MORE TO DEVELOPMENT THAN AID: REPORT

On 26 May, the Centre for Global Development and Foreign Policy Magazine launched their Commitment to Development Index (CDI) in Geneva, which ranks 21 of the world's richest nations according to how much their policies in six areas help or hinder the economic and social development of poor countries. The six areas include aid, trade, environment, investment, peacekeeping, and migration policies. The Netherlands ranks top while the world's two largest aid donors, Japan and the US, finish last. Participants of the launch welcomed the Index as an important stride towards building a popular base in rich countries in support of development, underscoring the need to link the CDI to delivering the Millennium Development Goals by 2015. On trade, where the US came out first, several participants noted that results would likely have been different had the Index, in addition to looking at market access, taken into account "the rules of market access and trade", such as subsidies and anti-dumping measures. Also, the Index did not factor in the positions adopted by rich countries in multilateral trade negotiations, such as on intellectual property rights and health, they noted.

ICTSD reporting.

LDC COMMERCE MINISTERS TO ADOPT COMMON STRATEGY ON TRADE

Trade ministers of the 49 least-developed countries (LDCs) meeting on 31 May - 2 June in Dhaka, Bangladesh, are expected to finalise their common strategy on trade for the next WTO Ministerial Conference in Cancun, Mexico, in September, according to Bangladesh's Commerce Minister Amir Kasru Mahmud Chowdhury. "LDCs have no alternative...but to adopt trade as a principal too for fighting poverty," Chowdhury noted. The countries are likely to call for the elimination of tariff and non-tariff barriers, facilitated movement of natural persons from poor countries to developed nations, simplified rules of origin on the exports from the LDCs, financial assistance for trade-related technical cooperation and technology transfer.

"Bangladesh to urge trade strategy for poor nations," REUTERS, 24 May 2003.

EU TO COMBAT ILLEGAL TIMBER TRADE

The EU announced on 21 May an Action Plan to combat illegal logging and trade in related timber products. Global forest product trade is worth US$ 150 billion per year, and according to the European Commission, "in some forest-rich countries, the corruption fuelled by profits from illegal logging has grown to such an extent that it is undermining the rule of law, principles of democratic government and respect for human rights". According to the World Bank, developing country governments are currently losing US$10-15 billion annually due to illegal logging. Under the FLEGT Action Plan, the EU would support improved governance in wood-producing countries and initiate voluntary partnerships with these countries to ensure that only legally harvested timber entered the EU market. The Action Plan would also seek to strengthen international collaboration to combat illegal timber trade. The European Commission approved the FLEGT Action Plan just prior to the UN Forum on Forest, which is taking place from 26 May to 6 June in Geneva.

For further information, refer to the Royal Institute of International Affair's "Illegal-logging.info" website, which provides information on the current international debate around the control of illegal logging and forest crimes.

"E.U. bids to cut down worldwide illegal timber trade," REUTERS, 20 May 2003; "Commission adopts Action Plan to combat illegal logging and the trade in illegal timber," EC PRESS RELEASE, 21 May 2003.

CUBA WITHDRAWS COTONOU APPLICATION

Cuba announced on 19 May its intention to withdraw its application to join the Cotonou Agreement. Under this agreement, the EU provides its former colonies in the Africa, Caribbean and Pacific (ACP) region with trade preferences and aid. Had Cuba become a member, EU aid to the country would have tripled. However, in a review in April the EU had decided to hold up the Cuban application process due to human rights concerns. According to a Cuban official, this move was seen as an unacceptable attempt to pressure the country into approving external conditions. The EU had criticised Cuba for the severe treatment of 70 dissidents and for the execution of three hijackers in April.

"Cuba Withdraws Application To Join EU Aid-And-Trade Pact," ASSOCIATED PRESS, 19 May 2003; " Castro Slams the Door Once Again," IPS, 20 May 2003.