D-8 should forge strong bonds

The 6th summit of D-8, the group of 8 Islamic developing nations, concluded its annual summit in at Hotel Hilton Kuala Lumpur, Malaysia on July 08. The leaders of D8 comprising Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey join a growing consensus that biofuel production has contributed more to soaring food prices than was thought to be the case until a few months ago. All D8 members are also the prominent members of the Organisaton of the Islamic Conference. biofuels had contributed to rising food prices.

D-8 called for curtailing biofuels to enhance food price stability. Unlike the all-powerful G8, the D-8 is a modest union of 8 developing Islamic nations. From its very beginning since 1997, the organization has been focusing on increasing trade and economic cooperation among the member states, and in fact it was the area that provided these countries with an excuse to establish this organization, ostensibly on the initiative of Turkey. Ever since, D-8 leaders meet after every two years to review performance of the past two years.

The summit began with the host Malaysian Prime Minister delivering the inaugural speech. Outgoing D-8 Chairman and Indonesian President Susilo Bambang Yudhoyono and D-8 Secretary General Dipo Alam also made their statements at the outset of the meet.

Malaysia and Indonesia  in cnetre stage

The D8 forum ensorsed the view that the world should halt the development of biofuel crops on arable land and instead boost agricultural production to solve the global food crisis and prevent "disaster", the Malaysian and Indonesian leaders warned at the opening of a developing countries summit.

Abdullah Badawi, the Malaysian prime minister and host, said the use of arable land for biofuels "should be stopped because such action will deepen the global food scarcity and further drive up food prices". "We must not allow the zeal for energy security to come into direct conflict with the basic need for food production," he told the Developing Eight summit in Kuala Lumpur. Badawi also took aim at the oil futures market, suggesting the international community "examine how it might be organised to assist in stabilising oil prices." He said the summit should send a united message on how to confront the oil and food price crises. Analysts believe the D8 will struggle to reach consensus on what to do about high oil prices because it comprises both significant oil producers and consumers.

Bambang Yudhoyono, the Indonesian president, blamed "some developed countries" for exacerbating the food crisis by allowing biofuel development on arable land. "The idea is to reduce greenhouse gases and to wean themselves away from dependence on fossil fuels," he said in his speech. "It is not a good idea: it has only worsened the global food crisis." He called for joint acction by the D8 nations. To delay concerted action on this great challenge of the time, according to him,  is to court disaster. Both Badawi and Yudhoyono stressed the need to find ways to boost agricultural production. Neither, however, mentioned whether they would halt, let alone reverse, their planned expansions of oil palm plantations.

Indonesia and Malaysia are, respectively, the world's largest and second largest producers of palm oil, which is becoming increasingly popular as a biofuel.Badawi also took aim at the oil futures market, suggesting the international community "examine how it might be organised to assist in stabilising oil prices."He said the summit should send a united message on how to confront the oil and food price crises. Analysts believe the D8 will struggle to reach consensus on what to do about high oil prices because it comprises both significant oil producers and consumers.

Issues

The issue of biofuel harming food security in the world, especially in Trid word and sky-rocketing of food prices. In addition to the oil and food prices the developing countries, especially the Muslim states, are also facing another big challenge, which is in the form of lack of trade among them. There is a huge trade deficit between them and there is an urgent need to decrease it and has resulted in the backwardness of the Muslim countries.

The most urgent need for the Muslim developing countries is that they should put more stress on science and technology along with the health sector. These countries make plans for the development of these fields but they are never implemented. The need of the hour is that the developing Muslim countries should take practical steps for the development of science and technology, health and other related fields if they want to prosper as developed nations.

They are still facing a number of economic challenges. On the other hand, if the EU and the US, which constitute over half the world's exports and imports of manufactures get only the semi-processed raw materials from the developing countries, the prospect of industrial progress for these developing countries would be very bleak.

Trade deficit has remained the main bottle neck in the growth and development in

these countries.

Focus

The theme of this year's summit is 'Meeting global challenges through innovative cooperation.' The foreign ministers of the 6th summit of D-8 sanctioned a 10-year developmental roadmap, introduced by Malaysian Foreign Minister Datuk Seri Dr Rais Yatim, ahead of the leaders' summit, for economic collaborations among member states. Yatim's two-phased roadmap envisaged increased intra-trade from the current five percent to between 15 and 20 percent by 2018. Yatim said that currently, intra-trade between member states is only five percent of the total D-8 global trade, but by the end of 2018, D-8 wants intra-trade to grow to 15 percent to 20 percent of the total D-8 trade. The roadmap with its focus on a desired boost to trade will also provide the framework for enhancing cooperation, the guide and formula to implement D-8 programs and projects, assist in mobilizing resources from governmental and non-governmental sectors.

The roadmap from 2008-2013, the main thrust, will focus on D-8 Preferential Trade Agreement (PTA) and Rules of Origin (RoO), customs and visa, industrial and business cooperation. The second phase, between 2013-2018, is to achieve intra-trade target of $ 517.5 billion or between 15 percent and 20 percent of D-8 global trade. The roadmap, among others, also spells out trade facilitations, customs cooperation, capacity building, migrant workers, small and medium-scale enterprises and information and communications technology. The roadmap will also provide the framework for enhancing cooperation, the guideline and formula to implement D-8 programs and projects, assist in mobilizing resources from governmental and non-governmental sectors.

Malaysia's central bank governor Zeti Akhtar Aziz said the D8 nations were now on track to achieve their goal of boosting their intra-grouping trade by 10 to 15 percent by 2018. "It is a guideline for a vision and framework for enhancing cooperation. It covers sectors from investment, agriculture, energy, tourism, transportation, banking and finance," the pact said, according to a Malaysian official. "It will also broaden support for the D-8 community, the private sector and the grouping's economic cooperation initiatives," he told reporters on the sidelines of the 11th session of the D-8 council-of-ministers meeting held on the occasion of the forum's summit.

The foreign ministers also endorsed a permanent secretariat for the D-8 following a consensus among member states for an annual contribution. The secretariat will be headed by the D-8 secretary general. There is nevertheless a wider consensus among the member states to retain the secretariat in Ankara, keeping in view the logistic support extended to it by the Turkish government. Anyway, the Malaysia moot did not take any decision regarding creation of post of a permanent secretary general and chose to defer the matter to the next meeting to be held in 2010.

Prime Minister of Malaysia Abdullah Ahmad Badawi, Indonesian President Susilo Bambang Yudhoyono, Iranian President Mahmoud Ahmadinejad and Pakistani Prime Minister Syed Yousof Raja Gilani represented their countries. Egypt, Nigeria and Turkey were represented at ministerial level. Each presented  their countries perspectives on the subject matter.

Bangladesh has ratified the D-8 Visa Agreement, which would facilitate business travels to Bangladesh from other member-countries.  Bangladesh Chief Adviser Fakhruddin Ahmed mooted a five-point recommendation for effective cooperation among the D-8 member-states in areas of energy, food, trade, climate change and migration as the forum leaders met to update their agenda suiting the present context.  He stressed the need for working collectively in ensuring energy security in eight biggest Muslim countries that grouped into the D-8 and proposed to establish financing mechanisms to ensure a steady supply of affordable energy and focus on renewable energy as he said energy security is a must to realize the development potential the member-nations hold. On the sweeping global food crisis-much of it blamed on brouhaha on the energy front-- Ahmed called for creating a D-8 Food Fund to enhance collective food security. He noted that an unprecedented price-hike of food-grains is disproportionately affecting the poor in many countries. "We need to develop mechanisms, not only to address short-term supply-side shocks but also strengthen cooperation to increase agriculture productivity. This is a must to prevent hunger and malnutrition," he told mentioning that it is a key priority of the UN-designated Millennium Development Goals (MDGs). Dr Ahmed expressed the confidence that full implementation of the Preferential Trade Agreement provisions would significantly boost the trade volume. He stressed operationalisation of the customs agreement and implementing agreements on simplifications of visa procedures for businessmen and MoU on Air Services Cooperation.

Dr Ahmed said his caretaker government is now at the final stage of political reforms to make democracy meaningful for the people. Significant measures are taken by the present caretaker government to eradicate corruption, promote the rights of the people, establish the rule of law, and make the government, especially the judiciary, effective and accountable. Dr Ahmed further informed the D-8 leaders that his government opened dialogue with political parties to forge a national consensus for good governance. "Bangladesh's experience, we believe, can serve as an example for many developing countries facing the challenges of democracy and governance," he said.

Ahmed said his government has already taken various steps to make Bangladeshi workforce skilled and conversant with the tricks of the trade. "Malaysian technical know-how and capital and Bangladeshi labor could make effective combination for a win-win situation for the two countries," the head of caretaker government said.

He proposed taking concrete steps and going beyond the agreed visa regime to facilitate the movement of natural persons among the D-8 member-countries: Bangladesh, Indonesia, Iran, Pakistan, Malaysia, Turkey, Nigeria and Egypt.

Meanwhile, Malaysian Prime Minister Abdullah Ahmad Badawi has appreciated the good working experience of Bangladeshi workforce, getting higher wages, but emphasized that they should be more respectful to the rules and regulations of the land. Badawi remarked that Bangladesh is comparatively peaceful than India and Pakistan in these times of disquiet.

Later, an agreement on simplification of visa procedures for D-8 businessmen was signed by Malaysia.

The Communiqué

The declaration recognized intra-regional mobility of labor as an effective tool for poverty eradication and development. It was also agreed that members would jointly harness the potential of Islamic banking and finance. The trade agreement, to run from 2008 to 2018, details economic and business activities that member nations will pursue over the next decade.

The D-8 eight Muslim countries decided to embark on joint ventures to boost food production and endorsed a 10-year blueprint to expand trade cooperation. In a joint statement, the D-8 summit warned that the shortage and rising prices of food posed a serious threat to socio-economic stability. The summit agreed to take coordinated position in international forums and enhance regional cooperation to promote interests of developing Muslim nations.

On the critical issue of Climate Change, D-8 members should cooperate in regional and multilateral forums to uphold the sacrosanct principle of 'common but differentiated responsibility'.

 A Word

D8 has resolved to devote more attention towards amelioration of the deprived segments of each society of member-states. The Organization is handicapped by an increasing level of instability and volatile situation in most of the D-8 member countries. They accepted a Bangladesh proposal to consider creation of a D-8 Food Fund. On surging oil prices, the declaration expressed commitment to efforts in the energy sector and acknowledged the importance of collaborative efforts to enhance capacity, transfer of technology, exploration of new sources of supply, development of alternative fuels, including renewable sources, as well as peaceful use of nuclear energy.

Leaders from the D-8 group of developing nations adopted an ambitious 10-year roadmap to increase substantially intra-trade between their countries, an official said.The summit approved a roadmap to strengthen cooperation between D8 members, particularly on intra-member trade. The aim is to boost this from the current figure of $60bn to $517.5bn within a decade.

The D-8 summit was held at a time when there was a meeting of the group of eight economic powers, including the US, Britain, Japan, France, Germany, Canada, Russia and Italy. Although there is a difference between these two groups "“ one is an alliance of developing countries and the other group comprises the world's most developed countries, both groups expressed their serious concern over the rising oil and food prices, affecting all the nations. The developed and the developing countries admitted that the oil and food prices pose a serious challenge to all countries.

The foreign ministers also endorsed a permanent secretariat for the D-8 following a consensus among member-states for an annual contribution. The foreign ministers of the Eight Developing Islamic Countries (D-8) approved the 10-year roadmap for economic collaboration among the member-states, with its focus on a desired boost to trade. This infrastructural facility and would definitely enhance the trade processes of D-8.

The entire world has assumed the status of a global village and they are inter-dependent on each other in one form or the other. In this connection the situation in the Muslim countries is very bleak as they are divided on almost every international issue. This global anomaly needs urgent correction.

Britain hinted it might reassess its biofuel targets after a review by a former Environment Agency chief indicated that while there is probably enough land to meet agricultural needs until 2020.

The D-8 should also take a common position on liberalization of Mode 1V services to ease the movement of labor to the developed countries. By emulating EU policies, D8 can surely bring progress and prosperity to the people of this region. Among the D-8 countries, Iran and to some extent Egypt possesses oil reserves and can help other members, both these countries should be considerate, and not to be reluctant on one pretext or another, to share it with others. D8 should address the areas that make the member-states unable to move forward and undertake corrective measures in order to perform well in the fields of trade and economy. But D-6 should not get into the trap of the G-8 in privatizing the tire economy.

If the eight Muslim states of the D-8 "“ Indonesia, Malaysia, Bangladesh, Pakistan, Iran, Turkey, Egypt and Nigeria "“ decide to boost their trade relations among them, it will definitely result in forming a strong bloc and help improve the economic and social conditions of their people. 

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