Think tank plan to cut aid would cost millions of lives

Capping the international development budget would send out the wrong signal to the rest of the worl

Another day, another right-wing think tank calling for the international aid budget to be cut. This time it is the Centre for Policy Studies and the proceeds are to be spent on tax cuts, including scrapping the 50p income tax rate. Putting aside whether tax cuts are the best way to spend extra funding, is capping the DFID budget at the 2010/11 for the next two years really a good way to save £1.3bn?

It would mean that Britain would fail to reach the UN target of spending 0.7 per cent of gross national income on overseas aid, a promise that all three major political parties made at the last election. It would also mean that the UK no longer had credibility to criticise other G8 countries, like Italy, for failing to meet the promises they made at Gleneagles. And finally, it would signal to other G8 countries that it is OK to cut aid spending during a downturn and, in the words of Development Secretary Andrew Mitchell, to "balance the books on the backs of the world's poorest people".

At a more practical level, the CPS report devotes just three paragraphs to explaining how £1.3bn could be cut from the aid budget and makes just two arguments for why this is a good idea.

The first is that:

India is establishing its own aid agency, distributing $11 billion over the next ten years, raising questions as to why the UK still grants it, and other large countries, substantial sums of aid.

I'll try and answer these questions for them: India is home to more people living in poverty (those living life on less than $1.25 a day) than the whole of sub-Saharan Africa. The UK's aid budget devoted to India is just short of £300m a year and almost half of it is spent on healthcare, tackling maternal mortality and malaria, the main killers of women and children.

When I worked for DFID, I was lucky enough to visit a slum in West Bengal where UK taxpayers' money had paid for the installation of toilets and basic sanitation: clean running water and a sewer system for waste. I was humbled. Perhaps the Indian government should have paid for it, rather than for a space programme, but it's hard to look a child in the face and make that argument, even through an interpreter. While India has huge wealth, it also has huge inequality and the UK's promise to help people in absolute poverty should be honoured.

The other CPS argument is that:

Aid itself should focus on emergency relief and correcting for market failures in health issues; not on capital projects.

Just across the border from India, in another "large country", the UK taxpayer invests £150m a year in Pakistan. Some of this is spent on health issues and yet more is spent on emergency relief, like when the region was devastated by flooding earlier this year. But if the UK taxpayer turned their back on capital projects, the 255,000 people made homeless would have been left to live in tents. A fifth of the DFID budget in Pakistan is spent on "Governance", a direct up-stream attempt to prevent conflict, instability and ultimately terrorism on the streets of the UK. Another fifth of the budget is spent on education, literally building schools so that primary age children can learn to read and one day get jobs trading with UK companies.

Cutting the UK aid budget by £1.3bn is easy to write into a think tank report but far harder to do. If the entire UK aid budget for India and Pakistan was cut, you would still be looking for nearly £1bn more in savings. If you cut the entire admin budget of the department (meaning they would literally have no staff left) you could only save £214m. To find this level of savings, you would need to cut the entire contribution to the United Nations and the World Bank or cut the entire bilateral aid programme for the whole of sub-Saharan Africa by more than 75 per cent.

Irrespective of the whether CPS are right to argue for tax breaks, whatever way you cut it, taking £1.3bn from the UK aid budget would cost millions of lives across the developing world. They should think again.

Richard Darlington is Head of News at IPPR and was Special Adviser at DFID 2007-2010

Richard Darlington is Head of News at IPPR. Follow him on Twitter @RDarlo.

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This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.