International Development White Paper

Dominic Raab Excerpts

Tuesday 21st November 2023 Commons Chamber

[Mr Mitchell]

I thank the hon. Lady for her co-operation and her kind personal remarks. She will know that, in order to get buy-in from our friends and experts around the world and from the civil service, the White Paper needed to run to 2030. In the unlikely event that my party is not in government after the next election, any other Government would, I hope, build on it to make it a huge success.

I note the hon. Lady’s remarks about the merger of DFID into the Foreign Office. My task, which the Prime Minister gave me, was to try to make the merger work. That means there needs to be an ability within Government to focus on global public goods and delivering them into the 2030s. That is what I am trying to do. She rightly asks how we get the balance right between multilateralism and bilateral funding. The answer is that we use either, depending on what delivers for our taxpayers and what delivers results on the ground. That is the yardstick; there is no ideology. We go with what works and what is best.

The hon. Lady pointed out the increase in spending in other Departments of ODA money and the development budget. It is true that that has gone up, but every penny is spent within the rules laid down by the OECD Development Assistance Committee. We brought in the innovation of the ODA star chamber in Whitehall, co-chaired by the Development Minister and the Chief Secretary to the Treasury. There is already clear evidence of that ratcheting up the quality of ODA, as the hon. Lady would wish.

The hon. Lady talked about access to finance for poor countries, which is incredibly important. Mitigation projects in middle-income countries are easy by contrast; when it comes to poor countries and adaptation, it is much more difficult. She will see the emphasis in the White Paper on accepting the advice from the Select Committee on increasing the amount that British International Investment does in poor countries. She will notice, too, the emphasis on social protection, and the fact that 62% of the budget will now be spent in fragile and conflict states.

Finally, the hon. Lady asked about debt, where she is right that we need to do far more. It is absurd that a country such as Ghana can borrow only for seven or eight years, yet our children can get mortgages for 30 years. Ghana borrows at 7%, and our children borrow at 2%. That is clearly completely wrong, but there is a lot of new thinking. She will have seen the climate resilient debt clauses launched by Britain and the work we are doing on the G20 common framework to increase access for countries. It is also important to ensure that the private sector is bound into debt settlements when they affect sovereign states.

[Dominic Raab (Esher and Walton) (Con)]

I welcome the White Paper and its focus on using ODA to leverage private sector investment in the way that my right hon. Friend has described. Whether the MENTARI programme for energy transition in Indonesia or the guarantees that the UK provides to the African Development Bank on climate finance, does he agree that it is the combination of aid and British business that is a real force multiplier in this area?

[Mr Mitchell]

My right hon. Friend knows a great deal about this area from his past ministerial posts, and he is absolutely right. The key trick is to secure the status money, whether provided by the multilateral banks or the development finance institutions, and to marry it with the private sector and the $60 trillion of pension funds out there. If we can marry the two, de-risk through using that status money, and show pension managers what the real risk and the scale of the returns are, we can achieve the holy grail of getting enormous amounts of more money into climate finance, mitigation and adaptation, which is what the Bridgetown agenda is all about.