Aid

HC Deb 27 November 1991 vol 199 cc547-9W

Mr. Peter Bottomley

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will estimate the compound rate of growth of United Kingdom net aid to developing countries which would(a) halve the gap by which the United Kingdom falls below the United Nations target in five years and (b) meet the United Nations target in 10 years.

Mrs. Chalker

No. This would involve economic forecasting which is not a matter for me.

Sir John Wheeler

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will set out the criteria for the grant of overseas aid having regard to democracy and the human rights record of the recipient country.

Mrs. Chalker

In allocating aid to individual countries we take into account a number of factors. These include the needs of the country concerned, and the effectiveness with which our aid can be used. We consider whether the country has adopted policies which will help combat poverty and promote economic growth and social progress. The quality of government in the country concerned is an integral part of our assessment. Good government includes sound economic policy, effective and accountable public institutions and respect for human rights and the rule of law.

Mr. Campbell-Savours

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the new Organisation for Economic Co-operation and Development proposals on tied aid; and if he will make a statement on the progress made by his Department on further untying aid.

Mrs. Chalker

A package of reforms covering both export credits and tied aid credits has been accepted ad referendum by the Organisation for Economic Cooperation and Development consensus participants. Her Majesty's Government support the package as a useful step forward in our continuing efforts to introduce greater transparency and discipline into these fields and to reduce trade distortions. We very much hope that the package will be ratified by mid-December. On untying of aid, I refer the hon. Member to the answer I gave him on 20 November.

Mr. Mallon

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will give details of the total amount of aid offered to the developing world by his Department in each year since 1986.

Mrs. Chalker

Gross aid expenditure¹ by calendar year was as follows:

	£ million
1986	1,217
1987	1,189
1988	1,536
1989	1,635
1990	1,578

Mr. Mallon

To ask the Secretary of State for Foreign and Commonwealth Affairs what level of priority is afforded to the African continent in determining the Government's policy on aid to the developing worlds.

Mrs. Chalker

African countries have a high priority in the overseas aid programme. In 1990, African countries received 46 per cent.—£389 million—of the United Kingdom's gross bilateral aid which is geographically allocable. For United Kingdom aid channelled through multilateral organisations—£683 million in 1990—we estimate about half went to African countries. We intend to maintain a substantial programme of assistance to those African countries where aid can be used effectively.

Mr. Mallon

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will take the necessary steps to raise the proportion of gross national product applied to aid for the developing world to the level recommended by the United Nations.

Mrs. Chalker

The Government accept in principle the target set by the United Nations for overseas aid as a proportion of gross national product. However, we are not in a position to set down a timetable for reaching the target. Future levels of aid will depend on our economic circumstances, and on other claims on public expenditure. Our aid programme is planned to grow in real terms, is of high quality and carefully targeted.

Mr. Mallon

To ask the Secretary of State for Foreign and Commonwealth Affairs what recommended targets for the proportion of gross national product to be applied for the developing world have been agreed within the United Nations.

Mrs. Chalker

There are three United Nations targets for resources transfers to the developing countries. These are:

1. (i) combined private and official flows equal to 1 per cent. of GNP;
2. (ii) net official development assistance (oda) to all developing countries equal to 0.7 per cent. of GNP; and
3. (iii) net official development assistance to the least developed countries equal to 0.15 per cent. of GNP, or 0.20 per cent. of GNP for those countries who have already achieved 0.15 per cent.