International Finance Facility (Hansard, 16 October 2003)

§ 1. Helen Jackson (Sheffield, Hillsborough)
What support he has received from EU partners for his international finance facility proposal. [132053]

§ 8. Mr. John McFall (Dumbarton)
If he will make a statement on the international finance facility. [132063]

§ The Chancellor of the Exchequer (Mr. Gordon Brown)
I can report that at the International Monetary Fund Committee meeting in Dubai, which I chaired, the proposed international finance facility—which I am pleased to say has received all-party support in this House—received wide support in principle from other countries, including EU countries. The meetings mandated the IMF and the World Bank to report back in 2004 on such a proposal that, by doubling aid, could halve poverty.

§ Helen Jackson
I thank my right hon. Friend for that reply. Does he agree, however, that there was widespread disappointment at the breakdown of the Cancun talks, given that the global disparities between rich and poor remain and, indeed, grow? Will he consider a virtual relaunch of his excellent IFF initiative, so that it can breathe new life into the efforts that the Government are making to reduce those inequalities?

§ Mr. Brown
I am grateful to my hon. Friend. As she rightly says, what we need is the equivalent of a Marshall plan for Africa and the developing countries. If the developed countries would agree to it, the IFF would offer $50 billion extra a year to make possible the achievement of the millennium development goals. My hon. Friend is right to say that we must do more. I do not think that I would call it a relaunch, as such—we in this Government do not do such things. First, a series of meetings with the developing countries will take place in the next few months, and I have already addressed a group of African Finance Ministers. Secondly, we will talk to the Churches, which are a very important element in this matter. We will hold a joint conference 240 with the Churches and the president of the World Bank in London in February. Thirdly, we are working with the non-governmental organisations. Another important factor is that I will meet the all-party international development committee in the next few weeks to talk about these issues. In other words, we are working towards securing the public opinion that is necessary to push the initiative forward, in the same way as we pushed forward debt relief.

§ Mr. McFall
My right hon. Friend will be aware that I visited Zambia in May. He kindly put me in contact with the Finance Minister and other Ministers there. His IFF is absolutely crucial for countries such as Zambia because the HIPC initiative is not working for it, and the millennium development goals will not be achieved because of the country's massive debt repayments of $6.5 billion. Its repayments greatly overshadow expenditure on health, education and social programmes. Will my right hon. Friend therefore ensure that his initiative gains greater currency throughout the world, because Africa needs it? Also, will he have a private word with me later, as I am having a Christmas appeal for Zambia and am looking for a private donation from him? I hope that he will provide a good example for my constituents.

§ Mr. Brown
As Mr. Speaker knows, money does not change hands in this House, but I shall be very happy to back the efforts in which my hon. Friend, who is Chairman of the Treasury Committee, has been involved. In addition, I shall be happy to support the efforts of all campaigners around the country trying to make people aware of the sheer need in the developing countries. At the moment, all the world's aid spent on the health of the typical African child amounts to £2.50 a year. That is simply not enough to prevent the disease and suffering that takes place. We must first recognise the amount of money that is needed at least $10 billion for education and $15 billion for health, and many more millions are also needed for the anti-poverty programme. We must then persuade people that the IFF is a way forward that could release the money in the time that is necessary for achievement of the millennium development goals. I therefore support my hon. Friend's activities, and those of other hon. Members who are very much involved in these matters.

§ Andrew Selous (South—West Bedfordshire)
A moment ago, the Chancellor mentioned his discussions with the World Bank. Is he satisfied that that institution is taking the issue of microcredit seriously enough? Amounts as small as $50 can make a huge difference to the enterprise of individual families throughout the developing world.

§ Mr. Brown
The hon. Gentleman is absolutely right. Microcredit is incredibly important, especially in African and Asian countries, if we are going to develop the economic base essential for a permanent reduction of poverty. I have talked to the president of the World Bank about exactly that issue. I held a meeting with others in the Treasury to discuss a number of proposals about microcredit and how we can promote it. I assure the hon. Gentleman that the World Bank is being pushed by everybody to move forward with microcredit. 241 If he looks at the World Bank's latest report on the questions of debt sustainability and of additional resources, he will find that it deals with them very usefully.