19th August, 2006

ROD YULE

Could the Make Poverty History campaign actually make poverty history? It’s ambitious, but then so was William Wilberforce and the anti-slavery campaign...and Martin Luther King Jr and the civil rights campaign...and Desmond Tutu and the anti-apartheid campaign.

A UNITED VOICE: Some of the tens of thousands who gathered in Edinburgh last year while world leaders met the G8 summit in Gleneagles. PICTURE: Make Poverty History.

One year ago, global poverty was the focus of the G8 summit at Gleneagles. Thirty six million people, led by people like Nelson Mandela, Bono and Bob Geldof called world leaders to act to overcome the injustice of global poverty. Two billion people tuned in to watch the Live 8 concerts, and in the UK, 250,000 people marched across Edinburgh. In Australia, some 50,000 postcards were sent to Canberra calling on the Australian government to be more generous with our overseas aid. The world seemed united to actually do something of significance.

Has reality matched the rhetoric? One year on, what has been achieved?

Debt Relief
In March 2006, Zambia announced that basic health care would be free to everyone in the country. 4,500 teachers would be recruited, and new schools would be built. This was possible because Zambia’s $5 billion debt had been cancelled.

In January 2006, the International Monetary Fund cancelled the debts owed to it by 19 of the world’s poorest countries. This will transform the lives of millions of people and is a tribute to the prayer and active campaigning of individuals, churches and development organizations. It is a real and substantial outcome from the past 12 months.

This debt cancellation is the first step in the deal struck by the G8 in 2005 to cancel the debts owed by up to 40 of the world’s poorest countries. To ensure money is not wasted through corruption, these nations have developed poverty plans to demonstrate how the money saved will be used to help tackle poverty.

At the same time, there is the need for more debt relief. Heavily indebted countries like Bangladesh and Kenya remain excluded and there is no recognition of the illegitimate origins of much debt. For example, a country like South Africa continues to pay back billions of dollars lent to the former apartheid regime.

In the area of debt relief, the past year has seen genuine progress and significant changes in the alleviation of poverty and suffering.

Overseas Aid
An early encouragement was the announcement in September 2005 that the Australian government would increase our overseas aid from $2.2 billion in 2004-05 to $4 billion in 2010. This is an increase from 0.28 per cent of Gross National Income (GNI) to 0.36 per cent. This is a welcomed change in the right direction but it is still well below the UN target of 0.7 per cent- and the commitment of most developed countries.

At Gleneagles, the G8 promised to increase aid by $50 billion annually by 2010. On the face of it, G8 aid in 2005 increased by $21 billion or 37 per cent over its 2004 levels. It looks like a great success. However, the reality is that 80 per cent of this increase is made up of a one-off debt cancellation deal for Iraq and Nigeria. This is important and necessary for these countries, but is in fact a matter of double counting debt cancellation as aid - an accounting trick to mask a failure to increase the volume of real aid consistent with their Gleneagles commitments.

At the same time, the G8 made a commitment to achieving universal access to HIV treatment by 2010. By the end of 2005, just over 1 million HIV-infected people in poor countries accessed treatment. A real improvement and cause for celebration. However, there are 2.3 million children living with HIV and AIDS and while the United Kingdom funding for AIDS equates to $A20.60 per person, Australia’s total funding again lags behind and equates to $A4.08 per person.

With respect to aid, there is enough evidence of change to give hope and at the same time, to motivate continued action. The past year leaves no room for complacency, but neither is there room for despair.

Fair Trade
A fair international trading system for poor countries is essential to overcome global poverty. The average European Union cow receives a daily subsidy that is greater than the daily wage of 20 per cent of the world’s population. The agricultural subsidies provided to European and American farmers continue to be a stumbling block to real trade reform.

Disappointingly, after encouraging rhetoric at the G8 summit in 2005, the World Trade Organization meetings in Hong Kong (November 2005) and Switzerland (July 2006) failed to provide any real commitment to change. The Europeans are blaming the US, the US is claiming that developing nations want too much protection for their own agriculture and developing nations are wondering if the US and EU were ever really serious about giving a hand to lift millions out of poverty.

One light in the darkness, is the report that the US is prepared to cut subsidies, but not until after the Congressional elections in November. Professor of Economics at Columbia University, Jagdish Bhagwati, a leading trade and development economist, suggests that President Bush is poised to save the Doha trade negotiations. “I think he will play right after the election. Now, in the meantime, his hand has to be strengthened.” Certainly, Australia’s Trade Minister Mark Vaile believes negotiations will be saved. This is an issue for continued prayer and advocacy.

In the past year, the world has seen some progress and millions of lives saved or changed, but the G8 nations are not on track to deliver against the pledges they made at Gleneagles. Tim Costello, Make Poverty History co-chair and World Vision CEO, says the pressure was now on the G20 meeting of finance ministers in Melbourne.

“The November meeting of the G20 is not only a meeting of those with their hands on the levers of the world economy. It is an opportunity to breathe new life into the fight against poverty and we are pushing for it to be on top of the agenda."

Just as the anti-slavery and civil-rights campaigns demanded faithful perseverance in prayer and advocacy, so will the Make Poverty History campaign. If you want to keep informed and know how to be involved, check out the Make Poverty History website at www.makepovertyhistory.com.au or the Micah Challenge website at www.micahchallenge.org.au.

Rod Yule is education officer at World Vision Australia.