Speech by President of the Republic of Finland Tarja Halonen at the General Assembly of Solidar in Brussels on 8 November 2006

(check against delivery)

It is a great honour for me to address the Annual General Assembly of Solidar today. I very much appreciate the work done by Solidar. Your activity can make a difference in the field of social policy, lifelong learning and development cooperation.

Globalization can be and should be reformed. It should benefit people, not just serve the needs of the markets. We have to take the environment into account too and work together to combat climate change – it is vital for well-being of us all. The benefits and disadvantages of globalization are not evenly spread within or between countries. This was the basic premise for the work of the World Commission on the Social Dimension of Globalization set up by the ILO, which I had the honour of co-chairing with Benjamin Mkapa, the then President of Tanzania. The Commission started its work in March 2002 and finalised its report in February 2004.

Since then, many positive things have happened. The Commission’s thoughts have been taken on board by the United Nations, the World Bank, the International Monetary Fund and many other global organizations. There are also demands all over the world — in both Europe and Africa — for a more humane and caring kind of globalization.

The Silver Rose Award that you have decided to award to me belongs not just to me but to the World Commission as a whole and also to all those people who have helped us translate these ideas into real action. I am happy to be here with you today, because a great deal of cooperation is still needed – both at the EU level and globally – to make a lasting impact in people’s everyday lives.

The problems we face are not always due to globalization as such but to a lack of control. The world market has grown rapidly, but the economic and social institutions required to govern that market smoothly and equitably have not developed at the same rate.

Globalization affects Europe, and Europeans can influence globalization. In international competition, the European Union provides its Member States two advantages: firstly, the Union forms a relatively large internal market — something which we have not yet exploited enough and which needs further work. And secondly, the Union can participate in international debate and negotiations with more weight than its Member States would carry individually.

Member States must of course also ensure that their individual competitiveness is strong and based on socially fair rules. I would like to talk about the European Union and its Member States first.

The Union has good potential for succeeding in international competition. Our societies are based on democracy, respect for human rights and the rule of law. In order to response to global challenges, we need both economic growth and employment. They are important to our citizens. There is no single uniform social model in Europe. There are differences in Member States’ employment, social and health care policies. But it is important that we have a common view on shared values and on certain minimum standards. And all of us need to participate closely in this work. Strengthening the social dimension in Europe is a strong contribution towards a fairer globalization.

Welfare and competitiveness are not mutually exclusive. I believe firmly in the Nordic model, which combines the dynamism of the market economy with a strong emphasis on human resources, particularly on education and research but also on social well-being. It is a model which is fair to the individual but which also supports the common good. Social security makes it easier to adapt to changes, for both the individual and society in general. Good governance that is free of corruption is also a competitive factor. This – for example – enables joint action by the private and public sectors in research, which can help translate scientific results into practice more quickly.

I say all this with solid justification, since several international surveys examining competitiveness and sustainable development have given all five Nordic countries top marks. These five countries have assumed a slightly different approach to European integration. Of the five, only Finland is both a Member State of the European Union and a member of the Eurozone.

Of course, other national applications can be created from the same elements. But I would like to repeat that it is important that at the EU level we have shared goals. And indeed we have a programme that incorporates such goals: the Lisbon Strategy.

The Union has not – however – developed according to the ambitious goals entered in the original Lisbon Strategy in 2000. The EU was to become the world’s most dynamic and competitive economic area based on knowledge and social justice by the year 2010. The Lisbon Strategy can provide a fine and balanced programme to respond to the challenges of globalization. The Strategy itself has not been the problem; it has just not been put into practice effectively enough in the Member States.

The Lisbon Strategy has now been revised so that Member States are free to decide on what are the most urgent measures to boost growth and employment. I hope that the implementation of the Strategy will now pick up speed and that we shall not ignore the overall aims of sustainable development and social cohesion. This is important also for the good and fair functioning of the internal market. Finland remains highly committed to the Lisbon Strategy and has made good progress in attaining its goals.

* * *

I would like to take up a few more points about competitiveness and fairness. Gender equality is a very important issue in this increasingly globalized world, where both good and bad things nowadays spread more quickly worldwide than ever before. This year in Finland, we are celebrating the centenary of universal suffrage. The political reform – undertaken in a tiny and poor nation one hundred years ago – was an unusually radical step even by international comparison. Finland was the first nation in Europe to give women the right to vote and the first in the world to allow them to stand for parliamentary election. There are probably a number of reasons why the status of women was fairly strong in Finland already at that time. One reason for this is that the rough northern conditions required hard work and solidarity from everyone – men and women alike.

But what exactly did this reform achieve? From the start, women in Finland have been deeply involved in promoting issues important for women and in building the Finnish welfare society. From the perspective of women, Finland remains a pioneer in many areas even today. The reconciliation of work and family life is easier in Finland than in many other countries. This is made possible by the family leave system, the smoothly running daycare system and free school meals.

Our education system offers equal opportunities for boys and girls. Girls perform well at school, and Finnish women of working age are already more highly educated in general than men. Gender is no longer a major career handicap. Gender equality, the welfare society and economic prosperity are closely connected. I firmly believe that the full participation of women in society is not only right in terms of equality but also improves competitiveness.

* * *

For a fairer globalization, it is important that we Europeans, in improving our own societies, hold up the values that we defend. And these values are not just for us, they are for everyone in the world.

Our fellow humans elsewhere in the world often face extremely difficult problems. Violence against women in wars and other conflicts has in some places become more severe. And poverty unfortunately very often has the face of a woman. A fairer globalization calls for a stronger emphasis on development policy and fairer rules for international trade.

The interruption of the Doha Round of talks of the World Trade Organization should be a cause for concern for all of us – for industrial and developing countries alike. The principal goal of the EU has not changed. We still aim to conclude the Doha Round successfully. The commonly agreed rules provide stability and predictability to the global economy.

I would like to say a word in favour of a coherent EU approach. Supporting the United Nations and its development policy is vital for achieving a fairer globalization. It is crucial that the entire UN family is acting together in a consistent manner. The outgoing Secretary General of the United Nations, Kofi Annan, has done an excellent job in merging the goals for peace and development together (by stressing the triangle formed by development, security and human rights). This kind of thinking has had positive indirect effects such as the awarding of the Nobel Peace Prize to Muhammed Yunus and the Grameen Bank for the micro-finance scheme. It is important that the EU supports the broad security agenda and gives strong support both to peace efforts and to development policy.

The policies of the EU have become more coherent, but further work is still required. The crisis management policy of the EU must rest on the combination and efficient co-ordination of military and civilian action. In order to gain sustainable solutions, the Union must be a committed long-term partner by means of humanitarian aid, trade policy, development policy and environmental policy. The EU must also emphasize the social dimension of globalization in its external relations. A decent job that allows one to support one’s family is still a dream for far too many. The EU must strongly take forward the ‘Decent Work for All’ agenda in the international arena.

We must all make a contribution to make change happen. Non-governmental organizations have a very important role to play in this respect. Their encouragement, support and practical examples are decisive in improving the awareness of different options.

I am sure that we can make the world a better place. Often we are faced with difficult choices. Today, I have chosen to tell you that sometimes it is not necessary to make such difficult choices if we just stop and think for a little while longer. A fairer globalization is a better option.