G8 urged to resolve world poverty stalemate

World Bank chief Paul Wolfowitz is urging leaders at next week’s summit of the world’s most industrialised nations in Russia to resolve a stalemate over a commerce liberalisation pact billed as a recipe for lifting millions from poverty.

Negotiators from the 149-nation World Trade Organisation have not reached a breakthrough on a stalled global trade deal.

Wolfowitz said in a letter sent to leaders preparing for the Group of Eight meeting that “with time running out, our collective efforts can make the difference”.

“We can work to lift millions from poverty, boost developing country income, improve global market access and reduce taxpayer and consumer costs for all – or allow the whole effort to collapse, with harm to everyone.”

The G8 countries are the US, Japan, Germany, France, Britain, Italy, Canada and Russia. The ministers will be joined by finance officials from China, India, Brazil, Australia, Nigeria and South Korea.

The complex WTO talks have stalled as poorer countries demand that the 25-nation European Union and the US offer greater cutbacks in supports for American and European farmers.

The US and the European Union in turn want major developing countries like Brazil and India to allow more foreign competition for their industrial and service sectors.

“The world’s poorest people, the 1.2 billion living on less than $1 a day, are counting on your good intentions being transformed into decisive action,” Wolfowitz told the ministers in his letter.