On Tuesday, the Transatlantic Taskforce on Development released their first-ever report. The Taskforce – the only one of its kind – brings together individuals from the United States, Canada, and Europe, representing governments, NGOs, and the private sector, to discuss global development issues. The Taskforce was assembled by the German Marshall Fund (GMF) of the United States and the Swedish Ministry of Foreign Affairs; ONE’s Executive Director, Jamie Drummond, is a member of the 24-person Taskforce.

The Taskforce’s report presents policy ideas on which North America and Europe can collaborate in order to pursue a broad development agenda, even in the face of the current global financial crisis. The authors laud past moments of international consensus around development – like the Millennium Development Goals (MDGs) – but are adamant that without spurring economic growth in developing countries, and meeting Official Development Assistance (ODA) and trade commitments, recent gains in combating poverty are likely to be reversed.

Meeting the funding commitments previously made to developing countries – and demonstrating that aid does work – is particularly essential in light of the global financial crisis and the threat of decreased development assistance. As the report notes, “It will be increasingly vital to continue to demonstrate that aid actually works, and to show results and impact. A clear message of how the development agenda is linked to the interests of those in developed countries must be repeated and reinforced.”

The Taskforce report provids policy recommendations in four areas in which transatlantic cooperation is necessary for achieving global development goals. It emphasizes that the policy environment in which development takes place must be based on trust and inclusion among developed and developing countries, and encourages policy coherence between North America and Europe. The following is from the GMF press release on the Taskforce meeting:

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Hey, if you’re already planning to buy any chocolate, flowers, or wine for Valentines Day, consider buying Fair Trade. Check out this note we got from TransFair USA below.

-Margaret McDonnell, ONE NGO Partnership Coordinator

This Valentine’s Day, it is easier than ever to show someone you care with gifts that benefit farming communities around the world. Fair Trade Certified flowers, chocolate and now wine are available in retailers nationwide and online.

Fair Trade Certified flowers are already helping ensure that flower workers like Nancy Segovia of Agrogandera, a flower plantation in southern Ecuador, receive fair wages, a safe work environment, paid vacation, maternity and sick leave and access to child care.

Fair Trade Certified cocoa is helping the farmers of the Kavokiva cooperative in the Ivory Coast to fund scholarships and school supplies for members children, build a healthcare center and establish a women’s literacy program.

Fair Trade Certified wine is helping wine producers like Marie Malan to move from her previous position as a domestic servant to the esteemed position of Farm Manager at Stellar Organics, an award winning organic vineyard in South Africa.

By choosing Fair Trade Certified products you are directly supporting a better life for farming families through fair prices and just labor conditions, direct trade, community development and environmentally sustainable farming practices.

This Valentine’s Day, pledge to make all of your purchases Fair Trade Certified and encourage your family and friends to do the same. As a special bonus, our friends at 1-800-Flowers are offering 15% off your next purchase of a Fair Trade Certified bouquet to everyone who takes the pledge. Forward this message to family and friends and they can receive the gift too. To take the Fair Trade Valentine’s Day pledge and forward a beautiful Valentine’s Day eCard to your loved ones, click here.

To find out more about where you can find Fair Trade Certified flowers, chocolate and wine in stores and online please visit our beautiful “Fall in Love with Fair Trade” website.

Thank you and Happy Valentine’s Day!

-James Guzzi, TransFair USA

Part of our ongoing Obama Transition series, examining different sectors of US global development policy. Check out the document we delivered to President Obama’s transition team, and be sure to follow the ONE Blog for further updates on the new administration’s work on global development:

One of the key elements of poverty alleviation in poor countries is the ability to earn resources that can be channeled into basic needs. By exporting their products locally, regionally, and globally, African producers, farmers, and entrepreneurs can earn a living, provide for their families, and contribute to economic growth. Currently, Africa has the lowest share of global trade – at approximately two percent. Now is the time for the Obama administration take action to make trade work for Africa by prioritizing trade policy that encourages development and levels the playing field for African producers.

One example of U.S. trade policy for Africa is the African Growth and Opportunity Act (AGOA), which lowers or eliminates tariffs on African products exported to the U.S. This special access to the U.S. market can help African businesses to take off. In order to better take advantage of AGOA benefits, programs like the four “trade hubs”, created by the African Global Competitiveness Initiative (AGCI), assist African producers in navigating the U.S. business arena including understanding U.S. customs laws, finding buyers, and getting assistance with pricing and marketing. Niche-market exports like flowers, shea butter, and specialized apparel, in particular have benefitted from both access to the U.S. market and technical assistance through the trade hubs. The trade-hubs cost little to operate and since 2005 have generated an additional $60 million in exports to the U.S.

In the short-term, the Obama administration can showcase their commitment to trade by initially providing a total of $65 million in fiscal year 2009 to these programs, an additional $20 million over the 2008 funding levels of $45 million. With an additional funding infusion of $30 million in fiscal year 2010, a total of $95 million will enable USAID to implement the trade hub program in Senegal, Ghana, Kenya, and Botswana, in addition to expanding the model to another three countries.

Trade policy must be well-integrated with development policy in order to fully utilize the power that trade has to unlock the economic potential in poor countries. Tariffs and subsidies hinder access to new markets, and poor countries need better infrastructure facilities, technology, and resources to meet the demands of the global market. We recommend that the Obama administration align trade policy with development goals, and fund a significant new trade and development initiative. More specifically, we are calling for the expansion of AGOA to cover all products and all African countries for another ten years, the creation of a $100 million small and medium enterprises (SME) fund that will ensure access to capital and technical assistance for entrepreneurs and small businesses in the developing world, and commit to a comprehensive aid for trade package that helps Africa meet the challenges of expanding to new markets.

A comprehensive approach to trade and development that will help Africans sell more products on the global market, address Africa’s supply-side challenges, and spur economic growth in the region, can make a significant impact on poverty in the developing world.

-Beth Adler

After heading back from the Financing for Development conference in Doha, ONE’s Berlin-based Policy Manager Andreas Huebers pulled together an analysis of what the final outcomes could mean for Africa and other developing countries. Some excerpts of his analysis are below and the full policy brief is available here.

Although the final outcome document from Doha was not as ambitious as ONE had hoped, the “Doha Deal” struck on the last day of the conference does contain some important language on ONE’s core issues and opens the way towards a strengthened follow-up-process for financing the Millennium Development Goals.

Some positive outcomes of the deal include the following:

• Aid promises: Pledges on aid quantity and quality were weakly reaffirmed. The historic commitments made in Gleneagles to increase ODA by $50 billion globally (with $25 billion of that increase dedicated to Africa) were repeated in a contorted way, by welcoming the Hokkaido-Summit declaration that the G8 are “firmly committed to working to fulfill these commitments”.
• Innovative finance: The outcome document mentions existing mechanisms such as Advanced Market Commitments (AMCs), IFFIM and the air ticket tax.
• Trade and investment: The final document recognizes that development assistance can play a catalytic role in mobilizing private flows. On trade, it reaffirms “special and differential treatment” of developing countries and urges countries to reach agreement by the end of the year on modalities for the Doha Development Round of trade negotiations. It also calls for timely and full implementation of aid for trade commitments as a complement (not a substitute) to the conclusion of the Doha Round.
• Tax evasion and capital flight: The outcome document requests that the UN’s Economic and Social Council make a proposal on this issue. The World Bank’s Stolen Asset Recovery Initiative (StAR) is mentioned in general language and the document calls for additional measures to prevent transfer of stolen assets from developing countries to accounts in the developed countries.
• External debt: The “Doha Deal” mentions a “debt restructuring mechanism based on existing frameworks and principles,” (which can be interpreted as the continuation of the debt negotiations in the creditor-driven Paris Club) and also speaks of “joint responsibility for debt sustainability.”
• Role of developing countries in shaping a global response to the financial crisis: Participants agreed to hold a high-level UN conference in 2009 on the financial crisis and its impact on development. Many other decisions (such as a strengthened follow-up mechanism) were pushed to spring 2009, and a follow-up conference in 2013 is being considered.
• Role of emerging donors: The document includes very general language on South-South cooperation and calls on “new donors” to adhere to principles of aid effectiveness.

The conference was also used to kick off a couple promising new initiatives- the UK launched its Aid-for Trade Strategy and announced that it will spend £400 million annually on aid for trade by 2010. The international task force on innovative financing for health met for the first time and decided to have the next meeting in the spring in London. Germany, Pakistan and the Global Fund also signed a debt2health agreement, through which Germany will cancel $40 million of Pakistan’s debt and Pakistan will contribute $20 million to the Global Fund. Subsequently, the Global Fund will increase their financing of health programs in Pakistan by that amount.

-Andreas Huebers

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

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

As we reported earlier, October is Fair Trade Month. Erin Gorman, who works at Divine Chocolate, wanted to share some information about their organization and what they’re doing to make trade fair.

-Chris Scott

Happy Halloween! As you plan your costume and celebrations, here’s something delicious to consider: chocolate can help end poverty. Fair Trade chocolate that is. The best news: anyone that eats chocolate can play a part in making change happen.

I have been blessed to have a job that affords me the opportunity to share this good news and great chocolate with people everyday. Divine Chocolate (where I work) is a farmer-owned Fair Trade chocolate company. The 45,000 cocoa farmers that are members of Kuapa Kokoo Farmers’ Cooperative receive a guaranteed Fair Trade price and a social premium that is invested in community projects like schools, clean water, and training to help women start small businesses for additional income. As owners of their own chocolate brand, they receive a share of the profits, a say in the company, and have a seat at the table of global trade.

For the farmers of Kuapa Kokoo and other small-scale farmer cooperatives in the Fair Trade system, the extra money received from Fair Trade enables them to invest in the future – the future of their children and communities. Their investments are not dissimilar to the investments that you and I make. Their aspirations are similar to our own. Fair Trade helps to level the playing field to make it possible to realize those aspirations in a marketplace where farmers and consumers work together to create conditions of respect and dignity.

And it can all start with a bar of chocolate.

There’s no time like now to get started on a chocolate crusade against poverty.

1) Commit to making the chocolate you purchase Fair Trade. Check out TransFair USA’s website to find a list of companies including Divine Chocolate selling Fair Trade chocolate (www.fairtradecertified.org)
2) Ask for Fair Trade chocolate. When you shop, wherever you shop, ask the store to stock Fair Trade chocolate.
3) Raise money with chocolate. Divine Chocolate offers a fundraising program that helps organizations interested in raising funds and promoting Fair Trade. Check it out at www.divinechocolateusa.com
4) Spread the word. Send this post to the chocolate lover in your life.

Good luck with your Halloween costume. Perhaps you could go as a Divine Chocolate bar…

-Erin Gorman

I’m a new addition to the policy team here at ONE and will be sharing the latest happenings from the world of trade, agriculture, and economic development with you. To start, I came across some exciting news about trade in Africa. Last week 26 African countries agreed to establish an African Trade Union – a free trade union that will assist in eradicating poverty in the region.

The Union is a merger between three of Africa’s trading blocs – the Common Market for Eastern and Southern Africa (COMESA), South African Development Community (SADC), and the East African Community (EAC). The union incorporates a significant portion of eastern and southern Africa; it includes 530 million people and has an estimated GDP of over $620 million.

This free trade union will provide the participating countries with easier access to new markets within Africa. Rather than paying taxes like tariffs on the goods countries export, or limiting the amount of goods they export because of quotas, countries within the union will be able to freely exchange goods with each other. The new, larger union will also give the member countries greater leverage in trade discussions with developed countries.

The opportunity for these African states to gain greater access to African markets, and to collaborate on infrastructure development like transport and communication systems – while advocating for Africa in the global market – are important steps towards eradicating poverty. As Ugandan President Yoweri Museveni commented at a meeting of the heads of state who chair the three merging trade blocs, “Bigger markets are a strategic instrument of liberating people from poverty.”

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Like much of the world, Africa is concerned about the financial crisis and making moves to soften the potential blow to Africa’s economy and well-being. Yesterday, the African Union announced that they are planning a summit to discuss the continent’s response to the global financial crisis. They also “urged member states to tighten their belts to help them withstand the impact of collapsing world markets.” We’ll keep you posted on developments.

Excerpts below, full piece here

“There is no doubt it will have serious repercussions on capital flows and their sustainability, as well as on trade in Africa,” [African Union Commission chief Jean] Ping said of the global financial turmoil.

The financial crisis also may reduce donors’ development aid budgets, Ping said while attending the Sixth Forum on Sustainable Development which opened in Congo Republic’s capital Brazzaville.

African economies generally have been growing at their fastest pace for years thanks in part to booming Asian demand for their commodities exports and rising foreign investment.

But with a global economic slowdown and some developed economies tipping into recession, the International Monetary Fund trimmed its growth forecast for sub-Saharan Africa to 6 percent in 2008 and 2009 from about 6.5 percent in 2007.

-Chris Scott

As you may know, the month of October is National Fair Trade Month. David Funkhouser of TransFair USA sent us this great post explaining Fair Trade Month and what you can do to participate:

TransFair USA celebrates National Fair Trade Month every October—an annual month-long Fair Trade promotion begun in October 2004, involving thousands of retailers and a broad network of non-profit and student groups, faith-based and community organizations, even entire municipalities (Fair Trade Towns). This year’s theme, The Faces of Fair Trade, highlights the farmers and workers who are the primary beneficiaries of the Fair Trade system.

Fair Trade supports economic development for farming families and sustainable development for our planet’s future, and, in a few words, this is how it works: Importers of Fair Trade Certified™ products (coffee, chocolate, tea, bananas, sugar, rice, flowers, wine) pay a premium price to growers and farm workers who produce goods under rigorous standards that guarantee workers’ rights, community empowerment, and environmental sustainability. Fair Trade Certification empowers farmers and farm workers to lift themselves out of poverty by investing in their farms and communities and developing the business skills necessary to compete in the global marketplace. Since 1999, sales of Fair Trade Certified products in the U.S. have generated more than $110 million in supplemental income for farmers in Latin America, Africa, and Asia.

We consumers are a vital link in the Fair Trade model—every Fair Trade purchase we make is a vote for a better world. Behind every cup of Fair Trade Certified coffee or tea, bar of chocolate, or bouquet of roses are faces of producers and workers, and our purchases make a difference in their lives. We hear it in their voices: “My job on the flower farm allows me to look toward the future and imagine a better life for my family….Women can achieve as much as men…. Thanks to Fair Trade the whole community has benefited from the programs we have implemented.”

Join us —tell friends and family—and help build a better world!

-David Funkhouser, TransFair USA