Pubdate: Fri, 16 July 1999 Source: San Mateo County Times (CA) Copyright: 1999 by MediaNews Group, Inc. and ANG Newspapers Contact: http://www.newschoice.com/newspapers/alameda/smct/ Author: Holger Jensen Note: Holger Jensen is international editor of the Denver Rocky Mountain News. Also: This item originally appeared as a column on 13 Jul 99 in the Rocky Mountain News http://www.denver-rmn.com/ THE WIDENING GAP BETWEEN 'HAVES' AND 'HAVE-NOTS' World's Haves, Have-Nots Drift Even Further Apart Every year the United Nations issues a Human Development Report that ranks the quality of life for the world's nearly 6 billion people. It looks not only at incomes but other factors such as health, longevity, literacy and overall well-being. The United States ranks a respectable third out of 174 countries. But before we get too complacent, some sobering facts: While we are richer than Canadians and Norwegians, their quality of life is better than ours. And 20 percent of Americans still live below the poverty line. Our biggest export is not aircraft or cars but entertainment. So if you aren't making movies or music, your job insecurity is likely to increase as a result of corporate downsizing and economic restructuring. The U.N. Development Program, which authored the report, acknowledges that most countries showed a significant improvement in lifestyle, even those that suffered economic reverses such as Asia's financial crash. But only 33 countries achieved 3 percent annual economic growth while 59 -- mainly in sub-Saharan Africa, Eastern Europe and the former Soviet Union -- saw their incomes and lifestyles decline. Of 36 countries with the least desirable standard of living, 29 are in Africa and Sierra Leone is dead last. The report blames HIV/AIDS in eastern and southern Africa and economic stagnation throughout the entire continent south of the Sahara, primarily because of a crippling debt burden and lack of foreign investment. Although it's not just about money, the report clearly shows the rich are getting richer and the poor poorer. The UNDP blames uncaring, market-oriented globalization for creating a "grotesque" and dangerous polarization between the haves and have-nots. More sobering facts: - - One-fifth of the world's population living in the highest income countries has 86 percent of the world's gross domestic product, 82 percent of world export markets, 68 percent of direct foreign investment and 74 percent of the world's telephone lines. The bottom fifth, in the world's poorest countries, has about one percent in each sector. - - The 200 richest people in the world more than doubled their net worth in the four years before 1998 to $1 trillion. - - The income gap between the richest fifth and the poorest fifth, measured in average per capita earnings, widened from 30-to-1 in 1960 to 74-to-1 in 1997. - - Industrialized countries hold 97 percent of all patents. - - Organized crime syndicates gross an estimated $1.5 trillion a year. - - The value of the illegal drug trade in 1995 was estimated at $400 billion; about 8 percent of world trade, more than the shares of iron and steel or motor vehicles, and roughly the same as textiles gas and oil. - - The Asian financial crisis will have reduced global output by an estimated $2 trillion between 1998 and 2000, putting millions of people out of work and prompting cutbacks in social services all over the world. - - Foreign investment reached $400 billion in 1997 but 58 percent went to industrialized countries that need it least. Most of the remaining 42 percent went to China, while Eastern Europe and Africa were largely ignored. - - Tanzania's debt service payments are nine times what it spends on health care and four times what it spends on primary education. The emphasis on markets and profitability has made the global economy uncaring, says the UNDP. And breakthroughs in technology, such as the Internet, give the "wired" rich an overwhelming advantage over the unconnected poor, "whose voices and concerns are being left out of the global conversation." Eighty-eight percent of computer owners live in industrialized nations that represent just 17 percent of the world's population. Eighty percent of their web sites are in English, although fewer than one in 10 people speak the language. "The world is rushing headlong into greater integration, driven mostly by a philosophy of market profitability and economic efficiency. We must bring human development and social protection into the equation," said Dr. Richard Jolly, coordinator of the UNDP report. "Globalization needs a human face." - --- MAP posted-by: Richard Lake