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In addition, the scheme also provide for financial assistance upto Rs. Ist January, Packaging for Exports Role of packaging for exports has gained much significance in view of trends in the world markets. The need for better and scientific packaging for exports from small sector was recognised long back. These programmes are organised in association with Indian Institute of Packaging which has requisite expertise on the subject.

Basic objective of these programmes is to generate the much needed consciousness in the industry and to educate the entrepreneurs about the scientific techniques of Packaging. However, bar code topic is added in the said programme.

Export Promotion from the small-scale sector has been accorded a high priority in the India's export promotion strategy. Apart from the number of incentives and facilities to small-scale exporters, the following plan schemes are in operation for achieving growth in exports. Under the scheme, exhibits of the selected export-worthy units are displayed in the exhibition that provides an opportunity to MSEs in demonstrating their capabilities before the international community.

No aid strategy aimed at human development in the Third World can neglect the environment, for there is ultimately a fundamental link between a healthy environment and a healthy society and economy.


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It is no coincidence that the vast majority of the world's poor live in the most ecologically vulnerable areas of Latin America, Asia and Africa. In these societies, there is no choice between rapid economic growth and environmental protection. Indeed, growth is not an option but an absolute necessity. Many choices that degrade the environment are made not because of lack of concern for the future, but because of the imperative for immediate survival.

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As the Human Development Report explains, "it is not the quality of life that is at risk - it is life itself. The countries of the North and South define environmentally sustainable development in different ways. The industrial states focus on such "global change issues" as the depletion of the ozone layer and global warming; the Third World, on the other hand, is more concerned with localized issues such as soil degradation and polluted water.

Clean water and safe sanitation, along with adequate food, are the foundations of human development. But the demands of poverty often clash with the environment, and vice versa. The poor, for example, overuse their marginal lands for fuel wood and for subsistence and cash-crop production. This endangers their physical environment, which in turn reinforces their poverty and threatens the health and the lives of their children. It is a vicious cycle. The industrialized countries must come to terms with this connection between the environment on the one hand, and poverty and human development on the other.

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Global ecological security, at whatever level, can be seen as a unifying link rather than a divisive issue between the North and South. Allen Weinstein of Washington's Centre for Democracy has stated that "people cannot afford not to have a democracy. It is not a luxury, it's a necessity.

Only in a political system that recognizes the potential of people can development, in all its myriad forms, truly take place. Most experts, for example, agree that, given time, democratic government will further economic development by increasing demand and productivity and enhancing income distribution. It also improves the quality of life and strengthens human development. The United Nations Development Programme has stated bluntly that "human development is incomplete if it does not incorporate freedom.

Democracy unleashes the creative energies of the people and gives them perhaps the greatest freedom of all, the freedom to make their own choices. Ultimately, "people are the best advocates of their own interests - if they have the opportunity to do so. Ensuring full participation in the community and in the nation is thus often the best route for reform-minded governments to take. Once again, countries such as Canada, steeped in the democratic tradition, have a critical role to play in ensuring that stable democratic governments are established in the Third World. All forms of ODA will help developing countries strengthen their democratic institutions, but technical assistance is perhaps the most critical of all.

Many of these countries have absolutely no democratic legacy whatsoever, and for that reason need to be taught the fundamentals of democratic government and human rights.

Whether drafting constitutions or helping organize and monitor elections, the developed countries can lend vital assistance. At the same time, those countries that consistently refuse to embrace democracy and continue to abuse human rights, can be singled out. Former Prime Minister Brian Mulroney made it clear that Canada would channel its aid increasingly to those countries that respected basic freedoms.

He insisted that Canada would "not subsidize repression and the stifling of democracy. As we have seen, there is a growing consensus in the aid community that a considerable portion of the international aid budget should perhaps be restructured to focus on human development concerns that help the poorest elements of Third World societies. The first step in ensuring this is to target the poorest countries.

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For many years one of the basic motivations of aid donors was the wish to win friends in the cold-war confrontation between capitalism and communism. In other words, the dominant objective was often political. With the end of the Cold War, it was expected that this trend would change and "need" would become the main criterion. However, this has not been the case.

A strong argument can be made that aid allocation is still suffering from the scars of the Cold War twice as much aid per capita goes to high military spenders rather than more moderate spenders and from a preoccupation with nation states rather than people. UNDP officials believe that ODA should be given to people rather than countries, and that it should go where the need is greatest, to the poorest people wherever they happen to be. Most development experts will acknowledge that the countries of Africa, especially those south of the Sahara, should be given priority in any concerted international effort to improve human development in the Third World.

Africa has the lowest life expectancy of all the developing regions, the highest infant mortality rates and the lowest literacy rates. Its average per capita income fell by a quarter in the s, and by the end of the century more than million people on the continent are expected to be below the poverty line.

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However, Canada's recent decision to cut bilateral aid to Central and East Africa - including Tanzania, Rwanda, Ethiopia, Kenya, Uganda, Madagascar and Burundi - and focus more on middle-income nations has raised eyebrows in Canadian aid circles. Since the mids, Canadian aid to Africa has dropped considerably, although it maintains a larger share of the ODA budget than any other region. While focusing on human development issues and ensuring that more aid goes to the poorest countries should perhaps be priorities for developed countries, a more fundamental problem remains.

Quite simply, without greater external financing, the development effort will continue to struggle. Many experts question whether this amount of ODA can truly make a difference for the one billion poor living in the Third World. At the same time, ODA budgets everywhere are contracting, partly because of tough financial times and partly because of the competing demands of Eastern Europe and the former Soviet Union.

Canada's ODA budget has suffered severe cuts in recent years; it is expected to drop to 0. Restructured aid, whether in greater quantities or not, could make a tremendous difference to the Third World, but the promotion of equitable development must still be conceived in a larger framework. For example, the developed countries must address the critical issue of the international debt. Many countries devote up to a third of their export earnings to service their debt or else accumulate unpayable arrears.

According to the World Bank, over half of the international debt is held by just 20 countries - with Brazil, Mexico, India and Egypt leading the way - but it is the least developed countries in regions such as Sub-Saharan Africa that have suffered the most social and economic damage. With the debt continuing to increase, these countries' troubles will persist long into the future, paralysing economic initiatives and blocking much-needed expenditure on human development.

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Throughout the s and early s, the industrial countries attempted to devise debt rescheduling and reduction schemes. The Brady Plan to reduce commercial debt and debt service was touted as a major turning point but it did little to help the least developed countries. The G7 industrial countries, including Canada and Great Britain, devised their own strategy in Toronto in and the Organisation for Economic Co-operation and Development OECD announced plans to help low-income African countries; however, once again, there was little progress.

Nature of Problems in Developing Countries

Some headway has been made recently. Despite repeated failures, it is imperative that the developed countries continue to search for a way out of the debt impasse. If the rich nations do not start transferring resources to the poorer nations soon, the Third World will have little hope for the future. Whichever path is chosen, debt relief must be pursued, and the developed countries should continue to throw their full support behind it.

In addition to debt relief, developing countries desperately need a liberal and expanded trade environment to encourage economic growth and human development. The North-South Institute claims that Canada fits in with this unfortunate trend. There are also heavy quotas on clothing imports - the largest single export category from developing countries in an industry which is a major stepping-stone to industrialization.

Reforming the world trading system requires concerted international action. Protectionist measures continue to increase as the Uruguay round is dragged out, and, with the continuing trend toward regional trading blocs - the European Community and the North American Free Trade Agreement, for example - there is a danger that markets might shrink even further.

Unless the trading interests of developing countries are protected through careful negotiations, these countries may become completely blocked out, with expected results. It is up to the developed countries to ensure that the Uruguay Round does not fail. The industrial countries of the world clearly have an important yet daunting task ahead of them as they attempt to help bridge the economic and social gap that exists between North and South.