CORRECTED TRANSCRIPT OF ORAL EVIDENCE To be published as HC 945-iii

House of COMMONS

MINUTES OF EVIDENCE

TAKEN BEFORE

International Development Committee

 

 

DFID Annual Report 2008

 

 

Thursday 30 October 2008

RT HON DOUGLAS ALEXANDER, MR ANDREW STEER and MR MARTIN DINHAM

Evidence heard in Public Questions 108 - 145

 

 

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Oral Evidence

Taken before the International Development Committee

on Thursday 30 October 2008

Members present

Malcolm Bruce, in the Chair

John Battle

Hugh Bayley

John Bercow

Mr Stephen Crabb

Sir Robert Smith

________________

Witnesses: Rt Hon Douglas Alexander MP, Secretary of State for International Development; Mr Martin Dinham, Director General International, and Mr Andrew Steer, Director General Policy and Research, Department for International Development, gave evidence.

Q108 Chairman: Good afternoon, Secretary of State. Thank you once again for coming in to give evidence relating to the Annual Report. You are also coming in again in a couple of weeks' time on the Annual Meetings of the World Bank and the IMF, which I think will raise a whole load of questions. We will try to keep them in the appropriate compartments. Can you introduce your team for the record?

Mr Alexander: Of course. It is a genuine pleasure to be here. Perhaps I could introduce Andrew Steer, who is our Director General for Policy and Research, who oversees our work in areas such as health, education, and food security. Alongside me also is Martin Dinham, who is our Director General International, who oversees our work on international institutions and donors and also areas such as aid effectiveness.

Q109 Chairman: Thank you very much. Obviously, we are particularly looking at the Call to Action the Prime Minister initiated along with others and we will discuss what was said and agreed at that meeting, but even since that meeting things have changed so we might need to see what updates there are. First of all, do you think that the response in real terms was satisfactory? If you do, what do you think in particular came out of that which you might regard as a major step forward given that the meeting had a clear purpose?

Mr Alexander: Perhaps just a word by way of context. The origin of this event was the first speech made on an international platform by our Prime Minister, a year ago in July, who at the United Nations, alongside Ban Ki-moon, declared a development emergency. It is greatly to Ban Ki-moon's credit that thereafter he picked up the idea of saying there was an opportunity to both refocus and re-galvanise the world's efforts around the MDGs[1] by calling a United Nations High Level Event, which turned out to be on 25 September. At the High Level Event on 25 September in the concluding plenary session the Secretary-General himself described it as an inspiring day for the United Nations. We would suggest that undoubtedly the outcome of the event surpassed even our expectations - and we had high expectations, albeit in very different circumstances in July 2007, when the idea was originally proposed. In specific terms, there were pledges which the United Nations estimated to be $16 billion worth of commitments made by different stakeholders to tackle poverty. We had identified particular areas where we were keen to see work taken forward and we saw progress on each of those areas. I would be happy, along with Andrew and Martin, to talk through those. In addition to the specific financial pledges, which we should remember were made as the global financial crisis was literally unfolding a few blocks away in New York----

Q110 Chairman: Can I just interrupt with a slightly cynical note? We have had pledges before which the United Kingdom has certainly been fulfilling, or certainly projecting to fulfil, but many of the countries that made pledges do not seem to have followed them up. A clear question is that it is easy to make pledges but how substantial are they?

Mr Alexander: Yes. On the morning of 25 September Bono, who was one of the attendees at the event, gave a long interview on CNN and he said, "Politicians like writing cheques but they are less keen to cash them," and we were very mindful of that in the preparation for the event. That being said, I would just add the final point I wanted to make and then I will deal with the specific point of pledges being made. We also wanted this to be a different kind of event, in the sense that we would confidently assert that this was the broadest ever coalition brought together to tackle global poverty, in the sense that this was not simply a governmental event, although more than 140 governments were in attendance and 50 heads of government or state attended the High Level Event, but we also saw representatives of global campaigns, like Bono, like Bob Geldof, and Elle Macpherson, but also a wide range of corporate CEOs for the first time directly involved in issues of poverty reduction and a wide range of NGOs as well. So it was a different type of event and it would be wrong to suggest that the pledges alone were the benchmark by which we judge success. That being said, we had looked long and hard at how best to ensure that we had a positive outcome from 25 September. Although it is by no means a perfect analogy, we had looked at the experience of 2005, which was the last time there had been a significant international effort to galvanise global opinion around the MDGs. We discerned that one of the successes of 2005 had been in some ways a much more benign domino effect than we risked with the financial crisis a few weeks ago, rather to put in place key stepping stones which led to more progressive outcomes as the months moved through 2005. We had first a discussion with the Development Ministers in the European Union and then a decision taken by the June European Council in 2005 in terms of a European Agenda For Action, moving on to the Gleneagles Summit and after the Gleneagles Summit the Millennium Review Summit in September 2005. We very much had that model in mind as we scoped the possibilities for this year to re-galvanise opinion. I would suggest that if you put together the European Agenda For Action that was agreed by the June European Council this year, you put in place the reaffirmation of commitments that had been agreed at Gleneagles that then emerged in the communiqué in Hokkaido for the G8, the new pledges that were made and the commitments made in New York at the High Level Event, allied to the progress that we made on aid effectiveness in Accra, and then anticipate the Doha Financing For Development Conference that will take place in just a few weeks, we have already taken steps to secure gains that might otherwise have been at risk given the global financial pressures. I would certainly say that we regard the progress that we have made internationally, of which the High Level Event is only one example, as having certainly focused international attention, obliged countries to make reaffirmations or new commitments which might otherwise not have been made in the present circumstances, and the challenge for all of us as an international community now of course is to deliver on the pledges that have been made, but the very specificity of the pledges that we were looking for countries to commit to in New York we judged to be one of the best guarantees to ensure that they actually do deliver on the pledges that were being made. Perhaps, Andrew, you could say a word in terms of some of the very specific pledges that we were privately canvassing other countries to engage upon and to ensure actually happened.

Mr Steer: I think the issue of money is what certainly gets the headlines but what we would rather do is start from the desired outcomes and increasingly focus on that. There was a very real effort here to ask the question "What is the problem and what are we trying to solve?" For example, there are 500 million people suffering acutely from malaria every year and one million deaths. What is reasonable to achieve? It is a halving of that number, and we can monitor those. Between here and there, there are 125 million bed nets that are required; there are affordable medicines for malaria that can be monitored. While the money is absolutely essential because there are clear coefficients that go from money to delivering on the ground, it is the delivery on the ground that we need to monitor from now on as much as it is on the money. What we tried to do is to start with what we are trying to do, work our way back to the numbers, see the shortfall and then try to catalyse some donors that have not been active before. For example, in education getting $500 million from Saudi Arabia; on agriculture, getting China to engage and put $30 million into private sector in malaria and so on.

Q111 Chairman: The MDG deadline is 2015, you have a review in 2010, which is five years from there. Most of them are off track and when you ask people what their projected dates are they are 10, 20, 30, 40, 50 years. Presumably some of the point of this was to say "Are we going to meet any of these? What would we need to do to give us a chance of meeting these and if we cannot meet them by 2015, when will we meet them?"

Mr Alexander: The parallel I would draw is, to take a topical example of the Glenrothes by‑election, when people say "Secretary of State, you are Election Coordinator. You have lost lots of by-elections recently. You are not going to win Glenrothes, are you?" you never plan a campaign on the basis of failure so you are absolutely sincere in saying "We are planning to win," certainly speaking on behalf of my own colleagues. Similarly, of course we recognize that a number of the MDGs are off track; of course we recognize that there are challenging international financial circumstances; but again, so resolute is our determination to see success on the MDGs that we want to plan for success, and we did. Over a long number of months - and officials within DFID and frankly across Whitehall deserve huge credit for this - we worked in a very disciplined way, not simply to say "What is the headline financial pledge?" but essentially to say "If you were to draw a Gantt chart of the MDGs and identify those areas where unless there is substantive new progress we will undoubtedly miss them by 2015," that was our starting point and really with that we then cajoled, persuaded, worked to fill in the gaps that existed in that spreadsheet in terms of "Clearly we have a problem with malaria. Who can we get to make specific measurable commitments to make sure that we close the bed net gap?" If we have a problem in terms of affordable drugs on malaria, how can we work with the Roll Back Malaria Coalition to make sure that we find the funding to do that? Martin, this was your daily business for months.

Mr Dinham: Indeed. To give an example, one of the building blocks for New York was the EU Agenda For Action which was agreed at the June Council. With that we did exactly as you say; we worked out what would be needed by area or sector by 2015 to get to the MDGs and what a milestone would be for 2010. For example, on education, getting 25 million children into school by 2010, and then what that would require in terms of additional resources. Then we pledged, as Europe, an amount of resources which would be our proportionate share of what the global requirement would be, but it was not just, as you pointed out earlier, an input issue. What we set out in that Agenda For Action, which we negotiated very hard on, was what outputs would come from this: so, numbers of children in school, numbers of teachers recruited, and then having fixed that as the EU position, we are now working with our colleagues in the EU to do a review and monitoring of that process through an annual report to make sure that what we said we were going to do both in terms of inputs and outcomes will happen. That is absolutely critical. It is part of this whole issue that we do not just look at the top end but look at what is going to happen.

Q112 Hugh Bayley: Has the Department yet made an estimate of what the impact of the global financial crisis will be on incomes, GDP, in developing countries and therefore on the MDGs? For instance, have you made an assessment of the extent to which remittances will fall, the extent to which income from trade will fall, the extent to which investment flows will fall country by country?

Mr Alexander: As with every other department of government, this is an unfolding picture but in that sense I am in a position where on a regular basis - it is usually coming to me once every ten days - I receive the latest assessment from our own Chief Economist within the Department, who is a recent hire for DFID but is an internationally renowned trade economist. In that sense, I have certainly found the indications that are being provided very helpful indeed. Developing countries are, of course, immediately affected in two major transmission channels, both in terms of capital flows and also in terms of trade. Lower growth in the OECD[2] countries will mean less demand for outputs from developing countries and remittances from OECD countries are also vulnerable to decrease. Private capital flows we anticipate will fall and shift back into the OECD areas and the dollar. We are, of course, in light of the emerging evidence of what has been a changing phenomenon, frankly, over recent months, trying to assess what the implications will be, not simply in terms of the 5.5 % growth that a number of African countries have been securing over the last five years but more broadly what the impact will be in terms of our own programmes, where up until now, for example, in sub-Saharan Africa, you have had the benign coming together of high commodity prices in recent years with relatively low rates of interest and available credit. It was, for example, one of the issues that I addressed directly in the Development Committee at the World Bank, where I was making a very clear plea for the Bank to assume what in many ways has been a traditional role for it, which is to undertake counter-cyclical lending, and in that sense we had been for some time looking at the capitalisation of the Bank's balance sheet to see what the stretch available for the Bank would be in terms of picking up some of the lending that in more benign international circumstances would have been picked up by the private sector.

Q113 Hugh Bayley: One of the global leaders - I think it might have been Robert Zoellick - made a statement a few weeks ago that the impact of the financial crisis could undo all the progress that has been made since 2000 to date in relation to the MDGs. It is a broad statement, the sort of thing you say in a speech, and you, rightly, I think, Secretary of State, made the point that it will vary from country to country, whether they are an oil importer or an oil exporter, whether they are a very poor African country or a thrusting Asian country, hoping to achieve middle income status shortly. It does seem to me, however, that in terms of planning how your Department responds to events beyond your control, beyond our Government's control, in order to keep the work to achieve the MDGs on track, you need to make not a broad-brush, macroeconomic prediction about percentages of global slowdown; you need to do an analysis country by country, and clearly, the sensible countries to start with would be those countries where our programmes are particularly big in relation to other donors and the GDP of the country as a whole. We are going to be meeting you in two or three weeks' time. I imagine you are doing some work with your economists of this kind, but we would welcome a statement, if possible in advance of the session on the Bank's Annual Meeting, to get a feel, an example from one or two countries, of what you think the impact will be. I just do not know how we respond and how great the impact will be. Until you see figures, it is difficult to know that.

Mr Alexander: I think I can assist the Committee on that. Let me start with a very specific example and then I will ask Andrew to speak about the vulnerability matrix we have already developed in terms of our key programmes. Just a fortnight ago I was in Ethiopia and took the opportunity to visit the Somali region, which is the area certainly OCHA[3] judges to be most vulnerable to malnutrition and hunger. I went there for that specific reason. Following that visit, which was not without its challenges, I had a two and a half-hour meeting with Prime Minister Meles in which we discussed the response of the Government of Ethiopia. It is directly relevant to your point given it is comfortably one of our largest programmes. It is a country which, in terms of classic poverty reduction, has made real and significant progress in recent years. It has attained sustainable and high levels of growth and the proportion of its budget spent on poverty reduction is higher than any other country in Africa. That being said, if you look at the constituent elements of the challenges it faces at the moment, there would be four elements I would probably identify: there is a global rise in food prices, albeit that we have seen falls in food prices in recent months but still significantly 30 to 40 % above levels of a year ago. Secondly, again, because Ethiopia is an oil importer, there are significant challenges in terms of the continuing high oil price, albeit that, again, the oil price at $60 a barrel at the moment has halved in the last four months. Thirdly, there is the conflict with the Ogaden National Liberation Front, which is an ongoing feature of that part of the world. Fourthly, there is climate change. In the course of the discussions I had with Prime Minister Meles I was very clear in saying, if you look at each of those, whether it be the existence of conflict, the existence of high international oil prices, the internationally high food price or the difficulties that we are now confronting in terms of climate change because there has been sustained drought for three years, all of those are classically externalities, not directly within the control of the government, and in that sense I think you are right to recognize that, in a country such as Ethiopia, the character of how the international externalities are impacting on poverty reduction will, frankly, be very different even from potentially near neighbours. As well as doing a great deal of work in individual countries to try and quantify and understand the impact of these changed international circumstances, we have also been doing work at the centre in terms of drawing up this matrix of vulnerability. Andrew, you might want to say a word about that.

Mr Steer: I think you are absolutely right. That is precisely what one needs to do, because different countries will be affected dramatically differently through all these channels the Secretary of State is talking about. There is a lot of work going on, obviously, within the international system. The World Bank has done a preliminary scoping and come up with 32 countries that are extremely vulnerable. Obviously, the earlier rather domestic view that the emerging economies would be to some extent insulated is turning out not to be true, and some of us have always believed that would be the case. The question is what happens to the low income countries, the PSA[4] countries, in particular. There we are just starting to do some work on that, looking at indicators across the board, different types of vulnerability. Obviously, countries that have higher reserves are less vulnerable than others; those that are more exposed to international financial flows; those that are more exposed as exporters of certain kinds of commodities, the prices might fall; countries that have high inflation are more vulnerable, and so on; countries that are heavily indebted are obviously more vulnerable. What we have done as a preliminary - literally in the last couple of days we have really been working hard on that - we have a list of our PSA countries and then we trace these different indicators and ask the question "Which are the countries that are most vulnerable?" Obviously we have to ground-truth that with all the analysis that is going on in the IMF and the World Bank and so on, and obviously with our country offices who are close to the ground. It is a very important point. Just in terms of the rough numbers, if you think of Africa, official development assistance to Africa is about $50 billion a year. Capital inflows to Africa are almost exactly $50 billion as well if you add portfolio, foreign direct investment and debt. You have to assume that is going to fall quite a bit. It could well be $25 billion; let us say it halves; that is a $25 billion decline. That is very serious money for Africa. In terms of the growth rates that are being estimated, Africa last year grew at 6.5 %. Nobody knows what will happen but the ballpark estimate is that one should assume a two percentage point decline in that for 2009-2010. That means that GDP in Africa will fall by about $40 billion in 2010 compared to what was expected. If you start adding those numbers up, clearly there is a very serious issue, and that is why we have to do exactly the analysis you talk about.

Q114 Hugh Bayley: If I may ask one last question, how quickly will DFID's priorities in spend change to address new circumstances? It is difficult, of course, where you make forward pledges but if you find that six of the countries on your list are particularly vulnerable and are going to be especially hard hit, and you calculate that there are some aid programmes which could mitigate the effect, would you shift more resources to those countries and, if so, how quickly could you do so?

Mr Alexander: It is not always an issue of quantum as much as where money is directed. Again, to take a relevant example which I have been in discussions about in recent days, there is much discussion at the moment in terms of Pakistan and potential requirements for an IMF loan given difficulties in terms of balance of payments. We spend significant sums, as you know, in Pakistan and we are already considering the extent to which, given the potential for cuts in public expenditure in Pakistan - there could be decisions reached by the government in Pakistan - how best our programmes can help insulate the poorest in particular from the effects that would otherwise be felt. One of the points certainly Bob Zoellick drew out in that speech on markets and multilateralism was the extent to which, notwithstanding the fact that a number of these countries are not as directly linked into the global financial core as other more advanced countries, the impact on the poor in those countries is even more severe. There is not a direct correlation between engagement in the global financial system and impact on the population. You can still be relatively remote from the global financial system but, because you do not have safety net programmes, you do not have a level of resilience in terms of either income or society, the effects on the poor can be harder there than for everybody else. Again, it has to be judged on a country by country basis but we are looking at our programmes. I would also emphasise that we are trying to take a more strategic view and say what on an international level needs to be done to best minimise the impact of both the effects on the global economy and the global financial system on poorer countries. One element of that is to ensure that the aid flows that were anticipated continue to be delivered, albeit in different economic circumstances, and are not curtailed as donor budgets get squeezed. Secondly, how do we best - and this is directly your point - assist countries to adjust to changed international conditions, and particularly the impact on the poor? Thirdly, given the expectation of this meeting that is due to take place in Washington on 15 November, how do we ensure that the voice of developing countries is heard as consideration is given to what a refashioned international financial architecture could look like, because we want to avoid a position whereby the design and effect of this is limited to those advanced countries. In that sense, we welcome the fact that the forum is going to be the G20, so there will be not simply donor countries represented. Also, candidly, the terms of the invitation letter that has been issued by President Bush very explicitly, in the penultimate paragraph of the letter, identifies the needs of developing countries, which we welcome and we see as a real opportunity to try and shape the conversation on 15 November. In that sense, I and others within the Department are already very heavily engaged with the Treasury because our lead ministers at that meeting will be the Prime Minister and the Chancellor. Fourthly, we are already working with colleagues across government to make sure that we keep markets open and scope for imports from developing countries in advanced and developing countries themselves, because if we were to see a wave of protectionism follow the impact of the present global financial crisis, again, we clearly judge that there would be very significant damage done not simply to global growth prospects but also in particular to some of the poorer countries. Martin, you have been working on this area daily.

Mr Dinham: Yes. Just to add to that, the international financial institutions, particularly the World Bank and the IMF, really in a sense were set up exactly to be able to be on the front foot to deliver for us in these kinds of situations. We have been working very closely, particularly with the Bank, pressing it and urging it to do the maximum to deal with these situations. For example, it is entirely possible for the Bank to significantly increase its level of lending. At the moment it lends about $13.5 billion a year. Because it is very heavily capitalised, it could actually up to double that amount to about $27 billion a year. This was suggested at the Development Committee. There is demand for that now whereas the private sector money is drying up.. The International Finance Corporation, one of the arms of the World Bank, is now coming forward with a proposal for a fund to help recapitalise banks in developing countries. It is important for the Bank, for example, to work very closely with the IMF in a number of these countries to ensure that they have coordinated advice as well as finance, and to look for innovative financing mechanisms which are appropriate to these kinds of spikes and shocks. There is a whole range of issues which we are working very closely on with the Bank and indeed the Fund at the moment.

Mr Alexander: One other point I would add quickly on the Bank - and I am conscious that I will be before you again in a couple of weeks' time - is that we take great heart from the speedy response of the Bank to the global food crisis in the sense that the President, Bob Zoellick, I think deserves real credit for the extent to which he has been keen to ensure that the Bank plays an active and constructive role in partnership with WFP,[5] Josette Sheeran and others, but the fact that resources have been yielded up - I think the Bank package was $1.2 billion - we take as being a positive sign, and of course, Bob will be at the meeting taking place on 15 November and was represented at the G7 Finance Ministers' meeting that happened at the White House simultaneously with the Annual Meeting, so in that sense we are comfortable that both the Bank and the Fund are taking an active role in these discussions and we certainly welcome that.

Q115 John Battle: One of the worrying things with a global media is that we seem to have one wave of a crisis that overwhelms the next. We were talking about the food price crisis, then the oil crisis, now the financial crisis. In response to Martin's last point, will the debt reduction initiative that has been on the table for some years and is still being worked through be reconciled with the refinancing initiatives or will the debt reduction work be put on the back-burner while we look at refinancing, which means we are not just managing the situation now but reducing the debts, which was the original target?

Mr Dinham: I think that is an extremely good point. That is an issue that we need, with the IFIs,[6] to be focusing on. We can come back to you on that but it is absolutely critical.

Q116 Chairman: It is fair to point out that the consequence of the latest crisis is that it has actually diminished the food and oil crisis. That is not exactly good news but it is not totally bad. You mentioned Ethiopian, Secretary of State, which you visited just recently. You said there in the light of your concerns about starving children being hidden from your visit, "In light of our continued concerns, I said I was now not prepared to make a multi-annual commitment." Can you just clarify what the situation is in relation to Ethiopia and how that fits - and I understand the reasoning - with the statement you just made about the need to maintain long-term commitment?

Mr Alexander: Yes, certainly. I had, as I say, a two and a half-hour very constructive meeting with Prime Minister Meles in which actually there was at least as much focus on the issue of the new NGO law that was under contemplation as the discussions which afterwards both the Times and the Telegraph focused on. I had both Times and Telegraph reporters with me when we visited the Somali region, and I think they judged that their readers were perhaps more interested in whether malnourished children had been removed from hospital than the intricacies of the NGO law, but we were in policy terms concerned both by the adequacy and effectiveness of the Government of Ethiopia's response to the humanitarian challenge in the Somali region and also what the immediate and long-term impact will be of the civil society law that is under discussion and is making progress through the government and ultimately through the Ethiopian Parliament. In the course of that conversation with Prime Minister Meles I made very clear that we allocate resources within the Department for International Development on the basis of clear evidence of effectiveness in terms of poverty reduction, and to that extent we have seen real and decisive progress being made by the Government of Ethiopia in recent years. If you look at progress on the MDGs that we have been discussing, Ethiopia scores very highly. Secondly, we of course look at issues of public financial management and, again, Ethiopia is one of the significantly less corrupt countries in sub-Saharan Africa. Thirdly, there is an issue in terms of human rights. We have not previously been in a position, within certainly my recollection, in which you could have a country which is making clear and discernible progress in terms of poverty reduction, clear and discernible progress in terms of public financial management but, at least in the eyes of a number of NGOs, is at risk of trending in the wrong direction in relation to human rights. It was that issue that I was exploring with Prime Minister Meles. The point that I was making in terms of the multi-annual commitment was that it would have been open to me, given the spending review settlement that we have, at that point to say "This is the commitment I am going to make over the next three years working with the Government of Ethiopia systems," recognizing of course that my predecessor, Hilary Benn, after previous events within Ethiopia had made a judgement to establish a Protection of Basic Services system, which is a different instrument than classic budget support within Ethiopia. I explained to Prime Minister Meles that my intention was not, as was reported accurately in the newspapers, to make a public announcement of support at that stage but instead to be in a position where we would continue the dialogue with the Government of Ethiopia both on the issue of the adequacy of the response to the humanitarian situation in the south and also the continuing concerns being expressed to us in terms of the NGO and the civil society law. There was a clear understanding on both of these issues from Prime Minister Meles. One particular issue which was not picked up in the newspapers but, again, I took to be a sign of genuine intent on the part of the Prime Minister Meles was that I made the point to him "Listen, if you have all of these factors, if you have had drought for the last three years, which can at least in contemplation be suggested to be a function of climate change, if you have high oil prices, you have high food prices and you have conflict, it need not be judged a matter of shame or embarrassment for you to be suffering vulnerability to hunger because many of these are not directly within your control. If the concern is that 25 years ago Ethiopia was somehow judged to be a byword for famine and hunger, there are very different circumstances in Ethiopia today and, frankly, the developed countries and its media have moved on in their understanding for example of climate change than was the case 25 years ago when Michael Buerk was here." I said "I simply cannot understand why in these circumstances you would be resistant to undertaking a comprehensive malnutrition survey within the Somali region. My recollection is that there have been 18 such surveys undertaken in Darfur, there have been 18 surveys of a similar type undertaken in Somalia. How can it possibly assist your cause internationally to appear as a government to be resistant to undertaking a nutrition survey working with established international bodies in the Somali region?" He frankly accepted that argument, and one of the undertakings which I repeated to the press but was not reported was that he accepted at the conclusion of the meeting that he would now facilitate immediately a nutrition study being undertaken so that we can have some verifiable and quantifiable numbers against which to judge the humanitarian effort being undertaken in the south. Similarly, in relation to the passage of the NGO law, he explained to me that the P3, as it is called, our ambassador along with a couple of others, the French and American ambassadors, had been in to see the Prime Minister a few days before my arrival and, even since the draft that they had discussed with him and expressed the concerns of major international NGOs like Oxfam and Save The Children, there had been a further discussion at the Cabinet of the Government of Ethiopia which had taken place on the morning that I visited and he assured me that the document that had been agreed by the Cabinet that morning was effectively a fourth version of the NGO law rather than the third version which had been the basis on which our ambassadors had previously been in to make representations and, when I pressed him, that there would undoubtedly be further opportunities for international NGOs like Oxfam and Save The Children to be able to address their concerns when the matter moved from the Government of Ethiopia to the Parliament of Ethiopia, which is due to happen in the coming weeks. I hope that both on the issue of the nutrition study and on the issue of the further opportunity for engagement by international NGOs in the development of the CSO[7] law, the evidence I have given you today can assure you that it was a very serious and at times forthright exchange but actually quite a constructive one, and I would hope that people would understand both within the Committee and beyond the Committee that we regard it as part of our job as well as handing over cheques to governments for protection of basic services to be advocating for both full humanitarian space and adequate humanitarian response and respect for human rights. In that sense, I made no peremptory or arbitrary undertakings in terms of what we would or would not do with our future programme. We had a very forthright and useful conversation, at the conclusion of which I explained that we wanted both to keep under review the emerging response in the Somali region, the practical effect of the CSO law if it is ultimately passed by the Parliament of Ethiopia, and that this was a matter which we would want to discuss not least with an incoming administration in the United States because the Americans have taken a very firm view on the CSO law as well. On that basis, I very much regard the meeting that I had with Prime Minister Meles as being part of an ongoing discussion.

Q117 Chairman: Are you able to give any indication of timescale? You were going to make an announcement.

Mr Alexander: Because we have indicative numbers which we use for planning purposes, once we have a CSR[8] envelope - as you would imagine, we develop that for each of our countries - it is open to us but there is no deadline for us to at any point put into the public domain planning assumptions that we have as firm commitments. As I say, I have made clear that we want to track what progress is being made on both of those issues, discuss it with European partners and with the incoming US administration, and in the meantime we will carry on with some of the very successful work that I witnessed in terms of production of safety nets, education, health and the other programmes that I visited during the time I was there.

Q118 Mr Crabb: Firstly, I am probably not alone on the Committee in being very encouraged by your comments about the importance of human rights being mainstreamed to what you are trying to do, not just handing out cheques in terms of development assistance. Coming back to the issue of the money, how do we square your very positive opening comments about the need for funding pledges or reaffirmed pledges for funding at the High Level Event in New York with reports we have been seeing in the last two weeks or so that, for example, some of our larger European partners -Italy, France, Spain - announcing that they are going to either freeze or cut their aid budgets in response to the financial crisis? Are you not concerned that the likelihood is that for the next 12 months or two years the trend will be for donor countries to tighten their aid budgets rather than give more?

Mr Alexander: Of course, our challenge is both to meet our obligations as the United Kingdom and to work effectively internationally to convince others to meet the commitments that they have made. I anticipated that I might be asked the question specifically in relation to the United Kingdom and I recollected the quote which I have in front of me, which the Prime Minister himself stated on 17October. This is, of course, after the immediate financial crisis. He stated: "By 2013 the United Kingdom Government will reach our target of spending 0.7 % of national income on aid. We have clearly laid out our plans to reach this goal and we are encouraging our partners to do likewise." That is the clearest and most authoritative statement of British Government policy on this issue. That is why we have worked hard to concretise and make specific the commitments that other European partners are making and anticipating the fact that there would be concern as to whether pledges are being made. That is why we have worked to put other governments in a position where they are obliged to publicly reaffirm the commitments that they have made, whether those be G8 commitments reaffirmed in Hokkaido, and again, our Sherpas and our ministers were working hard to make sure that was part of the communiqué in Hokkaido, or indeed the European Agenda For Action. In that sense we are already working to see what we can do at the Doha Financing For Development Conference to again lock in and reaffirm the commitments countries have made in terms of their aid budgets.

Mr Dinham: Absolutely, and I think that was part of the very strong rationale for the EU Agenda For Action document and the work going into that, which actually underlined what the implications were of the 0.56% commitment by 2010 by Europe and actually concretise that in detailed allocations to sectors as well as an overall figure. Indeed, with the UN High Level Event one of the key purposes was to secure real commitments from people which would carry them forward towards those overall promises that we have made. That has been our key intention and, as the Secretary of State has said, Doha, which was going to be a really important meeting, becomes an essential meeting for reaffirming the commitments on ODA[9] flows because, without that, poor countries are going to be suffering even greater hardship.

Q119 Mr Crabb: In terms of what we are doing within the UK, given the discussion that we were having a few moments ago about the impact of the financial crisis on emerging markets in the poorest countries, do you see any scope for accelerating the progress that we are making to reaching 0.7 % of GNI, to see that there is a need and a scope to increase the assistance we are giving?

Mr Alexander: I think, with respect to the question you have just asked, our most pressing challenge is to ensure that not simply the United Kingdom but other countries as well meet their commitments, whether it be the $50 billion commitment made at Gleneagles, whether it be the 0.7 % commitment or the 0.56 on the way to 0.7 %. If we were simply to ensure that those other major partners with whom we work match the United Kingdom in terms of the resolution and determination notwithstanding the challenges that we face to hold to the promises we have made, we believe that would mark a significant step forward. This also tracks back to the point I made earlier about the UN High Level Event. One of the reasons that we worked so hard to ensure that there was a broad coalition, not simply heads of government - with great respect to heads of government - in New York on 25 September was that we want to broaden the coalition of people and organisations, ensuring that development does not suffer significantly as a consequence of a failure to understand how essential a continuing focus on development will be as one of the responses to the global economic downturn that we are now facing.

Q120 Mr Crabb: You are probably unique amongst your Cabinet colleagues in enjoying double-digit percentage increases in your budget in the next few years. Many of the other Whitehall departments are responsible for very real public services that matter to people in this country and they are going through some extremely tight spending round decisions at the moment. How concerned are you that public support here within the UK for this continuous ramping up of our aid budget will be sustained at a time when people are losing their jobs, losing their houses and starting to endure a level of economic pain we have not seen in this country for quite some time?

Mr Alexander: I shared a public platform, as the Chair of the Committee knows, with Simon Maxwell of ODI,[10] earlier this week, and he spoke graphically about this being a moment of real danger for development, and I am far from complacent in terms of the hard-won consensus that has been built in recent years. At the same time - and Presbyterian ministers' sons are not known for their natural good cheer and optimism - I have an uncharacteristic optimism on this particular point. If you take my constituents, who are genuinely concerned at the moment as the impact of higher gas bills, higher electricity bills, the cost of filling the car and the cost of buying the weekly shopping impact on household budgets, if you look at the experience of those constituents over the last six or seven months, on one level it has been a unique example of the extent to which we now live in a genuinely interdependent world, because if you take each of those issues - food, fuel or finance - by any reckoning, no country can adequately respond to those challenges by saying "We are going to pull up the drawbridge. We are going to have uniquely national solutions." In that sense I think - and this places a heavy burden of responsibility on all of us as politicians - if we find the right public language, that recognizes the real concerns that people here in the United Kingdom feel about their living standards, about the cost of petrol, about the cost of food and about the cost of their general household budgets, I do believe there is an opportunity for people to understand the extent to which recent events remind us that we have a genuinely shared interest in delivering a world that is less unequal, more peaceful and more sustainable than the world of recent decades. In that sense, that is far from a given. It will require a quality of argument and a seriousness of intent and repetition that will challenge us all, but I do believe that the circumstances are there where, if we get right the public discussion that we have, people can come to an even clearer understanding of the extent to which the impact of a drought in Australia now directly impacts on the price of bread in Paisley, the extent to which the change in the oil price will directly impact on the lives of all of our constituents. Given that reality of interdependence, I think the opportunity to make the case for development spending being an investment in our shared future is actually quite strong.

Q121 John Bercow: I very much welcome what you have just said, Secretary of State, and I entirely understand the point about interdependence and the sense that we are doing what we are doing, or the Government is doing what it is doing, aided and abetted by others, not merely out of some spirit of altruism but in the collective interest of the world as a whole. However, even if one leaves that point aside and even if one does think of it substantially in terms of a duty to those less fortunate, I confess that I think there is good reason to be fairly optimistic because, frankly, the growth of the 24-hour media, and in particular the graphic physical depiction on our screens of people enduring grinding poverty, are such that I would hope in all sorts of different constituencies, Labour, Conservative, middle-class and working-class, there would be a sense that, whatever our privations, they are minimal and insignificant by comparison with those of the people whom it is our business to help, and you should help most those who have least. On the subject of seeking to extract from other governments commitments to stick to what they said they would do, and recognizing that you cannot possibly be expected to be the financier of last resort if other people renege on their commitments, how confident are you that you are going to get those commitments? Secondly, leaving aside the bird's eye view, if you look at the worm's eye level, and individual, in some cases multilateral programmes in which we are engaged as taxpayers, are you at all concerned that some of those programmes might suffer even though we have retained our commitment to them and perhaps increased ours because other people have, frankly, copped out?

Mr Alexander: Let me try and deal with each of your points in turn. I think you were right to pull me up in recognizing that I think there are two parallel arguments we need to make for development in a downturn. One is to see we have a shared interest, and to that extent, whether it be the benign consequences of an interdependent world, with unprecedented opportunities for travel, for sharing of ideas and mobility of capital, there are also very dangerous consequences, whether it be disease, terrorism, a script with which all of us in this room would be familiar, but there is undoubtedly an argument around interdependence. It is important however not to lose sight of the fact that the moral case for development expenditure endures. If you look at the latest World Bank figures, published only about five weeks ago, the estimated number of people vulnerable to hunger are not down but up, inevitably, as a consequence of the global food price rises, from 850 million to 967 million people. Because the cost of food has risen does not change the value of a human life. If we are called upon to act when there are 850 million people going to bed tonight vulnerable to hunger, if there are 967 million people, now is the time to re-dedicate ourselves to that moral obligation. In that sense, I do think that - and I would put all of us in this category around this room - we need to be committed to the interests of effective development expenditure. We should not be shy in these circumstances from continuing to make the moral case as well as the shared interest, interdependence case. On the second point you make in terms of the United Kingdom Government cannot be the financier of last resort, of course that is true. There is always a tension and a balance here because there is always the opportunity to accentuate the extent to which Britain is meeting its commitments at the expense of other governments and say "Well, look how well we are doing relative to others." Frankly, as all of us as practising politicians would know, that perhaps is not the most astute strategy if you are trying to simultaneously influence those governments to make their pledges. You sometimes, in discussions like this, get into a cat and mouse exchange where we say "Will you name which governments are not meeting their commitments?" and you say "There is a number of partners" and we all know the script. That being said, we have thought a lot about this and continue to think a lot about it. One of the approaches we have taken is, firstly, to ask how we create those moments - and that is in part what we were trying to do over the last six months - to replicate the focus and scrutiny on the conduct of other governments as well as, to be fair, our own, which will oblige other governments to recognize the extent to which they are or are not meeting their commitments. The very fact that you had a range of celebrities in New York undoubtedly attracted a degree of media attention to the event and to the MDGs that would not have been the case had it simply been a heads of government meeting in New York for a standard United Nations meeting. We thought long and hard in terms of the structures and the events that we could put in place to create those moments of evaluation both for the public and also for the governments themselves. In addition to that, we are consciously working at the moment to ensure that the structure of the global architecture, in particular in relation to financing but more broadly thereafter in terms of the global multilateral institutions, is better equipped to meet the development challenge of the coming century given that they were broadly devised 60 years ago at the time of Bretton Woods and the establishment of the United Nations. We are trying strategically to anticipate what will be the structures that will allow other governments with confidence to make their commitments. Thirdly - and this was a very large focus of our work in Accra in September - it is to close the door on the argument that development expenditure would be fine but the money is somehow being wasted because it is being spent ineffectively. One of the reasons that I worked so hard in Accra to deliver an ambitious communiqué rather than the communiqué that greeted me when I stepped off the plane was because I fully anticipated even in September that the issue of the effectiveness of international expenditures was going to grow rather than diminish in the years ahead. In that sense, those of us who want to see continued commitment to significant public resources being spent on aid need to properly address that concern. Beyond that, I would also say that the credibility of our own Prime Minister frankly helps a great deal. It was the first occasion I had travelled internationally with the Prime Minister to a major international meeting since he became Prime Minister. If I just tell you that at the Class of 2015 event, which was the event brought together by the Global Campaign for Education to refocus attention on the number of kids who are still missing the target in terms of having a school to go to, Kevin Rudd, the relatively new Prime Minister of Australia, said, "I have now come to realise that there is a kind of established pattern at the start of these meetings, which is that everybody pays tribute to Gordon Brown." He said, "I don't have difficulty saying that because, quite candidly, I have known Gordon for many years before he became Prime Minister and before I became Prime Minister and, quite simply, he has been the moral conscience of the G8 for a decade." In that sense, I think it is hard to overstate the personal credibility that Gordon, as an individual, brings to the work that all of us engage in to try and persuade other international partners, either in Europe or internationally, to meet their pledges. The final point that I would make, which is specific to Accra but I think of general reference, was that the reason we were able, in the dying hours of the negotiations in Accra, to get very significant movement, which I could not with any confidence have been assured of prior to the meeting, was because we had a common European position. So essentially, when I was in the room negotiating with principally the Americans and Japanese but others, along with the French presidency, I was not spending my time looking over my shoulder saying, "How can I deliver the Europeans to an ambitious outcome?" It was the fact that we had quite an ambitious European common position which meant that on the three occasions that the Council of Ministers met almost in permanent session during those hours when we were resisting the communiqué that was offered to Ministers and saying "No, we can do better and must go further," I was able to appeal to a European sentiment saying, "I am not asking you to go any further than we have already agreed." That was an extraordinarily powerful thing, partly because it freed us up to negotiate proactively rather than to be discussing amongst ourselves. It brought together the Commission and the Council of Ministers because Louis Michel very graphically at the meeting said, "We face a choice here in Accra. We have always been big players. The question is, is Europe going to be a big player in these negotiations?" In that sense, I have made lots of speeches as a former Minister of Europe about the importance of a common European voice in international affairs. I lived that reality in Accra because, had we not had the strength of 27 behind us, notwithstanding the sincerity of our belief, notwithstanding the credibility of our Government, notwithstanding the urgency with which we would have tried to negotiate, I doubt we would have been anything like as effective.

John Bercow: Secretary of State, can I tell you that your incisive rebuke to the most blinkered Euro-scepticism is duly noted. I will circulate it amongst colleagues. Thank you for those answers, which were extremely helpful.

Chairman: We are not proceeding very quickly through the questions, interesting as that exchange is.

Q122 Sir Robert Smith: The Business Call to Action event in May 2008, according to your website, was aimed to inspire companies to commit to concrete transformative initiatives that used their core business and to access up-to-the-minute information, money and business expertise as well as create new business and employment opportunities. Out of that High Level Event what sort of private sector initiatives were agreed?

Mr Alexander: Let me give you three very specific examples. One is Yara International, who are a Norwegian-based fertiliser supplier, who are now making, as a result of pledges made at the High Level Event, a $60 million investment to build a fertiliser terminal in two key African ports in Tanzania and Mozambique to significantly improve port efficiencies for agricultural inputs, crucial for small-scale farmers in particular. A second one is Map International, who are a financial infrastructure technology provider. When I asked my officials at the time of the meeting "What does that mean?", they provide electronic banking facilities to 2 million people in Uganda. Basically, what they are going to do is to provide facilities for an additional 2 million people within Uganda, as a result of a pledge made there, fast, easy and secure access to banking services, which will greatly reduce the time and effort required to make and receive payments, generate substantial efficiencies for farmers and others within the country. The third example, which I was personally attending at the meeting of, was Eriksson, who are establishing an Innovation Centre that will develop mobile applications for phones to focus on health, education, agriculture and small businesses in sub-Saharan Africa. They will establish three hubs in Kenya, Nigeria and South Africa and they will initially concentrate on applications tailored to the needs of 400,000 people in these countries. There are about 27 individual companies who have now made pledges but those were three very specific pledges that were made at the Call to Action in September.

Q123 Sir Robert Smith: What are the next steps for the Business Call to Action?

Mr Alexander: Essentially, what we have formed now is a consortium which involves a limited but continuing role for not only the UK Government but the International Business Leaders Forum, the Clinton Global Initiative, the World Economic Forum, the UNDP,[11] who have in many ways been the body to whom we have looked for confirmation as to the development gains from the proposals that we have received from these companies. That consortium will continue to take forward its work. The next significant event, we would anticipate, will take place in Davos at the end of January, where there will be a further opportunity to review progress that has been made. We would not anticipate that the consortium in the immediate months between now and Davos will be looking to secure lots of additional new pledges, although, of course, if people want to come forward with serious propositions they will be considered, but a big part of the work will now be in taking forward, monitoring and supporting the announcements that have been made whether prior to the event or at the event in September.

Q124 Sir Robert Smith: How do you see, from when those commitments were made in a different economic world, private sector companies actually being able to deliver through this current financial crisis?

Mr Alexander: Fortunately for myself, I asked this question ahead of coming to the committee. We have had no indication from any of the 27 companies that the commitments that they have made have been compromised by the economic downturn now, or not across the balance sheets and business models of each of these companies, but there has been no indication whatsoever of any of the companies drawing back from the commitments that they have made in recent months.

Q125 Sir Robert Smith: Presumably the recruitment of new companies could be somewhat less?

Mr Alexander: Listen, I cannot predict, because, frankly, we do not have in our own mind a target number that we were working towards. We have made a huge effort, both around the event that we hosted here in London in May around the launch of the Business Call to Action and then for another moment in New York on 25 September; and there was, inevitably, after those two spurts to the line a necessary changing of the consortium in the sense that new partners have emerged and we want to get this onto a sustainable basis, but we were anticipating even before the financial events of September a period of immediate consolidation after the specific meeting in May and the specific events in September.

Mr Dinham: I think what was interesting particularly about the event in May but carried forward to September was the amount of interest and almost competition that was going on between private sector companies really attracted by this proposition. This is not us going to them and asking for charity or philanthropic contributions but something which actually made sense with their bottom line, which was making a huge contribution to employment and other services particularly in Africa. There was a real sense of excitement from the CEOs that were there, and I think that will carry forward quite a long way and I think all the indications in New York were that that sense of progress was being taken forward.

Q126 Sir Robert Smith: A related thing to do with the private sector. I understand that a silver lining of past complaints about Africa is that the African banking system has been very conservative and very highly regulated, but the consequence of that is that they were not involved in sub-prime markets and that sort of thing. Does that give some confidence that maybe, at least when it comes to going forward, that the African banking system may be better placed to cope?

Mr Alexander: I think it is quite difficult to talk in generic terms about the African banking system. I think there is probably an easy distinction. On the one hand you have quite an advanced banking system in South Africa, you have, again, a quite large and powerful banking system in Nigeria and then you have a third category, which is banking systems which are often much less connected to the international financial system than would be the case in other more developed markets. I certainly would not want to sit here today and, hand on heart, say there will be no difficulties being visited upon the African banks or the African countries that I have mentioned, but you are certainly right in recognising that the fact that they are not themselves large enough or connected enough in many countries to have already felt the impact of the global financial crisis offers some grounds for optimism that they will be able to undertake the work they have been undertaking in recent years. On the other hand, I would caution against blanket predictions at this stage because there may well be individual institutions that have particular problems related to the commercial decisions they are taking.

Mr Steer: I think that is absolutely right. There is no question; the banks there are just not as integrated and so there is opportunity; there are grounds for hope. Linking that to your previous question, I think the trick in the coming year is going to be to monitor these 27 companies to make absolutely sure that our hypothesis of investing in Africa actually will still be attractive for these companies. If you go down the list it is remarkable - Microsoft, Pepsico, SABMiller, the Standard Chartered, Sumitomo - they are all doing things, all 27 of them, and about two-thirds of them are in Africa, that actually are good for their long-term development; and Africa is still going to be, we hope and pray, growing at a rate that is significantly higher than has been the traditional rate. So if it is now 6.5 %, let us imagine it comes down to 4.5 - it is still going to be attractive for these companies. The trick is to monitor whether or not these companies are going to have access to enough capital to make these investments, but actually the size of these investments in the initial part is not going to be so large. So we are going to work very hard to monitor precisely that.

Q127 Sir Robert Smith: So on a scale it may not be a big thing, but if it sets an example and encourages others and shows the way, then it is an important start.

Mr Steer: That is what this is all about. There are some investments that are fabulous that, quite frankly, we do not need to highlight because everybody knows them, there is a lot that is not attractive. There is a zone in the middle which is now growing because the quality of policy-making in Africa over the last ten years has gradually been improving. The risk premium has stayed reasonably high. Literally in the last couple of years you are starting to see investors that are saying, "Wait a minute. The rate of return is good, the risk premium has shrunk a lot" - the real risk as opposed to the risk premium - "because of quality of policy." We were talking to the Secretary of State a couple of days ago about this. He was saying the trick now is to in some ways do what the countries did in the East Asian crisis. Africa now needs more than ever to demonstrate transparency and governance reform. Why? Because that will strengthen even more and make this investment more likely to continue.

Mr Alexander: Can I add one brief point on this? Relating to our earlier conversation as to how you make the case for development on a downturn, when I was in the United States that weekend in New York I watched an interview because the High Level Event was happening simultaneously with the Clinton Global Initiative meeting in New York. In my personal judgment, Bill Clinton is almost without peer as a political communicator, and I was therefore fascinated to watch an interview which he gave answering the American equivalent of the questions that we will all be being asked in terms of why we should be spending in developing countries when there is a global economic downturn. In response to the specific issue, which was why should the CGI be continuing to work in these African countries, he offered two very interesting answers which I have been reflecting on a lot in the subsequent weeks. First, he, said, if you look at the Pew Global Attitudes studies, where in the world is the United States more popular today than eight years ago? It is in central and Southern Africa where a combination of the Clinton Global Initiative, MCC,[12] PEPFAR[13] are working in significant numbers. Simply in terms of our national interest, this is a huge game for us to be seen to be part of the answer to the challenges facing these countries. The second answer he gave though, which sparked in my mind when Andrew was speaking, was, "I would have a plea to all journalists covering these issues. Please do not ever use the word Africa again, because actually Africa carries with it an association of failure, however unmerited, which makes it difficult to make the case, which actually is compelling if you look at the evidence of the individual countries in Africa's achievement over the last five to ten years", and he said when you get to the level of talking about what has happened in a country like Rwanda, what has happened in a country like Ethiopia, they comfortably bear comparison in terms of economic progress with more developed markets in recent years, and in that sense I think one of the challenges for us is to find a way of telling the story of the continent in a way which does not take people back to a perception of failure and famine but actually recognises the objective truth, which is that many of these countries have been growing at five or six % for a number of years now, albeit with high commodity prices. We still anticipate they will continue to grow. There will continue to be very real commercial opportunities there. If, critically, the public policy choices which have been one of the ingredients of sustained growth, along with relatively easy credit and high commodity prices, continue and one of the conversations we are having at the moment with African governments is to say, if you are to seize the opportunity of having higher rates of return on investment in the years ahead, you cannot afford now to do anything than to put the foot to the floor and accelerate the kind of regulatory and governance changes which make you a safer and stronger business environment in the years ahead than you have been in past years.

Q128 John Battle: Can I come back to the Global Malaria Plan that was announced at the High Level Event, because it set an aim of achieving near zero preventable deaths by 2015, but people assess that that would take investment of a billion dollars a year being raised from now until then, and that was drawn up before the credit crunch, so how realistic is that plan? Can it possibly be achieved or will it just be another target that disappears into the distance?

Mr Alexander: One of the reasons that we are optimistic in terms of the progress that has been made on growth by the launch of the Global Malaria Action Plan and also the event that took place in New York is it is probably the best exemplar of putting together a different kind of coalition than that which has been put together in the past, in the sense that with the engagement of private sector people like Ray Chambers, Peter Chernin at News International, there is real private sector engagement on the issue of malaria in a way there has not been in the past. Secondly, in a more co-ordinated fashion than has been the case on previous diseases or in previous years, we have the real engagement of people like the Gates Foundation, and in that sense you have got the philanthropic piece, you have got the private sector piece and you also have the kind of government commitments that Gordon made when he was appearing on Pop Idol, or American Idol, in the United States earlier in the year with an additional 20 million bed nets to make a contribution to filling the bed net gap. So in that sense our measure of the capacity to achieve the Global Malaria Action Plan is not solely contingent on the level of public investment that is secured. That being said, you are absolutely right in recognising that our estimate is the Global Malaria Action Plan will require $5.3 billion in 2009 worldwide, about $2.2 billion for Africa and $6.2 billion worldwide in 2010, $2.86 billion of which is for Africa to expand the malaria control programmes, and will also require an additional $750-$900 million per year to meet the needs for research, vaccines, drugs and other tools. So we have made some progress, but it is right to recognise that the plan identified numbers that need to be moved forward. Again, it bears on the point that Martin made earlier, the very specificity of the Global Malaria Action Plan and the gap that still needs to be filled to meet it to me is an assistance in meeting the challenge of malaria rather than a threat to meeting the challenge of malaria.

Mr Steer: I think one of the things that we need to be able to do in malaria, which I think we can, is to demonstrate that this investment is really a wonderful investment. It costs $17 to reduce a disability adjusted life-year in malaria, and that is the standard measure, the so-called DALY. Anything under $100 is traditionally regarded as actually a pretty good investment. That means if there are 500 million cases of pretty serious malaria every year and a million deaths, and it is mainly children, for $17, using the technologies, a combination of spraying and bed nets, you can basically restore a lost year of life either through death or, more likely, through disease. If that is an adult, even if they are only making $150 a year, that is an incredible rate of return. If it is a child, it speaks for itself - that is just a wonderful investment. What we have to be able to do is demonstrate that, and who would not want to put money in with that kind of rate of return, but we have to be able to demonstrate it, which I think we can.

Q129 John Battle: Could I apply that across to the Task Force on Innovation Financing for Health Systems, because there, as far as I understand it, the first year is going to be spent exploring funding mechanisms rather than getting on and doing the job. Are we losing a year by doing planning? Why do not those mechanisms for financing that you applied to the malaria initiative apply to this taskforce, or am I being too sceptical? The reason is, we need not just set to targets but to make sure that the stones to reach down that road are in position, do we not?

Mr Alexander: I am reminded of Barack Obama's response when challenged as to why he is not taking part in the debate while dealing with the global financial crisis, and he said, "As President of the United States you need to be able to do more than one thing at once." In that sense, it is not for us a choice between looking and exploring this issue of innovative financing mechanisms in terms of health systems and getting on with the job. If you look at the sum that I confirmed when we were in New York in terms of the eight first wave of IHP countries and the money that we are spending on health, there is for us no contradiction between getting on with the work of supporting health system reform and at the same time consciously raising the bar for the international community as we sought to do in Hokkaido by identifying the need for additional health workers.

Q130 John Battle: But unless - and this is where I am not clear - there are parallel financing structures, or will the money go through things like the Global Fund to Fight AIDS, TB and malaria or the Global Alliance for Vaccines and Immunisation? Will it be used in the existing funding mechanisms or will you be setting up parallel ones?

Mr Alexander: No, there is no presumption that we will be setting up parallel structures at all. We are saying, however, if you look at the opportunities that we have, for example, anticipating the Italian G8 Presidency next year, this is now a very serious and credible task force that we have established. We have got Bob Zoellick co-chairing with Gordon, we have got Prime Minister Stoltenberg, if I recollect we have got Margaret Chan from the World Health Organisation, Ellen Johnson Sirleaf, Bernard Kouchner, Giulio Tremonti, the Italian Finance Minister, anticipating the G8 Presidency. We have put together a serious group of people which we believe will give us clout and authority as a taskforce internationally. We consciously have recognised this. The main criticism is not have you just set up a planning process that will takes months and months and months. If anything, we have put ourselves under a huge degree of pressure in terms of can we start work immediately, and, although we are still working on this, we would probably anticipate that there will be a task force meeting in Doha at the Financing for Development Conference, our first opportunity for the task force to get together and start its work, and given the normal planning timescales for these kind of tasks forces, that is quite quick, anticipating that we want quick results. But we are convinced that, given the collective experience that we have, whether through the AMC,[14] whether through other forms of innovative financing, the challenge is to apply that to a sector which historically has not had the focus on innovative financing in particular in relation to health workers.

Mr Dinham: That is right. We are genuinely open about what this taskforce could come up with. There is a whole range of possible outcomes. As you say, some form of IFFIm (International Financing Facility for Immunisation) arrangement, increase donor support for health results, more debt for health SWAps,[15] private participation and the financing and delivery of health services, insurance-based health schemes, whatever. There is a range of possibilities and this is genuinely a way in which we can lever more resources.

Q131 John Battle: As long as it is levering more resources in. The reason I asked the question is that in this room, perhaps not that long ago, we were looking at funds to increase assistance for anti-retrovirals for HIV/AIDS, and we are doing an inquiry on AIDS, as you know, at the same time as this. I am rather hoping we can guarantee that it is not just a shift in facility and malaria becomes more important than HIV. Similarly, when we went for the anti-retrovirals we neglected the TB elements, so we have got to go back to it. How can we keep all of them, increase the maximum drive for all of these, so that we actually get nearer the final goals that we are aiming at? That is the issue really, is it not?

Mr Alexander: We very much see this as new resources for health in developing countries. The other point I would make would be I personally greatly welcome the involvement of Bob Zoellick, in the sense that I know there has been some criticism in the past in terms of the record of the World Bank in terms of investment in health and it is an issue which I think he is gripping within the bank, but also it holds out, again, a kind of false multiplier effect that not only can we look to lever in new resources, but also it will mean that you have as President of the World Bank somebody who is across quite simply the best thinking anywhere in the world on innovative financing for health and, simply in terms of the World Bank piece, never mind the additional resources, I think that is a significant gain.

Mr Dinham: They are also, of course, the treasurer for the advance market commitment for vaccines.

Q132 John Battle: Mr Zoellick is still there. If the elections go in a certain direction next week, he may move on.

Mr Alexander: Could you possibly tempt me into a prediction on that!

Q133 John Battle: He might be treasurer.

Mr Alexander: We will have a view by the next time we meet!

Q134 John Bercow: Secretary of State, to ensure that the Millennium Development Goal of all children completing primary education by 2015 is met, it logically follows, of course, that universal access to schooling has to be achieved by 2010. What specific steps is DFID taking to ensure that new teachers are trained for schools built as a matter of urgency to facilitate the achievement of this important objective?

Mr Alexander: The context in which all of our spending on education takes place is the pledge which preceded my arrival in the department, but I am delighted that it was made in terms of the £8.5 billion that has been pledged between 2006-07 and 2015-16, and in that sense, we have been working very hard. I personally have witnessed the results. I saw for myself in three countries that I recall most recently, one was in Uganda, where I visited a school with the Prime Minister, where extraordinary results have been achieved in terms of additional kids coming into schools. I then travelled on and saw for myself in Tanzania the progress that has been made in terms of primary schooling and, most recently, ten days ago, two weeks ago, I saw in Ethiopia the progress that has been made. In some ways the great frustration that we face is we know how to get kids into school, we have seen progress and brought 40 million more kids into school, but we have still got 75 million children who this morning had no school to go to. That is why there is a balanced approach that we take working with specific country plans in terms of the Fast-Track Initiative (FTI) seeing what individual countries require. Is it physically the building of a school? The school that I visited ten days ago was built by World Vision but then all the on-run costs were being met by the Government in Ethiopia. Is it actually teachers themselves and the training of teachers, which we are very clear has a consequential impact in terms of rates of retention in the school? Is it the provision of something as basic as sanitation facilities at the school? Again, I was sharing a platform, or speaking at a meeting with the Chairman earlier in the week at the launch of our new water and sanitation policy and, in truth, both the mothers that I met in Ethiopia and the mothers that I met in Kenya said, "We simply would not consider having sent our daughter to the school if it had not been for the fact that there were separate toilet facilities." So whether it is the provision of decent toilets, whether it is the provision of decent teachers, whether it is the provision of, in some cases, feeding programmes to ensure that kids have an incentive to come to school or whether it is as basic as the abolition of school user fees, which in a case like Tanzania resulted in a million more kids turning up the following week, we work with the Global Campaign for Education to highlight the issue and we work with the Fast-Track Initiative to make sure that the country plans meet the particular needs of the countries in which we are working.

Q135 John Bercow: That is a very helpful answer, but I wonder if, as a follow up, Secretary of State, I can ask you whether the Class of 2015 Partnership, announced at the High Level Event, includes specific gender targets within its aims? Because you will be aware of, and I am sure duly disappointed by, the fact that the 2005 MDG gender equity in education target was missed and, sadly, missed by a mile.

Mr Alexander: It is impossible to build credible strategies for getting those 75 million kids into school unless you recognise the centrality not just of gender but disability. From my recollection, I do not have the figures in front of me, but I think one in every six of those children is in Northern Nigeria in which there is predominance of lack of opportunity for girls in particular. So in that sense it is a constant dynamic in the conversations that we have with other partners in terms of how do we get those additional kids into school. You are right that the gender target for 2005 was missed, I think, in 94 countries, a huge number of countries, and in that sense progress has been hampered for a range of different reasons, and understanding the factors that stopped the last target being met is instructive in terms of how do we make progress. It is partly a lack of international political leadership and people articulating exactly the discussion we are having; the global funding gap has itself contributed to the problems; a lack of plans and capacity, which is why the FTI is so important, because it gives the donors no place to hide in terms of a credible plan being developed by the national authorities, and locally, the number of poor families who simply cannot afford to send all of their children to school has a differential impact in terms of girls there. So in that sense it is absolutely essential to the planning that we put in and the work that we do with the Fast-Track Initiative to try and anticipate that, and in that sense it was a repeated theme in the Class of 2015 meeting which I attended and at which our Prime Minister spoke.

Q136 John Bercow: As a very brief follow-up, Secretary of State, may I say thank you again for that and for your commitment to build upon the work that you have already done. I wonder if I could just, in a sense, suggest that this committee can offer reinforcement and ballast to you in your efforts: because on the one hand, obviously, cultural factors very often are of longstanding and they are not easily tackled, and one has to be both sensitive to them but not, ultimately, led by them, and, to put it very bluntly, there is a compelling case, I think, for affirmative action in this context. It logically follows that if girls are far behind and if there is a general default presumption in a family with devastatingly inadequate resources in favour of sending the boy rather than the girl, or if a judgment has to be made to withdraw a child where there are school user fees, to withdraw the girl rather than the boy, frankly, that needs to be revisited, and it is perfectly legitimate if DFID is paying the piper for it, at least to some extent, to call the tune. The second point, if I may say, Secretary of State, is that I think it has been a recurrent feature of our visits as an International Development Committee, there are a number of different places in respect of a range of projects not specifically related to primary education, to find that in so many cases we go to these meetings about women's issues and it is men who are speaking. On one occasion Malcolm and I and Ann McKechin, whom of course we are delighted now to see as a member of the Government and, sadly, no longer a member of this committee, were absolutely infuriated that there was a woman - I can think of one at least, and there were other examples - who had a Master's degree, who was standing there serving the tea while men prated on eloquently at very considerable length and it is a fair bet that a number of them will have lesser qualifications.

Mr Alexander: Sounds a bit like my kitchen! I simply observe the fact that probably none of us are well qualified to comment on this, given that all of the witnesses and all of the questioners are men, and I am conscious that we are having this discussion against that backdrop. I would also say with humility that, following the reshuffle, all of the ministers at the Department for International Development are men. Partly as a result of that, I have taken on the responsibility of being the minister responsible for gender issues within the department, because I wanted an unequivocal message sent out that at the highest level of the department that we do and continue to take extremely seriously the gender dimension to the challenge of poverty reduction. In the best traditions of the Civil Service, I have been surreptitiously passed two notes clearly determined to make sure that I present an accurate picture of the department's work. One note, if I may quickly indulge the committee, says, "Target missed but progress." In 1999 there were 94 girls per 100 boys in school and, happily, in 2006 that number has at least risen to 97 girls per 100. So there has been progress, but I am far from complacent and there is more to be done. The second torn piece of paper I was passed was just confirming that the Fast-Track iInitiative endorsement of which I spoke requires very specific attention being paid to the issue of gender. So I can assure you that, if there are further opportunities for dialogue with the committee, we will continue, I hope, to prove the sincerity of our concern, but it is a very fundamental part of our thinking about the challenge of education.

Mr Steer: Just to support your point about affirmative action, yes, affirmative action is required and that is why actual cash is handed over to parents to enable their children, their girls, to go to school in countries like Bangladesh, and we will be financing that. It is hard to imagine that degree. Twenty years ago this would have been so radical, the idea, it would sound like a bribe, but in fact it is not at all, it is enabling their children to go to school in a very direct way.

Chairman: I am pleading with the Labour whips to ensure that Ms McKechin's replacement is female; otherwise we will have an all male committee.

John Bercow: That will be deeply unsatisfactory, and then there will be questions of pots calling kettles black and all that sort of thing, as people start moaning about these matters.

Chairman: We genuinely try to feminise ourselves with at least one woman.

Q137 John Bercow: Mr Dinham wants to say something, I think.

Mr Dinham: No, it was just to re-emphasise that the Class of 2015 event had this issue about girls' education shot right through it, and if you look at the UN document, which sets out all the various pledges which have been issued, a number of them refer to girls' education and specifically Norway put in $180 million specifically for that through the UNICEF Programme, so it was quite a strong motif really.

Q138 John Battle: We have, quite rightly, referred to the Prime Minister and, indeed, his wife. There have been defaults on MDG5 on maternal health, which has fallen the furthest behind, but if gender is to be driven as a theme throughout all the MDGs, it does seem that some of them are both too narrow and others are not even taken into scope. For example, with HIV/AIDS the question of violence against women is a theme that we are waking up to perhaps late in the day. I just wonder whether, on the whole question of gender equality, if we set each of the targets against gender equality most are really far off track. Should we not be setting specific targets, perhaps along John Bercow's lines of affirmative action, for women and girls in all the MDGs? Would that not help set a framework to be much more inclusive, although we are still hoping they will trickle down and reach through?

Mr Alexander: It is interesting. I had a similar conversation relatively recently with my Danish counterpart, Ulla Tørnǽs, who is responsible for taking a strong leadership role on the issue of gender at the High Level Event, and you can have quite a theological conversation as to whether it is better to have a vertical or horizontal target: do you think of the target in terms of gender equality as running, like a theme through a stick of rock, through all of the MDGs, or is it better to identify and specify specific gender outcomes in terms of poverty reduction? I think the real test is the progress that we make, and in that sense my answer on gender would echo my broader response when people say why is it that the MDGs do not have enough emphasis on climate change, or conflict, or other issues which, were the MDGs being written today, probably would have a stronger emphasis. At one level you can have a critique of the MDGs to say they are, by definition, if there are eight of them, somewhat reductionist, they do not cover everything. Frankly, it is an important conversation to have, but at the moment it is the best framework we have, and I do not want to give people the excuse to spend months or years reflecting your earlier question, having conversations about how to redraw matrices for the MDGs, I want us to get on with the job, and in that sense at the High Level Event in New York the UN estimate $265 million was specifically committed to women's education. That to me is a better use of the collective time of the international community than at this point in the progress towards the MDGs or, indeed, the failure to make progress redrawing the matrix.

Q139 John Battle: I take your point, and I am not redrawing matrices, but the reality is on the ground as it were. To cross-reference a conversation that this committee is having co-terminis with this conversation, if you like, on HIV and AIDS, is the question that 60 % of women that suffer HIV/AIDS - and pregnant women - there is a massive issue there - and one of the issues that DFID have been good at has been doing some work on the ground on violence against women and HIV/AIDS, I think, if I remember, in Bangladesh, Nepal and South Africa. Can I flag that up with you and say that as well as setting a matrix out, perhaps some of the practice on the ground that DFID has implemented already ought to be disseminated right across the international agencies to make sure that it is built into their practice. We may then make some more progress as a whole. I make a plea to say that there is some good work going on on the ground. It may not be in the matrix, but unless we get there, we will not get the outcomes that we would want.

Mr Alexander: I have got the figures in front of me for South Africa, Nepal and Bangladesh and we have made real progress, and I can certainly show the committee if it would be helpful. When I left the press conference last September in Downing Street, and we had Prime Minister Stoltenberg, Gordon was there and I was there, as we left we had managed to get a single column in the Glasgow Herald and half a column in the Financial Times after months of international effort out there and, as we left the room, Gordon said, "I wonder if this proves that we need to have more focus in our publicity on individual diseases", because we know that the IHP (International Health Partnership) is the right response in terms of health system strengthening and co-ordination but in that sense what attracts attention about DFID's work is not always the same as your point: what actually we are proving by our policy leadership on the ground. In that sense, although there was a big discussion of malaria and other issues in New York, we relentlessly take the opportunity to make the policy argument in terms of gender and other issues as well, and I can assure you, whether it is Bangladesh or South Africa or Nepal, we have the examples already of where that combination is making a very significant difference, and in that sense we are sharing that with fellow policy-makers all the time. The truth is we struggle at times to get the public recognition of the interaction of these factors, whether it be gender and education, whether it be sexual violence and HIV, whether it be how to simultaneously attack malaria and attack HIV and AIDS and tuberculosis by building a sustainable health system which is the foundation on which any of these three diseases can be tackled, but our public recognition is not always the best guide to the integrated nature of our policy work.

John Bercow: The committee has the same problem Secretary of State.

Q140 Hugh Bayley: Compared to some select committees, we are pretty supportive of the department we are going to scrutinise. In fact, our previous Chairman described it as a conspiracy, the committee working with the department to rein in support for the department's work out of the Government, and I think it is still generally true, we very warmly support the work that the department does, but we have a gripe, and the gripe is this. In our report on global food security we raised the concern that the way that DFID measures progress towards Millennium Development Goal 1 uses poverty as the indicator rather than nutrition. Millennium Development Goal 1, of course, is to eradicate extreme poverty and hunger, and they are not the same things. I do not think one could make a credible argument that you remove hunger simply by increasing people's income. There is clearly a correlation but they are not the same thing. I wonder, when you were looking at the committee's recommendation and making your response when you decided to make no change to the way you assess the department's contribution towards the achievement of Millennium Development Goal 1, whether you came close to adding a nutrition indicator or whether you would want to add a nutrition indicator somewhere else. That struck us as very important when we wrote our report back in June and July and, given what has happened to food prices since, I think it is even more important. I wonder whether it is something you would like to comment on and possibly consider further.

Mr Alexander: A word of context before I come on to this specific response that we offered to the committee. The Davos Conference that took place last year at the end of January was noteworthy, and it is usually to Bob Zoellick's credit by the fact that he took the opportunity, frankly ahead of anybody else, of highlighting the quite seminal Lancet article that identified nutrition in particular as a problem, and he took the opportunity to talk about the fact that the international community was going to have to recognise nutrition and hunger as a significant issue in the months ahead. Actually, with certainly Andrew, one of the things I did when I came back from that conference was to say, "I want to see my agriculture people and I want to see my health people in a room so that I am confident that we are across these issues", because, frankly, nutrition had not been a central focus of my work in the first six to eight months in the department but I wanted to make sure that, as one of the key international donors, we were across this issue. I think there has been recognition, which is reflected in the response that we gave to the committee's work, that this is an issue that has grown in significance, not least in the light of the rising food prices. I would, with respect, somewhat diverge from the overly pessimistic characterisation you have offered of my response, or the Government's response to your report, in the sense that in front of me I have got the exact wording for clarity: "DFID's policy in the research division established a nutrition taskforce team in June this year. Ministers" - myself - "have asked the team to recommend ways in which DFID can strengthen its focus on improved nutrition outcomes in the context of rising food prices", and in that sense that is work that we are taking forward. We are looking to have a nutrition strategy by the end of 2008 and in that sense there is ongoing work on this issue. Andrew, do you want to add to that?

Mr Steer: I think your comments and criticisms were fair. DFID, I think, has done some wonderful work on nutrition. The way we have gone into it, though, has been a lot through social transfers, as you know, in 20 countries in Africa. Our view has been you have to empower poor people with the purchasing power so that they can purchase the nutrition they need and then invest in agriculture, and so on, but I think what we have been missing is the bulls-eye on nutrition. Looking at nutrition, we have looked at all the instruments that can address it, but I think we do need to focus more fully, and that is why the Secretary of State has asked us to get back to him precisely with some very clear ideas, and we will be discussing it with our internal so-called development committee in about six weeks, two months, and we will be presenting to the Secretary of State at about the same time.

Q141 Hugh Bayley: I am certainly reassured that you are working in the area. In your response you said this in explanation of the department's policy, "We have selected eight of the 48 MDG indicators, one for each MDG, as a summary measure of progress against the PSA in 22 partner countries. We have selected a poverty measure - the proportion of population with income below one dollar - as our indicator of progress against MDG1 to eradicate extreme poverty and hunger." Our question to you is: why did you chose the poverty indicator, not the nutrition indicator? If you do work on this field, and I am reassured to know that you are re-examining the matter, perhaps you do not need to pursue it further, but I think as a committee, if you decide as a result of your nutrition work to retain the single indicator for MDG1 as a poverty indicator rather than a nutritional indicator, can we have an explanation of why you think it is the right thing to do?

Mr Alexander: With respect, I think there is a slight risk if we are not complete in the quotation, in the sense that the following sentence is also relevant. It states, "We will, however, continue to monitor progress against all MDG indicators, including those of malnutrition, throughout the PSA period." In that sense we can have a further exchange, and I hope that the undertakings that we have given reflect the seriousness with which we reflect on the work on the committee. On the other hand, it does not seem to me to be inappropriate to see that you can both have summary indicators and take a more comprehensive look by measuring all of them, but I take the point you have said, and, as I said, there is continuing work underway within the department.

Q142 John Battle: In terms of the sensitivity of the indicators, some of the Government specialists now are saying, obviously, a dollar a day, you cannot survive on that in a rural area. It is very different from trying to survive on that if you are in an urban area. I think in the past we have focused on hunger as a rural issue and not as an urban issue. Given that now more than half the population in the world live in urban conurbations, will the indicators be sensitive enough to realise that there is malnutrition and hunger in the urban centres that might actually be a greater challenge than in the rural areas?

Mr Steer: I think it is certainly true that more attention will, and should, be given to urban issues by the development community world-wide. With regard to the poverty indicators, at the country level, which is where it matters, country level poverty indicators, if they are done well, reflect crises in different regions of the country, so that would already be embedded in the overall poverty measure, to the extent that you would wish all good measures of poverty - and generally the World Bank tends to lead this work - would have regionally disaggregated and urban/rural disaggregated measures because the bundle of goods that you are trying to measure is different in those two and the prices are quite different in the two, as you say.

Q143 Chairman: Following on from that, coming towards the end, the food security issue obviously has changed somewhat from the extreme situation earlier in the year. I am not sure whether you have made an evaluation, but clearly some of the prices have come down. I guess it is too early for people to predict what the overall trends are, but there were two particular points. One was the World Food Programme's Purchase for Progress initiative, in other words to buy more locally and secure their supplies more effectively, and at the same time as helping local farmers get more of a share of the purchasing power, and your own commitment to increase investment in agricultural production. Are you able to give us an indication, first of all, how this was addressed at the summit and how it is going to be taken forward, because clearly these are two issues which should help alleviate these kinds of crises in the future and actually contribute to development and poverty reduction at the same time?

Mr Alexander: I am happy to do so. I think it might be helpful for the information of the committee if Andrew very quickly goes through what is happening to commodity prices on three of the key markets, because I asked a similar question earlier and was in some ways both encouraged and educated by what he told me in terms of wheat and rice, because it tells quite a different picture in each of them.

Mr Steer: Certainly, Chairman, you are absolutely right that prices today are lower substantially - wheat is 47 % down on its peak, maize is 35 % down, rice is 26 % down on its peak - but if you compare prices today with a time when they were reasonably stable, like October 2004, four years ago, wheat is up 66 %, maize is up 98 % and, most disconcerting of all, rice up 253 %. So, whilst there are some grounds for encouragement in that, the spike has gone, but I think we are all very much aware for three or four well-known reasons that the era of really low prices is not with us any more.

Mr Alexander: In terms of what actually happened at the High Level Event, those assembled promised nearly $2 billion for emergency food aid to stop the immediate tragedy of the threat of starvation of the horn of Africa and for the rapid distribution of support including seeds and fertilizers to 30 priority countries. In terms of the UK's commitment, we have on-going commitments of over £1 billion to support agriculture, food security and livelihoods, which I had set out earlier at the Rome Summit but, to encourage others at the time of the New York event, I committed £42 million for the whole of Africa and £70 million to Bangladesh in terms of the Chars Livelihood programme, and we believe our efforts helped persuade China in particular to contribute $30 million to establish a trust fund to enhance agricultural productivity. In terms of our broad brush strategy in DFID in terms of food, I would say basically three things. Firstly, immediate humanitarian intervention - for example, what we are doing in the Horn of Africa; secondly, social protection which we believe adds resilience and is an effective and smart way to respond to the vulnerability of the 967 million people vulnerable to hunger; and, thirdly, a big focus on agricultural productivity for the long-term, how we make sure that we are able to see the kind of rises in agricultural productivity we saw in South East Asia 20 or 30 years ago being replicated in other parts of the developing world, principally sub-Saharan Africa --

Q144 Chairman: Is there specific progress on this Global Partnership for Food and Agriculture?

Mr Alexander: Yes. I can give you some of the details in terms of GPAF, as it has come to be known. It was envisaged as being a compact which will bring together a broad range of different partners behind nationally developed country plans, in some ways not dissimilar to the kind of conversations we were having earlier in terms of the Fast-Track Initiative, both to hold people to account and help facilitate access to the finance. It will involve donors, developing countries, international agencies, civil society and the private sector; it will use existing financing mechanisms and instruments. We are not looking to establish a new global fund for food but rather to see how can we use the effective instruments, help align stakeholders by working through national and regional plans, in particular CAADP,[16] in terms of agricultural research for Africa and also the African-led social protection processes and, finally, help to take forward the UN Comprehensive Framework for Action. In terms of progress that has been made to date on that, we have the initial proposal of this at the Rome Summit in June, broad support reflected for it in the July Summit of the G8, and we used the High Level Event to actually further strengthen the commitments and, as I say, there were $2 billion worth of commitments made. I think the success of the Global Partnership for Food and Agriculture is reflected, in particular, by the size of the World Bank commitment, the $1.2 billion, which, frankly, has reflected a speed of response and an integrated partnership approach which has not always been replicated in the past but is certainly proving its worth in terms of the World Food Programme.

Q145 Chairman: You had the aim of doubling production in participating countries. What you did not say is how many countries you hoped would participate and by when you would double production. Are you able to give you any firmer idea as to that?

Mr Alexander: As the clock ticks towards four o'clock, I cannot give you the exact number, but I will happily write to the committee on that point.[17]

Chairman: Secretary of State, thank you very much. I think the committee appreciates that you will be appearing in front of us twice in two weeks, which is not ideal for either of us, I guess, but it gives us an opportunity to pull a lot of threads together, particularly in international institutions. Thank you and your team very much for coming.



[1] Millennium Development Goals

[2] Organisation for Economic Co-operation and Development

[3] UN Office for the Coordination of Humanitarian Affairs

[4] Public Service Agreement

[5] The World Food Programme

[6] International Financial Institutions

[7] Civil Society Organisations

[8] Comprehensive Spending Review

[9] Official Development Assistance

[10] Overseas Development Institute

[11] UN Development Programme

[12] Millennium Challenge Corporation

[13] US President's Emergency Plan for AIDS Relief

[14] Advance Market Commitment for Vaccines

[15] Sector Wide Approaches

[16] Comprehensive Africa Agricultural Development Programme

[17] Supplementary written evidence submitted by DFID