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Seanad Éireann debate -
Wednesday, 16 Mar 1988

Vol. 119 No. 1

International Development Association (Amendment) Bill, 1987 [ Certified Money Bill ]: Second Stage.

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

The purpose of this Bill is to authorise a contribution of £9,660,000 by the Irish Government to the Eighth Replenishment of the Resources of the International Development Association.

The International Development Association, or IDA, is a sister organisation of the World Bank. The two bodies share the same staff, management structure and Board of Governors and any country which is a member of the bank may also become a member of IDA.

The World Bank and IDA have a common objective — to support the economic development of the developing countries by lending funds, providing advice and serving as a catalyst to stimulate investment by others. Both organisations were designed to complement each other. The bank raises most of its funds by borrowing on the world's capital markets and onlends these funds at more or less commercial rates to a wide range of developing countries. IDA, on the other hand, is funded by regular replenishments, or grant contributions, from its richer member countries and can, therefore, provide highly concessionary assistance to the very poorest of the developing countries. During the 1987 financial year, the bank's lending commitments, involving 127 loans to 39 different countries, totalled over $14 billion. IDA approved a further 108 credits totalling almost $3½ billion also to 39 countries.

In the early years, the bank's and IDA's lending was focused principally on financing infrastructure projects such as highways, railroads and power and telecommunication systems. Now, much more emphasis is placed on programmes and projects that directly improve the well-being of the poorest people in the developing world. This change in emphasis has caused the bank and IDA to invest more heavily in such areas as agriculture and rural development, education, health and nutrition, industry, village water supply and electrification. While financing specific investment projects has traditionally been and will continue to be the mainstay of its operations, IDA, like the bank, has in recent years become increasingly concerned with lending in support of policy reform and economic adjustment. As a result, a growing proportion of its resources are now focused on sector and structural adjustment loans.

The negotiations on the eighth replenishment of IDA, which is the subject of the Bill before the House today, took place in 1986 and were conducted by officials representing each of the donor countries, including Ireland. The conclusions reached by these negotiators were endorsed by IDA's Board of Governors in June 1987, when it adopted the resolution to provide for the necessary increase in resources. The provisions of the resolution became effective on 4 March 1988 when donors representing 80 per cent of the total replenishment resources had notified IDA of their intention to participate.

The decisions on the eighth replenishment encompassed a number of issues. These included questions like the overall level of resources to be provided, the proportion of the total that each donor country should bear, the terms on which IDA credits should be made available and the allocation of IDA 8 resources both in terms of the countries to be assisted and of the types of lending to be provided.

In determining the overall level of resources to be provided, efforts were first directed at achieving the highest possible level of replenishment on the basis of traditional burden sharing arrangements, that is, with all donors maintaining the same pro rata share that they had in earlier replenishments. The maximum figure on which agreement could be reached on this basis was $11.5 billion.

As many members were dissatisfied with this, negotiations continued in an effort to reach agreement on a higher figure. What was eventually agreed was $12.4 billion, on the basis of an accord by various member countries that they would make special additional contributions. This compares with a total of $10.1 billion from the combined seventh replenishment and the Special Facility for Sub-Saharan Africa, which was set up in conjunction with the seventh replenishment. It is moreover, substantially greater than had earlier been expected.

As part of this agreement, members agreed to some tightening of IDA's loan terms in order to enable much-needed funds to be recycled faster. Consequently, the length of IDA loans has been reduced from 50 to 40 years for the poorer developing countries and to 35 years for the others. This provision will not apply to existing loans and other terms are unchanged. IDA loans remain interest-free and have a grace period of ten years. Therefore, these loans are still very attractive to beneficiaries.

On the other issues, members agreed to continue using existing criteria, such as relative poverty and population size, for allocating IDA's resources but greater stress is to be laid on economic performance in order to ensure the most effective use of IDA's funds. Between 45 per cent and 50 per cent of IDA 8 resources will be reserved for countries in Sub-Saharan Africa because of the gravity of the problems faced by those countries. A further 30 per cent will go to countries like India and China who are among the poorest of IDA's recipients.

There was also agreement that IDA's role as a lender primarily for investment purposes should continue, but that greater emphasis should be placed on encouraging policy reforms and economic adjustment through loans for specific sectors and for operations aimed at improving economic structures. About one quarter of the present replenishment will be used for that purpose.

Membership of IDA is divided into two classifications. The richer member countries which provide the vast bulk of IDA's resources are known as Part I members, while the developing countries, some of whom also contribute to the replenishments on a voluntary basis, are known as Part II members. When Ireland joined IDA in 1960 we were at first a Part II member and were not required to participate in the replenishments. We did, however, make an initial subscription of $3 million on joining and made a voluntary contribution of $4 million to the third replenishment in 1971. We assumed Part I status in 1973 and, since then, we have been a regular contributor to the replenishments and have participated in two special facilities which were needed to top up IDA's resources in 1984 and 1985.

We have informed IDA that, subject to legislative approval, Ireland would be willing to contribute $13 million to the new replenishment. This sum, which represents £9,660,000 in Irish pounds, maintains our pro rata share of 0.11 per cent in the fifth, sixth and seventh replenishments and enables us to make the extra contribution of $350,000, to which paragraph 5 of the Explanatory Memorandum to the Bill refers, towards the addition to the replenishment level above the initial $11.5 billion. The payment of our contribution will be spread over the years 1988 to 1999, as IDA only calls on funds according as projects being funded by the replenishment are implemented.

Ireland's membership of IDA was authorised by the International Development Association Act, 1960. Our contributions to the various replenishments have each been authorised by amendments to that Act and this Bill will enable us to make our contribution to the latest replenishment.

Ireland's contributions to IDA are part of our official development assistance programme. IDA's concern with the needs of the poorest developing countries, particularly those in Sub-Saharan Africa, reflects closely the priorities of our own bilateral ODA programme. Consequently, we have traditionally been strong supporters of IDA. When enacted this Bill will affirm our continued commitment to the objectives of IDA.

I, therefore, recommend this Bill for the approval of the House.

We in Fine Gael welcome this Bill and support it. I thank the Minister of State for his fine and comprehensive introduction setting out the function of IDA and the World Bank and the whole replenishment process. We have in the past had debates on this measure in the House and it has given Members who are interested in this area — and would that there were many more — an opportunity to range over the whole Irish policy on ODA. I imagine that those who contribute today will — certainly I will — seize the opportunity to address this subject.

As the Minister has said, the Bill enables the Government to make a total payment of £9,660,000 to the eighth replenishment of the International Development Association. IDA is generally referred to as the soft loan arm of the World Bank and it was established in 1960 to provide concessionary assistance to the world's least developed countries or, as they are known in the Third World jargon, the LDCs. As the Minister stated, these loans are attractive because they are interest free and they have a ten year moratorium.

It is very important to make it clear that this does not represent any tremendous largesse on the part of the Government. As a Part I member of IDA, Ireland is expected to contribute to the periodic replenishments and it is mandatory on us to do so because of a previous commitment which we freely entered into and, of course, we are obliged to honour that commitment. The poverty in these least developed countries demands a response from us and I am very pleased that we are so responding. The subject matter of the Bill, when one removes the more desiccated facts and figures, is about one of the most fundamental questions, one of the biggest and most serious issues facing our global village. It is the single most important issue, in my view, facing the international community and we ignore it at our peril.

Often development is taken to mean economic development only. Indeed, many people measure development by means of the economic indicator, the GNP per capita. But development is about much more than that. It means more than negative freedom from hunger, or fear, or oppression in any of their different guises. It means creating conditions in which people can develop positively the full potential of the human spirit. We have seen only too clearly in many developing countries how poverty and under-development have bred insecurity which, in turn, has spread repression and intolerance.

Injustice and under-development are not separate; they are opposite sides of the same coin and they reinforce and they feed off each other. There are many examples of that throughout the world. Later today we will be talking about injustice and oppression under Standing Order 29 — injustice and oppression which are horrendous — obtaining in South Africa, where it is even less easy to understand and comprehend because that is not a poor country by any standard. Nevertheless, it is prey to probably the worst form of oppression and injustice in the entire world today.

By the same token it is true to say that justice and development are intimately linked. I believe that no society which tolerates injustice can truly call itself developed and we must continue, as we have done in the past, to condemn unreservedly abuses of human or civil rights wherever they occur.

The first responsibility of any Government — of course we are talking of this Government today — naturally is to their own people and the question must be asked: why then should Governments involve themselves in the development of other peoples in other countries. This may seem a basic or, indeed, a superfluous or unnecessary question to ask but it is being asked increasingly in countries which are developed. As the international recession continues and the pressures on living standards increase and intensify the question is being asked more frequently.

Recently while driving I was listening to the Marion Finucane "Live Line" show on which there was a discussion about why we are giving when we have so much poverty and, indeed, we have poverty in this country. The question was ably responded to by an official. Tony Meade, from Trócaire who made the point that, while charity begins at home, it does not necessarily end there and that this is a logical extension of our concern for those who have less than we have ourselves.

It is important to keep issues of development before the public. The considerations which cause us to be involved in development, both at the level of Government and as a people, are multiple and complex but they can be grouped under three headings. There is a very clear imperative, a moral and humanitarian imperative. As a relatively prosperous country we have an obligation to help those countries and peoples who are less prosperous and who require outside assistance to develop themselves. There are undeniably serious economic and social problems in this country at present but, despite all of this, we ought to remind ourselves that Ireland is, in fact, the 25th richest country in the world out of about 160 countries and is incomparably better off than most countries in the Third World.

I have had the opportunity — and I am very grateful to the people who gave me the opportunity — to witness poverty in a Third World country. It is something that has never left me and I hope it never will because it was just about the most fundamental shock to the system anybody could get to actually witness. In my case it was urban poverty in Manila in the Philippines and indeed I saw rural poverty as well. In many ways rural poverty is able to fend a little bit better for itself than urban poverty where the density of population and the consequent squalor and ensuing degradation of people are tangible and tactile and affect the senses and are absolutely overwhelming. Anybody who has been privileged to witness that will always give the fullest possible commitment to any measure such as this legislation or to any fundraising endeavour on behalf of the Third World and will be able to defend and explain their commitment and challenge those who wish us merely to look inwardly and maintain a position of isolation.

To those who say we should look after our own poor first and that charity begins at home, I say that our concern for underprivileged people in the Third World is no different from our concern for underprivileged people here in Ireland. As I have said it is an extension of that concern. We must always help those who are most in need wherever they are. We cannot close our eyes to deprivation in other lands on a scale unimaginably greater than even the direst poverty in Ireland. We have dire poverty in this country and I do not discount it for a second. Sadly, it is a condition that is on the increase and our society is certainly becoming more polarised as a consequence.

Another reason we must recognise our responsibilities to Third World countries, apart from the moral and humanitarian reason which I have covered, is a group of considerations which might be determined as economic. There is an element of self-interest in developing links with the Third World. We have much to gain from high living standards and greater economic activity in developing countries. We are a small country. We are critically dependent on exports and exports to the Third World offer us an opportunity, offer us new markets, offer us an extension of our own economic activity. We have to be very careful as to what markets we follow and how we do this so that we are clearly seen not to be in any rip-off situation but to be conducting our business and our trade with developing countries in a moral fashion. Nevertheless there is, of course, a consequent spin-off. The semi-State sector has a turnover of some millions of pounds in the provision of services to developing countries and there is not necessarily a contradiction between the two motivations, the moral and the humanitarian, so long as we keep our central objective in mind and that is one of a transfer of resources to the developing country.

There is a third group of considerations which prompts us to involve ourselves in this area. These would be political considerations and related to our fundamental objectives of foreign policy. The maintenance of a stable, secure, developing international system is of extreme importance and it is necessary that there should be order and coherence in our world. If there is under-development there is a threat to all of us and our stability as a global village, as a whole entire world, is undermined in some way. Debts in some developing countries have raised the spectre of a crisis in the international banking system and if that ever did materialise it would have extremely serious and profound results for our very vulnerable economy here. So, for all of those reasons, because we live in the shadow of one another but primarily, to my way of thinking, for moral and humanitarian reasons, we should be to the fore in supporting issues of development, in providing funding and services and personnel for the Third World.

Despite our own budgetary difficulties, in my view it is extremely important that the awareness of development issues should be heightened and increased among the general public. In this way political leadership can be more assertive in support of aid and aid can assume a higher place on the political agenda and as a consequence, in the scale of priorities as it is viewed by the public. The essence of the challenge is to ensure that the public who, as taxpayers, are the ultimate providers of aid resources, understand the purpose of assistance, know the facts about aid and appreciate the record of its effectiveness and, indeed, when it fails, understand the reasons for its failure.

Only in this manner can the public make informed judgments about the priority to be accorded to development assistance expenditures. Such public understanding can be enhanced by the efforts of both private and public organisations to communicate the important role of aid in development. I pay tribute to all of those organisations who make Trojan efforts to bring to the fore issues of aid, Trócaire, Concern, GOAL, to all the NGOs who, despite our own difficult financial position, have not lost sight of their vision as the very reason for their existence and who bombard — and rightly so — the Irish people with information and keep issues of development to the fore.

In speaking of this, I am afraid I cannot but voice my criticism of the present position in this country on issues of development where they are affected by our political system because, to my way of thinking, over the last year issues of development have been kept on the political back burner and there has been a disturbing cut in funding. Obviously I intend to refer to that. Most people concerned with issues of development have deplored it; nothing can be done about it now for 1988 but I hope in the course of my contribution — and I do hope other Senators too from all sides of the House will join in to make a very concerted effort to implore the Minister for Finance, or the Minister of State who is with us here today, to ensure that in the 1989 Estimates more can be done in providing funds for development work because there has been a disproportionate cut in that area in the 1988 estimate.

Leaving aside the issue of funding which I will develop, I want to speak about this massive falling-off in enthusiasm, in interest and in political energy in this whole area of development. The present incumbent of the Office of Minister of State at the Department of Foreign Affairs with special responsibility for development co-operation is, I am sure, a most worthy person. I have met him. I respect him and my criticisms, I emphasise, are not personal criticisms. I intend to criticise the role, as I perceive it, and as I suspect many people concerned about development issues perceive it. Those of us who care about this issue — and it is a growing number of people and particularly of young thinking people — have been sadly disappointed at the lack of dynamism, the apparent lack of policy and in general a lacklustre performance coming from that quarter.

I emphasise that I am not talking about the cut in funding because the sort of things I would wish to see done can be done with energy, with drive, with enthusiasm, with goodwill, with imagination, with concern and none of those things necessarily requires the harnessing of vast sums of money. I believe this attitude is not so much the attitude of the present incumbent to whom I have referred but is coming directly from the top and I propose to spell out how this is so.

When the present Taoiseach was appointed Taoiseach in 1982, he did not include among his Ministers of State, a Minister at the Department of Foreign Affairs with responsibility for development co-operation. In fact, he described the post — and I certainly have never forgotten his description because it was a particularly unfortunate but memorable one — as superfluous and supernumerary. The very same Taoiseach, on regaining power in 1987, failed to establish an Oireachtas Joint Committee on Development Co-operation. Now it is generally agreed that the Oireachtas Joint Committee on Development Co-operation did much to stimulate interest, to educate, to inform, to highlight and to bring to the attention of Members of the Oireachtas and, indeed, the wider public through their sterling work, issues of development and situations in developing countries. I pay tribute to the members of that committee. I was never fortunate enough to be a member of it myself but those who were members of it, who worked, gave a commitment and generally heightened the level of awareness of Third World issues. Certainly, in the Seanad, over the years we debated the various reports coming from the committee and, indeed, they attracted the attention of the media and, as a consequence, the wider public.

It is very interesting to note that at the height of the Bob Geldof Band Aid enthusiasm the same Taoiseach, who was then Leader of the Opposition, in a flood of enthusiasm made the statement that he felt the issue of development co-operation deserved the status of a full Cabinet Minister. I regard that as populist politics. It might be forgiven or smiled upon indulgently, as one would smile on seeing the Taoiseach standing beside Stephen Roche, Bob Geldof or whoever, but in a very sensitive area, in an area where expedience has no place at all — it is to my mind an area of life or death — it is politically immoral and it deserves to be condemned. I do not take pleasure from condemning it but I will highlight it because it is reprehensible.

This political disinterest that I talk about must be catching because in the course of preparing for this debate I was taking a look at the debate in the Dáil which took place on Thursday, 3 March 1988. It came to the time for the Progressive Democrats to make a contribution to the debate and as reported at column 1610 of the Official Report, Deputy McDowell, representing the Progressive Democrats got to his feet and said:

The Progressive Democrats support the Bill and I have nothing further, relevant or irrelevant, to add to that.

Deputy McDowell then sat down again. Now, what I cannot understand is what does this convey? I am of the school of thought which feels that when people speak in the Dáil or Seanad, they should make cogent, coherent and make reasonable points and that there is no need for longwindedness. I hope I am not undoing my words in the course of my contribution here this morning. To my way of thinking, that remark by Deputy McDowell is laconic to the point of being insulting to the issue. Could he not stir himself even to make an impromtu speech, if he did not have the information——

Sorry, the Senator may not criticise a Member of the other House. Neither may she refer to the speeches in the other House. In passing, she may mention them, but not otherwise because they are not here to defend themselves.

Thank you for your correction. I will then refer to the perceived apathy from a particular political grouping which could not bring itself to prepare a policy, or a point of view, or a contribution, or a statement in relation to this legislation which deserves comment and deserves an input and which was sadly very poorly treated by the lack of contribution from that quarter.

I now turn to the disappointing cuts for Third World funding in the 1987 Estimates. I realise that at this point it is somewhat historic. I raise it in the hope that the next set of Estimates will redress the imbalance and will bring forward additional and increased aid, or at least peg it at the level it was at before. We should not treat it in a cavalier, negative, unimportant fashion and feel that it is something on the margin that can be snipped and nobody will notice. Because — make no mistake about it — people do notice; people do care and people will protest if harsh and severe cuts are made in this area in the next set of Estimates to come before the Houses of the Oireachtas.

A main feature of the last Estimates was a reduction in the aid budget from £43 million in 1987 to £32 million in 1988. That is a cut altogether of 26 per cent. Given that roughly half the aid Ireland gives to the Third World is compulsory on us as a member of the United Nations, by virtue of the very measure we are discussing here this morning, and by membership of the EC, in reality the cut on the half that we contribute voluntarily is more than 50 per cent. That is an appalling cut. I tend to think that the Government felt it was a soft target and that is why they went after it. To my way of thinking it was in so many ways the unkindest cut of all because it was directed at those least able to bear the burden.

The largest cuts have fallen on bilateral aid, that is, the aid the Government gives directly and voluntarily to the Third World. Of course our bilateral aid programmes are concentrated on four priority countries, Lesotho, Tanzania, Sudan and Zambia, and the funding has been reduced by 29 per cent, from £14 million to £10 million. Three of these countries are on the United Nations list of the 40 poorest countries in the world with per capita GNP of around $200 compared to Ireland's 5,000 US dollars. This cut affects the poorest of the poor. The provision for disaster relief is at a nominal sum of £1,000 compared with £505,000 in 1987. It is a derisory sum given the alarming reports which we have received from various quarters of the world and in particular from the Sahel region of Sub-Saharan Africa where there is the threat of renewed famine in Ethiopia.

On the multilateral side, in the aid we give through the UN or the EC, the scope for cuts was small. Only 10 per cent of this aid is voluntary. Our voluntary contributions to UN agencies such as UNICEF, the United Nations development programme and the UN High Commission for Refugees have all been cut by 67 per cent. The contribution of £1.5 million to the World Food Programme which provides food aid in famine situations which the Government pledged in March 1986 will not be paid according to the Estimates.

In these circumstances, the case for more money in the Estimates next year, or towards the end of this year, is underscored by the need and the urgency for increasing aid to the Third World. We all know we have an economic crisis and we all know that very painful adjustment measures are being required from us in the area of health, the environment, in education and in every sphere that affects people. On this measure I am sure we will all see eye to eye.

It is important, notwithstanding our difficulties, to remind ourselves that we are, as I have stated already, the 25th richest country in the world and that we have accepted a responsibility to contribute towards the alleviation of mass poverty which leaves an estimated 500 million people, men, women and children, severely malnourished and under-nourished. The reasons there has been a deterioration are largely structural ones. There has been a collapse in commodity prices in many Third World countries. They have fallen, in many instances, to their lowest level in some 30 years and as a result the purchasing power of the Third World exports has fallen. There is a massive burden of Third World debt which now exceeds one trillion United States dollars and there has been a virtual disappearance of new voluntary commercial lending and stagnant ODA which resulted in 1986 in an outflow of resources of over 30 billion United States dollars from the Third World. That is just so shocking and disturbing a figure that it is hard to comprehend that that should be so.

The result of dramatically reduced earning capacity and borrowing capacity has been that roughly two-thirds of developing countries have experienced negative or negligible growth rates from 1980 to 1985. The human cost of all of this has been documented by UNICEF in a report The State of the World's Children 1987. The report states:

Malnutrition during the 1980's is increasing in many parts of the developing world. Evidence of rising malnutrition exists in ten African countries; in Belize, Bolivia, Brazil, Chile, Jamaica, Uruguay and parts of the Philippines and Sri Lanka. Infant mortality has been rising in some areas — including Barbados, Brazil, Ghana and Uruguay — after decades of decline, while the trend towards improvement has been halted in at least 21 countries. The proportion of low birth-weight babies increased in at least ten countries between 1979 and 1982, including Barbados, Cameroon, Guinea-Bissau, Jamaica, Malaysia, Rwanda and Tanzania. Diseases thought to have been eliminated have re-appeared — yaws and yellow fever in Ghana, for example, and malaria in Peru.

They are just the countries from which information is available.

The need for ODA has never been greater. Despite the adoption by the United Nations in 1970 of an aid target of 0.7 per cent of GNP to be allocated by industrialised countries Governments each year in the Third World, the OECD average is currently half of this target figure. Ireland's ODA programme has grown from 0.05 per cent of GNP in 1974 to 0.25 per cent in 1987. Although we are still way below the UN target, there has been slow but steady growth in the allocation over the past 13 years. Sadly, last year the situation changed, and changed dramatically. For only the second time since 1973, and by the greatest amount ever — back to its 1981 level of 0.185 per cent of GNP. I could not speak on this issue without adverting to that most disturbing fact. I want to make the strongest possible appeal, based on everything I have said in the course of my contribution, that this should not be allowed to become a pattern and that there should be remedial action and a better funding scheme put in place for next year.

During the seventies there was all-party agreement in the Oireachtas on an interim aid target which involved increasing ODA by 0.05 per cent per annum until the UN target was reached. There was also agreement that progress towards the UN target should be attained irrespective of any temporary domestic financial problems. For example, Deputy O'Kennedy repeatedly stated Fianna Fáil's commitment to an interim target of 0.35 per cent of GNP, or half the UN target, to be reached over a five-year period. He always said that it would be "irrespective of budgetary or balance of payments problems".

I do not think the issue has been seriously addressed in the context of our present financial position. I would like to know if any moves will be made to ascertain if that consensus still exists between the parties and the Government. I feel confident that I can give my party's commitment to seeing that we keep pace with our commitments in that area. It was interesting to look at the Dáil debate and see who made contributions on the Bill we are discussing. Three members of my party made contributions; the Minister spoke for the Government; and no other member of Fianna Fáil spoke. I have dealt with the "contribution" of the Progressive Democrats, that of that stalwart, sterling member of the Labour Party, Deputy Higgins who gave his usual magnificent performance, and of The Workers' Party.

I have spoken of the primary reason we should make our contribution towards aid for the Third World and of the self-interested reasons. All in all, I hope we will have more debates on Third World issues in this House — would that they also took place in the other House. There was definitely over the past four years an enthusiasm and an energy in regard to developments in the Third World. I should like to pay tribute to people like Deputy George Birmingham and Deputy Jim O'Keeffe, who held the positions of Ministers of State with particular responsibility for development co-operation, who invested their portfolios with the drive, energy and the enthusiasm which are so sadly lacking in the present incumbent. I do not mean my criticism in a purely partly political sense; it is all too easy to do that. I make it because I am genuinely concerned about the issue and because I am afraid that I am witnessing a lacklustre performance which is doing an injustice to the whole issue which, as I stated at the outset, is one of the most fundamental, significant and important global issues confronting mankind.

This is a Bill which I welcome and I know it will be welcomed on all sides of the House. The Bill is asking for full support for the Government's contribution of £9.6 million to the replenishment of the resources of International Development Association. We are automatically a member of IDA by virtue of the fact that we are a member of the World Bank who lend to developing countries on attractive commercial terms, or very nearly so. IDA, on the other hand, grant major concessionary assistance, such as interest free loans and moratoria on loans which are very attractive to the various beneficiaries. They grant concessionary assistance to the poorest regions and to the poorest of the developing countries. IDA have been to the forefront in those regions in financing certain types of projects, projects which are basic for living such as horticulture, agriculture, the ability to grow crops for food, land development, health and education.

Our replenishment this year is $13 million, or £9.6 million as a Part I member. It is interesting to note that since joining in 1960 as a Part I member we have increased that grant from $3 million to $13 million this year. That is clear evidence of the concern on the part of this country.

Naturally, we would all like to grant more money to help to alleviate the awful hunger and hardships in the Third World. As a nation we contribute to this extremely critical and deserving cause, the unfortunate famine and hunger in the countries of the Third World. It is understandable that this debate — indeed, Senator Bulbulia has already moved into another area — will extend into the area of ODA which is the umbrella of the Department of Foreign Affairs. As we know the amount voted to ODA was cut this year from something like £42 million to £32 million, a reduction of more than £10 million which we regret. Understandably, there was criticism of the Government for making such savings as, indeed, there is when cuts take place in other areas of Government spending. However, national debts, borrowing requirements and the tightening of belts are regrettably the order of the day. I find it regrettable that the Vote for ODA in the Department of Foreign Affairs was reduced, and passed, for 1988. I want to stress that we are all extremely sorry about this, none more so I am sure than the members of the Government. It is my hope that in the years ahead the increase in this area will be substantial.

As a nation we have a very honourable reputation for contributing funds to help the starving children and people of the Third World. Support for this cause strikes at the very heart of the Irish people. One of the reasons for this is, possibly, the fact that not too long ago, over 100 years ago, we experienced a famine ourselves. Certainly, we have been extremely supportive of this important cause and, as Senator Bulbulia has mentioned, great tribute should be paid to the various voluntary organisations like Gorta, Trócaire, Concern, GOAL and the many other voluntary groups who are working for the elimination of hunger in Third World countries. Who will ever forget the fabulous work of Bob Geldof, and the Band Aid worldwide spectacular, that raised millions of pounds for this serious problem that causes a quarter of a million children of the world to die of hunger and disease? Subsequent to Band Aid Bob Geldof on television addressed Mrs. Thatcher and other world leaders and asked why we have mountains of butter and other food stuffs while, at the same time, we have children in the Third World dying of starvation. I am sure he is not alone in asking that question. It has been asked by peoples of the world who fail to understand this. It ought to be explained in greater detail.

The great majority of our people accept three meals a day as normal. We take this for granted, but for the starving millions across the famine racked Third World it would be a massive luxury. To many it is incomprehensible why the US, and Europe, both very vibrant economic power blocs with a superabundance of food, cannot hand over the excess to these starving people as an act of humanity, or as an act of brotherly love. Some think it is simply a matter of loading up, sending the ships off and ending for ever the terrible images of hunger depicted for us on our TV screens. We have all seen those scenes and expressed our concern for the people photographed. If things were that simple — unfortunately they are not — the Irish Farmers' Association proposal to turn the Republic's over quota of milk into milk powder for the starving would be on the way to implementation. Tragically, we live in a time when hard-hearted, powerful governments use famine relief as a political weapon and, regrettably, that seems to be very much the order of the day.

There is also the problem that famine relief tends to displace normal commercial world trading. Trade cannot be distorted to the extent that producers are forced out of production because of the collapse of world prices. It is a well-known fact that America will burn their grain rather than see its price collapse. The EC Commission refused to take up the IFA proposal and indicated that the reason is that they have already a comprehensive food aid programme in place. That is reasonable enough to assume; it is a good enough excuse but there must also be an element of suspicion that the Commission want to demonstrate that their super-levy regime is working. With Irish dairy farmers hopelessly over quota and cows now at peak production, the Commission are making a very strong point, which is a valid one, but it is a lesson that will cost Irish farmers something less than £20 million. The IFA proposal was a novel and commendable one. I am prepared to accept that there was an element of self-interest in it, that it was more self-interest than, perhaps, charitable intent. That is fair enough; I do not mind what the motive was but it seemed to me to be very commendable.

It seems odd that the milk year should be about to end when the curb on output is about to peak. There is now the danger that much of this milk will be poured down the drain as over quota milk will cost farmers something like 20p per gallon if they send it to the creamery. It is crazy to have grain being burned rather than see the price of that commodity collapse. It should not be that way. I hope the Governments of the world will adopt a commonsense rather than a cold economic approach to this issue. It is time that all Governments introduced a degree of common sense into this important area.

Like Senator Bulbulia, I have moved away from the terms of the Bill, which is understandable. The Bill is straight-forward and we should all support it. We have been a very strong supporter of the IDA and this Bill further confirms our strong commitment to the very commendable objectives of IDA. I welcome and support it.

There can be fewer greater exercises in political hypocrisy than the Government bringing this Bill to the House and attempting to claim for themselves some concern for development aid when quite clearly they have targeted development aid as one of the softer targets where you can have much hand wringing but where you can rely on the right wing Opposition parties wringing their hands at great length but not being willing or prepared to do anything effective to prevent the destruction of much that has been done in terms of overseas development aid by this country over the past 14 years. It is a matter of great frustration to hear people who support what the Government are doing telling us that somehow if they were there it would be different.

We never reduced it by those kinds of figures, ever.

The political climate here which enabled such outrageous assaults on the poorest of the world to be got away with was as much created by two of the present Opposition parties as it was by the present Government party. Indeed, the political climate within which the present Government have to operate was created by the incessant right wing propaganda carried out by those two parties, both in and out of Government. If the consequences are not entirely what they anticipated, that is either a reflection of their naïvety or of their lack of capacity to think through their own policies.

There could never be a philosophy of public expenditure similar to the one now in practice which could preserve those who are described as the least vulnerable. It is something close to an exercise in political opportunism to pretend that you can create a public climate which accepts that we have a Third World scale debt crisis here — it is something I do not accept — and, at the same time, think that things like Third World aid would not escape the targets of those both inside and outside the public service who are fundamentally opposed to the principle of public expenditure and also fundamentally opposed to the principle that aid is in any way related to development. There are, of course, individual exceptions within those parties, people who are extraordinary in their naïvety and who are equally committed with myself and others to the concept of Third World aid. I am not attributing any personal lack of honesty or integrity in particular to the two Members of the Fine Gael Party who are sitting in front of me. They have not thought through the logic of the political and economic ideology to which they now subscribe and which, inevitably, results in assaults on the poor. That is why this Bill is a glorious exercise in barefaced hyprocisy. It is something the Government could not get out of. We will watch with interest what happens.

I am not unaware of well-authenticated stories that this is not the end of the cutbacks in development aid, that we will have another slashing job next year and the year after. The conventional wisdom of the new right orthodoxy is that a bankrupt country cannot pretend to be interested in development aid, they cannot afford to be interested in development aid. We have the most extra-ordinarily dishonest comparisons being made which suggest that we are as badly off as Mexico or Brazil. When we have that climate of opinion being created, the climate for State bilateral development aid is effectively polluted against those who support aid and in favour of those who were well represented by what Senator Bulbulia quoted of the non-speech by the arch-mandarins of this new right orthodoxy who could think of nothing to say. Anything they would have said would have been such an affront to their own ideology that they were at least honest in saying nothing.

That is why it needs to be said that the International Development Association is probably one of the least useful forms of development aid. It also needs to be said that a considerable part of the problems of IDA are related to the malevolence of the United States of America in its singular obstinate refusal to contribute anything like a fair share of the contributions to the funding of that body. I want to quote from a document produced by Trócaire which makes some references to the International Development Association. We would be wrong to assume that it is some sort of benevolent aid-giving institution. That document, called North South Issues— it is somewhat dated but the principles and philosophy have not changed — of October 1984, No. 5, regarding the International Development Association says that while the terms are softer, i.e., the loans are interest free and there is a ten year moratorium on repayments—

...the criteria used for appraising the viability of projects are intended to be the same as those applied by the IBRD...

The International Bank for Reconstruction and Development operate on the principle of an acceptable level of economic return on the investment. That report continues:

Because they share the same staff and methods, the International Bank for Reconstruction and Development and IDA are often referred to jointly as "The World Bank".

The World Bank, apparently, does not really exist. I should like to quote from the same document some further comments:

...it is exceptional to see Bank funds being allocated to those without adequate security, for example, the landless.

They are the same economic criteria for either the International Development Association or any of the other agencies which go under the general title of the World Bank.

So outrageously restrictive are the criteria used by this association that the European Commission, which is hardly a centre of radical left wing economic thought, was moved to comment that one might be forgiven for thinking that the point of aid is not to put an end to intolerable hardships, but to fund the safest, most profitable investment. That is not what I said but what the Commission of the European Communities said as quoted in this document. The quotation was taken from an EC Commission Memorandum on the Community's Development Policy issued on 5 October 1982.

When we are giving money to the International Development Association we are giving money which will be allocated only where particularly free market ideologically loaded experts and officials within what is called the World Bank are satisfied that a project can generate an economic return. We are not giving aid without strings; we are not making grants without strings; we are actually looking for an economic return on our investment. It would be interesting to hear the details of this.

The International Development Association is a loan making body; it is not a grant making body. The International Development Association is an agency to provide soft loans but it does not provide grants. Those soft loans must be based on strict economic criteria. I accept that we may not get a return on our investment but the fundamental fact is that we are using criteria which are, even in the judgment of the European Commission, unacceptable and unfair.

If one is to look at the ability, willingness or the fairness of such criteria, one has to look at the whole structure of the world economy. The world economy is becoming increasingly exploitative because, first of all, by virtue of a calculated exploitation of labour, a number of countries in the Pacific region and in particular in South East Asia have managed to achieve astonishing levels of economic growth, but they have been achieved by the most appalling exploitation of labour. What is happening now is that the securities, wage rates and conditions many people in the developed economies have taken for granted are now being challenged because of the fact that the employers in Western Europe and North America are saying: "We either get similar or equivalent conditions from our work forces in North America and in Europe, or we shift the business to South East Asia".

For instance, in Korea you are not paid overtime unless you work more than 60 hours a week. The average working week in South Korea is 53 hours. The average hourly wage is about a dollar and a half an hour. People are being told in the western economies that they must compete with the diligent, hard-working, committed people from South East Asia, that we have been feeding ourselves too easy a line of work and that, therefore, our work forces must accept similar models for themselves for the future. What nobody bothers to tell us is that in all these model economies none of these awkward things such as democracy or trade unions is there to encumber the magnificent new breed of entrepreneurs. Korea has the worst level of industrial accidents among industrialised countries and they do not propose to regulate that because deregulation is another "in" phrase. What we are actually creating is a new exploitative world economic order in which the leverage of labour is being severely restricted and the capacity of capital to exploit that labour is being increasingly protected by Governments.

All discussions on the long term philosophy of development must not be based on a simple perception of a giving of aid, though nobody in this House should minimise the significance of aid and, like Senator Bulbulia, anybody who has seen what can be done with relatively small sums of money will appreciate this. I suggest that all those experts who are advising the Government about cutbacks in aid should be invited to go on a tour of the places where Irish aid is given and then see if they would have the heart to say that we cannot afford it. I invite them to be the messengers of the bad news that we have no more aid. Let those who write newspaper columns and produce lengthy memoranda for Governments go and see what it is like and carry the message of what we have done to these people. Even the most cold-hearted among them — and it appears more and more that the first criterion of a good economist is that you must have a heart of stone — would be forced to reassess their positions.

In that context we need to look at some of the other issues. We have, for instance — and it is directly related to the problems we have in this country — the international debt crisis. Senator Bulbulia referred to it and it has been referred to before. I will give two examples. In order to meet its commitments, Brazil will have to pay 60 per cent of its gross domestic product in repayments to various international lending agencies. That means that 60p out of every £1 produced within the Brazilian economy will have to be handed over to various international financial institutions, most of them private banks and many of them based either in the United Kingdom or in the United States.

Mexico will have to hand over 50 per cent of its gross domestic product to finance its borrowings. Let it be made clear that, while many things are obviously flexible in this world, while the rights of labour are quite clearly flexible, the right to earn a living wage is something that is flexible, the right to be in a trade union is something that is flexible, the right to free expression is something that is flexible, indeed habeas corpus is something that is flexible, the one great inflexible is that international finance must have its pound of flesh irrespective of the human cost.

There can be no development of any kind if the international debt crisis is allowed to continue. I would counsel everybody in politics in this country who accepts a similar formula where close to 40 per cent of gross domestic product is now handed over to both national and foreign banks should read the Vatican document on the international debt crisis. Perhaps we could extend our morality out of the safe areas that we are so good at preaching about and ask many of our national and international financial experts: do they have a conscience when it comes to their role in business? Do they ever believe that they must apply similar concepts of morality when they are talking about the extraction of exorbitant interest rates? For instance, in this country the average rate of interest on the national debt is close to 9 per cent, which is three times the rate of inflation. That is not a reasonable return. That is usury and it is quite similarly true for many of the developing countries.

The Minister has to leave for a vote. If you wish to continue in his absence you have the privilege to do so.

I would prefer the Minister to hear me.

Sitting suspended at 1.35 p.m. and resumed at 1.45 p.m.

I was talking about the international debt crisis and I probably said more than was needed. The issues are related and the relationships and the linkages must be identified if a new world economic order is to be constructed. A new world economic order cannot be constructed on the basis of the present apparent immutability of the debt problem of Third World countries. There can be no development in most of the Third World countries if the present burden of debt is not substantially alleviated. There is no realistic level of economic growth that can be expected in those countries which could possibly enable them to develop in any way in human terms if the present level of debt must be sustained.

We may well have spectacular figures about percentage growth in GNP because, unfortunately, economics being such an appallingly under-developed non-science, economists will only quantify those things they are able to quantify and those things which they are not able to quantify, they will leave out and pretend they are not important. As I read in the report of the Organisation for Economic Co-operation and Development, economists had no problem working out that the United States had the highest standard of living in the world and they worked it out on the basis of per capita GNP and the availability of consumer durables. Interestingly, the OECD did not see fit to refer to the fact that, for instance, the United States has a higher infant mortality rate than virtually every other developed country in the world and, apparently, in the words of economists, the infant mortality rate has no relationship to the standard of living.

There are many other areas. Some time I will write a more detailed treatise on economics because, speaking as a scientist, I find the idea that only straight line relationships between two variables exist so intellectually unsustainable as to be laughable, if economists were not so powerful. In fact, one could argue that in this country at least the orthodoxy of economics has replaced the orthodoxy of the Roman Catholic Church as the established ideology. If I had to choose between those two orthodoxies, I would choose the latter rather than the former. The latter at least acknowledges certain motivations external to crude self-interest.

What I am saying, and have been saying up to now, is that the problems of Third World countries, the problems of labour exploitation and of poverty are related to each other, are related to the debt crisis, and are related to a diminishment of freedom. You will not find that the existence of labour exploitation lasts long beyond the development of proper trade union rights and of free democracy. In that regard, I have to say I do not regard the United States in many ways as a particularly well-developed democracy.

There are other areas of international development and of international trade related issues that need to be dealt with. The greatest, of course, is the international arms trade. It needs to be said, and it is a regrettable fact, that the international arms trade is not just a problem for the developed world. It is also a problem for the developing world. The developing world has, in fact, a disproportionately large concern about armaments and the purchase of armaments. It is regrettable again that the largest economic power in the world, the United States, also refuses to accept that there is any connection between development and armaments. The possible release of large amounts of public funds to do something useful seems to have escaped the mentality of the present administration in the United States. One hopes for better things in the future.

One cannot talk about aid and development and ignore the 1,000 billion dollars a year arms trade. It is a symptom of and a cause of under-development and it needs to be addressed. Countries like ourselves could adopt, and can adopt if we are prepared to think it through, a moral position of criticism and of reproach. I do not think we can do it at a time when we are knocking crudely £4 million off development aid and are spending approximately the same amount on buying new guns for our Army. Which many people do not believe is in the least bit necessary. We are replacing weapons that are acceptable to armies in countries far more militarily engaged than ourselves.

One could go through a large number of areas of expenditure and talk about things that we apparently deem to be necessary — the one week a year when we allow some men to pretend to be soldiers and some boys to play with guns and we call it training in the FCA. The money would be better used in sustaining our development aid and this would have a higher level of morality behind it than these. There are lots of areas of expenditure which are highly questionable and highly challengeable and which are unsustainable if we are at the level where we have to cut international development aid. I am not saying that these things should not take place at all. I am saying that if the Government feel they are left with no choice but to cut development aid, they should look at their choices again.

One has to look at what would be a solution to the problem of development. The first requirement for a problem of development is a change in the international terms of trade. That is probably further away from us now than ever it was largely because the single biggest economic power in the world does not accept that any such change is necessary. We have to accept that for the foreseeable future increasing amounts of aid will be needed to fund development. In particular, we have to accept that the most effective form of aid — and our experience confirms that — is bilateral aid. It is, therefore, particularly painful that that will bear the burden of these immoral cuts in overseas development aid.

I had the great good fortune to visit Tanzania and Lesotho less than three years ago. One of the most impressive things I have ever seen was a project run by Concern in Tanzania, staffed entirely by young Irish people, most of whom were in their early twenties, and all had some professional qualification. The first thing that needed to be noted was the extraordinary fluency in the local languages all these young Irish people had developed not just in Swahili which is the national language of Tanzania, but also in the local tribal language because some of the old people could not speak Swahili and these young people felt an obligation to communicate with them. It is quite clear that the Government decision to cut back on aid will result, in particular, in a reduction in the co-financing of projects developed by non-governmental organisations. Those sort of projects use the commitment and the idealism of the best of our young people and give them a feeling for the injustice that exists in the world, a feeling that they can contribute something and an interest which, when they return to this country, is manifested in particular in the activities of Comhlámh. All of that will be sacrificed on the altar of a soft target cutback. It is something of which and this Government, in particular, should be ashamed.

Underlying any debate on development are questions of morality. In my relatively brief seven years here politicians in this House have had more than enough opportunities to pronounce on morality. We have had moral issue, after moral issue, after moral issue on which people claimed the conscientious right to dissent because there was a question of morality involved.

I look forward to the day when some Irish politician discovers that development aid and the starving of the world are a conscience issue as well, and somebody says: "I claim the right to dissent from Government policy because development aid is a matter of conscience for me and a matter of morality".

By God, it should be because if we read the Gospels instead of listening to the distortions of our Churchmen we would know that the One we believe in had far more to say about those who left the hungry hungry and the naked unclothed than He did about those who succumbed to the foibles of the flesh. Let me refresh the memory of this House: "I was hungry and you gave me not to eat; I was thirsty and you gave me not to drink". The most explicit condemnations, the most explicit morality, the most explicit statement of what constitutes a Christian and a Christian community relate to how the poorest are treated, not to what standard of sexual morality we subscribe to. It will be both health and wholesome if somebody in a Government party at some stage in this country's development discovers that standard of morality which is the real Christian standard of morality and which is based on the teaching of Jesus Christ, not the distortions which have been foisted upon us by successive Church authorities.

I find it particularly regrettable that a party I had come to respect both in my childhood and my adolescence and, indeed, into my early adulthood could have succumbed to such an extent to the new orthodoxy as to be able to abandon the poor of the world in the way that this Government have done. I never believed that Fianna Fáil were a left wing party. I always believed they were an independent party who were never in the pocket of any economic establishment or economic orthodoxy. That appears to be lost. The ideological perception of bankers in the Department of Finance that we are a bankrupt country has taken over.

Given the philosophical decisions which underline cutbacks in development aid, given the less than subtle hints that this year's cutbacks in aid are only the beginning of a sustained assault on development aid, given that what is being done is effectively taking bread out of the mouths of the poor, to produce a Bill like this and self-righteously claim commitment to the poor of the world is, as I have said, an exercise in gross hypocrisy. Because this is better done than not done, I will not oppose it, but I do not think the public should allow themselves to be deceived into thinking this is anything other than a cynical gesture of political expediency which masks the assault on development aid which this Government are carrying out.

I support the Bill. I have some of the reservations Senator Ryan has put forward, but the Irish people may well be able to cope with the reservations in a way no Government can. I will come back to that later.

Although I did not hear all of Senator Ryan's contribution, I am sure he made the case that money alone cannot solve the problems of the under-developed areas of this world, nor can people who live outside those regions imagine for one moment that they have all the answers and that the people themselves are not to be allowed to find those answers in their own way. Nevertheless, when we look at the patchwork quilt that makes up different races and ethnic groups, and when we look at the different regions, the quality of land and the type of ecology which is required to sustain life in those regions, we realise immediately that there are tremendous contrasts. While there is total poverty and impoverishment in certain areas, there is plenty and riches in others. However, it does not follow that the areas that have plenty and riches in the material sense, are necessarily the richest in spirit, or vice versa.

In the sixties I had an opportunity to make a number of overland journeys, travelling very simply. One journey over a period of six months took me to Singapore and another through Africa and up the Nile. I well remember trying to grapple with the difficulty of seeing poverty, in the material sense, which would appal many of us, and yet coming across people in the poorest of circumstances who seemed to be able to live very integrated, self-contained and contented lives. It struck me that there was an element where we have to meet basic material needs, that is, the bottom line where people need shelter, warmth and food. Once we pass beyond that, we meddle to some extent at our peril. It is only at that juncture that we should be involved with other people, provided we begin to see that we have as much to learn from them as they have from us. It is a learning process as well as a teaching one. In that sort of general framework I suggest that the important thing about the money side of development aid is that no one should be denied what is required to meet the basic needs of life and sustaining life.

We heard from Senator Bulbulia of her experience of travelling overseas to Third World countries and seeing how money is used, we heard the contrast between urban and rural needs, and I agree with her entirely on the point she makes. We also heard how effective money which comes from countries like Ireland can be when used to meet specific needs, particularly if it is used by dedicated and selfless people — and there are many of these in the field. I do not think the problem of world poverty can be met without a change of heart in the western world. I do not see any great indication that this change of heart has come, although there are some signs that a new dawn is just over the horizon. The signs are, perhaps, best indicated by our attitude to the weapons of the world, in particular to nuclear weaponry, and the repugnance increasing numbers of people feel for the weapons industry, and for the development of nuclear warheads. The anti-nuclear campaign, whether unilateral or multilateral, is symptomatic of fear. I would like to believe there will be a change in man's attitude to his fellow man and to the ecology because unless we have that change, we will not feel sorry for people who are not as fortunate, in a material sense, as we are, nor will we understand how and why we relate to the people as we do. We will not have the urge to gain sufficient knowledge, let alone the awareness necessary to deal with the problem.

What we are looking for here is a philosophy which is as applicable to Irish society at present as it is to global society. It may be more urgently required in other parts of the world where poverty is a much more urgent, pressing and pathological problem than we have in Ireland. We are talking about trying to give people the resources to help themselves, and in doing that we are helping them out. The one thing we have to avoid is running the risk of making it a handout. One has seen that in one's own country where money is collected for the poor, taxes are paid for the poor, but the people who pay the money know very little about the poor. In the same way in a sense, we are coping with our global conscience and off-loading some of our guilt feelings when we put money into the international kitty to deal with the problems of the poor. Yet we try to avoid coming face to face with those problems. Fortunately, because of television, we are now much more aware, in the comfort of our own sitting rooms, of how appalling these problems are.

Perhaps the way in which the world is organised, and part of that organisation is the way it distributes aid, is part of the problem. Due to super technology, particularly the technology of communication, images are uniform and expectations have become more uniform. If everybody aspires to the same thing, obviously there will never be enough and there will always be a shortage. With the very distinguished and very well-known ecologist sitting on my left, I hesitate to put forward one of the ecology principles, which is that the more complex and more diverse the eco-system, the more stable it is. Basically that means that the more variety we introduce into our societies, the more of our ethnic culture we preserve, and the more we acknowledge the need for interdependence of the independent units, the more likely we are to retain in the fabric of global or local society, those built-in self-regulating mechanisms which, once destroyed, are very difficult to restore. There comes a critical turn-off point where it may be impossible to turn back.

I am appealing to the western world — and the Irish Government could, perhaps, give a lead on this — to see the problem of aid to the poverty-stricken parts of the world as much a problem of philosophy and coping with the ways in which we look at things today, as it is of moving resources from one part of the globe to another. If in moving the money and material resources, we also move the over-centralised thrust, we will possibly create in other countries many of the problems we are beginning to realise we have here, and which they would be much better without.

I support the efforts being made by the Government, limited though they may be, within the present constraints. I am also glad this is an interest-free loan. There is perhaps a point at which the western world needs to ask whether the concept of getting the money back should not be scrapped, because the time has come when these countries are getting into more and more difficulty, and are having great difficulty in repaying the loan to help get them on their feet. If they are not on their feet as a result of what we have done, there is something wrong with the way we are doing it. We do not have any right to demand back the help we have given them if it has not borne fruit. It may be, in part, the fault of the people who have received it but it may be also, in part, the fault of those who have given it. We need to look at our effort and to think how we can communicate with Third World people so that they can use better the few crumbs from the table we are prepared to share with them. In that context I make a plea to the young people of Ireland to take further interest in the Third World. Already they do as much as any country in western Europe, largely through the outreach of the Catholic Church. I would add in the other Churches, but the Catholic Church have been pre-eminent in the struggle to bring before the people here an awareness of the problems in the Third World and they have also tried to do something positive about them.

In our schools, for example, do we pay enough attention to languages? That does not mean that in every school one has to learn Russian, Chinese, Swahili, Urdu, Arabic and so on, but there is a case for carving Ireland up into regions and having some of the rarer languages learned as an alternative. After all, we learn the Gaelic language and we are proud of it — some of us have tried to learn it but are not so good at it. If we believe in this variety as part of health, if we want to preserve the ecology and the variety of human experience, then we must put our money where our mouth is and start to create, in Ireland, a cadre of young people who are able to communicate with the world in languages the world understands, and not just simply English. That is a very important part of communication. Anyone who has worked in a Third World country and has made an effort to learn the language will realise this. I made a little effort to learn Zulu when I worked in a hospital in the southern half of Africa and the faces of the people in the beds lit up when I was able to speak to them in their own language, however faultily.

Secondly, we need much more awareness. Once again, I make a plea for the concept of national social service in Ireland, not as a means of dealing with the unemployment problem, but as a means of expanding the experience of developing a young citizen so that, with the knowledge he has acquired at school, he obtains awareness through a period of time when the options are totally voluntary but where the period is obligatory. That period would be entry into third level experience, whether it takes him to university, a further college, an apprenticeship, or whatever. Imagine if a big part of that national social service was an exchange with Third World countries — and I emphasise the word "exchange"— so that our young people would go to these countries, see first hand what it is like to live there and learn from these countries what might be of value to them when they come back to Ireland, as well as giving what they can in return. The problem of actually giving would subsequently be so much less, because giving is much easier once there is awareness.

Contributions are essential for the reasons Senator Bulbulia so eloquently outlined. The more money that can be given to specific projects where it is known it will be used in an effective way, the better. Human commitment is very important in a shrinking world of increasing numbers. When we make that human commitment, we recognise the need to bring a variety of talents rather than uniformity of approach to the problems of mankind. In that context, there is a heightened awareness of the problem as well as having knowledge of the problem. That is where we need to engage our young people so that Ireland's policy of positive neutrality becomes a philosophical way of looking at the world.

We have something to give to mankind which is unique. We are no longer talking about neutrality as an assertion of our independence from Britain, on the one hand, or trying to make some sanctimonious virtue out of it on the other, but we have evolved a way of life and a way of looking at the world and the world's problems which allows us to be seen to be a people who are in the forefront of the fight for fair play and the fight against poverty. Finally, we should embrace the philosophy both for the human being and for a sound ecology: share today, conserve for tomorrow.

We welcome this Bill which is uncontroversial legislation. This is the eighth replenishment of the International Development Association since it was established in 1960. I remember one unhappy occasion in the lifetime of the last Seanad — I think it was 1985 — when I spoke in a special debate when this country had to make a special contribution towards IDA because the United States of America — of all the economic powers of the world — welshed on their commitment to the IDA. At that time Ireland contributed voluntarily £1½ million. It was voluntary, not obligatory, but in our generosity, we contributed £1.5 million out of a fund of $1.5 billion which had to be created to make up the shortfall because of the rescheduling of the contributions of the United States of America.

This Bill provides £9.6 million, or around $13 million, to the replenishment fund. The total amount in the fund in the eighth replenishment will be about £12.4 billion. The Minister in his statement here, and when it was introduced in the Dáil last week, devoted much of his time to stating that a lot of this money would be spent in the most distressed areas of Africa. I read from figures provided by the United Nations that 45 per cent of the fund will be spent in Africa. The seventh replenishment was worth £10 billion, so we have roughly a 20 per cent increase on two years ago. Given the appalling problem of the poorest of poor countries to whom this low aid is targeted, it is totally inadequate.

If we look at all the developing countries in Africa and look at the last year for which we have accurate figures, 1986, we find that the value of development assistance to all recipient African countries was $16 billion plus $2 billion in private lending, that is, a total of $18 billion. But going out of Africa was a debt service to overseas lenders of $15 billion, just $1 billion less than the total of overseas aid coming in, and the losses in the value of vital exports through a drop in commodity prices of $19 billion in 1986, giving a net outflow of £34 billion in terms of lost income and crippling debt service, as against the inflow which we mentioned earlier. On the scales of gains and losses we see the way Africa, the major developing continent, has lost out.

Another crippling effect of the continuing decline in raw materials and commodity prices, shows up in the statistics for the terms of trade under which developing countries operate; by that I mean the ratio of prices obtained for exports compared with the prices for essential imports. Looking at those figures we find that in 1986 the value of exports from African developing countries — and that must be all countries on the continent bar South Africa — was 63 per cent of what it was in 1980. Let us remember that in 1981, a good year for raw material and commodity prices, the value of exports exceeded the value of imports by 2 per cent. That gives us an idea of the great fall there was between 1981 and 1986. Coupled with a steady decline in the value of exports is a steady incline, or an increase, in the value of their imports.

Much is often made of the figures of concessional lending to developing countries. I read that the figure for concessionary lending to Africa by the World Bank in 1985 was $1.7 billion, and that was to reach — and we do not have final figures — $3.5 billion by the end of 1987. We must also see the other side of the coin by considering this figure. African countries transferred three and a half times as much money back into the IMF between 1986 and 1987 as they received in 1985. In 1986, in fact, the outflow to the IMF from developing countries in Africa amounted to just short of $1 billion. Yes, the great lending institutions in London, Paris and New York, and less so the leaders of the seven richest countries, have made some concessions such as rescheduling of the debt and lowering the originally negotiated interest rates, but these measures do not address the fundamentals of the problems.

Until the developed world, and I mean especially the seven leading economies, can come together and apply a comprehensive programme to increase the productive capacity of all developing countries, and the key to this is a realistically increased one way resource flow in, the problem will continue as it has been with ever worsening debt, worsening terms of trade, falling food production and, of course, the awful Apocalypse, famine.

All developing countries, but particularly the African countries, have come under pressure to carry through tough economic policy reforms to restructure their economies in order to use development aid more effectively. To my knowledge, at least 28 countries in Africa and many other developing countries in Asia and Latin America have responded to this at great cost and internal hardship to themselves. While there is a worldwide consensus that these reforms in internal resources in African countries cannot succeed without additional outside resources, sadly, total resource inflows to developing countries worldwide have declined since 1986.

Another major problem is the pessimistic perception of the creditworthiness of certain Latin American countries and African countries in general. This has lead to a decline in private non-concessionary lending to Latin America and to the African continent. The decline in the value of the dollar in recent years also had a deleterious effect on hard-pressed, debt distressed developing countries because the value of development aid is always given in US dollars.

We might mention in that context the example of Belgium which recently decided to accept debt repayments from some African countries in local currency rather than demanding repayment in dollars, which is a major hardship on these countries and we find that most of this money will be reinvested in other development projects. A small country like Belgium — smaller geographically than we are, with a much larger population, but still a relatively small power in the world — is to be congratulated on their very imaginative initiative in this area.

We might mention, too, comments made in recent years that cereal production and food grain production in Africa have increased in 1986 and in 1987. It is true that from the disastrous harvest of 1984 to the end of 1986, cereal and food grain production increased by 23 per cent, but we must remember that we are relating figures from a disastrous drop in production in 1984 to the relatively good year like 1986. Much more realistic to remember is the fact that food production in Africa increased by only 4 per cent from 1980 to 1986, and the average African had access to 10 per cent less food in 1986 compared with 1976. This was brought about because the population growth outstripped the growth in food production.

I would like to look at Ireland's recent role in development assistance both under the heading of official overseas assistance and non-governmental assistance. The first thing I must say, deliberately in the presence of the Minister is that I condemn as utterly shameful the cut in our official overseas aid in 1988. It is absolutely disgraceful that we should engage in this kind of abject meanness, which diminishes the reputation of this country. The value of our overseas development assistance as a percentage of our Gross National Product is now back to what it was in 1981 at 0.18 per cent of GNP. In money terms we are back to 1983 levels which is really meaningless given all the intervening inflation.

In 1987, the last year of the previous Government, Ireland's overseas development assistance reached £43½ million. This year, under this Government, it has gone down to just over £32 million or a 27 per cent decrease. Leaving aside the figures and percentages, the whole cutback in this area is a most reprehensible piece of the meanest retrogression. The Minister will argue, no doubt, that this action was taken to alleviate the internal debt within this economy but perhaps the Government might consider a debt distressed country like Mali in Sub-Saharan Africa, an area to which much of the funds we are talking about here today is supposed to be targeted.

In Mali, 301 out of every 1,000 children born die of malnutrition and related diseases before they reach the age of five years. In Mali, only 12 per cent of the population have access to clean uncontaminated water; only 23 per cent of males have achieved adult literacy; and only 11 per cent of women are endowed with adult literacy. According to the United Nations, 40 per cent of the total population live below absolute poverty levels.

Has the Minister and have the Government considered how their actions might affect a calamitous, famine-stricken, poor country like Ethiopia, where 255 children out of every 1,000 born die before they reach the age of five years; where 60 per cent of children born since 1981 suffer from mild, medium, or severe malnutrition; where only 44 per cent of male children and 28 per cent of female children receive formal primary education; where only 6 per cent of the total population have access to clean uncontaminated drinking water; and where only about 45 per cent of the population have access to a health service and much of that very primitive; and where 60 per cent of the population, again according to the United Nations, live below absolute poverty levels.

The Government might consider too how their selfish actions might affect the problems of say Sierra Leone. There almost 300 out of every 1,000 children die before they reach the age of five years; and 24 per cent of children under five years of age suffer malnutrition. Only 22 per cent of the total population have access to clean water; only 21 per cent of children are immunised against diphtheria; only 21 per cent of children are immunised against polio. The figures for measles are a good deal better — 60 per cent of children are immunised against measles. All of these diseases are widely prevalent and kill thousands of human beings, especially children. In Sierra Leone we find that only 38 per cent of males are literate and only 21 per cent of women are literate and — the United Nations figure again — 66 per cent of the total population live below absolute poverty levels.

I bring forward just three examples and I compare them with our problems and the savage level of cutback we have applied to the little amount we do officially for people who live in these conditions. Again we say that the Government ought to be thoroughly ashamed of themselves. We on this side of the House call on the Minister for Finance to return to the level of official overseas aid as set out by the previous Coalition Government and set down in Building On Reality which would leave us giving £50 million this year in overseas aid had the programme not been interrupted by this Government.

I have nothing but praise, on the other hand, for the non-Government agencies operating in the development field in this country and from this country. I am talking in particular about bodies like Trócaire, Concern, Gorta and the other less well-known organisations. These bodies do an extraordinary level of good work in the development co-operation area, in the funding of projects for the relief of distress and hunger and sending voluntary workers to work in these countries in the vital areas of health and education. Take Trócaire for instance. Not alone are they involved in all the aforementioned; they do an enormous amount of good work in informing public opinion in Ireland on development issues like why and where aid is necessary. They have done enormous and most courageous work in exposing and informing public opinion on the evil of apartheid in South Africa and in exposing the evil actions of the Government in Pretoria in preying on their poor neighbours by naked aggression, by the destruction of food production in these countries, by the destruction of their transport systems, causing countless deaths and an appalling level of human misery and famine which is largely undocumented.

Since I will not be speaking on the Sharpeville Six motion which will be coming up later on this evening, as I have just been speaking about South Africa I would like to lend my support at this stage of the debate to that particular motion. If my voice will be heard, I certainly will be calling on Mr. P.W. Botha, although it would appear the man is impervious to all reason, to consider the death sentences imposed on these people when there is not even evidence that any of them was involved in the crime in the first place.

Going back again to the role of NGOs it is estimated that the value of NGO aid from Ireland in 1986 amounted to £22 million. That is a tribute to the people of this country and to bodies like Trócaire, Concern and Gorta who collected it and who distributed it and who delivered the value of the moneys collected by actual practical work on the ground. The OECD claim that at least a further 10 per cent can be added to those figures for NGOs to take account of the value of voluntary effort and voluntary work on the part of NGOs in developing countries.

May I appeal finally to the Minister to answer this question which has been raised very often in this House and I know it has been raised in the other House as well? Is it proposed to re-appoint the Committee on Co-operation with Developing Countries which was established in this House in 1983? It was a very successful committee. I had the great honour to be a member of it. We examined a whole range of development issues, a whole range of political issues in so far as they impinge upon development issues etc. We published, if I remember correctly, four very comprehensive reports on various areas of development co-operation, development assistance and even one on apartheid and the effects of apartheid in Southern Africa as opposed to the effects of apartheid directly in South Africa. It is a matter of great puzzlement to me that the Government have not reconstituted that particular committee. I am not saying it because I served upon it myself but I am absolutely sure this body did an enormous amount of good work and an enormous amount of co-ordination between the various NGOs in this country, all of whom came and gave evidence, gave us their advice and sought our advice etc. I would appeal to the Minister because there is a great need for development education in this country even given our generosity which is very well reflected by the way people respond to the appeals of the various NGOs. I mean development education of the adult population rather than education at school. I believe that the committee on co-operation with developing countries increased the awareness among the wider public in Ireland of the need for ODA and Ireland's role in ODA. They did an enormous deal of good work in that area. Since a lot remains to be done I think the Minister should consider urgently its reconstitution.

One of the areas in which it would busy itself if it were to be set up again would be the area of development education. I remember one of the last documents we prepared was on this issue of formal development education in our schools and we would have moved on to a greater extent on this whole area of education of the public in this regard had the Coalition Government lasted longer or had the committee, as we had all hoped it would, been reconstituted after the General Election.

I want to thank the large number of Senators who made excellent contributions on this very important matter of international development aid. I did notice, and I suppose it is a failure of all politicians, that they meandered somewhat from the motion and the Bill before the House on international development aid into overseas development aid which is the responsibility of the Minister for Foreign Affairs. I am here to deal with the legislation before us pertaining to the International Development Association. I regret that people did meander from the Bill but nevertheless I will do my best to respond to the many allegations which have been made.

Senator Bulbulia, who always makes excellent contributions, introduced a sharp political swipe at the Taoiseach and at the Minister of State and the Government on their performance. In particular the Senator said that the Taoiseach should have appointed a Minister for development co-operation instead of referring to such a position as superfluous and supernumerary. I would have to agree with the Taoiseach's assertion because the size of the budget alone could not justify a job for any man or woman of any choice by any Taoiseach. There are responsibilities, there are jobs to be done and nobody can get a small little job done when the magnitude and responsibility of any ministerial office would be much greater than that. There is no reason any Minister would not be able to have it within his or her portfolio and deal with it in a very honourable fashion.

But there is one now.

There is a Minister of State now.

Yes, with responsibility for development co-operation.

There is a Minister of State but not a Minister in Cabinet as you referred to.

No, on a point of order, I referred to the fact that the Taoiseach described the post of Minister of State with special responsibility for development co-operation as being a superfluous and supernumerary post. I also referred to the fact that the Taoiseach, when leader of the then Opposition, in the height of the Geldof Band Aid event, referred to the importance of making such a post a full Cabinet post. I think the Minister of State is a little confused.

I will have to correct the Senator with regard to what the Taoiseach said. He said at the time of the Band Aid event that the situation was so serious in Africa that the Taoiseach of the day should consider handing to a Minister direct responsibility on this matter, but not appointing a Minister to be in charge of the situation. That is exactly what he said. There is no point in misinterpreting what he said.

The problem has not improved all that much.

I did not interrupt you, Senator.

And he would have been interrupted at times.

I wish to point out to the House and in particular to Senator Bulbulia that when Mr. Haughey was Taoiseach in 1982 he increased the allocation for overseas development aid from £18 million which was the figure under the Coalition Government in 1981 to £26.335 million under his administration in 1982. That is proof positive of the appreciation the Taoiseach has for the difficulties in Third World countries, and of his appreciation of the need there is for Ireland to make its contribution across the board. I think we are doing that and we will continue to do it.

Both Senators Bulbulia and Connor spoke about the fact that there has been no joint Oireachtas committee on development co-operation. We have reviewed this whole situation. This is an acknowledgement of a job well done by the previous committee. Surely there is now an opportunity for Government, for Departments, for Ministers, to appraise the work that was done by that committee. Then, over the next few years if there is need to reactivate the committee, there will be the opportunity for doing so. There is no point appointing committees for committees' sake alone. This is not the policy of the Government. Senator Bulbulia also castigated the Taoiseach for his populist politics with regard to Bob Geldof and Stephen Roche.

Stephen Roche was an aside.

Yes, I would think so. I do not think that the Taoiseach can be accused of populist politics with regard to anybody but particularly with regard to Mr. Bob Geldof, a man for whom this Government, I and everybody in the country have great regard in terms of the great work he has done.

I do not think he has regard for the present Government.

It would seem that the man was inveigled into calling for support for the former Taoiseach and the former Government in the last days of their flagging administration. I am sure he has regretted that by now. If Mr. Haughey has acknowledged the great feats of Mr. Stephen Roche, and we all do, and if he has acknowledged them both nationally and internationally, they have also been acknowledged by President Mitterrand. If the Taoiseach and the President of France acknowledge the feats of an Irishman outside this country in the interests of this country, that can help to bring people here, to spend their money here. It could be a way of helping our economy to move forward and it could be an opportunity to make a better contribution in the years ahead both to International Development Aid and to Overseas Development Aid. Surely there is no point in being polarised in our attitude to the positive actions being taken by this Government on a wide range of issues right across the board, to move our economy and to create the extra funds that are needed in every area.

The Opposition do not seem to recognise Stephen Roche's victory.

I do not think so.

Would the Senator address his remarks through the Chair, please.

I would like to thank the Minister of State, Deputy Calleary, for his contribution over the past year. I should point out that Deputy Calleary visited Africa recently for two weeks for the purpose of examining projects, evaluating our support, appraising the seriousness of the situation and ensuring, as a Government Minister, that Ireland's contribution was being well utilised in the best interests of disadvantaged people in a serious situation. He did this without any blaze of publicity unlike some of Senator Bulbulia's colleagues who used every opportunity to publicise what they were doing. Deputy Calleary has acted discretely, honourably and with dignity, taking into account the sensitivity and the seriousness of the situation.

Senator Ryan in a very wide-ranging speech described this Bill as a glorious exercise in barefaced hyprocrisy. I think that is a desperate statement coming from a Member of this House. This small country is making a major contribution to international and overseas development. The Senator seemed to infer that it was mandatory on Ireland to make a contribution, that we were doing this and putting forward a Bill and that this was an act of hypocrisy on our part. It is not mandatory on Ireland to make a specific contribution. The level of subscription we make is purely a matter for Government. We could have subscribed a much lower figure.

That is not so.

We are obliged to make a contribution as a member of the Part I group within IDA but the level of contribution being made is purely a matter for the Government. It must be acknowledged that the various contributions we have made have been in the best interests of all the affected countries. Over the years Ireland has contributed .11 per cent of the IDA contribution and we have maintained that despite the level of budgetary difficulties within which we operate. The Government made a conscious decision, despite the serious financial difficulties that we inherited, that we would maintain that basic figure of .11 per cent and we did that. In order to maintain membership of IDA as a Part I member we were obliged to contribute £9.4 million but in order to maintain our pro rata share of .11 per cent which we did on the fifth, sixth and seventh replenishment, we made a special application to make a contribution of £9,660,000.

Under the Coalition.

No, we have done it in the past year. We have maintained the figure. Our figure has been maintained in this eighth replenishment by giving £9,660,000. We made a contribution over the years of .11 per cent. We agreed to contribute £9.66 million, so we had to be allowed make the extra contribution in order to maintain that figure. I think that is indicative of the positive approach adopted by the Government in recognising the seriousness of the international crisis that affects many countries throughout the world. By any standards I think this is a very generous gesture on our part, taking into account the small population base we have, the small financial base we have, the financial environment within which we operate in comparison with many other greater and wealthier countries throughout the world. I think our contribution is one which should be acknowledged in this House as being very generous at this time.

Senator Ryan also talked about demanding economic returns and ridiculous criteria being laid down for the investment being made by us in Third World developing countries, that there were strings attached and that this was wrong. I refute this. First, we imposed no strings. The international development organisation, IDA do have those for good sound logical economic reasons. Projects must be based on financial criteria to give a local and national economic return to the countries that are benefiting. It is not for the sake of Ireland who is a contributing member, not for the sake of IDA itself but for the sake of the country in which the investment is made.

There is no point in pouring money down the drain, there is no point in pouring money into a country unless there are tangible improvements and unless there are solid, positive returns to upgrade the living standards, to create economic development, to sustain populations and to create opportunities for people to add further to their own development. This is the whole purpose of the criteria. We are pleased to be associated with those criteria in the best interests of the countries that are benefiting and that are being helped. I would say in response to the many Biblical references of Senator Ryan, that man does not live on bread alone. That in itself is food for thought. I think these criteria are necessary.

Our average official development aid contribution since 1974 is .18 per cent of GNP. Despite all our economic difficulties, we have maintained that in 1988 at .18 per cent. That has been our average contribution. In 1970 we contributed .03 per cent of GNP. In 1988 we will be contributing £32.241 million which is .18 per cent of GNP and which maintains the average percentage contribution of GNP over the years. I think by any standards, taking into account the economic difficulties we have at this time, that is good and it is indicative of the positive approach being adopted by Government in acknowledging the difficulties of other less well off countries throughout the world.

I too would commend the non-Governmental organisations and agencies for the great work they are doing. This is indicative of Ireland's attitude and the attitude of the Irish people who have been outstandingly generous in their contributions over the years when apart from the State's contribution through IDA and ODA the non-Governmental agencies are almost able to match the State's contribution through the generosity of the Irish people, in excess of £22 million. All of us must acknowledge that and be proud of the great voluntary workers and the great professional workers both from the public service and from voluntary agencies who work in the interests of the starving millions and the people throughout other countries who have not the infrastructure or the facilities or the opportunities or indeed the climate that this country enjoys.

Senator Connor in his contribution talked about the situation in Ethiopia as if we had neglected it. On 25 November last the Government, through the Minister of State, Mr. Sean Calleary, announced an allocation of £250,000 for Ethiopia from the Government's disaster relief fund. Of that amount £80,000 was allocated to UNICEF, £45,000 to the International Committee of the Red Cross, £45,000 to the United Nations Disaster Relief Organisation, £60,000 to Concern and £20,000 to GOAL.

Will you give them the £1,000 for disaster relief in this year's Estimates.

This is indicative of the Government's attitude and commitment to the development of Third World countries. I think Senator Connor is bordering on being very hypocritical in his attitude here because he is the man who has been clamouring around the west and around his constituency to maintain hospitals that are not up to the standard that are needed in modern times and yet he castigates the Government for managing the funds of this country and the affairs of this country in a positive, vigorous manner to ensure that not alone is the national cake equally distributed throughout the country but also that this country will make its contribution to distributing the national cake in areas throughout the world that have not got the opportunity to create any cake of their own. We must be consistent——

Ask Deputy Leyden to repeat that statement on hospitals.

Deputy Leyden will handle his own affairs. We must be consistent in our attitude. We must acknowledge that we have our own difficulties and that by comparison with our more well off brethern throughout the world and wealthier nations Ireland is making a contribution of which we can be very proud in all areas of international activity but particularly in the area of the International Development Association and in the area of the Overseas Development Agency work. I want to say how proud I am of the great work being done. I hope that we as Members of the Houses of the Oireachtas can be positive in making our contributions. Ireland's general position has been one of sympathy for the difficulties facing developing countries in implementing structural reforms. We support the need for more resources for the poorest countries and we believe that their structural adjustment efforts should not be prejudiced by debt repayments. While we accept the need for economic criteria to ensure that countries who benefit from programmes which we have been discussing and debating will be able to do so on an economic basis to ensure that the investment made can be justified, and can stand up on economic grounds, not in the interests of the investor, not in the interests of the contributor, but in the interests of all the people in those disadvantaged and deprived countries. I commend the Bill to the House and I thank all the Senators for their contributions.

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