G8 Summit a Waste

In his book, Winning Through Intimidation, Robert Ringer says that there is really only one type of person in the business world. They use different techniques, but their modus operandi is to make sure that they get your piece of the pie (Ringer calls them chips). They may be truthful about it or they may not, but somehow, your pie always ends up on their plates. There is only enough pie for them, never for anyone else. One might say that the business world is full of predators. Of course, there are only predators where there is prey.

Rich countries, which are often made of businesspeople, can act like businesspeople. Currently, the Group of Eight Industrialized Nations (G8) is meeting in Japan to discuss all kinds of things, including how to eradicate poverty, yet one suspects that nothing interests them so much as continuing to be the richest countries in the world. The G8 represent 65% of the gross world product. All eight nations are among the 10 richest in the world.

Robert Zoellick, president of the World Bank urged nations to stop incentives for bio-fuels today, saying that bio-fuels were taking food off the table for millions of people. A World Bank report leaked three days ago exposes the fact that diverting crops to bio-fuels has caused a 75% rise in global food prices. Yet American food prices have risen only marginally; the U.S. government quotes a figure of 3%. How can this be?

Bushels of corn that used to go to other countries at $3 now go to the ethanol plant at $6. Americans do not notice, because, like a parking lot customer who parks in two spaces, rich countries take what they want first, and let everyone else cope with what they leave.

Aid to Africa has been big news at the last several G8 conferences, with commitments of money for grants and loans for agriculture, but most of the money may never actually arrive. President Bush says, "The best way to help the impoverished around the world is through trade." He seems to have forgotten that the underlying premise of trade is that each party gives something. Africa has little to give except starving children and an average lifespan of 45 years, thanks to AIDS.