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U.S., Europe Urged To Do More For World Poverty

Masked and hooded protesters demonstrate against the UN summit in Monterrey, Mexico

PARIS, March 21 (IslamOnline & News Agencies) – As world leaders gather in Monterrey, Mexico this weekend to discuss how to reduce world poverty, the prime ministers of the five leading nations in development aid urged Thursday the U.S. and Europe to increase their assistance to poor countries.

The premiers of Norway, Denmark, Sweden, Luxembourg and the Netherlands issued a joint appeal in the International Herald Tribune published in Paris for leaders to "do what it takes" in order to meet their pledge to reduce by half the proportion of people who live in extreme poverty by the year 2015.

They criticized the "Monterrey Consensus" for being too general. "The consensus is good, but it does not deliver specific commitments on a substantial increase of ODA (official development aid)," Agence France-Presse (AFP) reported.

Citing that current ODA falls far below the level necessary to meet the 2015 goal, the prime ministers urged leaders to use the Monterrey conference to "take a hard look at policy coherence."

Industrialized countries had committed 0.7 percent of their gross national product in order to reduce the international poverty level at the U.N. Millenium Summit in 2000. Total world ODA in 2000 amounted to 56 billion dollars, representing an average of 0.22 percent of the GNP.

"We will not find long-term solutions to common challenges such as environmental degradation, climate change and the despair that feeds political violence and crime unless we get more serious about eliminating poverty," the ministers said.

While welcoming the recent development aid increases by the United States and European Union leaders, the group urged for more. "Richer countries must do better. The stakes are high. The major stakeholders are the poorest of the poor. We should not let them down." According to them, increased ODA is not going to be enough.

"We should also consider untapped development resources, such as new private-public partnerships and innovative financial mechanisms."

Mexican President Vicente Fox will open the proceedings Thursday, followed by top international officials including U.N. Secretary General Kofi Annan, World Bank president James Wolfensohn, International Monetary Fund managing director Horst Koehler and World Trade Organization Mike Moore.

On the eve of the summit, Europeans were stressing their leading role in providing official development assistance, government aid that traditionally has been earmarked for critical infrastructure projects.

But U.S. Treasury Secretary Paul O'Neill, whose country trails the league of official aid donors, took issue with the notion that aid -- which he described as welfare -- could lift the world out of poverty.

"Most of the real economic development is going to come from capital coming into countries to create private enterprise that creates jobs, that create higher levels of living," O'Neill said. "We are not going to do it with welfare."

O'Neill noted that while donors provided 45 or 50 billion dollars a year in total aid to developing nations, private, long-term foreign direct investment (FDI) in China alone was worth same amount.

European Commissioner for Development and Humanitarian Aid Poul Nielsen agreed that investment volumes were larger, but laid emphasis on the critical role still played by aid.

Only two or three percent of FDI went to sub Saharan Africa, he said. "Something has to happen. We have to create a background that makes Africa more interesting for investment. This is where ODA comes in."

The French also say the new U.S. commitment to aid remains woefully inadequate -- taking its aid as a proportion of economic output from a paltry 0.10 percent to 0.13 percent -- while the Europe Union level rises from 0.33 percent to 0.39 percent.

While the world leaders held meetings, hundreds of protesters chanted that it was "more of the same rubbish" of the developed world. Coming from as far as Quebec, Canada, about 1,500 demonstrators marched through Monterrey. Police kept their distance and no arrests or violence were reported.

Marches were planned throughout the week, but summit organizers predicted they would be peaceful. Activists also said they did not intend to become violent, although some did not rule out the possibility.

Because of eruptions of violence at other international conferences in recent years, Mexico sent 3,500 soldiers and police to Monterrey. Many ring the conference site, unarmed in the hot sun, in specially designed uniforms that resemble janitors' outfits.

Reducing global poverty, and improving health and education in poor countries, are the goals of the five-day summit which hopes to identify the resources needed to achieve these aims - and to meet the millennium development goals agreed by the United Nations two years ago.

According to the BBC’s online news service, the conference is also being seen as a test as to whether the new spirit of U.S.-led international cooperation against terrorism will be extended to tackle world poverty.

U.S. President George W. Bush, Cuban President Fidel Castro, South Africa's Thabo Mbeki and French president Jacques Chirac are among the 59 heads of state who will attend later in the week.

 

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