A “silent withdrawal from ringfencing the aid budget”? Hmm.

Lots of agitation on the internets this weekend with news of cancellation of various DFID funding priorities. It all seems to stem from this leaked submission from DFID’s Policy Director, Nick Dyer, on the subject of “which previous public commitments DFID should track and honour”.

 The new government took office with over a hundred such commitments on the books, the submission notes – before recommending keeping just 19 of them (including, thankfully, the £1 billion for food and agriculture and the £1.5 billion for fast start climate finance). Here’s the list of which commitments the submission proposes dropping.

Cue predictable howls of outrage from, well, everyone you’d expect (see this post on Left Foot Forward, and this Observer piece from over the weekend), plus an accusation from Caroline Crampton in the Statesman that “a silent withdrawal from the ringfencing policy seems to be underway”.

Well, hmmm… I’m not so sure. I have questions of my own about where Andrew Mitchell is taking DFID – I really hope the ultra-low profile he’s been keeping on big global policy issues like climate change is a reflection of a tactical decision to lie low until after the Spending Review, rather than a ‘new normal’; I’m seriously worried about what’ll happen to DFID’s headcount if its admin (rather than programme) budget is deemed eligible for the 25-40% cuts other departments are facing, given that DFID’s lost 1 in 6 staff since 2005 as it is; and of course I disagree with some of the items included on the proposed cancellation list (Gareth Thomas is right, for example, that cancelling funding to CERF would be a seriously bad idea, and would undermine the UK’s track record of leadership in pushing for a more coherent and effective UN humanitarian assistance system).

But overall, the howls look a bit overdone to me. For one thing, reviewing how DFID spends its budget is not the same as undoing the ringfencing over the size of that budget (as Caroline Crampton must realise). There’s no sign of the coalition backing away from its commitment on 0.7, and I honestly can’t see them doing it after all the political capital they’ve committed on the issue (for sure, there are questions about what else may be counted as aid, but that’s not what this  submission is about).

More fundamentally, it’s legitimate to question some of these funding commitments. How exactly are we honouring the principle that developing countries get to decide how to spend the aid the UK gives them, if ministers keep announcing one sectoral fund after another? And what about the fact that a good few of the items on the proposed list of cancellations were the result not of careful policymaking, but of Gordon Brown phoning up DFID and demanding an announceable (usually less than 24 hours before a speech)?

Me, I think the jury’s still out on Andrew Mitchell. The themes he’s developed so far – transparency, outputs and outcomes, accountability – are all OK as far as they go, if a bit boring. I don’t see the outlines of his ‘grand strategy’ on development yet, but hopefully we’ll hear more about that in the autumn. In the meantime, reviewing where DFID’s money goes and which of the ancien regime‘s commitments he’ll retain seems not unreasonable to me.

Conservatives lead DFID for first time (updated)

Andrew Mitchell becomes the first Conservative Secretary of State at the UK’s Department for International Development. DFID was formed in 1997, as one of the first acts of the Blair government.

So far, Mitchell sounds quite a bit like DFID’s first head,  Clare Short, promising to focus on poverty eradication:

We must make 2010 the year when we get the Millennium Development Goals back on-track and make real progress towards what we all want to see: a world free from poverty. I look forward to getting to work to help make that happen.

Update: Owen Barder comments:

The Conservatives have made no secret of their desire to ensure that Britain’s world-class development work is more closely integrated with the UK’s other international work led by the Foreign Office and Ministry of Defence. The aim is to have a more joined up foreign policy, which may result in DFID being more engaged in post-conflict stabilisation and reconstruction in future.

I’m personally in favour of a more joined up foreign policy, but this integration of development policy with other UK objectives must not be a one-way street: it must also be that other government policies are designed to support the UK’s objectives for development and poverty reduction. The commitment in Andrew Mitchell’s statement to “harness the full range of British government policies” is therefore especially welcome.

As someone who cares passionately about the need for greater transparency of aid, I also welcome Andrew Mitchell’s emphasis on this. This bodes well for continued and strengthened UK support for the International Aid Transparency Initiative (IATI). A group of 18 donors so far, who together give half of global aid, are working through IATI towards a common international standard for publication of detailed and timely information about aid: this offers the possibility of a step change in the accessibility of global aid information, which will help to make more accountable and effective.

Reaction and analysis from the Guardian.

Nigeria: do donors know what they’re spending? (update x2)

You see plenty of reports from development agencies castigating development countries for one reason or another, but the boot is much less often on the other foot.

Interesting then to see this 2008 review (huge pdf download) from Nigeria’s National Planning Commission, which sets out to analyse ‘the volume and quality of Official Development Assistance to Nigeria between 1999 and 2007.’

During this time, $6bn of aid has been spent in Nigeria, almost all of it spent by donors themselves, rather than being rooted through the government’s budget. The Planning Commission’s first job, therefore, was to try and work out who had spent what.

So it sent a template to donors asking for information on what they’d spent and where:

Of all the agencies, USAID was the only agency able to provide almost all the requested information with a little delay. EU was also able to meet most of our requirement, only after about three months delay…

CIDA’s [Canada] claimed disbursement did not tally with what they had actually spent…[It] refused to supply more information when asked [to]…

DFID is another donor that could not account for all its activities. When asked to provide information on the sectors and states DFID is operating in, it simply wrote saying ‘we do not require our programme managers to collect expenditure on a state-by-state basis.’…

JICA [Japan]…did not cooperate at all despite our many efforts to get JICA to collaborate with us.

The UN system was also only ‘partially cooperative’. UNICEF did not provide a breakdown of its health spending, for example (nor did DFID or CIDA). “We do not know exactly what [this] money was spent on,” the report notes. The Chinese government was also asked for data – but the review does not tell us what its response was (read into that what you will).

Donors should be much more transparent accountable for their activities, the Planning Commission concludes, while the Nigerian government “needs to offer clearer and more effective leadership to her development partners both in terms of how and where to operate.”

It lauds the example of Kano and Ondo states. They are robust in their response to ‘intruder donors’ who operate outside a framework established by the state government. That allows leaders to set, and be accountable for, their own development priorities.

Update: Of course, Nigeria’s own statistics are often woefully inadequate, whether at national or at state level. Recently, for example, Kano state has just been counting its schools:

An additional 88 senior secondary schools and 174 private  schools had been ‘discovered’, while in some areas schools had disappeared: the Kano municipality had 10 less junior secondary schools than first thought.

Update II: Worth pointing out, too, that the World Bank, DFID, USAID and African Development Bank recently agreed a joint strategy for Nigeria – bringing 80% of Nigeria’s development assistance under a single strategic umbrella. Somewhat oddly though, it cannot easily be found on any of the donors’ websites. There’s a copy here though.

I wonder if the donors will now move towards a single online platform to show what they’re spending, where, and what results it’s achieving… and, also, how effectively their joint approach is proving (the Bank and DFID have had a joint strategy for some years now) at reducing overhead for Nigerian government and non-government partners.

DFID: the department for conflict prevention?

Time was when any suggestion that conflict prevention might be central to development would be met by blank (if not outright hostile) stares at DFID’s headquarters – but DFID’s latest White Paper, published yesterday, certainly puts that attitude to rest for good.

Fully half of new UK bilateral aid will focus on conflict-affected and fragile states; there will be an intensive focus on job creation in five at-risk countries (Yemen, Nepal, Nigeria, Ethiopia and Afghanistan); security is for the first time defined as an essential service, like health or education; there’s lots of additional focus on SSAJ (safety, security and access to justice); and there’s plenty more besides.

Now, sharp-eyed conflict watchers among you will already be wondering: does all this mean that the cuts to UK conflict prevention spending announced by David Miliband in March this year are effectively reversed?

(The problem, readers will recall, was that while peacekeeping missions were mushrooming – MONUC, UNMIS and the AU mission in Somalia in particular – the pound was collapsing against the dollar and the euro, the currencies in which peacekeeping bills are denominated. This was driving a coach and horses through the planned cross-governmental conflict prevention budget of £556 billion – comprised of £109m for the Conflict Prevention Pool, £73m for the Stabilisation Aid Fund and £374m for peacekeeping missions. The peacekeeping bit would now have to rise £456 million. So even after DFID and MOD had lobbed in an extra £71 million, it was clear that tough cuts would have to be made – a point made with anguish in a letter to the FT in March from foreign policy luminaries including Lords Ashdown, Hannay, Howe, Jay, Kerr, Robertson and Wallace. Now read on..)

Well, now that DFID’s Secretary of State Douglas Alexander is promising that the UK will spend £1 billion a year in post-conflict countries, it’s clear that much of the money that was cut in March will effectively be available again – though you’ll have a fight on your hands to get DFID to admit this to be the case, since it’s shy of creating any impression that it’s there to bail out other departments when the full, epic sweep of spending cuts becomes clear after the election.

But we’re nonetheless in a new situation, rather than back to the status quo ante, in at least three important ways. (more…)

Aid during the downturn

A few days ago the House of Commons International Development Committee released its latest report (entitled Aid Under Pressure: Support for Development Assistance in an Economic Downturn) and there are a few points which might be of interest to Global Dashboard readers.

As its title would suggest, the report focuses on the impact of the financial crisis on international development efforts. It opens on a grim note with the news that DFID estimates that by the end of next year 90 million more people will be living in extreme poverty as a result of the crisis. Moreover, the WHO believes that up to 400,000 additional children could die as a result. The International Development Committee adds that progress towards the MDGs may have been set back by up to three years.

A major point made in testimony given to the Committee was that initial expectations that the developing world would be insulated from the impact of the crisis have proven false. Whilst the contagion effect of the crisis has only directly harmed western economies, the indirect knock-on effects have applied pressure to transnational business flows worldwide. The World Bank reports that of the 107 counties it categorises as ‘developing’, 40% are ‘highly exposed’ to the downturn.

Unsurprisingly-though quite rightly-the International Development Committee’s response to all this is to insist on the importance of maintaining ongoing aid commitments, as agreed at the G20 summit in July.

Aside from that, the issue of tax havens is highlighted and it would seem that the British government is increasingly committed to making progress in this respect. Gordon Brown in particular has been forthright on this issue, but his government seems somewhat hamstrung at present and we shall have to await developments.

In the wake of the London Summit, institutional reform is back on the agenda. The need to overhaul the IMF and World Bank, particularly in regard to apportionment of votes within those organisations needs to be a priority for the post-crisis politics of global governance. Indeed, reform has been presented as a condition for the boost to IMF funding that the G20 agreed upon earlier this year. Broader questions of operational versatility are also important. In these respects, the Committee’s report is strong on good ideas and analysis, but light on suggestions for how Britain can help bring about the desired changes. For that perhaps we need to wait for the DFID White Paper due later in the summer.

On a seemingly superficial note, the Committee proposes that DFID’s name be changed and puts forward ‘British Aid’ and ‘DFID UK’ as possibilities. The intention, it seems is to increase the ‘visibility’ of UK international development spending. Of course, DFID does a lot more than aid, so I think we can immediately dismiss the first suggestion. As a reserved Brit, the idea of being so brash as to use ‘UK’ on international development work is too reminiscent of the US tendency to splash the Stars and Stripes on aid parcels. It seems… immodest, somehow. But it might be a good idea all the same – US aid is part of its soft power and in the same way, the work of the Department for International Development has the potential to be a significant contributor to British attempts to win ‘hearts and minds’, particularly in countries like Afghanistan. After all, the Committee’s report points out that DFID is the largest donor to the World Bank’s International Development Association. Maybe blowing our national trumpet more boldly isn’t such a bad idea. Though one wonders if there isn’t a snappier name out there somewhere – suggestions welcome, of course.