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FIGURE 1 Increase in after-tax income by income group, 1979-2007 (in 2007 dollars) 300 250 200 150 100 50 0 16% Bottom 20% Less than $ 20,500 23% Second 20% $ 20,500 - $ 34,300 25% Middle 20% $ 34,300 $ 50,000 35% Fourth 20% $ 50,000 $ 74,700 Source: Congressional Budget Office, Average After-Tax Household Income, June, 2010 as compiled by www.inequality.org. Getting Real About Social Protection and the Social Contract A recent report found that 65.7 million Americans provide unpaid care to a family member; the majority of these care-givers are women (66.6%). Additionally, three-quarters of caregivers are employed in addition to their care-giving responsibilities. The value of these services is estimated at USD 375 billion a year. Despite these numbers, 47% of working caregivers report that they have had to use their savings to cover the high costs of care-giving. The United States can and must move beyond the current shortsighted debate about so-called entitlement spending to embrace the reality that investing in children, communities, eldercare and healthcare are fundamental features of a modern democracy and strong, resilient economy. A recent International Labor Organization’s (ILO) report, noted that ensuring basic social protections can be a powerful tool for ensuring sustainable growth, addressing poverty and mitigating the impact of the economic crisis. The report goes on to frame social 95% Top 20% $ 74,700+ 125% Top 10% $ 102,900+ 160% Top 5% $ 141,900+ 281% protection as both a human right and a human need. These rights’ based approaches to economic development are likely to find resonance in the current environment. Getting Serious About Sustainability The primary goal of domestic and international economic and development policy must be to ensure must place human and community. Redesigning the economic model through this lens is an undertaking that has global, national and community dimensions. It requires, for example, rethinking the increased reliance by US-based companies on global supply chains that have profit maximization as their sole objective. The inherent risk and potential for abuses of human rights and global ecosystems in global production chains has reignited interest in relocalization and other more sustainable business practices. The recent tragedy in Japan and the spike in oil prices of 2007-08 have prompted some reexamination of these trends among the business community. The time has long since passed for questioning whether the United States Social Watch 183 United States Top 1% $352,900+ and the world can afford the continuation of approaches that have profit maximization as their prime directive. Interest in solidarity economy and responsible business movements, worker owned companies and cooperatives that bring high quality economically and ecologically sustainable living wage jobs to their communities is increasing. Cities like Cleveland and Detroit, hard hit by past, short-sighted trade policy and the recession are reinventing their economies by focusing on the express goal of building wealth, decent jobs and anchoring capital in the community. Others still, are exploring the benefits of community food security initiatives, community-owned banks and participatory budgeting. Fiscal and monetary policy measures that encourage these trends are needed in order to bring these efforts to scale. Changing American consumption patterns is key to achieving sustainable development and addressing the devastating impacts of climate change domestically and globally. The United States is home to 5% of the world’s population, yet it consumes 25% of the world’s energy and is responsible for 22 % of the world’s industrial carbon dioxide emissions, a leading cause of global warming. The daily consumption of 19,150,000 barrels of oil per day is more than all of Europe and twice that of China. The United States has a unique responsibility and opportunity to make aggressive and affirmative efforts to pursue domestic and international policies that are geared toward the well-being of Americans and the rest of the human race. Citizens Must Take Center Stage The consensus that the current economic models are deeply flawed and act to deepen and reproduce harmful inequalities is growing. The Occupy Wall Street, domestic human rights and other citizens’ movements have given voice to the growing number of Americans demanding a completely different approach to the economy and a new social contract. The task of building and re-imagining a new economy is urgent and will not be achieved by mere tinkering around the edges of the failed model which created the current crisis. As long as citizens continue to demand and take their rightful place in the democratic and policy processes, America’s best years can still be ahead of her. n
veneZuela The unfortunate consequences of extraction-based growth Programa Venezolano de Educación-Acción en Derechos Humanos (Provea) Rafael Uzcátegui Since the early 20th century development models in Venezuela have been based on an extractive economy and the export of energy resources. When Hugo Chávez became president in 1998 he criticized past governments and claimed that his model was a new departure and that, unlike previous ones, it was “supportive” and “endogenous.” He summed up his overall policy as “Oil Socialism … This is our model … We have this oil wealth … We cannot think of Oil Socialism without the oil industry… [and this resource] gives our economic model an unusual form.” 1 Various social and human rights organizations warned that this policy was not sustainable, as the social programmes or “missions’ that benefit large sectors of the population depend on inflated profits stemming from high oil prices on the world market. According to the 2011 budget law, 2 income from exports in the energy sector would account for 27.6% of the total money available for expenditure so long as the oil price remained at or above USD 40 per barrel, which was near the previous year’s price. However, experts such as José Guerra, former president of the Central Bank, argued that this estimate did not reflect the real situation since oil prices were oscillating around USD 100, which meant the Government had considerable additional funds to manage at its discretion and were difficult for civil society organizations to keep track of. International prices for crude oil have now recovered, but there was a recent period of economic crisis during which, according to official figures, 3 the Venezuelan economy contracted for 18 consecutive months. This resulted in spending cuts for social policies (except the education sector) and as a result the “missions” stagnated and social conflict worsened. According to reports by two human rights organiza- 1 Ministerio del Poder Popular para la Comunicación e Información, Programa Aló Presidente 288, . 2 Ministerio del Poder Popular de Planificación y Finanzas, Ley de Presupuesto para el Ejercicio Fiscal 2011, . 3 See . The economic model pursued under the Government of President Chávez bears the stamp of neoliberalism and is in fact a continuation and expansion of resource extraction. It has had serious negative environmental consequences and has proved unable to meet people’s needs. There has been some improvement in education but other areas of basic rights like health and housing have regressed. Social development programmes have been cancelled or neglected and the Government, which disdains dialogue with the opposition or with critical civil society organizations, is weakening democracy by implementing far-reaching changes to the 1999 Constitution. The country needs to design a development model that is genuinely sustainable. Basic Capabilities Index (BCI) BCI = 95 Births attended 100 0 Children reaching 5th grade National reports 184 Social Watch Surviving under-5 tions in Venezuela, Espacio Público and PROVEA, in 2010 there were at least 3,114 protest meetings and marches in the country, continuing a steady rise in the number of demonstrations. 4 Development based on oil The basis of the Government’s development model is large oil, gas, mining and infrastructure development projects, but these have serious socio-environmental impacts and are not sustainable in the long term because they are based on extraction-led growth. This exploitation of the country’s oil and gas resources has also interfered with policies that would benefit various sectors of society. One clear example is the project to mark out the boundaries of indigenous lands in compliance with article 119 of the Constitution. This demarcation process was due to have been completed in 2002 but the initiative is now at a standstill. One well-known critic points out that while President Chávez and other members of the governing institutions claim to have renounced capitalism and neoliberalism, the country’s development model is continuing and expanding the extractive system that was in place previously, which has serious detrimental effects on the environment. 5 This situation has been aggravated by the Government’s moves to break off dialogue with its critics, both in the opposi- 4 PROVEA, Public Demonstrations Report 2010, 5 M.P. García-Gaudilla, “Ecosocialismo del siglo XXI y modelo de desarrollo bolivariano: los mitos de la sustentabilidad ambiental y de la democracia participativa en Venezuela,” Revista venezolana Economía y Ciencias Sociales, Vol.15, no.1 (2009), 187-223. 91 100 100 Gender Equity Index (GEI) GEI = 64 95 98 100 Education 100 0 Empowerment Economic activity tion parties and in civil society. Sustainable development is not possible unless the warnings that people are sounding about the social and environmental consequences of oil and gas exploitation are heard and taken into account. Unlike in other oil-producing countries in the region, Venezuela has no ecology organization studying pollution caused by the oil industry in various parts of the county. Other environmental problems including deforestation 6 and serious pollution in the Valencia Lake are not being addressed. 7 Social unrest Some 36% of the demonstrations in 2010 were by people demanding labour rights. Critics of the Government have claimed that it has tried to shift the burden of the effects of the world economic crisis onto the workers’ shoulders, and at the same time is stalling on talks about collective bargaining in the public sector and in State enterprises. For the second year in a row the increase in the minimum wage –currently about USD 462– has not been enough to cover the cost of the basic consumer basket or compensate for the national currency’s loss of purchasing power. Venezuela has persistently had the highest inflation in the region and according to official sources the rate in 2010 was 30.9%. 8 To make matters worse, after several consecutive years in 6 Informe21.com, Denuncian que la deforestación en nuestro país es la segunda en América, (22 April 2010), . 7 Infociudadano.com, Situación del Lago de Valencia, (16 August 2010), . 8 See: . 28 100 65 100
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SOCIAL WATCH R E P O R T 2 0 1 2 SU
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SOCIAL WATCH REPORT 2012 The right
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Social Watch in the world SW Nation
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• GUATEMALA: CONGCOOP - Coordinac
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Española de la Educación; Movimie
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Social Watch: promoting accountabil
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Global Assembly The Global Assembly
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Table of contents The right to a fu
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The right to a future An overview o
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has similarly led to population dis
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In the current international trade
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Rio+20 and beyond: no future withou
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ated into many other international
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• Emphasizing progressive taxatio
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A compensation scheme to pay off cl
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Rio+20: implementation is the key A
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Sustainable development and a renew
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policies that have only exacerbated
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neoliberal model, it gained even mo
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Thus, the advances of the sustainab
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Networking cities that use new indi
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Green and equal: financing for sust
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fROM AID EffECTIvENESS TO TAx jUSTI
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casions, often reaching agreement.
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The indignados are asking the right
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Green jobs but no justice From the
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Human right to adequate housing and
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have its most negative impacts and
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BASIC CAPABILITIES INDEx 2011 The b
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TeChnICal noTes 1 The following are
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surviving under-5 Birth atended Chi
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education malawi 89 57 32 59 malays
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Achievement Possibility Frontiers (
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promoTIng eConomIC and soCIal rIghT
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Core Country serf Index Country Cor
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From the grassroots: NATIONAL REPOR
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Education and gender equality Accor
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- have gradually put sustainable de
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FIGURE 1 GDP - Real growth rate (%)
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diversified manner and underscored
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was re-opened shortly afterwards wi
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waste water is often polluted by hu
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“Europe is alone with its unilate
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into the atmosphere, with emissions
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The Kyoto Protocol includes an anti
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However, the Government has not tak
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One egregious example is the offici
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The grim face of militarized develo
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Cooperation Agency study stated dur
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Unemployment According to a 2009 st
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and experience their status in the
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vere reduction in productivity in t
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However, discussions about reform d
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harmful impact on the environment.
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FIGURE 1 Unemployment in Croatia me
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the Ministry of Education and Cultu
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have been more women in the judicia
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liable to arbitrary detention and c
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companies acquired State concession
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Taking a broad view, even though in
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a government which does not hesitat
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Indigenous peoples’ rights A conf
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WORLD LEVEL COMMITMENTS The world h
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A study by Diakonie, the Protestant
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TABLE 1 Trends in Forest Cover in G
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union and research groups and other
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underlying factors that generate la
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Energy consumption declining In the
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te Mitigation Action Plan for low c
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nance of an exclusionary culture in
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In terms of development cooperation
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State shall (…) ensure sustainabl
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