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Debate on the Address

My Lords, I echo the remarks of my noble friend Lord Howell in welcoming our maiden speakers. With so many distinguished foreign affairs specialists in the House, and the forceful maiden speech of the noble Lord, Lord Jay, on the importance of the Foreign Office, I hesitate to mention one fact: according to the public expenditure overview, DfID now receives a bigger budget than the Foreign Office. In 2006, DfID received £4.4 billion and the Foreign Office received £1.9 billion—DfID received twice as much. The noble Baroness, Lady Jay of Paddington, told us that international development is now being taken seriously, and that it is one of the most important challenges that we face. But it can never simply be a question of numbers. The eminent economist Professor William Easterly has described, "““the twin tragedies of global poverty””." The first tragedy encompasses the many and well documented problems that several of your Lordships have identified. The second is that, after 50 years and more than $2.3 trillion in aid from the West, there is so shockingly little to show for it. Clearly the problem is not apathy, but the efforts seem so futile. It is a great sadness that statistically countries that have received high levels of aid are no more likely to pick up economically than those with little outside help. Many of our efforts are too ambitious in their design, where the more focused, localised plans that the noble Earl, Lord Sandwich, always mentions would be more successful. Pledges are made with no regard as to whether the targets are achievable. In an Oxfam report in October, we heard how a 10 year-old promise to halve global hunger by 2015 is having no effect. Since the pledge was made at an international summit in 1996, the number of people starving worldwide has increased by 54 million, while the number of those facing starvation in Africa has risen by a fifth. It was perhaps no surprise to see that the Government’s response to this announcement was to quote how much DfID had spent, rather than to name any substantive measures taken to reduce hunger. So many efforts fail due to lack of accountability. Promises and gestures are too easily made, but at no cost when goals are not met. The G8 summit last year originally agreed to cancel all debts owed up to the end of 2004. After the conference, the World Bank agreement was renegotiated to include debts only up to 2003. This change—made after the headlines and spotlight had moved away—will cost poor nations an extra $5 billion. All too rarely do we ever hear any feedback on the success of these gestures. Who knows what practical effects the Make Poverty History campaign actually had? We never hear feedback from the poor themselves. The Chancellor has recently launched a new bond scheme, which will tie up funds and shackle future budgets for the next 10 years, leaving no opportunity for evaluating its success. I urge the Minister to ensure that we pay close attention to how this money is spent. While the more overriding and obvious actions may be the most appealing—alleviating guilt or satisfying the vanity of Governments—they may not be the most beneficial to those whom we are actually trying to help. Following the recent convocation of41 African presidents in China, I am reminded of the success of Chinese involvement in Africa and would like to see us take a more commercial approach through investment and trade, rather than handouts to Governments. As Peter Boone, an economist from the LSE, found, aid has invariably financed consumption rather than investment and growth. No developed society ever solved its own poverty problems in this way. While we may not approve of everything that China is doing, there is no doubt that by offering straight commercial relations and bilateral trade with African nations it is helping to stimulate developing economies. As part of these relations, China is also improving schools, hospitals, roads and railways across the continent—exactly the sort of material benefits that many Western donors have been reluctant to offer. We should encourage trade between developing countries and look towards long-term solutions. Our Conservative proposals for a pan-African trading area might help to achieve exactly that. The most effective solutions will not be imposed from outside, but must have domestic origins. Noble Lords who were in the chamber in October might remember that I mentioned the remarkable example of Anglo American’s HIV/AIDS programme for its employees in South Africa, devised and run by Dr Brian Brink. Private companies, as well as religious groups—as mentioned by the right reverend Prelate the Bishop of Chelmsford—have an important role to play in tackling the problems caused by poverty. Dr Brink illustrates how enlightened private companies can be more effective than just government money. The programme relies as much on prevention as on the treatment, and couples practical remedial steps with behavioural education and raising awareness. Crucially, it also encourages voluntary involvement through testing and counselling and is therefore seen as less prescriptive or patronising. Realistic programmes should be undertaken rather than wild promises made. It is surely better to pledge money for specific achievements, such as building a reservoir or improving roads to inaccessible villages, than to announce broad targets for which no one is accountable and which no one has any incentive to meet. I again welcome the Government’s commitment to DfID in the gracious Speech, but it is important to remember that increased aid does not necessarily mean increased development. We should also remember that we are trying to transform the lives of individuals, not Governments.