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Future of CDC

As I made clear to the Committee, the figure of 50% feels right in the context of India. I suspect that in many bilateral programmes over the years, there will be an increasing role for the work of the private sector as countries move down the path of lifting themselves out of poverty. In Vietnam, for example, we can see how that engine has driven the alleviation of poverty. There is no science to the figure of 50%, but it feels right in the case of India. As I said when I gave evidence to the Committee, it is not an arbitrary target but an aim. As the hon. Gentleman will be aware, in defending our decision to continue with an aid and development programme in India, it is important to respond to public concern. We must explain that, yes, India is roaring out of poverty, but there are more poor people in India than in the whole of sub-Saharan Africa. Seven and a half times the total population of the United Kingdom live on less than 80p a day, and it is right to walk the last mile with India on development. The aid and development programme is important, and makes up part of the rich tapestry of Britain's relations with India that were so singularly reinvigorated by the Prime Minister's visit last year. Those relations are important and we all—not only people in India but those in Britain as well—have a huge amount to gain from Indian prosperity. For that reason, we decided to freeze the programme, focus on work in the poorest states and redirect a significant part of the budget—up to approximately 50% by the end of the next four years—to pro-poor private sector development. That will create the jobs and prosperity that are essential for India.