INTERNATIONAL

In the good old tradition

By Gamal Nkrumah

The years grind on. First it was Bandung, and the birth of the Non-Aligned Movement in 1955. Then in the 1970s there was the Group of 77, a mottled patchwork of dissimilar and very often disagreeing nations, united only in their determination to make a collective mark in the international economic arena. And now the G-15, a select pack -- made up of Algeria, Argentina, Brazil, Chile, Egypt, India, Indonesia, Kenya, Malaysia, Mexico, Nigeria, Peru, Senegal, Sri Lanka, Venezuela and Zimbabwe -- appointed to lobby on behalf of the G-77 grouping.

It is hard not to think of the G-15 as yet another mill in the mould of NAM and the G-77, to which all that is nostalgic and emotional is grist. Over the years NAM, in the words of Malaysian Prime Minister Mahathir Mohamed, slowly fossilised into an obsolete "dinosaur."

The Cold War, which gave birth to NAM, ultimately caused the grouping to splinter into rival pro-Soviet and pro-Western factions. To some extent the fragmentation was actually a gain. Member states played one super-power against the other and hoped to gain an advantage -- be it economic, military or political. And the entire concept of Third World solidarity inevitably became something of a practical joke. The years dragged on, and the notion of the long-suffering, yet resilient and optimistic "South," as the antithesis of the decadent and decaying "North," foundered. The North got richer and richer, and the gap between rich and poor widened perilously; the notion of a persevering South began to wear depressingly thin.

It is within this context that the G-15 was established in 1989 at the end of the Cold War with the collapse of the former Soviet Union. The G-15 emerged in the age of all-pervasive globalisation and incontestable Pax Americana. Small wonder that topping the agenda of the 10th G-15 summit, convened in Cairo on 19 and 20 June, were economic and trade issues pertaining to the pernicious repercussions of globalisation. By all accounts, the Cairo G-15 summit was no ground-breaking landmark event. But it was a necessary step in the excruciatingly long march toward the "realisation of a fairer new world economic order," as President Hosni Mubarak succinctly put it.

It is all a very different affair from the first time leaders from the newly independent nations of Africa and Asia met in Bandung. Bandung was about national liberation and raising the voice of the formerly colonised peoples in the international arena. The G-15 is essentially about economic emancipation for the peoples of Africa, Asia and Latin America and the "establishment of a fair international economic system," as the final communiqué made abundantly clear.

The G-15's final communiqué expressly stated the determination to see "a more harmonious and prosperous world economy in which the developing countries overcome the challenges of size and opportunities created by globalisation." The G-15 leaders gathered in Cairo stressed their wish that "the international community [redress] the asymmetries and imbalances in the global economy."

Concern was also voiced about the growing protectionist tendencies in the North and the Western governments' ploy of persistently introducing non-trade issues at forums for multilateral trade negotiations. The G-15 leaders urged the opening up of labour markets in the industrially advanced nations of North America, Europe and Japan, and urged the freer movement of labour between the post-industrialised, highly-industrialised and developing and underdeveloped worlds. Closing the North's doors to the South's labour contrasts sharply with Western attitude concerning the liberalisation of capital markets.

The G-15 leaders also called for the cancellation of the debts of the world's poorest nations: "We welcome all the initiatives for the Heavily-Indebted Poor Countries [HIPC] launched by the Group of Seven, the World Bank and the IMF. However, the HIPC initiative and the enhancement thereof, with their various conditions, are not sufficient to contribute effectively to national efforts at eradicating poverty." Nigerian President Olusegun Obasanjo warned that African countries "set aside around 40 per cent of their budgets to service [their debts]." As a sign of the times, during the fifth meeting of the ministers of trade and economy of the G-15 on 15 June, Egypt's Ambassador Mounir Zahran, the chairman of the Governing Council of the Committee on Investment, Trade and Technology (CITT), urged the promotion of intra-G-15 trade through e-commerce. In an unprecedented move, G-15 economy and trade ministers agreed to create a G-15 electronic trade network. A task force of technical experts from Malaysia and Egypt are to submit a report on the modalities of establishing such a network. The G-15 summit underscored the critical importance of integrating development strategy in an increasingly interdependent world. It stressed the importance of liberalisation of trade in textiles and agricultural produce. It tried to expunge memories of past failures to better the South's lot. Cynics might dismiss the G-15 summit as just hot air. But its efforts should be examined with every extenuating circumstance before a verdict is issued. In the final analysis, perhaps the G-15 is yet another rendition of Bandung. So be it -- it is all grist to the mill.

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.

G-15 Summit 19-20 June, Cairo; the conclusions and recommendations:

At the International Level:

Globalization should ensure: development with less poverty and deprivation, raising of standards of living with less disparity among nations; integration of all developing countries into the international economy on a fair and equitable basis; economic growth with less environmental destruction; democratization of international relations and respect for and promotion of all human rights, including the right to development;

We affirm the central role that the United Nations and its Agencies play as we strive for closer cooperation and solidarity among developing countries so as to realize higher standards of living for our peoples; A revitalized United Nations should provide a forum for promoting global development with equity and human face; in this context, there should be full implementation of the Declaration and Programme of Action of the Copenhagen World Summit for Social Development with special emphasis on the needs of developing countries in regard to employment, education, vocational and technical training, and mobilization of resources for social development as a whole. New sources of financing should be mobilized for poverty eradication;

The IMF should act effectively and in the interest of all countries, including in crisis situations; and in particular we call for equitable representation and participation of developing countries in international decision making and standard setting processes in the multilateral institutions, including the reform of the international financial system;

The World Trade Organization (WTO) must ensure fair international trade and take full account of the interests of developing countries particularly through the implementation of Special and Differential treatment provisions; developing countries should be assisted in strengthening their capacities to make full use of the WTO dispute settlement mechanism such as through the Advisory Center on WTO law. Non-trade issues such as labour standards, proposed by some developed countries, shall not be introduced in, or linked to the WTO Agenda;

Donor countries should accelerate their efforts in providing debt relief and should attain the objectives for Official Development Assistance (ODA) of 0.7% of their GDP.

Adoption of urgent and effective measures to eliminate the use of unilateral coercive economic measures against developing countries not authorized by relevant organs of the United Nations or inconsistent with the principles of international law as set forth in the Charter of the United Nations;

We reiterate the call of the South Summit for the United Nations to commence preparatory work for the elaboration of a Convention on prevention of corruption and illegal transfer of funds;

We recognize and support the call by several developing countries for the urgent need to re-examine the deepen current debt relief strategies to encompass effective debt relief and write-off of their debt, so as to ensure sustained economic growth and sustainable development;

At the Regional Level:

Intra-regional cooperation amongst developing countries should be intensified and, in this context, G-15 financial institutions should seek to strengthen regional and subregional cooperation in order to promote intra G-15 trade and investment;

Intra G-15 trade should be promoted and should include, as appropriate, the operationalization of preferential treatment, including GSTP, to facilitate trade among G-15 countries with the support of UNCTAD and the International Trade Center (ITC);

G-15 and other developing countries should strengthen the institutional framework of their cooperation in order to ensure effective coordination of their positions and strategies in international fora;

Regional and intra-regional cooperation and coordination should take place among developing countries through their groups, such as the G-77, G-24, and G-15 with a view to strengthening their dialogue with the G-8 and other industrialized countries in order to ensure the consistency and universality of economic policy measures and the design and implementation of an improved international financial architecture;

We strongly support the efforts which are exerted towards concluding a just and comprehensive peace in the Middle East so that all the States of the region could devote their human and material resources to social and economic development;