HC Deb 25 February 1969 vol 778 cc1262-3
20. Mr. St. John-Stevas

asked the Minister of Overseas Development whether he will make a statement on British Government policy in regard to assisting the work of the World Bank to aid under-developed countries.

Mr. Prentice

Her Majesty's Government strongly support the work of the World Bank and its two affiliates, the International Development Association and the International Finance Corporation, whose activities are now mainly directed towards assisting developing countries. We welcome the Bank President's plans to increase the group's lending programme, and his proposals for a greater flexibility in the use of its resources.

Mr. St. John-Stevas

Can the Minister say what concrete plan the Government have to increase the British contribution to the World Bank and its subsidiaries in order that the maximum advantage may be taken of Mr. McNamara's dynamic leadership, which, for the first time in recent years, offers a guarantee that money raised will be well invested and well spent?

Mr. Prentice

The expansion envisaged by Mr. McNamara takes the form partly of the activities of the main bank, which raises its money on the world money markets, and partly of the activities of I.D.A., which gets a Government contribution. We have pledged our share to the higher replenishment of I.D.A. for the next three-year period.

Mr. Braine

The right hon. Gentleman will recall that we passed the legislation replenishing our contribution last summer. May I ask whether he can say anything about the other donors? For example, what have the Americans done so far? Is this a matter which is being discussed with President Nixon while he is over here?

Mr. Prentice

Most of the other donors ratified the agreement. The outgoing United States Congress did not do so. I am hoping that the new American Congress will be able to consider this matter before long. In the meantime, a number of leading donor countries, including Britain, have committed their first year's contribution towards the higher replenishment so that I.D.A. activities can continue.

Mr. Carter-Jones

Does the Minister agree that the most vital thing concerning I.D.A. and the use of the administrative skills of Mr. McNamara in aid development is to make sure that the American Government are made aware of the importance of replenishment now?

Mr. Prentice

I hope that the American Government will take a view of this matter similar to that of Her Majesty's Government and that the American Congress will follow suit.