Canada and Agenda
21Canada and Agenda
21
CHAPTER 2
International Cooperation to Accelerate Sustainable Development in Developing Countries and Related Domestic Policies
-- Sarah Richardson --
Sarah Richardson is the Foreign Policy Advisor at the National Round Table on the Environment and the Economy (NRTEE). The views expressed in this chapter are those of the author who has had input from a number of other stakeholders, and do not necessarily represent the views of the NRTEE, the Government of Canada, or the Projet de société.
THE NATURE OF THE PROBLEM
Agenda 21 acknowledges that the achievement of sustainable development is not going to gather the momentum it needs if developing countries are weighted down by excessive debt, if aid to developing countries is inadequate, if trade barriers restrict access to markets, and if commodity prices and terms of trade in developing countries are depressed. Such was the case throughout the 1980s; these trends need to be reversed. To this end, international cooperation should be designed to complement and support sound domestic economic policies in both developed and developing countries. Because of the global nature of many environmental problems and the increasing economic interdependence of nations, sustainable development can only be achieved through effective international cooperation on many fronts.
In particular, Chapter 2 of Agenda 21 notes that the commodity sector dominates the economies of many developing countries and that during the 1980s the real prices for most commodities declined, resulting in a substantial contraction in commodity export earnings for many countries. For developing countries the ability to mobilize, through international trade, the resources needed to finance investments required for sustainable development, may be impaired by tariff and non-tariff barriers limiting access to export markets. The removal of these distortions in international trade is essential.
As well, Chapter 2 notes that increased investment is critical for developing countries to achieve economic growth, to improve the welfare of their population and to meet basic needs in a sustainable manner. During the 1980s, many developing countries experienced a negative net transfer of financial resources. At that time their financial receipts were exceeded by payments for debt-servicing. The burden of debt-service payments on some developing countries acts as a constraint on their ability to accelerate growth and eradicate poverty. In some cases the financial drain results in cuts in health care, education and environmental protection. External indebtedness has emerged as a major factor in the economic crisis in many developing countries.
Chapter 2 asserts that an unfavourable external environment makes it very difficult for developing countries to mobilize the domestic resources needed to promote sustainable development and suggests that policy reforms are needed to correct sometimes misdirected public spending, large budget deficits and other macroeconomic imbalances, (of course, large budget deficits are not exclusively related to developing countries). These adjustments include appropriate savings rates, to help generate resources to support the transition to sustainable development.
PROGRAM AREAS AND OBJECTIVES
Chapter 2 outlines a number of activities and processes that will help foster the necessary international cooperation required to achieve sustainable development. According to Chapter 2, the international economy should provide a supportive climate for achieving four key environment and development goals:
1. Promoting sustainable development through trade liberalization.
An open, equitable, secure, non-discriminatory and predictable multilateral trading system, consistent with the goals of sustainable development, should lead to optimal distribution of global production which is beneficial to all trading partners.
Improve market access for developing countries' exports.
2. Making trade and environment mutually supportive.
An open, multilateral trading system allows for more efficient allocation and use of resources, which contributes to an increase in production and incomes and to lessening demands on the environment. This provides additional resources needed both for economic growth and development and for improved environmental protection. This type of trading system, supported by the adoption of sound environmental policies, would have a positive impact on the environment and contribute to sustainable development.
3. Providing adequate financial resources to developing countries and dealing with international debt.
Investment is critical to the ability of developing countries to achieve needed economic growth to improve the welfare and to meet the basic needs of their populations. Sustainable development requires increased investment, for which domestic and external financial resources are needed.
The specific financial requirements for the implementation of the sectoral and cross-sectoral programs in Agenda 21 are described in those sectoral chapters and in Chapter 33 entitled "Financial Resources and Mechanisms".
4. Encouraging macroeconomic policies conducive to environment and development.
Establish economic policy reforms that promote the efficient planning and utilization of resources for sustainable development through sound economic and social policies, in particular by incorporating social and environmental costs in resource pricing.
CANADIAN POSITIONS AT RIO
1. Official Canadian Position
In reference to the four main program areas of Chapter 2, Canada's objectives at UNCED were:
(1) to retain emphasis in favour of a multilateral trading system, market-oriented economic system and trade liberalization while reducing emphasis on market intervention in respect of commodities trade;
(2) to avoid creating new bodies or expanding the mandates of those already in existence regarding the role of GATT as the international body responsible for international trade rules and their relationship to the environment;
(3) to emphasize the role of developing countries in implementing sound policies to encourage domestic savings and promote investment from domestic and foreign investors as the key means of obtaining adequate finance for sustainable development; and,
(4) to encourage economic policies conducive to sustainable development as outlined in PrepCom negotiations.
2. Non-Governmental Organizations
Canadian NGOs were disappointed with Canada's refusal to agree to specific timetables for meeting its official development assistance (ODA) commitment. They also expressed concern that the mere pledging of new monies through existing Bretton Woods institutions, such as the International Monetary Fund and the World Bank, would not solve current environment and development problems. To that end, Canadian NGOs at Rio called for fundamental reform of international economic institutions to ensure that those people most affected by funding decisions are integrally involved in decision-making, and to ensure the redirection of bilateral and multilateral ODA away from environmentally and socially unsustainable activities and projects. As well, the NGOs encouraged the official Canadian Delegation to show support for the "peace dividend" concept.
On the question of debt, Canadian NGOs urged that immediate debt relief be provided through expansion of the "Trinidad Terms" (debt relief terms for lower to middle income countries) to cover the multilateral bank debt.
On the question of trade, Canadian NGOs recommended the following:
the reform of trade agreements to ensure that they create a framework supportive of the internalization of environmental and social costs in the price of traded commodities and in the production and transportation of goods;
the removal of trade barriers in developed countries, particularly those against processed goods from developing countries which are produced on a sustainable basis;
the introduction of trade measures to encourage compliance with multilateral environmental agreements; and,
the removal of subsidies that are ecologically, economically and socially damaging, accompanied by social programs to offset any resulting social costs.
3. Business and Industry
Canadian business and industry provided no specific position on Chapter 2 at UNCED. However, strong support was expressed for the Canadian government position with an emphasis on the trade liberalization objective.
A cornerstone of the view of Canadian business and industry is that free enterprise is a pre-condition for sustainable development. Environmental policy which ignores economic considerations has the potential to distort and disrupt economic conditions nationally and internationally, to aggravate existing conditions of poverty and to delay the effective implementation of the most urgent environmental protection measures.
International business views economic development, international trade and environmental protection as complementary. Economic growth provides the conditions wherein protection of the environment can be best achieved. Business and industry would urge that full attention be given to understanding the scientific and economic aspects of environmental issues, to implementing market-oriented approaches to environmental challenges, and to the economic and trade impacts of international environmental policy.
4.Indigenous
Indigenous Peoples participated in this process by submitting significant statements and contributions of Indigenous peoples declarations at the Prep-Coms, the NGO Conference (Paris), Kari-Oca and UNCED (see below). Among other things, Indigenous groups in Canada have called for funding and development of Indigenous regional and international development institution; the development of an Indigenous Peoples Loan Fund; the establishment of a new partnership between Indigenous Peoples and western governments, NGOs and development agencies;
COMMITMENTS MADE BY CANADIANS
1.Legally-Binding Documents
None.
2.Political Pronouncements
In 1992, in anticipation of UNCED, Prime Minister Brian Mulroney outlined a five-point Agenda for Canada and the world, in order to achieve sustainable development.
The third point in this five point agenda concerned the need for developed countries to assist less developed countries through three main mechanisms: 1) aid 2) trade and 3) debt -- which are the subjects of Chapter 2 of Agenda 21. This 5-point agenda, coupled with announcements made at Rio, led to the following Canadian commitments related to Chapter 2:
1) International Financial Assistance (Aid) -- The Prime Minister committed Canada to seeking early agreement on the purpose, amount, and the rules for providing new and additional funds to the world's poorest countries.
To this end, the Prime Minister committed $25 million to the pilot phase of the Global Environment Facility (GEF), set up to help carry out commitments made at Rio; allocated $1.3 billion to sustainable development over the following five years, to be implemented by the Canadian International Development Agency (CIDA); and committed Canada to increasing the allocation for sustainable development in Overseas Development Assistance (ODA) funding in the future.
The Prime Minister reaffirmed Canada's commitment to achieving the target of providing 0.7% of Canada's annual Gross National Product (GNP) to ODA. He would not support a fixed deadline for achieving the 0.7% target, and noted that current economic realities may preclude the realization of the target by the 1997 date set by the United Nations.
The Prime Minister announced that Canada would provide $2 million to a $10 million program under the United Nations Development Program (UNDP) to help developing countries prepare national sustainable development plans. Canada's annual contribution to the United Nations Environment Program (UNEP) will double over the next five years from $1.1 million to $2.2 million.
The Prime Minister also announced that Canada would allocate $10 million to work with Brazil, Malaysia and Mexico to establish sustainably managed forests along the lines of the model forests concept being developing in Canada. Also, Canada would allocate $16.6 million to the Brazilian Rainforest Pilot Program created under the auspices of the Group of Seven (G-7) industrialized nations.
At Rio, the Prime Minister also announced that Canada has allocated $50 million in humanitarian assistance to the victims of drought in Southern Africa.
2) Trade -- The Prime Minister committed to supporting a round of GATT negotiations in which the environment would be the focal point, once the current Uruguay Round of global trade negotiations is complete. The present Liberal government is also committed to this, although it in not clear that a "green round" must wait until the current Uruguay Round is complete.
3) Debt Relief -- The Prime Minister committed Canada to accelerating measures to relieve the burden of debt owed to the richer countries by the less developed countries so the latter can concentrate on sustainable development. Specifically, the Prime Minister announced in Rio that Canada will convert $145 million of debt held in Latin American countries into investment in environment and sustainable development projects.
3.Alternative NGO Treaties and Kari-Oca
NGO Treaties
At the same time as UNCED, two major international events were also held at Rio: The International Non-Governmental Organization Forum (Global Forum), and the Kari-Oca Conference. At the Global Forum, 3,100 NGOs discussed a number of matters related to environment and development and produced a parallel set of documents: an NGO Earth Charter and 38 Alternative NGO Treaties. Canadian NGOs played a significant role in developing the Treaties and took a lead in coordinating their dissemination. Of these treaties, three addressed the issues discussed in Chapter 2.
Alternative Treaty on Trade and Sustainable Development
In this treaty, NGOs at the Global Forum agreed to work to replace the GATT with an alternative, democratic International Trade Organization (ITO), which would be dedicated to the public interest. The ITO would develop new global rules for "fair" trade in line with the principles of the NGO treaties, including preferential terms for developing countries. It would also regulate currency exchange rates, debt and the role of global institutions like the World Bank and the International Monetary Fund (IMF).
In addition, the NGO Treaty supported alternative models of international trade based on cooperatives of producers and consumers working together to avoid multinational enterprise in commerce between countries of the North and South.
NGO Debt Treaty
This Treaty highlights the term "ecological debt" which the northern countries owe to the Southern peoples. The treaty also asks the signatories to work strategically for the effective cancellation of the debt and for the elimination of the net transfer of resources from the South to the North. Tactically, it calls for a massive reduction of the debt burden, starting with the repudiation of all debts that it terms fraudulent and illegal.
The treaty advocates joint campaigns based on case studies from the regions of Latin America, Africa and Asia. It also advocates the establishment by the international organizations of a system of accounting for planet Earth in order to quantify the cumulative debt of the Northern countries which results from the over-consumption of resources.
Capital Flight and Corruption
Some NGOs contend that half the debt of developing nations rests in the bank accounts and private capital of corrupt Southern authorities which drastically undercuts the ability of those countries to repay the debt. To fight this so-called capital flight and corruption, the NGOs in Rio agreed to work to introduce an international legal system that can act quickly, and an "economic Interpol." Bank transfers must become open, especially in the four countries named in the Treaty as being most responsible for accommodating corrupt authorities: Panama, Cayman Islands, Switzerland and Luxembourg. The NGOs agreed to send letters to "dictators and corrupt public authorities" warning them about the insecurity of depositing funds in these "fiscal paradises".
Kari-Oca
The second alternative forum at Rio was the International Conference on Territory, Environment and Development (the Kari-Oca Conference). The Kari-Oca Conference was held immediately prior to UNCED by and for the world's indigenous peoples. More than 650 indigenous representatives participated in meetings and cultural events during the conference. They developed and adopted a 109-point Indigenous Peoples Earth Charter.
The indigenous people attending the Conference agreed that at local, national and international levels, governments must commit funds to new and existing resources for education and training for indigenous peoples in order to assist them in achieving sustainable development. Particular attention is given to indigenous women, children and youth.
DEFICIENCIES, GAPS AND CONSTRAINTS WITHIN CHAPTER 2
There are points in Chapter 2 that might provoke argument and should be acknowledged. Some examples follow.
Chapter 2 deals largely with trade. Its objectives are based on the fundamental assumption that free trade will promote economic growth which is good for sustainable development. This assertion is contested by some.
In its report Our Common Future, the World Commission on Environment and Development (WCED) spoke of wealth being a precondition for environmental protection; but there may be no guarantees. According to Northern values, a richer country is likely to be more environmentally conscious. However, it is sometimes unclear whether serious roadblocks to sustainable development in some less developed countries stem from governments' inability or unwillingness, to finance basic public services or environmental programs. The assumption that an increase in wealth will cause a corresponding increase in environmental protection leads to questions about the power structures and domestic priorities in other sovereign nations that might not easily be answered.
Beyond this, a general criticism that could be made of this chapter is that too much attention is devoted to further trade liberalization. Many groups, particularly in the environmental field, would have serious concern with this focus. A heavy emphasis on the merits of trade liberalization may be seen as down-playing both its possible negative ramifications and the environmental problems which need attention in conjunction with trade liberalization initiatives. The Chapter does not address any of what some would see to be fundamental trade offs. For example, Chapter 2 suggests promoting free trade while maintaining environmental standards. Many environmentalists would argue that free trade is fundamentally incompatible with environmental protection and that the operation of the free market and the free movement of capital will result inevitably in the lowering of environmental and other social standards.
Chapter 2 does not recognize any ecological limits to economic growth. Again, there might have been mention of this and the suggestion that production and consumption patterns (dealt with in a separate chapter) ought to be examined in any policy that encourages growth.
This chapter does not focus on the role of the private sector which some would argue is the driving force for economic growth and the source of resources to improve environmental quality.
Issues for the future go beyond the environment and embrace the impact of free trade between developed and less developed nations on quality of life and issues os social justice, notably regional, generations and gender equity, and even individual and collective identity.
COMPARISON BETWEEN CURRENT CANADIAN GOVERNMENT POLICY AND COMMITMENTS MADE
The Canadian Government laid out its environmental policy for the 1990s and articulated its support for the developing world in the 1991 Green Plan. Among the broad policy objectives in the Plan, the government committed itself to pursuing global solutions to global environmental problems. The Canadian government committed itself to helping developing countries achieve sustainable development by, among other things, increasing efforts aimed at helping them gain access to the latest skills and technology.
More recently, as a member of the G-7 industrialized nations meeting in July 1993 in Tokyo, Canada committed itself to pursuing, toward developing countries, "...a comprehensive approach, covering not only aid but also trade, investment and debt strategy, and a differentiated approach, tailored to the needs and performances of each country at its particular stage of development and taking environmental aspects into account."
Trade
A fundamental theme at UNCED, one of the principles underlying Canada's Green Plan, the general principle adopted in Chapter 2, and the position that the Canadian government and business subscribes to is that liberalized trade promotes sustainable development. It is the government's view that trade leads to economic growth which provides the resources for environmental protection, while a healthy environment provides the ecological and natural resources necessary to underpin long run economic growth stimulated by trade. Given this, the Canadian government can, through its pursuit of trade liberalizing deals, argue that promoting sustainable development and implementing the fundamental tenet of Chapter 2.
This commitment was reiterated most recently at the July 1993 G-7 Summit in Tokyo. In the Economic Communiqu‚, the leaders of the G-7 nations noted that maintaining and expanding the multilateral trading system is essential for world growth: "We are determined to curb protectionism in all its manifestations and agree that no recourse should be made to initiatives and arrangements that threaten to undermine the multilateral open trading system."
Since UNCED, the Canadian government has successfully negotiated a regional free trade agreement that extends the Canada-U.S. free trade area to Mexico and creates a North American Free Trade Agreement (NAFTA).
At the multilateral level, as of November 1993 the Uruguay Round has still not yet been completed. At the G-7 Summit in Tokyo, the leaders of the G-7 nations announced that their highest priority was a successful completion of the Uruguay Round and renewed their determination to complete the Round by the end of 1993. This is now a priority of the newly-elected Liberal government.
Former Prime Minister Brian Mulroney had committed Canada to a "...further round of negotiations in which environment will be a focal point," once the current, Uruguay Round is complete.
However, it is not yet clear when this next Round will begin. Seven years elapsed between the end of the Tokyo Round of GATT negotiations in 1979 and the start of the next Round in Uruguay in 1986. Given the urgency of the transition to sustainable development, and the important role for international trade, it is critical (assuming the Uruguay Round ends in 1993 or 1994) that the international community not wait until the next century to begin what will be the next round. The new Liberal government has expressed support for "..a "green" round of GATT negotiations, in which trade and environment will be linked," but it is unclear whether this is contingent upon the completion of the Uruguay Round.
In November, 1993, the Canadian government participated in a Summit of the Asia-Pacific Economic Cooperation Forum (APEC), a new institution created to govern economic relations among its 16 members. The November summit was aimed at trade liberalization.
From the perspective of ensuring that the environment and trade are mutually supporting, the Canadian government has worked with its partners in North America and internationally to promote the integration of trade and environment policies. The NAFTA represents the first trade agreement that has incorporated any environmental considerations. For example, each party to the agreement has the right to establish the level of protection it considers appropriate, parties agree that it is inappropriate to encourage investment through the relaxation of domestic measures, and obligations under specifically listed international environmental agreements are not affected by NAFTA.
The environmental provisions of NAFTA notwithstanding, a separate "side deal" on the environment has been concluded between the three parties to the agreement. The North American Agreement on Environmental Cooperation (NAAEC), signed in August 1993, establishes a Commission on Environmental Cooperation that will inter alia foster and improve the environment in North America and monitor the environmental effects of NAFTA. During the negotiations of the NAAEC, the Canadian government consulted with a group of stakeholders from the environmental community as well as the business community. The Agreement is designed to establish a sound environmental foundation on which to build more liberal trading relations.
At the multilateral level, Canada has worked actively through other organizations such as the OECD and the GATT to promote the integration of trade and environment.
In the fall of 1991, the OECD created a group made up of experts on trade and experts on the environment. This group met regularly throughout 1992 and 1993. This group was given the mandate to develop guidelines to increase the mutual sensitivity of environmental and trade policies. In June 1993, the OECD Council at the Ministerial Level endorsed Guidelines for Improving the Mutual Supportiveness of Trade and Environmental Policies and Agreements developed by the OECD's Joint Session of Trade and Environment Experts. These guidelines represent the first stage of the experts' work, developed to improve policy integration.
The Canadian government believes that the application of the procedural guidelines will make a significant contribution to the improved mutual supportiveness of trade and environment. In addition, the Joint Experts have undertaken an ambitious work program to analyze the specific issues that can give rise to trade-environment conflicts, and to develop tools for dealing with them.
In the GATT, Canada plays an active role in the Working Group on Environmental Measures and Trade. In this context, mutual supportiveness is being pursued through an analysis of the relationship of GATT rules to trade measures in international environmental agreements, the transparency of environmental measures, and the trade effects of packaging and labelling programs.
Canada has also supported the work that has begun on the trade/environment linkages in the United Nations Conference on Trade and Development.
Aid and Debt
Canada's most recent commitment to developing countries was made in the G-7 Communiqu‚ (July 1993, Tokyo). The G-7 nations supported the succession to or the renewal of the IMF's Enhanced Structural Adjustment Facility; Canada supported the International Conference on African Development in October 1993; confirmed the validity of the international debt strategy; invited the Paris Club to continue reviewing the question of debt relief for the poorest highly indebted countries, especially with regard to early reductions in the stock of debt on a case-by-case basis; and announced that it would make all efforts to enhance development assistance, in particular to the poorest countries.
At UNCED and in preparatory discussions, the Canadian government articulated its support for both the Global Environmental Facility (GEF) and the Multilateral Fund set up in conjunction with the Montreal Protocol as adequate funding mechanisms for the global promotion of sustainable development.
The GEF is the multilateral funding mechanism of choice for addressing global environmental problems. It was established in November 1990 and implemented jointly by the World Bank, United Nations Environment Program (UNEP) and the United Nations Development Program (UNDP). The GEF will end its pilot phase in 1993. In addition to climate change and biodiversity, the subjects of the conventions signed at Rio, the GEF concerns itself with the global environmental issues of stratospheric ozone and international waters. Canada contributed $25 million to the pilot phase of the GEF and thereby fulfilled the Prime Minister's commitment announced at Rio.
Negotiations are currently underway to restructure and replenish the Facility. The objective is to have all relevant parties (i.e., the parties to the conventions, developed and developing countries and the NGO community) accept the GEF as the permanent funding mechanism for global environmental conventions. Replenishment for the GEF is set for early December, 1993, at which time Canada and all other donor nations will be expected to finalize their financial commitments.
At the second meeting of the parties to the Montreal Protocol in London in June 1990, developed countries agreed to establish the US$240 million Montreal Protocol Multilateral Fund to assist developing countries in meeting the targets set out in the amended Montreal Protocol. The fund is designed to help identify and assess the scientific and technical requirements of developing nations, to facilitate technical assistance and technology transfer, and to provide training and information. Canada will have contributed up to $15 million to the fund between 1990 and 1993. In 1992 Canada contributed over US $2 million to the Multilateral Fund.
Negotiations are presently under way to determine a satisfactory replenishment level for the next three years phase of the Fund. The deadline for replenishment was the middle of November, 1993.
Canadian Government Green Plan funds are presently being used to help support both the GEF and the Montreal Protocol Fund, as well as Canada's contribution to UNEP. Canada currently contributes $2 million per year to UNEP's Environment Fund. This is up from $1.1 million in 1992. In addition, Green Plan funds are used in support of specific bilateral activities such as the $10 million Model Forest Program that Canada is implementing with Brazil, Mexico and Malaysia, as announced by the Prime Minister at Rio.
Canada's support for UNCED follow-up initiatives incudes $2 million for "Capacity 21", a UNDP initiative to assist developing countries in sustainability planning. Canada is also providing $380,000 for participation by developing countries and NGOs in key international negotiations following up on UNCED, including the High Seas Fisheries Conference, the first session of the United Nations Commission on Sustainable Development (CSD) and negotiations on a convention to combat desertification.
Agenda 21 confirms the commitment of developed countries to ODA to support sustainable development in developing countries. Through CIDA, Canada has established sustainable development as a priority for international aid. CIDA has developed a policy for environmental sustainability which reinforces the long-term perspective in sustainable development cooperation and encourages grassroots participation in sustainable development planning.
For some years, Canada has committed itself to providing 0.7% of its annual GNP to ODA. The Prime Minister reaffirmed Canada's commitment to achieving this target at Rio. In 1991-92, however, Canada committed only 0.49% of its GNP to ODA. During the recent election campaign, Prime Minister Kim Campbell effectively repudiated the 0.7% target.
There is nothing in the program of the newly elected Liberal government that suggests that ODA will in fact be a priority over the coming years or to indicate that it supports the 0.7% target by the year 1997. Moreover, the Canadian International Development Agency (CIDA) has had its budget cut twice since UNCED, once in December 1992, and again in 1993.
However, Canada also continues to provide aid to developing countries for local initiatives through multilateral lending institutions. The most important of these is the World Bank. Canada has committed $829 million to the replenishment of the International Development Association (IDA) which was concluded in 1993. At UNCED, Canada announced that it will join other major donor countries in providing funds to promote environmental and developmental objectives in the world's poorest countries. During the negotiations for replenishment, Canada strongly advocated the integration of sustainable development throughout IDA's project and program portfolio.
In March 1992, the Canadian government announced the intensification of bilateral environmental cooperation with Mexico, based on a 1991 Memorandum of Understanding between the two countries. Canada and Mexico reached agreement on a series of cooperation projects valued at $1 million to reinforce environmental monitoring in Mexico. In the agreement, there is provision for a formal mechanisms for the continuing development of additional bilateral initiatives in the coming years.
From the perspective of debt, at the Earth Summit, Canada proposed a new initiative to convert as much as $145 million of ODA debt held by 10 Latin American countries into local currency funds to help finance environmental and other sustainable development projects. For those countries wishing to take advantage of this proposal, debt conversions will be negotiated and implemented on a case-by-case basis. They will be subject to specific conditions, and related to the promotion of human rights and democratic conditions as well as to larger economic and financial considerations.
Since Rio, CIDA, the agency responsible for this initiative, has negotiated and signed debt conversion agreements with El Salvador, Honduras, Nicaragua and Colombia, involving the conversion of some $80 million of outstanding ODA debt.
Since 1988 Canada, as a member of the Paris Club of official creditors and the G-7, has approved various terms of debt rescheduling and reduction for lower-income countries. For example, in September 1992, Canada and other develop countries agreed that additional resource flows to sub-Saharan Africa must be substantially larger and on highly concessionary terms. Earlier Canadian ODA debt initiatives for this region and for other regions including the Least Developed Countries and Commonwealth Caribbean countries has resulted in the forgiving of $1.1 billion in development-assistance loans owed to Canada.
CIDA is currently supporting the "Debt for Development Initiative" set up by the Canadian NGO, Mennonite Economic Development Associates (MEDA) to promote the debt-for-development conversion mechanisms among the Canadian NGO community.
Encouraging Macroeconomic Policies Conducive to Environment and Development
Within the context of the G-7 and the Interim Committee of the IMF, Canada has supported international economic conditions characterized by monetary and fiscal stability.
In July 1993, the G-7 countries made a commitment to provide funds to establish a $300 million Small-and Medium- Sized Enterprise Fund in close cooperation with the European Bank for Reconstruction and Development (EBRD). The G-7 leaders also agreed to create a Special Privatization and Restructuring Program, in cooperation with international financial institutions, consisting of enterprise restructuring support and technical assistance focusing on an initial period from July 1993 to the end of 1994. In total this program is expected to mobilize $3 billion of G-7 funds. Further, the G-7 leaders encouraged their private sectors to assist in this process, sharing with their Russian counterparts methods and techniques to increase productivity. To this end, the leaders agreed to establish a Support Implementation Group in Moscow to facilitate implementation of their support to Russia.
Through bilateral assistance programs, Canada has helped several developing countries, including China, to develop national environmental plans consistent with sound economic policies.
Canada has pressed international organizations to better reflect sustainable development considerations in their operations. Canada has urged the IMF to factor environmental consideration into the design of its macroeconomic programs. Canada has used the replenishment negotiations and annual meetings of the multilateral development banks to persuade those institutions to better integrate environmental and social factors into their analysis and operations.
Canada is one of the contributors to a study being undertaken by the World Wildlife Fund on the links between economic reforms and the environment. The study aims to determine to what extent economic adjustment both promotes and has the potential to harm the environment and to seek win-win approaches to the environment and development. This work will provide input to economic development policies guiding Canada's provision of aid to developing countries.
CANADIAN ACTIVITIES EVOLVING THROUGH THE SUSTAINABILITY PROCESS
In addition to the initiatives of the Canadian government described above, various other groups and organizations in Canada are also working on issues which bear on the commitments made in Chapter 2 of Agenda 21. Some examples of these initiatives follow.
Business Council on National Issues (BCNI)
The BCNI is a senior voice of Canadian business leaders on public policy issues in Canada and abroad. It recently produced a Research Bulletin entitled, "International Trade: The Environmental Dimension".
Canadian Council of Ministers of the Environment (CCME)
The CCME is the major intergovernmental forum in Canada for discussion and joint action on environmental issues of national, international and global concern. Through the Secretariat, the CCME recently contracted the Centre for Trade Policy and Law, and the Institute for Research on Public Policy IRPP) to complete a paper entitled "Trade, Competitiveness and the Environment", which was released in July 1993.
Canadian Environmental Network, International Affairs Caucus(IAC)
In July 1993, the IAC of the CEN were the co-sponsors of a workshop on Sustainability and Trade, along with the Rawson Academy, the Sierra Club of Canada, the NRTEE and the Mining Association of Canada, which attempted to bring a variety of stakeholders around the table in order to exchange views on the relationships between trade and sustainability.
Centre for Trade Policy and Law (CTPL)
The CTPL at Carleton University in Ottawa, is actively engaged in research and dialogue on reconciling trade-environment issues, and the promotion of sustainable development through trade liberalization. The Centre organized an international conference on Trade and Sustainable Development in 1992. In addition, the CTPL conducted a study on Canada's eco-labelling program, Environmental Choice, and its impact on developing country trade. As part of its ongoing research activities on NAFTA and sustainable development the Centre prepared a report on the environmental initiatives of Canadian business and their contribution to environmental protection efforts in Mexico.
The Conference Board of Canada
The Business and the Environment Research Program of the Conference Board of Canada is conducting research that bears on many issues raised by Chapter 2. For example, it has produced studies on the impact on environmental measures on the international competitiveness of some industrial sectors of the Canadian economy. That work has been supported by various federal departments and industry associations. It is presently undertaking a similar study of the non-ferrous metals industry in Canada and is working with APEC on projects related to environmental management in Pacific-Rim countries.
The Canadian Environmental Law Association (CELA)
CELA focuses its research on the environmental impacts of regional and multilateral trading agreements. It recently published a report prepared for the Ontario Ministry of Environment and Energy entitled "The Environmental Implications of Trade Agreements".
International Development Research Centre (IDRC)
The IDRC does a great deal of work on issues of international cooperation, aid, debt and trade.
International Institute for Sustainable Development (IISD)
Canada's IISD promotes sustainable development in decision-making at all levels and within and between sectors. As part of its international trade program, the IISD has brought together experts from countries at varying levels of development in a Working Group. This Group has begun to develop Principles on Trade and Sustainable Development which are designed to break new common ground between what have been divergent policy fields. These principles could also serve as a standard by which present and future trading arrangements could be judged. In January 1993, the IISD published Trade and Sustainable Development: A Survey of the Issues and a New Research Agenda.
The IISD has also initiated a project on Investment and Sustainable Development. This project will address the impact of sustainable development on the financial services industry in Canada and internationally. The purpose of the program is to accelerate the integration of the principles of sustainable development into the operations of the financial services industry.
The Mining Association of Canada (MAC)
The MAC is one of a number of organizations which have contracted the Conference Board of Canada to undertake a study on the impact of environmental measures on the international competitiveness of the non-ferrous metals industry in Canada. MAC, along with the NRTEE, Sierra Club, and the Rawson Academy also supported a workshop in July 1992 which brought together NGOs and the business community in order to discuss some areas where trade and environment appear to be most divergent. This project is ongoing and a report will be released in early 1994 which will attempt to identify the most critical issues for future study.
National Round Table on the Environment and the Economy (NRTEE)
The NRTEE is an advisory body to the Prime Minister of Canada on issues of sustainable development. It is also mandated to act as a catalyst in Canadian society to promote sustainable development. The NRTEE has established a Task Force on Trade and Sustainability which has provided advice to the Prime Minister of Canada on the environmental dimensions of trade agreements and international institutions in which Canada is a member. In 1993, the NRTEE provided such advice on the environmental side agreement to the NAFTA. The NRTEE is currently examining the trade and environment linkages that might be made in the Asia-Pacific Economic Cooperation forum (APEC), with the aim of developing advice in early 1994. This is extremely important for sustainable development given the fact that the APEC contains the fastest growing economies in the world which often pay little attention to the environment. The NRTEE has also published a number of reports, and a book on the aspects of the trade-environment relationship.
North-South Institute
The North-South Institute in Ottawa conducts and publishes policy-relevant research on relations between industrialized and developing countries. Major program areas include international finance, trade and adjustment, and development assistance.
University of Western Ontario Centre for the Study of International Economic Relations
Located in London, Ontario, the Centre conducts studies on international trade and economic development including the development of global general equilibrium models. Researchers with the Centre are in the process of preparing a major analytical paper on trade and the environment.
The Westminster Institute for Ethics and Human Values
The Westminster Institute is a private, non-profit corporation devoted to the study and analysis of ethical issues of contemporary social concern. Located in London, Ontario, the Institute organized a symposium in February 1993 on Growth, Trade and Environmental Values which addressed complex ethical and political questions on the relationship between trade ad environment. The proceedings of this symposium will be published in early 1994.
OTHER RELEVANT INTERNATIONAL SUSTAINABILITY-RELATED FORA
Various international organizations have projects underway that bear on the subject matter of Chapter 2. However, a number of these organizations do not have as their primary aim, the promotion of sustainable development. Because of specific work programs, they are included in the list that follows even though they cannot be characterized properly as "sustainability-related fora".
Business Council for Sustainable Development (BCSD)
The BCSD is a global group of 48 CEOs from major corporations formed to provide a business perspective on sustainable development issues during the UNCED process.
Canadian Council for International Business (CCIB)
The CCIB is the official National Committee for Canada of the International Chamber of Commerce and the Business and Industry Advisory Committee to the OECD. It provides a unique channel for Canadian business to major world economic and intergovernmental organizations such as the UN, the OECD, the World Bank and the GATT. It represents its members interests in these fora on issues that include promoting trade agreements, including the Uruguay Round, as a catalyst for further trade liberalization.
The Centre for our Common Future (CCF)
The CCF was initiated as a focal point for follow-up activities on Our Common Future, the report of the World Commission on Environment and Development
General Agreement on Tariffs and Trade (GATT)
GATT is a multilateral treaty established in 1947 to regulate multinational trade practices. The GATT's Working Group on Environmental Measures and International Trade is charged with analysing the impacts of environmental regulations on trade flows.
International Chamber of Commerce (ICC)
ICC is a non-governmental organization serving world business. It works to promote world trade and investment based on free competition, to harmonize trade practices and provide practical services to business.
National Wildlife Federation (NWF)
The NWF in Washington D.C., works to educate individuals and organizations, to conserve natural resources, protect the environment and to build a globally sustainable future. It has a large International Affairs Division which works closely with NGOs in other countries involved in trade issues. As part of its program on Trade and Environment, it conducts on-going research and analysis of trade and environment policy issues with an emphasis on promoting sustainable development.
Natural Resources Defence Council (NRDC)
Located in Washington D.C., the NRDC focuses on U.S. foreign policy issues such as international development assistance, and the multilateral development banks. It also works with trade representatives on U.S. participation in NAFTA and the environmental provisions of the GATT.
Organization for Economic Cooperation and Development (OECD)
The OECD is made up of 24 industrialized nations and explores economic policy issues common to its members. In 1992, exploring the linkages between trade and the environment became a priority issue in the OECD work programme. A draft set of guidelines designed to avoid conflicts between the objectives of trade and environmental policies should be ready for approval by ministers by 1994.
United Nations Commission for Sustainable Development (CSD)
AT UNCED it was recommended that a new high-level Commission for Sustainable Development be created. The CSD will monitor the progress and problems of governments and UN agencies in implementing the decisions of Agenda 21 and draw attention to urgent new and emerging issues in sustainable development.
United Nations Conference on Trade and Development (UNCTAD)
UNCTAD has undertaken a major project: "Reconciliation of Environmental and Trade Policies" which focuses primarily on issues relevant to developing countries. It is also in the process of developing a PC-usable database for LDC governments and exporters, encompassing all relevant trade regulations in their various export markets.
United Nations Development Program (UNDP)
UNDP is an organization of the United Nations linked to the General Assembly and to the UN Economic and Social Council (ECOSOC). UNDP assists developing countries in promoting human development and developing the capacity to manage their economies.
United Nations Environment Program (UNEP)
UNEP coordinates and stimulates environmental action within the UN system.
The World Bank
The World Bank (IBRD) may be the world's largest producer of research on international finance and development. In its role as a lender it provides low-interest loans for infrastructure and development projects in developing countries. These are often contingent on economic reforms similar to the IMF's structural adjustment programs. The World Bank oversees the Global Environment Facility (GEF).
World Industry Council on the Environment (WICE)
WICE aims to be the voice of world business and sustainable development. It was created in February 1993 and currently includes in its membership CEOs from 90 companies. In October 1993, WICE issued its "Paris Declaration" which clearly outlines business principles on sustainable development, including trade.
World Wide Fund for Nature (WWF)
Located in Gland, Switzerland, the World Wide Fund for Nature has produced several pieces on the sustainable development implications of the GATT and has proposed changes to the rules of international trade.
