Covid-19: International Response

Lord St John of Bletso Excerpts

Monday 18th May 2020 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, in my allotted two minutes I wish to make five points and pose two questions. Clearly this is a global disease that mutates at a staggering rate, so we cannot afford to leave any disease reservoirs untreated if we are to be successful.

Britain is leading the world in funding a vaccine and we should seek to lead in other medical solutions. We need new global leadership by the UK in the absence of China and America. This provides the United Kingdom with the opportunity to redefine our trading partners post Brexit.

A prolonged lockdown has dire economic consequences, with massive global unemployment, and it will take us until the end of 2021 to fully recover.

The pandemic has accelerated the rate of deglobalisation that started with the US-China trade wars. As several noble Lords have already mentioned, Africa is an obvious case in point that will require enormous support from the developed world in countering this pandemic. This offers the West the opportunity to displace Chinese influence on the continent.

Finally, we need to develop the capability to test and track for various strains in the pandemic. I recently had the antibody test and, to my surprise, found that I was IgG positive, meaning that I have had the virus but am fully recovered and no longer contagious. What is more, I had no idea that I had the virus. Obviously I am relieved that I now have the antibody.

I have two questions for the Minister. First, what are our Government doing to support international trade and the movement of capital and people, thereby promoting the United Kingdom as a bastion of fine free trade? Secondly, what efforts are being taken to promote a unified and international approach to tackling this pandemic?

Africa: Population Growth

Lord St John of Bletso Excerpts

Monday 29th April 2019 Lords Chamber

[Baroness Sugg]

I thank the noble Lord for his welcome. He is right to highlight that. Further, Niger has the highest fertility rate in the world. To harness the benefits of demographic transition, we need to invest majorly in quality education, as well as family planning and helping women to space their families properly. We think that sustainable progress on these issues must be African owned and led, and we are supporting our partners to plan for the population growth and to empower and invest in the region’s young and growing populations through greater access to voluntary family planning, wider sexual and reproductive health and rights, education, gender equality and economic development to help stimulate job creation.

[Lord St John of Bletso (CB)]

My Lords, is the Minister aware that 60% of the population of Africa are under the age of 25, and 65% live in rural areas? What are Her Majesty’s Government doing to promote greater access to education, housing, healthcare and job opportunities in these rural areas?

[Baroness Sugg]

The noble Lord is right to highlight that over 60% of people on the African continent are under 25 and, as I said previously, we expect to see a great deal of population growth in the region. We are working hard to ensure that there is better access to healthcare. On education, in particular, between 2010 and 2015 we supported 11.4 million children and young people to gain a decent education, more than 5 million of whom were girls. We have a specific project—the Girls’ Education Challenge—which currently supports marginalised girls to benefit from a quality education and to acquire know-how for work and life. This will give them a second chance to learn, and we are specifically targeting it on highly marginalised girls.

Crime: Scooter and Moped Gangs

Lord St John of Bletso Excerpts

Tuesday 23rd January 2018 Lords Chamber

Asked by

[Lord St John of Bletso]

To ask Her Majesty’s Government what measures they are taking to address a reported increase in the number of robberies and assaults perpetrated by gangs on scooters or mopeds; and whether they intend to review restrictions on police pursuing suspects who are not wearing helmets.

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

My Lords, the Government are working with a wide range of partners to understand better the drivers of these crimes and what more can be done to prevent them. This sits alongside a review that the Government have announced of the law, guidance and practice surrounding police pursuits and response driving. In that context, I can confirm that there is no national ban on the police pursuing suspects who are not wearing helmets.

[Lord St John of Bletso (CB)]

My Lords, I am grateful to the Minister for that reply, but is she aware that in the last two years approximately 30,000 motorcycles and scooters have been stolen in and around London alone, and that many of those have been used to perpetrate crimes? Does she have the statistics for two-wheel-enabled crime? What can be done to increase the arrests and prosecutions of the perpetrators, many of whom are aged between 12 and 20?

[Baroness Williams of Trafford]

My Lords, I thank the noble Lord for that question. We cannot be sure of the actual number of lost or stolen motorcycles being used across London to commit these crimes, but the Metropolitan Police Service reported a sharp increase in motorcycle-related offences in the year to June 2017. Recently, it has reported a fall in such crimes but it is too early to say whether that is the start of a sustained downward trend or a seasonal fall. I understand that the various partners and the Home Office had a meeting and will continue to work together to produce an action plan. As for the action that we are taking, we are working with the National Police Chiefs Council’s lead on vehicle crime, and we will be taking that forward as part of a high-level action plan to understand the drivers for such crimes.

South Africa: Money Laundering

Lord St John of Bletso Excerpts

Thursday 19th October 2017 Lords Chamber

[Lord Bates]

I totally agree with the latter part of the noble Lord’s point. That is exactly why we have taken action in referring this matter to the Financial Conduct Authority. That is why we passed the Criminal Finances Act in April this year and introduced the tough new anti-money laundering regulations in July this year. That is why we introduced, just yesterday in your Lordships’ House, the Sanctions and Anti-Money Laundering Bill, which my noble friend Lord Ahmad will take through the House. We are taking this very seriously because we realise the consequences of not doing so for the reputation of the City of London and the UK.

[Lord St John of Bletso (CB)]

My Lords, in light of the endemic corruption of the state in South Africa, what are Her Majesty’s Government doing to deal with the broader issue of state capture, a term used to describe the misappropriation of state funds by a power clique?

[Lord Bates]

I think the other point to recognise is that in South Africa there are democratic processes and systems of law. The parliamentary inquiry is now under way into state capture by the specific companies that were referenced. A judicial commission of inquiry into state capture has been proposed but has yet to start to take evidence. We recognise that South Africa needs to go through its processes to find out what happened and who is responsible so that action can be taken, both domestically and internationally.

Commonwealth Development Corporation Bill

Lord St John of Bletso Excerpts

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords & Report stage (Hansard): House of Lords
Thursday 9th February 2017 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, I, too, warmly welcome this Bill. When the new world order appears to be more disorder and one of the key themes of the World Economic Forum in Davos is rising inequality and the threat this poses to economic and political stability, the Bill comes at an opportune time.

Clearly, addressing poverty is critical to addressing global inequality. We have moved from the millennium development goals to the sustainable development goals and the role of the private sector has been recognised as a central part of achieving this agenda. Many of the major development initiatives in Africa have come from foreign aid agencies, local and international NGOs and publicly funded multilateral financial institutions. So I wish to focus my few remarks in support of this Bill on the key role that the CDC has played and continues to play in some of the most challenging countries in Africa.

During the last 15 years, the growing Africa-focused private equity community has had a unique opportunity to play its role in what is becoming a development relationship. Private equity has been good for African economic development. It has helped to promote a healthy business sector, as well as creating jobs and alleviating political instability, while taking pressure off Governments to be universal problem solvers. Here, certainly, the CDC has played its role in the development of the private equity industry, particularly in the last two decades. It was an early investor in the 1990s, while the DFIs still focused on debt. Since then, the number of private equity funds has grown from around a dozen Africa-focused funds managing some $1 billion, to well over 200 firms managing over $30 billion. The CDC has played an incredibly important role in poverty reduction, working with these private sector companies and investors to create sustainable growth in its target countries.

As the Minister mentioned in his introductory comments, the CDC is now a transformed institution. From 2012, when the CDC invested some £200 million a year in a broad geography from Latin America to south Asia to Africa, with a staff complement of 50, it has now well over 250 staff. It is investing and will continue to invest more than £1.2 billion a year, focused on Africa and south Asia.

I do not agree with the noble Lord, Lord Judd, that the CDC has become just another investment bank. There have been some notable success stories. While the humanitarian response to tackling the Ebola crisis in Sierra Leone, Liberia and Guinea was very successful and essential, the CDC made a valuable contribution in rebuilding many affected businesses by providing much-needed SME loans. As the Brookings Institution rightly mentioned in its recent Foresight Africa report, with many millions of young Africans entering the labour market every year, job creation remains a top agenda item. Here I agree entirely with the noble Baroness, Lady Northover, that human resource development must be a core focus.

The potential threat of climate change has put many parts of Africa at risk of disasters such as floods and droughts. Many Governments continue to face corruption and violence, and global political uncertainty has complicated peacekeeping efforts, aid disbursement and overall investment. Among the many challenges facing sub-Saharan Africa are not just unemployment but lack of infrastructure, food insecurity, inadequate access to education and healthcare and, of course, to clean water, in all of which the CDC is playing a key role. Often the public sector is ill equipped to tackle these challenges, and this is where the private sector can play a critical role. The CDC, with its well-respected 70-year track record, has made a very important contribution in identifying and nurturing management teams and companies that have provided and continue to provide solutions to many of these problems.

Sub-Saharan Africa suffered one of its worst years in terms of foreign direct investment last year. This was due partly to the fall in commodity prices, particularly the oil price, as well to other concerns, including those of international investors about collapsing local currencies, and was exacerbated by high levels of corruption and lack of accountability. Although technology has continued to transform the continent with the introduction of broadband and many other innovative, transformational technologies, the many challenges that Africa faces are unlikely to be solved in the short to medium term. This will obviously impact negatively on the lives of millions of the poorest people. That is why it is important that the CDC continue to provide much-needed capital and mobilise other international private capital to co-invest in well-run businesses with high levels of integrity and high social and environmental standards. I stress the importance of long-term capital in this regard. These projects can range from building schools to the establishment of hospitals, agribusinesses, renewable energy, ports and logistical infrastructure. While these are all needed in most countries in sub-Saharan Africa, the CDC has not shied away from going to some of the most challenging areas. Here I mention some of the agribusinesses in which the CDC has invested in northern Nigeria, which have had a transformational impact on many of the people there.

A good example of the CDC’s work is the development in Virunga in Eastern Congo. The CDC has helped to construct a hydropower plant that has already transformed the lives of many of those in the area who were living in desperate conditions, through providing jobs and training to former child soldiers who became socially excluded adults. This will in all likelihood have an added benefit of reducing the erosion of natural resources in the parks, which includes the rampant problem of wildlife poaching.

I warmly support the Bill, which provides much-needed long-term additional funding to the CDC, but as it is a money Bill that will not be deliberated on further in your Lordships’ House, it is important that a firm business plan is in place outlining the medium and long-term road map for the CDC, with appropriate checks and balances. In this regard I was reassured by the Minister’s comments in introducing the Bill.

Finally, I acknowledge the leadership, commitment, dedication and vision of the CDC’s chief executive, Diana Noble, who will sadly retire in June this year, and pay tribute to the able chairmanship of Graham Wrigley.

Sierra Leone

Lord St John of Bletso Excerpts

Monday 29th June 2015 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, it is always a pleasure to follow my noble friend Lord Crisp, with his deep knowledge and passion for healthcare improvement in Africa. I join him in thanking my noble friend Lady Hayman for introducing this topical debate on a subject that, sadly, has had very little media coverage of late.

Although much of the recent World Heath Organisation report on the Ebola situation in Sierra Leone makes encouraging reading, major challenges still lie ahead to eradicating the disease, particularly preventing cross-border traffic between Sierra Leone and Guinea. More needs to be done to contain the threat in the northern provinces of Port Loko and Kambia. The Sierra Leone Government, with their limited police force and army, are severely restricted in fully monitoring checkpoints.

There is no doubt that the long-term effects of the Ebola outbreak will linger for many years to come, posing challenges not just for healthcare workers but for communities right across the country that are left with many hundreds of thousands of orphans. The charity Street Child UK is to be commended for its incredibly impressive and great work supporting those orphans. For the immediate future, one of the greatest challenges facing the country will be youth unemployment. Although there have been a number of initiatives to create jobs and kick-start growth in the country, this is an uphill battle. With extensive mobile coverage right across the country, I believe that a lot more can and should be done to provide affordable broadband, particularly in Freetown.

With commodity prices having collapsed over the last few years, the mining sector in Sierra Leone is currently not sustainable, with a chronic lack of adequate infrastructure and access to power. However, as the noble Lord, Lord Giddens, mentioned, the agricultural sector has a chance for hope in the future. The agricultural sector, where most of the population works, unfortunately has very disheartening statistics showing that coffee, cocoa and all types of tropical fruit are rotting on the trees, with lots of fields remaining fallow, as local farmers do not have adequate equipment either to harvest or to take the produce to market.

My noble friend rightly mentioned the problem of malnutrition. I recommend that assistance be given to finance a form of co-operative among the farmers, not just by helping them to finance their equipment but by training them to potentially build more food processing factories for the local market. I believe that there is huge scope for more beneficiation within the country. If one goes into Freetown, one will see that the supermarkets, many of which are run by Lebanese traders, offer tropical fruit cartons and bottles, but almost all of these are imported.

Sierra Leone desperately needs more clean water, not just for Freetown but in the villages and provinces. In the dry season, the main water sources are rivers, streams and abandoned mine workings. Most of these sources are contaminated, which is a major source of high mortality for the very young, the very frail and the elderly. Solar-powered water pumps in the villages could be a major boost for the provision of clean water.

On a brighter note, Sierra Leone is blessed with some of the most beautiful beaches in the world, comparable to those in the Caribbean and the Seychelles. I believe that, in the future, once the outbreak has been tackled, there is huge potential for the tourism industry.

In conclusion, our Government, in conjunction with our European partners, have played a pivotal role in tackling the epidemic and, just as importantly, in putting measures in place to reduce the chances of another Ebola outbreak. We have been instrumental in rebuilding the political and socioeconomic infrastructure after the civil conflict that ended in 2001. In March this year, west African leaders called for a “Marshall plan” to help with regional reconstruction after Ebola, saying that the region is “coming out of a war”, with its economy and public services decimated. One of the key lessons from this devastating EVD disaster is the need for the Government of Sierra Leone, as well as the international community, to take proactive measures to prevent another disaster.

Ivory Trade

Lord St John of Bletso Excerpts

Thursday 5th December 2013 Grand Committee

[Lord St John of Bletso (CB)]

My Lords, I am grateful to the noble Lord, Lord Faulks, for introducing this topical and very important short debate. I declare an interest in that for more than 20 years I have been a trustee of Tusk, one of the largest wildlife conservation charities in Africa, which funds not only wildlife conservation but community development and wildlife education, which is very important. I have also worked closely with Space for Giants, to which the noble Lord, Lord Jones, referred, which has done remarkable work in conservation, particularly in Kenya, and is working with the Evening Standard and the Independent on a public awareness campaign.

It is very alarming that, according to reports published recently, particularly in 2011, 12% of Africa’s elephants were illegally killed and as many as 20% of central Africa’s elephant population was poached in just that one year. With South Africa being home to almost 80% of Africa’s rhinos and just over 70% of the global population of rhinos, the poaching of this endangered animal has been rampant. In fact, statistics show that almost two rhinos are being poached every day in South Africa.

As the noble Lord, Lord Faulks, mentioned, most of the seizures of illegal ivory and rhino horn have been destined for the Far East, predominantly China and Vietnam, although one should not forget that they have also been going to America and to other parts of the European Union. The illegal cargo, particularly from Africa, has been shipped from ports such as Mombasa, Dar es Salaam and Mozambique, hidden in shipping containers full of foodstuffs. There have been recent reports that the ivory and rhino horn have been smuggled out of Africa on planes in suitcases by many Chinese who are working on the continent. As the noble Lord, Lord Faulks, mentioned, the trade in tusks, horns and other animal parts is one of the world’s biggest criminal enterprises, after arms, drugs, counterfeiting and human trafficking. The trade has helped murderous organisations such as Somalia's al-Shabaab, Darfur's Janjaweed militia and the Lord’s Resistance Army in Uganda. As has already been mentioned, the demand for ivory in China has resulted in prices going up by more than 50% in the past year, and one ounce of rhino horn is worth more than an ounce of gold. The Elephant Action League calls ivory,

“the white gold of jihad”.

However, there have been some success stories. I am pleased that the noble Lord, Lord Jones, mentioned the herd populations in Botswana which are growing at a very encouraging rate. There has also been a lot of success in Kenya, particularly in Laikipia, where poaching has fallen by more than 65% in the past year. Unfortunately, in the DRC, where governance is at its weakest, the elephant population has been hit the hardest by continued rampant poaching. Tanzania has also been particularly badly affected by poachers and, sadly, many elephants have been poisoned, shot down by AK47s and even killed with rocket-propelled grenades by renegade soldiers in helicopters. It is just senseless. At the current rate of poaching, many wildlife experts forecast that, in several parts of Africa, the elephant herds will be totally wiped out.

These statistics, both in the supply and demand of ivory and rhino horn, are alarming, but there are a few glimmers of hope. The noble Lord, Lord Jones, referred to the recent summit in Botswana, where Africa’s elephant rangers and conservationists met to participate in a summit to work out and agree emergency measures—and there have been some encouraging measures from that summit, particularly in the protection of elephants. They plan to promote action by range states to enhance security and tackle wildlife crime. It is also encouraging that there will be another summit here in London next year.

Kenya has one of the largest populations of elephants in Africa. In the most encouraging move since 1977, the Kenyan Government have recently introduced the Wildlife Conservation and Management Bill, which will become law next year. They are also, at long last, giving a lot more support to front-line anti-poaching teams. In South Africa, conservationists have experimented with poisoning the horns of rhinos, which causes no harm to the rhino, but which would render the rhino horn worthless. Over 1,000 rhinos in South Africa have been treated in this manner. It is hoped that, when consumers of rhino horn realise that they could potentially be poisonous, this will drive down demand for rhino horn. It is well known that almost all poaching, particularly of rhino, takes place with inside knowledge of so-called gamekeepers, as well as security guards.

In conclusion, there are a number of measures that need to be taken to address this major problem. There needs to be greater investment in more rangers and community policing initiatives to counter poachers, as well as improved law enforcement across all range states and consumer nations. It is well known that the crime syndicates have been bribing police and magistrates in several African countries to prevent prosecution, as well as corrupting border guards, customs officers, port officials, shipping companies and, sadly, even government Ministers.

I entirely agree with the noble Lord, Lord Jones, that there ought to be far greater penalties against those found guilty of poaching and dealing illegally in ivory and rhino horn. To date, the penalties have been derisory. Furthermore, cross-border investigations and prosecutions have been virtually non-existent in Africa. I would also like to see more government-backed demand reduction programmes, particularly in China, Vietnam and other consumer countries in the Far East.

What is apparent is that there is huge ignorance among consumers. There have been strong calls for China to shut down official factories and shops dealing in ivory and rhino horn. Unfortunately, the release and sale of the African stockpile of ivory in 2008 gave the impression to many consumers that buying ivory was acceptable, which enabled traders to launder illegal ivory through the very short time when there was a legal market.

In conclusion, I am encouraged that at long last there are the first signs of global awareness of the illegal ivory and rhino horn trade, as well as the lion trade. Up to 30% of all the lions in South Africa are kept in captivity. It is not just about the impact on the trade; it is also about the sustainability of tourism. It is vitally important that this subject is not ignored and is put higher on the international political agenda. It is through debates such as this one, backed by the power of social media, that we will, I hope, substantially reduce this disastrous situation.

Queen’s Speech

Lord St John of Bletso Excerpts

Wednesday 15th May 2013 Lords Chamber

[Lord St John of Bletso]

My Lords, the gracious Speech referred to the importance of ensuring security, good governance and development. There was no reference to the important role that our Government continue to play in the economic, social and political developments in Africa. In her opening speech, the noble Baroness spoke about the successful elections in Egypt and Tunisia, as well as the positive developments in Somalia—all very encouraging. She did not speak about the recent election in Kenya, which thankfully was peaceful and where President Kenyatta has given a commitment to the devolution of government and the promotion of growth as well as much needed infrastructure development.

In my short allotted time, I shall touch briefly on three challenges facing southern Africa: the forthcoming general election in Zimbabwe, which is likely to be in September; the millennium development goals, more specifically food insecurity and the need for more support infrastructure, particularly by the Commonwealth Development Corporation; and, finally, an issue close to my heart, as I wear the tie, the poaching crisis in sub-Saharan Africa.

The recent successful referendum on the constitution in Zimbabwe should be the first step towards democratic reforms leading to the general election scheduled for September. So far, so good. Although over the past five years there has been considerable economic progress in the country, with the so-called unity Government of the MDC and ZANU-PF, the army, the police and the dreaded CIO are all still controlled by President Robert Mugabe’s ZANU-PF, which raises the threat that the forthcoming elections may be marred by intimidation.

To ensure that the elections are free and fair, transparent, non-violent and sustainable, it is essential that international observers are allowed to monitor the general election. Unfortunately, not much progress has been achieved in getting that consent from ZANU-PF. That is certainly a cause of concern. Can the Minister assure us that we will put pressure on SADC as the guarantor of democracy in Zimbabwe to ensure that that essential check and balance is put in place? The dividends of a free and fair election in Zimbabwe would be a huge boost not just to the country but to the entire region. It would lead to the lifting of the remaining economic sanctions and, I hope, pave the way to Zimbabwe rejoining the Commonwealth.

The noble Lord, Lord Chidgey, referred to the millennium development goals and the fact that many countries, particularly in sub-Saharan Africa, have made major progress towards achieving them, while my noble friend Lord Hastings referred to the wealth divide in Africa. While there has been steady economic growth with improvements in poverty reduction, universal primary education, gender parity and healthcare on the continent, the lack of efficient farming, inadequate storage and, in particular, poor infrastructure and transportation have added to the threat of a major and escalating food insecurity crisis.

The lack of adequate infrastructure in Africa has been identified as one of the major impediments to development and economic growth. Increasing the power supply is a key driver of sustainable growth. Most countries in Africa have chronic power supply problems. The Commonwealth Development Corporation, which is controlled by DfID, has played a major role in investing in African infrastructure but could, in my opinion, play a much bigger role in stemming the rise of China’s influence across the continent, in which it has already carved out a substantial role.

Finally, in speaking of the Chinese impact on Africa, while China has in many ways played an important role in the economic transformation of sub-Saharan Africa, by importing its own labour force it has been responsible for the worst wildlife poaching crisis in the continent for several decades, particularly of elephants for the ivory trade and in rhino horn. According to an official recent CITES report, up to 11.7% of Africa’s elephants were illegally killed in 2011, which equates to almost 25,000 elephants in a single year, to supply ivory to the illegal markets in China and the Far East. If this continues, elephants in many countries in Africa will be facing extinction within a decade. The poaching crisis in rhinos is equally stark. What measures can our Government take to draw attention to this crisis and to put pressure, particularly on the Chinese Government, to tackle it?

In conclusion, we have been a leader in international development and have played a pivotal role in ensuring progress in Africa. I hope that the Minister, in winding up this debate, can either write to me or give me some assurances that we are taking a proactive approach to tackling some of these issues.

EAC Report: Development Aid

Lord St John of Bletso Excerpts

Monday 22nd October 2012 Lords Chamber

[Lord St John of Bletso]

My Lords, I join in congratulating the Economic Affairs Committee, ably chaired by the noble Lord, Lord MacGregor, on this extremely comprehensive, informative and constructive report. The effectiveness of aid in promoting development and reducing poverty while ensuring transparency and accountability has always been a thorny issue. What is clear is that economic growth is essential if poverty is to be reduced.

I will focus my few remarks this evening on poverty reduction in Africa. At the outset I applaud the achievements of DfID, which has transformed the lives of so many people, both young and old, in places where, as a result of conflict, climate change, lack of access to clean water, food, healthcare and education, there appeared little hope for them in the future.

However, as the noble Lord, Lord Boateng, said, many parts of Africa are facing a grave crisis of food security, and a lot more should and could be done by DfID to provide more expertise and support for these farmers. I also agree with the noble Baroness, Lady Falkner, that DfID should seek to promote more technical assistance. This was reinforced by the noble Lord, Lord Boateng, who said that science, technology and innovation should be promoted.

On a positive note, we have seen dramatic and encouraging political, economic and social developments in Africa over the past 20 years. Almost two-thirds of the population have access to mobile phones, with Africa now the fastest growing mobile market in the world. Will the Minister elaborate on whether DfID has been involved in the drive to promote more affordable broadband access to those in the developing countries of Africa?

The noble Lord, Lord Tugendhat, referred to the momentous year of 1989. He may not be aware that way back in 1989, of the more than 50 countries in Africa, only three were democracies. Now we stand with more than half of Africa having democracy. Although it is not full democracy, it is certainly an extremely encouraging development. My noble friend Lord Stern, who has just taken his seat, rightly said that the conditions for effective development aid have greatly improved.

The key question and challenge is: how much of the economic growth achieved over the past decade has been transferred into tangible benefits for those in abject poverty on the continent? Sadly, in sub-Saharan Africa, one child in seven still does not survive past the age of five, with many dying from AIDS, malaria, TB and inadequate access to clean water. Will the Minister also elaborate on what measures are being taken to invest in promoting equality in Africa, with greater recognition needed for the important role that women play in driving economic growth?

We have seen huge growth in the mining and extractive industries but all too often that has not translated into similar benefits for the poor people in those countries. The challenge has to be to ensure that economic growth transfers into improving the infrastructure of roads, railway lines and ports; better access to affordable power; and better healthcare and education. With education comes the need to feed children, as has been shown in South Africa, where many children suffered from not having had a meal before going to school in the morning and then losing concentration after just a few hours at school. There also needs to be improved access to clean water as well as to electricity and power, thereby providing the platform for sustainable employment opportunities.

In recognising that economic growth is the most effective remedy for global poverty, this begs the question as to whether aid should be tied to and linked with trade. Paragraph 127 of the report states:

“The UK has long abandoned tied aid aimed at securing commercial benefits, on the lines of the old Aid and Trade Provision”.

Certainly, in Africa, the Chinese have been most successful in linking aid projects, such as the building of roads and railway lines, with securing control over scarce natural resources and gaining access to new and growing markets for their exports. But there have been grave concerns that the Chinese have used their own workforce and expertise, which has not resulted in a much-needed increase in job opportunities for the locals in those countries. They have presented themselves as partners rather than donors.

While the Chinese certainly continue to play a very valuable role in building much-needed infrastructure in many of the developing countries, sadly, there has been a dramatic increase in the poaching of wildlife, particularly elephants for their tusks and rhino for their horns. Very little has been done to combat this growing crisis.

On the business front, I believe that British businesses, both large and small, could and should benefit from the strong relationships that we have in Africa and the continued aid that we give to those developing countries. I was encouraged by the statistic given by the noble Lord, Lord McConnell, that for every £1 in aid that we spend in Africa, we get £2 back in business. Certainly, a lot more can be done to ensure that British aid is “more conspicuously badged”, as it says in the report.

I wholeheartedly support the recommendation of the report that DfID should consider, with the Department for Business, Innovation and Skills, how Britain could derive more direct economic benefit from its development aid programmes without worsening quality and effectiveness for recipients. In encouraging the private sector to invest in developing countries in Africa, thus generating much new growth, jobs and trade, it is important that we encourage these African Governments to strengthen local accountability, good governance, respect for human rights, as well as the provision of a reliable legal system, with the ability to enforce contracts and protect licences. One major drawback for small and medium-sized enterprises in these developing countries is their inability to get finance at reasonable rates. There needs to be more bank reform and greater access to banking facilities. In that regard, I agree with the point made by the noble Lord, Lord Hollick, that DfID should promote more project finance. I welcome the launch of DfID’s joint venture for a prosperity fund, which aims to co-fund projects focused on poverty reduction with the private sector, where both parties share the risk but where taxpayers’ money works harder.

In conclusion, I join those noble Lords who have paid respect to the huge contribution made by the former Secretary of State, Andrew Mitchell. I shall not enter the debate on the 0.7% target. I welcome the decision to focus the bilateral development aid programmes where the need is greatest and where we can have the most impact. My noble friend Lord Stern listed the successes, particularly in Africa, where we have received value for money. Certainly, we need to focus on getting value for money for every pound of aid that we spend. I welcome this report and look forward to the Minister’s reply.

Malawi

Lord St John of Bletso Excerpts

Wednesday 20th July 2011 Lords Chamber

[Baroness Verma]

My noble friend raises a number of key issues here. The support that we were giving was in order to have oversight of good governance and to ensure that economically the country was following the right paths for the delivery of budget aid. However, I bring the noble Lord back to the original Question, the answer to which is that we are continuing to work with the Malawian Government but we will need to direct general budget aid through programmes that we can have oversight of.

[Lord St John of Bletso]

My Lords, does the Minister agree that while it is vital that our Government continue to support Malawi through the aid programme, it is just as important in the medium and long term for our Government to assist the African Union as well as SADC to promote trading blocs to promote more trade and inter-African trade for sustainable economic growth?

[Baroness Verma]

The noble Lord is right. I know that he shares a great interest in that region with the Government. We wish to see greater economic development there, which is why we are encouraging private sector investment but also working with Governments to ensure that they are able to move much more strongly in revisiting their systems and ensuring that good governance overreaches all areas of their government as well as where the budget aid is going.