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Baroness Symons of Vernham Dean: My Lords, education is always important, when we are considering programmes of reform. However, there are many different priorities struggling to gain the attention of the world community in decisions about the way in which aid is distributed. There are also important questions about how we get stability in Georgia and deal with terrorism, drug trafficking, organised crime and, to a certain degree, corruption.
DfID has devoted £2.1 million for various programmes in Georgia this year, including some relating to governance and civil society. I shall convey to my colleagues in DfID the point that the noble Baroness made about schools.
Lord Dubs: My Lords, my noble friend mentioned the instability in the region and the fact that Georgia has been a conduit for terrorism, drugs and other illegal activities. Does she agree that we should help that country and its new government to become an East-West conduit for energy and trade?
Baroness Symons of Vernham Dean: My Lords, there is much in what my noble friend says. There is the interesting development in trade, which he mentioned, and the impact of the Baku-Tbilisi-Ceyhan pipeline through Georgia, which should be a means of generating more income for that country.
It is also important that, at some stage, the EU again considers the good neighbours policy. That is a matter that the EU would have to consider. If sufficient progress is made on issues relating to reform in Georgia, there ought to be a positive response to the possible inclusion of Georgia.
Lord Howe of Aberavon: My Lords, I hope that the Minister will agree that by no means all the problems facing Georgia should be laid at the door of the former president, Eduard Shevardnadze, to whom we all owe a great debt of gratitude for his earlier work. He showed great courage in returning to his country to try to put it in order. Georgia's difficulties are more attributable to long-standing historical and cultural problems that dominate that poor emerging country.
Does the Minister acknowledge that certain lessons may be learnt from what has happened in the Ukraine? The noble Baroness, Lady Williams of Crosby, and I served for some years on the advisory council there only to find ourselves trying to cope with competing advice from different Western sources. Will the Minister try to ensure that the help and advice given by Britain and the European Union is integrated with that of other helpers to give the new president of Georgia a coherent framework of support and advice? He has a huge struggle ahead of him.
Baroness Symons of Vernham Dean: My Lords, I agree with almost every word that the noble and learned Lord has uttered. With regard to the origin of Georgia's many problems, the difficulties created by various territorial claims are a long-standing source of instability. We support the efforts of the United Nations and the Organisation for Security and Co-operation in Europe to find a political solution to that problem.
The noble and learned Lord made a particular point about Mr Shevardnadze. Mr Shevardnadze made a historic contribution to the end of the Cold War and has played a significant role in Georgia since its independence. I agree strongly that it is important that we support the reform process under the new leadership
in Georgia, and I hope that my answers so far have indicated that Her Majesty's Government are certain that that is the right way forward.
Lord Russell-Johnston: My Lords, I appreciate and applaud what the Minister announced in respect of moneys being made available through the European Union. May I impress upon her that, for all the idealism and competence of Mikhail Saakashvili, the country could implode, unless it receives exceptional assistance? During the latter time of Shevardnadze's rule, corruption was rife. Does the Minister believe that there is any potential for exerting influence on Russia through the Council of Europe, of which Russia is a member, along with Georgia and ourselves?
Baroness Symons of Vernham Dean: My Lords, Russia has an important part to play in supporting the future stability of Georgia. I mentioned the visit of our representative, Sir Brian Fall, which is taking place this week. Sir Brian will also visit Russia at the same time as he visits Georgia.
The noble Lord spoke of the exceptional assistance that would be needed. I agree with him that the matter should constantly be revisited. At the same time, it is important to stress that we want to see a real engagement in reform by the Georgians themselves. It is important that we prioritise properly what must be done in that country and that it is done by experts. We have put in somebody from DfID to examine in particular the way in which priorities should be considered, but we also need to see willingness—not just words, but actions—from Georgia with regard to a reform programme.
Lord Fraser of Carmyllie: My Lords—
Lord Grocott: My Lords, it is time for the next Question.
Adam Smith Institute: DfID Contracts
3.15 p.m.
Baroness Northover asked Her Majesty's Government:
- What criteria they considered before giving the Adam Smith Institute £7.6 million in aid money last year for consultancy work.
The Lord President of the Council (Baroness Amos): My Lords, the Department for International Development awarded three contracts to the Adam Smith Institute worth a total of £7.7 million in the past financial year. Each was awarded following open international competition on the basis of published evaluation criteria.
Baroness Northover: My Lords, I thank the noble Baroness for that reply. Is she content that the Adam Smith Institute has sufficient expertise in development issues to justify giving it such a large sum? Does she
share my concerns about its overt agenda? Has she seen its website, on which the institute gives as its two main "heroes" Hayek and Milton Friedman? It features a recommendation to scrap the UK's "awful" Department for Education and Skills and lists the latest publication by its international division as building support for privatisation. Given that unfettered markets can benefit the strong, rather than the weak, is the noble Baroness content to rely on an organisation with such a strong agenda to identify how best to help the poorest people throughout the world?
Baroness Amos: My Lords, it is important that we put this in context. DfID awarded 800 contracts last year, three of which went to the Adam Smith Institute. Adam Smith International Limited, which is the consultancy arm of the institute, is a separate organisation. It is affiliated to the institute as a self-financing commercial organisation.
The work that has been carried out is significant. The three contracts awarded last year included one for support services for public enterprise restructuring in South Africa; one in Afghanistan to provide support in capacity building for the Ministry of Finance and the central bank; and one in the Kyrgyz Republic for pilot training and capacity building in international waterhouse law. There is a range of projects.
Baroness Rawlings: My Lords, we fully support the good work of the Adam Smith Institute and any increase in trade that helps to alleviate poverty. Does the Minister agree, however, that a vast amount of money is involved, in comparison to the sums given to many of the aid programmes funded by DfID, especially the redirection of funding, away from the middle-income countries? Does she agree that Labour has adopted the Conservative policy of privatisation? They opposed it in the UK but are now happy to impose it on the developing world.
Baroness Amos: My Lords, the noble Baroness does not entirely understand the nature of the consultancy work in which such organisations are engaged. What happens is that a developing country will identify its priorities and seek assistance with that work. We will produce terms of reference and evaluation criteria. Countries and organisations will then be asked to bid. There is an open international process for contracts over £100,000. There will then be a tender panel, usually comprising someone from the developing country concerned, as well as DfID experts. It is work for the developing countries.
Baroness Noakes: My Lords, will the noble Baroness and her department accept my congratulations on using an organisation that has the principles explained by the noble Baroness, Lady Northover, and extols the virtues of small government, low taxation and
reductions in regulation? Will she communicate the benefits of using such an organisation to her Cabinet colleagues, including, perhaps, the Chancellor?
Baroness Amos: My Lords, I have to say to the noble Baroness, although I know that she will be disappointed to hear this, that that is not the basis on which we awarded contracts to the Adam Smith Institute.
Lord Skelmersdale: My Lords, will the noble Baroness the Lord President of the Council enlighten us? She has just said that of more than 800 DfID contracts three were awarded to the Adam Smith Institute. How many were for more than £7 million?
Baroness Amos: My Lords, I am happy to write to the noble Lord about that. The information is available on the DfID website, but I do not have it with me at the moment.
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