Archive for November, 2008
On Saturday, world leaders pledged to shore up global growth, avoid protectionism and move quickly on regulatory reform. Presenting a united front, leaders from both developed and developing nations promised to take “whatever further actions are necessary to stabilize the financial system” and vowed to “use fiscal measures to stimulate domestic demand to rapid effect, as appropriate”. World leaders also pledged to ensure that developing nations caught up in the crisis have access to dollar finance. They said they would review the resources available to the IMF and other institutions.
Trade negotiators will step up work for a new global pact following a call from the weekend’s G20 summit, but have not agreed on a date for ministers to come to Geneva to seek a breakthrough, diplomats said on Monday. A meeting of about 30 key WTO ambassadors agreed negotiators must still narrow the gap on a range of technical issues before trade ministers can follow up that clear political signal with any chance of success.
As they attended this weekend’s summit, one by one, the leaders of big emerging economies made a single point again and again: no longer will the world’s financial rules be set just by a club of rich countries. That the summit was of the group of 20 emerging and industrialized countries, not the G7 or G8, was itself an indication of the shift in power – as was the fact that the future meetings in the process will also occur in the G20 format. Moreover, the summit agreed to throw open to emerging economies the membership of all the key groups that frame the rules of global finance. “We are talking about the G20 because the G8 doesn’t have any more reason to exist,” said Luiz Inácio Lula da Silva, Brazil’s president. “In other words, the emerging economies have to be taken into consideration in today’s globalised world.”
G20 leaders insisted the call for a breakthrough by year-end in the troubled Doha round of trade talks represented real progress, but gave no signs of specific concessions needed to reach a deal. The summit is the latest in a long string of heads of government meetings to promise prompt action on Doha. The G20 agreed not to impose new protectionist measures for the next 12 months. Officials believe there are signs of movement to resolve the dispute between India and the US over agriculture, the sticking point when the previous meeting of trade ministers collapsed in July.
-Chandler Smith & Steve Wilson
Nov 17th, 2008 5:36 PM UTC
By Field
Organizers of this year’s New York City marathon braced for a massive toilet incursion. The New York Times reported that the marathon would haul in 2,250 toilets into the city for race day—requiring more than 80 six-axle trucks, tens of thousands of dollars in rental fees, and a gaggle of 16,000-gallon tankers to suck them dry afterwards. Spread out evenly over the 26.2 mile distance, that’s an average of 86 toilets per mile. Why? Because, as the event organizers knew, toilets are a big necessity.
UK-based journalist Rose George would have agreed. On October 22, she visited Washington, DC for an event co-sponsored by PATH and Water Advocates and spoke to a crowd of 70 at the Equality Center about her new book, The Big Necessity: The Unmentionable World of Human Waste and Why It Matters. As a series of stories that collectively highlight the plight of the 2.6 billion people in the world who do not have access to a toilet, the book also showcases the world’s “toilet crusaders” and the solutions they are employing to address the problem in their own countries. She describes these individuals in many of her recent interviews, including on Chicago Public Radio.
Lack of toilets causes some of the world’s most (more…)
Former secretary general of the UN, Kofi Annan, yesterday published an op-ed in the International Herald Tribune with some reflections about this past weekend’s G20 Summit and how to best move forward. He notes how the financial issues discussed at the summit are particularly relevant to Africa.
Excerpts below, full piece here
Events of the past few months have again underscored that no single country or small subset of countries, even the most powerful or wealthy, can manage the forces unleashed in our globalized world. The Washington meeting potentially represents the beginning of an era of unprecedented cooperation for concerted action on other equally pressing issues, such as climate change, food security and poverty reduction.
The current crisis comes as Africa struggles to maintain this positive momentum after a year of rising food prices and unprecedented volatility in fuel costs. Food and fertilizer are punishingly unaffordable for consumers and farmers. Recession and slowdown in high-income countries, as well as China, India and the Middle East, are resulting in plummeting commodity prices and exports, reduced remittance flows and decreases in foreign direct investment.
African leaders face an almost impossible challenge: how to protect their fragile economies and vulnerable people from global recession at a time when their revenues are decreasing. Maintaining levels of public investment is the basis for political stability and achievement of the Millennium Development Goals. Inability to do so could have profound consequences – in terms of unemployment, poverty and social and political tensions.
-Chris Scott
This past Tuesday, a group of African finance officials met in Tunis to discuss the impacts of the global financial crisis on the continent and strategize about how to address the likely consequences. The meeting was a call to action from the African financial community to the leaders attending the G20 summit to put the concerns of the developing world on the agenda for the meeting, which begins tomorrow in Washington, D.C., and to consider Africa’s dire situation when addressing the financial crisis. As we’ve outlined in previous posts, for many African countries the financial crisis could mean an increase in poverty and inflation, a decrease in economic growth, and a deepening of the food and fuel crises already gripping the continent.
ONE’s Edith Jibunoh in Nigeria has sent along a few highlights from the communiqué issued at the meeting which detail important points for this weekend’s G20 summit and the upcoming Financing for Development conference in Doha.
- Ministers said that the financial crisis is undermining Africa’s progress made in the last ten years and, along with the impact of climate change, will hamper countries’ abilities to achieve the Millennium Development Goals. They also expressed concern for the impact the crisis would have on trade and investment.
- On trade, the ministers urged a successful conclusion of the Doha Round of global trade negotiations, especially considering the spillover of the financial crisis to trade. They promised do their part by taking steps to improve the supply capacity in African countries through enhancing competitiveness, building infrastructure, and promoting greater economic integration within Africa. Ministers also promised to deepen their economic reforms and strengthen structures of governance and accountability.
- The Ministers also emphasized the importance of the international community keeping their commitments to Africa to improve aid quality, consistent with the Paris Declaration and Accra Call to Action. They asked that the F4D conference in Doha endorse these issues and reiterate their commitments.
- Finally, the participants asked South Africa to convey their views at the upcoming G20 meeting, although they stressed that one country representing the continent was not a substitute for inclusive African participation. They called for “new multilateralism” that fully reflects current realities and ensures the proper representation of all countries.
ONE will be bringing you information about the outcome of the G20 summit next week, so be sure to check back here.
-Beth Adler
Here are a handful of articles we rounded up about this weekend’s G20 summit:
The Economist looks at this weekend’s G20 meeting, saying that while the rules of the global financial system cannot be rewritten in a five-hour powwow, some useful things can come out of the meeting, such as commitments on trade and on reforming the IMF.
Ban Ki-moon has appealed to leaders meeting at a financial summit in Washington this weekend not to let the global crisis become a “human tragedy” for people in poor countries. In a letter to leaders of the G20 Ban said, “The poorest and most vulnerable everywhere, but particularly in the developing countries, will be the most affected” by the world growth slowdown now being predicted. We need most of all to join forces to take immediate action to prevent the financial crisis from becoming a human tragedy.”
In Great Britain, Gordon Brown has called for a new international financial architecture, citing the Bretton Woods conference in 1944 as an example. The Bretton Woods agreement, which resulted in the creation of the IMF and World Bank, is particularly relevant today as we address the “need for global policy co-ordination in tackling” this financial crisis.
The New York Times editorial board today examines some of the challenges that confront the G20 during America’s presidential transition. The Times champions the need for all the participating 20 of the world’s leading economies to reach fundamental agreements as a platform to “begin a serious discussion about the roots of the financial crisis and set the stage for future meetings to discuss substantive reforms.”
-Steve Wilson and Chris Scott
Yesterday, we wrote about this weekend’s G20 Summit in Washington, DC that will give an opportunity for world leaders to discuss the current financial crisis. Bob Geldof, organizer of Live Aid and Live 8, and a founding inspiration of the ONE Campaign, published an op-ed in the Financial Times asking the G20 to remember the world’s poorest as they forge ahead with decisions and proposals that will affect all of us.
Excerpts below, full piece here
For those in Africa who live in the world’s hardest circumstances, this crisis can seem academic. Yet there is a threat that they will be overwhelmed by a new wave of poverty, just when there had been the beginnings of real sustained economic change. While Africa is sheltered from the immediate impact of the crisis because of its relative isolation from the global financial system, it will be buffeted by the after-shocks: falling demand for exports, slowing capital flows, reduced remittances, sluggish growth and the threat of development aid drying up.
The food and fuel crisis knocked the poor off their knees; the financial crisis threatens to kick them when they are down. This must not be allowed to happen. Instead the crisis offers a moment of opportunity. When financial vested interests are weak and laisser faire fundamentalism on the ropes, there is a chance to finally live up to the oft-broken commitment to the poor while also regulating the more irresponsible sides of capitalism.
Just as the crisis has been international because of globalisation, any new reforms will also need to be international. As Robert Zoellick, president of the World Bank, has remarked, a modernised multilateralism must put global development on a par with international finance. The next round of globalisation must be one where economic opportunities and responsibilities are more widely shared.
-Chris Scott
Nov 13th, 2008 2:14 PM UTC
By Field
A few weeks ago Dallas recording artists Tru Sounz and D Flo learned about The ONE Campaign and immediately wanted to get involved and join us in the fight to end global poverty. Of course, being the creative musicians that they are, they were naturally motivated to write a song to show their support.
They joined the SMU ONE Campus Challenge and approached me with the song concept that was “inspired by the millions of people suffering from poverty.” I thought this was an incredible idea to raise more awareness because music is such a great way to reach large audiences, and this would help SMU earn a few points in the ONE Campus Challenge, too!
After a lot of hard work “Act Now” was finished, posted on their website, and it’s gaining popularity. Their fans were so positive and responsive to the message in the song – they emailed in saying that they signed the declaration and even bought ONE t-shirts and wristbands. A few days later, Seattle Seahawks player Trent Shelton called Tru Sounz and said that he heard the song and wanted to be a part of it as well! Trent flew to Dallas on his day off this week and recorded the remix to show his support.
I am thrilled that “Act Now” has had such a positive response and I know that it will continue to spread ONE awareness as they have posted it on their website and have committed to performing it at their upcoming shows.
I am so grateful to have them as members of the SMU OCC and can’t wait to see where the song takes us from here! I know it is already making a difference! Thanks guys, amazing job!
Check out their website, to listen to the song and look out for upcoming shows!
-Andrea Netti
