Bottom Line
Will G-8 address the core issues?
AMONG all the problems besetting us at present, the most pressing are:
It is reported that the main issues before the summit are:
To put the power of G-8 in perspective against developing nations, it is noted that the G-8 industrialised countries constitute 60% of the the world's Gross Domestic Product and use 70% of the world's resources. Although they have only 20% of the world's population, their citizens consume 86% of all goods in the world. On the other hand, developing countries that constitute 80% of the world's population consume only 23% of the world's goods, although they possess 76% of the world's resources. Twenty five years of aid to the poorest nations by international financial institutions has failed to make an impact on poverty. Income growth measured in terms of aggregate GDP alone does not necessarily reduce poverty. Nor does it automatically nurture human development, which entails freedom from oppression, freedom from ignorance, and freedom from violence. The G-8 nations constitute the "core" of the world economy, and developing countries exist in the "perphery" of the global economy. This system is often called "neo-colonialism." Many economists believe that those countries which practice neo-colonialism have power without responsibility, while it means exploitation without redress for those which suffer because of that. During 2000-2004, it has been reported that there was a net transfer of financial resources of billions of dollars out of developing nations to rich nations, mostly G-8 countries. The developing nations expect that poverty reduction will be the aim of G-8 nations, more so at a time of soaring prices of oil and food items. For example, in Bangladesh the private think-tank, CPD, says that the price hike and the weighted inflationary impact on prices of commodities have brought an additional 8.5% people to below the poverty level. Inflation in an emerging power like India has reached 11.5 %. Sri Lanka's inflation reportedly rose to 28.2% in June. Everyone now agrees that it is inflation that poses the gravest risk to the economy of developing countries. The dilemma of policy makers in developing nations -- whether to cut interest rates to stimulate growth or to raise them to reduce inflation -- is shared by investors trying to decide what to do with their money. G-8 nations must consider the democratisation of IMF and World Bank, together with the UN. Many economists advocate for more equitably structured global institutions to reflect the present day realities of economic power of states. "There is a need for change, a strong case for a far-reaching re-examination of the institutional structure of the international world," Nobel laureate Amartya Sen argues. Energy and global warming
It is reported that electricity generation comes from five sources coal, oil, gas, nuclear power and hydro-power. Coal contributes 39%, oil 10%, gas 15%, nuclear power16%, and hydro-power 19% to the total electricity generation in the world. Global climate change is attributed to use of fossil fuels (coal, gas and oil) by industrialised and emerging powers. For example, it is reported that carbon emission per person in the US is 20.4, in China 3.84, India 1.20 and Bangladesh 0.25. G-8 nations spend more money in space exploration than in research and development of alternative sources of energy, namely, (a) solar power (b) wind power, (c) geo-thermal power d) tidal power and (e) hydro-power. Currently only 9% of energy in Asia is produced from renewable energy sources, and most of that is from hydroelectric power. G-8 countries must work to transfer climate-friendly technologies to poorer nations, as they are very expensive. Issues like poor housing, climate change, and rapid growth in urbanisation need to be tackled in developing countries, and the G-8 countries have a responsibility to address these burning issues. There is a reflexive relationship between urban transformation and climate change. The most obvious linkages between cities and climate change are through sea-level rise and current patterns of geographical urban expansion; if sea level rise just one metre, many coastal cities will be under threat (it is reported 32% of Bangladesh, including Sundarbans, will be lost if there is a one metre rise). Serious negotiations must be initiated by G-8 nations to help poorer countries to adapt to the effects of global warming, such as building seawalls to guard against rising oceans. The leaders of G-8 must realise that in a sea of poverty there cannot be an island of affluence, and the joint statement after the summit may clearly state the commitment of the G-8 nations to set time-bound goals to address poverty and climate change. Whether G-8 nations will do so depends on their ability to forget their self-interest and act together to reduce global inequality. People around the world no longer seem ready to tolerate inequality, poverty and the destruction of the environment.
- The soaring price of oil
- The global food crisis and
- Global climate change
It is reported that the main issues before the summit are:
- World economy
- Climate change
- Sustainable energy
- Nuclear non-proliferation
To put the power of G-8 in perspective against developing nations, it is noted that the G-8 industrialised countries constitute 60% of the the world's Gross Domestic Product and use 70% of the world's resources. Although they have only 20% of the world's population, their citizens consume 86% of all goods in the world. On the other hand, developing countries that constitute 80% of the world's population consume only 23% of the world's goods, although they possess 76% of the world's resources. Twenty five years of aid to the poorest nations by international financial institutions has failed to make an impact on poverty. Income growth measured in terms of aggregate GDP alone does not necessarily reduce poverty. Nor does it automatically nurture human development, which entails freedom from oppression, freedom from ignorance, and freedom from violence. The G-8 nations constitute the "core" of the world economy, and developing countries exist in the "perphery" of the global economy. This system is often called "neo-colonialism." Many economists believe that those countries which practice neo-colonialism have power without responsibility, while it means exploitation without redress for those which suffer because of that. During 2000-2004, it has been reported that there was a net transfer of financial resources of billions of dollars out of developing nations to rich nations, mostly G-8 countries. The developing nations expect that poverty reduction will be the aim of G-8 nations, more so at a time of soaring prices of oil and food items. For example, in Bangladesh the private think-tank, CPD, says that the price hike and the weighted inflationary impact on prices of commodities have brought an additional 8.5% people to below the poverty level. Inflation in an emerging power like India has reached 11.5 %. Sri Lanka's inflation reportedly rose to 28.2% in June. Everyone now agrees that it is inflation that poses the gravest risk to the economy of developing countries. The dilemma of policy makers in developing nations -- whether to cut interest rates to stimulate growth or to raise them to reduce inflation -- is shared by investors trying to decide what to do with their money. G-8 nations must consider the democratisation of IMF and World Bank, together with the UN. Many economists advocate for more equitably structured global institutions to reflect the present day realities of economic power of states. "There is a need for change, a strong case for a far-reaching re-examination of the institutional structure of the international world," Nobel laureate Amartya Sen argues. Energy and global warming
It is reported that electricity generation comes from five sources coal, oil, gas, nuclear power and hydro-power. Coal contributes 39%, oil 10%, gas 15%, nuclear power16%, and hydro-power 19% to the total electricity generation in the world. Global climate change is attributed to use of fossil fuels (coal, gas and oil) by industrialised and emerging powers. For example, it is reported that carbon emission per person in the US is 20.4, in China 3.84, India 1.20 and Bangladesh 0.25. G-8 nations spend more money in space exploration than in research and development of alternative sources of energy, namely, (a) solar power (b) wind power, (c) geo-thermal power d) tidal power and (e) hydro-power. Currently only 9% of energy in Asia is produced from renewable energy sources, and most of that is from hydroelectric power. G-8 countries must work to transfer climate-friendly technologies to poorer nations, as they are very expensive. Issues like poor housing, climate change, and rapid growth in urbanisation need to be tackled in developing countries, and the G-8 countries have a responsibility to address these burning issues. There is a reflexive relationship between urban transformation and climate change. The most obvious linkages between cities and climate change are through sea-level rise and current patterns of geographical urban expansion; if sea level rise just one metre, many coastal cities will be under threat (it is reported 32% of Bangladesh, including Sundarbans, will be lost if there is a one metre rise). Serious negotiations must be initiated by G-8 nations to help poorer countries to adapt to the effects of global warming, such as building seawalls to guard against rising oceans. The leaders of G-8 must realise that in a sea of poverty there cannot be an island of affluence, and the joint statement after the summit may clearly state the commitment of the G-8 nations to set time-bound goals to address poverty and climate change. Whether G-8 nations will do so depends on their ability to forget their self-interest and act together to reduce global inequality. People around the world no longer seem ready to tolerate inequality, poverty and the destruction of the environment.
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