HL Deb 06 February 1997 vol 577 cc1762-4

3.11 p.m.

Lord Judd asked Her Majesty's Government:

Whether they are satisfied with the social development policies of the World Bank and the International Development Administration (IDA) towards the third world.

Lord Chesham

My Lords, we welcome the recent progress in this area and the bank management's commitment to mainstreaming social development approaches particularly in the IDA and in other bank programmes. Serious effort is now required to implement these policies throughout the bank's lending programme.

Lord Judd

My Lords, we too find the thinking of the bank under its present president, Wolfensohn, very encouraging. Have the Government studied the recent report by the bank's operations evaluation department which reveals that the declarations of intent on vital social issues and the role of women are still not making themselves felt in specific country programmes, which is what matters? In view of the ODA's very good experience at integrating those concerns into its own bilateral programmes, will the Government now give a firm lead in the bank over the introduction of the mechanisms and administrative arrangements which are necessary to turn welcome rhetoric into action?

Lord Chesham

My Lords, I greatly appreciate what the noble Lord says about the efforts of the ODA. We believe that it has done a fantastic job. We greatly welcome the attitude of the president of the World Bank in intending that such policies should go ahead. The ODA has played a leading role in promoting social development policies in the bank's policy work in, for example, Africa through participating in the poverty and social policy working group of the World Bank-led special programme for Africa. The ODA has played a leading role in improving the social development content of the World Bank's country poverty assessments through support to assessments in Ghana, Zambia, South Africa, Kenya, Tanzania, Gambia and Pakistan. That work will continue.

Lord Judd

My Lords, we are all agreed about the intention and we all welcome what has been said, but the bank's own evaluation department is saying that that intention is not being turned into action. That is what must be addressed. Can the noble Lord give any assurances in that respect?

Lord Chesham

My Lords, I can give every assurance that the ODA will do everything that it can to make certain that such matters are taken seriously not only at the top level of the World Bank but right down through all the bank's management levels. We shall continue to assist in any way that we possibly can.

Lord Avebury

My Lords, can the noble Lord confirm that the board of the World Bank is meeting today and will have before it a report made on behalf of Paraguayan citizens that the World Bank's guidelines were not observed in the case of the Yacireta project? Will the Government uphold the recommendations that were made to the board by the inspection panel that a full investigation of that claim should be carried out? More generally, do the Government agree that when the inspection panel recommends that full investigation the board should accept its recommendations unless there are very strong reasons to the contrary?

Lord Chesham

My Lords, it is going a bit far to ask me to make representations to the board of the World Bank. We should await its recommendations. I have not been privy to the papers for that World Bank meeting.

Viscount Waverley

My Lords, does the noble Lord recognise that there is an increase in private investment and that the World Bank encourages the private sector to factor social development into their programmes?

Lord Chesham

My Lords, it is essential that private investment should be encouraged in such areas. It provides the sustainable investment that will hit the problem at which we are aiming.

Lord Ashley of Stoke

My Lords, I am sure that the House will welcome the noble Lord's assurance that the Government will do all they can to achieve the aims mentioned by my noble friend. Can he say specifically what the Government will do?

Lord Chesham

My Lords, we have already seconded social development advisers to the World Bank to strengthen the bank's capacity to implement its social development policies.