HC Deb 09 December 1986 vol 107 cc109-10W
Mr. Deakins

asked the Secretary of State for Foreign and Commonwealth Affairs if he makes his own appraisal of structural adjustment policies in countries where the United Kingdom has a bilateral aid programme.

Mr. Chris Patten

Yes. Structural adjustment programmes usually involve the International Monetary Fund and the World Bank and we participate in board discussions. In addition, for countries where British bilateral programme aid is likely to be involved in significant financial support for structural adjustment programmes, ODA officials participate in relevant World Bank missions or otherwise consult World Bank staff closely. Our country aid programmes also finance studies of policies relevant to structural adjustment programmes which influence the nature of the reforms adopted.

Mr. Deakins

asked the Secretary of State for Foreign and Commonwealth Affairs what steps he is taking through the World Bank and International Monetary Fund to ensure that adequate funds are available to debtor countries in the Third World which undertake structural adjustment programmes.

Mr. Chris Patten

We support a substantial eighth replenishment for the International Development Association and a general capital increase for the World Bank when required. We encourage increased use of World Bank funds for structural adjustment lending in appropriate cases. The resources of the International Monetary Fund are reviewed at about five-yearly intervals

Outturn 1985–86 £ million Latest forecast of outturn 1986–87 £ million
Price guarantees
Wool 1.5 9.7
Potatoes 7.5
9.0 9.7
Support for capital and other improvements
Agriculture and Horticulture Development Scheme 65.6 50.7
Guidance Premiums 3.8 3.6
Farm Accounts 0.8 0.8
Farm Structure 0.3 0.3
Northern Ireland Agricultural Development Programme 4.9 2.3
Agriculture and Horticulture Grant Scheme 65.4 24.0
Agriculture Improvement Scheme (EC) 18.3
Agriculture Improvement Scheme (National) 0.2 11.4
Co-operation Grants 4.3 3.4
Others 1.8 1.8
146.9 116.6

and constantly monitored to ensure sufficient funds are available for the programmes planned. We supported the establishment of the fund's structural adjustment facility.