G77 SUMMIT: NEW DEVELOPMENT FUND PROPOSED AT CLOSING

UNCLAS SECTION 01 OF 02 DOHA 001131

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TAGS: ECON PREL ETRD KDEM XA XB XC XD XE XK XL XM XO QA UN
SUBJECT: G77 SUMMIT: NEW DEVELOPMENT FUND PROPOSED AT CLOSING



1. Summary. The G77 South Summit ended June 16 with a proposal
for a new development fund to which Qatar would contribute $20
million. Leaders called on developed nations to meet the target
of 0.7% of GDP toward overseas assistance. In addition to
improved access to markets in developed economies, leaders
exhorted states of the "south" to strengthen their own regional
trade ties. The Qatari Amir called for establishment of free
trade zones in Africa, Asia, and South America. But it will be
hard to gain focus from the 66-point Doha Declaration from the
Non-Aligned Movement and the 118-point Doha Plan of Action issued
at the closing of the summit. End Summary.

Development Assistance and Trade
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2. At the opening the plenary session of the G77+China Summit
June 15, the Qatari Amir, Sheikh Hamad bin Khalifa Al Thani,
proposed the creation of a "South Fund for Development and Human
Circumstances" and offered $20 million to launch it. China and
India each pledged $2 million. The fund would address hunger,
poverty, and "human catastrophes" in the developing world. He
said that starting in 2006, Qatar is committed to giving the
amount of overseas development assistance prescribed by the UN's
Millennium Development Goals. 15% of the assistance would be
allocated to least developed countries. However, the exact level
of assistance was not specified by the Amir. Development
assistance was elaborated upon in the 118-item "Doha Plan of
Action," which includes sections on globalization, knowledge and
technology, south-south cooperation, and north-south relations.


3. Among his general remarks, the Amir called for setting up
three free trade zones (one each in Africa, Asia, and South
America) to stimulate south-south and north-south trade. "Trade
among the countries of the south is not as substantial as south-
to-north," he said, "but it complements it."

Speeches on State of the Developing World
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4. There were unsurprising speeches by Prime Minister PJ Patter
son of Jamaica, Jean Ping of Senegal (outgoing president of the
UNGA),Jean-Louis Schiltz (Minister of Cooperation and
Humanitarian Action of Luxembourg, representing the G-8 nations),
Louise Frechette (Deputy Secretary General of the UN),and Carlos
Lage (vice president of the Council of State of Cuba). President
Olusegun Obasanjo of Nigeria, called the developing world
"unstable, crisis-ridden, backward... and a moral albatross to
the developed world." Prime Minister Abdullah Ahmad Badawi of
Malaysia (chairman of the Non-Aligned Movement) said, "The voices
supporting unfettered globalization are now confined to the
periphery. However, economic uncertainty still surrounds us. It
would seem therefore that five years since our last meeting,
things have not improved." The PM of Bangladesh said, "We had
high hopes that globalization would benefit developing
countries.... Sadly, this has not happened."

The Political Declaration
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5. The Doha Declaration was issued as a separate document from
the Doha Plan of Action, reflecting the separate organizational
of the G77 and the Non-Aligned Movement. Like its sister
document, the Doha Declaration called on developed countries to
devote 0.7% of their GDP to overseas assistance. Directly naming
the United States, he called for an end to the embargo against
Cuba and expressed concern about the impact of the Syrian
Accountability Act. It expressed "deep concern" regarding the
1998 U.S. attack on the Al-Shifa facility in Khartoum, Sudan.

Cuba Lashes at U.S.
--------------


6. The Cuban delegate, Carlos Lage, was the only speaker who
mentioned the U.S. by name, in a statement on behalf of Fidel
Castro. It was da capo an attack on the US as an aggressive, over-
consuming despoiler of the environment and protector of
terrorists (Luis Posada Carriles). One example: "George W. Bush
proclaims the right to wage preemptive war on 60 or more
countries while he manipulates the United Nations, declares its
charter obsolete, and destroys international law. Let us, the
eternally excluded, join our efforts to have a sustainable world
order."

Comment
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7. A 66-point Doha Declaration and a 118-point Plan of Action
ensures that the follow-through will be nearly impossible.
Developing countries were able reiterate priorities such as debt
forgiveness, increased development assistance from the
industrialized countries, and technology transfer. Their message
was that no great progress had been made since the Havana
meeting. For Qatar, the summit was an opportunity to demonstrate
that it has the capacity to host such a large event and to win
friends among poorer nations. The "South Fund for Development" is
a welcome product of the summit, but it will have to take
material shape.

UNTERMEYER