§ Mr. Win Griffiths
To ask the Chancellor of the Exchequer what consideration he has given to the United Nations Children's Fund's recent study entitled "Adjustment With a Human Face", a copy of which has been forwarded to him; and if he will make a statement.
§ Mr. Lilley
The IMF recognises the need to take full account of the effect of structural adjustment on the poor and we shall continue to encourage this both at the policy design stage and when new programmes are implemented. It is important to recognise that in many cases adjustment policies are in fact of direct benefit to the very poorest groups in developing countries — the rural poor. One important example of this is increasing the artificially low prices farmers receive for their crops—which often both directly improves income distribution and encourages more domestic food production. Structural adjustment measures such as this are essential in the poorest countries if they are to achieve better economic growth, and thus better living conditions for all, including the poorest.