§ Mr. ChidgeyTo ask the Secretary of State for International Development what assessment his398W Department has made of the link between good governance and its relation to economic productivity in developing countries with particular reference to (a) Guinea and (b) Senegal. [166590]
§ Hilary BennGood governance and economic growth are crucial requirements for poverty reduction in Africa. Our experience and research shows that broad based economic growth and poverty reduction can only be sustained where there is effective government. Investment is vital for growth and businesses will only invest if they feel confident that they will benefit from successful investment and perceive the risks of expropriation to be low. The priorities for improving the business environment will depend on country context.
DFID has not made any country specific assessment of the relationship between good governance and economic productivity in either Guinea or Senegal. Our assistance to both these countries is mainly through multilateral channels such as the EC and World Bank. In Senegal our assistance through these channels amounted to £13 million in 2001. In Guinea we are closely in touch with the EC who are starting negotiations with Guinea on necessary governance reforms, as a condition of resumption of EC assistance. There is a clear connection between such reforms and economic development.