STATEMENT BY AMBASSADOR ALFONSO VALDIVIESO, PERMANENT
REPRESENTATIVE OF COLOMBIA, ON BEHALF OF THE COUNTRIES
MEMBERS OF THE RIO GROUP ON

AGENDA ITEM 100:

GLOBALIZATION AND INTERDEPENDENCE

New York, 24 October 2000

Mr. Chairman,

I have the honour to speak on behalf of the countries members of the Rio Group on agenda item 100 entitled "Globalization and interdependence".

The revolution in information technologies has been closely associated with the phenomenon of globalization. In fact, it may be said that this phenomenon is the consequence of a sudden leap in communications technology.

Globalization has forced the principal actors on the international scene, namely States, the business sector and civil society, to adapt rapidly to this new reality. In the case of the private sector, globalization has meant that units of production have had to compete on a global scale and deregulation has given market forces new investment horizons, in such sectors as telecommunications, medicine and transportation.

The Internet has helped to produce more informed consumers who can use information networks to connect to a legion of eager vendors, thereby generating nearly perfect inflow and outflow data which clearly help to determine price levels and client satisfaction. In addition, the fact that digitally stored information is easily used and copied permits an infinite array of very useful services to be offered free of charge on the Internet.

The Rio Group is therefore of the view that the characteristics and impact of globalization not only in the economic sphere but also in the daily lives of individuals requires the international community and States to prepare themselves adequately to meet the challenges ahead.

We must not forget that the phenomenon of globalization and its benefits are limited by this great mass of individuals who, lacking any possibility of meeting their basic needs for food, shelter and health, are today completely excluded from the information highway and the benefits of instant information.

The United Nations has a major key role to play in preventing the digital gaps between "cyber citizens" and those who are excluded from increasing. In this connection, we reiterate our support to the Declaration adopted by ECOSOC during this year High Level segment regarding Information and Communication Technologies and Development, including the decision on the establishment of a Working Group to help solving this situations and to help developing countries in their insertion to the globalized world.

We also consider that the initiative launched by the Secretary-General in the document "We the People", which concerns a group of volunteers who teach low-income individuals how to apply their knowledge and improve the well being of their societies, is of particular importance.

The Rio Group welcomes the Secretary-General's initiative known as the "Global Compact", in which companies are called upon to operate in a manner consistent with the commitment given in the Declaration of Human Rights and the Rio Declaration on Environment and Development.

We believe that the United Nations has an essential and influential role to play in mitigating the undesired effects of globalization.

It is important for governments to commit themselves to investments in education and science in order to alleviate the harshest effects of globalization by ensuring that low-income families do not fall into a vicious cycle of inadequate preparation, since, without wishing to, poor families perpetuate the knowledge gap by sending their children to low-achieving schools that contribute to high drop-out rates, while better-off families send their children to colleges of excellence from which they graduate and rapidly achieve insertion into the new economy.

The countries members of the Rio Group wish to stress the need for the process of globalization to take into account the needs of the weakest. In our region, one of the vehicles used to achieve that purpose has been the strengthening of our institutions and political structures in order to take advantage of the benefits of globalization and to contain the risks inherent in the phenomenon. Even though our countries have benefited from the increase in the levels of trade, capital flows and economic integration, formidable challenges still remain to be met if we are to reduce the economic and social imbalances that still exist.

The positive aspects include the growing availability and better allocation of resources in our economies, the freer circulation of knowledge, improvements in public administration and a more open and competitive environment. Nevertheless, the volatility of capital, which was demonstrated during the successive financial crises that affected our region, as well as the decentralization measures adopted to satisfy local demands, have the potential to create macro-economic instability if fiscal discipline is not maintained and complemented by social policies aimed at stopping the spread of poverty, violence and misery.

In this connection, we wish to draw attention to the processes of regional integration being pursued by our countries, which, in addition to highlighting the consolidation of democracy, have increased the potential of our countries by improving its opportunities for growth, attracting direct investments and facilitating our insertion into the world economy.

Mr. Chairman,

The Rio Group, as a mechanism for regional political concertation, believes that integration has served as a vehicle for accentuating the positive elements of globalization by strengthening national democratic regimes, and facilitates the development of joint strategies and policies for the attainment of our common interests.

Regional integration means, in our view, more than the liberalization of markets. It means linking the interests of the countries involved based on their geographical, economic, political and cultural affinities. Our region's historical, linguistic, religious and cultural unity must be strengthened and this will no doubt help to consolidate the presence of our region in this interdependent world, by expressing our common ideas and our vocation to humanize the often cold and mechanized face of globalization.

Thank you.