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Chirac Warns Poor Could Revolt if Left no Hope for Future and Proposes International Tax to Fight Poverty
Chirac Warns Poor Could Revolt if Left no Hope for Future and Proposes International Tax to Fight Poverty
Published 01-27-05
Submitted by World Economic Forum
Speaking live by satellite on the first day of the Annual Meeting of the World Economic Forum, he called on all developed countries to take action rapidly to meet pledges made two decades ago to devote 0.7% of the value of their annual output or GDP to aid for poorer nations. He also urged them to consider levies on cross-border financial transactions, taxing fuel used in air transport and shipping, and levying a charge of one dollar on every air ticket sold to fund the fight against AIDS.
"The divide between rich and poor has widened to a frightening degree," Chirac told participants in the Annual Meeting 2005 of the World Economic Forum in Davos, speaking by video-link from Paris. In Africa and many other regions a majority of the population, living in shanty towns and rural areas, are waiting to see promises of progress take concrete shape.
He declared "this is a situation fraught with danger. It is morally unacceptable." The difference in per capita income between the world's poorest and richest countries has more than doubled over the last 25 years even though globalization has brought greater prosperity to many in more developed nations, as well as in larger emerging economies like China and India.
The youth of Africa, Asia and Latin America is rightly demanding its entitlement to a future. These populations will put their energy and talent at the service of the future, if they are given the means to do so. If this prospect is denied them, however, then let us beware of the risk of revolt. Development is both the greatest challenge and the most urgent issue of our time.
President Chirac had planned to attend the Annual Meeting in person, but was forced to make the address via video link after the threat of bad weather forced him to cancel his attendance. He had planned to fly straight from Davos to the Auschwitz for the memorial ceremony marking the 60th anniversary of the liberation of the concentration camp.
In his speech, Chirac told business, financial, political and civil society leaders participating in the Annual Meeting 2005 that they should aim to overcome poverty through a partnership between market forces and solidarity, ensuring that globalization is tailored to everyone's benefit. Only 3% of the annual increase in the world's wealth is needed to win the battle.
"Left to their own devices, economic forces are blind and contribute to the marginalization of the weakest," he observed. "But if supported by the appropriate rules, trade liberalization and opening [nations] up to investment are powerful stimulants to development."
International aid is vital to help fund basic infrastructures, access to healthcare and education to make possible economic take-off. "The demands of ethics, peace, security and economic interests converge," the French leader said.
