§ Mr. Tom ClarkeTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the recently published African alternative framework and structural adjustment programmes endorsed by the United Nations Economic Commission for Africa.
§ Mr. Chris PattenWe agree with the ECA's objectives to ensure that economic growth in Africa proceeds hand in hand with the development of Africa's human resources and the alleviation of poverty. Spending in these areas should not be made the scapegoat in times of fiscal austerity.
However, some of the policy measures and instruments recommended in the report would not, in our view, help the cause of "growth with equity". They would have the effect of slowing growth down and perpetuating distortions. They appear to represent a partial return to the kind of dirigiste policies from which increasing numbers of African countries have been successfully moving away.
It must remain a matter of priority to bring down the excessively high levels of inflation and unsustainable budgetary deficits in many African countries which only hamper growth prospects and the ability to tackle longer-term issues—including poverty alleviation—in a sustainable manner.