§ 3. Mr. Tony Clarke (Northampton, South)If he will make a statement on progress towards the target of 0.7 per cent. of national income being devoted to international aid. [132056]
§ The Chief Secretary to the Treasury (Mr. Paul Boateng)I recently attended the Commonwealth Finance Ministers' conference and was able to inform our colleagues that in the 2002 spending review the United Kingdom announced and is now delivering the largest ever increase in aid, raising aid commitments to developing countries from 0.32 per cent of national income in 2002–03 to 0.4 per cent by 2005–06.
§ Mr. ClarkeI welcome my right hon. Friend's commitment and, indeed, the Chancellor's continued commitment to meeting that 0.7 per cent. target. I am sure that he will agree that aid effectiveness is as important as aid volume. Given that 8 per cent. of all adults in sub-Saharan Africa are HIV infected, 42 million people live with HIV/AIDS and 5 million were infected last year alone, how can we ensure that much of that aid money goes to combating that dreadful and awful virus?
§ Mr. BoatengMy hon. Friend displays a concern about the impact of the AIDS pandemic that is shared on both sides of the House. Its effect has been disastrous not only socially and in human terms, but economically. That is why last year alone we invested about £250 million on HIV/AIDS plus support programmes for multilateral agencies, including £14 million on the international AIDS vaccine initiative. Absolutely central to that are the poverty reduction partnerships and their links with civil society—non-governmental organisations on the ground in the developing world—because they are often best placed to identify and meet the needs. It is that combined approach, using agencies such as the global health fund and working with civil society on the ground, that will deliver the help that is needed.
§ Mr. Crispin Blunt (Reigate)Is the Chief Secretary aware that in 1995–96 only Holland and the United Kingdom met the United Nations higher target of 1 per cent. of gross domestic product transfer from developed countries to the developing world, a combination of private and public sector transfers? Does he agree that that higher target should be our policy focus? Only the combination of public and private sector investment in the developing world will enable the wealth creation and investment that will take it out of poverty.
§ Mr. BoatengThe hon. Gentleman is absolutely right. A characteristic of the cross-party approach to development issues is that we have all recognised the importance of private flows and the way that they leverage so much additional benefit on the ground in the developing world. That was the subject matter of a number of our discussions at the Commonwealth Finance Ministers' conference and we shall be continuing that work, as the Chancellor has indicated.
§ Dr. Alan Whitehead (Southampton, Test)In my right hon. Friend's pursuit of those targets, is he applying the principle of the disarticulation of aid from compulsory trade? In his discussions with other Ministers in those fields, has he enunciated and advocated that principle?
§ Mr. BoatengMy hon. Friend is absolutely right. The United Kingdom has distinguished itself by making sure that we increase aid effectiveness, which we have done by about 15 to 30 per cent. Central to that has been cutting the insidious link to which he referred. We are not alone in that, but we still have to fight a battle internationally to make the point that we must untie aid if we are to do the most good. We must concentrate aid where it can be most effective in helping the poorest in those societies rather than simply lining the pockets of the already wealthy.
§ Gregory Barker (Bexhill and Battle)The increased amount of international aid is greatly to the credit of the Government. The Chancellor has spoken about increased transparency in aid and debt relief, but can the Chief Secretary tell us what practical steps have been taken to increase the audit of the delivery of aid on the ground? What new processes and steps are in place?
§ Mr. BoatengWe are offering help to the developing world in achieving stability through a greater emphasis on getting its fiscal and monetary policy right. On transparency, good governance is central, which is why we supported initiatives such as the New Partnership for Africa's Development. As I said earlier, we are also unlocking the potential of civil society, so that in a country such as Malawi the Churches, the trade unions and women's organisations all follow through to see where the money goes. They visit schools; they ask how many new desks have been bought and how many teachers are on the payroll. Furthermore, they actually ask to meet the teachers, because we all know that, unfortunately, in some of those countries those are phantoms—the teachers do not really exist. Utilising civil society as well as establishing good governance is the best way to ensure aid effectiveness.