IPS News [OPINION] - WHY THE DOHA CONFERENCE IS SO IMPORTANT (27 November 2008)
By Heidemarie Wieczorek-Zeul, Germany's Minister for Economic Cooperation and Development, Berlin, 27/11/08, (IPS/TVE): The Heads of State and Government, ministers and representatives of major international organizations will meet in Doha (Qatar) Nov. 29 to Dec. 2 to discuss financing for development. In my view, this conference is a big opportunity for the world community to pool all efforts and advance the global partnership for development. Against the backdrop of the current financial crisis the Doha conference is more important than ever.
Because of the lack of transparency and oversight, coupled with the greed to make profit, we are confronted today with the worst financial crisis since 1929. Speculation has not contributed to the stabilization of the financial markets – in fact just the opposite has happened. The radical market ideology has failed. Deregulation of the financial markets of developing countries is too dangerous for them because their structures are weak and their financial resources are scarce.
In the globalized world, financial flows and their impact does not stop at borders. The crisis, which began in the United States, is being gradually exported. We must therefore do our utmost so that people in developing countries, who are no the least bit responsible for the failure of the financial markets do not suffer. We must use the momentum and create international regulations. Above all, the financial markets must become transparent.
We cannot accuse states of the lack of transparency and at the same time leave investment bankers totally uncontrolled. There must be clear evidence which securities underlie a loan or a bond. The risk must not be veiled. There must be uniform international standards for the oversight of rating agencies. Long-term investment must be rewarded.
Especially in light of the financial crisis, the Financing for Development Conference in Doha must turn out to be a success. It is a question of political will. If it is possible to mobilise triple-digit amounts of billions for rescuing the banking system, it should also be possible for the international community to collect the necessary billions to rescue the world from poverty and hunger.
The Swedish peace research institute SIPRI has calculated that in 2007 more than 1,300 billion U.S. dollars have been spent on armaments. However, for development cooperation worldwide only 104 billion U.S. dollars are spent, less than one-tenth of the amount spent on weapons.
Nevertheless, it has been possible to halve the number of absolutely poor people since 1990. Life expectancy and school enrolment rates have also been increased significantly. The proportion of people with access to drinking water has risen 70 percent in 1990 to 83 percent. 2.2 million suffering from Aids are now being supplied with life-prolonging drugs, since the cost of treatment in developing countries has been reduced by 90 percent.
The quality of international cooperation is steadily improving. In September 2008, 80 partner countries, major donor countries and development organizations adopted the Accra Agenda for Action was adopted. This agenda is, in the aftermath of Rome and Paris declarations another milestone for improved division of labour, for a greater ownership of developing countries and for greater transparency and mutual accountability. We could achieve a broad consensus on the foundations for modern development cooperation.
If we could make the money spent on buying arms available for development, mankind could within a short period of time eradicate poverty, hunger and disease, maternal and child mortality and reduce extreme inequality between men and women - in short, we could achieve the Millennium Development Goals well before the stipulated years 2015.
The world community launched at the beginning of the new millennium with the Millennium statements the global partnership to secure the future. All 189 UN member states agreed that poverty eradication, peace, environmental protection, human rights and good governance are the key action areas of partnership. Through the Millennium Development Goals a binding target system was created: the Monterrey Consensus in 2002 laid down the criteria for funding the common objectives agreed upon. Since then, a lot has happened.
The G8 countries at their summit meeting at Gleneagles in 2005 committed themselves to increasing aid to Africa by 2010 to 25 billion U.S. dollars. As agreed among the EU countries, Germany will raise its ODA to 0.51 per cent of its gross national product by 2010 and 0.7 percent by 2015.
As a special envoy of UN Secretary-General for the Conference on Financing for Development, I have urged the industrialized countries to fulfil their commitments too. Because the challenges are enormous. Progressive climate change and the increase of food and commodity prices make the achievement of the Millennium Development Goals more difficult - and expensive.
In 2008, the poorest countries, the so-called Least Developed Countries have had to spend additional 50 billion U.S. dollars for buying oil output – that is more than what they receive by way development funds from the industrialized countries (28 billion U.S. dollars in 2006). Successes achieved and data comparisons make it clear: if we want to achieve the Millennium Development Goals, official development funds are the sine qua non and it must be increased. They are the best investment in a peaceful future. But they don't suffice.
Climate change alone calls for developing countries' additional funding requirements worth three billion dollars per year, according to estimates of the Secretariat of the Framework Convention on Climate Change (UNFCCC).
Those countries need these resources to be in a position to tread a low-carbon development path. They need the money to enable their cities, coasts and agriculture to adapt to a phenomenon for which not they but industrialized countries are responsible.
It is not only necessary to act in a spirit of partnership but also an imperative of justice to do so with a view to preventing international tensions. World Bank President Robert Zoellick is right when he repeatedly points out that climate change can only work if it is linked to a forward-looking development policy.
This requires innovative thinking and new tools. In Germany we are giving funds generated by emissions trading for climate protection in developing countries. I think this is a good approach, which deserves to be emulated. Because emissions trading tackles the climate problem at its root in that it limits the CO2 emissions by way of auctioning emissions certificates.
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Heidemarie Wieczorek-Zeul is UN Secretary-General's special envoy for the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus
Note: This op-ed is an unofficial translation of extracts from an article contributed by the German government minister to the November issue of GLOBAL PERSPECTIVES with the German title KOMMUNIKATION GLOBAL, IPS Europe's magazine for international cooperation available at www.global-perspectives.info (END)
