§ Mr. HoyleTo ask the Secretary of State for International Development what plans she has to ensure that flows of foreign direct investment benefit poorer countries and contribute to development. [29690]
§ Clare ShortMy Department is working extensively to increase the amount of beneficial trade and investment flowing to the developing world, particularly the poorer countries. The best way to increase such trade and investment is likely to be through efforts to secure a more open and transparent international trading regime. Apart from engaging in the international policy debate over fairer trade policy, we are working with our partner governments to encourage growth of the private sector within poorer countries. The Department's support for economic reform packages assists countries achieve macro-economic stability. Our good governance agenda464W aims to increase the competence and strength of government, including the key interfaces with the private sector such as the judicial system and revenue collection.
I have also provided a grant to support the Ethical Trading Initiative which brings together the private sector, NGOs and unions to work on the implementation of ethical codes of practice for the production of goods sold in our shops. This will help promote best practice in overseas enterprises including many financed through foreign direct investment by improving the working conditions of their employees.