Deva: "Parliament must fully embrace the future of development"

24-Apr-2017 @ 18:30

Nirj Deva Nirj Deva

Nirj Deva Nirj Deva

Nirj Deva Nirj Deva

Deva: "Parliament must fully embrace the future of development"

The European Parliament's Development, Budget and Foreign Affairs committees have voted for a new direction for development funding by creating a public-private partnership with the European Fund for Sustainable Development (EFSD).

Conservative Development Spokesman, Nirj Deva MEP’s call for a partnership with the private sector for development funding was backed last year by the European Commission and the Parliament. Unfortunately although today's vote endorses the idea, Conservative MEPs could not support it overall as it does not focus spending on projects that have market value.

Following the vote Mr Deva said: “I am pleased the report recognises that the future of development funding is in harnessing not only public money but in using it to leverage significant private capital. However I am disappointed that the focus of the funds is not on projects that will be the most profitable and respect responsible business practices, that would create the most jobs, economic growth and stability.

"This is report is not and cannot be about climate change, addressing market failures or reintegration of returning migrants as some have suggested. It should focus on eradicating poverty by creating wealth in developing countries based on concrete projects that maximises jobs and value to the regions.

“In the last 36 years we have spent seven hundred billion euros in aid; if we have worked with the private sector in further investments we could have generated at least seven trillion in investment.

“I warn the European Parliament not to revert to the old ways of thinking of just using public money to meet narrow objectives. We must build a partnership with the private sector that focuses on projects that would be successful in the market that will transform these developing countries."

The EFSD will mobilise up to €44 billion of investments starting in Africa and the EU’s Eastern and Southern Neighbourhood. Public-private partnerships can help development projects secure far more capital than from relying on just public money.

Mr Deva added: “1 billion people still live on less than $1.25 a day and more than 800 million people do not enough food to eat, if we are going to eradicate poverty we need new solutions and new thinking. The Parliament must fully embrace the future of development spending"

"Eventually, the total aid budget, previously handed out as grants, of €23 billion/a year can be leveraged into €300 billion of Investments, delivering on jobs and a sustainable future for billions of people around the world.”

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