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I am pleased that this invitation was extended to us, an organization of laborers, to participate in an event on the issue of economic security of the elderly. We do not want to deny in any way the importance of contributions by technicians and experts on the issue; but, when the governments of the region and the international agencies venture into this problem, the analysis and suggestions laborers can contribute, and do contribute, in fact, are normally ignored. Yet, we are the ones who, without any way out, are obliged to finance the social security systems, especially welfare services; and, we are generally the ones to suffer the negative consequences. Within the framework of today's structural adjustment policies that are being imposed in the region, they try to bring about basic changes in the social security system, in particular, the privatization of welfare service funds. This is being done without a serious and responsible analysis of the deficiencies of the present systems, what they cost; and, what is a more serious matter, without consultation with those who really own those funds, namely the workers and their organizations.

Our organization was created in 1989, and has since been joined by 39 national organizations of 18 Latin American countries. We represent retired persons and pensioners, who, after having given the better parts of their lives to create the wealth of our nations, are now experiencing increased reductions of the welfare service contributions, which are, in fact, starvation contributions that are not even enough to cover 30 percent on average of our basic needs. The health system that we have to use is increasingly deteriorating. It's more privatized, meaning it's more expensive; whereas the national system experiences reductions in state contributions and in-creasing costs of living. It's becoming more difficult to cope with every day. They intend to make public beggars of us, thus degrading us as human beings.

In these days, within the framework of the economic, social and cultural policies that are being imposed on us, material things are valued more than people. Everything is bought and sold according to the rules governing the markets. Human beings are devalued. Their value corresponds to the power of production, distribution, or consumption.

We, the retired and the pensioners, have very little value today within this framework; but, we are part of an organization in which we consider ourselves to be human beings, workers who spend their lives contributing to the common good. We can think for our-selves, and come with suggestions. We have the will and the will power, together with all the workers of Latin America, to defend our rights that we won with so much sacrifice. We shall never surrender these rights.

It is necessary to explain that we share, as a concept of social security, a set of services geared at satisfying essential needs of people, such as health, education, housing, food, recreation, welfare services, and the retire-ment and pension system. Consequently, any social security system should be inspired and animated by solidarity, universality, and being integral with unity and solidarity.

We, the social protagonists- workers, business men, and the state,-must assume our respon-sibility with regard to the needs put forward by contributing the necessary means to satisfy these needs appropriately and efficiently. We are worried that all over Latin America one model is being used as reference and example for welfare services. The one used is that of Chile, advertising benefits that as a whole are not in agreement with the results expected by the workers of Chile, and concealing situa-tions and perspectives which are, moreover, negative.

We have, therefore, summarized some studies and analysis that fit in with the issue made by international organizations, for example, the International Labor Organization, by experts, and by the workers' organizations themselves. These summaries are being translated into English for your purposes.

Those who forget the past, consciously or unconsciously, should be reminded that privatization of welfare service funds in Chile was not brought about under a democratic government; but, it was imposed by a dictatorial regime without consulting with the workers, let alone with the organizations which suffered the full weight of the oppression. The military of Chile consider the system to be so good that they themselves did not join. To this day, they are part of the traditional system administered by the State of Chile.

It is more than disturbing that our own governments are trying to impose partial, unilateral, and incoherent measures without making a thorough analysis as to what has caused the deterioration of the present systems (which we're all in agreement to typify as inefficient, contradictory, etc.). It is not taking into account that it has been the governments themselves that, for the greater part, do not contribute as they should and accumulate enormous debts. They are the ones that have facilitated and even encouraged corruption. They have exaggerated the recruiting of personnel as payment of election fees. They have caused political favoritism and the embezzlement of resources that belong to the workers and the people, who were obliged to contribute towards their capitalization. It is unacceptable that it is some of the governments of the region that think they have the right to determine the appropriation of those funds, in particular the pension funds, without even consulting or agreeing with the real owners entitled to the benefits. State and government are mixed up with malicious intent. Property and wealth belonging to the state are now being appropriated by the governments in power.

The starting premise is a very generalized and erroneous one that all state matters are inefficient and corrupt, whereas all private matters are efficient and honest. It does not require many studies and much knowledge to verify that not all that has to do with the state is bad, as is even less the case, that everything private is marvelous. This is proven by long range effects; and, we workers know this by bitter experience.

It is more complex and discouraging to establish how those in government, whom we have elected and whose election promises are deprived of meaning by a high degree of incoherence, are lending themselves in an irresponsible manner to the imposition of speculative national interests of international hegemonical interests, without being capable of thinking of and agreeing on harmonious alternatives which will benefit the great majority based on the aspirations and needs of the workers and all peoples.

There are, however, experiences which our governments do not take into account, that are illustrative of, and opposed to, present politics inspired by the ideological "neo-liberal" model. Our governments want to make us believe that everything social means expenditure; and, as is the case with all expenditures in a situation of crisis, it will have to be decreased or eliminated. Based on this criterion, budgetary contributions to health, housing, education, etc., are reduced. It is based on this criterion that the state contributions to welfare services are not paid; and, it is being tolerated that business people do likewise, even in respect to the contributions that are deducted from the workers. However, in many of the so-called developed countries, for instance, the Scandinavian countries, as well as other European countries, they have the highest human development rate according to the UNDP; and, they have ample social security systems, which are administrated and given direction by entrepreneurs and workers together. History has shown them that when a worker feels safe, with regard to coverage of his basic needs as a human being, he or she is more productive, more conscious and participating, and is moreover in a better position to have access to the goods and services he or she produces. To think differently, or to want to impose the opposite, means going against the history of man and his integral development.

No one doubts that there is a vital need to consolidate our fragile democracies to transcend formalities so as to make them into culture. Nor can anyone doubt that there is a need to recover belief in the state and political structures; but, is it possible to do so when they themselves are the ones that impose new and more serious deterioration to the living and working conditions of the workers? Only those whose attitudes have placed them before their ideas will go down in history, those who nurture coherence more than skill, those who suffered with the suffering of the have-nots. History shows that people repudiated those who have betrayed hopes, while being in a position of certain interests, and who have not answered to the needs and aspirations of the masses.

The most perfect system of government is the one that yields the greatest possible happiness, the greatest amount of social security, and the greatest political stability. These are the words written by the liberator, Simone Bolivar in February, 1819. We, the workers of the Confederation of Latin American Workers, Pensioners and Retired People, reject the division that they are trying to impose, namely between those who supposedly think and make decisions; and, we that have to accept them without thinking.

We contribute with criteria and guidelines on the state of social security in the region, with the perspective and hope to work out adaptive proposals to different national realities, in particular to so much accumulated distress and hope. We submit our proposals, especially to the representatives of the United Nations agencies, to the representatives of the countries accredited to the United Nations, to our friends and comrades of non-govern-mental agencies, and organizations that worry about our situation and are committed to it. Please study them.

We are open to receive your contributions; but do help us realize our proposals. They are the work of those who do not accept being beggars of our own efforts; and, we claim and demand participation in the making of our own destiny and that of generations to come. We reaffirm our profound democratic vocation, and our commitment with the Latin American nations in peace and liberty as fruits of social justice. We reaffirm our availability and commitment to face the intention to make the living and working conditions of the workers even more difficult, and to assume our responsibility by offering new alternative proposals, starting from the possibilities and based on the needs of our peoples.