Draft International Development Association (Twenty-First Replenishment) Order 2025 Debate
Full Debate: Read Full DebateWendy Morton
Main Page: Wendy Morton (Conservative - Aldridge-Brownhills)Department Debates - View all Wendy Morton's debates with the Foreign, Commonwealth & Development Office
(1 day, 9 hours ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Mr Western. I thank the Minister for his explanation of the draft order. As he will expect, I have a number of questions on which some further clarity would be helpful for the Committee.
His Majesty’s Opposition recognise the long-standing role that the UK has played in supporting IDA, which is the World Bank’s concessional arm, working in some of the poorest and most fragile countries in the world. We also recognise the scale of the challenges facing those countries, from conflict and food security to the growing pressure of climate shocks and debt distress. IDA has been, and remains, an important part of the global response.
However, the draft order legislates for payments of up to £1.98 billion in UK aid, which is an extremely significant commitment. Therefore, Parliament deserves some clear and detailed assurances about how this money will be used, what impacts it is expected to deliver and how the Government intend to oversee it. Can the Minister explain, in broad terms, how IDA allocates where resources go under this replenishment? What balance does IDA expect between grants and concessional loans? What criteria are used to allocate funds between countries, particularly those facing acute debt pressure? As the UK shareholder, what role have the Government played in deciding where taxpayers’ money will go?
Secondly, can the Minister set out the themes and priorities that the UK argued for during the IDA21 negotiations? IDA covers a wide agenda, from health and climate resilience to education and digital infrastructure, so it would be helpful to know where the Government have sought to focus UK influence, not least in view of the reduction to the aid budget from 0.5% to 0.3%. Do the themes and priorities meet UK development objectives, and how have key UK interests been prioritised?
On the issue of debt sustainability, can the Minister reassure the Committee that IDA’s lending will not compound existing debt vulnerabilities? Have any safeguards been strengthened since IDA20? What assurances can the Government give that UK taxpayers’ money will not be used for debt reduction where countries have been trapped into debt by China? ODA should not be paying down debts to China.
Turning to oversight, what monitoring and evaluation arrangements does the Foreign, Commonwealth and Development Office rely on to demonstrate that UK contributions to IDA21 deliver measurable outcomes and value for money? How often will Parliament receive updates on performance and progress against UK objectives? Will the FCDO publish a report on delivery against measurable outcomes?
Governance is another key area. Can the Minister confirm whether there have been any changes to IDA’s transparency, accountability or anti-corruption safeguards, which should give Parliament confidence in how this replenishment will operate? Finally, can the Minister say whether the UK sought particular conditions or expectations from other donors during the negotiations? How do the Government intend to use the UK’s seat on IDA’s board to ensure alignment with our bilateral work, so that efforts are not duplicated?
IDA remains an important development instrument, but the scrutiny of large multilateral commitments is essential. We hope the Minister can address those points and we look forward to his response.