The WCC calls on the G8 to see the current global problems in a holistic way and not only adopt a piecemeal approach based on minor adjustments. It is in this spirit that we call on the G8 to consider seriously how to operationalise goal number 8 of the MDGs. Issues of equity and justice must be addressed under this goal if poverty is to be eliminated. We believe firmly that it is this goal that will determine the success of the remaining seven. It is indeed regrettable that the MDG process is the most unspecific when it comes to implementation. Trade expansion and increased growth cannot be achieved by neglecting equity and justice. We therefore urge the G8 to make equity and justice central to their deliberations.
On the question of external debts
In the short term, the WCC urges the G8 to cancel 100% of illegitimate debts for poor countries. However, the WCC asks that these measures be taken in following through this commitment:
Finance of cancellation should not be drawn from ODA.
There should be a 100% cancellation of debt stock and the focus should not be only on relieving debt service payments (UK plan).
Cancellation be applied to all impoverished nations, not simply to those that qualify for the IMF/World Bank’s HIPC initiative.
Debt cancellation to come without externally imposed conditions on impoverished nations.
IMF/World Bank must pay their fair share. The IMF could sell its gold reserves to raise more than US$35 billion required to finance the cancellation of the IMF and World Bank debts. The World Bank could mobilise at least US$17 billion in accumulated and future profits for debt cancellation.
Support be given to initiatives to transfer financial resources from the South to the North and return stolen wealth of the South that is presently located in the banks of countries in the North.
Support the introduction of a Currency Transaction Tax to curb financial speculation.
On ODA
As far back as 1970, the WCC initiated the goal of 2% of GNI dedicated to ODA. We still believe this should be the goal. However, for pragmatic reasons and in the short term, we urge the G8 to:
Achieve an average level of 0.7% of GNI to be allocated to overseas aid by 2010.
Donors adopt timetables for reaching the target of 0.7%.
Prioritise low-income countries and allocate at least 20% of aid to the improvement of education, health care, water supplies and sanitation in these countries.
No requirements to be imposed to purchase goods and services in donor countries (so- called ‘tied aid’).
Aid aimed at building the economic capacity of developing countries.
On Trade
So as to ensure justice and fairness in trade, the WCC calls on the G8 to take the following measures:
Give poor farmers in developing countries a chance to participate in a just trade enabling them to get out of poverty, by immediately eliminating all export subsidies in donor countries.
Eliminate all trade-distorting subsidies.
Support the right of developing countries to protect their sensitive agricultural sectors.
Ensure that market-access concessions work in favour of the poor.
