International Development White Paper

Liam Byrne Excerpts

Tuesday 21st November 2023 Commons Chamber

[Mr Mitchell]

My right hon. Friend is right on that, and of course he was one of the 26 Conservative Members who voted not to cut the 0.7%. I hope that he will be energised by the alternative means we have found—the multipliers to ratchet in enormous amounts of money. He is right in what he says about the link between defence, development and diplomacy. When he gets a moment to read to read this White Paper, he will be enthused by the lines it is taking.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The right hon. Gentleman, my constituency neighbour, knows that I admire much about the mission he has set out in this White Paper, but chapter 3 needed to say a lot more about the money. He could have said more about doubling the fraction of the special drawing rights we share, as Japan is doing, which would have provided an extra £4 billion of development assistance. He could have said more about using the money we get back from the European Investment Bank to invest in building a bigger World Bank in order to unlock $200 billion of concessional lending over the decade ahead. He could have said more about leading a global initiative to keep the interest rate on special drawing rights down so that the International Monetary Fund remains as lender of last resort, rather than China. Those are practical steps that we could work on together—otherwise we end up with all mission and no model, which will not help the world’s poorest.

[Mr Mitchell]

If the right hon. Gentleman reads with care the chapter to which he referred, he will see that it is one of the most brilliant chapters in it—that is my biased opinion. The reason for that is that we have in Washington an extraordinary team of young and brilliant officials who have enormous influence in the World Bank, and he is a considerable expert on this area. As for the multipliers and making sure that we sweat the balance sheets of these multilateral banks to ratchet in huge amounts of more money, he will see a great deal to please him. If these reforms are implemented, as I believe they will be, driven hard by Britain through the multilateral sector, we will see a vast increase in funding. As for what he says about the SDRs, using them creatively is something we are keen to do. He will recall that at the spring meetings the Chancellor of the Exchequer announced that Britain would use its SDRs to the tune of £5.3 billion to elevate the two IMF funds that directly deal with poverty and international development.