Subject: [cwj 55] THE G8 NATIONS' FAILURE TO DELIVER DEBT RELIEF
From: Corporate Watch in Japanese <cwj@corpwatch.org>
Date: Mon, 10 Jul 2000 18:30:10 -0700
Seq: 55
NO CREDIT TO THE CREDITORS: THE G8 NATIONS' FAILURE TO DELIVER DEBT RELIEF THROWS DOUBT ON THEIR ABILITY TO CONTROL GLOBAL CAPITALISM The Guardian - United Kingdom 10-Jul-2000 BY MADELEINE BUNTING Know where Okinawa is? Neither did I until last week when I managed to find it, a tiny island which is nearer to Taipei or Shanghai than it is to Tokyo. My knowledge of Okinawa consists of second world war horrors, when the civilian population retreated to caves to plot suicide bombing missions against the invading US army. The legacy of this is that a fifth of the island is taken up by US bases and scandals periodically erupt (as they did last week) about servicemen preying on local women. So when it fell to Japan to host the G8 annual jamboree a few years ago, Tokyo hit on a brilliant wheeze. Pour millions of yen into a purpose-built conference centre for the G8 summit on one of Okinawa's prettiest bays, and you kill two birds with one stone: you compensate the Okinawans for their Yankee occupiers and you avoid the nasty fracas that these tedious demonstrators cook up when you put the G8 leaders in a major city. The fact that Okinawa is in the middle of nowhere has become its prime virtue for a global political elite who are finding it increasingly difficult to deal with that voluble circus which now happily set up camp outside their get-togethers. Birmingham in 1998 and Cologne in 1999 were bad enough - cities clogged up with all those debt campaigners and every NGO in town - but things looked seriously out of hand in Seattle last November and in Washington in April. ] The Japanese decided not to take any risks, and they have spent more than any previous G8 government doing exactly that. When, the weekend after next, Tony Blair relaxes on the sun-lounger with old chum Bill Clinton, watching the sun set over the Pacific, chilled Japanese beer in hand, they need have no fear that demonstrators will brave the shark-infested waters to wave placards. This is making Jubilee 2000, the debt relief campaign, very angry. They are running out of time; they close up shop in December, and already some staff are moving on to big, glamorous jobs in other NGOs. The fact that they have engineered what is regarded as the most successful global activist campaign since apartheid plays well on the CV. But their dedication was to the issue not their careers, and they are acutely aware that the campaign may have failed. Their publication last week, Island Mentality, makes for painful reading for all Jubilee 2000's fellow travellers. First, because it details how little has been delivered: Uganda, the "star pupil" of western creditors, will not have had one dollar of debt cancelled by the end of the year; Tanzania has had its debt servicing reduced by the princely amount of 7%. And these are the lucky ones who are scheduled to receive debt relief; other countries such as Haiti and Nigeria, burdened with huge debt, are not even in the queue. Second, because a tone of panic has crept in; knowing there are only a few months left, Jubilee 2000 has made emotive (and unsubstantiated) statements such as: "by stopping the collection of debt payments now, the G8 . . would start making a difference - and saving lives - immediately". The frustration is understandable. If you can't achieve debt relief in the millennium year with millions of campaigners, when can you? To say that Jubilee 2000 has failed is a bit of a volte face for this newspaper which did more than most (with the arguable exception of the Financial Times) to cover the campaign and to record its triumph in a) mobilising an army of activists contrary to all the doom-mongering of compassion fatigue; and b) getting results such as the G8's promises in Cologne a year ago and Gordon Brown and Bill Clinton's competing offers to cancel bilateral debt. But these achievements have never looked so fragile; Cafod (the Christian charity) published a survey last week reporting that more than half the population believe the debt problem has been solved. The fear is that the momentum to resolve the issue will simply ebb away. Mr Brown is aware of these anxieties; his initiative yesterday to hold out debt relief as a carrot to entice countries at war, such as Ethiopia, to make peace is a bid for campaigners to keep faith that he will deliver. There are two critical issues: why is debt relief happening so slowly? And why does it matter so much? The first question has got buried in two conflicting views: either the creditors don't really want to give debt relief, so they pile up criteria which ensure that nobody qualifies for it. Or the villains are held to be the debtor countries themselves: they get involved in wars, or jack up the pay of their teachers and nurses and fail to balance their budgets. The truth lies somewhere between them. It also draws in wider, linked questions of the reasons for Africa's political instability, to which Clare Short sensibly proposed this weekend some "joined-up government" between the Foreign Office, the Ministry of Defence and her own department for international development. But before Mr Blair, who often talks of globalisation, tucks into his sushi, perhaps he should consider this: debt relief is critical to ensuring that a whole swath of the world isn't permanently trapped in a cycle of poverty, interest payments and underdevelopment. This is not just leftie rhetoric, it is widely accepted. What is at stake here is whether globalisation really means the continuing enrichment of a small proportion of the world's population at the expense of the deepening poverty and instability of large tranches of the rest. Is globalisation for the few or for the many, prime minister? But there is another answer to the question of why it matters. The debt relief campaign throws into stark relief the central contradiction of globalisation: it is to do with time. Money, information and trade are moving faster around the world than ever before, but as they are speeding up, so the political system to manage and regulate them is slowing, getting bogged down in international negotiations and the turf wars of multilateral institutions. The economic and the political are out of kilter; to use a homely metaphor, it is like bike gears crunching. And it frustrates even some politicians, wearing down the reserves of perseverance of the genuinely committed such as Gordon Brown, as the process moves at the speed of the lowest common denominator. Debt relief is developing into a major test of the global political elite and its institutions - the International Monetary Fund and the World Bank - to manage globalisation. Can they? Do they want to? The questions are about both their capacity and their political will. Disturbingly, it looks as if they put most effort into managing (through manipulation, bureaucratic inertia or indifference) the challenges to global capitalism, rather than the beast itself. As, for example, the retreat to Okinawa where they will escape from the possibility of demos, tear gas and awkward questions, to contemplate the soothing rhythm of the Pacific's waves breaking on the shore. Island Mentality is available from Jubilee 2000 Coalition, 1 Rivington Street, London EC2A 3DT. madeleine.bunting@guardian.co.uk FAIR USE NOTICE. This document contains copyrighted material whose use has not been specifically authorized by the copyright owner. Corporate Watch in Japanese is making this article available in our efforts to advance understanding of ecological sustainability, human rights, economic democracy and social justice issues. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the US Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. ------------------------------------- Corporate Watch in Japanese Transnational Resource and Action Center (TRAC) P.O. Box 29344 San Francisco, CA 94129 USA Tel: 1-415-561-6472 Fax: 1-415-561-6493 Email: cwj@corpwatch.org URL: http://www.corpwatch-jp.org ------------------------------------- ______________________ The Corporate Watch in Japanese http://www.corpwatch.org/japan (CWJ) mailing list is a moderated email list in English designed to connect activists campaigning against Japanese corporations and investments around the world. * To unsubscribe from the CWJ mailing list, send an email to majordomo@jca.apc.org with text "unsubscribe cwj". To subscribe to the CWJ mailing list, send a message to majordomo@jca.apc.org with the text "subscribe cwj" * The CWJ mailing list is NOT intended for wide distribution. 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