§ 38. Mr. Ian TaylorTo ask the Secretary of State for Foreign and Commonwealth Affairs what weight is being given to sound economic management as a criterion for aid programmes to any country.
§ Mrs. ChalkerSound economic management is a very significant factor in assessing whether our aid can be used effectively in any country.
§ Mr. TaylorIs my right hon. Friend aware of the contents of the International Monetary Fund report on the Soviet Union which indicates that, with the failure of perestroika and the failure of the Soviets to introduce proper market mechanisms, giving aid to the Soviet Union is almost like throwing money into the Volga? Does she realise that this report has principles in common with our aid programme elsewhere in the world, including Africa? Is it being studied carefully?
§ Mrs. ChalkerI believe I am right in saying that Jean-Michel Camdessus, the president of the IMF, has set up a committee to consider the report's conclusions and recommendations. Our assessment is that it is a very valuable report.
In answer to my hon. Friend's second question, I recommend that he looks at the World bank's special programme for Africa proposals for the second phase. These show how, when due allowance is made for the statistics, the countries that follow a strong economic reform programme perform rather better than those which do not bother to do so. It is a lesson for all concerned that sound economic recovery programmes do bring success, even though slowly.