Economic Development Crucial to Peace And Stability, Says Commonwealth Secretary-General
29 July 2004
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| Commonwealth Secretary-General Don Mckinnon speaking at the Royal College for Defence Studies |
Economic development can contribute greatly to peace and stability, apart from politics and diplomacy, said Commonwealth Secretary-General Don McKinnon at a speech delivered at the Royal College of Defence Studies in London, UK, on 23 July 2004.
The Secretary-General said: "Sound economic development and strong trade relations can prove powerful ingredients of stability and antidotes to conflict. If the stability of your economy and the well-being of your population depend on trading with your neighbour, you will think twice about going to war with them."
But Mr McKinnon stressed that trade will only work as a force for peace if it is fair. He pointed out that many developed countries have failed to remove trade barriers unlike their counterparts from the developing world.
"In precisely those sectors where developing countries have a comparative advantage such as agriculture and textiles, developed countries have protected themselves through both tariff and non-tariff barriers, and extensive systems of domestic subsidies resulting in dumped exports."
The Secretary-General said developed nations can help developing countries by giving the latter access to their markets. He cited World Bank estimates that more than 140 million people could be lifted out of poverty by 2015 if the developed world opened up their markets to products from the developing world. Mr McKinnon said Commonwealth trade ministers recognised that a breakthrough in agriculture is crucial for the successful conclusion of the Doha Development Round.
"Rich countries must realise that opening their markets to the developing world and lowering trade subsidies is in everyone's interest. Phasing out subsidies would reduce the real cost of products to consumers in the developed world. The money governments would save on subsidies could be invested in health, education and public services and could also translate into lower levels of taxation."
The Secretary-General emphasised that cutting subsidies and allowing developing countries to trade their way out of poverty would bring more stability to the world.
"Real progress will only be achieved if all players show political courage and commitment to negotiate in good faith. Living in an interdependent world, we must recognise that tackling global poverty is not only a moral imperative, but also a political one. We can't make the world more stable and more secure if we don't start by making it more just."
Mr McKinnon explained how the Commonwealth has been promoting development in member countries through the Commonwealth Fund for Technical Co-operation (CFTC). Some of the projects include advising governments on how to attract investment to exploit natural resources. CFTC experts helped the Government of Namibia to negotiate agreements with international oil companies for offshore exploration projects worth over US$100 million. Through a Debt Recording and Management System, the Secretary-General said CFTC has helped Commonwealth countries to manage debt flows and improve transparency. He noted that the Commonwealth Private Investment Initiative helped to raise more than US$200 million for projects in developing member countries in Africa, the Caribbean, the Pacific and South Asia. The Commonwealth also helped 500 young people -- three-quarters of whom were women -- to set up their businesses by providing training and brokering funds. More than 6,000 public officials also benefited from training in managerial skills to improve delivery of public services.
Mr McKinnon concluded: "It is up to us to make sure that tomorrow's world will not be worse than today's. I believe the Commonwealth is ideally placed to play a part in that process."
View the full text of the speech
CNIS - the Commonwealth News and Information Service Issue 194 28 July 2004
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