DFID Annual Report 2008 - International Development Committee Contents


Examination of Witnesses (Quesitons 120-139)

RT HON DOUGLAS ALEXANDER MP, MR MARTIN DINHAM AND MR ANDREW STEER

30 OCTOBER 2008

  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 Tørn?s, 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.



10   Overseas Development Institute Back

11   UN Development Programme Back

12   Millennium Challenge Corporation Back

13   US President's Emergency Plan for AIDS Relief Back

14   Advance Market Commitment for Vaccines Back

15   Sector Wide Approaches Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2009
Prepared 19 February 2009