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NO to opening up of all services: A case for GATS review
-Rosalina Muroyi
Paragraph 15 of the Doha declaration on Services outlined three major decisions pertaining to the General Agreement on Trade in Services (GATS). These are: re-confirming the negotiating guidelines that were adopted by the Committee for Trade in Services (CTS) on 28 March 2001, mandating the trading partners to submit their initial requests by 30 June 2002, and mandating trading partners to submit their initial offers by 31 March 2003. In the forerun to Doha, many developing countries had put forward their proposal to the CTS sounding their great concerns on issues such as implementation of articles IV and XIX of the GATS, need for an assessment of the liberalisation on trade in services, just to mention a few. From their side, civil society organisations (CSOs) had launched a campaigned named Our World is Not For Sale. This campaign raised the same issues presented to the CTS by developing countries, but in addition to that, it condemned the inclusion of basic services such as water, energy supply, education and health, under the GATS. None of these points appeared in the Services paragraph of the Doha Declaration. What is even more disturbing is the fact that not even a single developing country dared to raise its finger to amend these major omissions in this paragraph. But why did his happen? Were developing countries concerns before Doha not genuine? Were the CSOs raising falls alarms?

When asked by some CSO representatives, why they were silent about this paragraphs shortfalls, one Geneva-based delegate developing country member alluded to the fact that, enough debate had been undertaken in Geneva on this issue. He also said that developing countries amongst themselves, in Geneva, had agreed not to open new debate on services as this could also push developing countries to open new debate on other areas such as Agriculture and TRIPs and Access to Drugs, where developing countries felt that they had made considerable progress. The other point that this delegate made, was that, services were not of greatest concern to developing countries mostly because of their weak supply side. There could be other explanations to the silence of the developing countries on this issue, but however legitimate those reasons could have been at that point in time, that paragraph has given the developed countries and their allies (international financial institutions), a second chance to revive their colonial power.

With the fall in the efficiency in the provision of public services in many development countries, the silence of paragraph 15 of the Doha declaration on assessment and the threat of public services was blessing to the corporate-led agenda of the developed countries. Developed countries have their work cut out for them by the developing countries themselves. For example many African governments are publicly expressing their failure to efficiently run state monopolies that have for all these years been providing basic services to their nations. Thousands of people are dying by day without being able to access medical attention in the run-down state owned hospitals; millions of people go without water for days because governments are failing to maintain the old pipes that were installed before independence, power cuts are common place in the cities; fixed-line telecommunication systems are too congested as the state owned operator fails to meet the ever-increasing demand on the ground. There is no doubt, developing country governments are under enormous pressure and they see privatisation as their only salvation. International financial institutions, as allies to developed countries, are not making the situation any easier for the developing country governments. International donors are coming to the rescue of these developing countries with more reform packages under new names other than the widely criticised SAPs. They now call them Partnerships so that the targeted countries feel that they own both the process and the product. The developed countries cannot help but smile, for their guardian angel is really on guard. All they have to do is to play their cards right. And as usual, long-term planning is one of their strong points.

As they prepare their ground for intervention, the developing countries have made requests to developing countries to open up all these service sectors developing country governments are failing to maintain. By the time bi-lateral negotiations start, many of these sectors will be in the hands of the private sector and hence fully covered by the GATS. In the mean time, pressure will be building up from the developing country people against their governments as they have already started doing in South Africa, Central African Republic, Argentina, etc. They see their governments as their number one enemy for making the basic services inaccessible to them. The international institutions backed by the developed nations are then finding a ready audience to convince regarding how foreign direct investment can work miracles to the benefit of the poor.

The truth is that, the FDIs will not benefit the poor. All the benefits will go back to the already rich nations and their multinational corporations. But, the poor person is not aware of this. The poor person is only worried about his or her day to day survival. The poor person is not aware that he/she is just being a pawn in the game of economics. But why should developing country governments let this happen to their people? Why should other people who understand the game of this game of liberalization let this happen? Do we have options at all, or is this they way that it should be?

Just as the developed nations fought and won the territorial colonisation, so should they fight and win over economic colonisation. Leaving governmental responsibility to the mercy of liberalisation will not solve the problem of developing countries. Neither will public-private partnerships work to the benefit of the poor. The developing country governments should, with help from the civil society, rectify areas where they have gone wrong especially in the provision of basic services. Yes, it is a process that will need a lot of commitment and sacrifice, but it is the best option that would save all those in need from a never ending marginalisation through the multi-facetted GATS.


            
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