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08 August 2000
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Sub-Commission on the Promotion
and Protection of Human Rights
52nd session
8 August 2000
Morning
Discusses Globalization and Human Rights
The Subcommission on the Promotion and Protection of Human Rights this morning started its consideration of the realization of economic, social and cultural rights and discussed the impact of globalization on human rights.
Subcommission Experts and Special Rapporteurs Joseph Oloka-Onyango and Deepika Udagama presented their preliminary report on the issue of globalization and its impact on the full enjoyment of all human rights. The Experts said the report attempted to capture the relevant definition of globalization and to link it to the practical effects of the phenomenon. The role of the prominent players in this field, the World Trade Organization, multilateral financial institutions, the World Bank and the International Monetary Fund had been considered as well as the role the United Nations could and should play in ensuring that globalization adhered to human rights principles. The situation today showed that fewer and fewer people stood to gain from current trends of globalization.
Other Subcommission Experts expressed concern as to the role played by international financial institutions with regard to the direction of globalization. Even though there were positive sides to globalization, levels of equality and respect for economic, social and cultural rights of peoples had decreased.
Expert El-Hadji Guisse also presented an update to his working paper on the right of everyone to drinking water and sanitation. He highlighted the increasing sparsity of drinking water and the subsequent effects on all human rights.
Under its agenda item on the realization of economic, social and cultural rights, the Subcommission will discuss issues related to the international economic order and the promotion of human rights, the realization of the right to development, the question of transnational corporations and the realization of the right to education, including education in human rights.
Earlier in the meeting, the Subcommission concluded its consideration of issues relating to the elimination of racial discrimination.
The following Subcommission Experts or Alternate Members took the floor this morning: Manuel Rodriguez Cuadros, Soo Gil Park, El-Hadji Guisse, Joseph Oloka-Onyango, Deepika Udagama, Yozo Yokota, Guoxiang Fan, Fisseha Yimer, Barbara Frey, Christy Ezim Mbonu, Vladimir Kartashkin, Louis Joinet, Jose Bengoa and Yung Kam Yung Sik Yuen.
India and Malaysia exercised their right of reply.
The Subcommission will resume its meeting at 3 p.m. to continue its consideration of economic, social and cultural rights and to hear from non-governmental organizations on this item.
Statements on the elimination of racial discrimination
MANUEL RODRIGUEZ CUADROS, Subcommission Expert, said trends in economic globalization co-existed with trends espousing extreme nationalism and exclusionary tendencies which could prevent peaceful coexistence and could even lead to violence and war. Racism and xenophobia had taken on new, more complex forms, and their geographic range was broadening. Collective and national differences were being exalted and poverty was being stigmatized, leading to prejudicial attitudes. In many European countries, migrant workers and their families, whether clandestine or not, were the main victims. One had the impression that Europe was meant for Europeans only. Legal exercise of the rights of migrants was often limited, and meanwhile globalization was increasing the flows of migrants.
The only thing that was not becoming increasingly liberalized in the globalized economy, it seemed, was labour -- while restrictions on flows of capital and various financial and business activities were being reduced, there was paradoxically a series of new barriers against the flow of workers. In a sense it was not fair for industrialized countries to benefit from economic globalization under these terms, and the tensions resulting from this phenomenon added to the pressures that were arrayed against migrant workers. Appropriate measures should be adopted not only to protect migrants but also to define rules and principles for all States to adapt their national legislation to meet minimum standards for protecting migrants and to combat impunity for offenses committed against them, as well as to prevent such abuses. That would be a valid task for the World Conference against Racism.
SOO GIL PARK, Subcommission Expert, said human rights were given to individuals by virtue of being human beings. This meant that they stood equal before the law. History had been painfully tainted with a record of outrageous discrimination, and in this regard, any system of discrimination should be brought to an end immediately. It was important to make a success of the World Conference against Racism as racism was closely linked to the question of peace and security. The Conference should consider that as part of peace, racism had to be eradicated. It was also important to note that the spread of xenophobia and the wave of anti-immigrant sentiments had reached unacceptable levels. The trend of xenophobia had to be contained. Mr. Weissbrodt had widened the issue on the protection of migrant workers and their families within his work and this was welcomed.
The UN Millennium Summit was to be held shortly and would devise a response to the challenges of the twenty-first century. This Summit could be used to mobilize people to join in the struggle against racism and could have even further positive effects on the World Conference against Racism. Governments should also reaffirm their commitment to the eradication of racism and offer compensation and remedies to the victims of racial discrimination. The prohibition of discrimination had been one of the traditional concerns of the United Nations. There were bodies whose sole purpose was to ensure governmental commitment. Tribute was paid to several experts for their submission of reports which would make a tremendous impact when considered at the World Conference against Racism.
Rights of Reply
The Representative of India, speaking in right of reply, said yesterday references had been made to the caste system. India was not convinced that such matters fell within the ambit of racial discrimination. The relevant Convention referred to racial "descent", and although caste was based on birth, it was not based on race. The Indian Government opposed all distinctions and prejudices based on caste, and had taken numerous steps to outlaw it and to aid those in disadvantaged castes to advance. No country was perfect, and India was not, either. But it had made much progress and it had an impressive record to help improve the situation of those from the traditionally lower castes. India was committed to eliminating caste-based discrimination, but it should not be forgotten that the tools for this were contained within the Indian democratic system and did not need to be sought elsewhere.
The Representative of Malaysia, speaking in right of reply, responded to the allegations of a non-governmental organization that had spoken yesterday alleging that affirmative action in Malaysia had been a failure, and had used the riots of 1969 as an example. In fact a white paper had been in existence for thirty years on this issue. Malaysia was a multi-ethnic society and was hence vigilant of racial hatred. The Government and the people knew that in order for the society to thrive, the country had to be successful or it would perish. Regarding the affirmative action policies, they had been framed by a law adopted by a democratically elected body, the Malaysian Parliament. Malaysia's economic and social growth showed that the country was a good example of successful affirmative action.
EL-HADJI GUISSE, Subcommission Expert, said caste problems were not, perhaps, on the surface, associated with the problems the Subcommission was dealing with today, but the Subcommission was discussing problems of exclusion, and it was rare that persons from lower castes could easily join their mainstream societies. Caste-based systems were old, deeply ingrained and powerful; it was therefore very difficult to eradicate them, and so they were serious exclusions, and the spirit of this agenda item and of the upcoming World Conference against Racism was to eliminate exclusion and inequality, and to end absence of respect for human rights for persons based on such social customs. Therefore the Subcommission should take up matters of caste-based discrimination, and so should the World Conference.
The realization of economic, social and cultural rights
Under this agenda item, the Subcommission for the Promotion and Protection of Human Rights has before it a preliminary report by Subcommission Expert J. Oloka-Onyango and Alternate Subcommission Expert Deepika Udagama (E/CN.4/Sub.2/2000/13) on globalization and its impact on the full enjoyment of human rights, which concludes, among other things, that "there is a need for a critical reconceptualization of the policies and instruments of international trade, investment and finance. Such reconceptualization must cease treating human-rights issues as peripheral to their formulation and operation ... . Critical challenges must be made to the dominant neo-liberal economic framework of analysis, and in particular to the measures of austerity and punitive conditionality that have been the modus operandi of the existing system. Further reviews of existing debt relief and poverty eradication measures must also be undertaken from a human rights perspective." The report also calls for greater involvement of women in elaboration of the rules governing international trade and for "urgent reform" of those rules, and for formulation of guidelines that "elaborate the basic human rights obligations of the main actors within the context of globalization".
There is a report of the Secretary-General (E/CN.4/Sub.2/2000/14) on promoting the right to development in the context of the United Nations Decade for the Elimination of Poverty (1997-2006), which outlines measures taken by the Office of the High Commissioner for Human Rights and the United Nations Development Programme.
And there is an summary of comments received from the NGO Indian Movement Tupaj Amaru on indigenous peoples' relationship with natural resources, energy and mining companies (E/CN.4/Sub.2/AC.4/2000/5), which has chapters on background, a call for negotiation of a code of conduct "to regulate the irrational behaviour of powerful economic entities and consortiums in particular areas of economy and trade, as well as foreign direct investment", because "in the logic of the absolute law of free trade in search of capital gains, which is the driving force behind globalization, the transnational movement of financial capital is the living expression of blind and anarchical market economy forces, which are absolutely free to indulge their unbridled passion to colonize the world, speed up the dismantling of mechanisms and rules of conduct, liberalize trade and privatize State-owned enterprises at any cost".
There is also an annex (E/CN.4/Sub.2/2000/16) to a 1998 working paper on the realization of the right to drinking water supply and sanitation services written by Subcommission Expert El-Hadji Guisse, which reviews recent developments, including a Belgian law passed in 1999 establishing a right to drinking water and a resolution on drinking water adopted on 28 April 2000 by the Organization on Economic Cooperation and Development (OECD).
Statements
JOSEPH OLOKA-ONYANGO, Subcommission Expert and Special Rapporteur on globalization and human rights, presented his preliminary report (E/CN.4/Sub.2/2000/13) and said that globalization was a very controversial topic. There was no consensus on the meaning of the term globalization. The preliminary report had attempted to capture the relevant definition and to link it to the practical effects of globalization. The report had considered the role of the prominent players in this field, that was, the World Trade Organization, multilateral financial institutions, the World Bank and the International Monetary Fund. The issue of equality and the phenomenon of racial discrimination had been analysed in the context of globalization and the role the United Nations could and should play in ensuring that the principles of globalization adhered to human rights principles. The shrinking of the world, was not in itself negative. It was however problematic that fewer and fewer people stood to gain from this shrinking.
Mr. Olaka-Onyango said there was a problem with the highly unequal trends in globalization, particularly the logic of the free market when defined in merely economic terms. The opening of markets had to take into account the small and frail markets, which were in fact the majority in the economic order. It was important to understand that the concept of free market was defined politically; nowhere was this more clear than in the practices of the World Trade Organization. It was of concern that the raison d'etre appeared to be the consolidation of the free market ethos, without any consideration of the outside world. Amongst the most controversial issues was patenting, which allowed the transnational corporations to take over the livelihoods of the majority of the world. There was particular concern regarding policies of finance and structural reform and to what extent they were bound by international human rights instruments. Were they really inclusive enough? There was an distinction between the World Bank and the IMF. The former had made attempts to portray a human rights content. The latter was impervious to being held to account for its various policy practices. There had been developments, but fears remained that the IMF would continue to act in a manner of a closed shop.
DEEPIKA UDAGAMA, Alternate Subcommission Member, introducing her section of the preliminary report on globalization and its effect on human rights (E/CN.4/Sub.2/2000/13), said the matter was complex and defined the quality of contemporary life like no other. Any discourse on human rights today almost invariably had to be located within the paradigm of globalization. The report included a preliminary survey of the impact of globalization. There was no doubt that certain sectors of society were reaping great benefits, but unfortunately, that sector was a very thin layer of overall humanity. Meanwhile there were increasing economic disparities among and within nations; over 1.5 billion people still lived on less than $1 per day, and the number of those in extreme poverty was growing. Globalization seemed to be having negative effects on the situation of indigenous groups, minorities, women and children; it seemed to follow the pattern of survival of the fittest.
Ms. Udagama said that women had joined the labour force as never before throughout the world; investors flocking into developing countries in search of cheap labour were eager to employ women, especially in such places as free-trade zones and in the informal sector. The catch was that such work was low-paying, carried out in often-dismal conditions, and offered little job security. There was a perverse race to the bottom in the labour market -- more and more women joining the labour force, but declining labour conditions rolling back the traditional security that employment provided. And this was occurring at the same time that many Governments were reducing their social safety nets for various reasons.
Rising disparities in wealth were a serious warning, Ms. Udagama continued to state; such trends could not continue indefinitely without social reactions or upheavals. Those who benefited from globalization needed to recognize this as well as anyone, as the process could not go ahead smoothly if this pattern continued. Multilateral organizations such as the World Bank and the International Monetary Fund could not ignore international human-rights standards contained in such documents as the UN Charter. Principles of international human rights law included the right to human-centred development and the right to peace, and it was clear that transnational corporations had to be bound by such principles, even though they were private entities. These firms were extremely powerful -- more powerful than many developing nations -- and hence could not be expected to be held accountable at the national level. International oversight was necessary to make sure that the strong negative effects of their activities, clearly apparent in some countries, were curtailed.
EL-HADJI GUISSE, Subcommission Expert, said that the report was very comprehensive. He believed that the World Trade Organization, assisted by the Bretton Woods institutions, was following a regrettable approach to a privatization of the international community. The Subcommission had been in operation for fifty years to protect human rights. Meanwhile, the World Trade Organization was carrying out a second privatization and colonialization process in which the only interest was profit. Globalization to the World Trade Organization meant the possibility to invest wherever one wanted, and to produce, sell and make profit without any constraints. There was no social component to this process. Globalization would mean the worsening of extreme poverty and a widening of the chasm between the rich and poor. If the United Nations was to be consistent, it would need to oppose the existence of an organization such as the World Trade Organization. Money, domination and exploitation was the raison d'etre of the World Trade Organization. It was frightening to imagine the results of its practices on the poor and disadvantaged. International financial institutions had supported these policies and proceeded in this manner for a long time, helping the rich and powerful at the expense of the poor. Now there was even a new category of the extreme poor. To what extent were these institutions subject to international laws?
YOZO YAKOTA, Subcommission Expert, said he had researched economic, social and cultural rights two years ago as part of a study published in New York. He had stated in that report that all human rights were intimately connected; all were equally important; that economic, social and cultural rights were mentioned separately from civil and political rights for reasons of convenience and because of the situation at the time the concept had emerged; that Governments had equal obligations to promote and protect both categories of rights; that too much emphasis had been given in the past to civil and political as opposed to economic, social and cultural rights, and that more focus would have to be placed on economic, social and cultural rights in the future, although not at the cost of civil and political rights; that there might have to be future treaties on such matters as minimum standards of rights, the right to food, and the right to adequate housing; that there should be national schemes for achieving each of these rights; and that to do this there must be more resources and increases in international aid, and international agencies should be more human-rights oriented.
The preliminary report on globalization and human rights was important and Mr. Yakota said he agreed with the authors' position on the lack of sensitivity of the international financial institutions to human rights, especially economic, social and cultural rights, of those living in poverty. No attention had been given to the detrimental consequences of these organizations' activities on the destitute masses of the world, and the result had been that these people suffered from these institutions' policies through greater exclusion and greater poverty. These institutions should be subject to international law, and international human-rights law in particular, but the question was how they should be subject to the law. The World Trade Organization should be encouraged to enter into a relationship agreement with the United Nations so that its activities could be reviewed, as other agencies' activities were reviewed, for compliance with international standards. The Economic and Social Council (ECOSOC) should pay greater attention to the implications of the activities of the World Bank and the International Monetary Fund. And ECOSOC perhaps should establish an NGO forum as a way of receiving valuable input on the effects of globalization on human rights.
GUOXIANG FAN, Subcommission Expert, said that one had to face the challenge of globalization, equity, justice and diversity. Globalization needed to be defined. To some people it symbolized economic opportunities in the world's transformation into a global village. To most others, globalization represented economic, social and cultural domination. The present globalization process was not inevitable, decisisons were taken by human beings and the process had to be redirected. The right to development was the right of a people, nation and society. The accomplishment in achieving economic, social and cultural rights was associated to its comprehensive links with social justice and income distribution. In fact, social differentiation and injustice also existed in developed countries. It was desirable for developing countries to learn and assimilate modern entrepreneurship. However, they should not be asked to just copy the practices of the west, without regard for their own cultures. Political rights were important, but development in terms of common prosperity for people was the starting point of enjoying all rights.
FISSEHA YIMER, Subcommission Expert, said he approved of the structure of the preliminary report, which thoroughly covered a burning issue in the world today. It had attracted a great deal of international attention, as witnessed by the protests in Seattle and Washington. He expected protests at the upcoming meeting in Prague, too. It was time to discuss globalization beyond its economic dimensions; the subject had to be brought down from the rarefied atmosphere of corporate boardrooms. The World Trade Organizations of course had to be included in such studies, and the report rightly pointed out that the founding documents of the World Trade Organization made no reference to human rights or to social obligations to the countries of the south. The World Bank had taken some important steps in relation to human rights, but needed to do more to ensure transparency and accountability in its activities.
The most important point in the report, Mr. Yimer believed, was chapter 3 which dealt with globalization, equality and accountability. Of course globalization had not created inequality -- that had existed long before. But it was indisputable that globalization had worsened inequality around the world. Transnational corporations should sign on to a "global compact" -- a set of human-rights principles -- and should be held accountable for the human-rights implications of their activities, as recommended in the preliminary report.
BARBARA FREY, Subcommission Expert, said the preliminary report provided an important conceptual basis from which to approach the pressing issue of globalization and its relationship to human rights. It was evident that the system of globalization unfolding before us had profound implications for the rights of all individuals and groups. The shift of power away from the State and toward the private sector called for the rethinking of the international laws and mechanisms needed to protect human rights at all levels, from the worker to the consumer to the neighbour next door. The growth of international trade, investment and finance had created job opportunities for some, but had also resulted in the trampling of cultures, an increase in environmental stress and degradation and an unprecedented disparity of wealth.
Ms. Frey said that monitoring of specific violations resulting from actions of multilateral financial institutions was required by the Subcommission. The Subcommission should also continue to devote its attention to the direct and indirect effects on human rights by the actions of businesses. Another focus should be the increased scrutiny of States, which carried the primary obligation to protect the rights of their residents against the negative effects of globalization. It was clear that the role of non-governmental organizations could not be underestimated. They should continue to provide documentation on each of these topics, the actions of multilateral institutions, businesses and States. In fact, one of the benefits of globalization, the growth of information and communication technology, had allowed civil society to organize itself more quickly and inclusively and to mobilize the public by the spread of information.
CHRISTY EZIM MBONU, Alternate Subcommission Member, said she regretted that this important preliminary report on globalization had come out only yesterday. Globalization could have negative effects, but if it was properly harnessed and managed, it could perhaps be made beneficial for all. There should be active participation of developing countries in international economic decision-making. It seemed clear that not enough attention had been given to the social impact of globalization and especially to widening disparities in wealth. Negative impacts on economic rights had multiplier effects on other human rights.
Poverty in many developing countries was on the increase -- it was the greatest challenge they faced. Employment had stagnated or declined; Governments struggled with programmes of financial austerity imposed on them by such institutions as the International Monetary Fund and World Bank. The IMF argued that it dealt only with economic issues, and not with human rights, but its austerity measures left developing countries with hardly any resources for creating jobs for their young people, which was a major need. That led to such ills as criminality, transborder crime, prostitution among young women, and even trafficking in human beings. In sub-Saharan Africa, poverty was especially serious and there was little international capital invested. She strongly agreed with the authors of the report that a human rights component had to be added to international financial activities. She also felt that the "Social Forum" proposed by the Subcommission, and rejected by the Commission on Human Rights, again should be suggested, given the importance of the issue of globalization and human rights.
VLADIMIR KARTASHKIN, Subcommission Expert, said the report was extremely interesting and highlighted important issues regarding globalization and economic, social and cultural rights. He hoped that the final report would include further information on other areas which had not yet been covered. To think that the process of globalization was not changing the international scene was a mistake. However, States would continue to play an important role which could not be replaced by the private sector. Since States defined international law, the process of globalization gave Governments many new tasks to deal with. The report stressed that the role of non-governmental organizations was a growing one. On this subject, it was important to underline that only through cooperation between NGOs and States could there be fruitful developments. NGOs had to come forward with positive and concrete suggestions in order to play a role in this important task.
Mr. Kartashkin said globalization could lead to positive effects too, as the economic, social and cultural developments in many places in the world proved. However, it could also lead to discrimination against migrant workers, women and other minority groups. One had to recognize that the process of globalization was inevitable. The task was to overcome the negative impact of globalization. It was time to formulate guidelines within which there was a consideration of human rights principles. The authors of the report ought to formulate guidelines through which globalization and human rights could go hand in hand, containing the various obligations to protect rights, so as to avoid the negative impact of globalization.
LOUIS JOINET, Subcommission Expert, said that international "non-State" consciousness about globalization had progressed a great deal since Seattle; the non-governmental organizations protesting there had spurred some changes, similar to the effect that had had in Davos.
Perhaps more attention should be paid to the role of civil society in combatting the negative effects of globalization. What did the authors of the report think, for example, of the use of boycotts or of taxing international financial transactions? Would that rebalance a little the inequalities referred to? Was such a tax realistic?
EL-HADJI GUISSE, Subcommission Expert, presented an update to his working paper on the right to access by everyone to drinking water and sanitation. Drinking water was indispensable in everyone's lives and was a necessity for the viability of civilizations. Drinking water was a vital resource, however, according to statistics, over one billion people still had no access to drinking water and four billion lacked access to sanitation. This situation required action.
Mr. Guisse said all human activities depended on access to water and sanitation. Agriculture was the major consumer of water and accounted for nearly 80 percent of water used. Water and water-related activities were at the heart of fundamental human rights. The most important right was the right to life. Non-access to drinking water would soon imperil human life. An absence or insufficience of drinking water also threatened the maintenance of international peace and security. Many conflicts were in progress due to the lack of drinking water, and more conflict resulting from the lack of water would erupt. Drinking water was intimately linked to the right to food and the need for nutrition. One of the major challenges of the next few decades was the increase of food production, hence water would become even more sparse.
Another important right was the right to health. Mr. Guisse said that today, water diseases were a major problem affecting health, particularly in developing countries. According to statistics from the World Health Organization, 80 percent of all diseases were transmitted through water. The environment had been damaged by the increase in pollution and the massive use of pesticides and other toxic products. This was a living example of the degradation of the environment affecting all aspects of life. International cooperation in technical areas, science and the environment was required to redress the situation. The right to drinking water had been announced in some countries, but had never been defined and this should be remedied.
JOSE BENGOA, Subcommission Expert, said recently he had travelled to Tanzania as part of a group hosted by an association of professional and technical people. As they travelled, they had seen hundreds of women along the road, all of them going to fetch water, many of them pulling wagons holding water drums. This area had been affected seriously by drought, and much environmental damage was apparent. He had been told that many people had had to leave the region because of the lack of water, yet there were mines in the region which required the heavy use of water. It was clear that drinking water was a higher priority. Also, it was obvious that development related to water required the approval and participation of women, as women in such areas spent a great deal of their time and energy obtaining water for their families. He approved of the update on Mr. Guisse's working paper.
Attention also was needed to the matter of extreme poverty, which meant not only poverty but almost utter exclusion from society. The Subcommission should pay more attention to the topic. He was not sure about the term "extreme poverty". Its definition by international financial institutions tended to be too qualitative and did not look at underlying, serious, in-depth problems. He thought there should soon be an international declaration on the topic of poverty -- and it should be a document that empowered the poor.
MANUEL RODRIGUEZ CUADROS, Subcommission Expert, said that he echoed the tributes paid to the authors of the report on globalization. The study looked at the international system and had a macro-approach. There were impacts of globalization which were beneficial for human rights, particularly in the dissemination of information about human rights and human rights violations. The same was applicable with regard to democracy as a shared value. The impact of structural adjustment required more attention. It would be appropriate to determine if there were any goals for fiscal deficits, since this was essential for a healthy economy. Where was the money coming from to close the circle? One should also consider the impact of social assistance and compensation programmes, to see whether the gap was widening or closing.
Some thinking was necessary with regard to how the international system was facing the current trends of globalization. The only way to compensate for the negative effects would be to add to the design and the execution of programmes providing jobs and remuneration, such as had been achieved to a certain degree by the International Labour Organization. A micro approach was also necessary, to see the result of adjustment programmes. It would be appropriate to investigate the responses by national civil societies to globalization. How could one govern globalization in a manner compatible with freedom of markets.
With regard to the report on the right to drinkable water and sanitation, perhaps it would be more constructive to discuss access to drinking water as a condition for the right to life, food, economic and social rights, as opposed to discussing the right to water as such.
YUNG KAM YEUNG SIK YUEN, Subcommission Expert, said the supply of drinking water was indeed critical, and he fully shared the view of Mr. Guisse that access to potable water should be considered a basic human right.
The preliminary report on globalization was impressive. The name of the game was profit, unfortunately, and the hegemony of the main market players was clear. Next time anyone went to buy a product, such as shampoo, it was worth looking to see where it was produced; it was hard to find one not produced by two of the main players in the field -- there were a variety of brands, but only two main players behind them. Big fish were eating up small fish and becoming bigger fish, and competition was being reduced. Currently 200 huge companies occupied 34 per cent of world's GDP. Was that good for the consumer? At the end of the day, were the people of the world getting value for their money, and were they being assured that everything was done fairly and squarely?
He agreed with Mr. Yokota's proposal that the Economic and Social Council might assume a wider role in the field of globalization by submitting the international financial institutions to scrutiny. He approved of the idea of a proposed code of conduct to be followed by transnational corporations. This code should contain good practices. It was noteworthy that some corporations had signed a voluntary code of conduct; yet one of the corporations that had signed it and was based in Italy had decided, at a time when the Italian lire was undergoing difficulties, that it would sell its products only to Italians.
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and Protection of Human Rights
52nd session
8 August 2000
Morning
Discusses Globalization and Human Rights
The Subcommission on the Promotion and Protection of Human Rights this morning started its consideration of the realization of economic, social and cultural rights and discussed the impact of globalization on human rights.
Subcommission Experts and Special Rapporteurs Joseph Oloka-Onyango and Deepika Udagama presented their preliminary report on the issue of globalization and its impact on the full enjoyment of all human rights. The Experts said the report attempted to capture the relevant definition of globalization and to link it to the practical effects of the phenomenon. The role of the prominent players in this field, the World Trade Organization, multilateral financial institutions, the World Bank and the International Monetary Fund had been considered as well as the role the United Nations could and should play in ensuring that globalization adhered to human rights principles. The situation today showed that fewer and fewer people stood to gain from current trends of globalization.
Other Subcommission Experts expressed concern as to the role played by international financial institutions with regard to the direction of globalization. Even though there were positive sides to globalization, levels of equality and respect for economic, social and cultural rights of peoples had decreased.
Expert El-Hadji Guisse also presented an update to his working paper on the right of everyone to drinking water and sanitation. He highlighted the increasing sparsity of drinking water and the subsequent effects on all human rights.
Under its agenda item on the realization of economic, social and cultural rights, the Subcommission will discuss issues related to the international economic order and the promotion of human rights, the realization of the right to development, the question of transnational corporations and the realization of the right to education, including education in human rights.
Earlier in the meeting, the Subcommission concluded its consideration of issues relating to the elimination of racial discrimination.
The following Subcommission Experts or Alternate Members took the floor this morning: Manuel Rodriguez Cuadros, Soo Gil Park, El-Hadji Guisse, Joseph Oloka-Onyango, Deepika Udagama, Yozo Yokota, Guoxiang Fan, Fisseha Yimer, Barbara Frey, Christy Ezim Mbonu, Vladimir Kartashkin, Louis Joinet, Jose Bengoa and Yung Kam Yung Sik Yuen.
India and Malaysia exercised their right of reply.
The Subcommission will resume its meeting at 3 p.m. to continue its consideration of economic, social and cultural rights and to hear from non-governmental organizations on this item.
Statements on the elimination of racial discrimination
MANUEL RODRIGUEZ CUADROS, Subcommission Expert, said trends in economic globalization co-existed with trends espousing extreme nationalism and exclusionary tendencies which could prevent peaceful coexistence and could even lead to violence and war. Racism and xenophobia had taken on new, more complex forms, and their geographic range was broadening. Collective and national differences were being exalted and poverty was being stigmatized, leading to prejudicial attitudes. In many European countries, migrant workers and their families, whether clandestine or not, were the main victims. One had the impression that Europe was meant for Europeans only. Legal exercise of the rights of migrants was often limited, and meanwhile globalization was increasing the flows of migrants.
The only thing that was not becoming increasingly liberalized in the globalized economy, it seemed, was labour -- while restrictions on flows of capital and various financial and business activities were being reduced, there was paradoxically a series of new barriers against the flow of workers. In a sense it was not fair for industrialized countries to benefit from economic globalization under these terms, and the tensions resulting from this phenomenon added to the pressures that were arrayed against migrant workers. Appropriate measures should be adopted not only to protect migrants but also to define rules and principles for all States to adapt their national legislation to meet minimum standards for protecting migrants and to combat impunity for offenses committed against them, as well as to prevent such abuses. That would be a valid task for the World Conference against Racism.
SOO GIL PARK, Subcommission Expert, said human rights were given to individuals by virtue of being human beings. This meant that they stood equal before the law. History had been painfully tainted with a record of outrageous discrimination, and in this regard, any system of discrimination should be brought to an end immediately. It was important to make a success of the World Conference against Racism as racism was closely linked to the question of peace and security. The Conference should consider that as part of peace, racism had to be eradicated. It was also important to note that the spread of xenophobia and the wave of anti-immigrant sentiments had reached unacceptable levels. The trend of xenophobia had to be contained. Mr. Weissbrodt had widened the issue on the protection of migrant workers and their families within his work and this was welcomed.
The UN Millennium Summit was to be held shortly and would devise a response to the challenges of the twenty-first century. This Summit could be used to mobilize people to join in the struggle against racism and could have even further positive effects on the World Conference against Racism. Governments should also reaffirm their commitment to the eradication of racism and offer compensation and remedies to the victims of racial discrimination. The prohibition of discrimination had been one of the traditional concerns of the United Nations. There were bodies whose sole purpose was to ensure governmental commitment. Tribute was paid to several experts for their submission of reports which would make a tremendous impact when considered at the World Conference against Racism.
Rights of Reply
The Representative of India, speaking in right of reply, said yesterday references had been made to the caste system. India was not convinced that such matters fell within the ambit of racial discrimination. The relevant Convention referred to racial "descent", and although caste was based on birth, it was not based on race. The Indian Government opposed all distinctions and prejudices based on caste, and had taken numerous steps to outlaw it and to aid those in disadvantaged castes to advance. No country was perfect, and India was not, either. But it had made much progress and it had an impressive record to help improve the situation of those from the traditionally lower castes. India was committed to eliminating caste-based discrimination, but it should not be forgotten that the tools for this were contained within the Indian democratic system and did not need to be sought elsewhere.
The Representative of Malaysia, speaking in right of reply, responded to the allegations of a non-governmental organization that had spoken yesterday alleging that affirmative action in Malaysia had been a failure, and had used the riots of 1969 as an example. In fact a white paper had been in existence for thirty years on this issue. Malaysia was a multi-ethnic society and was hence vigilant of racial hatred. The Government and the people knew that in order for the society to thrive, the country had to be successful or it would perish. Regarding the affirmative action policies, they had been framed by a law adopted by a democratically elected body, the Malaysian Parliament. Malaysia's economic and social growth showed that the country was a good example of successful affirmative action.
EL-HADJI GUISSE, Subcommission Expert, said caste problems were not, perhaps, on the surface, associated with the problems the Subcommission was dealing with today, but the Subcommission was discussing problems of exclusion, and it was rare that persons from lower castes could easily join their mainstream societies. Caste-based systems were old, deeply ingrained and powerful; it was therefore very difficult to eradicate them, and so they were serious exclusions, and the spirit of this agenda item and of the upcoming World Conference against Racism was to eliminate exclusion and inequality, and to end absence of respect for human rights for persons based on such social customs. Therefore the Subcommission should take up matters of caste-based discrimination, and so should the World Conference.
The realization of economic, social and cultural rights
Under this agenda item, the Subcommission for the Promotion and Protection of Human Rights has before it a preliminary report by Subcommission Expert J. Oloka-Onyango and Alternate Subcommission Expert Deepika Udagama (E/CN.4/Sub.2/2000/13) on globalization and its impact on the full enjoyment of human rights, which concludes, among other things, that "there is a need for a critical reconceptualization of the policies and instruments of international trade, investment and finance. Such reconceptualization must cease treating human-rights issues as peripheral to their formulation and operation ... . Critical challenges must be made to the dominant neo-liberal economic framework of analysis, and in particular to the measures of austerity and punitive conditionality that have been the modus operandi of the existing system. Further reviews of existing debt relief and poverty eradication measures must also be undertaken from a human rights perspective." The report also calls for greater involvement of women in elaboration of the rules governing international trade and for "urgent reform" of those rules, and for formulation of guidelines that "elaborate the basic human rights obligations of the main actors within the context of globalization".
There is a report of the Secretary-General (E/CN.4/Sub.2/2000/14) on promoting the right to development in the context of the United Nations Decade for the Elimination of Poverty (1997-2006), which outlines measures taken by the Office of the High Commissioner for Human Rights and the United Nations Development Programme.
And there is an summary of comments received from the NGO Indian Movement Tupaj Amaru on indigenous peoples' relationship with natural resources, energy and mining companies (E/CN.4/Sub.2/AC.4/2000/5), which has chapters on background, a call for negotiation of a code of conduct "to regulate the irrational behaviour of powerful economic entities and consortiums in particular areas of economy and trade, as well as foreign direct investment", because "in the logic of the absolute law of free trade in search of capital gains, which is the driving force behind globalization, the transnational movement of financial capital is the living expression of blind and anarchical market economy forces, which are absolutely free to indulge their unbridled passion to colonize the world, speed up the dismantling of mechanisms and rules of conduct, liberalize trade and privatize State-owned enterprises at any cost".
There is also an annex (E/CN.4/Sub.2/2000/16) to a 1998 working paper on the realization of the right to drinking water supply and sanitation services written by Subcommission Expert El-Hadji Guisse, which reviews recent developments, including a Belgian law passed in 1999 establishing a right to drinking water and a resolution on drinking water adopted on 28 April 2000 by the Organization on Economic Cooperation and Development (OECD).
Statements
JOSEPH OLOKA-ONYANGO, Subcommission Expert and Special Rapporteur on globalization and human rights, presented his preliminary report (E/CN.4/Sub.2/2000/13) and said that globalization was a very controversial topic. There was no consensus on the meaning of the term globalization. The preliminary report had attempted to capture the relevant definition and to link it to the practical effects of globalization. The report had considered the role of the prominent players in this field, that was, the World Trade Organization, multilateral financial institutions, the World Bank and the International Monetary Fund. The issue of equality and the phenomenon of racial discrimination had been analysed in the context of globalization and the role the United Nations could and should play in ensuring that the principles of globalization adhered to human rights principles. The shrinking of the world, was not in itself negative. It was however problematic that fewer and fewer people stood to gain from this shrinking.
Mr. Olaka-Onyango said there was a problem with the highly unequal trends in globalization, particularly the logic of the free market when defined in merely economic terms. The opening of markets had to take into account the small and frail markets, which were in fact the majority in the economic order. It was important to understand that the concept of free market was defined politically; nowhere was this more clear than in the practices of the World Trade Organization. It was of concern that the raison d'etre appeared to be the consolidation of the free market ethos, without any consideration of the outside world. Amongst the most controversial issues was patenting, which allowed the transnational corporations to take over the livelihoods of the majority of the world. There was particular concern regarding policies of finance and structural reform and to what extent they were bound by international human rights instruments. Were they really inclusive enough? There was an distinction between the World Bank and the IMF. The former had made attempts to portray a human rights content. The latter was impervious to being held to account for its various policy practices. There had been developments, but fears remained that the IMF would continue to act in a manner of a closed shop.
DEEPIKA UDAGAMA, Alternate Subcommission Member, introducing her section of the preliminary report on globalization and its effect on human rights (E/CN.4/Sub.2/2000/13), said the matter was complex and defined the quality of contemporary life like no other. Any discourse on human rights today almost invariably had to be located within the paradigm of globalization. The report included a preliminary survey of the impact of globalization. There was no doubt that certain sectors of society were reaping great benefits, but unfortunately, that sector was a very thin layer of overall humanity. Meanwhile there were increasing economic disparities among and within nations; over 1.5 billion people still lived on less than $1 per day, and the number of those in extreme poverty was growing. Globalization seemed to be having negative effects on the situation of indigenous groups, minorities, women and children; it seemed to follow the pattern of survival of the fittest.
Ms. Udagama said that women had joined the labour force as never before throughout the world; investors flocking into developing countries in search of cheap labour were eager to employ women, especially in such places as free-trade zones and in the informal sector. The catch was that such work was low-paying, carried out in often-dismal conditions, and offered little job security. There was a perverse race to the bottom in the labour market -- more and more women joining the labour force, but declining labour conditions rolling back the traditional security that employment provided. And this was occurring at the same time that many Governments were reducing their social safety nets for various reasons.
Rising disparities in wealth were a serious warning, Ms. Udagama continued to state; such trends could not continue indefinitely without social reactions or upheavals. Those who benefited from globalization needed to recognize this as well as anyone, as the process could not go ahead smoothly if this pattern continued. Multilateral organizations such as the World Bank and the International Monetary Fund could not ignore international human-rights standards contained in such documents as the UN Charter. Principles of international human rights law included the right to human-centred development and the right to peace, and it was clear that transnational corporations had to be bound by such principles, even though they were private entities. These firms were extremely powerful -- more powerful than many developing nations -- and hence could not be expected to be held accountable at the national level. International oversight was necessary to make sure that the strong negative effects of their activities, clearly apparent in some countries, were curtailed.
EL-HADJI GUISSE, Subcommission Expert, said that the report was very comprehensive. He believed that the World Trade Organization, assisted by the Bretton Woods institutions, was following a regrettable approach to a privatization of the international community. The Subcommission had been in operation for fifty years to protect human rights. Meanwhile, the World Trade Organization was carrying out a second privatization and colonialization process in which the only interest was profit. Globalization to the World Trade Organization meant the possibility to invest wherever one wanted, and to produce, sell and make profit without any constraints. There was no social component to this process. Globalization would mean the worsening of extreme poverty and a widening of the chasm between the rich and poor. If the United Nations was to be consistent, it would need to oppose the existence of an organization such as the World Trade Organization. Money, domination and exploitation was the raison d'etre of the World Trade Organization. It was frightening to imagine the results of its practices on the poor and disadvantaged. International financial institutions had supported these policies and proceeded in this manner for a long time, helping the rich and powerful at the expense of the poor. Now there was even a new category of the extreme poor. To what extent were these institutions subject to international laws?
YOZO YAKOTA, Subcommission Expert, said he had researched economic, social and cultural rights two years ago as part of a study published in New York. He had stated in that report that all human rights were intimately connected; all were equally important; that economic, social and cultural rights were mentioned separately from civil and political rights for reasons of convenience and because of the situation at the time the concept had emerged; that Governments had equal obligations to promote and protect both categories of rights; that too much emphasis had been given in the past to civil and political as opposed to economic, social and cultural rights, and that more focus would have to be placed on economic, social and cultural rights in the future, although not at the cost of civil and political rights; that there might have to be future treaties on such matters as minimum standards of rights, the right to food, and the right to adequate housing; that there should be national schemes for achieving each of these rights; and that to do this there must be more resources and increases in international aid, and international agencies should be more human-rights oriented.
The preliminary report on globalization and human rights was important and Mr. Yakota said he agreed with the authors' position on the lack of sensitivity of the international financial institutions to human rights, especially economic, social and cultural rights, of those living in poverty. No attention had been given to the detrimental consequences of these organizations' activities on the destitute masses of the world, and the result had been that these people suffered from these institutions' policies through greater exclusion and greater poverty. These institutions should be subject to international law, and international human-rights law in particular, but the question was how they should be subject to the law. The World Trade Organization should be encouraged to enter into a relationship agreement with the United Nations so that its activities could be reviewed, as other agencies' activities were reviewed, for compliance with international standards. The Economic and Social Council (ECOSOC) should pay greater attention to the implications of the activities of the World Bank and the International Monetary Fund. And ECOSOC perhaps should establish an NGO forum as a way of receiving valuable input on the effects of globalization on human rights.
GUOXIANG FAN, Subcommission Expert, said that one had to face the challenge of globalization, equity, justice and diversity. Globalization needed to be defined. To some people it symbolized economic opportunities in the world's transformation into a global village. To most others, globalization represented economic, social and cultural domination. The present globalization process was not inevitable, decisisons were taken by human beings and the process had to be redirected. The right to development was the right of a people, nation and society. The accomplishment in achieving economic, social and cultural rights was associated to its comprehensive links with social justice and income distribution. In fact, social differentiation and injustice also existed in developed countries. It was desirable for developing countries to learn and assimilate modern entrepreneurship. However, they should not be asked to just copy the practices of the west, without regard for their own cultures. Political rights were important, but development in terms of common prosperity for people was the starting point of enjoying all rights.
FISSEHA YIMER, Subcommission Expert, said he approved of the structure of the preliminary report, which thoroughly covered a burning issue in the world today. It had attracted a great deal of international attention, as witnessed by the protests in Seattle and Washington. He expected protests at the upcoming meeting in Prague, too. It was time to discuss globalization beyond its economic dimensions; the subject had to be brought down from the rarefied atmosphere of corporate boardrooms. The World Trade Organizations of course had to be included in such studies, and the report rightly pointed out that the founding documents of the World Trade Organization made no reference to human rights or to social obligations to the countries of the south. The World Bank had taken some important steps in relation to human rights, but needed to do more to ensure transparency and accountability in its activities.
The most important point in the report, Mr. Yimer believed, was chapter 3 which dealt with globalization, equality and accountability. Of course globalization had not created inequality -- that had existed long before. But it was indisputable that globalization had worsened inequality around the world. Transnational corporations should sign on to a "global compact" -- a set of human-rights principles -- and should be held accountable for the human-rights implications of their activities, as recommended in the preliminary report.
BARBARA FREY, Subcommission Expert, said the preliminary report provided an important conceptual basis from which to approach the pressing issue of globalization and its relationship to human rights. It was evident that the system of globalization unfolding before us had profound implications for the rights of all individuals and groups. The shift of power away from the State and toward the private sector called for the rethinking of the international laws and mechanisms needed to protect human rights at all levels, from the worker to the consumer to the neighbour next door. The growth of international trade, investment and finance had created job opportunities for some, but had also resulted in the trampling of cultures, an increase in environmental stress and degradation and an unprecedented disparity of wealth.
Ms. Frey said that monitoring of specific violations resulting from actions of multilateral financial institutions was required by the Subcommission. The Subcommission should also continue to devote its attention to the direct and indirect effects on human rights by the actions of businesses. Another focus should be the increased scrutiny of States, which carried the primary obligation to protect the rights of their residents against the negative effects of globalization. It was clear that the role of non-governmental organizations could not be underestimated. They should continue to provide documentation on each of these topics, the actions of multilateral institutions, businesses and States. In fact, one of the benefits of globalization, the growth of information and communication technology, had allowed civil society to organize itself more quickly and inclusively and to mobilize the public by the spread of information.
CHRISTY EZIM MBONU, Alternate Subcommission Member, said she regretted that this important preliminary report on globalization had come out only yesterday. Globalization could have negative effects, but if it was properly harnessed and managed, it could perhaps be made beneficial for all. There should be active participation of developing countries in international economic decision-making. It seemed clear that not enough attention had been given to the social impact of globalization and especially to widening disparities in wealth. Negative impacts on economic rights had multiplier effects on other human rights.
Poverty in many developing countries was on the increase -- it was the greatest challenge they faced. Employment had stagnated or declined; Governments struggled with programmes of financial austerity imposed on them by such institutions as the International Monetary Fund and World Bank. The IMF argued that it dealt only with economic issues, and not with human rights, but its austerity measures left developing countries with hardly any resources for creating jobs for their young people, which was a major need. That led to such ills as criminality, transborder crime, prostitution among young women, and even trafficking in human beings. In sub-Saharan Africa, poverty was especially serious and there was little international capital invested. She strongly agreed with the authors of the report that a human rights component had to be added to international financial activities. She also felt that the "Social Forum" proposed by the Subcommission, and rejected by the Commission on Human Rights, again should be suggested, given the importance of the issue of globalization and human rights.
VLADIMIR KARTASHKIN, Subcommission Expert, said the report was extremely interesting and highlighted important issues regarding globalization and economic, social and cultural rights. He hoped that the final report would include further information on other areas which had not yet been covered. To think that the process of globalization was not changing the international scene was a mistake. However, States would continue to play an important role which could not be replaced by the private sector. Since States defined international law, the process of globalization gave Governments many new tasks to deal with. The report stressed that the role of non-governmental organizations was a growing one. On this subject, it was important to underline that only through cooperation between NGOs and States could there be fruitful developments. NGOs had to come forward with positive and concrete suggestions in order to play a role in this important task.
Mr. Kartashkin said globalization could lead to positive effects too, as the economic, social and cultural developments in many places in the world proved. However, it could also lead to discrimination against migrant workers, women and other minority groups. One had to recognize that the process of globalization was inevitable. The task was to overcome the negative impact of globalization. It was time to formulate guidelines within which there was a consideration of human rights principles. The authors of the report ought to formulate guidelines through which globalization and human rights could go hand in hand, containing the various obligations to protect rights, so as to avoid the negative impact of globalization.
LOUIS JOINET, Subcommission Expert, said that international "non-State" consciousness about globalization had progressed a great deal since Seattle; the non-governmental organizations protesting there had spurred some changes, similar to the effect that had had in Davos.
Perhaps more attention should be paid to the role of civil society in combatting the negative effects of globalization. What did the authors of the report think, for example, of the use of boycotts or of taxing international financial transactions? Would that rebalance a little the inequalities referred to? Was such a tax realistic?
EL-HADJI GUISSE, Subcommission Expert, presented an update to his working paper on the right to access by everyone to drinking water and sanitation. Drinking water was indispensable in everyone's lives and was a necessity for the viability of civilizations. Drinking water was a vital resource, however, according to statistics, over one billion people still had no access to drinking water and four billion lacked access to sanitation. This situation required action.
Mr. Guisse said all human activities depended on access to water and sanitation. Agriculture was the major consumer of water and accounted for nearly 80 percent of water used. Water and water-related activities were at the heart of fundamental human rights. The most important right was the right to life. Non-access to drinking water would soon imperil human life. An absence or insufficience of drinking water also threatened the maintenance of international peace and security. Many conflicts were in progress due to the lack of drinking water, and more conflict resulting from the lack of water would erupt. Drinking water was intimately linked to the right to food and the need for nutrition. One of the major challenges of the next few decades was the increase of food production, hence water would become even more sparse.
Another important right was the right to health. Mr. Guisse said that today, water diseases were a major problem affecting health, particularly in developing countries. According to statistics from the World Health Organization, 80 percent of all diseases were transmitted through water. The environment had been damaged by the increase in pollution and the massive use of pesticides and other toxic products. This was a living example of the degradation of the environment affecting all aspects of life. International cooperation in technical areas, science and the environment was required to redress the situation. The right to drinking water had been announced in some countries, but had never been defined and this should be remedied.
JOSE BENGOA, Subcommission Expert, said recently he had travelled to Tanzania as part of a group hosted by an association of professional and technical people. As they travelled, they had seen hundreds of women along the road, all of them going to fetch water, many of them pulling wagons holding water drums. This area had been affected seriously by drought, and much environmental damage was apparent. He had been told that many people had had to leave the region because of the lack of water, yet there were mines in the region which required the heavy use of water. It was clear that drinking water was a higher priority. Also, it was obvious that development related to water required the approval and participation of women, as women in such areas spent a great deal of their time and energy obtaining water for their families. He approved of the update on Mr. Guisse's working paper.
Attention also was needed to the matter of extreme poverty, which meant not only poverty but almost utter exclusion from society. The Subcommission should pay more attention to the topic. He was not sure about the term "extreme poverty". Its definition by international financial institutions tended to be too qualitative and did not look at underlying, serious, in-depth problems. He thought there should soon be an international declaration on the topic of poverty -- and it should be a document that empowered the poor.
MANUEL RODRIGUEZ CUADROS, Subcommission Expert, said that he echoed the tributes paid to the authors of the report on globalization. The study looked at the international system and had a macro-approach. There were impacts of globalization which were beneficial for human rights, particularly in the dissemination of information about human rights and human rights violations. The same was applicable with regard to democracy as a shared value. The impact of structural adjustment required more attention. It would be appropriate to determine if there were any goals for fiscal deficits, since this was essential for a healthy economy. Where was the money coming from to close the circle? One should also consider the impact of social assistance and compensation programmes, to see whether the gap was widening or closing.
Some thinking was necessary with regard to how the international system was facing the current trends of globalization. The only way to compensate for the negative effects would be to add to the design and the execution of programmes providing jobs and remuneration, such as had been achieved to a certain degree by the International Labour Organization. A micro approach was also necessary, to see the result of adjustment programmes. It would be appropriate to investigate the responses by national civil societies to globalization. How could one govern globalization in a manner compatible with freedom of markets.
With regard to the report on the right to drinkable water and sanitation, perhaps it would be more constructive to discuss access to drinking water as a condition for the right to life, food, economic and social rights, as opposed to discussing the right to water as such.
YUNG KAM YEUNG SIK YUEN, Subcommission Expert, said the supply of drinking water was indeed critical, and he fully shared the view of Mr. Guisse that access to potable water should be considered a basic human right.
The preliminary report on globalization was impressive. The name of the game was profit, unfortunately, and the hegemony of the main market players was clear. Next time anyone went to buy a product, such as shampoo, it was worth looking to see where it was produced; it was hard to find one not produced by two of the main players in the field -- there were a variety of brands, but only two main players behind them. Big fish were eating up small fish and becoming bigger fish, and competition was being reduced. Currently 200 huge companies occupied 34 per cent of world's GDP. Was that good for the consumer? At the end of the day, were the people of the world getting value for their money, and were they being assured that everything was done fairly and squarely?
He agreed with Mr. Yokota's proposal that the Economic and Social Council might assume a wider role in the field of globalization by submitting the international financial institutions to scrutiny. He approved of the idea of a proposed code of conduct to be followed by transnational corporations. This code should contain good practices. It was noteworthy that some corporations had signed a voluntary code of conduct; yet one of the corporations that had signed it and was based in Italy had decided, at a time when the Italian lire was undergoing difficulties, that it would sell its products only to Italians.
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