Member News
By Shelley Phelps - 17th June 2010
Sir Bob Geldof has heaped praise on the government's controversial aid finance body CDC Group, denying it continues to take taxpayer's money.
Geldof was speaking at the launch of CDC's 2009 development review in Westminster on Wednesday.
"They are superb, they are excellent, and they are looked at and admired. CDC should be a mark of pride for this country," he said.
The anti-poverty campaigner added that CDC was "comfortable for activists" because they employ 750,000 people, contribute $2.8bn of tax to governments and have not taken a penny from the taxpayer since 1995.
But Geldof was openly challenged at the event by Private Eye, who having initially been refused entry managed to gatecrash the event.
CDC’s role is to stimulate economic growth in developing countries by providing much needed capital for investment in sustainable and responsibly managed private sector businesses.
The magazine's journalists said that it was untrue that the taxpayer has not given any cash to CDC since 1995.
They claimed that taxpayer money had been used to fund corruption in developing countries, which CDC took no action to stop. The magazine has run a series of stories on the matter.
CDC chief executive Richard Laing, visibly under pressure, told the audience that businesses are immensely powerful in tackling poverty through employment. "Jobs transform lives", he said.
Laing stressed the importance of responsible investment in developing countries.
"It makes good commercial sense to be responsible," he said.
Talking about his own experience of running a business in San Paulo he added, "by being responsible we were more profitable".
Laing said the UK should be proud of its development finance institution, but admitted "this does not mean that we will always get it right, things will go wrong".
"Accidents happen and safeguards will sometimes lapse," he said.
Laing said that CDC invested its capital in over 800 businesses, operating in the toughest investment climate in the world.
He stressed CDC’s commitment to operating responsibly and said that CDC would work with their fund managers to find solutions to these problems.
Geldof acknowledged that huge strides have been made towards achieving sustainable development and eliminating poverty in the developing world.
But the new major battle is, he said, to take things to the next level.
"Aid will disappear and be rendered utterly useless until it is supported and backed up by trade and investment," he said.
He added: "Poverty can be alleviated through aid, but will only be eliminated through trade, investment and growth. And it is trade and investment that will support the dynamism and enterprise of people in Sub-Saharan Africa and South Asia and give them the jobs, dignity and opportunity that they deserve."
The anti-poverty campaigner went on to point out a number of things that CDC could do better. They must focus more on job rich growth, poverty reduction, the green and low carbon economy and transparency, he said.
The secretary of state for international development was due to speak at the event but was unable to attend.
Instead, Liberal Democrat MP and chair of the international development committee Malcolm Bruce spoke, providing some interesting insights as to what the future might hold for international development policy under the Conservative-Liberal Democrat Coalition government.
The MP told the audience that both parties "recognise that sustainable long term development depends on a thriving public sector, in the end."
Bruce said that he would be interested to know whether the new government might explore how development in terms of the aid assistance budget and the private sector budget can interact more effectively.
"Somewhere between what DfID does and what CDC does there is scope to bridge that gap," he said.
He added that he wanted to see how aid and the private sector can be brought together to achieve success.
Article Comments
In countries such as Lesotho, the British Red Cross train community volunteers to provide practical and emotional support to people living with HIV in their towns and villages. These 'Care Facilitators' are able to access their friends and neighbours with key information and resources, including supporting clients to understand more about prevention of HIV, their treatment regimes and the support required to continue treatment.
Alyson Lewis, British Red Cross
25th Jun 2010 at 9:00 am
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