RESPONDENT
Mr Saliem Fakir,
Director IUCN (World Conservation Union) South Africa Office,
and team leader for the Greening of the WSSD initiative.
To see what can be taken forward at the summit we have to locate possible action plans or agreements on dealing with poverty on a global scale in the political economy that currently exists in the world. Since the Millennium Declaration there has been a lot of thinking and direction of finances towards dealing with global inequality and poverty. Everybody will claim that the solution is not easy, but the question that I think we have to ask is whether, from a political economy point of view, comprehensive change is possible without comprehensive structural change in the global or national economies. We have to recognise that the shift of resources from rich to poor people affects the interests of rich people and those with power and accept that this builds resistance.
A lot of the discussion about poverty and inequality has to look at the question of whether major structural change is possible and what the implications are. And how does one engage with the inequality of power that exists between different countries or constituencies in the global or national economy?
The Monterrey Conference on finance for development was successful in getting major players like the United States and the EU to commit to increased donor assistance. The Monterrey Consensus was however about much more than just aid. The document talks about some of the fundamental structural issues around trade and the global financial system. Because of the limited focus on these issues the conference was not entirely successful.
One of the reasons is the separation that takes place in inter-governmental discussions. For instance, powerful countries with a major stake in the global economy would not want to talk substantially about trade issues at the Monterey meeting. I think we will see a similar kind of thing at the World Summit. I see this as part of a broader strategy, because there is a differentiation of power in different platforms and forums. The Monterrey Consensus was an attempt at a more comprehensive approach that looked not only at aid but also issues around trade, debt and so on. To some extent that was undone in the outcome.
If we want to address poverty we also need to engage with governance issues. Neo liberal economists emphasise deregulating the economy and opening markets. Economist and Nobel Laureate, Amartya Sen makes the fundamental point that in a lot of developing countries, it's not just about markets, it's about ensuring that economic planning meets the development objectives of a particular country or group of countries. This is not to say that free markets are not important but we need to look beyond them if we want to talk about broader economic development. Today most people accept that free markets do not mean no government intervention. Particularly in developing countries, deregulation alone has not resulted in the growth and development that free market proponents predicted. Intervention is necessary to stimulate certain aspects of the economy and this intervention also needs to be governed by rules.
Sen also emphasises the importance of improving human capability. This is based on the idea that development objectives cannot be met by macro level interventions alone, individual members of a nation have to be allowed greater freedom to explore their full potential and worth. And that comes with better governance, less corruption and better democratic systems. Individuals need to feel they have the opportunity to participate in economic activity; The economy must allow them access to resources to develop their own welfare and that of their family.
Human rights and the global economy are not only issues for national governments. There is a lot of debate about the role of transnational or multinational corporations, which often have larger budgets than many developing countries. And they influence the policies, particular the economic policies of many of these countries.
To date there is no global governance system that sufficiently regulates the behaviour of corporations. There is talk of codes of conduct that enshrine environmental labour and other standards. But I think we need to recognise that in forums like Monterrey and the World Summit there is not enough discussion or debate about the role of major corporations and their impact on the global economy and on the ability of many countries to deal with some of the development issues they face.
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