International Development

Stephen Doughty Excerpts

Thursday 18th June 2020 Commons Chamber

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I welcome these orders and agree that they should be taken together. We will not be opposing them. I welcome the support that they indicate for tackling poverty and disease and removing the burden of debt in Africa and elsewhere across the world.

However, in the context of the Prime Minister’s announcement earlier this week and the urgent question answered by the Foreign Secretary today, it is very important that we recognise that the decision taken will have an impact on our relationship with the African Development Bank and the World Bank institutions, including IDA. It is sad to have to contrast the positive impact of these orders with some of the ill-informed rhetoric that we heard from the Prime Minister on Tuesday on a decision that fundamentally risks undermining our relationship and influence with IDA and the African Development Bank in terms of the impact and oversight of these replenishments, and the debt relief. This decision has been criticised from many quarters, including by Members on both sides of the House and by some of the world’s leading experts. One of those, of course, is the former Prime Minister, David Cameron, who said that it

“will mean less expertise, less voice for development at the top table”—

that is, the top table of these institutions. Gayle Smith, the former administrator of USAID, also said that it was a dangerous step backwards. Does the Minister agree that in fact, and in contrast to what the Prime Minister said earlier this week, in the majority of contexts there has always been close co-operation and co-ordination between the different arms of UK international policy, including in Africa, and in relation to the IDA part of the World Bank and its other institutions, as well as the African Development Bank?

It has been particularly concerning, given that we are focusing so much on Africa in these orders, to see the false dichotomy that was set up by the Prime Minister’s comments. He spoke about Zambia and Tanzania, for example, and contrasted them with priorities in places like Ukraine and the Balkans. This is particularly concerning because Zambia and Tanzania have been supported by funds from the African Development Bank and IDA in the past, and of course by DFID’s bilateral programmes. They are both long-standing members of the Commonwealth and countries with which we have had very constructive partnerships over many decades.

This is particularly relevant in relation to the impact of the covid-19 pandemic on Africa and elsewhere, which the Minister spoke about. He and I have discussed that issue outside the House. I want to thank him for the courtesy that he has shown me since my taking on this role in discussing a number of matters on which there is no division across this House. For example, the African Development Bank has been supporting the One WASH programme in Ethiopia. The bank and other partners’ funding has been supporting that ambitious national programme to serve 110 million people in Africa’s second most populous country. As well as the ADB, key partners include the World Bank, the Department for International Development, the Government of Finland, and UNICEF. The programme has been embracing safe water development systems, including boreholes, hand pumps, diesel pumps, gravity pumps and electric grid power to bring safe, potable water to Ethiopians. Water development commissioner Mogesse said recently:

“The One WASH National Program did not plan for the COVID-19 pandemic. But it has prepared us to fight the pandemic better than we would have been without the program, especially in the unserved rural communities.”

That example highlights the sort of impact that the ADB and other funding the UK has provided to the multilaterals has had, not only on tackling covid but on tackling wider water and sanitation issues.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

rose—

[Stephen Doughty]

I happily give way to the former Secretary of State.

[Mr Mitchell]

I am most grateful to the hon. Gentleman for giving way. May I take him back to his point about Zambia and Tanzania, and the Prime Minister’s point about how he would rather spend money in Ukraine? Did it not strike him as rather odd that the Prime Minister—he is, after all, the Prime Minister—needs to abolish the Department for International Development to achieve that? Surely he simply needs to pick up the phone to the Secretary of State for International Development, hold a meeting of the National Security Council and say he has decided that those are to be the priorities.

[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.

--- Later in debate ---

[James Duddridge]

Glancing down at my notes, I think I have about 50 things to come back on. To assist the House, I will keep my comments to five minutes and then look through the report of the debate forensically and come back with some of the more technical detail where individuals have asked me questions, but I will try to cover everything.

I assure the House that we are completely committed to development. We are completely committed in the longer term to funding through these two long-standing mechanisms. This is not just something for today; it is something for the future. We are committed to the African continent specifically and to our Commonwealth partners, including Tanzania and Zambia, which were mentioned. Sadly, because growth in Asia is in excess of growth in Africa, it is probably inevitable that over the next 25 years there will be more poor people and people in extreme poverty in Africa than elsewhere. If anything, that will mean that we have to refocus more, not less, assistance on that area, separate from the broader debate that is being had.

A number of points were made about the ADB and how we leverage our shareholding. We leverage our shareholding in many ways, but at a very high level we have helped leverage 40% of investment into climate. There were concerns about money being focused on the poorest; 90% is focused on fragile states, partly because of how we have leveraged our shareholding.

I listened carefully to my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). I do not quite know why he ate the sandwich of my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), but that is perhaps due to a lack of familiarity with the terminology. My right hon. Friend the Member for Sutton Coldfield is incredibly well-informed.

As I go round Africa more generally, his name often comes up not only in obvious places such as Abidjan and Kigali, but across the continent. He is hugely respected. I look forward to working with him. I have already had an initial chat with the previous president, Donald, and look forward to working with the current president and other individuals.

On the important point about the constituency of which we are a member alongside Italy and the Netherlands, we are proud that we have someone from DFID representing that constituency at the moment. I am interested to see how we can build on that and I particularly welcome my right hon. Friend’s highlighting of solar energy across the Sahel, which is a really important issue and a really important region. It is the only region that was explicitly mentioned as part of the five shifts in NSC strategy.

There were various contributions from Scotland. I am a little confused because I thought that the Conservative party was moving towards the SNP position of having a single Department, which I agreed with rather than the position that was suggested today. I understand the points that were made. On a more consensual point, let me say that, as well as being the Minister for Africa, I am the Minister for Abercrombie House, and I look forward to visiting it, talking to employees and assuring them of their job security during this transition. I know that it is a concern for individuals, particularly for those who are away from Whitehall.

My right hon. Friend the Member for New Forest West (Sir Desmond Swayne) raised a number of issues, including the inter-relationship between trade and migration, which is important. I remember fondly our meetings at airports around the world. Sometimes I knew that he was going to be there, and sometimes it was a surprise that he was there, thus demonstrating that we need to be a little more co-ordinated across Whitehall.

My right hon. Friend the Member for Epsom and Ewell (Chris Grayling) went into a little more detail, eloquently, on forestation. I was particularly interested to hear about the work in the Congo Basin and would like to speak to him more about that. On the reforestation of palm oil areas, we are very aware of the problems of palm oil more generally.

My hon. Friend the Member for Aylesbury (Rob Butler) talked about effective performance, which was also raised by the Opposition. Let me report back on some of those figures: we held back 25% of £152 million sterling—£38 million sterling—in June 2018, £30 million of which was released in October, based on progress and a performance plan. In 2019, we did not withhold any further—

[Stephen Doughty]

Given that these orders are made under the International Development Act 2002, does the Government have any plans to change or amend that Act given the importance of all these orders being focused on poverty eradication?

[James Duddridge]

That is a legitimate point, but I am not sure how it relates directly to the SI. I am not aware of any changes, which might perhaps give the hon. Gentleman some reassurance. There is some additional information about the other fund, which I will write to him about.

I thank my hon. Friend the Member for Aylesbury for his points on foreign direct investment in Africa, which is incredibly important, whether it is through some of these funds or completely independent of Government institutions.

My right hon. Friend the Member for Sutton Coldfield raised the issue of trust funds. We have very few trust funds at the African Development Bank, but we are supporting initiatives on sustainable energy, climate risk finance and women’s economic empowerment and very much welcome a discussion around how we can use trust funds more effectively through that fund. Having lived in Abidjan as a 20 year-old, I am keen to get back there and talk to him more—[Interruption.] He is looking shocked. I am not sure whether that is because I was once young, or that I was once in Abidjan. Perhaps it is both. I was aware of the African Development Bank back in my time at Barclays in Abidjan and I look forward to getting back as alternate governor. I was asked who would be representing the bank. I suspect, given the changes, that as deputy governor or alternate governor, I will be spending a bit more time with all the regional development banks. Even prior to the changes, I was going to be the primary person dealing with the African Development Bank.

I welcome the consensual nature of this debate, particularly given the context. I can reassure the House that, in my heart and the heart of Government, we are trying to do the right thing by development. This merger is very much about trying to bring the full force of HMG together, not shifting from one foot to an entirely different foot.

Question put and agreed to.

Resolved,

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.

Resolved,

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

Resolved,

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

Resolved,

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

Resolved,

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