§ 19. Mr. Fisherasked the Minister of Overseas Development what proportion of Government aid is allocated to enable the receiving countries to achieve economic independence in the near future; what proportion is designed simply to alleviate extreme proverty; and what proportion is held in reserve for mainly political objectives as and when they may arise.
§ Mr. PrenticeOur aid programme is not allocated with the intention of serving these three purposes. Its main purpose is to help raise the living standards in developing countries, especially by the promotion of long-term development. It covers the whole range between the two extremes of purpose in the Question and serves both to varying degrees. No proportion is held in reserve for political objectives.
§ Mr. Ridleyasked the Minister of Overseas Development what estimate he has made of the current annual effect of Government aid upon the balance of payments.
§ Mr. PrenticeAbout one-third of the aid programme, roughly £70 million, is not matched by exports of goods and services and so falls as an immediate burden on the balance of payments. There are also indirect effects, for example, some of these exports may be at the expense of commercial exports; on the other hand the balance of payments benefits from the world aid effort of which our aid forms a part. Further, interest and repayments of old aid loans are coming in at about £60 million a year. For further details I would refer the hon. Member to my speech in the House on 7th May.—[Vol. 764, c. 280–93.]
§ Mr. Fisherasked the Minister of Overseas Development what proportion of Government aid goes to Africa, the Caribbean and the dependent territories, respectively.
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§ Mr. PrenticeThe proportions in 1967 were:
Per cent. Africa 31.0 Caribbean 2.2 Dependent Territories and Associated States (not included above) 15.4 These figures include overseas investment by the Commonwealth Development Corporation.