Select Committee on International Development Eighth Report


6 Learning to be more effective

72. The MDGs will not be met unless there is more international aid, and it is used more effectively. The recipients of aid need to do better in terms of pursuing sound strategies for poverty reduction, and the donors of aid—including DFID—need to improve their performance too. The way to improve future performance is to learn from past performance, both successes and failures, in order to better understand how aid can be most effective. Learning, and the institutional innovations which such learning can foster, is best achieved when development actors are held accountable for their actions. Transparency, about what actions have been taken, and what results they have led to, is the foundation for accountability. DFID's Departmental Report for 2004 plays an important role in making DFID accountable, and, we trust, in helping the Department to reflect on its performance and improve.

73. In this report, we have highlighted several areas where DFID could do better, and where DFID could—by providing more and better information—make itself more accountable. More information should be provided about the poverty focus of the multilateral agencies through which much of UK aid is channelled (see paragraphs 14-18). Clarity as regards the UK development effort in Iraq, and its results, could be improved (see paragraphs 24-25). DFID could and should, in defending its role as a department focussed on poverty reduction and ensuring that its funds are used for this purpose, make the case as to how its various activities contribute to poverty reduction (see paragraphs 38-41). DFID should also ensure that its enthusiasm for Poverty Reduction Budget Support is informed by clear evidence about its effectiveness or otherwise, and that this evidence is made available to stakeholders (see paragraphs 50-62). And, DFID could improve its useful "traffic light" system of showing progress on its PSA targets, by explaining what will be done in cases where there is little progress (see paragraphs 63-71).

74. In addition to these issues, there are other areas of concern. The Departmental Report shows that net administration costs have increased by 120 per cent on 2002-03.[93] DFID notes that this is largely explained by the adoption of a new definition of administration costs.[94] Regrettably, the Departmental Report does not tell the reader how much of this increase is a result of this change in definition, making it impossible for the reader to assess how DFID is doing in terms of keeping its administration costs down. Suma Chakrabarti told us that perhaps 14 per cent of the increase is a real increase rather than a result of re-labelling.[95] This is somewhat reassuring, but there remains a point about transparency; the information provided in the Departmental Report for 2004 on administration costs is of little or no use to the reader. Subsequent Departmental Reports must present such information more transparently.

75. Two other issues are, first, the reorganisation of DFID's policy division, and second, progress being made with the mainstreaming of gender into the Department's work. We do not wish to trawl through DFID's experiences with reorganising its policy division here, but do hope that the lessons of what by all accounts was a rather messy process of organisational development have been learned.[96] As regards DFID's approach to gender, concerns have been raised that DFID's twin-track strategy of mainstreaming gender, and also engaging in work which focuses on the needs of women and girls, does not translate well from theory to practice, with "mainstreaming" actually resulting in marginalisation.[97] Whilst emphasising that there is a wide range of initiatives at all levels of the organisation, and many examples of innovative and effective work on gender, DFID acknowledges that more work is needed to ensure that the momentum on gender mainstreaming is maintained across the board. DFID is in the process of developing a new strategy on gender; we look forward to its publication and its translation into effective practice on the ground.[98]

76. Despite patchy progress towards meeting the MDGs, DFID's Permanent Secretary agreed that the appropriate response to this is to try harder, rather than to move the goalposts and allow the MDGs to become aspirations.[99] The international community must work harder to meet the MDGs, with Governments such as ours responding to, and amplifying, the political will to get things done. And, as well as working harder, and providing more development assistance, DFID, along with other players in the emerging global partnership for development, must work better and smarter. We hope that this report will contribute in some small way to improving the UK's aid effort and speeding progress towards the MDGs.


93   Department for International Development, Departmental Report 2004, Cm6214, Annex 1, table 6-see footnote 3 for web-site. Back

94   Ibid. Back

95   Q 85 [Suma Chakrabarti] Back

96   Q 75 [Suma Chakrabarti] Back

97   Ev 72 Back

98   Ev 44 Back

99   Q 1 [Suma Chakrabarti] Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2004
Prepared 25 November 2004