Trans-Atlantic Council: International Development

Conference Report

By: Krystle Corpuz

What can Trans-Atlantic relations do to decrease poverty?

1. Economic Growth:

Emphasize sustained social economic growth for 30-40 years and uphold it as legitimate. Benefits from sustained growth must be widespread and positively affects income distribution. These legitimate reforms will affect the legitimacy of government and its political systems.

• Look towards the booming economic progress of India and China

• Positive impacts of globalization: developing countries should take advantage of businesses and Multi-National Corporations who choose to invest in their country.

2. Democracy

The main question comes into play: Can economies progress in the presence of corrupt governments?

International development is an issue that has many gray areas. Many of these developing nations face problems within their own government’s infrastructure. How can they manage to maintain a progressing economy if they cannot control the whims of their political leaders in power? Can economic progress dispel the problems of corrupt governments? Often times this is not the case. Throughout the discussions presented amongst students and experts alike, the major problem many developing countries face is the continuing threat from their own corrupt infrastructure. Often times they find their own progressing economy being taking advantaged of by their corrupt leaders.

3. Ending Poverty:

Stressing the Millennium Development Goals:

The panel stressed entrepreneurship when it comes to ending poverty. The only way to effectively decrease poverty numbers, developing countries must take advantage of businesses and multi-national corporations who decide to invest in their country. This means opening their country to free trade. Though globalization may expose a country to risks such as low wage labor or westernization, the only way for a country to economically progress is if they have enough revenue in their government to sustain their infrastructure. According to international trade theory, developing countries have a comparative advantage when it comes to producing manufactured goods and as long as they maintain some economic balance their growth will slowly increase. If they choose to close their economy from outside influences, then their overall economic progress will be limited to only the goods they produce. It is important for developing countries to learn how to control their economic potential in the global market.

The Role of the G8 in the World

By: Matt Thieleman

The G8 summit was widely publicized this summer, as world leaders met in St. Petersburg to discuss the eight countries' jobs in global issues. As a group, the G8 holds very little real power. Meetings are described as more of fireside chats than true organizational hearings. The power of the G8 is further limited by its perceived legitimacy by countries excluded from it. There are no official membership criteria, so it seems to be no more than an exclusive power club that does not do much work.

As a security actor, the G8 focuses on three areas. First is terrorism. The meeting in Scotland in 2005 showed a great concern by leaders to reduce the threat of terrorism throughout the world. Second is proliferation of WMD. In 2002 they reached an agreement on non-proliferation of WMD material, but it resulted in no implementation. Again, the power of the G8 to enact change is limited. Finally, they focus on regional and internal conflict. The latest example of this is a 2001 agreement to aid the African Union, which too had problems of little coordination between G8 member states.

As a promoter of global health, the G8 has focused on funding to developing countries, particularly in eradicating disease. British Prime Minister Tony Blair called for each member to double the amount of African aid in 2005. However, only two countried in the G8 have increased funding since 2005: the United States and the UK. Three members, Italy, Canada and Germany have actually decreased their funding. This is further evidence that agreements reached by the G8 do not guarantee results.

Debt cancellation was the final topic of discussion by the panel. The G8 countries agreed to take on the debt of many poor countries, but with strict guidelines as to how repayment would take place. Countries must work through a program policed by the HIPC, work to increase business privatization in the country and decrease the amount they pay back until it reaches zero. This program, however, provs difficult to stay in step with . Malawi, for example, was forced to sell their grain reserve to stay on track with the program because the HIPC told them it was not needed. A famine hit the country and they ended up spending more to get food back than what they earned selling the grain. Further, privatization reduces the incentive for companies to provide for the most poor. The countries are in debt because a large part of their population is in poverty; decreasing aid to these individuals does not help solve this problem. Finally, the debt relief only includes IMF and World Bank and does not include anough countries. Only 21 so far have received relief, while 67 need debt cancellation in order to meet the 2015 goal to end global poverty.