Speech by President of The Republic of Finland Tarja Halonen at The Globalisation Conference, Berlin, 22 November 2006

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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 positive and lasting impact on people’s everyday lives.

The World Commission on the Social Dimension of Globalisation was set up by the ILO in November 2001. I agreed to act as co-Chair of the World Commission together with Benjamin Mkapa, the then President of Tanzania. The Commission had altogether 24 members who represented a broad variety of views. The World Commission – originally a group of "not like-minded" people – managed to reach a consensus on its final report "A Fair Globalisation: Creating Opportunities for All". The report was published in 2004. I want to express my sincere thanks to Director-General Somavia for the support he has given to the work of the World Commission and also to Doctor Ernst Ulrich von Weizsäcker, member of the World Commission and Chairman of the Bundestag commission on globalisation.

Fair globalisation means more focus on people and on their needs – instead of just serving the needs of the markets. In this work, we have to take the limits set by the natural environment into account, too, and work together for sustainable development. The message of the World Commission is critical, yet positive. Globalisation has a dual face. But globalisation can be and should be reformed. The benefits of globalisation can be expanded; its results shared in a better way; and many of its problems solved. The resources and the means are at hand. The World Commission report reinforces the fact that one must never fall into the 'trap of one truth'.

Since the report was launched, many positive things have happened. It has been rewarding and encouraging to note how the issues raised by the World Commission and the demand to address the social dimension of globalisation have been integrated in the international agenda. A major political breakthrough – to my mind – was the unanimous United Nations resolution in December 2004 and especially the United Nations World Summit in September 2005. The Summit agreed to make full and productive employment and decent work for all a global goal.

The World Commission’s thoughts have also been taken on board by the World Bank, the International Monetary Fund, the European Union, the African Union and many other international organisations. There are demands all over the world for a more humane and caring kind of globalisation.

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Globalisation affects Europe, and in turn Europe and Europeans can influence globalisation. 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 international competition, the fact that the Union forms a relatively large internal market is an advantage to all of us – provided that all Member States comply fully with the commonly agreed provisions. Strengthening the social dimension in Europe is a strong contribution towards a fairer globalisation.

Welfare and competitiveness are not mutually exclusive. I firmly believe 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. Social security makes it easier to adapt to change. The Nordic welfare system is not only fair for the individual but also supports the common good. Good governance that is free of corruption is also a competitive factor. I say all this with solid justification, since several international surveys examining competitiveness and sustainable development have given all five Nordic countries top marks.

There is no single uniform social model in Europe, but 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 Lisbon Strategy – which has recently been renewed – can provide a programme to respond to the challenges of globalisation provided that we manage to create well-balanced links between economic growth, employment, social cohesion and environmental sustainability.

I would like to take up a few more points about competitiveness and fairness. Gender equality is a very important issue in this increasingly globalised world. This year in Finland, we are celebrating the centenary of universal suffrage. 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. Right from the start, women in Finland have been deeply involved in promoting issues important for women and in building the Finnish welfare society.

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 and the OECD Pisa study shows that our young people perform well at school. 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.

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For a fairer globalisation, it is important that we Europeans, in improving our own societies, live up to the values that we defend. And these values are not just for us; they are for everyone in the world. Our fellow human-beings – especially women and children – elsewhere in the world often face extremely difficult problems.

A fairer globalisation calls for a stronger emphasis on development policy and fairer rules for international trade. The policies of the EU have become more coherent, but further work is still required. In order to achieve sustainable solutions, the Union must be a committed long-term partner by means of humanitarian aid, trade policy, development policy and environmental policy. The successful conclusion of the Doha Round talks of the World Trade Organisation is a key goal for the Union that will increase stability and predictability in the global economy.

The EU must also emphasize the social dimension of globalisation 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, too. The ASEM Labour and Employment Ministers’ meeting in Potsdam this autumn and the ASEM Summit itself are good examples of this.

We must all make a contribution to make change happen. I am sure that we can make the world a better place by promoting a fairer globalisation.