Fair Trade, Debt Relief and Aid Crucial to Eradicate Poverty

"Ameliorating the plight of Africa will be an important item on the agenda of the G8 Summit." Winston Cox

Ameliorating the plight of Africa will be an important item on the agenda of the G8 Summit, says Commonwealth Deputy Secretary-General Winston Cox. He said the meeting should take advantage of the recent wave of public support to deliver practical outcomes for urgent action. Mr Cox made this point in a speech at the High Level UN Economic and Social Council meeting in New York on 1 July 2005. It was focused on achieving internationally agreed development goals, including the Millennium Development Goals (MDGs).
 
The Deputy Secretary-General stated that he was encouraged by the G8's commitment to a 100 per cent write-off of the multilateral debt of all Highly Indebted Poor Countries in addition to an increase in overseas development assistance (ODA). The G8 meeting is being held in Gleneagles, UK, from 6 to 8 July 2005.
 
"We have the know-how and the resources to make poverty history; Gleneagles should provide the will. Industrial countries must follow through on their commitments to increase ODA and to fund debt forgiveness. Developing countries need to improve governance and remain committed to social and economic policies that target poverty reduction and promote participation and equity, including gender equity," said Mr Cox.
 
Increased aid flows, he added, should be accompanied by improved public financial management, accountability and transparency. The harmonisation of aid procedures will reduce administrative burdens on recipients and strengthen effectiveness of assistance.

"If we agree on a more development-friendly international trading system, that would be the single most important contribution to achieving the MDGs that we could make. To do so, trade negotiations must be driven by fairness and need rather than by might and influence."
 
The Deputy Secretary-General stressed that all countries must act together in negotiating rules for international trade that put development at the head of the agenda. He said debt relief and aid should be complemented by free trade, with G8 and other developed countries opening up their markets to the products from poor countries.
 
"Countries that can sell their goods and services at competitive prices in the international market can also pay their debts. Countries with improving terms of trade will grow out of poverty, will transform their economies and will experience increasing levels of economic participation. Countries with unfavourable terms of trade will enjoy none of these benefits. They will sink further into poverty and all that accompanies it. Increasing trading opportunities are the most potent means of combating global poverty."
 
Mr Cox reiterated the call of Commonwealth Heads of Government for the early phasing out of all forms of export subsidies, substantial reductions in trade-distorting domestic support and significant improvements in market access.
 
"All World Trade Organisation agreements must also ensure that special and differential treatment takes full account of supply-side constraints faced by developing countries and the need to mitigate the social costs of adjustment. There has to be political commitment at the highest level to ensure that there is no disconnect between development co-operation priorities and trade negotiating positions. Leaders cannot promote development while trade negotiators practise mercantilism."

Related Websites:

• United Nations Millennium Development Goals
• G8 Gleneagles 2005