Post-2015 Development Goals

Debate between Fiona Bruce and Rushanara Ali

Thursday 4th July 2013 Westminster Hall

[Rushanara Ali]

I look forward to the next instalment from the Committee, the right hon. Gentleman and his team. We need to settle the question of how we respond to some of the domestic criticisms on giving aid to big emerging economies, such as India, where hundreds of millions of people still face deep poverty. Many other nations are in that position. We need a political response and an approach that explains why such aid matters. We must also look at how the international community brings in nations that are doing well, such as India and China, to be genuine partners in development, so that we can contribute together to tackle poverty in middle-income countries. Only then will we be able to address the political criticisms and critiques that we face in our country—that also happens in other countries—and settle the question of how we should respond to the challenges.

If we do not address poverty in middle-income countries, we will set ourselves up for future problems—and even very wealthy countries have recently faced conflict. It is far better to anticipate difficulties and consider how we might respond as part of the development agenda process, so I hope the Minister will shed more light on her ideas about how we might do that.

In the remaining time, I shall focus on economic growth and development. Right hon. and hon. Members have mentioned the importance of employment, economic growth and the role of the private sector. Opposition Members very much support building self-sufficiency and creating opportunities for people to become independent and be able to look after themselves, which is at the heart of what people want. We need to ensure that the allocation of DFID resources through private sector programmes is transparent and properly monitored, just as we would expect with NGOs, and that public money is not used in an ideological manner. We must look at where the impact is, whether the outcomes are those that we sought—creating opportunity, jobs and economic development—and whether the programmes are pro-poor.

[Fiona Bruce]

The hon. Lady is right to raise that pertinent point. The Committee is examining different ways to advance funds—not purely through grants, but perhaps repayable loans or joint investments—in ways that ensure that an appropriate return for our taxpayers, which can then be reinvested, is gleaned from the funds invested.

[Rushanara Ali]

I thank the hon. Lady for her comments, and I hope that the Committee will interrogate the CDC about its role in de-risking investment opportunities for companies, because that is one reason it was set up. Too often, people have been concerned that it replicates what the private sector can do and does not act as much of a catalyst to enable innovative finance to go into those countries. I hope, therefore, that that will be looked into, as well as some of the private sector funds that DFID has recently set up. The Opposition want any investments that are made to create genuine economic opportunities and taxpayers’ money to be properly spent.

I have two other points to make. The first is about the impact of conflict on women in particular, and on children. We see all too well that that is another major issue that risks setting back any progress made on development. For example, in the Burmese state of Rakhine, which I visited recently, progress is being made, but the treatment of certain minorities and of women in those groups is setting back progress. We need to ensure that human rights and women’s empowerment are at the heart of development, and I welcome the references made to that by the high-level panel and by the Committee.

Secondly, we need to recognise that world demographics are rapidly changing. Increasing populations, and a growing middle class in India, China, Indonesia and many other countries, present major opportunities, but also pose major challenges due to the pressures on natural resources. As is pointed out in the report, the high-level panel discussion must integrate sustainable development goals into the post-millennium development goals framework. Segmented, siloed approaches will not do for the next phase of what we are trying to achieve and for what we need the international community to work towards addressing.

I have a series of questions to pose to the Minister. In focusing on what happens with the post-2015 goals, what will the Government do to drive home the message of economic opportunity through job creation, apprenticeships and tertiary education?

The Minister will be aware that a major additional support for developing countries is remittance income, which eclipses development aid from the whole world put together. Recent changes, led from the US, are affecting the UK, with banking facilities to remittance companies and money transfer companies being removed by Barclays bank. Therefore, hundreds of billions of pounds are at risk of not getting to developing countries, and the cost of sending that money might increase. In countries such as Somalia, which is a post-conflict state, family members are not getting money into their loved ones’ pockets. We are talking about very poor people who do not receive development aid, and I would be interested to hear the Minister’s response on that point.

The UK Government need to work with the US Government, and the high-level panel ought to look at additional income sources going into developing countries. If the route by which the income gets to its destination is damaged, an even greater challenge is posed to international development budgets, in addition to the tasks at hand of reducing poverty, improving health incomes and tackling educational inequalities. What is the Minister going to do about that issue, which will affect hundreds of thousands of people just in the UK, never mind in other countries? I would be happy to brief her after the debate, if she would like that.

I shall conclude, because I am conscious that we have another debate coming up. I very much hope that the post-2015 development goals have an ambitious focus on working with developing countries, NGOs, and local organisations and populations, both here and in developing countries. The Opposition believe that we must put social justice, tackling inequality, and promoting human rights and labour standards at the heart of the post-2015 goals. If we do not do that, the international community should not be surprised, for example, that in countries such as Bangladesh we witness more than 1,100 people unnecessarily losing their lives in industrial accidents that could have been prevented had labour standards and human rights standards been properly applied. The high-level panel and the international community must ensure that human rights, labour standards and women’s rights are at the heart of everything that is proposed, alongside the economic and social goals.

I hope that our Government—DFID Ministers working with other Ministers and the Prime Minister—will include the rights framework in those proposals, as well as social justice and inclusive pro-poor economic growth. That would address the points that have been made about creating opportunities and building self-sufficiency and independence in people’s lives, so that over time our assistance will be less necessary. Our assistance will always be necessary when there are humanitarian challenges, but development assistance will be less needed over time if we get our act together and ensure that we genuinely help to lift people out of poverty, and give them the opportunity to generate income, set up businesses and create a way of life that builds self-sufficiency.

That is what people in countries where we provide assistance want. We, as taxpayers, want to ensure that we do not put on our televisions and see images of poverty and inequality—year in, year out. We want results. I hope that is what will be focused on, building on the MDGs and the contributions already made to developing countries by the international community.