Post-2015 Development Goals

Rushanara Ali Excerpts

Thursday 4th July 2013 Westminster Hall

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Havard. I thank the Chair of the International Development Committee, the right hon. Member for Gordon (Sir Malcolm Bruce), for opening the debate and for making, as ever, a powerful speech on the need for our continued commitment to tackling poverty and inequality in developing countries. I welcome his comments on the contribution of successive Governments, particularly the previous Labour Government, and thank him for his contribution and for working with us on this very important issue.

The millennium development goals, when they were established, provided huge momentum in addressing some of the most pressing challenges facing developing countries. Admirable progress has been made. Examples of that are the significant reductions in extreme poverty and infant mortality; access to primary education for children; improvements in the living conditions of slum dwellers; and major advances in the fight against disease, including HIV and others. Although we are often restless about the fact that more progress has not been made, it is important to take stock and recognise that the starting point was not a great one. We should be proud of those achievements that have been made, but we should remain restless about the setbacks. That is the context in which the Select Committee report has been written—it is vital.

The critical gap in what we are doing—the area where we fall behind—is inequalities between and within countries, which are growing, particularly following the financial crisis, as budgets come under pressure. The brunt of that has been borne, and the pressure has been faced, by some of the most vulnerable people, particularly women and those living in conflict-affected areas, as hon. Members mentioned.

We must ensure that the post-2015 goals respond to the challenges in developing countries that we can observe and predict—those that are already occurring, but which we believe will grow in the decades to come. As the report asserts, the new framework should be ambitious and be aimed at eliminating extreme poverty, but I hope that the high-level panel will also have, as has been referenced already, a strong focus on tackling inequality. As the right hon. Member for Gordon said, we cannot accept that tackling extreme poverty is good enough. In the 21st century, we cannot live in a world where it is acceptable for people to live on just over a few dollars a day or where a few thousand dollars per capita a year gives a country middle-income status.

I therefore hope that the Prime Minister, with the support of his Ministers and coalition partners, will be ambitious and bold in his role, showing international leadership, which is desperately needed at a time of growing challenges and conflicts in many parts of the world, including middle-income countries.

Lessons need to be learned from what we could have done differently in the past. In particular, we need to understand the drivers of conflict, such as injustice and inequality, but also the failure—referred to by the hon. Members for Tewkesbury (Mr Robertson), for Stafford (Jeremy Lefroy) and for Congleton (Fiona Bruce)—to respond to the aspirations of young people who want jobs. They also want skills and not only primary education, but tertiary education, to enable them to make their own contribution to their countries.

We should consider what has happened in the Arab spring. Furthermore, the United Nations Development Programme has pointed out that if there had been more understanding and closer measurement of inequality, we might have been better placed to predict that some of those other, earlier conflicts were likely to arise. I hope that we can learn some of the lessons from that.

[Jeremy Lefroy]

I fully agree with everything that the hon. Lady is saying. Does she agree that it is vital that the post-2015 goals refer to a major role for secondary and tertiary education? The original MDGs concentrated, rightly, on primary education, but we need to move beyond that.

[Rushanara Ali]

I agree. Of the MDGs, the education goal has the best prospect of being achieved, so it is important that we continue the push to lift people out of poverty and also into secondary and tertiary education, as well as primary. As the hon. Gentleman knows, our previous Prime Minister—I will not name him, because everyone knows who he is due to his great contribution to the MDG agenda—has been leading the way on the global campaign for education.

The hon. Gentleman’s point about tertiary and secondary education and skills is critical. We could learn a lot ourselves about investing in young people’s skills, as well as in developing countries. Innovations are coming from developing countries, and we could learn a thing or two from the successes, which could not have happened without investment and the support of our taxpayers over 15 to 20 years. It is critical to continue to help countries and focus on education. In the end, economic development will be driven by decent education and decent opportunities, not to mention other indicators such as health care and so on.

I want to highlight some of the achievements, of which we as a country can be proud, produced by the investment over a couple of decades: 3 million people have been lifted out of poverty. Britain has led the way on debt relief, and people, particularly those in Jubilee 2000, campaigned to ensure that Labour Government had the impetus and the backing to make it happen. Campaigners, international and domestic NGOs, UK community organisations and faith-based organisations are critical not only in applying pressure to our Government and other Governments to ensure that they do not lose sight of what is at stake in failing to continue to work towards achieving the MDGs, but in ensuring that the next round of discussions, as right hon. and hon. Members have mentioned, builds on what we have achieved, and that where there have been setbacks, lessons are learned.

Critically, developing countries should be partners in coming up with goals over the next period, so that they are at the heart of the decision-making process and do not feel that goals are being imposed on them. They and their populations have a far better understanding of how to tackle poverty and reduce inequality. We must be humble in recognising the many national NGOs in developing countries across the world, whether we are talking about the role of technology and innovation in tackling development and health challenges in South Africa, or the role of microfinance, led by Professor Yunus, Fazle Abed and many others, in India, Bangladesh and other countries.

There are innovators and great thinkers and doers in developing countries, who need to be in the driving seat of helping to set the future goals. International leadership is needed not only from western leaders, but from the leaders of developing countries and the emerging economies that increasingly call the shots on some major issues. They can and must play a vital role in tackling poverty and inequality, and in dealing with the major challenge of climate change, which could undermine the achievements of which we are proud, not to mention set back the progress we seek to make through future investments.

I shall briefly focus on some of the challenges we face. The key challenge has been well documented in this and previous reports. We need to think about the fact that there will be more poverty in middle-income countries than in developing countries. The high-level panel needs to put that at the heart of the debate about where we go in future. Any attempt to tackle the challenges of poverty must come up with an approach, a narrative and a response that find a way to get to the poorest in the growing economies of middle-income countries such as India, China and Indonesia, as well as Africa, which is also growing economically.

[Sir Malcolm Bruce]

I wholly endorse what the hon. Lady has just said. The International Development Committee is conducting an inquiry on precisely how we can alter the mechanisms by which we deliver. Although it is right to focus on the poorest people in the poorest countries, we should not leave behind equally poor people in less poor countries. That probably requires some change in the DFID model from what we have been doing perfectly correctly over the past 15 years.

[Rushanara Ali]

I look forward to the next instalment from the Committee, the right hon. Gentleman and his team. We need to settle the question of how we respond to some of the domestic criticisms on giving aid to big emerging economies, such as India, where hundreds of millions of people still face deep poverty. Many other nations are in that position. We need a political response and an approach that explains why such aid matters. We must also look at how the international community brings in nations that are doing well, such as India and China, to be genuine partners in development, so that we can contribute together to tackle poverty in middle-income countries. Only then will we be able to address the political criticisms and critiques that we face in our country—that also happens in other countries—and settle the question of how we should respond to the challenges.

If we do not address poverty in middle-income countries, we will set ourselves up for future problems—and even very wealthy countries have recently faced conflict. It is far better to anticipate difficulties and consider how we might respond as part of the development agenda process, so I hope the Minister will shed more light on her ideas about how we might do that.

In the remaining time, I shall focus on economic growth and development. Right hon. and hon. Members have mentioned the importance of employment, economic growth and the role of the private sector. Opposition Members very much support building self-sufficiency and creating opportunities for people to become independent and be able to look after themselves, which is at the heart of what people want. We need to ensure that the allocation of DFID resources through private sector programmes is transparent and properly monitored, just as we would expect with NGOs, and that public money is not used in an ideological manner. We must look at where the impact is, whether the outcomes are those that we sought—creating opportunity, jobs and economic development—and whether the programmes are pro-poor.

[Fiona Bruce]

The hon. Lady is right to raise that pertinent point. The Committee is examining different ways to advance funds—not purely through grants, but perhaps repayable loans or joint investments—in ways that ensure that an appropriate return for our taxpayers, which can then be reinvested, is gleaned from the funds invested.

[Rushanara Ali]

I thank the hon. Lady for her comments, and I hope that the Committee will interrogate the CDC about its role in de-risking investment opportunities for companies, because that is one reason it was set up. Too often, people have been concerned that it replicates what the private sector can do and does not act as much of a catalyst to enable innovative finance to go into those countries. I hope, therefore, that that will be looked into, as well as some of the private sector funds that DFID has recently set up. The Opposition want any investments that are made to create genuine economic opportunities and taxpayers’ money to be properly spent.

I have two other points to make. The first is about the impact of conflict on women in particular, and on children. We see all too well that that is another major issue that risks setting back any progress made on development. For example, in the Burmese state of Rakhine, which I visited recently, progress is being made, but the treatment of certain minorities and of women in those groups is setting back progress. We need to ensure that human rights and women’s empowerment are at the heart of development, and I welcome the references made to that by the high-level panel and by the Committee.

Secondly, we need to recognise that world demographics are rapidly changing. Increasing populations, and a growing middle class in India, China, Indonesia and many other countries, present major opportunities, but also pose major challenges due to the pressures on natural resources. As is pointed out in the report, the high-level panel discussion must integrate sustainable development goals into the post-millennium development goals framework. Segmented, siloed approaches will not do for the next phase of what we are trying to achieve and for what we need the international community to work towards addressing.

I have a series of questions to pose to the Minister. In focusing on what happens with the post-2015 goals, what will the Government do to drive home the message of economic opportunity through job creation, apprenticeships and tertiary education?

The Minister will be aware that a major additional support for developing countries is remittance income, which eclipses development aid from the whole world put together. Recent changes, led from the US, are affecting the UK, with banking facilities to remittance companies and money transfer companies being removed by Barclays bank. Therefore, hundreds of billions of pounds are at risk of not getting to developing countries, and the cost of sending that money might increase. In countries such as Somalia, which is a post-conflict state, family members are not getting money into their loved ones’ pockets. We are talking about very poor people who do not receive development aid, and I would be interested to hear the Minister’s response on that point.

The UK Government need to work with the US Government, and the high-level panel ought to look at additional income sources going into developing countries. If the route by which the income gets to its destination is damaged, an even greater challenge is posed to international development budgets, in addition to the tasks at hand of reducing poverty, improving health incomes and tackling educational inequalities. What is the Minister going to do about that issue, which will affect hundreds of thousands of people just in the UK, never mind in other countries? I would be happy to brief her after the debate, if she would like that.

I shall conclude, because I am conscious that we have another debate coming up. I very much hope that the post-2015 development goals have an ambitious focus on working with developing countries, NGOs, and local organisations and populations, both here and in developing countries. The Opposition believe that we must put social justice, tackling inequality, and promoting human rights and labour standards at the heart of the post-2015 goals. If we do not do that, the international community should not be surprised, for example, that in countries such as Bangladesh we witness more than 1,100 people unnecessarily losing their lives in industrial accidents that could have been prevented had labour standards and human rights standards been properly applied. The high-level panel and the international community must ensure that human rights, labour standards and women’s rights are at the heart of everything that is proposed, alongside the economic and social goals.

I hope that our Government—DFID Ministers working with other Ministers and the Prime Minister—will include the rights framework in those proposals, as well as social justice and inclusive pro-poor economic growth. That would address the points that have been made about creating opportunities and building self-sufficiency and independence in people’s lives, so that over time our assistance will be less necessary. Our assistance will always be necessary when there are humanitarian challenges, but development assistance will be less needed over time if we get our act together and ensure that we genuinely help to lift people out of poverty, and give them the opportunity to generate income, set up businesses and create a way of life that builds self-sufficiency.

That is what people in countries where we provide assistance want. We, as taxpayers, want to ensure that we do not put on our televisions and see images of poverty and inequality—year in, year out. We want results. I hope that is what will be focused on, building on the MDGs and the contributions already made to developing countries by the international community.