Select Committee on International Development Minutes of Evidence


Examination of Witnesses (Questions 100-119)

MR GARETH THOMAS MP, MR JIM HARVEY AND MR JONATHAN LINGHAM

17 JUNE 2008

  Q100  Mr Singh: The problem is the more sophisticated it gets the more invidious it may become.

  Mr Harvey: Obviously there are sensitivities to countries seeing themselves identified on this list so WFP have asked us not to publicise exactly who is on the list. There are political sensitivities. We hear about them in the board, for example. Countries do not like to be labelled as being in the difficult box. Nevertheless, within that, I think the approach is perfectly appropriate and we do have confidence in it.

  Q101  Mr Singh: We are not going to meet MDG1 and MDG4, are we?

  Mr Thomas: I do not think I should accept your premise. I think it is about political will as to whether or not we meet MDG1. The government from the very top down, Gordon through to Alistair Darling and certainly Douglas Alexander are determined to do as much as we can to meet the Millennium Development Goals. That is going to require not just the UK playing its part but other rich nations and developing country governments too. We have to re-establish that partnership which came to the fore in 2005, rich countries providing more aid and developing country governments doing their bit to reduce corruption and focus on poverty etc. We know that some countries are off track to meet their commitments they made back in 2005 and we hope that 2008 will be the time when they start to get back on track. That is certainly the purpose of the Secretary General's meeting which we have championed that is going to take place on 25 September. I recognise you are being provocative but I do not accept that we should be quite as gloomy as you have suggested we might be; albeit there is a very substantial challenge there and we have to get back on track quickly.

  Q102  Hugh Bayley: I agree fundamentally that it is a matter of political will and primarily a matter of political will in countries of the south, where hunger is a problem. Whereas in Africa it is absolutely right to say that without poverty focus growth it would be impossible to meet the MDGs, it is clear that growth in itself does not answer the problem. If you look at south Asia, you have the highest proportion of children underweight anywhere in the world, almost half—45 %—of children being severely or moderately underweight. Why is that? What can we do with countries like India, which are vastly industrialised and where you have very strong and consistent growth, to get India to address this problem? Why in India, why in south Asia as a region, do you have a higher proportion of children underweight than even in Africa?

  Mr Thomas: I think there are the same responses and some of the same challenges that face India and China in Asia in terms of helping to tackle problems of underweight children and hunger. There is no doubt that India faces significant infrastructure challenges in terms of getting both goods to market and assistance to people in very rural communities too. On occasion it certainly faces challenges around the levels of productivity on its farms. Some of the research that we are helping to fund potentially will help Indian farmers increase their agricultural productivity.

  Mr Lingham: This is where we need to focus down very much on getting this international partnership sorted out and moved forward as quickly as possible. The vision that we have for this and the process over the next few weeks leading up to the MDG conference in September is really to try and get that international buy-in to an approach which fits very well with the task force programme that is being taken forward. We want this coordination mechanism very much focused down at country level. Governments themselves must take responsibility for helping their people, taking the lead on all this work. Up to now nutrition and agriculture have not really been able to muscle in as the budget cake has been sliced up. Every country, as you know, has a national plan for poverty reduction. The role of agriculture has very often been moved down because of donor pressure in education and health. Only recently have we started to put more emphasis on agriculture and nutrition. I think the World Bank report last year started this process almost of focusing attention on the importance of agriculture. If we can get agriculture properly reflected in national plans and properly funded as part of that, which does not necessarily mean pushing money through agriculture budgets—in Africa in particular, infrastructure needs to be improved. We talked a little bit about infrastructure in DR Congo and about the importance of having rural roads to get imports to farmers and produce to markets. In Africa, particularly as we look ahead to climate change, there needs to be a huge increase in investment in irrigated agriculture to prepare the continent for variable rainfall, not just storing water but protecting against floods. Floods have had quite a devastating impact in Mozambique recently and West Africa last year. All these investments need to be pushed ahead and ramped up into a national plan. That is the way we see the programme being taken forward to be able to get proper resources put into agriculture and food production.

  Q103  Hugh Bayley: Can I ask about the new face of hunger, urban hunger, in India specifically? Here is a near middle income country that has a space programme, that has a nuclear bomb and that has the most shocking urban poverty that I have seen anywhere in the world. I do not know India very well but I remember taking a train out of Delhi to Agra and seeing the quality of life in the slums. The train proceeds at five miles an hour. Why does it move so slowly? Because people are on the tracks defecating. Surely in India there has to be a social contract of some kind that redistributes money from the middle class to addressing problems of urban poverty as well as rural poverty?

  Mr Thomas: That is a question that frankly would be for you to pose directly to India's leaders themselves. It is certainly the case that poverty was a very significant factor in the last Indian general election, from what I understand. In terms of donor countries' responsibilities to India, India still remains the country where our biggest aid programme is in existence. We have started to shift our programme to some of the very poorest states, Andhra Pradesh and Bihar being examples, a shift that I encouraged when I had responsibility for our aid programme to India. That is something that fellow ministers are taking forward now. In that very direct way we are seeking to work with the Indian Government to provide ideas as well as finance in particular state governments to help make change happen. As Mr Lingham said, it is the developing country governments' own responsibility to lead the drive to tackle hunger and poverty in their country. Donors can help but the fundamental direction has to come from the sovereign government.

  Q104  Sir Robert Smith: In Darfur and southern Sudan, have you an overall picture of how much taxpayers' money was spent on food security there in 2007?

  Mr Harvey: I think we will have to research that one for you to give you a specific figure.[13]


  Q105 Sir Robert Smith: It goes through so many different pots it would be helpful to have some kind of breakdown.

  Mr Thomas: Do you want UK taxpayers' money or the international response?

  Q106  Sir Robert Smith: UK taxpayers.

  Mr Thomas: We will be able to tell you that for example in Sudan there is one of the pooled funds and there is also the CERF from which money has been made available and to which we contribute, so we will be able to give you the overall figures that we are providing, but you may not have it exactly as you would like.

  Q107  Sir Robert Smith: How do you monitor the effectiveness of this expenditure?

  Mr Thomas: We have staff based in Sudan whose prime responsibility is to monitor what happens on the ground We have direct relationships with not only the UN organisations such as the WFP but also the different NGOs who we fund. We have a series of opportunities to road test and evaluate the effectiveness of their own internal systems for making sure money gets to where it is supposed to get to.

  Q108  Sir Robert Smith: It is a very challenging environment and one of the WFP's biggest programmes is there. In the last four years has there been any impact on hunger from the WFP's programme that you can measure?

  Mr Thomas: Absolutely. They are keeping people alive who would not otherwise be alive. What we need is a political agreement and a conclusion to the fighting that is taking place if we are really going to get the levels of hunger and food shortages down in Darfur.

  Q109  Sir Robert Smith: In southern Sudan, where there is a relatively more peaceful environment, is there an exit strategy yet for WFP to hand over to the government?

  Mr Harvey: There has been established a Sudan Recovery Fund, an SRF, which is a pool funding mechanism to which the UK has pledged £70 million over the next two years. That is to fund the transition, if you like. In the particular terms of WFP, let me relate from my visit to Sudan in January this year. They are working very closely with the Government of South Sudan and are moving into what you might call a transition mentality, which is thinking through the hand over strategy as they carry out their programmes. School feeding has been integrated into the Government of South Sudan's education programmes. WFP has constructed 2,300 kilometres of road since 2005. It will take about four years but they are thinking about how to hand that over to the Government of South Sudan's transport ministry, which is a small building. The WFP team are already in that building and working with their Government of South Sudan counterparts. The whole way they are doing things is with that hand-over mentality. As a general point, hand-overs are something that the board has pressed very hard with WFP and they are specifically reflected in the new strategic plan. The thinking about hand-over is now thoroughly embedded.

  Q110  Sir Robert Smith: That is transferring the understanding and the knowledge they have built up.

  Mr Harvey: Absolutely. In the case of the road building programme, they are getting out of direct funding which DFID is part of into funding through the Multi-Donor Trust Fund, which is managed through the World Bank. It will take a little time. They estimate about four years but that is okay. There is a road map to transition and hand-over.

  Mr Thomas: I think your question relates to the dilemma that Mr Bruce has posed about whether WFP should be encouraged by the British government to not only focus on humanitarian need but also on development. Perhaps I should just clarify the answer I gave to you, Mr Bruce. We do think WFP has a role to play in the development context. We just do not think it should necessarily be the lead agency all the time, but we do think it should be the lead agency on the immediate humanitarian response. That is where we think it has a particular leadership role to play. To take the example of roads, if WFP were to stay in roads beyond dealing with the immediate logistic needs that came up, it would be moving into territory which the World Bank, the European Commission and the African Development Bank are all in, which arguably are better placed to lead on. That is why we say they have a role to play but their prime leadership role should be on the humanitarian response.

  Q111  John Bercow: Ghana, Ethiopia, Malawi, Rwanda, Tanzania, Uganda, Lesotho and Haiti are just some examples of countries that are likely to be hardest hit by the current crisis due to their high levels of food imports. What particular support do DFID and the WFP propose to offer to such countries?

  Mr Thomas: It will vary from country to country. In terms of Ghana, Uganda and Malawi for example, we have provided money directly through budget support so those governments can, through their poverty reduction strategies, work out what they need to do to respond to their own development needs, including needs around hunger. We work with those governments on the development of that poverty reduction strategy. Our funding helps them to fund collectively. You have talked about Ghana. We have a significant aid programme in Ghana that helps with issues around education for example, because clearly getting more children into school is part of the long term response that is necessary to rising food prices and the right response in all sorts of other countries. In Haiti we do not have a direct, bilateral programme but our core funding to FAO and the World Food Programme is in that way helping to make a response as those two UN organisations are responding both to the immediate needs of Haiti's people and the more medium term needs around access to seeds and fertilizer.

  Q112  John Bercow: I know what you told the Committee about budget support and poverty reduction strategies but specifically in respect of the latter I cannot help feeling that those strategies are for the medium and, in some cases, even the long term. I am just quizzical about it, wondering whether they are sufficiently flexible to respond to often quite short term but very sharp fluctuations and, for this purpose, increases in prices. Are you content that the host governments have within those strategies sufficient flexibility to adapt if there is an escalating crisis and a very sharp increase in food prices?

  Mr Thomas: We can always improve early warning systems in the countries themselves. This comes back to the point about making sure the international community is joined up in how it handles issues around hunger. As you have just heard from Mr Harvey, the World Food Programme does have a mapping exercise. It does have its own system of alerting the international community through its board members of particular problems in particular countries. We use their tools and their analysis as well as analysis from our own country staff to help us make an assessment of where particular humanitarian crises are potentially about to develop or are developing and what stage those humanitarian crises are at. Am I confident that every developing country's poverty reduction strategy is 100% flexible? I would not want to say that and I certainly think we need to do more to improve early warning systems, but there is a variety of tools available to us as donors to understand what is happening in particular countries. In most countries, that does enable us to respond quickly. Where we do not have an aid programme, it is more difficult and we do look to the leadership of the UN system in those examples.

  Q113  John Bercow: Does the WFP do enough to procure food locally in developing countries?

  Mr Thomas: It has got much, much better, so it is definitely on the right path. We want it to continue to look at doing even more of its procurement locally, but it is dramatically better than where it was, say, ten years ago.

  Q114  John Bercow: Have you personally been burning the midnight oil in readiness not only for today's session with us but to ensure that you are fully familiar with the evidence to us provided by the UK Forum for Agricultural Research and Development, whose view it is that DFID should use its influence within the WFP to ensure that local procurement of food aid is given a higher priority?

  Mr Thomas: I was certainly burning the midnight oil last night. I would share the analysis that we need to continue our work with WFP to get them to procure more food locally. There has been a significant improvement in the way WFP operate in this area and we welcome that, albeit we are going to continue to encourage Ms Sheeran to do still more.

  Q115  Chairman: It would be difficult to discuss food prices and security without discussing biofuels, winging around the discussion with a different emphasis. What is DFID's view of the impact of biofuels particularly on prices and to some extent security of supply? This was fudged in Rome. I think a report in The Times said, "The final draft declaration avoided a clear stance calling instead for in-depth studies of biofuels to ensure their production and use were sustainable".

  Mr Thomas: Bluntly, there was a significant disagreement in Rome and there is within the international community more generally about the level of contribution that biofuels should make. There are a number of advocates, not least President Lula of Brazil, who think that there is much to trumpet about the contribution biofuels can make. There are others who worry that biofuels can lead to crop substitution so production that could have been made available for food would instead be involved in the production of biofuels. Our own sense is somewhere in the middle. There clearly is a contribution that biofuels can make, particularly if they are produced from ethanol. There is a global sugar surplus at the moment so biofuels from sugar cane for example seem to us to have a significant contribution to make. Where we would have more concern in terms of food would be biofuels that were produced from maize. The concerns in this area have helped to drive the Gallagher review which the Department for Transport is undertaking. Our own sense is that we will probably need to see some sustainability guidelines effectively drawn up so that biofuels are being encouraged from areas like sugar cane rather than from areas which might have been used for the production of food.

  Q116  Chairman: I would think that is a reasonable response but in that context, given that it was mentioned in the Prime Minister's Food Summit, I appreciate it is not DFID's responsibility but is the target of 5.75% of biofuel in petrol and diesel by 2010 compatible with that sustainable supply? In other words, would sugar based or other similarly sustainable sources be sufficient in volume to deliver that and would the conclusion be that we should be getting out of maize and that would help the food price situation? Will the Americans do it?

  Mr Thomas: I apologise for giving this answer but, as you say, it is not our area. The Gallagher review is under way. We are expecting it to report shortly. Its conclusions will help us to inform our stance on food prices, particularly within the European context but also within the international community. I do not have a ready, definitive answer to give you at this stage. In terms of the American position, it is not clear what the Americans will do. I think the Americans were significant advocates for biofuels going forward. Whether they will be willing to adapt their position as the debate on biofuels unfolds is not clear.

  Q117  Chairman: If it is any consolation, a group of American congressmen who took part in a recent global seminar in Brazil all took the view that the American policy was unsustainable and they were from both parties.

  Mr Thomas: You will not expect me to comment other than to say that it is extremely interesting to hear that.

  Q118  Hugh Bayley: In April, DFID announced that it was over five years doubling its research budget for agriculture. What prompted the decision and what fields of agriculture—large, commercial farming, small scale farming, farming for export—will your research be focusing on particularly?

  Mr Lingham: A significant element is going into ramping up our investment through the CGIAR[14], the international agricultural research body, which comprises a number of institutions, that we are supporting. The research is going to be across the board. The focus will be on trying to get agricultural investment down to small scale farmers.

  Mr Thomas: To answer the first part of your question—what was our thinking in wanting to increase the research budget in general and the agricultural research budget in particular— Douglas Alexander since he has come in has wanted the department to refocus its efforts on, amongst other issues, economic growth. One of the key drivers of economic growth is agriculture in developing countries. Therefore, our sense was that we needed to look at how we could help increase agricultural productivity, particularly in Africa and also in south Asia.

  Q119  Hugh Bayley: One of the things that disincentivises poor farmers from increasing productivity and output are the risks they face if they have a surplus, in getting their crops to market and also the problems of investing in higher productivity, whether it is irrigation or fertilizers, because of the unpredictability of the climate. How can research help small and poor farmers overcome the barriers to increasing production?

  Mr Thomas: I do not think they can help solve lack of access to rural markets. That has to come in other ways. In that sense, they cannot solve problems around irrigation. We know the importance of both areas and we have to make sure that money is being made available through other pots to help make progress in that way. Where I suppose research can help in the particular questions you are asking is around the types of irrigation systems that you put into particular contexts. In terms of the more general question, we would look for other pots of money other than money for agricultural research to help drive investment in irrigation and rural roads.

  Mr Lingham: One of the investments we have just got approval for is £7.5 million for Bangladesh, to help develop new seed varieties which are much more adapted to withstanding increased levels of salinity and waterlogging. This is very important for wheat. The crop was just about wiped out last year by cyclones. Crops like that would come back much quicker.


13   Ev 46 Back

14   The Consultative Group for International Agricultural Research Back


 
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