§ 5. Mr. Jim Dobbin (Heywood and Middleton)What progress she is making in enhancing the role of the international financial institutions in development. [67507]
§ The Secretary of State for International Development (Clare Short)Since May 1997, we have been working to increase the focus of the World bank, the regional development banks and the International Monetary Fund on human development and poverty eradication. I frequently meet the presidents of those institutions to press that case. We welcome the commitment of the World bank and the African Development bank to the international poverty eradication targets and the IMF review of enhanced structural adjustment programmes which recognised the need to protect spending on health and education.
§ Mr. DobbinI thank my right hon. Friend for that reply. Latin America has dreadfully high levels of poverty and inequality. What is her Department doing to help to alleviate that?
§ Clare ShortMy hon. Friend is absolutely right. Latin America has the most inequality of any area on the planet. It is a middle—income area with vast natural resources, high levels of education and capacity and desperately high levels of poverty. It has to deal with inequality if the poorest are to be lifted out of poverty. We are a 921 shareholder in the Inter—American Development bank, which does more lending in Latin America than even the World bank. On Monday, we had a seminar in London with the president and chief economist of the Inter—American Development bank to discuss those questions and to drive forward an agenda for Latin America that will systemically reduce poverty.
§ Mr. Nick St. Aubyn (Guildford)A multilateral agreement on investment has a vital role to play in raising living standards in the developing world. Why has progress on such an agreement slowed since the Government came to power and what is her Department doing to promote it?
§ Clare ShortI am afraid that the progress of the multilateral agreement on investment has not slowed; it has completely collapsed. The French have pulled out and there is now no prospect of that agreement being reached. I agree with the hon. Gentleman that an international investment agreement—particularly one that protects the interests of developing countries and gives them access arrangements so that they can attract more inward investment—is highly desirable and a key target for achieving faster development in the poorest countries. Negotiations now move over the World Trade Organisation and are in an analytical phase.