GLOBAL BUSINESS ISSUE

The G8 is an informal group of the world’s richest countries

which meet every year to discuss issues of common interest
and concern. Do you agree or disagree that despite their
wealth, the G8 does not give their full commitment to
tackle global poverty. Explain your answer.
 GROUP MEMBERS

NOOR AZEAN BT MOHAMED

ZANARIAH BT LAZIM
AZMAN BIN HASAN
 WHO ARE G8?
•Group of eight
Formerly G7 and has taken place since 1975 though
it has only become a high profile event in recent
years.
•G8 consists of leaders from the 7 wealthiest,
countries in the world which is (Canada, France,
Germany, Great Britain, Italy, Japan and United
States) plus Russia
G8 COUNTRIES
CANADA ITALY

JAPAN RUSSIA

FRANCE UNITED KINGDOM

GERMANY UNITED STATES

 WHY THEY ARE FORMED?

•To deal with the world ‘s (or their) most pressing

concerns.
•To discuss a number of social, political and
economic issues.
•To discuss issues of mutual or global concern.
•The range of topics include health, law
enforcement, labour, economic and social
development, energy, environment, foreign
affairs, justice and interior, terrorism and trade.
 WHAT IS POVERTY?
•Poverty is defined as an economic condition
of lacking both money and basic necessities,
needed to successfully live, such as food,
water, education, healthcare and shelter.
•In short, poverty may be defined as the
economic condition of lacking predictable
and stable means of meeting basic life
needs.
BEAR IN MIND
Each country measures poverty according to its level of
development, societal norms and values. Because of these
differences, the poverty level may change from country to
country; thus, there is no uniformity in the poverty line. The
poverty line is a measure of the amount of money a government
or a society believes is necessary for a person to live at a
minimum level of subsistence or standard of living.
( Barker, 1997)

Population living under 2 and 1 dollar (PPP) a day (%)

Population living below national poverty line (%)
 OUR STAND

We AGREE that despite their

wealth, the G8 does not give their
full commitment to tackle global
poverty.
 G8 POWERS & INFLUENCE

•Their direct and indirect influence is great and far-reaching

•Able to push policies and agendas in formal world institutions.
•G8 have nearly 50% of the votes in the World Bank and International
Monetary Fund (IMF)
•Enormous influence in the World Trade Organisation (WTO) and the
Security Council of The United Nation (UN)
•These combined economic, military and diplomatic power and
influence form powerful alliances to exert influence in world politics.
•Plus, G8 give great influence on the policies, programmes and
decisions of the UN, WTO, IMF and so on.
•In short, G8 are THE CENTRAL PLAYER IN GLOBAL GOVERNANCE.
 LIVE 8 CONCERT
2005
Live 8 was a string of benefit concerts that took place on 2 July 2005, in
the G8 states and in South Africa. They were timed to precede the G8
Conference and Summit held at the Gleneagles Hotel in Auchterarder,
Scotland from 6-8 July 2008; they also coincided with the 20th
anniversary of Live Aid. Run in support of the aims of the UK's
Make Poverty History campaign and the Global Call for Action Against
Poverty, the shows planned to pressure world leaders to drop the debt of
the world's poorest nations, increase and improve aid, and negotiate fair
trade rules in the interest of poorer countries. Ten simultaneous concerts
were held on 2 July and one on 6 July. On 7 July the G8 leaders pledged to
double 2008 levels of aid to poor nations from US$25 to US$50 pounds by
the year 2010. Half of the money was to go to Africa.
(Wikipedia)
 LIVE 8 CONCERT
2005

•“MAKE POVERTY HISTORY” or so they say.

•Highly publicised
•Attended by around a million of people in
total
•Hundreds of millions were watching on
television
•G8 leaders are the real stars
 WHAT ARE
OVERSHADOWED ?
•“Make poverty history” is so exaggerated.
•Short-term achievements that might be possible at the G8 MUST NOT
MEAN that deeper issues be forgotten or missed.
•For instance, debt cancellation, fairer trade and the delivery of pledged
aid would do much to alleviate poverty BUT it is only a first step on much
longer journey.
•Organisations and celebrities backing the campaign do not succumb to
the temptation to claim victory and exaggerate the likely benefits.
•Wrongly convincing the wider public through the use of media.
•The Telegrapgh reported, Geldof told artists not to criticise Bush or Blair
about Iraq. (He seemed to be courting the G8 leaders)
 $40 BILLION DEBT
WRITE-OFF
•G7 (Minus Russia) offered a deal of $40
billion cancellation of third world debt.
•While this is very encouraging, there are
some concerns because in the past,
announcements of debt relief have not really
been followed up.
•The media are praising this. But, delving into
the details reveals a less rosy picture.
 REALITY CHECK!!!
•Past promises have hardly been kept.
•For example:
a) the debt cancellation doesn’t ACTUALLY happen
b) the debt cancellation is VERY SLOW to happen
c) the amount of money or cancellation promised is
actually far less due to fancy spin and adding in
money that has already been earmarked for
this purpose.
 HERE’S WHAT’S REAL
•For poor countries, third world debt is a CRUCIAL issue.
Crippling third world debt kills:-
Rich countries have pressured these poor countries to
sacrifice health and education spending, prioritise on debt
payment.
Rich countries have protected their agricultural market while
forcing poor countries to open theirs,l eading to dumping and
flooding of products driving local people out of businesses and
livelihoods.
For rich countries, the debt figures are a tiny but for poor
countries, the same figures are a matter of life and death
These cancellation offer is
a PROPOSAL only!
WHY?
•Aid is often tied to unfair conditions
a) trade liberalisation
b) privatisation
c) lowering barriers to trade through pursuit of neoliberal
ideology
•More money is transferred from poor countries to rich countries
•Aid amounts are dwarfed by the effects of first world subsidies, third
world debt and unequal trade.
•The existence of unsustainable debt burdens, trade injustice and aid
dependency are the result of global economic system and it favour the
wealthy, and to ensure the survival of the existing structure of the rich
country dominance.
 If these conditions are unfair,
why they still pursued?

•G8 power and influence

•The real problem with the G8 conditionalities, they do not
stop pretending to prevent corruption, but INTRUDE into
every aspect of sovereign government. When the finance
ministers say “good governance” and “eliminating
impediments to private investment” what they mean is
commercialisation, privatisation and the liberalisation of
trade and capital flows. And what this means is NEW
OPPORTUNITY FOR WESTERN MONEY.
 CONDITIONS THAT ARE
LESS DISCUSSED…
•Hardly ever heard is that poor countries reduce their MILITARY SPENDING
and STOP PURCHASING WEAPONS, especially arms. One possible reason is
the G8 are the world’s leading suppliers of arms and the arms trade is the
world’s biggest business
•Hardly heard about corruption from the G8.
British companies are among the worst (bribery) offenders. Some 37 of the 55
companies which the World Bank publicly blacklist and has disbarred from
participating in its contract because of evidence of corruption are domiciled in
Britain. Bribes are common in the arm trade, public works and big
infrastructure project.
( The Guardian, December 13 2oo0)

The above article is no doubt a bit old but the problems still continue until
present.
 MEDIA
•Portraying G8 leaders as saviors - G8 are hardly ever been
criticised by the mainstream media themselves in terms of:
a) Rich countries created the debt trap for the third world
b) Rich countries impoverished the third world even before
the debt trap
c) Rich countries have then forced disastrous reform on
poor countries for debt relief in a way that it actually
kills, and reduces chances for development (AS THE AIM
OF REFORMS ARE TO REPAY LOANS)
 MEDIA
•Never is it mentioned why poor
countries are in severe debt.
•The type of aid is hardly discussed,
which is historically used by the donors
to further their own foreign policies,
rather than benefit the recipients.
 SO…..
Because so many headlines are about what
different G8 leaders say, it seems as though
the agenda and media reporting are DRIVEN
by G8 leaders. In other words, giving the G8
leaders a cleaner image than they otherwise
deserve. The media COULD serve the public
better by deeply scrutinising claims and
reporting more on deeper causes up front.
 SUGGESTIONS
•Africa nations really need to be allowed to stand on their
own feet and be allowed to solve their own problems, and
where needed, as an equal to outsiders providing much-
welcomed assistance.
•Aid is not a matter of charity: it is JUSTICE
•An interesting suggestion to African leaders. To default on
the debt. Declare bankruptcy and start all over again. Of
course, it is likely to happen as rich countries will ensure
debt repayments continue. Just to show how UNJUST debt
could be dealt with.
 AND SO WE AGREE…

1. The subtle manipulation

2. The hidden agenda
3. The unfair conditions
4. The political
propaganda/spin
 THESE ARE SO NOT

FULL COMMITMENT
IN TACKLING
GLOBAL POVERTY