The Current Situation of the World
1. The world is currently undergoing a period of
transition which requires creative and enlightened leadership, if we are to meet our
responsibilities to promote justice, respect cultural diversity, and ensure the widest
possible participation in the potential benefits that this will provide.
2. The world of tomorrow will be characterized by increasing interaction between diverse
cultures and religions. For a peaceful development, it is vital to accept this spiritual
dimension of a changing world and to promote harmony by learning to cherish and respect
cultural and religious diversity as an enriching human experience.
3. In the light of the growing political and economic importance of economies outside the
Euro-Atlantic area, the Council urges that Russia and China be admitted immediately as
full participants in the G-7 and to full membership of the World Trade Organization (WTO).
In addition, other major countries, as their impact on the world economy increases, should
progressively be included as participants in these institutions.
4. The control and the reduction of armaments remain a primary concern.
Agreement on an international regime banning biological weapons, and reinforcement of the
nuclear non-proliferation regime, as well as the adoption of a conventional arms treaty,
is vitally important. In this respect, it is imperative that major powers curtail the sale
of advanced weapons systems to developing countries, as such sales threaten to destabilize
regional power balances. Military expenditure as a proportion of annual budgets should be
reduced.
5. Subsequent to the admission of new members to NATO, the Western world should avoid
further tensions in its relations with Russia.
Opportunities and Risks of
Globalization |
6. Globalization is a challenge that must be taken advantage of, not an alibi for
inaction. It describes the extension of traditional patterns of economic activity to
higher levels and the international spread of technology, production, finance, investment,
and information. The dramatic advances in information technologies have had a considerable
impact on the world-wide dispersion of production and on the intensification of
international capital flows. (See the attached report
of the Council's Group of Experts.)
7. The open world economy has expanded to incorporate new participants from regions
traditionally excluded from it. However, the Council stresses that certain regions, most
noticeably sub-Saharan Africa, are becoming increasingly marginalized. Inadequate
education, widespread health problems, excessive population growth and consequent low
welfare levels, are preventing them from attracting the foreign investment necessary for
development. Multilateral institutions have a vital role to play in creating an
environment for such investments by fostering efficient government, legal reform, banking
reform, the development of capital markets, and liberalization of trade.
8. The Council welcomes the new emphasis that the World Bank is placing now on faster
rates of growth as a priority objective in the developing world. It is fully aware,
however, that growth alone is not adequate. The Council emphasizes the need to alleviate
poverty, promote family planning and improve educational standards, particularly for
women. Towards this objective, it is important to reallocate expenditures by reducing
military spending. It is also important to maintain Official Development Assistance (ODA)
as an essential tool for promoting economic and social development.
9. Although five years after the Rio Summit some progress has been achieved, most general
trends still point to further degradation of the human environment. We urge governments to
live up to their commitments at the Rio Conference. More emphasis should be given to the
role and responsibility of the private sector industries in adjusting production processes
to the environmental demands.
10. The current terms of trade are unfair for many developing countries, particularly
sub-Saharan states. There is a serious danger that such states will find themselves
effectively excluded from the international trading system. In particular, given the fact
that in such economies a high proportion of the population is employed in agriculture, the
Council recommends that the developed states phase out the subsidies they currently
provide to their agricultural sector. These subsidies and other trade barriers not only
undermine developing economies but also represent a serious distortion within developed
economies.
11. Competition from low wage economies must not be used as a
scapegoat for domestic problems in industrialized countries. Protectionism is not a
solution for these problems. Only if productivity levels are raised will the developed
economies regain their competitiveness. Therefore, labor markets must become more
flexible, and educational and vocational training capabilities must be improved.
Governments need to provide both a safety net for those left unemployed in the adjustment
period, and re-training opportunities to enable them to re-enter the job market. More
generally, it is essential that these measures be placed into a broader context of the
formation of a new model of industrial democracy, based on social justice and the
fostering of consensus.
12. The financial markets have been transformed by globalization. Increasingly, national
authorities are unable to control monetary conditions in their own economies. The scale of
current international flows, the impact of speculative movements and the rapidity with
which such movements take effect and spread across the globe, raise the danger of a
serious dislocation occurring. Without strengthening coordination between the major
economies, massive speculative capital movements are unavoidable, with all their negative
consequences.
13. A single European currency, as envisaged by the
Maastricht Treaty, will support a more stable equilibrium between the United States,
Japan, and the European Union, if it can be assumed that these three monetary blocs will
coordinate their policies. Whilst recognizing the difficulties involved, the Council
reiterates its recommendation to explore the use of target zones of exchange rates.
14. A further area of concern is the growth in the trade of
financial derivatives. Whilst such instruments perform a useful role, allowing traders and
investors to avoid risks in financial markets, they can result in unacceptable losses when
used improperly. As a matter of importance, non-bank financial institutions, especially
those trading heavily in derivatives markets, should be brought under prudential
supervision. Other areas which demand immediate attention are how far non-banks should be
permitted to trade in derivatives, the requirement in law or by official rules of larger
margins and the regulation of over-the-counter trade. Moreover, central banks have to
strengthen and coordinate their supervisory role over risk management procedures by all
banks and other financial institutions.
Towards a Universal
Declaration of Human Responsibilities |
15. In a world transformed by globalization, common
ethical standards as a basis to live together have become an imperative, not only for
individual behavior but also for corporations and political authorities.
16. Nearly 50 years ago, in the aftermath of World War II, and with the legacy of two
defeated dictatorships, the General Assembly of the United Nations adopted the Universal
Declaration on Human Rights to safeguard the individual from totalitarian repression. Half
a century on, this Declaration is still far from being sufficiently observed in many parts
of the world. Its full implementation remains a profound challenge to the international
community.
17. The challenges posed by globalization require an
effort comparable to that of 1948 --the formulation and adoption of a Universal Declaration of Human Responsibilities.
18. Over the past 10 years the InterAction Council has convened High-level Expert Groups,
bringing together representatives of all the major religions and philosophies to identify,
along with political leaders, common principles and shared ethical standards. Now the
Council is preparing to initiate a broad based process to develop a Universal Declaration
of Human Responsibilities. After careful consideration, the Council will present a
preliminary draft as a basis for discussion and will invite all interested parties to
communicate their views and comments. It is the intention of this Council to bring the
revised draft to the attention of governments.
19. This process, as much as its hoped for result, will contribute to the promotion of
mutual understanding, of affirmative tolerance based on the recognition of shared values,
thereby proving that the threat of an imminent clash of civilizations can be avoided.
PARTICIPANTS IN THE 15TH
SESSION |
Members
Helmut Schmidt, Chancellor of the Federal
Republic of Germany, 1974 - 1982
Andries A.M. van Agt, Prime Minister of the
Netherlands, 1976 - 1979
Oscar Arias Sanchez, President of Costa Rica,
1986 - 1990
Lord Callaghan of Cardiff, Prime Minister of the
United Kingdom, 1976 - 1979
Jimmy Carter, President of the United States,
1977 - 1981
Miguel de la Madrid Hurtado, President of Mexico,
1982 - 1988
Malcolm Fraser, Prime Minister of Australia, 1975
- 1983
Kurt Furgler, President of the Swiss
Confederation, 1977, 1981, 1985
Felipe Gonzalez Marquez, Prime Minister of Spain,
1982 - 1996
Kenneth Kaunda, President of Zambia, 1964 - 1991
Kiichi Miyazawa, Prime Minister of Japan, 1991 -
1993
Maria de Lourdes Pintasilgo, Prime Minister of
Portugal, 1979 - 1980
Jose Sarney, President of Brazil, 1985 - 1990
Shin Hyon Hwak, Prime Minister of the Republic of
Korea, 1979 - 1980
Kalevi Sorsa, Prime Minister of Finland, 1972 -
75, 1977 - 79, 1982 - 87
Pierre Elliott Trudeau, Prime Minister of Canada,
1968 - 1979, 1980 - 1984
Ola Ullsten, Prime Minister of Sweden, 1978 -
1979
George Vassiliou, President of Cyprus, 1988 -
1993
Special Guests
Thomas S.Axworthy, Professor, Harvard University
Ajay Chhibber, Staff Director WDR, the World Bank
Hans Kueng, Professor, Tubingen University
Lee Seung-Yun, Former Deputy Prime Minister and
Minister of Economic Panning Board of the Republic of Korea
Seiken Sugiura, Member, House of Representatives
of Japan
Koji Watanabe, Former Ambassador of Japan to
Russia
Wu Xuequian, Vice Chairman Chinese People's Political Consultative Conference
Alexander Yakovlev, Former Member Presidential
Council of the Soviet Union
Invited Journalists
Nagaharu Hayabusa, The Asahi Shimbun
Cushrow Irani, The Statesman
Flora Lewis, International Herald Tribune
Secretary-General
Isamu Miyazaki, Former State Minister, Economic
Planning Agency of Japan
Organizing Chairman
Jaap Rost Onnes, Executive Vice President, ABN
AMRO Bank
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