§ 8. Mr. Dennis Canavan (Falkirk, West)What recent discussions she has had with the World bank about the bank's role in international development; and if she will make a statement. [62749]
§ The Secretary of State for International Development (Clare Short)I frequently meet the president of the World bank and his officials. We have been working since May 1997 to increase the bank's focus on human development and poverty eradication. In particular, we are trying to persuade the bank to make the international poverty eradication targets the basis for its agreements with the Governments of developing countries. The Chancellor of the Exchequer and I submitted a joint memorandum to the recent annual meeting of the bank and the fund, stressing the need for the institutions to co-operate more and to take more account of human need in emergency situations.
§ Mr. CanavanWhat response has my right hon. Friend received to the letter that she and the Chancellor of the Exchequer submitted to the World bank, the International Monetary Fund and the Inter-American development bank? Were any specific measures suggested to reduce 958 the debt burdens of some of the countries that were worst hit by Hurricane Mitch? What is the World bank trust fund doing to help the hurricane's victims, particularly in Honduras and Nicaragua?
§ Clare ShortI am pleased to be able to tell my hon. Friend that, when the crisis hit, the World bank immediately recycled the money available to the region so that no money had to be spent paying debt while other long-term arrangements were put in place. The trust fund that we proposed, and to which we made available £10 million, is now at £100 million. A team of experts from the bank is meeting with experts from the Inter-American development bank to provide the resources for reconstruction and the rescheduling of debt. In addition, the Paris Club—which deals with export credit debt—has agreed a moratorium on payments for the next three years. The process is not complete, but there has been fast action to assist reconstruction and to make sure that those countries do not have to pay out money in debt repayment when they need to reconstruct.
§ Dr. Jenny Tonge (Richmond Park)I am sure that the Secretary of State is aware that, according to the latest UN AIDS report, AIDS has now overtaken malaria as one of the biggest killers in the world. In many parts of the world, 25 per cent. of the work force are infected, and that is seriously affecting the economic development of those areas. What talks has the Secretary of State had with the World bank to support pharmaceutical companies which may be able to develop and carry forward an AIDS vaccine, which is really the only hope that the world has in terms of the disease?
§ Clare ShortThe hon. Lady is right. Some 35 million people in the world are infected with the AIDS virus. Ten per cent. of all new infections are babies infected by their mothers, and most women infected have only ever had one sexual partner—their husband. Some 40 per cent. of infections are of young women. The epidemic is bad in Africa, but it is spreading across Asia, where we are at the beginning of an even worse epidemic.
An AIDS vaccine is possible and, hopefully, could be available within six years. However, it will not be brought to market for the strains that are prevalent in Africa and Asia without some intervention because the countries are so poor that they would be unable to pay for the vaccine. As the hon. Lady knows, we are talking to the World bank about arranging measures so that the science is taken forward and a product is brought to market.