G8 Final Communique from Cologne (fwd)

[Robert Weissman <rob@essential.org>]

Press release on 20.06.99

G8 COMMUNIQUÉ KÖLN 1999

1. We, the Heads of State and Government of eight major democracies
and the President of the European Commission, met in Köln for the 25th
Economic Summit. On the threshold of the new millennium we discussed
growing opportunities as well as forward-looking solutions to the
challenges facing our nations and the international community.

2. Globalization, a complex process involving rapid and increasing flows
of
ideas, capital, technology, goods and services around the world, has
already brought profound change to our societies. It has cast us
together
as never before. Greater openness and dynamism have contributed to the
widespread improvement of living standards and a significant reduction
in
poverty. Integration has helped to create jobs by stimulating
efficiency,
opportunity and growth. The information revolution and greater exposure
to each others' cultures and values have strengthened the democratic
impulse and the fight for human rights and fundamental freedoms while
spurring creativity and innovation. At the same time, however,
globalization has been accompanied by a greater risk of dislocation and
financial uncertainty for some workers, families and communities across
the world.

3. The challenge is to seize the opportunities globalization affords
while
addressing its risks to respond to concerns about a lack of control over

its effects. We must work to sustain and increase the benefits of
globalization and ensure that its positive effects are widely shared by
people all over the world. We therefore call on governments and
international institutions, business and labor, civil society and the
individual to work together to meet this challenge and realize the full
potential of globalization for raising prosperity and promoting social
progress while preserving the environment.

I. Getting the World Economy on Track for Sustained Growth

4. Since we met last year in Birmingham, the world economy has faced
major challenges. Progress has been achieved in addressing the crisis
and
laying the foundations for recovery. Policy steps aimed at supporting
growth in the major industrialized countries and important policy
actions
leading to stronger performance in some emerging markets have improved
the economic outlook. A number of substantial challenges still remain.
We
therefore renew our commitment to pursue appropriate macroeconomic
policies and structural reforms. These will contribute to more balanced
growth in the world economy, thereby reducing external imbalances.

5. The world economy is still feeling the effects of the financial
crises
that started in Asia two years ago. Without an open, rules-based world
trading system and the beneficial flows of goods and services it
encourages, the countries affected would be having much greater
difficulty recovering from these crises and stabilizing their economies.

6. We welcome the outline agreements recently reached by Russia with
the IMF and the World Bank and look forward to their speedy
implementation as a further important step in Russia*s reform program.
Once an IMF agreement is in place, we encourage the Paris Club to act
expeditiously to negotiate a debt rescheduling agreement with Russia. In

order to support Russia*s efforts towards macroeconomic stability and
sustainable growth, we encourage the Paris Club to continue to deal with

the problem of the Russian debt arising from Soviet era obligations,
aiming
at comprehensive solutions at a later stage once Russia has established
conditions that enable it to implement a more ambitious economic reform
program.

7. We agreed to intensify our dialogue within the G8 structures on the
longer term social, structural and economic reform in Russia. To this
end,
we have instructed our personal representatives to ensure the overall
continuity and cohesion of the work among the G8 on this subject.
Particular emphasis should be given to concrete areas of cooperation
such as small business development, strengthened cooperation with
regions, health, the social impact of economic transformation. We agreed

to deepen our cooperation on law enforcement, fighting organized crime
and money laundering, including as they relate to capital flight.

II. Building a World Trading System That Works for Everyone

8. The multilateral trading system incorporated in the World Trade
Organization (WTO) has been key to promoting international trade and
investment and to increasing economic growth, employment and social
progress. We therefore renew our strong support for the WTO and our
commitment to an open trade and investment environment. We call on all
nations to resist protectionist pressures and to open their markets
further. We encourage those states not yet members of the WTO to join
it, by accepting its principles.

9. Given the WTO*s vital role, we agree on the importance of improving
its
transparency to make it more responsive to civil society while
preserving
its government-to-government nature. We pledge to work for a
successful ministerial meeting in Seattle in order to launch the new
round.
We will also seek a more effective way within the WTO for addressing the

trade and environment relationship and promoting sustainable
development and social and economic welfare worldwide.

10. We therefore call on all nations to launch at the WTO Ministerial
Conference in Seattle in December 1999 a new round of broad-based and
ambitious negotiations with the aim of achieving substantial and
manageable results. All members should have a stake in the process. We
encourage all members to make proposals for progress in areas where
developing countries and in particular least developed countries can
make
solid and substantial gains; all countries should contribute to and
benefit
from the new round. An effective new round of trade negotiations should
help pave the way for the further integration of the developing
countries
into the world economy. In this context we reaffirm our commitment made
in Birmingham last year to the least developed countries on improved
market access. We also urge greater cooperation and policy coherence
among international financial, economic, labor and environmental
organizations.

11. Because trade is increasingly global, the consequences of
developments in biotechnology must be dealt with at the national and
international levels in all the appropriate fora. We are committed to a
science-based, rules-based approach to addressing these issues.

III. Designing Policies for More Employment

12. One of the most urgent economic problems is the high level of
unempl-yment in many countries. We reaffirm the importance of
intensified in-ternational cooperation and enhanced efforts at the
national
level to design the right policies for more em-ployment. To strengthen
the
foundations for sustainable growth and job creation, we strongly
emphasize a two-tiered approach:

- promoting structural re-forms to enhance the adaptability and
competitiveness of our economies and to help the long-term unemployed
to return to the labor market;

- pursuing macroeconomic policies for stability and growth and ensure
that monetary and fiscal policies are well balanced.

13. The greater the adaptability of our economies, the greater the
likelihood that economic growth will result in more employment. We
therefore strongly support the elimination of structural rigidities in
labor,
capital and product markets, the promotion of entrepreneurship and
innovation, investment in human capital, reform of the tax/benefit
systems to strengthen economic incentives and encourage employment,
and development of an innovative and knowledge-based society.

14. We also endorse the G8 Labor Ministers' conclusions at their
conference in Washington last February, namely to provide social safety
nets that support employment, to prevent long-term unemployment by
early action, to facilitate job search by offering labor market
information
and employment services, to promote lifelong learning and new forms of
work organization, to ensure equal access to the labor market for all
workers, including job entrants and older workers, and to take forward
the social dialogue.

IV. Investing in People

15. Basic education, vocational training, academic qualifications,
lifelong
upgrading of skills and knowledge for the labor market, and support for
the development of innovative thinking are essential to shape economic
and technical progress as we move towards a knowledge-based society.
They also enrich individuals and foster civic responsibility and social
inclusion.

16. In support of these goals, we agree to pursue the aims and ambitions

set out in the Köln Charter.

17. Adaptability, employability and the management of change will be the

primary challenges for our societies in the coming century. Mobility
between jobs, cultures and communities will be essential. And the
passport to mobility will be education and lifelong learning for
everyone.

18. To this end, we support an increase in exchanges of teachers,
administrators and students among the nations of the Eight and with
other nations and invite our experts to identify the main obstacles to
increased exchanges and to come forward with appropriate proposals
before the next Summit. We call upon the Organization for Economic
Cooperation and Development (OECD) and the United Nations Educational,
Scientific and Cultural Organization (UNESCO) to study how different
countries are attempting to raise education standards, for example by
looking at best practices in the recruitment, training, compensation and

accountability of the teaching profession internationally. We commit
ourselves to explore jointly ways to work together and through
international institutions to help our own countries as well as
developing
nations use technology to address learning and development needs, for
example, through distance learning.

V. Strengthening Social Safeguards

19. As the process of globalization has gained momentum, it has brought
with it important social and economic progress. At the same time, rapid
change and integration has left some individuals and groups feeling
unable
to keep up and has resulted in some dislocation, particularly in
developing
countries. We therefore need to take steps to strengthen the
institutional
and social infrastructure that can give globalization a "human face" and

ensure increasing, widely shared prosperity.

20. Social security policies, including social safety nets, must be
strong
enough to encourage and enable individuals to embrace global change
and liberalization and to improve their chances on the labor market,
while
enhancing social cohesion. We recognize that faced with financial
constraints, it is vital to strike a sustainable balance between social
support programs and greater personal responsibility and initiative.

21. We are convinced that the countries most seriously affected by the
recent economic and financial crises will sustain a speedier recovery if

they create and improve the necessary social infrastructure. It is
therefore particularly important to maintain investment in basic social
services during times of crisis. Budgetary priorities and flexibility
should
enhance the quality of social infrastructure and investment.

22. Democracy, the rule of law, good governance and respect for human
rights and for core labor standards are further indispensable
prerequisites
for social stability. The development of well-functioning and
corruption-free institutions that are cost-effective, transparent and
accountable to the public must complement the process of liberalization.

23. We call on the International Financial Institutions (IFIs) to
support
and monitor the development of sound social policy and infrastructure in

developing countries. We commend actions already being taken in this
regard. We urge the International Monetary Fund (IMF) to give more
attention to this issue in designing its economic programs and to give
particular priority to core budgets such as basic health, education and
training to the extent possible, even during periods of fiscal
consolidation.
We welcome the efforts of the World Bank, in collaboration with the UN,
to develop principles of good practice in social policy and their work
to
strengthen partnerships with borrower countries through the
comprehensive development network. We invite the World Bank and the
IMF to work together to develop a set of policies and practices that can

be drawn upon, by donors and borrowers alike, in the design of
adjustment programs that ensure the protection of the most vulnerable.

24. We support improved exchange of information, including analysis of
the cost and benefits of social safety nets, within the UN, the OECD,
and
in other appropriate fora on the design and implementation of social
reforms.

25. We commit ourselves to promote effective implementation of the
International Labor Organization's (ILO) Declaration On Fundamental
Principles and Rights at Work and its Follow-up. We also welcome the
adoption of the ILO Convention on the Elimination of the Worst Forms of
Child Labor. We further intend to step up work with developing countries

to improve their capacity to meet their obligations. We support the
strengthening of the ILO's capacity to assist countries in implementing
core labor standards.

26. We also welcome the increasing cooperation between the ILO and the
IFIs in promoting adequate social protection and core labor standards.
We
urge the IFIs to incorporate these standards into their policy dialogue
with member countries. In addition, we stress the importance of
effective
cooperation between the WTO and the ILO on the social dimensions of
globalization and trade liberalization.

VI. Deepening the Development Partnership

27. Developing countries are essential partners in a globalized world.
We
are committed to working with them, especially with the poorest
countries, to eradicate poverty, launch effective policies for
sustainable
development and develop their capacity to integrate better into the
global economy, thus benefiting from the opportunities offered by
globalization.

- We will continue to provide substantial support and assistance to
developing and transition economies in support of their own efforts to
open and diversify their economies, to democratize and improve
governance, and to protect human rights.

- We will strive gradually to increase the volume of official
development
assistance (ODA), and to put special emphasis on countries best
positioned to use it effectively.

- To ease future debt burdens and facilitate sustainable development, we

agree to increase the share of grant-based financing in the ODA we
provide to the least developed countries.

- Non-governmental organizations also have an important role to play.

- While international assistance and debt relief are clearly important,
their
positive effects depend on sound national efforts towards economic and
structural reform and good governance, where the private sector and
civil
society are able to play productive roles.

- We intend to step up work with developing countries and multilateral
institutions to improve developing country capacity to exercise their
rights and meet their obligations in the global trading system so as to
ensure that they derive the full benefits of liberalized trade and thus
contribute to global economic growth.

- We call on the UN and the IFIs to help developing countries mobilize
sufficient means for social services and basic infrastructure and
continue
to support and to mainstream democratization, good governance and the
rule of law into country development strategies.

- We reaffirm our support for the OECD mandate to finalize a
recommendation on untying aid to the least developed countries. We call
on OECD members to bring this effort to a successful conclusion as soon
as possible.

28. We reaffirm our commitment to contribute to the achievement of
economic and social development in Africa, Asia and Latin America. We
will review the situation in that regard every year, on the basis of
reports
by the IFIs and the relevant regional development banks, on the
alleviation of poverty.

VII. Launching the Köln Debt Initiative

29. We have decided to give a fresh boost to debt relief to developing
countries. In recent years the international creditor community has
introduced a number of debt relief measures for the poorest countries.
The Heavily Indebted Poor Countries (HIPC) framework has made an
important contribution in this respect. Recent experience suggests that
further efforts are needed to achieve a more enduring solution to the
problem of unsustainable debt burdens. To this end we welcome the 1999
Köln Debt Initiative, which is designed to provide deeper, broader and
faster debt relief through major changes to the HIPC framework. The
central objective of this initiative is to provide a greater focus on
poverty
reduction by releasing resources for investment in health, education and

social needs. In this context we also support good governance and
sustainable development.

30. We are aware that new proposals will require additional substantial
financing. While several means of financing are under consideration,
credible progress in identifying additional funding possibilities is
needed,
and we stand ready to help with financing solutions. In this context we
recognize the importance of fair burden sharing among creditors.

VIII. Redoubling Efforts to Protect the Environment

31. To underscore our commitment to sustainable development we will
step up our efforts to build a coherent global and environmentally
responsive framework of multilateral agreements and institutions. We
support the outcome of the G8 Environment Ministers' meeting in
Schwerin and will expedite international cooperation on the
establishment,
general recognition and continual improvement of environmental standards

and norms. We agree that environmental considerations should be taken
fully into account in the upcoming round of WTO negotiations. This
should
include a clarification of the relationship between both multilateral
environmental agreements and key environmental principles, and WTO
rules.

32. We agree to continue to support the Multilateral Development Banks
in making environmental considerations an integral part of their
activities
and we will do likewise when providing our own support. We will work
within the OECD towards common environmental guidelines for export
finance agencies. We aim to complete this work by the 2001 G8 Summit.

33. We reaffirm that we consider climate change an extremely serious
threat to sustainable development. We will therefore work towards timely

progress in implementing the Buenos Aires Plan of Action with a view to
early entry into force of the Kyoto Protocol. In particular, we
encourage
decisions on the operation of the Kyoto mechanisms and on a strong and
effective compliance regime. We underline the importance of taking
action
to reduce greenhouse gas emissions through rational and efficient use of

energy and through other cost-effective means. To this end, we commit
ourselves to develop and implement domestic measures including under
the UN Framework Convention on Climate Change. We also agreed to
exchange experience on best practices. We will also promote increasing
global participation of developing countries in limiting greenhouse gas
emissions. We welcome the action already taken by developing countries
and stress the need to support their efforts through financial
mechanisms, the development and transfer of technology, and
capacity-building. We note the important role that the Clean Development

Mechanism (CDM) can play in these areas. We also welcome the intention
announced by some developing countries in Buenos Aires to undertake
further commitments to abate their greenhouse gas emissions.

IX. Promoting Non-proliferation, Arms Control and Disarmament

34. Strengthening the international non-proliferation regime and
disarmament measures is one of our most important international
priorities. We intend to build a broad international partnership on
expanded threat reduction to address security, arms control,
decommissioning and non-proliferation requirements while reducing risks
to
the environment. This will build on efforts currently being undertaken
and
planned by G8 countries and others. We are committed to increased
resources for these purposes and encourage all other interested
countries
to join us.

35. We recognize the continuing need to protect and manage
weapons-grade fissile material, especially plutonium. In past years, G8
countries have worked on the issue of managing weapons-grade nuclear
material no longer required for defense purposes. We affirm our
intention
to establish arrangements for the safe management of such fissile
material. We strongly support the concrete initiatives being undertaken
by G8 countries and others for scientific and technical cooperation
necessary to support future large-scale disposition programs. We invite
all
interested countries to support projects for early implementation of
large-scale programs and urge establishment of a joint strategy. We
recognize that an international approach to financing will be required
involving both public and private funds, and we will review potential
increases in our own resource commitments prior to the next G8 Summit.

36. We are deeply concerned about recent missile flight tests and
developments in missile proliferation, such as actions by North Korea.
We
undertake to examine further individual and collective means of
addressing this problem and reaffirm our commitment to the objectives of

the Missile Technology Control Regime (MTCR).

37. Effective export control mechanisms are essential for achieving a
broad range of our arms control and non-proliferation objectives. We
will
continue to look for ways to strengthen these mechanisms. At the same
time we stress the role of the Nuclear Suppliers' Group in preventing
nuclear proliferation.

38. One year after the nuclear tests by India and Pakistan, we reiterate

our concerns and reaffirm our statement from the Birmingham
Communiqué. Recent missile tests have further increased tension in the
region. We encourage both countries to follow first positive steps
already
undertaken by joining international non-proliferation and disarmament
efforts and taking the steps set out in UN Security Council resolution
1172.

X. Tackling Global Challenges

39. In many countries, violent conflicts and civil wars continue to be
an
obstacle to making good use of the opportunities of globalization.
Effective crisis prevention and management must address the root causes
of these conflicts. These causes include the political manipulation of
ethnic tensions, economic and social inequality, and extreme poverty as
well as the absence of democracy, the rule of law and good political and

economic governance. They are often exacerbated by human rights
violations, environmental degradation, scarcity of resources, rapid
population growth and the rapid spread of diseases.

40. In order to improve our ability to prevent crises, it is necessary,
consistent with the principles and purposes of the UN Charter, to:

- enhance the capacity to recognize and address the potential for
conflict at an early stage. Risks and causes of violent conflicts must
be
more effectively monitored and the information shared to forestall them;

- ensure that our security, economic, environmental and development
policies are properly coordinated and are conducive to the prevention of

violent conflict. We will, in our dialogue with other countries and
international institutions, work to coordinate our policies;

- recognize the important role the United Nations plays in crisis
prevention and seek to strengthen its capacity in this area;

- monitor systematically military expenditures in the larger context of
public expenditure patterns and in the macroeconomic context for growth
and development;

- encourage and support the efforts of regional organizations and
arrangements to expand their jurisdictional and operational ability, in
accordance with international law, to help control and resolve conflict
in
their area;

- promote a free press, establish fair electoral processes, help improve

the democratic accountability and functioning of legislatures, of
judicial
systems and of the military and the police forces, and improve human
rights monitoring and advocacy.

41. We are concerned at the continuing global spread of AIDS. We
reaffirm the need to continue efforts to combat AIDS at the national and

international level through a combined strategy of prevention, vaccine
development and appropriate therapy. We welcome and support the
coordinating and catalytic role of UNAIDS in the fight against AIDS. We
call on co-sponsors and other partners to cooperate in the formulation
of
clear goals, strategies and initiatives at both the global and regional
level.

42. We also pledge to continue our national and international efforts in

the fight against infectious and parasitic diseases, such as malaria,
polio
and tuberculosis, and their drug-resistant forms. In particular we will
continue to support the endeavors of the World Health Organization and
its initiatives "Roll Back Malaria" and "Stop TB". We call on
governments to
adopt these recommended strategies.

43. In light of the increasing importance of issues concerning food
safety
we invite the OECD Working Group on Harmonization of Regulatory
Oversight of Biotechnology and the OECD Task Force for the Safety of
Novel Foods and Feeds to undertake a study of the implications of
biotechnology and other aspects of food safety. We invite OECD experts
to discuss their findings with our personal representatives. We ask the
latter to report to us by the next Summit on possible ways to improve
our
approach to these issues through international and other institutions,
taking into account the reflections underway in other fora.

44. We welcome the growing recognition by the international community
of the damaging effects of all forms of corruption and the coming into
force of the OECD Anti-Bribery Convention in February 1999. We hope
that more countries will ratify the Convention. We applaud the results
and
planned follow-up of the international conference on anti-corruption
efforts, attended by over 80 countries including all G8 partners, and
the
OECD conference on anti-corruption efforts, both held in the United
States in February 1999. In the context of the UN Crime Convention, we
urge that acts of corruption involving public officials be made criminal

offenses.

45. We will sustain the momentum of international efforts to combat
transnational organized crime and the threat it represents to political,

financial and social stability worldwide. We commend the work of the
Senior Experts Groups on Transnational Organized Crime and on Terrorism
and urge them to continue their work, in particular for an early
conclusion
of the negotiations of UN conventions and protocols on organized crime.
We also call for more rapid progress of negotiations on the UN
Convention
on the Financing of Terrorism. We ask the two expert groups to report
back to us next year. We reaffirm our commitment to tackle the drug
issue, in particular through active implementation of the conclusions of

the 1998 UN General Assembly Special Session on the World Drug
Program. We welcome the upcoming Ministerial Meeting on Crime to be
held in Moscow this fall.

46. We renew the commitment we made at the 1996 Moscow Summit to
safety first in the use of nuclear power and the achievement of high
safety standards worldwide. In this regard, we attach great importance
to the results of the Nuclear Safety Convention peer review meeting and
to the International Atomic Energy Agency Conference on Strengthening
Nuclear Safety in Eastern Europe.

47. We reaffirm our commitment to strengthen cooperation in the field of

nuclear safety. We welcome the concerted efforts to address the Year
2000 computer problem ("Millennium Bug") in this area. With regard to
the
Nuclear Safety Account, we continue to attach great importance to full
and timely implementation of the grant agreements.

48. There has been real progress since the Birmingham Summit in tackling

the "Millennium Bug". But there is still much to do. We will maintain
vigorous programs of action to ensure our own Year 2000 readiness and
to minimize the potential impact on our countries and on the world as a
whole. We urge all other governments to do the same. In these efforts,
high priority should be given to the key infrastructure sectors *
energy,
telecommunications, financial services, transport and health * as well
as
to defense, the environment and public safety. Public confidence will be

crucial and will depend heavily upon transparency and openness as to the

state of preparation in critical sectors. Governments, international
organizations, infrastructure providers and information technology
suppliers will need to ensure a regular flow of reliable information to
the
general public. It will be important, as the date approaches, for
responsible bodies to have in place contingency plans to cope with
system failures that may occur in the most sensitive areas despite
intensive preparations. We urge third countries to do the same. We will
maintain close cooperation among ourselves and with others on this as
well as other aspects of the problem. We shall convene a special G8
conference on contingency planning later this year.

Next Summit

49. We have accepted the invitation of the Prime Minister of Japan to
meet in Okinawa (Kyushu) on 21-23 July next year.