New global equilibrium<\/p>\n
The World Bank and International Monetary Fund (IMF) annual
\nmeetings ended in Dubai last week with an increasingly urgent
\ncall for more equality between rich and poor countries -- a more
\nequitable global system.<\/p>\n
This message was a surprise indeed as it came from two
\nmultilateral institutions where the voting power is based on the
\nsize of share ownership and is, consequently, always controlled
\nby the developed countries.<\/p>\n
However, those closely monitoring the proceedings of the
\nmeetings would have expected such conclusions because the tone of
\nthe conference had clearly been set by World Bank President James
\nD. Wolfensohn in his opening speech.<\/p>\n
Wolfensohn reiterated the urgent need for a new balance
\nbetween developed and developing countries on aid and trade, a
\nnew global equilibrium. He called for more concerted efforts by
\nthe developed countries to help reduce extreme poverty in the
\ndeveloping nations, warning that peace and prosperity in the
\nworld would be sustainable only with a more equitable global
\nsystem.<\/p>\n
It was not simply a coincidence that Indonesia's President
\nMegawati Soekarnoputri conveyed a similar message to world
\nleaders in New York last week. Addressing the UN General
\nAssembly, Megawati warned essentially that injustice in the
\nglobal system was one of the root causes of terrorism.<\/p>\n
There is virtually nothing new in Wolfensohn's message, nor in
\nMegawati's warning. The developing nations have been fighting
\nsince the mid-1970s for a similar course, which was then
\nalternately called either a new world order or new economic
\norder, to correct what they criticized as a grossly inequitable
\nglobal system.<\/p>\n
However, these latest warnings purveyed a stronger sense of
\nurgency, especially in view of the collapse of the recent Cancun
\ntrade talks held as part of the Doha round of global trade
\nnegotiations under the World Trade Organization (WTO).<\/p>\n
Finance ministers from developing countries who addressed the
\nmeetings in Dubai referred to the Millennium Development Goals
\n(MDGs), notably those in cutting absolute poverty by 50 percent
\nin 2015, and contended that no progress had been made since the
\nlaunching of the MDGs in 1990.<\/p>\n
The World Bank chief drove the message home in a harsher tone
\nwhen he pointed to the irony whereby the developed countries
\nannually gave only US$56 billion in development assistance to the
\ndeveloping nations, but at the same time spent US$300 billion on
\nfarm subsidies and $600 billion on defense.<\/p>\n
It is indeed imperative now for the developed countries to
\nincrease their overseas development assistance (ODA) to achieve 1
\npercent of their gross domestic product, the minimum level set
\nmore than three decades ago. More financing is required to
\nachieve the MDGs, which include universal primary education, a
\nreduction in child mortality, improvements in maternal health and
\nenvironmental sustainability.<\/p>\n
However, much more important than mere financing, the
\ndeveloping nations need more market access, which in the MDGs is
\ndefined as a global partnership for development.<\/p>\n
This is what the developing nations have been striving for
\nsince the launching of the Doha round of trade talks in 2001.
\nHowever, as the WTO conference in Cancun earlier this month
\npainfully showed, the developed countries have yet to demonstrate
\ntheir commitment to true global partnership with the developing
\nnations.<\/p>\n
True, aid is necessary to help accelerate the development of
\nphysical infrastructure and human resources in developing
\nnations. Likewise, market access is essential to help poor
\ncountries sell their products to gain better earnings. But they
\nare not enough to achieve the MDGs in poor countries.<\/p>\n
The developing nations need to put up their share by
\nimplementing reforms, building good governance, establishing
\nsound macropolicies and enhancing people's participation in the
\ndevelopment process.<\/p>\n
Experience has shown that development aid, market access and
\npolicy reform always interact and reinforce each other in the
\ndevelopment process.<\/p>\n
Hopefully, the strong message from the World Bank-IMF meetings
\nin Dubai will serve as another wake-up call for the international
\ncommunity to be more determined to promote a true global
\npartnership, fully realizing that all its members are in one
\nboat, in an interdependent world.<\/p>\n
_____________<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/new-global-equilibrium-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }