Aid Distribution: Criteria (Hansard, 2 July 1996)

§ Baroness Chalker of Wallasey
My Lords, a number of factors are taken into account in allocating our aid resources to particular countries. These include traditional ties to Britain, the recipient country's political and economic policies, respect for human rights 1300 and the rule of law. The other prime factor, however, is the need for aid and the effectiveness with which it is used.

§ Lord Judd
My Lords, does the Minister agree that while aid to the former communist countries of Europe increased by some 773 per cent., from £15 million to £131 million, in the three years to 1994–95, aid to sub-Saharan Africa—the world's poorest region—declined by 5.5 per cent., from £418 million to £395 million? While it is important to assist transition in the former communist countries, how can this ever be, even in part, at the expense of aid to the poorest people in the world? Does the Minister have any plans under her own fundamental expenditure review to enable communist countries to graduate from aid so that assistance can be concentrated on those in the world in the greatest need?

§ Baroness Chalker of Wallasey
My Lords, in answer to the last part of the noble Lord's question, yes, we do. In particular, the countries of central Europe are moving faster than many others towards free markets and greater growth.
To return to the original premise of the question, 8 per cent. of our bilateral budget was spent on Europe, eastern Europe and central Asia—the former Soviet Union—compared with about 75 per cent. on sub-Saharan Africa and Asian countries where the greatest poverty exists. We have sought to concentrate our assistance in sub-Saharan and Asian countries where it can do most good. I understand the anxiety that has been expressed, but it must be right to help countries that are moving quickly away from an old demand system and, at the same time, to concentrate assistance on those most in need.

§ Lord Eden of Winton
My Lords, in the initial response to the Question put by the noble Lord, Lord Judd, my noble friend referred to the need to ensure that aid was effectively spent. Can my noble friend assure the House that one of the criteria that she wants to establish is that countries which are recipients of aid take effective action against corruption, particularly that which is sponsored or promoted by governments themselves?

§ Baroness Chalker of Wallasey
My Lords, I assure my noble friend that one of the main criteria for the effective use of aid is that development assistance goes to projects for which it is intended. For that reason, I shall continue to be critical where any aid money, whether bilateral contributions or through any channel, may be siphoned off by those who seek to make irresponsible use of it. I can give my noble friend the assurance that our evaluation and monitoring system of the British aid programme prevents that. The same is not yet the case for all multilateral programmes. We hope that it will become so.

§ Lord Redesdale
My Lords, as Members on these Benches support the aid given to eastern Europe, especially through the know-how fund, which deals 1301 extremely effectively with projects in former eastern Europe, will the Minister consider increasing rather than decreasing the amount of aid available to the Asian bloc countries, and in so doing think about increasing the aid budget as a whole rather than shifting the funds from one place to another?

§ Baroness Chalker of Wallasey
My Lords, I hope that we may soon be able to increase the aid budget as a whole. That is something upon which I am working. However, I am conscious that the know-how funds are doing an enormous amount of valuable work, just as the resources we concentrate on the poorest countries in Asia and sub-Saharan Africa are similarly doing valuable work. One of the most effective areas in which the know-how funds are operating in the former Soviet Union is the work they are doing on nuclear safety, some of which I was privileged to hear about at AEA Technology this morning. That work is for the good of all mankind, not just the countries concerned.

§ Lord Ashley of Stoke
My Lords, is the Minister aware that no one in the House, I am sure, objects to help for eastern Europe? Most people would support what the Government are doing, but not at the expense of the other people. The figures the Minister quoted are not relevant. What is relevant is the trend, and the increase to eastern Europe at the expense of other poorer countries. Cannot that be taken into account?

§ Baroness Chalker of Wallasey
My Lords, indeed, it is taken into account. The fastest increase in assistance to central and eastern European countries, central Asia and the former Soviet Union comes from EU moneys, about one-sixth of which we contribute. It is not all falling upon us. The important point I was making to the noble Lord, Lord Redesdale, is that it is vitally important to cure some of the problems of pollution that are just sitting waiting to emerge upon the world and not those countries alone. Preventing such pollution problems in the future is vital. The know-how funds are valuable, not just for the countries where they are deployed but for a much wider area. I understand the point that the noble Lord makes. He knows that we shall do all that we can for the poorest countries in the world. I am committed to doing so, so is the department, and so are the Government.

§ Lord Stoddart of Swindon
My Lords, I thank the Minister for sending me a copy of the annual review of her department for 1995–96 which I found interesting reading. Will she confirm that her department now spends 25 per cent. of its total budget (£620 million) through the EU? Is she satisfied that she has as good control over that money being spent through the EU as she could get if it were paid directly to the countries involved, particularly those in sub-Saharan Africa?

§ Baroness Chalker of Wallasey
My Lords, we are going wide of the Question, not surprisingly, I think. Because the ODA has a first-class record in monitoring and evaluating our own research, it has been asked by 1302 the EU to help put in place similar systems not only involving our funds but also those of other people. That will allow us to concentrate resources where they are most needed and where they can be most effectively used.

§ Lord Dubs
My Lords, did not the Government give an undertaking two or three years ago that any aid for eastern Europe would not be at the expense of aid to the poorer countries? What has happened to that undertaking?

§ Baroness Chalker of Wallasey
My Lords, I think the noble Lord's memory is slightly off course, but I shall not debate that with him. The work we are doing in the countries of central Europe and the former Soviet Union is important world-wide. Those countries were formerly putting money, for all the wrong reasons, into some of the poorest countries. In this global world there is an evening out. We intend to concentrate British aid funds on the most needy and those who can use them most effectively. I shall continue to see that that happens.

§ Lord Judd
My Lords, does the Minister accept that we are all heartened by her undertaking in answering questions that she is fighting for an increased aid programme? I am certain that she has nothing but good will from the whole House in that effort. Will the Minister forgive me for returning to an old theme of mine? With the pressure on the aid programme, is there not a real difficulty? She keeps telling us that the aid programme is about poverty alleviation and yet it is constantly diverted for other purposes. Is this not the time to bring a strategic statement about the aid programme to the House so that we can all examine it, debate it, and, as far as possible, put ourselves wholeheartedly behind what she is trying to do?

§ Baroness Chalker of Wallasey
My Lords, the noble Lord is always very tempting on this issue, but I am not one who gives into temptation very easily, as he knows. Four years ago we were concentrating about 62 per cent. of our resources on the poorest. That has now increased to over 70 per cent. of our resources. I believe it is right to concentrate the aid on helping those most in need. That was a recommendation by the fundamental expenditure review, which we accepted as Ministers. That is being implemented.

§ The Earl of Sandwich
My Lords, is the Minister giving priority to the poorest countries within the former Soviet Union? The image of what is meant is sometimes distorted. I am thinking in particular of Kyrgyzstan and the countries in central Asia.

§ Baroness Chalker of Wallasey
My Lords, we go back to what I said at the beginning. We must give aid where it can be used effectively. It is not yet particularly easy to target some of those countries. Where we do, it is frequently achieved through the excellent NGOs, thereby alleviating pockets of poverty in those countries.