Recommendations & Conclusions
16 items
1
Conclusion
Fourth Report - Effectiveness of UK aid…
Reorganising departments is not easy. In our view, the decision to merge the FCO and DFID into a new international department, the Foreign, Commonwealth and Development Office (FCDO), is flawed on a number of grounds: • The decision was taken whilst the Integrated Review was paused, in its early stages, …
Government response. Both the Integrated Review and the merger of FCO and DFID are evidence of the Prime Minister’s commitment to a unified British foreign policy that will maximise our influence around the world. A great deal of work had been undertaken …
2
Conclusion
Fourth Report - Effectiveness of UK aid…
While merging departments may seem attractive short-term, with improved policy coherence and possible administrative savings, they can be extremely costly and disruptive and impair organisational effectiveness. In the long run, the creation of the FCDO could reduce the UK’s influence on the world stage.
Government response. As the Foreign Secretary stated in Parliament on 8 September, “The creation of the new Foreign, Commonwealth and Development Office today is a key moment: a key moment for our vision of a truly global Britain, and a key moment …
3
Recommendation
Fourth Report - Effectiveness of UK aid…
In the light of developments since the publication of this Committee’s interim findings on the effectiveness of UK aid, we restate the recommendation we made in that report about significant reorganisations of UK aid: that the Government should present a statement to Parliament setting out an evidence-led rationale for any …
Government response. As the Prime Minister noted in Parliament on 16 June, Australia, Canada and New Zealand all run generous and respected development programmes and foreign policy from one Ministry. Merging the departments allows us to bring together our international effort and …
4
Conclusion
Fourth Report - Effectiveness of UK aid…
While there has been a trend in recent years for some OECD donor countries to merge their development and foreign policy administrative bodies, all the other most substantial donor countries - the United States, Germany, France and Japan - typically adopt governance models where there is a clear separation between …
Government response. Merging DFID with the FCO to create the new FCDO will enhance our aid by bringing together the best of what we do in aid and diplomacy to make the UK a force for good in the world. It is …
5
Conclusion
Fourth Report - Effectiveness of UK aid…
UK aid spending amplifies the UK’s voice on the world stage, promoting our national interest by projecting our core values, and transforming the lives of people living in the very poorest countries. A potential shift of the UK’s ODA budget away from helping the very poorest people would be counterproductive …
Government response. The UK is a world leader in international development, helping to end extreme poverty in developing countries by tackling challenges like Covid-19, saving lives in humanitarian crises and helping girls get a quality education. Investing 0.7% of Gross National Income …
6
Recommendation
Fourth Report - Effectiveness of UK aid…
Poverty reduction should continue to form a central part of the Government’s international policy. Accordingly, it should commit to targeting the majority of the UK’s ODA spend towards the very poorest countries. The Government should also set out how its refreshed international policy intends to work towards attainment of the …
Government response. The UK Government is committed to playing its part in global efforts to achieve the Sustainable Development Goals (SDGs) and leave no one behind. As the Prime Minister said in his statement to the UN Financing for Development High-Level Event …
7
Recommendation
Fourth Report - Effectiveness of UK aid…
The UK’s development legislation plays an intrinsic part in ensuring that aid is spent well and is focused upon poverty reduction. The very presence of this legislation demonstrates the UK’s role as a serious player in international development, and accordingly the Government should commit to maintaining the UK’s development legislation.
Government response. The UK will continue to champion poverty reduction, gender equality and tackle exclusion in international development because that’s the only way we will create a fairer, safer and more prosperous world, and achieve the Sustainable Development Goals. This is the …
8
Recommendation
Fourth Report - Effectiveness of UK aid…
We recommend that the Government appoints a Minister for Development with responsibility for the totality of the UK’s aid spend, and that this Minister attends Cabinet. We also recommend that this Minister attends the National Security Council.
Government response. The Foreign Secretary is responsible for development and aid spend.
9
Recommendation
Fourth Report - Effectiveness of UK aid…
UK aid will increasingly have to balance short term diplomatic needs and initiatives with long term development objectives. Ultimately, ensuring that UK aid interventions are high quality is crucial to maintaining the UK’s reputation as a top-level development provider, and we are concerned that the FCO’s performance in ICAI reviews …
Government response. The Government values scrutiny, which is a crucial aspect of holding Government to account for taxpayers’ money and improving the impact of Government spend and actions. ICAI operates independently of government, and the new department will seek to continue, and …
10
Recommendation
Fourth Report - Effectiveness of UK aid…
In the face of pandemic-related budget cuts, difficult decisions will need to be made as to how savings can be made whilst protecting the overall effectiveness of aid spending. Given the grave challenges faced by developing countries in tackling COVID-19, disproportionately cutting long-term and locally led development programmes would hamper …
Government response. The Government has committed that the remaining ODA spend for 2020 will be prioritised to focus on key strategic objectives that include: poverty reduction for the poorest and most vulnerable; responding to humanitarian crises and protecting those in the most …
11
Recommendation
Fourth Report - Effectiveness of UK aid…
To safeguard the effectiveness of UK aid interventions, the Government should set out how it intends to capture and retain DFID expertise in doing development well, and what plans are in place to rapidly train FCO staff in the skills necessary to manage effective and poverty reduction focused development programmes.
Government response. The FCDO will build on the strengths of both the FCO and DFID, developing the skills of its staff in development and diplomacy while also leading efforts to improve international capability across government. Consequently, as we continue to develop the …
12
Recommendation
Fourth Report - Effectiveness of UK aid…
Aid spending through the FCO continues to raise concerns relating to transparency and quality of programming. With the new FCDO set to become the largest Effectiveness of UK aid: potential impact of FCO/DFID merger 39 implementing department of UK aid spending, this trend is very concerning. The Government should set …
Government response. The UK is globally recognised for its expertise and transparency in aid spending. The new Foreign, Commonwealth and Development Office will continue to benefit from that expert knowledge as it delivers aid programmes to some of the world’s poorest people. …
13
Recommendation
Fourth Report - Effectiveness of UK aid…
Multilateral spending forms an important part of the UK’s ODA, but we are concerned that the merger may lead to an increase in funds provided to these organisations for generalised future spending rather than targeted funds delivering immediate benefits. As part of the Integrated Review, the Government should set out …
Government response. The UK’s multilateral relationships and priorities will be considered as part of the Integrated Review, which will set an ambitious vision for the future of the UK as an active, internationalist, problem-solving and burden-sharing nation. The government is clear that …
14
Recommendation
Fourth Report - Effectiveness of UK aid…
In 2019, the UK aid budget totalled £15.2 billion. Given the size and complexity of this budget, thorough parliamentary scrutiny of UK aid spending is essential. This is best performed by a dedicated select committee which is able to take a holistic overview of UK ODA, ensuring that aid is …
Government response. The Government agrees that Parliament has an important role in scrutinising UK aid spending. Select committees are fundamental in scrutinising the Government’s spending and policies, and we are grateful for the constructive and collaborative approach adopted by the International Development …
15
Recommendation
Fourth Report - Effectiveness of UK aid…
Through its close work with us, and our sub-committee, the Independent Commission for Aid Impact (ICAI) is a crucial part of the robust scrutiny architecture which ensures the aid budget is well spent. ICAI’s expert reviews identify areas of good practice as well as areas for improvement, helping the UK …
Government response. The Foreign, Commonwealth and Development Office remains committed to the highest standards for overseas spending and improving transparency of aid globally. ICAI plays a vital role supporting Parliament in the scrutiny of UK aid’s impact and helping to maintain these …
16
Conclusion
Fourth Report - Effectiveness of UK aid…
Drawing upon the highly effective model of cooperation between the National Audit Office and Public Accounts Committee, the new ODA Committee should have responsibility for receiving and considering ICAI’s reviews. It should also have responsibility for the other aspects of cooperation and coordination with ICAI in which we currently participate, …
Government response. The FCDO will remain committed to parliamentary and independent scrutiny of the aid budget across Government, and full transparency in aid spending. The form this takes following the merger will be set out in due course.