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International Development Questions 01.02.12

Sharon Hodgson took the opportunity to quiz International Development Ministers on the importance of sustainable, private sector job creation in developing countries, and the role that the G20 group of the richest countries in the world should be taking in encouraging that as part of their international development responsibilities.

Mrs Sharon Hodgson (Washington and Sunderland West) (Lab): What steps he is taking to increase the number of people in employment in developing countries. [92783]

The Parliamentary Under-Secretary of State for International Development (Mr Stephen O’Brien): Economic growth is the primary driver of job creation, and it is a top priority among the United Kingdom’s new development policies on economic development, wealth creation and job creation. The Department is implementing programmes that will strengthen the private sector, encourage investment, improve finance for businesses and enhance the education and skills of the work force in developing countries.

Mrs Hodgson: At the last G20 meeting, world leaders committed to establishing a taskforce to look at employment in developed countries. With unemployment rates in developing countries above 60%, will the UK Government urge the G20 taskforce to look not only at developed countries but at developing countries as well?

Mr O'Brien: The hon. Lady is absolutely right that we need to look at both developing and developed countries. As discussed throughout what has been a disappointing out-turn from the Doha round, it is important to understand what is coming through in terms of jobs, job creation and investment flows in the emerging countries as well. She is right: this has to be on the agenda for developing countries as much as for developed ones.

The exchange can be read in Hansard, or watched on Parliament TV.

Following this exchange, Sharon has written to the Minister to seek further assurances – the text of her letter is below:

Dear Minister,

I write to follow up on your answer to my question in the House yesterday morning regarding employment in developing countries.

I very much welcome DFID’s commitment to strengthening the private sector at the same time as enhancing the education and skills of the work force. However, the trend over recent years has seen the number of jobs available decrease. This lack of jobs around the world means that the unemployment rate in some poor countries has increased to over 60%, leading to well founded fears about the impact on development and security in those nations. Despite this, there has been a considerable lack of engagement among world leaders to tackle the issues of unemployment and underemployment which are holding many places back.

One example of this is the lack of consideration being given to employment issues and job creation in developing countries as part of the work of the G20’s Employment Task Force. In my supplementary question yesterday, I asked if DFID would ensure that this Task Force, established at the Cannes meeting last November, would consider employment issues in developing countries. As you have acknowledged in a recent answer to a question by Michael McCann MP, “Jobs are the lynch-pin in translating economic growth into effective poverty reduction.” Consideration of issues affecting employment in developing countries at this Task Force would not only provide a plan for truly global action, but would also ensure that important links are made between emerging economies who have successfully increased employment rates and developing countries who are struggling with these issues.

With this in mind, could you please set out how DFID will work with the UK’s representative on the Task Force (who I understand sits in the Department for Work and Pensions) to ensure that these issues are considered?

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Sharon Hodgson MP
House of Commons,
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E-mail: hodgsons@parliament.uk

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