Recommendations & Conclusions
16 items
1
Conclusion
Fourth Report - Effectiveness of UK aid…
Rejected
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, …
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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, and far from ready to reach any decisions about future systems and structures. • Linked to the status of the Integrated Review, there appears to have been no structured consultation of the aid sector, either in the UK or internationally, nor other obvious stakeholders to inform the decision to merge DFID into the FCO. • It is also perplexing that the decision to merge DFID into the FCO was taken in the midst of the COVID-19 pandemic. The decision puts the international response to COVID-19 in jeopardy at a time when global cooperation is needed. It is the world’s poorest and most vulnerable who are likely to pay the greatest price. • Little, if any, detail has been provided about the rationale for the decision or its timing, the options considered, likely costs and specific benefits, implementation plans for the reorganisation and how its success will be measured, the new department’s aims and objectives, and how it will tackle global challenges beyond aid.
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Government response AI summary
The government defends the merger of FCO and DFID, stating it reflects the Prime Minister's commitment to a unified British foreign policy and will maximise global influence. It argues the timing was right to shape the new department's objectives and unify the international COVID-19 response.
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Foreign, Commonwealth & Development Office
2
Conclusion
Fourth Report - Effectiveness of UK aid…
Rejected
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.
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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.
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Government response AI summary
The government counters the committee's concerns, stating the merger is a key moment to maximise international impact and will make the UK a stronger force globally. While acknowledging potential costs, it states these are being monitored, commitments made to minimise them, and will be factored …
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Foreign, Commonwealth & Development Office
3
Recommendation
Fourth Report - Effectiveness of UK aid…
Not Addressed
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 …
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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 change; quantifying expected costs and how intended benefits justify the costs; and showing how both will be measured and controlled.
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Government response AI summary
The government justifies the merger by citing efficiency and influence, noting that long-term cost savings may occur but are not the primary goal, and that work has begun to monitor short-term additional costs. It does not commit to presenting a formal, quantified statement to Parliament …
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Foreign, Commonwealth & Development Office
4
Conclusion
Fourth Report - Effectiveness of UK aid…
Not Addressed
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 …
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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 policy and implementation. (Paragraph 39) 38 Effectiveness of UK aid: potential impact of FCO/DFID merger Maintaining the effectiveness of UK aid
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Government response AI summary
The government justifies its decision to merge DFID and FCO, stating it will enhance aid by aligning development and foreign policy and is considering international evidence from other mergers, without directly addressing the committee's observation about other substantial donor countries typically separating policy and implementation.
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Foreign, Commonwealth & Development Office
5
Conclusion
Fourth Report - Effectiveness of UK aid…
Accepted
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 …
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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 - global poverty drives conflict and instability, and inaction on tackling poverty will compromise the other strands of the UK’s international policy.
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Government response AI summary
The government affirms its commitment to protecting the most vulnerable and poverty reduction, stating this is central to its work and reflected in current ODA priorities such as humanitarian crises and support for vulnerable countries.
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Foreign, Commonwealth & Development Office
6
Recommendation
Fourth Report - Effectiveness of UK aid…
Deferred
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 …
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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 Sustainable Development Goals and ensure that no-one is left behind.
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Government response AI summary
The government commits to achieving the Sustainable Development Goals but defers setting out specific foreign policy priorities and how they will be achieved to the Integrated Review.
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Foreign, Commonwealth & Development Office
7
Recommendation
Fourth Report - Effectiveness of UK aid…
Accepted
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.
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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.
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Government response AI summary
The government confirms its commitment to poverty reduction and states it will undergo the necessary process to transfer responsibilities under the International Development Act to the new FCDO, maintaining the legislation and the 0.7% aid spending commitment.
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Foreign, Commonwealth & Development Office
8
Recommendation
Fourth Report - Effectiveness of UK aid…
Rejected
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 AI summary
The government rejects the recommendation to appoint a dedicated Minister for Development who attends Cabinet and the National Security Council, stating that the Foreign Secretary is currently responsible for development and aid spend.
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Foreign, Commonwealth & Development Office
9
Recommendation
Fourth Report - Effectiveness of UK aid…
Acknowledged
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 …
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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 suggests it is not yet reaching the performance level required. The Government should set a target for all FCDO programmes to achieve a minimum ICAI grading of ‘green/amber’ within the next year.
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Government response AI summary
The government states it strives to ensure all programming is effective and meets ICAI standards of 'green/amber' where applicable, affirming its commitment to improving the effectiveness of UK aid. However, it does not commit to setting a formal target for this achievement within the specified …
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Foreign, Commonwealth & Development Office
10
Recommendation
Fourth Report - Effectiveness of UK aid…
Accepted
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 …
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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 both present efforts to tackle the pandemic and long- term development goals. The Government should maintain a commitment to multi- year programming and grants to locally led projects in order to safeguard hard-won development gains. In its current review of ODA spending, it should prioritise life- saving projects across the global south.
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Government response AI summary
The government commits to prioritising ODA spend for 2020 on key strategic objectives, including humanitarian crises and the COVID-19 response, and will continue to invest in multi-annual programmes and local leadership of projects.
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Foreign, Commonwealth & Development Office
11
Recommendation
Fourth Report - Effectiveness of UK aid…
Accepted
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.
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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.
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Government response AI summary
The government details its plan to develop staff skills in the new FCDO by prioritising learning and development, embedding best practices from the Infrastructure and Projects Authority, integrating operating frameworks, and utilizing technical advisers and existing learning platforms to maintain high-quality programme management.
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Foreign, Commonwealth & Development Office
12
Recommendation
Fourth Report - Effectiveness of UK aid…
Accepted in Part
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 …
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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 out how it intends to ensure that ODA administered through the new FCDO meets high standards for transparency in its programming. Consequently, it should commit to all UK ODA funding meeting the transparency standard of ‘good’ within the next year.
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Government response AI summary
The government commits to improving global aid transparency and maintaining high standards, stating that work has begun to integrate data systems and that the FCDO will be assessed in the 2022 Aid Transparency Index, but it does not commit to all UK ODA funding meeting …
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Foreign, Commonwealth & Development Office
13
Recommendation
Fourth Report - Effectiveness of UK aid…
Deferred
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 …
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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 its strategy for development spending through multilateral institutions over the next five years, including the proportions of UK ODA to be spent through bilateral and multilateral channels, whether it intends to honour existing agreements and how it will it will seek to influence these organisations to ensure that UK aid is spent in the best possible way. (Paragraph 91) Scrutiny arrangements
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Government response AI summary
The government states that its strategy for multilateral relationships and future ODA allocations, including the balance between bilateral and multilateral channels, will be considered as part of the Integrated Review and determined by the 2020 Spending Review.
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Foreign, Commonwealth & Development Office
14
Recommendation
Fourth Report - Effectiveness of UK aid…
Deferred
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 …
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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 spent in a strategic and transparent manner on high-quality interventions. Therefore, we recommend the creation of a House of Commons Select Committee on Official Development Assistance (ODA), with a remit for scrutiny of the totality of the UK’s ODA spending.
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Government response AI summary
The government agrees on the importance of parliamentary scrutiny and notes that the structure and remit of select committees are ultimately a matter for Parliament, suggesting a new committee will likely be set up to scrutinise the new department.
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Foreign, Commonwealth & Development Office
15
Recommendation
Fourth Report - Effectiveness of UK aid…
Accepted in Part
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 …
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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 to maintain its reputation as an international development superpower. It also satisfies the statutory requirement set out in the International Development (Official Development Assistance Target) Act 2015 for independent scrutiny of UK aid spending. There is simply no reason to change these arrangements. We recommend that the Government retains ICAI in its current form in order to provide thorough and independent scrutiny of the UK’s aid budget.
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Government response AI summary
The government confirms ICAI will continue to provide independent scrutiny, but its mandate will be broadened to include policy recommendations. A review has been commissioned to ensure its remit and methods align with the new department's aims, rather than retaining it in its exact current …
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Foreign, Commonwealth & Development Office
16
Recommendation
Fourth Report - Effectiveness of UK aid…
Deferred
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, …
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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, including recruitment of the Chief Commissioner and other commissioners; agreement of the forward work programme and commissioning work. (Paragraph 104) 40 Effectiveness of UK aid: potential impact of FCO/DFID merger
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Government response AI summary
The government commits to parliamentary and independent scrutiny but states that the specific form these arrangements will take following the merger will be set out in due course.
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Foreign, Commonwealth & Development Office