Select Committee on Public Accounts Minutes of Evidence


Examination of witnesses (Questions 160-165)

DEPARTMENT FOR INTERNATIONAL DEVELOPMENT

4 JUNE 2007

  Q160  Mr Mitchell: What is the position on land reform? We all know the story of the Kulaks of Russia and the increase of production and that of the expropriation of the white Kulaks in Zimbabwe, which has led to a disastrous fall in production. One hears reports about big commercial agriculture driving out small peasant agriculture in large parts of Africa to supply goods such as flowers for the European market. How do you interact with that? Do you have to cope with the consequences of the commercialisation of agriculture and try to offset it, do you want to sustain peasant agriculture, or do you roll with the punches?

  Sir Suma Chakrabarti: Our fundamental mission is to eradicate poverty, so it rather depends what sort of land reform you are talking about. If land reform is clearly going to impoverish people, we would not be in favour of it.

  Q161  Mr Mitchell: You cannot say that until it is done.

  Sir Suma Chakrabarti: One has to take a view in different contexts. For example, in some places land reform has been extremely successful in dealing with poverty—South Korea and Japan are good examples. In India, a good example would be the Punjab and bad example would be West Bengal. There are a number of different cases and we would have to do an analysis, in each case when a Government put forward a proposal, of what it would do in terms of rural poverty. In the Zimbabwe case, we said up front that the proposal would impoverish the rural poor.

  Q162  Mr Mitchell: So you tackle the poverty, really, whether it is a consequence of land reform or of not having it?

  Sir Suma Chakrabarti: Yes, that is right. Everything comes back to that.

  Dave Fish: We have two good examples in Africa at the moment of tackling land reform for poor people. One is in Rwanda and one is in Mozambique, both with a strong push from the Government to produce land laws that protect the interest of the poorest, so the issue is something that we are very interested in.

  Q163  Chairman: Just one last question, slightly on that point, on channelling more of our taxpayers' money through the Governments of developing countries, I presume you agree with this statement, in paragraph 2.19, on page 17 of the Report: "In our survey of country offices, only half of those country teams using budget support reported they were satisfied with government spending in rural areas or its broad geographical focus." That is pretty damning, is it not? I presume that you accept it?

  Sir Suma Chakrabarti: I accept that, but I also accept that an even lower proportion would have been satisfied 10 years ago. In other words, what we have been doing is trying to improve Governments' focus on rural areas. We have got to that stage, but it is still not good enough.

  Q164  Chairman: When I was in the Congo in September, I was very struck by the desperate nature of Government efficiency—or complete lack of it—and impressed by the actions of much smaller charities, such as War Child, which were channelling all their money not through the Government, but directly into very small sustainable projects. I am worried, because I rather thought that that was an increasing focus of our activities.

  Sir Suma Chakrabarti: One has to separate a few things. On DRC, I would agree with you. In DRC, the fundamental task for DFID would be to try to get the state to show some semblance of being able to run anything and to use direct assistance much more; but in Mozambique, Tanzania and Vietnam, the state does function.

  Q165  Chairman: All right, a fair answer. Thank you very much. This has been an interesting hearing, but we are worried that there is perhaps either an insufficient emphasis on prioritising the rural poor—either by multilateral agencies or by DFID—or insufficient use made of research. Sir Suma, unless you can convince us otherwise, our Report may well reflect that point of view.

  Sir Suma Chakrabarti: We will send you the notes that you asked for.

    Chairman: Thank you very much, gentlemen.


 
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