§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what is this assessment of Zambia's response to International Monetary Fund demands in relation to the management of the Zambian economy.
§ Mr. Chris PattenI am disappointed that Zambia has not so far been able to reach agreement with the International Monetary Fund on an appropriate economic reform programme. We believe such a programme to be essential to economic recovery in Zambia.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what representations he has made, or intends to make, to Zambia in support of International Monetary Fund pressure for Zambia's budget deficit to be reduced to 5 per cent. of gross domestic product.
§ Mr. Chris PattenWe are in regular contact with the Zambian Government and have encouraged them to reach agreement with the International Monetary Fund. The technical details are for the International Monetary Fund and the Zambians to settle.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what information is available to him, in formulating aid policy, about the economic situation in Zambia.
§ Mr. Chris PattenA wide range of economic information is available to me on Zambia from both international and local sources.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will list United Kingdom contributions to Zambian development through national, Commonwealth and European Community action in each year since 1983.
§ Mr. Chris PattenGross bilateral aid and the estimated British share of Commonwealth and European Community aid to Zambia since 1983 is as follows:
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£'000 1983 1984 1985 1986 Gross bilateral aid 15,485 32,901 25,552 35,366 Estimated United Kingdom share of EC aid 1,290 4,140 5,220 2,500
1982–83 1983–84 1984–85 1985–86 Estimated United Kingdom share of Common-wealth Fund for Technical Cooperation expenditure for Zambia 48 71 123 160 Figures for 1987 are not yet available.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs why £30 million of British aid to Zambia has been frozen; and if he will make a statement.
§ Mr. Chris PattenIn December 1986 Her Majesty's Government indicated that some £30 million could be made available to Zambia in the calendar year 1987 in the form of programme aid, provided that agreement could be reached between Zambia and the IMF on an appropriate programme of economic reform. No such agreement was reached and none of the finance was released.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will list current development projects in Zambia for which United Kingdom national, Commonwealth and European Community assistance had been agreed, the value of that assistance, and for which of these projects aid has been frozen.
§ Mr. Chris PattenUnder the bilateral aid programme for Zambia, Britain is currently financing two rural development schemes at a total cost of some £7.6 million. In addition, we expect to disburse about £12 million in 1988–89 on a range of technical co-operation activities including the provision of expert personnel; training for Zambians in the United Kingdom; consultancies; and a contribution to the World Health Organisation/Government of Zambia medium term AIDS control plan.
Britain contributes 30 per cent. of the expenditure of the Commonwealth fund for technical co-operation which currently runs some 53 projects in Zambia mainly involving the provision of experts and training at an estimated cost of £1.6 million.
Current development projects in Zambia financed by the european Community under the second and third Lome conventions are as follows:
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Title mecu Allocation Agricultural Sector Import Programme 21.800 Rehabilitation copper and cobalt mining industry (II) 28.000 Interest rate subsidy, NCCM Chingola Mine 6.816 Tsetse and trypanosomiasis control programme 5.000 Maize development 5.550 Rural township water supply 5.200 Rice development 4.000 Rural health centres 2.000 First Microprojects Programme 2.120 Vaccine production project 3.000 Development Bank of Zambia interest rate subsidy 1.724 Miscellaneous studies 1.079 Miscellaneous regional training activities 2.244 Agricultural sector import programme 18.200
Title mecu Allocation Development Bank of Zambia 10.500 Copperbelt smallholder development 12.000 Centre for accounting studies 4.000 Maths and Science Teacher education 3.500 Reintegration of nationals 0.300 None of the development activities described above has been froze.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment is available to him of Zambia's debt repayment arrears; and to which countries repayment has not been made.
§ Mr. Chris PattenZambia's arrears on repayments of aid loans to the United Kingdom are currently £3.2 million. Arrears to the International Monetary Fund are SDR 421 million, and to the World Bank $82 million. No current figures are readily available on the extent of other arrears.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what is his assessment of the effect on Zambia of the suspension of international aid.
§ Mr. Chris PattenSome aid to Zambia, but by no means all, has been suspended. Project aid and technical cooperation from Britain and certain other donors are continuing. The reduction in flows of balance of payments aid to Zambia has coincided with a rise in Zambia's copper export earnings as a result of higher world prices and with decisions by the Zambians to reduce their payments of debt service. It is difficult to assess with precision the effects over time of these various offsetting changes.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what is his current assessment of shortages of food and other essentials in Zambia; and what are the implications for Her Majesty's Government's overseas aid effort.
§ Mr. Chris PattenAccording to the United Nations Food and Agriculture Organisation, the prospects for an above-average cereals harvest this year in Zambia are very good. However, there are continuing shortages of staple commodities and other essentials available for sale. In the current circumstances, we shall continue to concentrate our aid programme to Zambia on the provision of technical co-operation in key areas and on the integrated rural development schemes in the northern and central provinces.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment is available to him on the level of economic growth in Zambia in each year since 1983.
§ Mr. Chris PattenThe estimated growth in Zambia's gross domestic product since 1983 is as follows:
percentage growth rate in GDP growth 1984 -0.4 1985 3.4 1986 2.0 1987 2.5 Source: IMF staff papers.