Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1055 Mon. May 21, 2007  
   
Business


Developing states seek G8 help to eradicate poverty


A summit of G11 developing countries on Saturday agreed to push for cooperation with G8 industrialised nations and boost multilateral ties in a bid to lift millions of people out of poverty.

"Our two organisations have a vital shared goal, to strengthen prosperity and peace in the 21st century," Jordan's King Abdullah II told G11 heads of state and officials on the sidelines of a Middle East World Economic Forum.

The G11, launched last September by King Abdullah, groups Croatia, Ecuador, El Salvador, Georgia, Honduras, Indonesia, Jordan, Morocco, Pakistan, Paraguay and Sri Lanka.

Progress by the 11 in forging ahead with reforms, building their economies and alleviating poverty rests on "having the budgetary space to continue to invest in development and economic growth," the king said.

"It is vital that the international community support our continued progress," hampered by high debt, rising oil prices and other challenges, he told delegates.

The presidents of Croatia, El Salvador, Georgia and Sri Lanka attended the nearly two-hour summit alongside senior officials from the other G11 countries. Representatives from G8 members Germany and Japan were also present.

Croatian President Stipe Mesic and his Sri Lankan counterpart Mahinda Rajapakse emphasised the need to join forces as well to "fight terrorism."

"Is there a better response against terrorism than development?" asked Mesic.

"My request is to emphasise the bonds between us to fight against terrorism. We as G11 must work together against terrorism and sustain peace," said Rajapakse.

The president of El Salvador, Elias Antonio Saca, called for "more ambitious suggestions" and insisted that "international cooperation represents the key factor" in helping the G11 to accomplish its targets.

These goals were outlined in a communique and a so-called white paper issued at the end of the summit which will be submitted to the G8 -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.

"We agree on a framework to... institutionalise the relationship between the G11 and the G8... (to) foster bridges of future cooperation and strengthen partnership between them," a statement said.

"G11 countries require fiscal and monetary space to maintain momentum on progress and to lay the foundation for a diversified and sustainable economic growth," it said.

"G11 countries need targeted assistance and support to accelerate growth, lift millions from poverty and hasten the delivery of the fruits of reform and social development to larger segments of their population.

"In this regard, G11 countries continue to count on the support of the donor community and the G8 countries to meet development objectives, graduate into higher income brackets and make a stronger contribution to world prosperity, peace and stability."

The white paper said that "debt is placing a great burden on export earnings and fiscal revenues" of the G11.

They look to the G8 for help "in decreasing the debt burden through concessional lending terms, easier repayment arrangements, longer grace periods, lower interest rates on loans and support for debts swaps and debt buyback."