20 July 2001

World Leaders in Genoa Discuss Global Problems of Development and Disease

By Wendy S. Ross
Washington File White House Correspondent

Genoa -- Leaders of the seven major industrialized nations and Russia at the annual Group of Eight (G-8) meeting are discussing ways to alleviate poverty and disease around the world, while violent demonstrations in this port city left one protestor dead July 20 and scores injured, including several journalists and Italian police officers.

President Bush "has been informed of the violence of the injuries and the death. The President regrets the violence, believes the violence is regrettable, the death is tragic, and the injuries to the protestors and to the police officers are highly regrettable," a senior administration official told reporters.

He went on to say, however, that the first day of the three-day summit continued as planned and that it was "a full and productive day."

The first order of business, he pointed out, was a three-hour working lunch and meeting at the 13th century Palazzo Ducale among the leaders of the world's seven leading industrialized countries -- the United States, United Kingdom, Canada, France, Italy, Germany and Japan.

Each of the seven leaders talked about the economic situation in his country, about what each government was doing to contribute to global economic growth, and what the World Bank and the other multilateral development banks could do to focus their activities on key social investments such as education and health care, the official said.

The G-7 statement released later in the day, he said, "embraced a set of reforms of the multilateral development banks that require better coordination among the banks, better internal governance and accountability and transparency within the banks, a review of their pricing policies, and a requirement that the banks look more closely at the governance situation in the borrowing countries."

Bush has proposed that 50 percent of the World Bank's activities with the very poorest countries be moved from loans to grants, the official said, so that there would be a permanent solution rather than a temporary solution to the problem of unsustainable debt.

"We were pleased that the G7 embraced this idea and, in fact, incorporated it into the G7 statement, which notes that the G7 will explore the increased use of grants for priority social investments, naming in particular education and health as well," the official said.

The G-7 leaders also agreed to ensure the successful launching of a new global trade round in November.

Following the G-7 discussions, Russia's President Vladimir Putin arrived to join the other heads of state and government in an event at the 16th century Palazzo Doria Spinola, formally announcing the establishment of a global fund to fight HIV/AIDS, malaria and tuberculosis.

The United States, the senior administration official noted, already has announced a contribution of $200 million to the fund. The United States, the official said, will spend roughly another $1 million to support the work of the United Nations secretariat overseeing the program.

Attending the AIDS event in addition to the G-8 leaders were United Nations Secretary General Kofi Annan, World Bank President James Wolfensohn, and the directors general of the World Health Organization, the U.N. Food and Agricultural Organization and the World Trade Organization.

An outreach dinner hosted by the President of Italy following the AIDS announcement included as well the leaders of Nigeria, South Africa, Algeria, Senegal, Mali, El Salvador and Bangladesh.

"It was a full day, and for the leaders a productive day in terms of the launch of the fund, the HIV fund, the commitment to reforming the multilateral development banks, embracing the notion of exploring an increased use of grants ... [to] the poorest countries, an endorsement of the launch of a new global trade round later this year, and a commitment to continuing to follow pro-growth policies at home," the senior administration official said.

President Bush arrived mid-morning from the United Kingdom where he and First Lady Laura Bush spent the night with Prime Minister Blair and his wife at Chequers, the Blairs' official country residence outside London.

Mrs. Bush on the first day of the Summit attended events at a U.S. military base in Aviano, Italy, and visited a children's hospital in Florence.

This year's G-8 meetings are being held under tight security, with official events all taking place inside a cordoned-off area of the old city.

Reports say Italian authorities have assembled a force of almost 20,000 police and military personnel to handle anti-globalization demonstrations.

Seven of the eight leaders are staying aboard a cruise liner anchored in the harbor. President Bush is staying at a hotel at the edge of the harbor.