§ 17. Mr. Stephen O'BrienTo ask the Secretary of State for International Development if she will make a statement on relieving third-world debt. [6129]
§ Clare ShortTwenty-three countries have now qualified for relief under the Heavily Indebted Poor Countries (HIPC) Initiative, with three countries Bolivia, Mozambique and Uganda having completed the HIPC process. More than $53 billion of debt relief has been agreed for those countries, which together owe $74 billion, so a major part of their debt has been written off. The money released is spent on poverty reduction.
The impact of that debt reduction means that social expenditure (primarily on health and education) in those countries is projected to rise by $1.7 billion per year. On average, these countries are expected to spend more than three times as much on social sectors in 2001–02 as on debt service. We hope that a further three countries—Ghana, Ethiopia and Sierra Leone—will reach their Decision Point this year. But the prospects of the 11 remaining eligible countries qualifying for relief in the near future are slim, as they are affected by conflict or have yet to demonstrate their commitment to reform. Greater progress on conflict resolution is needed so that these countries can qualify for debt relief.
§ Andrew GeorgeTo ask the Secretary of State for International Development what progress she has made in working with her counterparts in(a) Europe and (b) other western nations to reduce the burden of debt in less developed countries. [6120]
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§ Clare ShortThe international community continues to emphasise its commitment to reducing the debt burden of the poorest indebted countries, so that additional resources could be released for poverty reduction. At Genoa, the G8 leaders reaffirmed their commitment to the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Also, the Paris Club of Official Bilateral Creditors, which brings together its 19 permanent members from Europe and elsewhere, have agreed to participate fully in the HIPC process, delivering debt relief to countries that have qualified for HIPC.
Twenty-three countries have now qualified for HIPC relief, with three countries Bolivia, Mozambique and Uganda having completed the HIPC process. More than $53 billion of debt relief has been agreed for those countries, which together owe $74 billion, so a major part of their debt has been written off.
We hope that a further three countries—Ghana, Ethiopia and Sierra Leone will reach their Decision Point this year. But the prospects of the 11 remaining eligible countries qualifying for relief in the near future are slim, as they are affected by conflict or have yet to demonstrate their commitment to reform. Greater progress on conflict resolution is needed so that these countries can qualify for debt relief.
The UK is playing a key role in the development of the new Global Health Fund which is designed to make available drugs and commodities for the prevention and treatment of HIV/AIDS, TB and Malaria in the poorest countries. We have committed £125 million to this initiative which will benefit the poor in Africa and elsewhere.
In addition, the Government are exploring the potential of a number of options for increasing the long-term affordability and availability of treatment for HIV/AIDS and related infections, while maintaining a focus on the development of sustainable health systems which is needed to deliver them.