G8 Summit 2009: An Assessment

The latest round of G8 confabulations was recently held in Italy between 8-10 July. This year, in addition to the G8 members, the G5 were invited. This group of five key developing nations comprise China, India, Brazil, Mexico, Egypt and South Africa. The inclusion of these countries testifies to their large growing economies.

This year the meeting issued a number of declarations. It voiced a strong condemnation of North Korea’s May 25 nuclear test, calling it a “flagrant violation” of UN resolutions. The G8 industrialised nations have set a September deadline for Iran to cooperate and accept negotiations on its nuclear issue. French President Nicolas Sarkozy warned Iran of consequences if it defied the deadline. “If there is no progress by then we will have to take decisions,” he said. They also promised $15 billion to boost food security in the world’s poorest countries. The G8 also pledged to work closer with African nations to ensure access to water supply and sanitation. The G8 leaders discussed Africa and the impact of the global recession on the continent. They also approved a $15 billion farming programme aimed at helping poor nations develop domestic agriculture.

One of the most contentious issues was related to the debate around Climate Change. There were discussions that the developed economies should aim to cut their carbon emissions by 80 per cent by 2050. However, G8 officials admitted that the climate change talks did not achieve much due to the absence of China’s President Hu Jintao, who had to leave the meeting midway due to the ethnic conflagration in Xinjiang. In addition to this India also did not confirm to the proposal as this would affect the rate of economic growth. To show some achievement the G8 unveiled the creation of a Global Carbon Capture and Storage Institute which is to be based in Australia. But environmentalists such as Kumi Naidoo from South Africa believe the money would be better spent in renewable sources of energy. “The most optimistic scientists and technologists say if indeed this technology is a success and we don't know with any certainty it will be, the earliest it would be able to deliver a result is 2030 and that is much too late for the planet,” he said.

Nuclear non-proliferation was another prickly and important issue discussed at the summit. In a joint statement on non-proliferation issued at the close of the G8 summit, the participating nations, that include the nuclear club, asked other members of the 45-nation Nuclear Suppliers Group (NSG) to reach a consensus on banning transfer of ENR (enrichment and reprocessing) technology and equipment to countries that are not signatories to the Nuclear Non Proliferation Treaty (NPT). This came as a shock to India. The NSG has given a clean waiver to India though it is still not a signatory to the NPT.

The most positive outcome for India at the summit was that the leaders of G8 and G5 backed calls by Prime Minister Manmohan Singh to give the United Nations a makeover to reflect contemporary realities, especially a reconfiguration of the Security Council. The G8-G5 leaders pledged to advance UN reforms but were silent on bids by countries for a permanent seat in the Security Council.

The developments during the summit indicate a shift in the international structure. Though this was to be a G8 summit, the most prominent issues tagged involved the G5. The resolutions revolved around the developing countries, India and China appeared to be more important participants than the United States. It has become quite apparent that the developed world needs to take into account the issues of the developing countries more seriously. The G8 plus G5 could become a permanent setup in the near future.

It should be taken note of that none of the important declarations were put through without the inputs and support of the G5 countries. The absence of China proved to be an impediment. What this highlights is that the privileged group of G8 is no more a functional reality. It is the developing countries like China and India which are the deciding factors in the international system today.

The world’s biggest economies agreed to conclude a comprehensive trade deal in 2010, in the latest attempt to revive the stalled Doha round and give a shot in the arm to the world economy. G8 members signed a deal with 10 other large economies like India, China and Brazil, that trade talks must resume urgently, with a deadline set for completion in 2010. The US has also demanded better access to agricultural markets, including India, in exchange for cutting farm subsidies. The Summit communiqué, endorsed by the summit, also committed the world’s biggest economies to opposing protectionism and protecting free markets.

The major factor behind this has been the ongoing financial crisis. The developed economies have been badly hit and there has been a realisation that it is the developing countries which can help the world economy navigate the choppy waters of the economic crisis. One has also witnessed that the developed countries like US have tried to do a lot in order to get access to the Indian and Chinese markets, as the local demands have gone down. The positive statements from the G8 countries vis-à-vis India’s entry into the UNSC also stems from this fact. In addition, the fact that China is pushing for a new international currency – replacing the dollar – at a time when it wants to diversify its almost US$2 trillion of reserves, shows the level of change in the international system. Though there are opinions which suggest that this is not feasible and more a political gesture than an economic one it clearly highlights the reduction in the value of the dollar and the increase in the value of the Chinese economy. This financial crisis can prove to be a major catalyst on changing the outline of the international system as was evident during this G8 summit. The G8 today is incapable of taking any decision without the approval of the G5 members. G5 may not be the developed region of the world but it is definitely the region which the G8 requires in order to survive today.

(Disclaimer: The views expressed in this article are those of the author and do not represent the views either of the Editorial Committee or the Centre for Land Warfare Studies).