Select Committee on Public Accounts Eighteenth Report


1  How and when to engage with civil society organisations

The importance of engaging with CSOs

1.The Government has recognised the important role which CSOs can play in development. There are many CSOs worldwide, ranging from large charities based in developed countries to small and informal bodies based in developing countries. CSOs can provide a variety of roles, including delivering basic services to the poor, challenging country governments about their services, or advocating policy change. In 2005-06 DFID provided £328 million to these organisations, or 8.5% of its total funding (Figure 1).[2] This is a similar percentage to countries such as Denmark and Canada (8 and 9% respectively), higher than France (2%) but much lower than some of the Scandinavian countries where the average is approximately 25%.[3] The proportion of DFID's funding channelled through CSOs has remained stable despite DFID's increasing use of budget support to developing country governments.[4] The most recent White Paper published in 2006 signals that this trend will continue.[5]

2. DFID sees funding of CSOs as a means to pursue development objectives, not an end in itself.[6] Country teams decide how best to use this route to pursue poverty reduction targets. In most countries DFID teams consider civil society as part of the overall country planning process. But the depth of analysis in country planning documents is varied, even taking into account different country circumstances.[7] Only three countries have specific strategies for engaging with CSOs. DFID reported that country teams had developed strategies where CSOs were critical to their approach to achieving development benefits.[8] For example, in Nigeria country staff wrote a separate strategy in response to difficulties in providing services to poor people there.

3. DFID use CSOs to deliver important development benefits in a number of different ways according to country context. First, CSOs can give voice to the poor and improve accountability, by holding public officials to account. Encouraging citizens to challenge their governments on issues such as service delivery provides DFID with some assurance that governments are acting to reduce poverty. CSOs can deliver services to poor people, by activities such as building schools or digging wells. They can often respond quickly to humanitarian emergencies, providing vital supplies. Some CSOs also engage in lobbying and advocacy to raise key development issues and influence policy.[9] DFID tailors its assistance according to country circumstances.

Figure 1. DFID total expenditure 2004-05 and a breakdown of funding to CSOs.


£328 million funding to CSOs is broken down as follows:

Note: Shaded rows indicate the main funding agreements covered in this report.

Source: Ev 13 and C&AG's Report

4. DFID country teams need a sound understanding of the strengths and weaknesses of civil society, whether or not DFID chooses to provide significant funding to CSOs in-country. How effective national CSOs are in challenging the policies and services of their governments, for example, can highlight risks or provide a degree of assurance if DFID decides to provide assistance through support to the government budget. But in practice the mapping of the strengths, position or skills of CSOs is limited.[10] A "drivers of change" analysis has now been used in 20 countries.[11] While these studies have confirmed the importance of civil society to poverty reduction, the analysis was often narrow in scope and did not assess the strength or capacity of CSOs beyond the broadest qualitative terms.[12] DFID acknowledged that it did not always have a detailed knowledge of CSO activity in-country, although it highlighted their desire for assessments to be proportionate to DFID's engagement.[13] This lack of awareness may lead to missed opportunities, with some good CSOs or projects potentially falling through the net and not able to attract DFID funding.[14]

5. There is no generally accepted way of rating CSO activity used by DFID or the wider development community—in contrast to joint ratings of other areas such as governance and financial management. This means that DFID and others have not established a baseline for monitoring of progress in developing civil society.[15] DFID mentioned a number of organisations which are seeking to measure the strength, participation and impact of civil society, including Civicus, the Overseas Development Institute's World Governance Survey, and the World Values Survey (Figure 2 - see overleaf).[16] DFID had not yet systematically used these indicators in its analysis, and in any case the indicators available do not cover all the issues or countries of interest.

Figure 2: Measures for rating civil society are partial
Sources for rating civil society Description Coverage Suitability
CIVICUS's civil society index Detailed assessment using 74 indicators of civil society, grouped around structure, environment, values and impact Assessments completed for 54 countries. But only 8 of the 25 countries covered by DFID's Public Service Agreements Good quality indicators, but not yet covering many of DFID's target countries.
Overseas Development Institute's world governance survey Matrix has 36 indicators, of which 6 relate to civil society, covering fairness, decency, accountability, transparency, efficiency and participation. 16 pilot assessments carried out in 2001-02 and a second phase underway (no outputs yet) Provides useful information on freedom of expression and quality of media. Does not provide insight into issues such as geographical location or types of organisation, sectoral engagement.
World values survey (conducted by World Values Survey Association) Survey covering changes in values such as religious beliefs. A range of countries worldwide. The majority are European, though the survey does cover three Sub-Saharan African countries. Findings are broadly regional, showing few differences between DFID's target countries. The focus is on broad changes in values. It does not assess how active civil society is or its relationship with government.

Source: NAO analysis of websites

The advocacy role of CSOs

6. DFID has increased its emphasis on supporting CSOs who promote accountability and engage in advocacy and lobbying, although it still funds CSOs fulfilling more traditional service delivery roles.[17] Providing an appropriate challenge function to the State is more important as DFID increases aid provided directly to the national budgets of developing country governments in support of their own national poverty reduction strategies. The aim is to improve accountability for the use of national budgets in support of the poor and thus improve the capacity of the developing country to tackle poverty. Strengthening the state through providing budget support may harm the development of CSOs, however, if governments come to see CSO efforts to monitor public services and advocate policy reform as a challenge to their authority.[18] This is one of the issues DFID has to assess through country appraisals when deciding to use budget support. Promoting a more accountable environment is also complicated as donors, CSOs and poor people have different priorities for CSO activity. For example, there is often a gap between the donor's emphasis on advocacy and capacity building and the demand of poor communities for improved infrastructure and service delivery.[19]

7. DFID does not have robust indicators to measure progress in encouraging CSOs to achieve change through promoting better accountability and more effective advocacy on behalf of the poor. Donors are divided on the role of CSO advocacy, with some viewing it as potentially beneficial and others as a high risk strategy.[20] DFID highlighted an example in East Timor of advocacy helping the poor to improve service delivery. Here, CSOs have successfully put pressure on the government to complete a roads project according to the specification.[21] But in other country situations, such as that of the Democratic Republic of Congo, advocacy may be less successful or even dangerous. For example, in weak states there are risks that it will undermine an already weak government. Similarly, funding fledgling CSOs to act as advocates for change in countries with a poor policy environment may lead to persecution and DFID's funding being ineffective. DFID has not yet explained how it manages these risks.[22]


2   Q 29 Back

3   Q 56 Back

4   Q 74 Back

5   DFID White Paper: Eliminating World Poverty-Making Governance Work For The Poor, 13 July 2006; Q 30 Back

6   Q 1 Back

7   C&AG's Report, Summary, para 7, Figures 4, 5 Back

8   Qq 1, 20, 63 Back

9   Q 1 Back

10   Q 66 Back

11   Q 1 Back

12   C&AG's Report, para 1.12 Back

13   Q 66 Back

14   Q 33 Back

15   Q 1 Back

16   Q 24 Back

17   C&AG's Report, para 2.26, Figure 3; Qq 29-30 Back

18   Q 6 Back

19   C&AG's Report, para 3.11 Back

20   C&AG's Report, para 1.13 Back

21   Q 5 Back

22   Qq 5-6 Back


 
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Prepared 22 March 2007