Commitments to save the planet鈥檚 environment and to encourage sustainable
development, made by world leaders at the Earth Summit in June, failed to
reach the agenda of the annual meeting of the World Bank last week in Washington,
DC as Western nations brooded over their currency crises.
At the Earth Summit, leaders such as John Major and Helmut Kohl promised
to channel new resources for a planetary cleanup through the World Bank.
There was to be more money for the Global Environment Facility (GEF), which
is managed by the bank, and an 鈥楨arth increment鈥� for the International Development
Association, which provides cheap loans for the poorest nations.
But the mood has changed. At negotiations for a replenishment of the
IDA fund, held in Washington at the end of last month, the 鈥楨arth increment鈥�
was not discussed at all, say officials. Ernest Stern, the World Bank鈥檚
joint managing director, warned that there was 鈥榮erious doubt鈥� that the
existing IDA budget could be maintained, let alone increased.
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The GEF is seen as the major route for financial aid to implement treaties
on climate change and biodiversity. It already provides aid for poor nations
to reduce their use of CFCs, and so minimise damage to the ozone layer.
The Earth Summit promised a large injection of cash to the GEF, but this
fund is also in trouble.
Major told the summit that the British government 鈥榠s ready to commit
new and additional resources through the GEF . . . All of us have to meet
the cost of commitments undertaken to tackle our common global problems.鈥�
In Rio de Janeiro, Britain offered to triple its contribution to the
GEF to 拢100 million, as part of a $3-billion international 鈥榬eplenishment鈥�
of the GEF. Kohl suggested a $4 billion replenishment. But these promises
were not repeated last week and some Third World governments left Washington
convinced that the money will have evaporated by the time the GEF鈥檚 members
next meet in December.
Government leaks last weekend foreshadowed cuts of 10 to 15 per cent
in Britain鈥檚 overseas aid budget. At roughly 0.3 per cent of gross national
product, the budget is already far below the UN target of 0.7 per cent that
the government affirmed as its goal at the Summit.
In Rio, the overseas aid minister Lynda Chalker, when questioned about
rumours of cuts in the autumn spending review, underlined her 鈥榩ersonal
commitment鈥� to at least maintaining current levels of spending.
Last month, Britain, as holder of the European Community presidency,
proposed a cut of around 拢150 million in the Community鈥檚 aid budget.
Oxfam claimed that much of that money was likely to be cut from tropical
rainforest preservation.
Even Sweden, the world鈥檚 most generous aid donor, which has been hit
by intense speculation against its currency, has abandoned plans to raise
its aid contribution from 0.9 to 1.0 per cent of GNP and is likely to reduce
its aid.
