The New York Times
June 1, 2003
http://www.nytimes.com/2003/06/02/international/europe/02GROU.html

  EVIAN-LES-BAINS, France, June 1-- The leaders of the Group of 8 met with leaders of 12 developing nations today, but there was little progress in the effort to expand a fund to support the global struggle against AIDS and other diseases that are debilitating the developing world.

France's president, Jacques Chirac, praised as "historic" a decision by President Bush to ask Congress to authorize up to $1 billion a year for five years into a matching fund to finance the battle against AIDS, malaria and tuberculosis.

Under Congressional authorization, the United States could pay up to $1 billion into the Geneva-based Global Fund to Fight AIDS, Tuberculosis and Malaria, on condition that the amount not exceed one-third of the total contribution by its allies in the European Union and among the Group of 8 wealthiest nations, notably Canada, Japan and Russia.

Representatives of nongovernmental organizations promoting access to effective and affordable medicines for developing countries had been expecting Mr. Chirac, the host of the meeting, to announce a matching commitment by the European Union. But while Mr. Chirac said France would triple its annual payment to the fund, to $150 million from $50 million now, he said at a news conference that a decision by all 15 members of the European Union would have to await a summit meeting of their leaders scheduled for June 26 in Salonika, Greece.

He said he hoped the French decision would be "followed by the other European countries and by the European Union."

Mr. Chirac said Mr. Bush "has taken a decision in this area that I would not hesitate to qualify as historic," adding that "this supposes an international cooperation."

He said he would press the European Commission, the executive body of the European Union, to release funds from the European Development Fund, a $10 billion economic development fund. "I have the impression that Europe will take up this challenge," he said.

Representatives of private groups observing the meeting were clearly disappointed with the outcome.

"We hoped it would be a kind of contest," said Jennifer Brant, a trade policy adviser for Oxfam America. "But it didn't pan out."

Paul Davis of Health GAP, an American-based organization that lobbies governments for better access in developing countries to medicines for AIDS, said a meeting scheduled for July in Paris to discuss contributions to the fund was now being described as a "supporters meeting," rather than a donors meeting. "They are calling it supporters, because they don't want to give," he said.

But Jamie Drummond, the spokesman for an organization called Debt AIDS Trade Africa, or DATA, called Mr. Chirac's announcement a "crucial step" in urging Europe to match the American commitment. "That's good news for Africa and the developing world," he said.

At a separate briefing, Romano Prodi, the president of the European Commission, said he supported a European contribution of $1 billion to match the American commitment.

The idea for the fund was born at a Group of 8 meeting in Okinawa, Japan, three years ago. Disbursements of about $3 billion began at the end of 2002, about 60 percent of the money for the struggle against AIDS, because AIDS medication is considerably more costly than drugs to fight tuberculosis or malaria.

The fund could be depleted by the end of 2004 if more money is not appropriated soon. Congress authorized the Bush administration to make the payments, but it has not appropriated the financing for them.

The United States has pledged $1.65 billion of the $3.37 billion so far promised the fund. The American donation is to be spread over five years.

The United Nations secretary general, Kofi Annan, who attended the discussions today, appealed to the Group of 8 leaders to increase their contributions to the fund and to devise a long-term strategy to ensure sufficient food supplies to Africa.

"The time for additional funding has arrived," Mr. Annan said, according to a transcript of his remarks provided to reporters. He said he hoped the leaders, "who played such an important role in getting the fund up and running will now endow it with the further resources it needs to achieve our shared goals."

The Western proposals for help on health matters for the developing world are not entirely altruistic. International aid groups have argued that developing countries, most notably in Africa, are threatened with the loss of the most productive parts of their population, and consequent loss of economic growth.

That, in turn, it is argued, would burden growth in the developed world.

Discussion of the health initiative came on a day when the Group of 8 leaders met with leaders of Algeria, Brazil, China, Egypt, India, Malaysia, Mexico, Morocco, Nigeria, Saudi Arabia, Senegal and South Africa for a luncheon and discussion of their needs.

Among the proposals laid before the eight leaders were several initiatives put forward by the newly elected president of Brazil, Luiz In‡cio Lula da Silva, including one for the elimination of restrictions on farm imports from the developing world, the creation of a fund to combat hunger and an unusual idea for a tax on international weapons sales.

"I think a tax on weapons is not at all unjustified," Mr. Chirac said.

This evening, the eight leaders met for dinner to hear a progress report on the New Partnership for Africa's Development, a program intended to aid African countries that undertake improvements to their economic and political systems.

The dinner was also attended by the leaders of Algeria, Nigeria, Senegal and South Africa. President Hosni Mubarak of Egypt, who had been scheduled to attend, left Evian this afternoon.

Mr. Annan, in his remarks, also urged the Group of 8 to develop a long-term strategy that would support investment in rural research and infrastructure, like water supplies, that would reinforce the World Food Program's efforts in Africa.