International Aid

Baroness Kinnock of Holyhead Excerpts

Monday 29th November 2010 Lords Chamber

[Baroness Verma]

My Lords, multilateral organisations have strong controls in place on financial accountability and transparency. The UK, as a shareholder, has helped to shape these controls and we work hard to monitor effectiveness of multilateral expenditure. The ongoing multilateral aid review is assessing the overall effectiveness of organisations. Each multilateral organisation has its own mandate designed to address a specific challenge. The review is also looking at the relevance of each organisation to the UK’s objectives.

[Baroness Kinnock of Holyhead]

My Lords, does the Minister agree that the European Commission has made significant progress on aid effectiveness and transparency? Does she also agree that the budget support, which the Commission gives directly to developing countries, makes a huge difference to their ability to meet the MDGs and to provide predictability and long-term funding?

[Baroness Verma]

My Lords, I agree with much of what the noble Baroness has just said. Some 56 per cent of the world’s ODA is provided through the EU and 43 per cent of the European Commission’s overall budget goes to low-income countries. The EU also supports middle income countries, where 75 per cent of the world’s poor live. The effectiveness of EU aid has increased steadily over the past 10 years. It is now faster, more flexible and more predictable. Over the past five years, EC aid has helped 9 million children to enrol in primary education and 31 million households to access better drinking water.