International Development

Baroness Winterton of Doncaster Excerpts

Thursday 18th June 2020 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I understand that it is the will of the House that motions 1 to 5 on international development be debated together. The debate will last up to 90 minutes. When the first motion has been decided, I will call the Minister to move the other motions formally. If a Member objects, the motions will be taken separately. I now call the Minister to move the first motion and speak to all five motions.

[The Parliamentary Under-Secretary of State for International Development (James Duddridge)]

I beg to move,

That the draft African Development Bank (Fifteenth Replenishment of the African Development Fund) Order 2020, which was laid before this House on 19 May, be approved.

[Madam Deputy Speaker]

With this it will be convenient to discuss the following motions:

That the draft African Development Bank (Further Payments to Capital Stock) Order 2020, which was laid before this House on 19 May, be approved.

That the draft African Development Fund (Multilateral Debt Relief Initiative) (Amendment) Order 2020, which was laid before this House on 19 May, be approved.

That the draft International Development Association (Nineteenth Replenishment) Order 2020, which was laid before this House on 19 May, be approved.

That the draft International Development Association (Multilateral Debt Relief Initiative) (Amendment) Order 2020, which was laid before this House on 19 May, be approved.

[James Duddridge]

Thank you, Madam Deputy Speaker. It is good to see you in your place. The orders will permit the UK Government to make financial contributions to the African Development Bank and the African Development Fund, in addition to the World Bank International Development Association, up to the stated values on the orders. I propose to start with the three statutory instruments on the African Development Bank, then move on to the two SIs on the World Bank IDA before concluding.

As the House knows, Africa remains the poorest continent on the planet, and 24 of 30 poorest countries are on that continent. Sadly, by 2030, 90% of extreme poverty is likely to be concentrated on that continent, and instability remains a persistent challenge. Until last year, Africa was growing fast, and in 2019 it experienced 3.4% growth in gross domestic product. Covid has had a significant negative impact, however, and recent World Bank estimates suggest that GDP in Africa will shrink by just under 3%. Sadly, 26 million more people will be pushed into extreme poverty. The African Development Bank is a key regional partner for the UK in delivering development, prosperity and our security objectives in Africa. It has significant financial clout, a strong regional identity and deep knowledge, and it is very much a trusted partner across the continent, which allows it to tackle sensitive issues.

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[Stephen Doughty]

Indeed, and it did strike me as very odd and very concerning, and it will no doubt have been noted with concern in the capitals of many of those countries that we have enjoyed strong partnerships with for many years.

On that note, can the Minister assure our partners in countries across Africa, and indeed across the developing world, including Ethiopia, Tanzania and Zambia, that we will continue to partner with them and their citizens, to tackle the coronavirus pandemic and continue our long-term work to tackle poverty, disease and inequality, tackle gender injustice and urgently deal with the climate change crisis?

The UK role on the boards of the multilateral financial institutions has often been such that we have been able to influence the direction of those institutions, which have not always had the right focus or agenda, for the better. The former Secretary of State will know that well; I know he took a keen interest in these matters, and I am sure the Minister does, too, and I too have seen that at first hand.

I want pay tribute to the officials and successive Ministers across the parties that have seen Britain’s role as one for global good in these institutions, contributing to multilateral action, so that we can achieve a bigger impact than the mere sum of our parts. That very much, for me, was global Britain in action, and not the Britain that I fear we now seem to be heading towards. So can the Minister confirm: who will determine the future role of executive directors at the World Bank and the African Development Bank, and who will they take their orders and policy steer from in future? Will they still have the same mandate to focus efforts on poverty reduction, or do we risk seeing them go the way of, for example, the badly run Newton Fund, overseen by a non-DFID Department, which was recently criticised heavily by the Independent Commission for Aid Impact and the Sub-Committee on the Work of the Independent Commission for Aid Impact—and indeed the Chair of that Sub-Committee, the hon. Member for Stafford (Theo Clarke), who is not in the Chamber at the moment, but I know takes a keen interest in these matters?

Turning to the two specific institutions and the replenishments, the record of global Britain in action is reflected in a history of partnership with the African Development Bank, and we have contributed over many years to programmes and initiatives such as the African water facility, the Congo Basin forest fund, the sustainable energy fund for Africa and, indeed, the actions on covid that I have just described in Ethiopia. The Minister spoke about the “high five” focus points of the African Development Bank—power Africa, integrate Africa, feed Africa, industrialise Africa and improve the quality of life in Africa, and I hope that he, in his remarks, can confirm that that will continue to be a UK priority for our role in those funds.

On development for women and girls, we were very happy to see that 80% of the new African Development Bank operations were categorised as having gender-informed design; of course, developments cannot succeed without economic development, health and education for women and girls. So will the Minister and his Department continue to negotiate with the African Development Bank and ADF to ensure that funds go to women-led and women-and-girl-directed programmes? I also understand that the pledge rightly includes an element of performance-based funding dependent on positive results reported at the mid-term review, so will he clarify how much was disbursed or held back at the same point in the last replenishment round? It is important that we hold these institutions fully to account.

On the IDA part of the World Bank—a crucial institution, in which we have played a key role in over many decades—for every £1 of grant finance that the United Kingdom and other donors put in, IDA is expected to deliver more than £3 in development commitments for its clients, and we remain one of the largest donors—in fact, the largest donor in 2019. with an appropriate share of the budget. Could the Minister outline how we will seek to ensure that IDA programmes focus on issues like climate change, public health and education, and women and girls. Given some of the discussions that the Minister and I have had about fragile states, what focus will the new funding round have on investment in those? What performance-related measures will be taken in relation to the replenishment?

I want to ask a specific question about the World Bank’s private sector arm, the International Finance Corporation, because that has delivered a proportionate share of its profits as grants to IDA in the past, but in the past few years we have seen the pattern reverse, with IDA now effectively helping to fund IFC shortfalls. I understand that in 2020 it will be a net recipient of $2 billion-worth of IDA-financing-supported investments. How does he expect IFC returns to be further affected by the global economic crisis relating to the pandemic, and does he expect them therefore to be a greater draw on IDA resources even than was perhaps expected for the year ahead?

I have already mentioned one example of a programme that helps Ethiopia prepare for and mitigate the impacts of covid 19. Over the past few weeks, my Labour colleagues and I have met and been listening to senior experts and African voices from the Africa Centres for Disease Control and Prevention, the World Health Organisation and other national agencies and Governments and, indeed, workers on the frontline in countries from Sierra Leone to Zimbabwe. Some of the stories that they have shared with me have obviously been of great concern, and I have discussed those with the Minister. The effects of covid-19 are already having a significant impact on the continent. That impact is on health—whether directly or indirectly—but also on the economic prospects and stability of many countries and regions, although it appears to be diverse and heterogeneous across the continent. That is also the case when we look at who is affected within countries because, like in this country, covid-19 is often a disease of poverty and disadvantage. The worst affected are likely to be: the low paid; the marginalised; women and girls; those in conditions exposing them to greater risk, such as care workers, workers in health services, people who provide security, food processing and transport, and those who work in places with low ambient temperatures and poor ventilation such as ships, and prisons; and, of course, people who live in the slums and dense settlements that we see in many locations across the global south.

I have been impressed and inspired by the clear and growing African solidarity and leadership on tackling the virus, as in so many other things. We could learn much from that, but it is also clear that there are going to be substantial short, medium and long-term challenges. Global solidarity and support—for example, through this funding and replenishment—is not only a moral duty, but in our common global interests. Would the Minister say a little bit about what he understands about how both IDA and the African Development Bank will seek to focus their programming to deal not only with the immediate short-term needs—obviously there have been substantial changes, which he mentioned, particularly in relation to IDA—but with long-term needs? Has he had discussions with them about how they might facilitate investments that support the roll-out of any vaccine treatments and critical medical supplies on an equitable basis?

Reform is crucial with these institutions, so it is crucial that we continue to seek these reforms. The multilateral aid review rated the African Development Bank and IDA as good—very good, in some cases—but there are areas where they were ranked as weak. Will the Minister say a little bit about how he is going to use our position on the boards of both those institutions to continue to push a reform agenda?

On debt relief, it is almost 15 years ago to the week that I helped to co-ordinate the historic march of a quarter of million people around the streets of Edinburgh in a white band as part of the Make Poverty History movement, which called for life-changing aid, debt cancellation and justice. I know that the right hon. Member for Sutton Coldfield (Mr Mitchell) was a strong supporter of that campaign, which happened in the run-up to the historic Gleneagles G8 summit. It was a true example of what global leadership can achieve both for our country and for our fellow human beings.

The multilateral debt relief initiative was one of the proudest achievements of the last Labour Government, and has enabled us to make substantial progress towards the global goals—both the millennium development goals and their successor, the sustainable development goals. Will the Minister tell us how much debt UK support has enabled IDA and the African Development Bank to cancel over the recent accounting period, and what expectations he has in relation to these orders, given the changed global economic output?

We will not oppose these orders today, but I reiterate that the speech that I had hoped to make, which would have been full of positivity and support for the measures, has unfortunately been tempered by the announcement by the Prime Minister earlier this week and the many unanswered questions, particularly in relation to our influence and role in institutions such as the African Development Bank, IDA and the World Bank. I fear that the past global leadership that we have shown—for example, on debt relief—may now be in jeopardy.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Just before we move on, let me say that it is quite important that we focus our remarks on the SIs in front of us, which are quite narrow, and perhaps not relive too many other debates that may have taken place earlier today.

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[Chris Grayling (Epsom and Ewell) (Con)]

May I remind the hon. Lady that, in the hypothetical situation of an independent Scotland, the policy of the SNP is to have foreign affairs and international development in the same Department?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Before the hon. Lady responds, I want to remind her and other Members in the Chamber that we are addressing the orders, rather than getting into a whole other debate. That is what we are here to scrutinise.

[Patricia Gibson]

Thank you, Madam Deputy Speaker. I will endeavour to make my remarks as brief as possible. I would say in response to the right hon. Gentleman’s question that the Scottish Government have a Minister in charge of overseas development. The right hon. Gentleman might want to reflect on that, because that is the importance we in Scotland place on overseas development.

The House welcomes these measures, but the fear is for the future. The fear is that putting the word “super” in front of the Foreign Office is not going to cut it, and it will not address the concerns. As set out in the measures, we have historical responsibilities to the poorest nations around the world, as well as moral responsibilities, as we seek to take our place on the international stage.

It is worrying—this is no secret—that aid is now to be used to pursue security and diplomatic aims. There might be an argument to make for that, but that is not what aid is for. Aid must be driven by need. I fear that in the future, we may have fewer of these measures that are so welcome, through which we seek to put a hand out and help up those countries that need and deserve the help of the international community. It must be based on need.

We hear much from Government Members about global Britain—well, whatever floats your boat. If they want to float that particular boat, they may want to take their place on the international stage and lead in the area of international development, instead of downgrading it and using it as a way of pursuing their own diplomatic aims. We in the SNP will not oppose these measures—we welcome them—but we have profound fears about the future and how aid will be administered from hereon in.

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[Liz Twist (Blaydon) (Lab)]

On a point of order, Madam Deputy Speaker. At the end of this month, production of the British passport will cease at the De La Rue plant in my constituency, following the Government’s decision some years ago to award the contract to Gemalto. Yesterday, De La Rue announced that the production of bank notes on the site will also stop, with the loss of a further 255 jobs. It is devastating to see this reduction. Are you aware of any statement to be made to the House by a Minister about that issue in the forthcoming business?

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Lady for that point of order. I think she may have been here for the business statement. I have not been made aware of any forthcoming statements from Ministers about it, but she has put her concern on the record, and I am sure she will find ways, as she has done today, to raise that concern about her constituents.

To allow the safe exit of Members participating in this item of business and the safe arrival of those participating in the next, I will suspend the House for three minutes.