DFID and China - International Development Committee Contents


Supplementary written evidence submitted by the Department for International Development

  I am writing to respond to the points raised at the oral evidence session on 22 January regarding DFID and China. Please find attached the further information I agreed to provide on:

    —  What will replace the expired middle-income country Strategy and the criteria which will be used to determine DFID's approach to middle-income countries.

    —  The proportions of grant and loan funding which DFID provides to middle-income countries, together with comparative data from other major donors.

Annex A

DFID'S STRATEGY TOWARDS MIDDLE INCOME COUNTRIES

  We no longer have a public version of our strategy towards middle-income countries. We are committed to ensuring tht the proportion of the UK's bilateral programme going to low-income countries is at least 90%, as stated in the HMG Poverty Reduction Public Service Agreement for 2008-11.

  Within the 10% allocated for middle-income countries, our approach is governed by the following principles:

    Upon achievement of middle income status DFID's general approach is to pursue a stragey of sustainable graduation from bilateral assistance.

    —  Our limited bilateral assistance for middle-incomes is increasingly focused on large, emerging global partners which have the potential to make a significant impact on poverty reduction in other countries (eg China, South Africa).

    —  DFID belives the 90/10 commitment of bilateral assistance between low- and middle-income countries is an appropriate policy because:

      —  Aid is more effective at reducing poverty in countries which have higher levels of poverty and gives us the best chance of meeting the MDGs.

      —  DFID provides substantial support to middle-income countries through our contributions to regional programmes and to multilateral institutions, such as the EC, World Bank, Asian Development Bank.

      —  Middle-income country needs are more focused around getting the right opportunities and voice in international fora, accessing global best practice, and technical assistance (skills/training). DFID supports the transfer of knowledge to both middle-income country governments and between key international agencies.

      —  Middle-income countries have access to greater sources of capital (both concenssionary and non-concessionary).

Annex B

DEVELOPMENT EXPENDITURE, BY INCOME GROUP, £MILLIONS
France, 2007 Total Net Germany, 2007 Total Net Japan, 2007 Total Net
United States, 2007 Total Net


Income Group
DFID Bilateral Expenditure, 2007-08 Total ODA GrantsODA Loans Total Net ODATotal ODA Grants ODA loansTotal Net ODA Total ODA GrantsODA loans Total Net ODATotal ODA Grants ODA loansTotal Net ODA


Multi Contry Project
778 533-6527 667112779 61436650 2,603-12,602
Low Income1,9201,270 -1241,1461,279 251,3041,328 1391,4673,250 -553,195
Low Middle Income1981,158 -1649931,958 -1571,801982 -3126713,704 -3293,375
Upper Middle Income65 36879458 139-5188 66113176 302-29273
High4 41 12 -79-77


Breakdown of Middle Income

Upper Middle

South Africa
27.315.437.0 52.519.331.5 50.72.7-0.4 2.3113.5113.5
St Helens & Dependencies17.6
Montserrat17.2
Belize0.70.8 0.81.9 -0.51.4
Dominica0.50.2 -0.9-00.70.3 0.3
Turkey0.416.8 50.367.148.5 -76.3-27.83.9 39.343.23.5 -9.4-5.9
Russian Federation0.4
St Vincent & Grenadines0.3 0.10.1 1.31.3 -0.1-0.1
Malaysia0.22.0 -4.3-2.44.8 4.813.0 98.4111.41.1 1.1
Turks and Caicos Islands0.2
Lebanon0.237.4 13.951.316.5 -0.216.31.3 6.67.963.5 63.5
Mexico0.116.1 -8.18.014.1 14.18.0 -30.6-22.641.8 41.8
Grenada0.10.20.20.1 0.1
Trinidad and Tobago2.22.2 0.20.2 0.10.1
Botswana4.8 -0.14.61.2 1.22.2 -3.4-1.122.9 -0.522.4
Mauritius12.4 7.519.90.3 -0.3-0.10.3 1.01.40.1 0.1
Seychelles1.2 -0.90.30.4 0.40.1 0.1
Barbados0.3 0.3
St Lucia0.6 0.20.81.0 1.0
Antigua & Barbuda0.10.1 -0.1-0.1
St Kitts - Nevis

0.4 0.4-0.4-0.4
Anguilla
Argentina8.4 8.46.2 -0.36.04.3 3.37.53.9 3.9
Chile7.0 -1.95.19.0 4.713.75.1 -0.74.40.6 -1.1-0.5
Cook Islands-0.1-0.1
Costa Rica11.7 -0.211.53.3 -1.71.64.0 4.78.713.4 -14.9-1.4
Croatia1.6 1.67.8 -4.03.70.5 -0.40.111.0 -0.410.6
Equatorial Guinea 2.9-0.11.9
Gabon29.3 -13.316.11.3 -2.1-0.71.2 -1.00.10.5 0.5
Hungary
Libya0.5 0.51.9 1.90.2 0.22.0 2.0
Mayotte201.8 1.5203.3
Nauru0.8 0.8
Oman0.4 0.40.2 0.20.4 0.43.6 3.6
Palau3.3 3.37.0 7.0
Panama0.2 -0.10.10.5 0.54.0 -3.01.05.4 -1.83.6
Poland
Uruguay2.2 -0.81.40.8 -2.2-1.52.1 -0.81.30.3 0.3
Venezuela3.4 3.42.8 2.81.2 1.25.1 5.1


Lower Middle

West Bank and Gaza
45.027.927.937.6-0.1 37.624.324.3106.1106.1
Iraq39.5379.4 379.41,046.9 1,046.9441.7 -12.6429.11,873.5 1,873.5
China38.889.2 -23.166.1177.6 -33.1144.6139.5 78.2217.720.4 20.4
Indonesia32.218.4 -60.4-42.0110.1 -94.415.760.4 -171.6-111.2112.1 -53.558.6
Jamaica5.90.2 -0.8-0.60.1 -4.1-4.01.2 -5.2-4.09.4 -12.2-2.8
Bosnia4.92.8 2.814.5 14.52.7 2.715.8 15.8
Angola5.34.9 +3.21.66.1 6.111.5 11.520.8 -1.019.8
Kosovo3.2
Ukraine3.13.3 3.333.1 1.434.51.9 0.92.950.2 -4.745.5
Amenia3.14.3 4.24.9 6.411.30.8 41.842.640.8 -0.939.9
Serbia2.83.6 3.632.7 6.529.23.6 3.652.5 52.5
Guyana2.80.2 0.20.3 0.32.1 2.110.6 10.6
Georgia2.52.2 2.214.2 5.019.21.4 2.13.544.1 -0.843.4
Swaziland2.20.1 0.10.4 -3.3-3.01.3 2.43.61.9 -0.21.7
Sri Lanka1.81.9 1.43.324.5 -13.810.724.6 -2.622.134.6 -17.816.7
Albania1.52.5 2.511.0 11.923.00.6 -1.4-0.816.1 16.1
Peru1.45.9 -2.83.125.9 -22.13.810.0 9.919.957.0 -9.947.0
Bolvia0.53.5 0.13.619.9 19.919.0 -0.518.561.2 61.2
Brazil0.459.5 -3.156.449.1 -10.738.411.8 -16.7-5.011.9 -10.01.9
Namibia0.41.9 -0.51.410.9 -0.310.61.3 1.52.929.4 29.4
Phillipines0.32.5 -4.6-2.120.0 -5.914.128.9 82.1111.057.4 -15.042.4
Colombia0.318.7 -1.517.215.6 -3.711.97.5 -7.30.2201.9 -0.3201.6
Fiji0.20.6 -0.10.60.1 0.13.4 -0.52.90.6 0.6
Guatemala0.21.4 1.49.8 -1.18.611.1 -2.38.843.2 -20.322.8
Dijbouti0.228.6 -0.328.30.1 0.11.8 1.85.1 5.1
Cape Verde0.12.5 0.53.01.2 -0.70.50.9 0.93.5 3.5
Jordan0.13.1 -5.0-1.954.4 -40.513.914.0 -28.2-14.1131.9 -2.2129.7
Ecuador0.15.2 -3.22.010.5 0.511.012.2 -10.81.524.7 -3.421.3
Kiribati6.5 6.50.4 0.4
Vanuatu5.5 -0.35.34.4 4.31.2 1.2
Algeria94.7 -2.192.55.7 -1.04.72.9 0.73.60.8 0.8
Azerbaijan1.3 3.44.85.2 6.912.14.3 1.35.724.5 24.5
Belarus0.6 0.69.4 9.40.2 0.25.9 -1.84.1
Cuba1.2 1.21.5 1.50.9 0.96.2 6.2
Dominican Republic 4.83.48.2 5.3-1.04.4 7.8-6.31.5 15.5-13.32.3
Egypt64.1 -25.638.542.4 34.576.911.5 -25.0-13.5336.8 -105.7231.1
El Salvador2.9 2.96.7 -2.04.69.2 4.113.425.2 -5.719.5
Honduras0.8 0.810.9 2.213.110.4 10.452.3 -16.735.5
Iran9.0 9.021.1 21.03.6 -9.7-6.01.1 1.1
Kazakhstan1.8 1.86.2 18.524.84.1 17.521.638.8 38.8
Macedonia, FYR 1.71.7 8.30.99.2 3.66.510.1 15.8-0.115.6
Maldives1.31.31.9 1.9
Marshall Islands 1.11.1 24.124.1
Micronesia, Fed States4/84.7 49.849.8
Montenegro2.1 1.13.30.5 -0.7-0.12.0 2.05.8 5.8
Morocco140.2 -30.9109.342.8 28.671.47.5 24.832.318.0 -15.32.7
Niue
Paraguay2.0 -0.31.74.6 -2.22.410.9 3.514.413.0 -0.612.4
Romania
Samoa4.2 4.20.5 0.5
Suriname0.5 1.21.81.5 1.50.5 -4.9-4.4
Syria17.3 -1.415.824.1 -20.14.08.0 -30.8-22.81.2 1.2
Thailand17.7 -15.22.610.0 -11.1-1.024.9 -263.5-238.524.0 -1.722.3
Tonga-0.9-0.92.3 2.30.4 0.4
Tunisia56.1 7.863.921.1 -7.313.74.1 6.110.30.2 -5.6-5.4
Turkmenistan0.2 0.20.4 0.40.2 -0.5-0.35.1 -5.00.1
Wallis & Futuna58.7-0.358.5






 
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