HC Deb 13 November 2003 vol 413 cc411-2
12. Ann McKechin (Glasgow, Maryhill)

To ask the Chancellor of the Exchequer if he will make a statement on new agreements arising from the annual World Bank and International Monetary Fund meetings to allow greater diversity and representation of poor countries on the boards of (a) the World Bank and (b) the IMF. [138336]

The Chief Secretary to the Treasury (Mr. Paul Boateng)

The Government welcome recent developments at the Dubai annual meetings, when Ministers committed themselves to improve the capacity of developing country representatives and asked the World Bank and the IMF to look further at those countries' level of representation within those institutions.

Ann McKechin

I thank my right hon. Friend for his reply. However, does he agree that, if the IMF and World Bank are to take decisions that best reflect the development needs of the world's poorest nations, there is a need for a better balance between richer and poorer nations in the voting structure? The WTO, for example, allows for equal votes, and the voice of the developing nations is now being heard loud and clear.

Mr. Boateng

My hon. Friend, who takes a close interest in these matters, makes a very fair point about the balance of representation. That is why we are working to achieve a consensus in that regard, building on the pledge in our White Paper of 2000 and on the progress made at Monterrey. Building consensus is not easy, but we believe that a 25th seat on the IMF and the World Bank's board for sub-Saharan Africa is an option that ought to be explored and given serious consideration. We are working hard to that end.

Mr. John Battle (Leeds, West)

My right hon. Friend will know that at the present rate of international aid, six out of eight of the millennium development goals are unlikely to be met until half way through the next century. What conversations have taken place at the IMF and World Bank to give support to the Chancellor's initiative for an international finance facility, which would boost immediate assistance and help to get those targets back on track?

Mr. Boateng

My right hon. Friend the Chancellor works closely with others on those issues, not least with the faith communities, which have a crucial role to play.

That is why the recently announced support of the Vatican and His Holiness for the IFF was a particular help in taking that agenda forward. The issue was discussed recently with leaders of the World Bank and the IMF in Madrid. As a result of my right hon. Friend the Chancellor's initiative, the World Bank and the IMF are carrying out studies and we are hopeful of increasing recognition on the part of donor nations that we have to do more and that the IFF is our best hope of achieving that. The example that this House sets of genuine bipartisan support for that mechanism is one that other nations, especially donor nations, might well follow.

Mr. Tam Dalyell (Linlithgow)

Treasury Ministers have an outstanding record in helping developing countries, but is that record being damaged in any way by the increasing commitments to Iraq and, in particular, are the reports—

Mr. Speaker

Order. My apologies for interrupting, but we have arrived at question 15. The hon. Gentleman should ask the Minister for the reply to that question.

Mr. Boateng

I take the point that the Father of the House makes and—

Mr. Speaker

Order. On the Order Paper, we have reached question 15. Question 14 has been withdrawn.

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