Source · Select Committees · International Development Committee
Recommendation 20
20
Acknowledged
Throughout this inquiry, we heard how budget reductions had affected programmes tackling poverty.
Recommendation
Throughout this inquiry, we heard how budget reductions had affected programmes tackling poverty. The Government has stated that it knows what works in addressing extreme poverty, but it has not consistently demonstrated that insight in its funding decisions. We recommend: Ȥ The FCDO must ensure that its focus on trade and investment, and the rising costs associated with Ukraine and Afghanistan, do not lead to further decreases in funding for poverty reduction programmes, such as health, nutrition, Water, Sanitation and Hygiene (WASH), education, social protection and graduation programmes. Ȥ The focus must be on the entrenched poor, alongside those who have more recently slipped into extreme poverty as a result of the pandemic and global economic crisis. We need a restoration of the 0.7% of GNI target for development spending in order to effectively support the poorest people. Ȥ The FCDO should use the multidimensional poverty index (MPI) to assess need and to direct funding accordingly. (Paragraph 96) 56 Extreme poverty and the Sustainable Development Goals Strategy, reporting and transparency
Government Response Summary
The government reiterated its commitment to spending 0.7% of GNI on ODA when the fiscal situation allows and highlighted the International Development Strategy's focus on trade, humanitarian aid, girls' education, and health as part of poverty reduction efforts. They stated they use a range of information sources to inform ODA funding decisions.
Government Response
Acknowledged
HM Government
Acknowledged
The International Development Strategy describes the role of trade in “help[ing] countries to grow their economies, raise incomes, create jobs and lift themselves out of poverty”. Alongside trade, the Strategy is clear about the UK’s continued support for other areas of work, including humanitarian, girls’ education and health, as part of our broader approach to poverty reduction and development. The Government is committed to spending 0.7% of GNI on ODA as soon as the fiscal situation allows. This commitment was re-emphasised at the Autumn Statement 2022. We are strengthening the governance of cross-government ODA, including a cross-government Ministerial body for ODA oversight co-chaired by the Minister for Development and the Chief Secretary to the Treasury. The FCDO uses a range of modelling and information sources to inform ODA funding decisions, including indicators on humanitarian need, the ability for a country to make effective use of aid and self-finance its own poverty reduction and reductions in the number of person poverty years (the number of poor people multiplied by the number of years they are expected to remain poor), in line with the IDS commitment to “channel the majority of our ODA towards low-income countries.