[asia-apec 1565] Sydney Morning Herald 12 Sep 2000 - Aus PM on Globalisation

[APEC Monitoring Group]

Explain globalisation, reform agricultural trade: Howard

By MICHELLE GRATTAN, Chief Political Correspondent

The future of globalisation could be in doubt unless its benefits were sold
properly and its "losers" were helped, the Prime Minister told the World
Economic Forum last night.

Mr Howard delivered a strong argument in favour of globalisation accompanied
by an equally forthright warning.

He likened the advantage it brought to the effect the Olympics had had on
sport.

"When the opportunity was created for nations to compete freely with each
other, and literally on level playing fields, the standards of all rose."

But in Seattle, Davos and now in Melbourne "we're reminded by a noisy
minority" that some did not understand the benefits of open markets.

"To some, globalisation is a mere stalking horse, a convenient scapegoat for
all that is not right in the world."

Governments and business had to convince people that globalisation's
benefits were attainable for the poor as well as the prosperous, he said.

They must also recognise economic changes would produce losers as well as
winners, both within and among nations.

"Policies must be developed to ensure the difficulties of adjustment are
eased and new opportunities found," he said.

"Governments will need to provide strong and flexible 'social safety nets'
and additional resources, creatively allocated, for education and to
generally promote innovation.

"This need for intensive, ongoing communication and for the development of
appropriate mechanisms to counter transition difficulties is not merely a
moral issue.

"Without these measures, the future of globalisation, as we know it, as we
desire it, could well be cast in doubt."

He pointed out that the world had experienced globalisation before and yet
seen it recede in the face of international suspicion and populist calls for
renewed protectionism after World War I.

Arguing strongly that the launch of another WTO round was crucial for
developing countries to reap the benefits of globalisation, Mr Howard said
that it was only by building market access that many of the least developed
countries could ever hope to lift their standards. For developing countries
that had grown fastest in the last 40 years, globalisation had been their
"ticket to prosperity".

But important elements of the global economic framework remained "seriously
skewed" against the developing countries "denied the opportunity to trade
their way to sustainable growth and higher 'core labour standards' because
of the barriers in much of the developed world to their agricultural and
other exports."

Australia would continue to campaign strongly for further reform of world
trading rules, especially for further liberalisation of agricultural trade.

"It is crucial to address the flagrant imbalances in international trade
rules that favour most of the world's rich countries, including the US and
the EU, against efficient agricultural exporters, including Australia."

But he was not optimistic about any change of heart within either the US or
the EU on agriculture.