Saturday, November 7, 2026
News and Views from the Global South
DEVELOPMENT: G-15 Nations Against ‘Hot’ Capital
Marcela Valente
- Leaders of the the Group of 15 nations want to see urgent international action to bring under control the volatility of short-term capital, which is has hurt developing countries.
The draft of the final declaration to be agreed at the three- day G-15 summit summit this week calls for “urgent international action to achieve a reasonable level of stability in exchange and interest rates, and to put an end to the insecurity and volatility of the flows of capital, that mainly affect developing countries.”
The G-15 nations comprise Algeria, Argentina, Brazil, Chile, Egypt, India, Indonesia, Jamaica, Malaysia, Mexico, Nigeria, Peru, Senegal, Venezuela and Zimbabwe. They are considered the countries most representative of their regions, and those that have achieved the fastest growth over the past few years.
The group will also accept South Africa, Thailand, Singapore and Vietnam as new members, if all delegations agree to a consensus.
Personal representatives of the heads of state and government were still working Saturday to complete the main conference document “International Economic Cooperation for the Year 2000 and Beyond.”
A business meeting for entrepreneurs from member countries will be held parallel to the summit which begiuns Monday. Previous G-15 summits, which began in 1989, have been held in Malaysia, Venezuela, Senegal and India.
The free movement of short-term capital has been of great concern to the bloc since the crisis that broke out in December in Mexico and the repercussions in other emerging markets in Latin America, battered by the flight of billions of dollars.
The call for action to ensure stability is the first of nine clauses that set out criteria for new forms of aid from the industrialised world.
“We are asking for a constructive dialogue with the Group of Seven (most industrialised countries) in order to realise our common aspirations,” the document states.
The disparity observed in the developing world is also mentioned by the draft, which stresses the differences between Asia, the most rapidly growing region, Latin America, which has put into effect neoliberal reforms to curb inflation and reduce the foreign debt burden, and Africa, the straggler.
“Despite the variations between African countries, economic evolution continues to be least satisfactory in that region,” the draft states.
The members of the group also point out that from the 1970s to the 90s, the share of global income enjoyed by the world population’s wealthiest 20 percent has risen from 70 to 85 percent, while 800 million people continue to suffer from chronic malnutrition – including nearly 200 million children.
The leaders also expressed their concern over growing unemployment, “which is structural in some countries,” and criticised the fact that service sectors have failed to compensate for a loss of jobs in agriculture and manufacturing.
The group argues that population growth, the lack of job opportunities and growing poverty have contributed to an explosion of international migration, which should not be aggravated by trade barriers set in place by industrialised countries.
The draft also expresses the hope that today’s growing process of regionalisation contributes to “establishing broader and truly open schemes.
“We need a stable international macroeconomic framework, open markets, greater support in terms of financial resources, and an infusion of technological dynamism.”
The document mentions the problem of the foreign debt, particularly burdensome for African countries, where debt servicing “absorbs the scarce resources so necessary to development.”
It also expresses concern over the decline of government development aid. Net assistance to Africa dropped from 14.4 billion dollars in 1990 to some 10 billion in 1993, of which sub- Saharan Africa absorbed a third.
The countries will urge that resources from the World Bank and regional development banks be stepped up. And they will demand that the Group of Seven fulfill its promise to promote multilateral international assistance for sustainable development.
Lastly, the leaders will propose a greater emphasis on South- South cooperation. They plan to approve the creation of a “committee on trade and technological investment”, a high-level political entity that will include representatives of the private sector.
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DEVELOPMENT: G-15 Nations Against ‘Hot’ Capital
Marcela Valente
- Leaders of the the Group of 15 nations want to see urgent international action to bring under control the volatility of short-term capital, which is has hurt developing countries.
(more…)
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|
