Final Communiqué
1-4 June 1997
Noordwijk, The Netherlands
The Current Situation of the World
1. The world is currently undergoing a period of
transition which requires creative and enlightened
leadership, if we are to meet our responsibilities to
promote justice, respect cultural diversity, and ensure
the widest possible participation in the potential
benefits that this will provide.
2. The world of tomorrow will be characterized by
increasing interaction between diverse cultures and
religions. For a peaceful development, it is vital to
accept this spiritual dimension of a changing world and to
promote harmony by learning to cherish and respect
cultural and religious diversity as an enriching human
experience.
3. In the light of the growing political and economic
importance of economies outside the Euro-Atlantic area,
the Council urges that Russia and China be admitted
immediately as full participants in the G-7 and to full
membership of the World Trade Organization (WTO). In
addition, other major countries, as their impact on the
world economy increases, should progressively be included
as participants in these institutions.
4. The control and the reduction of armaments remain a
primary concern.
Agreement on an international regime banning biological
weapons, and reinforcement of the nuclear
non-proliferation regime, as well as the adoption of a
conventional arms treaty, is vitally important. In this
respect, it is imperative that major powers curtail the
sale of advanced weapons systems to developing countries,
as such sales threaten to destabilize regional power
balances. Military expenditure as a proportion of annual
budgets should be reduced.
5. Subsequent to the admission of new members to NATO, the
Western world should avoid further tensions in its
relations with Russia.
Opportunities and Risks of Globalization
6. Globalization is a challenge that must be taken
advantage of, not an alibi for inaction. It describes the
extension of traditional patterns of economic activity to
higher levels and the international spread of technology,
production, finance, investment, and information. The
dramatic advances in information technologies have had a
considerable impact on the world-wide dispersion of
production and on the intensification of international
capital flows. (See the attached report of the Council’s
Group of Experts.)
7. The open world economy has expanded to incorporate new
participants from regions traditionally excluded from it.
However, the Council stresses that certain regions, most
noticeably sub-Saharan Africa, are becoming increasingly
marginalized. Inadequate education, widespread health
problems, excessive population growth and consequent low
welfare levels, are preventing them from attracting the
foreign investment necessary for development. Multilateral
institutions have a vital role to play in creating an
environment for such investments by fostering efficient
government, legal reform, banking reform, the development
of capital markets, and liberalization of trade.
8. The Council welcomes the new emphasis that the World
Bank is placing now on faster rates of growth as a
priority objective in the developing world. It is fully
aware, however, that growth alone is not adequate. The
Council emphasizes the need to alleviate poverty, promote
family planning and improve educational standards,
particularly for women. Towards this objective, it is
important to reallocate expenditures by reducing military
spending. It is also important to maintain Official
Development Assistance (ODA) as an essential tool for
promoting economic and social development.
9. Although five years after the Rio Summit some progress
has been achieved, most general trends still point to
further degradation of the human environment. We urge
governments to live up to their commitments at the Rio
Conference. More emphasis should be given to the role and
responsibility of the private sector industries in
adjusting production processes to the environmental
demands.
10. The current terms of trade are unfair for many
developing countries, particularly sub-Saharan states.
There is a serious danger that such states will find
themselves effectively excluded from the international
trading system. In particular, given the fact that in such
economies a high proportion of the population is employed
in agriculture, the Council recommends that the developed
states phase out the subsidies they currently provide to
their agricultural sector. These subsidies and other trade
barriers not only undermine developing economies but also
represent a serious distortion within developed
economies.
11. Competition from low wage economies must not be used
as a scapegoat for domestic problems in industrialized
countries. Protectionism is not a solution for these
problems. Only if productivity levels are raised will the
developed economies regain their competitiveness.
Therefore, labor markets must become more flexible, and
educational and vocational training capabilities must be
improved. Governments need to provide both a safety net
for those left unemployed in the adjustment period, and
re-training opportunities to enable them to re-enter the
job market. More generally, it is essential that these
measures be placed into a broader context of the formation
of a new model of industrial democracy, based on social
justice and the fostering of consensus.
12. The financial markets have been transformed by
globalization. Increasingly, national authorities are
unable to control monetary conditions in their own
economies. The scale of current international flows, the
impact of speculative movements and the rapidity with
which such movements take effect and spread across the
globe, raise the danger of a serious dislocation
occurring. Without strengthening coordination between the
major economies, massive speculative capital movements are
unavoidable, with all their negative consequences.
13. A single European currency, as envisaged by the
Maastricht Treaty, will support a more stable equilibrium
between the United States, Japan, and the European Union,
if it can be assumed that these three monetary blocs will
coordinate their policies. Whilst recognizing the
difficulties involved, the Council reiterates its
recommendation to explore the use of target zones of
exchange rates.
14. A further area of concern is the growth in the trade
of financial derivatives. Whilst such instruments perform
a useful role, allowing traders and investors to avoid
risks in financial markets, they can result in
unacceptable losses when used improperly. As a matter of
importance, non-bank financial institutions, especially
those trading heavily in derivatives markets, should be
brought under prudential supervision. Other areas which
demand immediate attention are how far non-banks should be
permitted to trade in derivatives, the requirement in law
or by official rules of larger margins and the regulation
of over-the-counter trade. Moreover, central banks have to
strengthen and coordinate their supervisory role over risk
management procedures by all banks and other financial
institutions.
Towards a Universal Declaration of Human
Responsibilities
15. In a world transformed by globalization, common
ethical standards as a basis to live together have become
an imperative, not only for individual behavior but also
for corporations and political authorities.
16. Nearly 50 years ago, in the aftermath of World War II,
and with the legacy of two defeated dictatorships, the
General Assembly of the United Nations adopted the
Universal Declaration on Human Rights to safeguard the
individual from totalitarian repression. Half a century
on, this Declaration is still far from being sufficiently
observed in many parts of the world. Its full
implementation remains a profound challenge to the
international community.
17. The challenges posed by globalization require an
effort comparable to that of 1948 --the formulation and
adoption of a Universal Declaration of Human
Responsibilities.
18. Over the past 10 years the InterAction Council has
convened High-level Expert Groups, bringing together
representatives of all the major religions and
philosophies to identify, along with political leaders,
common principles and shared ethical standards. Now the
Council is preparing to initiate a broad based process to
develop a Universal Declaration of Human Responsibilities.
After careful consideration, the Council will present a
preliminary draft as a basis for discussion and will
invite all interested parties to communicate their views
and comments. It is the intention of this Council to bring
the revised draft to the attention of governments.
19. This process, as much as its hoped for result, will
contribute to the promotion of mutual understanding, of
affirmative tolerance based on the recognition of shared
values, thereby proving that the threat of an imminent
clash of civilizations can be avoided.