§ 50. Mr. Fisherasked the Secretary of State for Foreign and Commonwealth Affairs what talks he has had during the Summer Adjournment with the World Bank on the debt problems of developing nations.
§ The Minister for Overseas Development (Mr. Timothy Raison)My right hon. Friend the Chancellor of the Exchequer attended the annual meetings of the IMF and World Bank in Washington on 27 and 28 September. Officials in my Department have had many contacts with the World Bank.
§ Mr. FisherSo what practical steps will the Government take to help reflate world demand to increase developing countries' exports so that they can service and ultimately reduce their international debts?
§ Mr. RaisonThe Government have given maximum support to the IMF. I believe that the actions taken by the 16 IMF in conjunction both with the creditor countries and the debtor countries have proved valuable. Of course, the problem remains a substantial one, but progress is being made.
§ Mr. FormanIn Ministers' talks with the World Bank, have the Government pressed the American Administration to be generous in the next IDA replenishment?
§ Mr. RaisonWe have indeed done so and I hope that that will have effect in due course.
§ Mr. SkinnerWill the Minister accept that not only is the IMF scratching about for money, but the World Bank itself is almost on the verge of bankruptcy? Will he also accept that one of the main reasons why the poorest countries in the world are not getting the assistance that many Opposition Members would like to see is that most of the money coming from the IMF and some of that from the World Bank finishes up in the pockets of bankers representing middle-ranking countries, which are up to their necks in debt because of over-expansion and Americanisation during certain times in the past five or six years?
§ Mr. RaisonWe are doing all that we can to ensure that the next replenishment of IDA is an effective one, but the hon. Gentleman's latter remarks seem to bear little relation to the facts.