IPS | April 10, 2000 | By Anthony Stoppard
JOHANNESBURG - Economic issues -- like kick-starting the next round of the World Trade Organisation (WTO) talks and making sure that developing economies benefit from freer international trade -- will dominate the agenda of the South Summit, which opens in Havana, Cuba, Tuesday.
The South Summit is the first time the heads of states of the Group of 77 and China will meet together. Its official aim is to develop a common economic agenda for developing countries and set-up mechanisms that will carry out the summit's resolutions.
"The Group of 77 (G77) focuses specifically on economic issues confronting developing countries," explains Jerry Matsila, of the South African Department of Foreign Affairs.
According to a draft declaration, the main points on the summit agenda will be: economic globalisation; new technology; North-South relations and co-operation between the countries of the Southern hemisphere.
Of special importance in the draft is a call for the G77 to emphasise the role the United Nations can play in solving many of their economic problems, according to officials preparing for the summit.
With 133 member countries, the G77 is the largest coalition of developing countries in the United Nations. Summit organisers are expecting around 65 heads of state with about 30 from Africa.
As chair of the Non-Aligned Movement (NAM) South Africa will also have to represent the economic interests of those developing countries that will not be at the summit, says Matsila.
Explaining the likely benefits of another international summit to the man in the street, Matsila says: "The World Bank and International Monetary Fund (IMF) have revised the conditions for loans to developing countries.
"Before they put very restrictive conditions on loans, now they take local conditions into consideration and say: 'Here are our ideas'. These reforms are a result of Southern countries presenting a united front."
Mechanisms for debt relief for developing countries will also be on the agenda of the summit.
Explaining developing countries insistence on debt relief, Matsila said: "We need to say collectively that if we pay those debts, we will not have the chance to improve the quality of life of our people -- even under a democratic system."
During the summit, South Africa will be repeating its call for an early resumption on WTO talks for a new international trade regime.
"There is a general view within the Group of 77 and China that the interests of the South have been somewhat neglected in recent years.
"The South has little say in the governance of the global economy and the benefits flowing from globalisation and multi-lateral trade agreements have accrued disproportionately to the North," said the department in a statement.
In a nutshell, says Francis Kornegay of the South African Institute for International Affairs (SAIIA), the country wants a set of rules that will apply equally to all the trading nations of the world.
This would save countries having to go through drawn-out and detailed negotiations every time they want access to each other's markets.
"A set of rules would be in the interests of the South because it would break down Northern protectionism and provide access to their markets and make it incumbent on the developed economies to live up to their part of the agreement," says Kornegay.
South Africa has been working with some of the stronger economies of the South -- like Brazil, India, Egypt and Nigeria -- to bring together a critical mass of countries that will encourage each others economic development through trade and provide a working model for the next round of WTO talks.
"This will result in pools of economic growth and confidence in the South," said Matsila.
Kornegay thinks that the Southern countries can have a real impact on next round of WTO talks.
"The South is increasingly more organised and better prepared to engage the developed countries in negotiations. They also have the power to veto WTO agreements. The developed economies have committed themselves to this process and if they want progress in the WTO talks, they have no choice but to accommodate the Southern countries," he explains.
The G7 countries have been invited as observers to the summit. "It is important that they understand that lopsided development is a threat to the security of all of us," explains Matsila.
Kornegay also believes the summit is being held at an opportune time.
"Between the collapse of the Seattle round of talks and the reconvening of the WTO talks this year -- maybe next year because of the elections in the United States -- the summit is an ideal platform for the South to develop a joint position on the talks."
If the summit brings about greater links between the regional trade blocs in the South -- like the Southern Africa Development Community, or Mercusor in South America -- then it will have helped the developing economies come to terms with globalisation and begin to flesh out concepts like South-South co-operation, says Kornegay.IPS:
