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The G8 countries agree on climate change, and more besides






 

DESPITE the row over Russian missiles that preceded it and the mob of angry protestors outside, the G8 meeting probably helped in the quest for global stability. The top industrial countries ended their summit in Heiligendamm on Friday June 8th with a handful of agreements aimed at just that goal. The most positive outcome of the three-day summit was America's apparent shift closer to the G8 mainstream.

The most important agreement was on climate change: a commitment at least to “consider seriously” the goal of halving global greenhouse-gas emissions by 2050. There was also a pledge of $60 billion to combat HIV and AIDS, with the aim of giving all victims access to treatment by 2010.

The G8, without surrendering their status as the world’s most powerful countries, also invited leaders of the strongest developing economies—Brazil, Mexico, India, China and South Africa—to join them in four initiatives: on climate change, safeguarding intellectual property, encouraging cross-border investment, and developing Africa. Africa was in the spotlight at the final day of meetings.

The German hosts coined the term “Heiligendamm Process” to describe the inclusion of the big developing countries, in some of the G8’s endeavours. The intention is to bind these countries, particularly China, more closely to policies of the G8, and to avoid “China-bashing”, according to German officials. It was not clear, after meetings of this quasi G13, whether the Heiligendamm Process would catch on.

The summit, held at a wedding-cake hotel on the Baltic coast, brought a surprise offer from Russia's president, Vladimir Putin. Russia's threat to target Europe if America put its planned missile-defence stations there had looked as if it might overshadow proceedings. But in bilateral talks with America's president, George Bush, Mr Putin proposed joint use of radar stations in Azerbaijan, as an answer to American defence concerns east of Europe. Mr Bush said he would consider the offer.

The agreement on climate change is a modest triumph for Angela Merkel, the German chancellor and the summit's host. Although there was no firm commitment on numbers, the agreement accepts the need to develop a global framework, under UN auspices, by the end of next year, ready to replace the Kyoto protocol on climate change when it expires in 2012. There had been fears that Mr Bush would reject a UN-sponsored programme just as America has refused to ratify the Kyoto protocol whereby leading countries pledge to reduce their greenhouse gas emissions at least 5% below 1990 levels.

Another German initiative, to introduce a code of conduct for hedge funds in the interests of financial stability, got no further. American and British financial regulators, and the financial firms they oversee, believe that improving best practice and their own vigilance are enough to prevent a problem in the $1.6 trillion hedge-fund industry from triggering a wider financial crisis.

Beyond the smooth lawns and swish setting of Heiligendamm, well-organised bands of anti-G8 protesters kept a 16, 000-strong police force busy. Several times they evaded the police and occupied areas near a specially built perimeter fence. The protests were mainly peaceful, though they had been heralded at the weekend in nearby Rostock by violent clashes between police and black-clad radical protesters known as Autonomen.

The main message of the protesters was rejection of policy-making that kow-tows to “global capitalism”. As helicopters roared overhead, and water cannon readied for action, they pleaded for more debt forgiveness for the world’s poorest countries, as did a rock concert against poverty in Rostock, led by the combined vocal talents Bob Geldof, Bono and Herbert Grö nemeyer. Non-governmental organisations said the G8 pledges fell short. Oxfam, an aid group, argued that the $60 billion proffered to combat disease added only $3 billion a year to what had already been promised up to 2010. Greenpeace, an environmental group, said that despite the inclusion of America in work to reduce emissions, the Bush administration was “as far away as ever” from agreeing such reductions itself.

For Ms Merkel, at any rate, such objections are swept away. The headline in Bild, a popular daily newspaper, hailed her as “Miss World” for achieving three goals: on climate change, more money for Africa, and dé tente between Mr Bush and Mr Putin. And, given the inauspicious lead up to the meeting, she may well have earned the title.

 






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