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Part of the debate – in the House of Commons at 4:52 pm on 30th March 2009.

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Photo of Hugh Bayley Hugh Bayley NATO Parliamentary Assembly UK Delegation 4:52 pm, 30th March 2009

The impact of the economic downturn is already being felt in many African countries. In Tanzania last week, members of the International Development Committee had the opportunity to meet the Minister for Finance, Mustafa Mkulo. He took the view that African countries such as Tanzania needed more fiscal space to generate demand for local products such as coffee, but he also spoke in favour of a fiscal loosening in developed countries such as ours, because he felt that that would encourage greater exports to our countries. Would the hon. Gentleman also support such a policy?

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Ben Hoskin
Posted on 1 Apr 2009 7:14 pm (Report this annotation)

"generate local demand"

Surely it is this sort of pseudo-demand, not backed up by the reality of people's true preferences for coffee or otherwise, that has kept African (and European) farmers producing piles of useless goods and preventing the reallocation of resources to more profitable industries?