Respekt institut

Gareth Thomas, UK Minister of State for International Development, has recently attended the Informal Meeting of EU Development Ministers in Prague. As part of the Respekt Global Europe Series, Respekt Institut asked Mr. Thomas a few questions regarding the challenges that international development cooperation faces in times of the financial and economic crisis. Below are answers by Mr. Thomas provided via email.

1. As the economic downturn around the world becomes ever more obvious, what challenges and opportunities do you think this brings for the EU and its member states’ development policies?

The economic crisis will have a major impact on developing countries and threatens to undermine progress towards the Millenium Development Goals. There are already considerable numbers of poor people suffering from the consequences. What is most important now ahead of the London Summit in April is that the EU shows leadership in its own response to the impact on developing countries.

The EU is the world's biggest donor and has played a key role in securing ambitious international agreements on aid over recent years. We must now ensure that we deliver on these commitments, particularly on the 2010 and 2015 targets for the amount and quality of aid given by EU Member States. This way we will make sure that every pound, crown or euro spent as aid really counts.

The London Summit on April 2 will be a key moment in shaping the international response to the crisis. It is an important opportunity to help stimulate global economic recovery, get trade back on track, promote sensible and much-needed reform of our international institutions – and ensure that developing countries are not forgotten in the response. 2. The European approach to development policy combines aid and trade. What role do you see for international trade in the development policy mix in the current situation?

The UK continues to be firmly committed to helping developing countries trade their way out of poverty and secure good access to EU markets through, for example, the new Economic Partnership Agreements and the EU Generalised System of Preferences (GSP) Scheme. Without trade and economic growth, reducing poverty in the long-term will not be possible. We therefore continue to strongly support the EU’s Aid for Trade Strategy, helping to build capacity in developing countries to benefit from the global trade system.

3. What future do you see for the Doha round of WTO negotiations? The Czech Presidency says it wants to re-open the talks and work towards an agreement – what challenges do you see ahead, and what role does the UK government plan to play?

We are deeply disappointed that WTO members have not yet been able to take the final steps to an outline Doha deal. A new deal would have been good for the global economy in this time of economic uncertainty and it would have provided a vital lifeline to some of the world’s poorest people, who are among the hardest hit by the current crisis.

We remain fully committed to an ambitious, pro-development outcome to the Doha round.  We must work collectively to bridge the few remaining gaps to reach agreement, and we hope to use the London Summit in April to provide momentum to this process.  In the meantime, we are urging all WTO members to resist resorting to protectionism.

4.  Domestically in Europe, as the economic downturn grips the societies, there is risk that development aid might come under increasing political criticism or simply be crowded out by other policy priorities. How do we know development assistance works? What criteria does the UK government use for assessing its efficiency?

In the midst of the economic crisis, the importance of aid and supporting developing countries has increased. The UK Prime Minister, Gordon Brown, has emphasised it would be wrong to reduce support for poor countries now. It is in our own longer term economic, security and political interests that we continue to work for, and invest in global security, for all.

DFID delivers aid in many different ways. This is to increase the likelihood of it working in different environments. DFID continually monitors how it uses money so that more goes where it is needed. We assesses whether partner governments show commitment to tackling poverty, upholding human rights and managing public money wisely.  We may, and do, interrupt or stop aid if these commitments are breached.

One method the UK uses is the ‘quality of governance’ assessment to monitor our partners’ commitment to fighting poverty. It is based on discussions with partner governments, civil society and other international partners.

We use this assessment of ‘quality of governance’, as well as commitment to the three principles– to make choices about the way in which we give UK aid.

We work in partner countries to help improve the capability of state institutions and strengthen accountability to the poor. For example: Improving how public finances are managed. In places like Tanzania, Ghana, Pakistan, Bangladesh and Vietnam, the UK is helping improve spending procedures, accounting and auditing. These changes help ensure money is spent for its intended purposes. Helping education, health and other ministries to recruit more staff, improve training, and use planning and monitoring to improve the way services are managed.

5. The EU increasingly connects development with good governance principles. Which traits of good governance do you see as most conducive to sustained development?

Good governance is about the capacity of governments to ensure safety and security for their people, to be able to get things done, to give people the chance to be heard and to respond to what they want. It's about creating a climate in which people – local and from abroad – will want to invest their money and get the economy going, creating jobs and opportunities for a better life. It’s about ensuring the rule of law and effective policing.

Good governance is not just about government. It is also about political parties, parliament, the judiciary, the media, and civil society. It is about how citizens, leaders and public institutions relate to each other in order to make change happen. Elections and democracy are an important part of the equation, but equally important is the way government goes about the business of governing. Unless governance improves, poor people will continue to suffer from a lack of security, public services and economic opportunities.

Good governance is based on three things – capability, responsiveness, and accountability. All governments need to be capable – to be able to get things done. Does government have the money, the will and the capacity to build wells, provide health services to villagers, offer good education to children and raise taxes to do all these things? When these are absent, countries and their people suffer.

Governments must respond to the aspirations of their citizens through some kind of representative government, and that includes respecting the civil and political rights of their people.

Governments must also be accountable. This means having to explain what you are doing, and answer questions on what you have done. It applies to public officials, to ministers and to governments.

6. The EU aims to encourage sustainable sources of energy in developing countries as part of its development policy. At this point, prices of fossil fuels are dropping while the financial crisis limits the resources available for such projects. Do these plans need to be re-assessed in any way?

Your question raises two important issues. The first is that energy is vital for economic activity, improving health and education opportunities, providing water and many other crucial development activities. We must maintain our efforts to improve access to modern energy in developing countries as part of broader efforts to reduce poverty. The second relates to the impact of fluctuating fossil fuel prices. Although prices have recently fallen they will remain volatile, which can have serious impacts on the poor and vulnerable. By reducing their reliance on fossil fuels through the deployment of renewable energy, developing countries can help reduce their exposure to future price fluctuations, improve their energy security, and put themselves on a low carbon development pathway that will be more sustainable in the long term. In this context the EU’s plans remain important and relevant.

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