TWO INTERNATIONAL FORUMS DEBATE GLOBALISATION
While potential conflict in Iraq took centre stage at this year's World Economic Forum and World Social Forum -- both of which concluded this week -- participants also addressed international trade, the WTO and the next WTO Ministerial in Cancun. The World Economic Forum (WEF) took place in Davos, Switzerland from 23-28 January, while the World Social Forum (WSF), an event originally organised as a response to the former, was held in Porto Alegre, Brazil, on the same dates. The WEF, which brings world leaders, especially corporate representatives, together to address global citizenship and various other global challenges, was organised under the heading of "building trust." The WSF, which aims to unite a diverse body of groups and individuals opposing neo-liberalism and the current form of globalisation -- if not the trend of globalisation itself -- focused instead on the theme of peace.
Brazil's Lula - a bridge between the forums
Brazilian new president and former union leader Luiz Inacio Lula da Silva (also known as Lula), attended the two forums, bringing the same message to both: "another world is possible." He stressed the need to close the gap between rich and poor nations, especially through the eradication of hunger. He also said he saw no reason why parties at both events should not be able to come together and learn from one another, likening them to unions and management. He stated that once they begin a true dialogue, the challenges become less great than when the two sides refuse to talk.
On the issue of trade, Lula -- a leftist previously known for his opposition to the Free Trade Area of the Americas (FTAA) -- stated that Brazil needed to make "extraordinary effort(s)" to increase the nation's international trade, particularly by enhancing exports through diversification of products and markets. He also targeted wealthier nations, however, saying that "all the export effort that [poorer nations] make will be useless if countries continue to preach free trade on one side and practice protectionism on the other side." Dealing with bilateral issues, Lula vowed to enhance the South American Mercosur agreement, create a "more positive" US-Brazil relationship, and make efforts with Europe and Asia.
War and trade
A great deal of concern was voiced this year at the WEF, as participants made links between a possible war with Iraq to higher oil prices and potential continuation of difficult global economic times. At the WSF, other economic concerns in relation to the threat of war were raised. Some activists said that the conflict could hurt developing country bargaining positions at the next WTO Ministerial in Cancun (in September 2003). Martin Khor of the Malaysia-based Third World Network said that a conflict could distract developing nations from planning for the negotiations, and could allow industrialised countries to bring in new issues. Khor felt that the US had previously used 11 September as a tool to pressure other countries to accept its proposals at the last Ministerial in Doha.
Friends of the Earth International (FoEI), with delegations both at the WSF and to the 'The Public Eye on Davos' counter-conference in Davos, argued that the WEF was directly linked to the creation of the WTO and the North American Free Trade Agreement (NAFTA). FoEI stressed that WSF is "vital to formulate alternatives to neo-liberal economic globalisation policies and to review ways to minimise the negative impact of a corporate-led globalisation process."
What business needs, or needs to give
At a WEF event entitled "Next Trade Round: What Business Needs," Niall FitzGerald, Chair of Unilever UK, highlighted global poverty and the necessity to responsibly address this issue. He noted that "there is a rising tide of discontent and anger in the developing world and we need to understand that and address it." FitzGerald stressed the connection between trade and growth and the dangers to trade should the discontent over global resource use and access go unchecked. He went on to say, "If we want to defend prosperity and security, we have to attack poverty. If we don’t we will pay for it. This might be seen as enlightened self-interest, but for me it's a moral issue."
Other participants who were surveyed at the WEF event on the next trade round believed that for the next WTO trade negotiation round to be a success, four key areas must be addressed, including:
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Trade-distorting agricultural subsidies, especially in the EU and US;
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Markets must be opened in developed countries for textiles and other products from developing countries;
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Significant liberalisation of most major service sectors must be agreed, and this must include "the movement of natural persons" or labour mobility from developing countries to the rich economies; and
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Agreement must be reached urgently on adapting the Agreement on Trade- related Intellectual Property Rights (TRIPs) to allow poor countries to acquire cheap medicines, wherever they are available, to tackle AIDS and other health crises.
"100,000 expected at the World Social Forum," CWI BRAZIL, 23 January 2003; "WEF vs. WSF," PRAVDA, 24 January 2003; "Davos Versus Porto Alegre, Round Three," PRESS RELEASE, Friend of the Earth International, 15 January, 2003; "Brazil's Lula: 'Another World Possible," UPI, 23 January 2003; "Dialogue with the President of Brazil on Global Governance," WEF, 26 January 2003; " Remarks from President Lula da Silva of Brazil," WEF, 26 January 2003; "World Social Forum: War on Iraq would Affect WTO Trade Talks," IPS NEWS, 25 January 2003; "Next Trade Round: What Business Needs," WEF, 25 January 2003.