Evian (France), June 1
Prime Minister Atal Bihari Vajpayee today asked the G-8 on the eve of their two-day summit beginning here tomorrow to evaluate the Doha round for achieving concrete progress towards a global trading regime, generate additional financial resources for development and develop a broader approach to the system of user fees on global environmental resources.
He listed four areas requiring benchmarks for a proper global trading regime as: (1) rapid elimination of tariff and non-tariff barriers for the exports of developing countries; (2) phasing out of trade distorting agricultural subsidies and removal of barriers to agricultural exports which ensure the livelihood security of billions of farmers in developing countries; (3) removing visa and non-visa obstructions to free movement of natural persons for providing services; and (4) broader access of developing countries to pharmaceuticals.
Mr Vajpayee warned that “if we do not act quickly to realise these goals, it is going to become impossible in most developing countries to secure political support for any further trade liberalisation or environment measures.”
He stressed that external augmentation was required to generate additional financial resources for development besides addressing the problem of unrestrained resource flows coupled with seriously considering the idea of a small levy on international capital flows to be credited to funds for global development.
Mr Vajpayee said there should be careful consideration of the British proposal for an international finance facility and the Asian bonds initiative of the Prime Minister of Thailand. Both are forms of guarantee systems to make capital available for developmental projects. Such mechanisms can substantially enhance access to resources by developing countries.
At the same time, he cautioned that the sound regimes for multilateral development finance built up carefully over the decades were not discarded in the process.
Mr Vajpayee regretted that the Non-Ratification of the Kyoto Protocol had stalled the Clean Development Mechanism for investment and technology flows to developing countries and had seriously impeded many developing countries programmes for renewable energy and energy conservation.
Even though Mr Chirac believes that holding up of negotiations cannot be entirely blamed on Europe and is pressing for more flexible agricultural subsidies, Mr Vajpayee stressed that industrialised countries have a responsibility towards the countries of the South as sustainable development had assumed urgency.
Mr Chirac has desired shifting the relationship in the South from rendering aid and dependency to one of real partnership.
In the pre-Evian summit, international institutions and leaders from India, China and Brazil are among more than a 12 emerging economies specially invited to evolve policies to protect the interests of developed and least developed countries.
The run up to the G-8 summit has not been without its uncomfortable moments for Switzerland and France. Some of the violence occurred across the picturesque lake in Lausanne, about 60 km from Geneva. Slogan-shouting protestors blocked several streets to highlight the provocative and unilateral decision of the industrialised North like the military action against Iraq.
Mr Vajpayee flew here this afternoon from St Petersburg on the final leg of this three-nation tour. After landing at the Geneva airport, he flew by helicopter to Evian where Mr Chirac made a special gesture of receiving him as he stepped out of the car, thus side-stepping the protocol of receiving leaders in the designated reception area. The neutral Swiss authorities have deployed armoured personnel carriers and military helicopters for security. This is for the first time that India has been invited to attend a G-8 gathering of this type.
