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Speech: Remarks at Guildhall on Globalization
March 28, 2006
London
Thank you very much. Thank you, Gordon for inviting me here today to come
back to this magnificent place, for your wondrous leadership of the economy
and the Treasury, and for your continued vigorous efforts to find responses
to the challenges of globalization at home and around the world.
The last time I was here, almost three years ago, we had this big Third Way
conference, the future of the global Third Way movement. One of our big deals,
from the time I ran for President in ’92, was that all progressive parties
in developed countries were basically the creatures of the industrial revolution.
We were organized in response to the fact that whenever you have a big change
in the economic paradigm, a lot of good things happen and a lot of problems
are created. And the market alone in the industrial revolution, unrestrained,
unregulated, un-held accountable and unsupported, and people unsupported, led
us to abuses of labor among children, horrible working conditions, horrible
pollution, the absence of a middle class lifestyle, the absence of healthcare
and all of that, so you needed government to step into the breach, and that
was the original mission of the government and of the progressive movement.
Then as the industrial revolution began to wane and began to be replaced by
a more globalized economy, a more service-orientated economy, a more information-based
economy, the question was, number one, since we were going to a new economic
paradigm we knew vast new wealth would be created but just as always happens
when you change the economic paradigm, there are also pressures that tend to
create enormous new inequalities and dislocations, and upheavals.
So the answer to the question we had to face was, were we going to change to
meet these new conditions or are we going to try to hold on to the gains just
as they were achieved in the industrial revolution – it was the great
dilemma. So we used to have a little phrase for that in America that I think
you often used here, that the business of new progressive politics was to avoid
false choices; that you didn’t have to choose between the environment
and the economy, you didn't have to choose between the worker and the business,
you didn’t have to choose between succeeding at work and succeeding at
home. You had to avoid false choices.
So, I'm here to tell you that I'm a friend of Tony Blair and Gordon Brown.
On a more serious note, I read with some distress when I come to Europe all
these little, I'm so glad to see your press beating on you instead of my press
beating on me the way they used to. But you know, I read this business about
where some people say, Labour is getting a little long in the tooth, having
served so long in government. I can only tell you that if you lived where I
lived and you were looking across the Atlantic it would not look at that way
to you.
So let me just ask you all first to see ourselves as others view you, who live
in very different circumstances. I see a country that has kept the values, the
ideas, the politics alive that I believe in for five years when they’ve
been under relentless assault across the sea. Your economic policy of investment,
modernization and fiscal responsibility has led to job growth, low unemployment
and decreasing income inequality, when the reverse is true in my country. You
have been committed to fighting global warming, supporting the Kyoto protocol,
reducing greenhouse gas emissions in a way that creates jobs here, in stark
contrast to the policies of our country. Your leadership in the world for cooperative
efforts at reducing the debt of the poorest countries in the world, increasing
aid to Africa, internationalized efforts against AIDS, TB and malaria, and a
host of other initiatives, is the envy of many countries. And you're still involved
in these relentless ongoing efforts at modernization in health, education and
a whole host of other areas.
And the fact that you have debates within the party, I personally believe is
quite healthy. If nobody disagrees on anything it means either somebody stopped
thinking or everybody stopped doing. And after all, if we’re going to
be the change agents and we’re going to get into the future business,
the debate always will be, for the progressives, how do you resolve the ongoing
tension between experimentation and egalitarian ideas, in every context. So,
I would say to all of you, you should really lighten up about this, you're doing
real well, and you should be very proud of it.
I think since we are in the future business I want to talk a little about that.
This meeting, Chancellor, is fresh evidence of New Labour’s continued
determination to be in the future business, and in the people business, keeping
score the right way. Will the course we take leave ordinary people better off
than when we started. Will it give our children a chance to be safer, more secure,
have more opportunities, a better chance to live their dreams than their parents
had. Will our course help to divide or unite an increasingly fractious and interdependent
nation and world. That’s the way you should keep score, the all the rest
of the stuff does not amount to a hill of beans. Politics, work and life are
about the impact of our decisions on others, most of the rest is just idle chatter.
And as I said, if you lived across the Atlantic and you saw what was happening
here, you’d think you were doing pretty well, and a lot of us depend upon
you to stay in this future business.
Now, I spent a lot of time working on globalization when I was President, coming
to terms with the fundamental fact of interdependence that goes far beyond economics:
open border, easy travel, easy immigration, free flow of money as well as people,
products and services. I tried to figure out how to maximize the dynamism of
global interdependence and still broaden its impact in terms of economics and
opportunity. The one thing that I am quite sure of is that interdependence is
not a choice, it’s not a policy, it is the inevitable condition of our
time. So, divorce is not an option.
On the other hand, interdependence can be good or bad. Gordon mentioned the
need, the imperative, to reduce agricultural subsidies in the United States,
Europe and elsewhere. We’re no less interdependent with those African
cotton farmers, even if we shut them out of our markets. We’re still tied
to them, it’s just that instead of letting them make a living now, we’re
going to have to pay for the consequences of their poverty. We’re not
less interdependent.
In all the years when America was educating the largest number of Muslim students
from all across the Middle East we were interdependent in a very positive way
but we were no less interdependent on 9/11/2001 when open borders, easy travel,
easy immigration were used to turn three jet airplanes into giant chemical weapons
to kill nearly 3,000 people, including hundreds from the UK and over 200 other
Muslims; people from 70 countries.
So, whether you’re talking about economics or security or our cultural
interactions, divorce is not an option. Therefore, the mission of the moment
clearly is to build up the positive and reduce the negative forces of global
interdependence in a way that enables us to keep score in the right way. Are
people going to be better off, will our children have a better chance, will
we be more united than divided.
Now, I start with a few fundamental assumptions. Number one, interdependence
is interesting and most of us have done quite well with it, otherwise we wouldn’t
be in Guildhall today, we’d be out trying to scrape up a living somewhere.
So this world has been pretty good to us or we wouldn't be here, by definition.
But interdependence is inherently unequal and unstable as it exists in the world
today, and therefore the way to build up the positive and reduce the negative
forces is to have a vision of moving from interdependence to integrated communities;
locally, nationally, globally, more integrated communities.
Now, I have to tell the far right back home – what we used to call the
black helicopter crowd because they were convinced we had some international
conspiracy to bring in world government through black helicopters with great
weapons – that I'm not calling for the abolition of American sovereignty
here, but what is the definition of an integrated community, what is the definition
of any successful union: a successful family, a successful church, archbishop,
a successful civic club, a successful business, what do all group endeavours
contain? They all have three things, they have shared opportunities, shared
responsibilities and a shared sense of community. They all are imperfect but
they work because people believe they’ve got a fair chance, everybody
is called upon to do something responsible, and whatever differences you bring
to the unit you still are a member of it.
How do we get there, in this age of globalization? My other assumptions are,
number one, that no one has yet found anything approaching the free market that
is as an efficient allocator of goods, services, capital and opportunity. But,
the free market left alone, as we saw in the Great Depression, as we saw over
and over again in the pre-Labour, Democratic, progressive governance tradition,
will not take account of human needs, not equally distribute human opportunity,
will not empower people to make the most of what is there and eventually will
consume itself unless there is a role for government to create the conditions,
the systems and the tools people need to make the most of their own lives, and
to build up their communities, so there is a necessary role for government.
Third, there is a necessary role for civil society, for the simple reason that
– well, let’s just take the UK where you’ve had a better political
run, longer, from my point of view, than we had, partly because you’ve
got a parliamentary system, but even if the time comes when everyone you vote
for wins and they do everything you think they should do, and you believe your
private sector is performing at 100% peak efficiency, there will still be gaps
between what is and what ought to be, at home and around the world, and into
those gaps must step civil society, the so called NGO movement. And the good
news is today that private citizens have more power to do public good than ever
before, if they do it with government and the private sector in partnership.
It is no accident that in the United States, when this year Time magazine’s
people of the year were Bill and Melinda Gates, who run the biggest NGO in the
world, and Bono. They’ve never been elected to anything but they have
done massive public good. So when you think about the challenges of globalization
you need to ask yourself, what is the responsibility of the private sector,
what is the responsibility of the government, what is the responsibility of
the NGO movement, what are the potentials here of each sector.
And while we had a lot of success when I was President, we had in my eight
years 50% more jobs than the previous 12, and moved a hundred times as many
people out of poverty, and dealt with a whole range of issues, I have to tell
you I think it is more difficult today. I see a deep sense of uncertainty, people
wonder, we used to worry what would happen if countries failed, so I remember
in my first three years America had major financial aid packages to Russia,
which was opposed in the beginning by 76% of the American people, then I had
a major economic assistance package to Mexico, which was opposed to 81% of the
American people, and then when they worked everybody thought it was okay, which
shows you why you can’t be totally poll-driven. They hire us to make the
right decisions and we are judged by whether the incomes are all right.
Now we worry because of the success of other countries; how in the world can
we compete with China and India creating all these millions of jobs, and it
used to be we had to worry about outsourcing, only these low skill jobs now,
we see high skilled jobs being outsourced so that education is still a net advantage
but no longer a guarantee of a good life in a country if it really has an open
economy. I know some of you think America is too protectionist but let me remind
you, with 4% of the world’s population and 20% of the world’s GDP,
when I was President, every single year we bought between 33% and 40% of China’s
exports, so I think we have carried our load in the open economy, even though
I too believe dramatically that we have to change our agricultural subsidy structure.
So, it seems to me that there are four fundamental challenges, and because
I want to have more time for conversation I will just summarize them, but there
are four fundamental challenges keeping us from making a world of integrated
communities, of shared benefits and opportunities, shared responsibilities and
a shared sense of community.
First, there is the security challenge, our shared vulnerability to terror,
to weapons of mass destruction, to the abuse of innocents in Darfur and elsewhere,
and something people don’t often talk about is the security challenge
of the spread of infectious diseases globally. I will only say that for these
purposes that you have to recognize that this is a profound economic issue.
Gordon and I were talking this morning about how we’ll never really have
peace in the Middle East if the Palestinians can’t make a living. The
Palestinians are younger and poorer today than they were when we started the
peace process in 1993. And I have never met a single poor Palestinian anywhere
in the world except in the Palestinian territories. Every single Palestinian
I know in America is a millionaire or a college professor, and I say that with
deep respect, but when there is a conflict, when there is an absence of security,
there is always an absence of opportunity. Whatever you believe about the Iraq
thing, we all have a stake in seeing it succeeded and one of the reasons it
isn’t is because the environment is still not secure and electricity production
is still below where it was before the conflict began.
In America after 9/11 our economy was severely hampered for quite a long while,
so the only other thing, I’d just like to make one point about this cooperation.
Most of the success we’ve had against terror per se has come from thousands
of people that most of us will never even know, through counter-terrorism cooperation
and intelligence and law enforcement services, since 9/11, something over 3,000
suspected terrorists have been arrested, over 95% were not arrested either in
the United States or by American security forces, but by people all over the
world with whom we work together. That’s the way to prevent more bombings
in the UK, in America, and in the developing world, in the Middle East and elsewhere.
But make no mistake about it, this will have a profound impact on globalization
and our ability to have integrated communities.
On the religious differences and others I’ll say more in a minute. One
the killing of innocents, it’s clear to me what we have to do, I tried
to do this 12 years ago and failed at it. Part of the UN reform should be to
give the United Nations the capacity to mobilize, with the support of NATO and
others, more robust forces. Darfur is like a slow Rwanda, I've said this a thousand
times publicly, I’ll say it again: the greatest regret of my Presidency
is that we did not send some troops to Rwanda. We couldn’t have saved
all those people but we could have saved a lot of them, but they killed 10%
of the country in 90 days; this means that it’s been going on a long time,
we don’t have the excuse of being surprised here.
The Africans are willing to serve but they have, a) a modest mandate, b) insufficient
forces, and c) insufficient support. And this is because the Sudanese say we
won’t take anybody else. The Bangladeshis went to Haiti for me, they’re
Muslims and they’re good soldiers. The Indians and Pakistanis are getting
along now, why don’t we ask both of them to send soldiers to serve together?
One of the reasons we got a chance to get the Greece-Turkey dispute over Cyprus
resolved is that they’ve been NATO allies for decades now, and then let
the United States and others continue to give the logistic support. We’ve
got to do something about this but there is no institutionalized support.
On infectious diseases I just would make this remark. The world cooperated
well after a hiccup on the SARS epidemic, it could have killed tens of thousands
of people, and just killed a few because of global cooperation. The world is
cooperating now and there has been very vigorous national action against Avian
influenza. Every time a chicken gets sick in Romania we hear about it all over
the world, right. And we’re laughing but this is good, not bad. We’re
debating now whether we’re spending too much money on vaccines in America,
this is a good thing. There are people who now get malaria in airports. There
is literally a condition called Airport Malaria because of the globalization
of travel and communication and infectious diseases have the power to do a great
deal. Remember the great influenza called the Spanish Flu but it should have
been called the Kansas Flu, it started on a military base in the middle of the
United States and was taken first to Europe at the end of World War One by soldiers
and then spread across the world, killed somewhere between 25 and 50 million
people over three years before anybody figured it out. That would be at least
100-150 million people today who’d die from that if the same thing happened.
So, this is a very serious thing, believe me, once you get to 30 or 40 million
people dying in a hurry it will have a severe impact on globalization, on open
borders, on travel, on immigration, on our mutual self-confidence. All of these
security things have to be taken into account.
Second thing is, we have to realise that global warming is a challenge of a
different order of magnitude. It is an existential threat to the life we hope
to leave our children and grandchildren. Just in the last couple of months there
is a whole new spate of books and articles and studies coming out, and they
all say the same thing: we’re warming even faster than thought we were.
There has now been a drilling into the deepest ice core ever on Antarctica so
that we can measure the changes in the climate in the last 200,000 years and
we are warming it more rapidly than at any time in 200,000 years. That’s
before human beings were on the planet, people rose up on the African Savannah
about 130,000 years ago, the last ice age receded 15,000 years ago. The oldest
urban relics are in Jericho in the Middle East, there were five civilizations
in Iraq, Egypt, China, Peru and Mexico 5,000 years ago and soon after India
came along and everything else we’ve done since is basically variations
on a theme – truly.
And now we’re playing with the planet in the most arrogant way imaginable,
thinking, oh, we can’t do anything to reverse this. We had an ice age
15,000 years ago on a planet that’s two and a half billion years ago,
that we’ve only been walking around on 130,000 years. Give me a break
here. I mean, I realize that democratic politics is not organised to deal with
this, but if the whole Greenland ice cap melts in the next few decades the North
Atlantic will rise so much that we’ll literally have whole coastal areas
wiped out in North America. If we just keep going for the next 50 years the
rate of the last ten we’ll lose 50 feet of Manhattan Island. And one of
the countries I worked with in the tsunami area, the Maldives, I will no longer
have to worry about, we’ll just take a bunch of boats out there and take
them away, and watch their country just go beneath the water.
You’ll have tens of millions of water refugees in Africa, a new study
says last week, food refugees all over the world as food production moves north
in the northern hemisphere and south in the southern hemisphere. More wars,
more cost, more disruption, more disintegration, but none the less still interdependent,
and all your dreams for globalization could be wiped out like that because of
the climate. A study a few months ago says the UK as a result of this will probably
suffer much more bitter winters, perversely, because the melting of the ice
caps in the North Atlantic will put more fresh water here, dilute the salinity
of the ocean and interrupt the tidal flows that moderate the winters here. So
you could have very bitter winters here, very bitter winters especially in Scotland
– Gordon even won’t be able to go home with a fur coat – bitter
winters in Norway, awful winters in Ireland interrupting the fastest growing
economy in Europe.
All because we persist in the notion that a country can’t grow rich,
stay rich and get richer without putting more greenhouse gases, primary from
oil and coal, into the atmosphere, when we have already been saying that that
era is behind us. If we’re in the future business we know that is simply
not true. Why does Germany lead the world in wind power? Is it the windiest
country on earth? No. On this they’ve got the smartest investors. Why
does Denmark produce 20% of its electricity from wind, wind is almost as cheap
now as the cheapest coal contracts if you use the best technology and you put
it up right and you manage it right. Solar is still more expensive if you’re
talking about solar cells but the price comes down rapidly, every time you double
production the price drops 20% to 30%.
Why aren't spending more money on this? One of the things I want to compliment
the Chancellor on is this proposed partnership with the energy companies to
really do serious research. My wife produced a bill in the Senate to create
a research agency in America like the one we had in defense that developed the
internet because we don’t put our best scientific minds into the central
problem civilization faces today, which also – and I’ll say more
about this in a minute – is the central opportunity we have, just as the
Chancellor said, to create a new range of jobs that will not be outsourced in
America for a while, or in Europe or anywhere else they’re created. And
this is not just a rich country issue. In Latin America today primarily there
are one million homes that get enough electricity to turn on the lights and
cook the food from small solar packs attached to the house that can be paid
off in 18 months at a monthly rate equal to how much the family would spend
for candles otherwise. Why aren’t there a billion and how many jobs would
be created if we were making such devices? Why aren’t they being made
in the poor countries of the Middle East that have no oil, in Yemen, in the
Palestinian territories, in Jordan – why? Because everybody talks about
this but it’s not really a serious priority when you get down to the mechanics
and the specifics. We’ve got to go from rhetoric to action and we have
all used the wrongheaded reluctance of the United States to embrace Kyoto and
the importance of creating a carbon emissions market as an excuse not to get
on with the business of just seizing all the opportunities that are out there.
We’ve got to go, and in a hurry.
And if we don’t, I literally consider this, it may be the most remote
security threat we face but it’s the only existential one. No terrorist
act alone has ever defeated a single country in history and it will not happen
now. If we fail to secure the stocks of chemical, biological and nuclear agents
there could even be a small scale nuclear explosion set off by a terrorist,
it could be terrible, but it will not destroy civilization or defeat the British
society or the American society. But if you take away the very foundations on
which we structure our living together then everything that’s going to
be said here today will become completely irrelevant. This is both the greatest
threat and the greatest opportunity of our lifetime and we don’t act like
it is either.
Third thing is something that you all know about, that’s, we can’t
expect to have a globalized world and integrated communities when half the people,
more, are left out of it, and there is no point in belabouring this but I just
want to state some of the facts again. Don’t forget, half the people in
the world live on less than two dollars a day, a billion people live on less
than a dollar a day, a billion people go to bed hungry every night, a billion
people have no access to clean water, 2.6 billion have no access to sanitation,
ten million children die every year of completely preventable childhood diseases
that no child in the UK or America dies from, and one in four of all the deaths
on earth this year, from every kind of human depravity and heart attack, strokes
and you name it, is from AIDS, TB, malaria and infections related to dirty water,
principally cholera and infections related to diarrhea. Three million people
will die from those, 80% of them will be five years old or younger. And nobody
is dying in your country or mine from that.
So, we go around and give these speeches, you wonder why Hugo Chavez is popular
in Venezuela with $65 oil and he subsidizes oil prices to poor countries, pays
for Cuban doctors to go take care of poor people, and we sit here and make these
pontificating speeches about the glories of the global economy. Why did a cocoa
farmer whose sister rode public transportation from her rural village to the
capital of Bolivia to take up her duties as First Lady, why did they get elected?
Because in the poorest country in the Andes the majority of the people have
felt absolutely no benefit from the globalization of their natural resources
and their development. So we can give all the speeches you want but in America
and other wealthy countries we have protectionist impulses because the benefits
are widely spread and the burdens are keenly felt, even if on a minority. That’s
not the problem in these poor countries, the problem is half the people don’t
get any benefits, felt or unfelt.
So we have to do what we can to implement the millennium development goals
to put all the kids of the world in school, something I know the Chancellor
is committed to, to tell with all these health challenges. I won’t belabour
this a great deal to you because there are people in this audience who know
more about it than I do but I will just say this: if you look at the total price
tag for all of us to do what we’re supposed to do, for the next decade
if we paid our part, we paid 25%, whatever the increase is would be far less
than we’re spending every year in Iraq alone, and we get more benefits
from it.
Let me just give you one example. Before the tsunami in Southeast Asia, there
was a survey done in Indonesia, the world’s biggest Muslim country, and
it showed that our approval rating, America’s, was down to 28% because
they disagreed with what we’d done in Iraq. Osama Bin Laden’s approval
rating was 58%. On the day that former President Bush and I went in to report
to the President on our mission there when we went out raising out money in
America for tsunami relief, I was given a poll that was done the day before
in Indonesia. America’s approval had risen from 28% to 58%, Bin Laden’s
approval had dropped from 58% to 30%. Bin Laden did nothing to them but he wasn’t
helpful after the tsunami. Our military, our civilian agencies, our NGO community,
religious and non-religious, they all showed up just like yours did. Our citizens
gave money, yours gave even more per capita. And all of a sudden there was no
politics, there was a people connection, they felt that they were part of an
integrated community with us. Never mind the religious differences and all the
other differences, all of a sudden we were just people. All of a sudden, in
a blinding flash of insight they saw that it was a hell of a lot harder to build
a barn than to tear one down, but a lot more important. And so without belabouring
the details I will just tell you that to me is important.
The second thing I would say is that this is the area where the NGO community
can make the most difference. You heard Gordon say that we had done all this
work on AIDS pricing. The AIDS drug market even for generics was totally disorganized
when our foundation went to work there, so we guaranteed higher volumes, prompt
payment and cut the generic price from $500 to $140 dollars. Now the overall
generic price is $190 because we’re driving the market down, with children’s
drugs from $600 to $200, and eventually the overall price will come down. We’re
trying to get children’s drugs to more people.
Last year – this is appalling, I’ll just give you one example,
this is totally appalling – 500,000 kids under 12 died of AIDS last year,
25,000 in the whole undeveloped world got any medicine, and the biochemistry
is different, you can’t just divide up the adult medicine. 15,000 of those
kids were in Thailand and Brazil. The whole rest of the world – all of
Africa, China, India, the former Soviet Union, the Caribbean, everywhere –10,000
got medicine. So thanks to some British philanthropist who gave my foundation
the money, we doubled the number of those kids to 20,000 last year, we’re
going to go to 50,000 this year. Most governments, because they have limited
money, spend most of their medicine on adults, but we’re just letting
these half a million kids die. What are we saying to all these people that we
want to be part of our globalized world? And so I ask you to think about that.
The other thing I ask you to think about is a more conservative and controversial
proposition, maybe. 90% of the people who are HIV positive do not know it. You
want to know why we’re still losing ground? 90% of the people who have
the infection don’t know it, that’s why several million more people
get infected every year. That’s why abstinence is an important part of
the argument because you're going around there playing with a loaded deck all
the time, it’s important but it’s not sufficient. We cut the cost
of instant testing with which we can find our whether you’re HIV positive
or not in 15 minutes from about two and a half, three dollars a test down to
50 to 65 cents. We need to test 200 million people and we’re spending
billions every year in the global fund, you just test 200 million for now, $100
million.
When you see all these numbers about how many people are infected, they're
extrapolated from the people who have to have medicine to stay alive or who
are dying and recorded as dying from AIDS, because we know that in any given
country 10% to 15% of all those who are positive will need the medicine to stay
alive. We don’t know and worse, they don’t know.
In the 1980s all the people who were AIDS activists, and I’ll never forget
the first person who I knew well who died of AIDS in the early ‘80s, nobody
was for mandatory testing who really worked in this area because it was a stigma
and because it was a death sentence. Now we can get rid of the stigma and it
can give you a normal life if you can find out and then you can stop from giving
it to somebody else.
This year Lesotho, with only 2.2 million people, the third highest infection
rate in the world, 27%, will become the first country in the world to mandate
the testing of all of its citizens 12 years old and older, with strict requirements
that there be no discrimination in jobs and in any other way against people.
now, if you think we are ever going to get ahead of this AIDS deal without finding
out who is infected I think you're wrong, and the only way to find out who is
infected is to get rid of the stigma and give the test.
I was very encouraged, Pakistan is now one of our partners, the first non-African
Muslim country to do so. In Zanzibar, which is totally Muslim, the women’s
support group, walks down the streets of the capital Stonetown in a Muslim community
with t-shirts saying, I'm HIV positive. We’ve got to get over, we’ve
been fooling with this too long. We can test people for 50 cents, we need to
do it in all the high risk groups. The employers need to support us, the NGO
community needs to support us, we need to fight against discrimination, yes,
but if you want to stop this you’ve got to know who is infected, and they
have to know, they have a right to know.
The final thing I’d like to say is the thing that Gordon speaks most
about, obviously, is that we have to keep improving conditions at home. If you
want to have open labor markets, open capital markets, free flow of people,
goods and services, you have to find a source of new jobs every five to ten
years in a rich country. We haven’t done it in America yet, that’s
why wages are stagnant or declining. The best candidates are, I believe, in
order: energy conservation and clean energy, biotechnology and the practical
ramifications of the sequencing of the human genome which were completed in
our joint project when I was President, and education. But we have to keep creating
new jobs.
Secondly, and at least in our country, we have to fight inequality. I said
every new economic paradigm increase inequality and only government policy can
offset it.
Thirdly, we have to find security and flexibility. The Danish program is now
called Flex Security, but if you look at the arrangements adopted by Denmark,
by the Netherlands, by several other countries, its clear that you can have
more flexible labor markets than let’s say our friends in France and Germany
do, and still have a high level of social security. But we have to be not ashamed
to learn from one another.
Fourth, we have to do more to develop small business which are less vulnerable
to being put out of business and have more potential to export than we have
yet tapped.
Fifth, we have to have a trade plus strategy. Protectionism is a dead bang
loser but we have to do more to lift labor and environmental standards and we
have to follow more models like the Global Fairness Initiative, something I
was involved in when I was President where we got the major foreign employers
in Cambodia to agree to dramatic increases in labor rights and to unionization
of the workforce in return for a guarantee that we’d continue to participate
in their markets, and it led to a substantial increase in living standards in
Cambodia, they still had the benefit of their labour differential but there
was broad support in our country, in the labor movement as well as the employer
community and among consumers for what was done.
Finally, we need to invest more clearly in all these educational areas, in
the science and the math and all that, but we have to realize it’s now
just a better chance, not a guarantee.
The last point I want to make is this: I saw this in the shocking aftermath
of articles after you suffered your bombing here. I saw this in the phenomenal
missed opportunity of the Danish cartoon controversy. It is tragic that the
overreaction, the violent, nihilistic overreaction to what I disagree with –
I didn’t like the Danish cartoons, not because they made fun of Muslims
and terrorists, that’s fair game and free speech, but because depicting
the physical image of the prophet is blasphemy in their faith and I don’t
believe in blaspheming anybody’s faith, but the point is, I doubt that
the cartoonist or the publisher knew that. We missed this phenomenal opportunity
to launch a global conversation about our religious differences. How many Muslims
do you think know that most Jews won't write the word God for the same reason
and they write G-d. We had this chance to use this cartoon controversy to reach
across the divides to learn from one another and we blew it, by and large. But
we can’t keep blowing it. I read everything I could get out of the British
press after the bombing and it’s obvious that all of us, as we become
more diverse, these societies, we have people among us who are invisible to
us, we don’t have a clue what’s in their real heads, what’s
in their real hearts and whether they feel like they’re part of our communities.
In one of the African countries where I work, the typical greeting of people
who meet each other on walking past is you say hello, how are you, and the answer
is not, I'm fine, the answer translated in English is, I see you. Think about
that. How many people will you pass today that you do not see. You notice that
people that maintain this Guildhall, make sure the sound system works and the
lights are on, have to clean up for us when we leave? Just think about it. It’s
so easy for us to ignore these poor people half a world away because we don’t
see them.
So that’s the last thing I leave you with. I think we should have a lot
of confidence here, but we also need a lot of humility. One of the reasons why
I like the role of the NGOs in the fight against global poverty is that nobody
has got all the answers, if they did we’d have solved this already. And
whenever I look at this modern world I feel a little bit of humility. I saved
over the years all my favorite birthday cards and when I was 50 years old I
got the following birthday card: there is a picture of a circus and a dog on
a unicycle about to pedal the unicycle over a tightrope without a safety net
under it, with two balls in his hand. And it says, as the dog looked out on
the crowd, they were cheering but he was afraid. After all, he was an old dog
and this was a new trick.
So I'm an old dog and this is a new trick we’re facing, but it is really
not that different from what faces people of goodwill who want to come together
instead of be torn apart, who want everybody to have the chance to live their
dreams, who want to leave the world better for their kids, every time there
is a paradigm change in the world, except this time it involves everybody and
this time there is this existential problem of climate change. If can face these
I think it is unlikely the 21st century will be as bloody as the 20th. Whenever
you get really pessimistic you just remember how many people got murdered by
supposedly civilized people in the 20th century. How many died in the Soviet
purges, in the Holocaust, in the Chinese purges, in the two world wars, in the
smaller wars in Korea, Vietnam and elsewhere, of starvation. Are you really
sure that this world is in such bad shape today? Do you really think that the
21st century is going to be worse than the 20th? I doubt it, but it could be
if we don’t face these things. Denial is not an option, divorce is not
an option. Empowerment, community, responsibility, the market, the government,
the NGOs. We know what to do, it’s just a question of whether we will.
Thank you very much.
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