 LUNCHEON Helping manage globalization: How some international organizations can make a difference FRIDAY 12 OCTOBER 2007
The phenomenon of globalisation had created massive benefits to people throughout the developing world over the past 20 years, but also thrown up huge challenges to billions more on the planet, Spanish World Bank vice chairman Ana Palacio told a lunch hosted by financial giant ABN AMRO. And it was the role of international institutions like hers to manage the wave of increasingly complex problems that resulted, she said. Palacio told the audience: "Globalisation creates mixed feelings. "Since 1990, thanks to globalisation, 300 million people worldwide have escaped poverty, mainly in China, India and elsewhere in Asia. International trade in these countries has doubled and their economies are export-led and booming. There were one million people participating in the world market economy in 1990, but today that figure is four million, which is a staggering increase. "That means that many more people, therefore many more women, are working around the world. This has also created more centres of industry and more consumption, so it could be argued that globalisation is loaded with opportunities. But this same phenomenon has also created exclusion, a wealth divide and environmental damage," she added. She said that because 300 million people that had escaped poverty as a result of globalisation, there was now an enormous increased demand for energy on the planet, which had significant implications for global warming. "Take China, for example," she said. "Every eight months of every year, that country builds the entire energy creating capacity of a country the size of Spain, so that's a pretty big carbon footprint. In India, 80 per cent people still rely on traditional methods of cooking using wood, but one day globalisation will afford them electricity to cook with, creating the need for more power stations. We don't want to slow growth, but we do now need to consider the challenge of developing alternative energy sources," she cautioned. So, she asked, what was the role of the World Bank and other international bodies in resolving or fending off potential problems arising from globalisation? "It is our place to take an overview, a global view of the issues and send our wealth of experts in create solutions," she argued. She quoted the recent problem of a US$65 million aid grant to Rwanda, where most of the population has never felt the benefits of a global market place. She said: "US$46 million of this money was earmarked for HIV and AIDS relief, 18 million for malaria and one million for general healthcare. But the money alone was not enough. We needed roads to access the places that needed the drugs, electricity to keep the drugs cool and trained nurses to administer them.” Palacio concluded: “It is this role of international bodies like ours to ensure that aid gets to where it needs to be and is put to proper use. We spearhead initiatives and make decisions on bigger issues like aid for trade." It was this aspect of globalisation - ensuring that parts of the world that had not reaped the rewards, but were nevertheless suffering its consequences - that needed the most attention, she said. _____________________ |