OECD Forum 2002

he face of the world has changed significantly since last year' s Forum.Obviously there were the terrorist attacks of 11 September, and the recession that followed.In addition to these events came a crisis in the Middle East, the rise of the far right in Europe, the collapse of the Argentinian economy and clashes with anti-globalisation demonstrators during the summit meetings in Gothenburg and Genoa.A feeling is gradually setting in that, with every day that passes, the world is becoming increasingly unstable.In my view this fear is highly exaggerated.However, I am struck that the crises I have just mentioned -with the possible exception of the Middle East conflict -are often perceived as symptomatic of a seemingly uncontrollable process of globalisation.It is precisely this process of globalisation that concerns us here today.Globalisation is an autonomous phenomenon, driven by advances in technology and communications.It is therefore as irreversible as the moon' s trajectory.Our problem, as rich nations, is that for too long we have allowed globalisation to develop as an autonomous process.I strongly believe that globalisation must be much better managed than it is today.First, while European countries have undeniably benefited from growing trade and investment, especially among themselves, the capacity of developing countries to exploit the benefits of globalisation has been much more disparate.The peoples of Asia, meaning one third of the world' s population, are freeing themselves from a daily struggle to find food, clothing and somewhere to live.But a group of some twenty countries, primarily African countries, has seen the gap separating them from the rich countries of the North grow even wider.Civil war, natural disasters, disease and poor governance are partly to blame for the dreadful position in which these countries find themselves.However, our own selfishness is also an agent of destruction.We profess adherence to free trade, but a form of free trade that protects our own markets for textiles and agricultural products, products of major importance to these poor countries.Worse still, the use of export subsidies allows us to flood the markets of these countries with our surplus production.In this respect, the Doha meeting offered a ray of hope.But since then, this ray of hope seems to be fading.In the steel sector, for example, there have been major increases in customs tariffs and, more recently, in the agricultural sector there have been sharp increases in output subsidies.The protectionist measures in some countries delay or prevent much needed structural reforms in others.This brings me to my second argument.Last year, when I chaired the European Council, I initiated a dialogue -after the G8 summit meeting in Genoa -with some of the "voices of anti-globalisation".I believe that most of the people who fall within this category are deeply concerned by the way the world is evolving and that it is critical for governments to undertake open dialogue with these citizens.My third point is that while Europe may not be a television hit, it is still in many respects a political model for the organisation of our world.Europe has after all managed to eliminate the large divide between its rich and poor regions.Beneath this successful performance lies the process of economic co-operation, something that is fundamental to the countries of the OECD.Opening of markets, financial assistance and co-operation are all elements that have been used during successive enlargements of the European Union.And each time, the combination of these elements has resulted in a spectacular increase in the prosperity of new member states.We must apply the same method in central and eastern Europe over the next FORUM 2002 4 Globalisation is a positive force, but ...

Political science · Global trade and economics · Globalization and Cultural Identity · Globalization, Economics, and Policies · Economics

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