BASIC idea: Collectively provide financial aid to vulnerable nations
The Economic Times | 27 Jan 2010
NEW DELHI: In an effort to reposition them as the leader of the developing world, the BASIC countries sought to build up pressure on the rich countries to deliver on their promise of funds. At the same time, the four advanced developing countries—Brazil, South Africa, India and China—discussed the idea of collectively providing financial and technological assistance to vulnerable countries. Though the idea of a fund was discussed, there was no decision, and the discussions will be taken forward at the meeting in Cape Town in April. The key takeaway for vulnerable countries—small island states and less developed countries—from the Copenhagen Accord is the provision of funds to deal with climate change.
The four nations collective were key players in the formulation of the Copenhagen Accord. At the meeting held in New Delhi on Sunday, the collective sought to use its position to address the urgent needs of vulner-able countries. Brazil’s environment minister Carlos Minca described the effort by the BASIC countries to put forward money as a “slap in the face of the rich countries.”
At the end of their day-long meeting, the BASIC countries sought to turn up the pressure on developed countries to step up and provide the promised funds. Minister of state for environment Jairam Ramesh had said, ”The proof of commitment of rich countries will be if the $10 billion actually flows to small island states, Africa, less developed countries in 2010. If it doesn’t happen that would mean they are not serious.The $10 billion promise is one that the BASIC can’t keep for them.”
Both the $30 billion fastrack fund for the period 2010 to 2012, and the mobilisation of $100 billion, which was announced by US Secretary of State Hillary Clinton at Copenhagen, are part of the Accord. It states that a high level would be established to “study the contribution of the potential sources of revenue, including alternative sources of finance, towards meeting this goal.”
By focussing on funds for the vulnerable countries could help the group to marshal the developing countries behind it in the negotiations in the run up to the Mexico conference. There has been a sense that in Copenhagen, the advanced developing countries had broken ranks with the G-77. The effort takes on significance given the underlying unease of the BASIC countries over demands by EU and other developed countries to make the Copenhagen Accord a legally binding treaty.
For the four countries to retain their negotiating strength they will need to rally the developing group.
The pressure from the BASIC countries to ensure fund flows was made in the context of total silence on finance in the UNFCCC notification issued by executive secretary Yvo de Boer on January 18. The main focus of the notification and the joint letter by UN secretary general Ban Ki-Moon and Danish Prime Minister Lars Locke Rasmussen to heads of state and government earlier this month has been to get all countries to get on board the Accord.
The January 18 notification makes no reference to any deadline for developed countries to put forward their financial pledges.
The silence raises somewhat of a red flag as earlier this month, the UN secretary general was considering setting up a panel to work on how the financing would be organised, and to ensure that the developed countries actually start putting up the $30 billion that had been promised at Copenhagen. up.
The UN secretary general is understood to be keen to have this panel in place before the Bonn meeting in May/June. Sources said that there has been some movement on the high panel group being set up within the secretariat in New York. UK Prime Minister Gor-don Brown and Ethiopian Prime Minister Meles Zenawi may be asked to act as chairs of this panel, which would also look into the $100 billion fund.
In another effort to reach out to the vulnerable countries and consolidate the G-77, as well as push the developed countries to ensure fund flow, the BASIC discussed the efforts to enhance support to less developed and vulnerable countries.
At the Copenhagen conference, Brazil’s President Luiz Inacio Lula da Silva had committed to contribute funds for less developed and vulnerable countries. This is in line with the Mexican proposal which doesn’t find favour with the others, as the understanding is that the onus of providing funds lies with the rich nations on account of their historical responsibility.
Sources said that the proposed fund would not be under the UNFCCC but more in the nature of “co-ordinated bilateral efforts.” A senior official from a BASIC country said, “the idea of a ‘fund’ was discussed at the Sunday meeting, and further steps will be taken after the ministers have a chance to consult their respective governments.”
An indication of the shape of this fund was provided by Mr Minca, who said that the effort would be two pronged. “The first technological support and the second, financial support for adaptation by vulnerable countries.”
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