Jamaica Gleaner
Published: Sunday | October 25, 2009
Home : In Focus
Two summits, two world visions

Robert Buddan

Two very important summits have been held within a month, each providing a radically different vision and plan for the better world order we so badly need. The G-20 Summit of September 24-25 was followed by the ALBA (Bolivarian Alliance for the People of our America) Summit of October 16-17.

World Food Day (October 17-18) marked the sad fact that one billion people, or one-sixth of the world's population are chronically hungry. This past year, the chronically hungry increased by 105 million. The G-20 summit's communique itself admitted more than four billion people remain under-educated, ill-equipped with money and tools and insufficiently able to trade and do business in the global economy. It is a terrible indictment against the failed international order and we have needed a better one for a long time now.

There is, however, some change happening. However, this has come about because of massive global failings, made glaring by the world financial crisis, and because of the strident urgings of reformists over many decades. The G-8, a club of elite rich countries, has now been transcended by the G-20. The G-20 is a club of the big economies that account for 85 per cent of global income. Yet, it still excludes 85 per cent of the countries of the United Nations. It is by no means as universal as the General Assembly of the UN.

The G-20 does not represent the poor countries as much as it represents the rich ones. Only one African country - South Africa - is among that 20. However, there are five European countries, plus the European Union, which has an additional seat, and two North American countries. Australia and Japan are other members. Nine members come from the western bloc. However, there is progress. China, India, Brazil, South Africa, Argentina, Indonesia, South Korea, Mexico, Saudi Arabia and Turkey come from the South. Many of these are pro-western states but alternative visions will come from China, India, Brazil and South Africa.

Power over global economic organisations will remain in traditional hands. The United States keeps 16.5 per cent of the voting power of the International Monetary Fund (IMF), enough to guarantee it veto power. The developing countries have been given a token improvement of five per cent and the voting power of the European members has been reduced by five per cent in sacrifice. The voting power of the developing countries in the World Bank has increased by a mere three per cent. Neither of these increases will allow the developing countries to win any important decision the developed countries oppose.

RADICAL CHANGES

ALBA represents more radical changes. ALBA has nine members, three of whom are from CARICOM. There were five observer countries at the last summit, including two from the Caribbean - Haiti (from CARICOM) and the Dominican Republic (from CARIFORUM). Though small, ALBA speaks to a global agenda that includes climate care and the rights of developing countries.

ALBA has already had a greater impact on countries in the hemisphere than the western countries have had over the last 10 years, mainly through PetroCaribe's oil agreements. However, its impact is being felt through the ALBA Bank as well. At this year's summit, ALBA agreed to other radically new ideas. The members will have their own currency for trading. They will establish an arbitration mechanism, develop an economic zone; and establish a defence council. A summit of ALBA's social movements was also held with more than 700 representatives from 40 countries.

NEW KIND OF DEMOCRACY

ALBA stands for a new kind of democracy. President Hugo Chavez himself has a 62 per cent approval rating in Venezuela, more than can be said for so many other leaders. His country's oil wealth is used to help the poor. ALBA members won't have anything to do with the military that overthrew the elected president of Honduras either. Again, we can't say the same for those western governments that say they support democracy.

There is a kind of transnational democracy across ALBA's member countries. In this democracy, member governments are represented on councils (social, economic, political) that follow up cross-country programmes. Such programmes include the very successful literacy programme and other programmes funded by the ALBA Bank. In this way the ALBA Bank is directed by the member countries to impact people's lives in a way that the World Bank and does not.

ALBA is also interested in developing a democracy of equality. Its members want to establish a council for women's equality and opportunity. The reason is obvious. Women in the Americas are among the region's poorest people. Poorer still are indigenous people whose lands were stolen from them. So, October 12 was celebrated as Indigenous Resistance Day (formerly Columbus Day) in Venezuela and land grants were provided to many communities of indigenous peoples.

WORLD ORDER

There is a vision of a world order that many of us have in which human values are non-negotiable. World Food Day reminds us that we are far from this. Millions of people don't eat what they grow because they have no land on which to grow anything and they don't eat what others grow because they have no money to pay for it. In a better world order too, the mighty does not trample the weak. So, a country does not do unethical things to make its dollar strong and then take advantage of those with a weak dollar.

Rich G-20 countries are still protectionist and probably more so in this crisis. A better world order is also one where the few don't make decisions for the many, such as development-banking decisions. Money is power and decision-making about who gets money, for what and on what terms is a source of great power.

A country like Jamaica does not have a seat at the G-20 table and has no natural ally at that table. In fact, small island states, on a whole, don't have representation in the G-20. Jamaica is not a member of or was not an observer at the ALBA summit either. We cannot sit outside of the main international fora for trade, investment and development. CARICOM, our regional group, has fallen behind many regional groupings in the hemisphere.

THE BEST OF ALL WORLDS

We must ask, which of these fora offer opportunities for education and health care for the mass of our people who cannot afford them? Which offer opportunity to trade in goods if we are short of foreign exchange? Which is willing to condemn undemocratic seizures of power as happened in Honduras? Which allows us to explore for oil and minerals together? Which has more democratic decision-making structures? Which ones are tough on climate change violations? Which seeks greater equality for women and the landless? Countries like Jamaica must have their vision too, and the strategy to get the best of all worlds.

We are not doing enough to explore our options. Our Ministry of Foreign Affairs and Foreign Trade should, and hopefully is already seriously studying the ALBA Bank, currency plans, social solidarity programmes, and trading system, if only to know what options exist and what possibilities can be enjoyed. The IMF cannot be our only option.

Robert Buddan lectures in the Department of Government, UWI, Mona. Email: Robert.Buddan@uwimona.edu.jm or columns@gleanerjm.com.

Home | Lead Stories | News | Business | Sport | Commentary | Letters | Entertainment | Arts &Leisure | Outlook | In Focus | Auto | War-Drugs, Gangs and Extradition |