§ 6. Mr. Desmond Swayne (New Forest, West)If she will make a statement about her policy on the provision of aid towards heavily indebted poor countries. [69878]
§ The Secretary of State for International Development (Clare Short)There are 37 countries that are eligible to qualify for debt relief under the heavily indebted poor countries initiative, because they are so heavily indebted that their debt can never be paid and is creating a barrier to reform. Some 26 countries have qualified and receive $62 billion of debt relief. The process has led to improved economic management and increased social spending. The remaining 11 countries have serious problems of conflict or bad government, but we hope to make progress with them, too.
§ Mr. SwayneI thank the Secretary of State for her answer. Does she agree that improvements in trading arrangements for those countries will be of much greater benefit than any direct aid that can be given? What is she doing to improve the rules that govern world trade to the benefit of those nations?
§ Clare ShortI agree with the hon. Gentleman that improved trading opportunities for poor countries are crucial to their economic growth, which is essential to the reduction of poverty. I do not agree that improved trading opportunities are an alternative to aid. Aid to help countries build up the capacity of their Government systems, increase their capacity to negotiate trade agreements, and have a thriving private sector that can take up those opportunities is also key. We are doing what was agreed at Doha. A deal was agreed that would really enhance the training opportunities of developing countries; now we must ensure that that is delivered.