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### Viewing cable 05BRASILIA542, BRAZILIAN RESPONSE TO ARGENTINE PRELIMINARY PAPER ON

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05BRASILIA542 | 2005-03-01 19:24 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    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

`