§ Dr. TongeTo ask the Secretary of State for International Development what mechanisms her Department is developing to ensure that the proceeds of debt relief are invested in measures aimed at reducing poverty. [79519]
§ Clare ShortI strongly agree that the resources freed up by debt relief need to be invested in poverty reduction programmes if we are to achieve the international development targets, including halving the proportion of people living in extreme poverty by 2015. We are pressing for the link between debt relief and poverty reduction to be examined and strengthened during the fundamental review of the Heavily Indebted Poor Countries (HIPC) Initiative, which is underway.
HIPC debt relief is available only to countries following programmes agreed with the International Monetary Fund and the World Bank. We are working with these organisations to ensure that programmes are designed to promote high quality growth, and that the resources freed up by debt relief are allocated to poverty reduction programmes. Following last year's review of IMF's Enhanced Structural Adjustment Facility (ESAF), we are working with the Fund to ensure that more priority is given to the social impact of programmes, and that more attention is paid to including civil society in the design of programmes, to increase their poverty impact.
In addition, following proposals put forward by the UK, the World Bank is developing a set of general principles of good practice in social policy in consultation with the IMF. We envisage these principles should be drawn upon by the IMF and the World Bank in the design of programmes, to ensure that they protect and promote spending on health and education.