§ Mr. Harry BarnesTo ask the Chancellor of the Exchequer whether he will make representations in January 1989 to the new United States Administration to encourage it to provide grant aid to Third world nations in place of loans.
§ Mr. Chris PattenI have been asked to reply.
The United States already provides most of its bilateral aid in grant form. So do we.
§ Mr. Harry BarnesTo ask the Chancellor of the Exchequer whether he will make representation to enable672W the European Council of Ministers to adopt a policy of converting past loans to Third world nations into grants; and if he will make a statement.
§ Mr. Chris PattenI have been asked to reply.
Most European Community aid to the poorest countries is in grant form. Those loans which are provided are generally to the better-off developing countries and on generous terms.
Repayments on past loans provided under the European development funds for the poorest ACP countries have recently been recycled as a contribution to the Community's special programme in favour of low-income, debt-distressed countries in sub-Saharan Africa.
§ Mr. Harry BarnesTo ask the Chancellor of the Exchequer whether he will make representations to the World Bank and the International Monetary Fund to adopt the six guidelines for standard adjustment programmes agreed by Ministers at the development assistance committee meeting in December 1987.
§ Mr. Chris PattenI have been asked to reply.
As the guidelines agreed at the development assistance committee propose, the IMF and the World Bank are paying increasing attention to designing structural adjustment programmes with safeguards to protect the poor. The World Bank is increasing support for special compensatory lending programmes in a number of countries in order to preserve basic social services during periods of adjustment. We welcome these developments, but the decisions on how to implement adjustment programmes, and how to protect vulnerable groups, must ultimately be for the Government of the country concerned.