Contribution by President of the Republic of Finland Tarja Halonen at a High-Level Round Table Discussion arranged by the CEPAL Research Institute in Santiago de Chile on 7.11.2003

"The global context and renewal of the UN"

The United Nations is the most central component of the multilateral international system. The international community’s ability – or inability – to respond to the challenges of today are crystallised in the UN.

A central challenge is that of eliminating poverty and guaranteeing all the people in the world a decent life. The Millennium Development Goals and their achievement are an important means in this work. These goals are concrete and implementable, and implementing them does not require enormous resources. However, it does demand solidarity and determination.

When the UN was founded, the most central task assigned to it was the maintenance and strengthening of international peace and security. The Security Council was given the primary responsibility for this task. It was also given the right to decide, on behalf of all member states, on matters concerning peace and security. Sometimes the Security Council has succeeded well, sometimes not so well.

If the UN were being founded today, it would be difficult to imagine such a narrowly based body being given powers as extensive as those that were given to the Security Council, and especially its permanent members.

Secretary-General Kofi Annan appointed earlier this week a high-level panel to study and make proposals on how improve the multilateral system’s ability to maintain international peace and security.

I applaud the Secretary-General’s decision to set up the panel and sincerely hope its proposals will lead to a strengthening of the multilateral system.

Today, I shall deal with a third topical challenge facing the UN and the entire world community, namely: globalisation and its management.

Globalisation is not about economic integration and liberalisation only, but also very much about a mixture of social issues. Issues which relate to the everyday worries and joys of citizens of this world we share.

The World Commission on the Social Dimension of Globalisation, which I have the honour to chair together with President Benjamin Mkapa of Tanzania, deals exactly with these matters. In other words, how globalisation affects ordinary people’s lives.

Our starting point has been that globalisation is and must be a positive process. Globalisation has to respond to the needs of people. On this basis we have formulated a vision for change. The main points in our vision are:

The current course of globalisation must change. Present situation is not ethical, nor politically feasible Too few share in its benefits. Too many have no voice in its design and no influence over its course.

The results of globalisation are what we make of it. While history and geography set the points of departure, much depends on the way it is managed and the values that inspire its actors.

We wish to make globalisation a force to increase human freedom and wellbeing, and bring democracy and development to the communities where people live.

Globalisation needs also to be in balance with the environment so that it can be a force for sustainable development.

The principles that I believe must guide globalisation should also be reflected in national institutions, rules and political systems. The basic principles are democracy, human rights and the rule of law.

Managing globalisation is bound up with national governance. Countries that are poorly governed, lack economic or social capabilities, or restrict the creativity and liberty of their people will not be able to take advantage of opportunities globalisation. Well-governed countries are more effective partners in bringing about a fair and more inclusive process of globalisation.

For these reasons it can be said that the response to globalisation begins at home.

Regional integration and cooperation can promote a more equitable pattern of globalisation in many ways.

They can empower people and countries to manage global economic forces. By effectively increasing the size of domestic markets, integration increases the capacity to withstand external economic fluctuations.

Regional co-operation can help build the capabilities needed to take advantage of global opportunities. Investment in skills, infrastructure, research, technology and support for innovation will often require a critical mass of effort more readily achieved at regional level.

Regional co-operation can improve the conditions under which people connect to the global economy. When social goals are built into regional integration, it provides a starting point for building them into the wider global economy.

Increasing globalisation has given rise to a broadening range of issues that can be effectively dealt with only through collaborative global action. Examples of these include the problems of financial contagion, communicable diseases, cross-border crime, tax havens and tax competition.

The response to these new challenges so far has been unsystematic. What has emerged to date is a fragmented and incoherent system consisting of a patchwork of overlapping networks and agencies in the economic, social and environmental fields.

We need a more coherent approach to these challenges. This could be done under the leadership of the UN.

The UN’s role in the management of international economic and social affairs should be strengthened. The UN Charter gives the Economic and Social Council (ECOSOC) the principal responsibility for promoting coordination.

However, ECOSOC has not been able to meet this challenge. Its ability to influence the development of globalisation in the sectors of trade, financing, investment or technology is only slight. Most decisionmaking is done elsewhere. There is a clear need of revitalising the ECOSOC.

The UN needs more effective action in efforts to harmonise economic and social goals and accomplish the goals that have been set. The Millennium Development Goals are a good example of this.

In the fields of economic and social development, also the actions of the Bretton Woods Institutions could be better balanced. Besides economic growth and stability, there should be enough emphasis on social justice and employment. All countries share the goal of better employment, whether rich or poor.

Humankind faces big global challenges. Pollution, communicable diseases and international terrorism do not respect national borders. The solutions to these challenges can be founded only on cooperation. At the same time, the multilateral system, its functionality and its credibility face challenges. The UN should be at the centre of action, not on its fringe.

The UN is an organisation for which there is no substitute. Its primary role in the management of the world’s affairs should be strengthened. A well-functioning, efficient and fair multilateral system is the best answer to global challenges.