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telelogo4.jpg (7056 bytes)   Kathmandu,Wednesday, 20 November 2002

I N T E R N A T I O N A L


World Summit:
Strategies For the Future

-By Joachim Wille, Germany

As so often in the past, Nelson Mandela found just the right words. During his first appearance at the World Summit on Sustainable Development, the former South African president declared that "global apartheid"' had to be brought to an end. He said the increasingly deeper division of the world into rich and poor was a scandal the magnitude of which could only be compared with the inhuman segregation of races that had existed in his own country until 1994. And where better, asked Mandela, could be impetus for ending this form of apartheid come than from South Africa?

People had extremely high expectations of the World Summit on Sustainable Development, which met in Jo'burg, South Africa's gold metropolis, between August 26 and September 4, 2002. Ten years after the conference in Rio, the now legendary United Nations Earth Summit, participants at the immense follow-up meeting gathered to take stock and agree on a fresh start. After all, it had become clear to everyone, not only the 60,000 summit participants from 190 countries, that the promises about solving the globe's economic and ecological problems, made in the euphoric atmosphere following the end of the Cold war, had not been kept.

The end of climate change? No chance. Emissions of greenhouses gases have risen by 10% despite the Convention on Climate Change agreed at Rio. Has there been a slowdown in species loss and deforestation?/ No way. Life supporting systems are being burdened to their critical limits, and some of these are already being exceeded. A third of the World's population live in countries that suffer to some extent from serious water shortages: large numbers of people have no access to clean drinking water. And these figures are increasing. Disputes about the distribution of water resources could even become possible grounds for wars in the future. Bad news is also arriving about the oceans. They are not only being detrimentally affected by the discharge of effluent: all the world's 17 major fishing grounds are now considered overfished. "Nature's capital is disappearing fast", declared Klaus Topfer, executive director of the UNEP. And former German environment minister.

Yet while many people in the industrialized countries viewed Rio and Jo'burg as "environmental summits, the majority of participating countries were primarily concerned with economic development, with their equitable participation in the wealth created in an increasingly networked economy. "People in the developing countries are fed up with broken promises", said Topfer. As a tireless negotiator he played a major role in the breakthrough at the Earth Summit ten years ago, but he has had to observe the rollback that has occurred as a result of an almost uncontrolled globalization process in the decade since. He explained that we can no longer afford to "just make beautiful speeches". This was also the position taken by the German federal government in the negotiations. Federal environment minister Jurgen Trittin stated: "Countries must agree on firm targets and timetables for achieving them. Voluntary projects alone are not enough.

At the beginning of the Jo'burg summit, the situation appeared to be totally deadlocked. Three important groups of nations with different interests confronted one another: the EU, which is relatively progressive on environmental issues; the more conservative countries grouped around the United States, Australia and Canada; and the developing countries in the G77 and China group, which are primarily concerned about reducing poverty and gaining access to world markets. Washington in particular increased the strain on the negotiations in Jo'burg because it proposed increases in US agricultural subsidies to record levels in a new Farm Bill—against the spirit of the recent WTO meeting in Doha, Qatar. Ministers in Doha had agreed to seriously examine and reduce these subsidies, which damage the environment and distort trade relations.

The "Countries of the South" criticize the fact that subsidies enable agricultural produce from the North to be sold cheaply on world markets because these products not only destroy their agricultural exports to gain access to the industrialized nations' markets. The scale of indignation was shown in Jo'burg by the demonstration of South African sugar-cane farmers. They empties hundreds of packets of sugar onto the road near the luxurious Sandton Conference center. They argue that sugar produced from European sugar beet is sold so cheaply that their domestic product can no longer be profitably grown. As a result, the trade issue dominated—and partially blocked—at least the first half of the World Summit. For days, the United States, and also a number of European countries, resisted the attempts of the G77 to have a firm commitment on subsidy reductions written into Jo'burg documents.

Within the EU, countries with large agricultural sectors prevented the adoption of a more progressive position, like that favored by Germany. Eventually, however, the ministers and other delegation heads in Jo'burg managed to achieve a compromise that facilitated advances in other areas. The World Summit reaffirmed the agreement reached in Doha, which, according to Federal environment minister Trittin in an interview on the outcome of the summit, "satisfied the developing countries". The Doha Declaration envisages the solution of the subsidy issue by mutual agreement by the year 2006.

In Jo'burg, Federal Chancellor Schroder's clear and explicit commitment to reducing these billion euro figures was seen as a signal to the world community. " Free, unhindered access for the developing countries to the global markets is at least as important as financial aid"'. This also implies the dismantling of market-distorting agricultural subsidies," said the federal chancellor in his September 2 address, which attracted a great deal of attention.

Even during the sometimes-dramatic disputes on trade questions it began to become clear that another blockade, although threatened, would not come about. The US applied a principle that it insisted was inviolable at Jo'burg preparatory conferences: namely, that it would not accept any new state targets. It was thus something of a sensation when the summit agreed to restore the ocean's fish stocks by 2015 by, for example, establishing protection zones and setting fishing quotas. Nevertheless, Washington was able to push through the restrictive additional phrase "If possible". Although this diminishes the actual success, it still opened the door for further official "state targets". Thus, for example, consensus was reached on significantly reducing the decline in biological diversity by 2010 and stopping the loss of natural resources "as soon as possible". A target year was also defined for chemical safety, which is to be increased to such an extent that chemicals are to have practically no health and environmental impacts by 2020.

Yet these battles were only "'preliminary skirmishes"'. As expected, the two main areas of the summit, water and energy, turned out to be much more difficult nuts to crack. Following arduous negotiations, a compromise was reached on each point, although, from the EU perspective, only the agreement on water can be considered acceptable. The proportion of the world's population that has no access to clean drinking water—today a total of approximately 1.2 billion people—and to waste water disposal—2.5 billion people--is to be halved by 20015. A concrete action program was agreed in this regard that aims to prevent roughly 6,000 people a day dying because they have to drink contaminated or polluted water. Enormous investments are required to achieve this ambitious target. Germany's federal ministry for Economic Cooperation and development estimates that such investment will have a total value of approximately 180 billion euros a year. The US also supported efforts in this area.

However, the US stood firm when it came to a concrete timetable for increased use of renewable energy, as demanded especially by the EU and a number of developing and threshold countries, led by Brazil. There is no timetable for the Jo'burg action plan: it only contains the nebulous formulation that renewable energy sources should be "substantially" increased with a sense of urgency. The EU had called for a 2% increase in the share of renewable energy sources in the industrialized countries by 2010 and a 1% increase worldwide. Brazil had demanded a global increase of 10%.

However, the EU and particularly Germany, which is playing a pioneering role in the use of wind and solar power, did not wish to simply accept this setback as a result of the "'dinosaur thinking"—as Germany's Development Minister Heidemarie Wieczorek-Zeul described it—of the US and the OPEC. Within a few days, the EU managed to convince some 100 countries from almost all continents to participate in a pioneering group. These countries—including among others, Norway, Brazil, Poland, the Czeck Republic, South Africa, Morocco and New Zealand—have agreed to lay down ambitious national and, if possible, regional targets for renewable energy use from which a global target could be developed in the longer term.

Germany also defined two key areas to develop its pioneering role in climate protection and alternative energy: Schroeder announced two cooperative projects with developing countries to promote energy efficiency and renewable energies. They will receive total funding of one billion euros. Additionally, in 2003 the federal government will be organizing a major international conference on alternative energies that aim to develop strategies for increasing their use. This initiative follows on from the much praised Bonn water conference of 2001, which drew up a kind of global blueprint for sustainable water supply.

A pioneering strategy is the only meaningful strategy. It has proven its worth in the case of the Kyoto climate protection protocol, the internationally binding treaty to reduce greenhouse gases. By setting ambitious national climate protection targets and proving that these are economically viable, countries like Germany and other EU member states have moved the difficult international negotiations forward. An appeal goes out from Jo'burg for those countries that have not yet ratified the protocol to do so. This is also not being resisted by the US, which declared its non-acceptance of the Kyoto Protocol in spring 2001.

The prospects of Kyoto coming into effect by the end of 2003 are now good. The world summit in Jo'burg has provided new impetus in this area. Russia announced that it would rapidly complete ratification. China and Canada also held out the prospect of their accession to the Convention—a major advance. If the ingenious mechanisms of the climate protection treaty function as planned, they will also boost development in the countries of the South. Northern nations can meet part of their reduction commitments through technical assistance in the South. And many anticipate that even the "dinosaurs" will then begin to stir.

The author is editor of the technology section of Frankfurter Rundschau. Text courtesy: Deutschland E4 N5/2002.October. Embassy of Germany in Kathmandu.


Commentary:
Ethics,  A highly rated value

Raphaelle Lucas, French Journalist

Consumers and shareholders in France seem increasingly aware of the notion of ethics. While some, the majority, are turning to alternative fair trade systems or joint financing, others are trying to persuade companies to adopt responsible practices in social and environmental matters—a recent, but promising, new awareness.

"Citizenship is less and less seen as a political activity in the strict sense, but as directed towards the economic and social sphere in order to exercise influence over these new centers of power. Today, to be a citizen (at least in the industrialized countries) is to be a consumer and/or a shareholder (99almost..) as much as a voter" considers Anne-Christine Habbard, Assistant General Secretary of the FIDH—the International Federation of Human Rights' Leagues. In fact, the French are, with increasing frequency, starting to turn responsible consumption. Thus, according to a survey by the polling organization, Ipos, in 2000, nine out of ten people declared themselves prepared tp favor fair trade products and 96% of them to pay more for the assurance of good social conditions. Another indicator is that at the time only 9% of the French were aware of fair trade; in 2001, 15% of them were.

Born of the wish to offer the small producers of the Third World a sustainable means of selling their products at a price that enables them to support themselves, especially by eliminating the middle-man, fair trade is based on a system of specialist shops and brands. The producers, working in a co-operative, are guaranteed minimum prices well above the world rates and the funds are reinvested in community services—schools, health centers, etc.

Thus in France, though more than ninety shops, the pioneer association Artisans du Monde sells high quality craft and food products produced in decent and environmentally friendly working conditions. This scheme runs alongside an educational program directed at consumers, who are persuaded to may 15% more for what they buy. While this alternative trade is still marginal in France, nonetheless its share is growing, especially with the distribution of fair trade products in the supermarkets, such as the coffees under the Max Havelaar label.

Creating a socially responsible label:; Anxious to operate within the traditional distribution system, Artisans du Monde, in 1995, launched the idea of a collective: De Fethique sur l'etiquette—ethics on the label—which now has fifty-three member associations and syndicates. Its objective? The creation of a quality label guaranteeing that the products comply with the agreed standards of the ILO (prohibiting the exploitation of children and forced labor, respect for the freedom to belong to a trade union, decent conditions of pay, non-discrimination, etc) at every link in the production and distribution chain. This would then be validated by independent inspections.

Six campaigns designed to inform consumers about the manufacturing methods and procedures of a great many items have already been organized and the idea of a social mark is gaining ground. While in 1995 no store group targeted by the collective had, according to it, made the slightest commitment, today fourteen have launched initiatives. The big stores Carrefour, Auchan and Monoprix have started talks and are experimenting in particular with methods of evaluating working conditions at some of their suppliers. Similarly, one hundred and thirty-six French communes are committed to favoring ethical public purchases.

Cleaner finances: In turn, shareholders recently seem to be increasingly sensitive to ethics and anxious to carry some weight in the matter; witness the flood of ethical investments, through which funds are invested in companies quoted on the stock exchange which meet environmental and ethical standards. Although the amounts of such managed funds remain low in France, the popularity of these ethical funds is growing: there are now almost fifty of them, which call for more transparent businesses.

Alongside this, the concept of joint financing is developing. This, for the investor, is a way of helping the unlisted companies whose products are also in the general interest. Thus support is given to projects aimed at the reintegration of people in difficulty or the development of marginalized areas, the creation of services of benefit to the community, sustainable development, etc. Brought together within the Finansol community, those involved in this alternative financing seek to bring together savers and entrepreneurs, workin toghether on equal terms. "Savers money is channeled to entrepreneurs through joint financial products", explained Henri Rouille d'Orfeuil, its president, at a symposium organized by the Center d' Etudes et de Recherches Internationales and the French Ministry of Foreign Affairs. Thus twenty-seven of them have now been granted the Finansol label. Thirty thousand savers also have an interest in it; which, in 2000, led to the creation of six thousand jobs.


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