the awareness of public opinion and mobilizevulnerable populations. In the long term, the mainrole of the democratic State must be to promote economicand social rights through the creation of citizenforces, which favour a new economic and socialmodel based on social justice and give priority to thesatisfaction of basic needs, food autonomy, socialeconomy, and the protection of the environment andcultural diversity. n<strong>Social</strong> <strong>Watch</strong> 121 Morocco
100mozambiqueWithout dialogue there can be no human development0810000NO VA037 Mozambique’s exports – and probably its tourist industry – will suffer as a consequence of the world95crisis. 78 Food security and rural development are under threat because 100 direct investment is lacking 100and because incentives are paid for crops grown for biofuels rather than food. As there is no ongoingIEG of Indiaparticipative= 40,7dialogue between theBCI ofGovernmentIrak = 88,4and the people, progressIEGin humanof Iraq =development0is almost impossible in the short or medium term. The main challenges facing the country includestrengthening democracy and making public administration fairer and more transparent.9289 99100 100 100100 10010081100<strong>Social</strong> <strong>Watch</strong> MozambiqueCustódio Duma 1100Basic Capabilities Index (BCI)100BCI = 66 GEI = 64Children reaching5th grade64Gender Equity Index (GEI)EmpowermentThe Government claims that the global financialcrisis will not affect the country’s economy. In linewith this stance it has adopted a policy of monitoring34the economic sector, directly supervising the210commercial banks and paying special attention to00areas that can withstand the crisis such as energy96294886and gas production. It has also announced through100 100 100100 100100 6884100the Ministry of Development and Planning that the Births attended by92,1country needs USD 120 million to finance the <strong>2009</strong> skilled health personnelSurvival up to 5 Economic activityEducationIEG of Morocco = 44,8 BCI of Mozambique = 66,1IEG of Mozambique = 64,4balance of payments, and that this will serve to keepthe macroeconomic indicators stable.However, the Mozambique International Bank(Millennium Bim) has published a report forecastingthat the nation’s economy will shrink becausethe G-19 countries that finance more than half thenational budget, and those 100that make foreign direct981 Technical Team: Salvador Nkamate – Human Rights League,Karina Cabral – Mozambique Debt Group, Jorge Cuinhane –AWEPA, Naldo Chivite – MONASO.IEG of Venezuela = 67,72 UNDP. “Human Development Indices: A Statistical Update2008.” New York: United Nations Development Programme.Available from: .half the population remains poor. There are widevariations between the different regions of the country.The further north one goes from the capital city,Maputo, located in the south, the worse poverty becomes.A 2007 population census shows that around70% of the population 100 still lives in rural areas, andinterest in society for this and a whole range of otherills including corruption, lack of transparency in publicadministration and the poor functioning of publicservices. He maintained ICB de Viet that poverty Nam = stemmed 92,8 from3 See: .100the fact that the people do not have a spirit of enterpriseor make any effort to better themselves. Hesuggested that the colonial past had given people aninferiority complex that made it difficult, even today,for them to free themselves since the key to liberationis higher self-esteem.investments, will have negative economic growth.96100more than 50% in the central and northern parts of This argument emphasizing self-esteem andPrices for aluminium, tobacco, sugar, tea, chestnutsthe country. 3 In the main cities, many families and the spirit of enterprise has been taken up and en-and prawns have fallen, which is expected to groups of young people have been reduced to livlargedupon by the whole ruling class, but the real is-42negatively affect export volumes, and this in turn will ing in the open (in public spaces, on the streets or sue is that most of the people have little or no accessweaken activities that foster economic growth and on rubbish tips) or in houses that are falling down. to education, timely health services, safe and good000hamper efforts to promote tourism.The unemployment rate is 30%–35% of the economicallyactive population. According to one youth other public services.quality transport, law NO and order VA 0,0 or a whole range of0,098 Increasing inequalityorganization, 99 99100the number of sex workers aged 14 to The population in general, and also foreign diplomatsin the country, are deeply concerned by the100 100 75100100 100100 100100According to official figures, the country 97 enjoyed 25 has increased in the last five years.an average annual GDP growth rate above 8.5% in In February 2008, the sharp increase in the way the ruling party and individuals near the seat of2000–2007, but thisIEGfell toof6.2%Romaniain 2008= 71,3and is expectedto be about 4% in <strong>2009</strong>. However, the coun-Maputo made up mainly of women and school-aged criticism of the way a privileged minority flaunts itscost of living sparkedBCIoffof Serbiaa kind of=people’s98,1revolt in power are enrichingIEGthemselves.of SerbiaThere= 0is widespreadtry’s evolution in terms of human development andimproving its people’s quality of life is still fraughtwith contradictions. GDP is growing, but at the sametime the cost of living is rising and consequently people’schildren. This spread to the province of Gaza and thetown of Manica, and for two days the main publicservices were paralyzed. The Government managedto prevent the conflict from having serious conse-considerable wealth in front of the poverty-strickenmajority. Anti-corruption organizations like the PublicIntegrity Centre say the country badly needs a lawto regulate conflicts of interest since its political rul-real incomes are falling. <strong>Social</strong> inequalities are quences by lowering fuel prices and subsidizing the ers are almost all from the entrepreneurial class. One100100100becoming increasingly visible. According to UNDP, 2 cost of transport. 92outstanding example of this is the President himself,Mozambique is 175 th on a list of 179 countries rankedwho is a shareholder in dozens of enterprises operatingin the country. 4by their human development level.No transparency4444As regards the Millennium Development Goals Mozambique is approaching its fourth multi-party(MDGs), the UN recognizes that progress has been elections, and the ruling party is seeking the reelectionAgriculture and hungermade in three areas; poverty, 0 infant mortality andmaternal health. However, although the poverty rate of Armando Guebuza. 0 Guebuza waged his2004 campaign under the banner of the fight againstMore than half the population 0 survives on subsistenceagriculture, but there has been very little investmentin this area. The proportion of the national98 did fall by 4% between 2000 and 2007, more than poverty, and 88 he blamed permissiveness and 98 lack of61100 100 100100 100100 100budget allocated 81 to agriculture is a meagre973%–4%1004 Mosse, M.“Corrupção em Moçambique: Alguns elementosIEG of Vietnam = 73,9para debate.” 2004. Available from: .100BBNational reports 122 <strong>Social</strong> <strong>Watch</strong>100 100100
per year, only a third or a quarter of what is spent onthe security services. The State has implementedan incentive scheme to stimulate the production ofjatropha, a plant that provides the raw material forbiofuels, and encourage farmers to switch from foodproduction to this crop even though a market for ithas not yet been developed. One example of the direconsequences of this policy occurred in Mogincual,which suffered a famine in 2008 as a result of lowagricultural food production because priority hadbeen given to jatropha. 5 The land that has been setaside for growing this crop, mainly in the provincesof Gaza, Manica, Solafa, Tete and Nampula, is veryfertile, and in the years ahead this may mean a reductionin food production for family consumption,which will further intensify the problem of hunger.To make matters worse, specialized enterprisesare planting other kinds of crops for export such assugar cane.Problems in education and healthAccording to UNICEF, 6 more than a million childrenare growing up outside the education system, andthe average teacher in Mozambique has to cater to74 pupils. To improve the education system, enrolmentfees should be abolished and there should beincreased investment in infrastructure and teachingmaterials, as well as the number of teachers,and access to education for young people shouldbe widened. UNICEF stresses that while significantprogress has been made in expanding teaching in thecountry, this has not been accompanied by increasedinvestment in the sector. It is known that around halfof primary school teachers have no formal vocationaltraining.National health services reach only 30% of thepeople. 7 More than 65% of children suffer from vitaminA deficiency. In 2008 the G-19 countries injectedaround EUR 308 million into the general budget andwarned Mozambique that it would have to step upthe fight against malaria (still the deadliest disease),cholera and HIV and AIDS. The programmes to preventor combat diseases are very feeble and in anycase they are concentrated in the main urban areasso rural populations suffer more. 8 Other outstanding5 Gil, F. “Atraso na assistência alimentar: Tragédiaespreita Mogincual.” Available from: .6 UNICEF. “Países Africanos reunidos em Nairobi discutemabolição de taxas escolares”. 5 April 2006. Available from:.7 Machava, J. R. “A situaçao da pobreza en Moçambique:diferenciaçoes regionais e principais desafios”. RevistaEletrônica de Geografia, 5(1). 2007. Available from:.8 Ibid.problems in the health care field include the lackof qualified human resources to provide training inthe sector and the need for greater technical andfinancial resources.The HIV and AIDS situation is very serious. It isestimated to be spreading at a rate of 500 new casesper day 9 and now affects some 16.2% of the population.The UN reports that the incidence is 1.7 timeshigher among women. 10 It has been estimated thatAIDS will reduce the country’s per capita economicgrowth by 0.1%–0.3% per year. Life expectancywould also fall from 37.1 years in 2006 to 35.9 yearsby 2010. 11Other challengesThe G-19 countries have also called on the Governmentto strengthen its capacity to guarantee socialsecurity and improve access to justice. They haveexpressed concern about excessive bureaucracy,lack of impetus in the fight against poverty and littleprogress in combating corruption, even though thishas been identified as the root cause of numerousother ills that are putting a brake on Mozambique’sdevelopment.To address income inequality, in 2007 the Governmentset up a fund known as the “Seven MillionMeticals” (the nation’s currency, around USD264,000) to stimulate rural districts by trainingpeople organized in associations to undertake localincome-generating initiatives. However the fund hasbeen severely criticized for having no clear criteriaregarding its objectives or how it would be managed.The district administrations that have beenput in charge are not competent in the managementof banking or microfinance institutions. In addition,workers in these rural districts are among the lowestskilled in the country. It has been reported thatfake associations have been set up to receive themoney, more than half the debtors cannot be locatedand there are no guarantees that the loans will berepaid. Some critics claim that the real purpose ofthe fund is to maintain the visibility and presence inrural districts of the Frelimo party, which has been inpower since 1975.The Government has implemented a mediumtermpublic sector pay policy in an effort to attractand retain skilled personnel, particularly in ruraldistricts. But in practice professionals with higherlevels of training prefer to seek employment in theprivate sector, where pay levels and working conditionsare better.9 National Statistics Institute. “Contendo dados do HIV/SIDA.”CD-Rom. 2004.10 See: .11 See: .In November 2008, the country was reorganizedinto 43 municipal councils (from the 33 thathad existed previously). The scheme to continuedecentralizing the sectoral funds is still in operation,and the same applies to how these funds areadministered. However it has emerged that a largeportion of the budget is not being administered atthe local level but is still controlled by the centralGovernment or the provinces. These resources haveto be decentralized just as the administration hasbeen. For this to take place, people have to be trainedand the necessary infrastructure, electrical powergrid, telephone network and banking institutionshave to be developed.ConclusionWhile the Government has managed to maintaina policy that is applauded abroad, at home it hasnot maintained ongoing, inclusive and participativedialogue with the people, so it is almost impossiblefor there to be progress in human development inthe short and medium term. Other big obstacles todevelopment are the fact that the legal system isweak and there is discrimination in relation to partyallegiances. So the problems remain: democracy hasto be strengthened and public administration has tobecome fairer and more transparent. n<strong>Social</strong> <strong>Watch</strong> 123 Mozambique
nepal10010010042Crises, challenges and perspectives0NO 0 VANO 0 VAAccording to experts, Nepal will feel the effects of the global financial crisis on several fronts. Othercrises, related to the environment, food, energy, finance and politics 100 have been buffeting the society 10097for a long time. It is imperative to see this reality from a gender perspective, and to analyse the role ofIEG of Italycivil= 64,5society in promoting initiatives and programmes to help alleviate the situation of the vulnerablepopulations disproportionately affected by the downturn.10055100 100 100100 100IEG of = 47,310090Rural Reconstruction Nepal (RRN)Neeraj N. JoshiSarba Raj Khadka100Basic Capabilities Index (BCI)100BCI = 58 GEI = 51Children reaching5th grade99Nepal, which ranks 145 out of 179 countries in the2008 Human Development Index, faces multiple interrelatedcrises – including food, energy, climate0and politics – as well as NO continuing, VA 0,0 though currently0sporadic, civil unrest. 1 So far, no significant impacts1910094of the global financial crisis have been reported;100 100100 100however experts warn that the country is likely to be Births attended byaffected in various ways.skilled health personnelSurvival up to 5For example, remittances, which currently accountfor 19% of GDP, have been extending a lifelineto the economy for almost a decade. 2 It is chieflydue to them that the balance of payments is still insurplus despite a huge trade deficit. Furthermore,they helped decrease the poverty rate from 42% in1995/96 to 31% in 2003/04. 100 More than 1.2 millionpeople are working overseas. 3 A slow-down of theconstruction and service sectors in the Middle East,a major source of remittances, and in countries such42as South Korea, Malaysia and Japan, will reducedemand for Nepali labour abroad. Since over 34%0of households receive remittances, an increase ofover 80% since 1994/95, their decline could affectprogress in poverty alleviation and potentially lower100 67100domestic demand, as households will be more 97 hesitantto spend money due to declining income. Thebalance of payments surplus will go down.The global slow-down and recession in developedeconomies will also affect exports, foreigninvestment and overseas development assistanceas well as the service industry, which contributed50.9% of GDP in 2007. In terms of merchandisetrade, about 80% of Nepal’s readymade garments100are exported to the United States. Germany is thelargest market for its carpets. Delayed financial recoveryin these countries is likely to have a negativeReduced funding will force these organizations to1 The end of the Communist Party of Nepal (Maoist)-led0 60rebellion in November 2006, followed by the institution of anew Government in May 2008, has not brought violence to acomplete end yet. 344 Pyakuryal, B. “A Matter of Life and Debt”, 2008.904943Available from: .82 100Economy.” República, 2 December 2008. Available at:.6 Singh, M. “Global Financial Crisis: Its Impact.” The RisingIEG of Yemen = 303 Parajuili, K. “Nepal Fears Global Financial Crisis, LooksNepal, 2008. BCI of Zambia = 71,3to China.” Available from: .Rising Nepal. <strong>2009</strong>.Gender Equity Index (GEI)Economic activityEmpowerment57100 74 100EducationIEG of Burma = 0 BCI of Nepal = 58,4impact on the country’s export trade. 4 The Confederationof Nepalese Industries recently estimatedthat the manu facturing sector would incur a lossof USD 256.16 million. 5 A further downward spiralin demand in the already distressed garment andtextile industry, combined 100 with 99 the continued declinein global prices of key exported commodities, couldresult in the total loss being much higher.IEG of Nepal = 51,2scale back development initiatives. This will havea negative impact on the fight against poverty andother development challenges. 8Environmental crisisGlobal warming resulting 100 from climate change, towhich Nepal is a minimal contributor, also threatensto melt Himalayan snow and glaciers, thus renderingthe glacial environment unsafe for humans. AThe crisis will also have a significant impact on43the tourism sector. Europe accounts for 25.7% and recent analysis from the Department of Hydrologythe US for 5.9% of the total tourist arrivals. As the0Western financial crisis steadily worsens, potentialtourists are likely to postpone or cancel travel plans.and Meteorology shows that the country faces an0annual average temperature rise of 0.06 o C. Continuedwarming has affected the Himalayan ecology,By working 100100with the Government and launching promotionalpackages, the Hotel Association of Nepal substantially in terms of glacier retreat 82 100including snowfall patterns and ice melting – most100 71and significantis hoping to entice about a million tourists in 2010;increases in the size and volume of glacial lakes,IEG of Slovakia = 68,8however if the globalBCI ofeconomicEsloveniaslow-down= 99,5continues,this dream seems unachievable. 6Flooding (GLOF). There are at least 20 lakes in themaking them moreIEGproneoftoSloveniaGlacial Lake= 65,1OutburstThere will also be downward pressure on thetotal foreign exchange reserve held by the CentralBank. It will try to tame the inflation rate, currentlyover 13%, by raising interest rates. Even the bankingmountainous region at risk, and there is growingconcern that an earthquake or excessive precipitationcould prompt GLOF, washing away settlementsand destroying infrastructure such as hydroelectricsystem may be in trouble if the vibrant real plants, roads and bridges along river basins. 9 More100100estate market slows down. 897 Meanwhile, the aid worryingly, melting Himalayan glaciers could have aindustry will not be spared from the crisis. NGOsin Nepal receive funding from corporate donors,governments and large foundations in the West.huge impact on water resources and fluvial ecologicalsystems across South Asia. 10In addition, rainfall patterns seem to have100 100 10062100026changed quite dramatically over the last few years. Itis no longer easy to predict 0 when the monsoon rains8 Sapkota, C. “Constraints to Industrial Sector Growthin Nepal.” 100 Available 64 from: .9 ICIMOD. “The Melting Himalayas: Regional Challenges andLocal Impacts of Climate Change on Mountain Ecosystemsand Livelihoods.” IEG of Technical Zambia Paper. = Kathmandu: 56,2 InternationalCentre for Integrated Mountain Development (ICIMOD). 2007.10 Ibid.23100100100BCI ofNational reports 124 <strong>Social</strong> <strong>Watch</strong>100
will come and how long they will last, and crop yieldsare being reduced. In 2006, farmers had to replanttheir rice crop as the rains stopped abruptly. And thissecond sowing ended badly as heavy rains fell duringthe harvest, damaging the crops. The monsoon floodsof 2008, which can also be attributed to global warmingsince flooding was due to melting snow from themountaintops, displaced over 180,000 people.Energy crisisNepal is the second richest country of the world afterBrazil in terms of fresh water resources. It has thepotential to produce 82,000MW of hydroelectricity,and the production of half this quantity is technicallyfeasible. However, so far only about 1% of Nepal’shydroelectric potential is being tapped and in 2008and <strong>2009</strong> the country experienced the worst electricitycrisis in years. A chronic imbalance between energyconsumption and energy resource endowmenthas been created. Every year, demand for electricityincreases by 10% whereas production remainsconstant. The mismatch between the demand andsupply forced the Government to declare a nationalpower crisis in December 2008.The Nepal Electricity Authority then imposed 12-hour daily power cuts. As the dry season approachedin early <strong>2009</strong>, power cuts increased to up to 16 hoursper day. As a consequence, productivity in the industrialsector has declined by at least 50%. The lack ofpower is putting several small and medium-sizedenterprises (SMEs) out of business. These SMEs notonly produce final goods and provide employmentbut also supply intermediate goods to larger firms.The shortage of power has also seriously affectedother businesses, with several domestic jute mills,local FM radio stations, cyber businesses, paper factories,hotels and tourist spots going under. Peopleare increasingly using diesel fuel, the supply of whichis erratic as it is imported. 11 In the rural areas therehas also been pressure on the forests, due to the lackof alternative sources of energy.Food crisisNepal is listed among 16 “hunger hotspot” countrieswith the world’s most serious problems of food insecurity.12 The years of conflict have deterred investmentin agriculture. Some 69% of the populationdepends on agriculture, many of them subsistencefarmers on small plots of land, but the “green revolution”has not achieved substantial results amongthe peasantry. Falling productivity has removed thestatus of self-sufficiency in food that the countryonce enjoyed.11 Hassan, M. “Nepal Heading Towards a Dark Future: NeedsMore Electricity.” Available from: .12 Shamsuddoha, M. et al. “Revamping Policies for AttainingFood Security in the LDCs.” Geneva: INSouth Centre.Available from: .The World Food Programme is currently providingfood assistance to 2.7 million people. Thesituation was greatly aggravated during 2008, notonly by rising prices but also by India’s decision tosuspend exports of rice on which Nepal depends.Conflict and frequent natural disasters have addedto the problem. UNICEF calls malnutrition the causeof 60% of child mortality, 13 and the World FoodProgramme estimates 41% of the population isundernourished. 14The widespread dependence on subsistenceagriculture underlies many problems of environmentaldegradation, in particular the depletion offorest resources, which in turn leads to loss of biodiversityand desertification. Survival strategies, theknowledge of the poor and sustainable livelihoodoptions need to be linked.Political and social crisisThe current coalition Government faces severalchallenges. It is tasked with establishing a lastingpeace, institutionalizing democracy by drafting aConstitution for the Federal Democratic Republicof Nepal, and setting up a federal system of governmentacceptable to most, if not all, sectors ofsociety. However, delayed action on these tasks hasleft room for multiple problems. Several splinterarmed groups have emerged in different parts ofthe country and more are in the offing. Their dailyabductions, extortions, killings, lootings, thefts,strikes and skirmishes have further destabilized thecountry and are a big threat to the newly establisheddemocracy.Gender impacts of the crisesand the role of civil societyThe impacts of the diverse crises will affect bothwomen’s and men’s livelihoods. With changes in climate,traditional food sources become more unpredictableand scarce. Women’s livelihoods are moredependent on the natural resources threatened byclimate change, which can cause loss of harvests,often their sole source of food and income. When theland is inundated, roads and houses are damaged.Much of the burden of caring for people migratingfrom the flooded areas falls on women. The exacerbationof existing water shortages affects womenin particular as they are traditionally responsible forwater collection in their communities.13 See .14 See .Large sections of the population continue to beexposed to civil unrest, limiting access to food andsocial and economic services. This means increasedhardship, especially for women, whose propertyrights are not guaranteed and who lack equal accessto resources and employment.Civil society organizations operating at localand international levels can play a significantrole in helping to disseminate the message of thegendered effects of the crises through advocacy,lobbying and campaigns. In particular, they canadvocate for the integration of a gender perspectivein the Government’s development plans, and in thenegotiation of adaptation and mitigation strategiesin order to reduce the vulnerability of Nepalesewomen and men. n<strong>Social</strong> <strong>Watch</strong> 125 Nepal
100Nicaragua1009244A major change of course is needed10044In Nicaragua, the fall in income from exports and remittances is already beginning to make itself felt and is889861having a tangible effect in terms of higher unemployment and increased 100 poverty. 81 In the short term, to limit 100 the9897impact of the crisis, the government should increase public sector expenditure and thus stimulate economicactivity and employment, even though these measures alone do not attack the country’s main problems. A majorIEG of Venezuela = 67,7change of direction and a completeICBoverhaulde Viet Namof the= 92,8IEG of Vietnam = 73,9current growth model are urgently needed. Agriculture isvery backward and must be revived, and a major effort to recapitalise the country’s human capital is essential.98100 100 100100 100Comisión Económica de la Coordinadora CivilDr. Adolfo Acevedo100Basic Capabilities Index (BCI)100BCI = 70 GEI = 52Children reaching5th gradeGender Equity Index (GEI)EmpowermentThe current international economic crisis is not onlythe most serious and severe since 48 the Second World47War but also the most synchronised in the sense that20although it first began in the developed countries000it is now affecting the economies of every regionin the world at the same time. In <strong>2009</strong>, for the first1009636time in more than 60 years, the world’s economy100 100 72100100 67100100 100will have negative economic growth. The 97 InternationalMonetary Fund (IMF) has announced negative skilled health personnelSurvival up to 5 Economic activityEducationBirths attended by99growth (-1.3%), and IEG the de OECD Francia has = stated 72 that worldICB de Nicaragua = 70,1IEG de Nicaragua = 51,5trade will contract by 13.2%. The crisis is expectedto cause the loss of 50 million jobs worldwide 1 , and itis predicted that 200 million people will sink into poverty.The World Bank has announced that more than400,000 children could die from avoidable causes asa result of the crisis. 2In Nicaragua in the short term, the crisis willprobably affect the growth of two crucially importantareas of the country’s economy, namely exportsand family remittances, and it will lead to increasedunemployment. Between January 2008 and March<strong>2009</strong>, a net total of nearly 20,000 jobs were lost inthe export-processing zones alone.Presumably the impact of the international economiccrisis will be reflected in a considerable lossof dynamism in aggregate demand. This in turn willcause a serious slowdown in the rate of growth ofproduction and employment, and there is the inherentrisk that the country might slide into recession.Various projections about Nicaragua’s economyshow that to a greater or lesser extent the maincomponents of aggregated demand will deceleratemarkedly in <strong>2009</strong>.The reduction in exports of goods and services,in the flows of family remittances and in internaland external credit, added to liquidity problemsand increased uncertainty, will probably translateinto strong recessive pressures that, with varyingdegrees of intensity, will affect many sectors of thecountry’s economy. The slowdown in the rate atwhich aggregate demand is growing could translate1 See: ILO World Employment Trends, <strong>2009</strong>. Available at:.2 See: .00into a GDP growth rate of only 0.5%, but this is themost optimistic scenario, and it is far more likely thatthere will be negative growth (-1%).Falling exports and remittancesThe production of goods and services for export hasbeen the main driving force behind Nicaragua’s economicgrowth, but on the other hand goods and servicesfor the domestic market have hardly grown at all inthe last fifteen years. Moreover, Nicaragua’s exports areheavily dependent on the United States. Before 2008this accounted for 26.7% of the country’s GDP, but thismarket has been severely battered by the crisis and byMarch <strong>2009</strong> exports had shrunk by nearly 19%. 3In 2008, family remittances amounted to USD807 million or nearly 13% of GDP, but by May <strong>2009</strong>they had fallen 4%. 4 Four out of ten families in Nicaraguareceive remittances, and 60% of this flow comesfrom the United States. Remittances provide an essentialsocial cushion in the Nicaraguan economy,and it has been estimated that without them the rate ofpoverty would increase by four percentage points.Unemployment and povertyAccording to the ECLAC, the unemployment rate increasedfrom 7.5% in 2008 to between 7.8% and 8.1%in <strong>2009</strong>, and the informal market expanded. This risemeans that up to 1.8 million people have been added tothe 1.6 million who were already unemployed. 53 See: .4 See: .5 See: .1000This, in turn is reflected in the fact that there is lessemployment and it is of worse quality. The loss of formalemployment means that more and more peopleare losing the benefits of social security protection,which affects not just the main recipients but alsotheir dependants.It is difficult for people who lose their jobs in theformal sector to find another in the same part of theeconomy, as this sector is shrinking at an alarmingrate. The poor cannot afford the luxury of remainingunemployed, so they will probably drift into employmentor sub-employment in the informal sector. Butthis sector has to absorb not only these new unemployedbut also most of the young people who jointhe economically active population, so it will becomesaturated and income per person will fall. Povertyand extreme poverty levels are already very high andthey will increase still further, so the social fabric willdeteriorate even more.In Nicaragua, income is very unevenly distributed(Gini rating: 0.56). Population groups in thelowest reaches of the income distribution scale benefitless in phases of economic growth and they tendto suffer more from any adverse shock that occurs.People in the poorer sectors of the population donot have savings or assets to fall back on to alleviatethe impact of economic hardship and carry themthrough difficult times, and the crisis could rapidlypush many of them below the extreme poverty lineor even into indigence.In all likelihood, as unemployment increasesvarious ways of generating income will emerge inthe informal economy. These will take the form ofsmall-scale and family undertakings as a survivalstrategy, and more people will seek ways to becomeself-employed. These strategies could make for aconsiderable increase in unpaid work by members100100National reports 126 <strong>Social</strong> <strong>Watch</strong>
of the family, and the main weight of this will fall onwomen and children. But employment in small-scaleand family undertakings will in turn become saturatedso per capita income in households that dependon these jobs will fall even more, in a scenario inwhich the levels of poverty associated with this kindof employment are already very high.To make matters worse, in 2007-2008 foodprices increased sharply and this had a cruel impacton the poor, as it severely restricted their access tofood and aggravated their situation. In the twelvemonths up to December 2007, the price of food indexjumped by 24.9%, and up to December 2008 it roseby another 22.5%.This worsening food access situation has notonly affected the urban poor, some 93.8% of whom(according to the FAO) are net purchasers of food, buthas also impacted on the rural poor, of whom 73%are also net buyers. The worsening economic straitsin which many households find themselves couldhamper their access to food even more, and exacerbatethe problem of hunger in a country in which 22%of the population are already undernourished.Women are affected moreWomen as a population group are particularly vulnerableto the effects of the crisis. According to theNational Institute of Information about Development(INIDE), some 71% of working-age women in ruralareas and 58% in urban areas are not in the workforceand therefore do not have their own sourcesof income. In many cases, low household incomemeans that women are overloaded with work athome, trying to produce the goods that the familycan no longer afford in the market.Of Nicaraguans who are employed, some86.5% work in services (35.8%), trade (32.3%) andmanufacturing (18.4%), and these sectors are vulnerableto the adverse effects of the crisis in termsof unemployment or jobs becoming precarious. Infact, job losses in the export-processing zones haveimpacted more on women than on men.Measures to contain the effects of the crisisWhat is mainly needed to contain the adverse effectsof the international economic crisis is to counter theslowdown in aggregate demand or total expenditureoriented to the acquisition of goods and services atthe domestic level. When it comes to putting a brakeon trends leading towards recession, the instrumentthat governments most frequently have recourse tois to increase money and credit in the economy tostimulate consumer spending and investment andto attenuate liquidity problems. This policy wouldmean that the central bank could (1) lower the officialreserve limit (the legally stipulated level of reserves),(2) re-purchase bank bonds that have been placedon the open market, or (3) lower the discount ratefor credit lines for the financial system.In any case it will be essential to make creditmore easily available to support banks that couldeventually run into liquidity problems – due for exampleto the withdrawal of their foreign sources offinance – or to enable banks to provide assistancefor enterprises with liquidity problems. In an extremecase, the central bank could even assist banks withsolvency problems to recapitalise. In no way wouldthis be privileged treatment for the financial sector,it would mean underpinning the financial system becauseinstability in that sector could have extremelysevere repercussions in the economy as a whole.Bear in mind that the current world crisis began witha “simple crisis” in the financial sector.Up until now the most important measure theGovernment has taken was to obtain a contingentcredit line with the Central American Economic IntegrationBank (BCIE), and this will be utilised if someNicaraguan banks eventually find themselves in financialdifficulty.Another aspect of the problem is that the bankswould find it hard to expand their credit operationsaggressively in a context of such weak and uncertainprospects in the various sectors of the economy. Infact, bank credit tends to be pro-cyclical, that is tosay it tends to behave restrictively when the economicsituation is deteriorating, which causes thedownslide to worsen even more.The logical course of action to put a brake on theshrinkage in aggregated demand caused by fallingprivate consumption and investment would be toincrease public expenditure. This is part of aggregatedemand, just as private spending is, and as suchit would serve to stimulate economic activity andemployment. But if the opposite course is taken, ifpublic spending is reduced instead of increased, therecession will get worse. In other words, reducingpublic expenditure is pro-cyclical.The most effective option to counteract this dramaticslowdown in demand would be to implementa public investment package sufficiently extensive tocompensate for the shortfall in growth in the othercomponents of aggregate demand. This is what governmentsall over the world are doing.What is needed is an aggressive programmeof public investment in basic infrastructure that maturesrapidly, such as the repair and maintenance ofroads and improvements to the road network, theexpansion and improvement of the potable waterdistribution and sanitation systems, the expansionof the energy supply grid, and the maintenance,repair and construction of new classrooms, housing,etc. In addition there should be a programme toimprove productivity in small and medium economicunits, in rural as well as urban areas. This wide-frontapproach would yield various benefits as it wouldnot only help to counteract or at least attenuate theimpact of the crisis, but it would also stimulate thecreation of new assets and capabilities that wouldmake a contribution to the future development ofthe country. These investments would constituteprerequisites and provide basic foundations for thedevelopment process.It is also essential to take all possible steps toprotect current levels of expenditure in the basicpriority area of human capital, which means especiallyin education, health care services and accessto essential medicines and nutrition, and to expandexpenditure on social protection, which ought tofunction as a cushion against the worst effects ofpoverty when there are adverse fluctuations in theeconomy.Long term measuresHowever, it is not enough merely to tackle the negativeimpacts of the crisis in the short term. It is vital toinitiate a change in the direction the country is going,to decisively overcome the extreme backwardnessand state of abandonment that agriculture 6 and ruralareas have fallen into, and to re-orient today’s growthmodel and invest on an unprecedented scale in humancapital and basic infrastructure. We propose amajor national effort to achieve, within a strict timeframe, a series of basic goals:• To eradicate adult illiteracy. By the proposeddeadline 100% of the population over 15 yearsold should be literate.• To achieve universal pre-primary education coverage,raising net enrolment among childrenaged 3 to 5 to 100%.• To achieve a net primary school enrolment rateof 100%.• For at least 80% of children who enrol in thefirst grade of primary education to complete thewhole basic education cycle.• To achieve a net secondary education enrolmentrate of 75%.• To achieve a significant improvement in thequality and relevance of education at all levels.• To raise average schooling in the country to 9years within the set deadline. n6 Agriculture accounts for 21% of the gross added valueproduced by the various sectors of Nicaragua’s economy, itemploys around 30% of the country’s employed workforce,and it generates more employment than any other singlesector.<strong>Social</strong> <strong>Watch</strong> 127 Nicaragua
NigeriaIEG of = 47,3100Deepening plightNO 0 VA1000The majority of Nigerians have been living for a long time in a situation of economic meltdown.88Corruption is widespread, the country lacks electricity, education 100 and 81 health are in a deplorable 10085condition, and the armed fight for the control of oil resources continues to be intense. The globaleconomic crisis has further deepenedBCI oftheKenyaplight= 71of the poor. Experts underscoreIEGthatof Kenyathe country= 59shouldtake measures to curtail its dependence on crude oil and address the poor implementation of annualbudgets.42 98100 100 100100 10010083100011<strong>Social</strong> <strong>Watch</strong> NigeriaLuke ChukwuJudith OgunniranRay Onyegu 1100Basic Capabilities Index (BCI)100BCI = 66 GEI = 4483 Children reaching5th gradeGender Equity Index (GEI)100EmpowermentMore than 90% of Nigerians have been dealing with23the economic meltdown for many years, and their0plight has worsened since the present Government009came to power. With the total collapse of public infrastructure– such 573594 47100as roads and electricity – and100 100 74 100100 81 100100 77 100100widespread corruption, life has become an unending Births attended bystory of want, destitution and fear. Nigeria is on the skilled health personnelSurvival up to 5 Economic activityEducationbrink of qualifying asIEGa failedof Nepalstate.= 51,2 ICB de Nigeria = 66,3IEG of Niger = 44,4power supplies. However when the current Governmentcame into power in 2007, it was generating mortuaries; they are places where the sick go to die.Hospitals and health facilities have turned toCorruptionEvery day the electronic and print media report only 3,000 megawatts of electricity daily. Two years Government officials and politicians go overseas tocases of Government officials looting public funds down the line, this has dropped to less than 1,500 treat their medical problems. The mass exodus ofand transferring the money overseas. According to megawatts. The consequence is darkness all over doctors and other health professionals to Europe andformer World Bank President 100 Paul Wolfowitz, more the country. In the absence 100 of a regular and uninterruptedthe US, where there are 100better working conditions,than USD 300 billion were stolen over some fourpower supply, businesses are collapsing. The has been taking place for several years. Hospitalsde cades and stashed in foreign banks. 2 It has been industrial sector has practically become extinct. Unemployment74and other public health facilities lack drugs. Whereis holding sway. According to a front-medicines are available, they are fakes. The efficient,suggested that if the United States, with its trillion43dollar national budgets, can send its Secretary of page report in The Guardian newspaper, the Governmentis taking another USD 600 million loan from the the poor majority.privately owned health facilities are unaffordable for25State, Hillary Clinton, after USD 14 billion of taxevaders’money in Switzerland, there is no reason for World Bank to improve the power supply situation. 4000Nigeria to ignore calls by Nobel laureate economist Problems arising from this are many. For example, Armed conflict in the Niger Delta1003386Joseph Stiglitz and United Nations officers to go after there is no guarantee that the loan will not end up in The armed conflict 58 between government forces and 99100 100 71billions of naira, the national currency, 82 100100 100100 100100in foreign the foreign accounts of government officials; and the militant separatists in the Niger Delta region, 98 overbanks. 3 Instead of doing this, however, there is talk of electricity project is a long-term one, while the needs control of the oil that generates 95% of Nigeria’sborrowing more moneyIEGandofgoingSloveniaback into= 65,1the debt of the people areBCIimmediate.of Somalia = 47,8oil wealth, doesIEGnotofgiveSpainany sign= 76,9of slowing down.trap to fight the economic crisis.The militants are kidnapping foreign workers andEducation and healthblowing up pipelines and other facilities belongingElectricityUniversity lecturers are embarking on repeated to the oil companies. Several companies, includingNigeria needs to generate a minimum of 10,000 strikes in <strong>2009</strong> to draw attention to the deplorable BP-Shell, are closing down their operations in themegawatts a day to ensure the distribution of regular state of the education sector. They complain about, region. There are fears that at the rate at which oilamong other issues, lack of teaching facilities, the production is declining, the Government may not1001 Luke Chukwu is Chairman of the Governing Board, <strong>Social</strong><strong>Watch</strong>, Nigeria/Senior Lecturer in Accounting, Imo StateUniversity, Nigeria; Judith Ogunniran is Deputy Chair,Governing Board, <strong>Social</strong> <strong>Watch</strong>, Nigeria/Executive Director,Women and Youth in Africa; Ray Onyegu 26 is NationalCoordinator, <strong>Social</strong> <strong>Watch</strong>, Nigeria/Executive Director, Socio0Economic Rights Initiative.2 Ojiabor, O. “Corruption Has Ruined Nigeria – APRM report.”Economic and Financial Crimes Commission, 2008. Availableat: .3 Onuorah, M. and Okwe, M. “World Bank Gives Nigeria$600m for Power.” IEG The of Guardian, Zambia 18 = June 56,2<strong>2009</strong>. Availableat: .100total collapse of infrastructure such as electricity andhousing, and the Government’s high-handednessin dealing with their requests for improvements.The situation at the primary and secondary levels isnot different from that in tertiary education. Seniorgovernment officials NO and 0politicians VA send their childrento schools and universities abroad. After theirschooling is completed, those who study abroadrefuse to return to the rot at home.100 100 1004 Stolpe, O. Senior Project Manager of the United NationsOffice BCI on Drugs of Cisjordania and Crime (UNODC) y Gaza speaking o Palestina at a press = 0briefing on “Non-Conviction Based Forfeiture of Proceedsand Instrumentalities of Unlawful Activity Bill”. Abuja,20 May <strong>2009</strong>.100meet its targeted revenue. The result will be morepoverty and death.Poor implementation of annual budgetsDuring a Roundtable on the business and economicoutlook for the <strong>2009</strong> fiscal 0 s/d year and review of the<strong>2009</strong> budget, organized 15by the Bureau of BusinessInformation (BBI) in Lagos in January <strong>2009</strong>, expertspainted a gloomy economic picture for Nige-100 10099rians. The panellists included the Chief ExecutiveOfficer of Economic Associates, Dr. Ayo Teriba; theDirector Cisjordania of Research, o Palestina the National S/D Economic (español) IntelligenceCommittee (NEIC), Mr. Weneso Orogun;and renowned economist and senior member of10083BCI of RNational reports 128 <strong>Social</strong> <strong>Watch</strong>100100
the Lagos Business School Academic Faculty, Dr.Doyin Salami. Besides the global economic crisis,they listed poor implementation of the yearlybudgets as a major contributing factor to the slowgrowth of the economy over decades. Accordingto the experts, the question is not whether there isincreased economic hardship and poorer qualityof life for the average Nigerian, but how long thissituation will last.Orogun described it as scandalous that theutilization of capital projects by the third quarter of2008 was 33%. He wondered why the Ministry ofTransportation had only utilized 42.3% of its allocationin 2008, refunding some USD 420 million to theTreasury, given the poor state of the transport sector,especially roads. Indeed, in September 2008, only 10ministries had utilized more than 50% of their capitalreleases. Orogun attributed the situation to weaktechnical capacity to implement budgets, inefficientbudget monitoring and corruption.Teriba, who was the guest speaker, said the globalmeltdown would mean not only reduced globaldemand for goods and services but also a sharp declinein global commodity prices as manifested, forinstance, in the drastic reduction in the price of crudeoil. He also said there would be credit scarcity andhigh interest rates with attendant multiplier effects.In specific terms, he presented a scenario in whichlocal banks would find it very difficult to give outloans and, if they did, the interest rate would be veryhigh. This would add to the prevailing high cost ofdoing business in the country, which would worsenthe plight of the industrial sector and indeed virtuallyall business operators. In addition, the expert saidindustrial firms and other companies would alsoexperience less demand for their goods and servicesdue to the reduced purchasing power of Nigerians.These would invariably translate into loss of wealth,job cuts and other socioeconomic problems.Teriba emphasized that the imminent economicproblems would not be solved as early as they shouldbecause there seemed to be no capacity to managethe situation, although he believed that the Governmentcould still mitigate the effects of the globalmeltdown by doing more to restore confidence inthe economy. He suggested that the decision to basethe <strong>2009</strong> budget on USD 45 per barrel of crude oilprojected a pessimism that sent the wrong signal tostakeholders. In his opinion, since the Governmenthad based the budget for 2008 on USD 59 per barrel,while the price of crude oil had been USD 100, itcould base the <strong>2009</strong> budget on a much higher priceand use the gains of 2008 to make up the difference.Salami said hard times awaited Nigerians becauseof the measures that would be taken by theGovernment and employers in the face of the globalcrisis. Decrying the country’s dependence on crudeoil, he noted that global demand was expected todecline from 85.84 million barrels daily (mbd) in2008 to 85.66 mbd in <strong>2009</strong>, just as non-Organizationof Petroleum Exporting Countries (OPEC)-countrieswere expected to raise supply in <strong>2009</strong> to 51.15 mbd(from 50.57 in 2008). This implied that as revenuefrom oil dropped, the Government would increasetax enforcement efforts, thereby reducing citizens’disposable income and savings. He emphasized thatthere would be lean years for those who dependedsolely on trading, and suggested that one solutionwould be to identify undervalued assets in the economyand convince people to invest in them.With this state of affairs, the future is bleak. Theglobal economic crisis has only added to the deplorableliving conditions of the poor in Nigeria. This is avery bad scenario that can only get worse. nReferencesOjiabor, O. (2008). “Corruption Has Ruined Nigeria – APRMreport.” Economic and Financial Crimes Commission.Available at: .Onuorah, M. and Okwe, M. (<strong>2009</strong>). “World Bank Gives Nigeria$600m for Power.” The Guardian, Thursday 18 June.Available at .Stolpe, O. (<strong>2009</strong>). Senior Project Manager of the United NationsOffice on Drugs and Crime (UNODC) speaking at a pressbriefing on “Non-Conviction Based Forfeiture of Proceedsand Instrumentalities of Unlawful Activity Bill”. Abuja, 20May.<strong>Social</strong> <strong>Watch</strong> 129 Nigeria
100PALESTINEPoor and imprisoned026NO 0 VASince 1948, when they were turned into a refugee population within their own country and the64neighbouring 79 Arab States, Palestinians’ living conditions have been 100 grim. Furthermore, since 100 the99Israeli military occupation in 1967, colonization and racial discrimination have become commonpractices of the occupying power. Both the separation wall, on which construction began in April 2002,IEG of Zambia = 56,2BCI of Cisjordania y Gaza o Palestina = 0 Cisjordania o Palestina S/D (español)the closure imposed on the Palestinian territories and the last brutal Israeli attack on Gaza of December2008 have increased segregation, unemployment and economic recession.100 100 100100 100100100150 s/d10083BCI of RPalestinian NGO networkAllam JarrarFor more than 60 years the Palestinian people havebeen deprived of their basic right to self-determinationand prevented from establishing theirown independent state within which social developmentcould be realized without major externalpolitical impediments. Ever since 1948, the yearof the Nakba (catastrophe), when more than halfthe Palestinians were expelled from their originallands, the whole process of their developmenthas been shaped by outside forces. The year 1967witnessed an additional complication as the Israelimilitary forces occupied the rest of Palestine.Only instability has grownThe establishment of the Palestinian Authority in1994 as a result of the Oslo agreements signed inWashington DC gave it responsibility for the socioeconomicwelfare of the Palestinian population inthe areas of the West Bank and Gaza. However, theinability to conclude the peace treaty by 2000 led tothe second Palestinian Intifada (rebellion) that resultedin a major deterioration in the socioeconomicindicators of the population.CHART 1. Demolitions of Israeli andPalestinian Homes20,00018,00016,00014,00012,00010,0008,0006,0004,0002,00000IsraelihomesPalestinianhomesSource: HomesDemolishedAccording to the 2007 <strong>Report</strong> released by theWorld Bank to the Ad-Hoc 100 Liaison Committee, percapita GDP fell from USD 1,612 in 1999 to USD1,129 in 2006. Moreover, GDP was being increasinglydriven by government and private consumptionfrom remittances and donor aid; investment hadfallen to extremely low levels, leaving “an inadequateproductive base for a NO 0self-sustaining VA economy”. 1Moreover, the West Bank and Gaza had an expandinglabour force and, as result of the unpredictabilityof the border crossings and checkpoints, the100 100private sector was shrinking. For this reason, publicsector employment grew by 60%. While the publicBCI of Cisjordania y Gaza o Palestina = 0sector expanded, the economy’s productive capabilityhollowed out, making it increasingly donordependent. 2Behind the wallThe Palestinian areas are completely segregatedinto three major clusters; Palestinians are deniedaccess to Jerusalem. The internal closure regimeimposed by the Israeli occupying power over theWest Bank and the erection of the separationwall have resulted in deep economic recessionand in negative economic growth over the pastnine years. In addition, Israel has withheld taxrevenues collected on behalf of the PalestinianAuthority. This affected the flow and direction ofdonors’ aid by re-directing it into budget support.By preventing any development in Area C (mainlyregions to the East and South), Israel stoppeddonors from directing their aid to nearly 60% ofthe areas supposedly under Palestinian Authority25%jurisdiction. This restriction should be challengedby donors, as it is leaving large areas in dire need20%of assistance.18,147 23Increasing 15% povertyMore Palestinians have become poor and moreare now 10% at risk of falling into poverty. Surveys conductedfor the United 7.3Nations Development Programme(UNDP)/Programme of Assistance to the5%* There are 0% no available data on BCI.1 World Bank. “Two Years Israelis After London: Restarting Palestinians PalestinianEconomic Recovery. Economic Monitoring <strong>Report</strong> to theAd Hoc Liaison Committee”. 24 September 2007. Availablefrom: .2 Ibid.unemploymentratesInformes nacionales 130 <strong>Social</strong> <strong>Watch</strong>Gender Equity Index (GEI)100150 n/dEmpowerment100 10099Economic activityEducationCisjordania o Palestina N/D (inglés)Palestinian People in May 2007 indicate that 58%of Palestinians live below the poverty line, andabout half of these, 30%, live in extreme poverty. 3Furthermore, about 9.4% of the average-sizedPalestinian households that are technically abovethe poverty line (a monthly income of about USD500–750) are at high risk of falling into poverty ifthe current socioeconomic conditions continue.In terms of the negative income povertytrend, the percentage of households below thepoverty line rose from 50% in March 2006 to60% in August 2007, with intervening peaks ofincome poverty of as much as 68% as measuredin November 2006. Poverty in the Gaza Strip ismore pronounced, with 71% of households poorin August 2007, up from 52% in March 2006. It ismost prevalent and severe in the governorates ofKhan Younis and North Gaza. In the West Bank,the share of poor households over the same periodappears to have remained essentially stable,250moving from 49% to 51%; 227 but these figures hideregular peaks of income poverty to over 60% 4 and200some governorates in the northern West Bank,such as Toubas, Salfit, Tulkarem and Qalqilya,show poverty 150rates similar to the Gaza Strip.Persistent high poverty rates force manyhouseholds 100 to rely on coping mechanisms suchas drawing on other resources than the mainhousehold income. However, underscoring the50severity of poverty in the occupied Palestinianterritory, nearly 40% of the population no 0 longer03 UNDP. “Poverty in the Occupied IsraelisPalestinian Territory Palestinians 2007”.Development Times, Issue No. 1, July 2007. Available from:.4 See: “The Palestinian Poverty Monitor” and the monthly“Pulse”. Available from: .Illegal Settlements
have access to these alternative means of copingwith hardship. 5The last massive attackAn all-out blockade was imposed on Gaza; all entryand exit points were closed; all donor-fundedprojects were frozen; Gaza was turned into a big prisonin which 1.5 million Palestinians were jailed, withonly some emergency humanitarian support flowingin. At the end of December 2008, Israel launchedan all-out war on Gaza, which lasted 22 days, killedmore than 1,400 Palestinians, injured thousands,destroyed thousands of homes, left scores of homelessand practically destroyed Gaza’s civilian andsecurity infrastructure. As of this writing, no actualsteps have been taken to “reconstruct” Gaza.Moreover, the effects of the conflict are not justdetermined by the number of human losses or offacilities destroyed. As the overall methods of occupationare violent, their impact permeates the Palestiniansociety socially, psychologically, culturallyand economically.and temporary in nature. The aid agenda has beendetermined less by Palestinian development needsthan by the competing political agendas of the maindonors. Besides, aid has been focusing mainly onwhat has been described as state building policies,while neglecting the need to focus on Palestiniansociety building.Furthermore, some donors’ aid has not beenneutral; it has exacerbated internal conflict by supportingone group against the other, by withholdingsupport from factions because of their political positions,or by refraining from funding developmentprojects in compliance with Israeli restrictions andpressures. Development aid dropped from about28% of total disbursements in 2005 to slightly lessthan 10% in 2007. In the meantime, “budget support”rose from about 30% in 2005 to nearly 70% of2007 disbursements. 7 nAid under pressureAs the World Bank reports, 6 aid flows into the WestBank and Gaza “remain fragmented and focusedon bilateral arrangements with donors based onshort-term political positions rather than a collective,longer-term view on broader economic andgovernance fundamental”. Aid has been reactiveCHART 2. New Settlements Built(March 2001 - July 2003CHART 3. Israeli and PalestinianUnemployment Rates20,000 25018,00022725%18,147 2325022716,000 20020%20014,00012,000 15015%15010,0008,000 1006,00010%7.31004,000505%502,000000Israeli Israelishomes0Palestinianshomes0%IsraelisPalestinians0Israelis0PalestiniansSource: .Illegal Homes SettlementsDemolishedSource: .unemploymentratesIllegal Settlements5 UNDP (2007), op. cit.6 World Bank (2007), op. cit.7 Ibid.<strong>Social</strong> <strong>Watch</strong> 131 Palestine
100paraguay10092Development of an anti-crisis plan110010006,2Despite the serious setbacks expected as a result of the international financial crisis, the outlook for9736,2Paraguay could be worse. The country has a low level of external 100 debt (due in part to the difficulty 10085of98,4previous governments in implementing earlier loans), a respectable level of international reserves, andIEG of Kenya an economy = 59 largely based on exporting BCI of Líbano agricultural = 95,6 commodities. A small IEG country of Lebanon such = as 46,9 Paraguay,which produces food and clean energy and has plenty of fresh water and fertile land, has comparativeadvantages that can and should be strengthened.8898 100100 100 81100100 1001006100Decidamos (Let’s Decide) CampaignGenoveva Ocampos100At first, the crisis created by the financial disaster inNorthern countries was perceived as a remote issuewith little effect on Paraguay. However, in the wakeof one of the most devastating 9regional droughts in0years, it has become evident that these two disasterswill have a major influence on any projects planned47by the Patriotic Alliance for Change Government that100 77 100took office in 2008. They will also hobble the newGovernment in vital negotiations, such as the attemptto obtain a fair price for the energy that is producedby the bi-national Itaipú dam and used by Brazil.It is still hard to gauge the full impact of the twindisasters and, therefore, to determine what governmentresponses would have any likelihood of success.However, the need to abandon the cruel, opportunisticapproach and improvisation 100 of previous governmentsis clear. The transition involves a process74of relearning the art of governance. In the current crisis,the Government must exercise extreme cautionin discerning trends and formulating countervailingpolicies. For example, the <strong>2009</strong> national expendituresbudget was based on Government economic0projections that have proven to be overly optimistic.In the space of a few 58 months, growth plunged from100 1005% to 2% and then to 1.7%. Some analysts 98 believethat official predictions are still too rosy, and expectGDP to decline 2%.IEGThisofwouldSpainlead= 76,9to a fiscal deficit,although this is no longer seen as a problem.A UNDP-UNICEF-UNFPA <strong>Report</strong> on the Investingin People programme, issued in early <strong>2009</strong>, 1 cautionedthe Government to take measures to avoid anincrease in poverty and extreme poverty in <strong>2009</strong> thatwould jeopardize the achievement of the Millennium100Development Goals. Design problems and appallingmanagement of social programmes, along with adecade of neglect of the rural sector, have helpedswell the ranks of the poor by 1 million, according toofficial statistics. Due to increased unemployment,a fall in income and a reduction 0 s/din remittances, theproportion of the population 15 below the poverty linesoared from 35.6% in 2007 to 40.3% in <strong>2009</strong>, while100 100the proportion who are extremely poor climbed from9919.4% to 22.8%—the intermediate target for 2008Cisjordania o Palestina S/D (español)1 UNDP/UNICEF/UNFPA. “Investing in People programme.”Study on the impact of the crisis on poverty indices inParaguay.Basic Capabilities Index (BCI)100BCI = 9588Children reaching5th gradeGEI = 6710098100 100Births attended byskilled health personnelSurvival up to 5Gender Equity Index (GEI)Economic activityEmpowermentEducationIEG of Niger = 44,4 BCI of Paraguay = 95,3was 13%. 2 Some experts fear the current crisis couldincrease their numbers by another 300,000.Early estimates project 80,000-100,000 jobs willdisappear 3 – approximately the number of new jobsParaguay needs to create each year just to meet thedemand for decent employment 100 100 among rural workersand young people. Currently, 35% of the economicallyactive population is unemployed or underemployedand 70% of salaried workers earn less than thelegal minimum wage. Only 15% of Paraguayans havesome kind of health insurance. This dire situation is0a legacy of the long rule by the Colorado Party, whichhad supported Alfredo Stroessner’s dictatorship.IEG of Paraguay = 66,8Credit was already scarce and expensive by theend of 2008. In the 12 months ending in November2008, its cost had doubled to around 30%. Interestrates for agriculture jumped 50%, from 10% to15%. 4 The cost of dollar and long-term loans in areassuch as housing are sky 100 high. This has hamstrungeconomic revival efforts across the economy.74The downturn has squeezed foreign trade aswell. Imports of used cars from Iquique, Chile, domesticappliances from China and other goods aredown. So are exports, hurt by the drop in consumer0demand for the manufactured products (e.g., leatherlinings for cars) and increasing protectionism in destinationcountries, 58 particularly Argentine barriers toSoy 99producers, known as “Braziguayans” 100 becauseof their origin, were the first to demand State textile imports. The drought has also played 98 a role.100 100help. Until recently, they had benefited from agriculturalAfter deferring dredging operations for too manymechanizationBCIandof Españaan export=boom99,6that accompaniedthe global jump in oil prices and expectations made river transport more difficult and expensive.years, the lower waterIEGlevelofinSpainthe Paraguay= 76,9River hasgenerated by the biofuel frenzy. In recent months,however, these producers, the country’s most dynamicexport sector, have watched while drought, low productivity,a drop in world prices, and the withdrawal ofWhen it proposed the <strong>2009</strong> budget, the Governmentlooked forward to a 25% increase in revenue. Afew months later, equalling the 2008 level would beconsidered a great achievement. In this economy, increasingthe overall level of taxation from its currenttransnational companies that provided financing have100100shredded their profits. Initially, soy producers asked 11.6% of GDP (one of the lowest on the continent)for financing to cover 50% of 66their harvest, at an estimatedcost of USD 500 million. The sum needed wasreduced by half when more precise projections of thewould be difficult. Various proposals have been puton hold, including a minimum tax on extraordinaryprofits of soy producers (which they vehementlycost of refinancing credits and sowing the next crop oppose); reform of the agricultural income tax; reassessmentof land values 0 (to increase revenues13were available, however even 0 the lower amount wasfar beyond the available resources of either the Governmentfor local governments); and the introduction of aor 83the private financial sector. Many 80 organi-personal income 57tax. 565100 100100 100zations also questioned whether this financial supportwould be the best use of limited public resources at atime when so many sectors need assistance.100 100 100100lestina = 02 Última Hora, 17 January <strong>2009</strong>.3 Ibid.0BCI of Rep. Dem. del Congo = 76,310056100 100984 ABC Newspaper, IEG of 29 Rep. December Dem. 2008, del 20 Congo January = <strong>2009</strong>. 45.15 ABC Newspaper, 6 October 2008; Última Hora, 18 October20080471001007National reports 132 <strong>Social</strong> <strong>Watch</strong>100
Government response to the crisisFollowing a period of doubt and assertion, the Governmenthas been preparing a cautious, phased,realistic anti-crisis strategy based on rationalizingand reinforcing available resources. 6 This strategy isbeing implemented in four phases:Phase 1, beginning October 2008Introduction of monetary measures to ensure theliquidity of the banking system and fiscal measuresto streamline expenses and increase income. Thesemeasures include:• Conditional reduction of legal reserves requiredon deposits, whether in the form of guaraní (theParaguayan currency) or dollars. This is expectedto motivate banks to capture long-termsavings and free up resources to finance or refinanceproductive loans.• Reduction of interest rates on instruments ofmonetary regulation so that banks “make theirmoney work”; that is, increase the amount ofcredit they offer.• Central Bank support for the guaraní when thedollar began appreciating. This has had bothpositive and negative effects: it penalizes importersbut can help exporters. In addition,devaluation of the guaraní could make debtpayments more expensive.Phase 2, beginning January <strong>2009</strong>Introduction of an expansive fiscal policy. The planis to implement an expansive budget, with increasedspending on public works (paving roads, buildingbridges) and social policies intended to create employmentand protect vulnerable sectors from thecrisis. Initial estimates envisioned a budget deficitof USD 300 million. The Government made a commitmentto regularly review stimulus expenditures;both budgetary increases (public works of aroundUSD 100 million to 200 million) and conditionaltransfers (involving between 17,000 and 120,000beneficiaries).Phase 3, beginning February <strong>2009</strong>Introduction of measures to satisfy the financial andcredit needs of productive sectors. The strategy isto strengthen the Financial Agency for Developmentcredit portfolio, with the goal of generating more opportunitiesfor medium- and long-term refinancingand public financing for small and medium producers.State spending will give priority to domesticproduction.Phase 4 (in design stage)Multilateral contingency credits. Some of these are alreadyunder review. Others have preliminary approvalor will be submitted to Parliament. These credits,allocated to roads and production (Inter-AmericanDevelopment Bank), as well as agricultural productionand water (World Bank), will require a review ofmethods of awarding public/private contracts, as wellas improvements in budgetary implementation.6 Última Hora, 31 January <strong>2009</strong>.In developing the Anti-Crisis Plan for parliamentaryconsideration, the Government has expanded itsdiscussions with various sectors of society− politicaland parliamentary parties, private sector representativesand civil society organizations. Even so, it hasnot won unanimous agreement on either the value ofthe proposed measures or their likely effectivenessin mitigating the impact of the crisis. Some groupsargue that the plan must be implemented in any case,since it will fund loans that have already receivedcommitments or where approval has been delayed.Others feel that final decisions on the contingencyloans from multilateral banks should be contingenton a thorough review of their beneficiaries and cost,as well as how effectively they reinforce public expenditures.To complicate matters, new demands for governmentfinancing are springing up, though theyare difficult to justify and/or satisfy. For instance,wage increases were requested by public serviceunions in 2008, echoing demands of private sectorworkers, in addition to the soy producer pleas forimmediate refinancing and soft credit. Longstandingdemands for land, food self-sufficiency and revitalizationof the rural economy are also resurfacing inthe countryside.The controversy among interest groups isheightened by opposition to conditional cash transfersto the most vulnerable sectors voiced by businessentrepreneurs and opportunist politicians.These transfers are more generous and available tomore people than under the previous administration,which increased competition for them and complicatedaccess. Conditional transfers are justifiablein “exceptional times” and until better alternativescan be introduced. However, they are not a panaceanor are they easy to allocate fairly, since it is hardto discriminate between the poor and the destitutebased on income alone, and everybody is affectedby inadequate education and public health servicescharacterised by low coverage and/or poor quality.Furthermore, Paraguay’s transfers will not be sufficient,and their effective implementation will dependon the Government’s ability to deal with issues ofmethod and measurement, as well as all kinds oflocal pressures.The Government still has to develop the politicalwill and strategy it needs to build a parliamentarymajority in a country where political parties arefloundering in a crisis of leadership, mediation andrepresentation. Its primary challenge is to neutralizethe retrograde forces in Colorado Party, whichhas already announced its intention to ignore theanti-crisis plan; this could lead to a parliamentaryboycott.The civil society responseThe first sectors to complain about Governmentpolicies were those that had benefitted from theprior Government’s neoliberal policies and marketintegration: agro-exporters, industrialists, importersand advertising executives. With few exceptions,business sectors have limited themselves todemanding more information on the scope of thecrisis and voicing complaints, rather than suggestingalternatives. They also make excessive demands,which are quickly seen to be illegitimate. The soyproducers, for example, insisted that the Governmentnot only to cover their losses, but also provideenough funding to maintain their level of productionand profit through public subsidies. They earnedextraordinary profits in the previous cycle, thanks inpart to speculation in the future market for agriculturalcommodities that accompanied the promotionof biofuels in many countries. 7 This is a sign that thecrisis could lead to an impasse or to the reinforcementof earlier resource allocation plans that shouldreally be replaced.The irresponsibility and myopia of the rightwingopposition is leading it to oppose the anti-crisisplan, simply to damage the new centre-left Government.At the other end of the spectrum, demandsof worker and peasant organisations could be manipulatedby left-wing parties inside and outside theGovernment, or by elements of the media that wantto confuse the public for their own reasons.Some groups denounce the anti-crisis proposalsas neoliberal measures that will lead to damagingand unnecessary foreign indebtedness or benefitbanks, international finance and the rich. However,this is not the time to allow ideological considerationsto prevent efforts in dealing with a critical situationthat is largely a legacy of poor public administrationand unresolved structural issues, which will becomeincreasingly important in the future.Civil society organizations such as the CoordinatingCommittee for Child and Adolescent Rightsand Decidamos (Let’s Decide), which have formedthe Alliance for Investment in Childhood and Adolescence,contribute to publicizing the effects of the crisison vulnerable children and adolescents and offerspecific proposals in policy debates on the issue.An anti-crisis plan might not be an ideal solution,but it is necessary. Given the country’s previousrecord in planning, just putting it into practicewould mean progress. Its success will depend on athorough understanding of inherited problems, aswell as those emerging in this new, chaotic and unpredictableera. In any event, the crisis could providethe impetus to economic, social and environmentalreforms and strengthen the State’s administrativecapacity and ability to take control of the country’sfuture. This, in turn, could facilitate greater participationof civil society in the public sphere. n7 Grassroots International, Letter to President Obama:financial market speculation in food production. Availablefrom: .<strong>Social</strong> <strong>Watch</strong> 133 Paraguay
peru100The workers’ proposal36,2 The Government’s economic stimulus plan for tackling the crisis adds USD 3 billion to this year’s9947budget, which the Government will spend − in partnership with 100 private-sector employers 100− on98,499housing construction, financing for the export sector, and social welfare programmes. The tradeIEG of Lebanonunion= 46,9confederation has issued anBCIalternativeof Malasia =plan96,9designed to maintain economicIEG of Malaysiaexpansion= 58,3and jobcreation, preserve jobs, support the worst-off sectors of society and encourage growth and consumptionof domestic production.97100 100100 100 100100 100100Confederación General de Trabajadores del Perú (CGTP)Support from CEDEPMario Huamán Rivera 1 100Basic Capabilities Index (BCI)100BCI = 88 93GEI = 70Children reaching5th gradePeru has not been spared from 47 the effects of theglobal crisis. GDP growth, which reached almost10% in 2008, but was down to less than 4% in0January <strong>2009</strong>, according to the National Institute0of Statistics and Information Technology. Exports98are expected to plunge 5698from USD 32 billion in 2008100 100 100100 73100to around USD 22 billion this year. The country’s 98Births attended byPresident declared that this will lead to 200,000 skilled health personnelSurvival up to 53layoffs, as well as a fall in the purchasing power ofBCI of Perú = 87,8wages and savings. The worst affected sectors are eral model in 1990 fell far short of what workersthe mining, industrial manufacture of non-primary gained during the 1970s, when the State appliedresources, agribusiness, trade and services sectors.a Keynesian model and was actively involved inUnless the Government responds swiftly and the economy, trade union organization, collectiveeffectively, the downturn will worsen in the second bargaining and ensuring job security.half of the year. 100100The current official economic stimulus plan The CGTP proposal 8774adds 10 billion Peruvian soles (PEN), equal to In response to the crisis, the CGTP, working withalmost USD 3.4 billion, to the <strong>2009</strong> budget. The a group of economists, has issued an alternativeGovernment will raise this money by issuing sovereignproposal 2 , addressed to both the Government andbonds and spend it, in partnership with pri-the general public.00vate-sector employers, on housing construction,finance for the export sector, and social welfare Objectives10088programmes valued 58 PEN 500 million (USD 169 Instead of allowing a recession to deepen, the100100 100100 100million).98 country should respond to the crisis by encouragingWhen times are good, workers are typicallya new kind of economic growth; by promotingasked to wait patiently for the benefits of growth; job creation andBCIjobof Tanzaníasecurity,=rather72,7than by acceptingmass layoffs. We believe it is possible toin times of crisis, they are expected to tighten theirbelts. But counteracting the damage caused by stimulate growth that is based on consumption ofthis crisis requires boosting domestic demand by goods produced domestically and well-balancedincreasing workers’ consumption and protecting exports. State investment should focus on productivenational production, as well as suspending freesectors of the economy, as well as regions thattrade agreements (FTAs) that leave the Peruvian have sustained massive job losses, with particular100market far too open at a time of shrinking internationalattention to the needs of the poorest sectors ofmarkets.society, children and the elderly.The graph that follows shows the dramaticfall in real earnings among the economically active Specific policiespopulation of Peru during the period 1970-2006, The plan requires Government action in the followingareas: fiscal policy, stimulating the domes-13calculated in Peruvian soles 0 [USD 1 = soles 2.95 inJuly <strong>2009</strong>] per annum. While the average worker tic market, promotion and protection of decent0 was paid 6,000 soles 57 per annum in 1974, by 2006 employment, increasing agricultural productivity65100100 100the average worker was earning 1,700 in real wages,and food sovereignty, encouraging small busi-less than a third as much. The slight recovery nesses and protecting the poorer sectors of thein the period following the adoption of the neolib- population.6,3IEG of Rep. Dem. del Congo = 45.11 Secretary General of the General Worker’s Confederation ofPeru (CGTP).06,22 See: .100092100Gender Equity Index (GEI)10000Empowerment63100 10099Economic activityEducationIEG of Paraguay = 66,8 IEG of Peru = 69,7Fiscal policyAs a counter-cycle measure to provide incomesfor poor families who are consumers of nationalproducts, the State should boost public spendingon infrastructure projects that can be completedquickly and create substantial 100 employment. Thisstimulus package should be accompanied by theintroduction of redistributive tax policies, includingdirect taxes to finance the 51 proposed measures,as well as an extraordinary tax on the net worth ofmining companies and capital gains to compensatefor a reduction in tax revenues from other0sources. Fuel taxes, which make up as much as40% of the price of petrol and oil, should be cut.100 100This would 8481lead to reductions in food and transportprices, which would increase both demand andsmall business competitiveness.43 97100IEG of Spain = 76,9 IEG of Tanzania = 71,9Defending national production to stimulatethe domestic marketWe propose a special plan for regional investmentof public funds, removing bureaucratic barrierswhile providing mechanisms to ensure transparencyin public and private expenditures. Implementationof free trade agreements (FTAs) that affectnational production must be suspended. The countryshould impose tariff and quasi-tariff measuresto protect domestic production and Peruvian jobsagainst subsidized imports. To help rebuild householdearnings, we need an agricultural credit andmicro and small enterprise (MSE) programme offeringreduced interest rates, as well as measures toincrease the availability of mortgage credit to peopleof low or average income. International reservesshould be husbanded and the value of the Peruviansol should be allowed to slide gradually to improvebusiness competitiveness and the trade balance.3047100National reports 134 <strong>Social</strong> <strong>Watch</strong>
Protecting decent jobsThe Government should promote collective bargainingand trade union freedom, along with tripartitecommitments, negotiated by workers andemployers in each industry and Government inorder to maintain employment. It needs to introducea job retraining programme for workers laidoff as a result of the crisis, financed by the FiscalStabilization Fund and international developmentassistance. These workers should also be giventemporary unemployment insurance. Tax incentivesshould be offered to businesses sponsoringjob training programmes and investing in technologicalinnovation.Raising agricultural productivity anddefending food sovereigntyThe Government should promote a coordinatedpolicy to increase productivity in agriculture andlivestock farming. This should include re-establishingprice controls, as well as the impositionof anti-dumping tariffs and special taxes on foodoligopolies. The Government should also widenaccess to credit and refinancing for the agriculturalsector, and repeal the legislative decrees that facilitateland acquisitions that dispossess peasant andAmazonian communities.Defending micro and small enterprises(MSEs)The Government should give preference to MSEsas suppliers and expand financing for these enterprisesby increasing the Financial Corporation forDevelopment’s allocations to the Fund to GuaranteeLoans to Small Business.Protecting the poorestGovernment should launch temporary employmentprogrammes that improve productive infrastructureand basic health, education and nutritionservices. It should also provide cash transfers forpeasants and poor livestock farmers who are notinvolved in temporary employment programmes,so they can prevent their land and animals frombeing auctioned off. In addition, it should providestate pensions for people over 65 years of age whohave no income, and introduce a universal healthinsurance system that guarantees quality care.The CGTP proposal supports economic integrationand trade at the regional and sub-regionallevel, as well as internationalization of Peruviancompanies and market diversification. nCHART 1. Lima: Economically Active Population, employed occupied and real wages,1970-2006 (constant December 2001)6,0005,6005,20073747572 764,8004,4004,000717077Real wages3,6003,200782,80082 83 872,400818679842,0001,60080 859900 01981,200039294 95889002 97 048000589 91 969306400200 300 400 400 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700Economically active population (thousands)Source: Graph produced by Francisco Verdera, ILO employment specialist in Lima.<strong>Social</strong> <strong>Watch</strong> 135 Peru
100philippinesFrom bad to 30 worse100991002999000In the Philippines, economic globalization resulted in the expansion of informal labour, the contraction471009950of local industries and heavy dependence on exports and remittances 100 from abroad while poverty 1009997continued to rise due to inequitable distribution of the gains. Today, the global crisis is slowing downIEG of Malaysiaremittances= 58,3while factories areBCIclosing.of MaltaAs=usual,99,5it is the poor and the marginalizedIEG of Malta = 58,2who pay theheaviest cost. A stimulus package that is rights-based, pro-poor and sustainable is urgently needed.100 100 100100 100<strong>Social</strong> <strong>Watch</strong> PhilippinesMarivic Raquiza100Contrary to assessments by the Government andBasic Capabilities Index (BCI)100BCI = 78 GEI = 76Children reaching775th gradecredit rating agencies that it could 47 withstand the globalcrisis, the Philippines’ outward-oriented economyhas made it extremely vulnerable to external shocks.0The globalization of production, which resulted in the0rapid expansion of informal labour, the contraction of9897local industries due 63to global competition with cheap60100 100 100100 100and highly subsidized imports, and heavy dependence99Births attended byon exports and overseas labour markets have skilled health personnelSurvival up to 5brought about dire consequences for the livelihood88of most citizens. 1In fact, even before the global crisis struck, mostFilipinos were already reeling from deteriorating economicconditions. According to the Family Incomeand Expenditure Survey, household incomes were indecline from 2003 to 2006. 100 Moreover, scores of Filipinoswere trapped in low productivity jobs, with belowpoverty-linewages and record levels of hunger, 2 asregistered by the <strong>Social</strong> Weather 51Stations. 3 The Governmenthas finally admitted that poverty rose in 2006during a time of economic growth, making apparent0the inequitable distribution of economic gains. Asof June 10, <strong>2009</strong>, the Government has downgradedGDP growth targets for <strong>2009</strong> to a low range of 0.8 to1.8%, 4 100 100compelling 8481National Statistics CoordinationBoard (NSCB) Secretary to declare that the Philippineeconomy ‘is teetering into recession.’ 51 Gonzales, E. “<strong>Social</strong> Protection in the Philippines”. In MissingTargets, An Alternative MDG Midterm <strong>Report</strong>. Quezon City:<strong>Social</strong> <strong>Watch</strong> Philippines, 2007.2 Malaluan, N.”Dire State of the Nation: The Crisis of Incomeand Employment in the Philippines”. Opinion Section,BusinessWorld, 21 August 2006. Available from: .3 See: .4 See: .5 See: .Gender Equity Index (GEI)Empowerment64100 10099Economic activityEducationIEG of Peru = 69,7 BCI of Filipinas = 78,1IEG of Philippines = 75,6economy”. 6 Now, however, the Department of Labour force, composed of 12.1 million farmers and fisherfolkand about 10 million labourers and unskilledand Employment says that up to 575,000 overseasFilipinos could lose their jobs, particularly in South workers, are earning poverty-level wages, just likeKorea, Taiwan, Macao, Singapore and Hong Kong, those in the burgeoning informal sector.as well as those working on cruise ships. The Bangko A large majority of workers in export processingSentral ng Pilipinas [Central 100 Bank of the Philippines] zones are women. Significant 100 lay-offs or work flex-projects remittances will slow 91down 6–10%. ibility arrangements in these zones due to the crisisExport earnings plummeted 40.4% in 2008 will therefore mostly affect women, who are primarilycompared to the previous year, with electronics decliningresponsible for managing households and caregiving.by 47.6%. 7 Labour officials are nervous at theThe deepening crisis will place further stress41rising number of factories closing down not only in on women as they discharge their multiple responsibilities.0the electronics sector but also among garment manufacturersOverall, however, male workers comprise0and other companies in industrial parks, the majority of the unemployed (64.1%) compared100where more 97 than 108,000 workers were affected 99 by to female workers (35.9%), since male-dominated100 100100 72100the crisis from October 2008 to March <strong>2009</strong> alone. industries such as construction and transport 98 haveThis includes 50,380 displaced workers and 59,149 been most affected by the crisis. 10IEG of Tanzania = 71,9workers operatingBCI ofunderTailandia“flexible”= 95,6arrangements PhilippineIEGsocialofinsuranceThailand =covers70,2about 84.5%(such as reduced work hours or forced leave). 8Remittances and exportsThe fall-out from the crisis will be widespread. Remittances,for instance, comprised 13% of GDP in 2007.Filipinos working abroad comprise one tenth of thetotal population (around 8 million), arguably “thebiggest net foreign exchange earner for the PhilippineUnemployment, social security and foodFilipinos cannot afford increasing unemploymentand underemployment. While the unemploymentrate stands at 8–10%, underemployment had alreadyclimbed to 22% even before the global crisis struck. 9Indeed, mere employment does not guarantee a decentlife: a majority (51%) of the Philippine labour6 Pascual, C. “Remittances for Development Financing”. InFinance or Penance for the Poor. Quezon City: <strong>Social</strong> <strong>Watch</strong>Philippines (forthcoming).7 National Statistics Office. “Merchandise ExportPerformance”. December 2008 (preliminary).8 Fabros, M. L. “Health Insecurity: A GMA Legacy”. In MissingTargets, An Alternative MDG Midterm <strong>Report</strong>. Quezon City:<strong>Social</strong> <strong>Watch</strong> Philippines.9 <strong>Social</strong> <strong>Watch</strong> Philippines. Missing Targets, An AlternativeMDG Midterm <strong>Report</strong>. Quezon City: <strong>Social</strong> <strong>Watch</strong> Philippines,2007.1000of employed workers. However, the working poorbenefit little from social security services, and coverageof those in the informal sector is limited. 11 Thereis no unemployment insurance and the Governmenthas sidestepped safety nets to address joblessnesson the grounds that they would be too expensive.Furthermore, the reach of social assistance programmesfor those living below the poverty line islimited, as is the level of benefits. Private social securityis also not spared by the global meltdown: thePhilippine pre-need industry 12 has already sought10 Alave, K. L “Unemployment Rate Worsens, Hits 7.7% inJanuary”. Philippine Daily Inquirer Online, 18 March <strong>2009</strong>..11 Missing Targets, An Alternative MDG Midterm <strong>Report</strong>.12 Pre-need firms offer plans to provide for future educationcosts, retirement, etc. As plan-holders’ payments are placed intrust funds that invest in financial instruments such as stocksand bonds, they are subject to the vagaries of the market.65National reports 136 <strong>Social</strong> <strong>Watch</strong>
Government help in dealing with the reduced valueof their trust funds. Unfortunately, mismanagement,greed and regulatory capture have also marred theworkings of some pre-need companies and some arereportedly on the brink of collapse, endangering theearnings of thousands of plan-holders.Food and fuel price levels have eased somewhatcompared to 2008. However since many Filipinos areearning meagre incomes, the purchase of goods andservices to meet basic needs remains a daunting challenge.As a result of the global meltdown there havebeen increases in the price of rice, a staple in Filipinohouseholds, which means further food insecurity. Indeed,the Asian Development Bank has calculated thatfor every 10% increase in food prices, 2.72 millionFilipinos would slip into poverty. 13 Although the Philippinesis a middle-income country, this masks regionaldisparities: while the capital enjoys high growthlevels, child malnutrition in some regions is equalto or even exceeds that of sub-Saharan Africa. Thisillustrates the high level of inequality in the country;its Gini co-efficient of 0.45 is the 3rd highest in Asia,behind Nepal and the People’s Republic of China.Basic social services, the environment andODAThe delivery of basic social services will undoubtedlysuffer due to the global financial meltdown. 14 The MillenniumDevelopment Goal (MDG) target of universalprimary education is already the most threatenedgoal nationally. 15 Many educators are alarmed thatstudents dependent on remittances from relativesand benefactors will not go to school next academicyear due to collapsing incomes abroad. 16 Prior to theglobal crisis, the Philippines was already the worstperforming country in the region in terms of infantmortality and maternal mortality rates, owing largelyto public underinvestment. 17 Whatever funds that goto health-related MDGs are generally ODA-backed,although whether the aid is going where it is neededmost – the poorest communities – requires furtherinvestigation, according to advocates of the AlternativeBudget Initiative (ABI). 18The Government has also relied on ODA toimplement environmental legislation such as theClean Water Act and the Clean Air Act in the last three13 Angara, E. J. “A Gathering Storm”. Opinion, Business Mirror.24 November 2008.14 This report does not include a discussion of the effects andimpact of the conditional cash transfer programme on thedelivery of social services, particularly in education andhealth, as it was only piloted in a number of municipalities in2008. The programme bears watching in <strong>2009</strong>.15 Raya, R. R. “The Missed Education of the Filipino People”.In Missing Targets, An Alternative MDG Midterm <strong>Report</strong>.Quezon City: <strong>Social</strong> <strong>Watch</strong> Philippines, 2007.16 GMA TV News. “Educators Brace for Impact of GlobalFinancial Crisis”. 4 December 2008. Available from: .17 In Missing Targets, An Alternative MDG Midterm <strong>Report</strong>.18 ABI is a broad-based network of civil society organizationsmonitoring and lobbying for increased social andenvironment spending in the Philippine national budget. It isanchored by <strong>Social</strong> <strong>Watch</strong> Philippines.years. 19 Its spending priority is in mining and forestproduction (rather than protection) in spite of unresolvedissues related to huge mining disasters andwidespread deforestation. This means that if ODAsignificantly decreases as a result of the global crisis,its negative impact will be especially felt in sectorslike health and the environment.Government response to the crisisThe Government has joined the global chorus to“pump-prime the economy” in the form of the nowfamiliar-sounding economic stimulus package.Government is touting a PhP 330 billion (USD 6.87billion) Economic Resiliency Plan (ERP) to addressthe crisis. A study conducted by the ABI however,showed that of the PhP 1.4 trillion (USD 29.14 billion)national budget recently passed by both Housesof Congress, only PhP 10.070 billion (USD 208.25million) in new money will go to an Economic StimulusFund (ESF) geared to address the negative impactof the global crisis. Included under the ESF areitems such as student loan assistance for collegestudents, technical and vocational skills training foryouth, loans and grants to small and medium enterprises,training assistance to laid off workers andreturning overseas Filipino workers, construction ofschool buildings, and the like. While many of theseare laudable, one cannot help but question why thebulk of the funds are for tertiary education and nonefor early childhood, primary and secondary education.Second, the emphasis on re-training for laid offworkers is good but there must be greater emphasison job creation that goes beyond the construction ofschool buildings. In other words, there is no comprehensiveplan to mitigate the effects of the crisis.Most alarmingly, the President has vetoed the specialprovision on the use and release of the PhP 10 billion(USD 208 million) which effectively subjects it to‘conditional implementation’ based on guidelinesto be drawn up, ultimately, by the Executive. Giventhat national elections are coming up in 2010, civilsociety is concerned that the funds might be usedfor other purposes.Frequently bandied about by government officialsis an additional PhP 300 billion (USD 6.2 billon)for the ESF, ostensibly to be pooled from Governmentcorporations and the private sector. As of thiswriting, the proposal remains vague. Many analystsare skeptical about it since much of the funds of Governmentcorporations also come from public coffers.Furthermore, not many pin their hopes on the“charitable spirit” of the business sector, especiallyin the context of the economic downturn. Even duringprosperous times, the Government’s revenueswere alarmingly below targets due to massive taxevasion by big companies and rich individuals.ABI advocates are dismayed by the fact that ata time of worsening job insecurity and rising hunger,public officials bloated their pork barrel in the <strong>2009</strong>19 Ronquillo, J. D. and Morala, R. O. “Environmental Insecurity:The Cost of Misgovernance”. In Missing Targets, AnAlternative MDG Midterm <strong>Report</strong>. Quezon City: <strong>Social</strong> <strong>Watch</strong>Philippines, 2007.national budget by billions of pesos. 20 Debt interestpayment stands at PhP 302.65 billion 21 (USD 6.3billion), which constitutes 21% of the <strong>2009</strong> nationalbudget. However the Government will have to raisean even larger amount of PhP 378.87 billion (USD7.86 billion) to pay the principal component of thedebt, which is disingenuously not reflected in the expenditureside of the national budgeting process. 22Finally, there is widespread concern that muchof public funds, including those in the economicstimulus package, will end up as “political stimulus”instead, going to the electoral war chests ofadministration candidates preparing for the nationalelections to be held next year. There is a widely heldbelief that the Arroyo administration has routinelyused public funds to stay in power and that its primordial“governance” agenda has been ensuring itsown political survival in the face of growing socialand political unrest.Moving forwardA stimulus package is definitely in order but, unlikethe one outlined by the Government, it should bebased on a clear national strategy that is rights-based,pro-poor and sustainable that aims at strengtheningdomestic demand, especially in light of the currenteconomic climate that is hostile to exports. It shouldplace a premium on food security, on job creation bystrengthening local enterprises to benefit both maleand female workers, and on investment in pro-poorand green infrastructure projects (e.g., constructionof a network of irrigation systems, electrification offar-flung villages and developing clean energy) aswell as expansion of social and economic securityfor the poor and unemployed.In the short term, immediate relief is needed tocushion the worsening effects of the impact of theglobal crisis on Filipinos. This means ensuring thatthe ESF goes to where it is meant to: food, incomeand emergency work relief, as well as to basic socialservices. Furthermore, the removal of the regressiveReformed Value Added Tax on oil, the implementationof a PhP 125 (USD 2.59) across-the-boardwage hike and a PhP 3,000 (USD 62.20) monthlyincrease in Government salaries will provide somedegree of economic relief. Finally, renegotiation ofthe national debt so that the bulk of the country’srevenues go to urgently meeting the basic needs ofthe people rather than to service the debt requiresserious consideration. n20 <strong>2009</strong> General Appropriations Act.21 This reflects what is included in the <strong>2009</strong> Budget Law and thePresidential Veto Message, which restores a budget cut ofPhP 50 billion (USD 1.06 billion).22 Tanchuling, M. Interview with the Secretary-General,Freedom from Debt Coalition, Philippines, 3 March <strong>2009</strong>.<strong>Social</strong> <strong>Watch</strong> 137 Philippines
poland10095An even gloomier development picture100390Even before the world financial crisis started to take its toll causing devaluation, increased unemployment949744and reduced income, investments 100 and exports, Poland 100had already experienced 100 rising wage and income 10099inequality during its transition to a market economy. As the Government lacks transparency in its operations,there is no opportunity for public debate to discuss the measures taken to cope with the crisis, such as the useBCI of México = 95,2IEG of Mexico = 60,5of loans from international financial institutions. At the same time, Polish society’s patriarchal mentality andlack of social protection policies make women the first victims of the crisis.0100KARAT Coalition/Feminist Think TankEwa CharkiewiczPolish <strong>Social</strong> <strong>Watch</strong> Coalition/InternationalCommission of JuristsKatarzyna SzymielewiczNEWW Polska / University of GdańskDr Mariusz CzepczyńskiBasic Capabilities Index (BCI)100 98BCI = 99 GEI = 70Children reaching5th gradeGender Equity Index (GEI)10045EmpowermentPrior to the world financial crisis, Poland was anexemplary case of a successful neoliberal transitioninto the market economy. According to a recentreport from the Organisation for Economic Cooperationand Development (OECD), Poland was secondlowest among 30 member states in child povertyand fourth in income inequality, with the richest 10%of the population gaining a bigger share of marketincome and paying a lower share of the tax burdenthan in any other OECD state except Turkey. 1 Privatizationshave affected most acutely the social sectors(pensions, health care and education), while statesupport has been extended to businesses (e.g., theDeputy Prime Minister has announced a plan to supportcompanies that had engaged in risky currencyoptions markets) but not to citizens.This gloomy picture, however, is getting evendarker as the crisis unfolds. The initial impact was adrastic devaluation of the Zloty (the national currency)– by approximately 25-30% within six monthsin relation to the euro and the Swiss franc – and aplunge in the Warsaw stock exchange. While thisinitially affected primarily Polish financial marketsand companies involved in currency options, it hasnow begun to affect the national political debate,particularly with the more recent decrease in nationalrevenues and decline in investments and exports.Further, contrary to initial (rather optimistic)scenarios, the financial crisis is having a significantimpact on access to finance for both Polish businessesand consumers.UnemploymentRecent labour market surveys indicate that unemploymenthas increased from 9% to 12% since thebeginning of the crisis, including in white-collar positions.However, the actual numbers of people withoutany means of livelihood are higher, and only 15.5%1 Organisation for Economic Cooperation and Development.Growing Unequal. Income Distribution and Poverty in OEDCountries. Paris: OECD, 2006. Available from: .0100 10010099100 100Births attended byskilled health personnelSurvival up to 5BCI of Polonia = 99,1of those unemployed are entitled to an allowanceand eligible for public health care. 2 The rest are ontheir own.In addition, the statistical average does notreflect the hardships in towns where one significantemployer, from whom 100 the majority of householdsderive their livelihoods, is closing due to plummetingorders or opportunistic manoeuvres: forexample, some companies 49 are reportedly blamingthe financial crisis in order to lay off workers andcut costs.0The effects of the financial crisis are most severelyfelt by those who do not have any savings,means to produce their own food or rural 87 family100 100ties (despite being on the verge of extinction underpressure from large scale agriculture, smallholderfarms still survive in Poland). However, the newmiddle class families BCI of are Uganda also in = a 59,2 tight spot, especiallyyoung couples with children who haveincurred huge mortgages with adjustable interestrates, or in foreign currencies, to purchase theirdwellings.Access to finance and long-term 96 growthperspectivesAs a result of the so-called “credit crunch” (a suddenreduction of access to credit and an increase inits costs), the prospects for the country’s economicgrowth have declined substantially: 0 from a reported6.5% in 2007 and 5.5% in 2008 to a prediction for<strong>2009</strong> ranging between 2.5% and 3.7%. 3100 6910096Economic activityEducationIEG of Poland = 70Furthermore, Poland has started to be affectedby a sudden halt in capital inflow, followed byincreasing risk aversion among investors and thecrowding-out effect, as competition grows amongthe strongest EU economies for public debt financing.4 The situation has 100 been further exacerbated bythe foreign exchange crisis: the weakening Zloty hada damaging impact on companies that entered intocurrency options contracts as well as on personsrepaying foreign currency mortgages. 37The supply of credit has been strongly limited0in all segments of the credit market, and more than80% of the banks have introduced far more rigorouscriteria for extending credit of any type. In100particular, they 81 have increased the requirements83 100concerning the level of security and, in the caseof mortgage loans, the amount of the borrowers’own contributions. IEG Also, of Uganda almost = every 67,2 bank hasraised its credit margins – from 1-2% in mid-2008to 7-8% in the first quarter of <strong>2009</strong>. 5 The costof money in the interbank market has increasedsubstantially due to an unprecedented decline inmutual trust between financial institutions. The100Polish Financial Supervision Commission (FSC)has sharpened liquidity ratios and reporting obligations.6 The banks’ assessment 56 of the prospects42 1001001004 Rybiński, K. Finansowanie rozwoju Polski w kryzysie.0Ernest & Young, February <strong>2009</strong>.5 All data based on report by the National Bank of Poland.99 100Situation of the credit market in the first quarter of <strong>2009</strong>,94100 100Warsaw, 10064January, <strong>2009</strong>.100100966 In July 2008, the Polish Financial Supervision Authority2 National Statistical Office. “Registered Unemployment, firstimposed an obligation on banks to maintain and reportquarter 2008.” See: ICB .liquidity and helping to contain the “confidence crisis”. See:3 Estimates reported by web portal Bankier.pl. Available from: .0ICNational reports 138 <strong>Social</strong> <strong>Watch</strong>
of the economy is very negative, and they expectfurther restrictions in lending to enterprises. 7Consumers: the mortgage market standstillThe banks’ prevailing policy of setting the requiredamount of own contribution at 30% rules out anypossibility of purchasing their own homes for themajority of people, while there is already a shortageof around 2 million flats on the market. 8 The mostlikely result will be a drastic increase in rents, but theprices of apartments for sale will not necessarily fallquickly. Also, the costs of servicing foreign currencymortgage loans (79%–81% of the total credit portfolioin 2008) 9 drastically increased, due to the suddendrop in the value of the Zloty and a very unfavourablechange in the banks’ policy regarding the calculationof the spread.The public believes that banks are manipulatingthe exchange rates at the clients’ cost. At present thedifference between the purchase and the selling ratecan reach as much as 12%, 10 while even the Officeof Competition and Consumer Protection is unableto impose exchange rate restrictions. Consumergroups are therefore forming through the Internetin order to purchase foreign currencies in wholesalequantities, hoping to negotiate the amount of spreadand sometimes even renegotiate terms and conditionsof credit agreements. 11Credit crunch and threat of massivebankruptcyAlready 15% of enterprises are having problemsobtaining operating credit. 12 For every one out of twoenterprises, banks have tightened the terms and conditionsfor lending, a situation that will certainly getworse in <strong>2009</strong>. According to preliminary forecasts,banks will have 50% less funds for lending in <strong>2009</strong>than in the preceding year. It is very likely that theywill start sending en masse calls to companies forrepayment or renegotiation of loans, claiming defaulton the terms of the credit agreement. 13 In 2008,because of competitive pressure, banks granted agigantic number of loans with minimum margins ofinterest, but those loans are now becoming a burden.Small and medium-sized companies that do not havesignificant security in their private capital are particularlythreatened.7 Financial Supervision Commission. Informacja o sytuacjibanków po trzech kwartałach 2008 r. Available from: .8 Online survey by Money.pl. Available from: .9 Data from the Association of Polish Banks reported at aconference in December 2008. Available from: .10 Online survey by Money.pl. Available from: .11 Dominiak, T. “Polacy buntują sie˛ przeciwko bankom.”POLSKA The Times, 25 February <strong>2009</strong>.12 Survey conducted by the Polish Confederation of PrivateEmployers Lewiatan. See: .13 Niklewicz, K, Samcik, M and Hałabuz, N. “Znikają ce taniekredyty.” Gazeta Wyborcza, 24 February <strong>2009</strong>.On top of the credit crunch, thousands of companiesfell into the trap of currency options and arenow struggling on the verge of bankruptcy. Encouragedby the banks, companies were buying optionsin massive amounts to protect their export profits.After the rapid devaluation of the Zloty they not onlylost all invested capital but have also amassed a hugeamount of debt due to poorly protected contracts.The democratic deficitOther major problems include the fall in State incomeand the rising costs of servicing the public debt. Theygo hand in hand with the prevailing democratic deficit:there was no public debate on the new emergencyloan from the World Bank in the amount of EUR 3.75billion, and the State’s activities are largely opaque tothe media, elected politicians and the public. Whenthe Depository Trust & Clearing Corp., which operatesas a central registry of credit swaps trades, publishedits details, including the top 1,000 contracts, itturned out that the Republic of Poland and other sovereignstates engaged in derivatives trading as muchas the private sector. Since the early 2000s the OECD,the World Bank and the International Monetary Fund(IMF) have organized trainings and seminars forfinance ministry officials to persuade them to engagein creating and dealing in markets for state debt.When the State operates like a commercial firm, itabandons its citizens, especially those who do notgenerate income for the State or market.Gendered effectsIn 1989 and 1990, when Poland embarked on thefree-market road, the first casualties were womengarment workers, as inefficient factories closed andnothing replaced them. Today the revamped garmentsector, where women again predominate, is shrinkingagain as import orders (mainly from Germany)fall and local subcontractors downsize or close, resultingin an estimated net job loss of 40,000. 14Trapped in the grey economyThe decrease in family incomes due to the economiccrisis might cause pauperization of wholesocial groups, particularly among the lower andmiddle classes. It is very likely that this will in turnhave a more significant impact on women, sincethey traditionally are the main responsible for familywell-being (this is particularly true among the lowerincome groups). According to some analysts, crisesamplify the grey (informal) sector in the Polish economyas many, especially small entrepreneurs try tominimize labour costs and avoid taxation and othercosts associated with formal employment. It seemsvery likely that the growth of the grey economy willaffect women more than men, as they are more oftenengaged in low paid jobs, especially in the privateservice sector (e.g. in retail).,14 Brzoska, P. “Lodz cienko przedzie, szwaczki znow tracaprace.” Polska – Dziennik Łódzki, 29 December 2008. See:.Limits for generating incomeThe shrinking means of livelihood transfer the socialcosts of the financial crisis to households and towomen in particular. Some 60%–70% of the unpaidwork to sustain and care for families is doneby wo men. 15 Class, ethnicity, age and geographicallocation differentiate this gendered impact of thefinancial crisis; for instance, due to high housingrental costs, the labour market mobility of inhabitantsin small towns in economically depressed areasis limited. For wo men of reproductive age, institutionallyentrenched obligations to provide care workin the household further limits their ability to seekalternative means of generating income.Women’s organizationsMany women’s rights organizations, includingNGOs, have already felt the loss of funding as donationsfrom private companies and individuals havedeclined significantly, and Government funding willalso decrease given the projected drop in GDP for<strong>2009</strong> has forced cuts on many budget programmes.The budget of the Civic Initiatives Fund, a government-runprogramme that supports non-profit organizations,is being halved. While it prioritizes aneo-liberal agenda (diversity management, discrimination,entrepreneurship) and shifts NGOs to the roleof service providers as the State withdraws from thesocial sector, the Fund has provided important resourcesfor sustaining NGO activities. It is very likelythat the local authorities’ funding for local NGOs willdiminish as well.Further, the economic crisis is already having anegative impact on the ability of women’s NGOs toraise money, from both private and public donors, fortheir own share in a project co-funded by the EuropeanCommission. This is particularly alarming since, whilethe EU funds created new opportunities for NGOs inPoland, neither the State nor local authorities havedeveloped the required mechanisms for financiallysupporting NGOs that secure EU funding.A grim scenarioIt is possible that a long-lasting and worseningeconomic situation might cause social and politicalconflicts during the coming years. Potentialeconomic polarization, increased unemploymentand the collapse of financial markets and the publicbudget might be followed by the rise of radical,conservative, right-wing attitudes and parties. Arise in neo-conservatism might promote traditional,patriarchal values, while limiting women to their traditional‘kitchen, children and maybe church’ role. Inaddition, because they are considered much moreimportant, economic issues might dominate thepublic discourse and cause further marginalisationof social and gender issues. n15 Budlender, D. “The statistical evidence of care and non-carework in six countries.” Geneva: United Nations ResearchInstitute for <strong>Social</strong> Development (UNRISD), 2008.<strong>Social</strong> <strong>Watch</strong> 139 Poland
100portugal39An old crisis and fresh challenges00NO VAThe economic crisis that Portugal has been facing since at least 2001, reinforced by the current international44financial and economic crisis, has brought increasing unemployment 100 and poverty. 72 The latter, however, 100 is9998not 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 betweenIEG of Mexico = 60,5 BCI of Moldavia = 0IEG of Moldova = 73,91995 and 2000. Climate change is also affecting the economy and the well being of citizens. Newapproaches and specific measures are needed to combat poverty and tackle environmental challenges.97100 100 100100 100100100052100<strong>Social</strong> <strong>Watch</strong> Portugal; OikosCatarina CordasJoão José Fernandes100Basic Capabilities Index (BCI)100 99BCI = 99* GEI = 73Children reaching5th gradeGender Equity Index (GEI)EmpowermentAccording to the Spring <strong>2009</strong> 45 Financial Bulletin53of the Bank of Portugal (BdP), 1 the Portugueseeconomy began to slow down appreciably in early02008 and then, starting in the second quarter,00went into the most profound recessive period in99100 10099decades. The Bulletin states that the economy100 100 69100100 100100 69100100will experience a 3.5% decline in <strong>2009</strong>, the 96worstBirths attended by98performance since 1975. This slowdown reveals skilled health personnelSurvival up to 5 Economic activityEducationthat the sluggish productivity IEG of Poland has = had 70an impactBCI of Portugal = 99,4IEG of Portugal = 73,187on unemployment rates, which went up to 8%in January <strong>2009</strong> compared to 7.7% in January2008. At the end of February <strong>2009</strong> almost 500,000unemployed people (5% of the population) hadapproximately 5% from 1994 when it was 23%.The improvement reflected the positive effectsof European programmes since 1989 to combatpoverty and the National Action Plan for InclusionPortugal, 17% are currently employed but theirsalaries do not cover their daily needs. 5 Poverty isincreasing in the big cities and has led to severalrecent suicide attempts.registered at employment centres.2003-2005, 3 which had some very positive guidingprinciples:Addressing poverty100100100Credit, housing and poverty risk95• A multidimensional and multidisciplinary ap- These findings suggest that the problem “is notLack of access to credit is another very negative proach to poverty and deprivation;what we are doing, but what is still to be done”. 6consequence of the international economic crisis.Although there are no official 37• An emphasis on partnerships between publicA transfer of approximately 52 3.5% of the incomedata regardingfrom those who are not poor would be enough toand private actors;this, many families lost their houses due to nonpaymentmeet the needs of those who are. 7of loan instalments in 2008. According0to the 2007 EU Survey on Income and Living Conditions• Participation of all 0interested parties, especiallythe poor;0Poverty in Portugal – as elsewhere – will notbe solved merely by social policies, although these(EU-SILC), non-monetary income com-100 99• Empowerment of the poor; andare also important. There is a need for economic95100 100ponents such 81as home ownership contribute 83 100100 100100 72100100topolicies that deal with the unequal distribution• Mainstreaming policies and actions to gener-97 ofsoftening the incidence and intensity of poverty. 2income, property and power. Economists and civilate awareness in each sector-based policyHousing losses – or increasing acquisition problemsamong the middle IEG of or Uganda lower classes = 67,2– and jobBCI of Estadosinequality in assets IEG of leads Usa to = economic 73,8 inefficiency,society organizations increasingly point out thatand prevent the fight against poverty beingreduced to a peripheral programme.losses have increased the risk of poverty, definedUnidos de América = 98.1 and that there should be more investment in humanby the EU-SILC as the share of adult inhabitantswith an annual income in 2006 below EUR 4,544(approximately EUR 379 per month).The EU-SILC showed that 47% of familieshad experienced poverty between 1995 and 2000,with 72% remaining poor for two or more years. 4capital (skills, education, health, training),which would also promote human rights. Only inthis way will Portugal overcome the weaknessesAccording to the EU-SILC, the risk of poverty Many of these are the new poor, men and women that have so long hindered its productivity, condemningit to one of the lowest economic growth100100100for unemployed Portuguese was 32% in 2006, who had recently belonged 88 in the middle class butslightly more than in 2005 (31%). This increase who became impoverished due to a family crisis rates in Europe.is predictable due to the increased 56 unemploymentmentioned above. Overall, however, the on housing loans or mortgages. At the beginning • Protection of the population that is highlysuch as the loss of a job or increased interest rates Three key recommendations to fight poverty are:48poverty risk went down to 18%, a reduction of of <strong>2009</strong>, NGOs highlighted some dramatic stories vulnerable to poverty when defining social0of people who had seen 0their lives changed radicallypolicies.0and become dependent on the help of third* “Children reaching…” estimated following procedure “1” inp. 209.• Integrating economic policies into the fightparties. The President of the European Anti 99 PovertyNetwork has said that, of the 2 million poor in1 See: .2 National Statistics Institute (INE). “Dia Internacional deErradicação IEG da Pobreza.” de Belgica Destaque, = 72,2 15 October 2007.3 See: . ICB de Costa Rica = 93,5IEG de Costa Rica = 66,85 See Rede Europeia Anti Pobreza at: .Available from: .Portugal contemporâneo. Lisbon: Gradiva. 2008.7 Ibid.100BNational reports 140 <strong>Social</strong> <strong>Watch</strong>
CHART 1. GDP growth and unemployment rate (%)9876543210-1-25.04.94.53.84.0 4.11998 1999 2000 2001 2002 2003 2004 2005 2006 2007-0.8of bank credit, specifically concerning housing.• Criteria that guarantee the General StateBudget (GSB) works for social cohesion.Some organizations, such as Oikos, havesuggested that a group should be createdunder the auspices of the Assembly of theRepublic to monitor the GSB. It should haverepresentation from civil society, scholars3.92.05.10.86.46.71.57.7Unemployment rateGDP growth0.9and policymakers, and use the following criteria:gender sensitivity, childhood rights,elderly rights, promotion of human capitaland territorial consistency.Impacts of climate changeA comprehensive study on the impact of climatechange in Portugal, the SIAM II, 8 suggests thatthe most significant effects of global warming7.81.48.11.9Source: Eurostat 2008.are: important erosion of the coastline, increasingfrequency of extreme weather events (such asprolonged droughts and sudden floods), reductionof rainfall (by 30%–40%) and increasing averageannual temperature. While not catastrophic,consequences of climate change in the countrywill entail losses between 5%–10% of GDP. Thereare potential impacts on water resources, coastalzones, fisheries, agriculture, forests, biodiversity,energy, human health, and important sectors ofthe national economy such as tourism.Given the inevitability of global climatechange, it is becoming increasingly clear thatpolicies for mitigation and adaptation must bestrengthened. Regarding mitigation, there is aneed to reduce CO 2emissions, improve energy efficiency,emphasize the reutilization and recyclingof products, review the whole transport and mobilitypolicies, and focus on clean and renewableenergy. The country should also develop mechanismsto use a significant part of the resources ofthe Portuguese Carbon Fund projects to achievea double benefit: offsetting carbon emissions/energy efficiency; and combating poverty, particularlyin developing countries.Regarding adaptation it will be required,among other measures, to invest in protecting thecoastline and water resources, to favour investmenton crops more resilient to climate change,and increase the energy efficiency in public andresidential buildings. n8 Santos, F. D. and Miranda, P. Alterações Climáticas emPortugal. Lisbon: Gradiva, 2006.<strong>Social</strong> <strong>Watch</strong> 141 Portugal
100romania52Dire prospects0A decline in exports has triggered bankruptcies, and 96a contraction in activities and 29 unemployment is on63the rise in Romania. Remittances, representing 5% of GNI, dropped 10010% at the beginning of 84 <strong>2009</strong>. 100 The98privatization and sale of national banks over the last few years has led to the country and its citizens tobecome indebted to Western banks. BCI of Marruecos A recent multi-billion = 81,1 loan from the IMF IEG seems of Morocco designed = 44,8 mainlyIEG of Moldova = 73,9to benefit these foreign financial institutions. Among the casualties of the crisis is aid for development:the entire Romanian development cooperation policy is in danger of disappearing.100 100 72100100 100100084100021100Fundatia pentru Dezvoltarea Societatii Civile(Civil Society Development Foundation)Valentin Burada100Like its neighbours from the former 53 Soviet bloc, Romaniais caught in the turmoil of the global financialand economic crisis. The country had enjoyed anBasic Capabilities Index (BCI)100BCI = 96* 91Children reaching5th gradeGEI = 71Gender Equity Index (GEI)Empowerment000economic boom in the past few years, fuelled in partby heavy borrowing from Western banks and easy10099 9899access to foreign loans. Currently, however, there is a100 100 69100100 100100 75100100credit crunch, the national currency is unstable, 98 and Births attended by97the situation looks dire.skilled health personnelSurvival up to 5 Economic activityEducationIEG of Portugal = 73,1 BCI of Rumania = 96IEG of Romania = 71,3State budget, remittances and– with 8.7% less in January than the same period in the Government also decided to extend the periodunemployment2008 – and is likely to worsen. The largest decrease of unemployment benefits by three months, whileRomania is dependent on falling EU markets. Exportshave decreased by 25% and capital flows are reversingdirection. January <strong>2009</strong> alone saw repatriationsworth EUR 539 million. The 100 decrease in exports hasled to rising unemployment, bankruptcies and a contractionin companies’ activities. Some 500,000 peoplewas in taxes on profits (-30.7%). Taxes on earningsand salaries brought in almost 20% more thanthe same period in 2008. Funds collected throughVAT, which remains the 100 main source for the budget,dropped 8% and are likely to 91 drop further.In response, new and higher taxes as well as in-employers and employees will be exempted for threemonths from paying social insurance contributionsduring temporary suspension of activities. 3According to data 100 from the National Bank of Romania,citizens working abroad sent home EUR 8.7billion in 2008 (up from 7 billion in 2007). 4 This was(5.7%) were unemployed in 52April <strong>2009</strong>, almost creases in social contributions have been proposed. almost as much as total foreign direct investment44half of them women, compared to 3.9% in April 2008. In March <strong>2009</strong>, the Government announced an increase(a record EUR 9 billion) and represents 5% of GNI. 5In May <strong>2009</strong>, the European Commission estimated0that unemployment would rise to 8%. Each percentagepoint means an additional 100,000 unemployed.in contributions to health insurance funds0of around 1% for both employees and employers,explaining that higher unemployment would leadA study released by the World Bank ranks Romania08th among developing countries in terms of migrantremittances. 6 However, at the beginning of <strong>2009</strong>, the99Although the average net monthly salary was EUR to fewer95contributions. Previously, the mandatory 98 level of remittances 61 dropped 10% compared with the100 100 72100100 100100 100327 in March <strong>2009</strong>, 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, the 98 two countriesMarch 2008 according to the National Statistics Institute,for employers. Business representatives believe thatthat are the source of 90% of total remittances,this is less impressive than in the first months of this measure will further increase unemployment both face serious economic problems and high rates2008, when there were IEG of raises Usa of = more 73,8than 30%. 1 It is since companies BCI will of Venezuela continue to = cut 94,5 costs and operatewith fewer employees.of unemployment. IEG of Some Venezuela 800,000 = 67,7 Romanians were8.1 expected that the crisis will cause the increases to slowfurther and even reverse. The Government has announcedthat budgetary salaries will be frozen, whichIn February <strong>2009</strong>, the Government announcedthat companies hiring unemployed persons, sole3 Press conference of the Prime-Minister of Romania, 5Februray <strong>2009</strong>. Available frrom: .See also: “Guvernulmeans less purchasing power. In a national television supporters of families or persons over 50 yearsinterview in April <strong>2009</strong>, the Prime Minister, Emil Bloc, old would receive subsidies for a period of up to 12100100 98a prelungit ajutorul de şomaj 100 cu trei luni şi acordc scutirerecognized that there was a real danger that the Governmentmonths in order to cover half the salaries of their la CAS dacă firma îşi „îngheaţă” temporar activitatea”, inwould not be able to pay state salaries and new employees. The subsidies would also support Gandul, 19 March <strong>2009</strong>, available from .48food producers have contracted, Romanian farmers lack of education or skills, do not have a fair chance inalso find themselves threatened at home by subsidized the labour market. For people unemployed for more4 “Banii trimişi de căpşunari, mai puţini cu 1,5 milioane euroagricultural and food product 0 imports from other EU than two years, the subsidies 0 would cover 75% of0pe zi” in Gandul, 6 April <strong>2009</strong>. Available from: .5499100100 100 100100 100quarter of 2008, a trend that has continued in <strong>2009</strong> Commission. Of this, EUR 29 million is allocated 5 “Investitiile 100 straine 72 directe au incheiat 2008 in scadere” 100 in9897for employment in the rural areas. 2 In March <strong>2009</strong>,* “Children reaching…” IEG de Costa estimated Rica following = 66,8 procedure “1” inp. 209.1 National Statistics Institute. Available from: .2 Fonduri Structurale.ro. Available from: .100Standard, 13 February <strong>2009</strong>. Available from: .ICB de Francia = 98,8 IEG de Francia = 726 People Move, a blog about migration. Available from:.4288100100National reports 142 <strong>Social</strong> <strong>Watch</strong>
working in Spain, mainly in the hardest hit sectors(services, industry and construction). In November2008, Spanish authorities announced that 100,000Romanians were unemployed, with 30,000 moreexpected to lose their jobs by <strong>2009</strong>. 7In November 2008, the Romanian Minister ofLabour and <strong>Social</strong> Affairs stated that in <strong>2009</strong> Romaniacould absorb up to 500,000 workers returningfrom abroad, as there was a shortage of labourfor infrastructure projects and in the agriculturalsector. However, these comments were basicallymeant to soothe Italian and Spanish Governments’concerns that Romanian workers would becomea burden on their countries’ already overstretchedunemployment benefit schemes, rather than beingan expression of real possibilities. 8 Still, according toan opinion poll produced by the Soros Foundation inSeptember 2008, only 14% of Romanians working inSpain intended to go home in <strong>2009</strong>. 9Foreign banks, the IMF and the peopleVirtually all Romanian banks have been privatizedover the last few years and sold to foreign banks. Untilthe beginning of the financial crisis, foreign banksmade huge profits on a market in full and rapid expansion.In 2008, BCR (Este Group/Austria) reportedan increase in net profit of 119.8%, BRD SociétéGénérale (France) registered an increase of 46%,and Raiffeisen Bank (Austria) increased its profit by75.6% compared to 2007. The net profit of just thesethree, the largest banks in Romania, totalled morethan EUR 1 billion.At the beginning of the financial crisis, the RomanianNational Bank intervened in an attempt tocalm down the lending extravaganza triggered by thecompetition, imposing a series of restrictions aimedat preventing defaults. However, the level of indebtednessincreased sharply. This has led to a scenarioin which, just as in most of Central and Eastern Europe,Romanian debts are owed to Western Europeanbanks, especially from Austria, France, Greeceand Italy. Without any consideration for the potentialnegative impact of their actions, the banks fuelleda consumption trend based not on actual produc-7 “Spania: 100,000 de someri romani” in Standard, 27November 2008. Available from: .8 “Ministrul Muncii: Romania poate absorbi pana la 500.000de persoane venite din Spania si Italia”, in 9AM News, 10November <strong>2009</strong>. Available from: .9 “Criza întoarce acasă jumătate dintre românii din Spania”in Gandul, 28 November 2008. Available at .More informationon the situation of Romanian migrants in Spain the SorosFoundation Romania. Available from: .tion by the local real economy but on an increase inimports from Western Europe. Basically, with moneyborrowed from Western Europe, these banks havesupported their own national economies by puttingRomania and its citizens in debt. 10This situation is aggravated by the fact thatWestern European governments have been puttingpressure on their banks to pull back, undercuttingsubsidiaries in Eastern Europe. The European Bankfor Reconstruction and Development (EBRD) expectsdefaults of up to 20% on Eastern European loans,with Romania among those especially hard hit. Thedecision makers in Bucharest are constrained in theirfiscal policy choices by the fact that belt-tightening isrequired to correct the negative values of the balanceof payments. At the same time, a weakening of thenational currency could potentially trigger defaults,thereby shaking financial stability. In order to counterthese dangers, the Government asked for andreceived a loan of EUR 19.95 billion from the IMF,the European Commission, the World Bank and theEBRD. Of the total loan, the IMF will provide EUR12.95 billion.The Government insists that the loan will belinked to the commitment of foreign banks in Romaniato resume credit without externalizing theresources in the country or affecting the nationalbudget obligations for education and health. At theend of March 2008, the IMF obtained written commitmentsfrom the head offices of the main banksubsidiaries in Romania that they would continueto support these branches and would not withdrawcapital. However the Government has a poor recordof withstanding foreign pressure. It also lacks themeans to circumvent foreign “solutions” to nationalproblems. Both the Government and civil society,with few exceptions, have been slow to react andexpose the real stakes. The austerity measures proposedby the Government, including freezing publicwages and pensions and tax hikes, have provokeddiscontent and mobilization by trade unions.The IMF loan seems to have been contractedunder external pressures, mainly to save foreigncompanies’ interests in Romania. It will not serveto repay the country’s foreign debt but will cover thedebts of local subsidiaries of foreign banks. Publicfunds will thus be used to repair the damage done byprivate capital. The governments of Western Europehave generally been able to manage this damage.However the desperate calls from the Austrian Governmentfor EU and IMF intervention to rescue its10 An excellent series of analysis on this topic has beenpublished by Prof. Ilie Serbanescu in Revista 22. Seefor instance “Acordul cu FMI: Corectitudinea politică şicapitalismul călcate în picioare”, in Revista 22, 21 April<strong>2009</strong>. Available from: or “Acordul cu FMI–Ar fi de râs, dacă n-ar fi de plâns!” inRevista 22, 7 April <strong>2009</strong>. Available from: .banks in Eastern Europe prove that foreign banks aresometimes dangerously overexposed (e.g., Austrianbanks have lent the region an amount equivalent to70% of Austria’s GDP). The repayment of a loan thatrepresents 40% of Romania’s annual budget will onlybe possible over the next years through decreasingthe population’s standard of living.Crisis in development assistanceIn 2007, when joining the EU, Romania pledged tocontribute as a donor country to alleviating poverty inthe world by participating in the EU aid policy and byconfiguring its own official development assistance(ODA) policy. The current financial crisis is likely tohave a dramatic impact on Romanian aid flows. TheODA budget managed by the Ministry of ForeignAffairs (MFA) was cut from EUR 5 million in 2008 toEUR 1.9 million in <strong>2009</strong>. Meanwhile, the multibillionloan from the IMF has already imposed budgetaryconstraints for “non-essential” areas, and repayingthe loan (by 2015) will affect the ODA budgetfor many years to come. Even though multilateralODA contributions will remain at a relative constantlevel, it is very unlikely that the 0.17% ODA target towhich the Government committed will be achievedby 2015.The Romanian NGO platform for development(FOND) has warned that the entire Romanian developmentcooperation policy is in danger of disappearing.11 Crucially, all previous investment in the newlydeveloped institutional capacity for the MFA is beingaffected. The Government has addressed the majorityof its internal capacity development needs throughout-sourcing specific tasks to UNDP Romania. CSOsare concerned that, by doing this, the Government ismissing its main short-term objective: strengtheningnational capacity.A clear signal of the impacts of this approachwas the change in the internal administrative structureof the MFA at the beginning of <strong>2009</strong>. While importantfinancial resources were allocated by theGovernment to UNDP Romania to hire experts, theDevelopment Assistance unit within the MFA wasdowngraded and its staff was halved, with a subsequentdecline in capacity for programming and managingdevelopment assistance. Although budgetarycuts in times of crisis are understandable, destroyingadministrative capacity in public institutions is notacceptable as it has long-term implications. UNDPrepresentatives should understand that by divertingresources and delaying empowerment processes,they risk harming the emerging local developmentcooperation actors in Romania. n11 “De ce are nevoie Romania de o politica de cooperare pentruDezvoltare?”, available on FOND’s web page at.<strong>Social</strong> <strong>Watch</strong> 143 Romania
Senegal44Farming: the sole answerAs the most food-import dependent country20in West Africa, Senegal faces several challenges 34 as a consequence989049100 100 81of the multiple 100 global crises 100 which affect the economy, finance, 100 environment, 100 energy and, of course, food. 100 All97of these challenges result in the decline of the quality of life of Senegal’s citizens – particularly amongst the more1008vulnerable sectors – because of their repercussions on the country’s scant production, diminished imports andIEG of Vietnam = 73,9 BCI of Yemen = 58,7IEG of Yemen = 30the high price of basic products. The Government’s plans do not provide an adequate response to the country’sneeds. Civil society proposes returning to traditional agriculture, duly encouraged and supported by the State.B<strong>Social</strong> <strong>Watch</strong> Senegal 1100Basic Capabilities Index (BCI)Gender Equity Index (GEI)100100100BCI = 69 GEI = 55In Senegal, the worldwide food crisis caused byChildren reachingEmpowermentan increase in demand – particularly in the case of655th gradecereals – within a context of low yields and higherproduction costs due to the increase of oil prices, has20given rise to riots throughout the country. The high270price of oil and the increasing demand for energy00have conspired against subsistence agriculture, as9636regards cultivated areas, due to the production of528861100 100 100100 100100 76 100sugar cane and maize for biofuel (diesel and ethanol). 99Births attended byThe situation has become even more serious due skilled health personnelSurvival up to 5 Economic activityEducationto the problems IEG caused de Nicaragua by climate = 51,5 change and theICB de Senegal = 68,5IEG de Senegal = 54,9• Populations and enterprises face difficultiesfinancial crisis. Assistance for development diminishedand exports were restricted in some countries– such as India – which particularly affected the morehelpless populations of underdeveloped countriessuch as Senegal.Some of the consequences of the crisis – whichin developed countries impact on purchasing powerrather than on the availability of food – are in Senegalmalnutrition and the mass exodus of the populationtowards urban centres. In addition, poverty and unemploymenthave a negative impact on the likelihoodof fulfilling the MDGs.The level of access to basic social services forthe population has remained extremely low in thecountry, with over 53.9% of the population subsistingbelow the poverty threshold. The more disadvantagedsectors in rural areas and the suburbs oflarge cities, together with children, women and theelderly, are the most affected. The Government’smeasures have not been effective since they havebarely enabled access to healthy food in sufficientquantity to the population that is very close or belowthe poverty threshold. Measures taken should focuson the most disadvantaged, whose needs are greater,as in Senegal the State’s budget favours the rich, thesalary earners and city dwellers, and includes, inparticular, subventions for electricity, gas, water andfuel. There are families in the cities’ suburbs and inthe country who barely have access to food.Some of the factors that have influenced the most onthe deterioration of the situation are:• A rain-dependent agricultural sector which mustconfront soil degradation, low production,1 This working group had the support of the Pan-AfricanYouth Organization (PAYO), a member of the African YouthCoalition Against Hunger (AYCAH).01000the absence of agricultural developmentpolicies and the establishment of unpopularprogrammes which lack coherence, such asBack to Agriculture or the Great AgriculturalOffensive for Food and Abundance (GOANA, inFrench), the lack of access to supplies, agriculturalmaterials and credit, and weak investmentin the sector (for example, the failure to honourthe Maputo commitment, according to whichthe State should devote 10% of the budget toagriculture).• The country’s food dependence (Senegal is,per capita, the most food-import dependentcountry in West Africa). Local rice productionbarely covers between 20% and 30% of thecountry’s needs; wheat is 100% imported. Theproduction of cereals covers less than 50% ofthe demand.• The environmental crisis resulting from globalwarming has reduced fishing in Senegalesewaters. Fishing is an important source of resourcesfor the primary sector and one of themain sources of protein for the population. Accordingto the National Agency for Statistics andDemography, shortages amongst some specieshave resulted in an increase of 13.8% in theprice of fish and other fresh marine products.• As regards energy, the country’s total dependenceon oil imports and SENELEC’s productionmakes it still incapable of guaranteeing an effectiveand financially accessible electrical servicefor consumers. Thus, despite its potential forgenerating renewable energy – Senegal is a verysunny country – energy sometimes represents50% of the total cost of production.66•100in obtaining access to electricity, the price ofwhich has gone up several times. Consumersstrongly criticize the billing system and thereare continuous energy cuts which cause inconvenienceto households and slow down craftand industrial production. All of this has led toa wave of uprisings led by imams, priests andlater on consumer associations and workers’unions.Due to the crisis which the African Refiners Associationhas been undergoing for some time,butane gas suffers chronic shortages on themarket and is sold at prices which are inaccessibleto consumers who, in addition, must queuefor 24 or 48 hours at the points of sale.Measures taken by the Government:0• The objective of the GOANA programme is toachieve food self-sufficiency through the productionof 2 million tonnes of maize, 3 milliontonnes of cassava, 500,000 tonnes of rice, 2million tonnes of other cereals such as millet,sorghum and fonio millet. However, this solitaryundertaking of the Government’s, whichestablished no connections with leading figuresof the various agricultural sectors, or did so toa very limited extent, delays in establishing factorsof production (such as seeds, fertilizers andagricultural materials), the intervention of administrativestaff and traders in land and supplyissues, have not made it possible to achieve theobjectives despite adequate amounts of rain.• The organization of a campaign for the distributionof provisions and cattle feed, for a total of6National reports 144 <strong>Social</strong> <strong>Watch</strong>
••CFA 10 billion (USD 22 million) in rural populationsaffected by the crisis.The State’s removal of customs duties and importtaxes on some products such as subsidizedrice and butane gas, although the expected resultshave been diminished by the drain of largequantities of these subsidized products sold inbordering countries by unscrupulous traders.The reduction of taxes on the salaries of workersfor a total of CFA 6 billion (USD 13.2 million) andthe subsidy of food products for a total of CFA 7billion (USD 15.4 million).Nonetheless, these measures are inadequate dueto the fact that they are merely interim solutions, aswell as being inequitable and ineffective, since theyhave not reached the more vulnerable sectors of thepopulation. In their place, it is necessary to implementsocial investment in infrastructure in orderto improve the population’s access to basic socialservices (food, water, energy, education, health andhabitat) and reduce inequality between men andwomen and different ethnic groups.The impact on healthAlthough primary health care, the care of pregnancyrelatedrisks and health care for the elderly showsome progress, the social and financial crisis hashit the health sector and generated, amongst otherthings, personnel strikes, hospital debt, the closureof some of the maternity services – particularly inDakar – the lack of qualified personnel, closed healthposts or posts run by non-medical staff. There havebeen new outbreaks of diarrhoeal diseases and malaria.The illegal distribution of medicine has emerged(10% of the drugs circulated in the country are falsified)due to the absence of legislation adapted tothe current situation and the absence of dissuasivemeasures.Sanitation is very deficient throughout thecountry. Frequent floods often lead to the displacementand rehousing of people in unsuitable locations(such as schools and other public buildings) whichupsets social and cultural networks and further deterioratesthe sanitation situation.An alarming lack of water-purifying stations andthe strain on the Camberene station in Dakar is acause of the contamination of all of the beaches andbays of the city, which are used to dump domesticand industrial sewage. In addition, the public garbagecollection service is inadequate.Gender and the crisisSenegal continues to follow a very patriarchal modelwhich has displayed scant progress regarding therelationship between men and women. However, inorder to obtain the application of international instruments(signed and ratified charters, conventions ordeclarations of principles) the Government is obligedto collaborate with partners to whom it is connectedby means of bilateral or multilateral agreements.Despite the fact that institutions such as the UnitedNations, the African Union, the Economic Communityof West African States, the International FrancophoneOrganization and civil society movements seek thematerialization of all agreements, the gap between thespirit of the texts and national reality is wide.Civil society proposalsIn an attempt to find a way of acting directly on theendogenous factors of the current situation, wepropose:• Supporting inclusive management in conceiving,applying and following up economic andsocial development policies and programmes,in compliance with the commitments undertakenby each party.• Fostering a return to the land, making familyagriculture a pillar of growth, in contrast withagro-business, as indicated in the PovertyReduction Strategy Document. With regard tofood security and self-sufficiency, we requestthe establishment and application of medium tolong term agricultural policy with wide participationof the actors involved and a consistentfinancing plan. The process for the drafting andapproval of the Agro-Sylvo-Pastoral Act, whoseapplication has been delayed, could be a sourceof inspiration.• Carrying out a genuine land ownership reformwith the purpose of re-establishing the rightsof peasant farmers and local communities,granting them full and complete ownership ofthe land, which is their basic working tool. Theimbalance between urban and rural settings regardingthe right to property, which is stipulatedby the Constitution, needs to be corrected.• Modifying public and private consumption andinvestment models.• Increasing the value of the contributions madeby Senegalese who are part of the diaspora, byturning a large part of the money transfers fromabroad into savings and investment.• Guaranteeing equitable and effective geographicdevelopment in order to increase the size of thedomestic market and make local populationssustainable.• Carrying out a cultural revolution in order to trulychange the mental outlook of peasant farmersand achieve the emergence of modern farming.This implies the eradication of illiteracy throughthe enrolment in schools of all school-age children(boys and girls) in rural areas, in order toprovide them with the basic tools they need forthe considered control of their environment.• Standardizing mining concessions – particularlyin the case of precious metals – in order to establish,amongst other things, national consultationprocedures and prior actions to reinforcethe capabilities of administrative personnel andlocal unofficial figures (entrepreneurs, unions,NGOs and human rights organizations), as wellas a judicious use of the income which financesthe national budget and consideration regardingthe non-renewable nature of these resources.• Improving the social direction of the institutionaland regulatory framework of micro-finance andimproving the social outcome of the DecentralizedFinancing Structures (SFD, in French).• Promoting urban and peri-urban agriculturethrough micro-gardening, which could constitutea true green revolution within the urbanand peri-urban environment and a means ofdeveloping activities which generate incomefor women and improve the food and nutritionof families, which would contribute to the goodhealth of vulnerable populations and the fightagainst poverty. n<strong>Social</strong> <strong>Watch</strong> 145 Senegal
,196serbia100Global crisis, local unrest02129 Government indecisiveness and lack of a clear strategy and vision to counter the negative effects of4886the crisis have fuelled pessimism and discontent among the population, 100 which demands actions 6884100 – not92just words – to combat corruption and crime and to establish the rule of law. The economic situationIEG of Morocco has been = 44,8 deteriorating, endangering BCI of Mozambique citizens’ economic = 66,1 and social rights. Government IEG of Mozambique revenues = 64,4 havedeclined owing to large-scale privatizations since 2003. Pressured both by the IMF and by publicdiscontent, politicians draft plans that are almost immediately discarded.100 100 100100 100100064100034100BBAssociation Technology and SocietyMirjana Dokmanovic, PhDDanica Drakulic, PhD 100The planned GDP growth of 3.5% for the <strong>2009</strong> budgetproved to be over-optimistic. The fall of GDP is evident,estimated at -4.8%. 1 The industrial productionin May <strong>2009</strong> went down by 18 % compared to the2008 average. The limiting 100 factors of sustainable developmentare high unemployment and other socialproblems. According to data from the National EmploymentAgency, the number of unemployed by the44end of June <strong>2009</strong> was 763,062 (25.85% – of which52.94% were women) and 70% of employed peopleworked part-time. 2 0Estimates of the number of workerswho lost jobs between December 2008 and March<strong>2009</strong> vary from 31,000 613 to 133,000 4 , in many cases100 100due to decreased production and cancelled 98 orders.On the average, approximately 2,500 employees getdismissed every month 5 . More than 2,000 small andmedium-sized enterprises IEG of Venezuela ceased to = exist 67,7 in 2008; theeconomic context does not favour setting up new businesseswhile bankruptcy threatens 60,000 firms. Internaldebt, totalling more than USD 3 billion in February,puts economic activities and employment at risk.The foreign debt is constantly increasing and100Basic Capabilities Index (BCI)BCI = 98*Children reaching5th gradeSerbia is suffering from declining industrial output,42dropping exports, imports, foreign and internal tradeand a marked decline in the Belgrade Stock exchange.quarter of <strong>2009</strong>, the number of those living below000In addition, there is a high foreign trade deficit. The absencethe poverty line increased NO by VA 0,00,0 60,000 people, and theof foreign investment inflows and credit couldtrend has not declined. 8 Those who are most at risk9899 99100cause serious problems in the balance of paymentsare the unemployed, children, people above 65 years100 100 75100100 100100 100100and an increase in the trade deficit, together 97 with risingBirths attended byof age, persons with disabilities, the Roma, refugees,unemployment and falling earnings.skilled health personnelSurvival up to 5 women, rural elderly households and large families.IEG of Romania = 71,3The declining economyBCI of Serbia = 98,1topped USD 30.7 billion in June <strong>2009</strong> (64% of GDP), 6IEG of Serbia = 0Government response16% higher than in 2007. While last year’s foreign trade The Government initially hesitated in the face of thedeficit was USD 9.5 billion, the value of the national currency,crisis, reacting slowly and failing to warn the people.the dinar, dropped by 25% in the last quarter of In an evaluation of the impact of the crisis in Decem-2008. The lack of foreign direct investments (FDI), and ber 2008, it suggested that some sectors would beof money inflows from 100 foreign banks, has limited the hard hit – though it was 100 hard to know which ones92resources for defending it. An estimated foreign currencyinflow of USD 5.9 billion is needed to maintainthe dinar’s stability. However, given that the countrygained only USD 3.3 billion from the large-scale privatizationscarried out since 2003 (now completed) and2008. The number of workers shrank from 400,000to 135,000 and is still decreasing. 100 Even US Steel, whohas bought the biggest Serbian forge Smederevo, hasannounced that it will dismiss workers.The economic turmoil and unfavourable privatizationshave led to increasing poverty. Within the first– while others would not be affected. 9 However, it diddevelop a “Framework of Measures” related to thestate (in the broadest sense), the economy (industrial44and financial sectors) and the general population. 10In February <strong>2009</strong>, the Government adopted a0that increased foreign investment is not to be expected,0stimulus package aimed at increasing liquidity throughthis amount of money will not be available.approving loans to banks (so they could offer loans to98In fact, 88 the results of privatization have 98 been businesses on favourable terms), and providing incentivefunds for 81100100 100 100100disastrous. The bulk of the capital from selling stateexport-related activities to 97 companiesproperty went into consumption, not investment, and (which were then under an obligation not to reduce thethe export sector was not restructured. Most of the number of employees). Favourable terms were set upinvestment went ICB to banking, de Viet Nam trade = and 92,8real estate. for credit accounts IEG of of citizens Vietnam to = stimulate 73,9 purchasingPushing industrial production into the background and power and production. According to the Ministry of theneglecting technological development have led to the Economy and Regional Development, up to 4 August,economy’s extremely low competitiveness. There are a total of USD 874 million had been given as loans forno valid official figures for the total state revenues from increasing liquidity 11 and USD 25 million for consumerthe privatization process since 2000. 7 The purchase by loans. 12 Almost 1,000 requests for start-up loans for100100foreign investors of whole industrial branches (e.g., the small and medium-sized enterprises were submitted.* “Children reaching…” estimated following procedure “2” in dairy industry) has contributed to monopolies and risingThe Union of Employers demanded strict rules for app.prices. The sale of 51% of the Oil Industry of Serbia209.48** There are no available data on GEI.47to the Russian company Gasprom for USD 528 million 8 Government of the Republic of Serbia. Ministry of Labour and1 EMportal, Economist Media Group Web site. 15 August <strong>2009</strong>.Retrieved 17 August <strong>2009</strong>. Available at: .0has also raised discontent among the public and expertsas this was one of the 0 country’s biggest sources<strong>Social</strong> Policy Web site. Available 20 at: .9 Government of the Republic 0of Serbia. The Economic Crisis2 National Employment Agency (NAE).Government ofand Its Impact on the Serbian Economy. Office of the Primeof revenue. Before privatization, State companies contributed44.5% of the GDP, in comparison 96the Republic of Serbia. Unemployment data June <strong>2009</strong>.Minister. Available at: .100 100 72100100 67100100 1003 Ibid.976 National Bank of Serbia. Monetary and Forex Statistics.10 Ibid.994 B92. Citizens’ Standard of Living Is Worsening. B92 Website. 16 August <strong>2009</strong>. IEG Retrieved de Francia 16 August = 72 <strong>2009</strong>. Available at:.5 Government of the Republic of Serbia. Ministry of Labour and<strong>Social</strong> Policy Web site. Available at: .Retrieved 15 August <strong>2009</strong>. Available at: .ICB Nicaragua = 70,17 Aleksic, J. and Stamenkovic, B. “Nobody Knows Wherethe Money from Privatisation Goes.” Blic, 24 March <strong>2009</strong>.Available at: .11 Until August <strong>2009</strong>, 90% of Serbian companies havesubmitted IEG requests de for Nicaragua these loans. = 51,512 Government of the Republic of Serbia. Ministry of Economyand Regional Development (MoE) Web site. 6 August <strong>2009</strong>.Retrieved 16 August <strong>2009</strong>. Available at: .10096100100Informes nacionales 146 <strong>Social</strong> <strong>Watch</strong>
proval of these loans to prevent corruption as previouslythere had been cases of loans to tycoons as wellas funds that disappeared. 13Affirmative measures have also been developedto stimulate the employment of vulnerable groups,such as workers aged 45–50, people with disabilities,Roma and those who have been unemployed for morethan two years. The employment of these categorieswill be subsidized by USD 1,100 to USD 2,200.At the end of March <strong>2009</strong>, negotiations with theIMF ended in the agreement on a stand-by arrangementworth USD 3.96 billion to be implemented byApril 2011. It was pointed out that Serbia would notbe able to cover its budget deficit or pay pensions andsalaries without IMF assistance. The Governmentalso signed a loan agreement with the World Bankworth USD 46 million for the development of theprivate and financial sectors 14 . The European Commissionis assisting with USD 142 million to ease theeconomic and social consequences of the crisis.The Government announced it would requestfrom the IMF permission to increase the budgetdeficit from the agreed 3% of GDP to 4.5% in <strong>2009</strong>.According to the media, as a guarantee for a less expensivestate, the Government is ready to accept theconditionality of significantly slashing the number ofemployees in the public sector, mostly in the areasof education and health care. 15 This measure wouldparticularly hit women who comprise the majority ofemployees in those sectors.A state of indecisionUntil mid-summer <strong>2009</strong>, no consistent and comprehensivepolicy was implemented to counter theeconomic and social troubles of the population, despitethe great number of announced-then-revokedmeasures. In March the Government also announcedthe introduction of a temporary “solidarity” salaryand a pension tax of 6% for those who earned aboveUSD 170, stating that this tax would be used to setup a fund to assist the poorest and help equalize theburden of the crisis. However the measure, whichresulted from pressure by the IMF to decrease theState deficit, stirred up discontent among workersand pensioners while trade unions announced protests.They argued that the “solidarity” tax wouldhit the poorest, 16 cause a reduction in salaries andincrease unemployment and work in the informalsector, while the rich would stay untouched. Overnight,the Government revoked the whole savingsplan. It was caught between fear of social turbulenceon one side and pressure from the IMF onthe other, and the following weeks were markedby discordant voices from policy makers, who13 Solesa, D. “Without Corruption with Loans.” EconomicReview, 30 January <strong>2009</strong>.14 Government of the Republic of Serbia. “World Bank toProvide 34.9m Euro Loan.” Available from: .15 EMportal, Economist Media Group Web site. 14 August <strong>2009</strong>.Retrieved 17 August <strong>2009</strong>. Available at: .16 In January <strong>2009</strong>, the average pension was USD 305 a monthand the average salary USD 440. The highest salaries werethose of managers of public enterprises (USD 3,100).announced new packages of saving measures in theevening that were revoked the following morning. 17At one point the Ministry of the Economy recommendedthat the Ministry of Justice urge courtsto prolong proceedings related to labour disputes inwhich workers were claiming non-payment of salariesfrom newly privatized firms and other benefitsfrom the privatization process. The Ministry claimedthat paying salaries would jeopardize production inthose firms, 18 in complete disregard of the independenceof the judiciary. 19 This controversial recommendationwas subsequently revoked.The revised savings plan was adopted on 16April, together with a revision of the <strong>2009</strong> State budget.20 The Government announced the setting up of aspecial budget fund that will be filled by taxing highsalaries and reducing salaries in the public sector.The <strong>Social</strong> Economic Council did not supportthe new savings plan because it includes the firingof workers and reducing salaries. 21 The Council estimatedthat the measures would not stimulate theeconomy but merely save budget resources, pointingout that instead of imposing taxes on workers,the money should be collected from those who gotrich during the privatization process.The population’s pessimism and discontenthave also been fuelled by the seeming inability ofpolicy makers to put words into actions with respectto combating corruption and crimes, and establishinga rule of law that would really contribute to improvingthe financial situation of the country andits citizens. It is estimated that more than USD 500million is lost every year due to lack of control overpublic procurements. 22 In 2008, by allowing for thenon-payment of taxes by big private companies, theState lost an additional USD 1.3 billion.Who really needs to tighten their belt?By implementing the newly adopted Law on Confiscationof Property Gained by Crime, the state couldcollect USD 2.64 billion in one year, a sum equallingthe one Serbia is asking for from the IMF. 23 At the InternationalAutomobile Fair in Belgrade, all the most17 For example, reducing the number of ministries, increasingproperty taxes, taxing mobile phone bills and the purchaseof new cars, introducing a luxury car tax, banning newemployment in the public sector, limiting business tripsabroad and reducing working hours.18 Blic. “It Is Not Possible to Step Out from Crisis by Violation ofLaws.” 24 March <strong>2009</strong>. Available from: .19 The Board of the Supreme Court has decided that thisrecommendation violates the Constitution and the EuropeanConvention on Human Rights and Fundamental Freedoms.20 Government of the Republic of Serbia. “<strong>2009</strong> BudgetRevision Adopted.” Available from: .21 FoNet. “<strong>Social</strong> Economic Council Does Not Support theGovernment’s Measures.” Blic, 15 April <strong>2009</strong>. Available at:.22 Vucetic, S. “Unbreakable Partnership of Politics andTycoons.” Blic, 17 April <strong>2009</strong>. Available from: .23 Cvijic, V. Z. “In the Serbian Cash Register 2 billion Euro fromthe Mafia Property.” Blic. 25 March. Retrieved 26 March <strong>2009</strong>from: .expensive models were sold on opening day for atotal of more than USD 2.6 million. 24The level of subsidies for a four-member familywithout an income in December 2008 was USD 134.The minimum cost of living for a four-member familywas estimated at USD 1,100. One of the prioritiesof the Ministry of Labour and <strong>Social</strong> Policy will beopening food kitchens for the poor; there are now58 kitchens for 21,000 beneficiaries, but many moreare needed. 25 In March, the Ministry of Trade andFinance opened the first “SOS Market” in Belgradeand announced the establishment of similar marketsall over the country. These markets are supposed tosell food products at lower prices and are intendedto improve the situation of vulnerable groups. SOScards have recently begun to be issued. 26Instead of protecting workers from their rightsbeing violated, trade unions leaned to the other side.At the beginning of <strong>2009</strong>, the Union of IndependentUnions and the United Branch Union “Independence”agreed with the Union of Employers and the Governmentto postpone the implementation of the GeneralCollective Bargaining Contract and to delay some ofemployers’ financial obligations towards workers,including paying worker benefits. 27 This contributedto the overall practice of employers in the privatesector to not pay wages and other benefits. As a result,every tenth worker in Serbia (180,000 in total)does not receive a salary. 28 The labour inspectoratereceives thousands of reports, but claims that it hasno mechanisms to force employers to pay salaries.At midst of August, 30,000 workers in 29 companieshave been on strike over unpaid wages, healthand pension insurance and violations of collective orprivatization contracts. 29 Strikes become more andmore frequent, and the workers voices more and moreresolute. For instance, workers from the Partizan factoryin Kragujevac went on hunger strike until exhaustion toforce the owner to pay unpaid salaries. And those fromthe First May factory in Lapovo lied down on the railroadtracks and blocked international railway transportation.Workers from the Zastava Electro in Racha and fromthe Belgrade Department Stores have spent monthsprotesting against bad privatisation practices, includingprotests in front of governmental buildings in Belgrade.Workers of Rashka Textile Company in Novi Pazar, beingin a hunger strike for a week, succeeded in catching thepublic’s attention and forcing the payment of salariesafter one of them severed and ate his own finger. n24 Press Online. “No Crises: Two Million Euros for One Day!” 28March. Retrieved 30 March <strong>2009</strong> from: .25 Ministry of Labour and <strong>Social</strong> Policy (MoL). Government ofSerbia. Retrieved from: .26 B92 Net. “SOS Cards Are Starting to Be Issued”. Retrieved30 March <strong>2009</strong> from: .27 Solesa, D. “Crisis ‘Tied’ <strong>Social</strong> Partners?” Economic Review,30 January <strong>2009</strong>.28 B92 Net. “180,000 Workers do not Receive Salaries”.15 August <strong>2009</strong>. Retrieved 16 August <strong>2009</strong>. Available at:.29 EMportal, Economist Media Group Web site. 15 August<strong>2009</strong>. Retrieved 17 August <strong>2009</strong>. Available at: .<strong>Social</strong> <strong>Watch</strong> 147 Serbia
0100slovakiaRevising the plans0NO VA 0,0Slovakia successfully reformed its economy to enter the EU. Growth is slowing down, however, and the car industry9457– the country’s industrial pride and joy – is already reducing production. 100 To tackle the crisis the Government 74 100 hastaken various measures, many designed to boost employment and regulate the market. For their part, NGOs mustIEG of Burmaimmediately= 0address their lack of preparednessBCI of Nepal =for58,4the crisis. Discrimination againstIEGRomaof Nepaland=women51,2persists, asdoes the authoritarian way in which the Government tries to ignore its political opponents. Overseas developmentassistance (ODA) has been legally institutionalized and is growing; nevertheless it still remains below EU standards.100 100 100100 100Slovak Political InstituteFaculty of Economics, Technical University of KošiceDaniel Klimovský 100Basic Capabilities Index (BCI)100 99BCI = 99 GEI = 69Children reaching5th gradeGender Equity Index (GEI)EmpowermentSlovakia implemented several 42 painful social and43economic reforms before and after acquiring fullEU membership in 2004. Thanks to these, the000country achieved economic growth above 7% in2008, the highest in the EU. Moreover, Slovakia99100100met the requirements of the European Economic100 100 67100100 100100 7182 100and Monetary Union and replaced the 97SlovakBirths attended byCrown with the Euro on 1 January <strong>2009</strong>. The EuropeanCommission IEG stated of Slovakia in November = 68,8 2008BCI of Eslovenia = 99,5IEG of Slovenia =skilled health personnelSurvival up to 5 Economic activityEducation65,1that Slovakia (together with the Czech Republicand Poland) did not present any dramatic scenariosin terms of the global crisis and actuallyprojected economic growth of 2.7% in <strong>2009</strong> and3.1% in 2010, with the economy expected to remainamong the top performers 100 in the EU for <strong>2009</strong>and very likely for 2010.However, a gradual sobering began in <strong>2009</strong>. 1The National Bank of Slovakia predicted in Aprilthat the economy would decline by 2.4% duringthe year, then grow by 2% in 2010 and 3.2% inCoping measuresIn January <strong>2009</strong> the Government launched a EUR332 million (USD 431 million) plan to support employmentand boost domestic demand to fight thecrisis. A Crisis Committee, made up of representativesof government, the Central Bank, commercial100banks, trade unions, employers, 89 municipalitiesand the parliamentary opposition 2 was set up toanalyse the impacts of the crisis and proposemeasures to address them. The following month,the Ministry of the Economy announced some 620 602011. A more pessimistic prediction was made by measures to eliminate or at least alleviate somethe European Bank for Reconstruction and Developmentin early May, estimating 4943impacts, including the utilization of EU funds, the340that the Slovak preparation of public-private partnership projects100 100 100100 82 100economy would decline by 3.5% in <strong>2009</strong>, and for the construction of highways, and increasingthen grow by 0.8% in 2010. Meanwhile, Governmentdata show that unemployment rose sharply opment projects.state expenditure for diverse research and devel-in December 2008IEGtoofalmostYemen8.4%= 30(from 7.8% in The Government BCI of Zambia has = also 71,3begun to be moreNovember). After estimating in January <strong>2009</strong> that proactive in regulating prices, approving selectivemore than 15,000 jobs would be threatened, the support tools for tourism and issuing requirementsMinistry of the Economy re-evaluated this in April and/or recommendations for banks and enterprises.and forecast job losses topping 30,000.In addition, in March <strong>2009</strong> it re-purchased for USDSlovakia is considered “the Detroit of Europe” 240 million the 49% block of Transpetrol’s shares100with the Kia, Peugeot and Volkswagen plants, togetherwith their network of suppliers, comprising 2002. This potentially gives it a strong hand in deter-sold to Yukos International for USD 74 million ina more than 20 billion EUR a year industry that mining the country’s energy policy.provides more than 75,000 jobs. However, the So far, Slovak NGOs have not focused on the27firms depend on European demand, since the Slovakcar market is too small 0 and conservative, and eral reasons: donors will be cutting contributionsglobal economic crisis. They need to do so for sev-in early <strong>2009</strong> they reduced production.for philanthropic activities; a lack of resources will861mean NGOs have to re-evaluate their priorities and100100 76 100activities; the crisis will create more demand for NGOassistance or co-operation; and there will be more intrusiveand frequent political or state interventions in1 Pokorný, J. Global IEG crisis de Senegal – a traumatizing = 54,9 factor or anopportunity for Slovakia?. Available from: .expert without any political2 The parliamentary opposition could nominate only oneaffiliation.10019062relation to NGOs and their activities. For instance, theGovernment might require NGOs to support thoseactivities it considers most relevant; as only a fewNGOs are really politically independent, it would bein a unique position to fund supporters and punishopponents through the 100 distribution of state subsidiesand grants.1001000The “tyranny of the majority” continuesDespite accomplishments at the European level, the26internal political scene remains highly strained. The0ruling coalition – the two main parties in which arethe Smer and the Slovak National Party (SNS) – continuedits “tyranny of the majority” during 2008 and1006479 100the beginning of <strong>2009</strong>. Complete disregard for thepolitical opposition was a daily occurrence (e.g., therepresentatives of Smer as well as the Government– includingIEGtheofPrimeZambiaMinister= 56,2– repeatedly emphasizedthat the opposition should not expect to discussgovernment proposals or have an opportunityto participate in any decision-making process).The Government also found a new enemy: themedia. The Prime Minister has called journalistsidiots, prostitutes and silly hyenas and has criticizedthem as former agents of the National Security ofthe Czechoslovak <strong>Social</strong>ist Republic (who are alsoamong his own supporters). The so-called “Hungariancard” was played in the campaign for the March<strong>2009</strong> presidential election, with the winner and currentPresident and his main supporters (the Smerand the SNS) issuing a statement accusing their principalopponent of being supported by members ofthe Hungarian minority. This divided Slovak societyand offended Hungarian nationals.23100100100100BBCI of CBCI of CNational reports 148 <strong>Social</strong> <strong>Watch</strong>
Populism and nationalist politics surfaced immediatelyafter the ruling coalition took office in 2006. 3Early in 2008 the Prime Minister began to mythologizeSlovakia’s history, coining the term “old Slovaks” 4while defending the historical figure of highwaymanJuraj Jánošík, dubbing him “the first socialist”. 5Another severe problem is corruption and clientelism.The ruling coalition repeatedly advocates itsright to favour its own party members or other supporters.However, several ministers as well as seniorcivil servants had to step down or were withdrawndue to pressure from international institutions (e.g.,the European Commission), the national media andthe political opposition. 6DiscriminationThe Geneva-based Centre on Housing Rights andEvictions gave a 2007 Housing Rights ViolatorAward to Slovakia (along with Burma and China),criticizing its persistent discrimination against itsRoma population, who frequently are segregatedand/or forcibly evicted from their homes. More than120,000 Roma reside in slums, lacking access tobasic services such as water and electricity. TheGovernment has done little to improve this situation,and Roma living conditions are still far belowthe European average. An especially egregious caseof abuse occurred in March <strong>2009</strong> when policemenforced six young Roma boys to undress and to hitand kiss each other. The incident was videotapedand the officers and their direct superiors werefired. The director of Charter 77, Zuzana Szatmáry,protested, however, noting that sanctions must3 Sáposová, Z and Šutaj, Š. “Národnostné menšiny” [NationalMinorities]. In M Bútora, M Kollár and G Mesežnikov (eds),Slovensko 2008. Súhrnná správa o stave spoločnosti.[Slovakia 2008. A Global <strong>Report</strong> on the State of Society].Bratislava: Inštitút pre verejné otázky, pp. 175-210.Mesežnikov, G.. “Vnútropolitický vývoj a systém politickýchstrán” [Domestic Political Development and Party System].In M Bútora, M Kollár and G Mesežnikov (eds), Slovensko2008. Súhrnná správa o stave spoločnosti [Slovakia 2008. AGlobal <strong>Report</strong> on the State of Society]. Bratislava: Inštitút preverejné otázky, pp. 17-125.4 Although there is some controversy regarding the locationof Great Moravia (the Slavic state that existed at the turn of9 th and 10 th centuries), mainstream historiography locates iton both sides of the river Morava, in the present territoriesof Slovakia and the Czech Republic, meaning its inhabitantsshould be considered the ancestors of modern Moraviansand Slovaks. The term “old-Slovaks”, however, seems moreakin to such terms as “old-Hungarians” or “old-Magyars”.5 Mesežnikov, G. “National populism in Slovakia: actors,issues, strategies”. In O Gyárfášová and G Mesežnikov,National populism in Slovakia. Bratislava: Institute for PublicAffairs, 2008. pp. 7-34.6 In one case, the Minister of the Economy, in a March 2007interview officially advocated the use of bribery to win armscontracts if the State hoped to compete with private weaponsdealers. See Sičáková-Beblavá, E.. “Slovakia”. In D Zinnbauerand R Dobson (eds), Global Corruption <strong>Report</strong> 2008. NewYork: Cambridge University Press, p. 268.CHART 1. Official bilateral Slovak development assistance in 2008Projects / Programmesmatch the severity of the offence – which theseclearly did not.The Committee on the Elimination of Discriminationagainst Women, during its 41 st session inNew York in 2008, pointed to a number of concernsas described in the last country reports for Slovakia,and advised the Government to take measures toaddress these.Development assistanceThe years 2004-07 were considered a transitionalperiod, during which the Slovak Agency for InternationalDevelopment Co-operation (Slovak Aid)approved 229 projects for almost EUR 14 million(USD 18 million). The institutionalization of SlovakAid was legally completed on 1 February 2008, whenthe Act on Official Development Assistance cameinto force.In April 2008, the “National Programme for OfficialDevelopment Assistance in 2008” was approved.Financial resources were primarily destined for Afghanistan,Belarus, Bosnia and Herzegovina, Montenegro,Kazakhstan, Kenya, Serbia and Ukraine.There was also a lump sum for several other countries(Albania, Kyrgyzstan, Macedonia, Mongolia,Mozambique, Sudan, Tajikistan and Uzbekistan).However, although official Slovak development assistancein 2008 was higher than in 2007, it is stillbelow EU standards. 7 nReferencesDebrecéniová, J, Orgonášová, M, Šnírerová, M and Wilfling, P.(<strong>2009</strong>). “L’udské práva” [Human Rights]. In M Bútora, MKollár and G Mesežnikov (eds), Slovensko 2008. Súhrnná7 Klimovský, D. “Slovakia: More development aid, thoughdiscrimination remains.” <strong>Social</strong> <strong>Watch</strong> <strong>Report</strong> 2008: Rightsis the answer, pp. 182-183.Sum(in K EUR / USD)Projects in “programme countries” (Montenegro and Serbia) 1,992 / 2,590Projects in “project countries” (Afghanistan, Belarus, Bosnia and Herzegovina,Kazakhstan, Kenya and Ukraine)1,328 / 1,726Projects in “other countries” 1,029 / 1,338Development of capacities and projects in regard to development education,public awareness and monitoring of projects232 / 302Co-funding of projects approved by the European Commission 133 / 173Micro-grants 66 / 86Sub-programme on international humanitarian aid 332 / 432Funding of the operation and activities of Slovak Aid 398 / 517Overall 5,510 / 7,164Source: Národný program oficiálnej, 2008.správa o stave spoločnosti [Slovakia 2008. A Global <strong>Report</strong>on the State of Society]. Bratislava: Inštitút pre verejnéotázky, pp. 149-174.Klimovský, D. (2008). “Slovakia: More development aid, thoughdiscrimination remains”. <strong>Social</strong> <strong>Watch</strong> <strong>Report</strong> 2008: Rightsis the answer, pp. 182-183.Mesežnikov, G. (2008). “National populism in Slovakia: actors,issues, strategies”. In O Gyárfášová and G Mesežnikov,National populism in Slovakia. Bratislava: Institute for PublicAffairs, pp. 7-34.Mesežnikov, G. (<strong>2009</strong>). “Vnútropolitický vývoj a systémpolitických strán” [Domestic Political Development andParty System]. In M Bútora, M Kollár and G Mesežnikov(eds), Slovensko 2008. Súhrnná správa o stave spoločnosti[Slovakia 2008. A Global <strong>Report</strong> on the State of Society].Bratislava: Inštitút pre verejné otázky, pp. 17-125.Národný program oficiálnej rozvojovej pomoci na rok 2008.[National Programme of Official Development Aid for theYear 2008. Available from: .Nicholson, T. (<strong>2009</strong>). “Polícia mučila rómskych chlapcov”[Police Tortured the Young Roma Boys] SME. Availablefrom: .Pilát, J, Timcsák, M and Valko, E. (<strong>2009</strong>). “Právny štát, tvorbaa aplikácia práva” [Legally Consistent State, Making andApplication of Law]. In M Bútora, M Kollár and G Mesežnikov(eds), Slovensko 2008. Súhrnná správa o stave spoločnosti.[Slovakia 2008. A Global <strong>Report</strong> on the State of Society].Bratislava: Inštitút pre verejné otázky, pp. 127-148.Pokorný, J (<strong>2009</strong>). Global crisis – a traumatizing factor or anopportunity for Slovakia?. Available from: .Sáposová, Z and Šutaj, Š. (<strong>2009</strong>). “Národnostné menšiny”[National Minorities]. In M Bútora, M Kollár and GMesežnikov (eds), Slovensko 2008. Súhrnná správa o stavespoločnosti. [Slovakia 2008. A Global <strong>Report</strong> on the State ofSociety]. Bratislava: Inštitút pre verejné otázky, pp. 175-210.Sičáková-Beblavá, E. (2008). “Slovakia”. In D Zinnbauer and RDobson (eds), Global Corruption <strong>Report</strong> 2008. New York:Cambridge University Press, pp. 267-271.<strong>Social</strong> <strong>Watch</strong> 149 Slovakia
90100sloveniaChallenges for an emerging civil society0NO VA 0,0The effects of the global crisis are beginning19to be felt in this export-oriented country. They translate9457into rising food and energy prices, unemployment and poverty, and 100require a systemic response. 74 100Thiscreates an opportunity to focus on human rights and environmental concerns, as well as on civil societyissues that have been gaining momentum nationally. Slovenians therefore need to demand more fromIEG of Burma = 0 BCI of Nepal = 58,4IEG of Nepal = 51,2their Government than a mere boosting of the market.100 100 100100 100100062100230100HUMANITAS Društvo za človekove pravice in človekuprijazne dejavnosti –Society for Human Rights and 100 Supportive ActionManca PoglajenRene Suša42Basic Capabilities Index (BCI)100 99BCI = 99+ GEI = 65Children reaching5th gradeGender Equity Index (GEI)10043EmpowermentWarnings about a potential financial and economic0crisis reached Slovenia in the second half of 2008,00together with news of the collapse of important financialinstitutions, especially in the United States.99100100100 100 67100100 100100 7182 100The effects on the Slovenian export-oriented 97econo-Births attended bymy became apparent at the beginning of <strong>2009</strong>, first skilled health personnelSurvival up to 5 Economic activityEducationamong those working IEG in the of Slovakia industrial = sector 68,8 butBCI of Eslovenia = 99,5IEG of Slovenia = 65,1soon in all sectors as reduced purchasing power anddifficulty in accessing credit led to lower demand intrades and services.In fact, global food prices, degradation of theenvironment and climate change, as well as politicalbickering over access to energy 100 were already leavingtheir mark in Slovenia before this. The average inflationrate in 2008, following a trend from 2007, was5.7%. Food and beverages went up 3.8% while gas,energy and oil increased by more than 20%. 1 Althoughthe changes in prices affected the whole population,0 6people with minimal income were hurt the most.Unemployment49100 100The trends in unemployment show the most detrimentaland long-lasting effect of the crisis. Unemploymenthas risen in every region, primarily amongpeople who were on IEG short-term of Yemen = contracts. 30 Datafrom February <strong>2009</strong> show very negative tendencies:77,182 people were registered at the EmploymentService, which is 4.4% more than in January 2008and 15.2% more than in February 2008. It shouldbe noted, however, that the actual number of unemployedpeople is substantially larger, since in the past100few years tens of thousands have been erased fromthe statistics due to “breach of obligations” (usuallyfailure to report or refusing work beneath their levelof qualifications). 227Even more revealing are 0 the figures for newlyregistered employment seekers. In the first two611 Statistical 100Office of the Republic of Slovenia. “Consumer 76 100price indices, Slovenia, December 2008”. (30 December2008). Available from: . IEG de Senegal = 54,92 See “Slovenia: On the erased side of the Alps”, <strong>Social</strong><strong>Watch</strong> <strong>Report</strong> 2008. Available at .months of <strong>2009</strong> there were 21,052 new employmentseekers – a rise of 83% compared to the same periodin 2008. 3 Almost half of them were workers whoseshort-term contracts had not been extended. Therehas also been a staggering rise in the number of permanentlyunemployed 100 – by almost 150% comparedto the same period in 2008 – 89as well as those losingjobs due to bankruptcy, whose number has morethan doubled (219%). 4 On average the individualsregistered at the Employment Service have beenjobless for almost 22 months.A feeble response43Attempts to combat unemployment have been inadequate.The Government passed a law on 82partial subventionof full-time employment in January <strong>2009</strong>.The total sum for subventions is EUR 200 million(USD 261 million), BCI of Zambia and employers = 71,3 may apply forEUR 60 to 120 (about USD 78 to 157) per workerper month, depending on whether they shorten theirworking hours to 36 or 32 hours a week. However,experts, employers and trade unions all consider thismeasure insufficient.For example, the subventions are too low tohelp those companies facing serious liquidity problemsor the inability to maintain previous levels ofproduction due to cancelled orders. They are alsolimited to a maximum of six months, although estimatessuggest that the need will last much longerthan that. Moreover, no subsidies are provided either3490100 100 1008810003 Employment office of Slovenia. “Februarja registriranih77.182 oseb”. March 28 <strong>2009</strong>. Available at: .4 Employment office of Slovenia. “Zavod sklenil pogodboo subvencioniranju z 41 podjetji”. 30 March <strong>2009</strong>. See:.for the self-employed, who represent more than 10%of the working population, or for those who werealready working part time such as people with disabilities.Another drawback is that the law does notset eligibility criteria based on business records, socompanies not affected 100by the crisis may also bereceiving subsidies.Trade unions warn against possible abuses byemployers, such as proposing annexes to workingagreements that voluntarily lower their employees’26wages, which means that they are still eligible for0subsidies but can also reduce payment to workersdue to shorter working hours. 5 Other abuses includeshortening the work time but keeping the workload1006479 100the same – workers are threatened and have to workunpaid overtime hours or with greater intensity andshorter breaks.The Employment IEG of Zambia Service = has 56,2 published two additionalpublic tenders that provide subsidies for fullandpart-time employment in <strong>2009</strong> and 2010. Bothare co-financed by the European Structural Funds.Extra points are awarded to applicants who wish tohire women or people with disabilities, and a higheramount can be claimed by those hiring persons whohave been registered as unemployed for more than24 months. An estimated 3,850 people should be employedfull-time and another 400 part-time throughthese tenders. An additional amount has been madeavailable for co-financing employers’ professionaltraining programmes for employees in order to increaseproductivity and workers’ employability.While the subsidies show the Government’s concernwith preventing massive lay-offs, it is also evi-5 KS90. “Subvencioniranje delovnega časa, vloga in ukrepisindikata”. 25 March <strong>2009</strong>. See:.100100BCI of100BCI ofNational reports 150 <strong>Social</strong> <strong>Watch</strong>
dent that all these measures have a very narrow range,in terms of both funds and timeframe. They do notdemonstrate long-term planning or address structuralproblems but are merely a counter measure to the currentsituation. Permanent employment is not a requirementin any of them. This is very much in accordancewith employers’ demand for “greater flexibility” in thelabour market – meaning more and more people employedon short-term contracts. This holds true alsofor applicants for state subsidies, who may lay-off theiremployees as soon as the subsidy runs out.Shifting headlinesWith the decline in the economy, there has been asubstantial shift in media attention. While issues ofmigrant workers (especially in construction) andthe exploitation they faced (no contracts, inappropriateworking conditions, low wages, racism) werefeatured in the media towards the end of 2008, theirsituation and the problems they face now there is littledemand for their services have been swept underthe rug. Headlines instead draw attention to financialdifficulties in Slovenia’s major companies.Also, the media are used to make draconianmeasures more acceptable. For instance, they highlightedthe announcement by the general director ofthe Chamber for Industry and Commerce that 30,000to 50,000 people would lose their jobs in <strong>2009</strong>: thisdoes not help the workers but just legitimizes furtherlay-offs. The leading business journal, Finance, gavea similar estimate of 46,000 redundant workers. Thenumbers from the Employment Service are muchlower, however: approximately 10,000 new employmentseekers by the end of <strong>2009</strong>.Poverty and social changesThe Human Rights Ombudsman addresses povertyas a problem needing to be urgently addressed,since it is a multi-layered phenomenon that deeplyaffects human dignity. Although Slovenia declaresin its Constitution that it is a “social state”, more andmore Slovenians are facing poverty. According toofficial data, 11.5% of the population lives below theEUR 500 (about USD 653) poverty threshold. 6 Thesestatistics do not take into account the fact that thepoor often experience human rights violations in theareas of social care, health and education.There is increasing poverty both among theelderly who live on small pensions and among theyouth. In fact, more and more young people are beingraised with minimal opportunities for development,few incentives, low self-esteem, difficultiesintegrating into society and few job opportunities.Moreover, it is getting more and more difficult foryoung adults to start their own families, as theyare unable to enter the housing market. A wholesub-class of people who feel unhappy, cheated anduseless and who resent society is being created.New systemic approaches are needed: financial aidis not enough; it is mandatory to reassert valuessuch as solidarity and community.Human rights and global issuesLately, human rights have been gaining centre stagein the country. The new coalition Government,elected in 2008, has declared that respect for humanrights, democracy, the rule of law, social protectionand an open society are basic values. It also committeditself to change in light of the new challengesposed by global developments.This is partly due to the impetus gained in 2008by NGOs and related organizations 7 (together withattention to issues such as climate change, theMillennium Development Goals, the relevance ofcivil society and respect of human rights, as well asaccountability of governmental institutions) whenSlovenia held the presidency of the EU. Raisingmore awareness about these issues, both amongthe public and civil servants, and the creation of linksand forums where initiatives can be presented to theGovernment are needed to have a lasting effect.Discrimination, disrespect of ConstitutionalCourt rulings, slow judicial procedures, children’srights, social security and the pension and healthsystems are among the most common topics incomplaints filed at the human rights bodies in Slovenia.According to the Human Rights Ombudsmanthe values that should guide society, especially intimes of crisis, are human dignity, mutual respect,trust, honesty and willingness to help the vulnerable.8An open questionHowever, the question remains whether Slovenesociety, which in the past ignored human rights andenvironmental issues, will demand that their Governmentadopt a rights-based approach and effectivelyprotect them or whether the pressing economic issueswill take precedence. One example is the caseof the so-called “erased” – non-ethnic Slovenes whowere denied legal status after independence in 1991.The issue should have been settled, but successivegovernments have not respected the ruling of theConstitutional Court. Right-wing political parties opposethis ruling in fear of having to bestow largeamounts of compensation on the victims.In terms of the environment, wind power stationsin protected areas, gas terminals in the seaand another coal-based power station are all beingplanned. If the responses to the current and manifoldcrises focus on reviving the economy and consumerism,issues such as environmental policy willcontinue to give way to plans for keeping jobs andboosting the market. n6 Statistical Office of the Republic of Slovenia. “Kazalcidohodka in revščine”. 27 March 2008. See:.7 Although there is no legal definition of an NGO, in 2008 theseorganizations and the topics they advocate for gained groundthanks to Slovenia’s EU presidency.8 Human Rights Ombudsman. Thirteenth Regular Annual<strong>Report</strong> of the Human Rights Ombudsman of the Republicof Slovenia for the year 2007 (Abbreviated version), 2008.Available from: .<strong>Social</strong> <strong>Watch</strong> 151 Slovenia
somalia100A defenceless country02310008310009The calamitous conditions in this 35war-torn country are being exacerbated by the global systemic crisis.47With 74the means of production, 100 finance and the 81provision 100 of basic 100services in the hands of 77 a few, 100 thecost of living has soared. Currency devaluation has been coupled with hyper-inflation and increasedIEG of Nepal food = 51,2prices; unaffordable energy is further limiting the delivery of services such as education, healthICB de Nigeria = 66,3IEG of Niger = 44,4and sanitation. Moreover environmental degradation is reducing the availability of water, grazing andbio-diversity, thus negatively affecting livelihoods.94 57100100 100 100100Somali Organization for Community Development ActivitiesHousing the Secretariat of SW Somalia CoalitionAli Mahamoud Osoble 100network of clan-based courts as a political platform.Further fighting, however, took place between theIslamists and other forces backed by Ethiopia beforethe latter pulled its troops out in January <strong>2009</strong> and themoderate Islamist Sheikh Sharif Sheikh Ahmad wasinstalled as the new president. 100 Despite the presence ofLivestock has traditionally been the most importantsector for income generation in Somalia, while agriculturehas provided staple and cash crops includingsorghum, maize, beans, sesame and diverse fruitssuch as bananas and watermelons. However, many* “Children reaching…” estimated following procedure “2” inp. 209.** There are no available data on GEI.1 FSAU (Food Security Analysis Unit – Somalia). “2008/09 Post-Deyr Analysis.” Technical Series <strong>Report</strong> No. V, 17. <strong>2009</strong>. Availableat: .Basic Capabilities Index (BCI)BCI = 48*Children reaching5th gradeSomalia is the only country in 43 Africa, if not the world,where a central authority is unable to provide even25basic public services, whether in the area of health,00education, sanitation or security. For two decadesthe nation has been experiencing clan warfare led by1003386Mogadishu-based warlords whose militias have been100 100 7182 100100 100engaged in killing mainly innocent, unarmed civilians.In 2006 they were defeated by the Union of the skilled health personnelSurvival up to 5Births attended byIslamic Courts, made up IEG of of Islamists Slovenia who = 65,1 had used aBCI of Somalia = 47,8farmers have lost productive assets, including livestockand irrigation equipment, to invading militias orhave been expelled from their farms. In addition, agriculturalproduction has been declining as a result ofdrought and low rainfall in most areas of the country.At the same time, 100 there have been rising maritimea peacekeeping mission from the African Union, there freight charges on imported goods due to the hostilecontinues to be ongoing conflict caused by power actions of Somali pirates bent on hijacking ships. Thestruggles between political and religious groups and prices of basic commodities, including food, wentresource-based clashes between clans. 1up by between 200% and 400% in many urban marketsin the first six months of 2008. 2 The effects of26The civil war ruined the country and affected its0people economically, socially, culturally and politically.In the absence of an effective central govern-insecurity, have lowered the living standards of thedecreased cereal production, NO 0 VAcoupled with generalment, many services are now being provided by the majority of the population. Due to the humanitarian100 1006479 100100 100business sector at high cost. The global crisis is also crisis, in 2008 more than 3.2 million Somalis (that is,affecting food security, energy, water and climate in over 40% of the population) became totally dependanton food aid and emergency services provided bySomalia, deepening insecurity and instability. As inthe rest of the IEG Horn of of Zambia Africa, = food 56,2shortages have international BCI of agencies. Cisjordania These y Gaza agencies, o Palestina however, = are 0been worsened by rising commodity prices, conflict facing extreme difficulties in trying to get food into theand piracy (limiting the movement of people and country; the task has been hampered by the violencegoods) and imperilled aid operations. Increased food that internally displaced a million Somalis in just 18prices have also been blamed on rising fuel costs, months (from April 2007 to September 2008).lower agricultural production and weather shocks. Up to 70% of rural people in the south are threat-100Food crisis100ened by food shortages, and about 36% of childrenare underweight, with one in six suffering from acutemalnutrition. The number of malnourished childrennationally is currently estimated to be 200,000, of whom60,000 are severely malnourished and could die if treat-NO VAment is not made available. 0 In 2008, UNICEF begansupplying supplementary feeding to 44,000 childrenunder five years old along the 30 km Mogadishu-Afgoye100 100corridor and in central and southern Somalia. 32 Ibid.BCI of Cisjordania y Gaza o Palestina = 03 UNICEF. “UNICEF feeds 44,000 children in Somalia.” PressCentre, Nairobi, Kenya, 14 May 2008. Available at: .Spiralling inflationAs there is no central bank, 100 all currency circulating inthe market was either printed before the Government74collapsed or is being produced by business peoplewith links to local authorities or former warlords;thus, inflation has spun out of control. In 1991 theexchange rate for one US dollar was 2,000 shillings;0in <strong>2009</strong> it is 35,000 shillings. Dishonest traders havepushed inflation to its highest level during 18 chaoticyears by refusing 58 to accept the various denominationsof the Somali shilling and only taking 98 US dol-100 100lars. Demonstrators in Mogadishu denounced thetraders and were IEG quoted of Spain as = saying: 76,9 “We have ourown currency, if that currency is rejected, it meansthat we have no way to live.” 4Water crisisNorthern and central Somalia suffer from acute watershortages. Even important 100 provincial capitals likeHargeisa, Dusamareb and Garowe face this situation.Southern Somalia is generally greener becausethe Shabelle and Juba Rivers flow down from theEthiopian highlands. Nevertheless, this area alsobecomes semi-arid when droughts affect these0 s/dsources. According to Sidow Ibrahim Addou fromthe USAID-funded Famine 15 Early Warning SystemsNetwork, water shortages in the Gedo region mean100 100the disappearance of virtually all pastureland. 995In the north-eastern regions, where the majorityof people depend on animal rearing and there are norivers, Cisjordania environmental o Palestina changes – S/D especially (español) La Niña,which lowers ocean surface temperatures causinglower rainfall – have led to tremendous losses of cattle.In 2007, for instance, citizens fled areas such asHamure village, 280 km east of Bosasso, because ofwater scarcity. The wells there have dried up and no100one maintains the boreholes, a situation made worseby the lack of a functioning central government andthe weakness of regional authorities. As the land isbecoming drier and rainfall has shrunk from its averageof 250 mm per year, potential evaporation soarsabove 2,000 mm per year. 0 n/dIn Somaliland, comprising 15 the north-westernterritories, the water crisis is even worse. Entire100 100994 Abdinur, M.H. “Somalis rally against rising food prices,inflation.” Agence France Presse (AFP), 6 May 2008.5 IRIN Cisjordania (Integrated Regional o Palestina Information N/D Networks). (inglés) “Somalia:Severe food and water crisis in Gedo”. UN Office for theCoordination of Humanitarian Affairs, 5 April 2006. Availableat: .9910083100BCI of RInformes nacionales 152 <strong>Social</strong> <strong>Watch</strong>
villages are being abandoned as adverse climatechange is reducing water sources instead of replenishingthem.Health crisisThe movement of populations from drought-affectedareas to camps for internally displaced persons(IDPs) is increasing the risk of epidemics such ascholera, diarrhoea and other water-borne diseasesand of the spread of polio. 6 Somalia’s lack of a basicfunctioning health infrastructure that could adequatelyrespond to these emergencies worsens theplight of those affected, especially women, childrenand the elderly.The infant mortality rate is estimated to be 156per 1,000, an upsurge from earlier UN records of132/1,000. The maternal mortality rate has alsogone up to 1,600 per 100,000 live births, from earlierUNICEF records of 1,400/100,000. AIDS, malaria,tuberculosis and other diseases continue to take aheavy toll.Refugees and displaced peopleMore than 60,000 Somalis crossed the border intoKenya in January <strong>2009</strong> alone, and the Dhadhabcamps in north-eastern Kenya are estimated to hold230,000 refugees. Some 850,000 fled Mogadishu’sviolence in 2007/2008 while 400,000 of those internallydisplaced, previously in Mogadishu’s IDPcamps, fled to the outskirts of the city seeking safety.Another 50,000 persons were displaced as a resultof the 2008 border dispute between Somaliland andPuntland; they remain in camps in Ethiopia, Somalilandand Puntland.Unfortunately, the assistance provided by bothinternational and local NGOs has been hindered bythe seemingly endless insecurity, especially in thesouthern and central regions. Two World Food ProgrammeSomalia staff members were deliberatelytargeted and murdered in January <strong>2009</strong>, while 34 aidworkers were killed in 2008; other aid workers havebeen kidnapped and remain in captivity. There continueto be roadblocks set up at strategic positions tohijack supplies, and piracy against vessels carryinghumanitarian goods.Fuel crisisSomalia is a net fuel importer. Any fluctuation in oilprices therefore directly affects the country. Fuelnearly tripled in price during one two-week period inlate 2007 and early 2008, from USD 0.40 per litre toUSD 1.10. In some cases, the cost of transportationhas quadrupled, leaving many people cut off. Othergoods such as imported foodstuffs and medicines,as well as services such as education and health,have also been affected. In a country where electricityis mostly generated from diesel-fuelled generators,oil price increases have affected the generationcompanies. The additional cost has been transferredto the sectors that need electricity most, and thepublic bears the brunt of the crisis.The lack of a centrally functioning governmentor bilateral relations with energy-producing countrieshas prevented the Somali people from buyingoil more cheaply from countries in the Middle East,or purchasing electric energy from countries in theHorn of Africa such as Uganda and Ethiopia that havehigh potential for hydroelectric generation.Environmental crisisDeforestation is a major cause of lower rainfall anddrought, which in turn lead to famine. Trees arecut, forests are cleared and branches and trunksare burnt for the production of charcoal, a largequantity of which is exported to countries in theGulf States, with Saudi Arabia and the United ArabEmirates being the main buyers. 7 It is estimatedthat boats carry abroad on average the equivalentin charcoal of 10,000 trees. This trade in Somalia’s‘black gold’ causes an environmental disaster. Astraders demand more and more charcoal, the lossof trees leads to scarcity of water, lower rainfalls andextremely high evaporation.Unfortunately, droughts are often followed bydevastating flooding of the rivers that flow from theEthiopian highlands. This has become a recurrentcycle.RecommendationsCivil society groups, from community-based organizationsto national forums, are advocating for thecauses of the disasters to be addressed. Governmentministries and empowered bodies are badlyneeded to combat deforestation. Action against environmentalabuse will limit its adverse effects onrainfall, the soil’s capacity to hold water, the localclimate, habitats for animal species and bio-diversityin general. nReferencesAbdinur, M.H. (2008). “Somalis rally against rising food prices,inflation.” Agence France Presse (AFP), 6 May.FSAU (Food Security Analysis Unit – Somalia) (<strong>2009</strong>). “2008/09Post-Deyr Analysis.” Technical Series <strong>Report</strong> No. V, 17.http://www.fsausomali.org/fileadmin/uploads/1481.pdfIRIN (Integrated Regional Information Networks) (2006).“Somalia: Severe food and water crisis in Gedo”. UN Officefor the Coordination of Humanitarian Affairs, 5 April. http://www.irinnews.org/<strong>Report</strong>.aspx?<strong>Report</strong>Id=58667Mohamed, A.E. (2001). “Somalia’s Degrading Environment:Causes and Effects of Deforestation and Hazardous WasteDumping in Somalia”. Essay prepared for a PhD course onEnvironmental Systems Analysis and Management. KTH,Sweden. Available at http://www.mbali.info/doc331.htmSomalia Business Review. Vol. 1, Issue 2, October-December2008.UN Somalia Country Brief, September 2008.UNICEF (2008). “UNICEF feeds 44,000 children in Somalia.”Press Centre, Nairobi, Kenya, 14 May. Available at http://www.unicef.org/infobycountry/media_43930.htmlWHO (World Health Organization) (2006). “Drought WorsensHealth Crisis in Somalia.” Nairobi: WHO, 31 March. http://www.emro.who.int/somalia/pdf/PressRelease_31March06.pdf6 WHO (World Health Organization). “Drought WorsensHealth Crisis in Somalia.” Nairobi: WHO, 31 March2006. Available at: .7 Mohamed, A.E. “Somalia’s Degrading Environment:Causes and Effects of Deforestation and Hazardous WasteDumping in Somalia”. Essay prepared for a PhD course onEnvironmental Systems Analysis and Management. KTH,Sweden 2001. Available at: .<strong>Social</strong> <strong>Watch</strong> 153 Somalia
spain100Not tackling the basic issues10088100470900100The shortcomings in the Spanish economy, adjustments to which were too long delayed, have been471009856laid bare. 77 Faced with spiralling 100 unemployment and 100 the collapse of 100credit, the Government stands 100 as98guarantor but fails to tackle basic issues such as job insecurity, access to housing and the extensionof social rights. Similarly with international aid: while Spain consolidates its role as a sympatheticIEG of Niger = 44,4 BCI of Paraguay = 95,3IEG of Paraguay = 66,8country, essential issues such as global warming and agricultural subsidies are not given the attentionthey deserve.100 1001007Plataforma 2015 y másPablo José Martínez OsésIntermon Oxfam 1Deborah Itriago10074Basic Capabilities Index (BCI)100 100BCI = 99+* GEI = 77Children reaching5th gradeGender Equity Index (GEI)10074Empowerment6The crisis in Spain has its own distinct aspects, suggestingthat “failures” of the international financial0system or bad practices are not its only causes. Justas major US financial companies were collapsing,President José Luis 58Rodríguez Zapatero was in New100 100 100100 100York at the September 2008 UN General Assembly 98Births attended bymeeting, declaring his confidence in the robustness skilled health personnelof the Spanish financial IEG of system. Spain = Nevertheless, 76,9 theGovernment rushed to grant a Treasury guaranteeof EUR 30 billion to cover its risks. This figure representsover EUR 650 per person, while the countryspends EUR 30 per person on development aid.Weathering the storm takes precedence over seekingopportunities in the crisis. 100Job destructionCurrent figures for job losses are staggering. BetweenJanuary 2008 and January <strong>2009</strong> unemploymentrose by more than a million to over 3.5 million0 s/dpeople − 14% of the economically active populationand almost double the European 15 average. Accordingto data published by the <strong>Social</strong> Security office, more100100 100than 840,000 jobs disappeared in 2008 and the 99 trendshows no signs of diminishing.The Government has sought to mitigate thelestina = 0 drop in purchasing Cisjordania power o Palestina through S/D tax (español) reductionsfor workers and simplified procedures for creatingnew economic activities. It has also instigated reductionsin default interest rates for non- or late paymentin order to help save companies from financialasphyxiation. These measures are intended, at most,100to enable workers to hold out for a while, in the hopethat economic activity and confidence in the marketswill recover. It is worth noting that the Governmenthas so far resisted the usual opportunistic bids byemployers to demand greater job insecurity throughflexibilization and cheaper 0redundancies n/d as a prerequisitefor creating more jobs.100100 10099* “Births attended…” estimated following procedure “1” inp. 209.lestina = 0 Cisjordania o Palestina N/D (inglés)1 Intermon Oxfam’s contribution to this report has beenundertaken by its research team, led by Deborah Itriago, andis limited to the last two sections.15990100Survival up to 5BCI of España = 99,6The collapse of creditDespite the EU base interest rate (Euribor) havingalready fallen to a historic low, financial bodies seemunwilling to take on new risks and the availabilityof credit remains scarce. Clearly the EUR 30 billionapproved by the Government and other public guar-100antees have so far failed to get the financial sectorto provide credit and, with it, 66the money supply thatis indispensable for reviving economic activity. Furthermore,in December 2008, according to data fromthe Bank of Spain, the family credits portfolio fell for0the first time in eight years, in contrast to the growthshown by the portfolio of credits approved for general83government. This apparent paradox is explained 80 by100 100financial entities’ predilection for public guaranteeswhen selecting risks and by the enormous fundingdifficulties faced by local government bodies.The BCI Government of Rep. Dem. has del therefore Congo prioritized = 76,3 actingas public guarantor in order to maintain confidencein the balance and stability of the financial system,on which so many citizens’ savings and depositsdepend. But the issue demands much more. Whilefinancial bodies continue submitting quarterly resultsshowing spectacular profits, the unstoppabledevaluation of financial and mortgage assets hasmeant that the general public has so far not been ableto enjoy the benefits of this stability. <strong>Social</strong> movements,as well as academic and political sectors,are beginning to voice the need for public financialbodies that would prioritize public service functionsrather than profit margins.Delay in adjustmentThe alacrity with which the Government has respondedto the needs of the banking and financesector is in sharp contrast to the tardy and limited attentionpaid to problems of the real economy, which058100 10098Economic activityEducationIEG of Spain = 76,9is now seeing an abrupt process of adjustment whichhad been long overdue when the crisis broke.The three main problems, frequently cited inanalyses during the previous growth cycle, were: thesheer magnitude of the “property bubble” and therelative importance of 100 the construction industry toGDP and employment growth; excessive borrowingby individuals and businesses; and low rates of nationalcompetitiveness and savings. In the previousperiod, little was done to address needed adjustmentprocesses, due perhaps 13to a reluctance to bear0the social and political costs. The global financialcrisis has brought together and accelerated theseprocesses, severely 57 affecting employment 65 levels100 100and the viability of businesses with high short-termcredit needs.In response, the Government has adopted atwin approach. IEG of It Rep. remains Dem. firm del in Congo resisting = 45.1 lobbyingby conservative sectors and employers in favourof tax rebates for large revenues, lower companytaxes and more flexible dismissal requirements,while at the same time approving social measuresaimed primarily at the unemployed and low-incomeand high-risk groups. However, this dual reaction −aimed at avoiding any damage to the system of socialguarantees (so that it can act as a shock absorber inthe crisis) − does nothing to reverse the trends andenable the recovery of credit, employment or theprice index.It would appear that the Government is relyingon being able to contain the pressures until confidencein international financial markets has recoveredand a new growth cycle is underway. However, itis not just a question of knowing when recovery willoccur or how large a shortfall can be tolerated in thepublic accounts used to fund the measures (thesehave already used up the surplus accumulated over100National reports 154 <strong>Social</strong> <strong>Watch</strong>
previous years, and the EU has issued its first warnings).It is also a case of dealing with basic problemsthat beset the Spanish economy, related mainly to jobinsecurity, access to housing and the extension of basicsocial rights to a large section of the population.Spain abroadThe year <strong>2009</strong> is one of continued discussion ofdevelopment cooperation, including questions onwhat form cooperation in the struggle against povertyshould take. During 2007 and 2008 Spain was a supportivecountry not only in terms of management ofthe global crisis affecting developing countries in particular,but also more generally in its commitments tolevels of Official Development Assistance (ODA).ODA: Between 2004 and 2007 Spanish ODA increasedby more than 20% (in current values). Despitekeeping its international cooperation budget for <strong>2009</strong>at the same level as in 2008 (EUR 5 billion), Spain isstill one of the most generous donor countries. InDecember 2007, the State Pact against Poverty wassigned, under which all Spanish political parties undertaketo comply with the international commitmentto channel 0.7% of GDP into ODA from 2012.Humanitarian action: 2008 saw the culminationof a series of processes that will help consolidateSpain as a global actor in humanitarian efforts.An Office for Humanitarian Action became operationalwithin the Spanish Agency for InternationalDevelopment Cooperation (AECID), strengtheninginstitutional management capacity in dealing withhumanitarian crises, and enabling the country to ignoremedia pressure in deciding whether to becomeinvolved with specific humanitarian crises.Food crisis: At the FAO summit in June 2008,Spain made a commitment to contribute EUR 500million in response to this crisis. In January <strong>2009</strong>Spain and the UN jointly organized the High LevelMeeting on Food Security for All (RANSA) in Madrid,designed to strengthen coordination among thevarious institutions involved in this area (FAO, WorldFood Programme, International Fund for AgriculturalDevelopment, World Bank, IMF) and advancing theGlobal Partnership for Agriculture and Food Safety(GPAFS) initiative. At this meeting President RodríguezZapatero committed a further EUR 1 billion to thisend, to be paid over five years. The EUR 1.5 billiontotal does not represent any additional resources butrather a commitment to assign part of the previousODA budget. What is remarkable is that the negativeimpact of EU agricultural policies on world food securityis not questioned as part of this initiative, puttingits chances of success seriously at risk.Within the framework of the G20 and in line withthe foregoing, as part of the package of measures ithas proposed in order to manage the financial crisis,Spain supports the idea that multilateral developmentbanks increase their net flows towards low- andaverage-income countries in times of low growth.Solidarity is not enoughAlthough all these initiatives demonstrate solidarity,they contrast with Spain’s position on aspects thatare crucial to developing countries, such as trade,agriculture, international migration and climatechange.Trade: One of the greatest risks in the internationalresponse to the current financial crisis is thatcountries unilaterally adopt commercial protectionismas a way out. Unlike other EU countries, Spainhas always sided with those less inclined to be flexiblein their position and include development as acore element of trade negotiations. At the meetingof the G20 in late 2008, countries were called on torefrain from increasing applied tariffs for at least ayear, while nothing was said about the use of statesubsidies and rescue plans. This meant calling intoquestion the only means of protection most developingcountries can afford while allowing those thatare out of their reach (and that, additionally, can bedevastating for their agriculture).Agriculture: Of equal concern is the inconsistencybetween the global initiatives supported bySpain and the one the Department of Rural Affairsaspires to lead, pushing for a European platform toblock the necessary Common Agricultural Policy(CAP) reforms. This initiative has been presentedas one that should remain at the forefront during theSpanish presidency of the EU, ignoring the fact thatthe distorting impact of rich countries’ agriculturalpolicies is one of the causes of the erosion of agriculturein poor countries and of the crisis in foodprices.Immigration: The international economic crisishas hit millions of migrants hard as they are immediatelythreatened by unemployment (particularly inthe construction and hotel industries), reducing theremittances these workers send to their families. 2The Government’s reaction has been disappointing:one measure involves repatriation incentives, whichhas met with limited success because migrantswho have overcome the many barriers to obtainingSpanish residency will not happily give up this right. 3In addition, regular immigration quotas have beendrastically cut and efforts intensified to detect, detainand deport illegal workers. The Government passedthe new Law of Asylum and Refuge in December2008. Following a European Directive approvedalong similar lines in July 2008, this “will reinforcethe worrying advance of unsympathetic − even xenophobic− policies in Europe, which is more concerned2 In Ecuador and Mexico, for example, the fall in 2008 isestimated to be around 20%.3 The scheme offers returning migrants the possibility ofadvance payment of cumulative unemployment benefits intheir country of origin with support to any business initiativesthey might undertake. In February <strong>2009</strong> only some 2,000migrants (of a total of around 200,000 unemployed noncommunityforeigners) had signed up.about the interests of the States than about the rightto asylum”, according to the Spanish Commissionfor Refugee Assistance.Climate change: At the end of <strong>2009</strong> a globalagreement on climate must be reached to succeedthe current Kyoto Protocol. This requires consensuson the sharing of efforts to reduce emissions andthe funding of adaptations in developing countries.Spain contributes to existing international funds,although − as with the rest of the international community− this falls far short of the estimated USD 50billion a year that is needed. 4 In addition, Spain isreluctant to make new financial commitments formitigation and adaptation in developing countries.Within the framework of the EU, the financial crisis isused as an excuse to dilute the already limited fundingprogrammes. No agreement has been reachedon innovative mechanisms for raising the necessaryfunds, such as auctioning emissions rights, nor oncommitments countries are willing to make in thecontext of a global agreement. n4 Oxfam. “Credibility Crunch: Food, Poverty, and ClimateChange: An Agenda for Rich-Country Leaders”. OxfamBriefing Paper 113. June 2008. Available from:.<strong>Social</strong> <strong>Watch</strong> 155 Spain
100tanzania1009347Poverty reduction is endangered10047000Although its financial system has not yet been severely affected by the global economic crisis, the985698100 100 decrease in 100 exports, remittances 100 73 and aid will imperil Tanzania’s progress63100100 in eradicating poverty. 100 Basic9899services, such as the provision of clean water, sanitation and health, must be extended, as well as creditand instruction to farmers. For all this, it is essential that aid is not discontinued.3 IEG of Paraguay = 66,8 BCI of Perú = 87,8IEG of Peru = 69,710010010001006,3SAHRiNGON Tanzania ChapterArmando SwenyaMartinaM. Kabisama100Kambibi KamgishaBasic Capabilities Index (BCI)100BCI = 7387 Children reaching5th gradeGEI = 72Gender Equity Index (GEI)EmpowermentThe Tanzanian economy depends mainly on agriculture,which accounts for about 42% of GDP. 1 Average0annual economic growth since 2000 has been 5.8%, 200up from 3% in the late 1990s. Although the countryhas undergone 589743 88significant macroeconomic and100 100100 100100 1001008481structural reforms, including privatization of 98publicBirths attended bycompanies, market liberalization and investments in skilled health personnelSurvival up to 5 Economic activityEducationkey economic sectors such IEG of as Spain mining, = agriculture, 76,9 BCI of Tanzanía = 72,7IEG of Tanzania = 71,9tourism and telecom industries, it has a long way to goregarding poverty reduction. More than one third ofthe population still lives on less than USD 1 per day. 3Economic growth has not yet adequately translatedinto increased per capita income. The budgetallocation for development 100 programmes, includingsocial services such as health, education andinfrastructure, is minimal compared to recurrentexpenditures such as salaries of public officials andmanagement of government offices. In addition, Tanzaniais heavily dependent on aid, 13 which contributed0approximately 42% of the national budget in 2007.Impacts of the global57crisis65100 100Although the world economic crisis has had animpact on Tanzania, financial institutions have notbeen affected so far. 4 There are several reasonsfor this: the IEG country of Rep. has Dem. a low del level Congo of integration = 45.1into international financial markets; foreign assetscover just 11% of total commercial bank assets; andbanks are licensed, regulated and supervised undernational laws – i.e., not operated as branches ofparent banks abroad but as independent subsidiaries.In addition, the country had a limited amount offoreign borrowing and no securities from the internationalbanks that were affected by the crisis. Theinterbank cash market continues to be liquid and1 Earth Trends. Economic Indicators Survey, Earth TrendsCountry Profile. Available from: .2 SAHRiNGON–Tanzania Chapter. NGO Shadow <strong>Report</strong> to theAfrican Commission on Human and Peoples’ Rights.3 Ministry of Finance (various years). Government BudgetBooks.4 Ndulu, B. “The Global Financial and Economic Crisis:Challenges and Responses”. PowerPoint presentation by theGovernor of the Bank of Tanzania, March <strong>2009</strong>.74stable, and lending to the private sector increasedby 47% in 2008. 5However, the Tanzanian economy faces a bigchallenge since the income from key exports has decreaseddue to declining demand and lower prices. Forexample, in January <strong>2009</strong>, 138,011 bales of cotton (aquarter of the total output for the 2008/09 season)were piled up in ginneries due to lack of orders. InJune 2008 it was expected that cotton farmers wouldearn TZS 300 (USD 0.23) per kg, but prices in theworld market fell as low as TZS 200 (USD 0.16) per kg.Tourism and mining may also feel the impact. Tourismcontributes 17.2% of GDP, second in importance onlyto agriculture. Tanzania received 719,031 tourists duringthe financial year 2006/07 and money accruedwas about USD 1 billion. Many tourists have alreadycancelled bookings, and it is estimated that earningsmay decline up to 20%. Mining may be affected due tothe reduction in foreign direct investment (FDI).Poverty reductionSince 2000 the country has been implementing povertyreduction strategies, supported by a comprehensiveand strong National Poverty Monitoring Systemwith development partners. The National Strategyfor Growth and Reduction of Poverty (NSGRP) isaimed at reducing income poverty by achieving andsustaining broad economic growth, improving thequality of life and social well-being of Tanzanians byensuring that everyone has equal access to qualityservices, and promoting good governance and therule of law.In addition, the Property and Business FormalizationProgramme (PBFP) aims to facilitate thetransformation of property and business entities in5 Ibid.100the informal sector into legally held and formallyoperated entities in the formal sector. The rationaleis to develop capital formation initiatives that aretailor-made to the circumstances of the economicallydisadvantaged majority of the country’s populationand empower communities.The world crisis, however, is imperilling the realizationof these programmes, the Tanzania DevelopmentVision 2025 and the Millennium DevelopmentGoals. The national economy depends on aid, andODA flows are expected to slow as donor countriesare under pressure to save their own economies.Remittances from overseas (USD 14 million in 2006and 2007) may be reduced as it is likely that somenational working abroad will lose their jobs.Food statusTanzania has about 45 million hectares adequate foragricultural production. Out of these, only 6.3 million(about 15%) have been cultivated. 6 Irrigation onlycovered some 300,000 out of 2.3 million hectaresby 2006. 7 Approximately 75% of agricultural workersare in subsistence production characterized bysmall-scale cultivation, the use of hand tools, and relianceon traditional rain-fed cropping methods andanimal husbandry. 8 The other 25% work on largescalefarms that focus on export crop production. 9Production is low, especially among the smallholders.The quality of export crops has also remained6 National Water Policy (2002), p. 10.7 National Irrigation Master Plan (2004).8 Ministry of Planning, Economy and Empowerment. Povertyand Human Development <strong>Report</strong> (PHDR) 2007. December.Available from: .9 Agricultural Sample Census 2002/03 (2005).51National reports 156 <strong>Social</strong> <strong>Watch</strong>
low in relation to those produced by neighbouringcountries. These factors have significantly limitedrural growth. Cotton farmers in the Mwanza andShinyanga regions faced a particularly difficult year,as the situation described above has substantiallyreduced their incomes and purchasing power. 10Poor agricultural production is partly a consequenceof the limited use of agricultural inputslike fertilizers, pesticides, herbicides and improvedseeds. Such inputs are expensive even where theyare available, and extension services are often lacking.Regarding livestock, the cost of veterinary drugsand the non-availability of services are some of themain problems. Furthermore, there is drought, diseaseand limited access to markets; market prices foranimals and access to market information are alsocited among the problems hindering production.The majority of Tanzanian smallholders are notqualified to get credit from financial institutions. Accordingto the Agricultural Sample Census 2002/03,only 3% of the total number of agricultural householdsmanaged to access credits. The main creditproviders were farming cooperatives (35%), family,friends and relatives (32%), traders/trade stores(9%), savings and credit co-operative societies (8%),religious organizations/ NGOs/ projects (8%), privateindividuals (4%) and commercial banks (2%). Only1.6% received credit from formal sources.Access to safe drinking waterTanzania has an adequate supply of water to meetthe needs of users; statistics from the Food and AgricultureOrganization show that it had 2,466.9 and2,291.9 cubic square meters per capita in 2006 and2007 respectively. However, some parts of the countryreceive over 1,600 mm of rain annually and othersaround 600 mm, and there is inadequate water storage.Water services are unevenly distributed amongdistricts and regions and among urban and ruralpopulation. 11 Most rural people spend an average of27 minutes fetching water, compared to 5.9 minutesspent by urban dwellers. The increasing cost of supplyingsafe domestic water makes it unaffordable tothe poor. Lack of water has led to increased socioeconomicpressures and even conflicts among usersduring prolonged dry periods.In addition, Tanzania is lagging behind on technologyto control flooding during the rainy season.The drainage pipes tend to burst due to the largevolumes of water, resulting in the mixing of dirtyand clean water. This, together with the lack of a systematicway of treating the direct water supply tothe population, leads to diseases including cholera,bilharzias, malaria, scabies and trachoma in areaswith poor sanitation facilities.HIV/AIDS care and treatmentIn 2006 it was estimated that only 10% of peopleliving with HIV/AIDS were enrolled to get treatment.Out of this figure, 57% were between 15-49 years ofage and 61% were adult females. 12 Out of the totalnumber of those enrolled, 60,341 were admitted foranti-retroviral therapy. This figure covers only onequarter of the people in need of treatment and care.Serious challenges include inadequacy of drugs andfacilities for diagnosis, urban-based services – forexample, Dar es Salaam has nearly 30% of the patientsenrolled in ARVs –, and side effects from usingARVs.Governmental responsesThe Government has initiated preventive measures,including: setting up a warning system using selectedindicators of financial sector performanceon a daily basis to determine signs of weakness;an intensified oversight of the banking system andbroadened collection of information on the performanceof banks; and ensuring the adequate capacityof the Government and the Bank of Tanzania to intervenewhen necessary.Tanzania will not be immune to the impacts ofthe world crisis, as its budget depends on nationsthat have been directly affected. More measures arerequired to reduce the impacts. In particular, donorcountries should rise to the challenge and continueto support the least developed countries rather thandiscontinuing their aid. nReferencesEarth Trends (2003). Economic Indicators Survey, EarthTrends Country Profile. Available at: .Ministry of Planning, Economy and Empowerment (2007).Poverty and Human Development <strong>Report</strong> (PHDR) 2007.December. Available at: http://www.povertymonitoring.go.tz/documents/phdr_frontpage.pdfNdulu, B. (<strong>2009</strong>). “The Global Financial and Economic Crisis:Challenges and Responses”. PowerPoint presentation by theGovernor of the Bank of Tanzania, March.10 See: .11 Ministry of Planning, Economy and Empowerment (2007).12 Idem.<strong>Social</strong> <strong>Watch</strong> 157 Tanzania
100thailand1007747A short-sighted response (once more)10065000The Government has issued a prompt response to the crisis under the usual shape of stimulus packages.9760However, a more sustainable vision becomes mandatory: one that brings64100 into the solution 100 the9999environmental and food security concerns the country and the world are currently facing. If changeIEG of Peruis to=happen,69,7it will have to come fromBCI ofanFilipinasinvigorated= 78,1social movement, backedIEG of Philippinesby solid=support75,6fromacademics and entrepreneurs.9863100 100 100100 100Nantiya Tangwisutijit<strong>Social</strong> Agenda Working Group100Basic Capabilities Index (BCI)100BCI = 96* 91Children reaching5th gradeGEI = 70Gender Equity Index (GEI)EmpowermentInitially, people in Thailand watched the subprimemortgage crisis unfold in the United 51 States with littleidea of what it meant, much less how it could affect41them. Their first clue came in November 2008 when0exports, which had enjoyed double-digit annual00growth during the past decade, were suddenly down88979920% compared to November 2007. Next, as employersmoved quickly to minimize costs, workers took to Births attended by98100 100 81 100100 100100 7210084the streets in protest of wage and benefits cuts. Then skilled health personnelSurvival up to 5 Economic activityEducationit was official: the IEG crisis of had Tanzania arrived. = 71,9 BCI of Tailandia = 95,6IEG of Thailand = 70,2Thailand is no stranger to economic upheaval,having been ground zero for the Asian financial crisis12 years ago, but the current recession is poised tocut far deeper into the country’s economic, socialand political fabric. Unlike 1997, when Bangkok’sbanking and currency mischief was contained mostlywithin the region, the current crisis has now sweptaway much of the world’s wealth. Thus Thailand’sexport sector, the heart of its economy which continuedto pump strongly during last decade’s crisis,is now in free fall, dropping at an annual rate of morethan 30%. 1As exports account for 70% of GDP, Thailandis among the most exposed economies in emergingAsia. Thai exports have tumbled in every majormarket: United States, Europe, Japan and ASEANas a whole. Moreover, exports to China – the onlycountry that might possibly provide the muscle topull Thailand and emerging Asia out of the economicquagmire – have fallen as well.The fast pace of economic decline has also beenexacerbated by political uncertainty, with recurrentlycollapsing governments and four prime ministersin 2008 alone. This political paralysis has delayedthe completion of government budgets and the implementationof backlogged public works projects.Economic growth in 2008 was just 2.6%, down from4.9% in 2007. The forecast for <strong>2009</strong> is a further contraction,as low as -3.9%. 2* “Children reaching…” estimated following procedure “1” inp. 209.1 National, Economic and <strong>Social</strong> Development Board. Availablefrom: .2 Ibid.Labour and unemploymentMore than 250,000 workers lost their jobs betweenOctober 2008 and February <strong>2009</strong>. Unemploymentincreased 140% from January 2008 to January <strong>2009</strong>.The Federation of Thai Industries estimates that by theend of this year unemployment will reach 1.5-2 millionpeople, 5%-8% of the registered workforce. 3 However,actual unemployment will be far worse, as official estimatesneglect the informal sector which accounts for60% of all jobs. This includes workers whose employerssidestep the unemployment insurance system, andthose who remain unemployed after exhausting theirsix months of unemployment benefits.According to official numbers, during the previouscrisis, unemployment peaked at just 5.6% in1998. 4 Labour advocacy groups such as the AromPong-pangan Foundation anticipate that unemploymentwill soon dwarf this figure, since the currentcrisis is expected to endure for a long time and becauseof the trends in the labor market during thepast decade.Today’s workers have less bargaining powerbecause of changes in employment and terminationprocedures, according to Bundit Thanachaisretavuthand Vassana Lamdee of Arom Pong-pangan Foundation.Instead of hiring workers directly, many employersoutsource personnel management to “invisible”intermediaries in order to avoid any direct legalresponsibility over employment practices. Moreover,the mass layoffs of the past, which could assurestrong public support for stricter labour practices,no longer occur. Workers are let go in piecemeal3 Kasikorn Research Center. See: .4 Ministry of Labour. See: .100fashion, sometimes without compensation, and immediatelytransported back to their rural hometownsto keep them from stirring up trouble.While trying to address the crisis throughtheir watchdog role, both media and civil societygroups are also impacted by the crisis. Print mediain particular is cutting back in the wake of shrinkingadvertisement revenues. NGOs are taking a doublehit as overseas donors slash their budgets and theirweakening currencies convert into fewer Thai baht.FarmingDuring the 1990s crisis many unemployed workersfound a temporary cushion in the farming sector;now, however, the rural rice bowls have less to offer.Although lower oil prices have cut farm input costsmore than prices, the reduced demand for exports,especially for major commodities like rubber andcassava, have eliminated opportunities to absorb displacedworkers. Worse still, as a result of the growinginflux of cheap farm products from China followingthe implementation of the 2003 free trade agreement,Thai farmers have lost competitiveness. In addition,over the past decade, due to growing family debts andincreasing labour migration from farms to factories,there are less small farmer owners of land. This shiftin labour dynamics is also reducing farming skills anddecreasing the number of urban labourers willing toreturn home to support the family farm.The poorest among the poorThese trends place even greater pressure on the 23million workers in the informal sector, the majority ofwhom are women. Whether service workers, factorycontractual workers, food vendors, farmers, handicraftmakers, scavengers, taxi drivers, they alreadyfeel the pinch from the shrinking consumers’ walletsNational reports 158 <strong>Social</strong> <strong>Watch</strong>
and the rising competition, as many laid-off workersattempt to join their ranks.As the economy worsens, women, in addition tolower incomes are expected to face greater burdens,said Usa Lerdsrisuntad, programme director of theWomen Foundation. In cases of divorces or separation,a rising trend in Thailand, the responsibility ofchild rearing continues to fall disproportionately onwomen. The National Statistic Office reports that30% of children from single families are under thesole care of their mothers. With less money, it isfeared that many women will cling on to abusiverelationships in order to minimize the economichardship on their families. The lack of Governmentsupport for child rearing combined with a weakeningeconomy is also likely to drive more women into thesex industry and/or overseas jobs arranged throughhuman trafficking rings.Since they are one of the most vulnerable groupsin society, children are the ultimate victims of any crisis,whether economic, social or political, assertedChettha Munkong of the Children Foundation. Schooldrop-out rates are on the rise as students join in theirfamilies’ efforts to meet economic needs. For thosewho are able to remain in school, children’s rightsadvocates also worry the crisis may have already impactedthe quality of their education. Facing toughereconomic constraints themselves, more and moreteachers are spending less time in the classroom andmore time seeking supplementary income.The rapid economic expansion of the past decade,combined with increased constraints on theirability to sustain their livelihoods through naturalresources, has thrown an increasing number of ethnicminorities into the informal workforce. Thus, forthe first time, some of these communities will bedirectly suffering the impacts of a recession. SeaGypsy communities, for example, have graduallybeen entering the hotel and tourism industries, butwith tourism already off 20%, jobs are disappearing.With no formal education, and facing far greatercompetition from other unemployed workers shouldnew jobs materialize, the impacts to these and othermarginalized communities may last the longest.Governmental responsesIn January <strong>2009</strong>, the Government issued a USD 4.5billion economic package that included tax cuts, expandedfree education, subsidies for transportationand utilities, and cash handouts for low-wage earners.Two similar packages have been anticipated beforethe year ends. Although Thai society welcomedthis speedy response, the direction of this policyand the handling of its implementation have raisedmany concerns.One of the most controversial measures was theone-time THB 2,000 (USD 57) cash handouts to governmentand private-sector employees earning less thanTHB 14,000 (USD 397) per month. Even those eligiblefor the fund criticized the policy as blatant populism asopposed to a meaningful stimulus. For example, thevast majority of workers in this category are in the informalsector, and are thus ineligible; this also raises theissue of gender discrimination, since the vast majorityof women are working in the informal economy.<strong>Social</strong> activists such as Bundit of Arom PongpanganFoundation are also critical of the top-downstructure and lack of transparency of the fund’smanagement that provides a fertile environment forcorruption. For example, the THB 7 billion (almostUSD 199 million) designated for retraining 240,000workers will be available only to State agencies withlimited accountability, not to the local administrationorganizations and community professionalassociations which work more directly with theunemployed.To complement its stimulus plan, the Governmentis also working on a major overhaul of theregulatory structure for financial markets. However,contrary to many other countries that are establishinggreater safeguards to protect consumersand their economies, Thailand is moving towardswholesale deregulation and liberalization to increasethe role of the capital market in developingthe economy. It is feared that this initiative, led bymany of the same people involved in the 1997 financialcrisis looking exclusively for short term gains,will pave the way for a new crisis as soon as thecountry is again on its feet.Civil society groups point out that the biggestflaw in the Government’s stimulus policy is its lackof a coherent strategy. There is no vision for howThailand might utilize stimulus resources to helpaddress some of the root causes of inequality and ofthe persistent social and economic hardship that themajority of the population suffer. Surichai Wankaeo,director of the <strong>Social</strong> Research Institute at the ChulalongkornUniversity, points out that the packagefails to provide a rudder for an economic policy thatfor too long has been at the whim of multinationaldemand, leaving the country vulnerable to globalmarket volatility. In many respects, it resemblessimilar programmes launched during the 1930s:make-work projects and hand-out programmes thatin the end do little more than offer temporary assistanceand no contribution to the foundation of astronger economy or society.To build a more resilient economy the countrymust implement strategies that strengthen domesticconsumption of domestic products. Advocatescite the success the tourism industry has enjoyedin recent years, marketing to domestic tourists tooffset reductions in demand from foreign tourists.A much better starting point, however, would be tosupport food security and safety. With such a strongand still largely decentralised farming sector, policies,incentives and regulations aimed at organicfood production could have far-reaching effects onboth the domestic economy and public health. WorldTrade Organization concerns aside, if regulations areplaced on both the use of chemicals and banningproducts that contain them, Thailand would immediatelygain a competitive advantage over imports.Many farmers are already using organic methodsmerely as a means to reduce the cost of inputs, withlittle access to any distribution network where theirproducts could receive premium prices.To further aid farmers in rural areas, the issue ofland reform is also a key, added Prayong Doklamyai,coordinator of the Northern Farmers’ Network. Presently,90% of Thailand’s land is owned by 10% ofthe population. At minimum, a highly progressivetax structure should be put in place for land ownership,as well as purchase assistance for first-timebuyers, particularly in the agricultural sector. Suchprogrammes could be tied to organic farming policiesso they help encourage new land holders to shifttoward these highly valued crops.Another area where Thailand must look inwardlyis energy. Nearly 90% of oil is imported, eating up10% of the country’s GDP. This represents a lot ofmoney and jobs that could be a part of an expandedalternative fuels programme, should steps be takento support it. Similarly, incentives should be given foralternative homegrown energy generation/savingstechnologies to halt the country’s march toward purchasingnuclear power stations and erecting coalfiredpower stations.The Government should be working to stimulatecleaner, domestic energy supplies as part and parcelof a plan to address the challenges of climate change.Leading scientists and economists have shown howthe catastrophe is rapidly approaching Thailand’sshores and that now is the time to do something toprepare for it. Government agencies need to gainexpertise and technologies to better understand thechanges the country will face, and the adaptationstrategies required for both the economy and societyto navigate a climate-resilient future.The farming sector is critical to this preparedness.Drought is already a more frequent problem,and with major changes in rainfall patterns projected,farmers need to have alternatives for new crops,cropping patterns and farming techniques. Stimulatingdomestic research, testing and implementationof these new approaches should be a top priority toensure a viable farming sector.Efforts aimed at strengthening the economymust not be the sole focus of the country’s responseto the current crisis. The evolving role of the welfareState is equally important. Following the successwith the implementation of universal healthcare duringthe past decade, civil society groups feel thatnow is time to explore retirement benefits that wouldcover the majority of people, whether working in theformal employment sector or not.OpportunityIf there is any silver lining in the current economiccrisis, it is that it presents the opportunity totake a hard look at the factors that created it and thestrategies to be deployed in order to avoid its recurrence.Tax breaks, worker training, and re-regulationof financial markets can provide valuable stimulus,but only if the target lies beyond a short-term recovery.Change will have to come from an invigoratedsocial movement, supported by academicsand entrepreneurs. Thailand is no stranger to suchmobilizations, which generated its “People’s Constitution”– a landmark in democratic political reform,the first in the country drafted by an elected assembly– in 1997. The question however is whether such amovement can happen quickly enough to have anyimpact on the Government’s response to the currentcrisis. n<strong>Social</strong> <strong>Watch</strong> 159 Thailand
uganda100 98Millennium Development Goals at risk1004500The financial crisis will hamper efforts to reduce poverty in Uganda. Foreign aid, remittances and99revenues derived from 100 exports are already shrinking. 100 The Government 100 69must develop new strategies 10096to help identify the root causes of poverty, exclusion and poor social conditions at home, while joiningother countries at both regional BCI and of international Polonia = 99,1 levels in pushing for reform IEG of of Poland the global = 70 financialarchitecture. Various efforts from civil society, if supported, might help to tackle the crisis.100 100100Development Network of Indigenous Voluntary Associations(DENIVA)David ObotTowards the end of 2008, leaders of the G-20 called ondeveloped and developing countries, as well as internationalfinance institutions, to take “urgent” actionsto avert the negative impacts of the global economiccrisis. A World Bank report to the G-20 finance ministers’meeting in March <strong>2009</strong> warned of the long-termimplications for developing countries, including reducedhealth and education services for the poor. 1In addition, official development assistance(ODA) to poor countries may decrease as the crisisdeepens in donor countries. 2 The United NationsCommission on <strong>Social</strong> Development warns that thecurrent crisis will undermine social policy and threatensocial stability, with food and climate crises pushingthe most vulnerable to the margins of society. 3The International Monetary Fund (IMF) has indicatedthat financial markets in sub-Saharan Africa arevulnerable due to the downturn in global growth andthat Uganda is at risk due to borrowing for investmentin the stock market. 4 The Central Bank has warned that,with diminished earnings from exports and tourism,the country’s economic growth will now be in the rangeof 5% or 6% rather than the 8% previously projected. 5The Finance Minister has reported that whileUganda is not “directly exposed” to risk, the economicdownturn could lead to a reduction of financialinflows from outside investments, tourism,1 The World Bank (<strong>2009</strong>). Available from: .2 te Velde, D.W. (2008). “The Global Financial Crisis andDeveloping Countries: Which countries are at risk andwhat can be done?” London: Overseas DevelopmentInstitute (ODI). Available at .3 Gu, Z and Wang, X. “UN Commission discusses stepsto mitigate negative impact of global financial crisis onsocial development.” China View online. 6 February <strong>2009</strong>.Available at: .4 IMF (<strong>2009</strong>). Impact of the Global Financial Crisis on Sub-Saharan Africa. Washington, DC: IMF. Available from: .5 Reuters. “The Financial Crisis.” 23 October 2008. Availablefrom: .Basic Capabilities Index (BCI)100BCI = 59 GEI = 67Children reaching5th grade0Gender Equity Index (GEI)Empowerment42 87100100 100100 8183 100100Births attended byskilled health personnelSurvival up to 5 Economic activityEducationBCI of Uganda = 59,2remittances from abroad and aid flows from donorcountries. 6 He added that reduced remittances anddonor support has already led to a revenue collectionshortfall of UGX 108 billion (USD 51.4 million) fromJuly 2008 to February <strong>2009</strong>. Remittances peaked atUSD 1,392 million in financial 100 year 2007/08. 796Further, foreign trade has been unimpressive.While an increase in exports was registered between2003 and 2007, imports widened the trade deficitin 2007 (see Chart 1). The World Bank notes thatlow-income countries in sub-Saharan Africa have0come under pressure owing to the impact of lowercommodity prices. 8Outlook100for achieving the MDGs cloudy100According to the IMF World Economic Outlook report2008, a decline ICB in world de Belgica growth = of 98,3 one percentagepoint would lead to a 0.5 percentage point drop inAfrica’s gross domestic product (GDP). The reportanticipated the possibly serious effects of the globalfinancial crisis on Africa in terms of trade, foreign directinvestment (FDI) and aid resources. It also notedthat while the correlation between African GDP andworld GDP between 1980 and 1999 had been 0.5, itwas only 0.2 between 2000 and 2007. Meanwhile,the UNCTAD World Investment <strong>Report</strong> 2008 showedFDI inflows to Uganda for the years 2004, 2005, 2006and 2007 to be USD 295 million, USD 380 million,USD 400 million and USD 368 million.6 Republic of Uganda. Budget Speech 2008/9 Financial Year.Kampala: Ministry of Finance, Planning and EconomicDevelopment (MFPED).7 IMF. Op Cit.8 World Bank. “Crisis Takes a Mounting Toll on DevelopingCountries.” 13 March <strong>2009</strong>. See: .491000IEG of Uganda = 67,2These were significant contributions to theUgandan economy. A decline in FDI may affect thecountry’s ability to achieve MDG targets, especiallyon poverty reduction. This will be especially criticalfor poor households, and those headed by older people,youth, persons with 100 disabilities and displacedwomen and children, and may entrench intergenerationalpoverty. The Government is currently revisingits Poverty Eradication Action 56Plan to integrate it intothe National Development Plan. 9Uganda’s population in 2008 was 29.6 million,049% of which was under 15 years old. The populationdistribution is 85.1% rural and 14.9% urban. The totalfertility rate is 6.7 births per woman, and the populationgrowth rate continues at 3.2%. It is notable 96 that10064100the percentage of people living below the poverty linewas reduced IEG from de Belgica 38.8% to = 31.1% 72,2 between UgandaNational Household Surveys (UNHS) 2002/03 andUNHS 2005/06, a reduction by 1.4 million personsin absolute terms. 10 However, a significant numberwill still face hardships in coping with the effects ofthe global financial crisis. The share of agriculture inthe total GDP has continued to decrease and stood at21% in 2007. This means more strategies, includingmodernization, are needed to improve agriculturalproduction and the incomes of the rural populationin order to reduce poverty.The net enrolment ratio in primary educationwas 84% in 2005/06; and literacy rates of 15-24 yearolds increased from 80% to 84%. Although the provisionof universal primary education and universal99 100941009 Ministry of Finance, Planning and Economic Development.Poverty Eradication Action Plan (2004/5-2007/8). Kampala:MFPED.10 2008 Statistical Abstract. Kampala: Uganda Bureau ofStatistics (UBOS). See: .37ICNational reports 160 <strong>Social</strong> <strong>Watch</strong>
secondary education has improved significantly,drop-out rates of children in primary education arestill high: out of 1,914,893 pupils enrolled in primaryone in 2003, only 939,804 were in school in 2007. Interms of promoting gender equality, the ratio of girlsto boys in primary education was reduced from 0.99to 0.96; meanwhile, the share of women in wage employmentin the non-agricultural sector decreasedfrom 39.2% to 28.2%.In health, immunization coverage rates rangedfrom 89% for tuberculosis and 85% for measlesand hepatitis B to 12% for tetanus. According to theUNHS 2005/06, malaria (60.8%) is still the mostprevalent lethal disease, followed by respiratory infections(14.2%), diarrhoea (9.5%, higher in ruralareas) and skin infections (3.2%). The infant mortalityrate decreased from 88.4% to 76%. The maternalmortality ratio per 100,000 live births decreasedfrom 505 to 435, and the proportion of births attendedby skilled health personnel increased from39% to 41.1%. In the fight against HIV and AIDSand other sexually transmitted diseases, the use ofcondoms among higher-risk people (from 15 to 24years old) increased from 49.8% to 52.9%, while thecontraceptive prevalence rate among women from15 to 49 years old, who are particularly vulnerable toinfection, stood at 23.6%.Regarding environmental sustainability, theproportion of land area covered by forests decreasedfrom 21.3% to 18.3%; and the rural population withaccess to improved water sources increased from53.5% to 58.5%. Under Goal 8 of the MDGs, debtservice as a percentage of exports of goods and servicesdecreased from 20.4% to 15.8%.Government and civil society: a muchneededpartnershipGovernment measures to mitigate the impact of thecrisis for fiscal year 2008/09 include: improving revenuecollection to contribute around Land AcquisitionLoan Facility of GDP; assisting landless and poorpersons to acquire land through the Land AcquisitionLoan Facility; increasing funds for agriculturalmechanization and agricultural extension services tocover all districts; amending the Cooperative SocietiesAct of 1991 to improve the supervision and regulationof cooperative societies; supporting scientiststo develop commercial technologies and prototypes;supporting small and medium enterprises; rollingout micro-finance to 800 out of 1,020 sub-counties;and ensuring effective regulation and supervisionof banks. 11Donor support to Uganda, through both directbudget support and projects, is expected to makeup 30% of the national budget 2008/09. The Governmentshould ensure a reduction in spending on11 See: .CHART 1. Summary of Uganda External Trade Statistics: 2003-2007USD millions40003000200010000-1000-2000-3000public administration and lower interest rates onbank loans. The performance of the private sectorwill demand sound and prudent credit management,and individuals who borrow for commercial purposesshould also be strict on managing loan funds.Also needed are innovative policies for industrializationand trade, requiring greater Government effortsto promote economic integration, especially those inline with the East African Community.A variety of civil society organizations areengaged in diverse development issues includinghuman development, peace, HIV and AIDS, anticorruptionmonitoring, food security and climatechange. Action Aid Uganda, for example, has providedassistance to displaced Congolese and toconflict-affected persons in northern Uganda, andDENIVA is empowering communities in budget resourceallocation, anti-corruption monitoring andincreasing rights awareness among returnees innorthern Uganda. The AIDS Support Organisation(TASO) has continued to provide prevention andmitigation services for people across the country.The National Association of Professional Environmentalists(NAPE) and the Advocates Coalition forDevelopment and Environment (ACODE), whichfocus on environmental security, successfullyencouraged the Government to revisit a plannedsale of part of the Mabira forest, one of the biggestnatural reserves. Food Rights Alliance is advocatingfor increased food security. It is important that afavourable environment is generated in which theefforts from civil society – supported by adequateresources from the Government, development partnersand communities – crystallize into a solid contributionfor coping with the crisis. n2003 2004 2005 2006 2007Imports 1,375.10 1,726.20 2,054.10 2,557.30 3,495.40Exports 534.10 665.10 812.90 962.20 1,336.70Trade Balance -841.00 -1,061.10 -1,241.20 -1,595.10 -2,158.70ReferencesSource: UBOS 2008, p.58.Gu, Z and Wang, X. (<strong>2009</strong>). “UN Commission discusses steps tomitigate negative impact of global financial crisis on socialdevelopment.” China View online. . Accessed 7March <strong>2009</strong>.IMF (International Monetary Fund) (2008). World EconomicOutlook: Housing and Business Cycle. Washington, DC: IMF.Available from: < http://imf.org/external/pubs/ft/weo/2008/01/pdf/text.pdf >.IMF (International Monetary Fund) (<strong>2009</strong>). Impact of the GlobalFinancial Crisis on Sub-Saharan Africa. Washington, DC:IMF. Available from: .MFPED (Ministry of Finance, Planning and Economic Development)(2004). Poverty Eradication Action Plan (2004/5-2007/8).Kampala: MFPED.te Velde, D.W. (2008). “The Global Financial Crisis and DevelopingCountries: Which countries are at risk and what can be done?”London: Overseas Development Institute (ODI). Available at.Republic of Uganda (2008). Budget Speech 2008/9 FinancialYear. Kampala: Ministry of Finance, Planning and EconomicDevelopment (MFPED).Reuters (2008). “The Financial Crisis.” 23 October. Accessed 1June <strong>2009</strong>.UBOS (2003). Uganda National Household Survey 2002/2003.Kampala: Uganda Bureau of Statistics (UBOS). p. 25.UBOS (2006). Uganda National Household Survey 2005/2006.Kampala: Uganda Bureau of Statistics (UBOS), p. 25.UBOS (2008). 2008 Statistical Abstract. Kampala: Uganda Bureau ofStatistics (UBOS). See: .UNCTAD (United Nations Conference on Trade and Development)(2008). World Investment <strong>Report</strong> 2008: TransnationalCorporations and the Infrastructure Challenge. Geneva:UNCTAD.World Bank (<strong>2009</strong>). “Crisis Takes a Mounting Toll on DevelopingCountries.” 13 March. See: .<strong>Social</strong> <strong>Watch</strong> 161 Uganda
100united states of america100 9945Opportunity in crisis? Navigating the perfect storm10053000The unemployment crisis underscores the reality100of a system that does not recognize or guaranteeessential social or economic rights. Since December 2007, the number 100 69of unemployed has risen 100 to969813.1 million – 5.6 million more than at the start of the recession. Movements for human rights, greenIEG of Poland jobs, = 70 fair trade, healthcare and BCI housing of Portugal are advancing = 99,4 proposals and stepping IEG of up Portugal demands = 73,1 for real andstructural change. The U.S. cannot afford to squander this opportunity for real change.99100 99100 100 69100100 100100Global-Local Links ProjectTanya DawkinsInstitute for Agriculture and Trade 100 PolicyAlexandra SpieldochCenter of ConcernAldo CaliariAction Aid USA37Karen Hansen-KunHunger NotesLane Vanderslice0Basic Capabilities Index (BCI)100BCI = 98 95GEI = 74Children reaching5th grade0Gender Equity Index (GEI)100052Empowerment87100 9995The global economic crisis has re-branded the host100 100 8183 100100 100100 72100100of interconnected crises – housing, food, climate, Births attended by97inequality and accountability – which have simmeredskilled health personnelSurvival up to 5 Economic activityEducationbelow the radar in the U.S. andworldwide.IEG of Uganda = 67,2 BCI of EstadosIEG of Usa = 73,8As 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 theUnidos de América = 98.1and global nature of the crisis, the world looks to the The equity of banks and other institutions holding official unemployment rate only includes those whoU.S. for quick and definitive action to stem the crisesit helped to create.Blind loyalty to the “free” market as the best arbiterof social, environmental 100 and economic matters hascreated a “perfect storm” 1 of failing financial institutions,weak democratic infrastructure, and a safety netwoefully inadequate to the scope 56of human sufferingand displacement. The effect of lost homes, destabilizedcommunities and economic vulnerability resultingfrom under-regulated and unscrupulous finance0schemes continues to unfold. Millions of Americansmortgages and related securities was also greatlyreduced or eliminated. This scenario was driven bya generation of government policy that severely underminedthe regulatory 100 and oversight infrastructureof the economy and financial 88markets.These dynamics have intensified an already acutenational crisis in homelessness and affordable housing.Homelessness has increased, largely due to a risein foreclosures exacerbated by job losses, increasing0food and other costs which undermine people’s abilityto afford housing. An October 2008, 12-state surveyhave actively sought jobs in the last four weeks. Thisdefinition excludes discouraged workers 7 and doesnot reflect those who are under-employed and unableto generate sufficient income 100 to meet basic needs.Minorities have been disproportionally affectedby declining employment prospects. As of March<strong>2009</strong>, unemployment among 48 blacks, Hispanic andwhite populations increased by 4.4%, 5.2% and3.5%, respectively, reflecting longstanding trends in0inequality, particularly in the areas of education, employmentand access to justice. As of June 30, <strong>2009</strong>100 displaced by the housing and employment crisis are revealed 94 that a growing number of families 99 with childrenwere becoming homeless. 2 100100 100these increases were reflected in national unemploymentrates that stood at 14.7%, 12.2% and 7.8%. 8 10099100 1006454100100joining their long invisible counterparts at home andIn the period from9698abroad 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 thedecades. This IEG provides Belgica a rare = opportunity 72,2 to chart a requests for ICB shelter de Costa doubled. Rica 3 In = March 93,5<strong>2009</strong>, it was reality of IEG a system de Costa that does Rica not = 66,8 recognize or guaranteeessential social or economic rights. Becausecourse for a new era of leadership and partnership for reported that one in every nine U.S. mortgage-holdersreal change, development, sustainability and humanrights at home and throughout the world.was behind on home loan payments or in some stageof foreclosure at the end of 2008, as mounting jobaccess to education, food, healthcare and housingare generally a function of one’s access to a job,WANTED: The right to a place to call homelosses exacerbated the housing crisis. 4 More than 2.3 being unemployed has tremendous repercussionsmillion homes were seized during 2008, an increase of on an individual or family’s ability to access basicAs the U.S. housing bubble burst, it had a domino 81% from 2007 and up 225% from 2006. 5necessities. The U.S. has the second lowest unemploymentbenefits among OECD countries; almosteffect on the stock market – the largest repositoriesof wealth for individuals in the country. The decline in WANTED: The right to a decent jobtwo-thirds of these offer double or more unemploymentreal estate values wiped out or significantly reducedthe equity of large numbers of individual homeownersand institutional real estate holders. For example,a family that purchased a home for USD 189,000 in2006 saw its value decline by 26% to 139,000 inSince December 2007, the estimated number of unemployedpeople has risen to 13.1 million – 5.6 millionmore than at the start of the recession. 6 Moreo-2 “Homeless numbers alarming”, USA Today, 22 October 2008.benefits – plus social assistance – than doesthe U.S. 9light at end of tunnel.” 3 April <strong>2009</strong>. Available from: .2008. The decline in housing prices has meant that7 Discouraged workers are those who, while willing and able3 Ibid.to engage in a job, are not seeking work because they believemany of those fortunate enough to own homes have4 S. Scholtes, “US home loan arrears affect one in nine.”there are no suitable available jobs. See : .8 Austin, Algernon. "Unequal Employment: Racial DisparitiesWill Worsen by State in 2010." Economic Policy Institute.Web. .1 A perfect storm refers to a critical or disastrous situationcreated by a powerful concurrence of factors. See: .5 S. McNulty, “Foreclosure fears spread to middle class.”Financial Times, 29 January <strong>2009</strong>.6 H. Shierholz and K. Edwards. “Jobs report offers no sign of9 OECD. Society at a Glance, 2006. Out of work benefits.BNational reports 162 <strong>Social</strong> <strong>Watch</strong>
WANTED: The right to food securityAmericans have also been hit hard by the food crisis.Food banks, for example, have had great difficultykeeping up with demand as the public is donatingless and there are less food stocks available. 10 Inthe Midwest and the South the food crisis has beencompounded by flooding and hurricanes, resultingin a decrease in crops to farmers’ markets and localfood distribution. 11U.S. Department of Agriculture statistics indicatethat at least 36 million people, including morethan 4 million children, live in food insecure households.12 Foodlinks America reports that, “more lowincomeAmericans received food benefits under theSupplemental Nutrition Assistance Program (SNAP)in January <strong>2009</strong> than at any other time in the historyof the program. Over 32.2 million people reliedon the program that month, erasing the month-oldrecord of 31.8 million. The caseload increase wasfueled by the 11 states that had participation increasesin excess of 20% between January 2008and January <strong>2009</strong>: Utah, Florida, Nevada, Arizona,Wisconsin, Georgia, Vermont, Maryland, Texas, andMassachusetts.” 13In this food crisis, U.S. agribusinesses haveprofited from the chokehold that some large corporationshave over both production and distributioneven as smaller U.S. farmers struggle with risinginput costs and lower returns. 14Rejoining the world – details matterInternationally, the Obama Administration has quicklyshown leadership since the presidential election.In early April <strong>2009</strong>, the State Department announcedit would seek a seat on the Human Rights Council,saying that “Human rights are an essential elementof American global foreign policy.” 15 The Administrationalso gave Cabinet-level status to the newly appointedUS Ambassador to the United Nations.President Obama engaged in the G-20 process,pledging new funds to address the economic downturn.However, the USD 100 billion in new funding for10 D. Quizon, “Donations down, demand up at fooddistributors”. The State Press, 16 September 2008. Availablefrom: .11 E. Holt Gimenez, “The World Food Crisis: What’s Behind Itand What We Can Do About It.” Policy Brief. Food First, 16October 2008.12 M. Nord, M. Andrews and S. Carlson, “Household FoodSecurity in the United States, 2007.” Economic Research<strong>Report</strong>, ERR-66, November 2008.13 Foodlinks America Newsletter, 10 April <strong>2009</strong>. The ‘SNAP’programme is the renamed U.S. Food Stamps programmethat helps low-income families and people buy affordable,healthy food.14 US Working Group on the Food Crisis. “Backgrounder on theGlobal Food Crisis”. 2008.15 US Department of State, “US to Run for Election to the UNHuman Rights Council”, press release, 31 March <strong>2009</strong>.the IMF has been met with deep scepticism amongcivil society organizations who question whether theIMF is equipped to implement real economic stimuluspackages rather than its traditional and harmfulausterity programmes.The Administration pledged to double U.S.assistance for long-term agricultural developmentassistance to more than USD 1 billion in <strong>2009</strong>, andthen expanded its offer to amount to USD 3.5 billionof aid for food security over three years. Althoughthis money is much needed, how the money will bespent matters a great deal – and there are great differencesof opinion. For example, the Congress and theAdministration continue to promote technologicalsolutions, including investments in biotechnologyand Genetically Modified Organisms, while U.S. foodactivists are pushing for approaches that prioritizelocal food systems and climate friendly agriculturalpractices.On climate, the Administration has engaged inthe process leading up to the December talks for anew global climate treaty, but its positions are unclear.For example, it has yet to ratify the Kyoto Treatyand to define its global commitments to cap emissionsat a time when urgent action is needed.Bright spots and steps in the right directionPresident Barack Obama’s administration has soughtto respond to the crisis with additional funding andpolicy initiatives focused on stabilizing financial markets,domestic job creation (including green jobs),expanded benefits for the recently unemployed andinitiatives directed at homeowners who have recentlylost or are at risk of losing their homes.Elected officials are under increasing pressureto respond to the public’s growing awareness thatmarkets must also serve broader social, economicand environmental goals. Proposed policy responsessuch as mandatory interest rate reductions, restructuringthe bankruptcy laws, and measures tocurb excessive domestic and international financialspeculation –among other proposals– are also movingthrough the legislative process.The Administration has placed new restrictionsdesigned to close the revolving door between businessand government that has contributed so heavilyto misdirected policies in key sectors such ashousing, finance, trade, health and agriculture. It hasindicated support for organic production, strongercompetition measures to regulate corporate activityand stronger food safety oversight, and also madepledges for increased funding to support renewableenergy and clean fuel standards. The 2008 Farm Billincluded an additional USD 100 million to supportlocal food systems, increase access to healthy foodand support organic, beginning and minority farmers.While insufficient to meet demand, these areimportant and encouraging steps.Looking aheadGovernment intervention is a critical element in ensuringeconomic recovery and a new direction indomestic economic development. Ensuring citizenoversight and accountability remains the missinglink. For example, initiatives like showcase the Administration’s unprecedentedand innovative use of technology to keep the publicinformed. Information, however, is not a substitutefor the kind of engagement and accountability whichmust be at the heart of real change and national recovery.Domestic movements for human rights, greenjobs, fair trade, healthcare and housing are advancinginnovative proposals and stepping up demandsfor real and structural change. For example, themovement to hold the US accountable to internationalhuman rights standards, through organizingand education on the interconnected nature of civil,political, social, economic and cultural rights is takingroot. 16 A 2008 World Public Opinion Poll showedthat vast majorities of Americans favor most humanrights and principles of the Universal Declaration ofHuman Rights, including equality, women’s rights,racial justice, the rights to food, education and healthcare and believe strongly that their Government hasresponsibility to secure them. 17 Translating changingattitudes into sustained public will and new policiesremains a central challenge. Bold action and solutionsare needed. The U.S. cannot afford to squanderthis opportunity. n16 Although it is a signatory to the International Conventionon Civil and Political Rights (ICCPR) and the InternationalConvention on the Elimination of all forms of RacialDiscrimination, the U.S. has not yet ratified the InternationalConvention on Economic, <strong>Social</strong> and Cultural Rights(ICESCR) and the Convention on the Elimination of All Formsof Discrimination Against Women (CEDAW).17 “60th Anniversary: New poll shows vast support forUniversal Declaration of Human Rights principles.” TheOpportunity Agenda. Available from: .<strong>Social</strong> <strong>Watch</strong> 163 United States of America
100VENEZUELA1009153Not such a participatory democracy10042000In the midst of sharp political polarization, discussion regarding the impact on the country of the9869 international economic crisis has been postponed. A series of plans 100 promoted 75 by the Government 1009897attempt to ensure food security as well as universal access to health, housing and education. However,IEG of Portugal there = 73,1have been complications BCI involving of Rumania the = distribution 96 of food, cutbacks IEG in of Romania health plans = 71,3and aninsufficient response to the demand for housing. Results come closest to those hoped for in education.10099 99100 100 100100 100100Programa Venezolano de Educación – Acción en DerechosHumanos (Provea)Rafael Uzcátegui100Basic Capabilities Index (BCI)100BCI = 95* 91Children reaching5th gradeGEI = 68During his second presidential 52 term, President HugoChávez won a referendum on the Constitution inFebruary <strong>2009</strong> that will allow him to be re-elected0indefinitely. These electoral proceedings gave rise to0widespread controversy and reenergized the polarizationthat already existed in society.999598100 100 72100100 100The electoral climate 1 postponed any 97 discussionwith regard to the possible consequences to theBirths attended byskilled health personnelSurvival up to 5country of the worldwide economic crisis. Despite the8.1fact that Venezuela is highly dependent on hydrocarbonexports, President Chávez is optimistic regardingthe impact of the global recession: “Put the price of oilat zero and Venezuela will still not undergo a crisis”. 2The increase in the price of crude oil gave rise to considerableincome and a monetary 100 surplus, which resultedin a steady rise in imports and a high measureof public debt. The oil bonanza also made it possibleto develop a variety of social programmes 48 – known as“missions” – and to reduce the poverty indices.According to the Budget Act for fiscal year<strong>2009</strong>, 3 0oil revenue represents 46.5% of the country’srevenue sources. Of the total budget, 12.5% is devotedto social programmes 54 and missions. Inflation100 100of 15% is estimated for the period, four points 98abovethat projected for 2008. The real rate of inflation in2008 was 30.9%, IEG de the Costa highest Rica in = the 66,8region for thethird consecutive year. 4Food securityThe Ministry of Food was created in 2004 with themandate to generate an operational and strategicreserve of food in order to guarantee food securityfor the population. It oversees the food mission –Mercados de Alimentos (Mercal) [Food Markets] – a* “Children reaching…” estimated following procedure “1” inp. 209.1 Countrywide elections for governorships and mayoraltieswere also held in November 2008.2 Ministry of the Popular Power for Communication andInformation. “Even with Oil at Zero Dollars Venezuela WillNot Undergo a Crisis”. Available from: .3 While the President has ordered that the budget figuresbe revised, the amended budget for <strong>2009</strong> had not beenpublished when this report was submitted.4 Central Bank of Venezuela. “Price Index”. December 2008.Gender Equity Index (GEI)Empowerment61100 10098Economic activityEducationIEG of Usa = 73,8 BCI of Venezuela = 94,5network established in 2003 that distributes subsidizedproducts in working-class areas; the StrategicFood Programme Foundation; and the food centresset up in 2004. Originally 1,000 in number, these nowconsist of 5,963 active centres, 65 non-operationalIEG of Venezuela = 67,7ter for Energy and Oil, announced that the food networkwould be on a national scale and allow accessto food at State-regulated prices. PDVAL currentlyoperates parallel to and in the same way as Mercal,and its estimated distribution for <strong>2009</strong> was 755,000ones and 47 inactive ones. 100598metric tons.100Food has been among the items most sensitiveto inflation. Statistics published by the Central Bankindicate that between March 2007 and March 2008the price of food increased 42.6%, the highest risein 11 years. There continues to be a steady increase0in consumer prices. There are also other variablesthat hinder the State’s efforts to guarantee the rightAt the same time, due to their improved purchasingpower, Venezuelans increased their general levelsof consumption by almost 20% 48 in 2007. Accordingto figures released by President Chávez, daily calorieconsumption increased 23%, from 2,202 to 2,717calories. 6 0Poverty indices have fallen due to the effectsof the economic bonanza resulting from high oil andto food 99 for the more vulnerable sectors of the 100 population.Since 2006, the country has been affected by Indicators Service of Venezuela for the second 97 halftax revenues. Data from the Comprehensive <strong>Social</strong>100 72100fluctuating food shortages, a situation that reached of 2007 indicated that income poverty affected 33%its peak between ICB late 2007 de Francia and early = 98,8 2008, when 13 of of the population, IEG while de Francia extreme = poverty 72 had fallenthe food items listed in the basic food basket became to 9.6%. 7 The Human Development Index reacheddifficult to obtain.Despite its verbal promotion of food autonomy,the Government resorted to increased imports. TheMinistry of Food acknowledged that Mercal imported70% of the items on offer. By 2008, it was estimatedthat 45.6% of the average 2,460 calories consumeddaily in Venezuela came from food that had beenpurchased abroad. During that year, Mercal benefitedsome 9.6 million people, and sold almost 1.3 millionmetric tons of food. In January 2008, the FoodProducer and Distributor (PDVAL) was created, a0.8263, a figure higher than the previous decade’sindex of 0.7793. Moreover, the National Nutrition Instituteestablished a Sub-nutrition Prevalence Indexfor 2006 of 6%, the projection of which would fulfilthe Millennium Development Goal regarding theeradication of hunger by 2015. However, the increasein prices reduced the purchasing power of wages.By January <strong>2009</strong> the Workers’ Documentation andAnalysis Centre estimated that the cost of the foodbasket was about USD 750, 8 the equivalent of twominimum wages (USD 371.73).subsidiary in the agricultural area of Petróleos deVenezuela (PDVSA), the State-owned petroleumcompany. Rafael Ramírez, the Popular Power Minis-99100 100 1005 Ministry of the Popular Power for Food. “Statistics”. 25February <strong>2009</strong>. Available from: .1006 Ministry of the Popular Power for Communication andInformation. Per Capita Consumption of Food Has Increasedand Extreme Poverty Has Diminished. Available from: .7 Servicio Integrado de Indicadores <strong>Social</strong>es de Venezuela[Comprehensive <strong>Social</strong> Indicators Service of Venezuela].8 Centro de Documentación y Análisis de los Trabajadores[Workers’ Documentation and Analysis Centre].04488100100National reports 164 <strong>Social</strong> <strong>Watch</strong>
A comprehensive and systematic food securitystrategy, as suggested by General Comment Nº 12 ofthe United Nations Committee on Economic, <strong>Social</strong>and Cultural Rights, does not yet exist in Venezuela.Although low-cost food distribution has achievedsignificant levels of success, other aspects, suchas increasing national agricultural production, areless developed.The right to educationIt is in the fulfilment of the right to education thatVenezuela displays its most positive figures. For theGlobal Campaign for Education, the country showssome of the best indicators in Latin America and,according to the 2008 <strong>Report</strong> and Accounts, deliveredby the President to the National Assembly on9 January <strong>2009</strong>, over 7.5 million Venezuelans wereregistered in the various levels of the school cycle.Furthermore, it was revealed that the level of illiteracyhad decreased to 0.4% due to the implementation ofthe Robinson mission and that over 437,000 studentshad graduated from Robinson II, 81,000 ofwhom were indigenous inhabitants. 9 In addition,345,000 scholarships were awarded to persons oflimited means, while 67,000 people were trained toenter the labour market. 10 The Ministry of Educationreported an increase of 2.8% in the availability ofeducational services in 2007, with the constructionof 726 new training establishments. Repetition rateswere 5.1% between first and sixth grades, while constancylevels of schooling are still improving: forevery 100 students registered in first grade, 66 reachninth grade, three more than in the previous periodand 22 more than in the 1999–2000 period.The right to health and housingWhile progress has been made in fulfilling the rightto education and food, other economic, social andcultural rights have stagnated or declined. Withregard to health, normative progress made in theConstitution itself, as well as government promotionefforts, have not managed to overcome the sector’sstructural problems.In December 2003, the Executive Branch activatedthe Misión Barrio Adentro [Inside the NeighbourhoodMission] as a way to improve basic care inworking-class areas. Significant progress was madein the short term, partly due to the participation of14,345 coordinators and doctors as well as the constructionof a variety of welfare modules all over thecountry. However, in 2008 there was a slow-down ofthis health policy, and closed modules and decreasingnumbers of doctors and coordinators (to 8,500)were reported. 11 The strategy has been developed in9 The Robinson mission uses volunteers to teach reading,writing, and arithmetic to adults while Robinson II allowspeople to obtain an elementary school certificate and/or trainfor specific jobs.10 “Significant Aspects of the 2008 <strong>Report</strong> and AccountsSubmitted by President Hugo Chávez to the NationalAssembly on 13 January <strong>2009</strong>”. Available from: .11 Yearly <strong>Report</strong> October 2007 – September 2008 on theSituation of Human Rights in Venezuela. VenezuelanProgramme for Education–Human Rights Action .parallel with the national hospital network, and themain health centres continue to show serious shortcomings.This lack of coordination has become morecritical due to the National Assembly’s nine-year delayin enacting a Constitutional Health Law.With regard to the right to housing, the Governmenthas not been able to achieve its objectivesin this sector for 10 years. By 2008, according toofficial information published in the media, 23,223new dwellings had been built. The Ministry of Statefor Housing had estimated the housing deficit in thecountry at 2.8 million dwellings – 1 million for newfamilies, 800,000 “shacks” that needed to be replaced,and a further million in high risk zones suchas on mountain slopes or in watercourse areas – andthat 200,000 dwellings a year over 10 years are neededto be built in order to address the deficit. However,in 2007 the Government attained the highest figureyet, with 61,512 dwellings. 12 In 2005, the Executiveelevated the department in charge of housing constructionpolicies to ministerial rank, a measure thathas been hindered by the institutional weakness ofthe sector. No fewer than four different officials wereappointed Minister in 2008 alone, a high turnoverthat has obstructed the continuity of policy. Instabilityin the institution has persisted in <strong>2009</strong>, as theMinistry of Housing and Environment merged withthe Ministry of Infrastructure in February to form anew body known as the Popular Power Ministry ofPublic Works and Housing.The right to life and citizen securityIn the field of labour rights, the decline in unemploymentcontinued, reaching 7.2%. 13 The informaleconomy declined for the fifth consecutive year –to 43.2% in September 2008 – as compared to theformal economy, calculated at 56.8% in the samemonth. However, the percentage of people who workwithout enjoying the various labour benefits establishedby law is still high. Furthermore, the collectiverecruitment process in the public sector remainsparalyzed, which has reduced the capacity of theworking class to face inflation. Increasing homicidesowing to labour conflicts over the right to employmentconstitutes a serious setback. Conflicts betweenthe construction and oil unions for control ofjobs led to 48 union leaders being murdered in 2007and 21 in 2008.In fact, violence has become one of the mostserious problems in the country. According to figuresreleased by the Department of Scientific andCriminal Investigation (CICPC), 10,606 firearm homicidestook place in the country between January andSeptember 2008. It is estimated that 130 murdersoccur in Caracas for every 100,000 inhabitants, one12 Ministry of the Popular Power for Housing. <strong>Report</strong> andAccounts 2007.13 Questions are raised with regard to the employmentmeasurement changes adopted by the National StatisticsInstitute (INE), which now in effect include persons who haveearned at least one wage during the period analysed, whobelong to a cooperative or other form of social economy orwho have received a subsidy from the National Executive.Some claim that such broad terms of inclusion legitimizevarious forms of labour flexibility.of the highest rates in the continent. During 2008,robbery increased 8%, homicide 11% and kidnappingan alarming 101%. Provea monitored 247 casesof violations of the right to life in 2008; the worst offenders,with the greatest number of complaints, arethe CICPC (18.6%) and the police departments in thestates of Lara (12.55%) and Anzoátegui (7.2%).The high levels of violence affect different sectorsand conflicts. According to the 2008 reportby the Venezuelan Prison Observatory, the prisonpopulation totalled 23,457 people. During that year,422 inmates died violently and 854 people werewounded by firearms or sharp objects. Also during2008, seven peasant leaders were murdered duringconfrontations linked to land disputes. According toestimates circulated by Braulio Álvarez, congressmanand coordinator of the Simón Bolívar PeasantFront, 214 peasants have been murdered since thepassage of the Law on Land and Agricultural Development.14The criminalization of civil societyDuring the years of his mandate, President Chávezhas promoted popular participation in the constructionof so-called participatory democracy. However,its impact has been limited due to the tendency toexclude broad social sectors for political or ideologicalreasons. Complaints have been made about pressureon civil servants to participate in promotionalevents and the establishment of patronage networksin working-class areas that exclude those who do notsupport the President. In this respect, the increasingmilitarization of popular organizations is a matterfor concern, as is their inclusion in tasks related tocitizen security, which could give rise to potentialhuman rights violations. Another worrying issue isthe tendency to criminalize expressions of protest.During 2008, 1,763 demonstrations were monitoredthroughout the country; 83 of them were repressed,hindered or obstructed by State security forces. Atleast 89 demonstrators were subjected to criminaljudicial proceedings arising from their participationin the protests. Moreover, three people were killed bypolice officers during the demonstrations.There continues to be evidence of serious difficultyin obtaining access to public information,which, among other things, interferes with citizens’right to carry out social monitoring activities. Finally,the work of human rights NGOs continues to behindered and criminalized. Highly placed governmentspokespeople accuse such NGOs of wanting todestabilize the country and carry out a U.S. agenda.In this respect, the enactment of a Law of InternationalCooperation has been made a priority. Such alaw would establish rules for a series of controls andfilters for the work of civil society organizations. n14 Radio Nacional de Venezuela [Venezuelan National Radio].“Popular Movements Join Forces in Order to ConfrontMurder for Hire in the Countryside”. Available from:.<strong>Social</strong> <strong>Watch</strong> 165 Venezuela
vietnam10042National progress hampered by global crises00100 961000NO VA 0,0Vietnam has translated socialist principles into action99by achieving most of the Millennium DevelopmentGoals (MDGs) well ahead of time. However, it is not immune to the 100multiple global crises. There 100is an97increasing gap between the rich and the poor, and rising sea levels due to climate change are alreadyIEG of Romania having = 71,3 negative impacts. Although BCI of civil Serbia society = 98,1organizations still do not have IEG much of Serbia of = a 0presence inthe country, some groups have taken the lead to respond collectively to the issues.9899 100100 100 75100100 1001000,0ActionAid InternationalOxfam Great Britain100As the global crisis began to be felt in 2008, VietnamBasic Capabilities Index (BCI)100BCI = 93 92GEI = 74Children reaching5th gradewitnessed an inflation rate of 44 14.1% in February –an all time high in East Asia, almost twice that ofIndonesia (7.4%) and more than twice that of China0(6.5%). This led to a price hike of 24% for foodstuffs0compared to the same period in 2007 and a 17%988898increase in electricity, 61 water and gasoline compared100 100 100100 100to the previous year. 1 Around the time of Tet, the 98 Vietnamesenew year, in 2008 the price of rice fluctuatedBirths attended byskilled health personnelSurvival up to 5between VND 5,000 and VND 7,000 (about USD 0.30IEG of Venezuela = 67,7and 0.40, respectively) per kilogram. Since then, theprice has increased to over VND 10,000 (USD 0.60).The Consumer Price Index hit a record high of 28.9%in December 2008, though it stabilized in the firstfour months of <strong>2009</strong> and is currently at 11.6%.Economic growth during 100 the first quarter of<strong>2009</strong> was fairly high at 3.4% but far lower than thetargeted annual plan. The worst hit have been the majorexport-oriented sectors (agriculture, 48 garmentsand textiles). This has added more pressure to themacroeconomy in general and to the most vulnerablewage-earning groups in particular. Diminishing0demand is affecting industries and causing unemployment.Nguyen Phu Diep, head of the Labour100 72100Management Department in Hanoi’s Industrial 97 Parks(IPs) and Export Processing Zones (EPZs), says that19 enterprises there cut 4,300 jobs, which is approximately20% of workers in these sectors. It is estimatedthat 10,000 workers in Thang Long IP will losetheir jobs in <strong>2009</strong>. Declining purchasing power leadsfamilies to cut essential expenses such as health andeducation; the current rate of out-of-pocket healthexpenditures is approximately 62.8%.total expenditure ICB in the de country, Viet Nam while = 92,8 the remaining80% spends modestly. The situation has createdtwo disparate groups: a minority with “voice”, representedby emerging capitalists, and a voiceless majoritymade up of rural communities, wage labourers,small farmers and those 100being left out of the race.Gender Equity Index (GEI)Economic activity1000Empowerment100 8110097EducationIEG of Vietnam = 73,9A 2008 report by ActionAid revealed that theurban poor and migrants, as net consumers, werethe worst hit by price hikes. They have also been thefirst and worst affected by the impact of the recenteconomic crisis. The majority of migrants work on ashort-term basis and are 100the most vulnerable groupduring the economic downturns affecting the employmentPoverty and rural-urban dynamicssector. According to the Ministry of Labour,Since 2005 Vietnam has witnessed 47 a blossoming of War Invalids and <strong>Social</strong> Affairs in January <strong>2009</strong>, approximatelyindustrial zones and urbanized areas, with more than67,000 workers, mostly migrants, had190 industrial zones and clusters built on land recoveredlost their jobs. The number 20is predicted to rise tofrom over 100,000 households. This is leaving00150,000 by the end of <strong>2009</strong>. Since the unemployedrural areas with limited livelihood resources. Approximately90% of the poor depend on agricultural 96do not have insurance, this crisis is pushing rural10036migrants into extremely difficult situations.100 100 67100100 100production – which is distributed in a relatively even99fashion. Only 4% of rural households have no agriculturalAgricultureIEG de Francia = 72land of their ICB own, de which Nicaragua may be = considered 70,1 as an Vietnam has IEG become de Nicaragua the world’s = second 51,5 largest riceadvantage for ensuring household food security. 2 exporter, largely by maintaining an annual agriculturalAn estimated two-thirds of displaced householdssector growth rate of 4% for the last two decades.benefit from greater job opportunities and the chance This was a major factor in helping the country toto realize the cash value of their land holdings. Equal avoid being trapped in the economic crisis of 1997.property (land) rights have become a very important Almost 70% of the labour force works in farming.issue as strong gender stereotypes still exist. Though The Central Committee of the Communist PartyCauses and impacts of the crisisthere has been legislation to promote equal access to aims to industrialize and modernize the country byland 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 exampleof a development model that lifted millions ofpeople out of poverty while trying to ensure that thebenefits of its vibrant market economy were fairlyand evenly distributed across society to maintainthe Government’s socialist orientation. However,the aim of reducing poverty is still a challenge, asis the increasing gap between the rich and the poor.According to the World Bank, the consumption of thevery limited. As a result, women are the worst affectedduring transitions. Large numbers of people are tryingto find an opportunity to earn a living in the cities.In Hanoi alone, the annual population growth is 3%.It is estimated that by 2010 there will be 120,000 to130,000 people migrating to the capital city.2 ActionAid Vietnam (n.d.). “Food Security for the Poorin Vietnam in the Context of Economic Integration andHowever, the current crisis is making it difficult toachieve these goals, despite the introduction of severalmodernization programmes in the sector. Morethan 75% of the labour force has not yet undergoneany vocational training, and adult education still requiresa lot of reinforcement.Membership in the World Trade Organization(WTO) has widened Vietnam’s opportunitiesfor economic growth but also introduced a numberClimate Change”. Available from: .increasing drive of market forces and capital accu-44100100National reports 166 <strong>Social</strong> <strong>Watch</strong>
mulation, poor farmers currently face a severe riskof impoverishment. At the same time, increased useof chemical fertilizers and pesticides has alreadycaused serious damage to the local environmentand undermined the indigenous knowledge of localeconomies. Farmers have become more vulnerableduring the transition, particularly in the absence ofa Law on Agriculture, due to lack of formal creditfacilities and of insurance to protect them. On a morepositive note, farmers have been introduced to moreadvanced practices and high-yield crop varieties thathave contributed to increased production.Climate change, food securityand human developmentVietnam will be severely affected by climate change.As a large section of the population lives within theglobal low-elevation coastal zone, it is particularlyvulnerable to rising sea levels. 3 During a seminaron climate change organized by the Ministry of Agricultureand Rural Development in January 2008,the Minister, Cao Duc Phat, acknowledged that 73%of the population, especially poor people, are alreadysuffering from the negative impacts of climatechange and environmental degradation. Statisticsshow that storms, landslides and floods in 2007caused damage that exceeded 1% of the country’sGross Domestic Product (GDP).A study conducted by ActionAid and expertsfrom the Rural Development Centre of the Instituteof Policy and Strategy for Agricultural and Rural Developmentshows some clear evidence of the impacton climate change and disasters in Ha Tinh Province,where food productivity has been reduced by up to40% in some communes. Poor households are themost affected due to the fact that cropping patternsare not diversified. The study also revealed that thelocal community has been proactively developingits own mechanisms to adapt to climate change,such as modifying cropping patterns and animalhusbandry practices. However, these locally initiatedadaptation tools do not receive any support from theGovernment or donors.Although human development indicators haveshown spectacular progress during the last 15 years,climate change poses an imminent threat to achievingthe MDGs, particularly in the Mekong Delta region.The United Nations Development Programme’spoverty report notes that natural disasters constitutea major cause of poverty and vulnerability in thecountry The poverty alleviation strategy requires areduction of the rural and agriculture sector’s vulnerabilityto these by mainstreaming disaster riskreduction strategies into the national plan.Responses and policy commitmentsSince the beginning of the global crisis, the Governmenthas applied strong economic measures tocombat inflation and maintain sustainable growth.The main focus has been on key issues such as strictfinancial policy implementation, a boost in production,export increases and reduction of excessiveimports. As the economic crisis unfolds, the Governmenthas made commitments to ensure the rights ofvulnerable groups through appropriate mechanismsof social protection. It has also played a leading rolein mobilizing to achieve the MDGs. However, as asignatory to most of the international human rightsconventions, it must ensure stronger compliancewith the International Covenant on Civil and PoliticalRights and the International Covenant on Economic,<strong>Social</strong> and Cultural Rights in order to protect therights of the affected population through appropriatepolicies and programmes at the local level.While the Government is energetically addressingthe issues, adopting an economic stimulus planof USD 1 billion (1.1% of GDP), the World Bank, theAsian Development Bank (ADB) and the IMF havereleased analyses of projected economic growthrates for <strong>2009</strong>. The ADB’s is the most cautious at4.5%, which still leaves Vietnam in better shape thanmost Asian economies despite the global downturn,while the IMF and the World Bank project a growth of4.75% and 5.5% respectively.The role of civil societyAlthough the presence of civil society organizations(CSOs) in Vietnam is still tiny, some groups havetaken the lead in collectively responding to the crisis.For example, in response to the South East Asian Callto Action, a report on the food crisis was preparedby CSOs and presented during the ASEAN People’sForum in Bangkok in February <strong>2009</strong>.In addition, the Vietnam Academy for <strong>Social</strong>Science is currently collecting evidence and solicitinginputs on the social impacts of the financial crisis.The findings are to be presented to the National Assembly,whose members will discuss short-term andlong-term strategies to cope with economic fluctuationand its social impacts. CSOs were given an opportunityto participate in this exercise through theincorporation of the WTO monitoring process.ConclusionGovernments should use the opportunity presentedby the current global economic crisis to addressother crises – including food, climate change, jobsand poverty – and to develop long-term sustainablestrategies for solving them. The global crisisshould be seen as a chance to develop a green globaleconomy that will respect and preserve commonglobal goods, prevent further global warming andensure a sustainable, safe and clean environment forfuture generations. n3 IHDP. IHDP Update: Magazine of the International HumanDimensions Programme on Global Environmental Change.No. 2, October 2007. International Human DimensionsProgramme. Available from: .<strong>Social</strong> <strong>Watch</strong> 167 Vietnam
yemenOil is not enough100100 981000NO VA 0,00,04200With an economy dependent on oil exports and reserves,99which are beginning to show signs of depletion,Yemen is betting on the international price of crude going up in order 100to finance 67 its budget. The country 10097is one of the most backward in terms of development, but official social policies are not based on seriousIEG of Serbia economic = 0 studies and their application BCI of Eslovaquia is increasingly = 99 chaotic. A corrupt minority IEG of Slovakia makes = use 68,8of theState’s resources and wealth, which do not reach the needier sectors of the population.99100 100100 100 100100 100100Human Rights Information and Training Centre (HRITC)<strong>Social</strong> Democratic ForumBasic Capabilities Index (BCI)Gender Equity Index (GEI)Yemeni Observatory for Human 100Rights100100BCI = 59 GEI = 30Children reachingEmpowerment665th gradeThe Republic of Yemen’s Constitution 44 considersshar’ia, the Muslim code of behaviour and morality,to be the main source of legislation and it establishes0the separation of powers – Legislative, Executive00 6and Judicial – as well as the multi-party principle.2034989049Parliamentary elections are held every six years and100 100 81100100 100100 100100local elections every four years. However, 97 both the Births attended bydecentralization of government and the separation of skilled health personnelSurvival up to 5 Economic activityEducation8powers are insufficiently applied.IEG of Vietnam = 73,9BCI of Yemen = 58,7IEG of Yemen = 30Islam is the state religion and Muslims are composedneed for social control over use of the general budget budget is dependent on oil extraction, and the pos-Bmainly of Shafi’i and Zaidi, although there is an and the strengthening of transparency and integrity. sible depletion of the country’s reserves, whose yieldIshmaelite minority. There is also a small population Despite some significant progress in ensuringis in continuous decline – from 420,000 barrels a dayof Jews, principally in the districts of Amran and Saadah.free elections, both in parliamentary elections in 2005 to under 350,000 at present – puts it at risk.All enjoy freedom of worship. Yemeni society in 1993, 1997 and 2001 and in direct municipal and Yemen, therefore, can only hope for the internationalis primarily agricultural and 100 governed by traditional presidential elections in 1002006, conflict between the prices of crude oil to go 100 up.customs in most regions.ruling party and the opposition has resulted in a twoyearCrops of khat – a stimulating and energizingThe Constitution insists on the principle ofpostponement of the elections 65 that should have plant considered to be an economic plague sinceequality among all citizens and the law is considered been held in April <strong>2009</strong>.it squanders over 20 million labour hours a day –positive in this respect – except for a group of lawstake up over half the cultivated land and use up vast27that clearly discriminate against 20 women, such as Economic and social situationquantities of subterranean water, as well as a quarter0those on personal assets and sanctions. Moreover,0Yemen’s economy has been weak since the Republic0of the labour force. It is estimated that this costs USDwas instituted in 1990. Since then, the country 7 million a day.the application of the law constitutes a problem due9636to the lack of real autonomy of the judicial bodies. has undergone successive 52 economic crises 88 – from These reasons, 61 among others, explain why 42%100 100 100100 100100 76 10099 the Gulf War in 1991, which caused the return of of Yemenis live below the poverty line, accordingCivil and political rightsmigrants from Saudi Arabia and the Gulf area who to 2006 food programme estimates. It is expectedDuring 2008, the IEG country de Nicaragua was severely = 51,5criticized by had been the main ICB de source Senegal of foreign = 68,5 currency inflow, that this percentage IEG de will Senegal continue = 54,9 to increase as theinternational human rights organizations, particularlyto the Saadah conflict 2 in the north, which was still price of food – especially wheat – rises in <strong>2009</strong>. Inthose concerned with freedom of opinion and active in 2008.2007 average annual per capita income was USDexpression. Partisan newspapers such as Atauri (The The rial, the official currency, is undergoing a decrease930. Economic growth decreased from 5.6% in 2005Revolutionary) and Al-Uahdaui (The Unionist), orin purchasing power due to the weakening of to 3.6% in 2007, according to a government report.independent ones such as the daily Al Aiám (Days) the economy. While in the early 1990s one U.S. dollar The World Bank estimates the unemployment ratepublished in Aden, are facing a series of charges, was worth about 20 rial, it is now worth 200 rial. among persons of working age to be over 35%; thewhich activists see as a continuous and premeditated In 2007, the rise in the price of oil resulted in increasedGovernment speaks of 17%.assault on these freedoms.government income. However, the fall of in-Yemen has one of the worst development indi-Transparency International reports have indicatedternational prices from mid-2008 has had a negative ces in the world, ranking 157 th of 175 countries in thea clear decline in the struggle against corruption, impact on the economy. This will be a severe blow 2007 Human Development <strong>Report</strong>, and 131 st in thein spite of the country ratifying the United Nations since the country did not save while it was able to do Transparency International report of the same year. 3convention on this issue 1 in 2005 and setting up the so. The Government has announced a 50% reductionSupreme National Authority for Combating Corruptionof expenditure in construction and infrastructure, The effect of trade agreementsin 2007. Civil society works in close cooperation which will have serious effects on services as well as Yemen followed the prescriptions of the IMF andwith the official government organization in order to on national and individual income in <strong>2009</strong>. The state World Bank and completely liberalized its trade inraise awareness about the dangers of corruption, the1 UN. United Nations Convention against Corruption. Availablefrom: .2 This refers to an armed revolt led by Zaidi religious leaderHussein Badreddin al-Houthi, which began in 2004.3 Human Development <strong>Report</strong> 2007/2008 – FightingClimate Change: Human Solidarity in a Divided World.New York: Palgrave Macmillan. .National reports 168 <strong>Social</strong> <strong>Watch</strong>
1985. Reducing tariffs between 5% and 25% madethe production of many local food products unviable.Food imports currently represent 33% of totalimports and are a heavy load on the balance of tradeand the balance of payments.National industry is weak and private investmentis falling steadily. The average increase in inflationof close to 17% in 2006, according to Governmentestimates, has led to a regression in living standardsand in income levels and has aggravated poverty andunemployment. This is the context in which Yemenaspires to join the World Trade Organization, whichcontinues to consider the country unqualified formembership.The great gender gapThe general participation of women, who constitute25.7% of the labour force, continues to drop significantly.The education gap is considerable; at 65%,female illiteracy is among the highest in developingcountries. The following table shows the gender gapin education, according to 2005 statistics.With regard to health, statistics show that 366out of every 100,000 women who are pregnant orgive birth die from complications and the lack ofCHART 1.Stage Male FemalePrimary education 100% 74%Secondary education 61% 30%Tertiary education 14% 5%Source: The World Bankhealth care. Some 55%, mainly in the rural areas,receive no care at all during pregnancy and labour.Despite the growth of women’s political participationas voters (they represent over 42% of the electorate),their participation as candidates and winnersof parliamentary and local elections is a mere 0.5%.Although Yemen has ratified the Convention onthe Elimination of All Forms of Discrimination againstWomen (CEDAW), the gender gap remains wide andseveral laws that discriminate against women remainin force. Many civil society organizations, public figuresand other leaders make considerable efforts toraise awareness and promote real change, such asthe adoption of the quota principle in elections andnominations.The enjoyment of social rightsEducationThe rate of access to basic education for childrenof school age is estimated to be barely 56.6%. Thismeans that 2.9 million children of that age are left outof the educational system, of whom 1.9 million aregirls. According to the third national Human Development<strong>Report</strong>, the internal efficiency of the educationalsystem is very low. Repetition and dropout rates areon the increase, the compulsory school timetablequota is not fulfilled, and there is an acute shortage ofteachers in rural schools. Teaching and practice areinadequate and are not complemented by moderneducational methods that take into account the needsof the labour market. The <strong>Report</strong> concludes that currentmethods and styles of teaching do not stimulatedevelopment or critical thought.HealthYemen’s health services are unable to keep up withgrowing needs resulting from demographic growthafter a decline in the use of family planning. Healthfacilities are poorly distributed, equipment is inadequate,and human resource management is inadequatewith regard to the training and qualificationsof workers. In addition, the health environment isfragile and sanitary awareness is diminishing. Althoughrural inhabitants make up 75% of the population,their health coverage does not exceed 30% andno more than 3.5–4% of the general state budget isdevoted to rural health. A World Health Organizationreport shows that 60% of the population lives inregions exposed to malaria, and it is estimated that 3million people a year contract the disease. Accordingto a report drafted by a Parliamentary Committee onwater and the environment, around 12 million peoplesuffer illnesses related to water pollution.LabourThe Constitution, as well as various labour andcivil service laws, undertakes to fulfil internationalconventions with regard to every citizen’s right towork and to a decent standard of living by meansof a fair wage. However, Government actions in thelast few years show that these commitments arebeing ignored. The social security system coversgovernmental employees and 70,000 workers inthe private sector, which means that over 4 millionworkers are left out. At present, there is no healthinsurance system. Of the many children who areoutside the educational system, most help their parentsin farming and shepherding activities, someresort to begging and still others are taken illegallyto neighbouring countries in order to beg or engagein domestic work.Civil society and human rightsThere are some 6,000 registered civil society organizations.Over 75% are of a charitable nature anddistribute aid to poor families as well as offering a varietyof services. Organizations with an interest in humanrights are few and lack specialization; the sameorganization may be active in the rights of womenor children, or in civil, political and economic rights.They have, however, managed to organize a varietyof training cycles, conferences and other activities.The movement has been influential in getting theState to discuss a number of issues. Although therehave been no major changes, there have been somegradual improvements with regard to issues pertainingto women, children and people with disabilities,and it has been possible to enact several laws relatedto transparency and the fight against corruption.A number of alliances and networks have recentlydeveloped that aim to engage in activism andlobbying in several different fields: political and civil,social, economic and intellectual. n<strong>Social</strong> <strong>Watch</strong> 169 Yemen
zambia10042A Government in denial1009910043000The global economic meltdown is already seriously affecting Zambia, which is highly dependent on100100the production and price of copper, its primary export. Although for 100 the 71 past 45 years politicians 82 100have97promised to diversify into other products, almost nothing has been done. The Government’s reactionIEG of Slovakia to the effects = 68,8 of the crisis has been BCI of both Eslovenia predictable = 99,5 and disappointing. The <strong>2009</strong> IEG National of Slovenia Budget = 65,1 is indenial and Parliament is not paying attention.99100 100 67100100 100100Women for ChangeProf. Michelo Hansungule100Zambia was one of the early casualties of the worldeconomic meltdown. Copper makes up 90% of nationalrevenue, and by September 2008 its price onBasic Capabilities Index (BCI)100BCI = 71 89Children reaching5th gradeGEI = 56the London Metal Exchange had crashed. While duringits peak period copper used to fetch as much as0 60USD 9,000 to USD 10,000 34 per ton, it was now going904943for just under USD 4,000. However, besides Luanshyaresidents and others in the Copperbelt who Births attended by100 100 100100 82 100were directly affected when either the mines were skilled health personnelSurvival up to 588100closed or the workers were retrenched, most Zambiansare still unaware of the situation. InformationIEG of Yemen = 30in the country, even though reluctantly and ratherclumsily guaranteed in Article 20 of the Constitution, 1is a privilege: only professionals and those “happyfew” in the Government have access to it. Local radioand television – especially 100radio, accessible to millionsof poor, mostly illiterate Zambians – often donot broadcast the same news in English, which manypeople do not speak, as in local languages.In the middle of the crisis0Zambia is in the throes of the global crisis on allfronts: energy, food, water, environment and, ofcourse, the financial 61 system itself. 2 The fall of copper100 76 100prices is aggravated by mine closures and, sinceAnglo-American investment pulled out from KonkolaDeep in 2002, owners IEG de have Senegal been leaving = 54,9the countrybecause of the slump in demand caused by cuts inconsumption in Asian and Western countries. Withthe credit crunch in the main copper markets, buyershave been driven away, thousands of mine workershave already been sacked, and more layoffs are due.Unlike the United States and other countries thathave responded to the economic meltdown by providingfinancing to failing banks and major industriesto try to keep them afloat, Zambian President RupiahBanda does not have any resources to give out.1 Rather than protect the “right to information”, Article 20protects “freedom of expression”, including “the right tonot be hindered in the enjoyment of… freedom to receiveideas and information without interference”. See: .2 Chongo, A. “Business Review: Genesis of Global FinancialMeltdown”. Times of Zambia. Available from:< www.times.co.zm/news/viewnews.cgi?category=12&id=1230108046 >.27Skyrocketing BCI food of Zambia prices= 71,3Food prices have exploded through the roof in Zambia.Though high food prices, like the economic crisis, havea global reach, unimaginative local economic and agriculturalpolicies have exacerbated the problem. Thefarming sector, which in good years produces over9,000 metric tons of maize, now produces less than6,000 metric tons. 3 During the electoral campaign lastyear, President Banda politicized the issue of failedagriculture and the consequent hunger suffered inthe country. When he came face-to-face with poverty,he emotionally announced that he would reduce theprice of mealy-meal (a staple food) as well as that offertilizers. He got votes for this but never delivered onhis promises. Rather, the Jesuit Centre for TheologicalReflection (JCTR) Basic Needs Basket for Lusakashows huge rises in the cost of basic food items inJanuary <strong>2009</strong>: staples such as mealy-meal, beans,kapenta (fresh and dried small fish), vegetables, milk,cooking oil, etc. all skyrocketed. 4In the same way, there were sharp rises in essentialnon-food items such as charcoal, soap, electricity,water and sanitation, and housing. The price of paraffin,the main energy source for poor households apart fromwood fuel, has gone way up. High petrol and dieselfuel prices translate into high transport costs, alreadybeyond the reach of the largely unemployed population.Zambians have not benefited from the recent fall inworld fuel prices, and the price in the country remainsone of the highest in the region. This was one of themain factors behind the bankruptcy of the privately3 See: .4 JCTR. “Basic Needs Basket, Lusaka”. Jesuit Centre forTheological Reflection (JCTR), January <strong>2009</strong>. Available from:< www.jctr.org.zm/bnb/BNB%20Jan09%20-%20Lusaka.pdf>.Gender Equity Index (GEI)Economic activity1000Empowerment1006479 100EducationIEG of Zambia = 56,2owned Zambian Airways: foreign airlines fly into Lusakaor Livingstone with fuel from their home base orother countries in the region to avoid buying it locally. 5Of course, this type of information is not featuredon the Zambian Government’s Web site. Eveninformation that is common knowledge – that copperprices have fallen and that Asian buyers havesince shunned the product – is not mentioned. Inthe Vice President’s “Statement on the floods situationin Western Province in general”, 6 food relief ismentioned only in the context of the floods that havehit Shangombo in the Western Province. Neither thefood crisis nor the crisis in the copperbelt has comeup in Parliament, and the people’s representativeshave not demanded answers from ministers.Similarly, the 2008 Government Progress <strong>Report</strong>on the Millennium Development Goals (MDGs)claims successful economic policies and that thecountry is on course with almost all the goals. 7 Thereport, which relies heavily on the Government’s FifthNational Development Plan (FNDP), praises the Governmentfor its “excellent performance”. It does not,however, mention that several key players, includingsome Members of Parliament from opposition parties,have questioned the legitimacy of the Plan andits formulation through a wide consultative process,since only one or two short public sessions were heldoutside government ranks to scout for public inputs,and little from these filtered into the final document.5 In January <strong>2009</strong>, Zambian Airways announced suspensionof operations mainly due to high fuel costs. The Governmentannounced in February its intention to sue the airline torecover the money it owes to various firms.6 See: .7 Republic of Zambia. Millennium Development GoalsProgress <strong>Report</strong> 2008.26100BCI of100BCI ofNational reports 170 <strong>Social</strong> <strong>Watch</strong>
The FNDP claims that Zambia is likely to achieveall but one of the MDGs by 2015. It concedes – withoutexplaining why – that the exception is ensuringenvironmental sustainability. This admission hasbeen endorsed by credible sources, among them theUnited Nations Development Programme. 8 Expertshave shown a close link between poverty and environmentaldegradation: the majority of poor peoplehave no choice but to exploit natural resources suchas wood for their energy needs. Poverty and rapidpopulation increases, coupled with the inability ofthe Zambia Electricity Supply Corporation to connectmore than 50% of the poor, leads to widespread useof wood fuel. Even though Zambia has the cheapestrates for electricity in the region, poor peoplehave no access to it. In addition, Minister of Energy,Felix Mutati, has admitted there have been stiff tariffincreases. In an interview for an audience of potentialChinese investors, Mutati said that these hinderedinvestment. 9The MDG Progress <strong>Report</strong> claims spectacularachievements also on the gender equality target.Reality, however, tells a different story. The LegalResources Foundation News documents severalcases in which women have been subjected to discriminationowing to oppressive laws and traditionalattitudes and practices. 10 The Constitution, in Article23, prohibits discrimination against women, but thishas not translated into positive results for womenin practice.Liberal economic policiesAlthough the West praises Zambia’s liberal economicpolicies, the truth is that 64% of Zambians, includingthe majority in rural areas, are still trapped in poverty.These same policies mean high interest rates andpermanent budget deficits that drain the labour market.The Government, in its MDG Progress <strong>Report</strong>,praises its management of the country’s economyand for its commitment to policies aimed at ensuringpoverty reduction that led the country to reachthe Highly Indebted Poor Country Initiative (HIPC)completion point. It further claims that this is affectingpoverty levels and most of the social indicators.8 See Sooka, M. “Energy Statistics: The Case of Zambia”.Paper prepared for presentation to a workshop onenvironmental statistics held on 16-20 July 2006, AddisAbaba, Ethiopia. Also see: UNDP. The Human Development<strong>Report</strong> for Zambia 1998. Lusaka: United NationsDevelopment Programme (UNDP).9 Xinhua. “Interview: Minister Says High Electricity Tariffsin Zambia Hinder Investment”. China Wire, 17 May 2008.Available from: .10 For example, a policeman beat his girlfriend so hard thatshe was left permanently blind in one eye, and a 25-year-oldwoman who lost an eye after it was damaged when she wasworking on a farm was only compensated ZMK 100,000(USD 20) by her employer.In other words, the Government has said that it iswinning the war against poverty and social injustice.However, the facts on the ground point in a differentdirection: very few homes, if any, have been affectedby the money received from Zambia’s admission tothe HIPC completion point. 11The <strong>2009</strong> budgetThe budget announced by current Finance MinisterSitumbeko Musokotwane in <strong>2009</strong>, apart fromthe admission that “as a result of weakening globaldemand, the global economy will, beyond doubt,negatively impact our economy and constrain our effortsto reduce poverty,” predicts for <strong>2009</strong> a “growthrate of 5%, lowering of inflation to 10% and limitingdomestic borrowing to 1.8% of GDP”. 12There is no credible strategy to mitigate the effectsof the global meltdown already affecting thepopulation. The core of Musokotwane’s budget ispremised on foreign investment, which has meltedaway with the world economic crisis. Though Zambiaenacted the Citizens Economic Empowerment Act,which aims to empower local people with economicopportunities in 2006, the <strong>2009</strong> budget makes availableto them an initial capital of just ZMK 10 billion(about USD 2 million), a paltry sum by any measure.Diversification from copperCooperating Partners Group Chairperson and WorldBank country manager Dr. Kapil Kapoor has observedthat “diversification out of copper has been a muchstated objective of Zambian leadership for severalyears”. 13 But he notes that this “has not been achievedand over 70% of foreign exchange earnings still comefrom copper’, leaving the country vulnerable to pricefluctuations. There has been no serious effort to reducereliance on copper in spite of poor performance.Copper is a technology-intensive industry. Most ofthe processing plants depend on the availability ofhuge amounts of foreign exchange, so that the industryis not only the main producer of foreign exchangebut also the main consumer. With credit drying up onthe money markets and purchasers of copper productswithdrawing from the markets, 14 it is not difficultto see the dark clouds gathering over Zambia – somewould say the storm has already broken. n11 Republic of Zambia. Millennium Development GoalsProgress <strong>Report</strong> 2008.12 Musokotwane, S. Budget Address by the Minister of Financeand National Planning, delivered to the National Assembly onFriday 30 January <strong>2009</strong>.13 The Post. “Adhere to Governance Agenda, CooperatingPartners Urge Government.” The Post, 31 March <strong>2009</strong>.Available from: .14 Toovey, L.M. “Declining Asian Consumption and a Diving USDollar Battle Copper Prices”. Copper Investing News, 16 July2008. Available from:.ReferencesChongo, A. (<strong>2009</strong>). “Business Review: Genesis of GlobalFinancial Meltdown”. Times of Zambia. Availablefrom: < http://www.times.co.zm/news/viewnews.cgi?category=12&id=1230108046 >.JCTR (<strong>2009</strong>). “Basic Needs Basket, Lusaka”. Jesuit Centre forTheological Reflection (JCTR), January. Available from: .The LRF News (2001). “Police Officer Takes Law Into OwnHands,” The LRF News, 34, December. Available from:.Musokotwane, S. (<strong>2009</strong>). Budget Address by the Minister ofFinance and National Planning, delivered to the NationalAssembly on Friday 30 January. Available at: .The Post (<strong>2009</strong>). “Adhere to Governance Agenda, CooperatingPartners Urge Government.” The Post, 31 March. Availablefrom: .Republic of Zambia (2008). Millennium Development GoalsProgress <strong>Report</strong> 2008. Available from: .Sooka, M. (2006). “Energy Statistics: The Case of Zambia”.Paper prepared for presentation to a workshop onenvironmental statistics held on 16-20 July, Addis Ababa,Ethiopia.Toovey, L.M. (2008). “Declining Asian Consumption and a DivingUS Dollar Battle Copper Prices”. Copper Investing News, 16July. Available from: .UNDP (1998). The Human Development <strong>Report</strong> for Zambia.Lusaka: United Nations Development Programme (UNDP).Xinhua (2008). “Interview: Minister Says High Electricity Tariffsin Zambia Hinder Investment”. China Wire, 17 May. Availablefrom: .<strong>Social</strong> <strong>Watch</strong> 171 Zambia
MEASURING PROGRESS
food securityA fragmented scenarioReferencescurrent situation(latest available data)Better situationAbove averageBelow averageWorse situationrecent evolution (Between mostrecent and previous available data)g Significant progressd Slight progressh Stagnante Regressionf Major regressionComplete table at: www.socialwatch.org/statistics<strong>2009</strong>Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Estimatedlow birthweight(%)Under-5 childmalnutrition(underweightfor age, %)Valueg Afghanistan (47) 33 g 33g Albania (96) 7 h 6 g 7g Algeria (96) 6 h 3 g 5g Angola (58) 12 h 26 g 19h Antigua and Barbuda (94) 5 h 5g Argentina (98) 7 h 2 g 5h Armenia (95) 8 h 4 h 6h Australia (99) 7 h 7h Austria (99) 7 h 7f Azerbaijan (96) 12 h 8 f 10h Bahamas (99) 7 h 7g Bahrain (99) 8 h 8g Bangladesh (56) 22 h 41 g 32h Barbados (98) 13 h 13h Belarus (100) 4 h 1 h 3h Belgium (98) 8 h 8g Belize (92) 6 h 6g Benin (77) 16 h 18 g 17g Bhutan (79) 15 h 14 g 15g Bolivia (79) 7 h 5 g 6g Bosnia and Herzegovina (98) 5 h 1 g 3g Botswana (90) 10 h 11 g 11g Brazil (90) 8 h 4 g 6h Brunei Darussalam (99) 10 h 10h Bulgaria (97) 10 h 10g Burkina Faso (71) 16 h 32 g 24g Burma/Myanmar (73) 15 h 15g Burundi (61) 11 h 35 g 23g Cambodia (66) 11 h 28 g 20g Cameroon (77) 11 h 16 g 14h Canada (99) 6 h 6h Cape Verde (93) 13 h 13g Central African Republic (65) 13 h 24 g 19g Chad (44) 22 h 22f Chile (99) 6 h 6g China (95) 2 h 6 g 4g Colombia (94) 9 h 5 g 7h Comoros (79) 25 h 25g Congo DR (68) 12 h 28 g 20g Congo, Rep. (76) 13 h 11 g 12Note:1. Evolution: Evolution of indicators obtainedby re-escalating those values resulting fromthe relative rate of variation among thefollowing ranks:Minor than -5: significant progress;Between -5 and -1: slight progress;Between -1 and 1: stagnant;Between 1 a 5: regression;Larger than 5: significant regression.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results fromadding the values calculated for each dimension anddividing the result by the total number of dimensionspresenting data.3. Stagnant Evolution: In those indicators showingstagnant evolution in all their values, said evolutionresponds to lack of updating, being reproduced thosevalues registered in 2008. Data refer to years or periodsother than those specified in the indicator definition.Source:UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators:Estimated low birth weight (%): Percentage ofnewborns weighing less than 2.500 grams, withmeasurement taken within the first hours of life, beforesignificant postnatal weight loss has occurred. Dueto changes in the methodology of the sources theconstruction of data series presents comparabilityproblems.Under-5 child malnutrition (underweight for age, %):Percentage of children under five whose weight for ageis less than minus two standard deviations from themedian for the international reference population ages0 to 59 months. The reference population adopted bythe WHO in 1983 is based on children from the UnitedStates, who are assumed to be well nourished.<strong>Social</strong> <strong>Watch</strong> 175 Food security
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Estimatedlow birthweight(%)Under-5 childmalnutrition(underweightfor age, %)Valueg Cook Islands (98) 3 h 3f Costa Rica (93) 7 h 7g Côte d'Ivoire (74) 17 h 16 g 17f Croatia (100) 6 h 6f Cuba (99) 5 h 5h Czech Republic (99) 7 h 7h Denmark (100) 5 h 5g Dijibouti (90) 10 h 24 g 17h Dominica (96) 10 h 10f Dominican Republic (87) 11 h 11g Ecuador (86) 16 h 6 g 11d Egypt (89) 14 h 5 g 10g El Salvador (80) 7 h 6 g 7g Equatorial Guinea (58) 13 h 13g Eritrea (60) 14 h 35 g 25h Estonia (99) 4 h 4g Ethiopia (53) 20 h 33 g 27h Fiji (93) 10 h 10h Finland (100) 4 h 4h France (99) 7 h 7g Gabon (82) 14 h 8 g 11g Gambia (73) 20 h 16 g 18g Georgia (96) 7 h 2 g 5h Germany (99) 7 h 7g Ghana (76) 9 h 13 g 11h Greece (99) 8 h 8h Grenada (92) 9 h 9g Guatemala (68) 12 h 18 g 15g Guinea (68) 12 h 22 g 17g Guinea-Bissau (58) 24 h 15 g 20g Guyana (84) 13 h 10 g 12g Haiti (48) 25 h 18 g 22g Honduras (82) 10 h 8 g 9h Hungary (99) 9 h 9h Iceland (98) 4 h 4d India (68) 30 h 43 g 37g Indonesia (85) 9 h 23 g 16g Iraq (88) 15 h 6 g 11g Iran (95) 7 h 7h Ireland (100) 6 h 6h Israel (99) 8 h 8h Italy (100) 6 h 6g Jamaica (95) 12 h 3 g 8h Japan (99) 8 h 8f Jordan (99) 12 h 12h Kazakhstan (99) 6 h 4 h 5g Kenya (71) 10 h 16 g 13g Kiribati (89) 5 h 5Note:1. Evolution: Evolution of indicators obtainedby re-escalating those values resulting fromthe relative rate of variation among thefollowing ranks:Minor than -5: significant progress;Between -5 and -1: slight progress;Between -1 and 1: stagnant;Between 1 a 5: regression;Larger than 5: significant regression.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results fromadding the values calculated for each dimension anddividing the result by the total number of dimensionspresenting data.3. Stagnant Evolution: In those indicators showingstagnant evolution in all their values, said evolutionresponds to lack of updating, being reproduced thosevalues registered in 2008. Data refer to years or periodsother than those specified in the indicator definition.Source:UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators:Estimated low birth weight (%): Percentage ofnewborns weighing less than 2.500 grams, withmeasurement taken within the first hours of life, beforesignificant postnatal weight loss has occurred. Dueto changes in the methodology of the sources theconstruction of data series presents comparabilityproblems.Under-5 child malnutrition (underweight for age, %):Percentage of children under five whose weight for ageis less than minus two standard deviations from themedian for the international reference population ages0 to 59 months. The reference population adopted bythe WHO in 1983 is based on children from the UnitedStates, who are assumed to be well nourished.Measuring progress 176 <strong>Social</strong> <strong>Watch</strong>
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Estimatedlow birthweight(%)Under-5 childmalnutrition(underweightfor age, %)Valueg Korea, DPR (87) 7 h 18 g 13h Korea, Rep. (100) 4 h 4g Kuwait (100) 7 h 7g Kyrgyzstan (95) 5 h 2 g 4g Lao PDR (58) 14 h 31 g 23h Latvia (99) 5 h 5f Lebanon (96) 6 h 6g Lesotho (72) 13 h 13g Liberia (61) 23 g 23g Libya (99) 7 h 4 g 6h Lithuania (99) 4 h 4h Luxembourg (100) 8 h 8h Macedonia (—) 6 h 2 h 4g Madagascar (59) 17 h 36 g 27g Malawi (62) 13 h 15 g 14f Malaysia (97) 9 h 9g Maldives (91) 22 h 22g Mali (67) 23 h 27 g 25h Malta (99) 6 h 6h Marshall Islands (93) 12 h 12d Mauritius (99) 14 h 14g Mexico (95) 8 h 3 g 6f Micronesia (89) 18 h 18f Moldova (—) 6 h 6g Mongolia (93) 6 h 5 g 6g Montenegro (94) 4 h 2 g 3d Morocco (81) 15 h 9 g 12g Mozambique (66) 15 h 20 g 18g Namibia (89) 14 h 14h Nepal (58) 21 h 39 h 30h New Zealand (98) 6 h 6f Nicaragua (70) 12 h 12g Niger (55) 13 h 39 g 26g Nigeria (56) 14 h 24 g 19h Norway (100) 5 h 5g Oman (98) 8 h 13 g 11g Pakistan (71) 19 h 31 g 25h Palau (99) 9 h 9g Panama (93) 10 h 6 g 8h Papua New Guinea (62) 11 h 11g Paraguay (95) 9 h 3 g 6g Peru (88) 11 h 6 g 9g Philippines (78) 20 h 21 g 21h Poland (99) 6 h 6h Portugal (99) 8 h 8f Qatar (95) 10 h 10f Romania (96) 8 h 4 f 6f Russia (99) 6 h 6Note:1. Evolution: Evolution of indicators obtainedby re-escalating those values resulting fromthe relative rate of variation among thefollowing ranks:Minor than -5: significant progress;Between -5 and -1: slight progress;Between -1 and 1: stagnant;Between 1 a 5: regression;Larger than 5: significant regression.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results fromadding the values calculated for each dimension anddividing the result by the total number of dimensionspresenting data.3. Stagnant Evolution: In those indicators showingstagnant evolution in all their values, said evolutionresponds to lack of updating, being reproduced thosevalues registered in 2008. Data refer to years or periodsother than those specified in the indicator definition.Source:UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators:Estimated low birth weight (%): Percentage ofnewborns weighing less than 2.500 grams, withmeasurement taken within the first hours of life, beforesignificant postnatal weight loss has occurred. Dueto changes in the methodology of the sources theconstruction of data series presents comparabilityproblems.Under-5 child malnutrition (underweight for age, %):Percentage of children under five whose weight for ageis less than minus two standard deviations from themedian for the international reference population ages0 to 59 months. The reference population adopted bythe WHO in 1983 is based on children from the UnitedStates, who are assumed to be well nourished.<strong>Social</strong> <strong>Watch</strong> 177 Food security
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Estimatedlow birthweight(%)Under-5 childmalnutrition(underweightfor age, %)Valueg Rwanda (53) 6 h 18 g 12h Samoa (97) 4 h 4g São Tomé and Príncipe (83) 8 h 7 g 8g Saudi Arabia (95) 11 h 11g Senegal (68) 19 h 14 g 17g Serbia (98) 5 h 1 g 3g Sierra Leone (57) 24 h 25 g 25h Singapore (92) 8 h 3 h 6h Slovakia (99) 7 h 7h Slovenia (99) 6 h 6f Solomon Islands (—) 13 h 16 15g Somalia (48) 11 h 32 g 22g South Africa (89) 15 h 10 g 13h Spain (100) 6 h 6g Sri Lanka (96) 22 h 23 g 23h St Kitts and Nevis (95) 9 h 9h St Lucia (98) 12 h 12h St Vincent and Grenadines (95) 5 h 5g Sudan (70) 31 h 31g Suriname (82) 13 h 7 g 10g Swaziland (80) 9 h 5 g 7h Sweden (100) 4 h 4h Switzerland (97) 6 h 6g Syria (95) 9 h 9 g 9g Tajikistan (89) 10 h 14 g 12g Tanzania (73) 10 h 17 g 14g Thailand (96) 9 h 7 g 8g Timor-Leste (56) 12 h 12g Togo (68) 12 h 22 g 17h Tonga (96) 3 h 3f Trinidad and Tobago (95) 19 h 19f Tunisia (95) 7 h 7f Turkey (92) 16 h 16g Turkmenistan (88) 4 h 8 g 6h Tuvalu (89) 5 h 5g Uganda (59) 12 h 16 g 14f Uklraine (99) 4 h 4e United Arab Emirates (100) 15 h 15h United Kingdom (99) 8 h 8g United States of America (98) 8 h 1 g 5f Uruguay (98) 8 h 8g Uzbekistan (93) 5 h 4 g 5h Vanuatu (87) 6 h 6f Venezuela (94) 9 h 9g Vietnam (93) 7 h 7f West Bank and Gaza (—) 7 h 7g Yemen (59) 32 h 42 g 37g Zambia (71) 12 h 15 g 14g Zimbabwe (77) 11 h 12 g 12Note:1. Evolution: Evolution of indicators obtainedby re-escalating those values resulting fromthe relative rate of variation among thefollowing ranks:Minor than -5: significant progress;Between -5 and -1: slight progress;Between -1 and 1: stagnant;Between 1 a 5: regression;Larger than 5: significant regression.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results fromadding the values calculated for each dimension anddividing the result by the total number of dimensionspresenting data.3. Stagnant Evolution: In those indicators showingstagnant evolution in all their values, said evolutionresponds to lack of updating, being reproduced thosevalues registered in 2008. Data refer to years or periodsother than those specified in the indicator definition.Source:UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators:Estimated low birth weight (%): Percentage ofnewborns weighing less than 2.500 grams, withmeasurement taken within the first hours of life, beforesignificant postnatal weight loss has occurred. Dueto changes in the methodology of the sources theconstruction of data series presents comparabilityproblems.Under-5 child malnutrition (underweight for age, %):Percentage of children under five whose weight for ageis less than minus two standard deviations from themedian for the international reference population ages0 to 59 months. The reference population adopted bythe WHO in 1983 is based on children from the UnitedStates, who are assumed to be well nourished.Measuring progress 178 <strong>Social</strong> <strong>Watch</strong>
FOOD SECURITYA fragmented scenariohe concept of food security has to do with theT level of people’s free access to safe and nutritionallyadequate food in sufficient quantities tosatisfy their daily energy needs and preferences asregards food choice, to be able to lead healthy, activelives. 1 This is a complex concept and it involves atleast three broad dimensions: the availability of food,people’s access to food, and its ultimate beneficialeffects, in other words its impact on people’s stateof health.It is difficult to find indicators comparableacross a large number of countries that are based onreliable sources and are periodically updated. Theseindicators should reflect the situation of the populationthat is the final beneficiary of the effort. The factthat food is available and that people have access toit does not necessarily establish clear parametersabout its real distribution.With this in mind, <strong>Social</strong> <strong>Watch</strong> has selected,from the range of information available, three indicatorsthat really capture the last of the dimensionsmentioned above. We understand that what reallyreflects food coverage is its final impact on the population’sstate of health, and this data is crucial to beable to make international comparisons.The real health situation in each country can becaptured in a reasonably direct way by the proportionof people who are undernourished, the proportion ofchildren with low birth weight and the proportion ofchildren aged 5 who have low weight for their age.These aspects are closely linked to the population’sdifficulties as regards exercising their right of freeaccess to adequate food.Global evolutionIn <strong>2009</strong> there was no registered variation in the “lowbirth weight” indicator (the percentage of newborninfants weighing less than 2,500 grams), so variationfrom 2008 to <strong>2009</strong> can only be gauged by examiningthe changes in the proportion of children under 5who are underweight (malnutrition).The <strong>2009</strong> data show that 15% of the children inthe world suffer from malnutrition and one in ten wasunderweight at birth (Table 2). As regards malnutrition,the indicator for which there is new information,the values show that half as many children had nutritionproblems in <strong>2009</strong> compared to 2008 (the averagefall in this value was 64.7%). Improvement wasgeneralized in this dimension, and only Azerbaijanand Romania (which went from 7% to 8% and from3% to 4%, respectively) showed a worsening in theirabsolute values on this indicator (these countries arein Central Asia and Europe, respectively).1 Jakob Skoet and Kostas Stamoulis. The state of foodinsecurity in the world 2006. United Nations Food andAgriculture Organization, Agricultural Economy andDevelopment Board, Electronic publication by the FAOinformation department, Rome, Italy (ISBN 92-5-305580-4) :.CHART 1. Current food security situation by regions (number of countries)302520151050East Asia &PacificEurope Latin AmericaCentralAsia& CaribbeanTABLE 1. Current food security situation by evolution (number of countries)In the group of countries in the worse relativesituation the average evolution was -13.9% (from38.6% in 2008 to 33.9% in <strong>2009</strong>). Naturally, in thecountries in the better relative situation this indicatorfell much more and in <strong>2009</strong> it was nearly four timeslower (the decrease was from 15.1% in 2008 to 3.8%in <strong>2009</strong>, which is a negative variation of 297.4% overthe year).However, in comparative terms, this generalisedimprovement involved a widening of the gap betweenthe relative situations of different countries and regions.In fact, the accelerated fall in the figures forsome countries and the slow improvement in otherstranslates into relative regression in a large numberof countries.Access by regionsLike in other dimensions, the regions that haveachieved the most pronounced reduction in malnutritionare North America (100% of countries are in thebetter relative situation) and Europe (68.4% are in thebetter relative situation and 31.6% above the average),and no countries in these regions are in the worse relativesituation or below the average (Chart 1).Worst relative situationBelow averageAbove averageBest relative situationMiddle East& North AfricaSouth Asia Sub-SaharanNorthAmericaf e h d g TotalWorse relative situation 1 2 1 26 30Below average 5 1 4 2 30 42Above average 9 23 1 21 54Better relative situation 8 29 22 59Total 23 1 58 4 99 185TABLE 2. Food security: averages by indicator of countries in worse and better situationsLow birthweight (%)AfricaMalnutrition in children under 5Low weight (%)Worse relative Average 21.4 33.9situation Number of countries 26 18Better relative Average 5.0 3.8situation Number of countries 48 32Total Average 10.4 15.0Number of countries 184 95No countries in Central Asia are in the worserelative situation, 2 in 10 (22.2%) are below the average,and 7 in 10 (77.8%) are above the average(11.1%) or in the better relative group (66.7%).East Asia and the Pacific, Latin America andthe Caribbean and the Middle East and North Africashowed similar behaviour. In all three regions mostof the countries (66.7%, 78.8% and 75%, respectively)are above the average (30%, 45.5% and 60%,respectively) or in a better relative situation (36.7%,33.3% and 15%, respectively). But these regionsalso have countries that rank in the worse relativesituation (10%, 6.1 and 5%, respectively) or belowthe average (23.3%, 15.2 and 20%, respectively).Sub-Saharan Africa is not the region that rankslowest in food security. However, although it doeshave some countries above the average (11.1%),most are below this level (51.1%) and nearly 4 in 10are in the worse relative situation (37.8%).Lastly we come to the most problematic regionin terms of food insecurity, South Asia. Nearly 9in 10 countries (87.5%) are in the worse relativesituation and the remaining 1 in 10 are below theaverage (12.5%). n<strong>Social</strong> <strong>Watch</strong> 179 Food security
EDUCATIONDifferences becomemore noticeableComplete table at: www.socialwatch.org/statistics<strong>2009</strong>Referencescurrent situation(latest available data)Better situationAbove averageBelow averageWorse situationrecent evolution (Between mostrecent and previous available data)g Significant progressd Slight progressh Stagnante Regressionf Major regressionSummary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Literacy(15-24 yearsold, %)Primaryschoolenrolmentrate(net, %)Childrenreaching 5thgrade(%)SECONDARYschoolenrolmentrate(net, %)TertiaryEDUCATIONenrolmentrate(gross, %)Valueg Afghanistan (47) 34 h 25.9 1.3 h 20g Albania (96) 99 h 93.6 h 89.9 72.8 h 19.1 h 75d Algeria (96) 92 d 96.0 96.0 h 66.3 h 24.0 g 75g Andorra (93) 82.1 d 98.5 71.8 f 9.9 g 66h Angola (58) 72 h 2.9 e 37d Anguila (—) 95.3 g 97.1 h 80.8 h 4.6 g 69Antigua and Barbuda (94) 74.0 74h Argentina (98) 99 h 99.0 h 96.0 h 78.3 h 67.1 d 88g Armenia (95) 100 h 93.9 g 90.5 85.0 h 34.2 g 81d Aruba (—) 99 h 99.6 h 96.7 h 82.5 g 33.1 d 82d Australia (99) 97.2 h 98.6 h 87.9 d 75.1 d 90g Austria (99) 97.4 h 98.1 51.1 d 82g Azerbaijan (96) 100 h 95.4 g 98.7 83.0 g 15.2 d 78h Bahamas (99) 91.2 d 98.1 h 86.3 d 92d Bahrain (99) 100 d 99.4 d 98.9 h 93.4 d 32.1 e 85h Bangladesh (56) 72 g 89.6 h 54.8 f 40.7 h 7.2 g 53g Barbados (98) 97.0 d 94.4 e 90.2 d 53.1 g 84d Belarus (100) 100 h 90.2 h 99.5 86.9 e 68.5 g 89h Belgium (98) 98.3 h 96.3 87.1 f 62.5 h 86e Belize (92) 99.7 h 87.3 f 67.1 f 2.6 h 64g Benin (77) 52 g 82.8 g 71.5 g 17.1 h 5.1 g 46f Bermuda (—) 92.7 f 89.8 h 18.8 f 67g Bhutan (79) 74 88.4 g 93.2 d 45.4 g 5.3 g 61h Bolivia (79) 99 d 95.0 h 83.3 e 69.9 e 40.6 h 78f Bosnia and Herzegovina (98) 100 h 36.9 68e Botswana (90) 94 h 84.1 e 82.5 f 55.9 f 5.1 h 64h Brazil (90) 98 d 93.5 e 75.6 f 77.0 h 30.0 g 75d Brunei Darussalam (99) 100 d 96.5 d 99.3 h 89.1 d 15.4 d 80d Bulgaria (97) 97 e 96.3 d 94.1 87.9 e 49.5 g 85g Burkina Faso (71) 39 g 59.2 g 79.6 g 14.1 g 3.0 g 39g Burma/Myanmar (73) 95 h 73.0 d 84g Burundi (61) 73 h 81.3 g 66.2 e 1.9 f 56d Cambodia (66) 86 d 89.4 f 62.2 e 34.1 g 5.3 g 55g Cameroon (77) 84.3 g 7.2 g 46h Canada (99) 99.5 h 62.4 h 81h Cape Verde (93) 97 h 85.2 f 92.2 h 60.7 g 8.9 g 69g Cayman Islands (—) 99 83.9 d 78.0 h 95.6 h 18.8 h 75g Central African Republic (65) 59 h 56.3 59.0 1.1 f 44g Chad (44) 44 g 60.4 h 37.7 g 10.4 h 1.2 h 31d Chile (99) 99 h 94.5 g 97.9 e 85.3 52.1 g 86d China (95) 99 h 22.9 g 61d Colombia (94) 98 h 90.9 d 88.3 g 67.4 d 31.8 d 75g Comoros (79) 89 55.5 h 80.3 h 2.3 h 57d Congo DR (68) 70 h 4.1 g 37f Congo, Rep. (76) 58.5 g 66.3 h 3.7 h 43g Cook Islands (98) 68.8 f 96.0 70.1 g 78h Costa Rica (93) 98 h 87.6 d 25.3 h 70SOURCE:Literacy (15-24 years old, %): World Bank (www.worldbank.org). Primary school enrolment ratio (net, %): UNESCO(www.uis.unesco.org/). Children reaching 5th grade ofprimary school (%): UNESCO (www.uis.unesco.org/).Secondary school enrolment ratio (net, %): UNESCO (www.uis.unesco.org/). Tertiary education enrolment ratio (gross):UNESCO (www.uis.unesco.org/).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators at the end of this table.Measuring progress 180 <strong>Social</strong> <strong>Watch</strong>
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Literacy(15-24 yearsold, %)Primaryschoolenrolmentrate(net, %)Childrenreaching 5thgrade(%)SECONDARYschoolenrolmentrate(net, %)TertiaryEDUCATIONenrolmentrate(gross, %)Valuee Côte d'Ivoire (74) 61 h 56.0 d 78.3 f 19.8 h 7.9 g 45g Croatia (100) 100 h 98.9 g 99.8 86.5 d 45.8 g 86g Cuba (99) 100 h 99.2 d 97.0 h 84.4 e 122.4 g 101d Cyprus (100) 100 h 99.3 h 99.9 h 95.1 d 36.2 g 86d Czech Republic (99) 92.5 h 98.0 h 54.8 g 82d Denmark (100) 96.1 h 100.0 g 89.6 e 80.3 h 91g Dijibouti (90) 45.3 g 89.9 g 24.4 g 2.6 g 41f Dominica (96) 82.0 e 89.3 e 81.0 f 84d Dominican Republic (87) 96 d 80.7 d 68.0 h 59.5 g 34.5 h 68f Ecuador (86) 95 e 99.3 d 81.7 g 59.2 g 35.3 74h Egypt (89) 85 h 97.6 d 96.8 d 80.0 e 34.7 h 79d El Salvador (80) 94 g 93.6 h 73.7 g 54.4 h 21.7 g 67f Equatorial Guinea (58) 95 h 69.4 f 33.0 d 25.3 h 2.7 h 45g Eritrea (60) 78 42.3 f 59.9 f 25.1 d 1.0 h 41h Estonia (99) 100 h 96.8 d 96.9 e 89.9 h 65.0 e 90g Ethiopia (53) 50 h 72.3 g 64.4 24.0 f 2.7 d 43f Fiji (93) 94.2 h 83.1 f 79.1 e 15.4 h 68h Finland (100) 96.5 e 99.9 h 96.9 d 93.8 d 97h France (99) 99.2 h 98.0 h 98.5 h 55.6 h 88g Gabon (82) 97 d 89.5 d 69.3 h 85g Gambia (73) 69.3 e 73.0 40.1 f 1.1 h 46g Georgia (96) 94.5 g 100.0 g 81.9 d 37.3 f 78Germany (99) 99.8 98.4 99g Ghana (76) 78 g 73.3 g 88.6 g 44.9 g 5.8 g 58h Greece (99) 99 h 99.8 h 98.5 h 91.0 h 90.8 h 96e Grenada (92) 78.7 f 79.0 h 78.8 h 79g Guatemala (68) 85 d 96.8 d 68.0 h 38.1 g 17.7 g 61g Guinea (68) 47 h 75.1 g 83.0 g 30.1 g 5.3 g 48h Guinea-Bissau (58) 45.3 h 8.7 h 27d Guyana (84) 64.0 h 12.3 g 38g Honduras (82) 94 g 93.9 h 83.0 g 17.2 h 72d Hong Kong (—) 94.9 d 100.0 h 78.6 d 33.8 g 77g Hungary (99) 99 93.0 d 89.4 h 69.1 g 88h Iceland (98) 97.5 h 94.0 f 90.7 d 73.4 d 89d India (68) 82 g 94.3 g 66.0 f 11.8 g 64d Indonesia (85) 97 e 98.0 d 93.0 d 67.5 g 17.5 d 75h Iraq (88) 85 h 88.6 h 81.0 h 38.4 h 15.8 h 62e Iran (95) 97 h 93.7 e 77.3 h 31.4 g 75d Ireland (100) 96.0 d 99.0 h 88.2 d 61.1 d 86h Israel (99) 97.2 h 99.0 h 87.6 e 60.4 d 86e Italy (100) 100 h 99.4 h 93.6 d 68.1 d 90h Jamaica (95) 94 86.7 e 76.3 e 19.0 h 69h Japan (99) 99.8 h 98.2 e 58.1 d 85d Jordan (99) 99 h 92.9 d 99.0 d 86.6 g 39.9 h 83h Kazakhstan (99) 100 h 99.0 g 85.6 e 47.0 f 83g Kenya (71) 80 h 87.0 g 83.0 h 44.8 g 3.5 g 60d Kiribati (89) 99.7 d 82.0 h 68.3 d 83d Korea, Rep. (100) 100.0 h 96.9 d 94.7 d 97d Kuwait (100) 98 e 94.1 g 100.0 d 79.9 d 17.6 f 78d Kyrgyzstan (95) 100 h 92.4 g 80.5 h 42.8 h 79d Lao PDR (58) 84 g 86.3 d 61.0 e 35.9 h 11.6 g 56d Latvia (99) 100 h 92.2 d 98.0 71.3 e 90g Lebanon (96) 99 84.1 d 92.0 d 73.5 h 54.1 g 81h Lesotho (72) 72.7 e 74.0 h 23.9 h 3.6 g 44f Liberia (61) 72 g 30.9 f 17.1 h 15.6 h 34h Libya (99) 99 h 55.8 h 77d Liechtenstein (—) 89.3 d 65.2 h 31.2 g 62h Lithuania (99) 100 h 93.6 g 90.9 e 75.6 e 90SOURCE:Literacy (15-24 years old, %): World Bank (www.worldbank.org). Primary school enrolment ratio (net, %): UNESCO(www.uis.unesco.org/). Children reaching 5th grade ofprimary school (%): UNESCO (www.uis.unesco.org/).Secondary school enrolment ratio (net, %): UNESCO (www.uis.unesco.org/). Tertiary education enrolment ratio (gross):UNESCO (www.uis.unesco.org/).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators at the end of this table.<strong>Social</strong> <strong>Watch</strong> 181 Education
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Literacy(15-24 yearsold, %)Primaryschoolenrolmentrate(net, %)Childrenreaching 5thgrade(%)SECONDARYschoolenrolmentrate(net, %)TertiaryEDUCATIONenrolmentrate(gross, %)Valued Luxembourg (100) 98.8 d 99.0 g 84.6 d 10.2 f 73h Macau (—) 100 h 93.0 e 100.0 h 77.6 h 57.0 h 86d Macedonia (—) 99 h 94.2 d 81.3 h 35.5 g 78g Madagascar (59) 70 h 99.3 g 42.0 e 21.2 g 3.2 g 47d Malawi (62) 83 g 87.6 f 43.0 d 23.9 d 59e Malaysia (97) 98 h 97.5 e 92.0 f 68.7 e 30.2 e 77d Maldives (91) 98 h 97.0 h 92.0 h 69.0 g 89g Mali (67) 39 g 63.0 g 81.0 f 4.4 g 47d Malta (99) 98 d 91.3 g 99.0 h 86.6 d 31.6 h 81f Marshall Islands (93) 66.5 f 44.9 f 17.0 h 43g Mauritania (68) 66 g 81.0 g 64.0 g 16.8 g 4.0 g 46h Mauritius (99) 96 d 95.4 h 99.0 d 81.5 h 14.0 f 77d Mexico (95) 98 h 99.2 d 95.0 d 72.1 g 26.9 g 78h Micronesia (89) 14.1 h 14h Moldova (—) 100 h 80.6 g 41.2 g 74d Mongolia (93) 95 e 97.6 g 84.0 81.1 h 47.7 d 81e Montserrat (92) 96.2 h 90.0 95.6 h 94d Morocco (81) 75 g 89.3 d 84.0 g 34.5 h 11.3 h 59d Mozambique (66) 53 g 76.0 h 64.0 d 2.6 f 1.5 h 39g Namibia (89) 93 h 88.1 g 98.0 g 49.6 g 6.4 d 67g Nauru (76) 72.3 31.0 h 52f Nepal (58) 79 g 80.0 h 62.0 f 42.0 11.3 g 55d Netherlands (100) 98.6 h 99.0 h 88.6 d 60.3 d 87e Netherlands Antilles (—) 98 h 97.0 h 81.0 h 21.2 h 74New Caledonia (—) 99 99h New Zealand (98) 99.3 h 91.9 h 79.8 e 90d Nicaragua (70) 87 h 97.1 g 47.0 f 45.5 g 18.1 h 59g Niger (55) 37 d 45.5 g 72.0 g 9.0 d 1.0 f 33g Nigeria (56) 87 d 65.2 d 83.0 g 27.0 g 10.2 d 54h Norway (100) 98.7 h 100.0 h 96.8 d 76.2 e 93d Oman (98) 98 h 75.0 d 98.0 e 78.6 d 25.5 g 75g Pakistan (71) 69 g 65.6 e 70.0 h 32.2 g 5.1 g 48h Palau (99) 96.4 h 40.2 h 68e Panama (93) 96 h 77.4 f 90.0 g 64.2 h 44.9 d 74g Papua New Guinea (62) 64 e 99.0 81f Paraguay (95) 99 d 88.0 g 57.4 25.5 d 67d Peru (88) 97 h 94.9 e 93.0 d 76.2 g 35.1 d 79d Philippines (78) 94 e 99.0 g 76.8 d 61.3 d 28.5 d 72Pitcairn (—) 91.7 92d Poland (99) 99 95.7 e 98.0 e 93.8 h 66.9 d 91d Portugal (99) 100 h 99.0 d 87.7 g 56.0 d 86Puerto Rico (—) 98.3 98g Qatar (95) 99 d 98.5 d 87.0 92.6 g 15.9 f 79Reunion (—) 90.0 90d Romania (96) 97 h 96.6 g 73.0 f 58.3 g 81h Russia (99) 100 h 74.7 g 87g Rwanda (53) 78 h 94.0 g 46.0 h 2.6 h 55d Samoa (97) 99 h 99.1 g 94.0 h 66.0 h 7.5 h 73d São Tomé and Príncipe (83) 95 h 99.7 d 79.0 d 38.1 g 78f Saudi Arabia (95) 97 d 84.6 e 73.0 d 30.2 d 71d Senegal (68) 51 d 73.1 d 65.0 f 22.2 g 7.7 g 44Serbia (98) 97.1 97h Seychelles (99) 99 h 99.5 h 99.0 h 94.3 e 98g Sierra Leone (57) 54 g 22.8 2.1 h 26g Singapore (92) 100 100g Slovakia (99) 92.1 h 97.9 50.8 g 80d Slovenia (99) 100 h 97.2 d 98.9 88.8 e 85.5 g 94e Solomon Islands (—) 61.8 e 27.3 h 45SOURCE:Literacy (15-24 years old, %): World Bank (www.worldbank.org). Primary school enrolment ratio (net, %): UNESCO(www.uis.unesco.org/). Children reaching 5th grade ofprimary school (%): UNESCO (www.uis.unesco.org/).Secondary school enrolment ratio (net, %): UNESCO (www.uis.unesco.org/). Tertiary education enrolment ratio (gross):UNESCO (www.uis.unesco.org/).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators at the end of this table.Measuring progress 182 <strong>Social</strong> <strong>Watch</strong>
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Literacy(15-24 yearsold, %)Primaryschoolenrolmentrate(net, %)Childrenreaching 5thgrade(%)SECONDARYschoolenrolmentrate(net, %)TertiaryEDUCATIONenrolmentrate(gross, %)ValueSomalia (48) 9.8 10d South Africa (89) 95 d 91.0 d 82.0 h 73.4 g 15.4 h 71d Spain (100) 100 99.8 h 99.8 h 94.8 d 68.9 d 93h Sri Lanka (96) 97 d 96.7 h 93.0 96e St Kitts and Nevis (95) 90.4 e 87.0 h 84.5 e 87d St Lucia (98) 99.0 d 94.0 e 81.8 g 8.6 g 71d St Vincent and Grenadines (95) 93.9 d 88.0 g 63.9 h 82e Sudan (70) 77 h 44.0 g 70.0 f 6.2 h 49d Suriname (82) 95 h 94.2 h 80.0 67.7 f 12.4 h 70d Swaziland (80) 88 h 87.2 g 82.0 g 29.2 f 4.2 f 58e Sweden (100) 94.0 e 100.0 h 99.7 h 75.2 f 92d Switzerland (97) 93.5 d 82.0 h 47.0 d 74d Syria (95) 94 d 97.3 d 92.0 h 65.7 g 87d Tajikistan (89) 100 h 97.5 h 81.3 d 19.8 g 75f Tanzania (73) 78 h 98.0 h 87.0 d 25.8 1.5 d 58d Thailand (96) 98 h 95.1 h 80.9 g 48.3 g 81f Timor-Leste (56) 63.0 f 22.8 h 9.6 h 32f Togo (68) 74 h 78.9 d 54.0 f 22.1 h 5.2 g 47h Tonga (96) 100 h 98.5 d 92.0 d 60.4 f 6.0 h 71g Trinidad and Tobago (95) 100 h 97.1 g 91.0 h 73.2 g 11.4 h 75h Tunisia (95) 96 d 96.6 h 96.0 e 64.5 h 30.8 d 77d Turkey (92) 96 h 92.3 d 97.0 h 69.5 g 36.3 g 78h Turkmenistan (88) 100 h 100g Turks and Caicos Islands (—) 80.7 d 70.2 h 75h Tuvalu (89) 70.0 h 70g Uganda (59) 86 g 94.7 49.0 h 18.9 g 3.5 h 50h UK Virgin Islands (—) 97.1 d 83.9 e 75.5 h 85d Uklraine (99) 100 h 89.9 h 84.5 h 76.4 d 88d United Arab Emirates (100) 95 e 98.3 g 100.0 d 82.6 g 22.9 e 80e United Kingdom (99) 98.4 h 91.4 e 59.1 h 83d United States of America (98) 93.7 d 95.0 88.1 h 81.7 h 90d Uruguay (98) 99 h 97.6 d 94.0 d 67.8 64.3 g 85g Uzbekistan (93) 99 93.6 91.7 9.8 f 74g Vanuatu (87) 92 87.7 f 72.0 f 38.1 h 4.8 h 59d Venezuela (94) 98 h 92.1 d 90.5 e 69.5 g 52.0 g 80f Vietnam (93) 94.0 g 92.0 g 61.9 f 9.5 f 64d West Bank and Gaza (—) 99 h 88.6 e 46.2 g 78d Yemen (59) 80 g 75.4 d 66.0 f 37.4 g 9.4 h 54g Zambia (71) 75 g 95.4 d 89.0 f 40.9 g 2.3 h 61d Zimbabwe (77) 91 f 88.4 g 70.0 h 37.1 g 3.6 h 58SOURCE:Literacy (15-24 years old, %): World Bank (www.worldbank.org). Primary school enrolment ratio(net, %): UNESCO (www.uis.unesco.org/). Childrenreaching 5th grade of primary school (%):UNESCO (www.uis.unesco.org/). Secondary schoolenrolment ratio (net, %): UNESCO (www.uis.unesco.org/). Tertiary education enrolment ratio(gross): UNESCO (www.uis.unesco.org/).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators at the end of this table.NotE:1. Evolution: Evolution of indicators obtained by re-escalatingthose values resulting from the relative rate of variationamongh the following ranks:Minor than -5: significant regression; Between -5 and -1:regression; Between -1 and 1: stagnant; Between 1 a 5: slightprogress; Larger than 5: significant progress.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results fromadding the values calculated for each dimension and dividingthe result by the total number of dimensions presenting data.3. Stagnant Evolution: In those indicators showing stagnantevolution in all their values, said evolution responds to lack ofupdating, being reproduced those values registered in 2008.Definition of indicators:Literacy (15-24 years old, %): Percentage of people aged15-24 who can, with understanding, read and write a short,simple statement on their everyday life.Primary school enrolment ratio (net, %): Number ofchildren enrolled in primary school who belong to the agegroup that officially corresponds to primary schooling, aspercentage of the total population of the same age group.Last available data: 2003/2006.Children reaching 5th grade of primary school (%):Percentage of children entering first grade of primaryschool who eventually reach grade five.Secondary school enrolment ratio (net, %): Number ofchildren enrolled in secondary school who belongto the agegroup that officially corresponds to secondaryschooling, as percentage of the total populationof the same age groupTertiary education enrolment ratio (gross): Ratio of totalenrolment, regardless of age, to the population of the agegroup that officially corresponds to the level of educationshown. Tertiary education, whether or not to an advancedresearch qualification, normally requires, as a minimumcondition of admission, successful completion of educationat secondary level.Methodological notes and guidelines at the end of the section.<strong>Social</strong> <strong>Watch</strong> 183 Education
EDUCATIONDifferences becomemore noticeablemproving the quality of education, covering differentlevels and reducing by 50% the number of illiter-Iate adults are key objectives agreed by a large part ofthe countries in the world. Target dates have been setfor 2014 or 2015, depending on the case, and requireconstant monitoring. For this reason, <strong>Social</strong> <strong>Watch</strong>monitors several basic indicators which, independentlyof their participation in other indices, have theirown specific value and require independent attention.Global evolutionAlthough the number of countries which have regressed(15.9%) is greater than in 2008 (5%), morethan six in ten countries achieved slight (36.4% ofthe countries) or significant (27.2%) progress. In2008 barely 15.8% of the countries had shown anysignificant progress (Table 1).Polarization is, therefore, clearly present sinceaverage figures by indicator – with the exception oftertiary education (which has risen from 4% to 4.8%) –have fallen amongst the countries in the worst relativesituation and risen amongst those in the best relativesituation. On analyzing indicators which measure agreater educational level, it becomes clear that, from2008 to <strong>2009</strong>, both the condition and degree of the declinedeteriorate amongst countries in the worst situationand improve amongst those in the best relativesituation. The countries in the worst situation – whichare becoming fewer – show a lower level of educationalcoverage and those in the best situation – more andmore of them – display better levels of coverage. Inaddition, differences in indicators which measure thelower levels of instruction are emphasized amongstthe first, and in indicators which measure the higherlevels of instruction, amongst the second. Regardingthe rest of the indicators, the number of countriesranked in the worst relative situation has diminished,although not as significantly as the increase of thenumber of countries in the best relative situation 1 .Access by RegionThe regions in the best situation regarding the accessof their populations to education are led by NorthAmerica and Central Asia, with no countries below theaverage. Europe, with no countries in the worst relativesituation, does however have three countries belowthe 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 MiddleEast and North Africa, display a similar distribution:most of their countries are ranked above average1 It may be observed that between 2008 and <strong>2009</strong> the numberof countries covered by the indicators whose levels ofcoverage most clearly deteriorated (literacy between 15 and24 years of age, net enrolment rate in primary education, andchildren who reach 5 th grade) has dropped, while increasingfor all the rest (net enrolment rate for secondary educationand gross enrolment rate for tertiary education).CHART 1. Current situation of education by region (number of countries)TABLE 2. Averages by indicator of countries in better and worse relative educationalsituationsWorse relativesituationBetter relativesituationTotal302520151050East Asia &PacificEurope Latin AmericaCentralAsiaTABLE 1. Current situation according to evolution in education (number of countries)Literacy(15-24years, %)(67.5% and 80%, respectively) and the number ofcountries in the worst relative situation is marginal(2.5% and 5% respectively).On the other hand, in East Asia and the Pacific,countries in an intermediate situation are in the majority,although the balance is positive: nearly fourout of ten countries are in the worst relative situation(15.2%) or below average (24.2%), while six out often have ranked above average (36.4%) or in the bestrelative situation (24.2%).Worst relative situationBelow averageAbove averageBest relative situation& CaribbeanMiddle East& North Africaf e h d gWorse relative situation 7 1 22Below average 3 1 1 31Above average 10 2 3 42Better relative situation 21 8 2 6 35Total 41 12 3 9 130Primaryeducationenrolmentrate (net, %)South Asia Sub-SaharanChildrenwho reach5th grade(%)AfricaSecondaryeducationenrolment rate(net, %)NorthAmericaTertiaryeducationenrolment rate(gross, %)Average 51.2 56.7 56.3 21.5 4.8Number of countries 16 21 26 31 56Average 99.2 98.0 98.5 89.9 72.9Number of countries 61 70 51 52 34Average 88.5 88.4 84.4 64.8 30.6Number of countries 139 181 152 162 171In contrast, South Asia has no above averagecountries and seven out of ten countries are in the worstsituation or below average (20% and 50% respectively).It is thus the most polarized of all the regions.However, the worst situated of the geographicalareas is Sub-Saharan Africa, where nine out of tencountries are in the worst relative situation (59.6%)or below average (29.8%) and only one in ten hasachieved an above average ranking (6.4%) or bestpossible situation (4.3%). nMeasuring progress 184 <strong>Social</strong> <strong>Watch</strong>
INFORMATION, SCIENCE AND TECHNOLOGYThe gap is widening fasterReferencescurrent situation(latest available data)Better situationAbove averageBelow averageWorse situationrecent evolution (Between mostrecent and previous available data)g Significant progressd Slight progressh Stagnante Regressionf Major regressionComplete table at: www.socialwatch.org/statistics<strong>2009</strong>Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Internetusers(per 1,000people)Personalcomputers(per 1,000people)Telephonemainlines(per 1,000people)ICTexpenditure(% of GDP)R&D expenditure(% of GDP)Valueg Albania (96) 149 g 38 g 89 h 92g Algeria (96) 103 g 11 d 91 g 2.5 d 0.1 42f American Samoa (—) 168 f 168g Andorra (93) 718 g 455 f 587g Angola (58) 29 g 7 g 6 d 14g Antigua and Barbuda (94) 707 g 208 447 e 454g Argentina (98) 259 g 90 g 240 g 6 f 0.5 g 119g Armenia (95) 57 g 98 g 197 d 0.2 f 88Aruba (—) 238 99 383 240f Australia (99) 681 e 603 f 464 f 6.6 d 1.8 g 351g Austria (99) 674 g 607 h 410 f 5.6 d 2.5 g 340g Azerbaijan (96) 108 g 24 d 146 g 0.2 f 70f Bahamas (99) 362 g 124 401 f 296g Bahrain (99) 332 g 183 g 263 e 259g Bangladesh (56) 3 g 22 g 7 f 8 g 10f Barbados (98) 548 f 137 f 462 f 382f Belarus (100) 290 f 8 378 g 0.7 g 169g Belgium (98) 655 g 417 g 439 e 5.8 e 1.8 f 304e Belize (92) 105 f 148 g 112 e 122f Benin (77) 17 f 7 g 12 g 12f Bermuda (—) 750 g 225 f 904 d 0.1 g 470g Bhutan (79) 61 g 26 g 45 f 44g Bolivia (79) 105 g 24 d 71 h 5.8 g 0.3 g 41f Bosnia and Herzegovina (98) 280 g 64 282 g 209f Botswana (90) 53 g 48 g 73 e 0.4 44g Brazil (90) 352 g 161 g 206 f 5.8 f 0.8 f 145g Brunei Darussalam (99) 417 g 88 d 210 f 238g Bulgaria (97) 309 g 89 g 300 f 7.7 g 0.5 e 141g Burkina Faso (71) 6 g 6 g 7 e 0.2 g 5f Burma/Myanmar (73) 1 f 9 g 11 g 0.2 5g Burundi (61) 7 g 8 g 4 d 6g Cambodia (66) 5 g 4 g 3 g 0 3g Cameroon (77) 20 g 11 g 10 g 5 e 12g Canada (99) 728 g 943 g 553 e 6.4 g 2 d 446g Cape Verde (93) 70 g 130 g 138 e 113Cayman Islands (—) 411 918 665g Central African Republic (65) 3 g 3 d 3 g 3g Chad (44) 6 g 2 g 1 f 3g Chile (99) 311 g 141 h 208 e 4.2 f 0.7 g 133g China (95) 161 g 57 g 277 d 7.9 g 1.4 e 101g Colombia (94) 275 g 80 g 180 g 4.4 f 0.2 g 108g Comoros (79) 34 d 9 g 31 g 25g Congo DR (68) 4 g 0.5 2g Congo, Rep. (76) 19 g 5 g 4 g 9g Costa Rica (93) 336 231 322 3.9 0.4 h 179g Côte d'Ivoire (74) 16 g 17 g 14 e 16g Croatia (100) 447 g 180 f 416 e 0.9 f 261g Cuba (99) 116 g 36 g 93 g 0.5 f 61<strong>Social</strong> <strong>Watch</strong> 185 Information, science and technology
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Internetusers(per 1,000people)Personalcomputers(per 1,000people)Telephonemainlines(per 1,000people)ICTexpenditure(% of GDP)R&D expenditure(% of GDP)Valuef Cyprus (100) 380 f 383 g 449 f 0.4 g 303g Czech Republic (99) 483 g 274 g 233 f 7.1 e 1.5 g 200d Denmark (100) 807 g 549 f 517 f 5.8 e 2.4 f 376h Dijibouti (90) 13 d 24 h 13 e 17h Dominica (96) 366 d 182 h 293 h 280f Dominican Republic (87) 172 g 35 93 e 100g Ecuador (86) 132 g 130 g 135 d 6.1 g 0.1 g 81g Egypt (89) 140 g 49 g 149 g 5.8 g 0.2 g 69g El Salvador (80) 111 g 52 d 158 g 0.1 g 80g Equatorial Guinea (58) 16 g 19 g 21 g 19g Eritrea (60) 25 g 8 h 8 f 14g Estonia (99) 637 g 522 g 369 g 1.2 g 382g Ethiopia (53) 4 g 7 g 11 g 0.2 6g Faroe Islands (—) 775 g 464 g 620g Fiji (93) 96 g 61 g 146 g 101g Finland (100) 788 g 500 d 329 f 5.2 f 3.4 e 325g France (99) 512 g 652 g 564 e 5.7 f 2.1 e 347g French Polynesia (—) 286 g 110 h 207 h 201g Gabon (82) 62 g 36 g 20 f 39g Gambia (73) 59 g 33 g 45 g 46g Georgia (96) 82 g 54 g 126 f 0.2 f 66g Germany (99) 723 g 656 g 653 e 6.2 h 2.5 h 408g Ghana (76) 38 g 6 g 16 g 20g Greece (99) 329 g 94 g 537 f 5.4 g 0.5 g 193f Greenland (—) 916 g 408 f 0.7 442e Grenada (92) 218 g 153 d 262 f 211f Guam (—) 386 h 402 f 394g Guatemala (68) 101 g 21 g 104 d 75g Guinea (68) 5 f 5 h 5 g 5f Guinea-Bissau (58) 22 g 2 3 f 9g Guyana (84) 257 g 39 d 149 d 148g Haiti (48) 104 g 52 11 f 56g Honduras (82) 60 g 20 g 113 g 11.2 g 51g Hong Kong (—) 572 g 686 g 596 g 4.7 f 0.7 g 372g Hungary (99) 519 g 256 g 323 e 5.9 e 1 g 221f Iceland (98) 650 f 527 g 600 f 2.8 f 445g India (68) 72 g 33 g 35 f 5.6 f 0.7 f 29g Indonesia (85) 58 f 20 g 79 g 3.9 g 40g Iran (95) 324 g 106 e 336 g 3.5 g 0.6 f 154g Ireland (100) 561 g 582 g 484 h 5.9 g 1.3 g 327f Israel (99) 279 f 242 f 426 h 6.5 f 4.5 h 192g Italy (100) 539 g 367 h 456 g 5.8 g 1.1 e 274g Jamaica (95) 561 g 68 g 136 g 6.6 f 0.1 g 154f Japan (99) 690 d 407 f 401 f 7.2 f 3.4 g 302e Jordan (99) 197 g 67 g 102 f 9.3 g 0.3 75g Kazakhstan (99) 123 g 209 g 0.3 g 111g Kenya (71) 80 g 14 g 7 f 8.2 g 27e Kiribati (89) 21 d 11 g 43 f 25g Korea, DPR (87) 50 g 50d Korea, Rep. (100) 759 g 576 g 462 f 7.1 g 3.2 g 361g Kuwait (100) 338 g 237 h 199 e 4.5 g 0.2 h 156g Kyrgyzstan (95) 143 g 19 e 92 g 0.2 h 64g Lao PDR (58) 17 g 18 d 16 g 17g Latvia (99) 550 g 327 g 283 f 0.7 g 290g Lebanon (96) 383 g 104 d 170 f 219e Lesotho (72) 35 g 3 27 d 0.1 g 16g Liberia (61) 5 g 1 f 3g Libya (99) 43 g 22 f 144 g 70Measuring progress 186 <strong>Social</strong> <strong>Watch</strong>
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Internetusers(per 1,000people)Personalcomputers(per 1,000people)Telephonemainlines(per 1,000people)ICTexpenditure(% of GDP)R&D expenditure(% of GDP)Valueh Liechtenstein (—) 652 d 555 e 604g Lithuania (99) 492 g 183 g 237 d 0.8 g 228d Luxembourg (100) 758 g 673 g 517 e 1.5 f 487f Macau (—) 496 g 402 g 371 e 0.1 317g Macedonia (—) 273 g 368 g 228 f 24.8 g 223g Madagascar (59) 6 g 5 h 7 g 0.2 g 5g Malawi (62) 10 g 2 d 13 g 8g Malaysia (97) 557 g 231 g 164 e 6.8 h 0.6 f 192g Maldives (91) 108 g 200 g 108 g 139g Mali (67) 8 g 8 g 6 g 7g Malta (99) 447 g 229 g 562 g 0.5 g 310g Marshall Islands (93) 39 g 91 g 83 g 71g Mauritania (68) 10 g 46 g 13 e 23g Mauritius (99) 270 g 176 g 286 h 0.4 g 183Mayotte (—) 62 62g Mexico (95) 227 g 144 g 188 h 4 g 0.5 g 113f Micronesia (89) 135 g 55 78 f 89g Moldova (—) 184 g 111 g 284 g 0.8 h 145Monaco (—) 612 1049 831g Mongolia (93) 123 g 139 d 61 h 0.3 h 81Montenegro (94) 467 588 528g Morocco (81) 214 g 36 g 78 g 8.3 g 0.7 g 67g Mozambique (66) 9 g 14 g 3 f 0.5 f 7g Namibia (89) 49 g 240 g 66 d 118g Nepal (58) 14 g 5 g 25 g 15g Netherlands (100) 842 g 912 g 448 e 6.6 d 1.7 f 442e Netherlands Antilles (—) 11 e 449 e 230f New Caledonia (—) 335 d 171 248 g 251d New Zealand (98) 692 d 526 g 413 e 5.7 f 1.2 d 328h Nicaragua (70) 28 d 40 f 45 d 0 f 28g Niger (55) 3 g 1 g 2 g 2g Nigeria (56) 68 g 8 g 11 g 3.4 e 23g Norway (100) 848 g 629 g 423 f 4.4 f 1.5 f 381g Oman (98) 131 g 71 g 103 h 102g Pakistan (71) 108 g 5 g 30 f 5.6 f 0.4 g 30Palau (99) 273 370 322g Panama (93) 223 g 46 h 148 g 5.9 f 0.3 f 85f Papua New Guinea (62) 18 f 64 h 9 f 30g Paraguay (95) 87 g 78 h 64 g 0.1 h 57g Peru (88) 274 g 103 d 96 g 3.9 f 0.1 h 95g Philippines (78) 60 g 73 g 45 g 5.7 f 0.1 f 37g Poland (99) 440 g 169 f 271 f 6 g 0.6 d 177g Portugal (99) 401 g 172 g 395 e 5.7 g 0.8 d 195f Puerto Rico (—) 254 g 8 265 f 176g Qatar (95) 420 g 191 g 284 g 298g Romania (96) 239 g 192 g 198 e 5.3 g 0.5 g 127g Russia (99) 211 g 133 g 311 g 4.1 g 1.1 f 132g Rwanda (53) 11 g 3 2 f 5g Samoa (97) 44 g 23 g 109 g 59f San Marino (—) 510 e 800 f 689 f 666f São Tomé and Príncipe (83) 146 g 39 48 d 78f Saudi Arabia (95) 264 g 148 f 165 h 4.7 g 145e Senegal (68) 66 g 21 e 22 e 10.9 g 0.1 24g Serbia (98) 203 h 244 g 406 g 1.7 g 214g Seychelles (99) 376 g 212 g 267 g 0.4 g 214d Sierra Leone (57) 2 g 5 d 4g Singapore (92) 657 g 740 g 406 e 6.5 f 2.4 g 362g Slovakia (99) 559 g 514 g 213 e 6 g 0.5 f 259<strong>Social</strong> <strong>Watch</strong> 187 Information, science and technology
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Internetusers(per 1,000people)Personalcomputers(per 1,000people)Telephonemainlines(per 1,000people)ICTexpenditure(% of GDP)R&D expenditure(% of GDP)Valued Slovenia (99) 526 e 425 g 425 d 4.7 g 1.6 h 276g Solomon Islands (—) 17 g 47 d 16 d 27g Somalia (48) 11 h 9 g 11 f 10f South Africa (89) 83 f 85 h 97 e 9.7 e 0.9 g 55g Spain (100) 513 g 393 g 453 g 5.5 g 1.2 g 273g Sri Lanka (96) 39 g 37 g 137 g 6 g 0.2 g 44g St Kitts and Nevis (95) 307 g 234 h 532 h 358g St Lucia (98) 655 g 160 h 321 h 379g St Vincent and Grenadines (95) 474 g 138 d 191 d 0.2 h 201g Sudan (70) 91 g 112 g 9 f 0.3 h 53g Suriname (82) 96 g 44 e 179 h 106g Swaziland (80) 37 g 37 g 39 g 38d Sweden (100) 797 d 881 g 602 f 6.4 f 3.8 d 458g Switzerland (97) 763 g 918 g 653 f 8 d 2.9 g 469g Syria (95) 174 g 90 g 174 g 146g Tajikistan (89) 72 g 13 50 g 0.1 34Tanzania (73) 10 9 4 8g Thailand (96) 210 g 70 g 110 h 6.1 g 0.3 g 79Timor-Leste (56) 1 2 2g Togo (68) 50 d 30 h 15 g 32g Tonga (96) 82 g 59 g 206 g 116g Trinidad and Tobago (95) 160 g 132 g 231 f 0.1 f 131g Tunisia (95) 168 g 75 g 125 h 6 h 1 g 75f Turkey (92) 165 f 60 g 246 f 5.5 f 0.8 g 95g Turkmenistan (88) 14 g 72 92 g 59g Uganda (59) 25 g 17 g 5 g 0.2 f 12g Uklraine (99) 215 g 45 g 276 g 7.1 f 1 f 109g United Arab Emirates (100) 518 g 330 g 317 g 5.1 g 293g United Kingdom (99) 717 g 802 g 552 d 6.7 e 1.8 e 416d United States of America (98) 735 g 805 g 541 f 7.5 f 2.6 e 418g Uruguay (98) 291 g 136 d 290 e 6 f 0.3 g 145f US Virgin Islands (—) 277 h 28 660 d 322f Uzbekistan (93) 45 g 31 68 d 48g Vanuatu (87) 75 g 14 e 39 g 43g Venezuela (94) 208 g 93 g 188 g 3.9 g 0.2 f 99g Vietnam (93) 210 g 96 g 335 g 6.1 f 0.2 g 129g West Bank and Gaza (—) 96 g 56 g 94 e 82g Yemen (59) 14 g 28 g 45 g 29g Zambia (71) 42 g 11 g 8 e 0 f 15e Zimbabwe (77) 101 g 65 f 26 d 3.5 f 49NotE:1. Evolution: Evolution of indicators obtained by re-escalatingthose values resulting from the relative rate of variation amongthe following ranks:Minor than -5: significant regression; Between -5 and -1:regression; Between -1 and 1: stagnant; Between 1 a 5:slight progress; Larger than 5: significant progress.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results fromadding the values calculated for each dimension and dividingthe result by the total number of dimensions presenting data.3. Stagnant Evolution: In those indicators showing stagnantevolution in all their values, said evolution responds to lack ofupdating, being reproduced those values registered in 2008.Source: World Development Indicators <strong>2009</strong>, World Bank(www.worldbank.org).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Definition of indicators:Internet users (per 1,000 people): People with accessto the internet, per 1,000 people.Personal computers (per 1,000 people): Personalcomputers are self-contained computers designedto be used by a single individual, per 1,000 people.Telephone mainlines (per 1,000 people): Telephone linesconnecting a customer’s equipment to the public switchedtelephone network. Data are presented per 1,000 people forthe entire country.Information and communication technology expenditure (%of GDP): Includes external spending on information technology(‘tangible’ spending on information technology productspurchased by businesses, households, governments, andeducation institutions from vendors or organizations outsidethe purchasing entity), internal spending on informationtechnology (‘intangible’ spending on internally customizedsoftware, capital depreciation, and the like), and spending ontelecommunications and other office equipment. Expressed aspercentage of gross domestic product (GDP).Research and development expenditure (% of GDP):Expenditures for research and development are current andcapital expenditures (both public and private) on creative workundertaken systematically to increase knowledge, includingknowledge of humanity, culture, and society, and the use ofknowledge for new applications. R&D covers basic research,applied research, and experimental development. Expressed aspercentage of gross domestic product (GDP).Methodological notes and guidelines at, the end of the section.Measuring progress 188 <strong>Social</strong> <strong>Watch</strong>
INFORMATION, SCIENCEAND TECHNOLOGYThe gap is widening fasterike in the other indexes, the trend in InformationL and Communication Technologies is towardsincreasing polarisation – that is to say, the gap betweencountries and regions in the better and worserelative situations is continuing to widen. An examinationof the evolution of countries in terms of theirrelative situation (Table 1) shows those in the worserelative situation have plummeted and those in thebetter relative situation have risen appreciably.The proportion of people in the world who havebenefited from technological progress has variedsubstantially from one year to another. There hasalso been considerable variation in the proportionof resources different countries allocate to researchand development in terms of finance and public policies(Table 2).The biggest differences are in expenditureon Information and Communication Technologies(ICTs) and on Research and Development (R&D).Among the countries in the worse relative situationthis is expressed as a fall, and among those in thebetter relative situation this is expressed as a rise.In the countries in the worse relative situation averageexpenditure on ICTs decreased by around halffrom 2008 to <strong>2009</strong> (from an average of 5% of GDP to3.9%) and spending on R&D simply stopped (from0.3% of GDP in 2008 to 0% in <strong>2009</strong>). On the otherhand, in the countries in the better relative situationaverage expenditure on ICTs increased by 24.3%(from an average of 7% of GDP to an average of8.7%) and spending on R&D nearly quadrupled (witha net increase of 278.9%, it went from 1.9% of GDPin 2008 to 7.2% in <strong>2009</strong>).In the countries in the worse situation, thisevolution in expenditure was accompanied by aprocess of elitization in access to the various moderncommunication technologies. The number ofpeople with a telephone line (per 1000 inhabitants)fell by 157.8%, that is to say it decreased by nearlya third (from 58 to 22.5 per 1000 people from 2008to <strong>2009</strong>, so today it is 38.8% less than in 2008).The number of people with a personal computer fellby 31.1% (from 27 per 1000 inhabitants in 2008to 20.6 in <strong>2009</strong>). And now there are a third fewerInternet users than in 2008 (28.9% fewer, with areduction from 37 users per 1000 inhabitants to28.7).At the other end of the spectrum, in the countriesin the better relative situation, the effects of theabove-mentioned favourable evolution of expenditureare evident. In these countries today there are8.9% more people with telephone lines than in 2008(a rise from 517 per 1000 inhabitants to 562.9), andthere has been a 21.1% increase in the number ofpeople with a personal computer (from 535 per 1000inhabitants in 2008 to 678.4 in <strong>2009</strong>). In addition,CHART 1: Current ICT situation by regions (number of countries)454035302520151050East Asia &PacificEurope Latin AmericaCentralAsiaTABLE 1. Current situation by ICT evolution (number of countries)TABLE 2. Averages by indicator for countries in worse and better ICT situationInternetusers(per 1,000people)there has been a relative increase 1 of 23.1% over2008 in the number of Internet users (from 514 per1000 people to 668.8).There is a stark contrast between countries atthe bottom of the scale, where only 3% to 5% of thepopulation have access to information communicationtools, and the countries at the top, where between 56%and 68% have access. If the generalised use of newtechnologies, particularly those that permit horizontal,symmetrical communication with the rest of the world,are factors that promote and underpin the rights of “informationcitizens”, these vast differences reflect theincreasing polarisation, and therefore for some populationsincreasing exclusion, in the modern world.Access by regionsThe regions that are best positioned in this dimensionare North America, where there are no countriesbelow the average, and Europe, where no countrieshave remained in a worse relative situation although1 In this case the word “increase” refers to the rate of relativevariation between the values considered.Worst relative situationBelow averageAbove averageBest relative situation& CaribbeanMiddle East& North Africaf e h d g TotalWorse relative situation 5 2 48 55Below average 11 2 1 2 28 44Above average 7 1 5 16 29Better relative situation 7 4 2 1 54 68Total 30 8 4 8 146 196Personalcomputers(per 1,000people)South Asia Sub-SaharanTelephonelines(per 1,000people)Expenditureon ICTs(% of GDP)NorthAmericaExpenditureon R & D(% of GDP)Worse relative Average 28.7 20.6 22.5 3.9 0.0situation Number of countries 68 77 67 17 46Better relative Average 668.8 678.4 562.9 8.7 7.2situation Number of countries 41 23 35 11 6TotalAverage 258.8 167.9 217.2 6.0 1.1Number of countries 201 186 203 74 107Africa6 are below the average (and 21 above average and19 in a better relative situation).The distribution in Latin America and the Caribbeanis similar to that in the Middle East and NorthAfrica region. Most of these countries are in the intermediatesituation (71.8% and 84.2%, respectively)and the proportion of countries in the worse situationis relatively small (12.8% and 15.8%, respectively).East Asia and the Pacific, on the other hand, is themost heterogeneous region, but the balance is clearlynegative: 35.3% of the countries are in a worse relativesituation, 23.5% are below average, 26.5% are aboveaverage and only 14.7% are in a better relative situation.This contrasts with South Asia, where no countriesare above the average or in a better relative situationand 85.7% are in a worse situation.But the geographical region in the worst situationis sub-Saharan Africa, where not only there areno countries in a better relative situation but nearlynine tenths of the countries (87.5%) are in the worserelative situation. Moreover, 8.3% are below the averageand only 4.2% are above average. n<strong>Social</strong> <strong>Watch</strong> 189 Information, science and technology
DEVELOPMENT ASSISTANCECommitments undertaken are further and further awayfrom being fulfilledTRENDS IN OFFICIAL DEVELOPMENT ASSISTANCE (% OF GNI) ANet Official Development Assistance from DAC Countries and Multilateral Organizations to Developing Countries1989-1990 1994-1995AVERAGE B AVERAGE2000 2001 2002 2003 2004 2005 2006 2007 2008Australia 0.36 0.34 0.27 0.25 0.26 0.25 0.25 0.25 0.30 0.32 0.34Austria 0.16 0.22 0.23 0.34 0.26 0.20 0.23 0.52 0.47 0.50 0.42Belgium 0.46 0.35 0.36 0.37 0.43 0.60 0.41 0.53 0.50 0.43 0.47Canada 0.44 0.40 0.25 0.22 0.28 0.24 0.27 0.34 0.29 0.29 0.32Czech Republic 0.03 0.05 0.07 0.11 0.11 0.11 0.12 0.11 0.11Denmark 0.94 0.99 1.06 1.03 0.96 0.84 0.85 0.81 0.80 0.81 0.82Finland 0.64 0.31 0.31 0.32 0.35 0.35 0.37 0.46 0.40 0.39 0.43France 0.60 0.58 0.30 0.31 0.37 0.40 0.41 0.47 0.47 0.38 0.39Germany 0.42 0.32 0.27 0.27 0.27 0.28 0.28 0.36 0.36 0.37 0.38Greece — — 0.20 0.17 0.21 0.21 0.16 0.17 0.17 0.16 0.20Hungary — — — — — 0.03 0.07 0.11 0.13 0.08 0.07Iceland — — 0.1 0.13 0.15 0.17 0.18 0.18 0.27 0.27 —Ireland 0.16 0.27 0.29 0.33 0.40 0.39 0.39 0.42 0.54 0.55 0.58Italy 0.36 0.21 0.13 0.15 0.20 0.17 0.15 0.29 0.20 0.19 0.20Japan 0.31 0.28 0.28 0.23 0.23 0.20 0.19 0.28 0.25 0.17 0.18Korea, Rep. — — 0.04 0.06 0.05 0.06 0.06 0.10 0.05 0.07 0.09Luxembourg 0.20 0.38 0.71 0.76 0.77 0.81 0.83 0.86 0.90 0.91 0.92Netherlands 0.93 0.79 0.84 0.82 0.81 0.80 0.73 0.82 0.81 0.81 0.80New Zealand 0.22 0.23 0.25 0.25 0.22 0.23 0.23 0.27 0.27 0.27 0.30Norway 1.11 0.94 0.76 0.80 0.89 0.92 0.87 0.94 0.89 0.95 0.88Poland — — 0.02 0.02 — 0.01 0.05 0.07 0.09 0.10 0.08Portugal 0.24 0.29 0.26 0.25 0.27 0.22 0.63 0.21 0.21 0.22 0.27Slovakia — — 0.03 0.04 0.02 0.05 0.07 0.12 0.10 0.09 0.10Spain 0.17 0.26 0.22 0.30 0.26 0.23 0.24 0.27 0.32 0.37 0.43Sweden 0.93 0.86 0.80 0.77 0.84 0.79 0.78 0.94 1.02 0.93 0.98Switzerland 0.31 0.35 0.34 0.34 0.32 0.39 0.41 0.44 0.39 0.37 0.41Thailand — — — — — — — — 0.04 — —Turkey — — 0.04 0.04 0.04 0.04 0.11 0.17 0.18 0.09 —United Kingdom 0.29 0.30 0.32 0.32 0.31 0.34 0.36 0.47 0.51 0.35 0.43United States of America 0.18 0.12 0.10 0.11 0.13 0.15 0.17 0.23 0.18 0.16 0.18Total DAC 0.32 0.28 0.22 0.22 0.23 0.25 0.26 0.33 0.31 0.28 0.30Notes: A: Net disbursements at current prices andexchange rates.B: Including debt forgiveness of non-ODAclaims in 1990, except for total DAC.Source:OECD, Website Database (www.oecd.org);August <strong>2009</strong>.Official Development Assistance (% of GNI): Grants orloans to countries and territories on Part I of the DAC Listof Aid Recipients (developing countries) which are: (a)undertaken by the official sector; (b) with promotion ofeconomic development and welfare as the main objective;(c) at concessional financial terms (if a loan, having a GrantElement [q.v.] of at least 25%). In addition to financial flows,Technical Co-operation q.v. is included in aid. Grants, loansand credits for military purposes are excluded. Transferpayments to private individuals (e.g. pensions, reparations orinsurance payouts) are in general not counted. Expressed aspercentage of gross national income (GNI).ince the 1970s developed countries have undertakento devote a fixed amount to Official De-Svelopment Assistance (ODA), a commitment whichwas ratified with the final declaration of the WorldSummit for <strong>Social</strong> Development, held in Copenhagenin 1995. Official Development Assistance was set as apercentage (0.7%) of Gross National Product (GNP)of the donor countries of the OECD’s DAC. In addition,within the framework of the Millennium DevelopmentGoals it was proposed to foster a world associationfor development, upholding the commitment of themore developed countries to provide financial assistance,as well as the responsibility of the receivingcountries to allocate this assistance to social development,and particularly to the reduction of poverty.In 2008 international aid amounted to 0.28% ofthe gross national product of donor countries, confirmingthe decreasing tendency of the last few yearsand thus moving even further away from meetingthe commitments undertaken. Denmark, Norway,Sweden, the Netherlands and Luxembourg are theonly countries which have met the United Nations’target, and exceeded the goal of 0.7% of gross nationalproduct.Some specific casesWhereas Sweden (albeit greatly removed from thecountry following it), Denmark, Luxembourg andIreland increased their commitment (incrementalrates of 5.1%, 1.2%, 1.1% and 5.2% respectively),the Netherlands and Norway reduced theirassistance in 2008 (incremental rates of -1.3%and -8%, respectively). The countries which mostincreased their net assistance included the UnitedKingdom, Spain, Portugal, Belgium, Finland andSwitzerland.At all events, the countries with the highest relativerate of increase were the Republic of Korea andGreece, which increased their rate from 0.07% to0.09% and from 0.16% to 0.2%, thus achieving incrementalrates of 22.2% and 20%, respectively.On the other hand, Poland, Austria and Hungarywere the countries which most reduced their assistance;from 0.1% to 0.8%, from 0.5% to 0.42%, andfrom 0.08% to 0.07% respectively; that is, incrementalrates of -25%, -19% and -14.3% respectively.Countries such as Norway and Austria shouldbe carefully watched, since within the fluctuatingframework of their very significant yearly contributions,they are nonetheless tending towards a verynoteworthy reduction of assistance. nMeasuring progress 190 <strong>Social</strong> <strong>Watch</strong>
water and sanitationThe fastest breachReferencescurrent situation(latest available data)Better situationAbove averageBelow averageWorse situationrecent evolution (Between mostrecent and previous available data)g Significant progressd Slight progressh Stagnante Regressionf Major regressionComplete table at: www.socialwatch.org/statistics<strong>2009</strong>Summary:currentsituation(colour)Recentevolution(arrow-icon)Countries(Basic CapabilitiesIndex value, 0-100)Populationwithaccess tosanitation(%)Populationwithaccess toimprovedwatersources(%)Valuef Afghanistan (47) 30 f 22 h 26d Albania (96) 97 g 97 h 97d Algeria (96) 94 d 85 h 90American Samoa (—) 100 100h Andorra (93) 100 h 100 h 100g Angola (58) 50 g 51 h 51f Anguila (—) 60 h 60e Antigua and Barbuda (94) 91 h 91h Argentina (98) 91 h 96 h 94g Armenia (95) 98 h 98h Aruba (—) 100 h 100h Australia (99) 100 h 100 h 100h Austria (99) 100 h 100 h 100g Azerbaijan (96) 80 g 78 h 79h Bahamas (99) 100 h 97 h 99e Bangladesh (56) 36 f 80 h 58h Barbados (98) 99 h 100 h 100d Belarus (100) 93 g 100 h 97g Belize (92) 91 h 91e Benin (77) 30 f 65 h 48f Bhutan (79) 52 f 81 h 67e Bolivia (79) 43 f 86 h 65h Bosnia and Herzegovina (98) 95 h 99 h 97d Botswana (90) 47 g 96 h 72d Brazil (90) 77 d 91 h 84h Bulgaria (97) 99 h 99 h 99h Burkina Faso (71) 13 h 72 h 43d Burma/Myanmar (73) 82 g 80 h 81d Burundi (61) 41 g 71 h 56g Cambodia (66) 28 g 65 h 47h Cameroon (77) 51 h 70 h 61h Canada (99) 100 h 100 h 100g Cape Verde (93) 80 h 80d Central African Republic (65) 31 g 66 h 49h Chad (44) 9 h 48 h 29d Chile (99) 94 d 95 h 95g China (95) 65 g 88 h 77e Colombia (94) 78 f 93 h 86d Comoros (79) 35 g 85 h 60d Congo DR (68) 31 d 46 h 39f Congo, Rep. (76) 20 f 71 h 46h Cook Islands (98) 100 h 95 h 98d Costa Rica (93) 96 d 98 h 97f Côte d'Ivoire (74) 24 f 81 h 53h Croatia (100) 99 h 99 h 99h Cuba (99) 98 h 91 h 95h Cyprus (100) 100 h 100 h 100h Czech Republic (99) 99 d 100 h 100h Denmark (100) 100 100 h 100f Dijibouti (90) 67 f 92 h 80Summary:currentsituation(colour)Recentevolution(arrow-icon)Countries(Basic CapabilitiesIndex value, 0-100)Populationwithaccess tosanitation(%)Populationwithaccess toimprovedwatersources(%)Valueg Dominica (96) 97 h 97h Dominican Republic (87) 79 d 95 h 87e Ecuador (86) 84 f 95 h 90e Egypt (89) 66 f 98 h 82g El Salvador (80) 86 g 84 h 85e Equatorial Guinea (58) 51 e 43 h 47f Eritrea (60) 5 f 60 h 33e Estonia (99) 95 e 100 h 98e Ethiopia (53) 11 f 42 h 27h Fiji (93) 71 e 47 h 59h Finland (100) 100 h 100 h 100h France (99) 100 h 100d French Guiana (41) 84 h 84d French Polynesia (—) 100 h 100h Gabon (82) 36 h 87 h 62h Gambia (73) 52 e 86 h 69h Georgia (96) 93 e 99 h 96h Germany (99) 100 h 100 h 100f Ghana (76) 10 f 80 h 45h Greece (99) 98 100 h 99h Grenada (92) 97 d 95 h 96g Guadalupe (—) 98 h 98h Guam (—) 100 h 100e Guatemala (68) 84 e 96 h 90d Guinea (68) 19 g 70 h 45e Guinea-Bissau (58) 33 f 57 h 45g Guyana (84) 81 g 93 h 87f Haiti (48) 19 f 58 h 39e Honduras (82) 66 e 84 h 75d Hungary (99) 100 g 100 h 100h Iceland (98) 100 h 100 h 100e India (68) 28 f 89 h 59e Indonesia (85) 52 f 80 h 66e Iraq (88) 76 e 77 h 77g Iran (95) 94 h 94h Israel (99) 100 h 100d Jamaica (95) 83 d 93 h 88h Japan (99) 100 h 100 h 100e Jordan (99) 85 f 98 h 92g Kazakhstan (99) 97 g 96 h 97h Kenya (71) 42 e 57 h 50f Kiribati (89) 33 f 33g Korea, DPR (87) 100 h 100h Korea, Rep. (100) 92 h 92g Kyrgyzstan (95) 93 g 89 h 91g Lao PDR (58) 48 g 60 h 54h Latvia (99) 78 h 99 h 89d Lebanon (96) 100 h 100h Lesotho (72) 36 e 78 h 57g Liberia (61) 64 h 64<strong>Social</strong> <strong>Watch</strong> 191 Water and sanitation
Summary:currentsituation(colour)Recentevolution(arrow-icon)Countries(Basic CapabilitiesIndex value, 0-100)Populationwithaccess tosanitation(%)Populationwithaccess toimprovedwatersources(%)Valueh Libya (99) 97 h 71 h 84h Luxembourg (100) 100 100 h 100f Macedonia (—) 89 100 h 95f Madagascar (59) 12 f 47 h 30h Malawi (62) 60 e 76 h 68h Malaysia (97) 94 h 99 h 97h Maldives (91) 59 h 83 h 71h Mali (67) 45 e 60 h 53h Malta (99) 100 h 100d Marshall Islands (93) 87 h 87f Mauritania (68) 24 f 60 h 42h Mauritius (99) 94 h 100 h 97d Mexico (95) 81 d 95 h 88e Micronesia (89) 25 f 94 h 60g Moldova (—) 79 g 90 h 85h Monaco (—) 100 h 100f Mongolia (93) 50 f 72 h 61e Montenegro (94) 91 98 h 95h Montserrat (92) 100 h 100h Morocco (81) 72 e 83 h 78e Mozambique (66) 31 e 42 h 37g Namibia (89) 35 g 93 h 64f Nepal (58) 27 f 89 h 58h Netherlands (100) 100 h 100 h 100h New Zealand (98) 97 h 97h Nicaragua (70) 48 d 79 h 64f Niger (55) 7 f 42 h 25f Nigeria (56) 30 f 47 h 39h Niue (98) 100 h 100 h 100d Northern Mariana Islands (—) 99 h 99h Norway (100) 100 h 100e Oman (98) 82 h 82h Pakistan (71) 58 e 90 h 74f Palau (99) 67 f 89 h 78h Panama (93) 74 d 92 h 83d Papua New Guinea (62) 45 d 40 h 43f Paraguay (95) 70 f 77 h 74g Peru (88) 72 g 84 h 78d Philippines (78) 78 g 93 h 86h Portugal (99) 99 99 h 99h Qatar (95) 100 h 100 h 100f Romania (96) 72 88 h 80h Russia (99) 87 h 97 h 92f Rwanda (53) 23 f 65 h 44f Samoa (97) 88 h 88h São Tomé and Príncipe (83) 24 e 86 h 55h Saudi Arabia (95) 93 h 93f Senegal (68) 28 f 77 h 53Summary:currentsituation(colour)Recentevolution(arrow-icon)Countries(Basic CapabilitiesIndex value, 0-100)Populationwithaccess tosanitation(%)Populationwithaccess toimprovedwatersources(%)Valuee Serbia (98) 92 99 h 96h Seychelles (99) 88 h 88f Sierra Leone (57) 11 f 53 h 32h Singapore (92) 100 h 100h Slovakia (99) 100 d 100 h 100h Solomon Islands (—) 32 d 70 h 51f Somalia (48) 23 f 29 h 26e South Africa (89) 59 f 93 h 76h Spain (100) 100 h 100 h 100e Sri Lanka (96) 86 f 82 h 84h St Kitts and Nevis (95) 96 d 99 h 98d St Lucia (98) 98 h 98g Sudan (70) 35 g 70 h 53f Suriname (82) 82 f 92 h 87d Swaziland (80) 50 d 60 h 55h Sweden (100) 100 h 100 h 100h Switzerland (97) 100 h 100 h 100d Syria (95) 92 d 89 h 91g Tajikistan (89) 92 g 67 h 80f Tanzania (73) 33 f 55 h 44e Thailand (96) 96 e 98 h 97g Timor-Leste (56) 41 g 62 h 52f Togo (68) 12 f 59 h 36g Tokelau (—) 88 h 88h Tonga (96) 96 h 100 h 98e Trinidad and Tobago (95) 92 f 94 h 93h Tunisia (95) 85 h 94 h 90h Turkey (92) 88 h 97 h 93g Turkmenistan (88) 72 h 72d Turks and Caicos Islands (—) 100 h 100h Tuvalu (89) 89 e 93 h 91f Uganda (59) 33 f 64 h 49h UK Virgin Islands (—) 100 h 100e Uklraine (99) 93 e 97 h 95e United Arab Emirates (100) 97 100 h 99h United Kingdom (99) 100 h 100h United States of America (98) 100 h 99 h 100h Uruguay (98) 100 h 100 h 100g Uzbekistan (93) 96 g 88 h 92g Vanuatu (87) 60 h 60g Venezuela (94) 83 h 83d Vietnam (93) 65 g 92 h 79g Wallis and Futuna (0) 100 h 100d West Bank and Gaza (—) 80 g 92 h 86d Yemen (59) 46 g 66 h 56e Zambia (71) 52 f 58 h 55f Zimbabwe (77) 46 f 81 h 64NotE: 1. Evolution: Evolution of indicators obtained byre-escalating those values resulting from the relative rate ofvariation among the following ranks:Minor than -5: significant regression; Between -5 and -1:regression; Between -1 and 1: stagnant; Between 1 a 5:slight progress; Larger than 5: significant progress.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results from addingthe values calculated for each dimension and dividing theresult by the total number of dimensions presenting data.3. Stagnant Evolution: In those indicators showing stagnantevolution in all their values, said evolution responds to lack ofupdating, being reproduced those values registered in 2008.Source: World Development Indicators <strong>2009</strong>, World Bank(www.worldbank.org).Definition of indicators:Population with access to sanitation (%): Percentage of the population with at leastadequate excreta disposal facilities (private or shared, but not public) that can effectivelyprevent human, animal, and insect contact with excreta. Improved facilities range fromsimple but protected pit latrines to flush toilets with a sewerage connection. To be effective,facilities must be correctly constructed and properly maintained.Population with access to improved water sources (%): Percentage of the populationwho use any of the following types of water supply for drinking: piped water, public tap,borehole or pump, protected well, protected spring or rainwater. Improved water sources donot include vendor provided waters, bottled water, tanker trucks or unprotected wells andsprings.For more detailed information on the reference years of the data see complete tables at: www.socialwatch.org/statistics<strong>2009</strong>Measuring progress 192 <strong>Social</strong> <strong>Watch</strong>
WATER AND SANITATIONThe fastest breachccording to WHO, in 2000 1.1 billion peopleA (17% of the world’s population) lacked accessto an improved water supply. Nearly two-thirds ofthese people live in Asia. In Sub-Saharan Africa, atpresent four out of ten persons lack access to animproved water supply. In 2002, there were 2.6 billionpeople who lacked improved sanitation services.Nearly 1.5 billion of them lived in China and India. InSub-Saharan Africa, only 36% had access to theseservices. These deficiencies are closely linked todiseases such as diarrhoea, malaria, ascariasis, trichuriasis,anchylostomiasis 1 and hepatitis A.In addition, they are related to the existence ofwater sources which are contaminated with arsenicand fluoride. All of which implies the need to redoublefocalized efforts to detect alternative sources ofwater and/or to implement procedures and technologycapable of extracting them and guaranteeinghealthy levels for human consumption. 2In short, these are essential aspects if sustainabledevelopment is to be guaranteed, since they involvebasic conditions of existence and health. This is notonly because the preservation of life is involved, initself a sufficient end which cannot be delayed, but alsobecause it involves the degree to which individual capabilitiesand the conditions for existence are affected.Together with malnutrition, water contamination leadsto the alteration and reduction of the physical and cognitivecapacity of large sectors of the population.In general terms, deficiencies in water andsanitation no longer affect every region in the world.There are no countries either in Europe or in NorthAmerica situated beneath the world average. In fact,the vast majority are situated in the best relative position,whereas in Sub-Saharan Africa and in SouthAsia nine out of ten countries are ranked below theworld average.Countries in East Asia and the Pacific, LatinAmerica and the Caribbean, the Middle East andNorth Africa, and Central Asia show similar results.In the first place they mostly tend to be above theworld average (63.9%, 81.6%, 83.3% and 88.9%,respectively). In addition, some of the countries inthese regions have managed to achieve places in thebest relative position: 36.8% in Latin America andthe Caribbean, 27.8% in the Middle East and NorthAfrica, 22.2% in East Asia and the Pacific, and 21.7%in Central Asia.1 Nearly 2 million people die every year due to diarrhoealdiseases – including cholera – 1.3 million die from malaria(in both cases 90% are children below the age of five) and133 million suffer from intestinal helminthiasis with seriousconsequences resulting in some 9,400 deaths per year(source: “Water, Sanitation and Health”, WHO. Availableat: .2 The principal mitigation strategies consist in the exploitationof deepseated water, using freshwater sources, buildingreservoirs and extracting harmful elements (source: “Water,sanitation and health”, WHO.CHART 1. Current Water and Sanitation Situation (number of countries)4035302520151050CentralAsiaEast Asia &PacificEurope Latin AmericaTABLE 1. Current situation according to evolution of water and sanitation coverage(number of countries)Special casesFour of the countries in the worst situation are Niger,Ethiopia, Eritrea and Ghana – not necessarilybecause of their position in the Water and SanitationIndex, but because of the relative values ofeach of their indicators and their recent evolution.These are countries which have suffered serious(Niger, Eritrea and Ghana) or slight (Ethiopia) regression.Some of them have also undergone veryrapid demographic evolution: Niger increased itspopulation from 7.7 million in 1990 to 10.1 millionin 2000 and 14.2 in 2007; Ethiopia, from 53.5million in 1994 to 73.9 in 2000 and 83.5 millionin 2008; Ghana, from 17 million in 1995 to 18.4million in 2005 and 23.5 million in 2007 (Eritreahas 4.9 million inhabitants but there is no data onpopulation evolution). 3Beyond these similarities, two different situationsshould be noted. Niger and Ethiopia have3 Statistical information published by UNESCO’s Institutefor Statistics (UIS) in: .& CaribbeanMiddle East& North AfricaWorst relative situationBelow averageAbove averageBest relative situationNorthAmericaSouth Asia Sub-Saharanf e h d g TotalWorse relative situation 18 5 5 4 4 36Below average 7 9 11 5 7 39Above average 4 9 12 11 11 47Better relative situation 1 6 48 10 7 72Total 30 29 76 30 29 194TABLE 2. Averages by indicator in countries with worst and best water and sanitation coverageWorse relativesituationBetter relativesituationTotalPopulation with accessto sanitation (%)AfricaPopulation with access toimproved water supply (%)Average 24.7 53.0Number of countries 39 33Average 97.5 99.1Number of countries 55 75Average 67.3 84.9Number of countries 156 193under gone a significant drop regarding populationwith sanitation services between 2008 and <strong>2009</strong>(from 13% to 7%, and from 13% to 11%, respectively).In both cases, in a situation which was alreadyalarming, now only 42% of the population has accessto water from improved sources. These aremainly agricultural countries, with a life expectancyof 56 and 52 years and a rural population of 83% and84% respectively.The cases of Eritrea and Ghana are somewhatdifferent. They are also basically agricultural countries,but they also have rich mineral resources(Ghana particularly, has gold, diamonds and manganesedeposits). In both countries life expectancyis higher (57 and 60 years, respectively) and thereis a relatively smaller rural population, particularly inGhana. In both countries most of the population hasaccess to improved water sources (60% in Eritreaand 80% in Ghana).Most countries are stagnant intheir coverage of these services; although servicesreached acceptable levels, many countries are stagnantin a scenario of rigid limitations to the access ofdrinkable water and sanitation. n<strong>Social</strong> <strong>Watch</strong> 193 Water and sanitation
HEALTHUnequal improvementReferencescurrent situation(latest available data)Better situationAbove averageBelow averageWorse situationrecent evolution (Between mostrecent and previous available data)g Significant progressd Slight progressh Stagnante Regressionf Major regressionComplete table at: www.socialwatch.org/statistics<strong>2009</strong>Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Tuberculosis(casesper 100,000people)Peoplelivingwith HIV/AIDS(15-49 years old, %)Infantmortality(per 1,000live births)Under-5mortality(per 1,000live births)Valuef Afghanistan (47) 168.3 g 165 h 254 d 196g Albania (96) 16.9 g 13 g 16 g 15d Algeria (96) 56.6 e 0.1 f 33 h 34 g 31American Samoa (—) 5 5f Andorra (93) 18.9 f 3 h 3 h 8g Angola (58) 286.5 g 2.1 g 116 g 243 g 162g Antigua and Barbuda (94) 5.5 10 h 10 g 9g Argentina (98) 30.8 g 0.5 f 15 f 15 g 15g Armenia (95) 72.3 g 0.1 g 22 e 21 g 29g Australia (99) 6.2 g 0.2 f 5 h 5 g 4f Austria (99) 12.4 f 0.2 f 4 h 4 g 5g Azerbaijan (96) 77.1 g 0.2 f 34 g 84 d 49e Bahamas (99) 44.2 f 3 f 12 g 12 g 18g Bahrain (99) 40.5 g 9 h 11 f 20g Bangladesh (56) 222.5 g 47 g 65 g 112g Barbados (98) 3.6 g 1.2 d 11 h 12 h 7g Belarus (100) 61 g 0.2 g 12 h 7 g 20f Belgium (98) 11.8 f 0.2 f 4 h 5 f 5g Belize (92) 40 g 2.1 h 22 f 14 g 20g Benin (77) 90.9 g 1.2 g 78 g 149 h 80Bermuda (—) 3.7 4f Bhutan (79) 246 f 0.1 f 56 g 65 g 92g Bolivia (79) 154.6 g 0.2 f 48 d 60 d 66g Bosnia and Herzegovina (98) 51.1 g 0.1 f 13 h 12 g 19f Botswana (90) 731.4 f 23.9 e 33 g 119 d 227g Brazil (90) 48 g 0.6 f 20 f 18 g 22g Brunei Darussalam (99) 59 g 8 h 8 g 25f Bulgaria (97) 38.8 g 10 g 12 g 20g Burkina Faso (71) 226.2 g 1.6 g 104 g 203 h 134h Burma/Myanmar (73) 170.9 e 0.7 g 74 h 104 h 87g Burundi (61) 367 g 2 g 108 h 175 d 163g Cambodia (66) 495.1 g 0.8 g 70 f 75 g 160g Cameroon (77) 191.7 g 5.1 e 87 h 142 d 106e Canada (99) 5.1 f 0.4 f 5 h 5 g 4g Cape Verde (93) 150.5 g 24 d 32 g 69Cayman Islands (—) 3.7 4g Central African Republic (65) 345.1 g 6.3 g 113 d 174 h 160g Chad (44) 298.7 g 3.5 f 124 h 204 d 158g Chile (99) 12.3 g 0.3 f 8 h 8 g 7g China (95) 98.3 g 0.1 f 19 d 27 f 36g Colombia (94) 35.4 g 0.6 f 17 h 17 g 18g Comoros (79) 42 g 0.1 g 49 d 63 g 39g Congo DR (68) 391.7 g 108 g 193 g 231g Congo, Rep. (76) 403.1 g 3.5 g 79 h 121 d 152g Cook Islands (98) 16 h 16g Costa Rica (93) 11 g 0.4 f 10 g 11 g 8g Côte d'Ivoire (74) 420.5 g 3.9 g 89 d 106 g 155g Croatia (100) 40.3 g 0.1 f 5 h 6 h 13People living with HIV/AIDS: World Bank(www.worldbank.org)Under-5 mortality: UNICEF (www.unicef.org/sowc09).Tuberculosis: World Bank (www.worldbank.org).Infant mortality: UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Sources:Measuring progress 194 <strong>Social</strong> <strong>Watch</strong>
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Tuberculosis(casesper 100,000people)Peoplelivingwith HIV/AIDS(15-49 years old, %)Infantmortality(per 1,000live births)Under-5mortality(per 1,000live births)Valueg Cuba (99) 6.4 g 0.1 f 5 h 6 g 4g Cyprus (100) 4.9 g 3 h 3 g 4f Czech Republic (99) 8.8 g 3 h 4 h 5e Denmark (100) 8.1 f 0.2 f 4 h 4 g 4g Dijibouti (90) 812.5 g 3.1 e 84 d 112 g 253g Dominica (96) 13.3 g 9 g 14 g 12g Dominican Republic (87) 69.3 g 1.1 f 31 f 29 h 33g Ecuador (86) 101.3 g 0.3 f 20 d 21 g 36f Egypt (89) 21 g 30 e 33 g 28g El Salvador (80) 39.6 g 0.8 e 21 d 23 g 21g Equatorial Guinea (58) 255.9 g 3.4 f 124 h 206 h 147g Eritrea (60) 95.4 g 1.3 g 46 d 68 g 53g Estonia (99) 38.1 d 1.3 f 4 g 4 g 12g Ethiopia (53) 378.2 g 2.1 g 75 d 113 g 142g Fiji (93) 20.7 g 0.1 g 16 h 17 g 13f Finland (100) 5.9 f 0.1 f 3 h 3 g 3f France (99) 13.9 f 0.4 f 4 h 4 h 6French Polynesia (—) 27.1 27g Gabon (82) 406.4 g 5.9 g 60 h 80 g 138g Gambia (73) 258.4 g 0.9 g 82 d 106 g 112d Georgia (96) 84.3 h 0.1 g 27 d 31 d 36f Germany (99) 5.9 f 0.1 f 4 h 4 h 4g Ghana (76) 202.9 g 1.9 g 73 d 118 d 99f Greece (99) 17.8 f 0.2 f 4 h 4 h 7g Grenada (92) 4.2 g 0.4 15 g 16 g 9Guam (—) 34 34g Guatemala (68) 63.5 g 0.8 d 29 g 41 h 34g Guinea (68) 287.4 g 1.6 f 93 g 161 h 136g Guinea-Bissau (58) 219.9 g 1.8 g 118 h 200 h 135g Guyana (84) 121.8 g 2.5 f 45 d 62 h 58g Haiti (48) 305.6 g 2.2 g 57 d 80 h 111g Honduras (82) 59.4 g 0.7 g 20 g 27 h 27Hong Kong (—) 61.9 62g Hungary (99) 16.7 g 0.1 f 6 h 7 h 7e Iceland (98) 3.6 f 0.2 g 2 h 3 h 2g India (68) 167.8 g 0.3 g 54 g 76 h 75g Indonesia (85) 228 g 0.2 f 25 d 34 h 72g Iraq (88) 56 g 36 d 47 e 46g Iran (95) 21.7 g 0.2 f 29 d 35 e 21f Ireland (100) 13.2 f 0.2 f 4 h 4 g 5g Israel (99) 7.5 f 0.1 4 h 5 h 4e Italy (100) 7.4 f 0.4 f 3 g 4 h 4h Jamaica (95) 6.5 g 1.6 f 26 h 32 e 17e Japan (99) 21.1 g 3 h 4 h 9e Jordan (99) 7.4 f 21 h 25 h 18g Kazakhstan (99) 129 g 0.1 d 28 f 29 h 47f Kenya (71) 352.6 f 80 e 121 h 185g Kiribati (89) 365.1 g 46 d 64 h 158f Korea, DPR (87) 344.4 f 42 h 53 146g Korea, Rep. (100) 89.6 g 0.1 f 4 g 31d Kuwait (100) 23.6 g 9 h 11 h 15g Kyrgyzstan (95) 121.3 g 0.1 g 34 g 41 h 49g Lao PDR (58) 151.1 g 0.2 f 56 g 75 h 71g Latvia (99) 53 g 0.8 f 7 g 9 h 17f Lebanon (96) 18.6 f 0.1 g 26 h 31 e 19f Lesotho (72) 636.6 f 23.2 e 68 g 132 h 215g Liberia (61) 277.1 g 1.7 93 g 235 h 152d Libya (99) 17.2 d 17 h 18 h 17g Liechtenstein (—) 2 g 2People living with HIV/AIDS: World Bank(www.worldbank.org)Under-5 mortality: UNICEF (www.unicef.org/sowc09).Tuberculosis: World Bank (www.worldbank.org).Infant mortality: UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Sources:<strong>Social</strong> <strong>Watch</strong> 195 Health
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Tuberculosis(casesper 100,000people)Peoplelivingwith HIV/AIDS(15-49 years old, %)Infantmortality(per 1,000live births)Under-5mortality(per 1,000live births)Valuef Lithuania (99) 68 f 0.1 g 7 h 9 f 21h Luxembourg (100) 12.2 f 0.2 g 2 g 4 h 5Macau (—) 62.6 63g Macedonia (—) 29.3 g 0.1 f 15 h 15g Madagascar (59) 250.8 g 0.1 g 70 d 115 h 109e Malawi (62) 345.7 f 11.9 g 71 g 120 h 137g Malaysia (97) 103.3 g 0.5 f 10 h 12 h 31g Maldives (91) 46.9 g 26 h 30 h 34g Mali (67) 318.9 g 1.5 d 117 d 217 h 164d Malta (99) 6 f 0.1 g 4 g 6 h 4f Marshall Islands (93) 215.2 f 49 d 56 h 107g Mauritania (68) 317.7 g 0.8 f 75 d 125 h 130g Mauritius (99) 22.4 g 1.8 f 13 h 15 f 13g Mexico (95) 20 g 0.3 f 29 h 35 h 21g Micronesia (89) 97.1 g 33 h 41 h 57f Moldova (—) 141 g 0.4 g 16 h 52e Monaco (—) 2.3 f 3 h 4 h 3f Mongolia (93) 205.4 f 0.1 f 35 e 42 d 71g Montenegro (94) 32.4 g 9 h 10 h 17f Morocco (81) 91.6 f 0.1 f 32 g 37 h 40g Mozambique (66) 431.3 g 12.5 g 115 f 138 h 174f Namibia (89) 766.8 f 15.3 g 47 e 61 h 223g Nauru (76) 25 h 30 h 28g Nepal (58) 173 g 0.5 f 43 g 59 h 69f Netherlands (100) 7.5 f 0.2 f 4 h 5 h 4Netherlands Antilles (—) 7.5 8New Caledonia (—) 21.6 22g New Zealand (98) 7.1 g 0.1 f 5 h 6 h 5g Nicaragua (70) 48.7 g 0.2 g 28 d 36 h 28g Niger (55) 17.3 g 0.8 g 83 g 253 h 89g Nigeria (56) 310.7 g 3.1 g 97 d 191 h 150g Niue (98) 42 42Northern Mariana Islands (—) 58.3 58f Norway (100) 5.5 f 0.1 f 3 h 4 h 3d Oman (98) 12.8 g 11 f 11 g 12g Pakistan (71) 181.3 g 0.1 f 73 g 97 h 88f Palau (99) 60.2 f 9 g 11 h 27f Panama (93) 47.4 f 1 f 18 h 23 h 22g Papua New Guinea (62) 249.5 g 1.5 g 50 g 73 h 94g Paraguay (95) 58.3 g 0.6 f 24 f 22 h 26g Peru (88) 125.9 g 0.5 e 17 g 25 h 42g Philippines (78) 290 g 23 d 26 g 113d Poland (99) 25.2 g 0.1 f 6 h 7 h 10f Portugal (99) 29.6 f 0.5 f 3 h 4 g 9Puerto Rico (—) 4 4g Qatar (95) 69.9 d 12 g 11 g 31g Romania (96) 114.9 g 0.1 f 13 g 16 g 36g Russia (99) 110.4 g 1.1 f 13 g 13 g 34g Rwanda (53) 397 g 2.8 g 109 f 160 h 167g Samoa (97) 18.8 g 22 d 28 h 23f San Marino (—) 6.2 f 4 f 3 h 4g São Tomé and Príncipe (83) 101.1 g 64 e 96 h 87g Saudi Arabia (95) 46.3 g 20 d 23 g 30g Senegal (68) 271.5 g 1 f 59 d 116 h 112g Serbia (98) 32.4 g 0.1 7 h 8 h 12g Seychelles (99) 32.4 g 12 h 13 h 19g Sierra Leone (57) 573.9 g 1.7 f 155 d 269 h 250f Singapore (92) 26.5 f 0.2 f 2 h 3 h 8g Slovakia (99) 16.6 g 0.1 f 7 h 7 g 8People living with HIV/AIDS: World Bank(www.worldbank.org)Under-5 mortality: UNICEF (www.unicef.org/sowc09).Tuberculosis: World Bank (www.worldbank.org).Infant mortality: UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Sources:Measuring progress 196 <strong>Social</strong> <strong>Watch</strong>
Summary:currentsituation(colour)Countries(Basic Capabilities Indexvalue, 0-100)Tuberculosis(casesper 100,000people)Peoplelivingwith HIV/AIDS(15-49 years old, %)Infantmortality(per 1,000live births)Under-5mortality(per 1,000live births)ValueRecent Evolution(arrow-icon)g Slovenia (99) 12.9 g 0.1 f 3 h 4 h 5g Solomon Islands (—) 127.8 g 53 d 90g Somalia (48) 248.7 g 0.5 g 88 d 145 h 121g South Africa (89) 948.2 d 18.1 f 46 g 69 h 270f Spain (100) 29.6 f 0.5 f 4 h 4 h 10f Sri Lanka (96) 60.5 g 17 f 13 h 30g St Kitts and Nevis (95) 9.3 g 16 g 19 h 15g St Lucia (98) 14.3 g 0.6 14 f 14 h 11g St Vincent and Grenadines (95) 24.7 g 17 h 20 h 21g Sudan (70) 243.3 g 1.4 d 69 f 89 h 101f Suriname (82) 116.3 f 2.4 f 27 g 39 h 46e Swaziland (80) 1198 f 26.1 g 66 g 164 h 364f Sweden (100) 6 f 0.1 g 3 h 4 f 3f Switzerland (97) 6.1 f 0.6 f 4 h 5 h 4f Syria (95) 23.6 15 f 13 g 17g Tajikistan (89) 230.7 g 0.3 f 57 e 68 h 89g Tanzania (73) 297.4 g 6.2 e 73 d 118 h 124g Thailand (96) 142.3 g 1.4 f 6 g 8 h 39g Timor-Leste (56) 322 g 77 f 55 h 151g Togo (68) 429.2 g 3.3 f 65 g 107 h 151g Tonga (96) 24 g 19 d 24 h 22d Trinidad and Tobago (95) 11.2 f 1.5 g 31 g 38 h 20d Tunisia (95) 26 g 0.1 g 18 g 23 h 17g Turkey (92) 29.6 g 21 g 26 h 26g Turkmenistan (88) 68.5 g 0.1 f 45 h 51 h 41g Tuvalu (89) 30 d 38 h 34g Uganda (59) 329.6 g 5.4 g 82 f 134 h 138g Uklraine (99) 101.5 g 1.6 f 20 h 24 h 37g United Arab Emirates (100) 15.8 g 7 g 7 g 10f United Kingdom (99) 15.3 f 0.2 f 5 h 6 h 7f United States of America (98) 4.2 f 0.6 f 7 f 7 g 5g Uruguay (98) 22.3 g 0.6 f 12 f 15 f 12US Virgin Islands (—) 10.1 10g Uzbekistan (93) 112.6 g 0.1 g 36 g 44 e 48f Vanuatu (87) 77.1 f 28 g 36 h 47e Venezuela (94) 33.6 g 17 g 21 24g Vietnam (93) 171.2 g 0.5 f 13 g 17 h 50e West Bank and Gaza (—) 19.9 24 f 22g Yemen (59) 76.5 g 55 g 100 h 77g Zambia (71) 506.1 g 15.2 d 103 h 182 h 202f Zimbabwe (77) 782.1 f 15.3 g 59 g 85 g 235People living with HIV/AIDS: World Bank(www.worldbank.org)Under-5 mortality: UNICEF (www.unicef.org/sowc09).Tuberculosis: World Bank (www.worldbank.org).Infant mortality: UNICEF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Sources:NotE:1. Evolution: Evolution of indicators obtained by re-escalatingthose values resulting from the relative rate of variation amongthe following ranks:Minor than -5: significant progress; Between -5 and -1: slightprogress; Between -1 and 1: stagnant; Between 1 a 5:regression; Larger than 5: significant regression.This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. Value reached by the index: The value results from addingthe values calculated for each dimension and dividing theresult by the total number of dimensions presenting data.3. Stagnant Evolution: In those indicators showing stagnantevolution in all their values, said evolution responds to lack ofupdating, being reproduced those values registered in 2008.Source: World Development Indicators <strong>2009</strong>, World Bank(www.worldbank.org).Definition of indicators:Tuberculosis (cases per 100,000 people): Total numberof tuberculosis cases reported to the World HealthOrganization per 100,000 people. A tuberculosis caseis defined as a patient in whom tuberculosis has beenbacteriologically confirmed or diagnosed by a clinician.People living with HIV/AIDS (15-49 years old, %):Percentage of adults (15-49 years) living with HIV/AIDS.Infant mortality (per 1,000 live births): Number of infantsdying before reaching one year of age, per 1,000 live birthsin a given year.Under-5 mortality (per 1,000 live births): Probability of dyingbetween birth and exactly five years of age expressed per 1,000live births.Methodological notes and guidelines at the endof the section.<strong>Social</strong> <strong>Watch</strong> 197 Health
HEALTHUnequal improvementhe World Health Organization (WHO) is the directauthority and coordinator of health actionTin the United Nations, and its responsibilities includesetting standards, providing technical support tocountries, and monitoring health trends in the world.In its 2007 World Health <strong>Report</strong> the WHO stated that“...world health security depends more than ever oninternational cooperation and the will of all countriesto act effectively to confront the new and emergingthreats”. 1Since the Alma-Ata Conference of September1978 in the USSR, the accent has been on primaryhealth care. These measures are seen as an evermore convincing response to the world’s currenthealth problems, and an instrument to promote equity,solidarity and social justice through improvedhealth quality for all. 2The implementation of a primary health caresystem requires a mature national health organizationand public policies focalised on developingit and making it sustainable, so that the extent orproportional impact of certain diseases or specificlevels of mortality can be measured and evaluatedwith precision, not just with regard to a country’shealth situation and its needs for international supportin this area but also as regards the prioritiesand health development models prevailing in thosecountries.This is why <strong>Social</strong> <strong>Watch</strong> selected three indicators,out of the wide range available, that capture theincidence of diseases linked to a lack of preventivestrategies and a lack of suitable health education.It also selected two indicators that capture mortalityin situations of great vulnerability in a contextof deficient health attention and prevention: infantmortality and mortality among children under 5years old.Global evolutionThe overall situation has improved. The estimateof people in the world in the 15 to 49 age bracketliving with HIV/AIDS is still 2% and this rate has notchanged, which indicates a pause in the expansion ofthe disease. Infant mortality fell by 9.6% (from 2008to <strong>2009</strong>, it decreased from 39 to 35.6 deaths amongchildren under one year old per 1000 live births),mortality among children under 5 also decreased(from 56 to 54.3 deaths per 1000 live births, whichis an evolution of -3.1%), and based on <strong>2009</strong> data,1 WHO. World Health <strong>Report</strong> 2007 – A safer future. Globalpublic health security in the 21st century. Available at:.2 <strong>Report</strong> of the International Conference on Primary HealthCare, Alma-Ata. World Health Organization, InternationalConference on Primary Health Care, USSR, 6 to 12September 1978: .CHART 1: Current situation of health by regions (number of countries)4035302520151050East Asia &PacificEurope Latin AmericaCentralAsiaTABLE 1. Current situation of health by evolution (number of countries)TABLE 2. Averages by indicator of countries in worse and better health situationsTuberculosis(cases per100,000 people)the incidence of tuberculosis dropped from 199 to136.5 cases notified to the WHO per 100,000 people(which is amounts to reduction in the rate of 45.8%on the figure available for 2008).When we examine the performance of theseindicators in the countries in the better and worserelative situations differences emerge, and this isone of the main themes for reflection in the analysisof the data for <strong>2009</strong> (Table 2).In the countries in the better relative situationthe evolution of all these indicators has been favourable(variation between the 2008 and <strong>2009</strong> values:tuberculosis = -157.9%; HIV/AIDS went from 0.3%to 0.0%; infant mortality = -79.1%; mortality amongchildren under 5 years old = -68.7%). On the otherWorst relative situationBelow averageAbove averageBest relative situation& CaribbeanMiddle East& North Africaf e h d g TotalWorse relative situation 7 1 22 30Below average 3 1 1 31 36Above average 10 2 3 42 57Better relative situation 21 8 2 6 35 72Total 41 12 3 9 130 195People withHIV/AIDS(aged 15-49, %)South Asia Sub-SaharanInfantmortality(per 1,000live births)NorthAmericaMortality inchildren under 5(per 1,000live births)Worse relative Average 561.5 17.9 102.5 188.5situation Number of countries 21 9 28 24Better relative Average 15.9 0.0 6.7 8.3situation Number of countries 85 73 70 75Total Average 136.5 2.1 35.6 54.3Number of countries 202 141 194 188Africahand, in the countries in the worse relative situationthere was slight improvement only in the tuberculosisand infant mortality indicators (variation in theindicator value: tuberculosis = -0.6%; infant mortality= -5.4%). But in other respects the situationbecame considerably worse, mainly with the spreadof HIV/AIDS but also in mortality among childrenunder 5 years old (variation in the indicator value:HIV/AIDS = 49.7%; mortality among children under5 = 7.7%).As to the relative evolution in different countries,the above-mentioned disparities and the regressionof some indicators and for some countries explainthe unequal and polarised behaviour that took placein the year from 2008 to <strong>2009</strong> (Table 1). nMeasuring progress 198 <strong>Social</strong> <strong>Watch</strong>
REPRODUCTIVE HEALTHMarked polarizationReferencescurrent situation(latest available data)Better situationAbove averageBelow averageWorse situationrecent evolution (Between mostrecent and previous available data)g Significant progressd Slight progressh Stagnante Regressionf Major regressionComplete table at: www.socialwatch.org/statistics<strong>2009</strong>Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Women aged15-49 attendedat leastonce duringpregnancy byskilled healthpersonnel (%)Birthsattendedby skilledhealthpersonnel(%)Contraceptiveuse amongcurrentlyin unionwomenaged 15-49(%)Valueg Afghanistan (47) 52 h 14 h 33g Albania (96) 81 h 100 h 91g Algeria (96) 79 h 95 h 87g Angola (58) 45 h 45g Antigua and Barbuda (94) 100 h 100g Argentina (98) 99 h 99g Armenia (95) 93.2 h 98 h 96h Australia (99) 100 h 100e Azerbaijan (96) 70 h 97 h 51.1 f 73h Bahamas (99) 99 h 99h Bahrain (99) 99 h 99e Bangladesh (56) 48.7 h 20 h 55.8 e 42g Barbados (98) 89 h 100 h 95g Belarus (100) 100 h 100h Belgium (98) 99 h 99f Belize (92) 91 h 34.3 f 63h Benin (77) 88 h 74 h 17 e 60g Bhutan (79) 51 h 35.4 g 43g Bolivia (79) 79.1 h 60.8 h 70g Bosnia and Herzegovina (98) 99 h 100 h 100g Botswana (90) 99 h 99 h 99g Brazil (90) 97 h 97h Brunei Darussalam (99) 100 h 100g Bulgaria (97) 99 h 99g Burkina Faso (71) 72.8 h 54 h 63g Burma/Myanmar (73) 68 h 68g Burundi (61) 93 h 34 h 64g Cambodia (66) 69.3 h 43.8 h 57g Cameroon (77) 83.3 h 63 h 73h Canada (99) 100 h 100g Cape Verde (93) 89 h 89g Central African Republic (65) 54 h 54g Chad (44) 42.6 h 15 h 29e Chile (99) 100 h 58.4 e 79e China (95) 98 h 84.6 f 91g Colombia (94) 93.5 h 96 h 95g Comoros (79) 62 h 62g Congo DR (68) 61 h 61f Congo, Rep. (76) 86.8 h 83 h 20.6 f 63h Cook Islands (98) 100 h 100e Costa Rica (93) 94 h 94Contraceptive use among currently in union womenaged 15-49: World Bank (www.worldbank.org).This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1003. Stagnant Evolution: In those indicators showing stagnantevolution in all their values, said evolution responds to lackof updating, being reproduced those values registered in2008.1. Evolution: Evolution of indicators obtained byre-escalating those values resulting from the relativerate of variation among the following ranks:Minor than -5: significant regression; Between -5 and -1:regression; Between -1 and 1: stagnant; Between 1 a 5:slight progress; Larger than 5: significant progress.Births attended by skilled health personnel: ReproductiveHealth Indicators Database, Department of Reproductive Healthand Research, WHO (www.who.int/reproductivehealth/). Exceptfor (+) Demographic and Health Surveys - STAT compiler(www.measuredhs.com/accesssurveys).2. Value reached by the index: The value results fromadding the values calculated for each dimension anddividing the result by the total number of dimensionspresenting data.Women aged 15-49 attended at least once during pregnancy:Global Health Atlas, WHO (www.who.int/GlobalAtlas).NotE:Sources:<strong>Social</strong> <strong>Watch</strong> 199 Reproductive health
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Women aged15-49 attendedat leastonce duringpregnancy byskilled healthpersonnel (%)Birthsattendedby skilledhealthpersonnel(%)Contraceptiveuse amongcurrentlyin unionwomenaged 15-49(%)Valueg Côte d'Ivoire (74) 84 h 57 h 71g Croatia (100) 100 h 100d Cuba (99) 100 h 77.1 g 89h Cyprus (100) 100 h 100g Czech Republic (99) 100 h 100g Dijibouti (90) 93 h 93g Dominica (96) 99 h 99d Dominican Republic (87) 98.3 h 96 h 72.9 g 89e Ecuador (86) 56 h 80 h 68g Egypt (89) 71.3 h 74 h 73d El Salvador (80) 69 h 69h Equatorial Guinea (58) 63 h 63g Eritrea (60) 70.3 h 28 h 49h Estonia (99) 100 h 100d Ethiopia (53) 28 h 6 h 17g Fiji (93) 99 h 99h Finland (100) 100 h 100g France (99) 99 h 99g Gabon (82) 94 h 86 h 90g Gambia (73) 92 h 57 h 75g Georgia (96) 91 h 92 h 92h Germany (99) 100 h 100g Ghana (76) 91.9 h 50 h 71g Grenada (92) 100 h 100g Guatemala (68) 86 h 41 h 64g Guinea (68) 82.2 h 38 h 60g Guinea-Bissau (58) 89 h 39 h 64h Guyana (84) 88 h 94 h 34.2 e 72g Haiti (48) 84.5 h 26 h 55h Honduras (82) 91.7 h 67 h 65 h 75h Hungary (99) 100 h 100h India (68) 65 h 47 h 56d Indonesia (85) 91.5 h 66 h 61.4 g 73g Iraq (88) 89 h 89g Iran (95) 97 h 97h Ireland (100) 100 h 100g Italy (100) 99 h 99g Jamaica (95) 97 h 97g Japan (99) 100 h 100h Jordan (99) 98.6 h 100 h 57.1 d 85g Kazakhstan (99) 82 h 100 h 91g Kenya (71) 88.1 h 42 h 65g Kiribati (89) 90 h 90g Korea, DPR (87) 98 h 97 h 98g Korea, Rep. (100) 100 h 100g Kuwait (100) 100 h 100g Kyrgyzstan (95) 88 h 98 h 93h Lao PDR (58) 44 h 19 h 32h Latvia (99) 100 h 100This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*100Contraceptive use among currently in union women aged 15-49:World Bank (www.worldbank.org).1. Evolution: Evolution of indicators obtained by re-escalatingthose values resulting from the relative rate of variation amongthe following ranks:Minor than -5: significant regression; Between -5 and -1:regression; Between -1 and 1: stagnant; Between 1 a 5:slight progress; Larger than 5: significant progress.3. Stagnant Evolution: In those indicators showing stagnant evolutionin all their values, said evolution responds to lack of updating, beingreproduced those values registered in 2008.Births attended by skilled health personnel: Reproductive Health IndicatorsDatabase, Department of Reproductive Health and Research, WHO (www.who.int/reproductivehealth/). Except for (+) Demographic and Health Surveys -STAT compiler (www.measuredhs.com/accesssurveys).2. Value reached by the index: The value results from adding the valuescalculated for each dimension and dividing the result by the total numberof dimensions presenting data.Women aged 15-49 attended at least once during pregnancy: Global HealthAtlas, WHO (www.who.int/GlobalAtlas).NotE:Sources:Measuring progress 200 <strong>Social</strong> <strong>Watch</strong>
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Women aged15-49 attendedat leastonce duringpregnancy byskilled healthpersonnel (%)Birthsattendedby skilledhealthpersonnel(%)Contraceptiveuse amongcurrentlyin unionwomenaged 15-49(%)Valueg Lebanon (96) 98 h 98g Lesotho (72) 90.4 h 55 h 73d Liberia (61) 51 h 11.4 g 31h Libya (99) 100 h 100h Lithuania (99) 100 h 100h Luxembourg (100) 100 h 100g Macedonia (—) 98 h 98g Madagascar (59) 79.9 h 45 h 62g Malawi (62) 93.1 h 54 h 74h Malaysia (97) 100 h 100g Maldives (91) 98 h 84 h 91h Mali (67) 53 h 41 h 8.2 d 34h Malta (99) 100 h 100g Marshall Islands (93) 95 h 95g Mauritania (68) 63 h 53 h 58g Mauritius (99) 99 h 99g Mexico (95) 94 h 94g Micronesia (89) 88 h 88g Moldova (—) 98 h 100 h 99g Mongolia (93) 99 h 99h Montenegro (94) 99 h 99d Morocco (81) 67.8 h 63 h 65g Mozambique (66) 84.5 h 48 h 66g Namibia (89) 85 h 76 h 55.1 g 72h Nauru (76) 100 h 100e Nepal (58) 69.7 h 19 h 44g Netherlands (100) 100 h 100h New Zealand (98) 95 h 95d Nicaragua (70) 85 h 67 h 72.4 g 75g Niger (55) 46.1 h 18 h 32g Nigeria (56) 61 h 35 h 48h Niue (98) 100 h 100g Oman (98) 98 h 98d Pakistan (71) 54 h 29.6 g 42g Palau (99) 100 h 100h Panama (93) 91 h 91g Papua New Guinea (62) 38 h 38g Paraguay (95) 100 h 100g Peru (88) 85 h 73 h 71.3 g 76h Philippines (78) 87.6 h 60 h 50.6 d 66h Poland (99) 100 h 100h Portugal (99) 100 h 100g Qatar (95) 62 h 100 h 81g Romania (96) 89 h 98 h 94g Russia (99) 96 h 100 h 98g Rwanda (53) 94.3 h 28 h 61g Samoa (97) 100 h 100g São Tomé and Príncipe (83) 91 h 81 h 86g Saudi Arabia (95) 93 h 93This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*100Contraceptive use among currently in union women aged 15-49:World Bank (www.worldbank.org).1. Evolution: Evolution of indicators obtained by re-escalatingthose values resulting from the relative rate of variation amongthe following ranks:Minor than -5: significant regression; Between -5 and -1:regression; Between -1 and 1: stagnant; Between 1 a 5:slight progress; Larger than 5: significant progress.3. Stagnant Evolution: In those indicators showing stagnant evolutionin all their values, said evolution responds to lack of updating, beingreproduced those values registered in 2008.Births attended by skilled health personnel: Reproductive Health IndicatorsDatabase, Department of Reproductive Health and Research, WHO (www.who.int/reproductivehealth/). Except for (+) Demographic and Health Surveys -STAT compiler (www.measuredhs.com/accesssurveys).2. Value reached by the index: The value results from adding the valuescalculated for each dimension and dividing the result by the total numberof dimensions presenting data.Women aged 15-49 attended at least once during pregnancy: Global HealthAtlas, WHO (www.who.int/GlobalAtlas).NotE:Sources:<strong>Social</strong> <strong>Watch</strong> 201 Reproductive health
Summary:currentsituation(colour)Recent Evolution(arrow-icon)Countries(Basic Capabilities Indexvalue, 0-100)Women aged15-49 attendedat leastonce duringpregnancy byskilled healthpersonnel (%)Birthsattendedby skilledhealthpersonnel(%)Contraceptiveuse amongcurrentlyin unionwomenaged 15-49(%)Valueg Senegal (68) 87.4 h 52 h 70g Serbia (98) 99 h 99g Sierra Leone (57) 82 h 43 h 63g Singapore (92) 100 h 100h Slovakia (99) 100 h 100h Slovenia (99) 100 h 100g Solomon Islands (—) 43 h 43g Somalia (48) 33 h 33g South Africa (89) 89 h 92 h 91e Sri Lanka (96) 97 h 68 e 83g St Kitts and Nevis (95) 100 h 100h St Lucia (98) 100 h 100g St Vincent and Grenadines (95) 100 h 100g Sudan (70) 49 h 49g Suriname (82) 91 h 71 h 81d Swaziland (80) 74 h 50.6 g 62h Switzerland (97) 100 h 100g Syria (95) 93 h 93h Tajikistan (89) 75 h 83 h 38.3 d 65g Tanzania (73) 94.3 h 46 h 70g Thailand (96) 97 h 97g Timor-Leste (56) 19 h 19.8 g 19g Togo (68) 78 h 62 h 70g Tonga (96) 99 h 99g Trinidad and Tobago (95) 96 h 98 h 97g Tunisia (95) 90 h 90d Turkey (92) 67 h 83 h 75g Turkmenistan (88) 87 h 100 h 94h Tuvalu (89) 100 h 100g Uganda (59) 94.1 h 42 h 68h Uklraine (99) 90 h 100 h 66.7 d 86h United Arab Emirates (100) 100 h 100g United Kingdom (99) 99 h 99g United States of America (98) 100 h 100g Uruguay (98) 100 h 100g Uzbekistan (93) 100 h 100g Vanuatu (87) 92 h 92g Venezuela (94) 95 h 95d Vietnam (93) 70 h 88 h 79g Yemen (59) 34 h 20 h 27.7 g 27g Zambia (71) 93.3 h 43 h 68g Zimbabwe (77) 94.2 h 69 h 82Contraceptive use among currently in union women aged15-49: World Bank (www.worldbank.org).This rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1001. Evolution: Evolution of indicators obtained by re-escalatingthose values resulting from the relative rate of variation amongthe following ranks:Minor than -5: significant regression; Between -5 and -1:regression; Between -1 and 1: stagnant; Between 1 a 5:slight progress; Larger than 5: significant progress.3. Stagnant Evolution: In those indicators showing stagnantevolution in all their values, said evolution responds to lack ofupdating, being reproduced those values registered in 2008.Births attended by skilled health personnel: ReproductiveHealth Indicators Database, Department of Reproductive Healthand Research, WHO (www.who.int/reproductivehealth/). Exceptfor (+) Demographic and Health Surveys - STAT compiler (www.measuredhs.com/accesssurveys).2. Value reached by the index: The value results from addingthe values calculated for each dimension and dividing theresult by the total number of dimensions presenting data.Women aged 15-49 attended at least once during pregnancy:Global Health Atlas, WHO (www.who.int/GlobalAtlas).NotE:Sources:DEFinition of indicators:Women aged 15-49 attended at least once during pregnancyby skilled health personnel (%): Percentage of women aged15-49 years attended at least once during pregnancy by skilledhealth personnel (doctors, nurses or midwives).Methodological notes and guidelines at the end of the section.Births attended by skilled health personnel (%): Percentageof births attended by skilled health personnel (doctors,nurses or midwives).Contraceptive use among women currently in union aged15-49 (%): Percentage of women in union aged 15-49 yearscurrently using contraception.For more detailed information on the reference yearsof the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Measuring progress 202 <strong>Social</strong> <strong>Watch</strong>
REPRODUCTIVE HEALTHMarked polarizationhe term “reproductive health” was used for theT first time at the United Nations Conference onPopulation and Development in Cairo in 1994. It refersto a situation of complete physical, mental andsocial well-being in all the functions and processesconnected with reproduction.According to the United Nations PopulationFund (UNFPA), every minute, somewhere in theworld, one woman dies from avoidable causes duringchildbirth, and for every woman who dies underthese circumstances there are 20 or more whosehealth is permanently damaged through deliveryrelatedcomplications. This adds up to more than halfa million women a year who lose their lives and morethan ten million whose chances of leading a full andhealthy life are seriously impaired. The situation isextremely worrying in the poor countries, which havethe highest rates of involuntary pregnancy, abortionsunder bad conditions, HIV / AIDS infection, and maternaldeath and permanent injury.Prevention is geared to avoiding teenage pregnancy,the start of sexual relations and the use ofcontraception. Attention, on the other hand, dealswith sexually transmitted diseases, particularly HIV/ AIDS, skilled health care during pregnancy and delivery,and follow-up on birth complications amongwomen and newborn babies.Global evolutionIn the reproductive health dimension in 2008, morethan a fifth of countries (23.8%) remained stagnantand some 70.7% made progress. In the lattergroup 6.6% made slight progress and the majority(64.1%) made significant progress. On the otherhand, 8 countries regressed slightly (4.4%), and intwo more (1.1%) this was severe, so in total only5.5% of countries regressed (Table 1). All in all theoverall balance is positive, but we should put thisinto perspective by examining the average levelsin the countries at the two ends of the spectrum(Table 2). 1The indicator for “Women aged 15 to 49 attendedat least once during pregnancy by skilledhealth personnel (%)” did not register changes butevolution in reproductive health was still favourable.This is because the proportion of women (withpartners) in this age bracket who use contraceptionand the proportion of deliveries attended by skilledhealth personnel did increase (in 2008 the rates were1 As regards methodology, countries are classified usingtwo different procedures, and in this case the two arecombined. Regression or progress refer to differences inthe relative growth rate, but relative position is establishedby standardisation based on the quotient between thedifferences with the measures and the standard deviation ofthe distribution. For this, progress or regression in growthrate can correspond to different relative positions. Thereforea country that is very well positioned but from one year to thenext registers a fall in the values of its indicators could figureamong the countries in the better relative situation and at thesame time be in the severe regression group.CHART 1: Current reproductive health situation by regions (number of countries)TABLE 2. Reproductive health: averages by indicator of countries in worse and better situationsWorse relativesituationBetter relativesituationTotal35302520151050East Asia &PacificEurope Latin AmericaCentralAsiaTABLE 1. Current situation according to evolution in reprodcutive healthWomen aged15-49 attended atleast once duringpregnancy by skilledhealth personnel (%)80.7%, 44.9% and 79.1%, respectively, and in <strong>2009</strong>80.7%, 47.9% and 79.6%, respectively).However, this overall progress obscures the significantpolarization that took place. In the countries inthe worse relative situation all the average values of theindicators fell (from 67.2%, 17.1% and 37.9% in 2008to 48%, 15.4% and 32.4% in <strong>2009</strong>, respectively). Onthe other hand, the opposite occurred in the countriesin the better relative situation; all the average values ofthese indicators increased (93.9%, 64.5% and 98.9%in 2008 and 94.3%, 72.3% and 99.6%, respectively).The situation by regionsNo country in Europe or North America is below theaverage; the overwhelming majority are in the betterrelative situation (87.9% and 100%, respectively).In Central Asia most of the countries are positionedaround the average (33.3% are below and 44.4% areabove). There are no countries in the worse relative situationand two are in the better relative situation (22.2%).Worst relative situationBelow averageAbove averageBest relative situation& CaribbeanMiddle East& North AfricaSouth Asia Sub-Saharanf e h d g TotalWorse relative situation 2 3 3 17 25Below average 2 3 6 7 30 48Above average 3 4 2 27 36Better relative situation 30 42 72Total 2 8 43 12 116 181Use ofcontraceptionby women (withpartners)aged 15 to 49 (%)AfricaAverage 48.0 15.4 32.4Number of countries 11 5 30Average 94.3 72.3 99.6Number of countries 27 8 80Average 80.7 47.9 79.6Number of countries 79 27 181NorthAmericaBirths attendedby skilled healthpersonnel (%)In East Asia and the Pacific, Latin America andthe Caribbean and the Middle East and North Africaregion, most of the countries are above the average(18.8%, 24.4% and 38.9%, respectively) or in thebetter relative situation group (53.1%, 39.4% and38.9%, respectively). However, there are also somecountries below the average (12.5%, 33.3% and16.7%, respectively) and some in a worse relativesituation (15.6%, 3% and 5.6%, respectively).South Asia is the most polarised region. Threequarters of the countries (75%) are in a worse relativesituation and a quarter (25%) are above the average.There are no countries in the better relative situation,and nor are there any slightly below average.Lastly, the most disadvantaged region is sub-Saharan Africa. Nearly nine tenths (84.8%) of thesecountries is in the worse relative situation or belowthe average (26.1% and 58.7%, respectively), one inten are above the average (10.9%) and only 4.3% arein the better relative situation group. n<strong>Social</strong> <strong>Watch</strong> 203 Reproductive health
atifications of fundamental ILO ConventionsUp to July <strong>2009</strong>C87: Freedom of Association and Protection of the Right to Organise Convention, 1948.C98: Right to Organise and Collective Bargaining Convention, 1949.C100: Equal Remuneration Convention, 1951.C105: Abolition of Forced Labour Convention, 1957.C111: Discrimination (Employment and Occupation) Convention, 1958.C138: Minimum Age Convention, 1973.C182: Worst Forms of Child Labour Convention, 1999.Countries that have ratified all these conventions:Albania; Algeria; Angola; Antigua and Barbuda; Argentina; Armenia; Austria;Azerbaijan; Bahamas; Barbados; Belarus; Belgium; Belize; Benin; Bolivia; Bosniaand Herzegovina; Botswana; Bulgaria; Burkina Faso; Burundi; Cambodia; Cameroon;Central African Republic; Chad; Chile; Colombia; Comoros; Congo, DR; Congo,Rep.; Costa Rica; Côte d’Ivoire; Croatia; Cyprus; Czech Republic; Denmark; Djibouti;Dominica; Dominican Republic; Ecuador; Egypt; El Salvador; Equatorial Guinea;Estonia; Ethiopia; Fiji; Finland; France; Gambia; Georgia; Germany; Greece; Grenada;Guatemala; Guinea; Guyana; Haiti; Honduras; Hungary; Iceland; Indonesia; Ireland;Israel; Italy; Jamaica; Kazakhstan; Kyrgyzstan; Latvia; Lesotho; Libya; Lithuania;Luxembourg; Macedonia; Madagascar; Malawi; Mali; Malta; Mauritania; Mauritius;Moldova; Mongolia; Montenegro; Mozambique; Netherlands; Nicaragua; Niger;Nigeria; Norway; Pakistan; Panama; Papua New Guinea; Paraguay; Peru; Philippines;Poland; Portugal; Romania; Russian Federation; Rwanda; San Marino; Sao Tomeand Principe; Senegal; Serbia; Seychelles; Slovakia; Slovenia; South Africa; Spain;Sri Lanka; St Kitts and Nevis; St Vincent and Grenadines; Swaziland; Sweden;Switzerland; Syria; Tajikistan; Tanzania; Togo; Trinidad and Tobago; Tunisia; Turkey;Uganda; Ukraine; United Kingdom; Uruguay; Venezuela; Yemen; Zambia; Zimbabwe.Countries that have notratified all the mentionedconventionsFreedom of associationand collective bargainingEliminationof forced andcompulsory labourElimination ofdiscrimination in respectof employment andoccupationAbolition of childlabourCountries that have notratified all the mentionedconventionsFreedom of associationand collective bargainingEliminationof forced andcompulsory labourElimination ofdiscrimination in respectof employment andoccupationAbolition of childlabourC 87 C 98 C 105 C 100 C 111 C 138 C 182Afghanistan d d c c c d dAustralia c c c c c d cBahrain d d c d c d cBangladesh c c c c c d cBrazil d c c c c c cBurma/Myanmar c d d d d d dCanada c d c c c d cCape Verde c c c c c d cChina d d d c c c cCuba c c c c c c dEritrea c c c c c c dGabon c c c c c d cGhana c c c c c d cGuinea-Bissau d c c c c c cIndia d d c c c d dIran, Islamic Rep. d d c c c d cIraq d c c c c c cJapan c c d c d c cJordan d c c c c c cKenya d c c c c c cKiribati c c c c d d cKorea, Rep. d d d c c c cKuwait c c c d c c cLao, PDR d d d c c c cLebanon d c c c c c cC 87 C 98 C 105 C 100 C 111 C 138 C 182Liberia c c c d c d cMalaysia d c 4 c d c cMexico c d c c c d cMorocco d c c c c c cNamibia c c c d c c cNepal d c c c c c cNew Zealand d c c c c d cOman d d c d d c cQatar d d c d c c cSaudi Arabia d d c c c d cSierra Leone c c c c c d dSingapore d c c c d c cSolomon Islands d d d d d d dSomalia d d c d c d dSt. Lucia c c c c c d cSudan d c c c c c cSuriname c c c d d d cThailand d d c c d c cTimor-Leste d c d d d d cTurkmenistan c c c c c d dUnited Arab Emirates d d c c c c cUnited States of America d d c d d d cUzbekistan d c c c c c cVanuatu c c c c c d cViet Nam d d d c c c cSource: ILOLEX. ILO website Database (www.ilo.org/).c Convention ratifiedd Convention not yet ratified4 Convention denouncedMeasuring progress 204 <strong>Social</strong> <strong>Watch</strong>
atifications of human rights international treatiesUp to July <strong>2009</strong>A: International Covenant on Economic, <strong>Social</strong> 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.UNMembersinceA B C D E F G H IAfghanistan 1946 ● ● ● ● ● ● ● ●Albania 1955 ● ● ● ● ● ● ● ● ●Algeria 1962 ● ● ● ● ● ● ● ● ●Andorra 1993 ● ● ● ● ● ●Angola 1976 ● ● ● ● ●Antigua and Barbuda 1981 ● ● ● ● ● ●Argentina 1945 ● ● ● ● ● ● ● ● ●Armenia 1992 ● ● ● ● ● ● ● ●Australia 1945 ● ● ● ● ● ● ● ●Austria 1955 ● ● ● ● ● ● ● ●Azerbaijan 1992 ● ● ● ● ● ● ● ● ●Bahamas 1973 ● ● ● ● ● ● ● ●Bahrain 1971 ● ● ● ● ● ● ●Bangladesh 1974 ● ● ● ● ● ● ● ❍Barbados 1966 ● ● ● ● ● ●Belarus 1945 ● ● ● ● ● ● ● ●Belgium 1945 ● ● ● ● ● ● ● ●Belize 1981 ❍ ● ● ● ● ● ● ● ●Benin 1960 ● ● ● ● ● ● ● ❍Bhutan 1971 ❍ ● ●Bolivia 1945 ● ● ● ● ● ● ● ● ●Bosnia and Herzegovina 1992 ● ● ● ● ● ● ● ● ●Botswana 1966 ● ● ● ● ● ●Brazil 1945 ● ● ● ● ● ● ● ●Brunei Darussalam 1984 ● ●Bulgaria 1955 ● ● ● ● ● ● ● ●Burkina Faso 1960 ● ● ● ● ● ● ● ● ●Burma/Myanmar 1948 ● ● ●Burundi 1962 ● ● ● ● ● ● ● ●Cambodia 1955 ● ● ● ● ● ● ● ● ❍Cameroon 1960 ● ● ● ● ● ● ●Canada 1945 ● ● ● ● ● ● ● ●Cape Verde 1975 ● ● ● ● ● ● ● ●Central African Republic 1960 ● ● ● ● ● ●Chad 1960 ● ● ● ● ● ● ●Chile 1945 ● ● ● ● ● ● ● ● ●China 1945 ● ❍ ● ● ● ● ● ●Colombia 1945 ● ● ● ● ● ● ● ● ●Comoros 1975 ❍ ❍ ● ● ❍ ● ● ❍Congo, DR 1960 ● ● ● ● ● ● ● ●Congo, Rep. 1960 ● ● ● ● ● ● ● ❍Cook Islands ● ●Costa Rica 1945 ● ● ● ● ● ● ● ●Côte d’Ivoire 1960 ● ● ● ● ● ● ● ●Croatia 1992 ● ● ● ● ● ● ● ●Cuba 1945 ❍ ❍ ● ● ● ● ●UNMembersinceA B C D E F G H ICyprus 1960 ● ● ● ● ● ● ● ●Czech Republic 1993 ● ● ● ● ● ● ● ●Denmark 1945 ● ● ● ● ● ● ● ●Djibouti 1977 ● ● ❍ ● ● ● ●Dominica 1978 ● ● ● ● ●Dominican Republic 1945 ● ● ● ● ❍ ● ❍ ●Ecuador 1945 ● ● ● ● ● ● ● ● ●Egypt 1945 ● ● ● ● ● ● ● ● ●El Salvador 1945 ● ● ● ● ● ● ● ● ●Equatorial Guinea 1968 ● ● ● ● ● ● ●Eritrea 1993 ● ● ● ● ●Estonia 1991 ● ● ● ● ● ● ● ●Ethiopia 1945 ● ● ● ● ● ● ● ●Fiji 1970 ● ● ● ● ●Finland 1955 ● ● ● ● ● ● ● ●France 1945 ● ● ● ● ● ● ● ●Gabon 1960 ● ● ● ● ● ● ● ● ❍Gambia 1965 ● ● ● ● ❍ ● ● ●Georgia 1992 ● ● ● ● ● ● ● ●Germany 1973 ● ● ● ● ● ● ● ●Ghana 1957 ● ● ● ● ● ● ● ● ●Greece 1945 ● ● ● ● ● ● ● ●Grenada 1974 ● ● ❍ ● ●Guatemala 1945 ● ● ● ● ● ● ● ● ●Guinea 1958 ● ● ● ● ● ● ● ● ●Guinea-Bissau 1974 ● ❍ ❍ ● ❍ ● ● ❍Guyana 1966 ● ● ● ● ● ● ❍Haiti 1945 ● ● ● ● ● ●Holly See ● ● ● ●Honduras 1945 ● ● ● ● ● ● ● ● ●Hungary 1955 ● ● ● ● ● ● ● ●Iceland 1946 ● ● ● ● ● ● ● ●India 1945 ● ● ● ● ❍ ● ●Indonesia 1950 ● ● ● ● ● ● ❍Iran 1945 ● ● ● ● ● ●Iraq 1945 ● ● ● ● ● ●Ireland 1955 ● ● ● ● ● ● ● ●Israel 1949 ● ● ● ● ● ● ● ●Italy 1955 ● ● ● ● ● ● ● ●Jamaica 1962 ● ● ● ● ● ● ● ●Japan 1956 ● ● ● ● ● ● ●Jordan 1955 ● ● ● ● ● ● ●Kazakhstan 1992 ● ● ● ● ● ● ● ●Kenya 1963 ● ● ● ● ● ● ●Kiribati 1999 ● ●Korea, DPR 1991 ● ● ● ● ●<strong>Social</strong> <strong>Watch</strong> 205 Status of ratifications of human rights international treaties
UNMembersinceA B C D E F G H IKorea, Rep. 1991 ● ● ● ● ● ● ● ●Kuwait 1963 ● ● ● ● ● ● ●Kyrgyzstan 1992 ● ● ● ● ● ● ● ● ●Lao, PDR 1955 ● ❍ ● ● ● ●Latvia 1991 ● ● ● ● ● ● ● ●Lebanon 1945 ● ● ● ● ● ● ●Lesotho 1966 ● ● ● ● ● ● ● ● ●Liberia 1945 ● ● ● ● ● ● ● ● ❍Libya 1955 ● ● ● ● ● ● ● ●Liechtenstein 1990 ● ● ● ● ● ● ● ●Lithuania 1991 ● ● ● ● ● ● ● ●Luxembourg 1945 ● ● ● ● ● ● ● ●Macedonia 1993 ● ● ● ● ● ● ● ●Madagascar 1960 ● ● ● ● ● ● ●Malawi 1964 ● ● ● ● ● ● ●Malaysia 1957 ● ● ●Maldives 1965 ● ● ● ● ● ● ●Mali 1960 ● ● ● ● ● ● ● ● ●Malta 1964 ● ● ● ● ● ● ●Marshall Islands 1991 ● ●Mauritania 1961 ● ● ● ● ● ● ● ●Mauritius 1968 ● ● ● ● ● ●Mexico 1945 ● ● ● ● ● ● ● ● ●Micronesia 1991 ● ●Moldova 1992 ● ● ● ● ● ● ● ●Monaco 1993 ● ● ● ● ● ● ● ●Mongolia 1961 ● ● ● ● ● ● ●Montenegro 2006 ● ● ● ● ● ● ● ● ❍Morocco 1956 ● ● ● ● ● ● ● ● ●Mozambique 1975 ● ● ● ● ● ● ●Namibia 1990 ● ● ● ● ● ● ● ●Nauru 1999 ❍ ❍ ❍ ●Nepal 1955 ● ● ● ● ● ● ●Netherlands 1945 ● ● ● ● ● ● ● ●New Zealand 1945 ● ● ● ● ● ● ● ●Nicaragua 1945 ● ● ● ● ● ● ● ● ●Niger 1960 ● ● ● ● ● ● ● ●Nigeria 1960 ● ● ● ● ● ● ● ● ●Norway 1945 ● ● ● ● ● ● ● ●Oman 1971 ● ● ●Pakistan 1947 ● ❍ ● ● ❍ ● ●Palau 1994 ●Panama 1945 ● ● ● ● ● ● ● ●Papua New Guinea 1975 ● ● ● ● ● ● ●Paraguay 1945 ● ● ● ● ● ● ● ● ●Peru 1945 ● ● ● ● ● ● ● ● ●Philippines 1945 ● ● ● ● ● ● ● ● ●Poland 1945 ● ● ● ● ● ● ● ●Portugal 1955 ● ● ● ● ● ● ● ●Qatar 1971 ● ● ● ●Romania 1955 ● ● ● ● ● ● ● ●UNMembersinceA B C D E F G H IRussian Federation 1945 ● ● ● ● ● ● ● ●Rwanda 1962 ● ● ● ● ● ● ● ●Samoa 1976 ● ● ● ●San Marino 1992 ● ● ● ● ● ●Sao Tome and Principe 1975 ❍ ❍ ❍ ● ❍ ● ● ❍Saudi Arabia 1945 ● ● ● ● ●Senegal 1960 ● ● ● ● ● ● ● ● ●Serbia 2000 ● ● ● ● ● ● ● ● ❍Seychelles 1976 ● ● ● ● ● ● ● ● ●Sierra Leone 1961 ● ● ● ● ● ● ● ❍Singapore 1965 ● ● ●Slovakia 1993 ● ● ● ● ● ● ● ●Slovenia 1992 ● ● ● ● ● ● ● ●Solomon Islands 1978 ● ● ● ● ●Somalia 1960 ● ● ● ● ❍ ●South Africa 1945 ❍ ● ● ● ● ● ● ●Spain 1955 ● ● ● ● ● ● ● ●Sri Lanka 1955 ● ● ● ● ● ● ● ●St Kitts and Nevis 1983 ● ● ● ●St Lucia 1979 ● ● ●St Vincent and Grenadines 1980 ● ● ● ● ● ● ● ●Sudan 1956 ● ● ● ❍ ● ● ●Suriname 1975 ● ● ● ● ● ●Swaziland 1968 ● ● ● ● ● ● ●Sweden 1946 ● ● ● ● ● ● ● ●Switzerland 2002 ● ● ● ● ● ● ● ●Syria 1945 ● ● ● ● ● ● ● ●Tajikistan 1992 ● ● ● ● ● ● ● ●Tanzania 1961 ● ● ● ● ● ● ●Thailand 1946 ● ● ● ● ● ●Timor-Leste 2002 ● ● ● ● ● ● ● ●Togo 1960 ● ● ● ● ● ● ● ● ❍Tonga 1999 ● ● ●Trinidad and Tobago 1962 ● ● ● ● ● ● ●Tunisia 1956 ● ● ● ● ● ● ● ●Turkey 1945 ● ● ● ● ● ● ● ● ●Turkmenistan 1992 ● ● ● ● ● ● ●Tuvalu 2000 ● ● ●Uganda 1962 ● ● ● ● ● ● ● ● ●Ukraine 1945 ● ● ● ● ● ● ● ●United Arab Emirates 1971 ● ● ● ●United Kingdom 1945 ● ● ● ● ● ● ● ●United States of America 1945 ❍ ● ● ❍ ● ❍ ● ●Uruguay 1945 ● ● ● ● ● ● ● ● ●Uzbekistan 1992 ● ● ● ● ● ● ●Vanuatu 1981 ● ● ●Venezuela 1945 ● ● ● ● ● ● ● ●Vietnam 1977 ● ● ● ● ● ●Yemen 1947 ● ● ● ● ● ● ● ●Zambia 1964 ● ● ● ● ● ● ●Zimbabwe 1980 ● ● ● ● ● ● ●Source: Office of the High Commissioner on Human Rights (www2.ohchr.org).● Ratification, accession, approval, notification or succession, acceptance, consent to be bound or definitive signature.❍ Signature not yet followed by ratification.Measuring progress 206 <strong>Social</strong> <strong>Watch</strong>
How to read the <strong>Social</strong> <strong>Watch</strong> tablesHealtHunequal improvement1Summary:currentSituation(colour)recent evolution(arrow-icon)2complete table at: www.socialwatch.org/statistics<strong>2009</strong>CountrieS(Basic Capabilities indexvalue, 0-100)3tuBerCuloSiS(casesper 100,000people)PeoPlelivingwith hiv/AiDS(15-49 years old, %)infAntmortAlity(per 1,000live births)unDer-5mortAlity(per 1,000live births)f afghanistan (47) 168.3 g 165 h 254 d 196g albania (96) 16.9 g 13 g 16 g 15d algeria (96) 56.6 e 0.1 f 33 h 34 g 31american Samoa (—) 5 5f andorra (93) 18.9 f 3 h 3 h 8g angola (58) 286.5 g 2.1 g 116 g 243 g 162g antigua and Barbuda (94) 5.5 10 h 10 g 9g argentina (98) 30.8 g 0.5 f 15 f 15 g 15g armenia (95) 72.3 g 0.1 g 22 e 21 g 29g australia (99) 6.2 g 0.2 f 5 h 5 g 4f austria (99) 12.4 f 0.2 f 4 h 4 g 5g azerbaijan (96) 77.1 g 0.2 f 34 g 84 d 49e Bahamas (99) 44.2 f 3 f 12 g 12 g 18g Bahrain (99) 40.5 g 9 h 11 f 20g Bangladesh (56) 222.5 g 47 g 65 g 112g Barbados (98) 3.6 g 1.2 d 11 h 12 h 7g Belarus (100) 61 g 0.2 g 12 h 7 g 20f Belgium (98) 11.8 f 0.2 f 4 h 5 f 5g Belize (92) 40 g 2.1 h 22 f 14 g 20g Benin (77) 90.9 g 1.2 g 78 g 149 h 80Bermuda (—) 3.7 4f Bhutan (79) 246 f 0.1 f 56 g 65 g 92g Bolivia (79) 154.6 g 0.2 f 48 d 60 d 66g Bosnia and Herzegovina (98) 51.1 g 0.1 f 13 h 12 g 19f Botswana (90) 731.4 f 23.9 e 33 g 119 d 227g Brazil (90) 48 g 0.6 f 20 f 18 g 22g Brunei Darussalam (99) 59 g 8 h 8 g 25f Bulgaria (97) 38.8 g 10 g 12 g 20g Burkina Faso (71) 226.2 g 1.6 g 104 g 203 h 134h Burma/Myanmar (73) 170.9 e 0.7 g 74 h 104 h 87g Burundi (61) 367 g 2 g 108 h 175 d 163g cambodia (66) 495.1 g 0.8 g 70 f 75 g 160g cameroon (77) 191.7 g 5.1 e 87 h 142 d 106e canada (99) 5.1 f 0.4 f 5 h 5 g 4g cape verde (93) 150.5 g 24 d 32 g 69cayman islands (—) 3.7 4g central african republic (65) 345.1 g 6.3 g 113 d 174 h 160g chad (44) 298.7 g 3.5 f 124 h 204 d 158g chile (99) 12.3 g 0.3 f 8 h 8 g 7g china (95) 98.3 g 0.1 f 19 d 27 f 36g colombia (94) 35.4 g 0.6 f 17 h 17 g 18g comoros (79) 42 g 0.1 g 49 d 63 g 39g congo Dr (68) 391.7 g 108 g 193 g 231g congo, rep. (76) 403.1 g 3.5 g 79 h 121 d 152g cook islands (98) 16 h 16g costa rica (93) 11 g 0.4 f 10 g 11 g 8g côte d'ivoire (74) 420.5 g 3.9 g 89 d 106 g 155g croatia (100) 40.3 g 0.1 f 5 h 6 h 13546referencesCurrent SituAtion(latest available data)Better situationabove averageBelow averageWorse situationreCent evolution (Between mostrecent and previous available data)g Significant progressd Slight progressh Stagnante regressionf Major regressionvalue78SourCeS:tuberculosis: World Bank (www.worldbank.org).People living with hiv/AiDS: World Bank(www.worldbank.org)9infant mortality: uniceF (www.unicef.org/sowc09).under-5 mortality: uniceF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>Summary:currentSituation(colour)recent evolution(arrow-icon)note:CountrieS(Basic Capabilities indexvalue, 0-100)tuBerCuloSiS(casesper 100,000people)PeoPlelivingwith hiv/AiDS(15-49 years old, %)infAntmortAlity(per 1,000live births)unDer-5mortAlity(per 1,000live births)g Slovenia (99) 12.9 g 0.1 f 3 h 4 h 5g Solomon islands (—) 127.8 g 53 d 90g Somalia (48) 248.7 g 0.5 g 88 d 145 h 121g South africa (89) 948.2 d 18.1 f 46 g 69 h 270f Spain (100) 29.6 f 0.5 f 4 h 4 h 10f Sri lanka (96) 60.5 g 17 f 13 h 30g St Kitts and nevis (95) 9.3 g 16 g 19 h 15g St lucia (98) 14.3 g 0.6 14 f 14 h 11g St vincent and Grenadines (95) 24.7 g 17 h 20 h 21g Sudan (70) 243.3 g 1.4 d 69 f 89 h 101f Suriname (82) 116.3 f 2.4 f 27 g 39 h 46e Swaziland (80) 1198 f 26.1 g 66 g 164 h 364f Sweden (100) 6 f 0.1 g 3 h 4 f 3f Switzerland (97) 6.1 f 0.6 f 4 h 5 h 4f Syria (95) 23.6 15 f 13 g 17g tajikistan (89) 230.7 g 0.3 f 57 e 68 h 89g tanzania (73) 297.4 g 6.2 e 73 d 118 h 124g thailand (96) 142.3 g 1.4 f 6 g 8 h 39g timor-leste (56) 322 g 77 f 55 h 151g togo (68) 429.2 g 3.3 f 65 g 107 h 151g tonga (96) 24 g 19 d 24 h 22d trinidad and tobago (95) 11.2 f 1.5 g 31 g 38 h 20d tunisia (95) 26 g 0.1 g 18 g 23 h 17g turkey (92) 29.6 g 21 g 26 h 26g turkmenistan (88) 68.5 g 0.1 f 45 h 51 h 41g tuvalu (89) 30 d 38 h 34g uganda (59) 329.6 g 5.4 g 82 f 134 h 138g uklraine (99) 101.5 g 1.6 f 20 h 24 h 37g united arab emirates (100) 15.8 g 7 g 7 g 10f united Kingdom (99) 15.3 f 0.2 f 5 h 6 h 7f united States of america (98) 4.2 f 0.6 f 7 f 7 g 5g uruguay (98) 22.3 g 0.6 f 12 f 15 f 12uS virgin islands (—) 10.1 10g uzbekistan (93) 112.6 g 0.1 g 36 g 44 e 48f vanuatu (87) 77.1 f 28 g 36 h 47e venezuela (94) 33.6 g 17 g 21 24g vietnam (93) 171.2 g 0.5 f 13 g 17 h 50e West Bank and Gaza (—) 19.9 24 f 22g Yemen (59) 76.5 g 55 g 100 h 77g Zambia (71) 506.1 g 15.2 d 103 h 182 h 202f Zimbabwe (77) 782.1 f 15.3 g 59 g 85 g 2351. evolution: evolution of indicators obtained by re-escalatingthose values resulting from the relative rate of variation amongthe following ranks:Minor than -5: significant progress; Between -5 and -1: slightprogress; Between -1 and 1: stagnant; Between 1 a 5:regression; Larger than 5: significant regression.9Definition of inDiCAtorS:tuberculosis (cases per 100,000 people): total numberof tuberculosis cases reported to the World Healthorganization per 100,000 people. a tuberculosis caseis defined as a patient in whom tuberculosis has beenbacteriologically confirmed or diagnosed by a clinician.this rate is obtained from the following operation:(<strong>2009</strong> value – 2008 value/ 2008 value)*1002. value reached by the index: the value results from addingthe values calculated for each dimension and dividing theresult by the total number of dimensions presenting data.People living with hiv/AiDS (15-49 years old, %):Percentage of adults (15-49 years) living with Hiv/aiDS.infant mortality (per 1,000 live births): number of infantsdying before reaching one year of age, per 1,000 live birthsin a given year.valueSourCeS:tuberculosis: World Bank (www.worldbank.org).People living with hiv/AiDS: World Bank(www.worldbank.org)infant mortality: uniceF (www.unicef.org/sowc09).under-5 mortality: uniceF (www.unicef.org/sowc09).For more detailed information on the referenceyears of the data see complete tables at:www.socialwatch.org/statistics<strong>2009</strong>3. Stagnant evolution: in those indicators showing stagnantevolution in all their values, said evolution responds to lack ofupdating, being reproduced those values registered in 2008.SourCe: World Development indicators <strong>2009</strong>, World Bank(www.worldbank.org).under-5 mortality (per 1,000 live births): Probability of dyingbetween birth and exactly five years of age expressed per 1,000live births.Methodological notes and guidelines at the endof the section.Measuring progress 194 <strong>Social</strong> <strong>Watch</strong><strong>Social</strong> <strong>Watch</strong>197HealthThe thematic area tables present thestatistical information available foreach indicator.1. Current situation in the area:Illustrates the current situation of thecountries in the corresponding dimensionthrough a summarizing measurementthat evaluates countries basedon their performance on the set of indicatorsincluded for which informationis available (see box “Methodologicalnotes: Thematic tables”). Thedifferent categories are colour coded(see References: 7).The categoriesare: Better situation, Above average,Below average, Worse situation.2. Evolution in the area: Presentsthe evolution of country situations asan average of the evolution in indicatorsfor which sufficient informationis available (see box “Methodologicalnotes: Thematic tables”). The categoriesare indicated by symbols (see 7).Categories are: Major regression, Regression,Stagnant, Slight progress,Significant progress.3. Basic Capabilities Index (BCI)value: Presents the values of theBCI for each country, a measurementdesigned by <strong>Social</strong> <strong>Watch</strong> thatevaluates country status with regardto the basic conditions of development(for more information, see thebox “Technical notes: BCI design incountries” in the “Basic CapabilitiesIndex 2008” article in this <strong>Report</strong>).Countries with the highest BCI scoresare listed first.4. Indicator: Each thematic area includesindicators that are pertinent toevaluating the dimension in questionand for which information is availablefrom a large number of countries. Thismakes it possible to visualize the situationin each country while comparingthe distances between them. Thedefinitions of each indicator can befound on the right or at the foot of thecorresponding table (see 8).5. Current situation: This columnpresents the latest data available foreach country according to the sourceconsulted. These figures allow us toevaluate and compare the presentsituation in the countries of the world.Given that in many cases, the latestavailable figures are not up to date, it isimportant to take into account the timeperiod to which the data correspond.6. Evolution: Based on current andinitial data, 1 the rate of progress orregression over the intervening timeperiod is calculated for each countrywith reference to the evolution of all ofthe countries in this indicator (see box“Methodological notes: Thematic tables”).The result is expressed graphically(see 7), facilitating the readingand evaluation of performance inthe indicator during this period. Thecategories are: Major regression, Regression,Stagnant, Slight progress,Significant progress.1 Initial data or starting point: Presents theavailable information from as close aspossible to 1990 (the year that is takenas the starting point in the internationalcommitments that set quantitative goals indifferent aspects of social development).7. Value reached in the index:Presents the value resulting from addingthe reached values in each dimensionand dividing by the total numberof data dimensions.8. References: Shows the categoriesof the Current situation ina country in the area and the Recentevolution for each indicator and forthe whole area. These variables areconstructed by <strong>Social</strong> <strong>Watch</strong> to facilitatethe evaluation of countries in eacharea based on the information available(see box “Methodological notes:Thematic tables”).9. Definitions, Notes and Sources:The definition of each indicator as wellas the source(s) of the informationused are provided on the right side orat the foot of the corresponding table.The information used for the indicatorsis obtained from recognized internationalorganizations that compile thestatistics produced by the countries.Notes have been added with informationneeded to read the tables.<strong>Social</strong> <strong>Watch</strong>207 How to read the <strong>Social</strong> <strong>Watch</strong> tables
Methodological notes: thematic tablesMeasurement of the current situationof countries and the rate of changeThe situation a country is in, according to each indicator, is givenby the latest available value for that indicator.Each country is assigned a color according to the distributionof values on each indicator, 1 and an average of these valuesis then given for all the indicators in that area. In this way a selfreferentialranking is obtained, independent of distance fromgoals or from specific conceptually defined levels.This ranking was only applied to those countries with informationavailable for at least half the indicators that make up eachoverall thematic area.To avoid giving a false impression that the data are exactvalues, the average values were rescaled to create four countrycategories:The values for this rate of change have also been rescaledin sections (using a reference scale of 1 to 5), and in the tablesthese appear in a column to the right of the current indicatorvalue. A series of symbols are used to illustrate changes in orderto make the information easier to read (numerical values are notused because they would tend to give the impression that theinformation is exact, which in this case it is not).The categories defined in this rescaling are as follows:gdheSignificant progressSlight progressStagnantRegressionCountries in better situationfMajor regressionCountries above averageCountries below averageCountries in worse situationCountries for which sufficient information to be included inthe ranking is lacking (Countries with insufficient data to summarizethe area) are also shown.Recent evolutionThe evolution of countries on each indicator is evaluated bycomparing the latest data available with previous information.This procedure involves assessing the country’s initial and finallevels in the two latest reports. The rate of change is the relativeproportion of variation in relation to the latest data available,which is why this is a rate of variation (an incremental rate basedon 100).Significant progress applies to those countries which areprogressing at rates above the average for all countries makingprogress.Slight progress applies to those countries which are progressingat rates below the average for all countries makingprogress.Stagnant refers to those countries where no changes (orquantitatively insignificant changes) have been recorded overthe period in question.Regression applies to those countries which are regressingat rates below the average for all countries regressing (i.e. theyare regressing more slowly).Major regression applies to those countries which are regressingat rates above the average for all countries regressing(i.e. they are regressing more rapidly).In addition, an average of progress and regression of theindicators is built for each dimension for which information onrecent evolution is available. The average appears in the column“Recent evolution” of the area, and values are also rescaled toobtain the aforementioned five categories. n1 For this, the variable was normalized (by subtracting the mean and dividingby the standard deviation) and then the mean positive values and the meannegative values for the normalized indicator were calculated. The fourcategories were established according to the values above and below themean positive values for the normalized indicator, and the values above andbelow the mean negative values for the normalized indicator.Measuring progress 208 <strong>Social</strong> <strong>Watch</strong>
Basic Capabilities Index (BCI) andGender Equity Index (GEI)BCIThe Basic Capabilities Index (BCI) is an index-summarydeveloped by <strong>Social</strong> <strong>Watch</strong> 1 that comparesand classifies countries in accordance with theirprogress in social development. This is a useful toolfor monitoring the evolution of basic indicators andto make comparisons between and within countries.The BCI evaluates society in different countries asregards some basic minimum capabilities that arethe essential starting conditions to enable people tohave an adequate quality of life.The index uses three indicators to identifysituations of poverty: survival until the age of 5, thepercentage of children who reach the 5th grade atschool and the percentage of births attended byskilled health personnel. These indicators expressdifferent dimensions that are included in internationallyagreed development goals (education, infanthealth and reproductive health).Unlike other poverty indicators, such as thoseused by the World Bank (which consider the numberof people living on less than one or two dollars perday) or the classification developed by the UNDPbased on the Human Development Index (whichcombines income figures with health and educationindicators) the BCI is based on the latest informationavailable for each country and is easier to construct.It can be applied on the sub-national and municipallevels and does not depend on costly household surveys,which indexes based on income require.The BCI does not use income as an indicator. Itemploys a definition of poverty which considers thelevel of development of a person’s capabilities andthe possibility to exercise and enjoy his or her human1 The BCI was originally based on the Quality of Life Indexdeveloped by the non-governmental organization Actionfor Economic Reforms-Philippines, which in turn wasderived from the Capability Poverty Index proposed byProfessor Amartya Sen and popularised as the UnitedNations Development Programme (UNDP) HumanDevelopment Index.rights to a greater or lesser extent. This index hasproved to be highly correlated with measurementsof other human capabilities that reflect the socialdevelopment of countries.Each country is assigned a value on the BCI,and then its evolution over time can be evaluated andcomparisons with other countries can be made. TheBCI indicators attain their maximum level when allwomen receive skilled health care during childbirth,when no child drops out of school before completingthe fifth grade and when infant mortality is reducedto its minimum possible level of less than five deathsamong children under 5 per thousand live births.These indicators are closely connected to the capabilitiesthat the members of a society must have.These capabilities mutually reinforce each other tomake greater individual and collective developmentpossible. Particularly important in this context arethe capabilities that facilitate the incorporation ofyoung people into society, as this is essential to promotethe future development of countries.Note that a BCI value of nearly 100 does notnecessarily mean a high level of social development;it merely means the country has achieved universalcoverage in the essential minimum requirements tobe able to progress towards improved well-being.This is the starting point, not the finish line.GEI<strong>Social</strong> <strong>Watch</strong> developed the Gender Equity Index(GEI) to make gender inequality situations in countriesvisible and measurable, and to monitor theirevolution over time. The GEI is based on informationthat is available and comparable internationally. Itmakes it possible to position and classify countries inaccordance with a selection of important indicatorsof gender inequality in the dimensions of education,economic participation and empowerment.The GEI gives a simple and direct reading socountries can be compared easily. For the purposesof measurement, proportional relations have beenascertained, in other words the ratio between thesexes, so the structure of opportunities as regardsgender inequity can be inferred.The index measures the gap between womenand men, not their well-being. Thus, for example, acountry in which young people of both sexes haveequal access to university education receives a valueof 100 on this point, and a country in which girls andboys are both equally impeded from completing theirprimary education would also receive a value of 100.This does not mean that the education is of adequatequality but that, in this case, girls do not suffer frominequity in participation.The GEI is calculated to respond to the need toreflect all situations that are unfavourable to women.Therefore, when there is a proportional relationdisadvantageous to women in comparison to men,the GEI does not register its maximum value of 100points. Thus the final value attained depends on thedegree of negative inequity for women in a givencountry or region, because it reflects inequity in aninversely proportional way: the greater the inequitythe lower the value on the index, and vice versa.No indicator value can exceed 100 points (completeequity in participation) 2 even if there are inequitiesthat are positive for women. This asymmetrymeans the GEI cannot and should not be read asa percentage of participation of the population ingender relations because the proportion of participationmay ultimately register as being very different ifsome of the indicators are favourable to women. n2 The relative participation of women in one specific area (forexample ‘university professionals’, which is one of the fourindicators in the ‘empowerment’ dimension) is divided bythe relative weight of men in that situation. The ratio obtainedis multiplied by 100. If the resulting value is over 100,indicating that women’s participation exceeds that of men,the value is taken as 100. This is done so that, in the finalvalue on the index, participation rates that are favourable towomen in some specific situations shall not conceal negativeparticipation rates in others.Methodological notes for the ICBProcedure 1. There is no information for the country in one of the indicatorsof the index for the current period, but information does exist for the previousperiod. In order to calculate the present value of the BCI the indicator’sdata was standardized (subtracting the mean and dividing by the standarddeviation), and then the mean positive and negative values were calculated toform four categories (best situation, above average, below average and worstsituation). The country was situated in the corresponding category accordingto the value of the indicator of the previous period and the group indicatormean was assigned to it, now on the basis of present period data. That is, thisindicator is assumed to be in an “average” situation within the group.Procedure 2. There is no information for the country in at least one of theindicators of the index for neither the current nor the previous period. Inorder to calculate the present BCI value, the average was calculated forthe indicators for which the country showed data (I1+I2, I1+I3 or I2+I3, asappropriate), within its region. The resulting variable was standardized andthen re-scaled above and below the standardized mean according to thefour categories generated, placing the country within this categorizationand awarding it the information for the absent indicator corresponding toits lower limit. n<strong>Social</strong> <strong>Watch</strong> 209
ISSN: 0797-92310797-9231S O C I A L W A T C H R E P O R T 2 0 0 9SENEGAL: The environmental crisis resulting fromglobal warming has reduced fishing (...) Fishing isan important source of resources for the primarysector and one of the main sources of protein forthe population.DEVELOPING COUNTRIES: ... the poor spend upwardsof 50% of their income on food – the poorest spend80% or more. The increase in food prices hasincreased not just poverty, but also hunger.SUB-SAHARAN AFRICA: ... women continue to bethe first to lose their jobs and are increasinglyfinding themselves engaged in petty informaltrading of vegetables and tomatoes as a copingmechanism.CLIMATE CHANGE: The Least Developed Countries,who contributed the least in pollution, will sufferthe most. Many small island developing states mayone day just disappear from the map.LEAST DEVELOPED COUNTRIES: Unprecedented foodcrises, triggered by soaring food prices and leadingto “food riots”, have shaken over 30 LDCs, whereworkers and peasants have become unable to affordfood items basic for survival.ARAB REGION: ... as a result of the food crisis, around31 million people in the region are hungry (about 10%of the total population).BENIN: The price of maize, the most widely consumedproduct, soared 220%.CAMBODIA: More than 90% of the workers laid offwere women from rural communities.CANADA: ... women are over-represented in parttimeand precarious work and are often the first tobe laid off.GHANA: Initial damage has included decreasingexports and remittances from abroad and gallopingdevaluation.INDIA: ... there has been drastically reduced growthin personal and consumer loans and industrialproduction.MALAYSIA: ... the coming recession could be worsethan that of 1997.NICARAGUA: ... more than 400,000 children could diefrom avoidable causes as a result of the crisis.PERU: ... 200,000 layoffs, as well as a fall in thepurchasing power of wages and savings.UNITED STATES: ... many of those fortunate enoughto own homes have lost all or most of their equityor are trapped in mortgages that now far exceed thevalue of their house.POLAND: ... the growth of the grey – informal –economy will affect women more than men, as theyare more often engaged in low-paid jobs, especiallyin the private service sector.<strong>Social</strong> <strong>Watch</strong> is an international network of citizens’ organizations struggling to eradicate poverty andthe 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 peoplenot to be poor.<strong>Social</strong> <strong>Watch</strong> holds governments, the UN system and international organizations accountable for thefulfilment of national, regional and international commitments to eradicate poverty.
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