International Aid Reviews: Conclusions

Baroness Falkner of Margravine Excerpts

Tuesday 1st March 2011 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, I broadly support my noble friend in describing the outcome of the two reviews. The Government should be congratulated on becoming, by 2014, the largest rich economy to attain the United Nations target of providing 0.7 per cent of GDP in aid, which in the light of our very straitened circumstances is noble indeed. Fourteen years since the establishment of DfID—I pay tribute to the Labour Government for having set up that department—it is right that there should be this level of comprehensive review to look at the focus of its expenditure. I particularly welcome the emphasis now on fragile and conflict states. It is right that we focus on those where the need is greatest.

I have two questions to put to the noble Baroness. One is on the bilateral review and concerns India. I am somewhat concerned that a country which is in the queue to become a permanent member of the UN Security Council, a country which has a £20 billion space programme and which gives aid to other countries, should still continue to be a recipient of hard-pressed aid which, as the noble Baroness, Lady Kinnock, pointed out, should be going to other organisations, such as UN Women. I look forward to hearing my noble friend's response to that. It leaves one slightly uncomfortable.

On multilateral aid—I declare an interest as a former employee of the Commonwealth Secretariat until 2003—I notice that the Statement suggests that those organisations in special measures will be given two years to show significant improvement. I wonder whether two years is too short a period and whether there have been any conversations with those organisations in special measures to see whether they believe that they can show significant improvement in just two years or whether they need longer.

[Baroness Verma]

I thank my noble friend for both her questions. I know she has some concerns about aid going to India. Perhaps I can point out to noble Lords that India has one-third of the world's population living on less than $1.25 a day. Last year, DfID spent 58p per poor person in India compared with £3.50 per poor person in sub-Saharan Africa. We shall have to shift our focus and, therefore, the Secretary of State has decided to shift it to three states in India—the poorest states—to ensure that we are able to maximise our aid there.

India’s space programme adds up to 0.1 per cent of the country’s overall budget, but the issue is not just about the space programme. From that programme, the Indians are able to use the technologies to deliver mobile technology to villages and particularly to women who are able to access information which they would not otherwise be able to access. The programme is not just about space but about using the technology for other things as well. I completely understand that the noble Baroness has concerns, but she would perhaps also agree that we have a special relationship with India. If we are to see the aid programme go down, we must be able to lift far more of the people of India out of poverty.

On the organisations in special measures, I respond to the noble Baroness by saying that two years may seem a short time, but the organisations are fully aware that they have to make some serious reforms. Of course we will keep in constant dialogue with the Commonwealth Secretariat to see where the improvements are taking place. The secretariat reaches out to places where we, as a single country, would not. It has special niches and therefore it is important to support it fully.