§ 3. Mr. Andy Reed (Loughborough)What representations she has received about the impact of the collapse of coffee prices on poverty reduction in Ethiopia. [104777]
§ The Secretary of State for International Development (Clare Short)Coffee is Ethiopia's largest export, grown mostly by small farmers. The fall in prices, which is very large, has cut their income and, of course, increased poverty. It has also reduced the capacity of Ethiopia to borrow abroad to finance essential investment: it is one of the poorest countries in the world with a GDP of $100 a head. That highlights the importance of Ethiopia diversifying exports. My Department has organised advice from UK retailers to help develop Ethiopia's horticultural sector. Prime Minister Meles is working to ensure that Ethiopia can learn from reform in this sector and then make progress in diversification in other sectors.
§ Mr. ReedI thank my right hon. Friend for that reply. She clearly agrees with me that Ethiopia, as one of the 274 poorest countries in the world, cannot survive these devastating reductions in coffee prices. Does she agree that we need to look at radical extra measures to ensure that we can raise those prices? First, we could use the €750 million available in the European Union. Secondly, we could help the International Coffee Organisation to drive up standards. Thirdly—this is a radical suggestion—we could assist in destroying some of the sub-standard stocks held around the world to help drive up prices.
§ Clare ShortI agree that this is a serious problem. The old way of dealing with things, however, which was to compensate countries for a drop in prices, paralysed them into growing crops that were not taking them forward. That led many poor countries to be reliant on commodities that are constantly falling in price. We need changes in trade rules, so that countries can process their products, get more value added and diversify, making available aid to support them in the diversification process. I agree about the seriousness of the issue, but the way in which we deal with it must help these countries go forward, not paralyse them in declining sectors.
§ Mr. Laurence Robertson (Tewkesbury)As the Secretary of State knows, I led an Inter-Parliamentary Union trip to Ethiopia in December, where I saw at first hand the problems created by the drought. Despite the understandable focus on Iraq, will she nevertheless assure the House that she will ensure that Ethiopia receives all the food aid that it has been promised as quickly as possible?
§ Clare ShortYes, indeed. The drought is very serious. Fifteen million people are affected. We must provide support, but not in a way that destroys local agriculture. Constant handouts destroy markets and destroy recovery, and there has been too much of that in Ethiopia. We are providing big support, and I have given an absolute undertaking, with which I am sure Members on both sides of the House would agree: we must stand by the people of Iraq but not at the cost of people in need in poorer parts of the world. We will not withdraw any support from crises in Africa or from our programmes for poor people anywhere. Our support for Iraq must be additional.