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Agenda  

Yet again, leaders of the eight richest nations under the club of G8 met in Toyako, Japan, last week. There were several other heads of state too, who descended on the island resort to meet their counterparts; Prime Minister Meles Zenawi was one of them, although he rushed back home after only an overnight stay, reported MICHAEL CHEBUD, FORTUNE STAFF WRITER, from HOKKAIDO – JAPAN.

Laughing it off: Prime Minister Meles Zenawi (left) With EU Chairman Jose Manuel Barroso

The three-day Group of Eight (G-8) Summit was wrapped up on Wednesday, July 9, in Japan’s leadership of the G8 being tested by a raft of new global challenges.

The Toyako Summit, which Japan has chaired for the fifth time, was the largest-ever in terms of the number of participating states, as seven African countries and an additional seven emerging economies, including China and India, were invited to outreach sessions. Monday’s outreach sessions were devoted to African development and other Africa-related topics, including soaring food and oil prices, which have a particularly strong impact on people in poor states.

Heads of state of African countries of Algeria, Ghana, Nigeria, Senegal, South Africa, Tanzania, as well as the African Union (AU), met in outreach sessions on the sidelines of the summit to deliver African views to G8 leaders. Prime Minister Meles Zenawi was one of these participants of the first day’s meeting with the eight most powerful nations on July 7.

His presence was sought to such an important event as he currently chairs the implementation committee of the New Partnership for Africa’s Development (NePAD). The other African states were chosen because they are founding members of the partnership.

Meles arrived at Hokkaido on Monday morning with Neway Gebreab, his economic policy advisor, and directly proceeded to the outreach working lunch at the Windsor Hotel in Toyako, one of the green provinces of the island in northern Japan. He eventually deliberated with G-8 and other African leaders on a range of subjects troubling Africa in the afternoon.

 

 

“At the mid-point to the Millennium Development Goals (MDGs), although progress has been made, significant challenges remain,” Yasuo Fukuda, prime minister of the host country, Japan, told the African leaders. “We renew our commitment to these goals by reinvigorating our efforts, and by strengthening our partnerships with, as well as encouraging the efforts of, the developing countries.”

 

Indeed, his promises were fortified with new pledges to Africa in the G-8 session the following day. The countries promised to increase Official Development Assistance (ODA) by 25 billion dollars a year in two years, with a possible further increase after three-year based assessments. They have also agreed to provide a projected 60 billion dollars in the next five years to fight infectious diseases and strengthen health, and 100 million nets through bilateral and multilateral assistance, in partnership with other stakeholders within the same period.

   

They all had reason to pray

 

Not all believe these promises will be fulfilled in the time frame they set, considering the track-record of their past pledges.

“They have not been forthcoming in translating their promises into action so far,” Abdirashid Dulane, Ethiopia’s ambassador to Japan, told Fortune.

He is not alone. A number of aid agencies have been castigating the club of the eight wealthy nations for failing to live up to their commitments.

In their summit in Gleneagles, Scotland, in 2005, the leaders of the group - most of which have finished their terms - had pledged to double aid to Africa to 50 billion dollars by 2010. Three years down the road, several member nations are far behind meeting their goals, falling short by a staggering 30 billion dollars, which according to Oxfam could cost five million lives.

“I have made it absolutely clear to my colleagues that we expect them to live up to the commitment that have been made at Gleneagles,” Gordon Brown, prime minister of the UK, told journalists in Hokkaido.

The G8 – United Kingdom, Canada, France, Germany, Italy, Japan, Russia and the United States - are accustomed to criticisms, often marred by violent demonstrations staged by those who oppose their alleged failures. They are not new to global challenges, too.

When Japan hosted the summit for the first time in 1979, they were close on the heels of the second oil shock. In 2000, when the world leaders met on the southern Japanese island of Okinawa, they had talked about difficult problems such as funding to fight epidemics. The challenges the leaders faced in their summit last week - rising prices of energy and food exacerbating hike in general price level of other consumer goods - seemed to be even deeper.

Nowhere is this challenge more apparent than Ethiopia. The country’s expenditure for the procurement of oil has significantly increased due to the commodity’s unpalatable price surge. For instance, the 10.1 billion Br the country spent in the first three quarters of the current budget year is two billion Br higher than what was spent in the entire year for the purchase of oil last year. This has apparently played a pivotal role in driving prices of basic goods higher - especially the urban poor - to the limits of jumping meals.

The attempts of the federal government to keep the inflation - that now hovers around 20pc - at a single digit for over one year has also been futile so far.

“In Ethiopia, some of the poorest can now buy only 40pc of the food they could do two years ago,” said the world’s independent children’s charity, Save the Children, last week at the summit.

These are among the 105 million people to be pushed into poverty as a result of food price rises adding up to the already hungry 854 million people, of which 178 million are children under five, according to the World Bank.

This was not an easy challenge for leaders the G8, who expressed their concerns gathering at the resort province of Hokkaido, for three days.

“We are deeply concerned that the steep rise in global food prices, coupled with availability problems, in a number of developing countries is threatening global food security,” they said in a joint statement after their deliberations last week on Wednesday. “The negative impacts of this recent trend could push millions more back into poverty, rolling back progress made towards achieving the Millennium Development Goals (MDG).”

The countries have, in January 2008, committed to provide 10 billion dollars to support food aid, nutrition interventions, social protection activities and measures to increase agricultural output in affected nations. Moreover, one of the eight richest countries, Japan, has just over a month ago promised to double its ODA to African states by 2012, a promise made at the Fourth Tokyo International Conference on Africa Development (TICAD IV), held with 51 nations from Africa, including Prime Minister Meles, labeling the current year as “Africa Year”. With this bilateral meeting, Japan, unlike the other seven, has pledged further to strengthen its assistance, which earned it  credit among the G-8 leaders last week.

This view is shared by Ambassador Abdirashid.

Says he: “I appreciate that the Japanese government has taken the lead in this matter. We want the other G-8 countries to follow suit.”

At the beginning of the working sessions with African leaders, including Prime Minister Meles, Japanese Prime Minister Yasuo Fukuda reported the results of the TICAD IV that was held in May, reiterating Japan’s pledge to double African aid by 2012.

Japan will also beef up assistance to increase private-sector investment in Africa, emphasizing the importance of economic growth in overcoming poverty in Africa, Fukuda said. The richest Far East nation has revealed a follow up and action plan documents under the ‘Yokohama Declaration’ adopted in May this year, to provide a roadmap for the support of Africa’s growth and development, under the TICAD process.

This was developed after African leaders noted that past promises made at G8 summits often fell short due to the lack of proper follow-up mechanisms.

On top of price hikes and Africa’s development, one of the main discussion issues in this year’s summit was climate change. Although the countries all promised to cut global carbon emissions by 50pc in 2050, they have not yet satisfied environmentalists who demand an even shorter interim targets with specific time frames.

Japan was at the forefront of showcasing environmentally friendly technologies during the summit. Budgeting 60 billion Yen for the organisation of the summit, the country has exhibited cutting age technologies that are said to be eco-friendly.

This, however, has not spared it from criticisms in compensating the poor in Africa for its carbon emissions as agreed in the Gleneagles summit.

“The country that emits greater carbon than all the sub-Saharan African countries combined has not simply done enough,” Antonio Hill, Oxfam spokesperson, told Fortune. “It is a scandal.”

Against the backdrop of such global challenges, the chair country has however effectively hosted the summit in its island with thick jungle trees.

From the total cost Japan incurred in organising the summit, about 30 billion Yen was used by the National Police Agency for patrolling the venues, including taking counterterrorism measures, and about 25.5 billion Yen was spent by the foreign office.

The Ministry of Defense and Japan Coast Guard budgeted around one billion Yen each for transporting the leaders and patrolling sea areas near the venue. The Ministry of Foreign Affairs has spent around nine billion Yen on preparing the communications infrastructure between the summit venue in Toyako and Rusutsu, where the international media center is located. The Ministry budgeted around five billion Yen for the media center, which is constructed on a parking lot in a ski-resort and has accommodated around 4,000 delegates from the press and governments.

Japan has handed over the summit organisation to Italy, which will be hosting next year’s G-8summit.

MICHAEL CHEBUD
FORTUNE STAFF WRITER

 
 
 
 
   
 
 
 

 

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