The State of Multilateral Affairs and South Centre Activities 2012
At the annual meeting of the South Centre’s Council of Representatives, the Executive Director Martin Khor presented the following report of the Centre’s activities in 2012.
INTRODUCTION
Developing countries faced many challenges in the year 2012. There was a further weakening of the global economy, due to the continuing crisis in the European region and the uncertainties in the US economy due to the possibility of the “fiscal cliff”. Many developing countries experienced a decline in their GDP growth rates.
Multilateralism also seemed to be weakening as the developed countries challenged the hitherto widely accepted principles such as common but differentiated responsibilities, technology transfer and new and additional financial resources. After often acrimonious negotiations, there was an agreed outcome in two important events, UNCTAD XIII and the Rio plus 20 Summit. But the lack of international cooperation was also evident in the WTO (where the Doha Round continues its impasse) and the climate change negotiations. Nevertheless, the developing countries generally maintained their unity in several negotiating fora, and they successfully implemented the Summit of the Non Aligned Movement in Tehran.
ACTIVITIES
The Centre continued to conduct a broad range of activities in 2012, including research, convening of meetings, negotiating support, participation in international meetings, and publications. The issues covered included global finance and economy, trade, IPR and innovation policies, climate change and sustainable development.
On issues relating to the Global Economy and Development, the South Centre was deeply involved in the UNCTAD XIII session in Doha in April, as well as the preparatory process. UNCTAD XIII was a turning point for UNCTAD and multilateral relations. The G77 and China fought a tough battle to have the UNCTAD mandate reaffirmed, and to enable UNCTAD to continue its work on several areas such as the global economic crisis, finance, debt and macroeconomic policy. The G77 and China eventually succeeded in having the UNCTAD mandate reaffirmed. The Centre supported developing countries and the G77 and China in this effort; as well as an initiative by former senior officials of UNCTAD in highlighting their views in support of UNCTAD. The Centre was invited to be a keynote speaker in the G77 and China Ministerial meeting at the start of the UNCTAD XIII session.
On the global economic crisis, the Centre played a significant role in supporting G77 and China and several developing countries in preparing for the UN General Assembly high level conference on the global economy and finance, held in May. The Centre’s chief economist held two meetings, and the ED held one other meeting, with the developing countries to brief the developing countries on the state of the global economy and the impact on developing countries. The Chief Economist was a key speaker at the UNGA conference. The Centre also advised the developing countries on re-activating the UNGA ad hoc working group on the financial crisis. The Centre published a new book, “Financial Crisis and Global Imbalances, a Development Perspective”, which put together various research papers written by the Chief Economist on the global financial crisis and the effects on developing countries. A new research paper, “The Staggering Rise of the South?” was published; it questioned the theory of de-coupling and the view that the developing countries were about to overtake the North in future performance.
The Centre also co organized a three-day NGO strategy meeting on finance and development in May, with about 50 NGOs and resource persons attending. The Centre also took an active role in organizing two sessions at the conference of the Turkish Economic Association held in Izmir in October, which was attended by several senior policy makers and academics.
The Rio+20 summit (20-22 June) was held in Brazil, and there were four preparatory meetings (three in New York in end-March, end-April and end-May; and the fourth in Rio on 13-19 June). South Centre was active in monitoring the negotiations and supporting the G77 and China and many developing countries, by holding several meetings, and preparing papers and proposals on various topics. The G77 and China eventually succeeded in obtaining most of their negotiating objectives, especially in reaffirming the Rio principles and the common but differentiated responsibility, in the face of resistance by developed countries. They also maintained policy space on the green economy and sustainable development goals, while its proposal for a new high-level political forum on sustainable development was accepted. However there was a weak outcome on finance and technology. The overall level of ambition for urgent action in the face of global ecological and economic crises was low in the final outcome. An important achievement however was that there are important follow up processes that could lead to longer-term gains. Besides its support and advocacy role, the Centre was also active in (1) holding an official side event on Rio+20; (2) co-organising a seminar on the world economy and Brazil with MINDS and BNDES; (3) three South Centre personnel taking part in three out of the seven official Sustainable development Dialogues; and (4) meeting political leaders. The Centre intends to be active in the follow up process.
The UNFCCC climate negotiations resumed after the Durban decision to initiate negotiations for a new Durban Platform (either a legally binding regime or an agreed outcome with legal force). The Centre organized a three-day brainstorming and strategy meeting in March in Geneva and then hosted a series of meetings in Bonn for some like-minded developing counties to prepare the case for an equity based approach to the Durban Platform. The cooperation and coordination of such a group developed significantly in May at the Bonn session. The Centre’s ED also spoke at an important UNFCCC official climate equity workshop in Bonn. The Centre was also active in the UNFCCC session in Bangkok in August/September and then assisted in the meeting of a like-minded group held in Beijing in October. The Centre played an active role in the Conference of Parties (COP18) in Doha in November/December by providing resource persons and organizing or taking part in several meetings, including a meeting of Ministers of developing countries organized by Saudi Arabia, and its own side event.
Besides the UNFCCC, the Centre has also been following the progress in the Inter-Governmental Panel on Climate Change (IPCC), with several experts from the Centre reviewing the first-order draft of the mitigation working group. The Centre also co-organized a meeting of expert reviewers and lead authors of the IPCC working group to review the first-order draft.
The Innovation and Access to Knowledge and IP section was also active in supporting developing countries in negotiations at WIPO, WHO, WTO, FAO and UNFCCC. South Centre personnel took part in activities and meetings not only in these institutions but in a wide range of academic, scholarly and NGO meetings. The issues included IP and development in general, access to health technologies, access to knowledge, traditional knowledge, disclosure and benefit sharing in genetic resources, and national IP and development strategy. The Centre continued to hold meetings to support developing country delegations to prepare for meetings at the WIPO, in several meetings relating to a range of topics – the development agenda at WIPO, copyright, patents and genetic resources/traditional knowledge. The Centre continued to support the Development Agenda Group of developing countries especially at the WIPO negotiations. The Centre co-organised a meeting of Ambassadors and high-level officials from capitals of the Development Agenda Group during the WIPO General Assemblies.
The Centre was also active in health and development issues. It also took a leading role in the initiation and development of the idea of a global R+D treaty for medicines and other health products that are especially required by developing countries. The Centre’s IP and technology advisor played a leading role in the WHO expert group on R+D to develop this idea, and he and the Centre’s health advisor also played significant roles in the discussions at the World Health Assembly, leading to a resolution that takes this concept a step forward. The Centre also began to participate in the meetings of the protocol on tobacco control linked to the WHO. The Centre was also invited by WHO to take part in its advisory group on production of generic medicines in developing countries. In January, the ED was invited to be a keynote speaker at the 50th anniversary congress of the Indian Drug Manufacturers’ Association in which he urged the Indian generic companies to continue to supply quality generic medicines for the developing countries.
On trade and development, the South Centre focused much of its resources in assisting the African Union as well as specific African countries and groupings, such as the east African Community, in developing alternatives to the EU’s model of EPA for the ACP countries, as well as to counter argue against the new EC policy in removing trade preferences (including GSP and GSP-plus) for several non-LDCs. The Chairman also made a keynote speech at an important EAC meeting in Arusha while Board member Charles Soludo published extensively on the issue in African publications. The Centre, together with the AU commission and ACP secretariat have jointly developed an alternative trade preference scheme for Africa. The Centre is attempting new ways of addressing the issue in the months ahead.
The Centre has also been monitoring developments at the WTO, including the emergence of new issues such as “global value chains” and the continuing attempts by developed countries to reintroduce “new issues” while avoiding old commitments especially in agriculture. The Centre has been providing support to the Friends of Development group in WTO. The Centre co-organised a session on the future of the trading system at the WTO Public Forum. Towards the end of the year, the Centre supported the efforts of the LDC Group to submit proposals for the extension of the exemption period for LDCs in relation to the TRIPS Agreement. The Centre also participated and spoke at the LDC Group retreat organized in November.
The media and publications work of the Centre expanded in 2012. Regular monthly issues of the South Bulletin were produced, with focus on various issues, including the state of the global economy and developing countries’ economies; two issues on UNCTAD XIII and the Rio Plus 20 negotiations; the NAM summit; on the EPAs and the impasse at the WTO negotiations; and the emerging crisis of investment agreements. The translation unit continued its work of translating South Bulletin and several research papers and other documents into French and Spanish. The Centre also published three books, on the global economic situation; a handbook on pharmaceutical patents; and a bibliography on articles and books on access to medicines. The Centre also published several Research Papers, briefing papers and analytical notes. The Centre also expanded its publication of SouthNews and SouthViews and is in the process of revamping its website.
The administration section continued with its work to support staffing, financing and other activities.
Two Board meetings were held in 2012. The first meeting was held in Geneva in February, with associated activities being a reception was held for diplomats, and a two-day conference on the State of the Global Economy and Reflections on International Negotiations. The second meeting was also held in Geneva, with a half-day seminar on developments in sustainable development, particularly the Rio plus 20 summit. The year 2012 marked the passing away of Board member Angela Cropper as well as the resignation due to health reasons of Leticia Ramos Shahani of the Philippines.
The annual meeting of the Council of Representatives was held in January in Geneva. It elected H.E. Ambassador Abdul Minty of South Africa as the Convenor of the Council for a three year term. It also welcomed a new member state, Ecuador, and appointed a new Board member, Youba Sokona.
CONCLUSION
Looking forward to 2013, the Centre intends to expand its activities of research, analysis, convening of meetings and cooperating with countries as well as with organisations of the South.
The year ahead is also very challenging, with many important international processes taking place, including the start of the UN’s post 2015 Development Agenda, the WTO negotiations towards the Ministerial Conference in Bali at the end of the year, the FTAs and EPAs, the climate negotiations at UNFCCC, the follow up to the Rio Plus 20 Summit including the establishment of the sustainable development goals (SDGs) and the several meetings at WIPO and WHO. The South Centre hopes to participate actively in these and other processes.
To enable the expansion of the Centre’s activities in 2013 and beyond, it is necessary for the Centre to obtain additional financial and human resources. We hope that the member states of the Centre will increase their contributions, through the annual contributions and through special contributions beyond the annual contributions that can be made to the overall operating funds or to more specific projects.
The Centre looks forward to working with the member states, the developing countries in general, and with civil society in the year ahead.
