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Seanad Éireann debate -
Wednesday, 30 Nov 1983

Vol. 102 No. 6

International Development Association (Amendment) Bill, 1983 [Certified Money Bill]: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

In the context of the Bill we have been discussing, I feel the last matter is very trivial. We were discussing this Bill with the Minister of State the last day and in the main I covered the items connected with the legislation. Great latitude was extended to all speakers by the Cathaoirleach and the Leas-Chathaoirleach and I felt it was appropriate in the context of a debate on development co-operation that we should broaden it to include the area of disarmament because there are vital links between development and disarmament. Indeed, so vital are those links that the Irish Commission for Justice and Peace brought out a very worthwhile publication entitled "Disarmament and Development: The Vital Links". We should all be indebted to them for their research in this matter and for the very cogent and salient points which they have brought forward.

The fact that over £200 billion will be spent this year on weapons of destruction represents at once a threat to world peace and a barrier to world development. With the presence of Cruise and Pershing missiles in our neighbouring island, the reality of this has been brought home to many people. I was pleased to hear on the radio today that our national television station, Radio Telefís Éireann, are going to screen next week a film which has already been shown in America called "The Day After", which depicts the gruesome and hideous reality of modern nuclear warfare. I hope it will alert the consciences, sensitivities and sensibilities of Irish people to the reality of the holocaust we all face if this madness gets out of control, and also to the very danger it poses to development and development co-operation and to bringing about justice, equality and freedom from oppression in this world. The alarming dissemination of nuclear technology at one extreme, and the sordid trade in conventional weapons on the other, must be seen as two of the negative aspects of the present world situation and the present world political order. The trade in arms for developing countries is at once a reflection of the greed and immorality both by Governments and of the arms industry in the rich countries and of the seriously incorrect priorities of many Third World countries. This must be said because there is fault and blame to be apportioned in this, and it should be apportioned equally.

No strategy for world development can be in any sense positive if it is not parallelled by a programme of disarmament and arms control. The continuing efforts of the United Nations, and especially the current talks in Geneva towards an arms reduction treaty, which I earnestly hope will be the outcome of these talks, take on a particular urgency when its work is related to the obvious imperatives of world development. I take this opportunity to ask the Minister, in the context of a curriculum development board which, I understand, is being set up in the Department of Education, and given his responsibility and portfolio in Government, to consider making a submission to that curriculum board when it is established that a programme on the whole area of development education and peace education be instituted in our schools, both primary and secondary, so that the realities of the conflicts and the problems which we face in our present day world will be brought home to our children and that they will become partners in developing a more just, equitable and peaceful social order. I would like the children of this country to feel that peace and development are far more important than any other consideration and that the Government would be seen to implement policies which would go along with this thinking.

Many of us have studied the situation in Central and Latin America and have noted the alarming impact of conflict in that area, much of which is so sorely underdeveloped. While watching television yesterday evening I was appalled to see little Salvadorian children who have been orphaned by a war in that area walking the streets alone at night with nobody to care for them, no guardians, and nobody to defend them against hunger, poverty, disease and malnutrition. That is the brutal reality of war and warfare, and that is the sort of situation that should concern us. Again, children have become the obvious victims of a conflict in Mozambique. Our national television channel chose to highlight the poverty in Mozambique which was the direct result of warfare in that area and the people most affected by it were children and women. It was most poignant to see disaster on that scale affect the population of Mozambique.

We should have a sense of urgency in the whole area of development co-operation. We need to harness the enthusiasm of the Irish people. We have a proud tradition of involvement in Third World activity, largely of a missionary variety, though more and more Irish people are becoming concerned and enthusiastic and they see that it is very worthwhile and laudable, despite the problems with which we have to contend in our own country, to support wholeheartedly efforts in the area of development co-operation. I support the Bill and hope it will receive an unopposed passage in this House.

I did not intend to say very much about this Bill but I want to pass a few comments. I think it is important that we expand, through our embassies, our interests in development areas. Because of my membership of the Council of Europe, recently I had a most interesting trip to Turkey — for the return to democracy election. I think there are imbalances at ambassadorial level. As a nation we should look towards Turkey, a state with 27 million people. They are in the cockpit of European democracy, with Russia, Iraq, Iran and Syria as neighbours. I would like to see a link between Ireland and Turkey because there is very little trading done between the two countries. I believe there is a tremendous market for our products in Turkey. It is a developing country which needs the expertise we have, for example, for the advancement of agriculture. I am sure Córas Tráchtála and many other organisations could look towards that country too.

We have fallen down on the job from the outset because we do not have an ambassador in Turkey. This is something we should take in hand. I made that point because here we have an opportunity to make the Minister aware of the fact that there is great potential for development between Ireland and Turkey. This is something that should be nourished and brought along. They are a wonderful people who despite what the national press may say about them on occasion, are freedom loving and democratic. They have gone through a time of turmoil but now seem to be on the correct road. We should do something at this level and I ask the Minister of State to give his attention to it. If I can help in any way privately, through our links with many fine organisations in that country, I will.

A few days ago I spoke about the situation in Cyprus. Here is another tragedy in Europe, similar in many ways to the tragedy we have in this country. They have declared UDI, but this has not been acknowledged — and I think rightly so — by governments throughout Europe. The Turkish Cypriots had to declare UDI in order to gain attention; at least I hope that is why they did it. I would like to take this opportunity to point out to this House and to the people that the Turkish Cypriots as a race have suffered tremendous hardships in the last 20 years. The basic fundamental human right of any nation, of any member of any nation, of any island or of any race, is to have a passport to use to go abroad. I want to point out to the Minister, and to the House that the Turkish Cypriots are being deprived of that basic fundamental human right. If one begins the argument from that level, one realises why these people have been driven to make this very serious declaration. Our Government are right not to recognise it, but no effort should be spared by our Government and by every democracy-loving person in this State to speak on behalf of the island of Cyprus from the point of view of unifying the peoples of that island by the solutions which they themselves seem to agree upon, but which they do not seem to be able to put together in a final package.

Their situation is not like ours. They have a federal solution. Since 1964 they have been sitting at the table talking about it and trying to come to an arrangement. That is the significant difference between Cyprus and this island. We never even got into the same county, much less to the same table. They have been sitting at the table. Great atrocities have been perpetrated by both sides since then. The healing of hearts is much harder than any other kind of healing, but at home, internationally and in all the different organisations of which we are members we should play our part to help this beleagured people and, in particular, the Turkish Cypriots who have suffered tremendous humiliation over the years. On this day in 1983 people there still do not have passports, a basic fundamental human right if they want to go abroad.

They have been deprived of that right for many years. One does not have to give any other example of the situation, because it is self-explanatory.

There is much we can do now because of the position we hold in the United Nations and because of the missile deployment in our neighbouring island. This is a sad and tragic situation. The war that is looming will be frightful and devastating. I am delighted that this programme is being shown next week.

Hear, hear.

It will enlighten us on what a nuclear holocaust could be. It is horrifying to think that today one half of the world is dying of hunger. More are deprived of their basic human rights, as the Turkish-Cypriot people are. A nation such as Turkey, needing help, guidance and protection in their fight for democracy are beleagured by "isms" around the world because they are not of the extreme left. I do not mean that in any sense as an extreme left as we know it in Ireland. It is a fact of life that the world is producing enough nuclear weapons to destroy it 20 times over. Man's mind has become twisted and warped. If we wanted Utopia in these days of nuclear weapons we could say to the Yanks: "Go to Alaska and face the Russians", and to the Russians: "Go to Siberia and face the Yanks at Alaska". That would be a lovely answer for us in Europe, but that is not the way things are done. As a nation and as democratically elected parliamentarians we should protest about this possible holocaust.

I have been very lenient. I should like the Senator to get back to the Bill now.

It is an opportune time for us to give expression to such matters. It is not often we get an opportunity in this House to talk about democracy in Turkey, and the new development on the island of Cyprus. This is important. If it were our case we would be demanding the world to talk on our behalf.

I thank you, a Chathaoirligh, for giving me latitude. It is not often we get the opportunity to talk about those matters. We should speak about the possibility of a nuclear holocaust. We on this side of the House welcome the Bill. We look forward to hearing the opinions of the Minister when he is replying to the debate.

I will not take too long. Obviously it would be a hard-hearted individual who could do other than welcome this Bill. It is not in any way to make little of either this country's efforts or the Minister's efforts that one has to point out how small the sum is in terms of the needs of the world at large. It is small relative to the needs of the world. It is small relative to what the western world spends on cosmetics, on alcohol, on tobacco and the other things we all enjoy and take for granted. The amount of money involved in this International Development Association is small by any of those standards.

I do not want in any way to appear to be sneering or denigrating. I am simply saying it is only right that we who are wealthy and prosperous should realise that what we are giving is not a sacrifice but the little bit we can afford to give without making any real sacrifice. We need to keep our contributions in context.

What do we really do to people from the oppressed parts of the world? Conventional words like the Third World, the underdeveloped world, and underprivileged world and all those words we use at home and abroad are devices we use to protect ourselves from our own consciences. It is not an accident that two-thirds of the world are poor. It is not an accident that two-thirds of the world are deprived of what the rest of us would regard as the essentials of life. It is a necessary and direct consequence of our life style, our standards of living, our prosperity and of the way we choose to organise ourselves. It is not just a misfortunate development. It is a consequence of what we do for ourselves, of what we expect for ourselves, and what we demand for ourselves over and above the basic necessities of life.

For instance, we spend the best part of ten times more in this country on drink — and I am fond of drink myself — than we do on our total overseas aid. I am sure we spend equally large sums proportionately on tobacco and other luxury items. We have to keep reminding ourselves that, whatever we are doing, it is very little. I say that not because I think it is a simple answer, not because I want to throw away all these things. We participate within the EEC in a system of tariffs and protections which guarantees that the capacity of many oppressed countries to produce agricultural goods cheaper than we can cannot be realised. We guarantee that those goods will never be able to be marketed because of the operation of the Common Agricultural Policy.

It would be dishonest of us to go through a debate like this without facing up to the fact that in many ways the Common Agricultural Policy which we are fighting strongly to defend — and I suppose if I was forced into it I would have to say with my support — is a major instrument of discrimination against the rest of the world because of the way the EEC operate that policy.

To be even more specific — and probably I would be the first to defend it; and I know Senator Killilea would also do so — we have a sugar industry which in terms of world sugar prices, in terms of the capacity of many other countries to produce sugar, is both uneconomical and inefficient but which we preserve because we have obvious major reasons for doing so. It is a fact that there are whole areas of the world outside of Europe which can and do produce sugar at a price vastly undercutting the cost of sugar produced from sugar beet. Yet we have tariffs to ensure that we produce our own sugar at home in direct competition with people who have greater needs by far than we have.

There are also trade barriers. I recognise the progress that has been made through the Lomé Convention and other agreements with individual countries and group of countries. I recognise all that progress. When it comes to the crunch, we are as good as ever we were at preserving our vital interests. A question has to arise about the whole area of international development. Can we in the western world sustain our present life style? Can we sustain our present standard of living? Can we sustain our present sort of consumer expenditure or our present sort of wasteful expenditure? Can we sustain all of those things and at the same time really talk about real development and real progress?

The result of this collapse in the price of raw materials in recent years, the raw materials we often buy from Third World countries, the change in prices and the change in incomes of many countries resulting from that collapse, would exceed by a factor of four or five, the total amount of foreign aid made available by the entire western world in the same period. In fact, what they have lost because of the drop in raw material prices is far greater than anything we have given them in the form of aid over the same period. We have to look again at the possibility of guaranteeing prices for commodities and raw materials, and we do not seem to have made much progress with that. The United Nations Commission on Trade and Development has not made great progress there either.

At the base line we do not seem to want to talk about the fact that we cannot succeed in the two parallel aims of continuing our growth at the maximum possible rate to the maximum possible standard of living and, at the same time, do anything about the fundamental inequity that exists between ourselves and the 2,000 million who are oppressed. That is why I say I think it is wrong to keep talking about them as the underprivileged or the Third World. They are the oppressed. They are the victims of our success as clearly and as categorically as the poor at home are the victims of the rest of us succeeding. The poor of the Third World are the victims of our success and our prosperity and, therefore, the appropriate description is not poor or underprivileged but oppressed. They are suffering from injustice which is a consequence directly of the way we organise our lives.

It is probably impossible to quantify the amount of money or capital needed to provide the basics of life for the oppressed of the world. The figure sometimes quoted — I do not know where people get these figures from, but it is worth quoting — is 40 billion dollars a year. Allegedly that would be sufficient to provide basic food, education, health services, sanitation and shelter. We are talking about very basic things. We are talking about the endemic diseases. We are talking about giving people clean water and basic sanitation and shelter. We are talking about $40 billion which is an awful lot of money in many ways. The horrible fact is that 40 billion dollars is about the same as what the world spends on armaments in two weeks. In other words it is estimated that about 4 per cent of the world's armament expenditure could provide all that is needed in shelter, food, health, education and sanitation for the 2,000 million or so people in the world who are starving — and the figure is probably higher.

Senator Bulbulia mentioned that the 1981 figure was about $650,000 million. It is probably closer to $800,000 million if you add in the fact that military expenditure usually inflates faster than the overall rate of inflation. There has been a real increase in military expenditure on top of that, so I would say $800 million or possibly even $900 million is the sort of level of world expenditure. The tragedy is that, as that expenditure has escalated frighteningly overall, most first world countries, the prosperous, the rich, the well off are probably either actually producing an absolute decline in their overseas aid, or are definitely producing in many cases a relative decline when compared, not just with our own inflation rate, but with the frightening inflation rates to which many Third World countries are subjected because of the escalation in some of their import prices by comparison with the collapse in the prices of their exports.

There are very specific examples of the cost of armaments. The book produced by the Irish Commission for Justice and Peace "Disarmament and Development" should be compulsory reading for every member of every parliament in every democracy. It gives in horrifying detail the huge cost of armaments by comparison with the minuscule amount of money contributed to overseas aid. There is a simple proposition contained in that which ought to be transferred by the Department of Foreign Affairs to the Department of Defence, on the whole question of armaments and the idea of armaments as the basic form of defence and the idea of armies as a necessary part of a nation's dignity, that is, that we as one country should allocate 1 per cent of our defence expenditure, approximately £2½ million each year, to researching and to training and to working on non-violent methods of defending ourselves, on non-violent resistance to oppression and non-violent resistance to attack.

At this stage the myth of a noble nation defending itself by the use of arms is a thing of the past. Nobody can defend us from the sort of invasion that will happen to us. What will happen to us is an invasion from the skies that will come so fast that our Army will not be even out of bed not to mention out of barracks, and we will all be incinerated if it ever happens. There are basic ethical and moral questions about the whole question of nuclear weapons, their cost, their deployment, their use, and whether it is ever possible to envisage a situation in which anybody with a conscience could morally believe that whatever you were defending was so important that you could consider incinerating the whole of the population of another country. The irony of it is that very often those we identify as our enemies we would also describe as oppressed societies where the people are not free. In other words we cannot blame the people of the Soviet Union for what their government do because their government allegedly are not a democratic Government. Still apparently we contemplate the prospect of incinerating the same people because of what their government might threaten to do to us, which seems to me to have a moral contradiction somewhere. If the people are not at fault you cannot punish them for what their government do.

I do not want to get involved in an argument about armaments or neutrality, but the whole moral question of armaments expenditure has to be faced up to and it is a fact whether we like it or not that it is the western democracies and the socialist countries who constitute I am sure 90 per cent of the armaments industry of the world who make most of the money out of the armaments industry. Everybody in this House would, I think, claim to be on the side of the oppressed of this world. The sad and tragic fact is that, over the past ten years, the area in which the greatest growth in military expenditure has occurred is sadly in many Third World countries. It needs to be said over and over again that there has been a frightful increase in military expenditure in countries going through the most dreadful economic decline. They still managed to increase military expenditure. They have done it. We have supplied the arms and we have made money out of that dreadful topsy-turvy set of moral values.

It is time somebody said what I think most people feel. Participation in the world arms trade must be close, in terms of moral values, to participation in the world drug trade, in international drug trafficking. It cannot be morally justified to sell large volumes of arms to Third World countries, to poor countries, to countries that do not have enough money to feed themselves. Nobody can justify it by saying that if we do not somebody else will, because that rationale could just as equally justify trafficking in heroin or any other drug that was available.

It is morally wrong to sell armaments to people. It is morally wrong to build a nation's prosperity on the basis of armaments expenditure. It is morally wrong to contemplate it. I regret certain decisions of some of our Government Departments and some semi-State agencies in getting themselves recognition by major international defence agencies so that they can supply components through Irish industry to international defence industries. In particular, I regret the agreement between our own Institute for Industrial Research and Standards and the US Defence Department. I hasten to add I am not particularly concerned whether it is the US or the USSR we are dealing with. Any attempt to build any part of our prosperity on an arms industry seems to me to produce a basic moral question which no amount of equivocation or no amount of passing the blame to other people can evade.

Those of us who talk about development, whether we stand in Irish politics on the left of the spectrum or on the right, have got to face up to the fact that, whether it be the sycophants of freedom in North America or the betrayers of socialism in Eastern Europe, neither of us shows any concern for the values we claim to defend in the way we deal with Third World countries. This is as much true of Eastern Europe as it is of North America.

The sums are very easy to do in terms of Western and Eastern European contributions to development. It is a little bit too trite to say that Eastern Europe does not operate on the basis of the hard curregencies the rest of the world does and therefore to measure their contribution in cash terms is a bit too harsh. There is no doubt that in terms of deviousness, in terms of self-interest, Eastern Europe has been as calculating and as ruthless in terms of what it does for developing countries as has been the western world.

All of us have been quite calculating and quite ruthless in protecting our own interests. Therefore, in relation to the invasion of Grenada and the situation in Central America, it is difficult not to see self-interest involved in our less than forthright analysis of the fact that an invasion was carried out on a defenceless country in the interests of something other than the freedom of the people in that country. I know what I think of the invasion of Grenada, I know what virtually every Member of both of the Houses of the Oireachtas thinks about the invasion of Grenada. It was morally wrong. It was anti-democratic. It was an assault on the freedom of a small country. In the same way what is going on in Nicaragua or Afghanistan is an assault on the freedom of small countries. It is a further example of the fact that both major powers, irrespective of their verbal commitment to international development, are as ruthless as any imperial power in the past has ever been in defending their own interests.

That is why we as an independent democracy have an obligation to recognise not just as I said before the dreadful betrayal of socialism that is being carried out in Eastern Europe, but the equally dreadful abuse of the great word freedom by many of those whom we would claim to be almost allies if not close friends. It is interesting that in the midst of all the denunciations of the allegedly Cuban destabilisation of Central America and of the Carribbean, after the current Prime Minister of Jamaica was elected — and who is known for his close ties with the United States — when he was busily throwing out the Cubans, he asked them if they would leave their 1,000 or so doctors who were working there to look after the health of the people of Jamaica. This is a compliment to some of the work that much maligned country does for many Third World countries.

I would like to put it on record — though I am far from being an unqualified admirer of Cuba — that the country in the world with the greatest per head of doctors working in Third World countries is the People's Republic of Cuba. It is far ahead of all western countries put together. Cuba has more doctors per head working in Third World countries than any other country in the world. It is very difficult to link up some kind of devious political plot with that sort of commitment of medical resources where they are needed in many developing countries. Many of the rest of us who have produced far too many doctors for our own needs could mirror that development and the sort of basic medical advice that could be given would be given.

What has happened to the poor of the world is a conspiracy of the powerful between the east and the west. Many Third World countries have discovered this, whether it be at trade and development conferences or elsewhere. When it comes to the basic idea of raw material prices and of trading relationships, the east with its banners of socialism and the west with its protestations of concern for freedom, show a mutual self-interest in preserving their own vested interests that excludes any concern for the needs of small and poor countries. That, unfortunately, I fear, is where we may well end up: as part of this conspiracy of the powerful. As we work harder and harder to become part of the wealthy and the rich and the powerful we will be drawn more and more into the partnership of power and oppression which represents the world's present trading structures.

If anything can be said with absolute certainty it is that the market economy as we understand it will never produce world justice, because ultimately the market economy is about the free movement of capital. You will not get capital to move freely to poor countries with high levels of political instability, high levels of illiteracy, high levels of underdevelopment, if there is a better, more lucrative and a more profitable market available at home. The movement of capital to tiny, isolated elements of the Third World, whether it be in Singapore, or South Korea, or Hong Kong, is more a response to the fairly rigid authoritarian societies that have developed there and that have guaranteed security and low wages, than of any sense of a real development in the Third World generally. So I do not believe that the present unfettered market forces can do anything other than perpetuate the inequalities and the injustices.

On the other hand, I heard one of the most inspiring addresses on world development I have ever had the good fortune to hear. I am not sure if the Minister of State heard it. It was given by Fr. Xavier Gorastiaga who was responsible for economic and social planning in Nicaragua. He spoke at the Trocaire tenth anniversary seminar in Galway and defined poverty as the absence of choice, not as the absence of consumer goods, not as the absence of the things we often define as poverty, but as the absence of the capacity to make choices. He pointed out that in Nicaragua in the past two years, in spite of the fact that they have no money, they have built more houses than had been built in the previous 20 years. They conducted the most massive literacy campaign that has been conducted anywhere in the world outside of Cuba in the immediate post-revolutionary years without any money.

He pointed out that, given the political conditions, even an impoverished country, a country that has suffered a civil war like Nicaragua, can do an enormous amount to achieve basic dignity for its people. He then talked about the aspirations of the people of Nicaragua and the hopes of the Government for Nicaragua, and he was quite categorical that they did not want western style prosperity, that they did not want western style affluence as we have defined it, and as we have attempted somewhat arrogantly to define success and a standard of living. What they wanted, he said, was a civilisation of simplicity.

He recognised what we must recognise, that it is virtually impossible to visualise a world in which countries like India and China could achieve standards of living like those of the United States. The world does not have the natural resources to provide cars in the numbers that would be needed to give the citizens of China and India an American-style standard of living. The waste that would be generated by an American or, indeed, western European standard of living if all those countries achieved those standards would swamp the oceans of the world, would swamp the atmosphere of the world.

If we talk about world development and we are sincere about it, we cannot really talk about it in terms of hoping that China and India and all the rest of the developing world will achieve standards of living similar to those of the United States and western Europe, because the world does not have the resources to do it. The consequence of that, therefore, is that if we have to achieve justice within finite resources, those of us who are prosperous will have to become less prosperous, and that is the hard and the painful fact of world development. It is not achievable with us even standing still. In many areas we will have to go backwards. It may be through higher taxes; it may be through fewer services; it may be through various other ways. It may be through the provision of free services which we pay for out of our taxation.

We cannot continue to grow incessantly in the wealthy, powerful, militarily and economically powerful west and, indeed, in the almost equally powerful east and, at the same time, talk about development. Development will be achieved only if we either stand still or move backwards because we consume too much of the world's resources. We take up too much of the world's capital and because of that we control too much of the world market.

That is why, as I conclude, I want to say that of course I welcome this Bill. It would be dishonourable not to point out that, as we maintain our values, our priorities and our demands in so many other areas, there is an element of hypocrisy in the way we all welcome this small gesture. It is a welcome gesture. It is a small gesture but, if it is no more than an attempt to satisfy ourselves that we are doing enough, then we really are nothing more than hypocrites.

I am very pleased indeed that this Bill has received such generous support in the House. A clear message of support has come across for the special contribution arrangements which are needed to keep the International Development Association operating at a satisfactory level. The discussions ranged over many areas. The purpose of the Bill is to provide for a special contribution towards the sixth replenishment of the IDA. This will cost the State slightly over £2 million.

The Bill has been welcomed on all sides of the House. I should like to express my appreciation of the high quality of the debate. It is clear that Senators put considerable thought into the matters affected by the Bill and the problems of the poorest countries and, quite understandably, their contributions did not focus narrowly on the activities of the International Development Association but viewed the association's work against the wider context of the massive problems facing the poorest of the developing countries and, of course, the absolute poverty afflicting hundreds of millions of people in those countries. During the course of the debate it was mentioned that 800 million people in the world today are living in this absolute poverty. It is very clear that major efforts on many fronts will be needed to alleviate the position of the people in these countries, which are generally referred to as the countries of the Third World.

The main point made by Senator Ryan was that we are doing a bit, but there is much more to be done. I must say I absolutely agree. The fact that more progress has not been made to date should act as a spur to greater efforts. On the other hand, it should be recognised that were it not for the assistance that has been given to them, the position of the developing countries would be far worse than it is today. It is in that context that we are discussing our contribution to the IDA. I strongly believe that that organisation has over some time made a very major contribution to the problems of the Third World. At the moment it provides about £3.5 billion annually. Its record over quite a number of years has been exceptionally good.

I want to recall some of the points made by Senators in the course of the debate. Senator Smith raised the question of the possibility of some kind of direct link-up between the acute unemployment problem here among young people and the need in developing countries for trained young volunteers. I want to approach that point at two levels because there would be a danger of our adopting the approach that we are sending people to the Third World merely to solve our own unemployment problem. That would be altogether the wrong approach and the wrong motivation but, at the same time, if we are helping the Third World by sending qualified personnel there and if, incidentally, it has helped our unemployment problem, so much the better. It is an additional reason, but not the main reason, for providing technical co-operation in the Third World.

We have a State-sponsored body, the Agency for Personal Service Overseas — APSO — which provides training and is part of the Government's overall programme of assistance to developing countries. APSO received a grant-in-aid of £1.2 million in 1982 and, if I recollect correctly, the figure for 1983 was £1.6 million. APSO assist development workers going overseas in the funding of travel and in training programmes. Last year, they funded 324 such development workers going overseas and trained 400. At any given time there would be approximately 400 Irish development workers in the field as a result of the activities of APSO. I should also mention that that particular organisation co-finance the development workers with agencies such as Concern and Gorta.

It is important to bear in mind that all these development workers are on temporary assignment, usually for two or three years. On that point, I want to stress that we cannot approach the sending of such workers overseas on the basis of solving our own unemployment problem. There are very specific needs in the technical and administrative fields where we have the expertise available. It is important that with the right motivation we should, in so far as we can, help in filling the gaps in those areas in the Third World.

A number of Senators expressed anxiety about the circumstances which gave rise to the Bill. Senator Bulbulia called it a fire brigade action or rescue operation. To be honest about it, she is absolutely correct in her assessment. It arises, as I indicated in my opening statement, because of the action of the United States Congress in stretching the US contribution to the sixth replenishment over four years instead of three. For some time now it has been proving difficult to muster the necessary support in Congress for contributions to the association and, indeed, to other multilateral aid agencies. Senators will also be aware that recently the US administration have had difficulties, which happily have now been resolved, in obtaining approval for an increase in the US subscription to the International Monetary Fund. There are complicated political issues reflecting budgetary considerations and, it has to be said, some hostility towards overseas aid. These are behind the stance taken by Congress on the multilateral institutions.

So far as our Government are concerned we have expressed our concern that an ad hoc approach of this kind to special contribution arrangements should be necessary to ensure that the association have adequate funding. We will be playing our part in the forthcoming negotiations on the seventh replenishment to put the association's funding on a sounder footing. I mention in that regard that the next meeting on the seventh replenishment will be held in Paris at the end of next week. The stance we will be taking will be one which will involve having a properly funded seventh replenishment on a sound basis and, it is hoped, without the necessity of having to introduce special measures such as are incorporated in this Bill.

Senator Lanigan raised a number of issues, one of which I would like to clarify straight away. People might be inclined to be sceptical that the association's lending is direct to governments, to be used for financing suitable development projects. We are all aware of the dubious record of some governments in developing countries and I can see how some would question whether lending direct to governments is advisable. It is important to clarify that the association do not simply hand over loans to governments. The association, instead, operate a strict project cycle involving, in turn, identification and appraisal of the project to be financed, then approval of the project by the association's executive directors, supervision of the project in execution and, finally, a post-construction evaluation. This cycle ensures close control and an inspection of the projects at all stages.

The loan for the project concerned is paid over a period of time in instalments, with each instalment being paid only after the association have received evidence of completion of the stage of the project construction to which that particular instalment payment is related. It would be important to give the lie to the possibility that this very important association in any way are handing over funds sometimes to corrupt heads of government in any part of the world, funds which would be used for personal purposes, or for any purpose other than strictly developmental purposes. There is a very carefully managed system to ensure that that kind of thing would not happen.

On a point of order, surely if one is spending the money on particular projects there is no need to give this money to a government. Moneys allocated to the EEC Social Fund have at times been said not to go to the projects for which they were intended and I would not say that the governments within the EEC could be said to be corrupt. What is the rationale in giving these moneys to a government if they are for specific projects?

The answer must be that normally the projects are being implemented by the government. They would be submitted to the association by the government in question to be implemented, not by the association who are a financing agency and would have no means of direct implementation in themselves, but for implementation by the relevant government. Because it is the government which implement and execute the project, this type of system has developed. I am not sure whether that fully answers Senator Lanigan's point. The safeguards that I mentioned were to ensure strict control and proper appraisal in advance and, because of the instalment arrangement that no money would be paid over until the association were absolutely satisfied that the project had been completed properly up to the stage at which an instalment should be paid, following through with an evaluation after completion of the project.

Many of these schemes would be very major schemes involving quite substantial funding. Maybe what is in Senator Lanigan's mind is the very excellent work that is often done by voluntary agencies and whether the association should, in fact, be concentrating funding into that kind of area. I am a great believer in the work of the voluntary agencies. Indeed, through my Department I have ensured that the money available for co-financing projects with the voluntary agencies has been increased substantially. Given the necessary funding I hope that they will be able to continue on that path. The voluntary agencies would normally not be involved in huge regional projects of a developmental nature. More often, they would be concentrating on providing needs at basic village level rather than, say, on a project covering a region or, indeed, in many cases an entire country.

Are these funds getting to the people who actually need them or are they being used for the purpose of bolstering up a flagging government? Where they get international funds are they saying that they are being used for the poorer people but, in actual fact, are being used for purposes which are popular to the government of the day and possibly not to the people? This is very important particularly in developing nations.

That is a reasonable point. The best answer I can give to it is that the association, being very well aware of that, had a change of direction in the type of project which they approved. In the early days the association gave many approvals for projects in the area of basic infrastructure, with a simplistic approach that other improvements would follow when basic infrastructure improved. On a general evaluation they came to the conclusion that the results that should automatically follow from that kind of approach were not following on the provision of that kind of infrastructure.

For some years past, the approach has been more to approve projects in two major areas, firstly, agriculture from the point of view of reaching to the very basic need of man — the provision of food — and secondly, in the health and community care area. One could, of course, criticise the association for not involving themselves in agriculture and health in the earliest days but at the same time the answer to that would be that the moneys that were provided for basic infrastructure certainly were not wasted. As a result of the evaluation within the association, it was concluded that funding in the other areas was more important.

On the broad issue as to whether funding reaches the poor, the best answer I can give to that is that the funding of the association is almost totally concentrated on the poorest countries of the world. Under the statutes of the association, funding cannot be paid to a country with a per capita income of more than $870 per annum. In fact, 90 per cent of the funding is concentrated on countries with a per capita income of less than £450—about one-tenth of the per capita income of this country. From that point of view there is a concentration on the poorest country, with the type of projects that are approved being particularly in the agricultural and health areas. There is an effort within those countries to reach to the poorest. On that basis, in so far as a multilateral organisation can, I am satisfied that they have ensured that the moneys provided are going to the poorest in the poorest countries. Having said that, there are obviously gaps within which the voluntary organisations have a major role to play. They have to work on it from the ground upwards, seeking out the black spots and making their contribution at that level.

A number of Senators referred to the vexed question of tied aid in general. I stress that the loans provided by the association are completely untied. These are known as "soft loans", being provided on an interest-free basis for 50 years. They are provided to countries which would be unable to obtain loans on commercial terms. The only restriction in regard to this type is that contractor projects that are assisted must be placed with firms from the association's member countries. These countries total 131, so there is very wide scope for borrowers to place their contracts amongst these 131 different countries. If I recollect rightly, the number of countries registered at the UN at the moment is about 160 or thereabouts, so virtually every country is involved. One matter was raised by Senator Bulbulia and I am not too sure——

A Leas-Chathaoirligh——

An Leas-Chathaoirleach

Senator Lanigan will have to allow the Minister to continue. If there are further questions we will take them on Committee Stage.

I am in the Chair's hands. An impression could be gained from Senator Bulbulia's contribution that our bilateral aid is, in fact, tied and I would like to correct that impression. Ireland's bilateral aid comprises three main elements. One is the bilateral aid programme which is the programme of overseas assistance administered directly by the Department of Foreign Affairs and financed from subhead E of the Vote for International Co-operation. We have our funding for APSO which I have mentioned already and there is the disaster relief fund administered by the Department of Foreign Affairs. The total expenditure on bilateral aid in 1982 was £8.593 million, representing an increase of 33 per cent over 1981. The largest single element is the programme of the Department of Foreign Affairs which last year accounted for over 80 per cent of total bilateral assistance. Almost two-thirds of that goes in the form of technical assistance to four priority countries in Africa — Lesotho, Tanzania, Zambia and the Sudan. It is important to stress that technical assistance by acceptable international criteria, notably those of the development assistance committee of the OECD is not considered as tied aid. The small amount of capital which we provide in addition is not tied in either. I would like to correct any wrong impression on that. I discovered only one small aspect of our total aid programme which was tied. That was our contribution to UNICEF on the multilateral side but we have now removed the tie on it.

Senator Higgins raised the question of Nicaragua and I checked the point raised by him. Under the articles of agreement of the association, the IDA are required to consider loan applications on the basis of the economic and financial criteria specified in their articles. Certainly one cannot guarantee that political considerations never intrude, but the association and the World Bank have a very good record in this regard.

Regarding Nicaragua, I am informed that since 1979, when the present government there assumed power, loans totalling over $100 million have been approved by the association and the bank and that cash disbursements on these loans are proceeding substantially on schedule. In 1981, Nicaragua exceeded the income eligibility limit for loans from the association but it continues to be eligible for loans from the World Bank. I understand that although there was no new lending in the bank's financial year to June 1983, there are on-going consultations between the World Bank and the Nicaraguan authorities on a development programme which could form the basis for additional loans.

Senator Bulbulia also raised a point regarding OPEC and indicated that perhaps the OPEC countries could make a greater contribution to the association. At present, only four of the total OPEC membership of 13 are donors. Those four are taking up their due share under the terms of the agreement. Those four are the United Arab Emirates, Saudi Arabia, Kuwait and Venezuela. Like others, I hope that in time the other OPEC countries will become members.

Senator O'Leary raised the question of the contributions by Eastern block countries. There was some criticism of the United States because it was the action on their part which resulted in this special contribution being necessary. Senator O'Leary avoided criticism of the United States but asked, by way of balance, what was the situation in regard to the Soviet Union and the Eastern block generally. On examining the list of contributors, I find that the Soviet Union contribute nothing and that of all the eastern bloc countries on the list the only contributor is Yugoslavia. That country, by the degree of independence which it shows from time to time, may not perhaps be fully classified within the Eastern bloc. That is the comparison, by way of balance.

A number of Senators raised the question of disarmament and the relationship between disarmament and development. I share the concern expressed by the Senators that there is so much money spent on armaments worldwide when so many people lack the basic means to survive. The figures for total global military expenditure are absolutely staggering. In 1980, a total of $450 billion was spent. In 1982, this rose to $650 billion. While no firm figures are available for 1983, all the trends indicate that the figure will be of the order of $750 billion. By contrast, the net financial resource receipts by developing countries from all sources are virtually unchanged between 1980 and 1982 — at approximately $96 billion per annum. The indications for 1983 are that that figure was not increased, or by only very nominal proportions.

The approximate comparison for 1983 as between money spent on armaments and the total receipts by developing countries is of the order of $750 billion spent on armaments and something of the order of $100 billion on aid. The reasonable conclusion must be drawn that it is absolute lunacy that people should be spending such enormous sums on armaments — a means to kill one another — and such small sums on helping to give the poor people a reasonable chance of survival.

Senator Killilea strayed into many areas. He made a few points regarding Turkey. We are very glad of recent developments there and the steps that have been taken on the road back to democracy. We are pleased that elections have been held there and that parliamentary democracy is being restored. We would hope that the roots put down now will grow and flourish and that there will be full restoration of parliamentary democracy in the very near future. The questions of a resident embassy there needs to be dealt with. I accept entirely Senator Killilea's point about the importance of a country like Turkey. I accept the point he makes about the potential on many fronts of having close relations with that country and having a resident ambassador there. It has to be said, however, that a small country like ours, in the context of missions abroad, simply has to cut its cloth according to its measure. That has been a very restraining factor on Ireland in regard to the number of overseas missions it has.

In the same way that Senator Killilea makes the case for the establishment of a resident embassy in Ankara, very strong cases have been made for similar action in relation to quite a number of other countries. It is very much a question of finance. An embassy cannot be established without having it reasonably staffed and there is a considerable amount of expenditure involved in each additional mission. That would be the major problem.

Regarding Cyprus, this issue has made the headlines in recent times. It was discussed at the Council of Europe ministerial session which I attended in Strasbourg last week and was again discussed at EEC level at the Foreign Affairs Council meeting in Brussels which I attended yesterday. We made it clear that we cannot accept the declaration of a new country, that it does not conform to international standards. We made it clear that we do not recognise this so-called new country. We made very clear at the United Nations, the Council of Europe and at EEC level our support for the efforts of the Secretary General in trying to find a solution to this matter. The Secretary General for some time has been involved, and I believe that the proper role for us as a small country, very concerned about the problem, is very strongly to indicate our support for his efforts in finding a solution there. I am convinced that the ultimate solution will have to involve some form of accommodation between the two communities on the island.

Senator Killilea indicated some of the problems which affect the Turkish Cypriots there. If one talks to the Greek Cypriots one finds that they have a thing or two to say about the people on the other side. Unfortunately, that is what makes for inter-communal strifes. Our efforts must be devoted towards trying to bring peace——

I think we have been far too long listening to the Greek side of it. We should have listened to the other side. I was only giving the other opinion. It is not all what we have heard.

It is unusual for the Minister to be interrupted.

I do not mean this in a defamatory way, I just want to express the opinion, and the Minister understands what I mean.

I accept that Senator Killilea has a point of view on this. He obviously feels very strongly that the Turkish Cypriot side and the problems which affect that side have not been sufficiently highlighted.

So do members of the Minister's party.

An Leas-Chathaoirleach

Senator Killilea, please.

I note the point made by Senator Killilea and I can say to him that the efforts of the Irish Government will be designed towards, in particular, supporting the efforts of the Secretary General of the United Nations and will be also directed towards any measure that will help to bring the two communities together with a just and lasting solution.

We will be helping both sides, not one.

An Leas-Chathaoirleach

The Minister of State, without interruptions.

Senator Brendan Ryan raised quite a number of points, some of which have been dealt with in my previous remarks. He dealt with the problems of world armaments and nuclear weapons which are a little outside the scope of this debate. I have given the figures and I have indicated my concern, which every person in this country shares, that there is such huge spending on armaments of all kinds and, by comparison, such a small amount spent on development co-operation activities.

In the short time available to me it is impossible for me to take up every point that has been raised. I have attempted to touch on a number of them. I am very glad at the interest shown by Members of this House in this Bill and in the subject of development co-operation generally. I hope that in future there will be further opportunities for discussions in this House on that matter. The establishment of the Joint Oireachtas Committee may provide that opportunity as that committee have within their terms of reference the right to refer reports to either House of the Oireachtas. I hope they will exercise that power and that we will have the opportunity in the months and years ahead to have many more discussions on this area.

Question put and agreed to.
Agreed to take remaining Stages today.
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