§ Lord Judd asked Her Majesty's Government:
§ What steps they are taking to co-ordinate their bilateral and multilateral aid policies and their policies at the International Monetary Fund and World Bank to ensure an effective strategic campaign to eliminate poverty in sub-Saharan Africa.
§ The Minister of State, Foreign and Commonwealth Office (Baroness Chalker of Wallasey)My Lords, poverty reduction through sustainable economic and social development is a priority for all multilateral and bilateral donors to sub-Saharan Africa. We co-ordinate our policies closely with other bilateral donors, the World Bank, the International Monetary Fund and the European Commission.
§ Lord JuddMy Lords, while thanking the Minister for that reply, does she not agree that sub-Saharan Africa is balanced on a knife edge? If effective action is not taken, there could be 300 million people in absolute poverty by the end of the decade. What do the Government intend to do bilaterally and multilaterally: first, about the crushing annual debt burden of 10 billion US dollars; secondly, about the devastating impact of falling commodity prices; and, thirdly, about the World Bank and IMF structural adjustment programmes which have failed totally to produce a framework for sustained economic recovery in the region?
§ Baroness Chalker of WallaseyMy Lords, to answer all the questions asked by the noble Lord, Lord Judd, would take me longer than time permits this afternoon. However, I agree with him that many of the countries, although not all, are in a very precarious position. That is why I suggested at the ACP/EC meeting a week ago that we should consider further the application of Trinidad terms and the writing down of the stock of outstanding debts after three or four years of following sensible structural adjustment policies and proper economic reforms. We are well aware also of the plight which the fall in world commodity prices has meant for many of those countries. I assure the noble Lord that in my discussions next week with the World Bank and the IMF, I shall take those matters further.
§ Lord JuddMy Lords, again, I thank the Minister for her commitment on this issue. Does she not agree that the crisis for a number of countries in that region is one of bankruptcy rather than temporary balance of payments difficulties and that, for example, the slide in commodity prices between 1986 and 1990 cost Africa 50 billion US dollars in lost earnings? Does that not indicate that the IMF is addressing the wrong issues in the area? What is the Government's policy towards the IMF to insist that it gets its policies right?
§ Baroness Chalker of WallaseyMy Lords, I shall discuss those matters in great detail next week. The noble Lord, Lord Judd, will be well aware that the UK is the largest contributor to the Enhanced Structural Adjustment Facility (ESAF) interest subsidy account. We are seeking to help those countries not only through our own bilateral programme of aid but also through the international institutions. However, it would be a good deal easier for us to help them if other nations were to sign up to the Trinidad terms and also tackle the issue of commodity prices as we are seeking to do.
§ Lord Callaghan of CardiffMy Lords, while the Government certainly deserve credit for putting forward the Trinidad terms, I am sure that the Minister will agree that they are by no means sufficient and that there is a great deal more to be done. Has the noble Baroness heard the story that Japan—the chairman of this year's Group of Seven meetings—is anxious that there should be on the agenda next month a discussion on aid and in particular on the way in which the sub-Saharan countries can be helped, but it is said that some countries are rather against that proposal? Will the noble Baroness assure me that that would certainly not be true of Britain and that we should support any proposal by Mr. Miyazawa to put that matter on the agenda?
§ Baroness Chalker of WallaseyMy Lords, as far as I know, the agenda is far from being decided although the meeting is only a month away. I assure the noble Lord that the Prime Minister certainly intends to take up the issue of debt for those countries on each and every possible occasion. I do not know whether or not it will form a substantive part of the G7 agenda. However, I know that the Japanese have looked again at the amounts which they can give in the third world and are looking to increase their budgets substantially. It is critical that many of those countries begin to spend within their limits and that they follow a sound economic programme. We must help them to do that.