Select Committee on International Development Minutes of Evidence


Examination of Witnesses (Questions 60-80)

DR CHARLOTTE SEYMOUR-SMITH, MRS ARUNA BAGCHEE AND MR JEREMY CLARKE

5 JULY 2004

  Q60 Mr Davies: I cannot in any way endorse this suggestion which is slightly frightening, but it has been put to me that commentators have suggested that as little as 15% of development spending through central government reaches its beneficiaries in some areas. Have you heard allegations of that kind and can you comment on leakage? Can you comment on leakage, if that is the polite way of describing it, of funds of that sort? Have you had any experience of that kind of other donors? Does the figure of 15% that has been given to me bear any relation to reality?

  Mrs Bagchee: I would not be able to comment on that particular figure but governance on the whole is a concern for DFID and it is a growing concern as we move upstream to do more budget support, because then the donors are going to have to depend on the government's own systems and processes, audit and so on.

  Q61 Mr Davies: Why are we moving to budget support if we have this worry?

  Mrs Bagchee: I was just going to answer that. If we look at the governance issue in India, it is a concern—and I will come back to how DFID deals with it. But, if you compare India with a number of the other developing countries, on the whole the governance framework is quite good, it has an excellent constitution which gives us a parliamentary democracy; it is based on social inclusion and there are fundamental rights that are enumerated. There is a fine balance between the responsibilities of the central and the state governments and now also locally elected government, which is all a part of that. If you look at in practice how this constitution has actually played itself out, again the picture on the whole is quite good. The executive is kept in check with parliamentary oversight; there is an open press and media; and the judiciary is quite vigilant, particularly at the Supreme Court level. So, all of these things are intact, yet there is a problem of governance because admittedly, there is still, within this system inefficiencies, there is corruption and there are some structural problems as well. For instance, the court system is quite clogged up. Given these things, there are macro-level governance problems where I think donors can have much less influence and I will describe what those are, but there is also the service delivery level of governance issues where I think it impacts on the poor people more and here the donors, including DFID, can do quite a lot and that is where we are concentrating. If we look at the macro-level governance problems, I would say there are things like too many political parties, quite a lot of them with single leaders; there are issues with none of the parties having a very coherent economic agenda; there is the problem of election expenses being very high and leading to a number of other problems and things like that. On those, we have to trust that because it is a functioning democracy, there is some amount of self-regulation and we have seen over the years, with the logic of the elections that we have had, regular and quite good quality elections, now the parties are sort of coming together in two large coalitions, one slightly left of centre led by the Congress, and one slightly to the right of the economic agenda lead by the BJP. There are other signs of self-regulation within the system. For instance, the short-term focus that most governments had with very large cabinets and a lot of expenditure being wasteful, that is slowly being controlled and they have themselves passed an act now that the total number of cabinet members will be no more than 15% of the size of the legislature. So, things like that are happening within that macro level that donors will not be able to influence a lot, but we have to trust that, because it is a functioning democracy, these sort of reforms will take place. Coming to the service delivery side which impacts on the poor people a great deal, there are inefficiencies and the most important one of the failings has been on the planning and budgeting side. The incremental programming that the Government of India had adopted in its plans and sometimes the World Bank and other donors were also partly responsible because, every time a new idea struck somebody, there was a new project, a new programme, separate lines of budget and separate lines of staff: but a stage has come now where there are so many schemes that there is need for a proper convergence to focus all our efforts to see what the outcomes should be and, as I mentioned a little while ago, that is the effort now being done on the health side for reproductive and child health, so a convergence of all the planning, budgeting etc to see that we are more outcome focused. On corruption as well, it runs through the system and there is a problem of trying to control it. We are working through the DBS processes to see there is much better control of the financial flows through the system, from the centre to the state and then on to the implementing agencies. We have been able to influence the state governments to have medium-term expenditure frameworks and medium-term fiscal frameworks which give a better picture of how the funds will be spent, in which sectors, where they are going and so on. There is also work in service delivery to see that corruption is reduced by making the bureaucracy more accountable to the clients that they are supposed to serve. So, to the extent that we are able to persuade the state governments to go for decentralisation, to make the school system responsible to the Parent Teachers' Associations and the village education committees, we are making them accountable to the clients they serve. A very promising area in that is also computerisation. In some of the departments like the Revenue Department which used to be quite highly corrupt, introduction of IT has enabled a whole business-process re-engineering to see that, where the leakages used to happen has been to a large extent controlled. So, these are the levels at which I think donors can give best international practices, can help and influence the state governments to reduce corruption and to improve governance, and that is the level at which we are focusing.

  Q62 Mr Davies: That is very interesting and clearly you have set the problem out in general terms and the possible basis of improvement. I was trying to get a quantitative focus on this and particular studies have come up with certain estimates and let me put this to you to: apparently the Government of India Planning Commission's own document, "The 10th Five Year Plan, 2002-07", volume 3 page 104[3], says that studies of rural development programmes suggest that the leakage is between 20 and 70%. That would be 80% in the best case and 30% in the worst on the money being spent actually getting through to the projects on which it is being spent or to the people for whose benefit it is being spent. There is a study of Mr Saxena, ex-secretary to the Planning Commission, published in Office of Transition Initiatives (OTI) National Resources Perspectives number 66, March 2001[4], who suggests that actually the figure is 85% leakage. These are very, very serious figures. Do they correspond to your perception of the reality of India?


  Dr Seymour-Smith: There are clearly, as Aruna has mentioned, very serious problems of corruption and leakage. The figures are going to be different depending on the different schemes.

  Q63 Mr Davies: This is not something that you regard as being inconceivable or unrealistic?

  Dr Seymour-Smith: What I wanted to say is that one of the key objectives—and you will have gathered from Aruna's answer that we live and breathe this stuff every day—is that we want our intervention to make this situation better. Obviously, if we knew that a particular scheme had horrendously high rates of leakage and was subject to severe corruption, we would not engage with that scheme. We would want to know before we chose a scheme, as we have done very carefully with Sarva Shiksha Abhiyaan, for example, that the problems of leakage and corruption are manageable and that there are opportunities to make improvements. I think we do have some indications that, on those centrally sponsored schemes where donors are involved, that monitoring and scrutiny and systems of audit and accountability are better and that is a key reason for our involvement. We are trying to unlock improvements in governance and this is something that cuts across everything that we are trying to do. We cannot say that the problem does not exist. It does exist. In some schemes, it may be worse than others. There are some schemes that work well and that do reach the intended beneficiaries and we should not forget those and we are hoping to build on this success, transfer those experiences and improve the rates at which those schemes reach the poor.

  Q64 Mr Davies: You have a lot of experience on monitoring and you have systems of monitoring which you are reasonably happy about, perhaps you could let me know what your estimate is at the moment of the range of leakage in the schemes that we are currently supporting.

  Dr Seymour-Smith: I could not do better than the Planning Commission's own figures, I am sure.

  Mr Davies: Which you accept are extraordinarily high: at best 80% of the money goes through, at worst only 30% and I see that you are nodding on that.

  Q65 Ann Clwyd: I would like to follow on what Quentin was asking and that was supervision. I remember some years ago going to Orissa to see a project which I had seen only two years previously which was training nurses. It was actually managed by the British Council; the British Council only seemed to visit them once a year and indeed I think we made many criticisms of that project and it was then acknowledged that really the British Council had not been as hands-on as they should have been. I wondered how prevalent this system of management still was and how satisfied you are with it.

  Dr Seymour-Smith: I think you have raised another key issue which is the balance between on the one hand too much handholding through a project and supervision that is too close and will not be sustainable because, when you stop and the handholding goes away, the recipients will not have learned to stand on their own feet and manage their own programmes. With the situation you describe, I am not familiar with that exact project, but it sounds like perhaps the balance had tipped in the other direction and not enough support was being provided. All I can say in relation to our current programmes is that we do need to consider, and we do consider very carefully the monitoring and supervisory requirements for each of those programmes and I would hope that, when the Committee visits, they will not find programmes that are either being neglected or being excessively nannied, but you will advise us, I am sure, on the basis of your visit to India later this year.

  Q66 Ann Clwyd: You mentioned the four states that you are working in and you have touched on some of the things that you are doing there. I wonder if you could point to any tangible results where leverage is successful, more successful then than it will be central government.

  Dr Seymour-Smith: Aruna gathered together some information with which we can provide you after this session in writing but perhaps Aruna would like to touch on some of the examples that we drew together in response to that.

  Mrs Bagchee: We have a range of instruments that we use, the projects programmes and DBS, and it is much easier to show direct attribution at the project level, so we have a few examples which, as Charlotte said, we will send afterwards as well where we can report on how many million people have actually benefited from that particular project. For instance, in West Bengal on the HIV/AIDS programme, the prevalence, because of the interventions of this programme, has increased only marginally from 4.8% in 1995 to 5.5% in 1998 and is considerably less than Bombay, which would be the comparable area. Similarly, in the urban poverty project in Calcutta, it helped to improve basic slum infrastructure to over 350,000 slum dwellers, residing in some 200 slums in that city and so on. In a country the size of India, if we give these figures of 1.8 million or 350,000 and so on, it would not be very impressive given the size of the country. So, you are absolutely right that it is really in the influence that these projects have had on the state or national programme that we should look for the real attribution of what DFID has brought to the development world in India. Here we find that again, if we look at the West Bengal public sector reforms, in which we are now engaged, this is a Communist Party governed state in which it would be very, very difficult to imagine that they would take to public sector reform in terms of closing down the government's public sector units. DFID supported a pilot project explaining to them how they could be closed down with voluntary retirement, good benefits and good retraining for the staff who had been made redundant and so on. This would then check the fiscal drain that these loss-making units were causing and give the state government more money to divert to the social sector, education and health. The pilot project went so well that now they are ready to think of phase two, covering other sectors like power, transport and so on and, even at the national level today, when the Communist parties are supporting the new government led by the Congress, this is shown as an example of the new Communist culture, that they are willing to think of public sector reform in the state which they rule themselves. So, this is the kind of leverage and influencing the DFID programme has had. We could give a number of examples again but time is short and we can send this to you[5].

  Q67 Chairman: That would be helpful.

  Mrs Bagchee: I have already mentioned DPEP, the District Primary Education Programme, which has run for a number of years and has now been translated into the Sarva Shiksha Abhiyaan and it has become a national level education guarantee scheme of the government. That is the kind of leverage that we are able to show because of DFID intervention.

  Mr Clarke: May I just add to slightly extend that that we could also point to the fact that DFID assistance is able to influence more broadly the way in which the government itself uses its own resources both in terms of its national programmes and its state level and I think that is an important point to make and that we could also, I think, give you more information about this. We can point to increased spending, for example, on the social sectors in Andhra Pradesh and I think we could also—I am referring back to the point about leakage that was made earlier on—highlight some more greater commitments to tackle the sort of problems, the administrative reforms that are necessary, financial management, accounting, audit and procurement areas, which I think are going to address the kind of problems that were highlighted earlier on and I think that the budget support mechanism is a particularly good vehicle for being to able to tackle that agenda and I should say that the World Bank, for example, has highlighted the efforts of the Andhra Pradesh government in that regard. They are suggesting that it is not only good practice but world standard in terms of what they are trying to achieve and want to use it as an example of how to approach these problems in other countries. So, I think there are some quite interesting and important things to highlight on which we can provide more information if you would like to see it.

  Q68 Mr Colman: Coming back to Andhra Pradesh, it was quite interesting in that you were praising but, in a sense, you were praising the last Government of Andhra Pradesh but not the current one and I was fascinated that it seems to be a long time but it is only a matter of probably about two months and you have not yet met with the new government which is not doing what you suggest. Your leverage has come to an end. Plainly, you will need to have an excellent strategy and I am interested to know what that is, but are you really going to support a government that, I would imagine, you are feeling is carrying through fiscal irresponsibility in providing free electricity to farmers, most of whom will be quite wealthy farmers, and this is totally in opposition to everything you have worked on. George Monbiot of The Guardian would say, "I told you so", but what do you tell us in terms of this situation where you are providing blanket support to a government, it is voted out of office and the new government is coming in and is doing exactly what DFID said not to do?

  Dr Seymour-Smith: I would like to comment on that by first saying that I met with the new Chief Minister of Andhra Pradesh, Mr Reddy, very soon after the election and that he was very clear in saying that he did not repudiate wholesale the policies of the previous government and indeed he recognised that many valuable reforms had been undertaken, that he intended to build on whatever good had been done by the previous government and, where necessary, to correct any weaknesses and failings. You mentioned specifically the policy of free power to farmers and we would indeed consider that that is inadvisable. However, we do understand and it was made very clear to us by the Chief Minister and by his officials that the government feels the need to respond to the distress, the severe distress, of farmers in Andhra Pradesh. Our concerns are that to respond with free power to farmers will not actually help the poorest. There will be a lot of diversion and there will in fact be some reversal of the gains that have been achieved in terms of discipline in the power sector and that in fact this will not really help the poorest farmers. So, were we to enter into a more detailed discussion with the Government of Andhra Pradesh on that issue, we would be suggesting things like, why not a lifeline tariff where the first small amount of power to each consumer is free, which means that small poor farmers can have a livelihood, but then in excess of that power should be metered and better-off consumers should be paying a different price, a more realistic price? I do not know if the Government of Andhra Pradesh will want us to have that discussion or whether they will consider that they are going to take this forward without external assistance. It was certainly not our impression that the new Chief Minister intends to reverse the direction of reforms, far from it.

  Q69 Mr Colman: I think that my next question has probably been answered, so if I could quickly substitute one which is that, given that you are working within basically four states and providing support to four states, do you think this is a wise policy? The NGO I have been most impressed by in India is SEWA, the Self-Employed Women's Association that you call ILO-SEWA. I many times asked them to go and talk to DFID's office in New Delhi to support a number of their policies but they do not operate in any major way in the four states where DFID works. Do you feel that perhaps we need to revisit this idea of a four state emphasis particularly where you get possible major reversals as we are seeing in Andhra Pradesh, it is much better to work with an organisation like SEWA working with women in delivering extremely good policies across the whole of India rather than, if you like, working with governments that sometimes can take strange decisions?

  Dr Seymour-Smith: That is a very valid question. Why are we in focus states at all? We believe that a number of the changes that need to take place to reduce poverty in India need to take place at the level of state governments and that it is possible to enter into very productive policy dialogue with those state governments and, in that sense, we get closer to many of the problems of poverty and to many of the changes that need to be made. However, we do not have an "all or nothing" approach. As I was mentioning earlier on, setting aside budget support, around half of our programme goes to the four focus states and around half goes to our national programme where we do indeed support organisations, including SEWA. There we have a number of interesting and innovative partnerships which do reach beyond our focus states. One example is we have recently committed to supplying some funding to UNICEF for their Child Environment Programme, which specifically addresses water and sanitation issues in 14 different states in India. That happens to include all four of our focus states but it also includes UP, Bihar and the other states where UNICEF has a programme. It will be directly addressing a challenged MDG on access to sanitation, which is a particular problem in India. It will also have a significant multiplier effect with other initiatives of ours. If you look at primary education, for example, why do girls not complete primary education? One of the main reasons is because there are no toilets in the schools and therefore they are not comfortable. By putting toilets in the schools through the SSA programme and through our interventions with UNICEF, we are helping girls to complete their primary education. That will have a good knock-on effect on maternal and infant mortality rates because there is a very strong link between girls' education and the health of mothers and babies. We do not only support our focus states and we would not be comfortable with that. We are always looking for new ways, through different partnerships, to—

  Q70 Mr Colman: SEWA can look to you as well as the four state governments?

  Dr Seymour-Smith: We do have dialogue with SEWA and we do provide support to them.

  Q71 Chairman: The World Bank is a big player in India. How does DFID get on with the World Bank? Do you think you have any influence over the World Bank? Do you have any leverage over the World Bank? Do you think the World Bank has any collective leadership over the government?

  Dr Seymour-Smith: We have a very close relationship with the World Bank and constant dialogue with them. If your question is do we believe we have any influence over the World Bank, yes, we do. We believe that we broaden and deepen their focus on poverty reduction and they would say the same. We work in a very complementary way alongside the World Bank. For example, we have a trust fund which is available to the World Bank to carry out studies and analyses to deepen the poverty focus of the activities in which they are engaged.

  Mr Clarke: We have made a special effort to develop a partnership with the World Bank which builds on existing commitments like the ones that Charlotte has mentioned in India across a range of our country programmes, specifically to find ways to work jointly on a range of activities to push forward the harmonisation of changes. In short, we see the relationship with the Bank as strong, positive and moving in the right direction as a whole. We have relationships both between the HQs of the organisations as well as at country level, so we try to link up those country commitments at policy level with what we are trying to do at country level.

  Q72 Chairman: You have just had an external valuation. I do not know what changes you have made as a consequence of that but it seems DFID is rather centralised in Delhi. Given that you are working in four states, would you like to comment on any changes you have made in the external valuation? Why are you so centralised?

  Dr Seymour-Smith: Why are we so centralised in Delhi and why do we not have a greater presence in the partner states?

  Q73 Chairman: Yes?

  Dr Seymour-Smith: This is something we are actively looking at at the moment. We would have to balance the different advantages of having the critical mass of people in Delhi or having to manage different, larger state offices, but the logic of what I was saying earlier on about the real challenges for many of them being located at state level would lead us to think that it might be useful to deploy more of our staff at state level. That may be a direction in which we choose to go in the future.

  Q74 Chris McCafferty: You said several times that you do not have a full on approach but given that 45% of people in India are from the scheduled castes or tribes and they are the people suffering extreme poverty, how is DFID focusing its activities on those most vulnerable people?

  Dr Seymour-Smith: Thank you for that question. We are acutely aware that the problems of poverty in India will not be solved unless we pay attention to the most marginalised and excluded: the scheduled castes and tribes, Muslim communities who have lower social indicators than the majority of the population, and within those groups in particular women who suffer particular disadvantage. We have an approach paper on social inclusion in our written evidence which you may have been able to read which covers essentially how we are approaching this. It has to be mainstreamed in all of our activities. We need to measure better—and we are working on this—the impact of our programmes on scheduled castes and tribes, minorities and women. For example, in phase two of the reproductive and child health programme, which we are working on with other donors, we are working on making the criteria for measurement and monitoring exclusively focused on those groups so that we will be able to say how many people in those target groups have benefited.

  Mrs Bagchee: Besides looking at social inclusion across all of our programmes in education and health, DFID also has a special programme in Orissa where the number of tribes is quite large as a proportion of the population. There is an Orissa tribal empowerment project which we are implementing in partnership with IFAD. There is also a very concentrated effort to understand their issues, to try and look at their livelihoods, their requirements, which are slightly different from the rest of the population. As a cross cutting theme on bringing about social inclusion in all of the work DFID does, we have programmes specifically targeted for scheduled tribes.

  Q75 Chris McCafferty: Do you think DFID is doing enough to help the Muslim population in India and is DFID doing enough to help women in India? I am thinking particularly of Muslim women.

  Dr Seymour-Smith: We can never do enough. The commitment is there but it is very hard to reach parts of the population. We do not have activities that specifically target the Muslim community.

  Mrs Bagchee: Through UNICEF, we will be targeting a communication programme for getting Muslim mothers to get their children immunised. It was noticed that this is an area where there is a tremendous amount of work remaining to be done because there is a reluctance for Muslim children to be immunised.

  Dr Seymour-Smith: For example, in DPEPs (District Primary Education Programs) and SSA, because there are particular problems around the schooling of Muslim communities, the lack of schooling facilities for Muslim children is being addressed as part of that programme. Similarly, with reproductive and child health, where there are specific health issues for Muslim communities. Those will be addressed.

  Mr Clarke: The issue of social exclusion has been getting a lot more attention in our office over the last couple of years. We do not yet have a DFID corporate policy on this issue but we are working towards that. We have done some work and produced papers on castes, for example, in the past, in order that we can understand the nature of the problem better and begin to look at the issue in the context of particular programmes. Certainly in our DDP, our Directors' Delivery Plan which sets out what we aim to do in Asia, we have identified that as a major issue which needs to be looked at in all our country programmes. There is a firm commitment to do that both at the policy level and at the operational level. Specifically, we are planning to look in more detail at health and education and service delivery across a range of our country programmes with a view to trying to highlight practical measures and operational ways in which we can adapt and design our programmes together with the state governments, in order to begin to tackle that problem. I can reassure the Committee that social exclusion in all aspects is something we attach tremendous importance to. We monitor what our country programmes are doing to address the issue and we try to do more research and analytical work to identify practical measures that we can take. The work on chronic poverty will also identify some useful insights that will help in that regard.

  Q76 Chris McCafferty: Am I right that caste and ethnicity alongside gender will be brought into your project assessments and there will be an attempt to mainstream those issues with the new policy? Am I understanding correctly?

  Dr Seymour-Smith: That is correct. They are already there because we already realise that, if we are looking at service delivery, we will not reach our objectives of getting better provision of service delivery to the poor unless we address the issues that you have mentioned. We are trying to strengthen our analytical framework and our understanding of what might work, what is the tool kit that we might use, and drawing regional lessons that Jeremy and his colleagues are helping us to distil to say how do we reach the scheduled castes and tribes; how do we reach the Muslim population; how do we reach women? What is the tool kit that we can use and how can we improve what we are doing?

  Q77 Chris McCafferty: When you have the tool kit, what kind of checks and balances are in place to assess the impact of the policies that you may have that are pro poor and to make sure that they are reaching the people you want them to reach?

  Dr Seymour-Smith: The main way that we will have of measuring whether we are succeeding is measuring whether services are reaching the poorest people. The outcomes that we are hoping for in terms of education, that all children should be enrolled in school and all children should complete a primary education—the children who are not completing schooling at the moment are, by and large, from scheduled castes and tribes, Muslim communities and they are particularly women. We know that is the population we are aiming for and we will know that we have reached them if we succeed in our objectives through SSA, for example, of getting the 23 million children in India who are not in school at the moment into school by the end of the period of that programme.

  Q78 Chris McCafferty: What proportion of those 23 million are Muslim?

  Mrs Bagchee: It is roughly in proportion to the general population. If you look at the log- frames, these are all built into the monitorable indicators. For instance, for the Sarva Shiksha Abhiyaan education programme, the indicator we will be looking at is to see whether the number of girls to boys completing the first five years of education is getting closer or further apart. We are looking to see that gender equity is built into the programme and similarly for the out of school children. We need to see that the number of scheduled caste and scheduled tribe children that are out of school have also come into school in proportion.

  Q79 Ann Clwyd: This Committee did produce a report on the situation of women in India a few years ago and I recollect very clearly that progressive women in a lot of areas were being constantly threatened and abused. Yet, when we met the India Commission on Women centrally, we were given a very different story. On the ground, it was a very depressing story, particularly when we heard about areas where women suffer very greatly. I wondered if you were focusing on the position of women, specifically in certain areas where you know they are being abused. I do not know if that is true of poorer states or if it is equally true in richer states.

  Dr Seymour-Smith: The picture is mixed. There are good examples of progress and good practice and there are also clearly issues and problems. For example, the ratio of girls to boys in some states in India is alarmingly unbalanced. There are certainly issues of violence against women which are pervasive in Indian society. Whether as a donor it is the best use of our resources to try and tackle those issues directly, I am not sure, or whether there are enough forces in Indian society coming up to tackle those issues.

  Mrs Bagchee: There is a tremendous problem of gender inequality in India, as there is in south Asia, but there is also a strong women's movement within the country. As a donor agency, it is a little difficult for DFID to enjoin very loudly in the advocacy and strengthen the hands of these groups. What it can do, and what it is already doing, in its own work is to ensure that the government is responsive to the fact that its own institutions and service delivery must lead to more gender equity. That is our effort through all of the programmes that we support in India, in all the dialogue we have at state level and national level, to say that you will not be able to come up with better figures on gender equality unless the institutional framework improves, and the way the government reaches out to and includes women, the marginalised and so on. That is the   level, at programme level that we are concentrating on.

  Q80 Ann Clwyd: Are you getting much opposition to that line?

  Mrs Bagchee: More unawareness than opposition. It is just unawareness on the part of some of the bureaucracy, that this bias just happens as a matter of course. It is more difficult for women to access the primary health centres, for instance, because the doctors are male. There are not enough female nurses. It is those sorts of things that we will help them to work on. In the Sarva Shiksha Abhiyaan, there is a female-focussed official policy. For new teacher recruitment, it would be good if these are female teachers because that is a big factor in getting girls into school. To ensure that there is no institutional bias and that the government does implement in these programmes what it says it will do in its Planning Commission documents is where DFID is focusing its efforts.

  Dr Seymour-Smith: I would not say we encountered opposition so much as sometimes a lack of energy or a lack of awareness in tackling these issues.

  Ann Clwyd: That can sometimes mean the same thing.

  Chairman: Thank you. As you know, practically every Member of the Committee is due to come to India later this year on a visit. We are splitting into two teams. Those of us who have spent what seems quite a large chunk of our lives trying to analyse official lines to take, we have heard the nuances concerning AP in your comments. I think we would like a greater understanding of this: if we hear it aright, what you are saying is that the money DFID is spending in India is worthwhile. It purchases some leverage but not necessarily a huge amount and although it is a big chunk in the context of DFID's budget it is not necessarily a huge chunk in terms of overall spending in India. One of the things we will be interested in exploring further, I suspect, is the tension between does DFID spend its money in specific states and seek to purchase leverage in those states and therefore try to communicate? We were having a discussion earlier that, rather like a challenge fund, if you are a good performing state, you win more money from overseas donors; or do we concentrate on women, social excluded groups, scheduled castes, scheduled tribes and social exclusion? What is the tension there? If we move to different states, which states are they and what criteria? We would also be interesting in working relationships between DFID and the Indian government, because by then you will see how the new government is functioning, and whether that is resulting in any changes and otherwise the kind of questioning you have had this afternoon. We are probably enthusiastic sceptics about DFID's spending. That might be a fair consensus. We all recognise the scale of the problems in India but there are still quite a lot of questions, bearing in mind every pound we spend there. Are we expending it more effectively in Asia or elsewhere? Thank you very much for your time. We look forward to seeing I hope Charlotte at least in Delhi.





3   Planning Commission, GoI, 10th 5 year plan, 2002-07, Vol 3 p 104. http://planningcommission.nic.in/plans/planrel/fiveyr/welcome.html Back

4   N C Saxena, ODI Natural Resource Perspectives No 66, March 2001, p 3, http://planningcommission.nic.in/plans/planrel/fiveyr/10th/default.htm Back

5   Ev 65 Back


 
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