Written evidence submitted by YozuMannion
Limited
ISSUE 1: THE
APPROPRIATE SIZE
AND SCOPE
OF DFID'S
AID PROGRAMME
IN CHINA
1. It is inevitable that as China's economy
grows the relationship between the UK and China is shifting from
"donor/recipient" to a broader, multi-sectoral partnership
to tackle development issues in many different national and international
fora. We recommend that DFID moves quickly towards seeing their
relationship with China in terms of a broader China/UK Development
Partnership rather than "DFID's aid programme". Now
is a good time to accelerate this transition, so that a new programme
of China-UK cooperation, exchange and mutual benefit is underway
as existing DFID programmes are wound down.
2. Framing the discussion as a Development
Partnership, rather than the funding decision of a single government
department, transforms the debate on the size and scope of DFID's
aid programme. The question of how much funding DFID should give
to China and whether 2011 is the appropriate time to cease support
becomes less relevant. It would be a positive process rather than
the negative one of shutting down aid and would signify a view
to the future rather than tidying up the past. This will be in
line with Prime Minister Gordon Brown's statement in January 2008
that "we are ushering in a new, comprehensive, strategic
partnership between Britain and China".
3. DFID's role in the new Development Partnership
would have two main components. The first, smaller role would
be collaboration with China on national development issues. There
are still sound reasons for continuing UK Government development
support in China, albeit in different forms. One of the greatest
challenges facing the country is to provide health, education
and social care services to the whole population, particularly
the poorer Western Provinces. DFID and the UK Government have
managed a useful and highly-valued aid programme over the last
decade which has had demonstrable results in terms of improving
national policies. In doing so, it has developed good relationships
with the Government of China and related institutions. Its evident
commitment to aligning behind government strategies and institutions
has undoubtedly helped to build understanding and trust between
the two countries and it would be regrettable to end this positive
relationship arbitrarily. The difference would be that the emphasis
of this collaboration would be on technical exchange between the
two countries, particularly focused on improving the quality and
performance of social protection systems. Though this may include
small-scale funding to support priority development initiatives,
this would not be the main element of the partnership. The basis
of future cooperation is not about size or amounts of funding
but about technical discussion and ideas. Within China, this needs
to be shaped in a way that is addresses the 21st challenges facing
China as it looks to expand its economic development model towards
the "balanced-development" expounded by the current
leadership.
4. The second, larger component would be
collaboration between the two countries to address international
development issues, particularly in Africa. China has perhaps
unparalleled recent experience of bringing large numbers of people
out of poverty, an experience that is sometimes underplayed in
the West. The combination of this knowledge, with the UK's experience
of delivering aid programmes and managing stable national social
protection systems has the potential to become an effective partnership
to reduce poverty internationally.
ISSUE 2: AID
EFFECTIVENESS AND
DFID'S "ADDED
VALUE" COMPARED
TO OTHER
DONORS IN
CHINA
5. DFIDs' added value in China has been,
and remains, a partnership approach that has supported GoC institutions
to develop their own solutions to development problems, rather
than seeking to impose the UK's own approaches unilaterally. This
approach has respected government ownership in line with Paris
principles and it has been pioneering in terms of providing direct
support to government. DFID has perhaps been more successful in
this than some other donors, and is recognised as a good development
partner within China.
6. The DFID-funded Health Policy Systems
Programme (HPSP), for example, provided direct support to a Beijing-based
ministry, with funds going directly to the central government.
If we agree that aid effectiveness can be measured by national
government policy changes and positive initiatives that have had
an impact on the whole country, then this approach can certainly
be judged successful. Though some of the project-based service-delivery
interventions DFID has funded have not been sustained after external
funding stopped, in many cases the ideas and approaches have remained.
DFID-funded projects have created a neutral space to pilot innovative
approaches from abroad and build domestic support for them within
China. HIV/AIDS pilots with the China/UK HAPAC Project, for example,
provided an evidence base that has facilitated the dramatic reform
of national HIV/AIDS policies by the Government of China.
ISSUE 3: DFID'S
SUPPORT TO
POVERTY REDUCTION
IN CHINA
IN BOTH
RURAL AND
URBAN SETTINGS
AND ESPECIALLY
TO BASIC
SERVICES INCLUDING
EDUCATION, HEALTH,
SANITATION AND
WATER
7. DFID makes poverty reduction the key
principle for its aid programme in China, which is entirely desirable
and understandable given DFID's remit. However, the constant reiteration
of this point can seem patronising and laboured to government
departments that are acutely aware of their poor populations and
of the political and ethical necessity of ensuring that they are
not excluded from benefiting from China's economic growth. The
rhetoric can become a constraint at as it can be an obvious point
repeated unnecessarily and sometimes in abstract rather than concrete
measures.
8. Our perception is that the most sustainable
benefits of DFID support has been where DFID has created opportunities
for Chinese organisations to address development problems and
bring about policy reform, rather than in service delivery. The
HPSP project is a good example of a Government led project focusing
on supporting policy dialogue in health with the aim of supporting
government efforts to improve the access and affordability of
health care for the whole population. This project has provided
modest support, but has assisted the early design and development
of a new evidence based knowledge management system on pro-poor
health systems, it has informed policy makers on key issues of
concern in service provision and has provided early exploration
of contracting out mechanisms for technical support based on DFID's
experience over many years.
9. An important contribution made by DfID
and other donor programmes is to provide opportunities for otherwise
marginalised people to participate intermittently in national
debates—and benefit directly from specific programmes. There
are many people and issues that remain outside the mainstream
of national poverty reduction programmes. Whether the UK government
will have an ongoing role in supporting China in their efforts
to assist the poorest will depend on how well the new relationship
develops and how relevant the UK's contribution seems to Chinese
partners.
ISSUE 4: THE
EFFECTIVENESS OF
THE UK GOVERNMENT'S
STRATEGY TO
ENGAGE WITH
CHINA ON
INTERNATIONAL DEVELOPMENT,
ESPECIALLY ON
AFRICA, CLIMATE
CHANGE, SUSTAINABLE
DEVELOPMENT, POVERTY
REDUCTION AND
ENERGY SECURITY
10. Our understanding is that there are
regular high-level meetings between UK and Chinese Government
officials and that development collaborations have been started.
While these developments are positive, we believe such initiatives
would benefit from a more formal and transparent strategic framework.
11. The recent controversies surrounding
Tibet and the Olympics have raised concern that the relationship
between China and Western countries may become more difficult
in the short to medium term. We believe that a clearly articulated
Development Partnership will help to maintain frank discussion
and constructive collaboration in the longer term. It will be
important to approach it in an open-minded, thoughtful way that
respects the different values and skills of both parties, while
being honest about where there are differences and clear where
compromise is and is not possible.
12. China undoubtedly has a different approach
to overseas development assistance than the UK, for example it
sees explicit quid pro quo collaboration as the way forward, rather
than "aid" projects. Practical, constructive collaborations
between Britain and China will develop greater understanding of
each other's approach, and help to minimize situations in which
respective approaches contradict or undermine each other. It would
be easy to envisage a collaboration where China's capacity at
infrastructural development, for example, was combined with DFID's
expertise in pro-poor participatory planning. China and DFID could
also agree to collaborate on a few key issues where both parties
have a distinct comparative advantage, for example scaling up
pro-poor services.
13. One area that has not received much
attention proportional to its size and potential for global impact,
is that of innovation and technology, especially in medicines,
vaccines and diagnostics. Not only is China the world's largest
producer of active pharmaceutical ingredients, but it also has
a wealth of scientists, institutions and researchers unparalleled
in the developed world. The UK government not only has an opportunity
for a long term relationship of joint learning and sharing of
ideas, but also for promotion and support of products and ideas
that could ultimately assist other developing nations, particularly
those in the African continent. Nowhere is this more pertinent
than in the exploration of sustainable solutions for infectious
disease control. Relative to other countries the UK may seem a
smaller player but it has both a robust scientific community and
also governmental support for using flexibility in intellectual
property law to protect public health in the developing world.
This combination sets it aside from other western nations and
should be considered within a UK/China partnership.
ISSUE 5: CHINA'S
RELATIONSHIP WITH
MULTILATERAL DEVELOPMENT
INSTITUTIONS
14. China's relationship with multilateral
development institutions is still being formulated. However, as
a country that has rapidly moved from relative poverty to being
a major world economy, it has the potential to bring a useful
lower-income perspective to multilateral discussions and this
should be encouraged. There are also signs that China is taking
a more active role in respect to technical multilaterals such
the WHO and the Global Fund, for example seconding government
staff to work there and investing time in committees and boards.
ISSUE 6: DFID'S
STRATEGY FOR
PHASING OUT
ITS BILATERAL
PROGRAMME BY
2011
15. As discussed above, we believe that
rather than focusing on phasing out its bilateral programme, the
UK government should think in terms of transition to a broader
"China/UK Development Partnership", supporting innovation
and collaboration on key development issues.
ISSUE 7: DFID'S
SUPPORT TO
ADDRESSING GENDER
ISSUES IN
CHINA
16. It is our perception that in the past
DFID's support to Gender issues in China has been something of
add-on to its programmes, and has sometimes been seen as a DFID
agenda, rather than something actively owned by the Chinese government.
If addressing gender issues remains a priority for DFID within
the new Development Partnership, then it would be advisable to
develop a more strategic, mutually-agreed approach. One potential
area for future collaboration could on maternal and child health
issues in China.
Thank you for providing us with the opportunity
to provide inputs to DFID's strategy in China.
Working Group members:
David Daniels, Director, YozuMannion Ltd;
Dr Charlotte Laurence, Senior Associate, YozuMannion
Ltd; and
Dr Selina Namchee Lo, former International Adviser
to National HIV/AIDS treatment program. China CDC.
17 April 2008
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