Aid Under Pressure: Support for Development Assistance in a Global Economic Downturn - International Development Committee Contents


Examination of Witnesses (Questions 40-43)

RT HON DOUGLAS ALEXANDER MP, MR MARTIN DINHAM AND MR ANTHONY SMITH

21 JANUARY 2009

  Q40  Hugh Bayley: Maybe you could write to the Chairman at an appropriate time?

  Mr Alexander: Certainly.

  Q41  Mr Hendrick: I think it is generally agreed that a successful completion of the Doha development round would bring significant reductions in poverty around the world. Can I ask you, Secretary of State, how optimistic you are that Ron Kirk, the new US trade representative (USTR), will push for a final deal on the Doha round?

  Mr Alexander: Time will tell. I have a meeting tomorrow with Pascal Lamy[15] and I will perhaps be in a better position at that juncture because I have not yet spoken since the inauguration of the new USTR. It may well be that Pascal has taken the opportunity today to do so, but Pascal Lamy will be with me in the Department tomorrow and we will have a clearer sense there as to his judgement from his position within the WTO as to where matters stand. That being said, I took the opportunity at the time of the Annual Meetings last October to meet with representatives of both the Obama campaign and the McCain campaign who were leading on trade policy and an individual who I met was keen to impress upon me that there had been language included in the Democratic platform relating to the completion of the Doha round, which given a lot of the rhetoric and a lot of the debate around trade during the Presidential campaign he took to be a not insignificant achievement in terms of the framing of the platform. But as I say it is very early days, indeed the earliest day in the Administration, and we will obviously take the opportunity to press the case with the incoming Administration as we did with Susan Schwab, his predecessor as USTR, but not least given the state of the global economy at the moment there is a real case for multilateral agreement being agreed.


  Q42 Chairman: Secretary of State, if the bell rings I might ask you to complete the replies in writing, but first of all I would say that you have repeated a number of times the Government's commitment to achieving the targets and to recognising the need to maintain development and find creative ways of doing this, and I think that is welcome. As our inquiry continues, hopefully we will get more evidence which might reinforce that and make some further suggestions which you would find useful, but one particular thing coming up is obviously the G20 meeting hosted by the UK in April. Can you give us an indication of what your Department will be doing within that to reinforce the things you have been telling us and reinvigorate the Financing for Development process and ensuring also that developing countries have a real part in that process so that they will hopefully be represented?

  Mr Alexander: We would of course want a summit which reflects the continuing challenge of addressing the continuing financial problems of the global financial system, but we have been working hard to make sure that the development perspective is an element within the package emerging on 2 April. In particular, we are looking for faster, better financing from the multilaterals. Again, that was in part why I met Zoellick last week, to impress upon him the urgency of delivering on the undertakings he has made and urging him to consider where he can go further in terms of counter-cyclical lending along with protection of the poorest, which is what I spoke about earlier, in terms of social protection programmes. Thirdly, there was also helpfully—and we were supportive of this at the time—language included in the Washington communiqué which, as well as dealing with crisis management, anticipated more fundamental reform of the IFIs,[16] both the IMF and the World Bank, and in that sense there have been four working groups established after the Washington meeting. In December we had a French and an Indonesian co-chairs on the World Bank Working Group, but we are actively engaged with the French and the Indonesians in terms of what we would be looking for as an outcome, recognising that the focus of most of the time at the Summit will be on the immediate challenges both for the poorest and for the rest of the world but not forgetting the prize of more fundamental reform of the IFIs. So there are those three broad categories, faster and better financing from the multilaterals, social protection as a key instrument to protect the poorest from the effects of the downturn, and thirdly the broader issues of IFI reform.


  Q43 Chairman: But will the developing countries be represented in some way at this Summit? I know it is a G20 Summit.

  Mr Alexander: Yes. I repeat the undertakings which I gave to President Kikweti, who I met when I was in Doha, which is that our Prime Minister is committed to active engagement with developing countries. The exact form of that engagement will emerge in the weeks to come. I know that my colleague, for example, Mark Malloch Brown, is holding a whole series of meetings about the G20 London Summit when he travels to the EU Summit in Addi Abasa. In terms of the exact attendance, that has not yet been determined.

  Chairman: Thank you very much. The bell is going. My thanks to your colleagues. As I say, I hope we will be able to produce a report which will be timely and relevant and may have some additional ideas to put into the pot. Thank you.





15   Director General of the World Trade Organisation Back

16   International Financial Institutions Back


 
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