Third World (Hansard, 18 June 2002)

§ Mr. Laurence Robertson
To ask the Secretary of State for International Development what discussions she is having to regulate the activities of international organisations with respect to the Third World; and if she will make a statement. [61934]

§ Clare Short
There are a large number of international organisations whose activities influence developing countries, these include the World Trade Organisation (WTO), World bank and regional development banks and the UN Agencies. The WTO exists as an organisation whose members can agree the trade rules that they consider to be mutually beneficial, with decisions made through consensus; the formal regulatory environment for the World bank and the regional development banks is established through their Articles of Agreement; UN agencies are regulated through their mandates. The executive boards of the multilateral development banks and the UN agencies provide day to day policy direction, oversight and control. In the Government's 2000 White Paper "Making Globalisation Work for the Poor" we are committed to build a stronger, more open and accountable international system, including to increase the capacity of poor countries to negotiate in the WTO, and I am continuing to have discussions with other stakeholders on how best to take this work forward.

§ Mr. Laurence Robertson
To ask the Secretary of State for International Development what steps she is taking to encourage third world countries to protect(a) poorer farmers and (b) the environment in their own countries. [61932]

§ Clare Short
My Department is working with developing countries on poverty reduction strategies that will enable the poorest to lift themselves out of poverty. Three-quarters of the world's poorest people live in rural areas and depend significantly on agriculture. In many countries, therefore, this means attention to rural development and agriculture. Countries where we are already engaged in agricultural and rural reform processes include: Bangladesh, Cambodia, Ghana, India, Malawi, Mozambique, Nepal, Nigeria, South Africa, Tanzania and Uganda. My Department has recently issued a consultation paper, "Better Livelihoods for Poor People: the Role of Agriculture". This focuses on the livelihoods of small and medium producers and proposes action within developing countries, particularly with regard to the policy and institutional environment that will create opportunities for the poor; at international level with regard to trade, standard setting and international agricultural research; and domestically with regard to he distortions caused by EU agricultural subsidies and trade barriers.
We are also encouraging countries to mainstream environment within their poverty reduction strategies, recognising that more effective environmental management can contribute to sustained poverty reduction. Action is proceeding in four main areas: improving governance; enhancing the assets of the poor; improving the quality of growth; and reforming international and developed country policies. This broad agenda shows that the issue of environmental protection cannot be looked at in isolation, and that many decisions affecting the environment are not taken by those directly responsible for environmental issues.
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§ Mr. Laurence Robertson
To ask the Secretary of State for International Development what discussions she is having with EU Ministers about improving its third world aid budget and the delivery of aid to those countries; and if she will make a statement. [61936]

§ Clare Short
I am in regular contact with EU Development Ministers to discuss how to improve the effectiveness of EC development assistance. Most recently, we met during the EU Development Council on 30 May to discuss reform of EC development assistance as well as the EU position for the upcoming World Summit on Sustainable Development.
My Department is focusing its efforts on two broad objectives: improving the overall effectiveness of EC development assistance and increasing its poverty focus. We welcome the positive steps that have been taken to reform EC development assistance and are pressing the EC to pursue its reform efforts vigorously in order to implement the November 2000 EC Development Policy, which for the first time, makes poverty reduction the central objective of EC development programmes. We are working for agreement that a much greater share of EC aid should be allocated to low income countries where it will have the greatest impact on poverty reduction. In 2000, only 38 per cent. of EC aid was spent in low income countries compared to 70 per cent. in 1990.