-----Original Message-----
From: Carol Barton [mailto:[EMAIL PROTECTED]]
Sent: January 24, 2002 10:18 AM
To: [EMAIL PROTECTED]
Cc: FFD Women's Caucus
Subject: [ffdngocaucus] FW: FfD and ...flying cows...



-----Original Message-----
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Sent: Wednesday, January 23, 2002 11:44 AM

David Ransom, co-editor of the New Internationalist, reports from behind the
scenes at the UN Raising Voices for Financing for Development meeting, and
the FfD prepcom. A rather satirical (and frightening) description of an
event that has failed, he highlights, to attract the public attention it
should have.

Here�s a slightly edited and shorter version of his piece (comments,
satirical or not, are welcomed):

�Every cow in Europe could be flown around the world, First Class, for the
money spent on agricultural subsidies by the European Union. I didn't know
this, nor that there's a UN conference on 'Financing for Development' coming
up in Monterrey, Mexico, this March. It seems I am not alone. So the UN has
invited a small band of us to their headquarters here in New York City to
raise awareness and, they hope, our voices too.
(�)
And so a couple of thousand diplomats swarm around a conference room inside
the UN. We've been invited to witness a preparatory committee � 'PrepCom' �
for the Monterrey conference. People greet each other with the limp
handshakes of international diplomacy. I lean languidly against a blank
wall, trying not to look too conspicuous. Officials sit in the alphabetical
order of their country. New Zealand (no, not 'A' for Aotearoa) and
Nicaragua, just in front of me, must have got to know each other pretty well
over the years.
A buzz and then a hush marks the arrival of Kofi Annan, the UN
Secretary-General himself. He, and two bulky security guards with restless
eyes, cast some special significance over the proceedings. He reminds
delegates of the importance of their task. For the first time in its
history, the UN is staging a major conference on global finance.
As a rule this is the closely guarded preserve of the International Monetary
Fund (IMF), the World Bank and now the World Trade Organization (WTO). But
'development' falls within UN territory. And the UN has adopted a set of
Millennium Development Goals (see panel). Without the finance, there�ll be
no ball to score these goals with. Hence UN interest in Financing for
Development, and the international conference in Mexico, which starts on 18
March.

Styled �a critical global collaboration�, the conference won�t be restricted
to the usual UN officials, diplomats and politicians. The IMF, World Bank �
the �Bretton Woods� institutions � and WTO are participating too. For those
of us who believe that they should always have been accountable to the UN �
as was originally intended � this looks like a breakthrough.
There is, however, an equal and opposite danger � that the UN will be eaten
for breakfast by the Bretton Woods institutions. The lethal mix of
free-market nostrums, free-trade propaganda, 'structural adjustment' and
privatization they dispense goes by the name of the Washington Consensus.
This is, in reality, the transnational corporate agenda in drag.
Transnational corporations have tightened their grip on every international
institution, especially those that have anything at all to do with money.
Until recently the UN itself was something of an exception. But now the
Secretary-General has agreed a 'Compact' with major global corporations.
This will allow them, among other things, to use the UN logo. In future,
distressed citizens of the world won't know for certain whether it's the UN
or Nike riding to the rescue.
Kofi Annan announces to the meeting the appointment of two 'Special Envoys
on Financing for Development'. One is Trevor Manuel, the respectable Finance
Minister of South Africa. The other is the former Managing Director of the
IMF, Michel Camdessus. My jaw drops in disbelief as I hear his name. More
than anyone else, he is associated with the devastation wrought by debt and
'structural adjustment' around the world, particularly in the South. Is the
Secretary-General unaware that on the city streets of the South the name of
Camdessus is mud?
I've been ploughing through the paperwork. In earlier drafts of the
Monterrey 'outcome' document I've seen some reference to 'innovative sources
of finance', such as a 'Tobin' tax on currency speculation, or a global
carbon tax. These would raise serious money, probably sufficient to fund the
Development Goals and the UN as well, while requiring an entirely new,
global system of taxation. In the latest 'draft outcome' document they have
disappeared without trace � or, to be more precise, into a 'study requested
by the Secretary-General'.

When Kofi Annan leaves the meeting, contributions from the floor come
predominantly from Scandinavia. They focus on a proposal to double official
development assistance, or foreign aid. This would doubtless be a very good
thing. But during the past decade aid has actually halved in value, and the
trend is still downwards. The Scandinavians are the only rich people who
have ever come close to spending 0.7 per cent of their annual income on aid.
This is what all rich countries � except the US � solemnly pledged to do
almost two generations ago. There�s nothing to suggest why they might redeem
their pledge now.
>From over the wall behind me comes the disembodied, amplified voice of Mark
Malloch Brown, the new boss of the UN Development Programme (UNDP), which
has a hard-won progressive reputation. I'm told that Mr Malloch Brown comes
to the UNDP via The Economist magazine and the World Bank. He speaks of a
deal, a 'contract'. Developing countries, he says, should implement a series
of orthodox economic measures and 'mobilize' their own financial resources.
In return, rich countries should give them more official aid.
Why should the poor believe the rich? Answer comes there none. This is not
to suggest that combating poverty, inequality and corruption in all
societies, rich and poor alike, is a bad idea. But, not so long ago, the
Washington Consensus was ordering impoverished societies to cut spending on
education and healthcare in order to pay off their foreign debts. Economic
orthodoxy is part of the problem, not the solution.
There are more disembodied sounds from over the wall behind me. Big noises
from the World Bank, the IMF and the WTO are all perched up there and they
express their satisfaction with the way things are going. So does the
Secretary General of the International Chamber of Commerce, the business
lobby group. It's getting quite hard to believe that this is actually a UN
conference, even when a growling sound comes from Roberto Bissio of the
Third World Institute. He reminds everyone that children are presently dying
in large numbers from preventable disease and hunger. The bankrupt Enron
corporation, he says, has been treated more benevolently than the bankrupted
people of Argentina. Casting my eyes across the amphitheatre I notice,
however, that large numbers of seats have emptied.
Our visit to the meeting over, we gather around an oval table in a panelled
committee room. There's Bruno Jetin from the ATTAC group in France; Yao
Graham from the Third World Network in Accra, Ghana; Marina Ponti from
Manitese in Italy; Atila Roque from the World Social Forum in Porto Alegre,
Brazil; Friends of the Earth and Interaction from the US; and a fair few
others as well.
The journalist Horacio Verbitsky from P�gina 12 in Argentina kicks off with
a brilliant account of the debts racked up by the rich, shipped out to
benefit the rich countries, then loaded onto the backs of the people,
bringing catastrophe to a country that had observed economic orthodoxy to
the letter. This reminds us that the financial issues don't just involve
poor countries; 'middle income' ones like Argentina and Turkey are affected
too. So too are the poor in rich countries. It was, after all, the crisis of
financial orthodoxy in the model 'Little Tigers' of Asia in 1997 that
prompted the Monterrey conference in the first place.
Atila Roque is expecting anywhere between 30,000 and 50,000 people at the
World Social Forum in Porto Alegre at the end of this month; it will have to
be more of a rally than a forum, he laments. Marina Ponti describes the
300,000 people who walked for peace from Perugia to Assisi in Italy after
911. I mention two huge peace demonstrations in London � and the totally
unexpected popular uprising over 'Third World' debt orchestrated by Jubilee
2000.
The problem, as Yao Graham suggests, is not with 'raising voices'. It is
with the content and the process, the �what� and the �how�, of the
conference. There is no mention of generalized debt cancellation; nothing
significant on 'innovative' sources of finance or the global financial
'architecture'. Nothing, in other words, that matches the scale or the
urgency of the task. My own bleak expectation is that, as things stand,
global economic recession will � as it always has � hit the poor hardest,
increase inequalities more rapidly and take us that much further away from
those Development Goals.
So there's a bit of frustration around. This is not what the people who have
invited us really want to hear. And it�s not what some of us really want to
say. None of us has come here to waste our time carping. Most of us prefer
fresh thinking.
Mark Malloch Brown comes to talk to us. He describes his job as 'campaign
manager' and 'score-keeper' for Financing for Development, and he likes the
sound of business plans. I suggest to him that the Washington Consensus is
unravelling. It doesn�t make much sense to weave its loose threads through
the Monterrey document. He says the Washington Consensus has been pronounced
dead many times before, but no Santiago Consensus (a reference, I take it,
to some 'innovative' financial measures adopted with some success by Chile),
or whatever, has emerged to replace it. As far as he�s concerned, if rich
countries have to pledge more foreign aid in order to avoid innovations like
the Tobin tax, that would be a result. Not many of us show any enthusiasm
for campaigning for one thing in order to achieve another.
A succession of very grand people tries to persuade us otherwise. Nitin
Desai, the Under-Secretary General for Economic and Social Affairs, says
Monterrey is a 'good starting point' worthy of public support. He admits
that there comes a point with when all the studies have been done and
there's not much to be gained from doing any more � but stops short of
suggesting that this point has now been reached with the Tobin tax.
I begin to wonder whether there isn�t a misconception at work here. None of
us around this table controls a tap of public support that we can turn on or
off at will. In our own marginal case at New Internationalist magazine, for
example, for years we explained the evils of the spiralling debt crisis, its
devastating impact on the lives of millions of people, to no discernible
effect. I certainly never imagined that the issue would ever attract popular
attention. The fact that it did came as something of a shock to me and is
therefore a little hard for me to explain.
Sure, the situation had deteriorated to the point where it could scarcely
get more grotesque; sure, clarifying and broadcasting the hard facts about
an ugly truth was important. But what really made the difference, and
ignited the Jubilee 2000 campaign, was a combination of growing public
unease with the clear idea that illegitimate debts must be dropped,
cancelled altogether. This isn't about sloganizing. It means slaughtering a
sacred financial cow, the sanctity of debt. That, I think, is what's now
needed by the world's financial systems as a whole. People are not fools.
They know when they're being hoodwinked.
To my mind, the era of the UN as a mere sum of its parts is drawing to a
close. Whether the UN likes it or not, globalization is giving it an
identity of its own. You can, as ATTAC have done in France, campaign
successfully for a global Tobin tax on currency speculation. You can say
that the great majority of the world's nations and peoples would be
beneficiaries, and wonder why there is as yet little sign of support from
their governments. But you also need the UN take a lead, if only because of
the common-sense objection that there's no point in confining a global
measure to your own country.
This applies not just on the grand scale, but at the practical level where
most of us live our daily lives. For example, in all the propaganda for
'free' trade in the Monterrey documents, I could find no mention at all of
the fair-trade movement. I may have missed it, and I admit this is a
hobbyhorse of mine. But, in my experience, it is one of the very few ways
the people of the North have a direct, practical connection with the people
of the South � or have the ability to act. If the principles and practice of
fair trade were developed with even a tiny fraction of the resources that
currently go into promoting 'free' trade at the WTO, or UNCTAD, or anywhere
else in the UN for that matter, much more progress might be made, and
faster, than anyone currently imagines possible.
The point is not that the tiny fair-trade movement can save the world. It is
that the movement is just one of many. All of them look at some time or
another, and more or less critically, to the UN.
It may be that change is underway. Perhaps the cynics have been proved wrong
by progress on some of the issues � women, social justice, the rights of the
child, the environment � on which the UN has staged major conferences during
the past decade. But now the crunch has come: the prevailing, narrow
orthodoxy of global trade and finance has to be broken. Without radical
change here, progress will be impossible anywhere else.
There is, in truth, just one bulky interest group standing in the way. You
don't have to portray transnational corporations as the only villains of the
status quo to know that they are its chief beneficiaries. No doubt they have
their uses. But they are well able to look after themselves. They don't need
democratic governments. People do. I've never heard anyone suggest, for
example, that left to their own devices transnational corporations would
have come up with the Universal Declaration of Human Rights.
I have no idea exactly how far corporate influence reaches, or to what
extent it accounts for some of the otherwise inexplicable policy preferences
of the UN.* If the Enron case in the US is anything to go by, so much
political influence can be bought on every side of a �mainstream� political
system that it disappears altogether.
What I do know, for example, is that there's an article lying in my top
draw. It describes how as many as 600,000 people in Tanzania have been
evicted from their land to make way for transnational mining corporations.
Most of these people once made a living. Now they have been made destitute,
in the name of 'development'. Courageous people in Tanzania have been
speaking out, and are suffering the consequences.
The article stays in my top drawer because, for the time being, we are
unable to publish it. The corporations involved are anxious to be known as
litigious. Under British libel law they could swat New Internationalist like
a fly, even if we proved every single word to be absolutely true beyond all
reasonable doubt. As a result, our readership remains in the dark.
Our readers know perfectly well that the world's media are, for the most
part, just another arm of corporate endeavour. But they cannot know what
they are unable to read. If the UN � or anyone else for that matter � finds
it difficult to get inconvenient messages out through the 'news agenda' of
the corporate media, that should come as no surprise. The answer isn't to
distort or delete the message altogether, let alone embrace transnational
corporations still closer.
The UN can have corporate support or it can have popular support: it can't
have both. The Washington Consensus is dissolving because it has done
enormous damage and doesn't even work. The only question now is what will
replace it. As for Monterrey, if the UN is right and the Financing for
Development conference is a good starting point, those of us who believe a
better world is not just possible but currently under construction will not
remain in ignorance of it much longer.�



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