Overseas Aid: GDP Target

Baroness Northover Excerpts

Thursday 25th July 2013 Lords Chamber

[Lord Bates]

To ask Her Majesty’s Government what discussions they had at the G8 summit on members’ individual progress towards the 0.7 per cent of gross domestic product target for spending on overseas aid.

[Baroness Northover]

My Lords, individual progress towards the 0.7% of gross national income target for spending on overseas aid was discussed by the G8 as part of the production of the Loch Erne G8 Accountability Report, which was endorsed by leaders at the G8 summit.

[Lord Bates]

I am grateful to my noble friend for that Answer. While we can take immense pride in being the first Government of a major G8 country actually to deliver on the pledge made 23 years ago to provide 0.7% of our gross national income to the poorest, Germany is still at 0.38%, Canada at 0.32%, the US at 0.19% and Japan at 0.17%. Does my noble friend accept that the entire point of us increasing our responsibility and taking our responsibility to the world’s poor seriously was never meant to enable other countries, which are now cutting their aid budgets, to shirk their responsibility to the poorest?

[Baroness Northover]

My Lords, I thank the noble Lord for his tribute to our leadership on this. By meeting our commitments, we are better able to seek to influence others, and that is what we are indeed seeking to do. I note his example and pay tribute to him because, as I understand it, on Saturday he will be starting a 500-mile walk on behalf of Save the Children’s work in Syria.

[Noble Lords]

Hear, hear.

[Baroness Symons of Vernham Dean]

My Lords, the noble Baroness may be aware that shortly after the main G8 summit there was also a G8 conference on women, based on the Deauville Partnership. Given the question raised earlier by the right reverend Prelate, can the noble Baroness tell us what part of our budget is currently directed towards projects that specifically deal with developmental issues for women, many of which will be very well known to her?

[Baroness Northover]

I will write to the noble Baroness with a more precise answer on that. I know that I have issued Written Answers but I cannot, I am afraid, give her the figure off the top of my head.

[Lord Howell of Guildford]

My Lords, I think we all applaud the dedication and enthusiasm of my noble friend Lord Bates, but does the Minister accept that while these great global targets may bring satisfaction to some, the actual aim is development, not merely volumes of aid, and the real drivers of development are entrepreneurship and ownership raising the prosperity of the peoples and the countries concerned and eradicating poverty? As has been set out very clearly by great experts such as Hernando de Soto, these are the things that will make development work. Will she assure us that her colleagues are fully aware of this view about how aid can lead to development rather than in some cases actually block it?

[Baroness Northover]

I assure my noble friend that DfID is very seized of that and is well aware of the importance of entrepreneurship and ownership. We are also, of course, aware that the stories of China and India show that trade and economic development have powered those countries.

[Lord Judd]

My Lords, whatever happens about the commendable 0.7% target, does the noble Baroness agree that to be effective, we must support the strengthening of governance, effective and fair tax systems, and sustainable development programmes in the third world that take into account the challenge of climate change? Does she also agree that if we are to be effective in achieving this, we must not preach at the third world about its responsibilities but have to demonstrate, in tax and in our sustainable development policies in this country, that we are doing what we are asking it to do?

[Baroness Northover]

The noble Lord will be aware that in the previous Question we talked about the MDGs. Their environmental goals are clearly extremely important and need to be agreed by developed and developing countries. He is right about the burden on us in terms of taking this forward. He will also know that there was a major emphasis on tax at the G8 and the G20. The United Kingdom is leading with regard to addressing the issues that he has highlighted.

[Baroness Nicholson of Winterbourne]

My Lords, I welcome the Minister’s robust response. None the less, it is how the money is spent, rather than the amount of money, that actually tackles poverty effectively. With that in mind, how does her department intend to respond to the continuing challenges posed to it by the further report of the Select Committee on International Development in another place, published this morning, on accountability and transparency?

[Baroness Northover]

I saw the press coverage of the International Development Select Committee’s report this morning. I was then astonished to look at the report itself, and wondered how on earth the press came to the conclusions that they did. They were reviewing DfID’s multilateral aid review. They pointed out that it was extraordinarily important for DfID to review how its aid is given, and suggested that there were strengths, but also some areas where DfID might want to investigate further, including—to pick up the noble Baroness’s question earlier—ensuring that multilateral organisations focus on gender. I welcome the Select Committee’s report; it helps keep us on our toes, and it does not match up with this morning’s press reports.

[The Earl of Listowel]

My Lords, I join noble Lords in praising the coalition Government for their global leadership in meeting our responsibilities to those in the developing world. Does the Minister agree that it is helpful to bear in mind the difference that this is making to children’s lives, to think of particular instances—such as the boy who was brought up by his grandmother in a marginal area of Tanzania far from hospitals and schools, who experienced kwashiorkor, and who came to speak to Members of the House about his struggles—and to think that other children will not suffer that undernourishment or the life-damaging results of hunger at such an early age because of the leadership of the coalition Government?

[Baroness Northover]

I thank the noble Earl for his tribute. He is absolutely right. Anybody who works in this area and anybody who visits the countries that he has visited will understand why we are doing this. He will also be aware of the focus on nutrition that we had just before the G8 and the emphasis on ensuring that children are not stunted both physically and mentally.