Source · Select Committees · International Development Committee

Recommendation 3

3 Accepted Paragraph: 25

Vulnerability-based measures are necessary for SIDS to access UK ODA

Conclusion
We recognise that there could be risks in moving towards the use of vulnerability- based measures in determining ODA eligibility. However, such a move is necessary for ensuring that vulnerable SIDS have the opportunity to access UK aid. It will remain for individual donor countries to determine where the need for ODA is greatest.
Government Response Summary
The government agrees that current ODA processes for SIDS require improvement and is using its influence within the OECD to advocate for strengthened processes that better incorporate SIDS' vulnerabilities, while also supporting the development of a multidimensional vulnerability index.
Paragraph Reference: 25
Government Response Accepted
HM Government Accepted
Partly Agree 7. The FCDO agrees that the current process for assessing SIDS’ readiness to be classified as high-income countries requires improvement. UK representatives are using our influence within the OECD to advocate for strengthened ODA processes to reflect and incorporate SIDS’ vulnerabilities better. The UK is currently working with like-minded donors to do this including through the UK co-chaired Partnership for Action of DAC and Alliance of Small Island States (AOSIS) members, launched at the UN SIDS4 Conference. All UK ODA spending is consistent with the international rules agreed by the OECD’s Development Assistance Committee. The rules on ODA-eligible spend can only be changed if all 32 OECD Development Assistance Committee members agree. 8. The UK supports the Glasgow Climate Pact’s principle that providers of finance should consider vulnerability in finance decisions. The World Bank’s Small Economies Exception is a good example of this. The FCDO appreciates the ongoing work at the UN to develop a multidimensional vulnerability index (MVI), which can be a useful tool to assess vulnerability. However, further improvements are needed to the UN MVI and the UK will continue to engage to improve its technical robustness.