Disband The G-15

There are at least three reasons for this state of affairs. First, since the benefits from growth in world trade have been distributed unevenly across developing countries, the South today is much more heterogeneous than in the 1950s. Therefore, on virtually every issue, there is no one South position. This is true not only of the G-77, but of the G-15 as well. For example, Malaysia will not be very keen to be categorised as a developing country any longer. This lack of homogeneity also characterised the Uruguay Round of negotiations.

Second, when economic groupings have taken off and have had momentum, they have invariably been regional arrangements, aided by the advantages of contiguity. Can you really expect economic co-operation among countries that span five continents? Third, the G-15 summit is essentially one where heads of states and governments meet. Economic and commercial relationships are not determined by what governments do or say. They take place because of business decisions. At best, government decisions like that on Nafta, formalise what has already taken place at the ground level. Thus, much more can be expected from business interactions that occur as a part of such summits.

 

It might be argued that in Harare, the G-15 have arrived at a consensus on areas that should not be brought under the WTO (World Trade Organisation) umbrella, specifically labour and environmental standards, and the proposed multilateral agreement on investment. However, on these issues, a consensus already existed among the developing countries, it didnt need the G-15 to deliver a consensus. Harare has only been a convenient forum from which this consensus could be mouthed. One could equally well have chosen the WTO meeting in Singapore next month.

Why should the country squander resources on such meaningless groupings and periodic summits? The only people who gain are those who get free trips abroad. Nor is there a case for India to project itself as a leader of the South. Given Indias present economic clout, the country will be a leader without any followers. There is only one solution: disband the G-15.