========= http://www.oneworld.org/oda/news4597.html From the Department For International Development _________________________________________________________________ CDC - A NEW PARTNERSHIP FOR DEVELOPMENT 45/97 22 October 1997 The Prime Minister, the Rt Hon Tony Blair MP announced today a new public/private partnership for the Commonwealth Development Corporation. In a speech to the Open Business Forum of the Commonwealth Heads of Government Meeting today, Mr Blair said: "I am less interested in whether an institution is public or private, than whether it works. The CDC is a public institution. I believe it can be improved by becoming a public/private partnership. "I can announce that we have decided to allow the CDC to develop a new relationship with the private sector. This will require legislation to allow private investors to invest money in CDC, | tuning a state corporation into a partnership between the public | and private sectors. Some of this money will take the form of | lending and some will be equity. The government will retain a | substantial minority holding and will continue to set a framework | for the corporation's operations in order to preserve its unique | character and special skills. | | "This new partnership will allow the CDC to borrow on the capital | markets. It will give the Corporation substantial extra funds each | year to invest in development. "I can also promise that all the money the Government raises from this sale will be ploughed straight back into our development programme." Clare Short, Secretary of State for International Development, said: "I very much welcome the Prime Minister's announcement. "I want to see CDC play a bigger part in the developing world. I have worked closely with CDC to design this new partnership, a partnership that will lever in significantly more finance and strengthen its leadership role as an ehtical and socially responsible investor." CDC Chairman Lord Cairns said: "CDC welcomes the prospect of making an increased contribution in the developing world through access to private sector funding. The Corporation believes the proposed partnership between the public and private sectors is an exciting way forward". Notes for Editors CDC's goal is to stimulate the development of emerging economies through the creation of sustainable business in the private sector. Fifty years of commercial success in emerging markets, an extensive global network, 25 overseas offices, unrivalled local expertise and the ability to combine innovative development strategy with practical achievement make CDC one of the world's leading development finance institutions. CDC's expertise as investor, partner, manager and catalyst is in increasing demand as the private sector continues to drive economic growth in emerging markets. CDC... * currently has 1.6 billion pounds invested in 404 projects in 54 countries * manages 34 businesses in 17 countries * invests equity and quasi equity and, when appropriate, term loans * manages 14 investment capital funds * supports small and medium sized business through its investments in financial intermediaries * provides country knowledge and industry skills to enhance the design and structure of investment proposals and thereby mitigates risk * mobilises international finance to promote the development of local capital markets. Department For International Development * The Department For International Development (DFID) manages Britain's development assistance programme to 150 developing countries as well as to the states of Eastern Europe and the former Soviet union. The Department is also responsible for coordinating all areas of UK policy which affect developing countries. A White Paper on international development - the first for 22 years - will be published in early November. It will set out the Government's new approach to the elimination of poverty in the poorer countries of the world. =========== 19 JUNE 1997 24/97 DEVELOPMENT AID FIGURES ISSUED BY OECD The OECD will today announce preliminary figures for net financial flows to developing countries in calendar year 1996. Figures for UK aid show : * the UK oda/GNP ratio fell to 0.27% in 1996 from 0.28% in 1995. The 1996 ratio is the lowest since 1990. * in cash terms, UK official development assistance (oda) rose to 2,041 million pounds in 1996 from 2,000 million in 1995 . OECD will announce these figures in US dollar terms showing UK aid at $3.2 billion in both 1995 and 1996 but, allowing for inflation, this represents a 1 per cent real terms decrease in 1996 Figures for all Development Assistance Committee (DAC) donors show: * UK remains the sixth largest aid donor in volume terms. * total net financial flows to developing countries rose in 1996 to exceed $300 billion for the first time. | * this rise was entirely due to private flows which are estimated to | have grown by almost $80 billion to $234 billion in 1996. These | flows are heavily concentrated in a small number of developing | countries. | * overall flows of net official development assistance totalled | $55.1 billion, showing a decline of 4 per cent in real terms from | the 1995 total of $58.9 billion. * the combined net oda/GNP ratio for all DAC donors fell from 0.27% in 1995 to 0.25% in 1996 - the lowest level recorded since the UN target of 0.7% was adopted in 1970. The EU ratio was 0.37%, falling from 0.38% in 1995. * the financing situations of developing countries are increasingly diverse and there is a growing volatility in the year-to-year aid disbursements of many donors. _________________________________________________________________ Note to editors 1. These figures all exclude assistance to countries in transition of Central and Eastern Europe and more advanced developing countries (Bahamas, Qatar, Brunei, United Arab Emirates, Kuwait, Singapore) which graduated to Part II of the DAC list of aid recipient countries in 1996. 2. The members of the Development Assistance Committee are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom, the United States and the Commission of the European Communities. Issued by Information Department, Department For International Development, 94 Victoria St, London SW1E 5JL. Tel. 0171-917 0950. Fax. 0171-917 0523. * For further information contact: DFID: -DFID Press Office, Tel: 0171 917 0950 CDC: - Roy Reynolds, CDC Chief Executive One Bessborough Gardens London SW1V 2JQ Tel: 0171 963 3801
