Introduction
1. The budget of the Department for International
Development (DFID) continues to rise sharply as the UK works towards
the United Nations target of allocating 0.7% of Gross National
Income to Official Development Assistance (ODA) by 2015. Under
the 2007 Comprehensive Spending Review settlement, DFID's budget
will increase to £7.9 billion by 2010-11; an increase of
around 36% over the three years. This is a trend which we have
repeatedly praised and continue to support. We have also repeatedly
made clear, including in the chapter devoted to 'effectiveness'
in our Report on DFID's 2007 Annual Report, that DFID must not
assume that greater inputs necessarily deliver better poverty
reduction outcomes. We embarked on this inquiry as a means to
examine how DFID is working with other donors and with developing
countries to ensure that its rising budget is spent effectively.
2. We received evidence in this inquiry from
14 organisations and individuals. We also held three oral evidence
sessions with experts and civil society representatives, the Chairman
of the Development Assistance Committee of the Organisation for
Economic Cooperation and Development, the European Commission
and Shahid Malik MP, Parliamentary Under-Secretary of State at
DFID. We also held an informal meeting by videolink with representatives
of the Foreign Affairs Committee of the Swedish Parliament and
of the Swedish development agency, Sida.
3. In March 2008 we visited Ghana for discussions
with the Ghanaian Government, civil society representatives, public
servants, community leaders and representatives, and donor community
representatives. In May 2008 we visited Rome, Berlin and Copenhagen
to discuss coordination with our European counterparts, governments
and civil society representatives. We are grateful to all those
who took the time to meet us to share their views and to provide
information. We are also grateful to DFID and the Foreign and
Commonwealth Office for facilitating these visits.
4. In chapter 1 of this Report we examine the
case for concerted action to make aid more effective and the international
community's reaction to that case, most notably through the Paris
Declaration for Aid Effectiveness. In chapters 2 and 3 we explore
two important themes which emerged during this inquiry: developing
country ownership of the development process and division of labour
among donors. In chapter 4 we look ahead to the next steps for
donors and recipients in making aid more effective including prospects
for the High Level Forum which will look at these questions in
Accra in September.
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