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DFIDs programme in Nepal : Sixth report of session 2009-10, Vol. 1: Report, together with formal Minutes
This report provides a summary of the recent contribution of the Department for International Development to delivering the Millenium Development Goals. It includes details by country describing progress made and DFID's contribution. It discusses aims for bilateral and multilateral aid and the statistical information on monies spent
The coalition Government has committed to increasing the Department for International Development's total aid spending from £7.8 billion in 2010-11 to £11.5 billion in 2014-15. The Department aims to improve and expand state primary education, focusing on sub-Saharan Africa and Asia. It works largely by influencing and financing developing country governments to pursue Millennium Development Goals. The Committee supports these aims, but expresses concerns about its ability to assess the value for money of its spending. Fourteen of the 22 countries the Department supports are on track to meet Millennium Development Goals for primary enrolment by 2015. The Committee also expresses concern that the Department cannot adequately attribute impacts to its spending and its influence. Even for its largest programmes, such as India, it typically contributes a low proportion of the countries' education spend. For the Committee, the Department needs to place value for money as the primary focus when allocating resources or assessing the performance of its education programmes. It needs to focus on how many children attend and complete primary education, along with the literacy and numeracy they achieve.
The International Development Committee reports that DFID can be proud of much of the work it does to build infrastructure in developing countries - on which the Department spends £1 billion annually. But it calls on Ministers to improve monitoring of infrastructure spending through multilateral organisations, such as the EU, World Bank and African Development Bank. The UK should also insist on provisions in large multilateral infrastructure projects which require local capacity building in order to boost local employment and the private sector with developing countries. The MPs also raise concerns that infrastructure construction in developing countries is particularly prone to corruption. The report points to DFID's success in helping to establish the Construction Sector Transparency Initiative (CoST) to counter corruption, which has proved effective and is to be transferred to the World Bank. DFID should continue to provide the funding and staff time to ensure that CoST can build on the successes of its pilot phase. DFID should publish a departmental strategy on infrastructure. This would help DFID clearly to convey its rationale and priorities within the sector, emphasising that DFID funding is directed to the Department's key priorities within the sector, including the need to build local capacity, implement road safety measures and ensure the use of technologies appropriate to the needs of developing countries. Far more private money is needed to finance large infrastructure projects, and DFID has done well in helping leverage private funding through initiatives such as the Private Infrastructure Development Group.
This annual report details the work and expenditure of the Department for International Development (DFID) during the period April 2006 to March 2007, working as part of the wider international effort to tackle world poverty and promote the sustainable development of low-income countries. The report includes chapters on: reducing poverty in Africa and Asia and progress towards the Millennium Development Goals; making the multilateral system and bilateral aid more effective; fragile states, conflicts and crises; environment, climate change and natural resources; and working with others on policies beyond aid. The assessment of progress is structured around the DFID Public Service Agreement (PSA) targets.
Many of the poorest countries in the world are affected by insecurity and violence. Insecurity has human and economic impacts, both for affected countries and their neighbours. Many insecure countries also receive lower levels of aid per capita than stable countries. These are good reasons to provide assistance to insecure countries, but there are also difficulties and risks. This report examines how the Department for International Development (DFID) works in insecure environments, ranging from some of the world's most insecure countries where armed conflict is still present and stabilisation is required, to less insecure contexts where donors may have more scope to engage in long term development projects. It examines what DFID is achieving and how it designs and manages its programmes, including dealing with risks to its staff. Insecurity is defined by reference to the incidence of political violence and the level of threat to aid workers. The NAO's work included four country case studies, literature and documentation review, data analysis and surveys. Their findings covered DFID's increasing interest in insecure environments, on what its expenditure has achieved in insecure environments, the design and management of country programmes, managing staff resources and costs and value for money. There are seven recommendations.
The Independent Commission on Aid Impact (ICAI) is an independent commission which reports to the House of Commons International Development Committee, not to the Department for International Development (DFID). The Committee ensures its accountability to Parliament in two main ways: through a sub-Committee, which takes evidence on the reports published by ICAI; and through an inquiry each year carried out by the full Committee into ICAI's Annual Report. 2013-14 has been a busy year for ICAI, with 12 reports published on a wide range of DFID's activities. ICAI's Annual Report contained three headline findings for DFID this year. Firstly, tighter management of multilateral partners is needed. Secondly, DFID needs to continue to improve its aid programme management capacity, especially where contractors are implementing programmes. Thirdly, DFID's corporate results agenda - and in particular its use of 'reach indicators' - is distorting programming choices. The Committee shares ICAI's concerns on these issues and intend to follow up its recommendations in two forthcoming inquiries this autumn: Beyond Aid; and DFID's Departmental Annual Report 2013-14. DFID spends a large amount of money - at least £200 million - on self-evaluation. However, it cannot provide an exact total. The Committee question this large expenditure, especially given that an ICAI evaluation recently found that DFID staff struggle to use self-evaluation material in their work. The contracts of the current ICAI commissioners, contractor consortium and staff all end in May 2015. While staff contracts may be renewed, new commissioners and contractors must be recruited. Planning is underway for the transition to the next phase of ICAI: all possible efforts must be made to ensure this goes as smoothly as possible.
DFID is right to focus more resources on fragile states if global poverty reduction goals are to be met. However, this report highlights a number of concerns about DFID's capacity to meet this and other new policy directions set out in the 2009 White Paper (Cm. 7656, ISBN 9780101765626), based on analysis of the Department's performance in 2008-09 (the Department's annual report 2008-09 published as HC 867-I,II, ISBN 9780102962154). Climate change, another key White Paper focus area, threatens progress on poverty reduction and will hit the poorest people first and hardest. The outcome of the Copenhagen Conference in December 2009 was disappointing and real progress needs to be made before the next conference at the end of this year. The White Paper also indicates that DFID will channel more funding through multilateral organisations including the EU, the UN and the World Bank. This offers the prospect of more coordinated delivery of aid, but only if these bodies increase their effectiveness and their poverty focus. The report also argues for speedier reform of the governance of the international financial institutions. The recession has had a significant impact on developing countries. It is estimated that an additional 90 million people will be affected by poverty as a combined result of the global food, financial and fuel crises over the last few years. Donors, including the UK, have responded and have sought to identify specific needs in developing countries, though many donors are failing to meet the aid commitments they have already made.
Regenerating Forests and Livelihoods in Nepal: A New Lease on Life documents the success story of an innovative rural development programme in the Himalayan foothills, Nepal. The project has made a real difference by transforming increasingly degraded land, where farmers carved out a meagre existence, into a fertile and prosperous zone where they could thrive. Project activities included bringing in effective cultivation techniques to protect the environment and introducing new local crops and goats, as well as promoting entrepreneurial spirit. Every intervention was carefully selected and conducted to mitigate climate change as well as to help farmers become more resilient to its effects. The ingredients of the project's success, from both the technical and human perspectives, are presented in this book, demonstrating people's commitment in a country prone to natural disasters and earthquakes.
This report examines the Department for International Development's financial management capability, its increasing focus on value for money, and the challenges it faces in managing its increasing programme budget while reducing its overall running costs. DFID is protected from overall expenditure reductions as the Government has committed to increasing the UK's aid spending to 0.7% of gross national income by 2013. The Department faces a substantial challenge to improve its financial management while reducing its administration costs by a third over the next four years. The Committee welcomes the planned introduction, in 2011, of a finance improvement plan. DFID must now keep up the focus on better financial management. There is concern that the Department does not quantify the likely level of leakage through fraud and corruption. And DFID is only considering fraud risk at the level of delivery method rather than at a country level. Management of fraud risk will require a stronger framework for ensuring money is properly spent on the ground, with effective monitoring and pro-active anti-fraud work. The likely increase in funding via multilateral organisations (which then determine how to distribute the aid worldwide) might not ensure value for money as DFID does not have the same visibility over the cost and performance of multilaterals' programmes as it does over its own bilateral programmes. Finally, the Committee is concerned that the Department still has insufficient data to make informed investment decisions based on value for money.