HC Deb 11 November 1998 vol 319 cc352-4
2. Mr. Steve McCabe (Birmingham, Hall Green)

What steps her Department is taking to support conflict prevention and post—conflict reconstruction. [57801]

The Secretary of State for International Development (Clare Short)

We aim to prevent conflict through long-term development programmes that bring benefits to all. We are also pursuing targeted strategies of conflict reduction such as improving the international machinery for dispute resolution and conflict prevention, combating small arms proliferation and other measures to limit the means of waging war.

In post-conflict countries—such as Rwanda, Liberia and, increasingly, we hope, other countries in Africa—we seek to promote sustainable peace through development and demobilisation of troops, which includes their giving up their guns and getting a chance to work, and, where appropriate, security sector reform. We are also pressing the International Monetary Fund and the World bank more rapidly to bring post-conflict countries into the heavily indebted poor countries initiative.

Mr. McCabe

Does my right hon. Friend agree that, in post-conflict reconstruction, we should not offer aid or assistance to military regimes, wherever they may be, unless they give a clear commitment to democracy, economic reform and reform of their security services?

Clare Short

An interesting World bank report on that subject was published today. In general, the Government's policy is to set up our major programmes with Governments who are committed to poverty reduction. Progress in development is made when we back Governments who have their own reform programmes. People who are badly governed and living under dictatorial regimes are often some of the most oppressed and poorest in the world, and we do not turn our back on them. We can provide help by using non-governmental organisations and trying to build up civil society so that people can demand reform.

Long-term development requires a Government committed to development. Military regimes that oppress are not so committed. We are increasingly trying to help with demobilisation and security sector reform so that armies are responsible to the civil power and there are fewer chances of coups and destabilisation.

Mr. Bowen Wells (Hertford and Stortford)

Has a World bank trust fund been established to give quickly disbursing grant funds to post-conflict countries and countries that have experienced a terrible natural disaster, such as Nicaragua and Honduras? Will the money be used to service outstanding international debt and will the £10 million that has been announced for Nicaragua and Honduras come from the Treasury reserve or the Department for International Development reserve?

Clare Short

We do not need a World bank trust fund for quickly disbursing disaster relief. The World bank has reorganised its resources in the region and made $200 million available in very quick disbursing loans to deal with the emergency. It does not need a trust fund; that can be done within the bank's existing organisation.

The purpose of the trust fund is to deal with debt. We would prefer all the creditors to agree to suspend repayments, but it is extremely unusual to obtain such agreement from the international financial institutions. Most of the debt is to the Inter-American Development bank. Failing such an agreement, the trust fund will help to pay off the costs of the debt while the countries concerned get reorganised. We have proffered money for that and Norway has agreed to join us. The World bank is examining that and other methods to ensure immediate relief on the payments.

Dr. Phyllis Starkey (Milton Keynes, South-West)

Among the areas in need of post-conflict reconstruction are the areas controlled by the Palestine National Authority and the areas likely to be transferred to it under the Wye agreement. I know that the Under-Secretary has recently visited the region. Is the Department actively considering further action to help to construct a functioning economy and civil society in the Palestinian areas?

Clare Short

My hon. Friend is right. My hon. Friend the Under-Secretary has just come back from a visit to the west bank and Gaza. I am sure that my hon. Friend shares our view that the slow pace in the peace process is disappointing, and that the growth of poverty and economic decline for the Palestinian people, when they are not allowed out to work in Israel, is extremely worrying. We are doing all that we can to strengthen the United Nations Relief and Works Agency and to help the Palestine National Authority to put in place systems that improve governance. We hope that matters will improve.

I am pleased to tell the hon. Member for Hertford and Stortford (Mr. Wells) that the extra money came from the Treasury; otherwise; poor people would be paying off the debt of other people.

Rev. Martin Smyth (Belfast, South)

I welcome the steps that the Department is taking to help in post-conflict situations. Has the Department any role in giving guidance to individuals who seek to play their own part in that, and who may often be misled? Money that is given to help people in a crisis may not reach its intended destination. I have in mind an issue that arose recently in connection with Iran Aid.

Clare Short

The hon. Gentleman is right to say that one of the terrible features of crises, internationally or at home, is that there are often people who raise money and then misuse it—they appeal to the generosity of others and spend the money improperly. We do not have a formal system to deal with that, but the disaster emergency committee in Britain groups together charities that are making appeals. It has now agreed that only NGOs working in the relevant country will receive the fruits of that appeal. That means that money should be safe, and I suggest that people give money through those organisations.

I cannot reply with authority to the hon. Gentleman's point about Iran Aid, as I am not familiar with the matter. If he will drop me a line, I shall look into it and get back to him.