Select Committee on International Development Minutes of Evidence



APPENDIX 1

Memorandum submitted by Christian Aid

  Christian Aid is the official relief and development agency of 40 British and Irish churches, working with communities in over 60 countries through their local organisations. It aims to strengthen the efforts of poor people to achieve self-sufficiency and to address the root causes of poverty by investing in development education and campaigning at home. Churches here and internationally are our natural partners, but Christian Aid seeks common ground with all people of goodwill who side with the poor.

1.  DISASTER PREPAREDNESS

  The slow, hesitant and unco-ordinated response to the catastrophic flooding that engulfed southern Africa, and particularly Mozambique, in February 2000 demonstrates (yet again) that current institutions and response mechanisms remain inadequate to address what are likely to be increasing numbers of similar sorts of emergencies in the coming decades.

  Christian Aid believes there is an urgent need for effective international co-operation in disaster relief and mitigation. It is our view that this can best be achieved not by establishing a "super worldwide" surveillance and response mechanism but by establishing or strengthening these at the regional level, usually within the framework of existing regional organisations. This would help to ensure both that local sensitivities are respected and that local organisations are strengthened. In the southern African case, the most appropriate body to which a sub-regional response and surveillance mechanism could be grafted would be the South African Development Community (SADC) which already has a regional Food Security facility. It is these organisations which must take the initiative in establishing regional disaster preparedness networks with a rapid reaction component. Clearly these would need to work closely with the donor community and multilateral organisations such as the United Nations Disaster Relief Organisation (UNDRO) as well as to have access to the best available international forecasting, early warning systems and related technologies. They would need to be created in the context of a pool of international funds and other resources to which they could gain speedy access as and when needed and in the framework of an international agreement on the topping up of funds from donor and other agencies.

  What plans does the UK Government have for actively promoting strengthened regional disaster preparedness networks at the international level?

  Does the Government support the formation/enhancement of regional rapid reaction forces?

  Is DFID/FCO satisfied with current arrangements for UK and internationally co-ordinated responses to emergencies?

2.  POVERTY AND AID

  Poverty plays a key role in exacerbating natural disaster, in increasing the numbers of people vulnerable to risk, and in inhibiting a state's ability to be prepared for emergencies and to deploy resources to respond. Major advances in disaster management have been concentrated in the world's richer countries and in those with high and sustained growth rates. It is 25 years since a hurricane claimed more than 100 lives in North America, but over 15,000 died in Honduras the Western hemisphere's second poorest country, after Hurricane Mitch in 1998, through poverty's dual impact.

  The UK Government has been playing a leading international role in helping poor countries to give priority to raising growth rates in the context of policies that focus on poverty eradication. However, poverty persists in many developing countries and there remain serious concerns about the achievement of many, if not most, of the internationally agreed targets by the year 2015. Christian Aid in particular is concerned that:

    —  many poor country economies are failing to achieve high growth rates—in a number population growth rates continue to exceed economic growth rates;

    —  income and wealth inequalities continue to widen in many poor countries as the political and economic elites reap disproportionate rewards from the process of globalisation;

    —  the stabilisation and adjustment policies advocated by the international finance institutions are still failing to address, let alone, alleviate the particular problems of significant groups of poor people;

    —  the downward global trend in aid flows (temporarily reversed in the period from 1997 to 1998) together with the increasing need to channel more and more funds to disasters is leading to fewer and fewer aid funds available for development promotion and long term poverty eradication.

  In terms of global aid levels, what time-frame plans does the British Government have to reach the 0.7 per cent of GNP targets for official aid flows?

  What steps is the UK taking to lobby other donors, especially the United States and a number of key European partner donors to commit themselves to higher and sustained official aid flows?

  Christian Aid believes that the UK's planned development assistance expenditure for Mozambique of £37.5 million for 1999-2000 and £38.7 million for 2000-01 should not be utilised for emergency funding and that emergency and rehabilitation funding must be additional to planned programme funding. Can DFID confirm that the planned programme expenditure of £37.5 million for 1999-2000 and £38.7 million for 2000-01 will not be reduced to partly pay for emergency funding?

3.  DEBT

  Unpayable international debt is a major structural cause of poverty in the South. This year's budget for primary health care for Mozambique's 19 million population is $20 million a year and for education it is $32 million. Yet, the country's annual debt repayment has recently been estimated to be $73 million a year.

  Reconstruction for Mozambique will require significant resources in the medium and long term for repair of infrastructure (eg roads, bridges, rail and the electric grid), agricultural regeneration and health and education provision. Recent Government of Mozambique figures judge that at least $630 million will be needed for reconstruction, even though international experience suggests that this figure is likely to rise very significantly in the weeks ahead as the true cost of the overall damage is assessed. Given the extremely limited resources available, the Mozambican Government is faced with Hobson's choice: either it trims pre-flood expenditure to pay for new needs arising from the flood or it lowers levels of planned expenditure to pay for flood relief, relief and reconstruction. (The fall in the proportion of government expenditure allocated to the army over the past 10 years has been higher in Mozambique than possibly any other African country.) It is therefore essential that the international community respond to this need by cancelling both bilateral and multilateral debts owed by the Mozambican Government. Its foreign debt currently generates over US$1.4 million a week in repayments.

  Mozambique's total external debt is currently US$6.4 billion (over £5 billion). Britain has pledged to accept no more debt repayments from Mozambique. Meanwhile, the International Monetary Fund (IMF) and the World Bank have announced a deal to suspend Mozambique's debt service for one year. But with the new money Mozambique needs to rebuild an already poor export earning capacity made worse by the floods (Mozambique's export earnings have halved in value in 23 years) it is likely to end up in even greater debt. As Mozambican economist Carlos Castel-Branco says, "We cannot pay our debt with water. The Word Bank will not accept water. But it is all we have."

  What action are we taking to ensure other creditors, especially those within the European Union, follow the UK's example of cancelling their bilateral debts with Mozambique?

  Will Britain use its voice within the IMF/WB to press for those bodies to cancel all of Mozambique's debt to them?

4.  THE EUROPEAN UNION

  The Government's White Paper on International Development states:

    "Within the EU we shall work closely with other member states and the European Community Humanitarian Office (ECHO) to ensure more consistent joint policies and approaches". (p. 44)

  Is HMG satisfied with the response of the EU and more specifically ECHO to the current and ongoing Mozambique emergency?

  If not, how does it believe the EU response can be improved in future and what role does it envisage HMG playing in achieving that?

5.  GOVERNMENT CO -ORDINATION

  The White Paper on development, Eliminating World Poverty: A Challenge for the 21st Century, is a Government not a departmental policy document: indeed this is a point which is highlighted in the White Paper itself. Does the experience and response to the Mozambique floods not indicate that in practice there remains still a lack of harmony across departments, and perhaps even a lack of cross-governmental commitment to implementing the policies of the White Paper? For the White Paper states unequivocally that:

    "In responding to emergencies, we aim to provide swift, appropriate and cost-effective financial, material and technical assistance, based on analysis of actual need . . . The UK's capacity to respond to disasters overseas will be strengthened by tapping the vast reservoir of available skills and building partnerships within the public and private sector to ensure that all players are used to their best competitive advantage. In all disaster work, our responsibility must be first and foremost to those affected". (p. 44, emphasis added).

  Where there is a major emergency and technical, logistical support, and equipment need to be deployed quickly, what mechanisms exist across UK Government and internationally to ensure a rapid and effective response? Is DFID happy with these arrangements?

  Is it recognised that when such support is necessary, other government departments will only charge DFID the additional (marginal) costs likely to be incurred in providing needed resources?

  How can Britain improve its response to rapid onset emergencies?

6.  BUILDING CAPACITY IN MOZAMBIQUE

  In recent years, Britain's aid support to Mozambique has rightly focused on helping the Government to build, deepen and strengthen local capacity. This is illustrated, for example, in the assistance given to the education programme, including support to teacher training, support given to rebuilding the Customs Service, and the technical assistance given to the Ministry of Planning and Finance (including through the Overseas Development Institute's Fellowship scheme) both to build capacity in general and to provide help in writing the Poverty Eradication Plan.

  It is vital that this thrust of the aid programme is not merely continued in the emergency assistance Britain is now giving to the country, but that the floods and their aftermath are used as a new and important opportunity to deepen and expand capacity building.

  Does the DFID believe that its current plans for its emergency response pay sufficient attention to capacity building in linking relief to development? Can DFID provide examples to illustrate the continuing importance of this priority?

  There are a large number of international NGOs in Mozambique; but also a growing number of local NGOs and civil society organisations. What measures is DFID taking to ensure that the support it is giving to the flood, and especially in this context the channelling of resources to and through NGOs and civil society organisations, are consistent with its overall Mozambique aid programme which has been praised for the emphasis it has given to building local capacity?

Christian Aid

13 March 2000


 
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