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