§ 37. Mr. Hooleyasked the Minister of Overseas Development what assessment her Department has made of the value of the STABEX scheme, set up under the Lomé Convention, in assisting the development of the ACP countries.
§ Mr. TomlinsonThe first two years of operation show that the STABEX mechanism is working well, and that the transfers, ranging from 5 per cent. to 24 per cent. of total export earnings, will have greatly assisted those ACP States which suffered a loss of export earnings from the commodities covered by the scheme. Of the 1975 transfers, some 68 per cent. was provided in compensation for loss of export earnings due to changes in economic circumstances, whilst the remaining 32 per cent. compensated for the loss of export earnings from natural causes. Of these transfers some 57 per cent. went to ACP countries classified as least developed under the Lomé Convention. We have not yet made a detailed analysis of the 1976 transfers.