§ 37. Mr. Deakinsasked the Secretary of State for Foreign and Commonwealth Affairs what information is available to him about the extent and role of United Kingdom private investment in the Third world in promoting improved living standards for local people.
§ Mr. RaisonIn 1983 British private financial flows to the developing countries totalled £2.6 billion. Such resource flows can and do produce employment and income in the developing countries and thus improve living standards.
§ Mr. DeakinsAs the primary purpose of private investment must be to make profits for those who undertake that investment from Britain and elsewhere, surely any benefits to local people must be a by-product, unlike aid from Government to Government and aid through voluntary organisations, which offers some guarantee that the aid will reach the people who matter.
§ Mr. RaisonThe hon. Gentleman is wrong about that. Firms which invest will be looking for profits, but their activities will undoubtedly create employment in the countries where the investment is taking place and help to increase prosperity. This is an important part of our programme.
§ Sir John PageDoes my right hon. Friend agree that private investment often sets a standard in developing countries which helps to drag local investment up to higher standards than it has been able to achieve before?
§ Mr. RaisonI agree with my hon. Friend. Britain has exceeded consistently the United Nations 1 per cent. target for the total of official and private flows of aid to developing countries. In 1983 we achieved 1.25 per cent.