G8 to Win Over China For Fair Trade In Resources
Germanys G8 presidency will attempt to win over China for the promotion of fair rules in handling raw materials in developing countries.
For the first time, high-level representatives from Brazil, Russia, India, China, and Mexico will be invited to the G8 summit to discuss transparency in deals between both producing and importing countries.
– Transparency in raw material producing industries must have international priority, if wealth from natural resources is to contribute to overcoming poverty, German development minister Heidemarie Wieczorek-Zeul said.
Africa, currently the fastest growing oil producing region, saw its eight most important states earn 35 billion US dollar in oil revenues in 2005.
– But after all, this is also the region, which is furthest from winning the fight against poverty, said the Socialdemocratic minister. Unfair distribution of revenues from raw materials hampers democracy and the fight against poverty, which in turn fuels corruption and more poverty.
The G8 is trying to break this vicious circle through the Extractive Industries Transparency Initiative (EITI).
While more than 20 countries have signed up to the initiative, only Azerbaijan and Nigeria are fully implementing the codex: state and concessionaries committed themselves to disclose the financial details of raw material extraction.
Others, like the first Arab participant Yemen, need technical assistance, while a country like Angola, which also committed itself to the initiative, needs further incentive.
This is why the German minister, who is contributing two million euros from the federal budget, intends to collect funds also from transition countries.
It is however crucial to convince more producing countries of these rules at the political level, in order for governments to press companies to adhere to these rules. – In the next three years, EITI will have to have a dozen implementing countries, otherwise there will be a credibility problem, says an expert.
Kilde: www.worldbank.org
