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In 1970 the UN General Assembly called on the economically advanced countries to provide 0.7% of their income as Official Development Assistance (ODA) by the middle of the decade. To date only five countries have consistently met this target. In 2004 the UK committed to meet the target by 2013. The Government says that it is currently on schedule to do so.
The Government proposes to enshrine in law its commitment to meet the target in 2013 and in each subsequent year. It considers that the target is otherwise vulnerable and that the legislation will help galvanise other donors to meet their commitments as well as offer greater predictability for developing countries about UK aid levels. While the intention of the legislation is widely welcomed, we remain uncertain that it will have the wider impact claimed.
The accountability measures contained in the draft Bill weaken the commitment and provide the Government with an easy excuse for not meeting the target. Governments should not set targets they do not intend to meet and the failure to meet these must be properly explained to Parliament. In such cases the legislation should require the Government to set out its strategy for meeting the target in its Annual Report.
The draft Bill opened the debate about the types of expenditure which may be reported as ODA. It does not propose to make any changes to current practice. However, the 2002 International Development Act stipulates that DFID's expenditure on ODA should have poverty reduction as its primary objective. With increasing pressure to find additional finance for responding to climate change or to new types of security threats, there is a danger that increased amounts of UK ODA will be used for purposes only marginally related to poverty reduction. The Government must take appropriate steps to guard against this whether or not this Bill becomes law.
Our comments in this report should not be read as implying that we do not support the 0.7% target. On the contrary, we consider it to be an important goal for the Government and one for which it should be held to account. The UK already has a high reputation as a donor both in terms of volumes and aid effectiveness which it should maintain and build on.
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