Thursday 8th January 2015

(9 years, 4 months ago)

Lords Chamber
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Lord Giddens Portrait Lord Giddens (Lab)
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My Lords, I also thank the noble Lord, Lord Fowler, for securing this debate and introducing it in such compelling fashion. I join noble Lords in paying tribute to Pauline Cafferkey as she struggles for life in a hospital not far from where we are today. The latest report on healthcare workers who have died from Ebola puts the number at 500 rather than 400, which shows the awful toll it is taking in so many different areas.

I will concentrate on the economic consequences of the epidemic, to which the noble Lord, Lord Fowler, alluded. There is another tragedy unfolding alongside those of a medical and humanitarian kind. Prior to the Ebola episode, all three main states involved experienced strong economic growth following years of war and inept or tyrannical rule. Growth rates have already halved in Sierra Leone and Liberia and could even turn negative in Guinea. Tourism has come to a halt, as the noble Lord mentioned. Restrictions on mobility severely hamper trade. Agricultural production—a key area in all three countries—is way down. Rising food prices have helped create steep inflation—a very unpleasant economic scenario—which was running at more than 13% in Liberia in 2014. That situation could quite easily get completely out of hand. Meanwhile, investors are running scared and there is a serious risk of capital flight from these countries. Economically, this has the makings of a truly tragic situation.

The emancipation of women is a key aspect of economic development in emerging economies. Many women in the labour market have turned instead to the care of sick family members or others in the community. In Sierra Leone, for example, women were heavily represented in cash crop production, local trade and microenterprises. Many had to quit and most are highly unlikely to re-enter the labour force at any time soon.

As a result of this, I have three basic questions for the Minister to comment on. Like the noble Lord, Lord Fowler, and other noble Lords, my great fear is that if and when Ebola is effectively contained in west Africa, the international community will lose interest in the countries affected. Can we avoid them sinking back into despair and perhaps fragmentation? The possibility is very real that these countries could be worse than back to the point zero of some years ago when they were racked by war. These are, as every noble Lord knows, among the poorest societies on the face of the Earth. We must ensure that the international community does not lose interest if it appears that the epidemic can be contained—although some medical specialists now say that it could become endemic, which is an additional worry.

Secondly, how will the Government assess the success or otherwise of the World Bank in the budget support it pledged to facilitate trade, investment and employment in the three countries involved? The World Bank promised substantial sums of money. Does the Minister have any information about whether any of that money has been forthcoming? As we know, promises are easy to make. The sums involved were very large and it would be good to be updated on that if the Minister has that information.

Thirdly, it is clear that regional aid and investment will be crucial, coming from surrounding African states. How much progress has been made with the fund for renewal set up by the Economic Community of West African States? Any western intervention concentrated on the three principal countries must also seek to involve other African countries, and perhaps fund them in addition so that they can help the three countries most affected.