§ Mr. Alan SimpsonTo ask the Chancellor of the Exchequer what plans he has to review and audit the UK contribution to the financial assistance package for Brazil; and if he will take into account the impact of the adjustment policies agreed by the Brazilian Government in negotiations with the IMF on the poor and vulnerable. [87585]
§ Ms HewittFinancial tensions in Brazil have eased significantly, following the IMF-led international financial support package agreed last year. The UK Government will continue to play an active role in monitoring Brazil's performance under its IMF programme. Continued adherence, under the IMF programme, together with an appropriate contribution from private sector creditors, underpins the BIS co-ordinated credit line, to which the UK has also contributed.
My right hon. Friend the Chancellor of the Exchequer has consistently stressed the importance of preserving investment in the health, education and social programmes which are essential for growth and poverty reduction. He has pressed for the World Bank's work on good practices in social policy to be drawn upon by the World Bank and the IMF when designing adjustment programmes. In Brazil, the IMF and the World Bank and the INTER American Development Bank worked together closely to ensure that the impact of the adjustment programme on the poor and vulnerable was minimised. Both banks have undertaken a number of projects in Brazil with a social dimension. Economic recovery in Brazil should benefit all sections of society.