Social Watch Annual
Report 2003
The poor and the marketDownload the complete "Social
Watch Report 2003" in one
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| Index |
Preface
The Robin Hood economy. The net transfer of financial
resources to developing countries has been negative each and every year since 1997,
according to what Kofi Annan, Secretary General of the United Nations, reported to the
General Assembly in 2002. In other words, money is being taken from the poor to give to
the rich. The world economy is functioning like a reverse Robin Hood. |
From social contract to private contracts: The privatisation of health,
education and basic infrastructure. A review of the 2003 Social Watch country reports
Privatisation is being pushed by international
governance institutions, the governments that control them, and the corporations that
lobby both groups, even though the dangers that privatisation entails can
seriously—and permanently—harm the livelihoods of the world’s poorest
people. The position of «privatise first and ask questions later» and the naïve
confidence in the processes and outcomes of market reform have imposed hardship on
precisely the groups those organisations are entrusted to protect. It is time to shift the
burden of proof from those who question risky solutions to those who propose them. |
Public services at risk: GATS and the privatisation agenda
WTO negotiations on General Agreement on Trade in
Services (GATS) are threatening essential public services—including
water—throughout the world. In the current negotiations, which were launched in
November 2001, governments are pressuring each other to open up services to private sector
and non-profit (NGO) providers, even in socially sensitive areas such as water, health and
education. The GATS could undermine progress toward social and environmental goals because
it limits the ability of governments to regulate or provide services. For instance, it
could jeopardize access to water and other services by poor and vulnerable groups. |
Privatising human rights – the impact of globalisation on adequate
housing, water and sanitation
While the debate continues at the international level
on whether or not globalisation can bring benefits to the world’s poor, the fact
remains that the deepening inequalities of income and opportunity between and within
nations has led to an increase in the number of people without adequate and secure
housing. The human rights of people and communities to housing, water and
sanitation—guaranteed under international law and commitments of development targets
made at global summits including the Millennium Summit and the World Summit on Sustainable
Development—continue to erode as the process of privatisation deepens and
accelerates. It is time to rethink the current global economic and social policies and to
recommit ourselves to the human rights principles and standards that offer the only real
paradigm for improving the lives of millions of the poor. |
The marketisation of social reproduction in the new services-led economy
Policies are implemented within an institutional
setting that dictates the distribution of costs and benefits. Among the challenges that we
face today is the need to create a set of policy and legal instruments that will
reconstruct the gender-biased institutional setting within which globalisation currently
operates. The markets have generated a structure of incentives that encourages women to
undertake productive activities. But we know of hardly any incentives to encourage men to
take over caring responsibilities. The result is that social reproduction is being moved
out of the households and into the privatised market sphere in what appears to be a move
out of the frying pan and into the fire. |
Forging a Global Partnership for Development: Some Critical Issues
Goal Eight of the Millennium Development Goals does
not have detailed enough targets to define the objectives and actions that are needed in
the area of global finance, including the problems of debt, capital flows and a healthy
system of financing for development. The emerging paradigm calls for developing countries
to take a pragmatic approach to globalisation and liberalisation and to integrating their
domestic economies with the global economy in the areas of finance, trade and investment.
However, the financial system as a whole—increasingly characterised by the absence of
regulations, transparency or a fair set of rules for resolving the conflicts between
debtor and creditor countries—requires an overhaul |
Europe for business or Europe for its people? The European Union and the
GATS
The European Union (EU) prides itself on its social
democracy, the core common value that connects the people and member states. Yet the GATS
negotiations challenge this very foundation of the EU, as they further weaken the ability
of EU member states to decide social policy, even in key areas such as health, education,
water and sanitation. The GATS negotiations give unprecedented access to business, at the
expense of democratic control and decision-making by elected representatives. The GATS
threatens the very fabric of the EU, both in its social dimension and its democratic
character. It is not surprising, therefore, that there is an increasing pressure from
social movements, including trade unions, to stop the current negotiations. |
Globalisation and trade: challenges of the Arab World
Dramatic international developments point to a trend
of «the militarization of globalisation,» which can be considered a radical outcome of
the failure of globalisation and traditional economic policies to secure social and
economic equity. These developments are also indicative of a strong desire to strengthen
direct control over the world’s cultural, economic and intellectual resources by
neoliberal hegemonic powers. |
| Measuring progress: |
Some comments on country-to-country poverty comparisons
Due to the highly controversial nature of poverty
studies, some of the problems arising when establishing international measures are the
same as those that are faced when countries establish national poverty lines. The World
Bank has advocated making these comparisons according to consumption or income, and in
particular, has established a threshold of one dollar per day per person, based on 1985
purchasing power parity. Although it might be useful to resort to income based measures,
these on their own are insufficient, as concepts of poverty are becoming more complex and
multidimensional. There is now a wide consensus regarding the fact that access to health
and education is just as important as income and that in the future, the consensus will
probably include empowerment and participation in citizen life. |
| Assessment of the advances up to 2000 |
| About the methodology |
| Information poverty |
| Statistics showing country by country progress toward social development
goals (zip) |
| Progress or regressions in the fulfilment of the Copenhagen goals |
| Gender gap evolution |
| Changes in public expenditure |
| Trends of the official development assistance |
| Table of signatures and ratifications of international treaties mentioned
in the Millennium Declaration |
| Table of signatures and ratifications of key international agreements |
| Table of Ratifications of Fundamental ILO Conventions |
| Progress towards the Millennium Development Goals |
| Country reports: |
| Africa: |
GHANA
The struggle over water. The plan to privatise the urban water supply system by March
2003 has become a defining battlefield. For the poor, the commercialisation of water,
combined with lack of investment in the sector and regressive socio-economic distribution,
is a key factor in their povertystriken situation. At the heart of the issue are questions
of need versus profit, and whether water is a right or a commodity. GYEKYE TANOH- KATHY
CUSACK. |
KENYA
The stark realities of an ideological
orthodoxy. Kenya has embarked on privatisation without
any discernible ideological reservations. Far from achieving the goal of good governance,
privatisation so far has widened the gender gap, made water more expensive than oil and
turned patients away from hospitals untreated. In fact, privatisation has spread economic
risks throughout society while channelling economic gains to the few. KENYAN SOCIAL WATCH
COALITION |
MOROCCO
On the way to deepening social
inequalities. The privatisation policy is only one
aspect of the Structural Adjustment Plan. Initially considered as a means to submit public
companies to more rigorous management rules, today it is no more than an instrument to
achieve the objective of budgetary balance and to have exceptional income to reduce the
foreign debt and recover the confidence of capitalist partners. Health and education are
undergoing an underhand process of liberalisation that will worsen social inequality
rather than help provide access to services or ensure their efficiency. LUCILE DAUMAS
ABDELLAZIZ MESSAOUDI ABDELLATIF ASSINI ABDELKHALEK BENZEKRI MOHAMED HAKECH SAAD BELGHAZI
(RESEARCHER) |
SENEGAL
Less State, fewer benefits. While applying structural adjustment programmes in the mid-1990s
the government designed and implemented a sweeping plan for the privatisation of public
companies. Since 1989, 27 public companies have effectively passed into private hands. The
result has been the deterioration of the education system and the public health service,
the degradation of food production and security, increased unemployment and the growth of
exclusion and inequalities. ABDOUL SOULEYE SOW |
SOUTH AFRICA
The widening gap between rich and poor. The democratic gains of South Africa’s 1994 transition
rapidly came under pressure as the new leaders adopted neo-liberal policies in the face of
demands of the poor majority for rapid socio-economic transformation. At the time,«12
million South Africans did not have access to clean drinking water, 21 million did not
have access to adequate sanitation … and more than 20 million had no access to
electricity,» while 87% of the land was in the hands of about 60,000 white farmers.
ANDILE MNGXITAMA ANN EVELETH |
SUDAN
The damage of declining public
investment on services. Liberalisation and
privatisation policies, and the new terms of international trade, have had negative impact
on the national economy and the socio-economic status of the population. The decline in
public investment in services has reflected negatively on human development, as indicated
by the decline in calorie intake and the increase of the population under the poverty
line. It was also reflected in the almost total failure to realise any of the
government’s targets in the fields of health, education, drinking water or
sanitation. DR. HASSAN ABDEL ATI DR. GALAL EL DIN EL TAYEB |
TANZANIA
Benefit of an elite at the expense of
the poor majority. While some businessmen and investors
cite GDP growth and higher efficiency as positive results of liberalisation, civil society
finds that economic reform measures have reduced government services in communities,
increased individual costs for social services, and caused job losses. The results have
been regressive, as a small minority have benefited while the majority have become further
impoverished and disenfranchised. |
TUNISIA
Democratic deficits in the midst of
liberalisation. In 1987, following a crisis in the
balance of payments, Tunisia entered a structural adjustment programme, aimed at
liberalising the economy and cutting the State’s role in competitive economic
sectors. From 1997 onwards, the government accelerated the process and started selling
companies that were not losing money. Civil society has been unable to exert pressure on
the government to prevent decisions being made contrary to the interests of the majority.
SALAHEDDIN EL JORSHI |
UGANDA
Privatisation versus the poor. Although in some areas such as telecommunications and electricity,
the liberalisation has improved quality, in others, the improvement is hardly cosmetic.
While most of the poor and rural population do not have access to basic services, for
women in particular privatisation has increased their work load. So that those excluded
receive better basic services it is necessary to develop policy and regulatory mechanisms
that reinvest the resources generated by privatisation in the social infrastructure. DAVID
OBOT |
ZAMBIA
Poverty in the midst of the market:
the Zambian scenario. At present, 73% of the population
live in poverty. Of these, close to 59% are extremely poor, with the majority being women
and children. In addition to income deficiency, the poor lack access to adequate food,
health and educational facilities, safe water, clothing and shelter. The PRSP is a weak
response to poverty’s alarming proportions, while agriculture liberalisation has not
benefited domestic farmers, due to high tariff walls and heavy subsidies in Western
markets. MICHELO HANSUNGULE |
| Asia: |
BAHRAIN
Scarce transparency in services
policies. It is expected that Bahrain, with increasing
poverty and unemployment, will soon be the first Gulf Cooperation Council state to
legislate privatisation. After beginning in a few sectors, such as transportation and
sanitation, privatisation is expected to gain momentum and be extended to the ports and
electricity production. |
BANGLADESH
Corruption and mismanagement threaten
jute mills. The jute sector was dominant in the economy
in terms of manufacturing sector output, employment, and foreign exchange earnings. It
contributed 87% of total merchandise export earnings at the time of the country’s
independence. The change of government in 1975 paved the way for a change in the
nationalisation policy and a process of privatisation was initiated. This report discusses
the impact of the nationalisation and later privatisation of the jute mills on the
national economy and on the jute workers. ATIUR RAHMAN ISMAIL HOSSAIN |
CAMBODIA
The long road to poverty eradication. Despite official policy pronouncements and some genuine efforts to
reform the health and education sectors, structural obstacles, most particularly low
budgetary allocations and disbursement systems that are slow and not always transparent,
block progress and have a debilitating effect on the quality and delivery of services. The
deep structural macro-economic problems worsen year after year and paralyse the whole
public health sector. Access to key natural resources are auctioned off to be
commercialised, leading to further impoverishment of the population. THIDA C. KHUS |
INDIA
Erosion of rights and marketisation of
development. The national development paradigm is a
paradox. On the one hand, there is a professed commitment to meeting the Millennium
Development Goals by respecting, protecting and fulfilling economic, social and cultural
rights. On the other hand, there is clear policy prioritisation towards privatisation of
services that affect the basic rights of the most marginalised, such as education, health,
water and food distribution. In contrast with the «the language of rights», policy
prescriptions push basic services away from the responsibilities and obligations of the
State. JOHN SAMUEL BOBBY KUNHU |
JORDAN
The money into the pockets of foreign
companies. The political instability in the region,
along with Jordan’s maturing economy, has prevented the domestic private sector from
playing an integral role in privatisation and has opened the way for foreign investors to
take over many previously public enterprises. As a result, profits made from privatised
companies do not contribute to the Jordanian treasury, as structural adjustment continues
to challenge welfare policies. Reduced public spending combined with low growth will
increase poverty, which is already aggravated by high population growth. NATASHA SHAWARIB |
KAZAKHSTAN
To the detriment of women, children
and the poor. The policy of structural adjustments has
led to a sharp reduction of social expenditures and the collapse of the social services
sector. Privatisation of social sector entities has failed. Firms offered for sale were
not in good condition or in great demand, so investors did not bid on them. In addition,
privatisation of health and education has reduced accessibility, and had a negative impact
on the poor and on women and children in particular. SVETLANA SHAKIROVA MARA SEITOVA |
KOREA
Privatisation, conflict and discontent. Privatisation in Korea has aroused intense debate and inspired
many citizen mobilisations. While voices from the government insist that privatisation
will strengthen industrial competitiveness and resolve the ill-effects of monopolies,
labour unions, civil society and academia cry out that it will drain national wealth
through sales abroad, degrade public services and deepen social inequality. Since there is
no precedent of a successful privatisation and restructuring process being carried out
without social consensus, the government should try to take the advice of civic groups
rather than follow its present course. PROF. KIM JIN SOO |
LEBANON
Confronting the fiscal crisis through
privatisation. The main reason for privatisation is
fiscal. Government officials argue that it is the only way out of the debt trap. However,
private firms only invest where they expect to make a profit. The private sector, by its
nature, prioritises short-term profit over any other social benefit. All in all, the
«public good» value of basic services is considered less important than their fiscal
potential. ZEINA ABLA |
MALAYSIA
The high cost of private monopolies. Privatisation policies have been limited to a small elite who took
over profitable public utilities and turned them into private monopolies. On several
occasions, the objective of reduced fiscal burden backfired, as the government had to pay
higher costs to bail out failed privatisations. For consumers, price increases have not
brought about benefits. There is a serious need to review the entire privatisation
policies to make the process more accountable and transparent. MAGESWARI SANGARALINGAM
MEENAKSHI RAMAN |
NEPAL
Rockbottom economic status. Economic liberalisation began in 1992. The foreign investment
policy endevoured to attract foreign private investment but undermined the national
interest. Nepalese entrepreneurs with limited resources and technical capacity were unable
to compete with foreign private investors and hence were negatively affected.
Privatisation of education and health has created two distinct classes and has benefited
the higher income groups, in a country where approximately 42% of the population live
below the poverty line. SARBA RAJ KHADKA RAKHEE LOHANI |
PAKISTAN
Extreme poverty, forced labour,
«honour killings»… This report presents an
overview of the dramatic Pakistani situation. Its 140 million people are among the
world’s poorest. High population growth and low social spending have deteriorated
healthcare, education, sanitation and drinking water. Non-Muslim minorities experience
routine discrimination. Child and forced labour and violence against women, subject to the
rule of «honour killings», are part of a general climate of restricted public freedoms.
PROF. AIJAZ A. QURESHI MUSHTAQ MIRANI NASARULLAH THAHEEM SHAHEEN KHAN |
PALESTINE
Relying on others: provision of water
and health care. Palestinian dependence on Israel for
water and on the international community for healthcare services underscores the crippled
state of Palestinian welfare and its subjugation to Israeli military decisions. This is
not the result of shortcomings of the traditional development approaches (in particular
the differing incentive and sanction structures behind state and market approaches to
basic service provision1 ) but of Israeli military and government policy towards the West
Bank and Gaza. IZZAT ABDUL-HADI THOMAS WHITE |
PHILIPPINES
The water case: increased rates for
poorer services. In August 1997, the government-run
facility that provided safe drinking water to 11 million Metro Manila residents, the
Metropolitan Waterworks and Sewerage Services (MWSS), was privatised. The MWSS story
belies the claim that privatisation automatically provides additional funds to government
or improves the efficiency and effectiveness of the management of companies. What it
bolsters, however, is the concern that cost-recovery and profit-making are the primary
goals of privatisation—even at huge economic and social costs to consumers and
citizens. MA. VICTORIA R. RAQUIZA |
THAILAND
The dark side of global markets. The 1997 economic crisis led to the privatisation of lucrative
state enterprises as an IMF requirement to reduce the debt, which was largely incurred by
the private sector. However, the multinational corporations have not benefited Thailand,
but they have returned profits to their own countries. At present, it is vital to define,
prioritise and achieve an equilibrium between democratic development and market
mechanisms. In this process, civil society should play an active role in maintaining basic
human values. RANEE HASSARUNGSEE |
VIET NAM
The Doi Moi policy and its impact on
the poor. In December 1986, the government mandated the
Doi Moi (open door) policy, shifting from a centrally planned economy to a market oriented
one. The current trend shows growing inequality between the rural and urban population,
and between the rich and the poor. Privatisation and liberalisation increased the social
gap in the access to basic social services in general and to education and health in
particular, and increased the vulnerability of the rural poor. TRAN THI QUE TO XUAN PHUC |
| Latin America: |
ARGENTINA
In the hands of the oligopoly of
foreign capital. During the 1990s, economic policies
were characterised by a strengthening of the neo-liberal model, promoted by multilateral
credit institutions. Thus the public and financial services, following a process of
privatisations, were monopolised by an oligarchy of private companies with foreign
capital. Devaluation was mainly due to the «Convertibility Law», which was supported
until the bitter end by the IMF and the «financial community». The massive capital
flight during 2001 sealed Argentina’s fate. |
BOLIVIA
Water and privatisation: doubtful
benefits, concrete threats. The Bolivian experience of
privatisation of the companies that manage and distribute water is a good window on the
conflicts triggered by the privatisation of basic services. It also shows the enormous
difficulty – some say the impossibility – of making the search for profit
compatible with an equitable and sustainable supply of basic services; that is, making
privatisation benefit the poor. TOM KRUSE - CECILIA RAMOS |
BRAZIL
The implicit agenda of a conservative
patrimonial reform. 1 Although it was argued that the
proceeds from privatisation would be invested in social reforms, from 1995 it became clear
that those revenues generated an important inflow of international capital, to be used not
for social investment, but rather to finance trade deficits and debt service. The economic
results of privatisation were mixed, while in social terms they have been a failure. LUIZ
CARLOS DELORME PRADO - LEONARDO WELLER |
CHILE
The brutal rationale of privatisation. «Beyond euphemisms, privatisation of health, social security and
education operated by neo-liberals has imposed a brutal rationale: depending on the amount
of money you have, you will have so much health care, quality of education for your
children and pension upon retirement. If you are privileged, you will have access to
privileged services. If you are poor, you will have to make do with what the public system
is able to give you.» ANA MARÍA ARTEAGA |
COLOMBIA
The violation of social rights within
market rationale. Privatisation of social services is
being imposed by the international funding institutions through severe and never-ending
structural adjustment programmes. In these programmes pressure is put on the government to
change social policies to make social services profitable; thus health, education, social
security and access to water, energy, telecommunications and environmental sanitation
services can be operated by private agents, guaranteeing them high profit margins. ALBERTO
YEPES P. |
COSTA RICA
Selling our grandparents’
inheritance. Within the context of the economic crisis,
the rapid loss of mechanisms of social mobility and economic, political and cultural break
down, a real and symbolic rupture is occurring, under progressive and unorthodox
procedures, in various fields of the State’s monopolistic of the provision of
services, such as electricity, health care and education. Attempts at privatising a public
institution or a complete sector have faced strong opposition among the people. ANA
FELICIA TORRES REDONDO - CARLOS PENTZKE PIERSON |
ECUADOR
Adjustments, debt and privatisations:
what will become of our rights?. The sale of state
companies required by the IMF, the scaling down of the State through mass dismissal of
workers, reduction in government spending, the elimination of subsidies to basic services
and fuel, cutbacks in wages and salaries, the protection of international creditors
through FEIREP and the intensification of the extractive model of overexploiting
resources—these are characteristics of the public policy implemented by the national
government, following the guidelines of international bodies. SUSANA CHU YEP - JORGE
ACOSTA ARIAS - PATRICIO PAZMIÑO FREIRE |
EL SALVADOR
Privatisation: a process with cracks. The privatisation discourse promised to reduce the size of the
State, reduce the deficit, provide better services and supply the State with immediate
resources, which would be used to cancel the short-term debt and be invested in
infrastructure or social expenditure. However, even the private sector has recognised that
there has been a lack of transparency in decision making. In fact, the implementation of
privatisation has involved many sacrifices, including privatisation of banking and
de-nationalisation of the public assets. JEANNETTE ALVARADO - ROSARLIN HERNÁNDEZ - GLORIA
GUZMÁN - MARIO ANTONIO PANIAGUA |
HONDURAS
The invisible price women have to pay
for privatisation. Within the framework of the free
trade treaties progress is being made in the process of public service privatisation in
Honduras. The disappearance of State responsibility for maintaining public services has
led to women having to double or treble their workday to take on a greater workload at
home, with more hours of voluntary work in the communities and in activities generating
income, to the detriment of their health, quality of life and leisure. ANA MARÍA FERRERA
- SUYAPA MARTÍNEZ - FILADELFO MARTÍNEZ - MIRTA KENNEDY - MARÍA ELENA MÉNDEZ |
MEXICO
Now the responsibility lies with the
individuals. Stabilisation and structural adjustment
programmes adopted following the foreign debt crisis in 1982 have included the total or
partial privatisation of many state companies and activities in various sectors:
industrial, financial, agriculture and stock-raising, mining, infrastructure,
communications, petro-chemical and even social security. Along with cutbacks in social
expenditure associated with trends to privatise public and basic services, the «novelty»
lies with the transfer of State responsibility to private companies. ARELI SANDOVAL TERÁN |
NICARAGUA
A nation in the dark. Privatisation has not resulted in any social benefit for the
poorest people. The energy and telephone companies have not only raised the already
«dollarised» price of services, but also increased requirements for access to these
services and decreased quality. In addition to being a country of poor people, today
Nicaragua is also a nation in the dark. RUTH SELMA HERRERA M |
PANAMA
The neo-liberal State: debt,
inequality and poverty. The faithful compliance with
the economic recipes imposed by international financial bodies has been carried out
through the transformation of the State’s role. The result has been more expensive
services, weakened agricultural, livestock and industrial productive sectors, the
deterioration of living conditions, a widening inequality gap and the acceleration of the
debt spiral. CARLOS MARCELO CASTILLO |
PARAGUAY
Social mobilisation against
privatisation. Privatisation in the 1990s was marked by
state de-capitalisation, the absence of benefits for the people, high rates and
insufficient coverage. In the year 2000 the promotion of privatising was reactivated
through promulgation of the Law for Privatisation of State Companies. The attempt at
privatising telecommunications within this legal framework was carried out in a context of
swindles and corruption. Social mobilisation managed to have the law repealed, but it is
feared that the privatising agenda will be taken up once again. JUAN CARLOS YUSTE - DIEGO
BROM |
PERU
The people halt privatisation. The privatisation of electric energy services guaranteed the
buyers that they would obtain large profits on their operation at the expense of the State
and consumers. The State delivered captive consumer markets and converted a public
monopoly into private ones. This process has nothing to do with a market economy, but
rather with profitable commercialism, which the present government has maintained under
pressure from the International Monetary Fund and other financial bodies. HÉCTOR BÉJAR |
SURINAME
Shape up or ship out!. Surinamese society is moving towards privatisation and
liberalisation among heated debates. Bad quality and high costs of public services make
consumers demand the government to either shape up or ship out and give private initiative
the chance to do it better. On the other hand, there is fear for the consequences to
employment and the accessibility of quality services for the poor, and benefits from
concessions to multinationals are questionable. MAGGIE SCHMEITZ |
URUGUAY
The reform of the social sector:
statism, inequality and privatisation by default. The
Uruguayan case shows the benefits of state perseverance and public assets and the adverse
effects of privatisation by default. Although an attempt has been made to attribute the
crisis to this statist emphasis, the present collapse of the economy and its social
effects are basically the result of a financial system that lacks adequate monitoring, a
marked deterioration of industry, a foreign exchange rate that damages the country’s
competitiveness, and the vision of a country regarded as a financial and service market.
FERNANDO FILGUEIRA |
VENEZUELA
The social programme of the Bolivarian
Republic. Going against the current of predominant
trends, the 1999 Bolivarian Constitution consecrates rights of citizens to health and
medical care, as well as other social rights, while increasing state responsibility. In
the context of social development, the new Republic promotes enhancing the standard of
living through common and supportive action, and encourages people to have a sense of
inclusion and belonging through political, economic and social participation. FRENTE
CONTINENTAL DE MUJERES |
| Industrialised and former central planned economies:
|
BULGARIA
The big sale in the water supply
market. Water supply, electricity, health and transport
services, sectors that were formerly state monopolies, have all been privatised. This
report focuses on the privatisation of water, which has been characterised by
non-transparency and ineffectiveness, higher rates and a lack of infrastructure
improvements. The restructuring of the water supply sector has already had a negative
impact on the social and economic status of the population, as higher prices have eroded
real household income. IRINA MOULECHKOVA, PHD - PLAMENKA MARKOVA, PHD |
CANADA
Will Canada pawn or polish the jewel
in the crown of its social security system?.
Canada’s most treasured social programme is public health care. For almost forty
years, access to doctors and hospitals has been based on need, not ability to pay. Today
the very purpose of public health care is in debate, from what is funded, to how it is
delivered. How has a nation that has long viewed health care as a basic human right found
itself here? Public uncertainty has emerged in the shadow of growing inequality and
chronic public underfunding, and has been fed by the trade agenda of expanding
commercialisation. ARMINE YALNIZYAN - BRUCE CAMPBELL |
GERMANY
The unacknowledged social implications. The privatisation of services previously delivered by state-owned
companies or public institutions began in the 1980s, and its pace intensified in the
1990s. In addition to the negative social impact of privatisation on consumers, the first
casualties of privatisation have usually been the workers and the poor. Development
co-operation, whose primary goal is poverty eradication, is using its limited resources,
paid out of public funds, to engage in economic development on behalf of major
corporations. |
ITALY
Federalism, privatisation and an
individualist philosophy. Currently Italy is
experiencing several radical institutional changes that are causing traumatic
transformations in the life of its citizens. As a result of an ongoing debate, an
institutional reform to decentralise the organisation of the State was implemented. This
is a dangerous mechanism that occurs in a general framework where impulses towards
privatisation are multiplying. The government is using it instrumentally in order to
reduce the State’s role as guarantor of individual rights. ALESSANDRO MESSINA -
MARTINO MAZZONIS |
NETHERLANDS
The poor unprotected. Privatisation increased in the 1990s, when the government needed
to decrease its debt burden to make the economy competitive and to adopt the EURO. The
focus was on making public services cheaper rather than on safeguarding public interests
or fulfilling its human rights obligations. Underestimating the need for regulation,
supervision and enforcement, the State has abandoned its human rights obligations. The
poor, particularly women, have little protection against price increases and unemployment.
MYRIAM VANDER STICHELE |
NORWAY
The current undermining of the Welfare
State. "A society that promotes the winners and
their interests at the expense of the weakest does not deserve the designation
«civilised». The new poverty is being ignored, accepted or covered up by vulgar and
seductive speeches about solidarity and fair distribution. The fact is that the large
middle class has pulled a curtain over Norwegian reality". Ivar Brevik. ASBJØRN WAHL
- GUNHILD ØRSTAVIK |
PORTUGAL
An urgent need for public awareness. The history of privatisation policies in Portugal is not linked to
structural adjustment programmes or other direct intervention by the World Bank or the
IMF. Its effects are only now starting to be visible to the common citizen. The government
directs all the processes aimed at the privatisation of public services, and the scarce
and vague information that reaches the population is usually belated and incomplete.
CATARINA CORDAS - PATRÍCIA MELO - RUI DOMINGOS |
SPAIN
A priority debate postponed. Since the mid-1980s, the successive governments have promoted
privatisation as an instrument of either financial or public policy. So far, state bodies
have shown little will to measure the social impact of this process – either in Spain
or in Latin America, where Spanish capital has had an active role. It is urgent to
increase public expenditure and redirect public resources to areas where they will be most
likely to bring about redistribution of income and opportunity. VÍCTOR RENES - CARMEN
GONZÁLEZ |
UNITED KINGDOM
Privatisation: a troubling legacy. Privatisation in the UK has left a troubling legacy. Multinational
corporations now control many basic services, often requiring complex regulation to
protect service provision. Workforces are often reduced. Many low-paid workers in
privatised sectors, particularly women, earn less and have less job security. The sale of
public housing has contributed to homelessness and housing difficulties for low-income and
other vulnerable groups. KEN JONES with FRAN BENNETT |
UNITED STATES
Service industry deregulation:
corporate crime and tougher disciplines on the poor.
Although criminal activity within the private service industries has been an important
factor in the current recession, the service industry continues to form the basis for the
U.S. negotiating position on the General Agreement on Trade in Services. These industries
continue to target public service assets for takeover and to globalize their practices,
even as new details of scandal emerge daily. President Bush’s plan for assisting the
poorest in the U.S. imposes a range of tough new regulations that require welfare
assistance beneficiaries to work more in exchange for fewer benefits. STEVE SUPPAN |
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