Minister Vilén: Challenges of globalisation must be met by intensifying external relations policies of the EU

Trade policies fall under the auspices of the commission in the EU, but the bulk of developing aid by the member states runs through national budgets. This is one reason why the trade and developing cooperation policies of the EU and its member states seem conflicting from time to time. “The member states of the EU donate more than half of all development aid worldwide. Logical and systematic action in development cooperation would enhance the efficiency of the aid”, said Finnish Foreign Trade Minister Jari Vilén who chaired a panel discussion on global governance at the Helsinki conference on Tuesday at the House of the Estates.

The EU should seek a common policy concerning problems in development cooperation. The EU convention and the following inter-governmental conference will discuss, among others, the development of the Common Foreign and Security Policy. For the reforms to work towards meeting the challenges of globalisation, the EU must increase its inputs in creating a coordinated common development cooperation policy.

The World Trade Organisation, WTO, has a central role in the governance of globalisation as the maker of important common trade rules. Without the multilateral system of trade policy agreements the market would be a wild west, making it even more difficult for the weak to protect their interests than it is now. Instead of opposing the WTO, says Minister Vilén, global governance should focus on a constant renewal of the organisation and on the development of trade capacity and WTO expertise of the developing countries.

The absence of representatives from developing countries in Geneva as well as the meagre capacities of the third world missions there is an increasing problem and has been acknowledged at the WTO. Developing countries urgently need a focused and readily-analysed information and a systematic warning system which would alert them in good time when items of special interest appear on the agenda. Today the Finnish government decided to join the agency of cooperation and information for the international trade, AITIC. The agency seeks to integrate developing nations into the WTO and global economy, said Vilén.

Despite the increasing critism towards globalisation during the recent years, the vast majority of the research community and politicians see that international trade and investments are the key instrument in economic growth and development. Also, the UN Secretary General Kofi Annan has stated that in today’s world of inequality the biggest losers are not those who drift into the realm of globalisation but those who remain completely outside, said Vilén.

Although the multilateral trade system has its problems, it would be wrong to accuse international trade for economic inequality in the world. People sometimes seem to forget the fact that internal conflicts, corruption, deficiency in democracy, bad governance and human rights violations constitute the main obstacle to development. These problems need to be solved primarily by governments’ political decisions. The EU provides assistance in promoting good governance, emphasised Vilén.

The most important factor, however, is dialogue and ability for cooperation between developing and industrial countries, of which the Helsinki conference is a successful example. The governance of globalisation is partly burdened by the fact that due to the lack of appropriate political institutions global issues are negotiated between nearly 200 states. Thus, national interests are bound to be over-weighted. Genuine change requires international cooperation and in Finland’s case it translates into working towards an EU becominga a heavier global actor, said Vilén.

Further information: Mr Ukko Metsola, Special Adviser to the Minister, tel: +358 40 751 5173, e-mail: [email protected]

www.helsinkiconference.fi(Link to another website.)