South Asia Watch on Trade, Economics & Environment (SAWTEE)

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Millennium Development Goal 8: A call for global cooperation

A Call for Global Cooperation

The Millennium Development Goals (MDGs) represent a global cooperation between developing and developed countries. While the first seven goals require developing countries to create an enabling national environment, Goal 8 ? Develop a Global Partnership for Development ? identifies the responsibility that rests with the developed countries. Towards fulfilling the commitments under Goal 8, the United Nations reports that many donors are on track to meet the target of dedicating 0.7 percent of gross national income to official development assistance (ODA) by 2015.

Others have promised to make substantial increases in ODA over the next 10 years. Leaders meeting at the Group of Eight (G8) Summit in early July agreed to increase annual aid flows by at least US$ 50 billion by 2010, with at least half of that increase to be directed at Africa, and to write off the debts of 18 of the world?s poorest countries.

These initiatives are a welcome move. However, the concerns are: Are they up to the mark of the global pledge to support poor countries attain MDGs? Since donors would meet the ODA targets by 2010 or 2015, would these initiatives help poor countries achieve MDGs by 2015? Besides, without fulfilling the ODA needs of poor countries in other regions, for example South Asia, would the world be able to tackle the Millennium challenges? In addition, the developed countries are only concerned about ODA giving little attention to other commitments. An increased focus on ODA is part of the story. Of equal importance are actions in other areas, including trade, agriculture, health, employment and technology transfer, which are covered by Goal 8 targets (12-18).

Target 12: Develop an open, rulesbased, predictable, non-discriminatory trading and financial system One year after the adoption of MDGs, World Trade Organisation (WTO) members made a historic effort to strengthen the international trading system through the launch of Doha Development Agenda (DDA). However, little progress has been made to accomplish DDA; almost all deadlines were missed and the Canc?nisterial in 2003 also failed to provide a momentum to DDA.

Amidst continued deadlock on Doha Round negotiations, members adopted the July Package (JP) in 2004, establishing modalities for negotiations on five major issues of DDA ? agriculture, non-agricultural market access, services, trade facilitation and ?development dimension?. If negotiations on these issues are completed ?taking into consideration the development issues and the interests of poorer members?, including the ?development dimension?, it would help poor countries to make international trade work for development. In this context, ongoing negotiations under JP and the WTO Ministerial in Hong Kong (December 2005) provide WTO members with an opportunity to work on Target 12.

Target 13: Addressing the special needs of LDCs The least developed countries (LDCs) face serious supply-side constraints to benefit from international trade. Their limited financial resources and institutional capacity to overcome these constraints make them uncompetitive and vulnerable in the global economy. Besides, due to limited products and destinations to export, they are prone to external shocks. Product diversification, enhancement of competitiveness and market access are, therefore, crucial for the LDCs to benefit from international trade. In this respect, there is a need to help the LDCs with meaningful and effective technical and financial assistance. The developed countries, as the LDCs have been demanding, should also make a binding commitment on duty free and quota free market access for all LDC products, with no restrictive measures introduced. Also, since most of Generalised System of Preferences schemes are unilateral, there is hardly any element of predictability. Hence, these schemes must be made binding at the WTO. At the same time, it should be ensured that the LDCs are not subject to any type of non-tariff barriers.

Target 14: Address the special needs of landlocked countries The special needs of landlocked countries have gained wider recognition in the Brussels Declaration and the Programme of Action for the Least Developed Countries. The Almaty Programme of Action ? adopted in 2003 ? has obliged the developed countries to assist and support the landlocked countries by providing effective and meaningful technical assistance and better market access opportunities. Therefore, the developed countries should implement their part of the commitment so that landlocked countries are able to address the challenges associated with their landlockedness. Besides, the ongoing trade facilitation negotiations under JP establishes

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