Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : CARACAS, VENEZUELA
Tarikh/Date : 27/11/91
Tajuk/Title : THE SECOND SUMMIT OF THE GROUP
OF 15
Your Excellency,
President Carlos Andres Perez;
Excellencies,
the Heads of State and Government
of the Group of Fifteen;
Distinguished Guests;
Ladies and Gentlemen,
It is a great honour for me to be chosen to reply, on
behalf of the Asian members of the Summit Level Group, to
the inspiring address of His Excellency President Carlos
Andres Perez, the host of this second meeting of the G-15
countries.
Mr. President,
2. May I say how delighted I am to be in your beautiful
country and its fascinating capital again. My first visit
here, in 1990, was in connection with the historic launching
of the South Commission Report. I am, therefore, happy to
return for the Second Summit of the G-15, a grouping which
drew inspiration from the South Commission.
Mr. President,
3. Since the Group of Fifteen was inaugurated in Kuala
Lumpur, in June 1990, the global situation has continued its
dramatic evolution. The implications of the recasting of
the international political and economic setting, and the
challenges that have arisen, are clearer today than they
were when we discussed them more than a year ago.
Lamentably, these changes do not all augur well for the
countries of the developing South.
4. In Kuala Lumpur, some of us hoped that with the ending
of the Cold War, there would be a more democratic and equi-
table relation among nations, big and small. That hope has
now been crushed. Indeed the new Unipolar world is fraught
with dangers of a return to the old dominance of the power-
ful over the weak.
5. The global unity of action which ended an unacceptable
aggression against a small country, has not been translated
into new positive global approaches to resolve pressing is-
sues which beset the international community. Instead a New
World Order is propounded seemingly to legitimise interfer-
ence in the affairs of independent nations. In an interde-
pendent world there may be grounds for internationally
determined action but there can be no justification for uni-
lateral decisions to meddle in another country's affairs.
6. A part of that New World Order is the forceful spread
of the religion of Democracy and the Free Market, as inter-
preted exclusively by self-proclaimed prophets, whose dic-
tates must be accepted as holy script. It is not that we
reject these precepts totally. But as with all religions,
there are many perceptions, definitions and interpretations.
To insist that there can be only one interpretation of the
new religion is to propagate rule by self-appointed clergy.
Is there going to be no secularity in the practice of this
religion?
7. Threats are made and conditionalities proposed on trade
and aid if the Northern political and economic model is not
strictly adhered to. It does not require a detailed analy-
sis of developments in the Soviet Union and Eastern Europe
to realise that there is no magic in democracy or the free
market. They do not make poverty, debt and backwardness
disappear and they certainly do not guarantee stability, a
sine qua non for a community's welfare and development.
Mr. President,
8. The fact is that the international economic system is
under severe strain, more than it has ever been. The ineq-
uities of the international economic system have never been
so stark. There is recession in the North, aid flows have
been reduced and debt, poverty, hunger and disease in the
South have spread and deepened. Furthermore, the preachers
of free trade and multilateralism have now become the big-
gest heretics. We see this in the formation of trade blocs
in the North, in the imposition of national laws beyond the
borders of the powerful and in the discriminatory applica-
tions of trade restrictions. We see this in the various
conditionalities imposed on trade with the developed North.
We see this in the pressures applied and the stands taken at
multilateral negotiations such as in the GATT. We see this
also in the total censorship or distorted reporting of the
views and affairs of the South by the much vaunted free
press of the North which control worldwide dissemination of
news.
9. Together with "democracy" and the "free market" comes
the new gospel of "the environment". We are told that the
South must curb its aspirations and its approach towards de-
velopment so that mankind, i.e the rich North's enjoyment of
the good life is not threatened. Against all accepted codes
of ethics, the poor are being told, and indeed coerced into
paying for the well-being of the rich.
10. We see the manipulation of UN agencies to impose North-
ern values on the South. I refer here to the UNDP's new ap-
proach in measuring socio-economic progress. They have come
up with a new yardstick known as the "Human Freedom Index",
where a nation's Freedom Rating depends on whether
homosexuality between consenting adults is permitted or not.
11. And yet it should be obvious that the real need is to
redress the inequities and economic distress caused by dec-
ades of exploitation of the poor by the rich. If a coali-
tion to win a war can be forged, why not a coalition to
address the critical issues of the South and to wage war on
illiteracy, disease, poverty and deprivation? The wealth
and much touted technology of the North should be used, not
for destruction, but for the benefit of all peoples, espe-
cially for those in want.
12. We need a world where the international community takes
decisive action to improve the lot of the world's poor which
for many in sub-Sahara Africa, Asia and Latin America have
worsened. Unrelenting poverty is still very much with us.
With the now permanent debt burden the chances of the poor
rehabilitating themselves without outside understanding, if
not help, are bleak.
13. The new agenda, therefore, should be for a "Supportive
World Order" where decisions which affect the vital inter-
ests of developing countries are not made by a privileged
few in total disregard for the views of the countries con-
cerned. What is needed is a new era of global cooperation
in which the interests and views of all countries are given
due regard. And, if democracy is the sole acceptable poli-
tical creed, let there be democracy also in the process of
global decision-making.
14. A Supportive World Order would look at ways to reverse
the current unhealthy trends, so that developing countries
can have a meaningful share of the wealth of this planet.
Any necessary adjustment must not be made only by the South.
The North too must adjust for in the end the North will ben-
efit from the prosperity of the South.
15. Before the North wags a finger at the alleged
profligacy of the South it should first reduce its own mas-
sive budget deficits and live within its means. The North
must know that their irresponsible spending is affecting
world currency and financial markets. They must improve
savings and eliminate wasteful consumption. They must give
up subsidies and price support for agricultural products and
remove protectionist barriers that impede access to market
for the produce of developing countries. Above all, they
must learn to be competitive and not blame others for eco-
nomic and other woes brought on by their own inadequacies
and unaffordable standard of living.
16. The North must accept the legitimate aspirations of
other nations. When they fortify themselves economically
behind trade blocs, they must accept that others also have a
right, at least, to raise their voices in defence of their
interest. Yet the East Asians are not allowed even to con-
sult each other or indeed to call themselves East Asians.
The United States rejects and opposes vehemently the East
Asia Economic Caucus or EAEC and demands that Japan and
South Korea dissociate themselves from the formation of this
consultative group. South Korea is told that it owes a debt
of blood to the United States and it owes nothing to
Malaysia and should therefore toe the U.S. line.
17. Even the global environment, one of the many issues re-
quiring the cooperation of all countries, is being subjected
to sectarian pressures and interests. We are told that is-
sues involving global commons, such as the high seas outside
national jurisdiction, and the disposal of radioactive
wastes cannot be included in the on-going global discussions
to prepare for UNCED 1992 in Rio. On the other hand, the
management of forests, often the sole source of wealth to
the poor, is spotlighted as if proper forest management
alone will cure all the environmental ills.
18. Historically and currently, the North is the principal
culprit for global environmental degradation. Nothing il-
lustrates this better than the fact that presently the rich
which make up less than 20 per cent of the global population
are responsible for 80 per cent of the greenhouse gas emis-
sions. And, the largest industrial power is responsible for
30 per cent of carbon dioxide emissions. While nearly 1.5
billion people live in abject poverty in developing coun-
tries, the North continues with its wasteful polluting life-
styles. Still the Governments and the NGOs of the developed
countries working through their cohorts in the developing
countries have succeeded in deflecting attention from mas-
sive pollution by the developed nations.
19. If forests can save the world from the greenhouse ef-
fect, then there should be a massive effort at greening the
world. Every nation should have an acceptable level of for-
est covers. It is a fact that most countries in Western
Europe and North America have less than 30 per cent of their
land area under forest cover. Some of them have even less
than 10 per cent. On the other hand, developing countries
with tropical forests have more than 50 per cent of their
land under forest cover. Malaysia, for instance, has 56 per
cent of its land under forest cover, with an additional 13
per cent covered by tree plantations.
20. Clearly the greening of the world can best be carried
out by the rich and technologically advanced North. There
is no excuse for such negative actions as boycotting trop-
ical timber, forcing forest dwellers to remain primitive and
keeping developing countries permanently poor in order to
prevent deforestation. A massive effort can be made to
reafforest the Sub-Saharan regions, the deserts and the in-
efficient wheatlands of the U.S., as well as selected
bushlands where underground water is abundant. It is
grossly unjust to impose on the poor the responsibility of
maintaining bio-diversity especially when it exposes them to
various diseases and deny them modern amenities.
Mr. President,
21. With all these changes and threats facing us, there is,
today, an even more compelling need for us in the South, to
work together to protect our threatened independence and to
improve our countries' development prospects. Until and un-
less we do this, the North will continue to marginalise us.
In the G-15 we have made a modest beginning in South-South
cooperation, but we need to build on this and to accelerate
and widen our collaboration.
22. It will not be easy, but then nothing worthwhile is
easy. We must have the political will and we must accept
the need to sacrifice now for a more permanent gain in the
future.
23. The G-15 is still a very new Forum but we can take a
measure of satisfaction in what we have achieved so far.
Quietly, and without fanfare, economic cooperation, not only
among the 15, but among other South countries, has begun to
bear fruit.
24. Malaysia-Venezuela relations are a case in point. Be-
fore the G-15 process began, we hardly knew each other. We
did not even have International Direct Dialing (IDD), Fac-
simile services or Expedited Mails Service between us.
These are in place today. A bilateral payments arrangement
has been signed. Businessmen and Ministerial delegations
have visited each other's countries. Our trade, though
still modest, has, nevertheless, increased four-fold in the
course of one year. A diplomatic presence in each other's
capital has been established, and a whole range of projects
are in the pipeline; projects which will be economically and
politically beneficial to both our countries.
25. It is not our intention to break away from the North.
We should in fact increase our interaction with them but we
must at the same time increase southern interdependence so
as to reduce over dependence on the North.
26. The Kuala Lumpur Summit approved a novel trade-
enhancing mechanism to promote economic cooperation among
developing countries. The idea of bilateral payments ar-
rangements between pairs of developing countries was con-
ceived in the basement of the Iranian Central Bank by
Iranian and Malaysian officials in early 1988. The root of
the problem was that exporters in Iran and Malaysia, being
unfamiliar with each other, were not willing to assume the
normal credit risks that went with unconfirmed letters of
credit. Both the Central Banks, therefore, entered into an
arrangement whereby each side guaranteed payment for its
exporters. In this way total bilateral trade would need
foreign currency only for settling the balance of trade be-
tween two countries. Foreign exchange earnings would there-
fore be less a constraint to trade.
27. The G-15 countries have further refined the original
Iranian model. Malaysia has signed bilateral payments ar-
rangements of the G-15 model with Venezuela, Nigeria,
Mexico, Mozambique and Chile. And, in the not too distant
future, we expect to sign similar arrangements with Senegal,
Algeria, Zambia and Vietnam.
Mr. President,
28. Many countries in the South have developed skills and
expertise as well as agricultural and industrial capacities
which can benefit all developing countries. But we are
still far from taking advantage of the potential and oppor-
tunities in South-South trade, investment and technology
transfer among ourselves.
29. On the other hand, companies in the North, through an
established network of business relationships and databases,
have been finding doing business with the South very profit-
able. Clearly we are missing opportunities for mutual help
in the South. Why is this so? The answer perhaps lies in
our inherited perception that the North is the hub of the
world. As a result all our communication lines and trade
are with the North and it is they who redistribute our pro-
ducts to the rest of the world including ourselves. This
means that we buy our own goods through them.
30. The net result is that our imports cost more and our
exports yield less. The North on the other hand not only
profit from their middleman role but from processing,
freight and insurance. We lose at every turn.
31. It is for this reason that the Kuala Lumpur Summit ap-
proved the setting up of a "South Investment, Trade and
Technology Data Exchange Centre" (SITTDEC). SITTDEC will
provide the necessary information to improve trade among the
nations of the South, to reduce cost and to retain the pro-
fits with us.
32. As we had decided at the Kuala Lumpur Summit, the
projects that we adopt are open to participation by any
country in the South which wishes to do so. They are not
confined to the members of the G-15 only. But, Malaysia
firmly believes that the unreadiness of some countries, in-
cluding members of the G-15, to participate in the projects
presently should not hold back their implementation if oth-
ers can and wish to go ahead.
Mr. President,
33. We must work together to maximise our strength and to
speak with one voice. We must take advantage of our mutual
potential which has been so long neglected. If we want an
equitable world in which we are not marginalised, we must
work for it pragmatically and realistically ourselves. We
cannot expect others to do this for us. In this way we can
confront today's and tomorrow's challenges with some hope of
success. It is for us, the members of the G-15, to pioneer
effective South-South Cooperation and to show what can be
done. Malaysia looks forward to achieving further progress
in this direction to result from this Second Meeting of the
Group of 15 Countries of the South.
Thank you.
|
|