Global institutions
affecting UK policy
British governments take part in decisions made on a global level
by a large number of international organisations that reach into
every part of domestic life in this country. These organisations
determine the rules governing everything from international
telephone calls to global trade. Some of these bodies also have the
ability to make international law which binds the UK government and
determines its policy. They are so numerous that the Foreign and
Commonwealth Office (FCO) does not hold a comprehensive list of
international organisations of which the UK is a member.
Here we consider the current parliamentary arrangements for
scrutiny of decisions taken at inter-governmental organisations. We
confine ourselves to the major bodies that have a largely domestic
impact on the UK (and so for example we do not discuss oversight of
NATO here).
According to traditional constitutional practice ministers should
be held accountable for their part in international organisations.
However breakdowns and faults in process and practice mean decisions
are being taken at international organisations with very little, if
any, parliamentary oversight. One problem is that Parliament can
only hold UK ministers to account for their actions, not the
international organisations - and there is no directly elected
"world parliament" to perform the latter function.
The World Bank and
the International Monetary Fund were established at the 1944 Bretton
Woods conference between the US and UK to address financial issues
arising at the end of the Second World War; but as organisations
they have outlasted the original Bretton Woods settlement.
The World Bank is not a bank in the traditional sense of
the word; nor is it a central bank for the world. Its purpose is to
"fight poverty and improve the living standards of people in the
developing world". Rather than a single entity it is a group of five
different organisations under the "World Bank umbrella": the
International Bank for Reconstruction and Development (IBRD); the
International Development Association (IDA); International Finance
Corporation (IFC); the Multilateral Investment Guarantee Agency
(MIGA); and the International Centre for the Settlement of
Investment Disputes (ICSID).
References to the World Bank normally mean the IBRD and IDA, the
parts of the World Bank Group that provide the grants and low- or
zero-interest loans to developing countries.
The International Monetary Fund (IMF)
The IMF has a broader remit than the
World Bank. It was set up to provide short-term lending to counter
balance-of-payment crises. The potential impact of the IMF on
Britain's domestic policy was dramatically demonstrated during the
sterling crisis of 1976, when the IMF required a dramatic reduction
in the public sector borrowing requirement as a condition of support
to the UK economy.
But the IMF's more continuous and significant power is over
developing countries through the facility to provide short-term
loans in times of financial crisis. The IMF often attaches
"structural adjustment" conditions to these loans, requiring states
to adopt neo-liberal economic policies such as privatisation of
state-owned industries and liberalising trade - the so-called
"Washington consensus". This conditionality is highly controversial
and runs counter to UK development policy, heightening the
importance of parliamentary scrutiny of the role of UK ministers
within the IMF.
Departmental responsibility for the IMF lies with the Treasury. The Commons
Treasury Select Committee
has stressed the importance of access to information on the
activities of the IMF, particularly on who has taken decisions and
why, to make its work more accountable.
In 2001, the committee announced its intention to hold regular
hearings with the UK executive director of the IMF - a Treasury
official - but this has not occurred. Nor does it systematically
hear evidence from the Chancellor of the Exchequer following the
autumn meetings of the IMF. However it has regularly considered
important strategic issues in relation to the IMF, like its recent
inquiry reports on the IMF and globalisation
and in 2005-06 a report on the role of the IMF and on the UK's role
within the IMF (HC 875).
The Chancellor of the Exchequer traditionally makes a written or
oral statement to Parliament following the autumn meetings, although
it may be in response to a question. The brief statements give
basic, but limited, information and the Chancellor determines what
they contain, in contrast with a formal report to Parliament. The
Commons rarely debates these issues.
The Bank for International Settlements
(BIS)
BIS was originally established for the
administration and distribution of the reparations payable by
Germany following the end of the First World War. Its members are
not states but rather central banks, so it is the Bank of England, not the Treasury, that is the UK
member of BIS.
Its functions are now twofold - first to provide institutional
support for the promotion of greater international monetary and
financial stability; and second to act as a bank to central banks
and other international organisations. It is the former function
which provides the BIS with its substantial international
influence.
The line of accountability to Parliament for the work of BIS is
confused. Departmental responsibility for BIS falls within the scope
of the Treasury, but the Bank of England's independent status makes
the position less clear. The only parliamentary question tabled on
the BIS in the last ten years, in 2003, led to the response that the
Treasury had "no formal responsibilities with respect to the
governance of the Bank of International Settlements". The Treasury
Select Committee
is able to investigate the activities of the Bank of England - but
it has not carried out any inquiries into BIS. The Bank's annual
reports are tabled in Parliament, but there is very little other
parliamentary oversight.
The UN was established by
international treaty - the UN Charter - following
the Second World War. It is the major international forum for global
affairs and relations. It is a hierarchical and complex organisation
with a large number of independent specialised agencies.
The UN's primary task is the promotion of international peace and
security, but UN agencies also provide forums for international
action on a wide variety of issues under the UN mandate to "achieve
international cooperation in solving international problems of an
economic, social, cultural or humanitarian character." Its six most
senior organs are the General Assembly; Security Council; Economic
and Social Council; Trusteeship Council; Secretariat; and
International Court of Justice. The Security Council is the most important
political organ of the UN, on which the UK has a permanent
seat.
The Foreign and Commonwealth Office (FCO)
The Foreign and Commonwealth Office (FCO) is the lead UK department on the UN and is supported by a permanent
mission to the UN. In 2003 the FCO undertook to produce an annual
report on Britain's role in the UN.
The first of these was published in September 2003, the second in
October 2004. There was no report in 2005 despite the important
world summit that considered the future of the UN. A report was
published in 2006.
These reports represent the first regular formal reporting of
activities at the UN to Parliament, but they have not included a
great deal of detail. While in 2003 and 2004 debates were held in
Parliament timed to coincide with the preparation for the autumn
General Assembly meeting the changing of the parliamentary timetable
has made this difficult and there is doubt as to whether they will
continue.
Few debates take place in the House of Commons on the UN as a
whole. There are debates on specific issues that are relevant to the
UN, but these have often been adjournment debates that depend on a
backbencher selecting the topic and being drawn out of the hat.
These debates have only a limited time and few MPs are able to
speak.
The House of Commons held only one debate on the Rwandan genocide
while it was taking place and that was an adjournment debate. More
recently the genocide in Darfur attracted more parliamentary
attention. The government ensured that there were statements to the
House on developments and gave MPs and peers opportunities to
discuss the issues. However it was the government that determined
the different amount of time allocated to the two humanitarian
crises, through its control of parliamentary business.
The Commons Foreign Affairs Committee
Foreign Affairs Committee
has paid little attention to the UN, despite its clear importance
for international relations. In fact the last time that the FAC
conducted an inquiry into the UN was in the 1992-93 parliamentary
session.
The World Health Organisation
(WHO)
WHO is a UN specialist agency
established with the aim of enabling all people to attain the
highest possible levels of health. It is established separately from
the UN, not a subsidiary body. It has a broad remit pursuing
activities from ensuring international preparedness for avian flu to
coordinating a global strategy on obesity. WHO was responsible for
the eradication of smallpox and carries out many on-the-ground
activities (such as vaccination programmes). It can create
international law through treaties and health regulations.
Britain shares responsibility for dealings with the WHO with the
EU. The lead government department for WHO is the Department of
Health, which liaises with the
Department for International Development
and determines positions in consultation with the FCO. Thus
parliamentary questions on the WHO are not always answered by the
Secretary of State for Health; they may be dealt with, for instance,
by the Secretary of State for International Development. Decisions
and resolutions of the WHO executive board are tabled in Parliament
for information. The FCO annual report on the UN reports on the WHO
- but only briefly. The Commons Health Committee
has not conducted a specific inquiry into the work of WHO in the
past five years.
1. As
with European policy, much international policy is intimately
entwined with domestic policy, and so it remains incongruous that it
remains almost wholly within the remit of the overstretched Foreign
Affairs Committee rather than being considered by the expert subject
committees. International policy, alongside European policy,
should be "mainstreamed", with the relevant departmental select
committees taking on the responsibility for oversight of relevant
international policy issues alongside domestic policy.
The work of the relevant subject committees could be arranged
around the typical structure of international organisations.
Committees would expect to receive the agenda of any relevant large
meetings as soon as it was available, thus giving them the
opportunity to ask the minister questions about any pressing
issues.
2. We
also recommend that committees should consider holding regular
evidence sessions with ministers before and after meetings where
significant issues for domestic policy are involved as well as on
any broader issues in connection with the international
organisation. This initiative is part of our overall promotion
of "soft mandating" and would enable a dialogue to develop between
the committees and relevant ministers (go to Improving Democratic
Oversight).