Kamalesh Sharma, a seasoned Indian diplomat, took over as the secretary-general of the Commonwealth Secretariat on April 1, 2008. He is the first Indian to head this august body in its 43-year history. This is a unique opportunity for an Indian to steer the Secretariat?s course to overcome poverty and income disparity among its 53 members.
The Commonwealth represents every stage of economic and social development, including 13 of the world?s fastest growing economies and 14 of the world?s poorest. While the UK, Canada, Australia, New Zealand and Singapore are role models of economic success with good governance, several countries have dismal records. Around 800 million Commonwealth citizens still live in poverty. Four member countries have more than 80% of the world population living on less than $2 a day. About 30 million children are out of school. But there are also examples of countries that have turned around. India, South Africa and Malaysia are showing the results of pursuing sound economic policies.
The Secretariat has championed the cause of ?Aid for trade?. In fact, some economists feel that the bulk of multilateral lending should be directed towards this initiative. Trade capacity building is one of the most useful contributions that multilateral institutions like the World Bank, WTO and IMF should be engaged in. The returns on this investment will be high. But more money needs to flow in.
The Secretariat has also taken a noteworthy stand in outlining the vision for the international trading system in the 2005 Valletta Statement on Multilateral Trade. It calls upon the world?s richer nations to become stakeholders in the development process of emerging countries, not just by offering market access, but by helping facilitate the capacity required by such economies to effectively participate in the process of globalisation. This, indeed, is the whole spirit behind the real objective of the Doha Round?with added emphasis on capacity building.
The Commonwealth Secretariat has realised that its role should be different from that of multilateral and regional organisations with large financial and human resources at their disposal. Hence, the focus of the Secretariat has been on small interventions in poorer countries to help create productive capacity. Some money has been channeled to scholarships to upgrade skills of students in emerging and developing countries. Another noteworthy initiative was the establishment of the Commonwealth Business Council in 1997 with the aim of bringing together representatives from the private sector of member countries to discuss key development issues faced by them, and how developed countries can help the less fortunate.
Sharma, thus, faces big economic challenges. He has to work out a medium-term programme for the coming years based on a vision with specific objectives. While specific programmes must be defined for the next two years, the ones after that could be adjusted on the basis of outcomes of previous years? efforts. Small interventions should be minimised. Lack of financial resources should not be a binding constraint for him. In a sense, it?s an advantage. The track record of project loans from large multilateral institutions is very poor. Practically all the money is channeled to governments, with such transfers rarely reaching their intended beneficiaries.
Sharma is the first secretary-general who has witnessed the remarkable transformation of a continent-sized economy beset with economic woes. This experience should help him define a vision that will involve the private and public sectors all members. A strong Commonwealth will benefit all its 1.8 billion citizens, and provide a massive market to the rest of the world.
Jayanta Roy is principal adviser, CII. These are his personal views
