| GCAP Policy Paper September 2011 |
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Perspective The state of the world in August 2011 is vastly different to August 2010 when GCAP-SA issued the first version of this policy discussion document . Civil uprisings across the Middle East and Africa along with the ongoing trickle down effects of the global recession have created a tinderbox global socio-political climate. The more visible effects of climate change and the violent crackdowns by dictators on their own people merely serve to add fuel to this volatile climate. The recent debt ceiling compromise deal of President Barack Obama in the United States and the working class based riots in London are all markers of a people tired with an economic system that cheats them of their desire to live productive and safe lives. In South Africa, systemic unemployment remains a deeply entrenched challenge, and the very understandable frustrations arising from it are conspicuously increasing and increasingly threaten to boil over into violence. Growing calls by the ANC Youth League for the nationalization of key industries and redistribution of land resources, and the taking of broadly supportive positions from COSATU and other formations, has given rise to major tensions within the ANC, between the ANC and ANCYL, and within the ruling alliance. Yet the challenges we face in the development arena and in particular the development of common economic lobbying positions remain largely the same. Africans in particular and the global south in general are still the net losers of economic opportunity at each G8 and G20 meeting and this continues to add pressure to the people trapped in generational poverty across the world. The current model of consumption-based development idolised by the developed countries is not sustainable and is driven by narrow consumerism, profit and advantage. We need a new ethical, values-driven development inspired by the African values of justice, balance and reciprocity espoused in the African philosophy of Ubuntu and Ancient Egyptian Maat. Charles Abugre of the UN Millennium Campaign suggests that the current development model is based on “robbing the poor to feed the rich” . Developing countries are net providers of capital to the rich world and therefore delivering on aid commitments should cease to be taken as voluntary benevolence, to be discarded when inconvenient, but as an obligation that must be honoured and enforceable in international law. The challenge of achieving the MDGs in the few remaining years requires significantly increased financing efforts by G8 and G20 governments. The freezing or reduction of aid by some G8 governments, earmarked for poverty reduction and achieving the MDGs, has undermined extensive efforts by African countries toward achieving the MDGs with regard to education, health and social services. While we recognise and welcome the release of the 2011 Deauville Accountability Report, which claims that some progress has been made in health and food security, we are still concerned about the inability of G8/G20 countries to meet their commitments. This discussion document has been prepared by the South African GCAP Coalition and serves as a locus for dialogue at a national, regional and international level on progressive and cross-cutting policy positions across government, business, labour and civil society. Given that South Africa’s position as a member of the G20 has failed to produce any tangible benefits for other African countries, it is imperative that we work towards developing common positions that can be tabled at the African Union (AU) as the key political leverage point for the continent; at the same time we must continue to exert pressure upon the AU to act more decisively and more effectively upon its mandate. We also look forward to deeper engagement on these policy points at NEPAD, the various UN bodies, and with our comrades in the South African government. 1. Development Commitments The credibility of the G8 on the issue of combating poverty rests on its accountability for past promises. However, in June 2010 at Muskoka, the G8 totally ignored the commitments made at Gleneagles in 2005 . Collectively, the G8 leaders have thus defaulted on their commitments on issues from official development assistance (ODA) and health, to trade reform. Despite the few individual attempts to meet the commitments, the G8 has collectively failed to grasp the opportunity to set a path towards addressing the gap between stated commitments and necessary actions to put the MDGs back on track. In 2010, G8 and G20 leaders showed they have no appetite to improve their accountability to effectively meet, let alone exceed, past commitments on health care, HIV and AIDS, education, water, decent work and African development. The failure of the G20 to adopt the G8 Africa Action Plan or develop an equivalent is profoundly unsatisfactory, and we call on the G20 to remedy this situation. Advocacy Action
2. The Global Economic and Financial System The impact of the financial crisis on the developing world has been devastating: an additional 53 million people are living on less than $1.25 per day . While important progress has been made in debt cancellation, the global recession has undermined hard-won gains while increasing the risk of a new and profound economic crisis on the African continent. While attention has been focused heavily on Greece, Portugal and Italy in the Eurozone debt crisis – which has seen over USD$90 billion being provided by the IMF – Africa’s comparatively moderate development needs continue to tack the back burner in global economic discussions and choices. The G20 leaders have failed to concretise coordinated solutions to sustaining global financial infrastructure and related mechanisms to truly avoid further systemic risk in ways that can begin to transform economic systems and institutions to deliver decent work and sustainable development for all. Achieving global financial stability will require democratising international financial institutions, implementing appropriate rules for regulating the mechanisms and flows of global finance, and supporting innovative financing mechanisms that play the dual role of increasing sustainability, while providing funds for shocks and for development. There is need for the continuation of regulatory reform, supervision and oversight of systemically significant international financial institutions (IFIs) and economies. Regulation must be incrementally tailored to support systemic sustainability without infringing on the ability of necessary capital flow to Africa, where developmental and capital finance is the lifeblood for achieving the MDGs. The new Basel 3 accord, being developed currently, should aim at addressing these issues. Advocacy Action
There is growing momentum on the discussion and implementation of a Financial Transactions Tax (FTT) to be imposed on the speculative capital market. The recent news that the FTT has been placed on the agenda for discussion in France gives impetus to the broader social movement for such a tax. The Gates Foundation report on financing for development is likely to be a useful input to the debate on acceptable financing mechanism for development and the FTT. At a Global Campaign for Education launch hosted by the Nelson Mandela Foundation, former British Prime Minister Gordon Brown stated in his report that a financial transaction levy would be a credible and sustainable financing mechanism, which bears similarity to the FTT. Globally, economists including Jeffrey Sachs have supported the FTT. Given the high levels of poverty and inequality on the African continent and the lack of social service delivery to poor people, the FTT would provide an ideal funding mechanism for the positive realisation of human development. We continue to advocate for this tax in order to provide a fund that can be used in tackling challenges arising from systemic downturns caused by financial institutions, and as a mechanism for development financing for the achievement of the MDGs. Advocacy Action
4. Carbon Rules - Climate Change Despite the near-total failure of the past two rounds of global climate talks under the UNFCCC process – Copenhagen in 2009, Cancun in 2010 – as well as concerns about the South African government’s preparedness for the next round in Durban, recent indications from the “BASIC” countries (Brazil, South Africa, India and China) to pursue an extension of the Kyoto Protocol at the COP17 provide some basis for at least limited optimism. Nevertheless, enormous political challenges remain due to additional pressure on political elites to stimulate economic activity and job creation in light of the global financial / economic crisis, exacerbated by entrenched energy-sector interests and mindsets. But natural systems pay no heed to human politics, and the urgent requirement for a binding global agreement to limit carbon emissions remains. Such an agreement must also make steps to ensure just outcomes in order to secure the possibility of a future peaceful world. World leaders must complete a climate treaty as soon as possible that is consistent with the Copenhagen Accord’s goal of keeping global warming below 2°C; this treaty must be:
Advocacy Action
5. Who Is At the Table? Considering that the membership of the G20 meetings hold the most economic power over the development agenda globally, we feel that the chairpersonship of the AU should be given an equal voice and a seat at the G20 as a continental force. African representation at that level has largely been invitational, excepting South Africa, which is the only African member of the G20. Considering that Africa has a high prevalence of poverty and is most affected by the outcomes of G20 deliberations, its exclusion to date has proved counterproductive to G20 aims. This arrangement has also been disadvantageous to the continent as there are no report-back mechanisms in place, rendering it difficult for African nations to hold those representatives accountable. Yet, Africans are most affected by the choices of the G20. Africa is, without a doubt, subject to the systemic influences (and failures) of the G20 countries, and given the lack of solidarity action on behalf of the continent from South Africa, we need to ensure that we drive a continental agenda through the AU on the world stage. Advocacy Action
The re-emergence of rising food prices and price volatility in international markets, the existence of acute food insecurity in some regions such as East Africa, and the continuing slow emergency in child and maternal malnutrition has drawn the attention of the G20. Since the food price crisis of 2008, much analysis and many commitments have been made, however action has clearly fallen short of what is required. To date, the G20 has identified the major causes of the hunger crisis and has supported a number of actions intended to reduce these problems such as the piloting of emergency food reserves, establishment of an agricultural market information system, acknowledging the importance of agriculture in improving child nutrition and continuing the implementation of the L’Aquila Initiative. However the G20 must go further than this. While it does not have the sole responsibility, the G20 with its significant member resources and political clout is in a unique position to ensure that effective continuing mechanisms and strategies are in place to solve these problems. Advocacy Action(s) 1. The G20 must work with the governments, the UN, other transnational bodies, civil society and the private sector to develop a global strategy and mechanisms that ensure early and effective responses to prevent acute food insecurity and malnutrition; especially in fragile environments.
Specifically, the G20 should:
The G20 should implement a package of measures to reduce the upward pressure on prices and reduce food price volatility. In addition to the establishment of the Agricultural Market Information System the G20 should facilitate:
Although the G8 unveiled the Muskoka initiative to strengthen country led health systems there has been minimal support for the Consensus for Maternal, Newborn and Child Health which has been a huge failure due to the meagre amounts offered for this crucial development challenge. With the failure of the G8 to respond strongly, we now look to the G20 countries to step up to their responsibility to carry the momentum forward and ensure solid progress in saving the lives of millions of women and children before the 2015 Millennium Development Goals deadline. The life of millions of children especially in the developing countries remains to fate as the Muskoka Initiative for Maternal and Child Health which has up to now been underfunded. We STILL need a proper action plan, which adequately provides for long-term funding to ensure universal access to essential maternal and child health services in developing countries, with priority to the thirty countries that have the highest rates and numbers of deaths. Again, it is largely women and children from Africa who will suffer most for the lack of resources to reduce child and maternal mortality. Advocacy Action(s)
About GCAP in South Africa GCAP SA is an informal self-selecting collective of civil society groups, business and individuals sharing common values, working toward an end to poverty and the achievement of the MDGs in a multi-disciplinary approach. GCAP-SA is part of GCAP, which challenges the structures and institutions that perpetuate poverty and is the world’s largest social movement with a presence in over 100 countries. Members, Partners & Supporters • ACESS, African Monitor, Black Earth Communications, Black Sash • CAF (Charities Aid Foundation) Southern Africa, CDRA, Child Care South Africa, Childline KZN • Coolpolitics South Africa, Crossroads International • Eastern Cape Social Service and Development Forum, Elgin Learning Foundation, Epiphany Media • Global Poverty Program, Gold Peer Education • HIV-911, Hope2educate • Inter Press Service (IPS), ISAAC (International Strategic Alliance of Apostolic Churches) • Koinonia • National Welfare Forum (NWF), Nelspruit Community Forum (NCF), Northern Cape NGO Coalition • Olive Leaf Foundation • Project Positive Ray (PPR), Public Participation in Education Network (PPEN) • SANGOCO, SANGONeT, Sonke Gender Justice Network, South African Council of Churches (SACC) • Southern Africa Trust, Southern African Youth Movement (SAYM), Studies in Poverty and Inequality Institute (SPII) • The Art of Living Foundation, Ukuthasa, University of Free State • Women on Farms Project, Youth Development Network, Youth with a Vision GCAP in South Africa 14 1st Avenue, Melville, Johannesburg, South Africa PO Box 140, Melville, 2109, South Africa Telephone: +27 (0) 11 11 482 3708 Facsimile: + 27 (0) 11 482 6941 Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Web: www.whiteband.org Facebook: http://www.facebook.com/pages/Making-Mzansi-Better/ Contributors and Acknowledgements Warren Nyamugasira, African Monitor Lilian Chenwi, Community Law Centre Watson Hamunakwadi, GCAP - South Africa Rajesh Latchman, National Welfare Forum Gates Foundation (Input from a consultation facilitated by the foundation on 6 May 2011 in Cape Town) World Vision South Africa  Policy Discussion Paper Sep 2011 2.04 Mb
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