OECD Development Assistance Targets (Hansard, 13 June 1996)

§ Lord Chesham
My Lords, the Government were closely involved in the drafting of the Development Assistance Committee's report and we welcome its emphasis on measurable results. The committee has begun work to follow up the indicators of progress set out in it. Britain's development programme is already heavily focused on poverty reduction, improvement of health and education, particularly for women, environmental 1834 protection and the promotion of sustainable development, all of which are highlighted in the report. We shall continue to develop our activities in these areas further.

§ Lord Judd
My Lords, I thank the Minister for that reply. Does he not agree that the real importance of the report is that it sets specific target dates; for example, for halving the number of people living in extreme poverty in the world? Therefore, does he agree that if the Government are committed to the targets set in the report which they helped to draft, they must commit themselves to meeting those target dates? Will the Minister assure the House that the next Budget, if the Government survive to produce it, will guarantee the necessary funds for the programme?

§ Lord Chesham
My Lords, I am sure that the noble Lord, Lord Judd, would not expect me to make a guarantee on behalf of the Treasury. It would be slightly out of the ordinary if I were to do so. We are working out, and the Development Assistance Committee is working out, how to achieve the targets. We are working extremely hard with the committee. We shall listen to what it says and do the best that we can to achieve those targets.

§ Lord Clark of Kempston
My Lords, does my noble friend not agree that the latest report from the OECD is extremely complimentary about the British economy? The meeting of those targets depends on a sound economy. Does the Minister agree that the latest OECD report confirms that the United Kingdom's economic policy is highly successful?

§ Lord Chesham
My Lords, I thank my noble friend. I agree with him about the state of the economy. However, there is one other important point. Aid is only one of the many ways in which the United Kingdom is helping developing countries. The Government have taken the lead in debt relief initiatives and those are the third largest source of private capital to the developing world. We estimate that in 1994 Britain's overall performance was above the 1 per cent. of GNP benchmark for total aid flows which is used internationally.

§ Lord Rea
My Lords, following that answer, will the Minister say how the private direct investment to which he alluded can be increased so that more of it reaches the poorest countries of the world, particularly in sub-Saharan Africa? How can private investors be encouraged to take a long-term view and assist in the development of the infrastructure and human capital, particularly the literacy and health of the people of those countries, in order to form the basis for further investment?

§ Lord Chesham
My Lords, that is something which we are indeed encouraging. Perhaps the noble Lord will wait until the debate on the CDC tomorrow when he will hear about the details in relation to encouraging private financing, particularly in sub-Saharan Africa.

§ The Lord Bishop of Worcester
My Lords, will the noble Lord tell us whether the Government plan to make 1835 the millennium the time at which to cancel certain third world debts in view of the fact that they will not be paid? Secondly, does he not agree that if we can activate third world markets we shall be doing a favour for international trade?

§ Lord Chesham
My Lords, I thank the right reverend Prelate for that question. I do not think that it is appropriate for us to target the millennium for the cancellation of third world debts. We are doing that all the time. We should not wait for the millennium to do so. A major part of development assistance is helping countries to develop their own industries, businesses, employment and education. That is a prime target in our development aid programme.

§ Lord Prentice
My Lords, does my noble friend agree that the analysis of the OECD receives powerful support this week from the report of UNICEF into development problems affecting the world's children, which draws attention to fairly dramatic success stories in parts of the developing world but also to the vast problems which remain? Against that background, should not every OECD country, including Britain, think of revising its development assistance upwards in the years ahead?

§ Lord Chesham
My Lords, I wish that I could promise that we would always be able to revise the aid upwards. However, we have a very important policy, which is to make our aid work more efficiently. Efficiency rather than volume of aid may be much more important.

§ Lord Stoddart of Swindon
My Lords, will the noble Lord say what proportion of the total direct aid budget is administered through the European Union? Will he say also whether the Government are satisfied that the administration of that aid through the EU is better and better directed than it would be if it continued to be administered directly by the ODA?

§ Lord Chesham
My Lords, perhaps we should wait until Monday when figures for aid through the EU, the ODA and other countries will be published. It would be wrong for me to pre-empt the publication of those figures.
With regard to efficiency we are not satisfied. I do not think that anyone can ever be satisfied that everything is working at its ultimate efficiency. However, we are striving to improve efficiency both within the EU and the ODA.

§ Lord Stoddart of Swindon
My Lords, I am certainly prepared to wait until Monday for the up-to-date figures but is the noble Lord able to give us the figures which he already has?

§ Lord Chesham
My Lords, were the noble Lord to wait until Monday, he would have the up-to-date figures. The previous figures have no relevance to what will be published on Monday.

§ Lord Judd
My Lords, does the Minister agree that this very searching report by the OECD addresses the problem of suffering and deprivation on an almost indescribable scale? Does he further agree that the 1836 Government, by being co-drafters of the report, have committed themselves to halving the number of people living in extreme poverty by the year 2015? If they have committed themselves to doing that, how are they going to generate the funds to make that possible?

§ Lord Chesham
My Lords, that is a target, an aim, and one which we intend to do our very best to meet, with all other countries which also provide aid. Indeed, it is an aim that we are very determined to try to achieve. As to how it will be paid for, I must point out that we are talking about 20 years ahead. I do not believe that it will be sensible to attempt to talk about funding 20 years ahead at this stage.

§ Lord Judd
My Lords, would the Minister agree that this is seen by the poor of the world as, potentially, cynicism on an immense scale?

§ Lord Chesham
No, my Lords; I would not.