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China, India step up global role with fund
by Staff Writers
Los Cabos, Mexico (AFP) June 20, 2012

Development banks earmark $175 bln for sustainable transport
Rio De Janeiro (AFP) June 20, 2012 - Eight multilateral development banks announced at the Rio+20 summit here Wednesday that they would set aside $175 billion to finance sustainable transport systems over the next decade.

The pledge was made jointly by the World Bank, Asian Development Bank, African Development Bank, Inter-American Development Bank, CAF-Development Bank of Latin America, European Bank for Reconstruction and Development, European Investment Bank and Islamic Development Bank.

Transport is one of the fastest-growing source of greenhouse gases, driven especially by urban growth in giant emerging economies.

Around one billion people are likely to move to cities over the next 20 years, which means traffic congestion, air pollution and road accidents will become major urban challenges.

The voluntary commitments were made at the start of a three-day summit in Rio de Janeiro to cap the UN Conference on Sustainable Development.

The gathering marks 20 years since the 1992 Earth Summit placed climate change, desertification and species loss on the world's political agenda.


After years of pressure to take a greater role in global affairs, China and India have stepped up by contributing to a new IMF emergency fund -- from which the United States is absent.

China, India and other emerging economies made commitments to a fund during a summit in Mexico of the Group of 20, a club formed during the 2008 global economic crisis that aims to give a bigger say to developing powers.

China lent $43 billion to a new firewall being set up by the International Monetary Fund to help nations escape contagion from woes still afflicting the global economy.

The pledges made China the third largest contributor after Japan and Germany. The IMF said that commitments to the firewall now totaled $456 billion (360 billion euros), more than it initially anticipated.

The United States and other Western nations have long pushed China to be, in the words of World Bank president Robert Zoellick, a "responsible stakeholder."

US officials have often charged that Beijing sought to enjoy the prestige of a top power but assume the responsibilities of a poorer nation when convenient.

"It's a breakthrough in terms of countries committing resources," Australian Prime Minister Julia Gillard told reporters. "This is an important outcome which Australia has been advocating strongly for."

Indian Prime Minister Manmohan Singh pledged $10 billion but called for swift progress on promised reforms at the Washington-based lender, which along with the World Bank is dominated by the West.

"India's contribution reflects our recognition that as a responsible player in the global community, we must play our part," Singh told reporters after the summit on the beach resort of Los Cabos.

But the United States, the world's largest economy, has not committed any money to the firewall. The only other Group of 20 nations that have not made specific pledges are Argentina, Canada and Indonesia, according to the IMF.

President Barack Obama's administration has argued that Europe has the capacity to fund its own recovery.

But contributors have made clear that the firewall is not just for Europe. Foreign officials say Obama does not believe he could win approval for more funding from Congress, where skepticism of foreign commitments runs deep.

Few nations have publicly called on the United States to do more.

The United States remains the largest overall contributor to the IMF and in 2009 approved a $100 billion credit line for another IMF crisis fund, a move criticized by some of Obama's conservative adversaries.

In turn, China has hardly trumpeted its contribution. Chinese officials in Los Cabos did not speak about it and China's state-controled media took pains to stress that it was a loan that builds interest, not a gift.

While the firewall may appear to be an arcane issue, Chinese officials are often careful to walk a fine-line on issues that nationalist Chinese could perceive as a developing country benefiting wealthier nations such as Greece.

Nina Hachigian, a senior fellow at the Center for American Progress, a left-of-center Washington think tank, said China's contribution goes "in the 'plus' column when we consider whether China is a 'responsible stakeholder'."

But she said that China was not taking a major risk, as it has plentiful foreign reserves and is offering a loan rather than a gift.

"Despite the tricky domestic politics of using foreign reserves to help richer nations, Beijing knows that China's economic health is dependent on those nations being able to afford to buy its goods," she said.

"We can never expect nations to act against their own self-interest -- that is not the test of responsibility," she said.

"What we hope for is that they consider whether their actions strengthen the international system and are consistent with other countries' interests as well. China passed this test of responsibility in this case."

India has also faced calls to play a more active global role but, with a vastly different political economic and political system than China's, it has much better relations with the West.

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Landmark Rio summit on 'green' economy opens
Rio De Janeiro (AFP) June 20, 2012 - World leaders open a UN summit here Wednesday where they are set to endorse a blueprint for eradicating poverty and protecting the environment that critics insist is a threadbare compromise.

Some 92 leaders, including the host, Brazilian President Dilma Rousseff, and UN chief Ban Ki-moon are attending the Rio+20 summit on sustainable development.

The high-profile event comes 20 years after Rio's first Earth Summit, when nations vowed to roll back climate change, desertification and species loss.

The meeting is set to get under way at 10:00 am (1300 GMT) with the screening of a short film titled "State of the Planet" and a statement by the UN secretary general.

Some 191 speakers are expected to take the floor until Friday, when leaders will close the 10-day UN conference by giving their seal of approval to a 53-page document agreed by their negotiators Tuesday.

Not everyone was upbeat about the hard-fought draft.

"Nobody in that room adopting the text was happy. That's how weak it is. And they all knew," the European Union's commissioner for climate change, Connie Hedegaard, said on the micro-blogging website Twitter.

But US climate change envoy Todd Stern said the deal was "a good strong step forward" and that the text was unlikely to be altered.

As summit host, Brazil was keen to avoid pressing leaders too much over the final text, after the 2009 Copenhagen Summit nearly collapsed and was followed by furious exchanges among participating countries.

The draft outlines measures for tackling the planet's many environmental ills and lifting billions out of poverty through policies that nurture rather than squander natural resources.

Some of the most contentious issues were proposed measures to promote a green economy and the "Sustainable Development Goals" that are set to replace the United Nations' Millennium Development Goals after they expire in 2015.

Environmentalist groups were scathing in their criticism of the text.

"We were offered a common vision of inaction and destruction," Daniel Mittler, political director of Greenpeace International, told AFP.

"There's absolutely nothing there for people and the planet," he added.

Lasse Gustavsson of the World Wildlife Fund agreed, saying: "This is significantly disappointing. The language is very weak and the outcome of this conference will not be anywhere near what the people and the planet needs."

The leaders, including French President Francois Hollande, South African President Jacob Zuma, Prime Ministers Manmohan Singh of India and Wen Jiabao of China, will hear a message from astronauts in International Space Station on Wednesday.

But US President Barack Obama, British Prime Minister David Cameron and German Chancellor Angela Merkel will be absent.

And Russia will be represented by its head of government, Dmitry Medvedev, not President Vladimir Putin as expected, according to the list of speakers.

Ahead of the summit, 50,000 activists, business executives and policy-makers attended the 10-day UN conference.

On Wednesday, tens of thousands of leftist activists attending a Rio+20 counter-summit are to march through central Rio to rail again against what they see as capitalist attempts to hijack the "green economy."



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India and Russia boost IMF crisis firewall
Los Cabos, Mexico (AFP) June 18, 2012
India and Russia each pledged $10 billion on Monday for an IMF firewall meant to prevent future crises, marking a new level of commitment by emerging economies as they seek a greater voice. At a summit of the Group of 20 major economies, Indian Prime Minister Manmohan Singh said that his government would contribute $10 billion to the fund meant to support nations at risk of contagion from th ... read more


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