§ Lord Hyltonasked Her Majesty's Government:
Whether issues of international trade affecting developing countries should not be taken in isolation but should be discussed in conjunction with debt relief, development aid, poverty reduction, the environment, movement of labour and health; and, if so, what steps they will take to achieve this. [HL3534]
§ Baroness AmosThe Government fully support an integrated approach to development that looks at all dimensions of poverty in a holistic way. The UK's trade strategy for poor countries is no exception and is embedded in the overall development strategy of DfID, as set out in the two White Papers.
Globalisation is reinforcing the need for an integrated approach to policy-making. Policies no longer fit into neat sectoral boxes and the distinction between domestic and international policy is increasingly blurred. Most domestic policies, such as taxation, have international implications and most international policies, such as trade, have domestic implications. The formulation of sustainable development strategies in a global economy requires developed and developing countries to have more joined-up and coherent policies.
Developed countries have a particular responsibility. There is no sense, for example, in using development assistance to support countries, and then undermining this through trade restrictions and unfair subsidies. All developed country policies towards the world's poorest countries should be consistent with a commitment to sustainable development and poverty reduction.
DfID's integrated approach to development policy also maximises the effectiveness of its development assistance. There has been a significant shift in DfID's approach away from stand-alone projects towards creating institutions and policies required to build accountable and effective states. International development assistance is more effective at reducing poverty when it is used to support a shared agenda set by a credible poverty reduction strategy (PRS). This approach—to which DfID and other donors committed themselves at Monterrey—provides the right framework for governments and donors to agree the priorities for policy reform and expenditure together with their citizens. Aid is provided in support of these poverty reduction strategies and is conditional on governments staying on course with the reform agenda.
DfID's new country assistance plans (CAP) start from the basis of our partner countries' own PRSs and set out in detail how DfID will work in an integrated way to support these as part of the international development effort.