Trevor Sargent
Ceist:8 Mr. Sargent asked the Minister for Finance the purposes to which moneys given to the International Development Association have been put. [25720/03]
Other Questions. - Overseas Development Aid.
I refer the Deputy to the annual reports on Ireland's participation in the Bretton Woods institutions and also to the World Bank website which explains in greater detail the use of funds by the International Development Association. By providing long-term loans at zero interest and grants for the poorest of the developing countries, the IDA helps build the human capital, policies, institutions and physical infrastructure these countries urgently need to achieve faster, environmentally sustainable growth. The IDA's goal is to reduce disparities across and within countries, especially in access to primary education, basic health and water supply and sanitation and bring more people into the mainstream by raising their productivity.
While the bulk of IDA financing – more than 70% in the 2002 financial year – is for investment projects, the IDA also provides adjustment credits which help governments finance their overall development expenditures, including teacher salaries, operations and maintenance of health centres, road rehabilitation and agricultural extension in the context of macro-economic and sectoral reform programs. To help governments introduce reform programmes the IDA advises on the best policies for attaining broad based economic growth and reducing the vulnerability of the poor to economic shocks.
I thank the Minister for his answer and understand there is a Bill to come before the House which deals with this matter. Our contribution to the International Development Association counts towards our overall contribution to overseas development aid. The small amount of money in the current allocation needs to be measured against the Taoiseach's commitment to reaching the target of allocating 0.7% of GNP to overseas development aid by 2007. I acknowledge that €100 million was allocated in last year's budget but we need to allocate between €150 million and €175 million in each succeeding budget to reach the target. I offer the Minister the opportunity of affirming that this commitment will be honoured.
Since Ireland joined the IDA we have contributed about $200 million to the organisation. This includes the €50 million pledged in the recently published Bill which should come before the House by Christmas. Ireland's contribution towards overseas development aid in terms of GNP was 0.41% from 2000 to 2003, considerably more than that of most of our European colleagues and the USA. Another thing I did during my period as Minister for Finance was to increase the amount given in overseas development aid.
Will the target of 0.7% be met?
Will the Minister not engage in a critical debate with the IMF and World Bank institutions? While some of their policies, particularly those of the World Bank, have improved slightly in recent years, the IMF is responsible for extremely right wing, destructive economic policies which, especially in sub-Saharan Africa, have pauperised large areas. Is the Minister aware that Zambia, which followed the IMF advice of the mid to late 1980s, is now virtually destitute? Zimbabwe spent money on health and education according to the advice of the World Bank and the IMF but when the institutions called in their money this, with the effects of political corruption, caused the destitution of its economy. Do the Minister and his officials engage in dialogue with the institutions with a view to persuading them to address the real needs of poor people? It is not good enough simply to increase the amount of Irish aid if at the same time the IMF is practising policies which are devastating large areas of the world, particularly in Africa.
A few years ago we had a substantial debate on the World Bank and IMF institutions on foot of a Bill I introduced to the House. Arising from the Bill and other considerations, Ireland has adopted a proactive approach in its constituency. We advocate the principle of 100% debt cancellation, unlike most of the major shareholders. We have been putting across our point of view in the context of the Bretton Woods institutions and representatives from Ireland have publicly spoken at the last number of World Bank-IMF meetings outlining our position. There have been considerable changes in the operation of the institutions. I would not be foolish enough to say everything is perfect but they have taken on board a number of the concerns of people in Ireland and other countries. An annual report on overseas development assistance is published by March of each year. I am sure the Deputy will avail of the opportunity to speak on the matter when it arises.
Will the Minister use Ireland's forthcoming EU Presidency to raise the issue of poverty in the context of the policies of the Bretton Woods institutions in very poor countries, especially those in Africa?
If the matter arises, I will take the opportunity.