Richard Bruton (Dublin North Central, Fine Gael)

I welcome the Bill. While the Government's commitment to overseas development aid falls short of its initial promise, it is welcome that targets are at least now set and it is hoped that there is a greater determination to honour those targets than was the case in the past. Like any Bill that addresses development issues, this Bill throws into stark relief the attempt to balance economic liberalisation and globalisation, which can confer many benefits, with the need to achieve progress on alleviating global poverty. The failure to achieve this balance to date is a serious affront to basic decency.

There is considerable popular support for more cogent global approaches to development support. There have been many popular manifestations of this desire. All too often, this groundswell of public opinion is not reflected in negotiations over international agreements where attempts are made to develop the policy of large institutions such as the International Monetary Fund. Ireland has unique insights which it needs to bring to bear on these debates. The misapplication of the development thinking of the time has occurred throughout our history. All of us remember the reference to Sir Charles Edward Trevelyan, assistant secretary to the Treasury at the time of the Famine, in the song, "The Fields of Athenry". He believed that Irish poverty and starvation should be tackled with liberalisation, free markets and external trade and, as a result, grain was exported from Ireland at a time when people starved. We must reflect on the results of the misapplication of popular thinking in this country and apply the same scepticism to the occasional eager application of crude ideological market solutions in countries which do not possess the institutional underpinning to make them work.

There have been undoubted improvements in the way in which institutions like the IMF and the World Bank approach poor countries. The millennium development goals have been produced and tackling poverty has been factored into these institutions' thinking to a greater extent. However, policies drawn up thousands of miles away from the coalface are often imposed on poor countries and often have perverse effects.

I do not pretend to be an expert on Ghana, which is regarded as a model for developing countries, but I know that an attempt has been made to force it to privatise its water supply system. It is difficult to see how the privatisation of the water supply system in a country like Ghana serves the interests of its people. I have the read the work of individuals like JosephStiglitz, who has examined the policies applied by international institutions. The application of privatisation has often resulted in the establishment of semi-criminal monopolies in key areas. We have also witnessed the misapplication of the deregulation of capital markets and the banking sector, which has made matters more difficult for small emerging enterprises in developing countries to cope because international banking tends to become very alarmed at any sign of turbulence in a country and looks to have very high levels of reserves, which are often wasteful from the perspective of development.

Ireland must support development aid and examine whether the policies being framed are sufficiently tailored to local needs. It appears that we still have a long way to go with regard to getting the broad-based representation within global institutions such as the IMF, the World Bank or development banks. There needs to be some level of global governance of this process, which will continue to develop because globalisation will not go away. We need to develop better policies and take on board the criticisms of the past.

The work of Joseph Stiglitz has highlighted the fact that the World Trade Organisation is dominated by trade ministers and the domestic lobbies that build up around these ministers, while the IMF is dominated by finance ministers and the lobbies that accompany them. These two organisations tend not to reflect the broad-based development interests of the wider public in those countries. The issues and concerns reflected in these international organisations tend to be attenuated. We must move to a more broad-based understanding of what we are pursuing when we go to meetings of the IMF or WTO. The Government has possibly not been as successful in this area as it has been in examining development aid. From a long-term perspective, the correct balance must be attained so that international institutions do not impose policy solutions that do not work because of conditions within the countries in question.

I welcome this Bill. The recent catastrophes that have befallen Asia cannot fail to move us. We must put our shoulder to the wheel in a structured fashion that will deliver progress. I understand the Asian Development Bank has a good record and has been successful in a number of areas. However, the Government must maintain a healthy scepticism, continue to scrutinise the spending of money and ensure that policies do not serve some narrow interest which can occasionally colour the stances assumed.

I have not tabled any amendments to this Bill and support its speedy passage through the House. The inclusion of Mongolia is to be welcomed as its former status appeared to leave it in limbo. I know that former Members of this House with strong commitments in this area have been very keen to see this Bill move forward so that Mongolia would no longer be left in this limbo. I am glad to be able to facilitate this change.

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