§ 2. Mr. Biffenasked the Minister of Overseas Development what volume of private capital was invested in developing countries and multilateral agencies during 1728 1966; what percentage change this represents from the corresponding figures in 1965; and what is the expected figure for 1967.
§ Mr. PrenticeThe estimated value in 1965 was £148 million. For 1966 a provisional estimate of £133 million is available. Both these figures are liable to substantial revision and it is too early to say whether the difference of 10 per cent. between them reflects the true position. No information for 1967 is yet available.
§ Mr. BiffenIn view of the widespread and well founded belief that the transfer of resources to developing countries is far better entrusted to private than to public agencies, is it not to be regretted that even the tentative figures which the right hon. Gentleman is able to present to the House show such a sad decline?
§ Mr. PrenticeDeveloping countries need a flow of both official aid and private investment. Neither one can do the total job. As for the figures, the hon. Gentleman might like to know that the provisional estimate for 1965 proved to be wrong. The final figure was 50 per cent. higher than the provisional one. So it is really too early to draw conclusions from the figures which I gave.
§ Mr. BraineWould the Minister not agree that the Government's general policy of inhibiting additional investment overseas is not in the best interests of the developing countries?
§ Mr. PrenticeIt is not the Government's policy to inhibit private investment in developing countries.