Global Health Watch 1 in one file
Global Health Watch 1 in one file Global Health Watch 1 in one file
Health and globalization | A1 • Accelerated and deepened debt relief relative to levels available under the enhanced HIPC initiative – although the report does not specifically recommend debt cancellation for countries not eligible under enhanced HIPC. • Trade agreements that substantially reduce unfair barriers to market access, especially for goods in which developing countries have a strong comparative advantage such as agricultural products. • Stepped up actions to ensure core human and labour rights for workers around the world, with particular emphasis on gender inequalities. • A multilateral framework to manage the international flow of people, such as the brain drain of education professionals from poor to rich countries and its frequent corollary of brain waste after they migrate. • Stronger voting rights for low- and middle-income countries at the World Bank and IMF. • Building on existing frameworks for international tax cooperation as a vital element in strengthening the integrity of national tax systems in all countries, increasing public resources for development and facilitating the fight against tax havens, money laundering and the financing of terrorism. • Increased coherence in the global economic, financial and health/human rights system, and heads of state to promote policies in international fora that focus on well-being and quality of life. Policy initiatives that go further than the commission’s recommendations are needed in at least two areas – the relation of trade agreements to human rights obligations and the internationalization of taxation and wealth redistribution. On the first point, the UN special rapporteurs on globalization and human rights said it was necessary to move away from ad hoc and contingent approaches in ensuring that human rights, including the right to health, are not compromised by trade liberalization (Oloka-Onyango and Udugama 2003). The initial report from the UN’s special rapporteur on the right to the highest attainable standard of physical and mental health outlined an expansive interpretation which explicitly included poverty-related issues (Hunt 2003). His subsequent examination of the WTO regime led to the conclusion that ‘the form, pacing and sequencing of trade liberalization [must] be conducive to the progressive realization of the right to health’ and that ‘progressive realization of the right to health, and the immediate obligations to which it is subject, place reasonable conditions on the trade rules and policies that may be chosen’ (Hunt 2004). High priority should be given to ensuring that both the content of trade agreements and the operations of the WTO (including its 42
dispute settlement mechanism, which was not considered in the 2004 report) and other trade policy institutions conform to this principle. On the second point, recognition is growing of both the desirability and the difficulty of devising some mechanism of global income transfers. Yunker (2004) uses a global econometric model (the World Economic Equalization Programme, or WEEP) to simulate the effects over a 50–year period of a ‘global Marshall Plan’ to raise economic growth in the developing world using major increases in development assistance financed by national treasuries. While he is candid about the huge uncertainties inherent in such simulations, he concludes that if such a programme were implemented, ‘the living standards of what are the poorest countries of today would have improved sufficiently, by the end of the period, to be comparable to those of the richest countries today’. This result, inconceivable in a business-as-usual scenario, is relatively insensitive to variations in key assumptions. However, it would require annual development assistance commitments by the rich countries on the order of 2–4% of GNI or GNP – far higher than the 0.7% target, now reached by only a few countries (see part E, chapter 5). If such national commitments are unlikely, what international revenueraising mechanisms might be considered? Taxes on arms trade and international air travel have been proposed, although neither would raise substantial revenue (US$ 5–20 billion annually). A carbon tax on high-income countries only (at a rate low enough not to be a drag on consumption) would generate around US$ 125 billion annually; the rationale for not imposing it universally is that some low-income countries with small populations could pay higher amounts of their income in such a tax than people in high-income countries, rendering it regressive rather than progressive. A currency transaction tax of 0.25% (the so-called Tobin tax) would generate over US$ 170 billion annually, according to one estimate (others suggest it may be considerably less), and is perhaps the least difficult to implement. Other suggestions to address the problem of MNEs and wealthy individuals shifting assets and operations around the world include the issuance of one tax identification number that ensured corporate or personal confidentiality, but would allow all jurisdictions believing they had a tax claim to levy it; and national withholding taxes on all capital leaving a country, to limit the possibilities for capital flight (Clunies-Ross 2004). These policy options, even more than others we have described, face formidable political difficulties. They challenge the orthodoxy of neoliberal economics, and would involve fundamental shifts in the global distribution of wealth and power. History suggests that such changes demand radical (and not always Health for all in a ‘borderless world’? 43
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<strong>Health</strong> and globalization | A1<br />
• Accelerated and deepened debt relief relative to levels available under the<br />
enhanced HIPC <strong>in</strong>itiative – although the report does not specifically recommend<br />
debt cancellation for countries not eligible under enhanced HIPC.<br />
• Trade agreements that substantially reduce unfair barriers to market<br />
access, especially for goods <strong>in</strong> which develop<strong>in</strong>g countries have a strong<br />
comparative advantage such as agricultural products.<br />
• Stepped up actions to ensure core human and labour rights for workers<br />
around the world, with particular emphasis on gender <strong>in</strong>equalities.<br />
• A multilateral framework to manage the <strong>in</strong>ternational flow of people, such<br />
as the bra<strong>in</strong> dra<strong>in</strong> of education professionals from poor to rich countries<br />
and its frequent corollary of bra<strong>in</strong> waste after they migrate.<br />
• Stronger vot<strong>in</strong>g rights for low- and middle-<strong>in</strong>come countries at the World<br />
Bank and IMF.<br />
• Build<strong>in</strong>g on exist<strong>in</strong>g frameworks for <strong>in</strong>ternational tax cooperation as a vital<br />
element <strong>in</strong> strengthen<strong>in</strong>g the <strong>in</strong>tegrity of national tax systems <strong>in</strong> all countries,<br />
<strong>in</strong>creas<strong>in</strong>g public resources for development and facilitat<strong>in</strong>g the fight<br />
aga<strong>in</strong>st tax havens, m<strong>one</strong>y launder<strong>in</strong>g and the f<strong>in</strong>anc<strong>in</strong>g of terrorism.<br />
• Increased coherence <strong>in</strong> the global economic, f<strong>in</strong>ancial and health/human<br />
rights system, and heads of state to promote policies <strong>in</strong> <strong>in</strong>ternational fora<br />
that focus on well-be<strong>in</strong>g and quality of life.<br />
Policy <strong>in</strong>itiatives that go further than the commission’s recommendations<br />
are needed <strong>in</strong> at least two areas – the relation of trade agreements to human<br />
rights obligations and the <strong>in</strong>ternationalization of taxation and wealth redistribution.<br />
On the first po<strong>in</strong>t, the UN special rapporteurs on globalization and human<br />
rights said it was necessary to move away from ad hoc and cont<strong>in</strong>gent approaches<br />
<strong>in</strong> ensur<strong>in</strong>g that human rights, <strong>in</strong>clud<strong>in</strong>g the right to health, are not<br />
compromised by trade liberalization (Oloka-Onyango and Udugama 2003).<br />
The <strong>in</strong>itial report from the UN’s special rapporteur on the right to the highest<br />
atta<strong>in</strong>able standard of physical and mental health outl<strong>in</strong>ed an expansive<br />
<strong>in</strong>terpretation which explicitly <strong>in</strong>cluded poverty-related issues (Hunt 2003).<br />
His subsequent exam<strong>in</strong>ation of the WTO regime led to the conclusion that<br />
‘the form, pac<strong>in</strong>g and sequenc<strong>in</strong>g of trade liberalization [must] be conducive<br />
to the progressive realization of the right to health’ and that ‘progressive realization<br />
of the right to health, and the immediate obligations to which it is<br />
subject, place reasonable conditions on the trade rules and policies that may<br />
be chosen’ (Hunt 2004). High priority should be given to ensur<strong>in</strong>g that both<br />
the content of trade agreements and the operations of the WTO (<strong>in</strong>clud<strong>in</strong>g its<br />
42