Cameron defends foreign aid plan

Critics say the plans will divert money away from improving state education

Conservative leader David Cameron has defended his plans to increase spending on international development despite the UK recession.

He said that reducing poverty is key to tackling major global threats such as terrorism and climate changes.

Tory plans include using the private sector to provide healthcare and education in developing countries.

But a government spokesman said the idea would divert vital funds away from improving the state sector.

Unveiling their One World Conservatism Green Paper on Monday, the Tories stressed their commitment to meeting the United Nations target of spending 0.7% of national income on international development by 2013.

Mr Cameron said it would be a serious long-term mistake to drop the pledge because major global threats such as terrorism and climate change would get worse unless tackling poverty is a priority.

He called for aid to be brought into "the post-bureaucratic age" and pledged that the Conservatives would be "hard-headed - but not hard-hearted".

His proposals included:

• Using aid vouchers to give poor people and communities choice over the help they receive

• Introducing payment by results and offering increased funding to those agencies who can prove they are reducing poverty and cutting it for those who cannot

• Carrying out "a root-and-branch review of which countries receive aid from Britain", with a view to ending bilateral assistance to China and redirecting the savings to poorer countries

• Giving "far greater prominence to promoting conflict prevention and resolution", including better training for UN peace-keeping troops and support for a crackdown on international arms dealing

• Creating opportunities for more young British people to carry out voluntary work in developing countries

'Real results'

The Tories insist they plan to introduce "a tough new approach to ensure that every penny of aid funded by the British taxpayer is spent wisely".

Shadow international development secretary Andrew Mitchell said: "With a Conservative government, Britain's generosity will be matched by a relentless drive for value for money.

"We will demand transparency, accountability and real results from all our aid."

The Tories say they will focus on promoting "property rights, the rule of law, accountable government, a vibrant private sector, effective public services, stability and security, and access to finance and global markets".

But charities have expressed doubts about some of Mr Cameron's ideas, particularly the option of aid vouchers.

Oxfam said that while vouchers might sound like a way to give choice to poor people, in many parts of the world there were simply no health or education options to choose from.

A spokesman for the International Development Secretary Douglas Alexander said the Tory focus on private investment would divert money away from improving the state sector.

It could ultimately deprive the poorest families of education or healthcare, he said.

Mr Cameron insisted that the voucher scheme was "a totally non-ideological approach" which was about taking "some of the power from the bureaucrats in Whitehall" and handing it directly to the poor.