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WSSD-GERMANY: Gradual Increase in Aid Despite Havoc Wrought by Floods

by Ramesh Jaura


BERLIN, Aug 21 (IPS) - Chancellor Gerhard Schroeder - who is busy battling the damage wrought by Germany's worst floods in centuries - will attend the Johannesburg Summit next week and reaffirm the country's commitment to gradually increase financial assistance to the needy countries in Africa, Asia and Latin America.

The decision to take part in the World Summit on Sustainable Development (WSSD) was confirmed by Schroeder himself at a meeting with foreign correspondents Wednesday in the Chancellery in Berlin.

Unprecedented floods across the country are forcing the German Chancellor to seek effective and quick relief measures. At the same time, he is faced with an uphill task to win re-election on Sep 22.

Presently, Germany provides less than 0,3 percent of its gross national income (GNI) as official development assistance (ODA).

That is a far cry from the target of 0.7 percent agreed some three decades ago by the United Nations and reaffirmed by Germany and other rich countries at the 1992 Earth Summit in Rio. ODA was for a long time the main source of cash for the world's poorest countries.

Government spokesman Uwe-Karsten Heye told IPS that in his address to the Johannesburg Summit on Sep 2, the Chancellor would reaffirm Germany's commitment to gradually increase ODA.

Last March Germany joined other members of the 15-nation European Union (EU) that pledged, as a first significant step towards reaching the 0.7 percent target, to bring the average of ODA/GNI ratio to 0,39 percent by 2006. The EU provided a total of 26 billion dollar in 2001. This amounts to an average of ODA/GNI ratio of 0.33 percent.

The commitment made by the EU was to no mean extent because of the insistence of Germany's Minister for Economic Cooperation and Development, Heidemarie Wieczorek-Zeul. She attaches great importance to fulfilling the pledge given at the International Conference on Financing for Development in Monterrey last March.

''Johannesburg is not about new impressive concepts and objectives,'' she says. ''We already have a plenty of concepts and objectives. Johannesburg must put their implementation in the foreground. Johannesburg must turn out to be a world summit of action and binding action plans.''

These should encompass, she says, issues such as water, energy, health, agriculture and biodiversity, which according to UN Secretary-General Kofi Annan require urgent action at the WSSD.

Most countries have agreed to a set of ambitious targets for poverty reduction and sustainable development through the development goals contained in the UN Millennium Development Declaration two years ago.

Achieving the targets set for 2015 - including reducing extreme poverty by half and eliminating hunger - is a major challenge for all countries, says Wieczorek-Zeul. She and Environment Minister Juergen Trittin will jointly lead the German delegation with in the absence of Chancellor Schroeder.

The German Economic Cooperation Minister is convinced that increasing trade and investment liberalisation - accompanied by appropriate national policies to ensure social and environmental benefits as well as economic growth - are also of vital importance for sustainable development.

Equally important is the need to expand market access for some of the poorest countries that have been left at the margins of globalisation. Lack of capacity has to some extent prevented them from taking advantage of these opportunities, but the persistence of trade barriers in rich countries is also to blame.

According to the Paris-based Organisation for Economic Cooperation and Development (OECD), the gain to developing countries from unrestricted access to industrial country markets for textiles and clothing, other manufactured goods, and agricultural products could total 43 billion dollar per year.

''Gradually reducing these trade barriers could also increase the welfare of OECD citizens by lowering consumer prices, improving the allocation of resources and, in some cases, reducing pressures on the environment,'' says the OECD in a recent paper.

Efforts to remove trade distortions are being strengthened through the Doha Development Agenda of the World Trade Organisation. Other initiatives, specifically aimed to increase market access for products from the least developed countries, could complement this process, says the OECD.

For Wieczorek-Zeul it is a question of the credibility of developed countries. If they do not fulfil the pledges given at international conferences, developing countries would be justified in accusing them of ''double-speak''.

A case in point is that OECD countries together spend 360 billion dollar for protecting their agricultural markets. That is about seven times the amount all the OECD countries provide for ODA every year.

The German Economic Cooperation Minister favours the establishment of a Global Council for Sustainable Development. The EU in its agenda paper for the WSSD backs her plea and urges for developing ''an effective institutional framework for sustainable development at international, regional and national levels''.

The EU paper says: ''At international level, it is necessary to strengthen the role of ECOSOC (UN Economic and Social Council) in the follow-up to the WSSD, to give more emphasis to implementation issues in the work of the Commission for Sustainable Development (CSD) and to reinforce cooperation on sustainable development between UN bodies, the Bretton Woods institutions and the WTO.'' (END/2002)

 

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