PARLIAMENTARY DEBATE
International Development White Paper - 21 November 2023 (Commons/Commons Chamber)
Debate Detail
We drew on the sharpest and most expert minds from non-governmental organisations, academia, business, nearly 50 Governments around the world, and all political parties in the House. I particularly wish to thank colleagues across the House for their contributions to shaping this White Paper. This is an area of policy that does not belong either to the Conservative party or to Labour; it is a British policy and commitment.
As the whole House knows, development has helped transform the lives of billions of people. The UK can be immensely proud of our distinct contribution to this incredible success story. Two centuries ago, three quarters of the world lived in extreme poverty. When I was born, around half still did. By 2015, when the world met the millennium development goals, the proportion of a much larger global population had fallen to just 12%. Evidence shows that development works, but it also shows that we now need to think about how we do development.
After decades of hard-won but persistent progress, we live in a world facing a daunting set of challenges: a world that is seeing rising poverty, where progress is in retreat; a world where the UN sustainable development goals are nearly all off track for 2030; a world where faith in multilateral institutions is fading despite co-operation being desperately needed; a world facing a climate crisis, growing conflict and the prospect of further pandemics; a contested world, where unity and solidarity are increasingly important, yet ever more difficult to achieve. This White Paper sets out a road map to 2030, charting the path the UK must take to galvanise global attention and lead by example in the fight to end extreme poverty, tackle climate change and address biodiversity loss.
When it comes to international development, finance matters. The Government have been clear on our intention to return to 0.7% of GNI when the fiscal circumstances permit, but the White Paper also makes it clear that we will not achieve the sustainable development goals through business-as-usual official development assistance funding. We need a quantum leap in financing and investing, which only the private sector can provide. The private sector is an essential engine of development, giving communities the building blocks for economic independence. Self-sufficiency is development’s essential purpose, and our work with the UK private sector delivers back for taxpayers many times over.
British Investment International, formerly known as CDC, is already a core part of the Government’s offer on international development. It has an impressive track record, and now will go further and faster, investing in the hardest places. As was suggested by the International Development Committee, to whom I pay tribute, BII will aim to make more than half of its investments in the poorest and most fragile countries by 2030, while also enhancing its transparency, cementing its place as a world leader.
The White Paper presents our vision for much-needed reform of the international financial system, mobilising greater finance from the private sector and scaling up the lending capacity of the international financial institutions. The UK has pioneered the use of climate-resilient debt clauses, enabling vulnerable countries to hold off on debt repayments following an extreme weather event. Together with Prime Minister Mia Mottley and other supporters of the Bridgetown initiative, we are driving reforms of the multilateral development banks so that they can scale up financing for low and middle-income countries. We will also work with institutional investors such as pension funds to plug the SDG’s $3.9 trillion annual financing gap.
International development and climate action are inseparable. Climate change and nature loss are being felt everywhere, and their impact will only intensify over the next decade. It will be most acute in developing countries, reversing fragile development gains, increasing food prices and compounding insecurity and instability. To meet that challenge, we must mobilise more—and more reliable—finance. We will deliver on our pledge to provide £11.6 billion in international climate finance in the five years up to 2026. We will ensure a balance between adaptation and mitigation financing and provide at least £3 billion to protect and restore nature.
Britain’s work on women and girls is paramount. We cannot understand development unless we see it through the eyes of girls and women. Increasing access to education, empowering women so that they can decide for themselves whether and when they have children, and ending sexual violence are central to economic opportunity and growth. Those rights are universal and should be non-negotiable. The White Paper extends and reinvigorates that work. We will use research and diplomacy to end the preventable deaths of mothers, babies and children. We will deploy policy and investment to defend and advance sexual and reproductive health and rights.
Effective development is rooted in respectful partnerships of equals, but the Government will continue to stand up for our values. We know that individual rights, the rule of law and strong institutions are essential to achieving sustainable development. Take for example the work of the Westminster Foundation for Democracy, to which Members of Parliament make such a substantial contribution. It is the UK’s leading champion of democracy globally. We are increasing our support for its work so that we can support fairer, more inclusive and more accountable democratic systems around the world.
We must also find better ways to anticipate and prevent humanitarian crises and the conflicts that often drive them. Conflict and instability are on the rise and hold back development: by 2030 up to two thirds of the world’s poor will live in fragile and conflict-affected contexts. Humanitarian needs are at their highest since 1945, with twice as many people needing assistance compared with five years ago. The resulting devastation is spreading across affected regions, as seen at present in the Sahel and the middle east. The tragic events in Israel and Gaza bring home the humanitarian costs of conflict and violence, with women and children most directly affected.
I am therefore pleased to announce today that we will create a fund dedicating up to 15% of our bilateral humanitarian spend to support resilience and adaptation alongside our delivery of humanitarian relief, which we expect to amount to £1 billion next year. When I visited families in east Africa suffering the worst drought in 40 years, it was clear that the current focus on immediate relief comes at the cost of early thinking and building in resilience and adaptation for the future. The new fund will respond directly to that specific challenge.
Innovation is at the heart of our efforts to transform lives through sustainable growth. The wondrous creativity of science and technology can address problems that money alone will never solve. Only by sharing research and innovating together can we make the breakthroughs that our world needs. The world has never been so intimately connected, nor our fates so closely entwined. Although we can rightly be proud of all we have done to deliver international development, the UK and our global partners must redouble our efforts given the challenges that we faced to achieve those goals.
We asked in the White Paper what the UK could do. We were told to make a new development offer based on mutual respect, powered by finance at scale, and supported by a more responsive international system. We have listened: that is what the White Paper will deliver. The Prime Minister has launched the White Paper to do development more effectively and differently, and yesterday’s global food security summit was an example of that. I commend this statement to the House.
The catastrophe in Gaza is a strong reminder not just of the need for humanitarian assistance and expertise, but of the heavy responsibility that we all face to play our part in the world through the painstaking hard yards of diplomacy, and of the crucial role of development in providing the hope that breathes life into any peace process. I thank the Minister for his personal efforts to bring some energy and direction to this agenda again. In fact, I would go as far as saying that I do not believe that the House would be in a position to consider a new White Paper were he not in post—a view that I think is shared by many on the Opposition Benches.
However, to have an honest conversation about where we are heading, we need a frank assessment of where we have been. There was the mindless vandalism of the decision to take one of our most respected, influential contributions to the world—the partnerships, thought leadership and innovation—and trash the lot to deflect from a domestic crisis. There was the former Prime Minister who, shamed by a young footballer into abandoning his decision to allow children to go hungry in a pandemic, pulled the rug out from under the poorest people in the poorest countries. Make no mistake: that cost lives, but it also cost Britain its reputation as a gold-standard leader in the field. As the Minister said then, it was
“a strategic mistake with deadly consequences.”—[Official Report, 2 March 2021; Vol. 690, c. 118.]
He knows that I admire his determination to speak out against those decisions, and I know that he does not shy away from acknowledging the damage that they have done.
Although the former Prime Minister may be gone, his second in command, whose signature is scrawled across those documents, now sits in No. 10. His short words at the start of the White Paper leave me in no doubt that, although his posture has changed, his position has not. Frankly, asking the man who signed off the devastation of this vital agenda, only to breathe new life into it again, is like calling out the arsonist to put out the fire. For much of the agenda that the Minister set out today, he will have our support. The question is whether he will have that of his Prime Minister.
The Minister is right to recognise that the major obstacle to eliminating extreme poverty is the growing challenge of climate change and debt, but the key is how to resolve it. The multilateral system is strained—much of the world’s debt is owed to private creditors, and over recent decades China’s influence has grown—so we strongly welcome the recognition in the White Paper that Britain’s approach to development must sit in a multipolar world. However, multilateral aid will fall to just 25% of aid spending by 2025. Although the commitments in this White Paper are welcome, the Minister is prioritising multilateralism while his Department prioritises bilateralism. Which is it? We have a strategy at odds with the ambition.
The second problem is that to make the strategy work, the Minister will need to convince the world that Britain is a long-term reliable partner with serious commitment at the highest levels of Government, yet his own White Paper is silent on protecting the overseas development assistance budget from raids from other Departments, after 30% has been raided in the past year by the Home Office alone to pay for spiralling hotel bills and the cost of this Government’s chaos. What chance does he have of convincing the world that this area is a priority for the Government if he cannot convince his colleagues around the Cabinet table? I suspect that on the central issue—the need to deal with debt and finance constraints that block action on climate—he and I have more in common than he does with most of them.
There is much to welcome in the White Paper, but access to finance for many of the most heavily indebted countries is ultimately unachievable. He is embracing some of the new ideas on finance, but when it comes to the central issue of debt, where is the fresh thinking? The outsized role of the City of London compels us to do more. Now is the time not to cling to existing strategies, but to leave no stone unturned.
The problem of climate finance and debt for middle-income countries enables us to focus on low-income countries and the core task of eliminating extreme poverty, but there is far too little in the White Paper about how that can be achieved. We welcome the focus on conflict, but the route out of poverty lies not just in access to finance and in functioning economies, but in self-sustaining health, education and welfare systems designed and run by the people in those countries. What can he do to reassure the House that that is not a second-order issue?
Finally, the Minister and I have discussed the central importance of women and girls many times. They have been among the biggest losers of the decisions of recent decades. Empowering them is the biggest untapped driver of growth in the global economy, and there is no way of meeting the sustainable development goals without closing that shameful gap. That is why they must run like a thread through the whole agenda—not just in addition to it, and not a few pages in a document. Every single decision that comes across his desk must consider whether it does more to empower and enable women and girls to succeed, or less.
I welcome and support the Minister’s commitment to this agenda, but without the political backing, without the budget and without the priority in Government, he will not succeed. He is far more alive to the scale and nature of the problems that Britain and the world face than most of his colleagues, but the challenges of this era demand an end to old ways of thinking and an embracing of the new. I know he is open to it, but are his Government?
I note the hon. Lady’s remarks about the merger of DFID into the Foreign Office. My task, which the Prime Minister gave me, was to try to make the merger work. That means there needs to be an ability within Government to focus on global public goods and delivering them into the 2030s. That is what I am trying to do. She rightly asks how we get the balance right between multilateralism and bilateral funding. The answer is that we use either, depending on what delivers for our taxpayers and what delivers results on the ground. That is the yardstick; there is no ideology. We go with what works and what is best.
The hon. Lady pointed out the increase in spending in other Departments of ODA money and the development budget. It is true that that has gone up, but every penny is spent within the rules laid down by the OECD Development Assistance Committee. We brought in the innovation of the ODA star chamber in Whitehall, co-chaired by the Development Minister and the Chief Secretary to the Treasury. There is already clear evidence of that ratcheting up the quality of ODA, as the hon. Lady would wish.
The hon. Lady talked about access to finance for poor countries, which is incredibly important. Mitigation projects in middle-income countries are easy by contrast; when it comes to poor countries and adaptation, it is much more difficult. She will see the emphasis in the White Paper on accepting the advice from the Select Committee on increasing the amount that British International Investment does in poor countries. She will notice, too, the emphasis on social protection, and the fact that 62% of the budget will now be spent in fragile and conflict states.
Finally, the hon. Lady asked about debt, where she is right that we need to do far more. It is absurd that a country such as Ghana can borrow only for seven or eight years, yet our children can get mortgages for 30 years. Ghana borrows at 7%, and our children borrow at 2%. That is clearly completely wrong, but there is a lot of new thinking. She will have seen the climate resilient debt clauses launched by Britain and the work we are doing on the G20 common framework to increase access for countries. It is also important to ensure that the private sector is bound into debt settlements when they affect sovereign states.
The first and probably the most important thing is the fact that there is no concrete recommitment to 0.7%, as recommended by the International Development Committee. In the entire document of 154 pages, there is one mention of 0.7%, where the White Paper states that the Government will recommit to it
“once the fiscal situation allows.”
If the fiscal situation currently allows for tax cuts, I would say that that moment has arrived. The new Foreign Secretary was instrumental in getting us to 0.7% in the first place, so I hope that he and the Minister will expedite that intention.
Secondly, there is no recommitment to the restoration of programmes that have been cut since 2021, including in Yemen, Syria, Somalia and South Sudan, all of which had cuts of more than 50%, taking several million pounds of their support away. Those nations are all suffering significant repercussions from the climate crisis and the fallout from conflict.
Although I am pleased that women and girls and gender equality are to be put at the centre of bilateral funding, stakeholders have said to me this morning that it is short of the transformative approach espoused by others, including the Scottish Government. Let us not forget that the cuts I just mentioned extended to girls’ education programmes, which is estimated to have resulted in 700,000 fewer girls receiving an education. That is one of the greatest scandals of our lifetime.
Finally, I was surprised that there was nothing in the White Paper about public perception of international aid and how we can challenge and change it. I have my own thoughts on that, but if most right-thinking people understood the role that their Government and their predecessors had played in some of these countries over centuries, and the ongoing legacy of that, they would understand that we have moral obligations. I know the Minister agrees, so I would appreciate his assurance that the omission of that point was simply an oversight. I look forward to continuing with the collaborative approach that he has brought to the role.
I have three short questions. First, the Minister referred to the Prime Minister asking him to try to make the merger work. We all know it has been a disaster. It was in the press last week that there was no rationale or reason for it to have happened in the first place. I would like to know why there is no thought put behind restoring that separate Department, because it was world-class, and the world looked to it for leadership.
Secondly, the Minister talked about ODA being legal. It might be legal, but one third of the budget—over £3.7 billion—is being spent on domestic issues of asylum seekers, not on extreme poverty, which he just said is a priority.
Lastly, to reiterate the point made by the Chair of the International Development Committee, the hon. Member for Rotherham (Sarah Champion), loss and damage was not mentioned. Two years ago in Scotland, we were world-leading, with the first pledge made by the Scottish Government. When I was at COP27 last year, the UK Government asked me to go and speak to partners on this. I am happy to do that when I am at COP28 in two weeks’ time.
In terms of where the money needs to come from, we need to get behind the Make Polluters Pay programme, which is across the world and is about the largest oil and gas companies that are most responsible for fossil fuels. If we have collective support from this Government and Governments around the world, we will find the money.
The hon. Gentleman’s second point was about the percentage of the development budget that goes to pay the first-year costs of asylum seekers. He will know that that is absolutely part of the rules on the way in which the budget is administered. We would be asking for a change in the OECD Development Assistance Committee rules, which is very difficult to achieve, as we have to get 30 countries to agree. We decided not to do that. We did get an extra £2.5 billion out of the Treasury to compensate for it, and he will have noticed that the figure being spent on that has been quite sharply reducing over recent months.
The hon. Gentleman talked about the merger. My views on the merger before I entered Government were fairly lurid, but surely the right thing to do now is to focus on whether we can create an entity that will deliver the global public goods we all support for the 2030s. If we can, that will be building on when we had two Departments. I notice that the hon. Member for Wigan (Lisa Nandy), who speaks for the official Opposition, is nodding at those remarks.
My right hon. Friend mentioned civil society, which plays a really important part in all aspects of development. He knows of my involvement in and support for one of Africa’s leading conservation NGOs, which does valuable work on the ground in Africa. What routes will be available for that organisation and other civil society organisations in the developing world to access the support set out in this White Paper? What channels should they be using?
The hon. Member for Oxford West and Abingdon (Layla Moran) is right about the cultural point. To make a merger work—there is no such thing as a merger; one side wins and one side loses, as I learned many years ago in the City of London—the culture is very important. If development practitioners and experts are respected by the traditional British Foreign Office and they work together, as they have done on putting this White Paper together, that is a very great strength indeed.
“will invest further to support women’s full participation in all political dialogue”.
I place on record my thanks to the Foreign Affairs Select Committee for inviting former Afghan MP and Deputy Speaker Fawzia Koofi to appear before it. What steps is the Minister going to take to ensure that full participation? Is he speaking to Afghan female leaders here and in Afghanistan, and how is that happening in the context of budget cuts in the region?
The hon. Lady asks specifically about UNRWA. As we know, a very large number of UNRWA humanitarian workers have lost their lives, along with others, in the Gazan conflict. Any attack and any loss of life by a humanitarian worker is deeply to be regretted. Those are people who have put themselves in harm’s way for fellow members of humanity. They are unarmed and just trying to do good to their fellow citizens. On the humanitarian need overall, climate change has particularly exacerbated that, and it is of course the poorest who are hit first and hardest, as the White Paper emphasises.
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