Select Committee on Public Accounts Minutes of Evidence


Examination of witnesses (Questions 40-59)

DEPARTMENT FOR INTERNATIONAL DEVELOPMENT

4 JUNE 2007

  Q40  Mr Mitchell: Practical experience is the best form of direct assistance.

  Sir Suma Chakrabarti: Absolutely, but that practical experience can be in a number of sectors. For example, the Indian Government wanted DFID help with water projects in some states in India that are particularly badly governed. That was going to be direct assistance, but we decided to do it through UNICEF, rather than doing it ourselves directly. Sometimes, the model for the provision of that assistance changes, but that is not to say that we will not use people from Grimsby or anywhere else when asked to bring expertise to the table.

  Q41  Mr Mitchell: It is just that we have a particular concentration of expertise, both political and in fishing, for example.

    In that case, however, if you want to employ more people with expertise in certain areas and bring them directly into projects, why do we pour so much into European Union efforts? We have talked about this before. In our previous clashes, you said that the situation was bad, but improving. However, £936 million is a lot of money to pour into a bottomless pit. I notice that it gives less attention to rural development and rural poverty than any of the other organisations. Given the fact that the European Union is an agricultural protection society, that is not to be wondered at. It does not want the development of rural production.

  Sir Suma Chakrabarti: I am not about to go into a full defence of the European Union. The issues are fairly fundamental about over what the DFID and Parliament have control. A large part of our aid programme, which is channelled through Europe, is budgetised and subject to treaty. It is an obligation about which I, my Department and Parliament do not have any say. It is a negotiated share. It is not even negotiated actually; it is set. We have much less leverage over those budgetised programmes.

    The programme over which we have a lot of leverage is the European development fund, which is focused on the poorest countries in the world: Africa, the Caribbean and the Pacific, in particular. It is a negotiated share that Parliament can and does debate. It advises on how it can improve. Interestingly enough, it is the most improved multilateral channel. I should like to believe that that is to do with the fact that both the DFID and the national Parliament can become involved in trying to improve it. We have much greater control over it.

  Q42  Mr Mitchell: I have one final question. The Report indicates that officers are less enamoured of the Food and Agriculture Organisation (FAO). Why is that?

  Sir Suma Chakrabarti: I will ask Jim to say something about the FAO. It has had a chequered history. We have been trying to improve its performance quite a lot. It has done some core things well for a long time and which we need to hang on to, one of which is standard setting across the countries of the Organisation for Economic Co-operation and Development and the non-OECD countries. Another is early warning for drought and so on. Many of our humanitarian responses are because of the FAO early-warning system. The third thing is its certain skills in animal diseases and pest containment—the veterinary skill set. It has been particularly important in the avian flu context in South East Asia.

    Does the FAO need to get better? Yes, it certainly does. We have been working hard with the evaluation to improve performance. There is a conference in November at which we shall be using the evaluation to set with other shareholders a new improvement plan. Jim, who will be our next ambassador for the FAO in about two weeks' time, probably knows more about this than anyone else.

  Jim Harvey: I have seen the external evaluation quoted as one of the hardest hitting external evaluations of any UN agency. We have not received the final report. It comes out in the third week of July and will be discussed at conference in November. It was originally a UK suggestion. We do not want to broadcast that too widely because we want ownership of the thing with everybody else.

  Sir Suma Chakrabarti: I think that you just have.

  Jim Harvey: Some years ago, Rome was very much behind getting the idea through.

    The initial reaction from the director general was that it gives him the ammunition that needs. Well, we shall wait and see. They key thing will be to make sure that there is not a fragmentation between ourselves as the donors—the G8 or the OECD group—and the G77. There is every indication at the moment of a common understanding that everyone is getting the picture in the aid framework that Sir Suma has been describing, and that everyone wants a better and more effective FAO. Historically, the problem has been a split because some people regarded it as an aid organisation, which it is not. It is not a delivery organisation. That understanding is coming so, over the next three or four months, we shall have to work carefully with OECD and G77 to make sure that everyone is putting pressure.

  Chairman: Thank you.

  Q43  Derek Wyatt: Am I right in thinking that, despite the problems in Mozambique, you have not raised the issues with the Government yourselves?

  Sir Suma Chakrabarti: We have raised those issues.

  Q44  Derek Wyatt: Despite the Report saying that you have not.

  Sir Suma Chakrabarti: The Report said that, when the NAO team was out there, it felt that it did get not enough evidence of that. It is an accurate reflection of the NAO's view, so we had to sign up to it. I have evidence here of the number of times that we raised the issues with the Government and what the Government have been doing about it. I described some of them in answer to the Chairman.

  Q45  Derek Wyatt: Why is there a discord between the Report and what you are now saying? That has been mentioned already. I am confused.

  Sir Suma Chakrabarti: I take the Chairman's point. I think that we should probably have been even clearer during the process of agreeing the Report. We felt that the NAO Report had not done us justice.

  Q46  Derek Wyatt: Can you reassure me? In Malawi, which I visited, we had a grow bag scheme through which we gave 1 million grow bags to the poorest people. Within four hours, they were traded on the market, because they were given only to the President's political party. I went to the ceremony to help give them out, and it was disturbing that such a good idea was abused so quickly. Have we stopped that type of process? Have we tightened up how we give such things away?

  Dave Fish: We are conscious of that sort of bias in any of our programmes. We work carefully with Governments to ensure that such things do not happen. I do not know the specific case in Malawi, but I can say that as a result of the support we gave to Malawi, over two thirds of the small farmers in the country got access to cheaper seeds and fertilisers in a completely non-political way. That has produced some quite remarkable increased harvests and some tremendous returns on the overall investment. Clearly, there were problems in the case that you described, but not in the much bigger programme that we have been running over the past two years.

  Q47  Derek Wyatt: It was a stunning programme, so it was upsetting to see the grow bags on the black market so quickly. Can you confirm the status of the World Bank? Is the amount of money that DFID gives in aid now bigger than the amount that the World Bank gives?

  Sir Suma Chakrabarti: No, not yet.

  Q48  Derek Wyatt: But it will be shortly?

  Sir Suma Chakrabarti: Not for some years. It depends on what our next two or three comprehensive spending review settlements are. At the moment, we are much smaller than the World Bank.

  Q49  Derek Wyatt: Thank you. Can you explain how you work with local universities that have achieved excellence in agriculture or horticulture in any of the countries in which you operate?

  Sir Suma Chakrabarti: Through our research programmes—

  Q50  Derek Wyatt: Do you sponsor science in such universities to help the rural poor?

  Sir Suma Chakrabarti: Jim, do you know whether we sponsor?

  Jim Harvey: I shall have to give you a written answer. [1]


  Q51  Derek Wyatt: Under the UK-India education research initiative, which the Prime Minister launched in September 2005, are you working with science, horticulture and agriculture departments of any universities in Bangalore or Hyderabad to help rural groups there?

  Sir Suma Chakrabarti: Quite possibly, through our research programmes. I suspect that they would involve quite small amounts of money, but I will need to find out the details and give you a written answer.[2]


  Q52  Derek Wyatt: Let me give you an example of what I saw last week in Hyderabad. Nokia had given phones to rural farmers to take photographs of the roots of various plants, which were sent to the university for analysis by MSC students and then taken back on CD-ROM by a man on a bicycle with a laptop, who went round showing each farmer how to achieve a 50% increase in yields in one year. That strikes me as a rather good project. Do you mean to say that we have not done anything under UKIERI yet, although it is nearly two years old?

  Jim Harvey: The new research into use programme that Sir Suma mentioned is being launched formally in South Africa this month, at the Forum for Agricultural Research in Africa. That programme will support partners to use research findings to promulgate technology and ideas, including ICT-type ideas. It is open to all sorts of partners; it is open not to researchers, but to intermediaries, including universities and people involved in such work.

  Q53  Derek Wyatt: Has anyone from the Department visited Nokia in Helsinki? Are you aware of what it is doing with the rural poor in Africa and India?

  Sir Suma Chakrabarti: I do not know whether anyone from the Department has visited Helsinki; I shall have to check. I know that we have worked with people such as Mo Ibrahim and companies such as Cellnet. It is not as though we do not have discussions with such entrepreneurs about their impact on research, but I will have to check the specifics of the Nokia case. [3]


  Q54  Derek Wyatt: So how is the Department familiarising itself with the latest technology and working with its partners in the Department for Education and Skills to ensure that the latest technology can be utilised for the rural poor?

  Sir Suma Chakrabarti: We have a close relationship with DFES; we had a joint board meeting just a few weeks ago.

  Q55  Derek Wyatt: But you have done nothing under UKIERI, after nearly two years.

  Sir Suma Chakrabarti: No, not under that specific scheme, but we have worked on other issues. In the autumn, a new science and innovation strategy will come out, which will include ICT. So we need to check on the specifics of the Nokia thing, because I just do not know for sure whether we have been to Helsinki or not.

  Q56  Derek Wyatt: Now you know that Nicholas Negroponte has a $100 laptop for Africa; actually, it is $175. What content are we going to provide for that? I gather that he has sold 17 million units to Africa, so what discussions have we had with the Massachusetts Institute of Technology and Google to provide a basic education and content to help the rural poor in agriculture?

  Sir Suma Chakrabarti: I know generally what discussions we have had, but not in agriculture specifically.

  Jim Harvey: We are generating a huge amount of information. I would suggest to people that they actually look at the Research for Development website, which we sponsor; it is part of our DFID website. There is a huge amount of information there. Many of the people generating that information have made it available in all sorts of media for promulgation through these sorts of systems.

  Q57  Derek Wyatt: Google announced their investment of $100 million three years ago. You have had quite a long time to consider how you would put content on to that system.

  Sir Suma Chakrabarti: We have had discussions with Google about tie-up more broadly, but not about that system. They have not asked for our help on that, interestingly enough, although we have had discussions at senior level with Google. In fact, I myself addressed the American foundation chief executives just the other day. We have also had a director visit Google and have discussions with them. However, Google did not ask us to put money, or content, into this Negroponte initiative.

  Q58  Derek Wyatt: Well, it is not theirs to do; it is MIT's to do.

  Sir Suma Chakrabarti: Well, MIT did not approach us.

  Q59  Derek Wyatt: Regarding GPS, which is the key means of spotting lots of things now in rural areas, have we research anywhere in Africa or India that is putting together mapping, the Google mapping system and GPS systems to find things out, right down to the smallest detail in the field?

  Jim Harvey: I cannot comment on that, with respect to the Google connection. I think that, if you looked into the research that we have been funding, you would find that there will be some work on that area. However, I cannot say that the Google connection is there; I am not aware of that.

  Sir Suma Chakrabarti: The best thing would be for us to produce a note for you on this for the Report, because I think that we ought to research this issue and give you a proper answer. [4]




1   Note by witness: DFID's Strategy for Research on Sustainable Agriculture follows two key principles-to respond to demand from developing countries and to work with and build the capacity of research organisations in these countries including universities. Through this strategy we are supporting science in a range of developing country universities. Back

2   Ev 20 Back

3   Ev 20-21 Back

4   Ev 21 Back


 
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