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Al-Ahram Weekly 22 - 28 June 2000 Issue No. 487 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 22 - 28 June 2000 Issue No. 487
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Focus Opinion Culture Features Travel Living Sports Profile People Time Out Chronicles Cartoons Letters The strength of unity
By Nevine Khalil
After two days of deliberations and retreating at the picturesque Qattamiya Golf Resort, leaders of the Group of 15 (G-15) economic group asserted that they were determined to create a better future for their people. G-15 delegates announced that they are seeking "a more harmonious and prosperous world economy," and to "overcome the challenges and seize the opportunities created by globalisation."
According to the final communiqué issued on Tuesday, G-15 heads of state pinned their hopes on the upcoming Millennium Summit in New York this September to "influence the framework and content of international cooperation to take into account the concerns of developing countries."
The group is also depending on a number of world bodies to help them in their endeavours, even though these organisations are virtually all controlled by the developed countries. High on the list, of course, are the International Monetary Fund (IMF) and World Trade Organisation (WTO), but the communiqué also called on the UN Conference on Trade and Development (UNCTAD) to ensure that future trade negotiations "take fully into account the development dimensions" of developing countries.
G-15 nations also appealed to the UN to provide a forum for promoting global development "with equity and a human face." The IMF and WTO were likewise asked to keep the interests of developing countries in mind, both in ensuring equitable representation in international financial system reforms and fair international trade.
The G-15, born in 1989 as a cooperative umbrella for countries from the developing world, now actually encompasses 17 member nations, but this number is expected to rise to 19 with the tentative addition of Iran and Colombia. Iran was welcomed into the fold of the Cairo summit and Colombia's request, if renewed, will also be accepted.
When it comes to relations between North and South, Indian Vice-President Krishan Kant claimed that "people on the hills" should not "lay down all the rules for people in the valley." Constructive dialogue "requires a common understanding with the North on our objectives for social and economic development, as well as ways of achieving these objectives."
The group once embraced the North's ideals of globalisation, agreeing that these forces could lead to world-wide prosperity, but this vision "has not materialised," noted the summit's final document. The group called on the international community to "redress the asymmetries and imbalances in the global economy," asserting that integrating the South into the world economy would increase market size, competition and opportunities for technology transfer. The industrialised world has all but turned a deaf ear to the calls of the developing world. Although some progress was made last year when personal representatives of the group's leaders met with the G-8 Sherpa, the South's list of grievances is long. Of the challenges facing the group, President Hosni Mubarak noted that they "are not easy and our path is not strewn with roses, however this should not affect our firm stance and just demands."
The multilateral trading system should operate in a manner that is open and non-discriminatory; industrialised nations should shed their protectionist tendencies in trade; the North should open its labour markets to developing countries and improve preferential schemes and schemes like the Heavily Indebted Poor Countries (HIPC) initiative, launched by the G-7, World Bank and IMF should be upgraded. Other demands include a rise in Official Development Assistance (ODA) and an increase in Foreign Direct Investment (FDI).
Speaking at the opening session on Monday, Jamaican Prime Minister Percival J Patterson criticised developed countries for "dilut[ing] their commitment to multilateral cooperation in fighting global poverty and deprivation." Patterson said that the North has arrogated to itself the role of "global economic directorate" and that "the time for change is now."
But summit participants also practiced a dose of self-criticism. Nigerian President Olusegun Obasanjo said that the "original vision" was to demonstrate "how commercially viable projects can be implemented using the technology, experience and capital of the South. Regrettably, these dreams still remain largely unfulfilled."
In his opening-session address on behalf of the six African group members, Obasanjo said that many countries in Africa continue to have "inadequate and fragile economies" and that soaring foreign debts have rendered the situation "dire". What Africa needs, Obasanjo said, is not "the constant recitation of the litany of our woes," but to relieve the debt burden that represents a "millstone around Africa's neck."
Nonetheless, Obasanjo said that Africa continues to have faith in the G-15 "as a potent vehicle for genuine cooperation." Mubarak agreed, defending the average record of the G-15. "[With] a young group such as ours, you cannot press a button and remove all the problems," he said, adding that the group is building momentum and "a strong voice" on behalf of the South.
India's Kant, speaking on behalf of the four Asian countries in the group, spoke of Asia's vision as "economic opportunity and prosperity for each individual" and praised Asia's "resurgence" from the recent economic crisis.
Kant's agenda mainly focused on technology transfer. "The economies of the future will be those strong in knowledge-based industries and entrepreneurship," he said. Jamaica's Patterson agreed, saying that it was "high time for the world community to make public investments in technologies to help the poor."
Group members believe that since South-South cooperation fosters solidarity and self-reliance, regional agreements within the group will achieve higher levels of development and strengthen interdependence among developing countries. By strengthening itself as a group, the G-15 believes this will improve its chances in dialogue with the G-8.
"Let us remain firmly committed to South-South cooperation [in order to] spur economic advancement," Patterson said, speaking on behalf of the seven Latin American member states. "We must draw strength from unity."
Addressing other malaise afflicting developing nations, participants committed themselves to combating terrorism, drug trafficking, money laundering and arms smuggling. The final communiqué officially supported Egypt's initiative for convening an international conference to address terrorism and cross-border organised crime under the auspices of the UN.
All these issues are bound to be staple items on next year's G-15 summit agenda, to be convened in Indonesia, and in 2002 in Venezuela. The group's foreign ministers will also gather in Mexico this November to take stock and follow-up on the Cairo summit.
