Dáil Éireann debate -
Tuesday, 1 Feb 1994

Vol. 438 No. 1

Written Answers. - Oxfam Report.

John Connor

Question:

39 Mr. Connor asked the Minister for Finance if he has studied a recent report completed by Oxfam entitled The Failure of IMF/World Bank Policies in Africa; if so, his views on the findings of this report; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

The report by Oxfam has been brought to my attention. I consider that it is a very interesting one. In particular, the report contains a number of recommendations to alleviate the debt problems of developing countries in sub-Saharan Africa. I consider that these recommendations merit further study.

In the meantime I want to say that I think concessional or soft loans to these poorest countries are vital. The International Monetary Fund's adjustment programmes for the poorest countries involve loans which are heavily subsidised — at a concessionary rate of interest of 0.5 per cent. For its part, the World Bank is doing much to alleviate the situation of these countries. In the first place, it introduced in 1990 a special scheme to provide resources on a grant basis to enable low-income countries to reduce their external commercial debt; operations under that facility increased sharply last year. In addition, the Bank has been helping low-income countries experiencing difficulties in paying interest on loans previously obtained from it. The Bank also organises and assists through the International Development Association, the Special Programme for Africa, a unique aid co-ordination mechanism for debtdistressed African countries committed to adjustment programmes. The International Development Association is the soft loan arm of the World Bank and provides concessionary finance to the poorest developing countries. Last year, having received the approval of the Houses of the Oireachtas, Ireland agreed to contribute to the tenth replenishment of the International Development Association and also to make a supplementary voluntary contribution — totalling in all £13 million.

I share Oxfam's particular concern with the plight of sub-Saharan Africa. I stated at the Annual Meetings of the World Bank and the IMF last year that it is time to formulate a debt-relief package for this region and the other poorest regions at least in line with the Trinidad terms. Of course the formulation and implementation of debt relief schemes needs to be tackled at global level. The role which the Irish Government can and will continue to play is to support all efforts being undertaken in international fora to provide debt relief particularly for the poorest developing countries.