G8, the challenge of global poverty and contradictions of anti-globalisation

international | anti-capitalism | other press Monday June 27, 2005 13:15 by Michael Hennigan - Finfacts

We live in an imperfect and complex world but while there is still a serious issue with global poverty, let us acknowledge, that there have been significant advances in poverty reduction, in particular in Asia, in the past quarter century.

The proposed reform of the EU sugar market last week is an illustration of the complexity in arriving at solutions that can reconcile conflicting interests among developing countries and the interests of workers in rich countries.

The proposal to reform the protected EU sugar market, followed a complaint that was brought to the WTO by two developing countries - Brazil and Thailand - and Australia. However, the planned cut in the price for white sugar by 39% will seriously affect poor countries in the Carribeen in particular.

A UN report published on June 9th, profiles a world that has achieved unprecedented gains against poverty in Asia, but also one where mothers and children in many parts of the world are dying from causes which are treatable and preventable, and where half of the developing world lacks access to simple sanitation.

The issue of global poverty is often looked at in simplistic terms as was presented in an Irish Times article last week by William Hederman, an associate of Vincent Browne's.

In an approach reminiscent of the neo-cons' criticism of the UN, Hederman appears to see no virtue in the IMF and the World Bank, which are merely tools of multinational corporations.

There is of course no multilateral body that cannot be criticised but when there is no balance, what should be made of other arguments?

Hederman writes: "Bolivia possesses South America's second-largest gas reserves, but remains the poorest country on the continent. Its gas reserves were privatised in the mid-1990s, so the revenue accrues to multinational oil companies rather than funding basic services."

Apparently most of the reserves have been discovered following foreign exploration investment of $2,5bn since 1997. This of course is an inconvenient fact.