HL Deb 18 July 2001 vol 626 cc1478-9

3.13 p.m.

Baroness Williams of Crosby

asked Her Majesty's Government:

What proposals to reverse the growing inequalities in global wealth and incomes they propose to put to the G8 Summit in Genoa this weekend.

The Parliamentary Under-Secretary of State, Foreign and Commonwealth Office (Baroness Amos)

My Lords, the G8 Summit will focus on managing globalisation so that poor countries share in its benefits, thereby reducing inequalities. We shall work with our G8 partners to launch a new trade round and improve market access; to establish a global health fund to help to tackle HIV/AIDS, malaria and tuberculosis; to strengthen the international financial system; and to push forward on debt relief, under which 23 countries have now received 53 billion dollars in relief.

Baroness Williams of Crosby

My Lords, I thank the Minister for that constructive Answer. However, does she accept that sealing off protest trains cannot seal off a great sense of indignation that arises from the fact that 7.2 million dollar millionaires in this world own and control one-third of the entire world's resources? Can Her Majesty's Government express a view so far on Mr Bush's new initiative regarding grants instead of loans from the World Bank? Also, will the Tobin tax will be considered by the G8 countries?

Baroness Amos

My Lords, I cannot at this stage say anything about the two specific points raised by the noble Baroness. I shall reply to her in writing once we have a clearer view on them.

This weekend's G8 Summit will prioritise issues relating to development and poverty reduction. The fact that the leaders of the G8 countries are to spend a considerable amount of time talking about questions of inequality is something that we in the development community take extremely seriously.

Lord Howell of Guildford

My Lords, does the Minister accept, as the evidence suggests, that the globalisation of finance and trade, far from worsening inequalities, is actually narrowing inequalities in some areas and can bring vast benefits to many of the poorest people in the world? Does she agree that that message should be strongly conveyed to the rabble and the well-organised mob converging on Genoa this weekend? Should it not be explained to them that their protests are aimed in exactly the wrong direction?

Baroness Amos

My Lords, we must accept that there is a right to peaceful protest. What we do not accept is the violence that has marred a number of summits. As regards the noble Lord's comments about finance and trade, we made clear in our globalisation White Paper at the end of last year that we saw globalisation bringing with it opportunities and threats, and that it is for us to work to manage the process in such a way that globalisation delivers benefits for the poor rather than being a threat to the developing countries which we seek to assist.

Viscount Waverley

My Lords, more specifically, is it government policy to retain the quota system for as long as it takes to ensure a level playing field?

Baroness Amos

My Lords, the Government have worked long and hard to promote access in terms of trade. The noble Viscount will be aware of the European Union's Everything But Arms initiative, which gives access to least developed countries. We have been working hard to ensure that the next trade round at Doha is seen as a developing round.

Lord Razzall

My Lords, does the Minister accept the analysis in the Economist magazine last month that global inequalities are widening rather than narrowing?

Baroness Amos

My Lords, this is a complex question and one that we have been examining. In some areas of the world inequality is widening; in others it is narrowing. We seek to learn lessons from those countries where inequality is lessening and to apply them to such areas as sub-Saharan Africa in order to improve matters and ensure that such countries are able to meet international development targets, and to work towards narrowing income inequality.

The Earl of Sandwich

My Lords, does the Minister accept that many of those who voted to re-elect this Government were in favour of a much enhanced aid programme, including the completion of the heavily indebted poor country initiative? Will the Minister confirm that at the summit in Genoa a genuine lead will be taken by the United Kingdom on the issue of debt relief in particular?

Baroness Amos

My Lords, the noble Earl is aware of the lead that we have already taken with respect to the HIPC initiative. Twenty-three countries have qualified. We are concerned that a number of the countries that could qualify are mired in conflict and we are working hard with the World Bank and the IMF to see what we can do in terms of the initiative as it currently stands to take on board the additional fact of conflict. We see our role as being to stay with the initiative as it currently stands but to examine why it is that some countries have been unable to qualify because of the particular circumstances affecting them.