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MDG GOAL 8. Develop a Global Partnership For Development. Maria Riley, OP Center of Concern July 2006. Strengths of the MDGs. Represent a global political consensus A political statement of values and principles Concrete goals and targets Recognize poverty is multi-dimensional

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mdg goal 8

MDG GOAL 8

Develop a Global Partnership

For Development

Maria Riley, OP

Center of Concern

July 2006

strengths of the mdgs
Strengths of the MDGs
  • Represent a global political consensus
  • A political statement of values and principles
  • Concrete goals and targets
  • Recognize poverty is multi-dimensional
  • Linked to the Human Rights Framework
  • Goals are good rallying points to engage people in poverty issues
shortcomings of the mdgs
Shortcomings of the MDGs
  • Top-down approach
  • Process of setting goals excluded key players – Southern governments and civil society
  • View poverty primarily in economic terms
  • Targets tend to ignore the complex processes of development
shortcoming con t
Shortcoming con’t.
  • Targets are selective and incomplete
  • Over emphasis on external financing
  • Distract attention from productive sectors, particular rural development
  • Distract attention from the macro-economic constraints inhibiting countries’ ability to development
  • Targets overly ambitious
fundamental question
Fundamental Question
  • Are the MDGs a numbers game or a call for structural and systemic change?
  • Goal 8 is the key to the realization of the other goals and points to the answer to this question.
key goal 8 issues and structures
Key Goal 8 Issues and Structures
  • Debt
    • Multilateral (World Bank, International Monetary Fund), Regional (Regional Development Banks), Bilateral Debt (Between Countries) and Commercial Debt (Banks)
  • Aid
    • Bilateral Aid – Donor Countries
  • Trade
    • Multilateral (WTO), Regional (NAFTA, etc), Bilateral Agreements (FTAs between Countries)
debt current situation
Debt – Current Situation
  • 2005 G8 Meeting(Canada, France, Germany, Italy, Japan, Russia, UK, US)
  • Promised the Multilateral Debt Relief Initiative (MDRI)
    • For countries that had completed the HIPC (Heavily Indebted Poor Countries Initiative)
    • Cancelled all debts owed to the IMF, the lending arm (IDA) of the World Bank and the African Development Bank
  • Went into effect July 1, 2006
mdri and the mdgs
MDRI and the MDGs
  • 19 countries affected – 15 in Sub-Saharan Africa
  • Will save US$1.1 bn on debt service payments over the next 10 years – overall will say $US50bn over 40 years
  • HIPC countries need an estimated US$10bn a year now to meet MDG goals.
  • MDRI releases only 10% of that
loopholes in mdri
Loopholes in MDRI
  • Excludes many low income countries and all poor middle income countries
  • Excludes Asia and Inter-American Development Banks from MDRI
  • Does not include all debt
  • Inconsistencies within initiative
  • Any debt service savings will reduce future credits
aid current situation
Aid – Current Situation
  • Conditions for effective aid
    • Must be delivered in sufficient quantities
    • Must be delivered on a predictable, low transaction cost
    • Requires “country ownership” – not tied to conditionalities set by donors
  • Despite some progress, none of these conditions has been met
mdg aid goals
MDG Aid Goals
  • Since 2001, aid has increased by 4% a year or US$12m
  • Very few countries are near or at the 0.7% of GDI goal
  • Too many countries do not fulfill their Aid commitments
  • Even if projected increases are delivered in full, there remains a huge shortfall for financing MDGs
trade current assessment
Trade – Current Assessment
  • WTO – Doha Development Round
    • Stalled negotiations – lack development focus
    • Critical areas
      • Agriculture – U.S. and EU subsidies
      • NAMA (Non-agricultural market access) – tariff rates
      • Services – diminishing flexibility
  • Aggressive demands by rich countries force developing countries to focus on damage control
  • Increased political co-operation and power among developing countries
    • G 20+
    • G 33 (now 45)
trade con t
Trade con’t.
  • Growing critique of trade liberalization
    • Rising poverty – globally and within countries
    • Failure to deliver on its early promises
        • Full employment
        • Reduction in poverty
        • Environmental Sustainability
    • Small number of nations prospering
    • Surprisingly little process in majority
  • U.S. and EU – strong move toward regional and bilateral trade agreements
u s participation in the mdgs
U.S. Participation in the MDGs
  • Debt
    • Participated in G8 2005 debt cancellation
    • Power player in the IFIs (WB/IMF)
    • Continues to hold bilateral debts
  • Aid
    • U.S, Japan and Italy give the lowest percentage of GNI to Aid
    • U.S. is the largest Aid donor in dollars
    • Increased aid by US$8bn since 2000
u s mdgs con t
U.S/MDGs con’t
  • Aid Programs
    • Traditional US AID and IFIs contribution
    • Millennium Challenge Account (Millennium Challenge Corporation)
    • HIV/AIDs Relief
  • Trade
    • Major negotiator for greater trade liberalization
    • Excessive agricultural subsidies
    • Aggressively seeking greater market access in agriculture, NAMA and Services
    • Strong limits on Special and Differential treatment for developing countries
canada and the mdgs
Canada and the MDGs
  • Aid
    • Increasing aid by 8% a year to double aid by 2010
    • Canada Fund for Africa – C$15million
  • Debt
    • Canadian Debt Initiative and Paris Club participation combined debt savings to approximately C$702m.
    • Participated in G8 MDRI
canada and mdgs con t
Canada and MDGs con’t
  • Trade
    • Greater access to Canadian Markets for developing country exports
    • Invested C$74 million in trade capacity building for developing countries
    • Strong advocate of trade liberalization and a member of the QUAD at the WTO with the U.S., EU, and Japan
return to fundamental question
Return to Fundamental Question
  • Are the MDGs a numbers game or a call for structural and systemic change?
  • More than a numbers game, but far from a call for structural and systemic change. This weakness sets the stage for the failure of the MDGs.
goal 8 target 12
Goal 8 – Target 12

Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system (includes a commitment to good governance, development and poverty reduction both nationally and internationally.

global economic integration leading edge of globalization
Global Economic Integration -Leading Edge of Globalization
  • Key elements
    • Trade
    • Foreign Direct Investment
    • Financial flows across borders, including debt
  • Driven by neo-liberal economic policy
neo liberal economic policy
Neo Liberal Economic Policy
  • The Economic Doctrine defining current rules
  • Laissez-Faire capitalism
  • Called economic liberalism in U.S. policy
  • Economistic worldview applied to Globalization
  • Subordinates culture, geography, ecology, social relations, human rights to economics
  • Treats economic policies as neutral and value free
  • Favors the economically powerful
neo liberal economics
Neo-Liberal Economics
  • Rests on economic fundamentalism and marketism – the law of supply and demand
  • Achieved by
    • Privatization
    • Liberalization
    • De(re)regulation
privatization
Transfer of public assets to private hands – utilities, land rights, communication bands, etc.

Privatizing policy implementation (Public-Private Partnerships) humanitarian aid, education, policing, prisons, military

Privatizing Public Services – water, health, education, utilities

Privatization
liberalization
Liberalization
  • Reduce or eliminate barriers to
      • Trade (forms of protectionism)
      • Foreign Exchange restrictions
      • Direct and indirect investments restrictions
  • Maintain barriers to labor (immigration)
  • Inconsistencies and double standards abound, with powerful states ignoring the rules they impose on weaker states
de re regulation
De(Re)regulation
  • Deregulate so-called barriers to trade
      • Wage and price controls, subsidies, fixed exchange rates, taxes, fees on business, quotas and tariffs
      • Environmental controls
      • Limit government power to regulate
  • Reregulate
      • Laws and rules to promote efficient operations of markets
      • Shift from state regulation to market-enabling governance
history of neo liberal policies
History of Neo-liberal Policies
  • 1980s: World Bank/IMF solutions to debt
    • Stabilization and structural adjustment programs (SAPs)(Washington Consensus)
      • Reduce government
      • Cut government spending – agriculture subsidies, services
      • Refocus production on exports
      • Deregulate key financial sectors – banking, investment
history con t
History con’t
  • Effects
    • Opened economies to trade, financial liberalization and speculation
    • Increased poverty and economic and social dislocation
    • Weakened the agricultural and rural sectors
    • Increased urban and outward migration
    • Growing unemployment and underemployment
    • Growing debt, personal and national
trade versus aid
Trade versus Aid

In 2002

U.S. Aid Lost Export

Earnings

Burkina Faso $10 million $13.7 million

Chad $5.7 million Nearly the same

Togo $4 million $7.4 million

where are we today
Where Are We Today?
  • Limited number of countries and peoples benefiting from global economic integration
  • Lack of a level playing field
  • Democracy deficit, concentration of economic and political power
  • Driven by corporate and financial interest
  • Diminished role of government
today con t
Today, con’t.
  • Ecological degradation
  • Lack of focus on social development and human rights
  • Growing global unemployment
  • Collapse of rural communities and sustainable agriculture
  • Concentration of wealth
  • Increased poverty
another world is possible
Another World is Possible
  • Critique of current model is increasing
    • Most developing countries
    • Some economists
    • Social Movements
  • Alternative economic systems and structures
    • Catholic Social Teaching
    • Feminist economic agenda
    • ILO Fair Globalization
catholic social teaching
Catholic Social Teaching

(We speak rather of) a society that is not directed against the market but demands that the market be appropriately controlled by the forces of society and by the state so as to guarantee that the basic needs of the whole society are satisfied.

Centesimus Annus, #35.1

catholic social teaching1
Catholic Social Teaching

But there are many human needs that find no place in the market. It is a strict duty of justice and truth not to let fundamental human needs to remain unsatisfied and not to let all those burdened by such needs to perish.

Centesimus Annus, #34

catholic social teaching2
Catholic Social Teaching

Certain objectives stated by Rerum Novarum remain valid if a person’s work and very being are not to be reduced to the level of a mere commodity.

The objectives include a sufficient wage for the support of the family, social insurance for old age and unemployment and adequate protection for the conditions of employment.Centesimus Annus, #34.1

feminist economic agenda
Feminist Economic Agenda
  • Methodological starting points
    • Social reproduction
    • Human well being as a measure of economic success
    • Importance of human action
    • Ethical judgments essential
    • Race/ethnicity, economic class, cultural diversities open different “standpoints”
    • Environmental Sustainability
ilo fair globalization
ILO Fair Globalization
  • A focus on people and their well-being
  • Democratic and effective state
  • Sustainable Development
    • Economic social development
    • Environmental sustainability
  • Productive and equitable markets
  • Fair rules
  • Global Solidarity
  • Deeper partnerships
  • Effective global governance
another world is possible1
Another World is Possible

Global Community

Not

A Global Market