Strategy for International Development

Vicky Ford Excerpts

Wednesday 6th July 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Vicky Ford)]

I am grateful to the hon. Member for Rotherham (Sarah Champion), the Chair of the International Development Committee, for securing this debate. The Minister for Asia and the Middle East, my right hon. Friend the Member for Cannock Chase (Amanda Milling), who is our lead on international development, is in the Gulf on ministerial duties so it is my pleasure to respond on behalf of the Government. I thank all hon. Members for their contributions. It is good to see a collection of colleagues from both sides of the House who care passionately about what we do to support the most vulnerable people in the world and those who are often living in the poorest conditions.

I note that the hon. Member for Dundee West (Chris Law), the SNP spokesperson, said that he wanted detail not rhetoric, so I will try to address as many of the comments that have been raised as possible. Before I do, many hon. Members pointed out that the UK has a proud record of leadership on international development that goes back many years. Since 2011, international climate finance has helped more than 88 million people to cope with the effects of climate change and has installed 2,400 MW of clean energy. That is important because time and again, the most vulnerable and poorest countries in the world are bearing the brunt of climate change. If we do not help them to adapt, cope with that and change the way they live, they will continue to be pushed back into more vulnerability.

In 2013, we became the first G7 country to achieve the target of spending 0.7% of gross national income on official development assistance. Even last year, in the middle of the pandemic, under the G7 presidency, we managed to get leaders from across the world to pledge more than £1 billion vaccine doses, either directly through their own contributions or through COVAX, to the world’s poorest countries.

[Mr Mitchell]

Will the Minister give way on that point?

--- Later in debate ---

[Vicky Ford]

I will try to address some of the comments. I will come to global health budgets, which my right hon. Friend raised.

The global pandemic was in nobody’s manifesto. We faced the worst economic contraction for more than 300 years. Our borrowing in 2021 was the highest that it has ever been outside wartime. It was a really difficult decision to reduce the ODA spend from 0.7% to 0.5%, but it is a temporary reduction and we are still the third-largest donor in the G7 as a percentage of GNI that we spend. We are committed to returning to 0.7% as soon as the fiscal situation allows, and we have set out the way in which that will be measured.

Looking at the next decade and beyond, the international development strategy recognises that the evolving development landscape is characterised by many major global challenges and shifting geopolitics. For many years, increasing openness, free markets, free trade and shared technology have helped to underpin global development progress, and that is important in being able to make sure that those in the developing world can try to access some of the opportunities we have. However, that whole era of progress has been completely challenged and set back by the new geopolitical context demonstrated by Putin’s illegal, unjustifiable and brutal invasion of Ukraine, which is causing these huge spirals in fertiliser, food and fuel prices.

My hon. Friend the Member for West Worcestershire (Harriett Baldwin) was absolutely spot-on when she spoke about Russian misinformation. It is really important to remind ourselves as well as others that the UK sanctions in place are not preventing exports of Russian grain and fertiliser to third countries. It is Russia’s illegal blockade that is preventing Ukrainian grain from leaving the country, and that is what is hurting global supplies. The economic pain hitting the world’s poorest most acutely is being caused by Putin’s aggression.

The new hon. Member for Tiverton and Honiton (Richard Foord), in his maiden speech, quite rightly spoke about reminding everybody of the importance of the Budapest convention, when Ukraine gave up what I believe was the world’s largest collection of nuclear weapons in return for the promise that Russia, as well as others, would respect its territorial integrity. We absolutely stand by the people of Ukraine in many ways. We are one of the leading bilateral donors. We have committed about £400 million in economic and humanitarian grant support, which is in addition to about £800 million in guarantees on World Bank lending to Ukraine. We are using a lot of guarantees to increase the amount of funding we can make available.

The right hon. Member for Leeds Central (Hilary Benn) asked whether we are adhering to international laws and what constitutes ODA, and I am very pleased to say that we are. The rules are set out by the OECD’s development assistance committee, and the DAC definition of ODA makes it very clear that no military equipment or services are reportable as ODA, so I hope that answers his question.

My hon. Friend the Member for West Worcestershire mentioned the importance of making sure that UK branding is included in what we are doing, so that while we are supporting developing countries, people know that the UK is standing beside them. I absolutely agree with that, and I would also say to Members in this House who care so passionately about international development that it is important that they remind people what good work is done with the money the UK taxpayer spends there.

I have attended the World Bank meeting—we do attend these meetings, and I regularly attend international meetings—and encouraged the World Bank to be giving a clearer message about the support it is giving and reminding those in donor countries how important this is.

[Liam Byrne]

The World Bank has just mobilised $170 billion of emergency response to the current crisis, but the first question everybody I have spoken to in the World Bank over the last year is: why on earth has the UK cut its commitment to the World Bank when we could be using that to mobilise more money in the future?

[Vicky Ford]

I am so glad that the right hon. Member has raised this point because the UK remains one of the top six largest shareholders of the World Bank. We are one of only six countries in the world that has its own voice at the World Bank spring and autumn meetings, and we use that very powerfully. We remain the third largest donor to IDA20 and we remain the fifth largest shareholder. We reduced our donations to IDA, bringing them in line with what we are doing elsewhere in the world through the international development strategy, but we remained the third largest donor. Indeed, the World Bank announced that it would release $170 billion at the spring meetings partly because the UK worked with our partners to say to the World Bank, “We are in unprecedented times and we need an unprecedented package.”

My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) raised in his excellent remarks the situation in the horn of Africa, which is absolutely dire. The UK was one of the first to step up. In January, I was in the horn of Africa and announced additional money, which was, as the hon. Member for Dundee West said, especially to help babies, children and feeding mothers. Since then, we have helped to convene an international conference and worked with the UN to have a roundtable that raised another $400 million. We will be putting more than £150 million of humanitarian aid into east Africa this year. To follow up the question from the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) about the World Bank, we have been encouraging it to put some of that $170 billion urgently into the horn of Africa.

[Liam Byrne]

rose—

[Vicky Ford]

I will make some more progress, because I want to answer many other questions.

Major global challenges are threatening the progress made over previous years. We had seen progress, especially in the last decade, but that has reversed in the last two years, which is partly to do with covid and partly to do with climate change. In that context, it is really important that our international development strategy provides a clear framework to enable people and countries to take control of the future.

Yes, a priority of the strategy is to deliver reliable investments through British investment partnerships, building on the UK’s financial expertise and the strength of the City of London. That is a way in which we can help, using Government—taxpayers’— money to bring more money into developing countries. That must be done in a way that also delivers on green priorities and supports countries to grow their economies sustainably. A key aspect of that is helping countries with the lowest incomes to build their trade capacity and infrastructure. That is not about putting all of our funding in the trade basket; it is about looking at ways in which we can harness investment to make a real difference for countries.

For example, I was in Sierra Leone earlier this year—I have visited 14 African countries since I took on this role, and Sierra Leone is one of those that most needs international development assistance—and one project that I saw was a solar microgrid. We have 95 of them going up across the country, and they are helping more than 300,000 people to get access to electricity. That means that kids can do their school work in the evening, that a sole trader can run her business and get herself an income and livelihood and, most importantly, that local services can get access to electricity. In the same town, I visited the women’s health clinic that we helped set up, where we have worked on training for those delivering babies and on bringing in oxygen services, blood bank services and electricity. That has reduced maternal deaths from one in 25—one in 25 women having a baby was dying—to one in 250. Putting infrastructure investment into that microgrid enabled the oxygen services and blood to be kept in the fridge. That helped to save lives and meant that lights were on when women were delivering their babies at night. As all of us who are mothers know, many women choose to have their babies at night—I have gone slightly off my speech.

Another priority is to empower women and girls. We want to tackle the social, economic and political structural barriers that hold them back, and unlock their potential. Indeed, restoring the funding for women and girls has been a key priority for the Foreign Secretary. I cannot put back the money that was not restored last year, so, in answer to the hon. Member for Putney (Fleur Anderson), the funding is being restored going forward, and it does include areas such as sexual and reproductive health and rights. I believe that that is absolutely central to women’s and girls’ fundamental right to have control over their lives and bodies.

[Sarah Champion]

Can the Minister confirm whether that will also include safe abortions?

[Vicky Ford]

Yes, the Chair of the International Development Committee is right. There are countries where part of our support is access to safe abortions. That is a vital part of the UK’s support.

The whole of the women and girls strategy is centred around three different areas, which we call the three E’s: education, empowerment and ending violence. As the hon. Member for Birmingham, Edgbaston (Preet Kaur Gill) said, they all need to work together to support women. That will be set out in the forthcoming women and girls strategy.

Why do we not mention boys’ education and always mention girls? It is because girls often face extra barriers to get into school. When we can remove the barriers for the girls, we help the boys as well.

Our third priority is to step up our humanitarian work to prevent the worst forms of human suffering. We are prioritising £3 billion for that over the next three years. We are also leading globally in driving a more effective international response to crises. I mentioned earlier what we have done on leveraging other donors to come and help us in the horn of Africa. We continue to support humanitarian multilateral aid agencies through core contributions to them. That funding enables the humanitarian system to undertake essential work in providing humanitarian assistance to those most in need.

Another vital priority is to take forward our work on climate change, nature and global health, putting the commitments of our G7 and COP26 presidencies, and our global leadership in science and technology, at the core of our offer. On climate, we are delivering more than £1 billion of activities this year as part of our flagship five-year, £11.6 billion international climate finance target. Another event I went to earlier this year was the annual general meeting of the African Development Bank, where the UK signed the landmark guarantee with the bank that will enable it to unlock $2 billion of funding. No other country is stepping up in this way. That funding will be able to go directly into parts of Africa to help to build climate resilience and is the sort of innovative way we are using our financial powers to get support to the poorest parts of the world.

On covid, I remind the Select Committee Chair that we were at the forefront of the international response to covid-19. We pledged up to £1.2 billion to address the impacts of the pandemic.

[Mr Mitchell]

I am sorry to intervene on my hon. Friend now, because it was the earlier point she was pursuing that I wanted to come in on. She mentioned the British support for Africa in respect of vaccinations and covid, which of course is very welcome. The Prime Minister promised in this House a year ago that Africa would have 100 million vaccinations within a year. One year on, it has had 32 million. Can the Minister tell the House when the other 68 million will arrive?

[Vicky Ford]

What I can tell my right hon. Friend is that access to vaccines in Africa is not the issue at the moment. There are plenty of vaccines around. I have been working closely with African organisations on this issue. Today, there is not a shortage of vaccines per se. There are challenges in getting them enhanced and there are challenges in overcoming not necessarily vaccine hesitancy but people not prioritising having the vaccine. For example, I went to a vaccine clinic in Kenya where people are asked, when they walk through the door, which type of vaccine they would like. They are told, “If you go here, you can have AstraZeneca. If you go there, you can have Pfizer. If you go there, you can have Johnson & Johnson”. There are vaccines, but the issue is getting them into arms. We are working with four of the most challenged countries in Africa to help to get the different vaccines through. This issue is not about the donation.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Will the Minister give way?

[Vicky Ford]

Let me try to address hon. Members’ questions first, because I have only another few minutes and Members have been sitting here throughout the debate.

I thank my hon. Friend the Member for Mid Derbyshire (Mrs Latham) for her passionate discussion of neglected diseases, including podoconiosis, which she now knows is a new one to me. What she said was very moving, and I will look into it further—what she said was very moving—and I reassure her that we are reviewing the Global Fund seventh replenishment investment case. I hope that that gives her the confidence she needs.

Our development priorities will be achieved by taking a patient approach to development. That means unlocking the power of people, ideas and institutions and tackling the causes of crisis, as that is the basis for delivering lasting growth, stability and poverty reduction. This is about getting the system to work.

Alongside ODA, we harness trade, defence, diplomacy and other UK strengths to work for lasting policy change in partner countries. We spend more of our budget directly. By 2025, the FCDO intends to spend about three quarters of the funding allocated in the current spending review through country programmes. That does not mean turning our back on multilateral partners. We will maintain a wide range of partnerships with multilateral organisations. They remain key partners for achieving shared objectives and tackling global challenges that the UK alone cannot solve. Geographically, we maintain our commitment to Africa, while we continue to focus on the Indo-Pacific, including by expanding the work of British International Investment in the region.

On the commitment to Africa, we are committed to building partnerships with African countries, leading to a freer, safer, more prosperous, healthier and greener continent. We prioritise key strategic partners such as South Africa, Nigeria, Ethiopia, Kenya and Ghana. We will target how we spend resources in fragile states or countries that need extra support, and we partner with the African Union when we see that our interests align and add value.

One of the questions from the Liberal Democrat spokesperson, the hon. Member for Oxford West and Abingdon (Layla Moran), was about Ethiopia. In the last financial year, we spent roughly £240 million of ODA in Ethiopia. That is about 7% of the entire UK spend. Ethiopia is a very important country. It is a very fragile state, particularly with famine in the south and conflict in the north. We have consistently called on all parties to work towards the ceasefire, which remains very fragile. Aid is flowing. It is not enough, but large proportions of the aid that is flowing is going on trucks that have been bought with UK aid, because we are one of the key contributors in that area.

[Liam Byrne]

I hope that the Minister may come on to not just the £10 billion of the aid budget, but the Government’s strategy on the £19 billion of special drawing rights.

[Vicky Ford]

Let me come to the special drawing rights; I was about to go through more of the specific questions that Members asked. We have committed to channelling up to £4 billion of our special drawing rights. The first £1 billion has already been committed as additional funding to the IMF’s poverty reduction and growth trust. In addition, the Chancellor made a commitment in April this year to allocate another £2.5 billion to the new IMF resilience and sustainability trust. That fills a crucial gap in the IMF’s toolkit. It provides affordable financing to low-income and vulnerable middle-income countries to address long-term challenges.

At the African Development Bank meetings that I attended in Ghana this year, I also explained that I was very keen to channel some of our SDRs through the ADB. Technically, the money does not come to us—it remains a shareholding in the bank. We cannot do that by ourselves; we have to do it collectively with some of the other owners of SDRs. I say that just to update the right hon. Gentleman that we are working on the matter. There are some technical issues as well.

[Liam Byrne]

Will the Minister give way?

[Vicky Ford]

No, because I want to get on to some of the right hon. Gentleman’s other points.

On ICAI, the budget is not actually reduced; it was to be a flat budget. In line with the framework agreement, we will consult with the International Development Committee if any changes to ICAI’s budget will have a significant impact on the Committee’s work plan. With ICAI, we will also work through whatever funding gap it may have, to understand what the impact could be.

[Jim Shannon]

rose—

[Vicky Ford]

On China—

[Jim Shannon]

Go ahead, then. That is impressive.

[Vicky Ford]

Why do we send programme aid to China at all? We have reduced it by 95% and we do not send any direct aid, but sometimes there are projects that are important for human rights. For example, we funded an important piece of research by the Australian Strategic Policy Institute called “Uyghurs for sale”, which did a huge amount of good in exposing forced labour in China. There are elements that are doing really important work. I hope that that example is useful.

On tied aid, we are untying aid in line with and beyond the work of the Development Assistance Committee, the global group of major development donors.

BEIS has recently announced that it will not be sending any more ODA aid to China. I know that my right hon. Friend the Member for Sutton Coldfield wants more detail about what it has done; I can confirm that there is no ODA aid spent in Chinese prisons. I hope that that has answered some of his questions.

I was asked why we were not at the UNRWA meeting at ministerial level. We were there at a senior official level, where we pledged. The meeting took place in New York in the same week that the Minister for Asia and the Middle East was visiting an UNRWA-supported refugee camp in Jerusalem. I hope that that explains what the Minister was doing.

I have not answered all hon. Members’ questions, but I hope that I have answered a number of them and explained why our international development work is so important. I commend it to the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

I will now ask Sarah Champion to briefly wind up. You might as well speak until just a few seconds before 7 o’clock so that we do not need to suspend.