2009-02-05

G8 and G20, "collective leadership". Address by Minister Frattini at University for Foreigners in Perugia

With the end of the Cold War, the tragic events of 9/11, and the coming to the fore of global challenges, the international scenario has changed profoundly. It has become more unpredictable and uncertain in its evolutionary dynamics; more complex and interdependent in the problems to be confronted; more fluid and variable in the international hierarchies that represent it. After 1989, and the end of the Cold War , we expected more peace and stability. Despite the reunification of a large part of Europe, however, dangerous forms of nationalism have re-emerged and regional crises have multiplied. International terrorism gave ample proof of its macabre capacity to strike anywhere and at any moment in September 2001, an intensifying citizens’ sense of personal and collective insecurity. Before then, no one would have imagined that their lives might be endangered even where and when they thought they would be safe: at a restaurant, on a bus, in a hotel, or at the workplace. The nature of the terrorist threat has thus transformed our safety from an asset that we once took for granted into a right to be regained and defended.

Over the last few years, as new powers have appeared on the international scene, globalisation has begun to reveal its dual face. Opportunities and the increased competition between the states reaching for them, have given way to fear with the rise of non-conventional threats and indirect challenges: climate changes, immigration, the food crisis, pandemics, energy security, nuclear proliferation.

In the course of 2008 this already complex picture was further complicated by the grave economic and financial crisis that we are now faced with. A crisis without precedent that has produced uncertainty and fear, insecurity. A truly global crisis that has rapidly spread from sub-prime mortgages to the credit market, from the financial centres to the real economy, from the United States to European countries and emerging economies.

Thus as president of the G8 Italy has inherited a challenge that is far more difficult and demanding than what we could have imagined only six months ago. We are fully aware, in other words, that we are faced with an extremely difficult phase of globalisation, and we are working so that the G8 may prove capable of providing prompt, concrete and reassuring answers to the concerns of the international public. All in all, the basic message that Italy wishes to share with its own citizens and with those of its partners in the G8 is simple: the international community will not succumb to fear, to uncertainty, and to paralysis, because it possesses the technical, the human, and especially the moral resources necessary to overcome the difficult trials to come.

In order to meet these challenges, however, the international community must be prepared to make some choices, to exercise its leadership. We had, perhaps, lulled ourselves into thinking that the global market might function on its own and generate wealth and well-being, peace and security all by itself. But 2008 and early 2009 have amply demonstrated that it is not possible. That globalisation must be governed. New rules are required, new institutions—if need be—must be created, appropriate incentives and disincentives to government behaviour need to be introduced, mechanisms that correct the growing disparity between advanced countries and those that have been left on the sidelines of globalisation must be deployed. We must identify the tools that can enable us to combine today's individual consumption with the need to avoid leaving future generations with an irreparably devastated habitat.

Based on this presupposition, Italy is developing a major agenda to be implemented over the course of its G8 presidency and intends to concentrate on the need to enact an adequate reform of the global governance system. The topic of governance also concerns the United Nations. Tomorrow, in fact, I shall be presiding in Rome over a ministerial meeting in which more than sixty countries will discuss the principles on which to base the reform of the United Nations Security Council, a question with which Italy has always been very concerned. The reform of governance also concerns regional organisations, and in this respect Italy is in favour a more active and dynamic role for them. In order to better define the contours and content of such an increased role, we think it would be useful to convene a summit of all regional organisations, an event that Italy would be willing to host.

The economic/financial crisis underway has highlighted the unmistakable gap between the complexity of the problems, threats, and challenges the international community must face and its capacity to do so adequately, to deploy the means required to provide effective and convincing responses. The Italian G8 presidency, therefore, has an historic opportunity to contribute to the definition of the fundamental coordinates of a new system of international governance, to define the framework of a multilateral approach that is effective in all of its components: rules, institutions, policies, and programmes. A new system that enables us to maximize the potential that globalisation offers while minimizing the risks it entails.

It is our intention that this new system be based upon four fundamental principles: (1) a shared responsibility, so that every international actor—developed and emerging countries alike—does more and does it better so as to contribute to providing a shared response to shared problems; (2) inclusiveness, with the aim of increasing the involvement of emerging countries in decision-making processes; (3) effectiveness, based on the conviction that the legitimacy of institutions depends, above all, on their performance, namely on their capacity to concretely solve the problems that are of concern to citizens; (4) sustainability, because we need to reduce volatility and uncertainty, ensuring stability to the financial system and growth to the economy.

On the basis of these principles, Italy is also asking itself what format might best be suited to exercising effective international governance for the present and for the future of globalisation. In particular, international pressure to verify the legitimacy of the G8 in terms of representation and effectiveness has already been mounted and the question cannot be eluded.

On this point, the questions upon which an operational enquiry should be based are already sufficiently clear. Is the G8 outdated and poorly representative of new international equilibriums? Is the G20, whose role has been revived in the economic crisis, an adequate forum or overcrowded? What is the best way to enable emerging countries to participate in the dialogue with the Eight? Is it possible to “institutionalise” a new format that encompasses both “old” and “new” international glories?
Let us immediately clear the field of a possible misunderstanding: G20 and G8 are not in competition with one another. Both formations are able to provide their own added value. The former in a more immediate perspective determined by the crisis underway, the latter focused also toward the medium-to-long term.

The Washington G20, which took place for the first time last November at the level of Heads of State and of Government, outlined an ambitious Plan of Action to confront the financial crisis. On April 2nd it will meet again in London with the aim of taking further decisions capable of rekindling trust in financial markets, giving new impetus to the real economy, and laying the foundation for a reform of the Bretton Woods institutions. It is therefore plain that, especially as far as the definition of a new system of financial governance is concerned, there is a need for close coordination between the Italian G8 presidency and the British G20. A coordination effort already underway at both technical and the political levels: on February 17th, I myself shall be in London, where I am to meet with my British colleague, while on February 19th, Prime Minister Brown will be received in Italy by President Berlusconi.

The G20 and G8 work together, therefore, and the former is not destined to replace the latter, which instead maintains its own mission. Indeed, even when faced with a profoundly different global picture, as a result of its members’ shared values and levels of development the G8 continues to represent, a fundamental constituency in which to concur on the definition of globalisation governance. Moreover, this forum has not remained immobile while the world around it has changed. Ever since the 1990sand, in particular since the 1994 Naples Summit, where Russia participated for the first time, it has been in the process of adapting to the new international reality. With the 2007 Heiligendamm Summit the major emerging economies known as the G5—Brazil, China, India, Mexico, and South Africa—effectively began to become involved in the G8 framework. Since then, it has become increasingly evident that the G8 could no longer be considered an effective and representative forum—from the point of view of decisional inclusiveness and shared responsibility—without involving the G5 countries.

In 2009, however, in the face of global challenges requiring collective leadership and responsibility, the Heiligendamm format also needs to be strengthened. The time has come to go further, to take another step forward to foster a new international partnership. Given that a “world government” neither exists nor represents a concrete possibility in the foreseeable future, the real challenge, not only for the G8, but for the very concept of governance, lies in the search for a format that ensures the right balance between representation and effectiveness. Representation is necessary to ensure legitimacy to the enterprise and to its decisions. At the same time, it is evident that overcrowded formats implicate a reduction in their operational and decision-making capability and, therefore, in the possibility of achieving concrete results.

As President of the G8 Italy intends to make its own contribution to the renovation of its architecture and views July’s La Maddalena Summit as the right occasion to propose a new global governance format. The idea is to define a format that goes beyond the dialogue begun at Heiligendamm placing Brazil, China, India, Mexico, and South Africa in a more structured, stable, and permanent association with the countries of the G8. Italy is also of the opinion that a moderate Muslim, Arab and African country such as Egypt would be a useful addition to the G5 countries, . In this way, a group of countries would be constituted that could be sufficiently representative of the industrialised and emerging economies, yet sufficiently streamlined to concur on effectively confronting the massive challenges of globalisation.

Such a nucleus might be enlarged, on a variable geometry basis, to include a limited number of other countries that are particularly relevant to the topic under discussion: for example, other countries with high levels of CO2 emissions when the topic is climate change, or representatives of the African States when development is on the agenda. In other words, a single, valid and effective format for every occasion does not exist. The complexity of the challenges we are confronting requires a more pragmatic and flexible approach than ever, not least when it comes to defining institutional and decision-making architecture.

Having outlined the formats within which discussions could take place, I would now like to dwell upon the five priorities of our G8 presidency: (1) the financial and economic crisis; (2) climate change and energy security; (3) terrorism and non-proliferation; (4) development and Africa; (5) regional crises, with particular reference to Afghanistan and the Middle East.

(1) Financial and economic crisis – The most serious crisis since the time of the Great Depression requires a global response. Better rules and increased international coordination are required to sustain the world’s economy and set it on a more solid foundation for the future.

The G8 and G20, as I mentioned earlier, should work together to contribute to the reform of international financial institutions and to the creation of a system of more effective rules, paying special attention to the transparency of the international financial system. It will also be important to foster the consensus required to maintain and bolster greater openness in trade and investments, including a new, balanced agreement in the context of the World Trade Organisation (WTO), with significant benefits for economic growth. As became clear even in the course of the recent World Economic Forum at Davos, a multilateral approach is fundamental also in order to avoid protectionist responses on the part of individual countries, which would only worsen the international financial picture.

Finally, innovation should be promoted through an efficient system of intellectual property rights, essential to encouraging investments and re-launching economic growth, and through joint efforts to combat counterfeiting and piracy. Moreover, it will be necessary to confront the question of the governance of the internet system, not least in order to ensure the security of online transactions and consumers and to combat cyber crime, the violation of reserved information and computer piracy.

(2) Climate change – There are great expectations surrounding the La Maddalena Summit on the topic of climate change. The Italian G8 presidency will aim to broaden areas of convergence between advanced economies, emerging economies, and developing countries. The final target is to contribute to the success of the UN Conference of Copenhagen in December 2009, which is meant to define a global climate agreement. Decisive in this respect will be the contribution by American president Obama, who has cited the struggle against climate change as a tool for re-launching the economy and who, in Sardegna, will be participating in a G8 Summit for the first time..

The challenge of climate change reflects, better than any other, the deep interconnection between the phenomena typical of globalisation. It is clear that no isolated effort, however worthwhile, will be able to reduce of CO2 emissions to an extent that would be useful against the greenhouse effect, unless all the actors of the global economy do their part, commensurate with each one’s degree of development. In terms of opportunities, investment in fighting climate change will also lead to new opportunities for employment. These “green jobs”, in turn, can contribute to jump-starting demand and economic recovery.

The topic of the environment, as we all know, is closely connected with that of energy security. On this front our presidency intends to make the most of and strengthen dialogue between the principle fossil fuel producer and consumer countries, with the aim of stabilising the dynamics of energy supply and demand, increasing market transparency, and encouraging investment in new energy infrastructures.

(3) Non-proliferation and terrorism – The Italian G8 presidency plans to pay special attention to strengthening the general regime of non-proliferation, especially in light of the 2010 Review Conference of the Nuclear Non-Proliferation Treaty, prospects for nuclear disarmament, and the link between the development of nuclear energy and non-proliferation. The Global Partnership Against the Spread of Weapons and Materials of Mass Destruction, launched at the G8 Summit of Kananaskis in 2002, constitutes the principle activity of the G8 in this sector and against the risk that weapons of mass destruction may be acquired by terrorist organisations.

Italy's stance in regard to terrorism is stronger now than it was in 2002 and in favour of an ad hoc declaration by the G8 Heads of State. Within this framework, we shall bring attention to bear especially upon the fight against radicalisation and the phenomenon of recruitment, as well as upon the need to adapt the tools for fighting terrorism to exercising the necessary respect for human rights and international law.

(4) Development and Africa – The Italian presidency intends to maintain the fight against poverty, promotion of development, and dialogue with the African countries as the centrepiece of the G8 agenda. I t is still of the essence that the fight against poverty and disease be intensified in Africa and that the struggle against the violation of human rights and violence against women and children be pursued unflinchingly. In line with the Consensus of Monterey and Doha on development assistance and the results of the Accra Conference on aid efficacy, Italy intends to promote an innovative approach to development, one which is not exclusively focused on the volume of aid, but that instead brings into play all the factors capable of triggering processes of sustainable growth: peace and security, democratic governance and institution- building. Indeed, the scale of the challenge of poverty is such that the mobilisation of all available resources is required: not only official development aid, but also private investment, commerce, innovative sources of financing, debt cancellation and remittances. The effort, by both the traditional donor countries and the emerging ones should also involve all the relevant players: public organisations, private bodies and the civil society. Such an integrated and systemic approach will inspire us in the course of the G8 of Ministers for Co-operation that I shall have the privilege of chairing at Pescara in the month of May.

(5) Regional crises: Afghanistan and the Middle East – Among the principle regional issues that the Italian presidency intends to bring to the attention of the G8 partners are certainly those of Afghanistan and the Middle East. On the occasion of the G8 Meeting of Ministers for Foreign Affairs to be held in Trieste in June, I intend to organise an enlarged work session dedicated to Afghanistan and Pakistan, inviting the participation of all countries that can play a role in that area: from India to Saudi Arabia, the Arab Emirates, Turkey and Egypt. This is a special initiative that, by focusing on bordering areas, aims to contribute to the stabilisation of the entire region. Italy is convinced that the stabilisation of Afghanistan cannot be considered solely a problem of the United States and its western allies, but must instead represent a goal also for the countries of the region, without whose contribution it would be difficult to arrive at any solution. Afghanistan, as Secretary General of NATO de Hoop Scheffer recently wrote, “is not an island”. The challenges that Kabul must face are connected with those of Pakistan, and the problems of Islamabad should be seen in light of its relations with India, without forgetting the weight Iran carries in this regional crisis.

As far as the Middle East is concerned, the Italian presidency of the G8 has already undertaken to coordinate humanitarian aid in relation to the crisis at Gaza. However, given the delicacy of the situation we cannot rule out a political signal from the G8 ,. Italy has already underlined three priority aspects in stabilising the Gaza Strip,. First, the aspect of Palestinian reconciliation, with the aim of strengthening the Palestinian National Authority (PNA) and reuniting the Palestinian territories under a single Authority. Second, the aspect of humanitarian aid and the reconstruction of Gaza, also through the conference that Egypt has convened for early March to which Italy will contribute to as co-sponsor. Finally, the aspect of the reopening of the Crossings starting with the one at Rafah, for which the European Union has already declared itself ready for a redeployment of the European Union Border Assistance Mission (EUBAM).

At the moment, these appear to be the preconditions—under the stimulus of a renewed and determined commitment of the American administration—to the rapid resumption of the peace process and to the creation of a Palestinian state alongside Israel. Two states co-existing in security and peace.

The five topics that I have just illustrated, though very different in nature, share one least common denominator that I wish to emphasize here: security. Each of the problems that I have touched upon evokes a different aspect of the concept of security, which goes to show how profoundly the concept has changed and the multifaceted profile it has acquired. “To produce security” in the time of globalisation, in other words, means to confront multiple and interrelated challenges, asymmetrical threats, and enemies that are not always identifiable. Today, efficient police forces no longer suffice to make citizens feel secure. We also need to be able to provide answers to the current financial and economic crisis, to the environmental challenge, and to the risks of nuclear proliferation. We also need to be engaged far from home, to participate in the most important international peace-keeping missions, because the borders between the concepts of personal, national, and international security have blurred considerably, to the point of creating broad areas where they overlap.

Italy is fully aware of this new reality and ready to make its contribution to global governance reform and improved security for all. We also have all the necessary requirements to do so: not only as President of the G8 in 2009, but also as a founder state of the European Union, a key partner in NATO and of the United States, and one of the main contributors to the United Nations. It would be worth emphasizing that Italy has gone beyond its “Cold War dimension”. Up until a few years ago our country had a fundamentally “regional” mission in matters of foreign policy. Its sphere of action was mostly defined by the Euro-Atlantic community, the Balkans, and by the southern shores of the Mediterranean. In this globalised world these points of reference are still valid but the regional dimension no longer suffices to qualify our international mission.

Without giving in to the unrealistic ambition, that it needs to be everywhere present, 21st Century Italy must nevertheless adopt a global vision of its international role. There is a need now for a foreign policy that is both active and enterprising, capable of defining the country's priorities in order to prevent crises and protect our national security interests, to compete effectively on economic and political levels, and to maintain and strengthen our position among “the powers that count”.

Essential , in any case, to our foreign policy's claim to a global dimension is the political growth of the European Union. The more the EU becomes a protagonist on the international plane, the greater will be the capacity of Italy to shoulder its own increased responsibilities in the world. We, therefore, need a global Europe capable of contributing to meeting the new challenges facing the international community, as in fact occurred—for example—on the occasion of the recent crisis in Georgia. A cohesive Europe willing to exert its political leadership; a serious and reliable partner of the United States of America, beginning with the sectors of defence and security.

Illustrious Rector,
Dear students,
Ladies and Gentlemen,

I could not conclude a speech in such a prestigious academic context without underscoring that the future of globalisation, our capacity to grasp its opportunities while minimising its intrinsic risks, depends above all upon the quality of the ideas and the values that we turn to for inspiration. In this sense, I wish to recall that Perugia is the seat of the World Water Assessment Programme (WWAP), a high-profile scientific initiative dedicated to the study and deepening of our understanding of one of the most topical of global challenges, that of water resources. The importance of WWAP seems to have been underlined in these very days at the meeting of the United Nations Committee for water, hosted in the offices of the Secretariat.

I am convinced that that Secretariat, as well as these university lecture halls—where each day intelligent proposals from every part of the world meet in Umbria, a region historically dedicated to peace, universal values and dialogue between cultures—may well produce the starting point and the proposals that are later translated into political choices for building a fair globalisation that is finally perceived by all as a factor in growth and development. The task that awaits you each day, teachers and students, is therefore at once difficult, vast, and exciting. And for this reason I wish to end by extending to all of you my best wishes for the work ahead.

Source: http://www.esteri.it/MAE/EN/Stampa/Sala_Stampa/Interventi/2009/02/20090204_Intervento+Ministro_Perugia.htm?LANG=EN