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Iraq and Afghanistan: Reconstruction and Development

Volume 687: debated on Tuesday 19 December 2006

asked Her Majesty's Government:

What has been the cost to public funds in each of the past five years of reconstruction and development in (a) Iraq, and (b) Afghanistan; and what financial provision has been made for this in 2006-07 and 2007-08. [HL782]

Afghanistan is one of the poorest countries in the world. It is DfID's fifth largest programme. The UK is Afghanistan's second largest bilateral donor. At the London conference in January 2006, DfID committed to providing £330 million in development assistance over the next three years. This forms part of the UK's overall pledge of £500 million over the next three years to reduce poverty, improve security and governance and tackle the opium industry. The UK aid budget for Afghanistan is £102 million this year, rising to £113 million in 2007-08, and £115 million in 2008-09. In addition, DfID contributes 18 per cent—around £125 million—of the European Commission’s pledge of €1 billion over 2002-2007, and 10.4 per cent of the World Bank's spending in Afghanistan of $250-300 million a year. We also contribute to UN programmes and to the Asian Development Bank.

Iraq currently requires help from the UK and others to stem violence and build a stable society and economy. In 2003, the UK pledged £544 million for humanitarian and reconstruction assistance for Iraq. The UK has now fully disbursed this pledge and committed a further £100 million to be spent on reconstruction and development in Iraq over the next three years.

The table below shows the total spending in Afghanistan and Iraq over the past five years.

(figures in £000s)

Development Assistance1

Humanitarian Assistance

Total DfID Bilateral Programme

Aid from other UK Official Sources2

Total Bilateral Gross Public Expenditure

Afghanistan

2001-02

53

49,943

49,996

31

50,027

2002-03

30,292

44,253

74,546

1,472

76,018

2003-04

69,225

10,457

79,683

19,912

99,595

2004-05

72,522

7,067

79,589

19,370

98,959

2005-06

95,040

3,390

98,430

28,519

126,949

Iraq3

2001-02

0

7,760

7,760

0

7,760

2002-03

0

18,853

18,853

0

18,853

2003-04

99,261

110,052

209,313

5,000

214,313

2004-05

27,724

21,383

49,107

342,400

391,507

2005-06

82,105

4,764

86,869

339,380

426,249

Source: Statistics on International Development 2001-02 to 2005-06

1 Includes financial aid, technical co-operation, grants and aid-in-kind, and total DfID debt relief.

2 Includes non-DfID debt relief, British Council and the Global Conflict Pool.

3 Recorded flows to Iraq before 2003-04 are humanitarian assistance provided through UN agencies and civil society organisations for Iraqi citizens. No aid was provided to the Government of Iraq during that period.