| Our Common Interest |
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Share The World's Resources would like to express its absolute support for the Commission for Africa (CfA) report and its recommendations. The question that we address here is whether the UK government is in a position to implement the report's recommendations, many of which will entail a u-turn in current UK policies. March 05 - Rajesh makwana ~ STWR Without applying extensive policy reforms in the UK, Tony Blair and Gordon Brown will have a difficult task convincing other G8 nations that it is in "our common interest" for them to do the same. They must lead by example, and foster international cooperation. We would like to outline some of the Commission's key recommendations and highlight the major challenges and concerns given the current thrust of UK (and G8) policy. TRADECfA Report:
Overall, the Commission argues that African countries should not be forced to open up their markets in return for aid and as part of trade agreements. Instead, trade policies and free trade agreements such as GATS should be implemented through local and national development strategies. Concerns: Trade and aid conditionality are often imposed by the World Bank, IMF and WTO. The UK has been at the forefront of the WTO’s aggressive liberalization agenda which aims to open up developing country markets to EU exports and corporate interests. The government currently backs the EU’s Economic Partnership Agreements (EPAs), whereby 46 African countries (as well as countries in the Caribbean and Pacific) are forced to open up their markets, thereby exposing small-scale producers to overwhelming competition from powerful multinationals. The World Trade Organisation recently judged US cotton subsidies to have breached its trade rules; however US trade secretary has rejected these calls for an immediate end to subsidies on cotton and sugar. How this ruling will be enforced is yet to be seen. It is unclear how the UK Government would influence the US government, and other G8 countries such as Italy, Germany and France, who benefit hugely from the EU’s Common Agricultural Policy, the world's most protectionist trade regime. AIDCfA Report:
Concerns: This substantial increase in aid will finally bring donor assistance to the 0.7% GDP level, which was first proposed in the Pearson Report 30 years ago, and is less than the Brandt Commission's‘ 1% GDP by 2000’ recommendation. The current aid level of 0.21% GDP gives some indication of the resistance to such an increase, especially in light of the overall decrease in this figure over the past 30 years from 3.5% GDP. Many G8 nations have recently opposed Gordon Brown’s IFF proposal for raising additional short term finance. The World Bank has expressed concern that aid levels may have to decrease substantially once the bonds issues within this scheme have to be repaid by the donor countries. DEBTCfA Report:
Concerns: This is widely welcomed apart from by the USA, who has thus far rejected such plans. Debt cancellation has been proposed for many years (since the start of Jubilee 2000), without implementation. The main concerns here are that existing conditionality to debt relief must be scrapped (another of the CfA’s recommendations), and that the implementation of these decisions is democratic and transparent, requiring the reform of the IMF and World Bank. The report does not address the significant burden of debt many countries face (up to 50%) in ‘domestic debt’, owed mainly to international banks. GOVERNANCECfA Report:
Concerns: The Commission’s report does not call for new laws to hold multi-national companies accountable for their impact on poor countries. Instead it emphasizes a voluntary alternative of ‘corporate social responsibility. The UK has tended to side with business groups on this issue for some time and the report merely reaffirms the status quo. Without making international codes and standards legally binding, social and environmental abuses are likely to continue. The commission fails to harness the resources of the multi-nationals to further benefit African nations. PEACE AND SECURITYCfA Report:
Concerns: The UK plays a significant role in the provision of arms around the world, including African nations, thereby fueling conflict. In fact some of the main arms bankers and financiers selling into Africa base their operations in the UK. Numerous reports by the UN and other organisations have highlighted the UK’s disappointing arms export policy, calling for tighter controls. There is also a widely held view that trade in arms is vital to the UK’s economy. HEALTH CARECfA Report:
Concerns: Many G8 countries, in particular the UK, have and continue to poach African health care workers from extremely poor parts of Africa, where they are needed the most. The report does not emphasize how interrelated a disease such as AIDS is to poverty, poor governance, political instability, conflict, lack of basic health and education services and gender inequality. In addition, there must be reform of international trade and patenting conditionality if adequate health care provision is to be ensured. CLIMATE CHANGECfA Report:
Concerns: Climate change can significantly exacerbate poverty in Africa through extremes of weather conditions creating draughts and floods. Unfortunately, the report says little on this issue. If adequate policies are not enforced globally to reduce the impact of climate change, the efforts of the Commission may be undermined. Policies that go beyond Kyoto need to be universally implemented. Meanwhile the UK continues to use the World Bank and other institutions, to fund overseas fossil fuel extraction. It also encounters much lobbying from powerful industry groups and has not effectively controlled its own greenhouse gas emissions. OTHER CONCERNS The report clearly recognizes that the privatization of public services has had a detrimental effect on the growth of the continent. Here again the UK will have to drastically overhaul its policies, since it has channelled millions of pounds from the aid budget to privatization consultants to advise developing country governments on how best to privatize their public services. For economic improvement to be Afro-centric, the democratization of the IMF, World Bank and WTO must be implemented through increased representation of African countries on the Boards of these institutions, alongside increased transparency. This has been on the UK agenda since 2000 with little impact, yet it is crucial if there is to be any significant impact on the iniquitous global economic framework. It should also be noted that Tony Blair and Gordon Brown have only a short time to use their current level of influence to gain G8 agreement on the report’s recommendations. It is uncertain how much support the UK will get in promoting the CfA report from Russia when it takes over the chair of the G8 in 2006. The report also proposed a significant increase in investment in infrastructure, education and small to medium sized business development. Overall, the intention is that Africa will accelerate towards meeting the Millennium Development Goals on halving poverty by 2015. Calculations have shown that at current rates of progress most of the Millennium Development Goals will not be met until well into the next century. Most of the report’s recommendations have been touted by organisations within and outside Africa for many decades, and their implementation is long overdue. In the past, crucial recommendations such as those in The Brandt Report have been sidelined due to an adverse political climate or a lack of political will. The challenges of this new report must be recognized by the UK government as worthwhile and they must use every ounce of their political influence to rise to them. Clearly this starts with the reform of policies in the UK. It is essential that the UK is successful in persuading G8 nations that it is in ‘our common interest’ for the international community to cooperate to ensure a more equitable distribution of the world’s resources. The report ‘Our Common Interest’ carries phenomenal potential for change if implemented. As such Share The World’s Resources call upon all NGOs and concerned individuals to lend their absolute support to this key initiative. Read Part 1 of the CfA's report here (includes all the recommendations) Rajesh Makwana is the Director of Share The World’s Resources (www.stwr.org), an NGO campaigning for global economic and social justice. He can be contacted at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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