International Development White Paper

Mr Deputy Speaker, since my statement to the House on 18 July, the Government have consulted extensively to secure evidence and ideas on international development that will transform our world. I pay tribute to the team of 15 officials who have worked night and day and most of their weekends for nearly six months on this, under the leadership of Nick Dyer and Annabel Gerry, and to Geraldine Bedell and the Richard Curtis team who have helped with the shortened version of the international development White Paper.

We drew on the sharpest and most expert minds from non-governmental organisations, academia, business, nearly 50 Governments around the world, and all political parties in the House. I particularly wish to thank colleagues across the House for their contributions to shaping this White Paper. This is an area of policy that does not belong either to the Conservative party or to Labour; it is a British policy and commitment.

As the whole House knows, development has helped transform the lives of billions of people. The UK can be immensely proud of our distinct contribution to this incredible success story. Two centuries ago, three quarters of the world lived in extreme poverty. When I was born, around half still did. By 2015, when the world met the millennium development goals, the proportion of a much larger global population had fallen to just 12%. Evidence shows that development works, but it also shows that we now need to think about how we do development.

After decades of hard-won but persistent progress, we live in a world facing a daunting set of challenges: a world that is seeing rising poverty, where progress is in retreat; a world where the UN sustainable development goals are nearly all off track for 2030; a world where faith in multilateral institutions is fading despite co-operation being desperately needed; a world facing a climate crisis, growing conflict and the prospect of further pandemics; a contested world, where unity and solidarity are increasingly important, yet ever more difficult to achieve. This White Paper sets out a road map to 2030, charting the path the UK must take to galvanise global attention and lead by example in the fight to end extreme poverty, tackle climate change and address biodiversity loss.

When it comes to international development, finance matters. The Government have been clear on our intention to return to 0.7% of GNI when the fiscal circumstances permit, but the White Paper also makes it clear that we will not achieve the sustainable development goals through business-as-usual official development assistance funding. We need a quantum leap in financing and investing, which only the private sector can provide. The private sector is an essential engine of development, giving communities the building blocks for economic independence. Self-sufficiency is development’s essential purpose, and our work with the UK private sector delivers back for taxpayers many times over.

British Investment International, formerly known as CDC, is already a core part of the Government’s offer on international development. It has an impressive track record, and now will go further and faster, investing in the hardest places. As was suggested by the International Development Committee, to whom I pay tribute, BII will aim to make more than half of its investments in the poorest and most fragile countries by 2030, while also enhancing its transparency, cementing its place as a world leader.

The White Paper presents our vision for much-needed reform of the international financial system, mobilising greater finance from the private sector and scaling up the lending capacity of the international financial institutions. The UK has pioneered the use of climate-resilient debt clauses, enabling vulnerable countries to hold off on debt repayments following an extreme weather event. Together with Prime Minister Mia Mottley and other supporters of the Bridgetown initiative, we are driving reforms of the multilateral development banks so that they can scale up financing for low and middle-income countries. We will also work with institutional investors such as pension funds to plug the SDG’s $3.9 trillion annual financing gap.

International development and climate action are inseparable. Climate change and nature loss are being felt everywhere, and their impact will only intensify over the next decade. It will be most acute in developing countries, reversing fragile development gains, increasing food prices and compounding insecurity and instability. To meet that challenge, we must mobilise more—and more reliable—finance. We will deliver on our pledge to provide £11.6 billion in international climate finance in the five years up to 2026. We will ensure a balance between adaptation and mitigation financing and provide at least £3 billion to protect and restore nature.

Britain’s work on women and girls is paramount. We cannot understand development unless we see it through the eyes of girls and women. Increasing access to education, empowering women so that they can decide for themselves whether and when they have children, and ending sexual violence are central to economic opportunity and growth. Those rights are universal and should be non-negotiable. The White Paper extends and reinvigorates that work. We will use research and diplomacy to end the preventable deaths of mothers, babies and children. We will deploy policy and investment to defend and advance sexual and reproductive health and rights.

Effective development is rooted in respectful partnerships of equals, but the Government will continue to stand up for our values. We know that individual rights, the rule of law and strong institutions are essential to achieving sustainable development. Take for example the work of the Westminster Foundation for Democracy, to which Members of Parliament make such a substantial contribution. It is the UK’s leading champion of democracy globally. We are increasing our support for its work so that we can support fairer, more inclusive and more accountable democratic systems around the world.

We must also find better ways to anticipate and prevent humanitarian crises and the conflicts that often drive them. Conflict and instability are on the rise and hold back development: by 2030 up to two thirds of the world’s poor will live in fragile and conflict-affected contexts. Humanitarian needs are at their highest since 1945, with twice as many people needing assistance compared with five years ago. The resulting devastation is spreading across affected regions, as seen at present in the Sahel and the middle east. The tragic events in Israel and Gaza bring home the humanitarian costs of conflict and violence, with women and children most directly affected.

I am therefore pleased to announce today that we will create a fund dedicating up to 15% of our bilateral humanitarian spend to support resilience and adaptation alongside our delivery of humanitarian relief, which we expect to amount to £1 billion next year. When I visited families in east Africa suffering the worst drought in 40 years, it was clear that the current focus on immediate relief comes at the cost of early thinking and building in resilience and adaptation for the future. The new fund will respond directly to that specific challenge.

Innovation is at the heart of our efforts to transform lives through sustainable growth. The wondrous creativity of science and technology can address problems that money alone will never solve. Only by sharing research and innovating together can we make the breakthroughs that our world needs. The world has never been so intimately connected, nor our fates so closely entwined. Although we can rightly be proud of all we have done to deliver international development, the UK and our global partners must redouble our efforts given the challenges that we faced to achieve those goals.

We asked in the White Paper what the UK could do. We were told to make a new development offer based on mutual respect, powered by finance at scale, and supported by a more responsive international system. We have listened: that is what the White Paper will deliver. The Prime Minister has launched the White Paper to do development more effectively and differently, and yesterday’s global food security summit was an example of that. I commend this statement to the House.

I thank the Minister for his statement, for advance sight of the White Paper, and for our frequent conversations about it since I was appointed to my post.

The catastrophe in Gaza is a strong reminder not just of the need for humanitarian assistance and expertise, but of the heavy responsibility that we all face to play our part in the world through the painstaking hard yards of diplomacy, and of the crucial role of development in providing the hope that breathes life into any peace process. I thank the Minister for his personal efforts to bring some energy and direction to this agenda again. In fact, I would go as far as saying that I do not believe that the House would be in a position to consider a new White Paper were he not in post—a view that I think is shared by many on the Opposition Benches.

However, to have an honest conversation about where we are heading, we need a frank assessment of where we have been. There was the mindless vandalism of the decision to take one of our most respected, influential contributions to the world—the partnerships, thought leadership and innovation—and trash the lot to deflect from a domestic crisis. There was the former Prime Minister who, shamed by a young footballer into abandoning his decision to allow children to go hungry in a pandemic, pulled the rug out from under the poorest people in the poorest countries. Make no mistake: that cost lives, but it also cost Britain its reputation as a gold-standard leader in the field. As the Minister said then, it was

“a strategic mistake with deadly consequences.”—[Official Report, 2 March 2021; Vol. 690, c. 118.]

He knows that I admire his determination to speak out against those decisions, and I know that he does not shy away from acknowledging the damage that they have done.

Although the former Prime Minister may be gone, his second in command, whose signature is scrawled across those documents, now sits in No. 10. His short words at the start of the White Paper leave me in no doubt that, although his posture has changed, his position has not. Frankly, asking the man who signed off the devastation of this vital agenda, only to breathe new life into it again, is like calling out the arsonist to put out the fire. For much of the agenda that the Minister set out today, he will have our support. The question is whether he will have that of his Prime Minister.

I thank the hon. Lady for her co-operation and her kind personal remarks. She will know that, in order to get buy-in from our friends and experts around the world and from the civil service, the White Paper needed to run to 2030. In the unlikely event that my party is not in government after the next election, any other Government would, I hope, build on it to make it a huge success.

I note the hon. Lady’s remarks about the merger of DFID into the Foreign Office. My task, which the Prime Minister gave me, was to try to make the merger work. That means there needs to be an ability within Government to focus on global public goods and delivering them into the 2030s. That is what I am trying to do. She rightly asks how we get the balance right between multilateralism and bilateral funding. The answer is that we use either, depending on what delivers for our taxpayers and what delivers results on the ground. That is the yardstick; there is no ideology. We go with what works and what is best.

The hon. Lady pointed out the increase in spending in other Departments of ODA money and the development budget. It is true that that has gone up, but every penny is spent within the rules laid down by the OECD Development Assistance Committee. We brought in the innovation of the ODA star chamber in Whitehall, co-chaired by the Development Minister and the Chief Secretary to the Treasury. There is already clear evidence of that ratcheting up the quality of ODA, as the hon. Lady would wish.

The hon. Lady talked about access to finance for poor countries, which is incredibly important. Mitigation projects in middle-income countries are easy by contrast; when it comes to poor countries and adaptation, it is much more difficult. She will see the emphasis in the White Paper on accepting the advice from the Select Committee on increasing the amount that British International Investment does in poor countries. She will notice, too, the emphasis on social protection, and the fact that 62% of the budget will now be spent in fragile and conflict states.

I welcome the White Paper and its focus on using ODA to leverage private sector investment in the way that my right hon. Friend has described. Whether the MENTARI programme for energy transition in Indonesia or the guarantees that the UK provides to the African Development Bank on climate finance, does he agree that it is the combination of aid and British business that is a real force multiplier in this area?

My right hon. Friend knows a great deal about this area from his past ministerial posts, and he is absolutely right. The key trick is to secure the status money, whether provided by the multilateral banks or the development finance institutions, and to marry it with the private sector and the $60 trillion of pension funds out there. If we can marry the two, de-risk through using that status money, and show pension managers what the real risk and the scale of the returns are, we can achieve the holy grail of getting enormous amounts of more money into climate finance, mitigation and adaptation, which is what the Bridgetown agenda is all about.

I call the Scottish National party spokesperson.

The Minister has consulted widely, and he truly has a refreshingly collaborative cross-party approach. We in the SNP broadly welcome the tone of it and some of the detail around mutual respect, listening to local partners, the recognition of civil society and the potential role of diaspora communities. However, the Minister will not be surprised that we want him to go further, and I will list a few of the things I would like to hear more about. SNP colleagues will have more to add on that.

The first and probably the most important thing is the fact that there is no concrete recommitment to 0.7%, as recommended by the International Development Committee. In the entire document of 154 pages, there is one mention of 0.7%, where the White Paper states that the Government will recommit to it

“once the fiscal situation allows.”

If the fiscal situation currently allows for tax cuts, I would say that that moment has arrived. The new Foreign Secretary was instrumental in getting us to 0.7% in the first place, so I hope that he and the Minister will expedite that intention.

Secondly, there is no recommitment to the restoration of programmes that have been cut since 2021, including in Yemen, Syria, Somalia and South Sudan, all of which had cuts of more than 50%, taking several million pounds of their support away. Those nations are all suffering significant repercussions from the climate crisis and the fallout from conflict.

Although I am pleased that women and girls and gender equality are to be put at the centre of bilateral funding, stakeholders have said to me this morning that it is short of the transformative approach espoused by others, including the Scottish Government. Let us not forget that the cuts I just mentioned extended to girls’ education programmes, which is estimated to have resulted in 700,000 fewer girls receiving an education. That is one of the greatest scandals of our lifetime.

I thank the hon. Lady for her party’s collaboration and for the tone and content of what she said. She mentioned that the 0.7% figure does not feature extensively in the White Paper, but the White Paper is about doing development in a different way. We are ratcheting in, through these new mechanisms, billions and billions of pounds, which makes a huge difference. In many ways, it dwarfs the difference between the 0.51% or 0.52% that we are spending at the moment, and the 0.7%. She will have seen at the time of the autumn statement last year that the Treasury estimate of when the two fiscal tests would be satisfied was 2028-29—in March, it was 2027-28. All of us hope that the two tests will be satisfied as soon as possible. As far as I am aware, there is no difference between the policy of the Government and that of the official Opposition on the restoration of the 0.7% target. She talked about cuts in programmes, but the White Paper explains how many of the programmes will be increased. She specifically mentions South Sudan. As the budget is now in much better shape, next year the bilateral programme spending in South Sudan will increase from £47.9 million to £110 million, which is an increase of 130%. The Kenyan bilateral programme spending will increase by 225% and the Jordanian one will increase by 130%. So we are now able to do more through our bilateral programmes. She asked in which areas we would be specifically restoring funding where cuts had been made; she will see in the White Paper that the International Citizen Service is set to return and our aid match will increase. As for the humanitarian work we will do next year, we expect to spend £1 billion on humanitarian relief, plus we have the new resilience and adaptation fund, which will produce an extra 15% on that. The White Paper is long and to many of us it is a most exciting read. A short form is available—I have a copy here—as I mentioned. Thanks to the Richard Curtis team, it is also an excellent read. She chides me for not having made the point about civil society and the platform, but I am delighted to tell her that although I did not mention it in the statement, it is in there; UKDev—UK International Development—is a platform to achieve precisely what she said needs to be achieved in that bridge between civil society and Government and state work.

May I push back gently on what was said by the hon. Member for Wigan (Lisa Nandy), because many Conservative Members are passionate about this issue, have been supportive of the Minister through thick and thin and really welcome this White Paper? We are hoping that it will be a stepping stone to 0.7% ODA spend. Does my right hon. Friend agree that there is a symbiotic relationship between our economy and our security, and that our security is dependent on stability abroad? When we step back from helping fragile states, that void is too often filled by authoritarian regimes pursuing a very different agenda.

My right hon. Friend is right on that, and of course he was one of the 26 Conservative Members who voted not to cut the 0.7%. I hope that he will be energised by the alternative means we have found—the multipliers to ratchet in enormous amounts of money. He is right in what he says about the link between defence, development and diplomacy. When he gets a moment to read to read this White Paper, he will be enthused by the lines it is taking.

The right hon. Gentleman, my constituency neighbour, knows that I admire much about the mission he has set out in this White Paper, but chapter 3 needed to say a lot more about the money. He could have said more about doubling the fraction of the special drawing rights we share, as Japan is doing, which would have provided an extra £4 billion of development assistance. He could have said more about using the money we get back from the European Investment Bank to invest in building a bigger World Bank in order to unlock $200 billion of concessional lending over the decade ahead. He could have said more about leading a global initiative to keep the interest rate on special drawing rights down so that the International Monetary Fund remains as lender of last resort, rather than China. Those are practical steps that we could work on together—otherwise we end up with all mission and no model, which will not help the world’s poorest.

If the right hon. Gentleman reads with care the chapter to which he referred, he will see that it is one of the most brilliant chapters in it—that is my biased opinion. The reason for that is that we have in Washington an extraordinary team of young and brilliant officials who have enormous influence in the World Bank, and he is a considerable expert on this area. As for the multipliers and making sure that we sweat the balance sheets of these multilateral banks to ratchet in huge amounts of more money, he will see a great deal to please him. If these reforms are implemented, as I believe they will be, driven hard by Britain through the multilateral sector, we will see a vast increase in funding. As for what he says about the SDRs, using them creatively is something we are keen to do. He will recall that at the spring meetings the Chancellor of the Exchequer announced that Britain would use its SDRs to the tune of £5.3 billion to elevate the two IMF funds that directly deal with poverty and international development.

“People, planet, prosperity” is summed up entirely in this document, and I commend my right hon. Friend on the White Paper, particularly chapter 5, which I am passionate about. Building on chapter 3, it is vital that we accelerate the transition and support the Bridgetown initiative. Countries are getting terribly frustrated that although the talk is done and the UK is exceptional, there is a need to make sure that banks are getting the money to the people so that the projects can deliver for people, prosperity and planet.

I thank my right hon. Friend for the tremendous contribution she has made on the matters she is addressing. Chapter 5 directly addresses tackling climate change and biodiversity loss, and delivering economic transformation, and I am glad it has her approval. Chapter 3 deals with mobilising the money and what I described in my response to my right hon. Friend the Member for Esher and Walton (Dominic Raab), the former Deputy Prime Minister, as the “multipliers” and how we ratchet in private sector money. Those will make a fantastic difference and we also have to make sure that this money reaches the poorest people in the world. Britain’s role in the G7, in these international organisations, has always been to focus on the poorest people in the world. We are proud of doing that and the House would expect us to do it. This White Paper amplifies that mission.

I call the Chairperson of the Select Committee on International Development.

Let me start by giving my huge congratulations to the Minister. I hope that the whole House has recognised his personal involvement and the tenacity with which he has got this document out. [Hon. Members: “Hear, hear.”] I also congratulate our civil servants, who for the past three years have been doing an amazing job in challenging circumstances. I really hope that this White Paper re-establishes our position on the international stage. I particularly welcome the embedding of localism; more money to the poorest; debt relief; and the focus on atrocity prevention. The White Paper outlines several initiatives aimed at increasing the amount of climate finance available for vulnerable countries such as small island development states, which is welcome. The Minister referenced biodiversity loss a couple of times in his statement, but will he explain why no specific mention is made in the White Paper of the loss and damage fund, which I predict will be at the centre of COP28 in the coming weeks?