Dáil Éireann díospóireacht -
Thursday, 15 Nov 1990

Vol. 402 No. 7

International Development Association (Amendment) Bill, 1990: Second Stage (Resumed) and Subsequent Stages.

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

Mr. Garland

I will now continue my contribution which I started before Question Time. Reductions in developmental aid are an ideological wrong. Clearly the Government fail to recognise our responsibility on the one hand and the world's needs on the other. With our own economic well-being we should, and are honour bound to, contribute more whereas we have contributed less and less over the years to the less developed countries.

In 1986 we contributed 0.25 per cent of our GNP to international development endeavours. With our increased GNP in 1988 our contribution lessened to 0.18 per cent and now in 1990 we are contributing only 0.16 per cent. That is an absolute scandal. The Catholic Agency for World Development — Trócaire — recently investigated Irish economic benefits of developmental aid contributions. Their principal conclusion is that aid is of considerable benefit to Ireland in simple commercial terms. It is a very important, in view of our high unemployment, that Irish people can and do obtain work in developing countries. Trócaire condemn Ireland for our miserable contributions compared to our present GNP. I agree with them totally.

The fact is that Ireland is at the bottom of the official aid list in the OECD development assistance committee. Why cannot we on the periphery of the EC, and as an ex-colonial country, recognise the needs of the undeveloped countries. In my appeal for more aid for the Third World I would stress that much aid in the past has been misspent. There are many examples of this such as the large hi-tech hospitals in countries where there are not even the basic medical necessities. The provision of tractors and chemicals designed to produce cash crops for export is another area which has gone wrong. We have made many mistakes in the manner in which development aid has been channelled. Intermediate technology is needed for the Third World to encourage a level of self sufficiency where possible.

For all the lofty talk about the help we give to the Third World we frequently forget the oppression of the international banks who are bleeding the Third World dry. The repayments of interest and principal on these debts more than compensates for any aid given. I call on the Government to speak out on this issue.

Minister of State at the Department of Finance (Mr. Daly)

I would like to express my appreciation for the constructive contributions we have had in the debate, with one or two exceptions which I would prefer to ignore. It reflects the view held right in the House that we need to continue to contribute to developing countries as we have done in the past. There is a general recognition that in the serious financial situation in which we found ourselves a few years ago there was a necessity to review all areas of expenditure. This has been reflected right across the board. While I appreciate the concerns expressed by the Deputies today about the necessity to maintain a high level of commitment, it has to be recognised that we were in a critical financial position for a few years and that all areas of Government expenditure had to be looked at very closely. This in no way diminished our desire to reach the target which has been set down and which we aim to achieve.

In 1980 Ireland committed itself to achieving the United Nations target for developed countries of providing 0.07 per cent of annual GNP for overseas development assistance, ODA. We did not commit ourselves at that time or since setting a specific date for reaching the target.

Mr. J. Mitchell

Will the Minister do so now?

Mr. Daly

All development assistance has at least a 25 per cent grant element provided from governmental sources. Therefore, ODA does not include assistance from non-governmental agencies such as Concern and Trocaire. Like Deputy Ferris I should like to pay tribute to the work of organisations such as Goal and Trocaire, and of outstanding clergymen such as Archbishop Clifford and Bishop Casey who have been to the forefront of the campaign for increasing aid and encouraging non-governmental agencies and voluntary organisations to continue to make the same level of contribution and commitment as they have done in the past.

Deputy Nora Owen made reference to that commitment. All sides will agree that Government action on its own would never be sufficient to deal effectively with the problems in the underdeveloped regions. To a large extent what will be required in the future will be concentrated action by Government agencies and voluntary organisations, to co-ordinate the overall approach. That would make a significant change for people in the Third World.

By and large the contributions by Deputies today were constructive and expressed the general view on this issue. I disagree to an extent with Deputy Mitchell who said there are no votes in this. On reflection the Deputy will reconsider his position. There is a general acceptance and recognition — his own Party benefited from this — of the contribution made by Deputy Garret FitzGerald in the development of policies and initiatives in this area. Rather than saying there are no votes in this the public at large are aware of how important it is that we play our full part and make our contributions. People in the Community recognise that when Governments have to deal with difficult financial problems they can supplement that by making increased contributions to the voluntary agencies, which they have done.

Deputy De Rossa made similar statements in the course of his contribution. I was not here when the Deputy spoke but I understand he reiterated the necessity to continue to increase our contribution as far as possible and that the amount was inadequate. The Deputy will appreciate that we all would like to see more being done in regard to a whole range of activities but when resources are limited and we are faced with economic pressures within our community we have to cut our cloth according to our measure.

Proinsias De Rossa

No citizen of this State would object to more money being given to overseas development aid.

Mr. Daly

If one raised any issue in this House people would say there was a necessity to do more, there was a necessity to expend more money under a subhead and so on, but the question is, where does the money come from? I do not want to go into the detail of that now because we could argue about it all day.

Proinsias De Rossa

Get rid of the Government jet.

Mr. Daly

We made a commitment to achieve the target of 0.7 per cent of GNP set down by the United Nations but we are not committed to achieving it by a specific date. We will work as hard as we can to try to achieve it as speedily as possible.

Mr. J. Mitchell

The Government are going backwards.

Mr. Daly

Deputy Tom Kitt, and other Deputies, referred to the practice of imposing Western economic recovery strategies on developing countries which are unrelated to their needs. The accusation was made that Western economic recovery strategies are unsuited to the needs of developing countries. This is being taken seriously by the World Bank and the IDA who are now acutely aware of the importance of relating assistance to the needs of the recipients and of involving developing countries in the structuring of development assistance. They are also placing greater emphasis on the social dimension of adjustment, particularly the impact of policy reforms on the poor and the need to maintain essential social programmes. Therefore, the World Bank and the IDA have been increasing their efforts to help recipient Governments design and implement better programmes which will not only contribute more strongly to growth and development but will also ensure that the benefits are directed more effectively to the poorer members of developing societies. They are also strengthening their relationships with non-governmental organisations and involving these organisations in the preparation and implementation of programmes and projects.

This socially concerned approach to development is being enhanced by a growing awareness of the value of the market and of competition especially in those developing countries which previously practiced central planning to various degrees. More and more policymakers accept the contribution which can be made by greater openness in trade and competition, the need for proper sectoral initiatives and incentives and the importance of sustainable macro-economic policies. I am satisfied that in the long run the interests of developing countries will be best served by increasing emphasis being placed by the IDA on the human face of development and the simultaneous acceptance by developing nations of the benefits of a market economy.

A number of Deputies referred to the environmental aspects. I am conscious that the World Bank and the IDA, have been the subject of criticism because of the adverse environmental impact of some of the projects they have funded in the past. It is true to say that far from ignoring these criticisms the bank has taken them very seriously. It has openly acknowledged that mistakes were made in the past and has set about ensuring that its future activities will have no harmful effects on the environment.

On assuming office the current President placed the improvement of the World Bank's operations in the environmental area as one of his highest priorities. Positive and constructive action is now being taken on foot of that commitment and progress already made was welcomed by the donors during the recent IDA 9 negotiations. The IDA now bring environmental issues into their policy dialogue with Governments so as to ensure that the investment projects, and adjustment programmes, support positive environmental actions and minimise potentially adverse impacts. They have given an undertaking to complete environmental action plans for all IDA borrowers during the period of the Ninth Replenishment. In the preparation of individual projects the people immediately affected, the non-governmental organisations, will be consulted both at planning and project implementation stages.

The World Bank has also been playing an increasing role in global environmental issues and the bank is currently considering a proposal to establish a global environmental facility which would provide funds to help developing countries play a role in combating the depletion of the ozone layer, the greenhouse effect and the loss of biological diversity. A number of Deputies raised these issues. The World Bank is conscious of the criticisms made in the past and they are taking action to deal effectively with these matters in the future.

A number of Deputies expressed some concern about the recent reductions in Ireland's offical development assistance. While these are regrettable, the reductions have been necessary as part of the overall Government programme to bring the State's finances under control. Deputy Jim Mitchell, like many others, complained for years about the necessity to bring Government finances under control by exercising very stringent control on spending right across the board.

Mr. J. Mitchell

We did it.

Mr. Daly

We cannot have it both ways. All areas of Government activity have had to be subjected to cutbacks in the interests of reaching this goal. While we might wish otherwise, it has not been possible to make an exception for ODA. I would point out, however, that the Government remain committed to reaching the United Nations target of 0.7 per cent and will move towards this target as soon as economic circumstances permit.

There has been criticism that Ireland is at the bottom of the list of developed country donors. This criticism presumably relates to our ranking among our fellow members of the OECD's development aid committee. While in the 1989 statistics we do rank at the bottom in actual terms, this is hardly surprising given the relative size of our economy. In terms of ODA as a percentage of GNP the USA ranks below us. Some other members of the Community such as Spain, Greece and Portugal, are not included in this committee. Official development assistance contributions from these countries are well below the contribution from Ireland.

Ireland's bilateral aid programme has been complimented by the committee for its quality. Our four priority countries are among the least developed and our whole programme concentrates on Africa, the continent facing the most severe difficulties. Our official development assistance aid is always in the form of grants and it is united, whereas significant proportions of aid disbursed by many other countries must be expended on goods and services of the donor nation. We impose no conditions about buying Irish. Our approach is highly practical, reflecting the lessons we have learned in our own recent development.

Another factor which should not be lost sight of is Ireland's very high rate of voluntary aid contributions to the developing world, the highest of any developed country according to the latest OECD statistics. The net grants for development assistance by Irish private and voluntary organisations are estimated at £17.5 million in 1987, £15 million in 1988 and £18 million in 1989. These are significant additions to ODA in Ireland's overall contribution to Third World development.

I appreciate the contributions which have been made. By and large Deputies offered constructive criticism and there was a willingness to be constructive in the approach to this area. I thank Deputies.

Question put and agreed to.

Bill put through Committee, reported without amendment and passed.

An Leas-Cheann Comhairle

This Bill is certified a Money Bill in accordance with Article 22 of the Constitution.