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Updated, 03 06 2000
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Special Section

Modern Governance in the 21st Century

Conclusions of the Berlin Summit june 3 2000 between European leaders with German Chansellor G. Schröder Presiding and the American President Bill Clinton.

We have come together in Berlin in order to exchange views and learn from each other about how to tackle the new challenges and opportunities that emerge in the 21st century. In November 1999 six of us met in Florence. We promised there to expand our discussions. Today, 14 Heads of State and Government have found common ground that we believe defines a progressive political project fit for the new century.

We are bound together first and foremost by our values. We are committed to solidarity and social fairness. We believe in the equal worth of all and in mutual responsibility. These values assume new relevance in a world that is changing at rapid speed. We are liberated from old emnities; but we are humbled by the responsibility to make up for lost years. The only way to do this is to forge a new progressive path.

We are leaders who are aware of the opportunities of globalisation, without denying the dangers. We fully recognize globalisation as an economic, social, and cultural reality, but it should not just be allowed to happen: it is a reality which we can collectively control; the key task of progressive governance in the new century is to help people make the most of change, by providing the tools for them to fulfill their talents in the new world that is being created.

We believe market economies must be combined with social responsibility in order to create longterm growth, stability and full employment, promote social justice, and protect the environment. We believe sound macroeconomic and fiscal policies that encourage strong and steady expansion can help spur full employment policies where continued growth encourages employers to recruit and train those previously denied good job opportunities. But the digital revolution, the growing integration of the global economy, as well as demographic and social changes mean that we can only fulfill our values if we work in new ways. We know that the benefits of globalisation are not being realised for all our people, especially in the developing world, where income distribution has become more unequal. Globalization must lead to higher living standards for all and not a destructive race to the bottom at the expense of environmental and worker protections.

All these challenges require progressive action. We commit ourselves to the core values of opportunity for all, responsibility from all, and community of all. We practice new methods of progressive governance. In this, we can only be helped by wider dialogue, and invite other leaders to join us in a commitment to meet the challenges and opportunities we describe below.

People want to live in a community, not merely work in a market; therefore they expect their governments to effectively fight unemployment - in cooperation with management and labour unions; they want education and lifelong learning, because they know that this is the key to more efficiency and more social cohesion at the same time; they want government to promote opportunity and security; they want to protect the environment and improve local quality of life; they seek co-operation across national borders in order to recognise the links of the international community in pursuit of these goals.

We are determined to take our countries forward and to establish safe and sound conditions that help to promote civil rights, employment and prosperity, equal opportunity for women and men. Our goal is to liberate the talent of all our people, but to do that we must share responsibility between public authorities and private individuals, between governments and international organisations, between non-govern­mental organisations and the public sector. This question is at the heart of progressive governance in the 21st century.

Advancing Prosperity

Our discussion at the Berlin-Conference has focussed in three areas. First, we have discussed the role of politics and government at national level in the context of global economic competition, global markets and global financial flows. For us, there are five key responsibilities for national government in advancing prosperity:

  • It must maintain stability in macroeconomic policy, supporting sound public finances and a firm stance against inflation; it should also promote financial market stability, transparency and fair competition; only on this basis can companies and families invest with confidence; only on this basis we can keep our economies on a steady and sustainable growth path and envisage full employment.

  • The new economy sweeping the globe is leading to unparalleled affluence. We believe that economic change and innovative technology can open up new ways of working and new markets can be empowering and democratic. Economic progress can help to lift people above social and economic barriers, but this demands that individuals are equipped with the capabilities of meeting the new challenges.

  • Education is critical to equity, development and citizenship and is the key to social justice and economic dynamism. Our aims include promoting lifelong learning and upgrading low-skilled workers. By expanding higher education we are also creating a vibrant research base for new technologies.

  • Social and welfare systems need to be both enhanced and adapted. In developing countries better social safety nets can prevent the transmission of poverty and inequality of both women and men. We must also ensure that the provision for the ageing, the sick and the disabled is financially secure for the future to prepare for new demographic challenges. The foundation of social policy is an effective employment policy, directed towards participation and especially preventing structural unemployment. In this field in particular we will share and learn from best practices.

  • We are determined to fully exploit the opportunities that the new information and communication technologies create for prosperity, employment and participation. The role of government includes fostering a climate for entrepreneurship to flourish, to help reduce costs for access to new technology, and to promote research and scientific advance. We are also committed to bridging the digital divide. All citizens need to possess the skills to participate in the technology that is rapidly changing the ways we live. We are aware that new technologies bring about new forms of labour organisation which can affect workers' rights.

    Strengthening Civil Society

    Second, we discussed how to strengthen civil society. Thriving communities can become even more vital with changing social structures. Families need our support; citizens require secure neighbourhoods; children need to grow up without crime, drugs and violence; and immigrants and indigenous people must be fully integrated into economic, social and political life. We want to put on record our abhorrence of xenophobia and ethnic and religious animosities in all its forms, and our determination to fight against it _ on a national as well as on an international scale.

    A strong civic society based not on prejudice but agreed rules and a reformed state create a framework for a dynamic market. Those in authority must be held accountable. Reform governments must make globalization work for all people. We consider the following issues to be keys:

  • We must modernise and update government to ensure that it's focus is on addressing effectively the problems our citizens face and on encouraging their development. Where partnership with the private sector delivers the public interest, we support it; where decentralisation gives citizens more control of their affairs, we support it; where technology can rationalise provision and make it more convenient, we support it.

  • Public services are critical to equal opportunity and a civilised society, because we all depend on the quality of education, health, care and childcare, criminal justice and social services. Our conviction is that these services must be driven by the needs of the citizen - for improved quality, greater convenience, more personalised service provision. That often means difficult reform, which is an essential counterpart to increased investment to meet growing needs.

  • For us, communities only deserve that name when all citizens, whatever their race, religion, origin or sex, live in an atmosphere of tolerance and mutual respect. At a time of great population movements, we must have clear policies for immigration and asylum. We are commited to fostering social inclusion and respect for ethnic, cultural and religious diversity, because they make our societies strong, our economies more flexible and promote exchange of ideas and knowledge.

  • The digital revolution must be embraced by government in order to make it more accessible, accountable and efficient. We recognize that digital technology is a powerful tool that offers citizens a new way to connect and communicate with their government.

  • We need a new balance of rights and responsibilities as the basis for stronger communities. The affluent should lend society their abilities and talents, not exclude themselves from society, and those who are underprivileged should be integrated, being offered new chances. We support an enabling role for the state, providing all citizens with the tools to develop themselves. Women must have equal rights, equal access to education and employment and equal pay for equal work. Companies have responsibilities in community life too. This relationship has to be emphasised.

  • Indigenous minorities in several countries are among the most vulnerable worldwide. We recognise that protecting and promoting their rights warrants special consideration and is a legitimate concern of international community.

    Further Improving International Cooperation

    Third, we aspire to be an international community of shared values. We see the need for a new international social compact - the practical fulfilment at the international level of our commitment to strong communities at home. Such a compact recognizes interdependence, mutual effort and mutual responsibility for common goals. The developed world has duties to the developing world, and the commitment is reciprocated - aid debt relief must be used for popular need not conflict, development must respect the environment, the benefits of trade must be shared. In order to advance social justice and economic dynamism in developing countries, we must support the rule of law, market institutions, free trade and security within and between nations as prerequisites to economic development. As the global economy and a shared concern for international affairs draws us closer together, we need to advance the idea of community from a national, regional and global perspective.

    Just as we seek to advance social justice and economic dynamism for the whole population of our own countries, so we have a responsibility to develop a more inclusive and sustainable international division of wealth and opportunity. We have international institutions dedicated to many of the key issues: trade, financial stability, conflict prevention, public health, education, labour, environmental protection, economic development. We should particularly enhance those institutions which focus on fighting hunger, poverty, social exclusion and environmental degradation. We recognise the demands for transparency and accountability in these institutions. We also believe that the strengthening of the international co-ordination and co-operation on issues of global concern can make a significant contribution to reinforcing progressive governance at the domestic level, by ensuring more stable economic conditions and by fostering efforts to build a more even process of globalisation. We know that problems of poverty, child hunger, debt, conflict, environmental degradation are connected. A critical task for progressive Governments is to adress the issues of poverty and underdevelopment. That is why we need efficient international co-operation that links together solutions to these problems. This form of linkage is being pioneered in the connection between debt relief and poverty reduction programmes. For us the following issues are key:

  • We support free trade as an important instrument of economic development for the developing world, and as the route to new markets for industrialised countries. We will examine the structure of flows in the world economy which prevents direct investment even in those countries which have the necessary economic essentiels in place. A strengthened multilateral trading system is essential for progressive governance to prosper at the international level by ensuring hard-working people in all countries a fair chance to market their product abroad. We agreed that as a crucial step for trade liberalisation developed countries and developing countries should provide the least developed nations enhanced market access.

  • We are aware that a stable international financial environment is a crucial factor in promoting economic growth and in allowing all countries to reap the potential benefits of globalisation. Recent international crisis have stressed the need for proper financial regulation. We support the attempts at debt relief for HIPC. And we want to give more support to good governance in countries where it is the weakness of government that is undermining the rule of law and the development of economic and social life.

  • We see the need to improve the institutional framework in which financial markets operate, in terms of the adoption of efficient regulation, supervising and accounting, codes of conduct, principles of sound corporate governance, and a fair sharing of responsibility between the public and the private sector. We agreed on the need for adequate regulation and supervision in order to strengthen financial stability and social justice.

  • Globalisation, trade and technological advances should enable us to tackle widespread poverty better than ever before. It is our responsibility to secure that poor people and the poorest nations are included in the present historic opportunities, especially because rapid technological advances can tend to widen the inequality gap. Direct effective aid from both governments and non-governmental organisations is still needed. We will give it more priority and resist those who would give it less.

  • We must turn the digital divide into international digital opportunities by training teachers and building strong partnerships with government, businesses, foundations, and civil organisations. We need to use new technologies to its fullest advantage, to improve health, promote education, and foster cultural exchange and understanding. We believe that education is as important, if not more important, for the developing world as the developed world. We support the target to substantially increase universal primary schooling. We must ensure that the children of the world _ the citizens of the future - are well taught by qualified teachers with proper materials.

  • We celebrate the diversity of our nations. We encourage cultural diversity. Globalisation, which is indeed about more contacts and more exchanges, should not lead to uniformity, but to the enrichment of people and the opening of cultures.

  • The global environment must be handed on safely to future generations. Sustainable development is an important orientation for modern governance. This goal should be respected in all relevant areas of international policy. We support the commitments of the Kyoto protocol and want to use new mechanisms, like emissions trading, to create common interest between the developing and developed world.

  • We must make a concerted effort to prevent the spread of infectious diseases that are robbing developing countries of their most precious assets - their people. We support an increased focus on resources on health infrastructure. We also commit to increasing our contributions to vaccine and immunisation efforts that assist the poorest countries and to fostering the development of new vaccines and immunisations to prevent diseases such as TB, Malaria, HIV/AIDS.

    We, the leaders of progressive governments, believe that democracy in the 21st century advances the ideals and instruments of hope for all. We act now in the interest of the future generations of the 21st century.

    We have all learnt from this meeting and we all want to meet again. One of the conclusions of the Florence meeting is to broaden the network of progressive governments. We want our ministers, civil servants and public administrators to meet and co-operate on a regular basis, to discuss political solutions and to learn from each other. We will promote the exchange of civil servants and public administrators and we will establish networks of thinkers and scientific institutions designed at identifying challenges and policy options. We believe our citizens should gain confidence from the common experience and approach that we are taking. We look forward to developing our ideas with all those who share our aims and values.


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