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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. MANLEY - ADDRESSTO THE ROYAL INSTITUTE FOR INTERNATIONAL AFFAIRS - LONDON, ENGLAND</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> 2001/16 CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE JOHN MANLEY, MINISTER OF FOREIGN AFFAIRS, TO THE ROYAL INSTITUTE FOR INTERNATIONAL AFFAIRS London, England March 20, 2001 (8:30 a.m. EST) Introduction It is an honour to be delivering my first major overseas address as Canada's Foreign Affairs Minister in the esteemed company of the Royal Institute for International Affairs. Many visions of the world have passed through Chatham House during the last century: Worlds shaped by ideology, by militarism and by skewed notions of ethnicity and race. And, more optimistically, by post-war internationalism and the entrenchment of universal principles of democracy, human rights and standards of justice. The visions and movements that defined the 20th century were by and large those of governments, or at least of those who would seek to govern by might or by right. However, governance today is no longer defined by traditional political forces alone. Some of our most pressing challenges -- and greatest opportunities -- lie outside the constructs through which we viewed, and sought to manage, the world of the last century. We need to think outside that box. The most potent forces at work today are those of integration: the power of technology; the power of markets; and the power of the people, who demand more from democracy than just a periodic election. We have entered the era of a globalized human culture. Ideas and information travel as easily along its synapses as do stock trades and currency swaps. It is spawning networks of renewal -- in education, health, environmental protection and human rights -- but also those of degradation. From Internet child pornography to drug trafficking to climate change and the global HIV/AIDS epidemic, we face a new generation of threats that show no respect for political borders. Above all, globalization acts as a force for inclusiveness, and for interdependency -- not only of economies, but of culture, concepts and human expectation. Just as globalization's risks transcend borders, so must its opportunities and achievements. In its essence, the issue that globalization puts before us is one of governance, both at a national level and in the challenge we face as international partners and competitors. And that is how we shall use the tools this era offers us to democratize, to empower our citizenry, to foster learning and innovation, and, on the most fundamental level, to improve the quality of human lives. In Canada, I believe that we are positioned to rise to this challenge, both as a society that is characterized by its diversity and inclusiveness, and as a strong economy that has been transformed by the technological revolution. We know that the realization of a just, prosperous society depends on our ability to combine these attributes, at home and in our partnerships within the global community. I would like to offer you a new look at a new Canada, and at a new internationalism that we need to make the world work better. A New Look at the New Canada As a nation, we have grown up well. To our original cultures -- of Britain, France and the Aboriginal peoples of Canada -- we have added the diversity and richness of societies from around the globe. In today's multicultural Canada, some 43 percent of our population claims ethnic roots from outside our three founding cultures. Over half of Toronto's five million inhabitants count themselves as ethnic or racial minorities. Each year, some 220 000 people choose Canada as their new home, choose the social-economic model that we offer and that is unique within North America -- a North American business model, but social values that are closer to Europe's. And there is another Canada that we want the world to know about: the Canada that is a world leader in the new economy. That is at the cutting edge of technological innovation and is becoming the most connected nation on earth. A truly knowledge-based economy. Prime Minister Blair paid heed to this other Canadian reality last month in Ottawa, calling Canada (with some, but not, we think, excessive flattery) "a high-tech hub of the global economy." If only others were as well informed as your Prime Minister. A survey of U.S. perceptions of Canada last year showed that most Americans believe that our principal exports are hockey players and beer. Images of "moose, mountains and mounties" too often overwhelm other Canadian attributes. We are not the only country to become captive to clichés and misperceptions about our technological capacities. Most people, even in the industrialized world, do not realize that the telephone was not an American invention, nor that one of the first programmable computers was actually introduced by a young British postal worker during the Second World War. Reality should speak for itself. The facts of the new Canada are clear: Information and communications technologies (ICT) are Canada's fastest-growing export sector. Today, less than a third of our exports are resource-based. Our technological clusters lead in high-tech innovation in vital new sectors such as optical data technologies. Service industries -- finance, engineering, media, software design -- that use the new technologies now compose two thirds of our national economy. We had the second-highest growth rate in the G-7 in 2000, and the highest the year before that. Despite the current U.S. difficulties, our economic fundamentals are strong, and we are in the fifth year of budgetary surplus. By making the right fiscal choices and smart social and economic investments, Canada is well prepared to face any slowdown. To really understand the Canada of the 21st century, however, we need to look beyond economic performance. We also need to be understood in the context of our predominant relationship -- that with the United States. Our relationship with the United States is paramount -- and political, economic and security realities dictate that it will always be so. Cross-border trade now amounts to US$1.3 billion every day. Proximity and the sheer volume of our dealings imply that there will always be problems but, equally, that managing them is essential to our common progress and prosperity. Increasingly, our outlook on the United States is shifting beyond the bilateral: it is North American and it is inter-American. In the first five years of the North American Free Trade Agreement (NAFTA), our trade with the United States increased 80 percent and that with Mexico rose 100 percent. We are working to expand this prosperity to all of the hemisphere through the Summit of the Americas process. Next month, Canada will host the 34 democratically elected leaders of the Americas to pursue this agenda, with its corollary objectives of strengthening democracy, realizing human potential and expanding prosperity for all of the 800 million citizens of our region, including through the proposed Free Trade Area of the Americas (FTAA). While geography directs us to explore further our identity in the Americas, our ties to Europe remain strong. On both sides of the Atlantic, fundamental changes are underway. The European Union continues to evolve and expand. North America is moving toward deeper economic integration. Canada and the United Kingdom share a unique perspective on these developments. Canada is more European than the United States and our other hemispheric partners, and the United Kingdom is more oriented toward North America than is the rest of Europe. Whether we are talking about economic engagement or defence and security relations, we have a special position -- and therefore particular opportunities -- vis-à-vis each other and our broader global interests. Canadian investors are increasingly moving into Britain and using your country as a portal to European markets. Our investment in the United Kingdom has grown from C$14 billion to C$23 billion in the last three years. The reverse does not hold true, however, as U.K. investment in Canada, while significant, has stagnated. Your business community has been missing an important opportunity to position itself in North America through Canada. Study after study has proven that Canada offers one of the most favourable investment climates in the world. Why choose Canada? Aside from those strong economic fundamentals and our geographic positioning, we offer other advantages over our competitors. Canada has a large stock of skilled, well-educated workers and a strong technological environment. We have the lowest cost of living among G-7 countries. We are doubling our research and development spending and have the OECD's most generous R&D tax credit. Our corporate taxation rate is now below that of the United States. And our socially progressive outlook and safe communities have kept Canada in first place on the United Nations Human Development Index for seven years running. We value our U.K. partners too much not to let them in on this deal. We also want to do more -- and do better -- in Europe. Canada is one of only eight countries that do not have some form of preferred access to the EU market, and our trade relations are too often mired in irritants and disputes. In his address to the Canadian Parliament, Prime Minister Blair challenged us to give ourselves the goal of free trade. We agree that we should seriously explore all options that lead to greater transatlantic trade liberalization and, where possible, free trade, be they on a regional basis or multilaterally through the World Trade Organization (WTO). But there is also an overarching political case to be made to ensure that this vast, fundamental world relationship works, and works well. There is too much at stake for the transatlantic community, and for the world at large. Transatlantic Relations Our transatlantic link is essential, not only economically but also for our common security and social prosperity. When we co-operate, the world works better. If we fail to bridge those waters, progress too often may be stalled, to the detriment of the wider global community. Prime Minister Blair spoke eloquently of this bond last month, stating that "where the two sides of the Atlantic stand together, the world is a more secure, stable and prosperous planet." It has long been this way, both in times of war and in the peacetime construction of a new international architecture that gave the world the United Nations, the Bretton Woods institutions, the GATT [General Agreement on Tariffs and Trade]/WTO and NATO [North Atlantic Treaty Organization]. Canada-Europe Security Co-operation Our membership in NATO continues to be the cornerstone of our security and defence relationship with Europe, just as NATO continues to provide the foundation for security and defence in Europe. This relationship stems from a recognition that our own freedom and security are intimately linked to those of Europe. Indeed, there is a monument down Pall Mall to the million Canadian service people stationed in Britain during two world wars. During the last half-century, our security co-operation has become multifaceted, reflecting the ongoing evolution of Europe itself. We are together on the front lines in the Balkans, and we work together in UN peacekeeping operations throughout the world. Canada welcomes the introduction of a European Security and Defence Policy. But with the development of a European rapid reaction force, NATO and the EU will need to ensure their close and effective co-operation on a range of security and defence challenges. For Canada's part, we are pleased at the recent launch of quarterly consultations with the EU on security and defence. We look forward to developing the modalities for Canadian participation in future EU-led peace operations. Making the World Work Better Transatlantic co-operation should not, of course, be limited to strict geographic boundaries. We must also use it as a dynamic force for progress across the gamut of our collective interests -- whether in the United Nations, the G-8, the Commonwealth, or the WTO. We need to foster a culture of innovation in the conduct of international relations, just as we have in business and in science and technology. We need new approaches to match the demands of a new age, including greater transparency and better application of information and communications technologies to inform and engage our publics. We also need to be open to new perspectives on global issues, considering their political, economic, social and environmental dimensions in tandem, and taking into account the interests of developing and transitional economies. Our countries can, and do, exercise considerable influence in making this happen. A key benefit of the transatlantic alliance is to provide a foundation for consensus building with other nations of the world, particularly as the next "big emerging players" take on roles of increasing importance. The advent of new power centres in the developing world is inevitable and overdue. Increased engagement with these countries is essential. Constructive dialogue -- which does not preclude our disagreement or even criticism where warranted -- is the most effective way of building mutual understanding and extending universal norms and values. We have done this in China and will now be doing it with India as well. While we will continue to call upon India to renounce its nuclear weapons program, we have concluded that to pursue an effective dialogue, we need to engage India in all sectors of interest to Canada and at all levels. India is a vigorous democracy, with one sixth of humanity and a growing and increasingly globally integrated economy. Our global institutions must reorient themselves to these new realities and ensure that their priorities are aligned with the most pressing needs of humanity as a whole, which often starts with poor and conflict-torn regions. We are working to meet this challenge in a variety of ways. The G-8 has reinforced its leadership in addressing global issues, both for the benefit of our citizens and for the global community. Canada and Britain collaborate closely, and effectively, as G-8 partners, including in formulating a new role for the G-8 in conflict prevention. We look forward to pursuing this and other initiatives, such as the connectivity agenda, debt relief for the world's poorest nations and the fight against highly infectious diseases, at this year's Summit in Genoa and into 2002, when Canada will chair the G-8. Another important example of so-called "next generation" internationalism is the G-20 group, spawned by the G-8 in 1999 in response to the Asian financial crisis, and which my colleague, the Canadian Minister of Finance, now has the honour of chairing. In promoting stability and reform in international financial markets, the G-20 has taken the lead in integrating issues of development infrastructure into the mainstream economic agenda. This, plus its balanced membership of developed and emerging economies, has made it one of the most relevant institutions of our times. Innovative foreign policy also refers to the perspective that we take on issues, and not just the institutions through which we manage them. Human Security The international human security agenda has achieved great progress on seemingly intractable issues by focussing attention on the quality and security of human lives, rather than traditional geopolitical interests. The Ottawa Convention banning anti-personnel mines entered into force a mere 15 months after its initial signing -- possibly a record in modern international law. It has stigmatized the use of these mines across the globe and brought down their devastating human toll. But the toll is still unacceptably high, and we need a continued international commitment to end the humanitarian terror caused by anti-personnel mines. This people-centred approach has also helped to build support for an International Criminal Court. Once the Rome Treaty enters into force, the Court will provide a key instrument to end the culture of impunity for those who commit serious violations of international humanitarian law, including the mistreatment of combatants and civilians in situations of conflict. This is an area, however, where the transatlantic community still must build a consensus, and work through related preoccupations of sovereignty, so that this crucial new institution may begin its work. Human security also has an important economic dimension, in my view. Social justice and economic prosperity do not always grow hand in hand, but one should seldom leave the other far behind. Both are based on the idea that progressive societies and successful economies must be characterized by a respect for the rule of law. The structures and processes that support fair, open trade must flow from the same principles of governance that protect human rights and allow individuals the opportunity to realize their potential, free from persecution or discrimination. Economic, social and political interests are increasingly interwoven. Economic development fosters stability, while the interchange of commerce breeds cross-cultural understanding, tolerance and opportunity. Trade best flourishes, however, in a free society and a stable, transparent political environment. We can, and must, pursue these agendas in a coherent and co-ordinated manner. Technology, Development and Democracy The relationship among technology, development and democracy has also come into focus in recent years. At last year's UN Millennium Summit, many world leaders -- including Canada's Prime Minister -- expressed sharp concern over a growing digital divide between rich and poor nations. The digital divide is more than a deficit of wealth -- it is about a widening deficit of knowledge, which translates into a deficit of opportunity. In countries such as Canada and the United Kingdom, individuals have never been as empowered as they are today -- by their access to information, their ability to connect, and their capacity to make their views heard and to seize the opportunities of the new economy. In Canada, we have made connectivity a national priority. Through the Connecting Canadians program, we have already linked every school and public library in the country to the Internet, and we will have put all major government services on-line by 2004. Along with the United States and Scandinavia, Canada has the highest rate of household Internet access in the world. It is a tremendous achievement. But this only creates a starker contrast to the many parts of the world that do not yet have access to these tools -- the tools of opportunity. Right now, half the world have yet to make even their first telephone call, while the other half are conducting Internet stock trades through their cell phones. There are more telephones in New York City than on the entire continent of Africa. And while e-commerce amounts to a C$200-billion-plus industry in the West, less than 1 percent of the developing world's population has access to the Internet. Bridging the digital divide is a key priority. The G-8 Digital Opportunity Task Force -- or dot force -- was launched at the Okinawa Summit to ensure that everyone, everywhere, has access to the diverse benefits of information and communications technologies. Likewise, the Commonwealth, which has members on both sides of the digital divide, is using the "Commonwealth of Learning" to widen access to education using distance learning techniques. It is also studying how we can promote the wider use of information and communications technologies, particularly in smaller and less-developed member countries. Canada and others are also taking steps to ensure that the skills needed to exploit the potential of new technologies are being transferred to the developing world. Under our NetCorps program, hundreds of young, technology-trained Canadian interns are helping the world's poorest countries to connect schools and small businesses to the Internet. Inclusive Democracies -- The Role of Civil Society The technologies and opportunities of the globalized era are also having an important impact on the role and expectations of civil society. The public demand for information and for dialogue on the major issues of our times has grown substantially. In Canada, we have made a commitment to bring openness and transparency to government operations. Citizen engagement is essential to an informed and legitimate policy-making process. We undertake extensive consultations with the public -- including business, non-governmental organizations and citizens' groups -- on nearly every facet of national policy, including our foreign and international trade policies. It is not, however, an easy road. The right to express dissent, including through public protest, is a fundamental characteristic of our liberal democratic society. But it does not offer a licence to commit violence or to shut down the legitimate work of governments or international organizations. All sides in the debate share a vital stake in ensuring that our overriding interest -- which is the same goal of using greater dialogue to build stronger, healthier and more just societies -- does not become diminished by the media spectacle of confrontation. It is a continuing challenge. Conclusion The forces of globalization -- sometimes maligned, sometimes praised -- represent transformative influences that are the unavoidable consequence of modern information and communication technologies. The challenge for governments is to seek the means to channel these forces for the betterment of the human condition. I am convinced that the tools of modern governance -- led by technology and by the shared values of justice, tolerance, respect for human rights and the rule of law -- create the potential to make this complex, shrinking world a better place... and one in which our interdependence becomes a matter of pressing reality to each of our citizens. Thank you. </body> </html>

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