HC Deb 28 November 1988 vol 142 cc69-70W
Sir John Stanley

To ask the Secretary of State for Foreign and Commonwealth Affairs what is the expected cost to the aid programme of(a) Britain's contribution to the International Monetary Fund enhanced structural adjustment facility and (b) the Chancellor of the Exchequer's debt initiative in each of the years 1988–89 to 1990–91 inclusive for which an estimate has been made by his Department.

Mr. Chris Patten

I refer my right hon. Friend to the answers I gave the hon. Member for Eccles (Miss Lestor) on 25 November, at column 13.

Mrs. Rosie Barnes

To ask the Secretary of State for Foreign and Commonwealth Affairs whether he will propose to the European Community that all past aid to the poorest countries be converted to grants and all new aid in the form of a gift.

Mr. Chris Patten

Most European Community aid to the poorest countries is already given as grants. Loans are provided 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.

Mrs. Rosie Barnes

To ask the Secretary of State for Foreign and Commonwealth Affairs whether Her Majesty's Government will consider asking both the World Bank and the International Monetary Fund to adopt the six guidelines agreed by Ministers at the development assistance committee meeting in December 1987.

Mr. Chris Patten

As the guidelines agreed at the development assistance committee propose, the IMF and 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 Governments of the countries concerned.