|
Get AfricaFocus Bulletin by e-mail!
Print this page
|
Note: This document is from the archive of the Africa Policy E-Journal, published
by the Africa Policy Information Center (APIC) from 1995 to 2001 and by Africa Action
from 2001 to 2003. APIC was merged into Africa Action in 2001. Please note that many outdated links in this archived
document may not work.
|
Africa: British Policy, 1
Africa: British Policy, 1
Date distributed (ymd): 020213
Document reposted by Africa Action
Africa Policy Electronic Distribution List: an information
service provided by AFRICA ACTION (incorporating the Africa
Policy Information Center, The Africa Fund, and the American
Committee on Africa). Find more information for action for
Africa at http://www.africaaction.org
+++++++++++++++++++++Document Profile+++++++++++++++++++++
Region: Continent-Wide
Issue Areas: +political/rights+ +economy/development+
SUMMARY CONTENTS:
Among rich country leaders, British Prime Minister Tony Blair has
taken the lead in calling for increases in development aid, opening
Western markets to African imports, support for the "New
Partnership for Africa's Development" framework presented by
African leaders, and greater attention to addressing global
and African poverty. In meetings of the G-7 Finance Ministers and
other fora, British Chancellor of the Exchequer Gordon Brown has
delivered the same message.
This message, contrasting to the indifference to Africa displayed
by Blair's and Brown's counterparts in Washington, won applause on
Blair's recently completed trip to West Africa. But commentators
also raised many hard questions about British policies.
This posting contains excerpts from the pamphlet Tackling Poverty:
A Global New Deal, published this month and based on recent
speeches by Gordon Brown.
A related posting also sent out today contains (1) a critical
analytical commentary from African scholar Mahmood Mamdani, (2) a
statement by Tanzanian civil society groups on the $40 million sale
to Tanzania of a militarily capable radar control system from the
UK firm BAe, and (3) several additional links with commentary on
the Blair trip and related issues.
+++++++++++++++++end profile++++++++++++++++++++++++++++++
Tackling Poverty: A Global New Deal
A MODERN MARSHALL PLAN FOR THE DEVELOPING WORLD
A pamphlet based on the speeches by the Rt Hon Gordon Brown MP,
Chancellor of the Exchequer to the New York Federal Reserve on 16
November 2001 and the Press Club, Washington D. C. on 17 December
2001
HM Treasury, February 2002
[Brief excerpts only; for a PDF file of the 41-page pamphlet, see
http://www.hm-treasury.gov.uk/mediastore/otherfiles/globalnewdeal.PDF]
And there is now growing agreement that as we work together to
fight terrorism we must also work together to address the causes
of poverty--not just because to do so is central to long term
national security and peace, but because to do so is right--a
moral imperative, an economic necessity and a social duty.
...
Managed badly, globalisation could leave whole economies and
millions of people in the developing world marginalised. Managed
wisely, globalisation can, and will, lift millions out of poverty
and become the high road to a just and inclusive global economy.
So the real issue is not whether we are against globalisation: it
is whether we are for social justice.
...
But whatever our concerns about the sheer scale of the challenge
of globalisation, we must resist two opposite temptations: the
first is to retreat into the outdated protectionism and
isolationism that would deprive developing countries of what they
need most -- development itself; the second is to recycle the old
laissez-faire that says there is nothing that can be done. To
succumb to either temptation would hurt both the powerless and
the prosperous.
...
As different understandings of the world economy converge, we are
moving towards a new paradigm in which low inflation and fiscal
stability are the necessary but not sufficient conditions for
securing prosperity for all. ... From the foundation of
stability, a modern strategy for prosperity involves a
concentration on what brings not just low inflation but
sustainable development. And we must now recognise as important:
* the pursuit of competition and not just privatisation; * the
importance of public as well as private investment; and * the
need for proper financial supervision as well as liberalisation,
including a route map sequencing the liberalisation of capital
markets.
...
A strategy for prosperity for all requires us to combine policies
for economic success and social justice and to tackle the causes
of poverty. And this has led countries, international
organisations and non- governmental organisations to sign up to
the historic shared task of setting and meeting eight Millennium
Development Goals. The United Nations (UN), International
Monetary Fund (IMF), World Bank, OECD, G7, G20 and all major
developed and developing countries have signed up to the goals
of:
- eradicating extreme poverty and hunger by halving, between 1990
and 2015, the proportion of people whose income is less than one
dollar a day and the proportion of people who suffer from hunger;N
- achieving universal primary education, by ensuring that, by
2015, children everywhere, boys and girls alike, will be able to
complete a full course of primary schooling;N
- promoting gender equality and empower women by eliminating
gender disparity in primary and secondary education, preferably
by 2005, and to all levels of education no later than 2015;N
- reducing by two thirds, between 1990 and 2015, the under- five
mortality rate;N
- improving maternal health by reducing by three quarters,
between 1990 and 2015, the maternal mortality ratio;N
- combating HIV/ AIDS, malaria and other diseases;N
- ensuring environmental sustainability, including halving by
2015 the proportion of people without sustainable access to safe
drinking water and by 2020 to have achieved a significant
improvement in the lives of at least 100 million slum dwellers;
andN
- developing a global partnership for development.
...
There are four building blocks of this global new deal.
The first building block is an improvement in the terms on which
the poorest countries participate in the global economy and
actively increasing their capacity to do so: new rules of the
game in codes and standards that all countries--rich and poor--
can sign up to.
The second building block is the adoption by business
internationally of high corporate standards for engagement as
reliable and consistent partners in the development process. My
main proposal is to back up a code of corporate standards with
support for the creation, in developing countries, of investment
forums between public and private sectors.
The third building block is moving forward the great progress
made at Doha by the swift adoption of an improved trade regime
essential for developing countries participation on fair terms in
the world economy.
Stability, investment and trade are the main long term drivers of
global prosperity but not all will benefit without a fourth
building block: a substantial transfer of additional resources
from the richest to the poorest countries in the form of
investment for development. Here the focus must not be on aid to
compensate the poor for their poverty, but investment that builds
new capacity to compete and addresses the long term causes of
poverty.
And there is an urgency for action.
America's post- Second World War achievement in what we now call
the Marshall Plan should be our inspiration in this post--Cold
War world--not just for the reconstruction of Afghanistan but for
the entire developing world.
The plan proposed by the US Secretary of State George Marshall
transferred one per cent of national income every year, for four
years, from America to Europe--in total the equivalent in today's
money of $75 billion--not as an act of charity but as a frank
recognition that like peace, prosperity was indivisible; that to
be sustained it had to be shared; and that to achieve this goal
would require a new public purpose and international cooperation
on a massive scale.
...
II. Rules of The Game
The first building block is improving the terms on which the
poorest countries participate in the global economy and actively
increasing their capacity to do so.
In a world of ever more rapid financial flows, developing
countries who need finance most are, at the same time, the most
vulnerable to the judgements and instabilities of global markets.
We know that capital is more likely to move to environments which
are stable, and least likely to stay in environments which are,
or become, unstable. And we know that in unstable economies,
poverty rises.
So for every country, rich or poor, macroeconomic stability is
not an option but an essential pre-condition of economic success
and the fight against poverty. It is in the interests of
stability, and of preventing crises in developing and emerging
market countries, that we seek a new rules-based system. And such
a rules- based system depends on there being clear rules, proper
transparent procedures for decision- making and well understood
systems of accountability.
...
III. Investment
Open, transparent and accountable national policies,
internationally monitored, are the foundation for macroeconomic
stability. But we must also do far more to ensure growth and
development by taking steps to promote and raise domestic and
foreign investment--and by finding better ways for public and
private sectors to work together in raising investment levels.
In the last decade, foreign direct investment flows across
national boundaries--including to, and between, developing
countries--have increased four-fold. And evidence shows that such
investment is an important driver for growth and development
generating higher productivity, employment and wealth, and
transferring knowledge, skills and technology.
But the poorest and least developed suffer a double handicap.
Foreign direct investment is too low, with investment per head in
developing countries just $35 compared with $805 in the higher
income countries. In sub-Saharan Africa foreign direct investment
is even lower at $12 per person. In addition domestically
generated savings and investment are low, with savings that do
exist often leaving the country.
...
IV. Widening and Deepening Trade
In the last forty years those developing countries which have
managed to be more open and trade more in the world economy have
seen faster growth rates than those which have remained closed.
From the early 1970s to the early 1990s, developing countries
that were able to pursue growth through trade grew at least twice
as fast as those who kept their tariffs high and their doors
closed to imports and competition. We must ensure that all
countries have the opportunity to reap these benefits.
Full trade liberalisation could lift at least 300 million people
out of poverty by 2015. Even diminishing protection by 50 per
cent in agriculture and in industrial goods and services would
increase the world's yearly income by nearly $400 billion: a
boost to growth of 1.4 per cent. All countries and regions stand
to benefit, with developing countries gaining an estimated $150
billion a year and higher than average increases in GDP growth.
...
V. Financing for Development
... there cannot be a solution to the urgent problems of the
poverty these countries face--and to the need for public
investment as a partner with private investment--without a fourth
reform: a substantial increase in development aid to nations most
in need and willing to focus on the fight against poverty.
... [debt relief, effectiveness of targeting aid, better use of
funds received, new sources of finance (inlcuding Tobin Tax, Arms
Tax or Special Drawing rights)]
We in Britain approach further evaluation of all these proposals
with an open mind.
But in the end, it all comes back to the duties national
governments--especially the richest national governments--
recognise and are prepared to discharge. If the international
community is to move with the urgency that the scale of today's
suffering demands, we must each, as national governments, be bold
and acknowledge the obligations of the richest parts of the
developed world to poorest and least developed parts of the same
world.
One proposal for additional resources involves the richest
countries making a substantial additional commitment of resources
to 2015 and beyond. And there is a case for adding to these
resources by examining a further option. Through richer countries
making a long-term commitment of increased resources for
development for, say, 30 years and with national governments
offering a guarantee--either through callable reserves or
appropriate collateral as security--then additional aid
contributions could be levered up in the years to 2015 to meet
our target for extra funds.
In this way $50 billion more could be available each year to the
poorest countries in their fight against poverty. In future no
country genuinely committed to economic development, poverty
reduction, and transparency and proper standards should be denied
the chance to make progress because of a lack of investment.
There should, of course, be a full discussion on how the extra
resources could be most effectively employed.
...
VI. An Action Plan for the Global New Deal
For if we are to achieve a global new deal for the developing
world we must agree a shared responsibility for the task--setting
out the practical steps each partner must take. So developed and
developing countries, international institutions, the private
sector and non-governmental organisations and faith groups all
need to work within their powers and responsibilities to ensure a
greater effort is made to guarantee a new global deal. Our joint
responsibility must reinforce not diminish accountability for the
outcome. And each of us have to discharge specific
responsibilities.
...
(a) Developed countries
We first call upon all the developed countries to work together
to:
- move forward on debt relief, in particular to renounce the
right to any benefit from the historic debt owed by the HIPC
countries;N
- ensure the successful resolution of the new 'development' trade
round, including by negotiating reductions in agriculture export
subsidies with a view to phasing them out, by all countries
granting duty and quota-free access to developing countries for
all exports except arms and by financing capacity building in
developing countries so they can participate fully and
effectively in the forthcoming negotiations;N
- improve aid effectiveness through untying; better coordination
and a greater focus on poorest and best performing countries; andN
- significantly increase the overall aid effort, considering a
broad package of measures to achieve this including the support
for the $50 billion increase in investment aid.
(b) Developing Countries
A sound domestic environment is the foundation of poverty
reduction and sustained economic growth enabling countries to
make effective use of aid and harness the private sector finance
in development. We therefore call upon the developing countries
to:
- adopt new codes and standards for transparent management of
fiscal and monetary systems;N
- strengthen the accountability of their public financial
management systems so as to eliminate corruption;N
- develop, strengthen and implement fully comprehensive and
costed national poverty reduction strategies; andN
- establish business environments to facilitate growth in private
investment, including the creation of investment forums.
(c) International institutions
The United Nations and other international institutions have a
central role to play in bringing our efforts together and
supporting developing countries. ...
(d) The private sector
Long-term investment is critical for growth and development.
There needs to be a new engagement by business as reliable and
long-term partners in economic development. We therefore call
upon the private sector to:
- work with developing countries to increase investment, in
particular through participation in national and regional
investment forums to share best practice, examine current
barriers and seek to build consensus for necessary actions; andN
- increase stakeholder awareness to achieve cross-border
accountability, in particular by applying agreed international
standards of best practice for multinational companies and by
assessing and reporting on their economic and social impact
through such initiatives as the Global Compact and the Global
Reporting Initiative.
(e) Non-governmental organisations and faith groups
NGOs and faith groups around the world campaign to end poverty
and injustice and their support for the Millennium Development
Goals is vital. We therefore call upon the NGOS and churches to:
- ensure developed and developing countries, businesses and
international organisations are held accountable for progress
towards the Millennium Development Goals;N
- raise public awareness and campaign regarding the outrage of
child poverty and the need for urgent action on the Millennium
Development Goals, including progress on poverty, debt, trade and
social justice; andN
- assist developing countries in developing and implementing
community-driven national poverty reduction strategies.
VI. Conclusion
After 1945, George Marshall's plan for the reconstruction of
Europe played a vital part in winning the peace. As a result,
both Europe and America flourished, with increased prosperity and
employment helping to create a more stable peace.
And just as, with extra resources, Marshall affirmed a unifying
vision in the fight against "hunger, poverty, desperation and
chaos," so again today we must transfer the resources necessary
to secure for our time "a working economy in the world so as to
permit the emergence of political and social conditions in which
free institutions can exist." In this way, we will not only
win the peace but secure prosperity.
The challenge is immense but--in the spirit of Marshall--the
answer is not to retreat from globalisation. Instead we must
advance social justice on a global scale, to the benefit of all--
and do so with more global cooperation not less, and with
stronger, not weaker, international institutions. If the
worldwide debt campaign has taught us anything it is that we
advance only if we advance as one.
Our vision of the way forward is that in an increasingly
interdependent world, all can benefit if each meets agreed
obligations for change. This global new deal can ensure that the
world's poor can share fairly in the benefits of prosperity
throughout the world and is grounded in the belief that not only
do we have inescapable obligations beyond our front doors and
garden gates, responsibilities beyond the city wall and duties
beyond our national boundaries, but that this generation has it
in its power--if it so chooses--to finally free the world from
want.
N
This material is being reposted for wider distribution by
Africa Action (incorporating the Africa Policy Information
Center, The Africa Fund, and the American Committee on Africa).
Africa Action's information services provide accessible
information and analysis in order to promote U.S. and
international policies toward Africa that advance economic,
political and social justice and the full spectrum of human
rights.
|
