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This article provides information about the interaction between social development, globalisation and trade agencies:
The modern world witnessed a series of interrelated socio-political processes and events in the late 1980s and early 1990s. The most important of these have been ever increased global interconnected, introduction of structural adjustment programmes, the phenomenal expansion of information and communication technologies (ICTs), increasing commercialisation, perspective change in the orientation of development (from economic growth to human development) and a quantum increase in human and capital flows from one part of the globe to another and so on.
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All these have impacted the processes of development. There have been concerted efforts, against the backdrop of the collapse of the socialist economy and the triumph of the market forces, to redirect the forces of development locally and globally through the Social Development Summit 1995, formation of the World Trade Organisation, the General Agreement on Trade and Tariff (GATT) and the General Agreement on Trade in Services (GATS).
The World Development Report 1997 focused on attempts to bring stability for investment and development. One of the central themes of all these efforts has been to remove all the obstacles to the expansion of the market forces that would supposedly pave the way for social and human development across borders.
The Social Development Summit 1995 took place in Copenhagen in the wake of globalisation and introduction of structural adjustment programmes and especially on the eve of 50th anniversary of the United Nations Organisation. All heads of state pledged for social development and empowerment of the marginalised, ushering in the human face of development by ensuring peace and stability in society.
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At this summit all the heads of state and government recognised that broad based and sustained economic growth is necessary to sustain social development and justice. It declares that “globalisation, which is a consequence of increased human mobility, enhanced communications, greatly increased trade and capital flows and technological developments; and opened new opportunities for sustained economic growth and development of the world economy, particularly in developing countries. Furthermore, the global transformations of the world economy are profoundly changing the parameters of social development in all countries. The challenge is how to manage these processes and threats so as to enhance their benefits and mitigate their negative effects upon people.”
While identifying the principles and goals of social development and the framework of its action, this summit emphasised the need to integrate economic, cultural and social policies so that they become mutually supportive, and acknowledge the interdependence of public and private spheres of activity.
It also recognised that new information technologies and new approaches to the access to and use of technologies by people living in poverty could help in fulfilling social development goals; and therefore recognised the need to facilitate access to such technologies at the national level all the states would commit to promote dynamic, open, free markets, while recognising the need to intervene in markets, to the extent necessary, to prevent or counteract market failure, promote stability and long-term investment ensure fair competition and ethical conduct and harmonise economic and social development, including the development and implementation of appropriate programmes that would entitle and enable people living in poverty and disadvantage, especially women, to participate fully and productively in the economy and society.
At the time, these heads of the state also committed themselves to promote and implement policies to create a supportive external economic environment, through inter alia cooperation in the formulation and implementation of macroeconomic policies, trade liberalisation, mobilisation and/or provision of new and additional financial resources that are both adequate and predictable and mobilised in a way that maximises the availability of such resources for sustainable development, using all available funding sources and mechanisms, enhanced financial stability, and more equitable access of developing countries to global markets, productive investments and technologies and appropriate knowledge, with due consideration to the needs of countries with economies in transition.
In another international commitment they promised to “foster international cooperation in macroeconomic policies, liberalisation of trade and investment so as to promote sustained economic growth and the creation of employment, and exchange experiences on successful policies and programmes aimed at increasing employment and reducing unemployment.” This summit also committed to “implement at the national level structural adjustment policies, which should include social development goals, and effective development strategies that establish a more favourable climate for trade and investment, give priority to human resource development and further promote the development of democratic institutions”.
It is important that social development and human well-being have got the highest priority in the twenty- first century development discourse. Expansion of free market commodification of all vital aspects of life, and boundary-less expansion of trade have been envisaged to be the potential vehicles of social development and human well-being. The WTO, along with its several trade agreements and rounds of negotiations, has emerged to be the key agency under the auspices of the influential developed nations to monitor the expansion of free trade worldwide. Will the WTO, GATT and GATS be able to strike a balance between the diverse needs of the market on the one hand and that of the social commitment of the developing nations of the world?