Select Committee on Environmental Audit Minutes of Evidence


Examination of Witness (Questions 300-303)

MR ALEX SINGLETON

11 MAY 2006

  Q300  David Howarth: I was going to mention Suez. What was the basis of that political decision? If it is working and access is being provided surely that is popular and people will want it?

  Mr Singleton: It think it becomes ideological; political parties change, or there is a growing feeling that a multi-national company is coming in and running things and that is wrong. I am not necessarily a political scientist, so I cannot really comment on what causes people to do that. Why do people support Marxism? It is a strange thing, but people do.

  Q301  David Howarth: What I am trying to get at is that people must have perceived some failure in order for political actors to think that it would be a popular thing to get rid of them?

  Mr Singleton: I am told that in Bolivia a lot of people who protested against the private companies did not have water supplied by those private companies; they were people who were still receiving state-provided water. I guess there was a certain feeling that they were being left behind or they were not getting access to water. We are talking of only a small percentage of people who were part of the contract to be provided with water by the private sector. Therefore, if you do not have blanket provision across the whole country you can have problems.

  Q302  Chairman: What is the view of the Globalisation Institute of DFID's decision to drop conditionality from aid? Do you think it will make any practical difference?

  Mr Singleton: I am supportive. I believe that conditionality is a weak instrument to persuade governments to do good things. It causes a lot of resentment. One has to work in partnership with developing countries rather than try to force policies on them, even though they may be good ones. I do not believe that a forced good policy will work well in a country that does not want to do it. I support the move by DFID to say, "We will support your water privatisation if that is what you want to do. We think it is a good idea, but it is up to you. We will not try to impose it on you." I believe that that is the right approach.

  Q303  Chairman: Would you extend that approach to the removal of trade barriers? If the country did not wish to give up a trade barrier would you support it in that?

  Mr Singleton: I would say two things. I think that developing countries damage their economies by not removing trade barriers. The special and differential treatment at the World Trade Organisation actually makes a mockery of the whole idea of multilateral trade agreements, but principally I believe that countries should liberalise unilaterally. Over the past decade most of the world's liberalisation by countries like China has been unilateral; and India has also been liberalising unilaterally. I think that Europe should liberalise unilaterally. When one looks at what has happened at the Doha Round, there has been an obsessive requirement for developing countries also to liberalise at the same time as Europe. That is damaging to Europe's economy by holding back trade liberalisation in Europe, and we are not getting anywhere. I believe that the debate very much needs to move away from the requirement for other people to liberalise in order for us to do it. I support a move away from Peter Mandelson demanding liberalisation abroad. I think we should do it just because it is good for us and other countries will follow if they want to.

  Chairman: Thank you very much for your evidence this morning. It will be very useful in our deliberations.





 
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