Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 20-39)

Lord Malloch-Brown and Mr Marcus Manuel

8 NOVEMBER 2007

  Q20  Lord Anderson of Swansea: The great temptation is always to have grand declarations which everyone rallies around and no implementation. Is it suggested that there should be various milestones and that stock should be taken at each one of these? How can one avoid the charge so frequently levelled: "Grand declaration, no fulfilment?"

  Mr Manuel: It is a real danger. This is what is interesting about the process here, that you have these action plans on these eight specific areas, which attempt to do that by setting out what are the expected outcomes, what are the expected duties.

  Q21  Lord Anderson of Swansea: At each level?

  Mr Manuel: Each plan and each sub-component of each plan.

  Q22  Lord Anderson of Swansea: What would be the monitoring mechanism?

  Mr Manuel: There is a broader monitoring mechanism which is that there are twice yearly troika AU meetings and—this is one of the really good things that has happened recently—it is specifically agreed that civil society will be involved in consultation prior to those troika meetings, both on the EU side and on the African side. So there is, at the highest level, quite substantial space for monitoring, even if the details of that monitoring have not been fully fleshed out.

  Q23  Lord Hannay of Chiswick: Could I preface this by saying it is not Darfur specific because, if you agree, Minister, we are going to have word about that separately. What is it doing and what is it planned to do in the strategy and action plan for enhancing African capabilities in the areas of peace and security, including peacekeeping? To what extent is the EU contributing to strengthening African capacity in this area directly and to what extent is it backing the UN's own ten-year capacity-building plan for African peacekeeping which was one of the outcomes of the September summit. As a last and much smaller question: Are we satisfied that the EU is now properly equipped in Addis Ababa as we recommended in our report so that the diplomatic post there that the EU has is not divided in these artificial divisions between development and security issues and so on and is actually able to conduct real business with the African Union institutions in Addis Ababa and, above all, their African security council and the various mechanisms there?

  Lord Malloch-Brown: Let me say that this has been an area of the preparations in which we in the FCO have been particularly interested. It will not surprise you that I have been frustrated now and before between these gaps which have opened up in African peacekeeping capabilities, where you have to re-hat something as UN to deal with outstanding funding, training, equipment, even troop issues. That is creating a perverse incentive, in that it is undermining Africa's own peacekeeping operations, such as Somalia, by having people wait until they get re-hatted as a UN one and it is seen as in better financial shape. Even where the UN is there ready to write the cheque, there are still threshold quality and training issues which not all African contributors can meet, so there are these gaps. When several years ago that special fund was created to fund African peacekeeping, rather controversially out of, you will recall, the development side of things, it was enormously important but it was not a sustainable structure for the long term. So we have set up in this summit a kind of ongoing process. To knock off the issues where there will be cooperation, there is, (1) cooperation between the evolving AU conflict early warning system and the EU's own early warning and analysis structures, and (2) EU support for an African standby force, which would include support to regular training, even civilian support to the force helping with defining logistics and other key needs for deployment, et cetera. There is a proposal for a Euro RECAMP training and validation exercise which is provisionally planned for 2009. Then a separate part of the draft action plan deals with the need to address this core question of external funding for African peacekeeping missions. The EU is currently itself the single biggest provider of finance for AU peace support operations, but, as I mentioned, Darfur, Somalia, there are serious gaps, and, to be honest, there is a particular British interest here too because we tend to be the financier of last resort. We go in and we lift a Burundian battalion, as we have just done, to Somalia, or we put in some support to the Nigerians to allow them to deploy more urgently to Darfur so we have a double objective here to get as much of this into a European burden sharing formula as possible and to consolidate European support for this, but also look at longer term sustainable mechanisms which we can then get non European donors to join as well and then finally to work out what is the long-term relationship between UN funding and AU peace support operations. I see it as a complex of issues which is going to need sustained work over time to sort out which is very urgent. On the Addis issue, obviously we have strongly supported the need for a strong representative of the EU in Addis who could speak to all these different integrated elements of EU work with the AU and we think that individual needs to be in place to follow up on this summit.

  Q24  Lord Hannay of Chiswick: It will be no surprise to you if I recall that the High-Level Panel of course recommended that the UN should be prepared on a case-by-case basis to provide financing for African Union missions. I hope we are not giving up on that as a long-term objective, even though there are those who would rather the cup passed away from them and of course stayed with the EU or with individual countries like Britain.

  Lord Malloch-Brown: I completely support the objective because it is the ultimate burden sharing. It is a good deal for Britain to get as much as we can through this. Having been responsible in the UN ultimately for the fiduciary management of the UN, there are fairly hair-raising issues that we came across in our support to the AU's Darfur mission of financial control, management accountability, et cetera. There is a lot we need to get done to build up the confidence that we can indeed transfer money to a regional peacekeeping operation and yet still feel accountable to our financiers for how that money was spent, but I think it is very much part of the long-term strategy.

  Q25  Lord Anderson of Swansea: Mobility is crucial for both peacekeeping and responding to natural emergencies. To what extent would heavy lift and helicopters be part of this operation? Presumably it is the EU which currently would provide much of that. Is it proposed that that be transferred to the capability of Africa-Union countries?

  Lord Malloch-Brown: First, it is very important to separate heavy lift, which is, if you like, the strategic lift that brings troops in from out of theatre, from Ghana or wherever into the area where they are to peace keep, and that is not really a problem. Between us, the Brits, the Americans, the French, we kind of provide that and the real issue is the close tactical support which we are seeing becoming such an issue in African peace keeping, because, you are right, mobility is key and if you take Darfur—because in a sense it is the clearest expression of this but the Congo (DRC) is not dissimilar—you have 26,000 troops, if we ever get there, in an area the size of France. So, still, helicopter mobility is critical to effectiveness and at this point we have no helicopters for that operation. This is not a lack of goodwill on anybody's part; it is the Sudanese saying, "We do not want Western helicopters" and it is, secondly, a genuine global shortage of helicopters at the moment. We were debating last night how we have magnificently restored the production line for these important armoured vehicles in Afghanistan. Frankly, I think there should be some questions in the Lords about whether we should not be doing the same on helicopters because it is not just a British problem. There are not enough in Afghanistan, there are none for Darfur. I have been having some surreal conversations, because I took it upon myself to call every country where there was allegedly a surplus of helicopters to see whether I could persuade them to make them available for Darfur. First, I had to knock off the lists the ones we are already trying to head out to help in Afghanistan. Then it became surreal when people said, "We kicked the tyres and it has not flown for several years but maybe with a little mechanical help we could get it airborne again." It is just not what you want to hear when you have an operation which we had promised to get deployed in the next few months. I think this lift issue is a key thing. It is not that there is some great pool of European helicopters that we are applying to these operations.

  Q26  Lord Anderson of Swansea: Not even with the Ukraine and Russian surplus Antonovs?

  Lord Malloch-Brown: The Ukrainians are looking at what they can provide but they are quite heavily involved already. I hesitate to say where, but they already have several major deployments, so even they, who are the usual fallback, say they do not have spare capacity at the moment. They have the very, very, very big ones but they do not have those able to do this quick movement of people and support that we need.

  Q27  Lord Crickhowell: It is a very depressing comment you make. Some of us were asking these questions that you say we should be asking of the minister two years ago and we are not really much further down the road than we were then.

  Lord Malloch-Brown: Mine, just for clarity, is a slightly different question because I do not see this as a British problem, I see it as a European and a global problem that we need to address.

  Q28  Chairman: This may be something on which we need to come back within the discussions within the European Defence Agency and elsewhere, because it does seem to me that we should take that up with MoD ministers in due course. Mr Manuel has already covered the mechanisms which exist to ensure the implementation of the summit conference but I wonder whether you or Mr Manuel would like to say something about what particular role you see for the United Kingdom in implementing the strategy and action plan.

  Mr Manuel: This is a question we are actively debating now. Having achieved four new action plans and got the Millennium Development Goals and peace and security on the table, which we are very pleased about, the question is just how to follow up. At the moment, it seems to me, there are two options, one of which is that we, having got them on the table, encourage other people to take ownership for them and to take them forward. That might be the most productive way to achieve momentum. The other would be to put our own hand up and say, "Yes, fine, we will take an active lead on working with this action plan" and that is the debate that we are currently having as to what is the most effective way forward to do this.

Chairman: It may well be that the Committee would want to come back and talk to you again about that at a later date. I wonder if we could go on. Lord Tomlinson.

  Q29  Lord Tomlinson: Minister, it appears that not all EU Member States are fulfilling the commitments that they have signed up to concerning the financing of development, including the long-term allocation of 0.7% of GNI to ODA. What is your opinion of how far the other EU Member States are on track to meet their obligations? What pressure are we exercising here on those that we perceive to be potential backsliders?

  Lord Malloch-Brown: Let me first, if I may Lord Tomlinson, give you the factual answer and then a little interpretive analysis. In general, last year was quite good because the Commission's report in May showed that for the years 2005-06 the EU exceeded the target it agreed to in 2002, which required it to have got EU-ODA to an average of 0.39% by 2006, but with two significant buts: (i) the debt relief for Nigeria and Iraq was a significant surge in this figures and (ii) three Member States, Greece, Italy and Portugal, missed their agreed targets for 2006. It is not as good as the superficial figures would suggest. In fact, we would expect overall numbers to be down in 2007 because of the big debt relief numbers phasing out of the numbers. For some years British ministers have been pressing the quality of aid issues, that we have to make sure that as debt relief phases down new, fresh monies phase in, which is a lot more expensive money than debt relief and therefore a lot harder to force out of the political systems. Two points: one obviously Britain is trying to lead by example. It has a pretty good track record. DFID ministers are quite rightly embarrassed by their success in the spending round and coyer about it than you might expect them to be because they have won very significant increases which are consistent with the commitments made at Gleneagles and which will keep us on track to make the 0.56% and then the 0.7% by 2013. Secondly, very important is what the Prime Minister did in his visit to New York by declaring an MDG emergency. He is personally very seized, as the two secretaries of state are, with this view that somehow some of the focus on poverty reduction, aid levels has been lost since Gleneagles. Partly it is climate change—a nice problem to have but another terribly important global priority muscles its way to the front of the discussion and it has had the unintended consequence of perhaps putting poverty back a bit more in the shadows. We feel that through pushing for a summit level discussion of MDG progress next summer at the UN, we will put the political spotlight back on this and tee up a G8 recommitment to this and a European recommitment and, also, with all the new oil wealth created, try to get some new donors to play a much more active role on this. I think the honest answer is we are not doing as well as we want but we are in a hugely improved position than we were a few years ago.

  Q30  Lord Tomlinson: In order to meet the goal of 2013, there is an accelerating demand as you approach 2013. If at the relative early stages of this process we are backsliding, is the problem not going to get significantly worse in the run-up to 2013?

  Lord Malloch-Brown: Again, I think that is why the Prime Minister has decided to make a real political push on this over the next year essentially. I think this is why he called it an MDG emergency because I think he accepts the logic of your point, that, unless we make a push now with spending plans tending to have two or three year trajectories and with possibly economic conditions in the West getting harder and tighter, if we do not kind of put our foot down and make a fuss and push, we will indeed face a growing gap between commitments and what has been put on the table.

  Q31  Chairman: Mr Manuel, would you like to add anything on this particular point?

  Mr Manuel: There is a real political challenge out there. The challenge is political and for all our colleagues to meet what they promised. The fact that the UK has, is making a big difference. I was in Tokyo and they said to me, "Yes, we noticed, the UK is now the second largest bilateral donor in the world. We used to be that and we are now fifth." That has a real impact. Leading by example really does make a difference.

  Q32  Lord Tomlinson: You immediately demanded that they told you what they were doing to restore their second position.

  Mr Manuel: Absolutely. Of course. I was there talking to them 14 months in advance of them presiding over the G8, which was trying to encourage them in that process.

  Q33  Baroness Symons of Vernham Dean: Minister, do we have the capacity to spend it properly? It is all very well getting the money, but one of the things I found really depressing when I was a minister was going out to the UN and talking about money that we were putting into projects and, frankly, feeling somewhat less than confident that chaps and, indeed, chapesses on the other side of the table really knew what the projects were in which they should be investing. And I thought we had a lot more expertise at home than they did there.

  Lord Malloch-Brown: You know, that is one more reason why I regret that you would never come and talk to me when you came to the UN!

  Q34  Baroness Symons of Vernham Dean: A good side-stepping answer, but ...

  Lord Malloch-Brown: Let me just say that obviously part of the DFID strategy—and I am again going to turn to Marcus, but as there is a political level to it let me address it first—is to rely growingly on multilateral vehicles for financing—which is not just the UN, it is the World Bank and the other development banks as well—and it is to rely on growing amounts of direct budget support to countries which we feel meet the conditions of governance and judiciary, et cetera, et cetera, et cetera. In that sense, we can ramp up spending through tested vehicles and I think we want to do that wherever we prudently can. I would make the plea for the multilateral that, from the recipient's point of view, to get a single seamless funding strategy for your health sector or education sector rather than a DFID bit and a French bit and an American bit is a hugely important improvement in good donorship, because it allows them a huge reduction in the transaction costs and the competing priorities of different donors, et cetera, et cetera. I think you will find that there is a great support for these multilateral mechanisms amongst the countries on the other end, that they like to make this work. But to take the UN point: the Prime Minister was on a panel that the Secretary General organised last year to look at how to make the UN perform better at the country level, because we recognised on the UN side that if we were to be the home for more funds we had to perform better; we had to raise our game. I think that has to happen. DFID, if I might say so, having been on the other end, is a hugely competent department. It is viewed as the best bilateral development agency by those of us at the multilateral end of things but obviously it is going to have a challenge of ramping up its expenditure at a very rapid rate. I am sure all of you there are kind of making sure you do it without accidents en route.

  Mr Manuel: In terms of where DFID is, one of the things the UK has been leading on has been looking at the relative effectiveness of different multilaterals because using extra aid money well is incredibly important. We have been doing a process of how do you rank the EC, the World Bank versus the African Development Bank versus UNDP versus the Global Health Fund, et cetera, et cetera, and that is being used now for ministers who are precisely discussing these issues in DFID, with the settlement as to how the money should be exactly used across the different spending processes so that we are making sure that we are using it most effectively on the multilateral side. One of the issues also within DFID is: What should the balance be between the multilateral and the bilateral? That will again take into account what the relative effectiveness and efficiency is, and country offices have come back to the ministers saying, "If we had more money, this is the sort of thing we would want to spend it on and this is how we could do it." Having worked both for developing country governments and also for the UK and watched different country programmes, I have no doubt that we could use the money really well. We are sitting on projects that we are having to turn down. The worst was when we had to halve what we were going to give for malarial bed nets in one country because we just did not have enough money. There are projects that clearly just need to be done and that is just one example, but the infrastructure needs or anything else, there are so many different things that could be done and I think there are now much better international structures for managing that.

  Chairman: We are coming up against time constraints but I know I have supplementaries from both Lord Crickhowell and Lord Lea.

  Q35  Lord Crickhowell: Clearly, as the biggest donor with an efficient department we are quite good at selecting where we want the money to go and the projects. I am interested in the audit process. I imagine we are also quite good at making sure that our money is being spent, having got it to projects, where it should be spent. The question I have, because this is a Committee dealing with the EU, is whether EU aid is being effectively audited so that we know that it is going to where it should be going and it is being spent where we thought it was going to be spent.

  Mr Manuel: For us the biggest and best way of monitoring and evaluating aid is being out in the field to see what is happening. I think the biggest change that we have pressed for and we are pleased to see in terms of the EC is that there is now much more decentralisation of their aid management processes. In 2002 only 24% of the European Development Fund was being managed by delegations and now we have revised that to 82%. In that sense, you can have auditing processes but what you want before the auditing processes is the people who are going to manage it who are designing it and working on it. If you have those people in Brussels, if you get them out of Brussels and you put them in the country, from our view that is by far the best way of taking it forward. There are, in addition, a range of audit processes that continue and are being strengthened and worked on. We recognise there has been a real improvement in the effectiveness of EC aid and that is our perception as to how we measure it at a global level and also what we talk about when we work with delegations in the field and we see what is happening. Could more be done? Yes, I am sure. That is why we will continue to press for better auditing and better monitoring processes.

  Q36  Lord Lea of Crondall: Minister, every report we have done—and we have done a succession of reports on the effectiveness of EU aid—reaches one conclusion among others, that you cannot have this debate going on endlessly about bilateral versus multilateral because in Burundi you just cannot have 28 countries telling you different ways of doing auditing. You really have to have EU policies. I am not posing EU versus the UN versus the World Bank or anything like that, but you certainly need a very strong multilateral element. To say that we are more effective than doing it through the EU is a false dichotomy but another example of where the EU will have a bigger role in the future. Going back to your remark, is it not the case that when you said that the climate change and the Stern Review and so on have started to leap up the agenda and, if we are not careful, will displace MDGs that is partly the fact that the MDGs are failing in Africa? I think on the last statistics it is going to be 30 years before most of sub-Saharan Africa, on present trends, will get there and some GDP per head of growth rates—per head is the obvious statistic we need—are only 1% or something. Therefore, is it not the case that, far from saying that sustainable development and climate change is somehow edging something off the agenda, given the importance of the CO2 question—and you and I were at the same discussion yesterday with Professor Stern—it is essential that we integrate the climate change/sustainability agenda and population growth and the whole problem, otherwise Africa will have a population bigger than India or China, and, as somebody said in Ghana, "They'll all come here, if we don't do something over there." So is it not essential to include in our thinking what is essential in the next 20 years for African nations themselves as well as for us? We have to put a huge amount of money into the carbon tax and this has to be thought through quite urgently now.

  Lord Malloch-Brown: I completely agree. I think the difficulty is that at both ends public opinions are a little too quick to look at these as alternatives rather than the two sides of the same coin. There is a little bit in Western public opinion and we are preoccupied with climate change: we see it as a very Western story about our own low carbon economy. To the extent we see it having a developing country dimension, it is India and China belching noxious gases into the air but it is not viewed as an African issue, and on the Africa side that is understood to mean, "Ah, typical rich man's problem. You are no longer thinking about Africa." But, in fact, as Nick Stern was arguing in front of both of us yesterday, it has a huge African dimension. It may not be an African-made problem but it is going to be a problem with an African consequence in terms of water, agricultural productivity, et cetera. So, yes, we need to reattach to the word "development" the word which has come detached in recent years "sustainable", sustainable development, because we need a development model which has a vision of what are the useable sustainable water and agricultural strategies available to Africa. I agree, it should not be an either or, it is both.

  Chairman: I will move on now to a question on Darfur. We have two or three other questions to which we may have a chance to return but there is a time constraint. Lord Hannay.

  Q37  Lord Hannay of Chiswick: There are two things I would like to ask you about Darfur, Minister. First of all, how confident are we that the resolution which has now been adopted by unanimity for a deployment there of a hybrid force will take place broadly as planned and on schedule and will it work when it has been deployed? The second question is what can Britain and the EU do to bring some influence to bear on the rebel groups who have not been so far prepared to participate in Serte conference and so on? Is there any way they can be influenced so that the Sudanese Government is not left sitting looking as if it is the peacemaker when in fact it has been the cause of the problem all along?

  Lord Malloch-Brown: Let me just say, if I may that obviously the two are very interrelated because the resolution 1769 very rightly tackled all three fronts. It said that it has to be a political process; there has to be peace keeping to support principally the outcome of that political process; and there must be an economic recovery process as well. I think that was one of the reasons this was a much more successful resolution than the earlier one. The second thing is it pulled punches on certain enforcement issues in order to make sure that we got China and the Arab and African members of the Council to join us in a 15 to zero outcome, because we felt that was critical to showing the Sudanese community that the international community was united and would not blink. Where we stand is that on troop deployment it is falling behind schedule. The AU and UN agreed on a force composition which was largely but not exclusively African and would include such things as a Swedish/Norwegian engineering troop, Nepalese and Thai battalions and some other critical components to its effectiveness. There are two obstacles to its deployment at this stage. One is that the Sudanese are still fighting over the non-African components of it, and, second, we have not found the helicopters. So the Secretary General, when he complains about this distributes his complaints probably around those two objectives: one, Sudanese problem; one, problem at the international community. We are pushing to try to overcome both issues. I have talked to the Sudanese several times, including to President Bashir, about the force composition issue and tried to get them down off their high horse on this and to say that this force meets the requirement of the resolution which is a predominantly African character, et cetera, but we are not there yet and we really feel we cannot compromise any more and that the UN should not compromise any more because otherwise Bashir will feel that he can get away with whatever he wants on these things. On the Serte talks, by contrast the government has done rather well. It showed up at a very senior level, it offered a ceasefire of the rebel groups.

  Q38  Chairman: The Sudanese government.

  Lord Malloch-Brown: The Sudanese government. Their delegation was led by their main Darfur political person and presidential aide called Nafi Ali Nafi. They offered a ceasefire to the rebel groups who were also at the talks. But it was contingent on not being shot at, the fighting not spreading into Kurdufan, and did not cover the groups who were not at the talks. The problem was that, even if this was an important progress on the Government's side, the rebels behaved dismally and the main groups stayed out with completely impossible demands of saying they would only come if there was peace first, that the UN had managed to establish security across the country. As a consequence of that, the UN and AU have sent delegations of their negotiators to Juba and somewhere else—I forget where—where the rebels are to try to persuade them to come into the talks, and we are deliberately avoiding kind of letting the train leave the station and giving the rebels a last chance to get on the train but it is the view of the Prime Minister and the Foreign Secretary that if the rebels continue to hold out they would be as liable to be sanctioned in some way as the government. There has to be even-handed pressure on both sides. We are very worried about the situation. There is more displacement going on. There has been violence in the camps and now, overnight, the Sudanese government appears to have expelled the senior UN humanitarian official in Southern Darfur. As always with this, it is a step forward or maybe two steps forward and then a step back. The situation is not great.

  Q39  Chairman: Thank you very much indeed. Minister, I know you have to be away by noon so I would like to thank you very much indeed. I am sorry we have not had a chance to ask you all the questions that we had hoped to. If there are any points that you feel we could have covered and we have not and you wanted to write to us, we would obviously appreciate it, but we are very grateful to you and we look forward to seeing you on a number of future occasions.

  Lord Malloch-Brown: I appreciate it.

  Chairman: Mr Manuel, we are also very pleased to have DFID officials in front of us and we are hoping to see DFID officials again later in November to discuss other matters with them. We are very glad we are fulfilling all three of our responsibilities. Thank you very much indeed.





 
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