APPENDIX (continued)
THE AID
AND TRADE
PROVISION AND
MIXED CREDITS
Paragraph 33: Recommendation 16
We wish to be informed of all use of mixed credits by
DFID. It is important that any such proposal receive independent
scrutiny.
The Government will inform the Committee of all use of mixed
credits. The Government has no plans at present, however, to subject
mixed credit proposals to independent scrutiny. The potential
use of mixed credits as a means to achieve specific country objectives,
will be considered in Country Strategy Papers: i.e. within a broad
country-specific strategy which will have the primary aim of helping
to reduce poverty. A broad consultation process will be undertaken
when drafting each paper.
Paragraph 34: Recommendation 17
We recommend that the United Kingdom Government make it
a priority of this Parliament to initiate and promote an international
campaign for the multilateral untying of aid. This should be combined
with the multilateral elimination of export subsidies.
The Government welcomes the Committee's support for multilateral
untying. We are actively promoting the OECD's current initiative,
aimed initially at untying aid for the least developed countries,
and will continue to take every opportunity to pursue this objective.
The White Paper reaffirms our commitment to the effective
implementation of the multilaterally agreed disciplines which
limit the use of tied aid credits (Helsinki disciplines) which
have already had a positive impact internationally on reducing
the number of projects receiving export subsidies.
THE PRIVATE
SECTOR AND
THE COMMONWEALTH
DEVELOPMENT CORPORATION
Paragraph 36: Recommendation 18
The White Paper promises "discussions with British
business" to support responsible investment and trade, which
are important for sustainable development. We recommend that DFID
provide more information to the Committee on the form and timetable
for these further discussions and report on their content and
conclusions. At present the proposals for the involvement of British
business as found in the White Paper appear too vague to be very
useful.
The Government is in full agreement with the Committee about
the vital role of the private sector in development. The White
Paper outlines some of the ways in which we hope to encourage
businesses to invest in and trade with developing countries. Discussions
with business will play an important part in this, as indeed they
were in developing the strategy set out in the White Paper and
the work undertaken since publication.
We are committed to consulting with the private sector on
strategies for the development of particular countries and regions.
This consultation will take place both in developing countries
and in the UK, generally through existing public-private consultation
fora and informal mechanisms. We will also consult private sector
organisations based in the UK about the private sector's potential
to contribute in specific sectors or areas of focus. These discussions
will take place through existing mechanisms, which are both formal
and informal, and, where appropriate, by establishing new public-private
consultation groups. A public-private consultation group will
be set up by DFID to oversee progress in all areas of partnership
with the private sector. The first meeting of this group will
take place in April. A more informal advisory panel wil be used
to generate new ideas about the how best to work with the private
sector towards the attainment of the international development
targets. DFID has already agreed to fund the Ethical Trading Initiative
and are developing our approach to socially responsible business.
We welcome the Committee's desire to be informed of the content
and conclusions of these discussions and would be glad to discuss
the appropriate means of following this up.
Paragraph 37: Recommendation 19
We retain some concerns concerning the Government's plans
for the Commonwealth Development Corporation and will examine
this question further when more details are announced.
The Department will prepare a separate paper for the Committee
on the proposals for CDC.
INVOLVING CIVIL
SOCIETY
Paragraph 38: Recommendation 20
We would welcome further acknowledgment in the Government
response to this Report that support to and involvement of civil
society in developing countries is an essential part of effective
policy in all circumstances, not only when partnership with government
is impossible.
The Government agrees fully that development of a healthy
civil society is an essential component of development and democratisation,
and it will be supported in our development programme. It helps
poor people to achieve their rights - including their economic,
social and cultural rights - when the formal processes of democracy
are supplemented by a rich mix of ideas and voices.
Paragraph 40: Recommendation 21
We recommend that the Government response to this Report
contain a detailed account of how the Government will include
the NGOs in the implementation of its development policy, providing
an analysis of those areas where the NGOs enjoy a comparative
advantage over government activity.
DFID is reassessing ways of working together with a wide
range of organisations outside the public sector. We intend to
launch a formal consultation on how we can better work with these
organisations in pursuit of the strategy and objectives set out
in the White Paper. This will cover community-based organisations,
not-for-profit organisations, large international development
organisations and advocacy organisations.
As part of this consultation process, DFID will also consider
developing further direct funding relationships with international
and southern NGOs within bilateral country programmes where a
common commitment to poverty elimination can be identified.
In addition discussions will take place with NGOs on winning
public support for development, including through development
education, and the part they can play through their dialogue with
international organisations.
Paragraph 41: Recommendation 22
We recommend that further detail be provided in the Government
response of how ethnic minority and refugee groups in the United
Kingdom are to be involved in the development process.
The Government shares the Committee's concerns to involve
ethnic minority and refugee groups in the development process.
The Development Awareness Working Group (DAWG) which will advise
the Government both on development education and broader public
awareness issues, will include members of ethnic minorities. Its
terms of reference also specifically cover the involvement of
different ethnic and religious groups in the education and awareness
process. Plans for the Development Policy Forum which is intended
to generate a national debate about development thinking, will
also address the question of how to involve different ethnic groups.
Paragraph 43: Recommendation 23
We recommend that the Secretary of State report to the
Committee the findings of her review of current development education
activity and give details of what the Department will do to improve
development awareness and participation among the adult population.
We have little doubt that extra resources will be necessary to
finance effective development education among the general public.
The Development Awareness Working Group will consider an
outline strategy on development education and public awareness
at its first meeting in March. In the light of the Working Group's
discussions, the Government expects to have a clear strategy in
place by around the middle of 1998, and will report this to the
Committee. The Government remains committed to strengthening the
Department's work in this area. The issue of extra resources is
being considered as part of the current resource allocation round
within the Department.
DEPENDENT TERRITORIES
Paragraph 44: Recommendation 24
We reassert our recommendation that the reasonable assistance
needs of the Dependent Territories should no longer be a first
call on the development programme.
The Government notes this recommendation, and will bear it
in mind in its current consideration of future arrangements for
the Dependent Territories.
DISASTERS
Paragraph 47: Recommendation 25
We recommend that DFID introduce Hazard Impact Assessments
for new developments in recognised risk areas, ensure also that
all such developments are hazard resistant, and consider how best
to assist vulnerable disaster prone countries in the vital task
of risk assessment.
The Government fully agrees that new development projects
should not increase the vulnerability of beneficiary populations,
and are themselves (particularly in the case of infrastructure)
as hazard-resistant as practicable. Disaster prevention and preparedness
are being made an integral part of the development co-operation
programme. The Government also recognises that risk assessment
is the first step towards devising effective vulnerability reduction
programmes, and will expand measures to assist partner countries
in this area.
CONFLICT PREVENTION
Paragraph 48: Recommendation 26
We would encourage DFID to put forward projects to promote
conflict prevention. We also wish to see projects concerned with
post-conflict reconstruction, in particular the creation of employment
opportunities and the rapid establishment of social services in
post-settlement reconstruction in parallel with the decommissioning
of arms (Paragraph 48).
Building the will and capacity of state and civil society
to resolve disputes non-violently is a White Paper commitment.
DFID already supports projects aimed specifically at conflict
prevention and resolution and will continue to do so. See also
answer to 28.
Post conflict reconstruction is essential for peacebuilding
and reconciliation following armed conflict. We will support demobilisation
and the reintegration into society of ex-combatants. We will also
support measures to reconstruct government services where appropriate.
We hope that the International Criminal Court will contribute
to both reconstruction and reconciliation, both because of its
deterrent effect on the continuation of conflict, and also because
seeing justice done should help the process of reconciliation.
Paragraph 49: Recommendation 27
We recommend that DFID provide details of the work and
procedures of the Whitehall committee charged with examining requests
for arms licences.
Licences to export strategic goods are issued by the President
of the Board of Trade. The Export Control Organisation of the
DTI is the licensing authority and is responsible for providing
information on export licence applications. All relevant individual
licence applications are circulated by the DTI to other Government
Departments with an interest, as determined by them, in line with
their policy responsibilities. These include the Foreign and Commonwealth
Office, the Ministry of Defence and the Department for International
Development.
DFID's interest in Export Licence Applications is broadly
two-fold. DFID has focused its efforts on examining applications
to poor countries. DFID's main interest is to ensure that the
proposed purchase would not seriously undermine the economy of
the recipient country, taking into account its public finances,
balance of payments, external debt, economic and social development
and any IMF/World Bank sponsored economic reform programmes.
Consideration is also given to whether the goods might be
used for internal repression or international aggression.
Paragraph 50: Recommendation 28
We recommend that the Government introduce conflict impact
assessments of its policy towards vulnerable countries and promote
such an approach in multilateral institutions.
The Government recognises the need to take account of conflict
issues in its policies towards developing countries. DFID's future
programmes will give greater consideration to sources of conflict,
and the dynamics of conflict situations, and incorporate prevention
and mitigation measures where feasible. DFID will strengthen its
capability to conduct conflict impact assessments in the design
and review of its own programmes, and will encourage the EU and
UN multilateral agencies to do the same.
GOOD GOVERNANCE
AND CORRUPTION
Paragraph 53: Recommendation 29
We welcome the White Paper's emphasis on good governance
and its determination to fight corruption and to uphold human
rights both through bilateral and multilateral action. We must
never again witness the use of aid to bolster corrupt and cruel
regimes. This must be the policy of all government departments,
not just DFID. We remain to be convinced that other departments
have taken this policy to heart. We will monitor the policies
and actions of all departments to ensure they promote human rights
and good governance in developing countries.
The Government welcomes the Committee's endorsement of our
commitment to promote good governance, including tackling corruption,
and to helping to promote human rights. The Government intends
to promote greater coherence and coordination among departments
in support of its objectives in these areas.
CONCLUSION
Paragraph 56: Recommendation 30
We end by again welcoming the White Paper, which is an
impressive survey of development issues and a long overdue attempt
to bring focus and coherence to Government policy. If implemented,
such policies will make the United Kingdom a leading force for
the sustainable and peaceful development of our planet. This is
a worthy ambition, and one we will wholeheartedly support.
The Government welcomes this endorsement by the Committee.
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