§ Mr. WorthingtonTo ask the Chancellor of the Exchequer what proposals he has to make the World bank and International Monetary Fund more conscious of the need to promote sustainable development.
§ Mr. Nelson[holding answer 11 December 1992]: The IMF helps countries to lay foundations for sustainable development through its work in support of stabilisation measures and medium-term structural reform. The World bank pays full regard to the need for sustainable development, in particular with regard to the impact their programmes have on the environment and the poorest members of society. The current measures taken by the two institutions to achieve objectives in connection with sustainable development are described in detail in the 1992 annual reports, copies of which are available in the Library of the House.
§ Mr. WorthingtonTo ask the Chancellor of the Exchequer if he will make a statement on the achievement64W of the structural adjustment programmes applied to countries by the World bank and the International Monetary Fund.
§ Mr. Nelson[holding answer 11 December 1992]: The Government welcome the support given by the IMF and the World bank to countries pursuing adjustment programmes and the recent evidence of the improved economic performance that results from these programmes. The IMF's and World bank's 1992 annual reports, copies of which are available in the Library of the House, describe both the recent evidence and the institutions' policies.
§ Mr. WorthingtonTo ask the Chancellor of the Exchequer what plans exist for the EC nations having a shared policy at the World bank and the International Monetary Fund.
§ Mr. Nelson[holding answer 11 December 1992]: European Community member states are all individual members of the IMF and the World bank and instruct their representatives accordingly. There are no plans to change this practice. Furthermore, while the United Kingdom is in a single member constituency at the executive board, most EC member states are in constituencies with a wide range of non-EC countries.
§ Mr. WorthingtonTo ask the Chancellor of the Exchequer what new proposals he has to take to the World bank and the International Monetary Fund to lower the debt burden of developing countries.
§ Mr. Nelson[holding answer 11 December 1992]: The Government continue to encourage the IMF and World bank to support commercial debt and debt service reduction deals. As noted by the IMF-World bank development committee on 21 September, 12 countries, which account for more than 90 per cent. of the commercial bank debt of the major debtor nations, have now reached agreement on such arrangements. Furthermore, as a direct result of the Prime Minister's initiative to relieve the official debts of the poorest and most indebted countries, the Paris club of creditor Governments began implementing Trinidad terms last December. These provide for a reduction of up to 50 per cent. of certain official bilateral payments, and give a commitment on the part of creditors to address the question of the country's stock of debt after a period of three to four years of proven financial and economic responsibility. So far, 12 countries have benefited, and I am sure that many more will follow. The United Kingdom will continue to press our creditor colleagues to agree improvements in the terms on offer.