Final Communiqué
Model G8 Youth Summit 2007
April 30th, 2007
Berlin

We met in Berlin for our annual Model G8 Youth Summit, 26 - 30 April 2007, to discuss
common positions on pressing international topics. In the discussions we were joined by
delegations of Brazil, China, South Africa and the UN.

The G8 member states believe in the principle of solving problems through diplomatic means,
underlining the importance of mutual respect and understanding and in the basic principles of
Human Rights and Democracy.

Alarmed by the ongoing atrocities in Sudan, we discussed measures to put an end to the
crimes against humanity being committed in Darfur.
Reaffirming our responsibility for development in Africa, we discussed the coordination of
development aid, promotion of good governance, and facilitation of sustained economic
growth, as well as the improvement of access to education.

Aware of the responsibility for environmental and climate protection, and bearing in mind the
consequences of global warming especially for developing countries, we discussed the issue
of climate change, stressing the importance of carbon dioxide emission reduction.
Aware of problems concerning resource scarcity, we discussed the issue of water supply.

Recognizing the increasingly global character of the world’s financial and economic systems
and focusing on the importance of stability in international financial markets, we discussed
hedge funds and global imbalances.

We welcome the offer of the Prime Minister of Japan to host our next Model G8 Youth
Summit 2008.


The Darfur Conflict

We, the G8 nations and observing countries, condemn the crimes against humanity being
committed in the Darfur region. While acknowledging the complexity and pluricausality of
the conflict and the involvement of rebel groups in the humanitarian crisis, we strongly
condemn the Khartoum government for its complicity in the killing of civilians, torture,
enforced disappearances, destruction of villages, rape and other forms of sexual violence, all
detailed in the “UN Report on Darfur” of January 25, 2005.
We urge the UN to reassess the situation in Darfur to determine the scope of the humanitarian
crisis and whether genocide is occurring. We applaud the International Criminal Court in its
recent decision regarding the crimes against humanity occurring in Darfur and encourage it to
continue its work.
We encourage research into the root causes of the failure of previous ceasefires and the Darfur
Peace Agreement and support attempts to widen further negotiations to include all involved
parties.

In order to stop the crimes against humanity being committed daily in Darfur, we strongly
urge the Sudanese government to accept the full implementation of the third phase of UNSC
Resolution 1706, entailing an expansion of the mandate of United Nations Mission in Sudan
to implement a hybrid AU-UN force that should monitor ceasefire resolutions and protect the
civilian population in Darfur. We pledge to provide training, logistical support, and material
assistance for such a force.

Given the Khartoum government’s repeated refusal to allow the deployment of this force, we
believe that measures must be taken to pressure the Sudanese government into providing this
approval. To this purpose, we have decided to enact a phased series of escalating sanctions in
order to encourage Khartoum to make efforts towards a resolution of the conflict.
The first stage of these sanctions, to be adopted immediately, is comprised of the freezing of
assets, a travel ban, and a visa ban on all relevant parties in this conflict leaders and their
families. In addition, we agree to immediately stop encouraging commerce in Sudan and
begin preparations for the implementation of a no-fly-zone over Darfur.

If, after approximately two months, the Sudanese government persists in its defiance of
Resolution 1706, then we will proceed in implementing a no-fly-zone over Sudan and begin a
complete divestiture in the country.
If, after approximately three months of enduring a no-fly zone, Khartoum persists in defiance
of Resolution 1706, then we shall adopt a full trade embargo against Sudan and urge other
countries, especially Sudan’s prominent trading partner China, to do likewise.
If, by January 1, 2008, Sudan remains opposed to the implementation of the third phase of
Resolution 1706 despite these measures, we will strongly encourage the UNSC to act
according to Chapter VII of the UN Charter and authorize a peacekeeping force without the
approval of Khartoum. The target date for such an intervention is February 1, 2008.
I
n acknowledgement of the sovereignty of Sudan and encouraged by the 2005 Comprehensive
Peace Agreement and other positive signals (particularly the acceptance of phase 2 of UNSC
Resolution 1706 by the Khartoum government), we desperately hope that such drastic
measures will not be necessary.
Moreover, any sanctions raised against Sudan will be in the context of a broader strategy of
diplomacy, development, and support of the African Union mission. Nevertheless, in light of
Sudan's consistent refusal to cooperate with the UN and end the violence, we believe that
strong measures are necessary to pave the way for a lasting peace.
We call upon our international partners to enact similar measures and use their entire
diplomatic and development capabilities to help resolve this conflict and stabilize Sudan and
the surrounding area.


Development

Acknowledging the progress that has been made in many parts of Sub-Saharan Africa but
being aware of the ongoing challenges, the G8 countries
- call upon the reprioritisation of Africa’s position on the G8 agenda.
- discussed the coordination of development aid, promotion of good governance,
facilitation of sustained economic growth, as well as the improvement of access to and
offer of education.
- accept as its overarching goals the reduction of poverty, the establishment of peace, and
the promotion of stability and long-term accountability.
- recognise emerging powers which will change the frame of development aid.

Coordination of development aid

Taking into consideration the diversity of actors operating in Sub-Saharan Africa, the G8
- agree on a code of conduct at the ministerial level. This would include
- a focus on setting incentives for aid recipients to encourage good governance and
to deter corruption.
- work in partnership at the international level, and especially with governments in
Sub-Saharan Africa, meaning above all the promotion of regional integration,
- an emphasis on decentralisation and micro level approaches.
- The contracting with civil society organisations and non-governmental
organisations (NGOs) who can effectively formulate macro economic policies
operating at micro economic levels. The G8 calls for the creation of a committee
of experts that would continuously evaluate these organisations. The committee
would be recruited from an international spectrum that is to be entirely
independent and impartial and that would ensure transparency and accountability.
- further call for pressure to be put on international funding bodies such as the World
Bank and the International Monetary Fund to fulfil their contracts with regards to self-
auditing and transparency,
- express their hopes that this code of conduct will facilitate a dialogue on the ground
leading to a better coordination in the field of development aid.

Promotion of good governance and coping with failed states

Deeply concerned about the humanitarian situation in failed states and the limits of our ability
to cope with them, we
- acknowledge the necessity for a strategy of how to cope with failed states, as this is the
basis for further development in these states.
- will put the question of how to cope with failed states on the security agenda of all G8
countries.
- call for a deepening of the relationship with regional organisations, notably the African
Union.
As a contribution to political stability, sustained economic growth and thus the reduction of
poverty, we
- actively support the promotion of good governance.
- encourage the development of conditions conducive to a vibrant civil society with a
special emphasis on the participation of people at the micro level. We specifically
promote political participation of the marginalized sector of African populations. This
would be done with the aid of advocacy non-governmental organisations and through
the endorsement of public responsibility.
- emphasize the importance of women, orphans, and vulnerable children in the social and
economic process.
- call for the continued development and strengthening of non-governmental
organizations’ capacity to advocate for the pursuance of the rule of law and “human
security”, with specific emphasis on human rights.
- suggest the creation of a database of all NGOs that focus on promotion of the rule of
law and making it accessible to all civil society organisations in pursuit of democracy.
- furthermore declare our willingness to provide technical and educational assistance.
- complement the outlined bottom-up approach with the strengthening of institutional
capacity and assisting the fight against corruption. Therefore, we promote proven
transparent and accountable governance through the incentive of debt relief policies,
and building public awareness regarding the implications of corruption through the
work of NGOs.

Facilitation of sustained economic growth

Acknowledging that economic growth through private and public sector development, as well
as well-functioning markets is a necessary although not sufficient condition for the reduction
of poverty, we
- reaffirm the commitments made at Glen Eagles 2005. We encourage an accelerated
deployment of financial aid in order to meet these respective targets.
- oblige to establish a development fund in each G8 country and to contribute to existing
ones.
- pursue a pro-poor policy, emphasising promotion of micro finance.
- encourage domestic and foreign investments in businesses.
- promote trade between African countries and foster regional economic cooperative
institutions.
- suggest the World Bank to adjust its microfinancing policy in closer cooperation with
the respective national banks.
- support institutions like the African Development Bank,
- strongly demand the equitable distribution of gains from exports of natural resources.
This can be done via the decentralisation of government, for example Brazil’s use of
participatory budgets.

Education

We encourage cooperation within the UNESCO and propose the implementation of the “Yo
Si Puedo” educational initiative in all African nations in order to eradicate illiteracy.
Furthermore, we call for the promotion of primary, secondary, and higher education, as well
as life long learning. Development studies and entrepreneurial skills should be introduced as
compulsory elements to educational syllabuses in order to promote awareness about
development issues and economic development.


Environment

We discussed the issues concerning climate change, stressing the importance of the reduction
of the emission of carbon dioxide, as well as coping with the consequences of global warming
and climate change, especially for developing countries.
Considering that climate change is happening, it is man-made and it will become increasingly
dangerous if action is not taken, we agree to encourage negotiations on a review of the Kyoto
protocol, also including the USA, to start urgently. We also call upon all countries, especially
the extended dialogue and other emerging countries, to take up their environmental
responsibility in the Kyoto protocol.

Reduction of GHG–Emission

Recognising the need to reduce carbon dioxide emissions in order to counter global warming
as soon as possible, we agreed on targets of the reduction of carbon emission from 1990 -
2020: Japan (10 %), Canada and Russia (15 %), USA and the EU-countries (20 %).
Furthermore we arrived at the consensus of a carbon emission reduction of 50 % by 2050 and
moreover agreed on having 20 % renewable energies in our energy diversification policy by
2020.

Deeply conscious of the necessity to act in all spheres of life, we recommend the following
initiatives:
- Technology, policy and information sharing (private sector, governments … )
- Reforming and restructuring of UNEP with a strong executive power to enable a more
efficient global response to environmental change, as well as recommending the
creation of a UN environmental organisation.
- Developing and implementing new, energy efficient, non fossil fuel technologies by
financial incentives such as tax breaks and feed-in systems

Global carbon emission trading scheme

Taking into consideration that successful policies function better within an international
structural framework, we draw attention to the importance of initiating a global carbon
emission market as soon as possible. We therefore encourage all countries to introduce a local
carbon emission trading scheme, modeled after the EU carbon emission market model. We
consider that developing countries are dependent on a growth of their economy and that we
need to find preventative policies for developing countries to avoid systemic abuse from other
nations.

Decentralisation of energy sources

We agree on encouragement for restructuring our demand of energy by decentralising the
energy sources on a national level. This will be dealt with through subsidising movements for
building up alternative energy sources on civil society, primary and secondary sector. We
believe that decentralisation could introduce competition to the energy market as well as
develop greener, local energy production units and lessen the dependence on energy
producers. Since the worldwide energy situation is showing itself increasingly unpredictable,
a decentralisation of the energy sources is essential to meet international energy demands.
Public information campaigns
Believing that energy efficiency is everybody’s responsibility, we suggest starting worldwide
information campaigns through the UNEP organ, dealing with energy efficiency in
households and private life. We encourage advertising the decentralisation of energy sources
with emphasis on access to subsidies for households.

Convincing private industries

Bearing in mind the necessity of involving the private sector to follow our carbon emission
reduction targets, we emphasise that investing now in renewable, sustainable and more
efficient energies will provide a competitive edge in the future since the change is inevitable.
Regional, national and transnational governing bodies should allow this technological change
through certain financial incentives such as tax breaks and feed-in systems. We consider the
drive for sustainable energy sources to be the unique solution to long term competitiveness
and gaining independence from finite and environmentally harmful energy sources.

Convincing other countries

Aware of the time sensitive nature of the matter and the tremendous cost implications of
inaction, we insist that attempts on countering climate change should begin now. It is
reasonable to believe that heading off a doubling of CO2 concentrations can be achieved at a
cost of about 1 percent of global GDP while the costs of coping with the consequences in the
near future will increase rapidly and be much higher than just 1 % of the GDP. We further
invite other countries to join our technology/knowledge transferring and sharing initiative and
cooperate in a contributive manner. We are engaged to privileged economic relationships with
countries which show themselves environmentally responsible. We wish to increase and
secure funds for developing countries.

Clean Development Mechanism

We encourage the development and increased use of Clean Development Mechanisms
reviewing regulations under the condition that greater financial and expertise commitment to
the CDM executive board as well as a better project assessment and auditing according to the
CDM Gold Standard are guaranteed. Only effectively working sustainability projects with
real effects on carbon dioxide emissions should be given permission.
Sustainable forestry management
Aware of the rapid deforestation issues surrounding emerging and developing nations, CO²
natural reabsorbtion by the environment is decreasing tremendously. Today 25 % of the
concentration of carbon dioxide in the atmosphere results from deforestation. We therefore
offer these nations sustainable development assistance, i.e. advice, finance and others. We
offer the policy of “cut one tree and plant two” to support reforestation efforts. Our companies
should make sure that a part of the consumer’s price helps pay for reforestation policies and
call upon governments to foster the introduction of environmentally focused taxes.
We call upon all people of this earth to assert our commitment to a greener and safer future in
the environmental responsibility and the general quality of life of its inhabitants.


Defence

US Ballistic Missile Defence in Eastern Europe

All the parties concerned, specifically Russia and the United States, agree on the following
issues:
-the number of missiles are limited to a maximum of 15 over 5 years
-all the parties concerned will have observers on the ground
-a working group will discuss the location in the European Union. The working group
includes all the concerned countries and will close within 6 months to one year from
convening all countries.

Efforts in Afghanistan

G8 countries agree that the priority now in Afghanistan shall be to develop the country’s
infrastructures and democratic structures to ensure stability and peace and that Human Rights
shall be upheld in the country and the regions.

Water Conflicts

We, the G8 countries, agree that all people should have access to water. The United Nations
(UN) should assume an important role in water supply. Since climate change is one leading
cause of water conflicts, a panel should be created to monitor and report on water supply in
affected areas. The panel will be comprised of industrialized nations for whom water
allocation is not a critical concern, and nations in which future water supply conflicts may
occur to better discuss and resolve those issues before conflicts arise. This panel needs to stay
flexible in terms of adapting to future situations by engaging in dialogue with potentially “at
risk” States. The panel shall have two tasks: providing background information regarding
water resources and conflicts, and negotiating between parties involved in an emerging or
current water conflict.

Maintaining Markets in Energy

We accept that every state has the right to cooperate with whomever they deem appropriate as
long as none of the G8 member states take any anti-competition or anti-market measures, such
as those measures that have been introduced by international energy organisations, when it
comes to energy distribution, its raw materials or technology. We also restate our
commitment to the mutual responsibility of producers and consumers of natural gas.

Small Arms

The G8 countries share a common view that small arms should not be supplied to countries
where they may be used against their own citizens or to precipitate a humanitarian crisis. We
further call for the United Nations to negotiate a treaty to regulate the supply of these
weapons. Such a treaty should include reprisals for those states who have signed it but fail to
live by its standards. The UN shall produce a definition of weak and failed states and shall be
competent to determine which states would


Economics

Aware that Intellectual Property Rights and the multilateral freedom of trade play an
increasingly important role in the global economy, we discussed these topics and came to the
following results:

Intellectual Property Rights (consumer and industrial products)

Our goal is to promote the development of technologies that will result in a more effective
way of combating the rampant violation of intellectual property rights. This is an epidemic
that has worldwide impact and must be addressed. We provide a multifaceted approach
including the following. First, the G8 nations firmly believe that consumers should have the
information necessary to determine if a product is authentic. We must provide support to
achieve this. The G8 nations propose that the creation of a seal of authenticity from our
collective decisions. The issuing of this seal would be delegated to an agency such as the
International Standards Office. The logic is that domestic standardization institutions and the
ISO will create a network or set of standards for corporations that are interested in
augmenting their current codes. Moreover, the respective national institutes taking advantage
of this complimentary standard will play a major role in the process of integration. Second,
we propose that a marketing campaign exposing the impact of counterfeit products, should
receive greater support and focus. The targeting of morally conscientious consumers may
provide a more effective means of reducing demand for these products. Third, the TRIPS
currently addresses general and broad issues, we have come to the agreement that focus is
needed in the area of pharmaceutical and industrial productions, i.e. automobile and airplane
parts, to specify these agreements for the key industries that are at the moment mostly
affected by the violation of IPR. In sum, we do not propose to replace existing agreements;
instead we hope to strengthen the existing system via the aforementioned points. Moreover,
we aim to present and adhere to an multifaceted approach that other nations can incorporate.

Doha Round

We are conscious that the conclusion of the Doha Round depends to a high degree on the
authorization of the US implementation in the Senate, which will be renegotiated in July
2007. This deadline could imply that the results of the Doha Round have to be finished in
order to come to an integration on national level by July 2007. We acknowledge that this
deadline is highly unfeasible. However, should the Doha round fail, we would face the severe
challenge of entering a world of increased protectionism. Having the situation in mind, we
strongly recommend to move forward with the negotiations of the Doha round with the hope
to come to an agreement in the shortest possible period of time.
Aware that agriculture plays a crucial role in multilateral agreements, we decided that, as far
as their authority allows, the European Union, the United States and Japan should lower their
tariffs on agricultural products. We commit to a liberalisation of market access particularly by
reducing quotas. In the same sense, it is imperative to reassess subsidies in a light of a fair
trade consensus. This consensus should include negotiations on internationally binding
quality standards in agriculture. This would serve as first liberalization signal and strongly
encourage other countries with high tariffs on agricultural products to follow and lower
tariffs, too. The positive effect of such an agreement would be that less developed countries
have the chance to enter the world trade more intensively by increasing the exports of
agricultural products to developed countries. Solving the agriculture issue within the Doha
round is the only way to advance the negotiations concerning trade liberalization in other
industries.


Finance

Focusing on the importance of stability in the international financial markets, we discussed
hedge funds and global imbalances.

Hedge Funds

Hedge funds are currently unregulated investment vehicles that use any strategy in order to
create value. Presently, they are open to restricted professional investors run by professional
managers focused on absolute returns.
They have contributed significantly to the efficiency of the financial system. Nevertheless, the
assessment of potential systemic and operational risks associated with these activities have
become more complex and challenging. Given the strong growth of the hedge funds, the
financial community needs to be vigilant.
We encourage the national financial authorities implement certain aspects of regulation.
These are:
- to set limits to the credit exposure of a single financial institution on one hedge fund.
- to disclose quantitative risk measures to investors and counterparties on credit,
liquidity and market risk. This would improve the transparency of the exposure profile
of individual hedge funds without forcing them to disclose their investment strategies.
- to follow the action taken by the SEC, and require hedge fund advisors to register with
the competent authority and comply with the regulations that apply to other registered
investment advisors.
We recommend to pursue these goals within domestic legislation.

Global Imbalances

Having examined the different key elements of global imbalances, we consider it important to
move towards more balanced economies, reflecting the underlying economic fundamentals
without curbing growth. Taking into consideration the individual responsibility and
sovereignty of the countries, we encourage:
- a gradual flexibility of the Chinese Yuan value.
- that emerging Asian markets strengthen confidence in financial institutions through
integrated efforts and dialogue led by China.
- a commitment to structural reforms in the European and Japanese economies enabling
them to react more flexibly in the global economy given demographic challenges.
- increases in exporting technology taking into consideration the issue of intellectual
property rights discussed more extensively from the economic point of view.
- the stabilization of financial systems. This may be explored by possibly extending the
role of the IMF into consulting services for emerging economies in the development of
their financial systems.