The world is facing unprecedented challenges. Never before in recent history has a deep recession coincided with seismic geopolitical change. In view of the global situation, the 50th session of the United Nations Commission for Social Development, which kicked off this month at the UN headquarters in New York, is focusing on poverty eradication, youth unemployment and socially inclusive policies.
Over a period of 10 days, the commission will be holding a series of panels and discussions on how to shape effective policies for the most pressing social development issues taking into account today’s challenges such as the global economic crisis and climate change. Particular attention will be paid to the challenges young people face finding jobs as recent UN figures show that they are three times more likely to be unemployed than adults. Last year alone, 75 million youths found themselves without a job.
With almost one in four young workers unemployed in developed countries and the majority of young people from developing countries working in the informal economy, the world is experiencing a youth unemployment crisis, which further propagates social instability.
In the light of the challenges with no quick-fix solutions looming in sight, the UN is calling for sustainability to be put at the heart of economics. In a report launched in Ethiopia last month, the group of 35 world leaders and ministers said that ‘’a new political economy’’ should emerge that truly recognises the environment and social costs and brings the concept of “sustainable development” to the centre of mainstream economics.
Among its 56 recommendations, the panel said subsidies for fossil fuels should be phased out by 2020 and nations should consider establishing a global education fund.
In June, the UN will convene its conference on sustainable development, also known as Rio 2012 or Rio+20, which will be hosted by Brazil in Rio de Janeiro as a 20-year follow-up to the historic 1992 UN conference on environment and development that was held in the same city. The conference is held by the UN Department of Economic and Social Affairs. Participants need to seize the opportunity to make an impact on the Rio+20 debate through their work in the session as it is intricately linked to poverty reduction, inequality and access to resources.
Yet, ominously, Javier Solana, distinguished senior fellow in foreign policy at the Brookings Institution and president of the Esade Centre for Global Economy and Geopolitics, reports that the same arguments that turned the 1929 financial crisis into the Great Depression are being used today in favour of austerity at all costs.
Should we allow history to repeat itself? One thinks, definitely not. It is time for political leaders to take the initiative to avert this economically-driven social crisis.
Mr Solana warns against the temptation to favour misguided national priorities that could lead to disaster for all. He urges the European leaders to understand that adjustment programmes have both a social and a financial side and that they will be unsustainable if those affected face the prospect of years of sacrifices with no light at the end of the tunnel.
Austerity at all costs, in his view, is a flawed strategy that will not work. Causing lasting damage to economies by inflicting a terrible human toll on societies is certainly a misconceived notion of “discipline”.
At this stage, all of Europe must agree on a short-term growth strategy for now while keeping in mind the sustainable development for future generations.
Last month, the European Parliament’s Committee on Employment exchanged views on the future regulation for the European Social Fund. The fund is the EU’s main financial instrument for supporting employment in the member states and promoting economic and social cohesion. The key issues discussed were:
• Focus on social objectives that emphasise “social inclusion and combating poverty”.
• The proposed earmarking of 20 per cent of the fund’s budget to social inclusion and combating poverty.
• Partnership with NGOs in implementing the fund programme.
AD believes that while poverty is a complex problem, which is not easy to eradicate, more sincere efforts and a stronger political will to fight it will yield positive results.
Not everyone will ever see eye to eye on poverty-reduction policies but I am sure they will all agree that it is more cost effective to invest in retraining the jobless than to allow long-term unemployment.
Moreover, we need to stop demonising public support. It makes financial sense for states to share the cost of public investments, such as infrastructure projects or public services, with future generations, that will also benefit from them.
We cannot do without investing in social protection.
That means food, education and basic services, especially for the poorest. Otherwise, sustainable social development remains mere rhetoric.
The author is Alternattiva Demokratika’s spokesman on social development and health.