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The Environmental Audit Committee states that the UK should only provide funding for multilateral institutions with strong environmental credentials. The current scale of the World Bank's lending to fossil fuel powered energy generation is unacceptable and the Committee urges the Government to be prepared to vote against new World Bank funding for high emissions coal-fired power stations. The profile of climate change has increased hugely but there is far less awareness of the importance of protecting biodiversity and ecosystems. The Committee believes that the Department for International Development (DFID) needs to publish a clear strategy on its approach to environmental issues to ensure that it gives them sufficient priority in its programmes and expenditure. Every effort must be made to help emerging economies leap-frog fossil fuels and fuel their growth with clean energy instead. High levels of consumption in the UK increases demand on production in poor countries which leads to degradation of their natural resources. The report calls on the UK Government to ensure that economic activity in Britain does not cancel out, or even reverse, the positive impact that UK aid is having overseas.
Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.
This report finds that Department for International Development (DFID) has the potential to take the lead internationally on integrating the environment into development: the structures and links exist but there is still an under-appreciation of the role of the environment in sustainable development. The report sets out the background, covering what poor people want, the Millennium Ecosystem Assessment, and Millennium Development Goals. It then considers development aid and how it is changing. Then the DFID's performance in integrating environment into development is critically examined. Subjects covered include DFID policy, water, climate and energy, agriculture, growth, environmental capacity, environmental screening, and the environment strategy. The Committee notes the failure of the Department to develop a coherent approach on the ground, as a damning review of country programmes has shown. It also highlights many areas where policy is poorly drafted and implemented, and where the Department's environmental expertise has been allowed to wither. The recent White Paper, 'Eliminating world poverty' (2006, Cm. 6876, ISBN 0101687621) is seen as a missed opportunity to make the environment as central to its work as the Department itself has made clear it should be.
Evaluation is a key tool in improving the quality and effectiveness of development co-operation. The Development Assistance Committee (DAC) Working Party in Aid Evaluation is the only international forum where bilateral and multilateral evaluation ...