Africa (Hansard, 5 December 1994)

§ 40. Mr. Merchant
To ask the Secretary of State for Foreign and Commonwealth Affairs what percentage of the United Kingdom's total aid budget goes to Africa.

§ Mr. Baldry
We estimate that 39 per cent. of total bilateral aid allocatable by country went to Africa in 1993–94. Africa is also a major recipient of multilateral assistance, to which Britain makes a significant contribution.

§ Mr. Merchant
Will my hon. Friend confirm that Africa must benefit from the fact that, as he said, Britain is among only a handful of countries that have increased their overseas aid budgets this year and that, apart from development aid, Africa will benefit from the fact that Britain is among the lead countres in encouraging debt 19 relief measures for the most indebted—the poorest—countries as long as they pursue sound economic policies?

§ Mr. Baldry
My hon. Friend is absolutely right: we are increasing our aid budget. He is also correct in that Britain continues to take the lead in promoting debt relief to the world's poorest, most indebted countries. Our priority is to achieve implementation of the full Trinidad terms through the Paris Club, but we recognise that that will not be enough for a few countries.
That is why my right hon. and learned Friend the Chancellor of the Exchequer has called upon the international financial institutions to consider what more they can do for their poorest, most indebted members. He has proposed that the International Monetary Fund should improve access to, and the concessionality of, its loans to the poorest, most indebted nations. That would be financed by the sale of part of the IMF gold reserve. The UK is persistently in front in trying to relieve the burden of debt on the world's poorest nations.

§ Mr. Enright
Does the Minister agree that, in spite of his ludicrous cardboard cut-out, the amount of money going to Africa does not tackle in any way whatsoever the huge problems of that continent? Does he further agree that aid which should be going to Africa is going to central and eastern Europe? Is it not about time that we 20 stopped the poor paying for the poor? Will the Government take a lead multilaterally, unilaterally and bilaterally?

§ Mr. Baldry
I wish to make a number of points. Firstly, some of the aid lobby take the somewhat perverse position that, whereas aid to Afghanistan is virtuous, aid to Albania is not. Secondly, the amount of money allocated to Africa has been increasing and we have been focusing much of our aid programme on Africa, with considerable success.
Perhaps the hon. Gentleman will recognise that 10 years ago Uganda, for example, was in ruins. It has now been rebuilt. In the past six years, its growth rate has averaged more than 5 per cent. per annum. That is an excellent example of how Africans can help themselves with outside support. We have been a leading donor to Uganda: we disbursed £38 million in 1993ߝ94.
The position is similar in Ghana, which has pursued a programme of economic reform and returned to democratic rule. We actively supported the Ghanaian Government's efforts with aid of nearly £15 million in 1993ߝ94. We are committed to providing £100 million in aid to South Africa.
Of course, following the public expenditure survey outcome, we are now deciding the allocation of resources. I assure the hon. Gentleman and the House that aid to the poorest countries of Africa and Asia will be a clear priority in that process.