OneWorld.net (U.S.)

WASHINGTON: On the eve of the G-20 meeting in Hebei, just outside Beijing, the World Bank President, Paul Wolfowitz, issued a warning that unless all countries made real concessions, the Doha round of international trade negotiations would fail.

Speaking to students at Lanzhou University in Gansu Province - one of the poorest parts of China - Wolfowitz said that the G-20 finance ministers' meeting offered a vital opportunity to fix global imbalances, and to create a more stable and equitable world.

But unless the trade talks opened the way for developing countries to sell more of what they produce internationally, they would have no way to escape poverty or dependency on aid.

A background paper for the G-20 meeting prepared by the World Bank describes the December meeting of the World Trade Organization as a test for the international community and says the outcome of that meeting will be crucial for progress in trade liberalization. It asks the G-20 to consider what role it can play in "securing the necessary political impetus to ensure concrete results" in Hong Kong.

In his talk at Lanzhou, Wolfowitz said that "to accelerate progress in the fight against poverty, rich and poor countries agreed on a global compact - a deal aimed at bringing hope and opportunity for the poor. Rich countries promised more aid and debt relief and, in return, poor countries promised to combat corruption and strengthen governance and accountability."

"But aid and debt relief alone will not lead to successful development. It is also going to depend on creating trade opportunities."

Wolfowitz said that "combined with increased aid and debt relief, trade promises to deliver the greatest long-term benefits to the poor. We can forgive as much debt as we like and provide more aid, but unless poor countries can trade and sell their products, they will not escape poverty and aid dependency."

"In December, members of the World Trade Organization will meet in Hong Kong to reach a trade deal that could benefit developing countries and give them greater access to global markets for their goods. The 'Doha Development Round' as these negotiations are called, presents a historic opportunity to transform the lives of the 1.1 billion people trapped in poverty worldwide today."

"In an effort to save the negotiations, the United States and the European Union made important offers this week to cut farm subsidies and trade tariffs. But unless all countries make similar concessions, the Doha Round will not deliver results."

"Developed countries must take the lead in opening their markets, especially in agriculture. But developing countries, particularly the major economies like China, India and Brazil, will need to reduce barriers to manufactures, agriculture and services. It not only serves their own economic interests, but also encourages trade between developing countries, as we have seen recently in Asia."

SOURCE: The World Bank