International Development Strategy

Lord Desai Excerpts

Thursday 16th December 2021 Lords Chamber

[Lord Desai (Non-Afl)]

My Lords, I must declare that for much of my academic life, I studied development and have written a lot about it. I did a lot of work on human development. Coming from India, I have also been observing over the last 60 years the course of development aid.

While I am very impressed by the idealism shown by speakers today, and I thank the noble Lord, Lord McConnell, for introducing his debate, I am afraid I do not take part in the idea that foreign aid, development aid or overseas development aid—whatever you want to call it—actually does very much of what it is claimed to do. Ultimately, I am glad that DfID has become part of the Foreign Office, because development aid is an arm of diplomacy. The noble Lord, Lord Balfe, and the right reverend Prelate talked about soft power and it is about that. You are buying soft power; that is why we give money away.

After all, if we want to cure poverty, there is a lot of poverty at home. There are food banks here; our pensions are the lowest in Europe. Of course, you could say that our poor are not really poor—the real poor are out there. But if you look at what has eliminated poverty in Asia, by and large, in China, India, South Korea, Singapore and Taiwan, it was industrialisation, which was helped a lot by the entry of foreign capital. This is a professional observation; I am not making these things up. We deindustrialised and Asia industrialised—that is the simple story of the 1970s and 1980s.

When it comes to poverty reduction, if we really believe that foreign aid is for poverty reduction, we should give money to the poor—find where the poor are and give cash to them. I remember saying this in your Lordships’ House about 15 years ago, when the noble Baroness, Lady Amos, was the Minister for DfID. At the time, $50 billion was spent on overseas aid, and I said that we should give $50 to each poor person, and that is it—that would do more to cure poverty than anything I know of. Of course, we do not do that; we have a very elaborate model of what poverty is and what we want to eliminate.

As we have observed this afternoon, very sincerely, all sorts of things can be related to poverty—political unrest, gender discrimination and all sorts of other things, which I do not want to repeat. One has to have a clear argument as to how the many things we do are actually going to reduce poverty. In the very nice paper produced by the Library, I see that in the ODA allocations by thematic areas for 2021-22, 40% of the money goes on two items: “programmes with cross-cutting themes”, whatever that means, and

“Arm’s-length bodies, international subscriptions and other fixed costs”.

Those two items take £3 billion out of the £8 billion. I really do not know what they do, but they must do something. How much money goes on hiring consultants who tell us why teaching women cooking in India actually reduces poverty in India? I am sure that there is a lovely consultation paper that would tell us how to do that.

I am sorry to be a Daily Mail-like person here this afternoon, but after 60 years of studying foreign aid I am no longer starry-eyed about it. I would like the Government at some stage to do some thinking about whether money going abroad actually reduces poverty or whether it just encourages lots of NGOs. Secondly, is a pound spent abroad good enough, or should we spend it at home, because we have food banks, gender discrimination, disability problems and low pensions? Universal credit has just been cut in this country. What is all the money for? After 60 years of foreign aid, should we not leave our arrogance behind and say, “It is not really up to us to go out and cure poverty there, which we don’t even know anything about”? Give it a break.