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Press release
Thursday 3 February 2011
For immediate use
Speech to the London School of Economics - Harman
Growing the Aid Budget at a time of Deficit Reduction: Moral Imperative and Political Challenge
It  is a pleasure to be here tonight at the London School of Economics  where great work on international development is being done and where so  many students from all over the world come to study.
And I want  to say a particular thank you to Paul Kelly and to the British  Government at LSE initiative for hosting this event tonight. This  initiative was established only recently, following the general  election. It is good to know that it’s not just us who are keeping a  hawk eye on the government! We will compare notes. And scrutiny is  exactly what is needed when we see only today that £2m of DFID money is  being used to pay for the Pope’s state visit last year. We are demanding  that the FCO pay it back to DFID.
I’m delighted to be talking to you tonight in my new role as Shadow Secretary of State for International Developm  ent.
Overseas Aid target. Labour’s longstanding commitment – Tories’ recent conversion.
My  constituency – of Camberwell and Peckham – has the biggest African  diaspora anywhere in the UK – so development is always a major  constituency issue for me. But, the Labour party’s commitment to playing  our part in tackling poverty in the developing countries through  overseas aid is a historic one, at the heart of Labour’s values. As long  ago as 1969 the Labour party was committed to the 0.7% target.
When  in 1969 the Pearson Commission, established under the initiative of the  World Bank, proposed, for the first time, a target for Official  Development Assistance to reach 0 .7% of GNP, the Labour Party backed  that 0.7% target and put it in our 1970 manifesto. But that commitment  was not matched by the Tories. Quite the opposite and when the Tories  were in Government, ODA as a percentage of GNI fell by half between 1979  and 1997 – from 0.51% to 0.26%.
We came back into government in 1997 on a manifesto which committed us to  reverse this decline and indeed we did – trebling aid and increasing it  from 0.26% to 0.56%. And in 2004, in the run-up to the Gleneagles  summit, Prime Minister Tony Blair and Gordon Brown put a timeframe on  our 0.7% pledge, committing to reaching it by 2013.
While the  Liberal Party, and the SDP, and then the Lib Dems, had traditionally  supported the 0.7%, pledge, the Conservative Party cannot say the same.  It was only later, in 2005, they matched our pledge, by signing up to  the 2013 deadline which they then put in their 2010 General Election  Manifesto. The Coalition Agreement reiterated the pledge along with a  commitment to legislate to make it a binding legal obligation on  Government.
So while this is a longstanding firm commitment for  us - and one we have stuck to through good times and bad - it is a  recent commitment for the Tory Party and one which, now in Government,  they are taking   forward at the same time as they are embarking on a programme of public spending  cuts which aim to see the deficit eliminated by 2015. They have  ring-fenced the DFID budget at the same time as they are making every  “unprotected” government department cut on average 19%.
That  position – setting the DFID budget apart from the process of deficit  reduction - has been emphatically reaffirmed on many occasions by the  Prime Minister and the International Development Secretary, Andrew  Mitchell. And though we, of course, remain committed to that pledge, it  is controversial within the Tory Party and has been publicly criticised  by Tory backbenchers.
Indeed even before they got into  Government and before the scale of their deficit reduction became clear,  of the Tory candidates in their 220 most winnable seats showed that 96%  thought the aid budget should not be protected, let alone increased.  70% of Tory party members surveyed described the rise in the aid budget  as “the   wrong decision”. That hostility is reinforced by campaigns and editorials in  Tory-supporting newspapers. “No time for posturing on international  development” says the Daily Mail. The Tory aid pledge is “ill-conceived,  gesture politics” says the Sun
With the Tory Party commitment to  the 0.7%/2013 pledge being fragile, with the opposition from within  their own ranks so virulent, with growing public anger about the effect  of the cuts on domestic priorities, alongside a significant public  belief that “charity begins at home”, no-one should take it for granted  that the Tories will inevitably deliver on their pledge. The fact that  the two parties of the Coalition Government and the official opposition  all agree on this target should not lull anyone into a false sense of  security that its achievement is a foregone conclusion.
So, we  cannot simply wait for the pledge to be honoured, we must remake our  arguments for it. It is time for “a Keep the 0.7%/2013 pro  mise” campaign and we are launching it in a few weeks. I am sure that we can  look to young people, the churches, the aid agencies and our diaspora  communities to support such a campaign – and indeed to all those who did  so much to campaign for the original promise and so strongly backed the  actions our Government took to increase aid and drop debt.
Our  strongest argument is surely that, as the 20th wealthiest country in the  world, (out of 182) and the 6th biggest economy we cannot and should  not stand by when elsewhere in the world people are starving and dying  of preventable disease when we can stop that happening.
For  all the inequality that still exits in our country and for all that  some people in this country still have to struggle – the life of those  in poverty in the developing world is a world away – like the woman I  met in India who proudly showed me the baby that she had just given  birth to on an earth floor. As Clare Short, our first International  Development Secretary said in the forward to her first White paper in  1997 “It is our duty to care about other people, in particular those  less well off than ourselves. We all have a moral duty to reach out to  the poor and needy.”
So our starting point is that of our common  humanity. This is not just a matter for the generosity of individuals –  who contribute to charities and through the money that migrants to this  country send through remittances to their country of origin  . It is also the role of Government. It is right that the Government should  embody the values and match the efforts of its people.
The  capacity for public generosity is evident in the high level of  commitment to organisations such as Oxfam and Christian Aid and was  clearly shown, once again, after the Haiti earthquake and the Pakistan  floods. When people are contributing out of their own personal income  they do not expect their Government to stand by and do nothing. And our  Government taking a leading role on development aid, as Tony Blair and  Gordon Brown did in the run up to the Gleneagles summit, ensured that  other countries increased their aid and that more therefore became  available to tackle poverty.
Government aid can, in a way that  charitable donations can’t, support long-term infrastructure projects  which are vital to building the financial independence which ultimately  lessens reliance on aid.
Alongside the moral case for development aid it is certa  inly the case that it is also in our own interest.
Aid fosters the  economic growth that enlarges the world market in which we trade –  underdevelopment is a restraint on the global economy.
Poverty fosters conflict which spills over into regional and global insecurity.
Poverty  drives global migration as people feel they have to flee their home to  have any chance of a better future for themselves and their family.
Development  Aid plays its part in helping protect against the impact of climate  change and prevents people losing their homes and livelihoods and  becoming refugees who have to flee.
A good relationship of  mutual trust and respect between a donor and recipient country can and  does become a productive trading relationship as the country moves out  of poverty and becomes a “middle income” country.
Our  Government’s aid is important not just to encourage other countries to  do the same but because other countries have aid budge  ts – if we pull back on aid, our influence will be commensurately less.
Above  all, development aid that alleviates poverty is a vital part of moving  towards global equality and tackling the unacceptable inequality which  lies between and within countries. Global inequality threatens economic  and social stability – as was pointed out by the IMF’s managing director  and has been highlighted at the World Economic Forum in Davos which has  cited inequality as one of their top five issues for 2011.
Despite  the consensus across the 3 main parties on our 0.7%/2013 aid target,  the protests against it have grown louder. And we need to challenge  those arguments.
Some argue that now is not the time to increase  international aid because the world is struggling to recover from the  global financial crisis. But that is the very reason that this is not  the moment to step back from our aid commitments. The financial crisis,  rising food and fuel prices are hitting the develop  ing world hard. We must not let our recovery from the global financial  crisis be the justification to precipitate a crisis of even greater need  in the developing world.
It is not the case that “aid doesn’t  work”. Bill and Melinda Gates campaign “Living Proof” and organisations  like ONE have shown that aid helped African countries put 34 million  children through school between 1999 and 2006 and helped halve malarial  death rates in countries like Rwanda and Ethiopia.
It is not the  case that aid traps countries in dependency and prevents them  establishing their own growth and financial independence. Historically,  one of the countries where our aid has played a vital part in poverty  reduction is India which has now moved from being a poor country to a  “middle income” economy. Far from fostering dependence, aid helps them  develop their infrastructure and the institutions which are the building  blocks for financial independence and it helps countries resolve conflicts which are an obstacle to prosperity.
Nor is it the case  that the problems that aid seeks to alleviate are never-ending. Aid has  helped not just reduce the incidence of small pox but eradicate it  completely. We need now to do the same with polio. Where aid helps  countries move out of poverty it lessens and then ends their need for  aid.
Nor do we accept the argument that our focus is only the  money that goes into the aid budget, paying no attention to what it  achieves. We have always argued – as Clare Short did in 1999 that “we  need to turn the development efforts of the international community from  an obsession with inputs and generalised rhetoric about poverty to a  clear focus on outputs and year on year measurement of effectiveness in  reducing poverty against our agreed targets in each and every country.”
We  do not disagree with those who point out that corruption in trade or  aid is a problem. It is a crime not just against those for whom   the aid is destined but also against those who give the aid – UK taxpayers.  That is why our aid programme places a great emphasis on transparency  and accountability in aid. And why, when we can’t trust the capacity of  the Government, we give money directly to those on the ground. And we  help back up the police and criminal justice agencies in countries, like  Nigeria, who are battling against fraud and corruption. And that is why  we are disappointed and angry that the government has revealed this  week that it is again delaying the implementation of the Bribery Act  which we passed – with their support – when we were in Government and  which was due to come into force in October last year.
Despite  the government’s commitment to UK aid reaching 0.7% of GNI by 2013, the  Spending Review Statement of last October froze the aid budget as a  percentage of GNI for the next 2 years.
The cost of this 2 year freeze – instead of continuing the upward trend we establish  ed – is £2.2 billion which would otherwise have been available in development aid.
The loss of this aid is not insignificant, for example that £2.2 billion would pay for:
50 million children to be vaccinated – helping to protecting them from five diseases including diphtheria.
200 million mosquito nets which could help save the lives of over half a million children and protect many more from illness.
The treatment of all children with pneumonia in the world's poorest countries which could save 600,000 children’s lives a year.
Helping 8 million school children in Africa.
Now that will not happen.
Abandoning  the steady progress towards the 2013 target, instead of building on the  progress that was made when we were in Government will require a big  jump in the aid budget in 2 years time. Following the 2 year aid freeze,  to meet their promised target by 2013, they will need to boost the aid  budget by 31% in a single year – an inc  rease of approximately £3billion – in 2013.
It is all the more  important, therefore, that the Government introduce legislation for a  legally binding obligation of 0.7% by 2013 – as they promised. The Bill  to enact this was drafted when we were in Government and has been  through pre-legislative scrutiny. The government have a long  parliamentary session to bring in this short, but important, Bill which  has cross-party agreement. Bringing in this legislation would provide  reassurance and put beyond doubt that the 0.7%/2013 promise will be  delivered. By the same token, the Government’s failure to bring it  forward only fuels concern they want to leave open the option to fall  short of the 0.7% or delay the 2013 target date and the 31% budget  increase that it will require.
The aid agencies, churches and the  diaspora communities are all calling for the introduction of the Bill  and we are backing them in that demand. If the Government fails to bring  it forward in this Parliamentary Session it will no doubt be the most obvious choice for a  Private Members Bill to be brought forward by a backbencher at the start  of the next session.
Although I have focussed my comments today  on our concern that the 0.7% / 2013 pledge must be honoured, there is  no doubt that aid is only one of the tools that we must use to make the  world less unequal.
We must also tackle unfair trade and reform  unfair tax systems. And our task will not just be what the UK does but  the UK playing its role in leading international action to make the  world fairer.
Tackling global inequality is not about charity – its about rights. It’s not about philanthropy – its about justice.
For  our part, Labour’s Shadow DFID team, myself, Mark Lazarowicz MP,  Rushanara Ali MP, and Baroness Glenys Kinnock, we will do everthing we  can to make sure that the government keeps faith with the 0.7/2013  promise which we made and they matched.
They must kee  p faith with the promise they made to the British people at the General Election  and Britain must keep faith with our moral duty to the poor of the  world.
Ends