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THE 2003 HUMAN DEVELOPMENT REPORT
“MILLENIUM DEVELOPMENT GOALS:
A COMPACT AMONG NATIONS
TO END HUMAN POVERTY
PRESENTATION BY MR. NORMAND LAUZON
EXECUTIVE SECRETARY
UNITED NATIONS CAPITAL DEVELOPMENT FUND (UNCDF)
OTTAWA 8 JULY 2003
“The range of human development
in the world
is vast and uneven, with outstanding progress
in some areas amid stagnation and dismal decline
in others. Balance and stability in the world
will require the commitment of all nations,
rich and poor, and a global development compact
to extend the wealth of possibilities to all people.”
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I am very pleased to be here in Ottawa today to launch the 2003
Human Development Report in Canada. The Report, commissioned by
the United Nations
Development Programme since 1990, offers this year an analysis
of the world’s progress in meeting the ambitious
Millennium Development Goals (MDGs) and of the long road ahead
of us to achieve them.
As you will recall, at the UN General Assembly in 2000, all 189
United Nations Member States took stock of the gross inequalities
in human development worldwide and recognized their collective responsibility
to uphold the principles of human dignity, equality and equity at
the global level. In addition to declaring their support for freedom,
democracy and human rights, the Member States set eight goals for
development and poverty eradication that they pledge should be achieved
by 2015. These Goals were reaffirmed by the G-8 last month in France.
Will it happen? Where do we stand? What needs to be done and why?
This morning, first, I would like to review with you the status
of the Human Development Index and, second, review where the world
stands with regard to the achievement of the eight MDGs.
The Human Development Index (HDI)
Since 1990, the Human Development Report has presented the Human
Development Index as its core measuring standard. The Index is a
composite measure of life expectancy, education and income per-person.
The maximum and minimum values for each variable are reduced to
a scale between 0 and 1, with each country at some point on the
scale.
The 2003 Human Development Index ranks 175 countries for 2001,
the most recent year of available data. The top and the bottom of
the Index remain unchanged from last year: Norway is on top and
Sierra Leone is on the bottom.
- Of the 175 countries for which the HDI was calculated, 55 are
in the high human development category (above 0.800), 86 in the
medium (between 0.500 and 0.800) and 34 in the low category. Almost
all of the “low human development” countries at the
bottom of the Index are in sub-Saharan Africa: 30 out of a total
of 34 [2].
- In sub-Saharan Africa, the devastation of the HIV/AIDS pandemic
is responsible for the lower indicators in the 2003 Human Development
Index. Life expectancy has fallen dramatically with HIV/AIDS incidence
rates as high as one in five in some countries. South Africa,
for instance, fell 28 ranks from 1990 primarily because more people
were dying younger from AIDS-related illnesses.
- Roughly half of the countries in Latin America and the Caribbean
recorded either a decline or stagnation in income during the 1990s
[3].
- Eastern Europe and Central Asia saw an overall decline in the
2003 Human Development Index resulting from falling per capita
income.
- Among developing countries and areas, Cyprus, Hong Kong and
Barbados lead the rankings.
- Canada is number 8 with an HDI value of 0.937 after the United
Sates, Belgium and The
Netherlands but the difference in the results for these three
countries is negligible [4]. The Report
contains some troubling figures about Canada’s performance
with regard to poverty and human capabilities. For example, it
is estimated that 12.8% of the population is living below the
income poverty line [5] and that 16.6%
of adults [6] are lacking functional
literacy skills.
Now, let me turn to the Millennium Development Goals (MDGs)
The first goal: eradicate poverty and hunger
The target is to reduce by 50%, between 1990 and 2015, the proportion
of people whose income is less than 1 dollar per day and the proportion
of people who suffer from hunger.
What is the situation in these two areas?
The share of the world’s people living in extreme poverty
fell from 29% in 1990 to 23% in 1999. However, in 1999, 2.8 billion
people lived on less than $2/day, with 1.2 billion of them barely
surviving at the margins of subsistence on less than $1/day.
The declining overall number of people living in extreme poverty
provides room for hope but the level of people living in extreme
poverty remains disturbingly high. And the failure to reduce poverty
in sub-Saharan Africa, the world’s poorest region, is a grave
concern.
In 1997-1999, 815 million people were undernourished. While the
proportion of hungry people has been declining, the world’s
booming population means that the number of malnourished people
has not been falling fast enough. During the 1990’s, it declined
by just 6 million people a year. At this rate, it would take more
than 130 years to rid the world of hunger.
The second goal: achieve universal primary education
The target is to ensure that, by 2015, children everywhere –
boys and girls alike – will be able to complete primary schooling.
What is the situation now?
World wide, primary enrolment has been improving, rising from 80%
in 1990 to roughly 85% now. But that still means that of the 680
million children of primary school age, 115 million are not in school
— 97% of them in developing countries.
The third goal: achieve gender equity and empower women
The target is to eliminate gender disparity in primary and secondary
education, preferably by 2005, and in all levels of education no
later than 2015.
What is the situation now?
The issue here is for a society to accept and ensure that women
are equal partners with men in private and public spheres of life
and decision-making. Consider the following statistics:
- 64% of the world’s estimated 864 million illiterate adults
are women.
- 60% of 113 million children not in primary schools are girls.
- Around the world, women’s earned income is still significantly
less than men’s earned income.
- The gender-related development index (GDI) adjusts the HDI for
the inequalities in the achievements of men and women. With gender
equality in human development, the GDI and the HDI would be the
same. But for all countries, the HDI is higher that the GDI, indicating
gender inequality everywhere. This year, the GDI has been estimated
for 175 countries. On that index, Canada ranks 6. Women’s
life expectancy in Canada is 81.8 years as compared to 76.5 years
for men. School’s enrolment — combined primary, secondary
and tertiary) — is slightly over for women in Canada. But
the main difference comes from the estimated earned income ($US
21,000 versus $US 33,000; a 63% ratio).
- The gender empowerment measure (GEM) tries to assess gender
inequality in economic and political opportunities. This year,
the GEM has been estimated for 70 countries. Canada ranks 9. Ratio
women/men: seats in parliament: 23.6%; legislators, senior officials
and management: 35%; professionals and technical workers: 53%;
earned income: 63%.
The fourth goal: reduce child mortality
The target is to reduce by 66%, between 1990 and 2015, the under-five
mortality rate.
What is the situation now?
Every year, 11 million children die of preventable causes. Immunizations
in developing countries have levelled off at about 75% in 1990.
In recent years, immunizations have fallen below 50% in Sub-Saharan
Africa. Sub-Saharan Africa, ravaged by HIV/AIDS, saw life expectancy
reverse in the 1990s from already tragically low levels.
The fifth goal: improve maternal health
The target is to reduce by 75%, between 990 and 2015, the maternal
mortality rate. But not a single word in the Millennium Declaration
on reproductive health!
What is the situation now?
Every year, 500,000 women die as a result of pregnancy and childbirth.
In sub-Saharan Africa, a woman has a 1 in 13 chance of dying in
pregnancy or childbirth. In OECD countries, it is 1 out of 4,085.
The sixth goal: combat HIV/AIDS, malaria and other diseases
The target - for 2015 - is to halt the progression and reverse
the spread and incidence of HIV/AIDS, malaria and other major diseases.
What is the situation now?
By the year 2000, almost 22 million people had died from AIDS, 13
million children had lost their mother or both parents to the disease
and more than 40 million people were living with the HIV virus,
90% of them in developing countries, 75% in Sub-Saharan Africa.
Every year, there are more than 300 million cases of malaria, 90%
of them in Sub-Saharan Africa. And every year, 60 million people
are infected with tuberculosis. Current medical technologies can
prevent these diseases from being fatal, but lack of access means
that tuberculosis kills 2 million people/year and malaria 1 million.
Obviously, the poorest people suffer most.
The seventh goal: ensure environmental sustainability
Several targets have been defined to reach this goal. The first
target is to integrate the principles of sustainable development
into country policies and programmes and reverse the loss of environmental
resources. The second target is to reduce by 50%, by 2015, the proportion
of people without sustainable access to safe drinking water. The
third target is to achieve by 2020 a significant improvement in
the lives of at least 100 million slum dwellers.
What is the situation now?
Global warming is a global concern — and carbon dioxide emissions
are one of its main causes. High-income countries with 14% of the
world’s population generate 44% of CO2 emissions.
More than 250 million people living off the land are directly affected
by desertification.
In 2000, 1.1 billion people lacked access to safe drinking water.
The Human Development Report 2003 identifies 59 countries where,
unless urgent action is taken, the Millennium Development Goals
will not be met. In 31 countries, income and other human development
indicators remain very low and progress towards the goals has stalled
or begun to reverse. Many of these 59 countries face endemic problems
related to geographical and other factors often overlooked in previous
development strategies. It is not coincidental that 24 of these
countries suffer from a high incidence of HIV/AIDS, 13 are embroiled
in armed conflict, and 31 have unusually high foreign debts.
The Millennium Development Goals are based on the premise that
economic growth alone will not rescue the world from the poverty
that entraps more than one billion people. The Human Development
Report 2003 argues that to reverse declines, development strategies
must focus not only on economic growth, but also on more equitable
distribution of wealth and services.
Without addressing issues like malnutrition and illiteracy that
are both causes and symptoms of poverty, the Goals will not be met.
The statistics today are shaming: More than 13 million children
have died through diarrhea disease in the past decade. Each year,
over half a million women, one for every minute of the day, die
in pregnancy and childbirth. More than 800 million people suffer
from malnutrition.
Many of the solutions to the problems of hunger, disease, and illiteracy
are known—such as bed nets to prevent malaria; midwives to
assist labouring women; fertilizers to increase agricultural productivity;
hygiene training to safeguard potable water supplies. These are
hardly high-tech strategies. Yet, combined they would save millions
of lives.
The eighth goal: develop a global partnership for development
If the international community seems to have reached a consensus
on what needs to be achieved by 2015, no consensus has yet been
reached on what needs to be done and by whom. The Human Development
Report for 2003 tries to shed light on this key issue by putting
meat on the bones of the eighth Goal of the Millennium Declaration
and calls for the need to develop a global partnership for development
The implications are clear: concrete action must be taken to improve
the situation that I have just described under each Goal, to create
an environment in which all people have a chance to realize their
potential. One way of measuring progress achieved will be whether
the gap in life expectancy at birth between a country such as Sierra
Leone (34.5 years in 2001) and Canada (79.2 years in 2001) can be
reduced over the next 12 years.
The political framework for achieving the Millennium Development
Goals was provided by the new global deal struck in 2002 in Monterrey,
Mexico, between the North and the South. The rich nations represented
at the Monterrey “Financing for Development” summit
pledged to remove trade barriers and provide more aid and meaningful
debt relief to developing countries that undertake tough political
and economic reforms.
The Human Development Report 2003 features a detailed “Millennium
Development Compact” with concrete proposals for making the
Monterrey deal a reality. The Administrator of the United Nations
Development Programme, Mr. Mark Malloch Brown said recently: “We
should all be asking what it would take to achieve the Millennium
Declaration, not what can we afford to do.”
The new Millennium Development Compact urges strategic action in
the fight against poverty and calls on developing countries to adopt
pro-poor policies that reinforce each other and are targeted to
the Goals; donor countries to back these reforms with more resources
and trade opportunities; and, for nations both rich and poor to
put the Goals at the center of national and global decision-making.
The Report argues that investment in industries and businesses
that create jobs, such as manufacturing and textiles, are more important
for human development than industries that require large amounts
of capital, such as oil exploration and production. The Report also
calls for special initiatives to support small businesses and entrepreneurs
in developing countries. Microfinance is also a very important tool
to be promoted as an integral part of the promotion of the financial
sector in developing countries. The Report also identifies the absolute
need to develop and implement, in partnership with developing countries,
strategies for decent and productive work for youth.
The Report also calls on developing country governments to prioritize
spending on the basic services that poor people need most: primary
schools, not universities; rural clinics, not technologically advanced
hospitals in big cities. “Poor countries cannot afford to
wait until they are wealthy before they invest in their people,”
said Jeffrey Sachs, Special Adviser to the UN Secretary-General
on the Millennium Development Goals, and a guest contributor to
this year’s Human Development Report. “This is the wrong
way round. They need rural health clinics, schools, roads, and safe
drinking water and sanitation, so that economic growth can take
root in the first place. Investment in meeting basic needs isn’t
just desirable in its own right for ending human suffering, but
it is also a key part of an overall strategy of economic growth.”
I am pleased to say that the United Nations Capital Development
Fund (UNCDF), which I manage, is entirely committed to address the
concerns raised by Mr. Mr. Sachs. Indeed, UNCDF invests with the
poor in the poorest countries in two areas: decentralized socio-economic
public investments and microfinance. In so doing, UNCDF is working
with the poor to help address their needs for basic socio-economic
infrastructure and financial services.
The Report challenges rich countries to set concrete targets
and deadlines and take action by:
Dismantling unfair trade subsidies and tariffs to create
a level playing field: OECD countries provide more than
US$300 billion in agricultural subsidies each year. Subsidies to
US cotton growers are more than three times the amount of US Government
aid to sub-Saharan Africa. In the European Union, the cash subsidy
to every dairy cow exceeds total per capita EU aid to sub-Saharan
Africa. The average poor person in a developing country selling
into global markets confronts barriers twice as high as the typical
worker in industrial countries, where agricultural subsidies alone
are about $1billion/day, more than six times total aid. These barriers
and subsidies cost developing countries more in lost export opportunities
than the $56 billion in aid they receive each year. The Report urges
rich countries to eliminate the discriminatory tariffs, quotas and
subsidies that inhibit agricultural trade and investment in the
developing world, and first and foremost, to the benefit of the
Least Developed Countries (LDCs).
Writing off unsustainable debt: The Human Development
Report 2003 argues that rich countries need to provide more meaningful
debt relief and calls on donor countries to be more cognizant of
the particular debt burdens faced by heavily indebted poor countries.
In all of the world’s 42 Highly Indebted Poor Countries, per
capita income is less than $1,500—and between 1990 and 2001
these economies grew on average by only half a percent per year.
Stepping-up aid flows: Last year the long decline
in official aid flows was at last halted, and they rose to $57 billion
(from $52.3 billion in 2001). At the Monterrey Conference for Financing
for Development in 2002, both rich and poor countries pledged support
for the policy reforms and new resources needed to achieve the Millennium
Development Goals, including a promise to increase annual aid flows
by $16 billion by 2006. But even if the commitments announced in
Monterrey are fulfilled, the total will still fall far short of
the $100 billion minimum needed per year to meet the goals.
Creating better access to technological progress:
Only 10 percent of research and development focuses on the health
problems of 90 percent of the world’s people. Rich countries
have undermined the right of poor countries to make life-saving
drugs available to their people at affordable prices; a right endorsed
by the World Trade Organization’s agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS). The Human Development
Report 2003 calls on rich countries to make this right a reality.
The report also identifies as a priority the need, in cooperation
with the private sector, to make available the benefits of new technologies,
especially information and communication technologies.
Much of the debate around the Goals has focused on whether poor
countries will meet the Millennium targets. The 2003 HDR argues
that rich countries should be subject to the same scrutiny, and
be made to report on their progress towards meeting Goal 8, thus
participating fully and transparently in a global partnership for
development. These progress reports would contribute to a global
poverty reduction strategy.
“It is not a matter of charity,” said the report’s
lead author, Ms. Sakiko Fukuda-Parr. “Diseases don’t
respect neat geographical boundaries, nor do hurricanes or droughts
or wars. These are the shared responsibilities of an increasingly
inter-dependent world.”
The Report warns that unless rich countries keep their pledges
to deliver financing for development, the Millennium Development
Goals—a series of time-bound, quantifiable targets ranging
from halving poverty to halting the spread of HIV/AIDS by 2015—will
not be met. The Human Development Report 2003 warns that these commitments
are in fact not being met.
“The concept behind a fair deal is for both rich and developing
countries to be held accountable to benchmarks and deadlines,”
said Ms. Eveline Herfkens, Executive Coordinator of the Millennium
Development Goals’ Campaign. “Without rich nations doing
their share, the poor countries will not be able to achieve the
Goals.”
As you know, regrettably, the world continues to be fragmented
— between the rich and the poor, between the powerful and
the powerless, and between those who welcome the global economy
and those who demand a different course. Can we go beyond simply
hoping for a more equitable and safer world for all? Each and every
one of us has a role to play to transform good intentions into reality.
I know that Canada is committed to doing a lot more in the forthcoming
years in the areas of Official Development Assistance, trade and
the other areas referred to in the Human Development Report to help
meet the Millennium Development Goals. It would be interesting to
hear from the other panellists and from the audience what is currently
being done, what are the plans and, ultimately, what can Canada
realistically contribute towards achieving the Millennium Development
Goals?
XXX
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Annex 1
Table 1 Data for the HDI: Canada, HDR 2002 and 2003
| |
Life expectancy (years) |
Adult literacy rate (%) |
Gross enrolment ratio (%) |
GDP per capita (PPPUS$) |
HDR2002:
2000 |
78.8 |
..* |
97 |
27,840 |
|
HDR2001:
2001
|
79.2 |
..* |
94** |
27,130 |
* No data available. For the purpose of calculating the HDI, a value
of 99% is used as in the case of other high-income OECD countries.
** Data refer to the 1999-2000 school year. Subsequent to the production
of HDR2002, a new estimate (95%) for the school year 2000-01 has
become available.
Footnotes
- Human Development Report 2003
- Benin, Ghana, Mauritius, Rwanda, Senegal and Uganda have all
significantly improved their rankings since 1990.
- Brazil recorded a big jump in the Human Development Index—due
mainly to its education efforts. Bolivia and Peru also improved
their positions as a result of social policy reforms.
- The change in the HDI for Canada is driven predominantly by
a change in the estimates of the combined primary, secondary and
tertiary gross enrolment ratio – from 97% to 94% (see Annex
1). The small change in the estimated GDP per capita (PPP US$)
does not have a significant impact on the HDI value – given
that income is adjusted by taking the logarithm of GDP per capita.
- % of population below 50% of the median income
- Between age 16 and 65
Download: Full Text of the 2003 Human Development
Report [pdf]
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