UK government policy is a major barrier to the fight against poverty, according a new challenge issued today by leading campaigns groups.

In a speech today (Wednesday 26 January), Gordon Brown will set out the government¹s agenda for international aid and development. In response, campaigners will demand a radical change of direction from the UK government on poverty and climate change.

According to the groups, the key areas where the UK Government and the rest of the G8 are failing developing countries are: international trade negotiations, promotion of privatisation in the South, combating climate change and the regulation of multinational companies. Current policies, they say, make the UK government and G8 part of the problem, not the solution.

Kirstie Shirra of WDM Scotland said:
"The government continues to push policies of privatisation and liberalisation on some of the world's poorest countries despite massive local opposition and evidence showing that this wholescale promotion of 'free trade' has actually increased world poverty. It is time the government heeded the calls of communities across the world and started acting in their interests, rather than those of big business."

Duncan McLaren of Friends of the Earth Scotland said:
"When the UK hosts the G8 summit in Gleneagles, the right issues will be on the table, but the wrong solutions. The UK and the rest of the G8 are all too ready to impose market liberalisation and privatisation on developing countries, even when those policies will seriously worsen the complex problems of climate change, poverty and inequality. Delivering sustainable development and saving the world's climate will take new radical approaches, not more of the same failed recipe from the G8."

The groups cite five key areas where the government is failing the developing world:

1) Trade negotiations at the WTO
The UK government has been at the forefront of pushing an aggressive free trade¹ agenda at the WTO, dismissing developing country pleas that they should be allowed to defend their infant industries from predatory EU and US multinationals.

2) Bilateral trade agreements
The UK also stands behind the damaging Economic Partnership Agreements (EPAs) designed to open up markets in African, Caribbean and Pacific countries, exposing small-scale producers to overwhelming competition from powerful multinationals.

3) Privatisation of services in developing countries
The UK has taken the lead in promoting privatisation of public services in developing countries, despite the increases in poverty this has brought. DFID has channelled millions of pounds from the aid budget to privatisation consultants.

4) Climate change
The UK has failed to control its own greenhouse gas emissions in the face of powerful industry lobby groups. It has also continued to use financial institutions, such as the World Bank, to fund fossil fuel extraction overseas. As one of the largest historic emitters of greenhouse gases, it needs to show the way by reducing UK carbon dioxide emissions year on year.

5) Corporate accountability
The UK government has undermined international calls to hold multinational corporations to account for their activities overseas, championing the voluntary alternative of corporate social responsibility¹ rather than corporate regulation.

For more information and interviews, contact:

Kirstie Shirra (WDM Scotland) 0131 557 0444 or
Duncan McLaren (FoE) on 0131 554 9977

Notes to editors:

1. Full details of the challenge to the UK government are available for download at http://www.foe-scotland.org.uk/nation/g8_2005_warning.pdf

2. Gordon Brown delivers his speech to the UNDP/DFID meeting at Lancaster House from 9.30am, Wednesday 26 January 2005.