HC Deb 24 October 1983 vol 47 cc16-7
Mr. Arnold

asked the Secretary of State for Foreign and Commonwealth Affairs what further plans he has for promoting private investment in the poorer countries.

Mr. Raison

There are a variety of measures already. My officials are considering with other Departments whether there is more we can usefully do on the subject. If my hon. Friend has any suggestions we shall certainly examine them carefully.

Mr. Arnold

Will my right hon. Friend confirm that the promotion of private investment in poorer countries is a major part of his responsibility and that he proposes to take the lead in Whitehall in co-ordinating policy in this regard?

Mr. Raison

Yes. I entirely agree with my hon. Friend about the importance of this matter. The Government are working — effectively, I believe—in this respect. We have been responsible for the negotiations of investment promotion and protection agreements, which can be of considerable value. I believe that developing countries would often do well to rely less on short-term bank loans and more on direct private investment.

Mr. George Robertson

If the Government can shrug off their sustained complacency in this matter they will surely realise that private capital can only scratch the deep problems besetting the poorest countries of the world. Surely only international action by Governments can get to the root of the problems, which are caused by ludicrously high interest rates and low commodity prices. When will the Government wake up to that fact?

Mr. Raison

The Government are in no sense complacent about this matter. I believe that private investment can play a useful part, but, as I have already made clear this afternoon, we also recognise the great importance of what the IMF and the World Bank are doing, and we are playing our part in that.