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Look what's not on the menu
By Julio Godoy

PARIS - The summit of the Group of Eight (G8), to take place on June 1-3 in the French Alpine city of Evian, will not fulfill its own agenda, independent observers say. They point out that it will, in fact, fail to address some of the pressing issues of environment, development and health facing the global economy.

The meeting, which will bring together the heads of state and government of Britain, France, Germany, Italy, the United States, Canada, Japan and Russia, was expected to address all these issues. However, negotiations prior to the summit have downgraded the agenda, which now will be focused almost exclusively on the so-called "war on terror", the observers said.

On environmental issues, preparatory meetings held in Paris in late April abstained from unequivocal statements that would enhance maritime transport safety of dangerous chemical substances, especially heavy oil. Under pressure from Japan, the G8 environment ministers lifted the ban on single hull frame oil tankers to serve as carriers of chemical substances. Japan also opposed the strengthening of legal responsibility of ship owners.

For Helene Ballande of the environmental organization Friends of the Earth, Tokyo's opposition "only reflects Japan's economic specific interests, such as the defense of its ship manufacturing industry, and its heavy dependence on imported oil. The Japanese government wanted to weaken every commitment the G8 environmental ministers intend to take on maritime transport," Ballande said.

Similarly, on health issues, says the French daily Le Monde, "the original G8 plan of action to improve the access of the world's poorest countries to medicaments has been downgraded." The newspaper says the French government had prepared an ambitious declaration for endorsement by the G8, drawing attention to "the global hygienic crisis and the critical situation" arising from the lack of low-cost medicine in Africa, Latin America and Asia.

The initial French position also referred to the Doha Declaration, issued during the World Trade Organization (WTO) summit in November 2001 in Qatar. It called for "an integrated framework to improve access to medical treatment and medicine" in the poorest countries of the world.

This integrated framework would include the boosting of local medicine production in the countries of the south, and the transfer of technology from highly developed to developing lands. "But the US government rejected this original statement, leading to a downgrading of the health issue in the G8 agenda," Le Monde claimed.

Instead, Washington came out with its own proposal, which dismisses the notion that "the price of medicaments may be the principal obstacle to an improvement of health". The US proposal also underlines the "importance of a powerful private sector's role" in health questions.

According to Le Monde, the French government accepted the US objections, "surely aiming to avoid new tensions [between Paris and Washington] as those provoked by the war against Iraq, and which would endanger the summit of Evian".

The new so-called Plan of Action for Health to be discussed by G8 "pays tribute to the pharmaceutical industry, makes no reference to the Doha Declaration, to the local production of medicine or to the transfer of technology".

For Jean-Herve Bradol, president of the French organization Doctors without Borders, the downgrading of the health issue on the agenda of the G8 summit "is a very bad news". "Three years ago, the G8 meeting at Okinawa fixed ambitious objectives to reduce the spread of AIDS," Bradol told IPS. "Since then, the number of AIDS victims has increased."

The accusations that private interests are misusing the G8 summit go further. The G8 will also boost the privatization of water in the countries of the south, critics of the summit claim. According to Corporate European Observatory (CEO), a watchdog organization based in Amsterdam, the European Union Water Fund, to be presented at the G8 summit in Evian "seems more about corporate welfare than helping the world's poorest".

Indeed, water will also be a top issue on the G8 agenda in Evian. French President Jacques Chirac is preparing a Global Water Plan and European Commission President Romano Prodi will launch the EU Water Fund. The latter is based on proposals made by a panel mostly financed by private multinationals managing water resources all over the world, such as the French companies Suez Lyonnaise des Eaux, and Vivendi. It is directed by former International Monetary Fund director Michel Camdessus.

Last March, the panel issued a report, titled "Financing Water for All", also known as "The Camdessus Report", which openly advocates for the so-called "full cost recovery" of private investments in water.

This means that the governments in the poorest countries of the world would guarantee the private investments in water infrastructure, either by means of rising water tariffs, or by subsidies, in case users cannot pay the high water prices. Camdessus is not only the chairperson of the panel financed by private water multinationals, but also Chirac's personal representative for development in Africa.

Olivier Hoedeman of CEO told IPS, "Confidential documents show how the European Commission has worked in tandem with Suez and other giant water corporations in developing its international water initiatives." Hoedeman recalled that EU officials had maintained intensive communication with private water companies' executives, so as to design a common strategy to force countries in Africa, Latin America and Southeast Asia to open their water services to privatization.

"In early April, the European Commission released a first proposal for a new 1 billion euro (US$1.17 billion) fund for water investments in 77 developing countries in Africa, the Caribbean and the Pacific (ACP), all former colonies of EU member states," CEO says in a paper analyzing the EU strategy for water privatization.

The EU claims that its fund "should be able to give a very flexible answer to a variety of situations, providing the missing link in the financing of sustainable projects/activities. The need for a fund of this kind is obvious, but the EU proposal seems heavily influenced by the Camdessus report," Hoedeman said.

"While mostly shrouded in ambiguous wording, the fund proposal clearly suggests providing public finance to private water corporations wanting to run water delivery in the south," he added.

Ballande also called the Camdessus Report "a proposal to guarantee private water companies that their investments in Africa, Asia, and Latin America will always be lucrative, despite the market situation". He said the G8 had abandoned plans for a "Charter of Principles for a Responsible Market Economy", which would formulate the basis for so-called ethical corporate governance.

According to Ballande, both the US and the British governments opposed the charter, and pressed instead for a new investment agreement under the WTO to favor private multinationals. "This new investment agreement would secure more rights to multinationals to take developing countries to court if these countries try to improve the situation of national enterprises," Ballande said.

The new investment agreement reminds of the so-called and highly controversial project of the Organization for Economic Cooperation and Development (OECD), the "Multilateral Agreement on Investment (MAI)" that aimed to enhance the legal rights of private multinationals.

Discussed in secret sessions at the OECD in 1997, MAI plans were unraveled by non-governmental organizations in Canada and in France. Bowing to public protests, both countries' governments withdrew their support for the plan, bringing it down.

(Inter Press Service)
 
May 30, 2003



 

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