Human Development Report 1999
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HUMAN DEVELOPMENT REPORT 1999 Published for the United Nations Development Programme (UNDP) New York Oxford Oxford University Press 1999 Oxford University Press Oxford New York Athens Auckland Bangkok Bombay Calcutta Cape Town Dar es Salaam Delhi Florence Hong Kong Istanbul Karachi Kuala Lumpur Madras Madrid Melbourne Mexico City Nairobi Paris Singapore Taipei Tokyo Toronto and associated companies in Berlin Ibadan Copyright ©1999 by the United Nations Development Programme 1 UN Plaza, New York, New York, 10017, USA Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York, 10016 Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Oxford University Press. ISBN 0-19-521561-3 (cloth) ISBN 0-19-521562-1 (paper) 987654321 Printed in the United States of America on acid-free, recycled paper, using soy-based ink. Cover and design: Gerald Quinn, Quinn Information Design, Cabin John, Maryland Editing, desktop composition and production management: Communications Development Incorporated, Washington, DC, New York, San Francisco and London D EDICATED TO THE MEMORY OF M AHBUB UL H AQ (1934–98) CREATOR OF THE H UMAN D EVELOPMENT R EPORT Foreword This is the first Human Development Report campaign for millennium debt relief. These that bears my signature as Administrator. For a coalitions use the convening power and the new Administrator, the Human Development consensus-building, standard-setting and imple- Report is a crown jewel of UNDP. Its robust menting roles of the United Nations, the Bretton editorial independence and its unapologetic Woods institutions and international organiza- scholarship have led its authors to say the tions, but their key strength is that they are big- unthinkable, and they then have the pleasure of ger than any of us and give new expression to the watching conventional opinion catch up. I UN Charter’s “We, the peoples.” We must not believe that Mahbub ul Haq, to whom this suffocate this new diplomacy with new institu- tenth Report is dedicated, would be proud that tions, but first try to adapt and strengthen those the tradition is being so vigorously maintained. we have—not least by reaching out to these new This year’s Report comes down clearly in global coalitions of stakeholders. favour of the power of globalization to bring Second, markets. In listing the negative economic and social benefits to societies: the impacts of markets on people, it is important free flow of money and trade is matched by the not to appear to be rejecting markets as the cen- liberating power of the flow of ideas and infor- tral organizing principle of global economic life. mation driven by new technologies. Markets need institutions and rules—and too However, as it has so effectively in the past, frequently in the global setting they are not yet the Report champions the agenda of the adequately subjected to the control of either. world’s weak, those marginalized by globaliza- But the unleashing of competition within coun- tion, and calls for a much bolder agenda of tries and between countries has ushered in for global and national reforms to achieve global- many an era of prosperity and liberty. ization with a human face. It cautions that Where I fully agree with the authors is that globalization is too important to be left as this empowerment has been uneven—leaving unmanaged as it is at present, because it has the countries, regions, ethnic and religious groups, capacity to do extraordinary harm as well as classes and economic sectors the victims of good. I fully endorse this view. increased inequality. Sixty countries have been Let me comment on only two aspects of the getting steadily poorer since 1980. The losers Report’s wide-ranging recommendations for from globalization are both a huge human and change in how global society is organized. political waste and the source of disappointment First, governance. My own view is that we and often tragedy for themselves and the fami- are seeing the emergence of a new, much less for- lies that depend on them. Markets have brought mal structure of global governance, where gov- dislocation and heartache as well as remarkable ernments and partners in civil society, the private advances. As the authors argue, these failures, sector and others are forming functional coali- unaddressed, will compound and encroach on tions across geographic borders and traditional the security of today’s market winners. political lines to move public policy in ways that Public health problems, immigration and meet the aspirations of a global citizenry. Some refugees, environmental degradation and issue campaigns have led to shifts in global pol- broader social and political breakdown are the icy, such as the antilandmine campaign and the new security challenges that breed in a context v of unattended global inequality. For all our and regulate the strong. We must do so, how- sakes we need to work together to build the ever, in ways that are innovative and reflective frameworks of a new global society and econ- of the new forces in our societies—and that omy that respect differences, protect the weak keep markets free but fair. Mark Malloch Brown The analysis and policy recommendations of the Report do not necessarily reflect the views of the United Nations Development Programme, its Executive Board or its Member States. The Report is the fruit of a collaborative effort by a team of eminent consultants and advisers and the Human Development Report team. Richard Jolly, Special Adviser to the Administrator, together with Sakiko Fukuda-Parr, Director of the Human Development Report Office, led the effort. Team for the preparation of Human Development Report 1999 Principal Coordinator Richard Jolly UNDP team Panel of consultants Director: Sakiko Fukuda-Parr Adebayo Adedeji, Philip Alston, Galal Amin, Lour- Deputy Director: Selim Jahan des Arizpe, Isabella Bakker, Yusuf Bangura, David Members: Håkan Björkman, Sarah Burd-Sharps, Bigman, Bob Deacon, Meghnad Desai, Nancy Fol- Haishan Fu, Laura Mourino-Casas, Andreas Pfeil, bre, Stephany Griffith-Jones, Gerry Helleiner, K.S. Kate Raworth and Pablo Rodas, in collaboration Jomo, Azizur Rahman Khan, Martin Khor Kok with Özer Babakol, Marixie Mercado, Irina Peng, Jong-Wha Lee, Michael Lipton, Nguyuru Nemirovsky, Guy Ranaivomanana, Nadia Rasheed Lipumba, Raisul Awal Mahmood, Ranjini Mazum- and Tamahi Yamauchi dar, Süle Özler, Theodore Panayotou, Alejandro Ramirez, Mohan Rao, Changyong Rhee, Ewa Editor: Bruce Ross-Larson Ruminska-Zimny, Arjun Sengupta, Victor Tokman, Designer: Gerald Quinn Albert Tuijnman and John Whalley Human development index revision: Sudhir Anand and Amartya Sen vi Acknowledgements The preparation of the Report would not have cal Division, World Bank, World Health Orga- been possible without the support and valu- nization, World Resources Institute and able contributions of a large number of indi- World Times. viduals and organizations. The Report benefited greatly from intellec- Many organizations generously shared tual advice and guidance provided by the their experience, research materials and data: external Advisory Panel of eminent experts, the Food and Agriculture Organization, Inter- which included Lourdes Beneria, Nancy Bird- national Data Corporation, International Fund sall, Kwesi Botchwey, Manuel Castells, Ha- for Agricultural Development, International Joon Chang, Robert Douglas, Muni Figueres, Labour Organisation, International Monetary Carlos Fortin, Ellen Johnson-Sirleaf, Louka T. Fund, International Organization for Migra- Katseli, John Langmore, Nora Lustig, Mau- tion, International Telecommunication Union, reen O’Neil, Yung Chul Park, Juan F. Rada, Inter-Parliamentary Union, Joint United Gert Rosenthal and Paul Streeten. Nations Programme on HIV/AIDS, Office of The team expresses its special thanks to the United Nations High Commissioner for Gordon Conway and Lincoln Chen of the Refugees, Organisation for Economic Co- Rockefeller Foundation for their support for operation and Development, Rural Advance- the Bellagio Conference and to those who facil- ment Foundation International, Stockholm itated and chaired consultations in Geneva, University, United Nations Centre for Social London, Paris, Seoul and Tokyo: Carlos Fortin, Development and Humanitarian Affairs, Ryokichi Hirono, Jacques Loup and Clare United Nations Children’s Fund, United Short. The Report benefited greatly from these Nations Conference on Trade and Develop- and other discussions with Raja Zaharaton Raja ment, United Nations Department of Eco- Zainal Abdin, Montek Singh Ahluwalia, Sultan nomic and Social Affairs, United Nations Ahmad, Halis Akder, Yilmaz Akyuz, Qazi Division for the Advancement of Women, Shamsul Alam, Azita Amjadi, Aya Aoki, Arjun United Nations Economic and Social Commis- Appadurai, Lourdes Arizpe, Maria Baquero, sion for Asia and the Pacific, United Nations Hazel Bennett, Jean-Claude Berthelemy, Yves Economic and Social Commission for Western Berthelot, Ram Binod Bhattari, Yonas Biru, Asia, United Nations Economic Commission David E. Bloom, Tom Boden, Carlos Hernando for Africa, United Nations Economic Commis- Gomez Buendia, Bernadette Burke, Shashua sion for Europe, United Nations Economic Chen, Kim Woo Choong, S. K. Chu, Patrick Commission for Latin America and the Cornu, Elizabeth Crayford,