HC Deb 17 May 2004 vol 421 cc744-5W
Lynne Jones

To ask the Chancellor of the Exchequer if he will make a statement on the effects of providing resources for the world's poorest countries(a) through the International Finance Facility and (b) through direct aid. [173059]

John Healey

Since this Government came to power, UK official development assistance has increased by 97 per cent. in real terms, and our aid ratio as a proportion of national income is set to reach 0.4 per cent. in 2005–06. But it has been estimated that the achievement of the Millennium Development Goals will require an extra US$50 billion more in aid every year until 2015. That is why the UK has proposed the IFF to deliver the funds that are needed now, when they will have the most impact on reducing poverty. The IFF would raise the significant additional resources necessary to make progress on meeting the Millennium Development Goals.

The IFF would not be a new disbursement agency but a facility designed to deliver additional funds for development that would then be delivered through existing mechanisms, both through bilateral assistance and multilateral organisations.

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