§ Ms DrownTo ask the Chancellor of the Exchequer, pursuant to his answer of 11 April 2002.Official Report, column 576W, on heavily indebted poor countries, if he will estimate the proportion of the additional $50 billion per annum which would be devoted to debt relief, broken down by country. [51278]
§ Mr. BoatengThe cost of achieving the International Development Targets has been estimated at an additional US$50 billion per annum, equivalent to a doubling of current global aid. The commitment by the US and EU is a major step towards meeting the requirements for this additional US$50 billion; there has not yet been full commitment to deliver the entire amount, nor decisions made on how such an amount could be delivered if the total was achieved.
Debt reduction under the HIPC initiative can therefore be only one element of the additional finance required. Both the US and EU have yet to decide on how to distribute this increased level of resources, we expect that one of the ways could be through debt relief.
94WAt the moment the HIPC initiative is helping to increase social expenditures in countries receiving HIPC debt relief by $1.7 billion in 2001–02, equivalent to 1.2 per cent. of GDP. On average, health and education spending account for 65 per cent. (40 per cent. on education and 25 per cent. on health) of the use of HIPC debt relief.