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Trade and globalisation

15/12/2000
Eliminating World Poverty: The British Approach.

The New White Paper from the Department for International Development Argues that Globalisation has a Key Role to Play but Developing Countries need more Influence.

While living standards continue to rise for many, more than a billion people on our planet live in extreme poverty. This is the essential starting point for the new White Paper from the British Department for International Development (DFID) entitled 'Eliminating World Poverty: Making Globalisation Work for the Poor' launched by Prime Minister, Tony Blair on the 11th December 2000.

It is a measure of the importance the British Government attaches to international development. Since being elected in 1997, the Labour Government has increased Britain's commitment to international development, strengthened the DFID and increased its budget. Its prime focus is now on meeting the internationally agreed target of halving the number of people living in extreme poverty by 2015. Other targets include universal access to primary education and primary healthcare.

The White Paper sets out the actions that the Department intends to take in partnership with governments, business, civil society and with multilateral agencies such as the World Bank, the United Nations, and the European Commission. The elimination of poverty was "the greatest moral challenge facing our generation" said Prime Minister Blair.

The Department is clear about the contribution that globalisation and world trade can make to tackling poverty and believes that the protesters who went to Seattle in 1999 and Prague earlier this year demanding the abolition of the World Trade Organisation (WTO) were simply wrong.

When poor countries appear to be disadvantaged by world trade, it argues, the answer is not to scrap the WTO but to ensure that trade rules work for all. Without a rule based trading system the powerful countries can bully the rest it concludes.

But DFID do acknowledge that the WTO needs reform; as a first step they intend to secure more effective participation from developing countries in order to ensure that trade standards actually serve development.

In her foreword to the White Paper, International Development Secretary Clare Short said that we now had an unprecedented consensus; the international system had been mobilised to meet clear targets and meeting those targets should become the focus of "our joint endeavours."

She stressed that what happened in the future was a matter of political will: massive progress or growing poverty depended on our decisions. "Cynicism and negativism are the enemies of progress" she said - "but when people see that progress is possible the demand for reform and advance is energised."

Besides commitments to halving poverty and providing access to education and healthcare, other important development targets addressed in the White Paper include moves towards gender equality, reductions in child mortality rates and the implementation of national strategies for sustainable development in order to halt current environmental degradation. Existing patterns of production and consumption are placing enormous strains on the eco-systems of the planet, it says.

Another key area is education: the gap between rich and poor arises more than anything from the knowledge and education available to each. The causes of poverty are many and complex, implies the White Paper, but it's now accepted that education is the quickest way out of it. Moreover, research suggests that investing in girls is the single best strategy for development any country can make. This analysis leads to the UK's aim of ensuring that no government committed to universal primary education should be unable to achieve this goal for lack of resources.

But the existing educational divide could be compounded by a digital divide, it warns, unless action is taken. It notes that 80% of the world's population has no access to reliable telecommunications and that there are more computers in New York than in the whole of Africa. Unless such disparities can be addressed there will continue to be difficulties in attracting investment and integrating in the global economy, it says.

Arguing that such globalisation - the integration of countries and peoples in one global economy - cannot be stopped, it says that globalisation offers by far the best prospect to help countries to eliminate poverty. But globalisation does need to reflect the needs of poorer countries as well as the rich ones.

Globalisation must be managed properly says the White Paper so that it does not become merely the survival of the biggest and most powerful. The fastest growing developing countries where poverty has fallen most rapidly such a those in East Asia, have been those promoting exports. The UK therefore intends to continue to support an open and rules based international trading system while working to promote equitable trade rules and an effective voice for developing countries.

Another way in which developing countries can benefit from globalisation is through direct investment from overseas. But while transnational companies want to invest - they also want to know that is a safe proposition. More effective systems of government are needed, corruption needs to be rooted out and armed conflict reduced through tighter control of arms trafficking.

One proposal sure to be controversial is to give UK courts jurisdiction over UK nationals who engage in bribery overseas. Companies may argue, where corruption is endemic, that this will just see British firms lose business, - unless some international code can be adopted.

If globalisation is to be made to work for the world's poorest countries, development assistance and relief from debt will inevitably continue to be required. Here the UK has led international efforts for faster and more substantial progress on debt relief.

There is also a pledge that Britain will provide more money in development aid. This will reach 0.33% by 2003/4 with more money going to low income countries. Moreover, aid will no longer be 'tied' to the purchase of goods from UK suppliers. Even so the UK still falls short of the UN development aid target of 0.7% of Gross National Product - a figure reached only by four countries - The Netherlands, Denmark, Sweden and Norway.

Finally DFID stresses the importance of political will to achieving results and considers how best to promote this. Progress is greatest when ordinary people are demanding political, economic and social change, it says, indicating a more active role for civic society both in developed and in developing countries. "Governments will act when they feel the heat from their people" says the Department and pledges that it will work with others to build an effective, open and accountable international system, in which poor people and countries have a more effective voice.

 

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