Foreign and Commonwealth Office Annual Report 2007-08 - Foreign Affairs Committee Contents


Letter to the Chairman of the Foreign Affairs Committee from the Secretary of State for Foreign and Commonwealth Affairs

FCO STRATEGY

  1.  I am writing to update you on the progress we have made in bringing a sharper strategic focus to the FCO's work.

  2.  Ministers and the Board have worked intensively over recent months on the FCO's Strategy. We have identified those issues which are both important and where the FCO adds real value. We also wished to recognise the importance of using our network to deliver for HMG as a whole. This means dropping the ten Strategic Priorities, in line with the FAC's own recommendations on our 2006-07 Departmental Report.

  3.  My aim in this exercise has been to give the Foreign Office greater clarity about its role, and a more strategic set of objectives. After a period of internal debate that drew on contributions from stakeholders and the public, we have now agreed the main features of a new strategic framework for the FCO. The new framework has three elements, reflecting the three main roles of the FCO:

    (i) shaping and delivering HMG's foreign policy. Within this we have agreed four new policy priorities on which the FCO itself will focus: countering terrorism and proliferation; promoting a low carbon/high growth global economy; reducing and preventing conflict; and developing effective international institutions, especially the UN and EU;

    (ii) delivering services to the British public and business on behalf of HMG: our consular operation, UK Trade and Investment, and UKvisas (due to be absorbed into the new UK Border Agency next year); and

    (iii) providing a flexible global network, for the first time explicitly recognising the value of our global network and its role in delivering for the Government as a whole. In addition to delivering our new policy goals and our essential services, our posts will continue to support the rest of Whitehall in delivering their own international priorities.

  4.  This new strategic framework means moving away from the ten existing Strategic Priorities. The "SPs" provided the FCO with a useful output-focused description of its objectives, and a framework for cascading these objectives to our network of posts. But the SPs failed to distinguish between policy and service delivery, and they failed to genuinely prioritise. As the FAC recommended in your response to our 2006-07 Departmental Report, "10 strategic priorities is too many" and should be "simplified and reduced in number"[2].

  5.  The four new policy goals represent this simplification, a sharpening of focus for the FCO, enabling us to concentrate on those areas where we can make the greatest difference. We intend to put more resources into these new priorities, enabling us to deliver more for Britain.

  6.  In order to free up resources to do this, we need to reduce the resources we put into other issues. Our objective is for the HMG's international agenda to be delivered in the most effective way possible, so we are looking at making reductions in those areas where other government departments have a competitive advantage, for example, where they have the policy lead and the greater expertise. Even in these cases, the FCO network will continue to provide advice and lobbying, and a platform on which other Whitehall Departments can put their own people and resources to deliver their international priorities.

  7.  We are also planning to shift resources away from more developed countries, primarily Europe (where we have a historically strong presence but the rest of Whitehall finds it fairly easy to operate), to countries where the FCO can offer more value added, primarily Asia and the Middle East.

  8.  My officials and I are working on the resource decisions that flow from the new framework, and discussing the details of these changes with the relevant Government departments. The outcome of these deliberations will enable us to work out the full implications, and thus to finalise, the new strategic framework, which we hope to announce early in the new year.

  9.  In my view, this is an excellent time for refreshing the FCO's Strategy, ensuring consistency with the new Public Service Agreements and compatibility with the resources we have available for the new CSR period. The new strategic framework is also a timely response to the Capability Review's call on us to more clearly articulate our distinctive contribution to delivering the UK's objectives overseas.

  10.  I believe the result will be an FCO that has a clearer sense of purpose and a more strategic set of priorities, deploying our limited resources to maximise the benefits for Britain.

  11.  I would like to keep you informed as we work through the details of the new strategic framework, and invite members of the FAC to meet with me to discuss the issue in January.

David Miliband

7 December 2007







2   Recommendation 13. Back


 
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