(12-28-2004) Blair Faces Test on Trade, Poverty and Debt -- Financial Times

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Blair Faces Test on Trade, Poverty and Debt

By Henry Tricks
Published: December 27 2004 20:54

Tony Blair will on Wednesday be thrust into the centre of a campaign to rewrite the rules on trade, aid and third world debt, linked to the UK's leading role next year in international politics.

The Make Poverty History campaign, a coalition of development charities such as Oxfam and Save the Children and celebrities such as Bono of U2 and Sir Bob Geldof, will deliver an open letter to the prime minister. It asks him to convince other world leaders next year to take radical steps to tackle extreme poverty, especially in Africa, as he chairs the Group of Eight, and Britain heads the European Union.

The demands are far-reaching. They include letting governments of poor countries choose their own solutions to poverty, cancellation of debts of the poorest nations, $50bn (£26bn) more in international aid a year, and new laws regulating the way companies operate in developing countries. It says: "You have an unparalleled opportunity to influence the direction of the international community and its institutions and now, more than ever, you will be held accountable for its action."

The letter is a warm up for what could be a publicity blitz next year, led by some of the world's best known stars. This morning, Bono will seek to raise awareness of the campaign as guest editor of BBC Radio 4's influential Today programme.

The US branch of the coalition took Brad Pitt, the actor, to parts of Africa stricken by Aids and poverty to raise awareness in America. Claudia Schiffer, the model, has endorsed the white armband that is to be a symbol of the movement and which organisers hope will become a fashion item.

A mass demonstration is to be staged outside the G8 summit in Edinburgh in July on the 20th anniversary of Live Aid.

Organisers hope to put the plight of Africa into the general consciousness, much as Live Aid did in 1985. But this time, they do not want money but time. They hope popular pressure will force leaders to change their approach to tackling poverty, including reforms to politically sensitive trade barriers, such as farm subsidies in the US and EU.

The agenda is especially ambitious because it is opposed to piecemeal action on the issues of trade, aid and debt, yet each of its individual demands is com plex.

On trade, it urges the government to press for accelerated reform of the common agricultural policy to end the dumping of goods on international markets, including an early end to direct export subsidies. It also calls for reform to company law to make directors liable for damage their companies do in developing countries, and allow overseas communities to bring cases against UK companies in Britain.

On debt, it notes that each year, Africa faces demands for more than $10bn in debt repayments, and little more than 10 per cent of the debt owed by the poorest countries has been cancelled. It calls for an end to the system of providing debt relief with strings, and of paying for debt relief by cutting aid to other poor countries.

Of all these issues, Steve Tibbett, an organiser of Make Poverty History, believes there could be most dispute with the government on reforms to company law. Already, Mr Blair and Gordon Brown, the chancellor, have sought to move poverty, especially in Africa, up the international political agenda next year. But the campaign is demanding a "great leap" in 2005 rather than "warm words and small steps".

--Financial Times

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