Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	:	PALACE OF THE GOLDEN HORSES, 
			SG. BESI, KUALA LUMPUR 
Tarikh/Date 	: 	22/10/98 
Tajuk/Title  	: 	THE OPENING OF THE 3RD INTERNATIONAL 
			STEERING COMMITTEE ON
			THE ECONOMIC ADVANCEMENT OF 
			RURAL WOMEN 



        May  I take this opportunity to bid a warm welcome  to
  all  the  delegates to Malaysia, and to extend my heartiest
  congratulations  to  the International  Steering  Committee
  (ISC) for convening its third meeting in Kuala Lumpur.   It
  is  gratifying to know that the objective of  this  Meeting
  is   not   only  to  review  the  activities  for  economic
  advancement of rural women and their families in line  with
  the  Geneva  Declaration but also to discuss the  functions
  and  roles of the members as advocates on behalf  of  rural
  women.   Commitment  to the mandate  is  reflected  in  the
  expanding  membership.  Ever since your  first  meeting  in
  Belgium  in 1994, I understand that the original membership
  of  15 has been enlarged to include five members from  each
  of  the  five regions of the world - Africa, the  Americas,
  Asia  and  the  Pacific, Europe, the Near  East  and  North
  Africa.
  
  2.    The  ISC  has  an important mandate.   Promoting  the
  implementation  of the Geneva Declaration for  Rural  Women
  through  the  mobilisation  of political  will  and  public
  opinions  is not only appropriate but highly strategic  for
  women  who hold positions as First Ladies.  Your access  to
  high  level  decision-makers facilitate  the  moulding  and
  promotion  of appropriate national policies and  programmes
  for  the economic advancement of women, rural and non-rural
  who  are  vital forces as change agents in development  and
  poverty   eradication.   At  no  other  time   would   this
  influence be more critical than now,  when we are facing  a
  severe  economic  contraction  in  all  continents  of  the
  world,  triggered by currency trading and irrational global
  capital  flows.   The  creation  and  enjoyment  of  global
  wealth   are  very  uneven  and  as  developing   countries
  continue  to  struggle with deteriorating terms  of  trade,
  debts  and structural adjustments, the basic needs  of  the
  people  are  greatly  compromised.  In these  circumstances
  more  women  are thrown into the pits of poverty  and  they
  remain  the  poorest of the poor.  Poverty is  particularly
  acute   for   rural   women,  female   headed   households,
  indigenous  women,  the urban poor and  migratory  workers.
  The  recession  may well be a catalyst  for  a  social  and
  political   re-think  of  domestic  and   global   economic
  strategy.
  
  3.     In   every   region  of  the  world,  a  substantial
  proportion  of the population in developing countries  live
  in  the  rural areas and suburban slums at the  margins  of
  megacities.   More than 60 percent are women who  form  the
  backbone  of  the  agricultural labour  force  as  farmers,
  petty  traders,  artisans, industrial home  workers,  micro
  producers  and  domestic  servants.   They  produce   35-45
  percent  of  the  Gross  Domestic Product  as  well  as  50
  percent  of  the developing world's food.  Most still  live
  in   abject  poverty,  lacking  access  to  resources   and
  markets.   Despite the deplorable conditions, these  women,
  especially  those  from the poorest households,  are  still
  the   prime  movers  of  development,  producing  food  and
  maintaining  the  well being of their families.   If  their
  contribution  to  the  reproductive sector  is  taken  into
  consideration, rural women with this burden, contribute  an
  estimated USD11 trillion to rural and national economies.
  
  4.     Recognising   their  contribution,   effective   and
  appropriate policies and programmes are being developed  to
  harness the vast untapped potential of talents, skills  and
  knowledge of rural women into the development process in  a
  sustainable  manner.   The aim is  to  improve  the  living
  standards,   to  increase  productivity  and  ensure   more
  equitable   sharing  of  the  national   wealth.    Several
  institutions such as the Grameen Bank, the Association  for
  Social  Advancement  (ASA),  Bangladesh  Rural  Advancement
  Committee,  the Amanah Ikhtiar Malaysia and Departments  of
  Rural   Development  have  successfully  reached   out   to
  thousands    of   poor   rural   women.    Micro-financing,
  cooperatives, extensive social and health services as  well
  as   training,  have  been  effective  tools   in   poverty
  eradication and generating self reliance amongst  thousands
  of   poor  women  in  the  rural  areas.   In  Malaysia  we
  succeeded  in reducing the poverty level from 49.3  percent
  in  1970  to 16.5 percent in 1990 and 8.9 percent in  1995.
  Much  more  can be done, especially by the private  sector,
  the  R&D  institutions, international development  agencies
  and  national  governments  to  invest  in  this  important
  segment  of human resource by incorporating them as  target
  groups  in the transfer of technology, in developing labour
  and  time saving technology that will increase productivity
  and  in  the  application of information and  communication
  technology.  Most important of all are the programmes  that
  target  humanitarian  and gender sensitive  values  towards
  the  development  of  harmonious  families  which  tap  the
  potentials  of  both  male  and female  family  members  to
  become  proactive, creative, knowledgeable  and  productive
  members of society.
  
  5.     The  theme  "Poverty  Amongst  Rural  women,   Their
  Families  and  Communities" rings a warning  bell  in  this
  trying  times.  It seems timely that a meeting  on  poverty
  is  held at a time when Asia and possibly the world are  in
  the   throes  of  economic  turmoil.   A  financial  crisis
  brought  about  by  currency speculation and  manipulation,
  which  had  its  beginnings in Thailand in  1997,  has  now
  spread  to  other countries in Asia, resulting in  a  rapid
  increase in poverty.  In one Asian country with a very  big
  population  the reduction in the number below poverty  line
  has  now been reversed.  Where before only 20 percent  were
  below  the poverty line, now almost 50 percent have  fallen
  below  the poverty line.  The currency devaluation and  the
  subsequent economic recession has hit the rural poor  most,
  in particular the women.
  
  6.    The situation is not helped much by self aggrandising
  pronouncements   from   speculators   with    sanctimonious
  attitudes  who  appear  on  international  media   networks
  making  unjustifiable  attacks on the strickened  countries
  and  urging investors to pull out their money to invest  in
  more  lucrative  markets.  Their  callous  call  betrays  a
  cruel  blindness to the plight of millions  of  people  who
  have  been  impoverished  by  the  economic  downturn   and
  dehumanises  the social costs borne by the countries.  When
  businesses slow down or fold up, millions lose their  jobs.
  People have less money for their food, shelter, health  and
  education.    Under-consumption   worsens   the    business
  situation.   People are reduced to a state where  they  are
  unable  to  participate  actively in  mainstream  community
  life.   Thus people are not only poor but are also socially
  deprived.   Joblessness, inflation, food shortages,  mental
  and  physical anguish contribute to the social unrest  with
  devastating   riots,   strikes,  protests   and   political
  instability  are  increasingly  being  reported   in   many
  countries.
  
  7.    The 1998 Human Development Report concludes that  the
  financial  crisis in East Asia in the past year has  caused
  the  biggest  set-back  to  the huge  economic  and  social
  strides  in human development that have occurred  over  the
  last  three decades.  Impressive improvements in longevity,
  attainment  of  knowledge and a decent standard  of  living
  gained  through  the  hard work of governments  to  provide
  better  rural  health services, safe water and  sanitation,
  nutrition  and rapid growth of primary schools,  are  being
  thwarted  or  even  wiped away by the  loss  of  Government
  revenue  due  to  the  collapse  of  the  economy  and  the
  recession which has set in.
  
  8.    No  one has been spared.  From large corporations  to
  the  ordinary  men and women in the street, the  impact  of
  the   credit  crunch  and  high  interest  rates  has  been
  paralysing.   Rural  women  who  are  already  poorer  than
  others  in  their  countries become  acutely  impoverished.
  Enhanced economic activities which is acknowledged  as  the
  way  out  of  poverty  for  rural women  becomes  extremely
  difficult  as  such activities require credit  to  continue
  functioning.
  
  9.    Credit  is  to business like blood is  to  the  human
  body.   Flight  of  capital, like haemorrhage,  bleeds  the
  business  to  death.  The first thing we should  do  is  to
  stop  the  massive  bleeding.  In  a  situation  where  the
  credit  dries  up, or analogously when the patient  becomes
  anaemic,  we should provide the right supplements  such  as
  iron  pills or even blood of the right group.  If  we  deny
  these  supplements  by  raising  interests  and  prices  to
  unaffordable  levels we will surely kill the  patient.   If
  your  business  can  only  make 10  percent  profit,  a  15
  percent interest rate would kill the business.  Further  if
  your  business depends on imported products, you will  want
  a  stable currency so that you are not held hostage  to  an
  uncertain  and deteriorating exchange rate.   I  understand
  that  many  of those who sell foodstuff such as curry  puff
  depend  on  imported ingredients such as  flour,  potatoes,
  beef  and  so  on.  You cannot fix your price if  the  cost
  fluctuates  with  volatile  exchange  rates.   As  a  small
  trader  hedging  against exchange rate  changes  is  beyond
  you.   Your business will fail and you will join the  ranks
  of the poor and the hopeless.
  
  10.   The  flow of capital from the rich countries  to  the
  poor  countries  should help enrich the  poor  through  job
  creation and opportunities for businesses, including  small
  businesses  in the rural areas.  In Malaysia we experienced
  this  beneficial effect when we opened up  our  country  to
  foreign  capital.   Our  people were  paid  low  wages  and
  working  conditions were not as good as  in  the  developed
  countries.  But it was better than being unemployed.
  
  11.   But then the capital was suddenly pulled out  of  the
  country  to be invested elsewhere.  The workers lost  their
  jobs;  the  small  traders  lost their  business.   Rapidly
  poverty  came back.  The rural poor cannot understand  what
  happened.   Worse  still they do not know how  it  happened
  and  how  they could prevent it from happening.   All  that
  they can do is to accept their sufferings.
  
  12.   Governments cannot abandon their responsibilities  to
  the  people  who  elected them.  We see for  ourselves  the
  immense  misery  inflicted  on people  --  men,  women  and
  children  --  all over the developing world.  International
  response  must be strengthened beyond mobilising  financial
  support.   Focus must be on preventing such a  crisis  from
  ever  happening  again  and  to  protect  people  from  the
  consequences  of  economic  collapse.   The  assistance  of
  multilateral   and   bilateral  lenders   should   aim   at
  immediately  overcoming the poverty  of  the  already  poor
  directly.   Endless  discussions  on  the  so-called   "new
  architecture"  of the world financial system  will  not  do
  much good for those who may die in the meantime.
  
  13.   At  the  same time the private sector and the  people
  must  also  demonstrate  their  confidence  and  help   the
  economy  grow.   At  difficult  times  like  this  we  need
  everybody  to direct all their energies toward getting  the
  economy  going.   No  one  is  exempted.   Each  and  every
  individual,   men  and  women,  must  contribute   to   the
  country's  recovery  based on national interest,  which  is
  synonymous  with  our individual social and  economic  well
  being.   We are the ones who hold the best chance of saving
  ourselves  from  this  crisis.   Showing  desperation   and
  losing confidence will not help anybody but will only  make
  matters  worse.  We must put our heads together to come  up
  with  ways  and  means  to ward off  economic  threats  and
  instantaneous changes.
  
  14.   I have no doubts at all that in your deliberation  on
  poverty amongst women you will give due thought on ways  to
  overcome the additional problems women face that have  been
  caused by the current financial crisis.  I would also  urge
  you to look at ways to prevent future ones.
  
  15.   With  those words and in the name of Allah, the  most
  Benevolent  and Merciful, I declare the Third International
  Steering  Committee for the Economic Advancement  of  Rural
  Women officially open.