Global Poverty (Hansard, 15 July 2002)

§ John Healey

In recent months, the UK Government have been at the forefront of efforts to mobilise the international community to tackle global poverty by promoting a global new deal between developed and developing countries—a new development compact building the foundations for a virtuous circle of debt relief, poverty reduction and sustainable development.

This effort focused on the achievement of the Millennium Development Goals (MDGs), including halving the proportion of people living in extreme poverty, ensuring all children can attend school, and dramatically reducing child and maternal mortality rates.

Pledges from the US and the EU made at Monterrey in March will, from 2006, raise an extra $12 billion each year for achieving the MDGs with—following the G8 summit in Kananaskis in June—possibly half or more of these funds going to Africa.

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Furthermore, following the outcomes of the Spending Review 2002, announced by the Chancellor today, the UK has increased its aid commitments to developing countries from 0.33 per cent. of national income in 2002–03 to 0.4 per cent. by 2005–06. This is the largest ever rise in UK aid, and a 93 per cent. real terms increase since 1997, which makes clear the Government's commitment to the United Nations 0.7 per cent. target. The increase means the UK's aid to national income ratio will be more than double the current G7 country average, and far ahead of the current OECD average of 0.22 per cent. In addition, the Department for International Development has announced, for the first time, a £1 billion annual bilateral programme for Africa by 2005–06.

On debt relief an extra $6 billion is being provided so far this year—taking the total to $62 billion across 26 HIPCs. At the G8 summit, leaders agreed to fund the financial shortfall in the HIPC Initiative, pledging an extra $1 billion. In return for good governance, prudent new borrowing and sound debt management, the G8 will take action to secure the participation of all creditors, and ensure a robust exit from debt.

The UK Government have endorsed the World bank's education fast tracking initiative, launched in May 2002, which provides the first focused financing framework for achieving the Education for All goals. In addition, at the G8 summit in June, Heads of Government agreed to increase significantly bilateral assistance for countries that have demonstrated a strong and credible policy and financial commitment to these goals. In the coming months the UK will work to take forward this agreement and urge other donor Governments and the multilateral development banks to join our renewed effort to ensure that, by 2015, every child can go to school.

Just as the UK Government are committed to significantly increasing investments in education, so too we should accelerate support to build universal and equitable health care systems. The UK is encouraging the World bank, UN agencies and other donors to work together to ensure that developing countries with credible policy commitments have the resources necessary to strengthen health systems. In 2002 the Global Fund to fight HIV/AIDS, TB and malaria was launched. To date more than $1.9 billion has been pledged to the fund, of

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which the UK has committed $200 million over five years. And in addition to on-going commitments to combat these three killer diseases, the G8 Heads of Government have committed to provide sufficient resources to eradicate polio by 2005. The UK has also introduced a tax credit to encourage companies to increase research and development into vaccines and medicines for the prevention and treatment of malaria, TB and those strains of AIDS which predominantly affect people in developing countries.

In the months ahead and at the annual meetings of the IMF and World bank in October, the UK will press for further joint action in meeting the Millennium Development Goals.