§ 4. Mr. Malcolm Savidge (Aberdeen, North)If she will make a statement on progress in reforming the EU's development work. [123173]
§ The Secretary of State for International Development (Clare Short)We have been working since 1997 to try to improve the very poor quality of EU development efforts, which take up one third of my budget. I welcome the commitment of the new European Commission to reform. A statement of overall EC development policy and an action plan to implement the reform process are now being negotiated, but the impact of the promised reform has yet to be felt on the ground and there is, as yet, no plan for implementation.
§ Mr. SavidgeI thank my right hon. Friend for that reply. Is it true that over the past 10 years, the European Union has reduced spending on the poorest countries? If so, can that be explained or justified?
§ Clare ShortI am afraid that my hon. Friend is right: 75 per cent. of EU aid went to the poorest countries in 1987, whereas the proportion is now 51 per cent. That cannot possibly be justified. It arises from a fractured decision-making structure and lots of gesture spending, whereby large amounts are announced—often without any analysis of how the money will be spent or how it will promote development—in response to the political concerns of the day. That leads to extremely poor 276 development assistance, as has been demonstrated by all the evaluations that we have requested. We have a well argued reform agenda, but there is a long way to go.
§ Mr. Andrew Rowe (Faversham and Mid-Kent)Does the Secretary of State agree that to those of us who are glad to be members of the EU and proud of much of what it has achieved, its total failure to manage its aid budget is an obstacle to our support? Will she commit herself to doing her best either to ensure that the EU has the resources to put in place the administration necessary for the swift disbursement of aid, or to repatriate a large proportion of the budget that we provide?
§ Clare ShortI completely agree that such failures bring the EU into disrepute. The Commission and member states together provide 60 per cent. of worldwide overseas development aid and comprise the world's biggest single donor. If Europe had a clear vision of how to promote development in the poorest countries, it could be a major force for good—more powerful than any individual European country could be, because it could gather critical mass and exploit the international reach of all the countries of Europe. However, the EU's current performance is not good enough. As the hon. Gentleman knows, we are working hard on a reform agenda. Chris Patten said recently that if Europe cannot do better in the next few years, it should be less ambitious in what it asks member states to provide, perform well on that basis and then build up again. In that way, we might achieve a better quality effort.