Carnegie Endowment, Washington D.C., 14 December 2010

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1 Carnegie Endowment, Washington D.C., 14 December 2010 The Right Honourable Alan Duncan MP, Minister of State, International Development Development, Diplomacy, Defence: an Integrated Response to Conflict and Fragility Overseas Good morning. May I begin by saying what a genuine pleasure it is to speak here at the Carnegie Endowment, a body that has done so much to push the boundaries of contemporary thinking on international foreign policy. I would like to acknowledge in particular, the recent publication, Yemen on the Brink, a typically insightful and thought-provoking contribution that stimulated much discussion amongst politicians and policy makers in the UK. I m delighted that DFID helped fund the research. It proves we are successful in getting value for money. The value of your work is immeasurable. The more we share ideas on the big defining challenges of our time, be they Yemen or Somalia, Afghanistan or Pakistan, the greater our chances of finding workable solutions. So, in that same spirit of collaboration, I want today to offer my own contribution to that debate, by arguing strongly that any meaningful and lasting response to conflict abroad must have development outcomes at its very heart. In pursuing that argument I will: examine the basic principles underpinning the link between development and conflict explore how conflict threatens a country s ability to pull itself out of poverty explain how instability abroad can threaten our national security I will take Yemen as a specific example set out very clearly the UK Government s position on Yemen; and, finally, argue that we have a pressing need to get this right, for which the Friends of Yemen process is key, and for which strong leadership is essential. Conflict and Development Before I map out the link between conflict and development let me pause for a moment to acknowledge that there are those both here in the States and back home in the UK who argue that, when in economic difficulty, our aid should be sacrificed. We say no to that. Although charity begins at home, it doesn t end at home. What s more, there are broader interests which are served by our aid budget. Disease, trade, migration, the economy, climate change all these things are directly affected by what happens 1

2 overseas. Far from being a misuse of money, development is actually one of the most costeffective and productive policies. That s why the UK Coalition Government stands by its commitment to devote 0.7 per cent of GNI to development from I am enormously proud of our Chancellor and Prime Minister for their steadfast leadership and I hope that Congress can be equally courageous when it debates this issue in the New Year. Nowhere is the value of development more apparent than in fragile countries. These countries are usually already desperately poor. As such, they lack the capacity to withstand the additional trauma of war. The UK Government has reassessed the way we approach fragility and conflict overseas, establishing a new National Security Council which brings together as one the Foreign Office, Ministry of Defence, DFID and all aspects of domestic security. In future, we will look at security in the round, not in compartmentalised boxes that treat development, diplomacy and defence as stand-alone efforts. We believe that by taking a more integrated approach we can actually better prevent conflicts from starting and reduce the risk of them escalating. That s why we ve doubled our aid for fragile countries. Our support has helped to get more than 5 million children into school in Afghanistan and to make basic healthcare available to eighty-five per cent of the population there. May I say too, how much we welcomed the new US Global Development Policy announced by President Obama at the MDG Summit in September and the acknowledgment that development is not only a moral obligation but also a strategic and economic imperative within the US National Security Strategy. Like most of you here today, we look forward to the launch of Secretary Clinton s Diplomacy and Development Review. With its emphasis on the contribution made by civilian power and an increased focus on peace-building and conflict-prevention, we expect to see much that echoes our own thinking. As I said earlier, development is an important part of the solution. But it is only one part. If we want to be successful in tackling conflict, vulnerability and grievances, development must sit within a broader approach. By working together across Government we can enrich the effect of our efforts. But let me be absolutely clear this is not a case of diverting development funding to meet others objectives. This is not about the militarisation of aid. Our aid will stick to development principles and to the OECD/DAC definition of what constitutes aid. 2

3 Conflict as a Barrier to Growth Just as there is a strong global interest in supporting fragile states, so too is there a compelling moral argument. No fragile state has yet achieved a single Millennium Development Goal. 22 of the 34 countries furthest from reaching those goals are in the midst of or emerging from conflict. Fragile states account for a third of those living in extreme poverty; for half of all children who are not in primary school; and for half of children who die before reaching their fifth birthday. Paul Collier, the renowned Professor of Economics at Oxford University hit the nail on the head when he described war as development in reverse. The real dilemma is this. The only sustainable route out of poverty is through long-term economic growth. Yet, fragile states by their very nature find it hard to grow. Instead, they become drawn into a cycle of grievance and conflict. A typical post-conflict country with no economic growth, for example, faces a massive risk of returning to conflict within ten years. In short, people living in conflict-affected countries bear a triple burden. They are poor, they live in fear of their lives and the solution of long-term economic growth is beyond their reach. Conflict and National Security I have talked so far about the various imperatives for addressing conflict but I have said little about the issue that has most resonance with ordinary people in the Western world: security. So let me move from the general to the specific, using Yemen a country close to my heart - as a topical example. We have in Yemen a perfect illustration of the complexity of today s conflicts. We see individual and community grievances interacting with powerful regional and global factors. As a result Tribal clashes become increasingly more difficult to manage. From a development perspective, Yemen s account is in the red. It has not, and will not, meet any of the MDGs. It has the worst figures of any country for the position of women in society; its population growth is one of the highest; lack of food security and malnutrition are on the rise and its macro-economy has been failing, hitting a budget deficit of over $2 billion at the end of last year. There is also the humanitarian problem of Yemen s 300,000 internally displaced people. Against this backdrop violent extremism is flourishing, threatening both the world s security and its energy supplies. But terrorism also represents a threat to the Government of Yemen, to its people and to the development agencies and diplomats who are trying so hard to support the country. Clearly, then, the Yemeni authorities need and deserve our support in their efforts to tackle this challenge. But we must not base our reaction solely on the terrorist threat. Rather, our approach must be as deeply rooted in development as it is in defence and diplomacy. It is this basic 3

4 philosophy that underpins the UK s position on Yemen; a philosophy that sees that it is better to take action today rather than run the risk of state failure tomorrow. Position of UK Government on Yemen In Yemen, the UK has been historically involved but we are now living in a non-imperial world. The UK has long since relinquished any wish to be some sort of bossy colonial force. All we wish to do is to use our influence and aid to assist the security of the world and to improve matters for Yemen and all Yemenis. Today, the UK s position on Yemen amply demonstrates that we have not only learnt the lessons of history but that we are prepared to invest time, effort and money in making development a powerful force for good in Yemen. Strong political will on the part of the Government of Yemen is essential the Friends of Yemen process which I want to come to in a second, is also key. We have to make sure that this process reinforces the triple agenda of development, diplomacy and s and that it does so in an integrated way. That s why we re spending some of our resources in helping Yemen to build the capacity of its government and to strengthen its accountability. For example, we are working with the government, civil society and the tribal systems to encourage approaches which find local responses that are appropriate to local needs. Done well, this can mean that the same government can deliver tangible improvements in the provision of basic services for the poor, helping to address the concerns and grievances that, left unchecked, can fuel radicalisation. Take, for example, our work on security. DFID s support to policing and justice systems not only counters external threats but makes life safer for ordinary Yemenis. On the one hand, it brings improvements in community policing and on the other, it makes it easier for the police to gather intelligence on the ground. This impact is magnified thanks to the support which the Ministry of Defence gives to the Yemeni coastguard and which the Foreign and Commonwealth Office provides on the wider political and human rights dialogue. In parallel with this we will continue with what you might think of as the more traditional development interventions building schools and clinics, and all the other things that Yemen s Social Fund for Development does so well. Since 2005, UK aid has helped to build nearly 150 schools and almost 2,000 classrooms. Thanks to the Social Fund, some 7 million or so people across Yemen s 333 districts have better local services. Within the next few years it will have provided 10 million days of employment for Yemen s poorest people. 4

5 But we need to look further - to tackle the lack of jobs and the causes of child malnutrition; to support a process of National Dialogue that will lead to inclusive and fair elections next year; and to get government working in a way that is more responsive to people s needs. These are the foundations of lasting growth and the best defence against poverty and extremism. By working with civil society, local government and the traditional tribal systems, we hope to address local grievances, to empower the Government and as a consequence to see the emergence of a stronger, more stable Yemen. And may I say now that the UK calls on all parties involved in the Houthi conflict to agree and implement a long-term peace agreement and to ensure full humanitarian access to all conflict-affected regions. In all of this we have to be conscious of a bigger philosophical truth. Just as we choose to speak different languages we choose to have different ideas of nationhood. We cannot look at Yemen and its concept as a nation, simply through Western eyes. Arabic and tribal loyalties make up a different picture. One of the biggest challenges facing us therefore, is to resist the temptation to impose Western models on Yemen or to try to tell it what to do. Instead, we must give its government and its people the freedom to shape their own future. Challenge Facing International Community The Friends of Yemen process recognises that truth and provides us with a huge opportunity to support Yemen in its quest for peace and stability. This brings me to the final point that I want to make today: that it is vital that the Friends of Yemen pull together and show commitment at this critical time. Too often in the past, our efforts have been fragmented - in truth, international support has sometimes been more of a hindrance to Yemen than a help. The Friends process finally offers us a way of co-ordinating our responses - but it won t happen on its own. We have to talk to each other, to be honest with our Yemeni friends, to be flexible, above all to make sure that we have people on the ground in Sana a and that we listen to them. If we let this golden opportunity slip through our fingers we and Yemen will pay the price for years to come. So as we plan for the next Friends meeting in Riyadh in February, we must not forget that there is still a lot to be done in the intervening months. In particular, we need to see a unified, prioritised and Yemeni-led development and reform plan that will allow international donors to decide where to channel their support. And we support the US government in championing the launch of a Multi-Donor Trust Fund to support Yemen s development priorities. I hope this will also prove sufficient to mitigate against any short-term negative impact of the IMF programme on the poorest in Yemen. Backed by the strong leadership displayed by President Saleh and by the Government, these measures will help Yemen to adjust to the change of the next few years. At the same time, the international community must do more to improve the quality of its support so that it is less fragmented and better co-ordinated. This applies to the Gulf and Western donors, multilaterals and NGOs alike. 5

6 We can take heart from the progress that has already been made. Within Yemen itself, we have seen the implementation of the IMF programme; an agreement to a ceasefire with Houthi rebels in the north; and the launching of the vital process of National Dialogue. The Friends of Yemen meeting in New York in September was widely regarded as another successful step in the right direction. But this progress must be maintained. It would be easy for any of these gains to fall away. For me, the dire situation only sharpens my resolve I know others in Yemen share my feelings. And of course, it behoves all of us to recognise that the experience of Yemen s neighbours, notably, Saudi Arabia and Oman has long overtaken our own in this area. We value their support and will continue to work with them. Conclusion Ladies and Gentlemen, I have focussed this morning on Yemen, a country that I have known and loved for many years. There are, of course, other countries that I could have mentioned: Afghanistan, Pakistan, Somalia to name but three. I would not suggest that what works for Yemen will work elsewhere. There are certain conditions that tend to make conflict more likely hence our focus on prevention but there is no template for what that conflict looks like when it happens. It is as unique as the individual countries it inhabits and so too must be our response. For the UK - the one constant, the one certainty - is that any successful response will stand firmly on the tripod of defence, development and diplomacy. What matters now is that all of us, the international community, donors, multilaterals, NGOs, governments and civil society galvanise our support for fragile states. In doing so we can ameliorate the impact of existing conflict on the world s poorest people and if we act quickly pull others back from the brink. The will is there, all that remains is to match rhetoric with reality. It was after all, Andrew Carnegie himself who famously said: As I grow older I pay less attention to what men say, I just watch what they do. Thank you. 6

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