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The United States and the Brandt Commission Report THE UNITED STATES AND THE BRANDT COMMISSION REPORT A Report Prepared by the U.S. International Development Cooperation Agency January 1981 Background Late in 1977, a group of distinguished l~aders from developed and developing nations came together to "study the grave global issues ari~ing fro~ the economic and so~ial disparities of the world community" a·.1d to "suggest ~ays of pro:noting ~~~quate solutions to the problems involved in develop~ent and in attacking absolut~ poverty." The group, formally known as the Indeper.d~nt Commission on Interna~ional Development Issues, soon came to be called "the Brandt Co;nmission" i:lfter its chairman, termer Chancellor of the Feieral Re?ublic of Germany, Willy Brandt. In addition to Brandt, the Commission brought together eleven leaders from developing countries and nine leaders from developed countries, includin; for~er :)ri ti sh frime l·tini ster Edward Heath; former Swedish Prime .-t:.ni:;ter ulof Palme; Adam Malik, former Indonesian Vice-Pr•!Sident; and Eduardo Frei i'-1ontalva, former Chilean President. 'I··:v American ~itizens, Katharine Graham (Chairman of the Washington Pose Corpora­ cion) and r~ter Pet~rson (Chairman of Lehman Brothers, Kuhn Lo~b) served on the Commission.·, In February 1~30, after two years of work, the Brandt Co~mission issued its final reoort. Their Report has focused world-wide ~ublic attention on a number of key issues that will affect the health of the elobal economy. It correctly identifies the economic conditions in develo~ing nations as major determinants in our econo~ic outlook for :he balance of this ~Pntury and puts forward a number of recom­ mendations with which we agree; and sev~ral with which we do not. -2- The context in which the Commission's ~ork was undertaken is, of course, of considerable importance. Far too often in recent ye~rs discussions between developed and developing countries have tiken place in an at~osphere of acrimony and tension. The Brandt Com­ ~ission, in the tradition of other respected int~rnation~l commis­ sions, sou~ht to pursue the issues or genuine mutual i11terest in 9n infor~al and constructive atmosphere. Following a meeting on the Co~~ission's report between President Carter and Willy Brandt, thE President asked IDCA to develop coor­ iinat~d U.S. ExP.cucive Branch positions on tr,~ Brandt Co~~ission's prooosals. From March through September of this year, IDCA led a review, and in mid-September the Director pr~"ideJ the President with ~ fi~al report. P3rticipating in this review were the Departments of Scate, 1reasury, Agriculture, Energy, Commerce, Labor, the Agency for International Development, the Export-Import dank, the Peace Corps, the Overseas Private Investment Corporation, and the United States Trade Representative. 1his paper is an IDCA su~mary of some of the main features of the review. * * * The Bra~dt Commisson Report makes recommendations on a wide range of North/South economic issues. Five broad themes underlie the Commissions' many specific proposals: It is in the mutual interest of the North and the South for govern~ents to act cooperatively and affirmatively to accelerate development; -3- While principal responsibility for f~stering development rests with individual developing naticns, the North, the South, and the Communist Bloc share a responsibility for promoting development and mandging change in the inter- national economic system; A transfer of resources on a large scale is needed to accelerate global economic development; and official development financing should be provided more auto~atical- ly and from a ~·ider community of donors; Developing countries should exercise a greatc~ voice in the ~anage~ent of the international economic system; While far-reaching policy and institutional reforms should be pursued over the course 01 the 1980~s, the dangers of serious economic crises in the next five years require quick agreemenr: on a set of emergenr.:y .neasures. Accoriingly, the Brandt Co~mission proposes a four-part Emer­ gency Program for 1980-85: an internatior.al energy strategy; a global food program;, large-scale resource transfers; and a start o~ some major reforms in the international economic system. The Report also outlines a program of priority actions for inter­ national negotiations over the next -··o decades, incl~ding trade, invest:nent, commodities, technology transfe~:s, and other issues. -4- We strongly endorse the CommiJsion's view that =here are growir mutual interests between North and South. All countries must assun an appropriate share of responsibility for managing a rapidly changing world econo~y. The mutuality of int2rests is evident in such areas as energy, food, inflation :ontrol, environ~cntal protec tion, and the achievement of ecca~omic growth. To a substantial degree, the development assistance p~licy of this Ad~inistration accords with the Report's call to ~on~~ntrate concessional aid on the lower-inco~e developing countries. The Co:runission's discussion of the ''dimensions of developnaent" accords ~ith our development strategy focus on poverty, human needs, the oosition of women in development, and respect for human dignity. :.Je c:re disappointed, however, that the Co:nmission did net adequatel) highlight the importa~ce of ~opulation gro~th in developing countrie ~e also concur with some, although not ~11, of the S?ecific recommer.iations th~c the Report makes in areas of trade, inv~stmePt, development finance anJ monetary refor~. In our review, we have devoted particular attention to the Commission's proposed "Emergency Progra.m." Food Broad-international consensus exists today on the central im­ portance of food and energy, the two sectors highlichted in the Brandt Commission's Emergency Program. Food an:: enerszv-related development assistance are two of the sectors proposed by the U.S. for principal consideration in international negotiations. Both are emnhasi.zPti ;n rll,,.. <:!,,,...,. .... ~--- -~ ...J ____ , -5- The Commission's international food program for 1980-85 aims at: increased food productiQn, especially in developing coun­ tries, helped by an increase to $8 billion (in 1975 dollars) in annual international &ssistance; stable supplies of food, including increased emergency food aid; a system of long-term food security based on conclusion of a new International Grains Agreement. We currently give ~ajor c~phasis in our bilateral aid program to agricultural development. We support efforts in the World Bank and the UN Food and Agriculture Organization (FAu) to help developing countries improve their fooJ storage and distribution capacities and various multilateral efforts that should help meet the objective of greater food security. The United States is the largest food aid donor, with our new Food Aid Convention pledge amounting to 4.47 million tons out of the internationally-agreed food aid target of 10 mil:ion tons. The recent enactment of our Food Security \Vheat Reserve Act will now allow the United States to meet its commitments . under the Food ~id Convention even if there ~re two ~onsecutive years of bad crops. Furthermore, we hope to be able to generate increased commitments from both developed and devel~:ing nations to scientific and technolo~ical solutions to problems of lagging agricultural productivity in the developing wo~ld, for example in the areas of cooperative research and extension services. -6- These actions are significant, we believe, but not enough. \¥e have begun, therefora, a study of additional m~asures to help meet food needs in developing countries -- including possibl~ new financing arrangements to increase food production and to help meet rising food import bills throughout the period of time it takes agricultural development efforts to take effect. While negotiations for a New International Wheat Agreement with binding economic provisions reached an impasse in 1979, the InternAtional Wheat Council is now developing a new approach to a wheat agreement. This new approach would build on the areas of consensus that do exist, and would retain the feature of internationaJ ly-coordinated, nationally-held reserves but establish more flexible, consultative ?rocedures for their ~uild-up and release. The issues that arise for the United States include our position on resumed talks and an assessment of the outlook for a new Wheat Trade Con- vention, as well as additional measures that may be needed to promote greater world food security. Energv In the field of energr,. the Commission calls for an accomodation between oil-producing and consuming countries that can ensure: secure supplies of uil; rigorous conservation; predictable and gradual oil price increases; measures to develop alternative sources of energy. While we share the Commission's view that energy is now a cen- tral international issue, we believe that substantial political and econo~ic obstacles stand in the way of viable, mutually acceptable -7- "enel'gy accord." Such an accord could be advanced by negotiati.ons among key producers and consumers, a~d we stand ready to entertain proposals on supply and price agreement. Moreover, the Carter Administration strongly supports a number of se)arate energy actions. We together with other OECJ nations have alreacy pledged vigorous conservation efforts and efforts to hold down oil imports. OECD 1980 oil consumption is expected to average 6'1'. lower than in 1979, and U.S. oi 1 consumption is expected to decrease by over 8%. We have requested the World Bank to examine the adequacy of existing measures and mechanisms for energy develop- men: in developing countries and to consider means cf increasing the World Bank's activity in this area, including the possible establishment of a new facility for this purpose. We have increased bilateral assistance in support of efficient use and development of energy resources. We are also actively supporting preparations for a 1981 ~d conference on new and renewable energy resources. Developing countries could increase their use of coal as an alternative to petroleum.
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