Identifier
Created
Classification
Origin
05BRASILIA542
2005-03-01 19:24:00
UNCLASSIFIED
Embassy Brasilia
Cable title:  

BRAZILIAN RESPONSE TO ARGENTINE PRELIMINARY PAPER ON

Tags:  PREL ECON ELAB ETRD KSUM AR BR 
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UNCLAS SECTION 01 OF 02 BRASILIA 000542 

SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON ELAB ETRD KSUM AR BR
SUBJECT: BRAZILIAN RESPONSE TO ARGENTINE PRELIMINARY PAPER ON
2005 SUMMIT OF THE AMERICAS

REF: 04 STATE 272256

UNCLAS SECTION 01 OF 02 BRASILIA 000542

SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON ELAB ETRD KSUM AR BR
SUBJECT: BRAZILIAN RESPONSE TO ARGENTINE PRELIMINARY PAPER ON
2005 SUMMIT OF THE AMERICAS

REF: 04 STATE 272256


1. Emboff delivered reftel non-paper to Brazilian Deputy
Summit of the Americas Coordinator Afonso Sena Cardoso in a
February 24 meeting. Cardoso welcomed the U.S. comments on
the Argentine paper and reciprocated in kind, handing us a non-
paper with GoB observations on the Argentine paper
(translation in paragraph 2 below). Cardoso did not comment
in detail on the U.S. paper, but said he had found the U.S.
general comments much more focused on the final declaration
than on the Argentine paper itself. That said, he suggested
Itamaraty had liked the U.S. idea of an annex with more
specific comments and might draft a similar document. Cardoso
emphasized the GoB was quite pleased with the Argentine choice
of topic, which he believed spark substantive discussion.


2. Begin text of unofficial Embassy translation of GoB non-
paper:

"Brazilian Comments on the document 'Creating Jobs to Fight
Poverty and Strengthen Democratic Governance' (Doc. XXXVI
CRIC/SIRG/3/04 of 16/9/2004)

Once again Brazil congratulates Argentina for its choice of
the topic of generating jobs as an instrument to reduce
poverty and strengthen democratic governance for the Fourth
Summit of the Americas, to be held in said country next
November.

Because of its crosscutting nature, the creation of decent
jobs contributes directly to social integration and
achievement of the objectives defined in the scope of the
Summit of the Americas for the promotion of democracy and
social integration, while at the same time providing new
momentum to the implementation of mandates from three prior
summits, the Monterrey Declaration on Financing of Development
and achievement of the Millennium Goals to which we are all
committed.

Upon examination of the subject, two aspects [of the issue]
should be equally emphasized: promotion, on the domestic
front, of conditions that guarantee effective access to decent
jobs, and the necessity of reinforcing international
cooperation to overcome obstacles to creation of these
conditions. This is about, as agreed in the Monterrey
Consensus, complementing domestic efforts with international

solidarity.

Despite efforts by countries in the region to reduce poverty
through sustained economic growth and sustainable development
with a view to an inclusive and more equitable global economic
system, more than 50 million people in Latin America and the
Caribbean live on less than US$1.00 a day. Human
vulnerability indicators are still among the highest in the
world. They are exposed to greater vulnerability by
international shocks, barriers to market access for exports
and insufficiency, unpredictability or inadequacy of external
financing flows.

Promotion of economic growth with social inclusion is
essential for accomplishment of the Millennium Goals and
development for all. Growth demands capacity to invest in
infrastructure and social programs on which formation of human
capital and full exercise of citizenship depend. Trade,
official development assistance, transfers, financial flows
and direct investment, however, need to be tailored to each
case, and adjust themselves to the scale of necessities for
growth with equity.

It's therefore very timely to elaborate on the Social
Dimension of Globalization report, coordinated by the
presidents of Finland, Tarja Halonen, and of Tanzania,
Benjamin Mkapa, under the auspices of the ILO. The concept of
a "decent job" combines the due priority given to job creation
while safeguarding fundamental workers' rights with the
reinforcement of social protections, renewal of societal
dialogue and perspectives on gender. Social inclusion ideally
is achieved through a decent job, not through mere handouts.
It cannot, it should not, under these terms, serve as a
pretext for protectionist initiatives harmful to the interests
of the workers themselves.

It's worth remembering that in Latin America and the
Caribbean, the decent jobs deficit was estimated, in 2002, at
93 million jobs. The contingent of people directly affected
represents 51% of the economically active population.

The concept of a "decent job" or "quality job" highlights - as
pointed out by President Lula in a meeting of the cited
Commission in New York last September - the necessary
condition of the eradication of hunger and poverty, the first
of the Millennium Goals. The right and access to work that
dignifies the human being is a starting point for "another
globalization, one that is socially just and politically
sustainable." The correction of imbalances aggravated by
globalization requires domestic measures and international
cooperation centered around overcoming the world governance
deficit. The debate on the subject cannot ignore,
consequently, questions like market access, special and
differentiated treatment of asymmetries, elimination of
subsidies and measures with equivalent distorting effects on
trade, and the so-called Innovative Financial Mechanisms.

On the other hand, the primary importance of professional
training must be recognized, with emphasis given to education,
and professional education in particular, as part of the
process conducive to social integration and strengthening of
citizenship. These professional training objectives should be
integrated with broader policies to promote job creation and
increased incomes, in conjunction with policies for education,
development, innovation and technological training.
Therefore, it would be difficult to create jobs, deal with
poverty and strengthen democratic governance without improving
teaching of sciences, making extensive use of science,
applying appropriate technology and introducing innovation
into all levels of society.

Given the nature of the central theme of Summit IV, the
preparatory process for the XIV Interamerican Conference of
Labor Ministers in Mexico, as well as the preparatory meetings
in April (Work Groups on Social Dimensions of Globalization
and Strengthening Labor Administration) and July, will take on
particular importance.

These issues have repercussions on the domestic front as do
concerns expressed by participants in the Summit of the
Americas regarding the need to equally debate problems like
informal work and its consequences on access by the worker to
social services and exercise of citizenship, and, at the same
time, budget execution and cost of these social rights.

The preparatory session and the VI Ministerial meeting on
Transportation Initiatives in the Western Hemisphere (ITHO),
will also certainly bring new contributions to be examined
with questions related to infrastructure, of interest to the
Summit.

The central theme of the IV Summit of the Americas echoes the
concern highlighted by the UNDP study about democracy in Latin
America and the direct effects of inequality, poverty and
social exclusion on the degree of confidence in the political
system. This study was, in fact, redone and expanded in a
seminar sponsored by UNDP and the Brazilian government last
December in Brasilia.

The debate of other unquestionably important questions like
tackling corruption, should be done without preset
limitations, in order to encompass public and private sectors,
as set forth in the final document of the 2004 Extraordinary
Summit in Mexico. This should be included in the discussion
of subjects like effective exercise of democracy with full
participation of the citizenry and transparency of government
action. The same consideration should be given to the entry
of youth in the workplace, the solidarity economy ("economia
solidaria"),benefits of micro-credit and the role of small
and medium-sized enterprise in job creation.

This study should envision, finally, the opportunity to
reaffirm on the international agenda, questions like the need
for improvement of the mechanisms of the state to increase the
effectiveness of public management, which is an essential
instrument for the realization of democratic will, and
especially, for labor administration. We should remember that
regulations, if not infrastructure development, worker
capability and affirmation of the citizen, along with
protection of human rights, strongly condition the formation
and maintenance of an environment better adapted to the
realization of productive investments, and depend largely on
the Public Sector's capacity to respond.

End text of translation.

DANILOVICH