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The Earth Times | Posted March 19, 2002



FINANCING FOR DEVELOPMENT

When Hell freezes over: Global bargain

> BY JACK FREEMAN
Copyright © 2002 by The Earth Times. All rights reserved


MONTERREY, Mexico -- Mnterrey," said Mark Malloch Brown, administrator of the UN Development Programme, speaking of the International Conference on Financing for Development, "lays out a big global bargain. If it succeeds it will put development at the heart of global politics." And Gordon Brown, Great Britain's finance minister, wants rich countries to double their foreign aid for what he called a new Marshall Plan.

The Marshall Plan, under which the US provided huge sums of money to the countries of Western Europe to help them rebuild after World War II, stands as one of the very few success stories in the history of international development cooperation. It created a genuine win-win situation that also, not so incidentally, served as a major weapon in the cold war. But people tend to ignore (or conveniently forget) that there are vast differences between post-war Western Europe and present-day sub-Saharan Africa. The Europeans, after all, were not building from scratch; they were reconstructing what had been one of the most powerful industrial societies ever. They had the advantages of a pre-existing business culture, stable and democratic governments, an educated workforce-and, of course, peace.

Malloch Brown's comment also seems to ignore (or conveniently forget) the context of history. Ten years ago, at the Earth Summit in Rio de Janeiro, the nations of the world solemnly pledged to put development at the heart of global environmental protection. They agreed also that the rich countries would increase their development assistance so poor countries could afford to develop "sustainably." Unfortunately, that version of the "big global bargain" collapsed almost immediately, as official development assistance provided by the donor countries went into a steep decline. The developing countries, bitterly disappointed, cried foul.

In a few months the international community will be meeting again in an effort to revive the Rio bargain. The World Summit on Sustainable Development is to take place in Johannesburg at the end of August, and the Monterrey conference was supposed to play a key role in its success. The very real danger, however, is that it could guarantee its failure. The UN Secretary General has said that international development assistance will have to be doubled-from its current level of $50 billion to $100 billion-if we are to have a chance of achieving the goal agreed at the UN's Millennium Summit: reducing global poverty by half by the year 2015. But if the US, the world's only economic superpower, is planning to increase its aid budget by only 15 percent, then the 100 percent overall increase urged by Annan becomes mathematically impossible.

Yes, some of the leaders of the donor nations attending the Monterrey summit are prepared to double the size of their aid programs. In return, they are demanding that aid recipients adopt a wide range of reforms.

Such reforms are described as necessary for the poor countries to attract outside investment. One could also argue that these reforms are desirable for their own sake. But no country, however poor, wants to have its government policies dictated by outsiders.

Still, the poorest countries do not have the option of turning down this "big bargain." They cannot refuse the help on offer, regardless of the conditions attached to it. But neither do they have any illusions. They will go along as they went along with the bargain of "common but differentiated responsibility" of the Rio action program. But they know that, just as that deal was something much less than "another Marshall Plan," they can expect this one to "put development at the heart of global politics" just as soon as hell freezes over.

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