Aid and Trade

Lord Popat Excerpts

Monday 28th November 2016 Lords Chamber

[Lord Bates]

Let me say to the noble Lord that that last thing was not, in fact, what the Secretary of State said. The noble Lord will know, as a distinguished former ambassador to the UN and to the EU, how important this 0.7% is for the UK on the world stage. It is also true to say that the UK’s ambition is not to keep countries in a position of aid dependency for ever. We want them to grow their economies and strengthen economic development. That is what the Secretary of State was saying and it is the general thrust of what the Department for International Development does, through the 0.7% commitment.

[Lord Popat (Con)]

My Lords, as the Prime Minister’s trade envoy to Uganda and Rwanda, I recently had the privilege of meeting the leaders of those two countries, President Kagame of Rwanda and President Museveni of Uganda. During my discussions with them, what transpired is that they are keener on trade than aid; it is trade and investment that can create jobs and wealth and get people out of poverty. Does my noble friend agree that many east African countries are very eager for Britain to shift from aid to trade and that the Secretary of State’s remarks reflect this?

[Lord Bates]

I can confirm that, and I pay tribute to my noble friend for his work as the Prime Minister’s trade envoy to Rwanda and Uganda, as I do to all our trade envoys who carry out that important task around the world. If you compare 1990 to 2010, the number of people in extreme poverty has reduced by 50%. That has not been achieved through aid flows; it has been achieved through aid flows directed at improving economic development, which then lifts people out of poverty. That remains our aim, and trade is an important element of that.