Bangladesh

Part of the debate – in the House of Commons at 2:02 pm on 16 January 2014.

Alert me about debates like this

Photo of David Lidington David Lidington The Minister for Europe 2:02, 16 January 2014

I cannot answer the hon. Gentleman now, but I will write to him on those details.

My hon. Friend the Member for St Albans was absolutely right to warn that political instability and feuding in Bangladesh will harm the country’s prospects of attracting the investment that its people so desperately need. I welcome her emphasis on the garment sector and the role of women in the economy. I will certainly draw to the attention of my right hon. and hon. Friends at the Department for International Development her wish for a formal response to the all-party group report. The Government regard the garment sector as vital for poverty reduction and for the economic empowerment of women. Through our aid programme, we provide just under £5 million to the International Labour Organisation to enhance worker safety in the ready-made garment sector in Bangladesh. I am sure that my right hon. and hon. Friends at DFID will keep under review other opportunities for providing similar help through the appropriate agencies.

Several questions were asked about the United Kingdom’s aid programme and the political situation in Bangladesh. Of course, aid is not the only way in which this country helps Bangladesh and tries to make it possible for its people to prosper. We have a flourishing and growing commercial relationship. The United Kingdom is one of the largest investors in Bangladesh, with about £2 billion provided in investment projects to date, and with 100 UK firms operating successfully right across Bangladesh. Our bilateral trade in goods doubled between 2006 and 2011, and we are now the third largest destination for exports from Bangladesh, with garments and seafood accounting for the bulk of total sales.

The aid relationship is, however, very important as well. The United Kingdom is the largest donor of bilateral grant aid to Bangladesh. It will amount to £275 million in the 2013-14 financial year. The aid programme is focused above all on the relief of the chronic and desperate poverty of far too many millions of people in Bangladesh, as well as on programmes to improve the quality of drinking water and sanitation, and to help Bangladesh to adapt to the risks posed by climate change. I say to the hon. Member for Bethnal Green and Bow that we estimate that about 15 million people in Bangladesh have been helped directly by UK aid funding for extending flood early warning systems.

[Official Report, 22 January 2014, Vol. 574, c. 1-2MC.]Most United Kingdom aid is channelled through non-governmental organisations and none is paid directly to the Bangladesh Government. It is true that about a third of our total aid programme ultimately goes to the Bangladesh Government’s health and education systems because, as we all know, help with primary health care and education are key to promoting the economic development and sustainable growth of a developing country. However, that one-third share is channelled via reputable NGOs, such as the United Nations, the World Bank and the Asian Development Bank, and money is paid out by our Government only once we have been given clear, accountable evidence that a project or programme in the education or health sector has been delivered. That aspect of our aid is delivered on a reimbursement basis.

Roughly 12.5% of United Kingdom aid goes to matters related to governance, although I again stress that it does not go directly to the Bangladesh Government or any individual political party. That element of our aid programme includes measures to enhance the taxpayer base in Bangladesh, which indirectly contributes to anti-corruption work in that country. The number of registered taxpayers has risen by 480,000, in part as a result of that element of the UK aid programme, and improving the technical side of the electoral system—the quality of the electoral register—is another aspect of it.

As some Members have urged, the Government, through the Department for International Development, will always keep their aid programme under review. I am sure that my colleagues in DFID have heard the questions posed about whether we need to review with particular rigour some parts of the Government’s spending in Bangladesh. I know that the commitment to a review is real, but I emphasise that I agree with my hon. Friend the Member for Bedford, who said that we must not let our dissatisfaction with the political situation in Bangladesh lead us to decide to restrict aid in ways that penalise some of the poorest people on the planet, who are not responsible for decisions taken by Bangladesh’s party political leaders.

Bangladesh is an important partner of the United Kingdom, not least through the Commonwealth and our links to the British Bangladeshi community that contributes so much to our society. We continue to support the people of Bangladesh in their aspirations for a more stable, prosperous and democratic future. We urge all political leaders and parties in Bangladesh to shoulder their responsibilities to bring that about, and to commit themselves to a peaceful political process through constructive dialogue.