Annex
OUTPUT AND PERFORMANCE ANALYSIS
Note
PERFORMANCE AGAINST
DEPARTMENTAL OBJECTIVES
| DFID's aim is the elimination of poverty in poorer countries
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| We shall pursue this through the promotion of sustainable development and in particular by:
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| — building development partnerships with poorer and transition countries;
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| — working more closely with the private and voluntary sectors, and the research community;
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| — working with and influencing multilateral development organisations;
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| — promoting consistent policies affecting poorer countries;
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| — using our knowledge and resources effectively and efficiently;
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| Our specific objectives are: |
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| 1. Policies and actions which promote sustainable livelihoods.
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| Associated International Development Target:
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| — A reduction by one half in the proportion of people living in extreme poverty by 2015.
| 1 |
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| PSA measures: | |
| — Percentage of bilateral country programme resources allocated to low income countries increased from 67 per cent to 75 per cent by 2002.
| 2 |
| — Percentage of relevant bilateral projects likely to fully or largely meet their objectives up from 64 per cent to 75 per cent by 2002.
| 3 |
| — Rate of real GDP per capita growth in top 30 UK development partners.
| 4, 5 |
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| Other measures: | |
| — Effectiveness of the international system in promoting sustainable development.
| 6 |
| — Share in GDP of poorest 20 per cent of population in top 30 UK development partners.
| 7 |
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| 2. Better education, health and opportunities for poor people.
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| Associated international Development Targets:
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| — Universal primary education in all countries by 2015.
| 8 |
| — Demonstrated progress towards gender equality and empowerment of women by eliminating gender disparity in primary and secondary education by 2005.
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| — A two-thirds reduction in the under-five mortality rate by 2015.
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| — A reduction by three-fourths in maternal mortality by 2015.
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| — Access to reproductive health services for all by 2015.
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| PSA measures: | |
| — Percentage of relevant bilateral projects likely to fully or largely meet their objectives up from 64 per cent to 75 per cent by 2002.
| 9 |
| — (a) Under-five and (b) maternal mortality in top 30 UK development partners down from 74 to 70 per 1,000 live births and from 324 to 240 per 100,000 live births respectively by 2002.
| 10 |
| — Percentage of children in primary education up from 61 per cent to 91 per cent in top 30 UK development partners by 2002.
| 10 |
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| Other measures: | |
| — Gender disparity in secondary education in top 30 UK development partners.
| 10 |
| — Percentage of population with access to safe water in top 30 UK development partners.
| 10 |
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| 3. Protection and better management of the natural and physical environment.
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| Associated International Development Targets:
| 11 |
| — Implementation of national strategies for sustainable development in all countries by 2005.
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| — Reversal in current trends in environmental resource loss at global and national levels by 2015.
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| PSA measures: | |
| — Percentage of bilateral projects likely to fully or largely meet their objectives up from 64 per cent to 75 per cent by 2002.
| 12 |
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| Other measures: | |
| — Agreement of national strategies for sustainable development in top 30 UK development partners.
| 13 |
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| 4. Accurate and timely payment of colonial and Indian pensions.
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| PSA measures: | |
| — Unit cost of administration per pensioner for overseas superannuation.
| 14 |
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| Other measures: | |
| — Performance against other targets contained in SLA.
| 15 |
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| DEPARTMENTAL OPERATIONS
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| PSA measures: | |
| — Development of a departmental efficiency indicator.
| 16 |
| — Reducation in central and support costs as percentage of aid policy and administration.
| 17 |
| — Introduction and testing of a new system for scoring ongoing projects.
| 18 |
| — Reduction in sickness absence rates.
| 19 |
| — Timely payment of undisputed bills.
| 20 |
| — Replies to Ministerial correspondence within 21 days of receipt.
| 21 |
| — Regular and systematic review of services and their delivery (Better Quality Services Initiative).
| 22 |
| — Availability of DFID Intranet.
| 23 |
| — Development of Performance Reporting Information for Management (PRISM).
| 24 |
| — Increased awareness of fraud.
| 25 |
| — Introduction of procurement cards for UK administrative expenditure.
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| — Strengthening of local procurement capacity in overseas offices.
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| Other measures: | |
| — Progress towards meeting Investors in People initiative.
| 26 |
| — Public knowledge of and attitudes to development issues.
| 27 |
NOTES TO ACCOMPANY THE OUTPUT AND PERFORMANCE ANALYSIS
PERFORMANCE AGAINST
DEPARTMENTAL OBJECTIVES
1. The first three objectives, from the White Paper on International
Development, are explicitly associated in the table with the relevant
International Development Targets (IDTs), to underline the link
between DFID's work and real world outcomes. The IDTs are derived
from a range of UN Conventions and Resolutions, and provide a
focus for the efforts of the international community in promoting
sustainable development. Work is well advanced in the OECD Development
Assistance Committee, in association with the World Bank and UN,
and partner countries, to identify internationally accepted indicators
of progress towards the achievement of the targets.
2. We are committed to a significant reorientation of
our bilateral programme during the life of this Parliament. In
1996-97, 67 per cent of bilateral aid expenditure went to low
income countries. The Aid Framework published in the Departmental
Report in March 1999 shows a figure for ex ante allocations
for 2001-02 of 76 per cent, with interim figures of 74 per cent
for 1999-2000, and 75 per cent for 2000-01. Ex post figures
will be published on an annual basis.
3. DFID will initially draw on data extracted from project
completion reports, which are required for all projects above
£500,000. A recent synthesis of these reports found that
64 per cent of these projects were considered likely to fully
or largely achieve their objectives. A target of 75 per cent has
been agreed for the end-of-Parliament, with an interim target
for 1999-2000 of 70 per cent. Data on completed project performance
by objective is not yet available, given that projects currently
approaching completion pre-date the adoption of DFID's new objectives.
DFID is also embarking on a system for scoring projects under
implementation (see note 18 for further details). The performance
of individual projects is influenced by a range of factors, many
of which are outside of DFID's direct control, including the country
and institutional contexts within which they are implemented,
the relative difficulty of their objectives, and the degree of
risk they face. We are very conscious of the need to ensure that
setting targets for project performance does not create perverse
incentives (eg by encouraging the financing only of "easy"
projects). Nevertheless, we are committed to monitoring and reporting
on the performance of our portfolio both internally, and externally
through the OPA.
4. Focusing on a group of 30 countries is intended to
augment the global picture given by the IDTs, and provide a clearer
illustration of DFID's role. The group of 30 will be composed
of the largest recipients of bilateral aid, and the imputed UK
share of multilateral aid. This group is likely to account for
over three-quarters of allocable spending. We shall disaggregate
the figures to distinguish between low income and middle income
countries.
5. Our target in this area will be derived from the estimated
annual average rate of growth of GDP per capita which developing
countries as a whole must achieve from a base year of 1996 to
meet the overarching target for the reduction by one half in the
proportion of people living in extreme poverty by 2015, on the
assumption that income distribution in these countries
remains unchanged. Growth figures are published by the World Bank
on a calendar year basis, and we will assess whether the cumulative
outcomes for our 30 largest recipients are consistent with this
level of growth.
6. It is not possible to define a single quantified indicator
of performance for this measure, which covers a complex range
of relationships with international institutions and organisations.
We will monitor progress against the targets for 2002 set in the
Comprehensive Spending Review in a number of key areas: improvements
in preferential market access on a multilateral basis and offered
by the EU; international simplification in trade procedures; and
improvements in the performance of multilateral development institutions
(MDIs). With regard to the latter, we are in the process of agreeing
strategies for maintaining and enhancing our relationships with
all of the MDIs. DFID's Institutional Strategy Papers (ISPs) will
include clear objectives and monitoring arrangements. They will
consider measures of MDI effectiveness, incorporating, for example,
the percentage of new concessional commitments allocated to low
income countries. They will also define approaches to assessing
our ability to influence these institutions, including tracking
progress on the adoption by the MDIs of the international development
targets. In addition we will assess progress on achieving greater
consistency between the aid, trade, agriculture and economic reform
policies of the European Union, possibly using the DAC peer review
system, or by commissioning an independent assessment. Progress
on initiatives to relieve the debt burden of developing countries
will also be monitored.
7. GDP per capita figures do not indicate the distribution
of the benefits of growth. Calculating the share of GDP of the
poorest 20 per cent is a standard approach to addressing this
problem. This indicator depends on household survey data, which,
because it requires a major resource-intensive effort to collect,
is updated at quite long intervals. The current baseline in 1993;
updated information is unlikely to be available until 2000. If
the share of the poorest 20 per cent is increasing, the rate of
growth needed to halve poverty (see 5 above) is likely to decrease,
and vice versa.
8. See note 1.
9. See note 3.
10. See note 6 for an explanation of the definition of
the group of 30 countries. The targets we are setting for these
countries on under-five and maternal mortality, universal primary
education, gender disparity and access to safe water, are subsets
of the International Development Targets. Achieving these targets
depends not just on DFID's efforts, but on those of the partner
governments whose development programmes we support, and on other
donors. Generating data on progress against these targets similarly
requires a broad-based effort, and we are working closely with
partner governments and the international community to improve
the quality and availability of key statistics.
11. See note 1.
12. See note 3.
13. Achieving the agreement of national strategies for
sustainable development depends on a broad range of factors, including
governments and civil society in partner countries, multilateral
agencies, and bilateral governments. Negotiating these national
strategies is a complex and delicate task. We have agreed a challenging
target for the end-of-Parliament, when we expect all of the top
30 UK development partners to have strategies agreed.
14. We aim to maintain increases in unit costs at or
below inflation as defined by Treasury deflators. Unit costs in
1997-98 were £47.07 per pensioner, £22.22 per pension,
and £4.45 per payment.
15. Indicators of quality of performance by Overseas
Pensions Department, derived from its service level agreement
are as follows:
— 97.50 per cent of all initial payment calculations
will be accurate;
— 95 per cent of all initial calculations of new
and revised awards will be accurate;
— 97.50 per cent of all new awards will be put into
payment within two weeks;
— 99 per cent of all payments will be made by the
due date;
— 97.50 per cent of all enquiries will receive a
reply within two weeks;
— 95 per cent of all complaints will receive an
initial response within two weeks and a substantive reply within
five weeks;
— core running costs will reduce each year by 35
per cent of the percentage reduction in pensioner numbers, plus
2 per cent efficiency savings.
DEPARTMENTAL OPERATIONS
16. Work is underway within DFID to devise an indicator
of departmental efficiency. We are currently examining whether
a workable indicator can be derived from a contribution of targets
contained in service level agreements. We will further test this
approach during 1999.
17. We aim to ensure that an increased proportion of
running costs is spent on front line activity. This implies an
increased share allocated to defining and delivering policy and
administering the aid programme, at the expense of general administration
and support services. Cost allocation modules developed under
Resource Accounting and Budgeting will provide a better understanding
of the links between administrative overheads and activities.
18. Ongoing projects will be scored during 1999 by the
departments responsible for their implementation. As PRISM (see
note 24) becomes available throughout DFID, scoring sheets will
be generated and stored electronically. Testing of approaches
to collating, summarising and analysing project scores will be
completed by end-1999.
19. A baseline for 1998 is currently being established
by the Occupational Health Service Association. Targets for a
reduction in sickness absence rates will be set, subject to an
audit of the actual level and pattern of absence in the Department,
and agreed with the Cabinet Office by June 1999.
20. We aim to pay at least 95 per cent of undisputed
bills within 30 days, or other agreed credit period.
21. Dates of receipt and reply are logged on a calendar
year basis, and reported to Parliament every March.
22. The Government's "Better Quality Services"
initiative requires that Departments regularly and systematically
review services and their delivery over a five-year period. A
rolling programme of reviews will be devised and underway by April
1999.
23. All relevant UK staff now have access to the DFID
Intranet. A workplan for expansion of access to our overseas office
is being agreed. It is envisaged that the Intranet will be made
available to some overseas staff during 1999-00 in conjunction
with providing them with on-line access to the new DFID accounting
system.
24. PRISM will improve DFID's ability to take a clear
view of the performance of our project portfolio. An evaluation
of the pilot phase of PRISM was undertaken in February/March 1999.
The conclusions of the evaluation are under consideration, and
a workplan for rolling out PRISM to all spending departments will
be defined on the basis of its recommendations.
25. We aim to raise the awareness of fraud by regularly
distributing notices including Treasury case notes.
26. DFID is regularly monitoring progress towards achievement
of Investors in People certification by 2000.
27. DFID is receiving advice forma broad-based Development
Awareness Working Group on ways to improve public knowledge of
development issues, and this work will proceed during the life
of this Parliament. We will gauge our success through regular
survey work.
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