APPENDIX 1
1. We welcome the production in the 1999 Departmental
Report of a detailed and thorough account of the expenditure,
policy and administration of the Department (paragraph 1).
2. We welcome clarification by DFID of its
purpose in producing the Departmental Report. We believe that
this has contributed to the production of a more focussed and
therefore more informative and useful document (paragraph 4).
The Department for International Development (DFID)
notes the Committee's comments.
3. We welcome the significant increase planned
for bilateral expenditure, reversing a long period of decline.
Given the current policy emphasis of DFID, this should make a
real contribution to the elimination of poverty (paragraph 6).
The Government has taken a decisive step away from
the declining development programme of the past. Coupled with
our focus on achieving the International Development Targets,
this should make a real contribution to the elimination of poverty.
But UK efforts alone will not suffice. We are also working to
encourage the international community to reverse the global decline
in overseas development assistance and to make aid more effective.
4. We welcome the provision in the 1999 Departmental
Report of a breakdown of bilateral country programme expenditure
by country. We have found this information to be an interesting
and useful account of the future plans of the Department (paragraph
7).
The Department notes the Committee's comments. The
provision of both historic expenditure and forward plans will
show that plans are not always implemented as originally envisaged.
This reflects the flexible nature of the Department's work, responding
to the varying performance of our bilateral partners and changes
in needs and priorities.
5. The extent to which planning figures are
useful depends on the availability of corresponding figures for
previous years against which plans may be compared and expenditure
patterns observed. We reiterate our recommendation that future
departmental reports include outturn figures of bilateral country
programme expenditure by country for the past three years which
can be compared straightforwardly with planning, figures for future
years. As a minimum DFID should make clearer in future Reports
which figures are comparable between past and future planned expenditure
and should, wherever possible, ensure consistency between the
various tables included in its Departmental Report (paragraph
10).
Future Departmental Reports will include outturn
figures for bilateral programmes for the previous three financial
years and explanations will be provided where a straight-forward
comparison is not possible.
6. We recommend that in future departmental
reports the table showing planned bilateral country programme
expenditure by country include, under the relevant regional headings,
lists of those countries for which DFID does not have individual
expenditure plans (paragraph 11).
The table showing bilateral country programme plans
sets out how funds are allocated for planning purposes. Providing
a list of other countries that do not have individual expenditure
plans would serve no purpose. Statistics on International Development
includes historic expenditure on countries which do not have
individual expenditure plans.
7. We welcome progress made towards the
target for DFID to spend 76 per cent of its bilateral country
programme resources in low-income countries. We trust that a significant
proportion of these resources will continue to be spent in least-developed
countries (paragraph 13).
The Department notes the Committee's comments. We
anticipate that least-developed countries will continue to receive
a significant proportion of these resources.
8. We support the plans of the Department
for International Development to increase its expenditure on bilateral
country programmes in Africa. We will, in future, look at how,
and according to what criteria, DFID makes such decisions on the
allocation of funds amongst regions and countries (paragraph 15).
Sub-Saharan Africa presents by far the greatest challenge
to the achievement of the International Development Targets by
2015. We welcome the Committee's support for our increased focus
on the region and note the Committee's comments on the allocation
of funds.
9. We recommend that in its response to this
Report, DFID provide the Committee with further details of its
development strategy and expenditure plans for Eritrea (paragraph
16).
The Government of Eritrea is pursuing a policy of
reducing its dependency on bilateral assistance. A reduction in
UK bilateral development activities has accordingly taken place
at the request of the Eritrean Government over the last eighteen
months. We continue to contribute to development and humanitarian
needs in Eritrea through UK contributions to the European Union
and other multilateral channels.
10. We recommend that DFID produce a strategy,
along similar lines to its Institutional and Country Strategy
Papers, for cooperation with regional organisations, particularly
in Africa (paragraph 18).
Where we have a substantial investment in a regional
organisation we will prepare an institutional strategy; for example,
we expect to publish a paper on The African Development Bank later
this year. In other cases, the capacity of regional organisations
to influence and contribute to the achievement of the International
Development Targets in individual countries is brought out in
specific country strategy papers. We believe this is the most
effective way of developing and explaining their value as development
partners.
11. We agree that the aggregation of 65
per cent of bilateral aid under one broad category of expenditure
- Technical Assistance - is unhelpful, especially when, as the
Secretary of State has acknowledged, that category is somewhat
vague and misleading in its description. We welcome DFID's commitment
to provide a more detailed breakdown of technical cooperation
in future Departmental Reports. We suggest that this should go
beyond the division agreed with the DAC between technical assistance
proper and grants to include a more comprehensive breakdown of
technical cooperation as set out in the chart provided to the
Committee by Sir John Vereker (paragraph 23).
12. We further recommend that all categories
of aid, including technical cooperation, financial aid and programme
aid, be clearly explained in future departmental reports in a
glossary of key terms (paragraph 24).
We intend to provide the data on technical cooperation
in the next Departmental Report but it will not be in exactly
the same format as that provided to the Committee by Sir John
Vereker as the definition of Technical Assistance has changed.
Statistics on International Development already contains
a glossary of terms which includes the categories of aid mentioned.
We will provide an extract from this in the next Departmental
Report.
13. We recommend that in future reports, further
information be provided on the use of consultants, including:
the number of contracts let and their total value; the number
and value of contracts let within the UK and let locally (including
sub-contracts); a geographical breakdown of contracts detailing
the number of contracts and the amount of expenditure by region;
and details of any large consultancy contracts granted (in excess
of £1 million). We further recommend that DFID provide information
on training given by DFID - both in the UK and in-country - to
consultants, and an assessment of their effectiveness and value
for money (paragraph 25).
The Department already collects most of this data
and work is in hand to capture additional information. In particular,
as we are seeking to enlarge the pool of expertise within developing
countries we are putting in place ways to measure progress in
this objective. Departmental Reports will include the available
data on contracts let in the UK and locally. DFID monitors consultants'
performance on a project-by-project basis throughout project implementation
. Evaluation studies focus on the achievement of project outputs
and the overall effectiveness and value-for-money of the DFID's
involvement as a whole rather than individual activities such
as consultants in isolation.
14. We remain concerned that the vast majority
of consultancy contracts are let within the UK rather than within
the country concerned. We recommend that the Department produce
a strategy, including appropriate targets, for a greater proportion
of contracts to be let locally in partner countries - if not within
the country itself then at least within the surrounding region
(paragraph 26).
The Department is already implementing a strategy
to increase the number of contracts let locally. We are enhancing
the awareness of local expertise within overseas offices, through
initiatives such as the establishment of panels of local experts
(by means of open competition). Selection of panel members, and
subsequent evaluation of their performance, will provide evidence
of the capacity and quality of local expertise on a country by
country basis, enabling decisions to be taken on the appropriateness
of country targets.
15. We recommend that the Government should
press its European and other partners for an early review of procedures
for the recruitment of consultants with a view to untying this
process (paragraph 28).
The Government remains strongly committed to the
objective of multilateral untying of aid, currently the subject
of detailed discussion in the Development Assistance Committee
of the OECD. Preparations for taking up with the Commission the
question of untying within the European Union, including the recruitment
of consultants, are at an advanced stage.
16. Whilst accepting Sir John Vereker's
assertion that developmental objectives are built into the terms
of reference of consultancy contracts, the Committee believes
that the benefits of consultancy should go beyond any predetermined
short-term objectives. The use of consultants should include strategies
for the long term transfer of knowledge and expertise to developing
countries (paragraph 30).
We expect DFID appointed consultants to share DFID's
objectives but recognise that this is not essential where particular
specialist skills are required for a limited period. We set terms
of reference which ensure that the contract fits into the longer
term goal of a project and that any required transfer of knowledge
is achieved.
17. We welcome the inclusion in the Kenya
Country Strategy Paper of conditions for improvements in standards
of governance, and the direct relationship of this to the nature
and size of the future programme of the Department for International
Development (paragraph 32).
The Department notes the Committee's comments.
18. Clearly there is a discrepancy between the
published assessment of DFID and the opinion of Amnesty International
on the extent to which human rights are being successfully addressed
as a priority in China (paragraph 34).
19. Human rights abuses undoubtedly take place
in various forms all over the world, and we are by no means suggesting
that aid to countries with poor human rights records be cut in
every circumstance or sanctions applied. However, DFID must avoid
the charge of diluting its human rights commitment when confronting
powerful countries. We expect each country strategy paper of DFID
to be equally objective and candid in its human rights assessment,
just as we expect all Government Departments to demonstrate an
equal commitment to human rights. Other examples of inconsistency
amongst Government Departments are also cause for concern. We
recommend that DFID provide the Committee with a full account
of how its activities in China and Pakistan will promote good
governance and human rights (paragraph 37).
Our commitment to human rights is at the heart of
our approach to development for all the countries with which we
are working, regardless of size or strength. There is no dilution
of our human rights commitment in any country. Each country strategy
paper is equally objective and candid in its human rights assessment.
We are working to improve our capacity to work effectively - particularly
with civil society - in countries where human rights are abused.
Those who advocate complete withdrawal from these countries are
open to the charge of favouring an image of purity rather than
genuinely providing support for those whose human rights are abused
China
DFID's new strategy for China is firmly based on
our shared goal of eliminating poverty. This means that, as commitments
under the Aid and Trade Provision come to an end, our work in
China is undergoing a fundamental change with activity shifting
from the relatively wealthy eastern seaboard to a new rights-based
poverty-focused programme in the poorer and populous provinces
of the middle west.
Activities under our new strategy will promote a
range of human rights. Our support for state owned enterprise
reform and enterprise development will promote economic rights
in China. It will support economic growth while protecting the
vulnerable, including women, through transition and promoting
new livelihood opportunities, especially for the unemployed. We
are promoting rights to education through helping children from
poor and minority populations to gain access to primary education.
We are supporting rights to health by helping to improve the accessibility,
effectiveness and efficiency of health services for the rural
poor. On civil and political rights, we are just starting to co-operate
with the Supreme People's Procuratorate on training for procurators,
exposure to non-custodial and alternative forms of sentencing
and anti-corruption measures. We are also looking at ways of building
on our current support for legal reform through training for young
lawyers and judges.
In the DFID Country Strategy Paper for China we discuss
openly the Government of China's approach to human rights. We
recognise the achievements that the Government of China have made
in the field of economic and social welfare rights. We also welcome
the steps that China has taken to sign up to international human
rights conventions. At the same time, we express concern about
the incidence of corruption and abuse of office. As the Committee
has noted, we state that 'we will adopt a rights-based approach
to development, and support efforts to improve the observance
of basic civil and political rights'.
The recent Human Rights Annual Report (July
1999) reflects the recent steps which have been taken by China,
including signing the International Covenant on Civil and Political
Rights. In that report we are frank about our continuing concerns
about civil and political rights in China but note that, with
other EU member states, we believe that continued dialogue and
co-operation with China in this area is more likely to bring about
practical improvement than repeated unsuccessful attempts to secure
critical UN resolutions.
Pakistan
We are equally candid about Pakistan. Our draft new
Country Strategy Paper, which has been seen by the Pakistan Government
and will be published shortly, will be forthright in its criticism
of governance and human rights' practices. Whilst acknowledging
that some important progress is being made, it will make clear
that Pakistan has a poor record. It will note that the police
are seen as ineffective and corrupt; that religious tolerance
is a major problem; that women's rights, in particular, are seriously
threatened; that the poor, in general, are denied basic human
rights; and that more representative and accountable government
in Pakistan is needed.
Our development cooperation programme is structured
to address these problems, and to encourage greater commitment
on the part of the Pakistan Government to do so. We support the
Social Action Programme (SAP), which is the main vehicle for social
sector reform and the cornerstone of our programme in Pakistan.
The SAP is designed to provide poor people with better access
to (and quality of) elementary education, basic health care and
safe water.
We also support projects in those sectors, which
are complementary to the SAP itself. We have developed innovatory
and participatory approaches to human rights and gender equality
issues; and are supporting important initiatives on child labour.
Our programme also reflects the importance we attach to a strong
civil society, with a range of projects that target the poor through
activities by non-governmental organisations.
For the future, we expect to do more to encourage
implementation of Pakistan's international commitments to civil
and political rights - particularly the Convention on the Rights
of the Child, the Convention on the Elimination of all forms of
Discrimination Against Women (CEDAW), the Beijing Plan of Action
and ILO conventions on child labour and core labour standards.
We plan also to seek out interventions to improve access, especially
by the poor and marginalised groups, to the criminal justice system.
We shall seek to improve governance by supporting measures to
improve democratic processes, strengthen government accountability
and its oversights, combat corruption and improve public sector
management.
In paragraph 33 of its Report, the Committee observes
that DFID plans to raise spending in Pakistan by almost 50%. In
1996/97 and 1997/98 expenditure totalled £27.5 million and
£27.8 million respectively, but in 1998/99 (estimated) outturn
dipped to some £20 million. Our plans represent a return
to similar levels reached in 1996/97 and 1997/98.
20. We welcome the provision of more detailed
information in the 1999 Departmental Report on the policy and
expenditure of the Department for International Development on
the various multilateral development agencies to which it contributes.
Further and more detailed assessments of the effectiveness of
each multilateral agency will be expected in future departmental
reports (paragraph 39).
Departmental Reports will continue to provide information
on the various multilateral development agencies to which DFID
contributes.
21. We recommend that in future the Department
provide this Committee (and through it, Parliament) with detailed
information on the policies of the Regional Development Banks
and the effectiveness of their operation, together with a clear
justification for the additionally requested funds. This should
be made available on each occasion as soon as is practicable after
a resolution requesting additional funds has been adopted by the
board of the bank concerned (paragraph 46).
DFID's Institutional Strategy Papers on the Regional
Development Banks, to be published in the coming months, will
assess the effectiveness of their operations and identify areas
where DFID will seek to influence their performance. Future Departmental
Reports will report on progress. In seeking Parliamentary approval
for additional funds for the Regional Development Banks, we already
provide information to the Select Committee on Statutory Instruments
about the Banks' policies relating to future expenditure.
22. We recommend that a table showing the
disbursement of the Contingency Reserve between emergency expenditure,
bilateral country programmes and items included in 'other aid'
be included in future Departmental Reports (paragraph 50).
A table on the lines recommended would be misleading.
The Contingency Reserve is used, in-year, to finance our response
to unpredictable emergencies or to meet other unforeseen requirements.
But more significant variations from planning figures can take
place within the financial year to meet new priorities or in response
to changes in external circumstances. The subsequent Departmental
Reports will highlight and comment on all major departures from
plans.
23. We welcome the Government's decision to allocate
additional resources from central contingency reserves to DFID
and its commitment to provide the Department with additional funds
in the event of other unforeseen humanitarian emergencies this
year. (Paragraph 54).
The Department notes the Committee's comments.
24. We recommend that the Government provide
the Committee with an assurance that resources for humanitarian
aid in Kosovo and the surrounding region beyond those available
from existing bilateral country programmes will, in future years,
continue to be provided as additional to the budget of DFID (paragraph
55).
25. We recommend that the budget of DFID be increased
beyond the levels agreed in the Comprehensive Spending Review
to accommodate the costs of the contribution of DFID to the long-term
reconstruction of the Balkan region (paragraph 56).
The Government notes the Committee's recommendations,
and will be considering how best to manage future expenditure
in Kosovo and the surrounding regions.
26. We further recommend that, in future departmental
reports, the Department provide full details of expenditure on
Kosovo and the surrounding states setting out how and where the
money has been spent and from which budget lines funds have been
drawn (paragraph 57).
The 2000 Departmental Report will explain how the
funding for Kosovo and the surrounding region has been derived.
Data on the substantial UK attributed share of EU expenditure
will, however, not be available until the 2001 Report owing to
time lags in EU reporting.
27. We welcome moves made by the Department to
address cross-cutting issues in the course of the report (paragraph
59).
The coverage of cross-cutting issues in the report
is indicative of the extent of work currently being undertaken
in DFID in collaboration with other Government Departments. We
will continue to give cross-cutting issues a high priority.
28. We have examined the Departmental Reports
of the FCO, DETR, DFEE, DTI and MAFF and can find no evidence
that development issues have been brought "back into the
mainstream of Government decision-making" (paragraph 61).
Though we would not agree that there is no evidence
of development issues being brought back into the mainstream of
Government decision-making (DfEE, FCO and HMT in particular gave
considerable coverage to development issues in their reports),
we accept that there should be greater coverage of development
issues in all relevant Departments' reports next year. We plan
to draw this to the attention of Ministers in other Government
Departments.
29. We criticise those Government Departments
that have failed to take account of international development
as a cross-cutting theme. We recommend that the remit of the Green
Minister for each relevant Department be expanded to include international
development. We reiterate our recommendation that future departmental
reports of relevant Government Departments include a section on
how their policy and activities have promoted international development
and the elimination of poverty (paragraph 64).
30. We recommend the Cabinet Office Performance
and Innovation Unit (PIU), set up to look at cross-departmental
policy issues, should have the task of examining how the international
development targets can be pursued across Government (paragraph
65).
The Department recognises that it is important to
implement development policy consistently across all relevant
Departments. Much work is being undertaken jointly by DFID and
other Departments in key areas such as trade, environment, investment,
finance, defence and security, to ensure that the Government's
policies are consistent with the International Development Targets.
We believe that the Committee's suggestions for taking policy
consistency further forward in departmental reports of relevant
Government Departments represent a useful way of broadening and
deepening development issues throughout Whitehall. However, we
do not consider it appropriate to expand the remit of Green Ministers
to include international development as DFID has already set up
a suitable forum for relevant Ministers to discuss policy consistency
- the Inter-Departmental Working Group (IDWG).
We welcome the target of 35 per cent of
Senior Civil Service posts to be filled by women by 2005 (paragraph
66).
The Department notes the Committee's comments.
32. We recommend that in future Departmental Reports
a table be included showing the numbers of people from ethnic
minorities in each pay band of the Senior Civil Service in the
Department (paragraph 67).
The Department accepts this recommendation in principle
and will aim to meet it where it can do so while respecting the
privacy of individual members of staff. (We would not wish to
publish data which made individuals identifiable by ethnic origin,
for example where the numbers in any particular pay band are small).
33. The purpose of ethnic minority monitoring
is to ensure that there is fair representation within the United
Kingdom public service and that racism is removed from recruitment
and employment policy. Figures which include non-UK citizens employed
abroad are totally irrelevant to this process. Whilst we welcome
the increasing use of locally-engaged staff by DFID, it is wholly
inappropriate, and somewhat complacent, to suggest that this has
any bearing on the performance of the Department in ethnic minority
recruitment in the United Kingdom (paragraph 69).
The Department broadly accepts the Select Committee's
view of the purpose of ethnic monitoring - and staff appointed
overseas are not in fact included in the ethnic monitoring data
published in DFID's Departmental Report.
However, it does not accept that it is irrelevant
or complacent to refer to the importance which DFID has attached
to integrating staff appointed overseas more closely into its
structures and to improving their conditions of employment. There
is important work to be done to improve the proportion of ethnic
minority staff in the Department, particularly at senior levels
and we will continue our efforts in this area. But it is also
a measure of DFID's determination to ensure that it is a genuinely
multi-ethnic organisation, and one where any form of discrimination
on grounds of ethnic origin is not tolerated, that it does not
view the issue narrowly in terms of representation in the UK public
service. It is committed to the greatest practicable degree of
equality of treatment, irrespective of ethnic origin, in all of
its offices wherever they may be located. The indirect impact
on those seeking to join the Department, and on those who work
with it, is important.
The Department therefore values, and does not downplay,
the significance of the contribution made by those of its staff
who are appointed overseas.
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