G8 Summit: Camp David Declaration Addresses Major Economic, Political Challenges

The leaders of the G8 countries of eight most developed countries of the world – Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States have met recently in Camp David, Maryland. They addressed major economic and political challenges faced by the world. The G8 summit in Camp David was the first major international event for the new French President Francois Hollande.

Camp David Declaration

The leaders of the summit in their Camp David Declaration recognized the importance of meeting our energy needs from a wide variety of sources ranging from traditional fuels to renewable to other clean technologies. As they reached implement their own individual energy strategies, they embraced the pursuit of an appropriate mix from all of the above in an environmentally safe, sustainable, secure, and affordable manner. They also recognized the importance of pursuing and promoting sustainable energy and low carbon policies in order to tackle the global challenge of climate change.

To facilitate the trade of energy around the world, they committed to take further steps to remove obstacles to the evolution of global energy infrastructure; to reduce barriers and refrain from discriminatory measures that impede market access; and to pursue universal access to cleaner, safer, and more affordable energy. The leaders remained committed to the principles on global energy security adopted by the G8 in St. Petersburg.

The group’s leaders papered over their deep-seated divisions on how best to tackle the Eurozone crisis, and declared that they wanted debt-stricken Greece to remain within the fold. However, they called on Athens to stick to the terms of a massive EU-International Monetary Fund (IMF) cash-for-reforms bailout, now hanging by a thread.

Incidentally, two Indian-Americans — PepsiCo chief Indra Nooyi and USAID administrator Raj Shah — were among the few special guests invited by US President

Barack Obama to a G-8 luncheon at Camp David on Saturday. They were invited to take part in a discussion with four African Presidents/PMs invited to the special luncheon. Obama said this was perhaps the first time business leaders attended a G8 summit.

Climate Change Problem

The summit leaders agreed to continue their efforts to address climate change and recognize the need for increased mitigation ambition in the period to 2020, with a view to doing their part to limit effectively the increase in global temperature below 2ºC above preindustrial levels, consistent with science. They strongly supported the outcome of the 17th Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) in Durban to implement the Cancun agreements and the launch of the Durban Platform, which they welcomed as a significant breakthrough toward the adoption by 2015 of a protocol, another legal instrument or an agreed outcome with legal force applicable to all Parties, developed and developing countries alike.

The leaders agreed to continue to work together in the UNFCCC and other fora, including through the Major Economies Forum, toward a positive outcome at Doha.

Six-Point Settlement Plan

In its “Camp David Declaration”, the Group of Eight also supported six-point plan of the United Nations and Arab League Joint Special Envoy (JSE) Kofi Annan’s settlement plan for Syria and cautioned North Korea against further provocation, besides pledging steps to mitigate the economic impact of the Afghan transition and saying Greece, now battling a crippling debt crisis, should remain in the Eurozone.

The summit leaders supported the efforts of JSE Annan and look forward to seeing his evaluation, during his forthcoming report to the UN Security Council, of the prospects for beginning this political transition process in the near-term. Use of force endangering the lives of civilians must cease.  They called on the Syrian Government to grant safe and unhindered access of humanitarian personnel to populations in need of assistance in accordance with international law. They welcomed the deployment of the UN Supervision Mission in Syria, and urge all parties, in particular the Syrian government, to fully cooperate with the mission.

The Camp David leaders strongly condemned recent terrorist attacks in Syria. They remained deeply concerned about the threat to regional peace and security and humanitarian despair caused by the crisis and remain resolved to consider further UN measures as appropriate.

Incidentally, two Indian-Americans — PepsiCo chief Indra Nooyi and USAID administrator Raj Shah — were among the few special guests invited by US President Barack Obama to a G-8 luncheon at Camp David.

Iran and North Korea’s Nuclear Programs

Piling up pressure on Iran, the leaders of the world's eight most powerful economies have asked it to swiftly address all outstanding issues related to its nuclear program and vowed to ensure that crude markets are "fully and timely" supplied despite oil embargo on Teheran.

As Iran faced sanctions, the G8 leaders said increasing disruptions in the global oil supplies "pose a substantial risk" to the world economy.

The G8 leaders remained united in our grave concern over Iran’s nuclear program. They called on Iran to comply with all of its obligations under relevant UNSC resolutions and requirements of the International Atomic Energy Agency’s (IAEA) Board of Governors. They also call on Iran to continuously comply with its obligations under the Nuclear Non-Proliferation Treaty, including its safeguards obligations.

The summit leaders also called on Iran to address without delay all outstanding issues related to its nuclear program, including questions concerning possible military dimensions.  They desired a peaceful and negotiated solution to concerns over Iran’s nuclear program, and therefore remain committed to a dual-track approach. They welcomed the resumption of talks between Iran and the E3+3 (China, France, Germany, Russia, the United Kingdom, the United States, and the European Union High Representative). They called on Iran to seize the opportunity that began in Istanbul, and sustain this opening in Baghdad by engaging in detailed discussions about near-term, concrete steps that can, through a step-by-step approach based on reciprocity, lead towards a comprehensive negotiated solution which restores international confidence that Iran’s nuclear program is exclusively peaceful.

As regards North Korea, the G8 leaders continued to have deep concerns about provocative actions of the Democratic People’s Republic of Korea (DPRK) that threaten regional stability. They remained concerned about the DPRK's nuclear program, including its uranium enrichment program.  They condemned the April 13, 2012, launch that used ballistic missile technology in direct violation of UNSC Resolution.

The Camp David leaders urged the DPRK to comply with its international obligations and abandon all nuclear and ballistic missile programs in a complete, verifiable, and irreversible manner. They called on all UN member states to join the G8 in fully implementing the UNSC resolutions in this regard.

Countering Terrorism

At the summit, G8 leaders condemned transnational organized crime and terrorism in all forms and manifestations. They pledged to enhance our cooperation to combat threats of terrorism and terrorist groups, including Al-Qaida, its affiliates and adherents, and transnational organized crime, including individuals and groups engaged in illicit drug trafficking and production. They stressed that it is critical to strengthen efforts to curb illicit trafficking in arms in the Sahel area, in particular to eliminate the Man-Portable Air Defense Systems proliferated across the region; to counter financing of terrorism, including kidnapping for ransom; and to eliminate support for terrorist organizations and criminal networks.

The G8 leaders urged states to develop necessary capacities including in governance, education, and criminal justice systems, to address, reduce and undercut terrorist and criminal threats, including "lone wolf" terrorists and violent extremism, while safeguarding human rights and upholding the rule of law. They underscored the central role of the United Nations and welcome the Global Counterterrorism Forum (GCTF) and efforts of the Roma-Lyon Group in countering terrorism.

Growth and Employment Opportunities

“As all the leaders agreed, growth and jobs must be our top priority. A stable, growing European economy is in everybody’s best interests — including America’s,” Obama said after the end of the summit.

“Europe is our largest economic partner. Put simply, if a company is forced to cut back in Paris or Madrid, that might mean less business for manufacturers in Pittsburgh or Milwaukee. And that might mean a tougher time for families and communities that depend on that business,” he said.

“Even as we’ve confronted our own economic challenges over the past few years, we have collaborated closely with our European allies and partners as they’ve confronted theirs,” Obama said.

The US president said he discussed with other leaders the ways for promoting growth and job creation while still carrying out reforms necessary to stabilize and strengthen their economies for the future.

Poverty Alleviation

The Camp David leaders reaffirmed their commitment to the world’s poorest and most vulnerable people, and recognized the vital role of official development assistance in poverty alleviation and achieving the Millennium Development Goals. As such, they welcomed and endorsed the Camp David Accountability Report which records the important progress that the G8 has made on food security consistent with commitments made at the L’Aquila Summit, and in meeting our commitments on global health, including the Muskoka initiative on maternal, newborn and child health. They remained strongly committed to reporting transparently and consistently on the implementation of these commitments.

The next G8 Summit will be held the United Kingdom in 2013.

4th BRICS Summit: Playing Crucial Role at World Level

The BRICS (Brazil, Russia, India, China and South Africa) is a grouping of the world’s emerging economies, representing five continents. The BRICS countries together account for 40 per cent of global GDP ($18.49 trillion). Intra-BRICS trade is worth $212 billion, and is growing at 28 per cent a year. It has set itself a trade target of $500 billion by 2015.
The importance of BRICs in the world economy has increased manifold since the acronym was first coined approximately seven years ago. Few could have imagined then how the US economy would collapse and bring down with it much of the rest of the world. It is worth revisiting the original formulations on the significance of these four major countries that were made by representatives of a major US investment bank
Some member countries in the organization are among the fast emerging economies in the world. At the same time, the world has come to realize that to bring an end to the unipolar world and to maintain the power balance, the importance of Russia cannot be ignored. Countries such as China and Brazil not only want to maintain close relations with the United States, but with Russia as well.
However, the aim of the BRICS is to enhance cooperation among member countries and working together at the international forums. Clearly, it is an opportunity for India to improve and strengthen its relations with China and strive to get their disputes resolved.
The fourth BRICS Summit was held in New Delhi on March 28-29. The summit’s theme was “BRICS partnership for Global Stability, Security and Prosperity.” The participants included Presidents Hu Jintao of China, Dmitry Medvedev of Russia, Jacob Zuma of South Africa and Brazil’s Dilma Rouseff. Prime Minister Manmohan Singh hosted the summit, and also held a series of bilateral sessions with his guests, including China’s Hu Jintao.
The summit held against the backdrop of continued profound and complex changes in the international situation, uncertain prospects in world economic recovery and the steadily rising status and role of emerging markets and developing countries in international affairs. It was yet another important event in the ongoing BRICS cooperation. India has worked effectively in preparing for the summit. China tried to work with other BRICS members to push for positive outcomes. On the summit’s eve, the five nations resolved to resist protectionist tendencies worldwide.
The leaders of five emerging economic powerhouses affirmed not just their growing economic clout but also their impact on the global political order.
Delhi Declaration
At the end of the summit, BRICS leaders issued a Delhi Declaration. The Declaration hinted at backing an alternative candidate for the World Bank president's post which has always been appropriated by an American and exhorted the Bank and the International Monetary Fund (IMF) to quickly realign their priorities and approach to the needs of the developing world. This is an agenda the five countries intend pursuing at the coming G20 meeting in Mexico as well.
The leaders also weighed the consequences of setting up a “BRICS Bank” and opted for a more contemplative approach by asking their Finance Ministers to examine its feasibility and report back at the next summit in Russia. They agreed that the bank should in no way emerge as a competitor to the World Bank and the IMF but provide funds for projects that do not find favor with these institutions.
In line with their professed commitment to multilateralism in economic and political problem solving, the leaders agreed to invest more in the United Nations Conference on Trade and Development (UNCTAD) which played a major role in catering to the interests of developing countries in the run-up to the setting up of the World Trade Organization (WTO).
Seeking to reinforce their growing economic heft with diplomatic clout, the BRICS grouping pitched for a bigger say in global governance institutions, including the United Nations and the IMF, and told the West that dialogue was the only way to resolve the Iranian nuclear issue and the Syria crisis.
The leaders of BRISC’s formulation on Iran came close to condemning the West's pressure tactics to make other countries obey their latest restrictions on trade ties, especially in the energy sphere. Saying that a conflict would have disastrous consequences, it wanted the two antagonists to resolve suspicions over Iran's nuclear program through talks on multilateral fora.
On Afghanistan, BRICS exhorted the international community to stay the course on the development front for 10 years after the West withdraws most of its combat troops by 2014-end and, on Russia's insistence, made a mention of checking narcotic trafficking.
In a fresh assertion, BRICS asked the West to implement the 2010 governance and quota reform before the 2012 IMF/World Bank annual meeting, as well as the comprehensive review of the quota formula to better reflect economic weights. They asked for enhancing the voice and representation of emerging market and developing countries by January 2013, followed by the completion of the next general quota review by January 2014.
In a signature step, the BRICS decided to create their first institution in the form of a BRICS-led South South Development Bank that will mobilise "resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries." The leaders directed their finance ministers "to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back by the next summit."
The development banks of the five countries signed two pacts, including a master agreement on extending credit facility in local currency and BRICS multilateral letter of credit confirmation facility agreement, which could help scale up bilateral trade from $230 billion to $500 billion.
India’s Major Points
Addressing the summit, Prime Minister Manmohan Singh also said that the grouping has agreed to examine in "greater detail" a proposal to set up a South-South Development bank, funded and managed by BRICS and other developing countries.
Singh also urged member countries to speak in one voice on key issues such as the United Nations Security Council (UNSC) reforms. He suggested that BRICS countries should speak in one voice on issues such as reforms of the international body.
On UNSC reforms, Singh suggested that BRICS countries should speak in one voice on issues such as reforms of the international body.
He also said in their restricted session, the grouping also discussed the ongoing turmoil in West Asia and agreed to work together for a peaceful resolution of the crisis.
Touching upon the issue of terrorism, Singh said the countries should enhance cooperation against terrorism and other developing threats such as piracy, particularly emanating from Somalia.
UN Millennium Development Goals
BRICS nations are the defender and promoter of the interests of developing countries. In their cooperation, BRICS countries have committed to promoting South-South cooperation and North-South dialogue, endeavored to implement the UN Millennium Development Goals, worked for early realization of the goals set out in the mandate for the Doha development round negotiations, strived to secure a greater say for developing countries in global economic governance and fought all forms of protectionism.
Cooperation among BRICS countries is made necessary by the ongoing economic globalization and democratization in international relations. It is consistent with the trend of the times characterized by peace, development and cooperation, and fully conducive to building a harmonious world of durable peace and common prosperity.
Role of China
An impression is sought to be created that with its massive monetary reserves and political clout, China may exert undue influence in this bank. This is unlikely. Such a bank will not require too much paid-up capital (relative to the average size of respective sovereign reserves) if intelligent financial engineering can help sequester foreign reserves. This would mean that the smallest BRICS economy, South Africa, could easily commit an amount similar to that of China in the capital structure. Such doubts could be further allayed with the institution of a rotating Presidency of, say, a two-year term that could initially be restricted to the BRICS countries alone.
India-India Strategic Ties
The China-India strategic and cooperative partnership has made all-round progress in recent years. A sustained, sound and steady growth of relations between China and India, the two large developing countries sharing borders with each other, will serve not only the well-being of the two peoples but also peace, stability and prosperity in Asia and the world as a whole.
The Delhi Summit will be remembered forever for one major achievement, at least. Its expected decision to set up a BRICS bank on the lines of the World Bank may change the course of economic activity in the member-countries. The setting up of this new financial institution by the bloc that has brought together half of the world’s population may speed up infrastructure development programs in the BRICS countries and serve as a second line of financial defense in times of economic crisis as is being faced by Europe today.

Nile Water Sharing Agreement Talks Collapse

The stream of articles on the Nile Basin Initiative has been negative, pessimistic and even somewhat abrogating. The saving grace of this faultfinding exercise is that it draws attention to the prerogative of the Nile Basin countries to tackle seriously the mounting challenges the mighty river they share hurls at them and the opportunities it presents. The extraordinary Nile Council of Ministers (NileCom) Conference in the Red Sea resort of Sharm El-Sheikh is no exception.

Unfortunately, matters took an ugly turn at Sharm El-Sheikh with participants failing to reach agreement. The gloves came off, Egypt insisting on veto powers over any new irrigation projects undertaken by the other nine riparian nations. After a marathon 15 hours of deliberations, the only agreement that was reached was on minutiae in order to avoid the pitfalls of the past.

Cornerstone of Nile Basin Cooperation
And so it is with the region's embryonic 1959 Nile agreement between Sudan and Egypt, which remains to this day the cornerstone of the Nile Basin cooperation projects, much to the consternation of some upstream nations. Egypt and Sudan insisted on safeguarding what they see as their national interests with the seven upstream countries threatening to go it alone. 'The Nile Cooperative Framework Agreement must clearly acknowledge Egypt and Sudan's historic share of Nile water,' Minister of Water Resources and Irrigation Mohamed Nasr El-Din Allam reiterated in Sharm El-Sheikh, in reference to the 1959 agreement.

The core problem is the perceived 'unjust and unequal distribution of Nile water resources' by upstream riparian nations and the reluctance of downstream ones -- Egypt and Sudan -- to concede concessions. Sudanese Irrigation Minister Kamal Ali appealed for calm, urging the upstream countries to continue negotiations to secure a comprehensive cooperation agreement. Egypt backed him. But there are changes afoot.

Political and Economic Realities
Globalization opens the door to fresh political and economic realities. The most momentous and consequential of such groundbreaking events, is the rapprochement in recent months between Egypt and Ethiopia, the country that supplies 85 per cent of Egypt's water. Egypt, the primary user of Nile water, traditionally felt its interests threatened by Ethiopia's ambitions to construct dams to generate hydroelectric power. Yet there are tremendous transformations in the offing. Egypt no longer has an agriculture dependent economy, and Ethiopia has to date an inadequate hydraulic power and enormous hydroelectric potential.

It is against this backdrop that the Egypt-Ethiopia Council of Commerce was established on 30 December 2009, which turned the bilateral Egyptian-Ethiopian relation from 'distrust to a friendly cooperation,' as Ethiopian Prime Minister Meles Zennawi so succinctly put it. Of the four major tributaries of the Nile, three originate in Ethiopia -- the Blue Nile (or Abbai), Sobat and Atbara. Be that as it may, Nile Basin nations need to start talking more about employment, food security, agricultural and manufacturing industries and stop obsessing about water and tributaries.

Yet, those habits persist. The challenge is to make this week's Sharm El-Sheikh conference qualitatively different. Ethiopia in particular and other upstream nations are resentful of the lack of the financial support by international financial institutions such as the International Monetary Fund (IMF) and the World Bank for their Nile projects. They are also peeved that Western donor nations have supplied Egypt with billions of dollars -- the US government has provided $60 billion of assistance to Egypt compared to less than $4 billion to Ethiopia since 1950.

Water Sharing System
Certainly the system of sharing Nile water as it stands looks dysfunctional. There is a plethora of duplicating and overlapping organizations and initiatives concerning water sharing in Nile Basin nations. There is the Nile Technical Advisory Committee (Nile-Tech) as well as NileCom. There is also the International Consortium for Cooperation on the Nile (ICCON) as well as the Nile Basin Initiative. The goal of the Sharm El-Sheikh conference was to work out a comprehensive agreement on the allocation of Nile water resources among the Nile Basin states.

It was not a bad idea by any stretch, although the Nile Basin Initiative is not the liveliest of regional organizations and the going is sometimes laborious. Certain countries still have a knack of sticking the boot good and proper to their neighbors. What is the best and brightest thing about the contemporary Nile Basin region? The traditional reticence of some of the African delegates was tested when four African delegates at the Sharm El-Sheikh conference reportedly withdrew from the talks in a huff and a puff.

Critical Point for Egypt
Control of the utilization of the waters of the 6,670-km river, the world's longest, has long been a bone of contention in the Nile Basin. Egypt will not sign any deal before its conditions are met. The requirements include the commitment to the early notification mechanism before the construction of any projects in upstream countries and that all decisions are to be finalized unanimously and not through majority voting. This last point is critical as far as Egypt is concerned because the upstream riparian nations tend to concur on issues that Egypt objects to. The Nile Cooperative Framework Agreement must clearly recognize Egypt and Sudan's historic share of the Nile Waters. The other seven upstream nations bitterly disagree.

Nile Basin nations are called upon to put aside differences in order to secure the Nile Basin Initiative for the sake of enhancing sustainable development in the region. Egypt in its capacity as current chair of Nile Basin Executive Council is pulling no punches. Assistant Foreign Minister for African Affairs Mona Omar disclosed that Egypt is calling for a 'consensus formula.'

Meanwhile, she also announced that Foreign Minister Abul-Gheit is scheduled to visit Ethiopia later in the month for the Egyptian-Ethiopian Joint Committee. The 1,530-km Blue Nile (Abbai) is key to Egypt's national security, and the Ethiopians understand the strategic importance of their country to the Egyptians. The River Nile Cooperative Framework Agreement (CFA), International Consortium for Cooperation on the Nile (ICCON), the Nile Technical Advisory Committee (Nile- Tech) and the Nile Council of Ministers (Nile Com) will survive the altercations at Sharm El-Sheikh.

Walkouts and Bitter Disputes
The debate about who should get what and when will go on for years. Participants were hoping that the days when the problems of quibbling about sharing the waters of the Nile are over. The countries of the Nile Basin might be locked in a bitter dispute over sharing and harnessing the waters of the Nile, the world's longest river, but they at least are still willing to meet on a regular basis to iron out differences.

The walkouts and bitter disputes sadly show that this week's Extraordinary NileCom meeting was not qualitatively different to earlier meetings. 'Ten years ago there was an atmosphere of mistrust, suspicion and doubt. Today the Nile Basin countries are open to each other and ready to collaborate more closely together. This is an achievement to be cherished, nourished and nurtured all the way,' noted Tanzanian Vice-President Ali Mohamed Shein. Wish that was true. The Nile Basin Initiative might yet metamorphose into something more meaningful only by harnessing tremendous political goodwill. Whose water is it anyway?

Advent of G-14

The decision of Group of Eight (G-8)--the United States, France, the United Kingdom, Germany, Italy, and Japan--leaders to turn it into G-14, made in L'Aquila, Italy, is a historical step in many respects. If it does materialize, five countries with a growing economy, namely India, China, Brazil, Mexico, and South Africa, will join the world's eight leading industrial countries.

If Egypt is also included in the group, it will be a forum representing almost 80 percent of the world's population. This is an indication of the rapid changes to be introduced in global governance.

Emerging Economic Powers
Before Russia joined G-8, it used to be an organization of the world's seven most prosperous capitalist countries. They were regarded the deciding factor in world economy. They wielded the power to direct it, and took full advantage of this situation. As long as the erstwhile Soviet Union existed, they faced some challenges in pushing their agenda of a capitalist market.

However, with its disintegration, they had their way. Russia, bearing the mantle of the Soviet Union, itself opted for capitalist economy. China had already moved fast toward a market-led economy. With Russia joining the G-8, the organization seemed to be all-powerful. With rapid changes in global balance of economic power, it, however, soon turned into an anachronism. Rich countries were forced to reach out to emerging economic powers.

To endorse their professed intention for a developed world, invitations were extended to them gradually. These countries known as G-5 hold their meetings regularly. Their decisions also have an impact on the decisions made by the G-8.

Strong Case for G-14
Italian President Silvio Berlusconi has now made a strong case for G-14. This came as no surprise. Yet, this development could hardly be imagined one-and-half decades ago. What of treating them on equal footing, rich nations even refused to take their demands seriously.

The US President Barack Obama says in reply to a journalist's question that a solution of the economic crisis problem was unthinkable if a country like India remained outside the group. The world has really undergone a vast change!

Present Realities
According to reports received from there, the global system will be reviewed. That implies that the governance of the international organizations will have to be changed. The World Bank, International Monetary Fund (IMF), and other global financial institutions, and also the WTO will have to be reconstructed.

The process of political decisions must also change in accordance with the present realities in the world. In other words, the structure of the United Nations has to be changed. The alterations in global governance suggested at the G-8 summit can, therefore, be expected to prove to be a more suitable format to show a new world economic way.