EU Referendum and EU Reform (EUC Report)

Lord Hastings of Scarisbrick Excerpts

Wednesday 15th June 2016 Lords Chamber

[Lord Hastings of Scarisbrick (CB)]

My Lords, these reports and this debate give us an opportunity to look away from some of the more myopic aspects of the referendum discussions so far. So much of the conversation to date has focused on what the UK may get back, how much richer we might become or how much poorer we might become. One of the great institutions of the European Union, one of the great roles it does well, is to focus and co-ordinate international aid and humanitarian work. That is an important dimension of the EU’s work which, ironically, is not mentioned in these reports but deserves our attention. After the United States, being the largest cash provider of aid but one of the worst percentage providers by GDP, the European Union comes next, and then comes the United Kingdom, followed by a series of smaller nations. We are proud of our 0.7% of GNI contribution to international aid assistance, and of everything that DfID and the UK do, but, in contributing some 20% to EU aid budgets, the UK also punches well above its own capacity. We do more for fragile states, we do more to support the development of democracy, and we do more to respond to the challenges of climate change and continuing desperation in our world.

While we have had politically insensitive conversations about what it means to separate from other rich parts of the world, almost nothing has been said about what that separation would mean for the poorest people in the world. The European institutions created to facilitate collective aid had a good purpose in mind: if we could have more effective co-ordination, greater focus, a clearer line of sight, we could achieve those development objectives which raise the collective boat of wealth around the world, empower markets to work better for our exports and, importantly, prevent some of the tragedies of migration and trafficking that we are now witnessing.

We have to remember that, although the effort focused on the problems of migration from Middle Eastern countries, particularly Syria, across to Turkey and Greece has been the subject of media attention, an equivalent number of people are coming across the Mediterranean from poorer African countries where development aid is fundamental to addressing some of the most desperate conditions created by climate change, poor harvests and inadequate agricultural production methods. The European Union has a massive amount of investment to give in not only technology but techniques, and it improves the UK’s position as a supporter of development in the world to have the European Union acting in concert.

An article in the Economist last week reflected on the disparate problems of fractured aid:

“In one big way … the proliferation of donors harms poor countries. Aid now comes from ever more directions”—

it might be welcome that more money is coming from countries which never gave money in the first place, particularly China and, in some cases, India—

“in ever smaller packages: according to AidData, the average project was worth $1.9m in 2013, down from $5.3m in 2000. Mozambique has 27 substantial donors in the field of health alone, not counting most non-Western or private givers. Belgium, France, Italy, Japan and Sweden each supplied less than $1m. Such fragmentation strains poor countries, both because of the endless report-writing and because civil servants are hired away to manage donors’ projects.”

The noble Lord, Lord Howell, referred to Africa as one of the most important next-level markets for our goods and services, and he is right: the 54 countries of the continent could provide phenomenal opportunities for the United Kingdom, let alone the other countries of the EU. But it will not be so if we undermine and destroy the impact of our collective aid investment, if we reduce our capacity for aid because we wreck our economy by foolishly pulling out of the European Union without foresight to the poor, and if we continue to lose sight of our collective responsibility to stand up for those who are more desperate than even this argument around the referendum has been.