Bill Gates: Rich Countries Must Honor Their Commitments

INTERVIEW: On Thursday, billionaire and philanthropist Bill Gates will present his report on development commissioned by President Nicolas Sarkozy.

LE FIGARO: What is the main message that you want to get across at the G-20?

BILL GATES: In Cannes, and it is my great honor to be invited, I want to show that even in turbulent times, we can improve the conditions of the poorest populations. Rich countries must honor their commitments on aid, to devote 0.7 percent of GDP to aid between now and 2015, which would bring in $80 billion more each year, and spend this aid more intelligently, by focusing on innovation. Countries with strong growth, like Brazil, China or Mexico, that have succeeded in reducing poverty levels, can bring their expertise, their capacity for innovation and their human resources. As for the poorest countries, they must also mobilize their internal resources more, by increasing their fiscal income and fighting corruption. The law on revenue transparency in the mining and oil industries is a positive point.

President Sarkozy asked you to work on innovative financing methods. What do you propose?

I suggest three types of taxes. The first tax, on financial transactions, is a useful tool, provided that the rate applied is not too high, to avoid capital flight. I was fascinated to learn that London and Hong Kong, which both have major financial sectors, already apply similar taxes that bring in substantial income. I propose to tax shipping and aviation and to increase the tax on tobacco, which will also have a beneficial impact on health.

You suggest that the financial tax could only be applied by some countries?

It can take several forms, according to the rate, the base. We could have a universal tax. But what the British case shows is that it is feasible depending on the threshold applied. If France and Germany were to copy the British, that would help them to reach the bar of 0.7 percent of GDP. Even if hundreds of billions of euro were not raised, the British tax brings in $5 billion each year. When it comes to saving a life with a vaccine or AIDS treatment for a few hundred or thousand dollars, the impact is considerable.

In your report, you place a great deal of emphasis on the role of innovation and emerging countries?

Innovation has a direct impact on development. These countries need new seeds due to climate change, new vaccines to respond to epidemics and new tools for farmers. Partnerships need to be developed between rich and emerging countries to help the least fortunate. We, the foundations, can assist in this. There are already initiatives in Brazil related to soybeans, or in China related to rice. These countries, which received aid in the past, have become donors.

Why are agriculture and health priorities?

The aim is to help the poorest countries to become autonomous in a sustainable way. Agriculture and health are essential to reaching this goal. The key issue is to improve conditions for a growing population, in particular by reducing infant mortality, helping mothers to have fewer babies and improving nutrition and health for better development of individuals. Basic farming is a way toward stability; furthermore, it allows more money to be invested in education and infrastructures.