Annual Reprt DIFID

Department for International Development

Annual Report and Resource Accounts 2008-09 Volume I of II

Resource Accounts presented to the House of Commons pursuant to Section 6(4) of the Government Resources and Accounts Act 2000. Departmental Report presented to Parliament by the Secretary of State for International Development pursuant to Section 1 of the International Development (Reporting and Transparency) Act 2006. Report and Accounts presented to the House of Lords by Command of Her Majesty. Ordered by the House of Commons to be printed on 16th July 2009.

London: The Stationery Office HC 867-I

Not to be sold separately £42.55

Cover photography: IVORY COAST Abidjan Cocoa beans being loaded onto a cargo ship at the port. The country is among the world’s largest producers of cocoa. Photographer © Sven Torfinn/Panos Pictures All photographs throughout this report are credited to DFID unless otherwise stated. This is part of a series of departmental reports which, along with the Main Estimates 2009-10, the document Public Expenditure: Statistical Analyses 2009, and the Supply Estimates 2009-10: Supplementary Budgetary Information, present the Government’s outturn and planned expenditure for 2009-10 and 2010-11.

© Crown Copyright 2009 The text in this document (excluding the Royal Arms and other departmental or agency logos) may be reproduced free of charge in any format or medium providing it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown copyright and the title of the document specified. Where we have identified any third party copyright material you will need to obtain permission from the copyright holders concerned. For any other use of this material please write to Office of Public Sector Information, Information Policy Team, Kew, Richmond, Surrey TW9 4DU or e-mail: [email protected] ISBN: 9780102962154

Contents

Foreword by the Secretary of State

2

Chapter 1: Introduction

6

Chapter 2: Delivering poverty reduction

11

Chapter 3: Delivering a global partnership for development

39

Chapter 4: Delivering an efficient and effective organisation

51

Chapter 5: Analysis of departmental expenditure

60

Glossary and Abbreviations

70

1

Foreword: by the Secretary of State This Annual Report sets out the progress made by the Department for International Development over the past year in tackling extreme poverty around the world. The achievements highlighted here have helped to transform lives for the better. Thanks to DFID’s work in 2008, more than three million children have been vaccinated against measles – a disease which continues to claim lives across the developing world. We have helped train over 100,000 teachers, provided clean water to almost a million people and given more than 12 million people access to better sanitation. These achievements build on the progress made over the last decade towards meeting the Millennium Development Goals. Aid increases and debt cancellation have helped to get 40 million more children in school. The number of people with access to AIDS treatment has increased from just 100,000 to over 3 million. The proportion of the world’s population living in poverty has fallen from a third to a quarter. Yet these achievements have also come against a backdrop of both persistent poverty and new challenges. There are still over a billion people around the world living on less than a $1 a day, nine million children die from preventable causes each year, and 70 million children are denied the opportunity to go to school. Now a global recession, triggered by a financial crisis unprecedented in its speed, scale and scope, threatens to trap a further 90 million people in extreme poverty. Climate change threatens the lives and livelihoods of this and future generations. If temperatures continue to rise at current levels, an extra 600 million people will be affected by malnutrition by the end of the century. As many as a third of the world’s poorest people – living in conflict-affected or fragile countries – live in constant fear of violence and lawlessness. The Government’s new White Paper on International Development, Building our Common Future, sets out how the United Kingdom’s Government will respond to these challenges in our efforts to tackle global poverty. It is clear that now is not the time to turn away from the commitments we have made to help in the fight against illiteracy, sickness and hunger around the world. That is why this Annual Report reaffirms that we are meeting promises we have made as part of the global partnership for meeting the Millennium Development Goals.

2

Department for International Development: Annual Report 2009: Volume 1

We will dedicate 0.7 per cent of national income to development assistance by 2013. By 2010/11 our aid is expected to be higher than the 0.56% of national income European target. We will, by next year, have nearly trebled our bilateral and multilateral aid to Africa since 2004. We make this investment because in the 21st century development is not merely a moral cause, it is also a common cause. The success and security of other countries profoundly affects our own success and security. Justice, security and prosperity are indivisable: none of us can fully enjoy them unless we all do. This Government remains committed to building a safer, more secure and more sustainable world – and to delivering real justice for the world’s poorest people.

Rt Hon Douglas Alexander MP Secretary of State for International Development July 2009

Foreword: Secretary of State

3

Key Achievements

Delivered almost

7 million anti-malaria bednets

Trained over

100,000

© Panos pictures

teachers

Trained over

60,000

health professionals

Built or reconstructed

12,000 classrooms

Provided ARV drugs to almost

100,000 people with HIV

Vaccinated over

3 million children against measles

4

Department for International Development: Annual Report 2009: Volume 1

Provided

12.5 million people with better sanitation

Distributed

half a billion

© Panos Pictures

condoms

Provided almost

1 million people with clean water

Built or upgraded

4,500km

of road and maintained a further

6,500km

Provided electricity to almost

200,000 people

Assisted over

12 million people through food security programmes

Source: DFID standard indicator returns covering Public Service Agreement countries 2007/08 5

Chapter 1: Introduction

Aims and objectives 1.1

The Department for International Development (DFID) leads the UK government’s effort to promote international development. DFID’s overall aim is to reduce poverty in poorer countries, in particular through achieving the Millennium Development Goals (MDGs). The Millennium Development Goals

6

MDG 1

Eradicate extreme poverty and hunger

MDG 2

Achieve universal primary education

MDG 3

Promote gender equality and empower women

MDG 4

Reduce child mortality

MDG 5

Improve maternal health

MDG 6

Combat HIV & AIDS, malaria and other diseases

MDG 7

Ensure environmental sustainability

MDG 8

Develop a global partnership for development

1.2

The Comprehensive Spending Review 2007 (CSR 2007) announced a new government performance framework for 2008/11. This includes a set of 30 cross-governmental Public Service Agreements (PSAs) reflecting the Government’s main delivery and reform priorities. DFID leads on delivery of PSA 29 (Reduce poverty in poorer countries through quicker progress towards the MDGs). Our main delivery partners are HM Treasury, the Foreign and Commonwealth Office (FCO), the Department of Energy and Climate Change (DECC) and the Department for Environment, Food and Rural Affairs (DEFRA).

1.3

DFID is also a delivery partner on PSA 27 (Lead the global effort to avoid dangerous climate change) led by DECC and PSA 30 (Reduce the impact of conflict through enhanced UK and International efforts) led by the FCO. DFID contributes to the delivery of PSAs on counter terrorism and migration led by the Home Office. To reflect the breadth of this work DFID has

Department for International Development: Annual Report 2009: Volume 1

set seven Departmental Strategic Objectives (DSO) for the 2008/11 spending period. The DSOs provide an overarching framework for Ministers and the DFID Management Board to drive delivery across the organisation. DFID’s Departmental Strategic Objectives

1 Promote good governance,

2 Promote climate change

3 Respond effectively to

4 Develop a global

5 Make all bilateral and

6 Deliver high quality and

© Panos Pictures

economic growth, trade and access to basic services

partnership for development (beyond aid)

and adaptation measures and ensure environmental sustainability

multilateral donors more effective

conflict and humanitarian crises and support peace in order to reduce poverty

effective bilateral assistance

7 Improve the efficiency and effectiveness of the organisation

1.4

This volume of the report provides a summary of progress against this overarching framework. More specific progress against the MDGs, PSA 29 and DFID’s DSOs are presented in Volume II of this report.

Where we work 1.5

DFID works from two UK headquarters in London and East Kilbride, and from over 50 offices overseas. We have over 2,300 staff, almost half of whom work abroad. Our PSA focuses on progress in 22 countries – 14 in Africa and 8 in Asia. Progress in these 22 countries is at the core of our PSA commitment. The countries we support through our development assistance are indicated on the following world map. Our work also includes building support for development within the UK.

Chapter 1: Introduction

7

Department for International Development: Annual Report 2009: Volume 1

Bolivia

Brazil

Guyana

Georgetown

Barbados

Bridgetown

Liberia

Freetown

Sierra Leone

The Gambia

The boundaries shown on this map do not imply official endorsement by DFID

Pitcairn (UK)

Columbia

Montserrat

The Andes Peru

Ecuador

Central America Belize, El Salvador, Nicaragua Guatemala & Nicaragua

Kingston

Jamaica

Pristina

Accra

Tristan da Cunha (UK)

St. Helena (UK)

Ascension (UK)

Zambia

Lusaka Harare

Angola

Burundi

Kigali

Eritrea

Lilongwe

Tanzania

Yemen Sana’a

South Africa

Pretoria

Lesotho

Swaziland

Maputo

Malawi

Dar es Salaam

Bujumbura

Addis Ababa

Khartoum

Sudan

Ethiopia Uganda Rwanda Kampala Dem. Rep. Kenya of Congo Nairobi

Chad

Moscow*

Jerusalem Iraq Baghdad Occupied Basra Palestinian Jordan Territories

Namibia Zimbabwe

Kinshasa

Ghana Cameroon

Abuja

Nigeria

Niger

Kosovo

Tirana

Albania

Sarajevo

Belgrade

Serbia Chisinau Moldova Bosnia & Herzegovnia

London

East Kilbride

Pakistan

Afghanistan

Kabul

Dushanbe

Rangoon

■ Other DFID programmes

Jakarta

Indonesia

* Representation leading on development policy work

▲ DFID UK Headquarters

Hanoi Vietnam Cambodia

Phnom Penh

Bangladesh

Dhaka Burma

■ DFID overseas offices

Beijing People’s Republic of China

Kathmandu

Sri Lanka

India

Delhi

Nepal

Islamabad

Tajikistan

Bishkek

Kyrgyz Republic

Russia

■ 2008–11 PSA focus countries

Key

DFID’s PSA countries and other DFID programmes (as at 31 March 2009)

e

Mozam biq u

lia

So ma

8

Legislation 1.6

DFID operates under the International Development Act, which came into force in 2002, and establishes the legal basis for UK development assistance. This means the Secretary of State for International Development can provide development assistance for sustainable development and welfare, provided they are satisfied this assistance is likely to contribute to poverty reduction.

1.7

The 2006 International Development (Reporting and Transparency) Act strengthens the accountability of the UK Government in delivering its pledges to help the world’s poorest countries and people. The act requires DFID to report annually to Parliament on development policies and programmes, the provision of aid to partner countries and the way it is used. This report and associated annexes discharges our responsibilities under the Act, setting out DFID’s activities and achievements in the year from April 2008 to March 2009.

Budget 1.8

In 2008/09 DFID was directly responsible for £5.7 billion of UK public expenditure. Almost all of this expenditure is classed as Official Development Assistance (ODA) – official financing or other forms of assistance given to developing countries to promote and implement development. In total, including spending by other government departments, UK ODA reached £6.3 billion in 2008 or 0.43% of Gross National Income (GNI).

1.9

DFID expenditure is expected to be £6.8 billion in 2009/10 and £7.8 billion in 2010/11. The 2010/11 budget takes account of an additional £155 million efficiency savings identified in the April 2009 budget. However, because the CSR granted DFID substantial annual budget increases, the total 2010/11 DFID budget will still be over £2.3 billion higher than in 2007/08 and the government’s projection for total ODA remains at £9.1 billion in 2010/11.

Figure 1: DFID aid expenditure 2008/091 Global sector programme £578mn

World Bank £574mn

UN £254mn

Rest of World £85mn

Other multilaterals £297mn

EC £1,123mn Asia £1,088mn

Africa £1,536mn

Multilateral £2,248mn

Bilateral £3,286mn

DFID £5,534mn

1. These figures are derived from DFID’s statistical systems and are consistent with those figures reported to the Development Assistance Committee (DAC). Source: See Annex A, Volume II, for more details on DFID aid expenditure statistics

Chapter 1: Introduction

9

1.10

Since the Gleneagles commitment of 2005, UK ODA to sub-Saharan Africa (SSA) has risen significantly. DFID’s aid to SSA is projected to reach £3.4 billion by 2010/11, almost three times 2004/05 levels.

4500

45%

4000

40%

3500

35%

3000

30%

2500

25%

2000

20%

1500

15%

1000

10%

500

5%

% of Total DFID aid

£m

Figure 2: DFID ODA to sub-Saharan Africa

0%

0 2004-05

2005-06

2006-07 Bilateral

2007-08

Multilateral

2008-09

2009-10

2010-11

% of total DFID spend

The context “DFID is well-placed to respond to the new challenges ahead both in terms of the increased scrutiny attached to a rising aid budget and in providing global leadership at a time of economic crises and weakening international consensus on poverty reduction.” DAC mid-term review of the United Kingdom, November 2008

10

1.11

In 2008/09 slowing economic growth, diminished access to credit as well as high energy and food prices have meant tougher conditions for many developing countries. There have also been early signs that support for aid spending amongst the UK public is diminishing. The poor are worst affected by the global economic downturn and are likely to suffer most as a result of climate change, conflict and fragility.The economic downturn has already begun to have an impact on some donors’ aid commitments.

1.12

Our new White Paper Building our common future is our major policy response to this challenge and with our growing budget we are well placed to respond. Our internal change programme “Making it Happen” is designed to help rise to these challenges and further improve the efficiency and effectiveness of the organisation.

Department for International Development: Annual Report 2009: Volume 1

Chapter 2: Delivering poverty reduction There are still over a billion people around the world living on less than 1$ a day. Eliminating world poverty will remain our priority. 2.1

Poverty reduction is at the heart of DFID’s work and we remain committed to delivery of the MDGs.

2.2

As a result of the economic crisis, growth in emerging and developing economies is expected to slow sharply from 6.1% in 2008 to 1.6% in 2009. Although aggregate poverty is also expected to fall over the medium term, the crisis may result in some 90 million more people living in extreme poverty after 2010 than previously anticipated. While the overall MDG target of halving the proportion of people living on less than $1 a day remains within reach, as a result of huge economic growth in South East Asia, a large share of the world’s poor (43%) remain in the South Asia region. In SSA there has been slower progress, with 50% of the population in 2005 living in extreme poverty compared with 55% in 1990. Only half of DFID’s priority countries (where data are available) are assessed as being on track to meet this MDG target (to halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day). Population below $1 a day in DFID PSA countries

Target: Halve, between 1990 and 2015, the proportion of people living on less than a dollar a day. Key

Chapter 2: Delivering poverty reduction

■ ■ ■ ■

No data

■

On-track

Severely off-track Off-track Off-track but improvement

11

DFID response to economic crisis DFID country programmes are working with partner governments to monitor the specific impact of the crisis. As with the food and energy crises earlier in 2008, we will work to reduce vulnerability to shocks, mitigate their impact through targeted support and be flexible in redeployment of programmes. Re-allocated resources for country programmes in 2009/10-2010/11 have already been provided as follows: ■

£15m for social protection in Ethiopia.

■

Additional funds for social protection in Bangladesh and Mozambique.

■

Scale-up of emergency aid in Kenya and Ethiopia.

■

£2m brought forward for education in Bangladesh to address increased costs caused by the economic crisis.

■

An adjustment, through partial credit guarantee, to the Pakistan Financial Inclusion Programme, and further work on social protection programmes.

The latest IMF projections are for slower growth in Africa (1.7% in 2009 compared with 5.2% in 2008). DFID will make additional investments in infrastructure to help sustain growth prospects, including £67m to reduce bottlenecks and increase trade flows along the North-South Corridor; and £20m for other new regional infrastructure projects. DFID is also increasing investment in basic services, in line with commitments previously made for education, water & sanitation and health. Examples include £26.5m for education and health services in Kenya and £17m for similar purposes in Ethiopia.

Delivering economic growth Economic Growth is the most powerful tool for reducing poverty. DFID has significantly stepped up its support to economic growth in developing countries over the last year. 2.3

DFID’s regional programme continues to support economic growth and helps lift people out of poverty. ■

■

■

■

■

12

In Nepal, the UK supports inclusive economic growth programmes that provide employment for thousands of people. This support reaches a total of 225,000 people annually and directly increases their incomes. Over the next 3 years we aim to expand our current work on jobs and growth so that at least 500,000 people benefit annually from these programmes. In Afghanistan, DFID has helped provide credit to the poorest by providing £40.5 million to the Microfinance Investment and Support Facility for Afghanistan between 2002 and 2009. Over $600 million worth of small loans have now been made to over 450,000 entrepreneurs to help them set up or expand small businesses. Approximately $165 million of this is attributable to DFID funding. In Malawi, DFID support has increased access to affordable farming inputs, such as seed and fertiliser, for 60% of all Malawian households which has helped to increase food production and improve incomes.The economy grew by 9.7% in 2008 and is predicted to grow by 7% in 2009. DFID support to Mozambique has helped to upgrade the country’s road network – the percentage of roads in good or fair condition increased from 40% in 2001 to 69% in 2007. Technical assistance to the Ministry of Finance (Budget Office), the Federal Debt Management Office, and the Central Bank of Nigeria has improved macro-economic management; growth in the economy excluding the oil sector was 7.7% in 2008.

Department for International Development: Annual Report 2009: Volume 1

■

■

■

■

In Rwanda, DFID has helped the government carry out trials of land tenure rights that are accessible to the poor. This will give 14,900 landholders written title. There are now plans to extend the land tenure rights process to an estimated 7.9 million landowners nationwide. Since 2000, DFID India has supported the rural development programmes in Madhya Pradesh, Orissa and West Bengal which have helped raise more than 2 million people out of poverty. In South Africa, DFID has contributed £10.5 million to the Making Financial Markets Work for the Poor Programme (2002/10) which has helped make banking more accessible to poor people – the Mzanzi scheme has allowed 5.5 million people to open low-cost, readily available bank accounts. Also in South Africa, DFID support in the Limpopo province, since 2006, has helped small growers to become certified as producers by major European retailers. This support has resulted in a ten fold increase in the production of oranges to 4,500 tonnes and £120,000 increase in income.

2.4

DFID works across the international system to increase support for environmentally sustainable long-term growth in poor countries by encouraging others to do more on growth and contributing to institutions that work on growth. For example, DFID encouraged the World Bank to increase investment in infrastructure projects. In 2008, the World Bank invested $11.4bn, up $1.5bn from 2007.

2.5

The African Development Bank (AfDB) has made a commitment in its Medium Term Strategy that more than half of all financing in 2009/2011 will be for infrastructure (such as roads, water supply, sanitation facilities, power grids and telecommunications). The AfDB has created an Emergency Liquidity Facility worth $1.5 billion to provide fast and exceptional support to African countries and private sector operations across Africa. Harakat (formerly the Afghanistan Investment Climate Facility) Harakat’s mission is to make Afghanistan a better place to do business. The programme helps to reduce red tape, increase access to credit, improve the use of land as an asset and facilitate joint public-private investments in new infrastructure.

Harakat is still in its infancy but is expected to last for seven years. So far, it has approved several programmes for funding, including a hotline for traders to report insecurity and corruption. It has also funded the first assessment of the ease of doing business in Afghanistan in four years.

2.6

DFID is also contributing up to £17 million over four years to the Investment Climate Facility. This is a public-private initiative, which donors, through international and domestic corporations, collaborate with African governments and regional organizations to improve the investment climate at the national, regional, and continental levels.

2.7

In November, DFID agreed to contribute £7 million over three years to the IFC investment climate programme in Yemen. This programme aims to improve the business environment

Chapter 2: Delivering poverty reduction

© Panos Pictures

Harakat was launched by the International Development Secretary in June 2008 and DFID will provide £30m in funding until 2013.

13

through regulatory reform, training banks for lending to Small to Medium Enterprises (SMEs) and giving management training to SME entrepreneurs. 2.8

DFID supports Development Finance Institutions (DFIs) which are publicly owned organisations who lend and make grants to private sector businesses in developing countries. DFID is a shareholder in several DFIs including the CDC group, the UK’s own DFI. CDC investments currently support some 600 businesses, employing almost one million people directly, supporting the lives of approximately four times that number indirectly and paying an estimated £250 million in taxes and other charges to local governments each year. CDC made new investments of over £430 million in 2008, despite experiencing a difficult year as financial markets fell across the world. They also attracted over £1.2 billion of other investors’ commitments into the markets in which CDC invests. How does CDC invest? CDC provides funding to diverse businesses in the developing world. Two examples are:

© CDC

Umeme, Uganda: Upgrading an ailing power distribution network

Umeme is the principal power distribution company in Uganda. Formerly state owned, Umeme’s network covers a significant proportion of Uganda and includes 230,000 poles and 17,000 km of overhead cable. Over the last 4 years CDC has invested $40m helping Umeme upgrade and improve key areas of their business. Much of the electricity distributed by Umeme comes from hydropower, which is much cleaner than other alternatives, such as oil or coal. Umeme employ 1165 people who service 88,000 customers.

© CDC

Athi River Steel, Kenya: Providing income generation opportunities for the poorest and improving environmental management of steel production

Established in 1996, Athi River Steel is a steel smelting company which produces items such as steel spring products and building materials from recycled scrap metals. Over the last 3 years CDC has invested $7m. Athi River Steel now employs 900 people and in 2008 their annual turnover was $16m with $1.1m paid in taxes between 2006/08. Athi River Steel estimate there are upwards of 150,000 people throughout Kenya who get income from sales of scrap metal to scrap metal dealers.

14

Department for International Development: Annual Report 2009: Volume 1

2.9

In 2008 DFID agreed a new Investment Policy for CDC which requires more than 75% of total investment by CDC until 2013 to be in Low Income Countries (LIC) and more than 50% to be in SSA.

2.10

The Private Infrastructure Development Group (PIDG) was set up in 2002 as a multi-donor organisation to encourage economic growth and poverty reduction through responsible private sector investment and involvement in infrastructure services. The PIDG facilities have been successful in helping to attract $9 billion of private investment commitments to infrastructure. The projects will provide over 16 million people with new infrastructure services such as energy, transport and telecommunications. The Global Partnership for Output Based Aid DFID has been a key contributor to innovative development funds, such as the Global Partnership for Output Based Aid (GPOBA). GPOBA has initiated 19 projects which have already delivered services to over 250,000 people and will ultimately provide 2.7 million people with water, sanitation, energy and telecommunication services. 86% of all expected beneficiaries live on under US$1 per day, and 99% on under US$2 per day.

2.11

The Secretary of State launched the International Growth Centre (IGC) in December 2008. DFID has committed £37 million over the next three years to this initiative which will provide policy advice to help countries create high sustained economic growth. It will be run by the London School of Economics and Oxford University. It has begun work in Ghana, Tanzania and Ethiopia and the initiative will be extended to a total of 15 countries from SSA and South Asia over the coming three years.

Delivering social protection and food security 2.12

DFID has been influential in raising support for social protection schemes that are affordable even in low income countries. This culminated in the G20 London Summit affirming commitment to a Rapid Social Response Programme in the World Bank. The UK is contributing £200 million to support the effort to help countries scale up or extend existing social protection mechanisms, or develop new systems and capacity to protect the poorest from the impact of world recession. Examples of other specific DFID responses to protect the most vulnerable citizens from the impact of the economic crisis include: ■

■

■

■

Several social protection initiatives were started in Ghana in 2008, including a government scheme that provides small sums of money as a form of social welfare to 8,200 families in the poorest part of the country. The Government of Pakistan’s Benazir Income Support Programme launched in September 2008, has to date helped 1.9 million families receive income support payments (equivalent to £10 per month). In Bangladesh, a regular grants scheme over nine years from 2004/05 will help lift an estimated 5.5 million people out of poverty. The Productive Safety Net Programme (2005-2009) in Ethiopia is providing cash and food for 7.5 million chronically food-insecure people who previously depended on emergency relief for their survival.

Chapter 2: Delivering poverty reduction

15

2.13

In early 2008 an increase in fuel costs coupled with concerns about the supply and demand of main staples created a food crisis. The UK has championed an ambitious and coordinated international response to this crisis. At the G8 summit in Toyako in July 2008 the G8 pledged US$10 billion for tackling hunger and called for the establishment of the Global Partnership for Agriculture, Food Security and Nutrition. The design of this Partnership was launched at the Madrid Summit on Food Security in January 2009. Addressing food security needs DFID Ghana is funding Care International and Action Aid, to address the immediate food needs and medium-term livelihood security of over 100 affected communities still struggling to recover from the floods and food price rises. Alima Adamble has a household of 15, including grown-up sons and grand-children. Her family farm is in a valley, so when the rains started, it carried away all their crops. Now, in order to survive, she sells water from door to door in the town, while her husband and son both sell firewood. After obtaining seeds at the seed fair, she hopes to plant the ground nuts early to ensure a good harvest for the next season.

2.14

The EU’s three-year Food Facility launched in December 2008 was strongly supported by the UK. €1 billion was allocated to help support poor countries most severely affected by the increases in food prices. The facility’s flexibility and responsiveness allows countries hit by food price inflation to prioritise how they use the resources. Bilaterally, the UK has committed nearly £900 million in response to the Food Crisis since the start of 2008.

2.15

The World Bank has also launched a Global Food Response Programme (GFRP) to fast-track up to $1.2 billion of support. Grants approved under this programme include $8 million for the rehabilitation of around 500 small, traditional irrigation schemes in Afghanistan, which will be critical to the recovery of the country’s agriculture.

2.16

In response to the Food Crisis, the AfDB reallocated project resources and restructured portfolios. For example, in Ethiopia the Bank reallocated $61 million to savings in fertilizer and other agricultural inputs.

Increasing participation in global trade “The United Kingdom has long understood [the interrelationship between trade opening and development] and DFID stands out as a global leader in advocating and actively promoting trade as an engine for growth and development.” Pascal Lamy, Director-General of the World Trade Organization Trade drives growth. Rapid, sustained growth is the most direct route to reducing poverty. By working together, governments, consumers and the private sector can make sure poor people in developing countries are able to earn their way out of poverty.

16

Department for International Development: Annual Report 2009: Volume 1

Figure 3: Proportion of duty free imports (excluding arms and oil) into developed countries

100% PSA countries (22)

90%

Low income countries

80% 70% 60% 50% 40% 30% 20% 10% 0% 1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: World Trade Organisation/United International Trade Centre: Market Access Indicaator (www.mdg-trade.org)

2.17

The economic downturn has led to a slowdown in global trade and talks of protectionism. Through these difficult times, the UK continues to press the international community for outcomes that reflect developing countries’ priorities and support increasing developing country participation in global trade. This includes backing programmes that tackle the trade finance shortage caused by the downturn. DFID and the Department for Business, Innovation and Skills (BIS) Trade Policy Unit has been working with the International Financial Corporation (IFC) to promote its Global Trade Liquidity Programme (GTLP), designed to provide finance to capital constrained banks for trade finance to developing countries. The UK made a joint DFID/CDC contribution of £245 million (£200 million from DFID and £45 million from the CDC group) to the first phase of the GTLP.

2.18

The first UK Aid for Trade Strategy was launched in 2008 and sets out what the UK will do to help developing countries become more competitive traders. 2008 also saw the launch of the Enhanced Integrated Framework, set up to reinforce Trade Ministries in Least Developed Countries (LDCs).

Aid For Trade includes building productive capacities in sectors like agriculture

Chapter 2: Delivering poverty reduction

17

2.19

The UK’s support to Fair Trade has helped deliver another year of growth in sales for 2008 above 40% (to £700 million in the UK and over €2 billion worldwide). We continue to champion practical enforcement of workers’ rights through the Ethical Trading Initiative, a leading authority in working conditions that holds companies to account for practices throughout the production process and the trading chains that supply them.

2.20

DFID is committed to supporting infrastructure investment to facilitate growth and trade, and we are on track to deliver on our Aid for Trade commitments. This includes a £100 million contribution to the North South Corridor Project which will upgrade the transport systems servicing eight countries in East and Southern Africa. DFID’s leadership has helped secure $1.2 billion of commitments from other donors. We also support a number of other initiatives that address both national and regional constraints to integration such as:

2.21

■

£575,000 to the Infrastructure Consortium for Africa;

■

£20 million to the Regional East Africa Integration Programme;

■

£15 million to the European Investment Bank’s EU Africa Infrastructure Trust Fund and;

■

£25 million to the East Africa Trade and Transport Facilitation.

As a result of continued lobbying by the UK, significant progress was made in 2008/09 in securing development friendly trading arrangements between the EU and African Caribbean and Pacific (ACP) countries. The first comprehensive Economic Partnership Agreement (EPA) was signed in October 2008 between the EU and CARIFORUM states. Interim EPAs with Cote d’Ivoire and Cameroon were also signed in 2008/09. The remaining ACP countries who initialled EPAs at the end of 2007 are expected to sign their interim and regional agreements in 2009/10. These agreements put the trading relationship between the EU and ACP on a sustainable and development friendly footing, allowing duty and quota free access for ACP products into the EU.

The G20 London Summit – supporting developing countries DFID was at the heart of a cross Government commitment to ensuring a pro-development outcome for the poorest countries at the G20 Summit in London.

18

■

$50b was made available to low income countries to safeguard development and boost growth

■

$100b of additional lending was committed by the multilateral development banks for rapid investment in infrastructure and social programmes

■

Greater focus was given to the social impact on the most vulnerable, including a Rapid Social Response Fund to which DFID is contributing £200m and the establishment of a UN Global Vulnerability Alert to provide real-time information on the impact of the downturn on poor communities

■

Agreement was reached to establish a process on tax information exchange to ensure that developing as well as developed countries have access to tax information and allow tax avoidance to be more effectively tackled

■

Leaders made a commitment to step up the pace on reform of the IMF and World Bank, including the need for emerging and low income countries to have greater voice and representation in these organisations

Department for International Development: Annual Report 2009: Volume 1

Delivering access to quality education Education is both a right and a route out of poverty. People who have been to school are more likely to find work, look after their health and demand that governments act in their interests. 2.22

In almost all regions the net enrolment ratio in primary school is now over 90%. But there are still 75 million children, more than half of them girls, who do not go to primary school. Latest data show that among DFID’s 22 priority countries, 14 are on-track to meet the MDG target. This is an improvement from 12 countries in last year’s assessment. Primary school enrolment in DFID PSA countries

Target: Ensure that, by 2015, children everywhere will be able to complete a full course of primary schooling (net enrolment ratio = 100%). Key

■ ■ ■ ■

No data

■

On-track

Severely off-track Off-track Off-track but improvement

2.23

The government remains committed to its long-term spending target for education of £8.5 billion over the ten year period to 2015/16, and spending will reach £1 billion per annum by 2010. We also made a commitment to help 8 million children get access to an education or enrol at school in Africa by 2010.

2.24

DFID’s interventions are having a substantial impact: our funding through government systems alone is estimated to support around 5 million children in primary school. Reviews of DFID’s larger education projects show significant improvements in access to education, with all targets for net enrolment being met or on track to be met by project completion. ■

■

In 2008/09 in Democratic Republic of Congo (DRC), DFID paid for mandatory school insurance premium in state school, resulting in a reduction in school fees for around 8 million students. In Malawi, DFID funding built 544 new classrooms accommodating 46,000 primary school children in 2007/08.

Chapter 2: Delivering poverty reduction

19

■

■

■

■

■

■

■

During 2008, DFID Rwanda paid the education cost for over 2.4 million children in primary and lower secondary schools, recruited almost 2000 additional teachers and helped construct over 2,300 classrooms. Currently, there is a 94% enrolment rate in Rwanda for both boys and girls. In Tanzania, DFID has supported a fourfold increase in spending on education, half of which is for primary schools. 4,000 extra primary schools have been built and DFID support has helped increase the number of teachers by 40%; the net enrolment rate in 2008 is 97%. In Bangladesh, the UK has helped bring a million children into NGO schools since 2004. We have also helped recruit 14,000 new teachers and build 15,000 new classrooms; primary school net enrolment has increased to 91% in 2007 from 84% in 2000. DFID is supporting the quick expansion of schools in India through the Sarva Shiksha Abihyan programme, which has established 250,000 new schools between 2003/04 and 2008/09. In 2007/08 DFID Nepal funded the Education for All Programme which helped to construct 4,670 new classrooms, rehabilitate 1,850 classrooms, and improve the water and sanitation facilities in 2,372 schools. Financial support from DFID Pakistan to the North West Frontier Province, in 2009, is helping to provide free textbooks to 4.3 million primary and secondary school children, and stipends for 300,000 girls in secondary school. This is expected to increase the numbers of girls progressing from primary to middle school. In Nigeria, a £25 million DFID grant to UNICEF helped implement a Girls Education Project in six northern states, leading to a 15% increase in girls’ enrolment between 2005 and 2007. A £12.1 million grant is being provided for the second phase of the project. DFID support for community level projects through the National Solidarity Programme in Afghanistan

Her school was destroyed during the war, but has now been rebuilt by the National Solidarity Programme (NSP), which the UK has supported with £32m between 2003/09. The NSP has financed over 47,000 community level projects since 2003.

20

2.25

Our approach to education is based on international evidence of what works. DFID engages in country-led processes that strengthen developing countries’ own education systems. We invest across the whole education sector with a particular focus on primary education, and increasing the proportion of girls who access education.

2.26

DFID uses UK membership of major political blocs and shareholdings in multilateral development institutions to shape and reform the multilateral system and to influence the volume and nature of resources available for education.

Department for International Development: Annual Report 2009: Volume 1

© Panos Pictures

Ten-year old Zarmina is too young to remember life under the Taliban, but she and her family suffered during that time. They had to leave their village and she and her sisters were stopped from going to school. After the fall of the Taliban, the family returned to their village and Zarmina returned to school.

2.27

DFID actively supported the Global Campaign for Education to launch a new Education Partnership “Class of 2015” at the UN High level Event on the MDGs in September 2008. The Education Partnership event delivered more than $4.5 billion of pledges and commitments for education, including $450 million for the Education for All Fast Track Initiative (FTI). At the high level event DFID pledged a further £50 million to the FTI, adding to the £150 million already committed. The UK led a Task Team to develop the process and timing for the replenishment of funds needed by the FTI for 2009/10 and subsequent years.

Delivering gender equality Poverty will not come to an end until women have equal rights with men. The world is unequal and it is most unequal for women and girls. Most of the poorest people in the world are women and part of what makes them poor is the discrimination they face purely because of their gender. 2.28

Girls’ enrolment in primary school has increased faster than boys’ in all developing regions since 2000 and around two thirds of all developing countries, including 17 of DFID’s priority countries have achieved parity at the primary level. Ratio of girls to boys in primary school in DFID PSA countries

Target: Eliminate gender disparity in primary education by 2015. Key

2.29

■ ■ ■ ■

No data

■

On-track

Severely off-track Off-track Off-track but improvement

However, in Western and Central Africa where high repetition and low retention rates are common, girls in particular fail to enrol and stay in school. Elsewhere, progress on gender equality remains slow: two thirds of women in the developing world work in vulnerable jobs as own-account and unpaid family workers. And although women are gaining some ground in political decision-making, progress is erratic and marked by regional differences.

Chapter 2: Delivering poverty reduction

21

2.30

Gender equality is at the heart of what DFID does. The Gender Equality Action Plan introduced in 2007, is yielding real progress. Helping women find work (Challenging Frontiers of Poverty Reduction, Bangladesh) The Challenging the Frontiers of Poverty Reduction programme allows poor women to earn their way out of poverty. The women are provided with land, money, training, livestock and seeds to set up their own businesses. They receive a regular cash allowance to help during the start up phase of their business. They also receive access to essential health care, free legal services as well as training to educate them about their rights. Following a successful first phase that benefited 100,000 women, the UK has committed £75m to a seven-year second phase, which aims to help a further 800,000 extremely poor women and their households. So far 285,000 women have benefited under this second phase.

■

■

■

■

■

■

In Ethiopia, DFID’s contribution to the Protection of Basic Services grant has helped put an additional 2 million girls into school since 2004/05. There are now 9 girls for every 10 boys in primary school compared with 8 girls for 10 boys three years ago In Ghana, our support to the Women in Law and Development in Africa has helped strengthen the voice of women in politics and raise the profile of gender issues in the run up to the 2008 general election. There are now 15 female ministers and 4 key political positions held by women in Ghana, including the Speaker of Parliament and the Minister of Justice As a result of DFID’s influence, free secondary education was introduced in Uganda in 2007 – the number of girls enrolled in the first year of secondary school has increased by 31% since the introduction of this policy In India, with DFID’s backing, the Government of India’s Education Women’s Equality programme (Mahila Samakhya) has reached 1 million women in 9 states during 2007/08.The programme helps women ensure their daughters go to school and promises better equality in society. In January 2009, DFID funding helped UNDP support a fair and democratic election in Bangladesh. 70 million people voted – including 46 million women and first time voters – giving the first elected government in seven years a strong mandate to deliver change. DFID support has also helped UNDP get more women into the police force in Somalia. The first women’s Lawyer Association was also established, providing legal assistance to victims of rape and domestic violence.

Delivering better health services Poor people’s health is a top priority. Healthy people can look after their children, hold down jobs, and help their country to grow. 2.31

22

Latest global data show that, for the first time since records began, deaths among children under five years old fell below 10 million. The number of DFID PSA countries on track to achieve the MDG has also risen from 4 to 7. But progress on maternal mortality and HIV and AIDS is far slower with little movement either globally, or specifically in DFID priority countries.

Department for International Development: Annual Report 2009: Volume 1

Under 5 mortality rates

Target: Between 1990 and 2015, reduce the under 5 mortality rate by two-thirds Key

■ ■ ■ ■

No data

■

On-track

Severely off-track Off-track Off-track but improvement

Maternal mortality ratios in DFID PSA countries

Target: Between 1990 and 2015, reduce the maternal mortality ratio by three quarters Key

Chapter 2: Delivering poverty reduction

■ ■ ■ ■

No data

■

On-track

Severely off-track Off-track Off-track but improvement

23

HIV prevalence in DFID PSA countries

Target: By 2015 to have halted and begun to reverse the spread of HIV & AIDS Key

■ ■ ■ ■

No data

■

On-track

Severely off-track Off-track Off-track but improvement

Delivering improved health outcomes in Malawi Within DFID’s health portfolio, the Malawi Health Sector Wide Programme is among several which have improved their performance over the last few years. DFID is the largest donor to this programme, providing £109m between 2004-11, around 19% of total health sector funds. This funding has enabled DFID to contribute to the following improvements in the health sector since 2004:

2.32

there are now 40% more doctors and 25% more nurses working in the public health system;

■

the number of HIV positive Malawians alive and on treatment has increased from 3,000 to 147,000 (up to two-thirds of those who need it);

■

skilled attendance at delivery has increased from 38% to 45%;

■

the Maternal Mortality Ratio has fallen from 984 per 100,000 live births, to 807;

■

based on this decline in the Maternal Mortality Ratio, the health service programme has saved an estimated 1,000 mothers from dying in childbirth each year.

DFID has contributed to a number of recent successful health outcomes in partner countries. ■

■

■

24

■

DFID DRC has bought and distributed 1.4 million bednets which have reduced the risk of malaria for over 6 million people. In Kenya, DFID support has helped provide home-based care to 64,000 living with HIV and AIDS and 110,000 orphans and vulnerable children. Social marketing of condoms (172 million from 2003-2009) has averted 85,000 cases of HIV. DFID, through the £30 million DFID Health Commodities Project, has provided drugs and medical equipment to a total of 1,000 health facilities in six Nigerian States since 2006. Primary Health Care centres supported by this project have shown a 58% increase in utilisation within one year of first receiving DFID support. By the end of the project in Department for International Development: Annual Report 2009: Volume 1

November 2009, a total of 1,468 facilities will have been supported by DFID, ensuring the availability of drugs for an estimated 24 million outpatient consultations per year. ■

■

■

In Pakistan over 25% of the funds of the Lady Health Workers’ (LHW) ongoing national scheme are provided by DFID, who has provided funding since 2003. The LHW promotes women health workers and there are now over 95,000 LHW, 75,000 of them in remote areas. Under-5 mortality rate has reduced from 130 per 1,000 live births in 1990 to 94 per 1,000 live births from 2004-06. In Cambodia DFID’s contraceptive commodities social marketing programme supports the Cambodian Government’s 100% condom use programme. The programme is funding 91% of all condom distribution in Cambodia and has contributed to the rapid increase in condom use. From 2007-2009 DFID helped the government of Nepal phase in free health care for essential health services. As a result, access to emergency obstetric care has increased from 18% to 25% in 2008/09. Improving access to vital treatment In Malawi, Edith Mkwanda first fell ill in 2000 after delivering a baby who died five months later. She was diagnosed with tuberculosis and HIV. Edith is now one of 147,000 people alive and on ART1 (anti retroviral treatment), and lives a fully productive and healthy life. After dropping out of school for two years to look after her, Edith’s 11-year old daughter Pronia has re-enrolled in school.

2.33

In September 2008 DFID launched a new strategy which sets out the way that the UK Government will work to improve the health of the world’s poor population. The five-year plan highlights the critical health challenges that the UK and the rest of the world face and provides a clear set of actions to respond to them.

2.34

Recognising that health is a global issue, with problems in poor countries impacting upon the lives of people in the UK, the strategy looks in particular at making world health more secure, establishing strong health systems within individual countries, enhancing the effectiveness of international health organisations, supporting fairer trade between countries, and improving the use of evidence to shape new policies.

2.35

Also addressed in the plan are new and neglected areas such as climate change, emerging diseases, the links between health, foreign policy and national security, and non-communicable diseases in low and middle income countries.

2.36

The UK is committed to spend £6 billion on health systems and services over seven years to 2015, in addition to the previously announced £1 billion commitment to the Global Fund for AIDS, TB and Malaria. We continue to support the International Health Partnership (IHP+) to help build and improve access to national health systems in some of the poorest countries in the world, as well as other initiatives tackling health issues. For example, universal free health care in Nepal has led to a significant increase in use of health services at health posts.

1

Malawi Heath Management Information System (HMIS); 2008

Chapter 2: Delivering poverty reduction

25

26

2.37

DFID has committed £40 million to the Affordable Medicines Facility for Malaria (AMFm) to increase access to new treatments. We have also committed £100 million over 5 years to fund polio eradication and £50 million for neglected tropical diseases. We are supporting the Medicines Transparency Alliance which was launched in 7 pilot countries incrementially from May 2008. This alliance aims to improve access and affordability of medicines for the one-third of the world’s population unable to access essential medicines.

2.38

In 2008, DFID contributed £20 million to UNFPA which helped provide sixty countries with contraceptives, including two new types of contraceptive for women, giving men and women more ability to plan pregnancies.

2.39

Improving the health of poor people is essential to help meet the MDGs and DFID supports a growing number of innovative new financing approaches to deliver better health results.

2.40

As well as £30 million core funding to the Global Alliance for Vaccines and Immunisation (GAVI) during 2006-08, DFID supports two major new innovations through GAVI: the International Finance Facility for Immunisation (IFFIm), which raises money on international capital markets to immunise children in the poorest countries; and a $1.5 billion pilot for an Advanced Market Commitment (AMC) to incentivise the production by pharmaceutical companies of effective vaccines against pneumococcal diseases, which cause around 1.6m deaths annually. The UK has committed £1.38 billion over 20 years for IFFIm and will provide $485 million over 11 years to this pilot AMC.

2.41

DFID also contributes to innovative funds and partnerships such as the Global Fund to fight AIDS, Tuberculosis and Malaria (GFATM); the international drug purchasing facility (UNITAID); the Taskforce on Innovative International Financing for Health Systems; and the International Health Partnership. GFATM has committed $15.6 billion in 140 countries to support large-scale prevention, treatment and care programmes against the three diseases. These programmes have put more than 76.5 million people in the poorest countries on treatment for HIV and AIDS, tuberculosis and malaria.

2.42

The High Level Taskforce on Innovative International Financing for Health Systems, was established by the Prime Minister and World Bank President Robert Zoellick in September 2008, to explore new sources of finance to help developing countries achieve the health MDGs. The Taskforce recommendations, agreed in May 2009, include a menu of options to help raise additional resources for health systems (enabling donors to choose which they elect to back) and recommendations on improving delivery channels and ensuring effective monitoring and accountability.

2.43

The UK has led international efforts to draw up, for the first time, a Maternal and Newborn Health Consensus. The Consensus framework aligns current international momentum in politics, advocacy and finance into concrete co-ordinated action for developing countries, donors and international institutions alike to advance progress in maternal and newborn health, the most off-track elements of the MDGs.

Department for International Development: Annual Report 2009: Volume 1

Delivering clean water and sanitation Water and sanitation is a cornerstone of development, underpinning all of the MDGs, in particular those concerning health, education and economic growth. But most of the world’s poorest countries have to cope with high rainfall variability and minimal infrastructure to store and distribute water. 2.44

Global targets on access to water remain within reach, although only 8 of DFID PSA countries are currently on track. Access to clean water in DFID PSA countries

Target: By 2015, halve the proportion of people without sustainable access to safe drinking water Key

2.45

■ ■ ■ ■

No data

■

On-track

Severely off-track Off-track Off-track but improvement

DFID launched a new Water and Sanitation policy in October 2008, which committed us to focusing on sanitation – one of the most neglected MDGs – and promoting better management of water resources across the major regions in Africa and South Asia. DFID has committed to provide £200 million by 2010/11 to address the serious water and sanitation challenges that condemn people in the developing world to poverty, hardship, disease and death, and help people to adapt to a changing climate. Increasing access to clean water

Rhoda Swedi was abandoned by her husband, and was able to open a food kiosk thanks to the availability of water. With the income she gets she is now able to feed her children, send them to school and take them to the hospital when needed.

Chapter 2: Delivering poverty reduction

© Water Aid, Tanzania

In Kashishi village, Tanzania, wells and water pumps installed by WaterAid with DFID support helped to reduce cases of water borne diseases and also enabled women to participate in economic activities.

27

2.46

In 2008/09, we supported country water and sanitation programmes that have made a real difference to people’s lives: ■

■

■

■

■

■

■

In Kenya, we are supporting the Government’s Education Sector Support Programme, which includes a water, sanitation and hygiene (WASH) element and will benefit 600,000 children across 4,500 schools. We helped to construct new toilet facilities in 2,652 public primary schools, including separate cubicles for girls. In Ethiopia, our contribution of £75 million over 5 years to the World Bank’s Water Supply and Sanitation programme is being used to construct new water and sanitation facilities in 200 districts and 87 small towns. In Sierra Leone, DFID’s contribution of £32 million over 5 years to a joint UNICEFGovernment led programme has already provided sanitation to 144 communities and latrines that are benefiting some 188,000 people. For the past three years in Malawi, DFID has delivered improved sanitation at over 400 schools reaching nearly a million pupils. From 2006 DFID Sudan has been the principal donor to the Basic Services Fund. The Fund has provided 219 boreholes and access to safe drinking water for 176,000 people, and 1193 latrines benefiting nearly 12,000 people with improved sanitation. In Tanzania DFID support to the AfDB is helping provide UAC15.5 million ($23.25 million) to the Monduli District Water Project to provide villages with the infrastructure and expertise for a sustainable water supply and sanitation system for people and livestock. UK contributions to the EC are helping its Mid-western Towns Water and Sanitation project in Uganda provide safe, geographically accessible and affordable water to some 250,000 people.

Delivering environmental sustainability Poor countries depend on environmental and natural resources to a far greater extent than rich ones. Poor people are particularly vulnerable to environmental disasters which affect their livelihoods. Poor countries also lack the fundamental capacity to manage the critical natural resources upon which they depend for future economic growth and human development.

28

2.47

Environmental sustainability is essential for poor people. They are highly dependent on the environment and its resources (fresh water, crops, fish, etc), which provide roughly two-thirds of household income for the rural poor, and are most vulnerable to its degradation. Tropical rainforests are critical for the livelihoods of about 1.2 billion of the poorest people. Ecosystems and natural resources provide a path out of poverty, support livelihoods and increase resilience to climate change and external shocks.

2.48

A key tool for improving the management of the environment is better integration of environmental priorities within development policies and planning. DFID works with the International Financial Institutions through fora such as the Multilateral Financial Institutions Working Group on the Environment and the OECD’s Environment Policy Committee to encourage them to give appropriate and adequate attention to environmental considerations in

Department for International Development: Annual Report 2009: Volume 1

their programmes and decision making. We are providing £6 million over 4 years to the UN Poverty and Environment Initiative, which builds capacity of developing countries to better integrate environment into poverty eradication strategies. 2.49

At country-level we are supporting poverty reducing programmes that take account of the environment – for example: ■

■

■

■

■

■

■

The Livelihood and Forestry Programme in Nepal (£19 million) has reduced the vulnerability of three million people, sustainably lifted 50,000 families out of poverty since the programme began in 2001 and captured three million tonnes of carbon dioxide each year, worth US$30-50 million if traded on the carbon markets. In Bangladesh, the Chars Livelihoods Programme (£50 million) will, by the end of 2009, have given assets (mainly cattle) and cash stipends to 50,000 women-headed households. This will have doubled household incomes and doubled the value of assets for half a million people. It will also have increased the resilience of the very poorest to climatic and economic shocks, improved their nutrition and their food security. In Tanzania, the UK worked with UNDP to help the Government better integrate environmental management in its National Strategy for Growth and Poverty Reduction. Assistance included developing poverty-environment indicators as part of the Strategy’s poverty monitoring system and budgeting processes, and work with key stakeholders in developing the strategy. As a result, 14 per cent of targets across key areas of the Strategy relate to environmental management, such as reducing land degradation, water pollution and loss of biodiversity. In Ghana, a DFID/World Bank supported economic assessment of the contribution of natural resources has led to a long-standing engagement with the Ministry of Finance on the costs of environmental degradation. Natural resources were found to generate 25 per cent of government revenues. This initiative led to constructive engagement with the Ministry of Finance on the costs of environmental degradation – calculated to be 10 per cent of GDP per year – and on the importance of using natural resources sustainably for improved long-term growth prospects. DFID’s rural livelihoods programmes in the Indian states of Madhya Pradesh (£45 million between 2000-2008), Orissa (£43 million between 2000-2008) and West Bengal (£36 million) help communities strengthen their resilience to drought through better management of land and water and through access to improved crops, livestock and off-farm income generation. In Orissa, the programme has supported the capture of almost 800,000 tonnes of carbon dioxide, whilst also raising close to US$ 1m in revenue for poor households. This programme has been very successful. In Andhra Pradesh for example, it has contributed to lifting 1.3 million out of poverty. Through UNDP’s global ozone layer protection programme UK taxpayers prevented the release of over 6,300 tonnes of ozone depleting substances in more than 100 countries through 1,900 projects. The European Bank for Reconstruction and Developing (EBRD) invested €5.1 billion in 2008 in projects and initiatives across a range of sectors, supporting transition countries from Eastern Europe to Central Asia. Since 2006, the first phase of one of its major programmes, the Sustainable Energy Initiative, facilitated €14 billion of investment in energy efficiency

Chapter 2: Delivering poverty reduction

29

and renewable energy. This resulted in a 21 million tonne reduction in annual CO2 emissions. DFID was among the first donors to support this initiative and is providing £3.4 million since 2006, for technical assistance to facilitate investment. DFID is in discussion with EBRD to agree support to a second phase of this initiative, which will include broader issues such as resilience to climate change impact. The UN Environmental Programme – considering the environment The environment is both a cause and victim of the conflict in Darfur. DFID funds the UN Environmental Programme (UNEP) to improve the environmental impact of international community activities in Sudan. A major success in 2008 was to ‘green’ the 2009 strategic framework for all humanitarian and recovery work in Sudan, covering $2.2b of programmes. UNEP funded the Integrated Water Resource Management project; a major study was completed identifying 23 camps vulnerable to drought and presented a four-phase strategy for drought preparedness. This was incorporated into the 2009 UN Work Plan for Sudan.

Delivering climate change adaptation and mitigation Climate change magnifies existing threats and stresses, exposing the dependence of the poor on natural resources. The poorest people will suffer most from the impacts of climate change, making the achievement of sustainable development even harder. However, we know what is needed to meet the challenges: a global emissions limit that will prevent dangerous warming, a global carbon market to support it, and assistance to help developing countries to adopt environmentally sustainable growth paths and adapt to climate change.

30

2.50

In 2008, DFID played a leadership role internationally on climate negotiations – working to ensure that any global agreement on climate change is ‘development-friendly’. We have led the way in trying to understand what low carbon development can mean for developing countries and to help them begin to respond to the challenge. We have helped protect the most vulnerable from the inevitable impacts of climate change and worked to ensure all our programmes are climate resilient.

2.51

The UK is developing a multi-million pound Centre for Climate and Development which will deliver knowledge management, research and advisory services on all aspects of climate change and development. The aim is to support policy making and practice on adaptation and low carbon development in developing countries. DFID’s total contribution to the Centre will be £40 million over five years. Funding arrangements will be structured in such a way to also allow other interested donors to participate in the Centre.

2.52

In December 2008 the United Nations Climate Change Conference in Poznan´ saw a clear commitment from governments to shift into full negotiating mode in order to shape an ambitious and effective international response to climate change, to be agreed in Copenhagen at the end of 2009.

2.53

To help developing countries effectively tackle climate change and poverty, a joint DFID/ Department for Energy and Climate Change (DECC) programme will provide £800 million over three years to the Climate Investment Funds (CIFs). In 2008/09 DFID contributed half the initial instalment of £100 million. The first three national clean technology investment

Department for International Development: Annual Report 2009: Volume 1

plans have now been endorsed – for Egypt, Mexico and Turkey – and will support investments in renewable energy, energy efficiency and efficient transport. The UK has been instrumental in the design of the Scaling-up Renewable Energy Programme, which will be launched early in 2009/10. 2.54

DFID is funding research and analysis on low carbon growth.To date we have funded studies in India, China, and Brazil through the Centre for Clean Air Policy.The UK has contributed £3.4 million to the World Bank’s trust fund for the Clean Energy Investment Framework (CEIF) to accelerate public and private sector investment in low carbon technologies, climate change adaptation and energy access in developing countries.We have committed £15 million to support the design and implementation of the CEIF across all the multilateral development banks (MDBs).

2.55

We are working closely with other government departments, in particular DECC to reframe the United Nations Framework Convention on Climate Change (UNFCCC) debate on ‘technology transfer’ towards a global technology policy, that helps support immediate and long-term mitigation of greenhouse gas emissions, and improved tools for adaptation.

2.56

DFID is also a key partner with DECC in trying to secure a good deal for poor people in the climate change negotiations – to ensure the worst impacts of climate change are avoided, and that poor countries are supported to adapt to impacts that cannot be prevented. The UK concept of a ‘Framework for Action’ for effective international support for adaptation is now the EU position and gaining buy-in in the UNFCCC negotiations.

2.57

The UK’s contribution of £225 million to the Climate Investment Funds is helping Bolivia, Bangladesh, Cambodia, Mozambique, Nepal, Niger, Tajikistan and Zambia to participate in the Pilot Programme for Climate Resilience (PPCR) which aims to build climate change resilience across their economies and societies.

2.58

DFID is providing £2.6 million over 3 years in support for the South Asia Water Initiative (SAWI). This will enable regional cooperation to better manage shared rivers. It will support collaboration between Afghanistan, Bangladesh, Bhutan, China, India, Pakistan and Nepal on managing the Indus, Ganges and Brahmaputra. The Climate Change and Energy Unit in New Delhi brings together DFID, FCO and DEFRA to work towards key objectives like promoting low carbon technology and supporting international negotiations on a post 2012 framework on climate change. DFID is also working with South Asian governments to increase their capacity and knowledge required to negotiate the next climate deal, and ensure the voices of the most vulnerable are heard.

Improving governance Without capable and accountable governments that are able to provide basic services, trade and growth, we cannot achieve the MDGs. 2.59

DFID has been instrumental in helping many countries achieve important improvements in governance, by which we mean state capability, as well as accountability to citizens and responsiveness to their needs and demands. Our support for improved public financial management is an important part of our efforts to strengthen state capability and is crucial for reducing poverty.

2.60

Parliamentary strengthening and electoral assistance activities are often embedded in DFID’s wider efforts to promote democratic governance and deepen democracy. DFID is currently

Chapter 2: Delivering poverty reduction

31

supporting parliamentary strengthening and better governance activities in over 20 countries around the world. ■

■

■

■

■

■

■

32

DFID funds have supported strengthening parliamentary committee oversight of public procurement in Kenya and parliamentary oversight of oil revenues and expenditures in Nigeria. Our support has also increased public access to parliamentary proceedings in Ghana through live television and radio broadcasts. DFID support has enabled the Ministry of Finance in Cambodia to prepare a draft Medium Term Expenditure Framework for 2008-2011. This lays the ground for a more transparent process for allocating public resources to key strategic priorities such as education while still ensuring overall fiscal discipline. In Nepal, DFID supported the elections, held on 10th April 2008, to a new Constituent Assembly. DFID helped build the capability of the Election Commission to run these elections successfully. We worked with civil society groups to provide civic and voter education and ensure that previously excluded groups were encouraged and able to vote. DFID also gave support for election monitoring and observation by national and international observers. All this contributed towards a Constituent Assembly which truly represented all Nepali people, including women, indigenous communities and Dalits. In Malawi we are working to help tribal elders apply human rights standards to the traditional justice system. At a local level, this has enabled an orphan to successfully challenge his village headman to regain access to his family property. In Bangladesh, DFID funded the transformation of a voter list with over 21 million incorrect names into a world class photo-voter roll for 81 million voters. One of the big impacts of this is that many women, ethnic and religious minorities and hard to reach, extremely poor people, who had previously been left off the voter roll, now have the vote. And on 29th December 2008, they were happy to wait in long queues for the opportunity to use it. With DFID’s support, Rwanda set about modernising the nation’s tax system. A major part of this was the creation of a new body that would replace the old, unreliable and often corrupt revenue departments, and collect more legally due taxes, more effectively. Since its establishment in 1998, the Rwanda Revenue Authority has gone from strength to strength, collecting £60 million in its first year and £423 million in 2008. As a result of increased revenues, the national budget has grown and since 2003, spending on water and sanitation has increased more than five-fold, education expenditure has more than doubled and health expenditure has grown to almost five times the 2003 level. With spending increasing, poverty has fallen significantly.

Department for International Development: Annual Report 2009: Volume 1

2.61

The Governance and Transparency Fund (£130 million), which stems from our commitment to do more on governance in our last white paper, is supporting 38 organisations around the world to improve governance and help citizens hold their governments to account. This includes a range of civil society initiatives in areas such as anti-corruption, human rights, development of a free and independent media and civic education of poor and marginalised groups. Along with the Netherlands and Norway, DFID is also helping priority countries develop better plans to improve governance and tackle corruption by funding innovative pilot projects and in-country dialogue on governance through its new World Bank Governance Partnership Facility.

Reducing corruption Corruption undermines the fight against poverty. It hits the poor hardest. DFID’s strategy is based on a zero-tolerance approach to corruption and working to ensure aid is used for its intended purposes. We work to address the underlying causes of corruption, including the international factors that allow it to flourish. 2.62

DFID programmes are achieving results: ■

■

■

2.63

In Kenya, an innovative education sector support programme (2005-10) to improve the quality of school building programmes has placed communities at the centre of management and oversight, thus reducing the potential for corruption. As a result 4,700 public primary schools across Kenya are being physically developed through community contracting. More than 2.5 million children are currently benefiting and the build quality is better as communities have taken on responsibility for planning, implementing and maintaining their own educational infrastructure. In Uganda, DFID has helped to clean up corruption in the public sector by helping to stop payments to 9,000 ‘ghost workers’ (non-existent employees featuring on payrolls). The money saved through this and similar efforts have amounted to some £12 million (2006-07), which is enough to feed 1,000 children with three meals a day for over a year. DFID is working with the Government of Sierra Leone to tackle corruption, which affects the government’s ability to raise revenues. In 2008, we supported the new national corruption strategy and new legislation on corruption.

Corruption is not just a developing country problem. The UK Government is proactively working to ensure that UK systems to combat international corruption are robust. For example, DFID is funding police units in the Metropolitan and City of London Police which are investigating allegations of international corruption related to developing countries. These units have returned £20 million of assets, frozen £79 million in UK bank accounts and identified a further £61 million for potential restraint.

Delivering poverty reduction in conflict and fragile states Conflict can destroy decades of progress, and set back the prospects for further development for years to come. Conflict affected countries account for only a fifth of the population of developing countries but include a third of those living in extreme poverty; half of children who are not in primary school and half of children who die before their fifth birthday.

Chapter 2: Delivering poverty reduction

33

Delivering development in Afghanistan DFID is supporting the Afghan Government for the long-term, aligning ourselves with the Afghanistan National Development Strategy (ANDS) and putting the majority of our resources through Afghan Government systems: DFID has committed to spend at least 50% of its programme funding through the Afghanistan Reconstruction Trust Fund (ARTF) to build Afghan capacity. £510m will be committed over the next four years (2009/10 – 2012/13) to support four broad areas under the ANDS: ■

building the state and improving governance and sub-national governance;

■

encouraging economic growth;

■

supporting agriculture and alternatives to poppy farming; and

■

helping provide security and stability in Helmand.

The ARTF has provided small loans to over 450,000 entrepreneurs to help them set up or expand small businesses and helped pay the salaries of over 165,000 teachers.

In 2008/9 DFID spent 54% (£1.3 billion) of its regional programme budget in fragile states. This is 10 percentage points higher than in 2004/05. This spend is delivering results.

2.64

■

■

© Panos Pictures

■

2.65

In Sierra Leone, DFID support to the five year Sababu Education Project will provide 6,447 trained teachers and rebuild or rehabilitate 1,495 schools. In Sudan, a DFID bilateral programme in Darfur has enabled 9.2 million children to receive polio vaccinations and 6.5 million received vitamin A supplements.

Iraq: DFID funding has provided water to an estimated 1 milion Baswaris

DFID is also helping to ensure improved outcomes in fragile states by working through multilateral organisations. ■

■

34

DFID Nepal supported programmes which provided employment in road construction (35,000 people), forestry (75,000 people), agriculture (100,000 people), and providing vocational training (15,000 people) in 2008/09.

UK contributions have helped the EC support the Northern Pakistan education programme which has provided non-formal education centres to disadvantaged children and adults, particularly women. The centres exceeded expectations, assisting over 19,000 women at 368 centres in northern Pakistan. In Eritrea in 2006, the UK jointly funded a UNICEF project which provided vitamin A supplements and measles vaccines to 95% of children under 5 years of age, and provided 33,000 vulnerable children with specialised food.

Department for International Development: Annual Report 2009: Volume 1

2.66

In 2008/9 DFID has taken forward a wide range of policy work to improve the effectiveness of our projects and programmes in fragile countries and contexts.

2.67

In 2008, DFID launched a Thematic Evaluation of our work in fragile states. The final report, to be published in summer 2009, will include examples of innovative risk management work in Nepal and the use of Budget Support in Sierra Leone.

2.68

In October 2008 the National Audit Office (NAO) audited DFID’s operations in ‘Insecure Environments’. The recommendations will feed into briefing papers to provide country office staff with guidance on working in fragile states. The guidance is based on the OECD-DAC’s international principles of working in fragile states which aim to improve donor practice, including through a better understanding of what state-building means for donors.

2.69

Internationally, DFID plays a key role in building the systems and policies to deliver poverty reduction in fragile states. DFID’s role includes co-chairing the International Network on Conflict and Fragility (INCAF) Task Team on Peacebuilding, State-building and Security (with the World Bank). We have also recently taken on the co-chair role of the International Dialogue on Peacebuilding and State-building Objectives, alongside the Democratic Republic of Congo. We are also pursuing the implementation of commitments made at the Accra High Level Forum in September 2008 – the Accra Agenda for Action.

2.70

In 2008/9 DFID has continued to support conflict prevention, peacebuilding, security and access to justice through its country programmes and funding for NGOs. For example: ■

■

■

We are working to improve our understanding of grievances that lead to radicalisation, and to adapt our country programmes accordingly. In Pakistan and Bangladesh, for example, we are strengthening our work on governance and political inclusion, to ensure the poor and excluded have access to justice and security, and that education equips young people with the skills they need to get jobs and form part of a cohesive society. Following peaceful elections in Nepal in April 2008, DFID is working to support the new Constituent Assembly (CA) in its key role to develop a constitution to cement the transition to peace. We are helping marginalised communities to develop community declarations to shape the Assembly’s agenda; we are supporting the Assembly Secretariat, funding a resource centre to provide independent advice on constitution making, and providing training for women and excluded groups to fully participate in the process. We are supporting NGO peacebuilding activity throughout the world; – in Bolivia, funds have helped the Carter Centre to train over 3000 people in conflict management techniques since 2007; – in Angola, we have funded Search for Common Ground media programmes, which have helped the country hold its first peaceful elections in 16 years; and – in Somalia, we are supporting the work of Interpeace to mobilise women to participate in local peacebuilding councils.

Chapter 2: Delivering poverty reduction

35

Delivering in partnership across HMG The Stabilisation Unit (SU) is a joint DFID-FCO-MoD unit. Working with and through HMG country teams, it provides specialist, targeted assistance in countries emerging from violent conflict where the UK is helping to achieve a stable environment (stabilisation), better enabling longer term development to take place. 2008/09 was a year of considerable achievement and change for the SU. A marked increase in deployments contributed to the delivery of UK government objectives in the SU’s priority countries, including:

2.71

■

Renewal of the Helmand Roadmap, the UK government’s military and civilian strategy for improving the stability of Afghanistan.

■

Accelerated programmes in Helmand to help the government restore security and provide justice and basic services such as education.

■

Improved Rule of Law programmes in Iraq.

■

Advisory work to help prepare the Basra International Airport for handover of management to the Iraqi government.

■

Progress on the Darfur-Darfur Dialogue and Consultation, the principal mechanism for civil society engagement in the political process and for longer-term reconciliation and rehabilitation in Darfur.

■

Support to the UK military Joint Venture Exercise was a significant success, demonstrating improved engagement between our civilian and military components. The results will help us to develop guidance on cross-government mechanisms for stabilisation and to improve planning capability over the next few years.

■

Meeting our obligations on UN Security Council Resolution 1325, on Women, Peace and Security, we have implemented a system to record progress on gender ratios in operational deployments and held two successful training courses.

■

The SU improved collaboration with our US counterparts and supported DFID, the MoD and FCO effectively in sharing good practice for working in insecure environments internationally.

DFID has worked to ensure significant improvements to the international response. In 2008 we helped establish a donor taskforce to agree how donors can provide faster and better support to countries as they emerge from conflict. We have worked to ensure an ambitious report by the UN Secretary-General setting out his plans for reform on this agenda. In early 2009 we contributed to negotiations started at the UN to ensure the Peacebuilding Fund becomes more rapid and effective. We are working with the UN in Uganda and Nepal to strengthen UN leadership of international support to recovery efforts following years of conflict.

Delivering emergency response 2.72

36

Much of DFID’s work is focused on achieving sustainable reductions in poverty through long term development programmes. But we also provide immediate help to meet the humanitarian needs of people whose lives have been ruined by disaster, whether natural or due to conflict. This requires close work with a wide range of international partners including the UN, international NGOs and the Red Cross movement. It also requires concerted political and diplomatic efforts to ensure the needs of the affected populations are effectively met.

Department for International Development: Annual Report 2009: Volume 1

Cyclone Nargis

© Panos Pictures

In May 2008 DFID assistance to Burma included food for over 230,000 people; 1,000 tonnes of essential supplies such as plastic sheeting for over 320,000 people and blankets for nearly 300,000 people; mosquito nets for 40,000 households; 5,000 tonnes of rice seeds to 56,000 farming households.

Horn of Africa

© Panos Pictures

The already serious level of humanitarian needs was exacerbated by the sharp rise in food prices. DFID provided more than £120m in 2008 which was used for lifesaving interventions, such as food aid, emergency medical and nutrition facilities to help combat child starvation and water borne disease, and for emergency surgery for victims of conflict in southern Somalia.

Zimbabwe

© DFID

In November 2008, we announced an extra £10m in response to the seriously deteriorating humanitarian situation. This is being used, for example, to provide supplies of clean water and strengthen the collapsing health services, including for treating victims of the cholera outbreak.

Gaza

© Panos Pictures

DFID responded rapidly to the humanitarian crisis caused by the conflict between Israel and Hamas. Within days, we allocated $10m to help the UN provide food, shelter and fuel, and to support the vital work of the International Committee of the Red Cross; in total we have now committed nearly £47m. DFID also lobbied hard for improved access to Gaza for humanitarian organisations, so assistance reached those who needed it most.

Sri Lanka

© Panos Pictures

Since September 2008, DFID has allocated £12.5m of humanitarian funding to Sri Lanka to help those displaced by the conflict. This funding supports the life saving work of the International Committee of the Red Cross (ICRC), the only humanitarian agency who is allowed to work in the conflict area by the Government of Sri Lanka. It also supports various UN Agencies to provide shelter, food, medical services, water and sanitation in the Internally Displaced Persons (IDP) camps.

Pakistan

© DFID

Over 2 million people have been displaced by the recent conflict in the border areas of Pakistan (North West Frontier Province and Federally Administered Tribal areas). So far DFID has provided £22m to support those displaced by the fighting. DFID’s support is helping the ICRC, UN agencies and non-governmental organisations (NGOs) provide shelter, food, medical services, water and sanitation, and protection for children and other vulnerable groups.

Chapter 2: Delivering poverty reduction

37

Reforming the international humanitarian system

38

2.73

During 2008/09 DFID continued to be a lead advocate for reform of the international humanitarian system. The key objective is to improve the international community response to major humanitarian disasters, centred on strong leadership and co-ordination from the UN.

2.74

The UN Central Emergency Response Fund (CERF) which provides funds to respond quickly to major disasters or under-funded crises, was established in 2006. CERF is entirely based on voluntary contributions and the way the fund is set up means any country or aid organisation can become a donor. The UK is the largest contributor: £120 million to date ($172 million). After its first three years, 93 countries (nearly half of the UN membership) are now contributing to the CERF, which has provided more than a billion dollars to over 67 countries for food, shelter, clean water and health care for tens of millions of people around the world.

2.75

The CERF proved its value by providing funding in a matter of days following Cyclone Nargis in May 2008, allowing World Food Programme (WFP) to feed 750,000 people for three months. The CERF has also provided funding for longer lasting emergencies such as in Sudan, for example supporting nutrition programmes in response to the drought and rising food prices in 22 provinces across the country, benefiting over a million people, including children and pregnant women.

2.76

DFID and other donors are also increasingly making use of pooled funds at country-level. These allow all funding to be allocated to organisations best placed to meet those needs.

2.77

In 2008, the UK provided almost £145 million which included DRC (£36 million), Sudan (£35 million) and the Central African Republic (£2 million), making us the largest contributor. In the fragile and fluid security situation in eastern DRC, pooled funds facilitated a rapid humanitarian response to newly arising priority needs for food, shelter and household items. In 2008/09 we have seen a small increase in the proportion of Global Humanitarian Spend (GHS) through pooled mechanisms which now represents 8.5%. 3.9% of GHS went through the CERF and 4.6% through eight country level pooled funds.

Department for International Development: Annual Report 2009: Volume 1

Chapter 3: Delivering a global partnership for development “Aid alone will not be enough to begin to tackle the gross disparities of opportunity and wealth we see.” Kofi Annan (2008) 3.1

Improving the effectiveness of global aid is about maximising the impact of all funding, and ensuring that aid reaches those who need it most. It is a political as well as a technical agenda. In 2008/09, in the face of severe economic and financial challenge, the UK has been at the forefront of ensuring that development remains at the heart of the international agenda and in securing commitments from the international community to improve the effectiveness of global aid. MDG Call to Action DFID and Whitehall partners worked intensely during 2008 to secure the support of over fifty countries and with a broad range of stakeholders to accelerate action to get the MDGs back on track. In May 2008, the UK and United Nations Development Programme co-hosted the Business Call to Action. This event brought together business leaders from around the world to showcase business initiatives to support growth in poor countries. In June 2008, at the European Union’s June Council, EU heads of state welcomed the Agenda for Action on the MDGs, which included specific milestones on health, education and water and set out how EU member states intended to keep their commitments and deliver their 2005 aid pledges. In July 2008, faith groups showed their commitment to the MDGs at a rally in London, attended by more than 1,400 robed bishops and other faith leaders, to call on global leaders to deliver the MDGs. At the Leaders Summit in Toyako, Japan, the G8 reaffirmed commitments on aid, aid for trade and universal access to HIV and Aids treatment by 2010. They announced additional commitments to tackle killer diseases, including malaria, recruit health workers and invest in food, agriculture and education. In September 2008, the UK Government helped prepare and participated in a UN High Level event in New York, hosted by the UN Secretary-General. The week long event was attended by a broad alliance of representatives from over 140 countries, businesses, faith and charity groups, and involved over 40 different partnership events. It culminated in $16b of pledges, including $4.5b for education and $3b for malaria Following the High Level event, the UK Government reaffirmed the importance of the MDGs, and of donors honouring their ODA commitments when the international community came together at the Doha “Financing for Development” meeting in November 2008.

Chapter 3: Delivering a global partnership for development

39

Delivering our aid commitments 3.2

In 2008, total net Official Development Assistance (ODA) from members of the OECD’s Development Assistance Committee (DAC) rose by 10.2% in real terms to USD 119.8 billion. This is the highest dollar figure ever recorded. It represents 0.30% of members’ combined GNI. Bilateral development projects and programmes have been on a rising trend in recent years; however, they rose significantly by 12.5% in real terms in 2008 compared to 2007, indicating that donors are substantially scaling up their core aid programmes.

3.3

Total net Official Development Assistance from the UK to developing countries is estimated at £6.306 billion in 2008, compared with £4.921 billion in 2007. The 2008 ODA figure represents 0.43% of GNI, compared with 0.36% in 2007, and included £362 million of debt relief in 2008 (as opposed to £39 million in 2007). By 2010/11 total UK ODA is projected to rise to £9.1 billion equivalent to at least 0.56% of GNI.

Figure 4: UK Official Development Assistance as a percentage of Gross National Income 0.8 0.7

Per cent (%)

0.6 0.5 0.4 0.3 0.2 0.1 0.0 1997

1998

1999

2000

2001

2002

2003 UK

2004

2005

DAC Average

2006

2007

2008

0.7% UN Target

Source: OECD Development Assistance Committee

3.4

In 2008, preliminary data show that net bilateral ODA from DAC donors to Africa totalled USD 26 billion, of which USD 22.5 billion went to SSA. Excluding volatile debt relief grants, bilateral aid to Africa and SSA rose by 10.6% and 10% respectively in real terms.

Delivering more effective aid ‘We must ensure that aid flows are predictable and support plans formulated by national governments, not spent on priorities, however well intentioned, imposed by donors from afar.’ Gordon Brown, Prime Minister to a conference on world poverty held by the Department for International Development in London on 9 March 2009 3.5

40

Aid works, but it could work better. At the Third High Level Forum on Aid Effectiveness in Accra in September 2008, donors and developing countries endorsed the Accra Agenda for Action. This contains new ambitious undertakings by donors and developing countries to speed up the process of fulfilling the Paris Declaration’s pledges and further improve the Department for International Development: Annual Report 2009: Volume 1

quality of aid. The Paris declaration on aid effectiveness, endorsed in 2005, outlines a set of five inter-related principles of ownership, alignment, harmonisation, results and accountability and commits donors and partners to making changes in each area. A set of quantified targets, monitored bi-annually, is used to assess progress and hold signatories accountable for achieving results. DFID played a key role in agreeing the Paris Declaration and the Accra Agenda for Action and we continue to push for faster and deeper progress in putting these agreements into action. Commitments include: ■

■

■

■

■

■

3.6

A new target to channel 50% of government-to-government aid through country systems. Strengthening of national, and now international, mutual accountability mechanisms, allowing donors and partner countries to better hold each other to account. For the first time donors agreed to respect and support partner country led efforts to agree a better division of labour between donors at country level and now at an international level. New policy commitments for donors working in fragile situations, including pooled funding mechanisms to support stabilisation and peace building. Donors will provide for the first time partner governments with indicative resource allocations, forward expenditure or implementation plans for the following 3-5 years. Delivering a step change in global public availability and accessibility of information on aid flows through the new International Aid Transparency Initiative (IATI) launched by the UK.

DFID remains on track to meet the Paris Declaration targets. Results from the 2008 Paris Monitoring Survey show that we have met seven of the 10 targets that apply to donors three years early and we are on-track to meet the remaining three targets. Global progress towards the Paris targets is slower and the UK will continue to campaign for improved aid quality.

Figure 5: How we manage our aid: selected UK results from the 2008 Paris Declaration Survey

Joint country analytic work (10b) Joint missions (10a) Use of common arrangements or procedures (9) Aid is untied (8) Aid is more predictable (7) Use of country procurement systems (5b) Use of country public financial management systems (5a) Strengthen capacity by co-ordinated support (4) Aid flows are aligned on national priorities (3)

0%

10%

20%

30%

Source: Paris Declaration Survey 2008, (OECD DAC), http://www.oecd.org/dataoecd/58/41/41202121.pdf. 1. Full results are shown in Volume II, Annex F, Table F1 of this Annual Report.

3.7 1

40%

2010 target

50%

60% 2007

70%

80%

90%

100%

2005

In 2008/09 the UK provided 27%1 of its bilateral programme spending via budget support. The full list of countries involved is in Volume II, annex F, table F4.

Chapter 3: Delivering a global partnership for development

41

3.8

DFID aid has been untied since 2001. The 2008 Paris survey showed that 88% of aid to the participating countries was untied up from 75% in the 2006 survey.

3.9

There is more information in UK Progress Report on Aid Effectiveness published September 2008. The report demonstrates how the UK is meeting its international aid effectiveness commitments and how this is delivering better results for poor men and women. For example ■

■

■

In Vietnam, well co-ordinated aid supporting government-led projects has helped improve rural transport, increasing visits to health clinics by up to 40%. In Ghana, DFID support for country-led education programmes has helped to increase school enrolments, particularly for girls, even in the most hard to reach areas. In Cambodia, better co-ordination amongst donors is helping to free up government staff time and administration costs by 75% – giving hard pressed government officials more time to run essential services.2

Making information more accessible – IATI The International Aid Transparency Initiative (IATI) aims to make public information on aid spending and activities more available and more accessible, worldwide. The initiative brings together donors, partner countries, civil society organisations and other users of aid information to agree common transparency standards for aid flows. DFID and a group of bilateral and multilateral donors launched the IATI in September 2008. Seventeen donors have now signed the IATI Accra Declaration2 The full set of standards will be drawn up after detailed consultations with partner countries, civil society organisations and other users of aid information. The standards are expected to require donors to: ■

publish core information on aid flows and activities, including full details of all aid to each country, details and costs of individual projects and their aims, and reliable information on future aid to help governments of developing countries improve their planning;

■

use common formats and definitions, to make information easier to access and compare;

■

make it easier for information to be exchanged electronically, between different systems and databases;

■

develop a code of conduct which sets out how people should be able to access information, what they should do if information is not readily available, and how donors will be held to account if they do not comply with the standards.

Promoting a more effective international system Only with the best international institutions that promote cooperation out of shared interest and predictability and accountability can large numbers of states consistently work together for the benefit of all. Gordon Brown 2008 3.10

2

42

The UK is strongly committed to working through the multilateral system. Many global challenges can only be addressed through a collective international response – for example, climate change mitigation. DFID spent 41% of its programme budget on central funding of multilateral organisations in 2008/09. In addition 29% of DFID’s bilateral programme was channelled through multilateral organisations in 2008/09.

The EC, World Bank, UNDP, Germany, Sweden, Norway, Finland, Hewlett, GAVI, Denmark, Netherlands, Ireland, Australia, Spain, New Zealand, Switzerland and the UK. Department for International Development: Annual Report 2009: Volume 1

Figure 6: DFID funding through multilaterals 2008/09 1200

Funding through country and sector programmes

1000

Core funding

£ millions

800 600 400 200 0

EC1

World Bank

United Nations

1

Regional Development Banks

Other multilaterals2

Includes the UK's contribution to the EC development budget and the European Development Fund - a voluntary fund for 78 African, Caribbean and Pacific countries (ACP) under the Cotonou agreement 2 Includes the Global Fund to fight AIDS, Tuberculosis and Malaria and the Global Environment Facility

3.11

We work hard to make sure the money we give to multilaterals is used efficiently to contribute to achieving the MDGs. DFID works at a systemic level to encourage greater cooperation between agencies and a better structured international aid response. We use our shareholder status in multilateral agencies to advocate for reform, steward our finance and make sure it is used well. We also work with individual agencies and partner countries to monitor effectiveness, and increase the impact of multilateral aid on the ground.

Promoting a more effective World Bank 3.12

The World Bank is the biggest global provider of development finance, has global reach, world class staff and huge influence on the international aid system. The International Development Association (IDA) is the arm of the World Bank that works in the poorest countries. The UK is now the largest donor to IDA committing over £2 billion – 14% of total funding to IDA over the three years to 2010.

3.13

UK leadership was instrumental in reaching agreement at the World Bank’s Annual Meetings in October 2008 on greater voting power for developing countries, a new seat for Africa at the Board, and open and transparent selection of the Bank President. At the G20 summit leaders confirmed their commitment to speed up World Bank reform to make it more effective and give poor countries a greater say in how it is run. For the World Bank this means bringing forward the timetable for reform so that final decisions are reached by the first half of 2010.

3.14

The World Bank has played a leading role in responding to the economic and financial crisis and has taken concrete steps to increase the financial support available to developing countries. The World Bank has the capacity to almost triple lending to middle income countries in 2009 in response to increased demand. The poorest countries can claim 50% of next year’s funds in advance if they need help to cope with immediate problems.

Chapter 3: Delivering a global partnership for development

43

Promoting a more effective IMF 3.15

The financial crisis highlighted the central role of the International Monetary Fund (IMF) in the international monetary system. In early 2009 HMG worked to ensure the G20 London Summit would lead to increased resources for the IMF.

3.16

The total level of resources available for the Fund to lend to its members has tripled with an additional $500 billion agreed at the Summit. These major new resources will help ensure emerging markets and middle income countries get the financing they need in the crisis. The Summit also agreed a new issue of $250 billion of Special Drawing Rights (SDRs, the IMF’s reserve currency), and agreed to double the level of financing it provides to poor countries through its low interest lending facilities.

3.17

In September 2008, DFID also pushed for reforms to the IMF’s Exogenous Shocks Facility in the wake of high food and fuel prices last year. The reforms resulted in faster, easier and higher levels of financing, protecting the poorest from the effects of economic shocks.

Promoting more effective Regional Development Banks 3.18

DFID’s support to the Regional Development Banks (RDBs) is an important part of our efforts to tackle poverty in Africa, Asia, the Caribbean, Latin America and Eastern Europe. The RDBs provide lending at market rates, as well as highly concessional loans and grants to the poorest countries through their development funds.

3.19

DFID negotiated, with partner shareholders, the untying of aid by the African Development Fund, to ensure increased effectiveness in reducing poverty. In 2008/09 the UK provided £139 million to the African Development Fund to support financing for the poorest African countries. All the RDBs now use results frameworks to set out their goals for the next few years. These include progress on the MDGs, specific project outputs and institutional targets. We are working with other shareholders to help the banks achieve their goals and become more effective development partners.

Promoting a more effective United Nations

44

3.20

DFID is working with other member states to make the United Nations (UN) system more effective. We do this by supporting the UN’s own Delivering as One reform initiative, and strengthening the funding, leadership and management of the UN at country level.

3.21

An important element in this is agreeing that the UN resident coordinator has authority backed by money so that he or she can coordinate the work of different UN agencies, reducing overlap and inefficiency. There are now eight countries piloting the UN’s Delivering as One initiative, including five where DFID has a country office. With Norway and the Netherlands we contribute to the Spanish MDG Fund that provides support to the Delivering as One pilots. Developing countries have welcomed this new way of funding the UN.

Department for International Development: Annual Report 2009: Volume 1

3.22

At the level of individual institutions, we work to improve agency performance. In 2008 we introduced performance–based funding of UN agencies. This will ensure our funding goes where it will produce results. New institutional strategies, including performance frameworks, were agreed with the United Nations Development Programme (UNDP), UNAIDS, World Health Organization (WHO) and United Nations Population Fund (UNFPA). These include targets on the agencies’ contribution to the MDGs, gender equality and UN reform.

Promoting a more effective European Union 3.23

In 2008 the EU collectively provided 58.6% of the world’s ODA, and about a fifth of that was managed directly by the European Commission (EU). 19% of DFID’s total programme funds are disbursed via the EC. In 2007 the UK contributed 17% to the EC development budget and additionally 13% to the European Development Fund (latest available figures).

3.24

DFID’s Institutional Strategy (IS) for working with the EU was launched in June 2008. It sets out priorities for the European Commission and EU Member States to work towards over the next three years. Priorities include promoting development policy beyond aid, e.g. through pro-poor trade policies; improved EC aid and humanitarian assistance; and working with the EC to support reform of the international system.

3.25

The IS also identified the European Investment Bank (EIB), in which the UK is a major shareholder, as a key source of finance for developing countries. In 2008, EIB backing for the EU’s development aid and cooperation policy in regions including Eastern Europe, Latin America and the Africa, Caribbean and Pacific (ACP) area, totalled €6.1 billion. Stronger coordination between the EC and the EIB would help to maximise the effectiveness of financial assistance, with EIB finance forming part of a coherent EU offer to developing countries.

3.26

The EC demonstrated real leadership in 2008. The MDG Agenda for Action was agreed by the European Council in June 2008, and launched at the UN Secretary General’s High Level Event on the MDGs in September 2008. It is an ambitious document in which the EU reaffirms its ODA commitments and sets out additional spending on health, education and water to get the MDGs back on track by 2010. With support from the UK and other like minded member states, the Commission’s strong position helped to ensure ambitious outcomes at Accra and the Doha conference on Financing for Development.

3.27

However we want the EC to be able to demonstrate even more evidence of real results in developing countries. We want these results to be disaggregated and gender sensitive. The Commission has improved its focus on results based management: in 2007 71% of projects monitored under the Commission’s Results Oriented Monitoring System (ROM) reported very good or good performance.

Chapter 3: Delivering a global partnership for development

45

Cambodia: Significant increases in enrolment in traditional schools and nonformal education programmes as the government rebuilds the Cambodian education system

The European Commission partnered the Cambodian Ministry of Education, Youth and Sports, to provide €20m between 2003 and 2007. This funding has allowed 20% of the very poorest children to attend primary school in 2006, up from 16% in 2001. Also, in 2006, 80% of Cambodia’s 11 year-olds completed education up to grade 6, whereas in 2002, only 44% reached that level. Furthermore, 117,000 students gained access to non-formal education in 2006, three times the number in 2002. The nonformal education helps those who, for various reasons, have fallen out of the regular educational system.

Delivering debt relief

46

3.28

Debt relief frees up long term resources for poverty reduction. Much has been achieved on that front: the main international initiatives, Heavily Indebted Poor Countries (HIPC) and Multilateral Debt Relief Initiative (MDRI) have delivered over $110 billion of debt relief since 2000.

3.29

The UK Government has worked to ensure poor, heavily indebted countries, committed to poverty reduction, were able to access debt relief. It promoted flexibility, where appropriate, to support countries through the HIPC Initiative.

3.30

Under the HIPC process, 35 out of 41 eligible countries are currently benefiting from debt relief, of which 24 countries have completed the HIPC process and received irrevocable debt relief and 11 countries are receiving relief on their debt service.

3.31

Debt relief under HIPC and MDRI has made a big difference. In February 2009, Burundi completed the HIPC Initiative. This means Burundi will receive debt cancellation worth approximately US$1.6 billion, reducing its debt by more than 90%. The extra $75 million HIPC relief provided to Burundi in 2006 and 2007 is already being used for the reconstruction and revival of social services after over 12 years of internal conflict.

3.32

DFID works closely with HM Treasury and the Export Credit Guarantee Department (ECGD) to promote sustainable lending and borrowing. In 2008/09, the ECGD updated its productive expenditure guidelines. These guidelines ensure that all UK export support is carefully examined, taking into account a country’s debt position, and what the funds will be used for. We will continue our work on debt sustainability, by working with our partners to review the effectiveness of the debt sustainability framework.

Department for International Development: Annual Report 2009: Volume 1

© European Commission

The Cambodian government has faced extreme difficulties in trying to rebuild its entire educational system following the destruction left by the Khmer Rouge regime during the late 1970s.

Delivering in conjunction with emerging large economies 3.33

DFID’s work with global partners on global development increasingly involves emerging economies, and especially the large ones. Examples of this work include: ■

■

■

■

■

working with the World Bank to help the Russian government build technical capacity in overseas aid management at a time when Russia is stepping up its overseas assistance programmes. We are also supporting academic and civil society organisations’ interest in Russia’s role as an emerging donor. entering a formal dialogue with China about development in Africa, including joint working in the Democratic Republic of Congo, work on climate change adaptation and sustainable development which should have real impact in terms of significant lessons for other developing countries in areas such as forestry and fisheries. supporting Brazil’s assistance to the African Union and 5 African countries on their design of social protection – which recognise Brazil’s leading position in implementing effective social protection policies – between 2001-2005 incomes of the poorest 10% of Brazilians rose 8 times faster than average incomes. working with the Government of India, the Indian pharmaceutical industry and the Clinton Foundation to reduce the price of essential HIV and AIDS and malaria drugs. The project is expected to produce savings of more than $100m on these life saving medicines by 2011 and heralds new ways of working for DFID India. helping South Africa progress with regional economic integration in Southern Africa and address the global and regional impacts of climate change. For example, the UK is supporting the South African Revenue Services to support One-Stop border posts in neighbouring countries such as Mozambique and Lesotho, which will cut transport and trading costs and reduce waiting times at border posts from 3 days to 3 hours; we also plan to work with South Africa to ensure a fair global agreement at the Climate Change Conference in Copenhagen.

Delivering with Civil Society 3.34

Civil society organisations (CSOs) play an important part in the fight against poverty. This is why DFID works with hundreds of these around the world – including non-governmental organisations (NGOs), faith-based groups and trade unions.

3.35

As well as supporting local organisations in developing countries, DFID delivered nearly £317million through UK-based civil society organisations in 2008/09: ■

■

£15million was delivered through the Civil Society Challenge Fund to support 140 projects worldwide. £90million was delivered through 27 Partnership Programme Arrangements (PPAs) with major CSO partners such as Oxfam, Save the Children and ActionAid helping to support their direct action in poor countries.

■

£80million was spent on tackling humanitarian emergencies.

■

£132million was provided to UK-based CSO partners by DFID country programmes.

Chapter 3: Delivering a global partnership for development

47

© 2009 International HIV and AIDS Alliance/RedTraSex

Latin America’s sex workers find a voice in the fight against AIDS ReTraSex network launching their training manual

In Latin America and the Caribbean, the very people who are most likely to be affected by HIV and AIDS are often the least likely to seek out, or be provided with, HIV prevention and other medical care. Over the last decade, a network of people employed in the sex industry has refused to allow this situation to go unchallenged. Supported by the DFID backed charity Alliance and calling itself “a movement in high heels”, RedTraSex is a network of people which has grown into an organisation aiming to develop HIV prevention programmes and improve sex workers’ health. DFID’s Partnership Programme Arrangement with Alliance will provide £13.3 m from 2008-2011 and as a result of this funding: ■

RedTraSex works with approximately 500 sex workers across 17 Latin American and Caribbean countries. Through these 500 representatives, the network reaches an estimated 100,000 people.

■

The network has participated in the organising committees of events such as the Central American Congress on STIs, HIV and AIDS (CON-CASIDA) and the Fourth Caribbean and Latin American Forum on HIV and AIDS and STIs.

■

RedTraSex has compiled guidance for health service staff dealing with sex workers, established a health centre co-managed by sex workers in Argentina, and collaborated (with UNAIDS and UNFPA) on a multi-media campaign to stamp out violence against sex workers.

‘No papa!’ to corrupt officials in rural Democratic Republic of Congo Mwanso Walimbwa, head of the farmers’ movement group in Kandolo Village.

© Christian Aid

Mwanso Walimbwa works as a farmer in a remote part of the DRC. A DFIDfunded scheme run by the Union Paysanne pour le Progrès (UPKA), called a farmers’ movement and supported by Christian Aid, has taught Mwanso and his neighbours how to tackle corruption. Members of the farmers’ movement in Maneima Province now know the correct tax rates and make sure to demand a receipt each time they pay their taxes, so they won’t be billed again. Through the scheme, some have even had paralegal training to defend their claims in the face of abuses, while tax collectors themselves have attended sessions on working within the law. DFID’s Partnership Programme Arrangement with Christian Aid will provide £17.4 m from 2008-2011 and as a result of this funding:

48

■

UPKA has set up farmers’ associations in more than 75 villages across Maniema Province.

■

Alongside anti-corruption training, UPKA runs sessions in land and resource management, tackling HIV and preventing violent conflict.

■

The UPKA anti-corruption project is funded through DFID’s Programme Partnership Arrangement (PPA) with Christian Aid. The UPKA project began in December 2007 and will run for three years.

Department for International Development: Annual Report 2009: Volume 1

Delivering high quality development research 3.36

The new DFID Research Strategy launched on 22 April 2008, will double DFID’s commitment to finance research to £1 billion over the 5 years of the strategy. This is in response to the scale of our ambition and the challenges we face to make poverty history. It makes DFID the largest funder of development research in the world, and places sustainable economic growth at the centre-stage.

3.37

Two DFID-funded research centres have transformed the approach of the international development community to tax reform and shown that taxation is a profoundly political state-building process central to building effective states needed for poverty reduction and delivering the MDGs. An example of the application of this research in 2008 was the South African Government’s conference on ‘Tax and State-building in Africa’ , which was cosponsored by DFID and led to the creation of an African Tax Administration Forum and plans for an African Tax Institute.

3.38

We continue to play our part in food research, its importance being underlined by the food crisis in the last year. We have worked with the Consultative Group on International Agricultural Research (CGIAR) to transform it into a more effective research for development body. Effective CGIAR research has been shown to produce real benefit in the long-run resulting in high impact crop improvements and cost-benefits of 1 to 9 over its 37 year history. It is estimated that developing country food production would be between 7% to 8% lower and world food and grain prices would be 8% to 21% higher than they are now, with corresponding impacts on hunger and starvation, without CGIAR research.

3.39

DFID works with public and private organisations on development research. For example, in 2008 the Bill & Melinda Gates Foundation (BMGF) joined DFID in funding Galvmed research to develop a range of animal vaccines, pharmaceutical and diagnostic products. Galvmed will bring a licensed East Coast Fever vaccine to the East African market in 2009, which will help tackle a disease responsible for the deaths of 1.1 million cattle every year with an estimated cost of $168 million annually. Galvmed has business plans for the development of products to help control 12 other key animal diseases between now and 2015.

Delivering greater development awareness 3.40

People are more likely to support development if they know something about the issues, including what life is like for poor people in developing countries and how governments, non governmental organisations, and they as individuals, can help. DFID spent approximately £14 million in 2008/09 on projects in the UK aimed at increasing public awareness of global poverty and of how donors including DFID are working to reduce it.

Chapter 3: Delivering a global partnership for development

49

Douglas Alexander meets Platform2 volunteers and staff at Greenbelt 2008

3.41

DFID’s support to the Global School Partnerships Programme has enabled 1800 schools to develop an active link with a developing country. This has ensured that more than 1 million learners in the UK have taken forward joint learning with a developing country partner. Our Diaspora Volunteering Programme has enabled 98 volunteers to work in developing countries since the programme began in August 2008 and the programme intends to support a total of 600 volunteers by 2011.

3.42

We have also worked to make DFID more recognisable, building on research which helped to effectively focus our resources where they will have the biggest impact. Most notably: ■

■

■

3.43

DFID is engaging the public through schemes such as the Platform 2 volunteering programme, which received 1,000 applications in its first year. We are involving young people in development through recruiting DFID youth reporters, whose video content has been used on a number of websites, with a potential reach of 4.2 million people.

We have also worked to ensure recognition of DFID’s work through partnering with other organisations. For example: ■

■

50

We have developed a completely new DFID website, which has received positive feedback, and has attracted 15% more unique visitors over the past year.

We estimate that our activities with Comic Relief reached over 15 million people in the UK. In partnership with First News we have reached 200,000 school children, who have signed up to our Conflict Children Campaign.

Department for International Development: Annual Report 2009: Volume 1

Chapter 4: Delivering an efficient and effective organisation “DFID is a well-run department. It has impressive leadership that is complemented by high-quality and committed staff. It is admired internationally throughout the donor community, and is regarded as a leader.” DFID’s Capability Review, March 2009

DFID Ministers and Board

Secretary of State for International Development Douglas Alexander MP

Minister of State1 Gareth Thomas MP

Parliamentary Under Secretary of State2 Mike Foster MP

Permanent Secretary Nemat “Minouche” Shafik

Director General Policy and Research Andrew Steer

Director General Country Programmes Mark Lowcock

Acting Director General Corporate Performance Sam Sharpe

Director General International Martin Dinham

Non Executive Director Doreen Langston

Non Executive Director David MacLeod

1 Responsibilities include Trade, Climate Change, Europe, Africa, Debt, Donor Relations and Parliament (supporting SofS). 2 Responsibilities include Research, South Asia, Human Development, Aid Effectiveness, Water and Sanitation, and Green issues. A full organisation chart is shown in Volume II, Annex I.

Chapter 4: Delivering an efficient and effective organisation

51

4.1

The Management Board is collectively responsible to ministers for the delivery of the PSA. The Board provides strategic directions to the organisation within the policies set by the Secretary of State. The fundamental purpose of the Board is to maintain and enhance DFID’s effectiveness. In addition to the Permanent Secretary, Directors General and Non-Executive Directors, DFID’s Finance Director has been part of the Management Board since April 2008 to strengthen financial accountability. ■

■

■

■

■

The Audit Committee helps ensure a financially sound and efficient organisation by monitoring and reviewing the risk, control and governance systems in DFID and providing advice and assurance to the Accounting Officer (the Permanent Secretary). The Development Committee contributes to effective delivery of the PSA objectives and targets by providing oversight and direction on Ministerial policies. The Investment Committee ensures DFID investments represent good value for money and that clear systems exist to take evidence based strategic decisions. The Senior Leadership Committee manages and reviews Senior Civil Service staffing deployment and pay to support DFID’s PSA objectives. The Security Committee is responsible for monitoring the adequacy and effectiveness of all aspects of DFID security.

Delivering more for our money 4.2

DFID aims to allocate its resources where they will have the greatest impact and demonstrate increased efficiency in our spending.

4.3

DFID’s programme budget for 2008/09 was £5.5 billion.

4.4

As part of the Government’s 2007 Comprehensive Spending Review DFID agreed a Value for Money programme to deliver efficiency savings of £492 million over the period 2008/09 to 2010/11.

4.5

We delivered £168 million of Value for Money savings1 in 2008/09, 6% higher than our 2008/09 efficiency savings target of £159 million. We are on track to achieve our overall CSR value for money target of £492 million by the end of 2010/11.

4.6

2008/09 savings were delivered through:

1

52

■

Multilateral efficiency savings: £53 million;

■

Bilateral efficiency savings: £74 million;

■

Portfolio Quality Index currently stands at 73% generating savings of £31 million;

■

Administration: £10 million of savings.

• All gains are cash releasing, sustained and are reported net of costs. • No spending review 2004 over delivery has been allowed. • An internal audit review has been completed by the department to ensure structures are sufficiently robust to validate gains. Department for International Development: Annual Report 2009: Volume 1

4.7

The allocative efficiency savings secured to date have released significant resources that we have been able to reinvest in our bilateral and multilateral programmes, helping to lift more people out of poverty. Examples of what the savings have contributed towards can be found in chapter 2: delivering poverty reduction.

4.8

We are also realising administrative savings across the organisation. Africa Division for example remains on track to achieve a 27% increase in efficiency measured by the ratio of programme to administrative costs by 2010/11. This will be done by reducing the size of some offices and closing others, e.g. the Gambia office closed in 2008 and withdrawal from the Cameroon, Niger and Angola programmes is underway.

4.9

In addition, DFID has identified an additional £155 million savings to be delivered in 2010/11. This means in 2010/11 our total savings will increase from £492 million to £647 million. These savings will be found from a variety of areas including: ■

■

■

4.10

£6 million from more effective, focused communications work and using more efficient web and social media. £10 million from strengthened partnerships on research and analytical work, and improved procurement and management of policy and research contracts. £7 million from extending the timeframe of the Governance and Transparency Fund as requested by partners.

The Investment Committee has agreed a set of important work for 2009/10 which will deepen and widen Value for Money analysis across the organisation. Further work on bilateral and multilateral resource allocation will be taken forward. A review of the value for money of spending in the health sector is already underway and will report towards the end of 2009.

Improving Procurement capability 4.11

The Office of Government Commerce (OGC) conducted a Procurement Capability Review of DFID in early 2008 which helped us to think more broadly about procurement. As a result we have designed an Improvement Plan and new Commercial Strategy containing specific time bound targets and measures. Commercial strategy The 5 key outcomes of the Commercial Strategy are: ■

suppliers deliver improved quality and impact

■

better value for money from third parties

■

strengthened national procurement capacity

■

better impact achieved through increased market collaboration

■

better application of procurement skills and commercial awareness across DFID

Implementation of the commercial strategy will help us to to deliver faster, better quality goods/services to poor people and the potential to achieve savings which will help to lift a significant number of people out of poverty.

4.12

Consultancy spending on central business functions defined as “the provision of advice and/or guidance on the strategy, structure, management or operations of an organisation in pursuit of

Chapter 4: Delivering an efficient and effective organisation

53

its purpose and objectives” was £21 million in 2008/09. This figure excludes consultancy expenditure on behalf of and for the benefit of developing countries. 4.13

DFID aims to demonstrate that it ensures best value from consultancy. We are therefore finalising our Consultancy Category Strategy and will be implementing the Consultancy Value Programme (CVP). The CVP will drive forward the implementation of the National Audit Office (NAO) recommendations for ensuring spend on consultancy delivers the best value for money.

4.14

In line with the commitment in the White Paper ‘Innovation Nation’, we will develop and implement our Innovation Procurement Plan (IPP). The IPP, which links to the Commercial Strategy, will set the direction for ensuring that we can identify and procure more innovative products and services in a manner consistent with the responsibility on us to manage public money effectively.

Risk and Control Internal 4.15

The Permanent Secretary is responsible for a system of internal control that supports the achievement of DFID’s objectives while safeguarding public funds and departmental issues. The system includes measures to identify risks and procedures to manage these. Our systems are assessed by the department’s internal auditors and Audit Committee, and by the National Audit Office and HM Treasury.

4.16

Divisional Directors provide an annual statement of assurance, covering compliance with management and control systems. Together with the Head of Internal Audit’s Annual Report, they contribute to DFID’s statement on internal control which is signed by the Accounting Officer and submitted to Parliament with the Annual Accounts.

4.17

Internal Audit Department (IAD) provides the Permanent Secretary and DFID managers with an independent and objective opinion on risk management, internal control and corporate governance. During 2008/09 IAD conducted 31 internal audit reports on a wide range of DFID systems and operations.

External 4.18

The Public Accounts Committee (PAC) is a select committee of the House of Commons responsible for overseeing government expenditure to ensure it is effective and accurate. They are a critical mechanism for ensuring transparency and accountability on government financial operations. The PAC have published the following reports on DFID’s work: ■

■

■

54

Department for International Development: Providing budget support for developing countries – June 2008 Department for International Development: Operating in insecure environments – April 2009 Investing for Development: the Department for International Development’s oversight of CDC Group plc – April 2009

Department for International Development: Annual Report 2009: Volume 1

PAC reports can be accessed through http://www.parliament.uk/parliamentary_committees/ committee_of_public_accounts.cfm 4.19

The NAO is independent of government and audits DFID’s accounts on behalf of UK Parliament. They report on the economy, effectiveness and efficiency of how public money has been used. These reports are produced for the PAC who regularly meet and make recommendations to DFID based on NAO reports.

4.20

The International Development Committee (IDC) is appointed by the House of Commons to examine the expenditure, administration and policy of DFID and its associated public bodies. The committee also takes an interest in the policies and procedures of the multilateral agencies and non-government organisations to which DFID contributes. More information on the IDC can be found at http://www.parliament.uk/parliamentary_committees/international_ development.cfm.

4.21

The Independent Advisory Committee for Development Impact (IACDI) was established in December 2007 to strengthen and assure the independence of DFID’s evaluation function. Its findings – for example the committee minutes and the chair’s annual letter – are also shared regularly with the UK Parliament through the IDC and published on the IACDI website. In response to the Chair’s first annual report, the Secretary of State acknowledged the Committee’s achievements which include: raising the profile of evaluation; playing a major role in shaping DFID’s new evaluation policy; and enhancing our lesson-learning and follow-up action.

4.22

Resources for evaluation have increased with its programme budget rising from £2 million in 2008/09 to £3 million in 2009/10. The evaluation team will also grow in staff numbers and increase its professional capability in the coming year. Our systems and processes have been strengthened to ensure evaluation recommendations inform decision making and achieve value for money.

Delivering a highly skilled and diverse workforce 4.23

DFID is committed to creating a stronger and more resilient organisation with a talented, well-trained, highly-skilled and effectively managed workforce that is able to adapt to the changing landscape and deliver on our mission. For example: ■

■

■

4.24

Human Resources Division has been reorganised: the introduction of Business Partners and a ‘one stop shop’ (HR Direct). A new 360° line management assessment tool, a new market-driven flexible promotions and posting systems has been put in place. We are driving improvement in performance management across the organisation with good examples in United Nations, Conflict and Humanitarian Division and Middle East, Caribbean, Asia (Central, North and East), BRICS and Overseas Territories.

DFID exceeded its original Lyons Review target for the relocation of 85 posts from London to East Kilbride by March 2006, as 88 posts were transferred. The 2009 budget announced plans to increase the target for relocating public sector posts out of London and the South-east to 24,000 posts by 2010/11. No further specific targets for DFID relocation have yet been

Chapter 4: Delivering an efficient and effective organisation

55

agreed, but independent of this, DFID is separately considering the relocation of further posts to the East Kilbride office.

DFID Staff numbers by full time equivalent (FTE)1

HCS SAIC Total

Mar 05 1883 989 2872

Mar 06 1801 932 2733

Mar 07 1719 865 2584

Actuals Mar 09 1600 759 2359

Mar 08 1612 834 2446

1 An individual who works less than full time hours is counted as a fraction.

Number of Staff by Location (excluding temporary/agency staff, consultants and nonpaid staff) March 09

All Staff1 Home Civil Service (HCS) Staff

East Kilbride 512 494

UK-Based Overseas 410 403

London 901 750

Staff appointed in country 763 -----

TOTAL 2586 1647

1 All HCS pay and pensionable (P&P) or fixed-term staff and secondees on DFID’s payroll.

Diversity of DFID’s workforce

Women in the SCS Women at Director level and above BME in the SCS (where ethnicity is known) Disabled in the SCS

March 2008 37.5% 35% 11.7% 2.1%

March 2009 32% 28.6% 11.5% 3.1%

DFID targets for 2011 41% 38% 12% 3%

4.25

Our commitment to Diversity has resulted in DFID entering the Stonewall Top 100 Employers for lesbian, gay, bisexual and transgender (LGBT) staff.

4.26

DFID has been awarded the gold standard in the ‘Opportunity Now’ gender benchmarking exercise.

DFID HCS staff salaries in the UK and overseas (as at 31st March 2009) GRADE Senior Civil Service Band A1 Band A2 Band A2(L) Band B1 (D) Band B1 Band B2 Band C1 Band C2 TOTAL

56

Salary Range £107,300± £57,300 – £107,299 £53,155 – £66,873 £41,900 – £55,188 £35,000 – £42,342 £30,403 – £36,017 £25,663 – £33,725 £19,474 – £26,676 £15,555 – £22,030 £13,750 – £18,550

Female 1 30 101 216 66 33 129 143 97 6 822

Male 4 63 167 198 68 31 136 92 53 13 825

Total 5 93 268 414 134 64 265 235 150 19 1647

Department for International Development: Annual Report 2009: Volume 1

Delivering a better way of working 4.27

The Cabinet Secretary led a programme of Capability Reviews in 2007 which examined the workings of all government departments and recommended ways in which each might improve.

4.28

In early 2009 DFID was re-reviewed. The conclusion of this review was DFID remained among the best performing departments in Whitehall, and that we had made progress in many of the key areas identified for improvement in 2007. In particular it noted that ‘Governance, performance management across the organisation and financial capability have all improved.’

4.29

However, the review also highlighted the increasing challenge for the Department as the impact of the global economic downturn affecting poverty in developing countries, donor aid levels, and support for development amongst the UK public. We are responding to these challenges through our Making it Happen change programme. Making it Happen has 5 key workstreams (results, money, people, communications and systems).

Results The results workstream has delivered a number of successes: ■

An improved format for recording project information (logframe) is helping DFID improve the quality of project design, management and monitoring of results.

■

New DFID-wide evaluation policy will be published in 2009 focussing on increasing decentralised evaluations, and more joint evaluations in line with Paris and Accra commitments.

■

DFID support for the World Bank Statistics for Results Facility will help accelerate the strengthening of statistical systems in 6 pilot countries so that there is more reliable data to better manage and measure development results.

■

A set of Standard Indicators at output and outcome level will enable DFID to aggregate the impact of its aid across countries.

■

New Multilateral performance plans in place with clear objectives and targets which can be tracked over time.

4.30

The laptop refresh programme has increased the number of laptop users and strengthened the ability of DFID’s employees to work flexibly and securely in the office, while travelling and at home.

4.31

Activities Reporting Information E-System (ARIES) is DFID’s new finance, procurement and programme management system. This single fully integrated system replaces 14 existing IT systems and provides staff with a single source of real time information on DFID’s projects and expenditure.

4.32

Following a successful pilot exercise, DFID commenced the roll out of ARIES and approximately two-thirds of DFID’s departments/offices in the UK and overseas are now connected to ARIES. In the last year over 1,500 DFID staff based in the UK and Africa switched to this new single unified system that is now being used to transact much of DFID’s core business. The roll-out will be completed by the third quarter of 2009 with all of DFID’s offices in Asia and the rest of the world switching to ARIES.

Chapter 4: Delivering an efficient and effective organisation

57

Information assurance 4.33

DFID does not manage large volumes of personal or sensitive data, but we take our responsibility for those we do manage very seriously. We have an established governance structure for information security under which we assess and monitor our information risks, and ensure compliance with relevant guidance and instructions from elsewhere in Government. DFID is accredited to ISO/IEC 27001:2005, the internationally recognised standard for information security management. We have had a secure remote working system based on encrypted laptop computers for home workers and travelling staff since 2003. During 2008/09 there were no incidents reportable to the Information Commissioner where personal or sensitive data have been lost, and the Information Commissioner has not found against DFID for breach of Data Protection principles.

Performance in responding to correspondence from the public 4.34

DFID’s enquiry and correspondence units received around 11,500 letters and e-mails from members of the public and organisations during 2008. Approximately 80% of these were answered within the target turnaround time. DFID also dealt with around 108,000 pieces of correspondence resulting from civil society campaigning during 2008.

Dealing with Complaints 4.35

The Parliamentary Ombudsman’s most recently published Annual Report 2007/08 shows that the Ombudsman received no complaints relating to DFID during that year. DFID has in place clear published procedures for complaint handling, but following publication of the Ombudsman’s report on Principles of Good Complaint Handling in November 2008, a central point for complaint handling will be established during 2009 to ensure that all complaints are handled effectively in line with the new guidance.

Scholarships and Fellowships 4.36

The Commonwealth Scholarship Commission (CSC) manages Britain’s contribution to the Commonwealth Scholarship and Fellowship Plan (CSFP) which offers scholarships and fellowships to commonwealth citizens. In 2008/09 seven hundred and twenty-one scholarships and fellowships were funded by DFID through the CSC.

Public Appointments 4.37

DFID is responsible for 18 public appointments to the Commonwealth Scholarship Commission and CDC.

A Greener Department 4.38

DFID is committed to working towards the Government targets for “Sustainable Operations on the Government Estate”. ■

58

We have Environment Management Systems in both UK Offices and a number of our main overseas offices.

Department for International Development: Annual Report 2009: Volume 1

■

■

■

■

DFID was one of the first organisations in the country to achieve the Carbon Trust Standard certification for our UK operations, in recognition of our reduced carbon footprint. DFID has implemented various initiatives to improve our environmental performance. These include new equipment to optimise energy use, better building management systems and awareness campaigns. We have also reduced the number of printers by 37% and replaced them with more energy efficient models. As a result of these measures we have reduced our energy consumption in the UK by 10% compared to 2007/08. Implementation of waterless urinals and dual flush cisterns has dramatically reduced our water consumption, which is now 55% lower than in 2007/08. DFID is also committed to reducing carbon emissions from energy usage and travel, and reduced the total miles flown from our UK offices by 3% compared to 2007/08.

Chapter 4: Delivering an efficient and effective organisation

59

Chapter 5: Analysis of Departmental Expenditure: Tables 1- 7

60

5.1

The tables in this chapter provide information on outturn and plans for public expenditure managed by DFID for the years 2003/04 to 2010/11. Figures on public expenditure (Tables 1, 2, 3 and 6) are derived from Treasury data systems based on DFID returns; past years’ figures may be revised from those published previously to ensure consistent treatment of classification changes. Detailed programme expenditure, balance sheet and staff numbers’ data (Tables 4, 5 and 7) are from DFID systems. The tables do not include an analysis of spending by UK country and region; for this analysis the benefit of DFID’s programmes, and the associated administration and capital expenditure, is assumed to fall outside the UK.

5.2

Table 1 shows all public expenditure managed by DFID analysed by spending in Departmental Expenditure Limit (DEL) and Annually Managed Expenditure (AME); by resource and capital, and by main purpose of the spending (eliminating poverty in poorer countries, conflict prevention and overseas superannuation). Most DFID spending is resource DEL for elimination of poverty in poorer countries.

5.3

Tables 2 and 3 provide a more detailed breakdown of the resource and capital totals in Table 1 by main programme activities. These activities reflect the main objectives in DFID’s Public Service Agreement. The resource figures for each activity in Table 2 include programme costs and any administration costs directly associated with the management of the activity. Administration costs attributed to each objective are in Table 6. Capital spending includes acquisition of fixed assets such as office buildings, houses, IT infrastructure, furniture and vehicles; financial investments in regional development banks and other international financial institutions; debt relief payments; capital grants; and capital receipts from repayment of bilateral and multilateral loans made in earlier years.

5.4

Table 4 gives a breakdown of DFID’s programme resources by budget lines. Figures for 2009/10 and 2010/11 are indicative and may change depending on the progress of programmes during the year. Allocations include capital payments to international financial institutions but not spending on fixed assets purchases and other items accounted for on DFID’s balance sheet. Because of differences in data sources, these figures are not comparable with those for aid spending in Annex A of Volume II of the report.

5.5

Table 5 shows the total capital employed within the Department. Table 6 shows administration budgets by main activity. Table 7 shows numbers of staff employed by DFID.

Department for International Development: Annual Report 2009: Volume 1

Table 1 Total Departmental Spending £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

Eliminating Poverty in Poorer Countries (note 1) Conflict Prevention

3,402,054

3,601,376

4,074,264

4,213,989

4,435,822

4,765,690

5,353,360

6,121,910

44,929

43,939

32,973

32,989

42,672

41,792

86,200

109,000

Total resource budget DEL

3,446,983

3,645,315

4,107,237

4,246,978

4,478,494

4,807,482

5,353,360

6,230,910

of which: Near-cash

3,422,815

3,540,717

4,040,945

4,138,636

4,446,574

4,765,054

5,344,560

6,132,910

Eliminating Poverty in Poorer Countries Overseas Superannuation

51,440

55,695

71,434

403,578

76,853

323,549

124,219

97,790

77,169

76,737

68,121

65,783

58,316

67,700

71,414

61,383

Total resource budget AME

128,609

132,432

139,555

469,361

135,169

391,249

195,633

159,173

of which: Near-cash

118,690

117,198

103,758

113,000

111,627

107,182

109,995

106,000

3,575,592

3,777,747

4,246,792

4,716,339

4,613,663

5,198,731

5,635,193

6,390,083

30,492

24,928

22,085

16,202

19,908

16,682

20,000

25,000

301,682

303,589

446,493

764,934

739,254

876,174

1,366,000

1,556,000

Resource budget Resource DEL

Resource AME

Total resource budget of which: depreciation Capital budget Capital DEL Eliminating Poverty in Poorer Countries (note 1) Conflict Prevention Total capital budget DEL

-

282

354

40

-

-

-

-

301,682

303,871

446,847

764,974

739,254

876,174

1,366,000

1,556,000

Capital AME Total capital budget AME Total capital budget

-

-

-

-

-

-

-

-

301,682

303,871

446,847

764,974

739,254

876,174

1,366,000

1,556,000

3,724,684

3,935,739

4,570,129

5,366,299

5,232,021

5,948,731

6,823,579

7,750,700

44,929

44,214

33,304

33,029

42,672

41,792

86,200

109,000

77,169

76,737

68,121

65,783

58,316

67,700

71,414

61,383

3,846,782

4,056,690

4,671,554

5,465,111

5,333,009

6,058,223

6,981,193

7,921,083

3,718,173

3,924,258

4,531,999

4,995,750

5,204,840

5,666,974

6,785,560

7,761,910

128,609

132,432

139,555

469,361

128,169

391,249

195,633

159,173

Total departmental spending† Eliminating Poverty in Poorer Countries Conflict Prevention Overseas Superannuation Total departmental spending† of which: Total DEL Total AME

† Total departmental spending is the sum of the resource budget and the capital budget less depreciation. Similarly, total DEL is the sum of the resource budget DEL and capital budget DEL less depreciation in DEL, and total AME is the sum of resource budget AME and capital budget AME less depreciation in AME. 1. To align budgeting more closely with the National Accounts treatment which scores investments in International Financial Institutions (IFIs), debt relief payments and capital grants as Capital, payments in respect of these items are classified to capital DEL. These payments continue to be shown within the totals for resource grants in Supply Estimates and Resource Accounts.

Chapter 5: Analysis of Departmental Expenditure: Tables 1- 7

61

Table 2 Resource budget DEL and AME £’000

Resource DEL Eliminating Poverty in Poorer Countries of which: Reducing Poverty in Sub - Saharan Africa Reducing Poverty in Asia Reducing Poverty in the Rest of the World Improve Effectiveness of Multilateral Aid Developing Innovative Approaches to Development Programmes Contributing to Multiple Objectives (note 6) Central Departments EC Development Programmes (note 1) Other (unallocated CFER) Unallocated Provision International Finance Facility for Immunisation Conflict Prevention of which: Sub - Saharan Africa Global Conflict Prevention Pool (note 5) Stabilisation Unit (previously Post Conflict Reconstruction Unit) Conflict Prevention DUP Total resource budget DEL of which: Near-cash of which:† Pay Procurement Current grants and subsidies to the private sector and abroad Current grants to local authorities Depreciation Resource AME Eliminating Poverty in Poorer Countries of which: Programmes Contributing to Multiple Objectives (note 2) International Finance Facility for Immunisation (note 3) Overseas Superannuation of which: Overseas Superannuation (note 4) Total resource budget AME of which: Near-cash of which:† Pay Procurement Current grants and subsidies to the private sector and abroad Current grants to local authorities Depreciation Total resource budget

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

3,402,054

3,601,376

4,074,264

4,213,989

4,435,822

4,741,338

5,353,360

6,117,910

678,166 624,005 442,367 471,572 249,966 91,131

858,458 688,040 266,850 602,365 190,811 217,046

1,094,656 748,426 282,332 822,003 130,840 218,801

1,096,605 780,416 210,069 1,018,383 69,505 228,678

1,241,576 800,926 239,863 1,031,343 204,699 136,018

1,341,726 745,882 376,609 941,312 283,301 -

1,443,320 695,140 386,750 1,180,820 552,066 -

1,696,000 764,500 394,000 1,469,400 586,200 -

51,311 796,057 -2,521 -

89,559 694,359 -6,112 -

79,595 700,237 -2,626 -

111,281 705,648 -6,596 -

73,523 701,400 -2,569 9,043

239,346 798,648 -2,335 16,849

110,600 835,000 123,824 25,840

95,600 822,000 256,290 33,920

44,929

43,939

32,973

32,989

42,672

41,792

86,200

113,000

19,312 25,617 -

19,990 22,355 1,594

13,631 15,294 4,048

13,765 14,018 5,206

18,388 17,640 6,644

34,397 7,395

79,000 7,200

106,000 7,000

-

-

-

-

-

-

-

-

3,446,983

3,645,315

4,107,237

4,246,978

4,478,494

4,783,130

5,439,560

6,230,910

3,422,815

3,540,717

4,040,945

4,138,636

4,446,574

4,740,720

5,344,560

6,132,910

84,302 113,301 3,227,567

92,362 132,080 3,321,524

100,711 605,265 3,333,659

101,826 703,721 3,333,851

110,811 631,448 3,704,315

116,422 679,555 3,985,707

110,000 660,000 4,601,570

108,000 640,000 5,370,000

30,492

24,928

22,085

16,202

12,908

16,682

20,000

25,000

51,440

55,695

71,434

403,578

76,853

323,549

124,219

97,790

51,440

55,695

71,434

91,459

124,621

150,484

130,059

97,790

-

-

-

312,119

-47,768

173,065

-5,840

-

77,169

76,737

68,121

65,783

58,316

67,700

71,414

61,383

77,169

76,737

68,121

65,783

58,316

67,700

71,414

61,383

128,609

132,432

139,555

469,361

135,169

391,249

195,633

159,173

118,690

117,198

103,758

113,000

111,627

107,182

109,995

106,000

-

-

-

-

-

-

-

-

-

-

-

-

7,000

-

-

-

3,575,592

3,777,747

4,246,792

4,716,339

4,613,663

5,198,731

5,635,193

6,390,083

† The breakdown of near-cash in Resource DEL by economic category may exceed the total near-cash Resource DEL reported above because of other income and receipts that score in near-cash Resource DEL but aren’t included as pay, procurement, or current grants and subsidies to the private sector, abroad and local authorities. 1. European Union spending on overseas aid from the the Community budget; this is paid from the Consolidated Fund but for public expenditure purposes is treated as part of DFID’s budget. 2. Cost of capital charge for DFID’s investment in CDC Group plc 3. Accounting provision for future cost of payments to IFFIm (cash payments show as negative AME and positive DEL) 4. Resource cost under FRS17 for the interest costs from unwinding of the discounted provision for superannuation payments to former colonial civil servants and others. 5. From 2008-09, the Africa Conflict Prevention Pool and the Global Conflict Prevention Pool have been merged into a single pool. Plans for 2010-11 reflect the total budget for the Conflict Prevention Pool, some of which will be allocated to the Ministry of Defence and the Foreign & Commonwealth Office as the other participants in the conflict prevention pool. 6. Expenditure shown under this heading until 2007-08 is included within Central Departments Resource DEL expenditure from 2008-09.

62

Department for International Development: Annual Report 2009: Volume 1

Table 3 Capital Budget DEL and AME £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

301,682

303,589

446,493

764,934

739,254

876,174

1,366,000

1,556,000

4,100 1,250 28,648 259,249 200 20,412 -12,177 -

4,518 1,432 19,512 270,909 82 1,965 7,569 -2,398 -

4,919 2,327 13,234 423,314 9 44 9,801 -7,155 -

4,496 1,331 -1,709 751,529 1 411 17,630 -8,755 -

16,357 4,538 9,662 691,123 17,574 -

2,323 1,058 21,165 822,327 50,000 -12,088 -8,611 -

110,000 52,000 38,000 848,000 300,000 8,000 10,000

110,000 52,000 27,000 1,296,000 50,000 14,000 7,000

-

282

354

40

-

-

-

-

-

282

354

40

-

-

-

-

Total capital budget DEL

301,682

303,871

446,847

764,974

739,254

876,174

1,366,000

1,556,000

of which: Capital expenditure on fixed assets net of sales† Capital grants to the private sector and abroad Net lending to private sector Capital support to public corporations

47,535 41,000 196,048 17,099

30,804 54,700 199,625 18,742

29,920 49,500 350,965 16,462

25,229 65,800 673,102 843

66,132 88,480 583,848 794

19,207 130,775 726,192 -

28,000 399,000 929,000 -

34,000 560,000 955,000 -

-

-

-

-

-

-

-

-

301,682

303,871

446,847

764,974

739,254

876,174

1,366,000

1,556,000

47,535 30,492 17,043

30,804 24,928 5,876

29,920 22,085 7,835

25,229 16,202 9,027

66,132 19,908 46,224

19,207 16,682 2,525

28,000 20,000 8,000

34,000 25,000 9,000

Capital DEL Eliminating Poverty in Poorer Countries of which: Reducing Poverty in Sub - Saharan Africa Reducing Poverty in Asia Reducing Poverty in the Rest of the World Improve Effectiveness of Multilateral Aid Developing Innovative Approaches to Development Programmes Contributing to Multiple Objectives Central Departments (note 1) Other (unallaocated CFER) DFID Unallocated Capital Conflict Prevention of which: Stabilisation Unit (previously Post Conflict Reconstruction Unit)

Capital AME Total capital budget AME

Total capital budget Of which: Capital expenditure on fixed assets net of sales† Less depreciation††† Net capital expenditure on tangible fixed assets

† Expenditure by the department and NDPBs on land, buildings and equipment, net of sales. Excludes spending on financial assets and grants, and public corporations’ capital expenditure. †† Included in Resource Budget. 1. From 2008-09, all fixed assets expenditure is shown within Central Departments. All capital receipts are shown within this line for all years.

Chapter 5: Analysis of Departmental Expenditure: Tables 1- 7

63

Table 4: DFID Allocation by Programme DFID’s available programme resources are allocated to country or regional specific aid programmes, international bilateral aid programmes, or other programmes in the annual resource allocation round. This establishes an aid framework allocation, approved by the Secretary of State, which provides divisions within DFID with a firm budget for the current year and planning figures for the subsequent two financial years. The figures in this table are expenditure and plans set in resource budget terms. The figures up to and including 2008/09 show the actual resource outturn for that year, and for 2009-10 and after, indicative planning figures are presented. Detailed plans are not currently available beyond 2010-11. £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

Ethiopia

40,395

66,246

62,018

88,656

140,200

155,564

166,000

196,000

Tanzania

79,819

94,666

109,199

109,752

120,550

130,210

150,000

150,000

Sudan

14,655

88,241

130,835

108,704

115,776

103,629

115,000

140,000

Democratic Republic of the Congo

13,157

38,758

51,892

88,149

77,851

82,797

105,000

133,000

Uganda

54,493

60,591

67,337

73,993

71,610

73,219

75,000

95,000

AED Other

33,713

42,920

44,314

39,663

15,997

1,447

-

-

Kenya

26,001

39,451

64,219

61,268

50,900

69,110

65,700

86,000 21,000

AFRICA1 East and Central Africa

Somalia2

-

-

-

-

27,500

34,687

21,000

Rwanda

28,134

44,337

68,128

16,942

46,313

51,015

50,120

55,000

Burundi2

-

-

12,262

10,021

10,000

10,622

10,000

10,000

290,367

475,210

610,204

597,148

676,697

712,300

757,820

886,000

Nigeria

31,876

45,101

80,952

81,482

101,200

99,298

120,000

140,000

Ghana

58,022

71,387

85,387

68,665

75,411

95,062

86,000

85,000

Malawi

53,107

62,559

70,014

60,936

70,000

65,312

75,000

80,000

Mozambique

36,608

48,291

56,237

54,131

65,000

69,496

70,950

77,950

Sierra Leone

35,160

35,439

32,093

36,189

40,700

47,826

45,000

50,000

Zambia

24,664

26,793

47,128

39,948

42,200

44,401

48,600

54,600

Zimbabwe

33,148

23,717

37,336

32,048

45,245

50,669

40,000

49,000

Total West and Southern Africa

West Africa Other Southern Africa Regional (inc Lesotho, Angola)3

8,000

2,000

58,637

32,924

17,484

28,796

43,817

29,740

66,000

63,000

South Africa2

-

23,074

35,343

21,940

20,000

29,188

20,000

20,000

Liberia

-

-

-

-

9,300

9,225

10,000

10,000

3,311

-

-

-

-

-

-

-

334,533

369,285

461,974

424,135

512,873

540,217

589,550

631,550

Africa- ATP

-

-2,644

-

-

-

-

-

-

Africa Reserve

-

-

-

-

-

-

35,950

92,450

-

-

5,658

-

28,210

33,292

66,000

94,000

3,815

1,712

3,597

2,719

9,325

13,215

41,000

40,000

-

6,000

6,000

4,752

-

-

Lesotho Total Pan-Africa Strategy and Programmes

Africa Regional Budget Humanitarian Assistance Africa Directorate Africa Conflict Prevention Pool1 Other

3,245

Africa Policy Fund

7,014

Total Africa Total

64

-

-

-

-

-

10,816

10,718

15,604

14,000

-176

-

-

14,074

9,884

19,973

18,323

51,535

51,083

148,950

232,450

638,974

854,379

1,092,151

1,039,606

1,241,105

1,303,600

1,496,320

1,750,000

Department for International Development: Annual Report 2009: Volume 1

Table 4: DFID Allocation by Programme... continued £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

280,000

SOUTH ASIA South Asia 214,425

244,983

249,938

240,755

266,033

285,860

275,000

Bangladesh

57,300

125,341

117,573

112,416

116,700

122,847

125,140

150,000

Afghanistan4

68,604

81,943

98,506

98,709

107,000

129,840

123,500

123,000

Pakistan

66,221

24,983

71,651

89,333

91,000

119,973

140,000

175,000

Nepal

27,778

32,178

33,535

34,364

43,000

52,622

46,000

56,000

Asia Regional Policy and Programmes

22,552

3,081

3,625

3,985

4,000

3,284

4,000

4,000

Sri Lanka

-

-

-

2,323

500

234

5,000

-

Asia Reserve (inc Post Tsunami Rehab)

-

-

-

-

-

-

-

-

Asia – ATP

-

-

10,628

7,791

10,850

-

-

-

456,880

512,509

585,456

589,676

639,083

714,660

718,640

788,000

India

SOUTH ASIA Total EUROPE, MIDDLE EAST AMERICAS, CENTRAL AND EAST ASIA Europe/Central Asia EUAccession/Pre Accession Countries5

7,756

6,735

649

-

-

-

-

-

Central Asia, South Caucasus, Moldova6

15,269

18,230

20,114

18,372

19,500

20,717

22,000

14,000

Balkans7

18,197

12,813

13,449

13,650

11,500

11,449

14,000

7,000

-

-

-

-

5,500

-

-

8,000 -

ECAD Regional Ukraine

6,745

5,444

5,874

5,954

3,000

-

-

Russia

21,498

12,543

6,471

4,894

-

-

-

-

Total

69,465

55,765

46,557

42,870

39,500

32,166

36,000

29,000

Latin America8

23,529

20,632

11,265

11,166

11,500

7,419

-

-

Caribbean9

12,246

19,196

11,151

8,481

10,100

8,590

20,000

17,000

Overseas Territories10

38,341

36,153

30,835

35,135

42,900

46,995

61,000

70,000

-

-

-

-

-

-

-

-

74,116

75,981

53,251

54,782

64,500

63,004

81,000

87,000

Americas/Overseas Territories

Latin America –ATP Total Middle East/North Africa Yemen

2,425

5,651

12,336

8,341

12,000

19,130

35,000

50,000

Palestinian Authority

16,868

16,606

14,757

14,964

44,748

41,004

47,000

52,000

Middle East Regional

4,713

7,420

3,258

2,107

2,400

8,588

9,000

-

23,646

17,148

14,985

15,015

15,600

19,000

20,000

22,000

UN Relief & Works Agency for Palestinian Refugees Iraq

211,656

64,296

65,974

43,071

36,800

20,992

15,000

10,000

Total

259,308

111,121

111,310

83,498

111,548

108,714

126,000

134,000 4,000

EMAD Regional Programmes Research/Consultancy/EMAP Regional

278

-249

62

7391

7,900

1,520

-

EBRD subscription (Capital)

16,778

16,469

16,295

-

-

-

-

-

Other2,8

25,990

-

-

-

-

-

-

-

Total

43,046

16,220

16,357

7,391

7,900

1,520

-

4,000

21,652

42,409

33,036

38,416

33,160

37,375

30,000

20,000

-

-

55,330

49,500

50,000

51,524

50,000

50,000

South East Asia China Vietnam2 South East Asia11

59,938

84,348

69,103

61,759

59,850

60,960

64,750

60,000

Total

81,590

126,757

157,469

149,675

143,010

149,859

144,750

130,000

527,525

385,844

384,944

338,216

366,458

355,263

387,750

384,000

1,623,379

1,752,732

2,062,551

1,967,498

2,246,646

2,373,523

2,602,710

2,922,000

TOTAL EUROPE, MIDDLE EAST, AMERICAS, CENTRAL AND EAST ASIA

TOTAL – COUNTRY/REGIONAL PROGRAMMES

Chapter 5: Analysis of Departmental Expenditure: Tables 1- 7

65

Table 4: DFID Allocation by Programme... continued £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

UN, CONFLICT AND HUMANITARIAN Conflict, Humanitarian and Security Security and Justice

3,120

3,749

4,883

9,209

12,834

11,464

12,800

14,000

Humanitarian Response

15,845

58,967

63,662

27,101

19,660

58,629

19,679

29,000

Humanitarian Policy

64,000

48,072

54,797

72,800

54,520

73,602

46,148

65,142

Avian and Human Influenza

-

-

-

-

-

3,041

3,202

-

Conflict

-

2,430

1,426

4,491

4,554

4,327

4,500

5,000

UN Peacebuilding

-

-

-

6,421

20,530

20,704

19,000

24,000

Disaster Risk Reduction

-

-

-

7,580

10,530

11,620

7,305

7,000

Central Emergancy Response Fund

-

-

40,000

43,770

36,083

-

40,000

40,000

Stabilisation Unit

-

1,215

1,432

2,695

4,273

4,660

4,000

4,000

Global Conflict Prevention Pool

25,617

22,345

15,294

12,944

18,180

9,911

79,000

106,000

Total

92,654

143,503

199,497

168,731

200,246

170,504

254,628

293,000

UN Development Programme

37,000

30,250

54,750

50,000

55,000

55,000

45,000

55,000

Commonwealth Programmes

7,751

24,930

19,163

25,688

24,955

28,477

27,700

28,000

UNICEF

17,000

19,000

20,350

20,142

22,700

16,650

26,000

31,000

UNFPA Core Grant

18,100

28,001

30,000

20,422

24,578

25,000

40,000

45,000

-

-

16,000

10,000

19,000

10,000

10,000

10,000

WHO Core Grant

12,500

23,854

3,125

19,457

17,417

12,500

14,000

12,500

Other UN Institutions

14,000

15,872

13,562

14,264

18,350

18,519

16,000

11,000

Technical Cooperation for UN

5,500

21,156

9,289

16,982

7,449

1,736

7,000

4,000

IFAD

3,610

4,600

12,131

1,386

250

29,411

14,000

18,000

FAO (Subscription)

11,000

13,000

8,950

13,700

13,800

16,000

15,533

16,000

UNESCO (Subscription)

12,500

10,076

11,767

11,111

12,000

13,145

12,000

12,000

Other UN & Commonwealth

-

-

1,321

-1,321

-

19

Policy Partnerships

-

-

3,900

3,909

3,500

94

199

-

Agency Performance Funding

-

-

-

-

-

-

10,000

30,000

Business Practice Reform

-

-

-

-

-

-

1,500

UNDOCO

-

-

-

-

-

-

2,500

Unallocated Multilateral Contributions

-

-

-

-

-

9,000

2,000

Total

138,961

190,739

204,308

205,740

218,999

226,551

250,432

278,500

TOTAL UN, CONFLICT AND HUMANITARIAN

231,615

334,242

403,805

374,471

419,245

397,055

505,060

571,500

230,883

257,982

234,431

237,957

280,041

360,176

400,000

451,000

5,339

4,327

4,153

3,924

3,915

3,029

7,000

57,000

EU Attribution12

796,057

694,359

700,237

707,000

725,000

798,648

835,000

822,000

Donor relations

-

-

-

-

-

2,252

3,000

1,000

Global Statistics Partnership

-

-

-

-

2,700

2,754

22,000

24,000

1,032,279

956,668

938,821

948,881

1,011,656

1,166,859

1,269,000

United Nations and Commonwealth

UNAIDS

-

4,000

EUROPE & DONOR RELATIONS European Development Fund (Resource) Other EU Programmes

Europe Regional TOTAL EUROPE & DONOR RELATIONS

2,000 1,355,000

INTERNATIONAL FINANCE AND DEVELOPMENT EFFECTIVENESS International Financial Institutions IDA

149,500

150,000

364,800

493,333

493,333

524,806

506,000

921,000

African Development Fund

40,598

40,597

-

146,627

59,564

139,000

168,000

170,000

Asian Development Fund

29,000

26,154

21,179

-

57,068

28,534

28,534

29,000

Caribbean Dev Bank Special Dev Fund

4,374

4,374

-

5,873

5,873

5,873

13,300

7,000

Other IFI Programmes

1,535

1,979

1,396

36,680

70,000

494

9,835

28,300

-

1,000

15

-

-

20,075

20,300

13,706

14,000

IMF Funds HIPC Trust Fund Contributions HIPC 100% Bilateral Policy Debt relief Reg Dev Banks (Cap Sub) Rapid Social Response Fund Total

66

226

5,000

44,731

54,812

61,657

96,499

100,160

52,830

25,225

841

1,530

854

843

794

-

1,000

-

-

-

-

-

-

-

50,000

50,000

267,733

275,471

428,707

836,938

758,258

765,469

841,435

1,296,600

71,000

Department for International Development: Annual Report 2009: Volume 1

Table 4: DFID Allocation by Programme... continued £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

58,000

Global Funds/DFIs 17,183

15,687

33,649

30,582

32,500

32,322

47,000

Making Aid more Effective

-

-

419

2,532

5,450

7,724

9,925

10,000

IFF for Immunisation

-

-

-

312,119

-38,725

189,914

20,000

33,920

Global Funds, AIDS, TB and Malaria

-

-

-

100,000

100,000

50,033

115,500

195,000

GAVI

-

-

-

-

-

-

2,000

3,000

UNITAID

-

-

-

-

-

-

25,000

45,000

Malaria Iniative

-

-

-

-

-

-

10,000

30,000

Fast Track Initiative

-

-

-

69,939

7,367

72,365

38,900

105,300

Private Sector Infrastructure

Multilateral Efficiency Savings

-

-

-

-

-

-

-

-30,000

17,183

15,687

34,068

515,172

106,592

352,358

268,325

450,220

284,916

291,158

462,775

1,352,110

864,850

1,117,827

1,109,760

1,746,820

Global Environment Funds

61,928

37,929

46,987

35,106

43,629

90,000

144,000

286,000

Global Health Partnerships

60,190

63,438

92,465

37,452

24,201

28,906

27,500

28,500

Health, AIDS and Education

17,331

11,323

15,738

15,487

23,519

12,193

11,540

12,000

Growth and investment

45,610

30,232

21,946

20,112

17,236

17,212

34,882

30,000

-

-

9,904

10,452

12,612

-

-

-

11,704

7,679

823

1,770

2,500

12,812

25,100

10,700

Total TOTAL INTERNATIONAL FINANCE AND DEVELOPMENT EFFECTIVENESS POLICY & RESEARCH Policy Programmes

Sustainable Development Governance and social development Other

-

-

-

-

-

-

-

11,000

56,764

66,054

82,149

89,141

90,491

108,909

103,000

148,000

7,000

11,959

7,113

14,594

14,280

15,750

17,000

20,000

00

00

00

00

5,000

15,120

41,500

34,000

260,527

228,614

227,125

224,114

233,468

300,902

404,522

580,200

Human Development Research

27,843

28,757

41,348

43,129

48,000

46,704

61,569

69,000

Growth and Livelihoods Research

27,946

37,073

41,838

39,697

45,000

47,917

6,800

-

Social, Political and Environmental Change Research

10,847

15,355

13,958

15,411

27,500

-

-

-

Climate and Environment

-

-

-

-

-

22,814

44,675

41,500

Governance in Challenging Environments

-

-

-

-

-

15,681

20,000

17,000

Research Uptake

-

-

-

-

-

11,012

15,000

17,000

Agriculture Research

-

-

-

-

-

-

49,000

54,000

Other

-

-

-

-

-

-

10,000

20,000

Communications Research

12,727

4,099

6,309

6,974

8,000

-

-

-

Total

79,363

85,284

103,453

105,211

128,500

144,128

207,044

218,500

-200,000

Partnership Programme Agreements Civil Society Challenge Fund Global Transparency Fund Total Research

TRADE POLICY Global Trade Liquidity Programme

0

0

0

0

0

0

200,000

Trade-Related Technical Cooperation

3,064

6,989

9,263

6,749

14,500

14,360

20,000

17,000

Total

3,064

6,989

9,263

6,749

14,500

14,360

220,000

-183,000

2,681

6,626

7,113

10,025

14,400

13,707

24,000

23,000

470

847

1,244

732

-

-63

-

-

-

-

-

-

-

-

-

-

4,013

7,027

5,037

5,677

3,524

-

-

7,600

COMMUNICATIONS Development Awareness Strategic Grants Volunteering initiatives Information & Communications for Development Media & Marketing

667

1,552

1,101

1,348

2,105

1,971

7,600

Other

3,806

-

-

-

-

-

2,000

-

Total

11,637

16,052

14,495

17,782

20,029

15,615

33,600

30,600

354,591

336,939

404,336

353,856

396,497

475,005

865,166

646,300

TOTAL – POLICY PROGRAMMES

Chapter 5: Analysis of Departmental Expenditure: Tables 1- 7

67

Table 4: DFID Allocation by Programme... continued £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

Evaluation

558

897

338

607

1,050

1,954

3,000

3,000

FCPD Other Programmes

626

759

911

825

1,600

675

1,000

1,000

1,184

1,656

1,249

1,432

2,650

2,629

4,000

4,000

2,495,685

2,716,727

3,334,716

4,998,248

4,941,544

5,532,898

6,355,696

7,245,620

FINANCE & CORPORATE PERFORMANCE

TOTAL –OTHER PROGRAMMES GRAND TOTAL

1. Outturn includes spending on programmes from Africa Conflict Prevention Pool. The initial pool allocation for 2008/09 is £21,094,000 (see `Africa Conflict Prevention Pool’), future years are indicative only. Plans do not include the unallocated provision. 2. Earlier years are included in regional allocations. 3. Includes South Africa until 2003/04. Includes Angola from 2005/06. 4. Most expenditure in Afghanistan until 2003/04 is in Conflict and Humanitarian spending. 5. In later years only Romania and Bulgaria. 6. Includes Kyrgyz Republic, Tajikistan, Uzbekistan, Armenia, Georgia, and Moldova. 7. Includes country programmes for former Yugoslavia and Albania. 8. Includes current programmes in Nicaragua, Bolivia, Brazil, and regional programmes, and those countries which have graduated – Peru, Mexico and Honduras. 9. Caribbean Community (CARICOM) countries in the independent Caribbean, including Guyana, Jamaica, Belize and the Windward Islands. There are current programmes in Guyana, Jamaica and Caribbean region 10. Includes St Helena, Anguilla, Monserrat, Turks and Caicos, and Caribbean Dependencies programme. We have graduated from Anguilla and Turks and Caicos, but are providing budget support for Pitcairn. 11. Includes country programmes for Indonesia, Cambodia, Burma, East Timor and Vietnam (until 2004/05). 12. Share of EU spending on development programmes attributed to the UK.

Table 5: Department for International Development Capital Employed £000s 2003-04 outturn

2004-05 outturn

2005-06 outturn

2006-07 outturn

2007-08 outturn

2008-09 outturn

2009-10 plans

2010-11 plans

550

350

162

1,588

1,105

614

600

400

Tangible

70,290

75,411

82,997

88,313

113,008

113,975

112,740

111,932

of which: Land and buildings (including leasehold improvements)

40,976

39,618

41,233

42,673

59,012

61,338

63,556

63,182

Vehicles

2,840

3,647

3,072

3,090

2,575

2,662

2,227

2,301

Office and domestic furniture and equipment

8,209

9,231

9,406

9,819

9,912

9,520

7,926

7,122

15,927

17,372

15,857

8,930

10,587

28,335

28,109

28,404

2,338

5,543

13,429

23,801

30,922

12,120

10,922

10,922

1,751,249

2,521,400

2,978,750

2,920,358

3,322,561

4,125,643

4,389,052

4,608,504

1,094,206

307,300

278,736

224,178

174,989

188,224

163,224

138,224

185,247

217,126

146,790

156,525

141,700

365,604

160,000

160,000

Creditors (due within 1 year)

-584,915

-528,169

-455,747

-580,052

-1,231,247

-1,887,288

-1,548,930

-1,394,037

Creditors (due after 1 year)

-216,408

-258,118

-375,747

-375,490

-36,747

-36,818

-39,000

-38,000

Provisions for liabilities and charges

-127,127

-109,523

-98,790

-437,515

-336,862

-514,667

-600,000

-600,000

2,173,092

2,225,777

2,557,151

1,997,905

2,148,506

2,355,287

2,637,686

2,987,024

-

-

-

-

-

-

-

-

2,173,092

2,225,777

2,557,151

1,997,905

2,148,506

2,355,287

2,637,686

2,987,024

Assets and liabilities on the balance sheet at end of year: Fixed assets Intangible

IT equipment & systems Assets in the course of construction Investments Current assets Long term loans (due after more than one year) Debtors, prepayments & cash Liabilities

Capital employed within main department

NDPB net assets Total capital employed in dept’l group

68

Department for International Development: Annual Report 2009: Volume 1

Table 6 Administration Costs £’000 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Outturn

Outturn

Outturn

Outturn

Outturn

Outturn

Plans

Plans

Administration Expenditure Paybill

45,843

53,679

64,261

61,921

74,713

80,082

74,000

72,000

Other

104,462

108,801

103,056

131,530

81,241

88,793

89,950

87,950

Total administration expenditure

150,305

162,480

167,317

193,451

155,953

168,875

163,950

159,950

-4,600

-4,950

-5,099

-2,998

-5,241

-6,146

-5,000

-5,000

145,705

157,530

162,218

190,453

150,712

162,729

158,950

154,950

145,705

157,151

159,525

187,504

147,808

159,534

155,750

151,950

-

379

2,693

2,949

2,904

3,195

3,200

3,000

145,705

157,530

162,218

190,453

150,712

162,729

158,950

154,950

Administration income Total administration budget Analysis by activity Eliminating Poverty in Poorer Countries Conflict Prevention

Total administration budget

1. Administration costs have been restated from previously published figures for all years up to 2007-08 to reflect costs of overseas front-line programme staff now included in programme costs.

Table 7: Staff numbers (full-time equivalents)

Home Civil Servants

Mar-02 Actual

Mar-03 Actual

Mar-04 Actual

Mar-05 Actual

Mar-06 Actual

Dec-06 Actual

Mar-07 Actual

Mar-08 Actual

Mar-09 Actual

1,447

1,620

1,907

1,883

1,801

1,754

1,719

1,612

1,600

Table 7 shows the number of full-time equivalent civil service staff employed by DFID in the UK and overseas, including those working overseas on aid projects. Part-time staff are counted according to percentage of time worked. In accordance with Cabinet Office requirements, numbers prior 2003 include casual staff and a notional figure to represent the amount of overtime worked by our permanent staff.

Chapter 5: Analysis of Departmental Expenditure: Tables 1- 7

69

Glossary and abbreviations Accession countries Countries in the process of joining the European Union. Administrative costs DFID administrative costs include the running costs of DFID Headquarters, overseas costs of staff in agreed diplomatic posts concerned with full time aid administration, including Staff Appointed in Country employed by DFID; expenditure in respect of residual rent liability on the Chatham Maritime site arising from the terms agreed for the privatisation of DFID’s former next steps agency, the Natural Resources Institute; and those elements of Foreign and Commonwealth Office and CDC Capital Partners, formerly known as Commonwealth Development Corporation, administration costs which are related to aid delivery. Aid effectiveness A measure of the quality of aid delivery and maximising the impact of aid on poverty reduction and development. Aid untying Aid that is given where donors do not insist that it is spent on goods and services from the donor country in favour of giving unrestricted access to those who can compete best on price, quality and service. Alignment When donors base their overall support on partner countries’ national development strategies, institutions and procedures. Bali Action Plan This is the outcome of the Bali Summit (December 2007) where after two weeks of intense negotiations, governments of more than 190 countries reached agreement on a roadmap for achieving a global climate change deal by the end of 2009. Bilateral aid Bilateral aid is provided to developing countries and countries in transition of the Development Assistance Committee List on a country to country basis, and to institutions, normally in Britain,working in fields related to these countries. BRICS A group of 5 countries, Brazil, Russia, India, China and South Africa, with a growing influence and impact on regional and global issues. The UK works in areas where our BRICS partners want UK involvement as they develop their approaches; the BRICS strategy is very much a cross government strategy, and in some cases our work will take place through and with other UK government departments. 70

Department for International Development: Annual Report 2009: Volume 1

Budgetary assistance or budgetary support See Direct budget support or General budget support. Civil society organisations All civic organisations, associations and networks, which occupy the ‘social space’ between the family and the state who come together to advocate their common interests through collective action. It includes volunteer and charity groups, parents’ and teachers’ associations, senior citizens’ groups, sports clubs, arts and culture groups, faith-based groups,workers’ clubs and trade unions, non-profit thinktanks and ‘issue-based’ activist groups. Concessional resources A loan, the terms of which are more favourable to the borrower than those currently attached to commercial market terms, is described as concessional (or a soft loan) and the degree of concessionality is expressed as its grant element. Conditionality When donors require their developing country partners to do something in order to receive aid. If the condition is not fulfilled it will generally lead to aid being interrupted or suspended. The UK policy on conditionality is that our aid is based on three shared commitments with partner governments: poverty reduction and meeting the MDGs; respecting human rights and other international obligations; and strengthening financial management and accountability and reducing the risk of funds being misused thorough weak administration or corruption. If partner governments move away from these conditions,we can suspend, interrupt, delay or change how we deliver our aid.We do not use conditions to impose specific policy choices on countries. Countries in transition Term used to describe former Soviet countries in Eastern Europe and the former Soviet Union, and China, Mongolia and Vietnam. Country Assistance Plans DFID has produced or is producing Country Assistance Plans for all countries where we provide development assistance programmes of more than £20 million. These papers, produced in consultation with governments, business, civil society and others within the country concerned and within the UK, set out how we aim to contribute to achieving the international development targets in the country in question. Country Assistance Plans are normally intended to cover a three- to four-year period. For some groups of countries a Regional Assistance Plan is produced. Country-led approaches Where donors allow partner countries to take the lead in the design and delivery of development and provide support to partner counties (see ownership and alignment). Debt relief Debt relief may take the form of cancellation, rescheduling, refinancing or re-organisation. Interest and principal foregone from debt cancellation forms part of DFID programme expenditure whilst other debt relief is funded from other official sources. a. Debt cancellation (or Retrospective Terms Adjustment) is relief from the burden of repaying both the principal and interest on past loans. b. Debt rescheduling is a form of relief by which the dates on which principal or interest payments are due, delayed or rearranged. Glossary and abbreviations

71

c. Official bilateral debts are re-organised in the Paris Club of official bilateral creditors, in which the UK plays its full part. The Paris Club has devised increasing generous arrangements for reducing and rescheduling the debt of the poorest countries, most recently agreeing new terms for the enhanced Heavily Indebted Poor Countries Initiative.

Developing countries See Development Assistance Committee: List of aid recipients. Development Assistance Committee The Development Assistance Committee of the Organisation for Economic Co-operation and Development is a forum for consultation among 22 donor countries and the European Commission on how to increase the level and effectiveness of aid flows to all aid recipient countries. The member countries are Australia, Austria, Belgium, Canada, Denmark, European Commission, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the UK and the United States. Development Assistance Committee: List of aid recipients This list used to be in two parts (Part I for countries and territories eligible to receive official development assistance (ODA) and Part II for countries and territories eligible to receive official aid (OA)). From December 2005 there is only one list. Those countries eligible for ODA and details of these countries are shown in Annex 1 of Statistics on International Development. The list is designed for statistical purposes and not as guidance for aid or other preferential treatment. In particular, geographical aid allocations are national policy decisions and responsibilities. Direct budget support Direct budget support is a form of programmatic aid in which: a. Funds are provided in support of a government programme that focuses on growth and poverty reduction, and transforming institutions, especially budgetary. b. The funds are provided to a partner government to spend using its own financial management and accountability systems.

Donor See Development Assistance Committee. European Community The 27 member states and the common institutions, notably the European Commission, co-operating on a range of economic and other issues in supra-national integration. European Development Fund The European Development Fund is the main route through which funds committed under the EC’s Cotonou Convention are channelled. European Union Created by the Treaty of Maastricht 1992, which enhanced the integration of the European Community but also enabled the member states to co-operate together in an inter-governmental, not supra-national,way in the areas of Common Foreign and Security Policy Justice and Home Affairs.

72

Department for International Development: Annual Report 2009: Volume 1

Financial aid Financial aid in the wider sense is defined as a grant or loan of money which is the subject of a formal agreement with the recipient government or institution. In practice it is all bilateral aid except technical co-operation and administrative costs. Fragile states Those states where the government cannot or will not deliver core functions to the majority of its people, including the poor. General budget support See Direct budget support and Poverty reduction budget support.

Globalisation The growing independence and interconnectedness of the modern world through increased flows of goods, services, capital, people and information. The process is driven by technological advances and reductions in the costs of integrated transactions, which spread technology and ideas, raise the share of trade in world production and increase the mobility of capital. Gross domestic product The total value of goods and services produced within a country. Gross national income Previously known as gross national product, gross national income (GNI) comprises the total value of goods and services produced within a country (i.e. its gross domestic product), together with its income received from other countries (notably interest and dividends), less similar payments made to other countries. G7/G8 Group The G7 Group of major industrialised democracies comprises Canada, France, Germany, Italy, Japan, the UK and the United States. The Group of Eight (G8) includes Russia. Their heads of government meet annually at the G7/G8 Summit to discuss areas of global concern. Harmonisation Where donors co-ordinate their aid and use common procedures to ensure they are not duplicating work or placing unnecessary demands on their developing country partners. Heavily Indebted Poor Countries Initiative An initiative launched by the International Monetary Fund and the World Bank in 1996 to provide debt relief to the poorest countries. Revised in 1999 to deliver twice as much debt relief as the original initiative.

Humanitarian assistance Humanitarian assistance comprises disaster relief, food aid, refugee relief and disaster preparedness. It generally involves the provision of material aid (including food, medical care and personnel) and finance and advice to save and preserve lives during emergency situations and in the immediate post- emergency rehabilitation phase; and to cope with short- and longer-term population displacements arising out of emergencies. Income groups The classification of aid recipient countries by income groups is based on GNI per capita figures in 2004 according to the thresholds set out below. These are updated regularly but the 2004 income

Glossary and abbreviations

73

groups are used for reporting against the 2008-11 PSA. These thresholds are identical to those used by the World Bank as follows: Low income group: countries with a GNI per capita in 2004 of below $825. Lower middle income group: countries with a GNI per capita in 2004 of $826 or above but not exceeding $3225. Upper middle income group: countries with a GNI per capita in 2004 of $3226 or above but not exceeding $10,065. High income group: countries with a GNP per capita in 2001 of $10,066 or above.

Institutional Strategy Papers Institutional Strategy Papers are designed to set our partnerships with multilateral development institutions in a strategic framework. The papers are prepared in consultation with that institution and other interested parties and set out the objectives for our partnership with that institution. Institutional Strategy Papers have been or are being prepared for our main partner institutions and will normally be produced every three to four years. Internally Displaced Persons Persons who have been forced or obliged to flee or to leave their homes or places of habitual residence, in particular as a result of or in order to avoid the effects of armed conflict, situations of generalised violence, violations of human rights or natural or human-made disasters, and who have not crossed an internationally recognised state border. Intellectual property rights National and international systems provide for the protection and enforcement of intellectual property rights. Intellectual property constitutes private property rights over ideas and inventions. The principal intellectual property rights are copyrights (material which can be reproduced only with permission of the owner, who can charge for it), patents (product designs or processes which can be used only with permission of the owner, who can charge for it), trademarks (registered marks that exclusively identify a product or economic entity, which cannot be used by others), and industrial designs. International Development Association Part of the World Bank Group that makes loans to countries at concessional rates (i.e. below market rates) of interest. Least developed country Least developed countries are those assessed as having particularly severe long-term constraints to development. Inclusion on the list of least developed countries is now assessed on two main criteria: economic diversity and quality of life. Low income countries Countries in the low income group, as defined in Income groups. Managing for results Management strategies that focus on performance and improvements in country outcomes and provide a framework in which performance information is used for improved decision making. Middle income countries Countries in the lower middle and upper middle income groups (see Income groups).

74

Department for International Development: Annual Report 2009: Volume 1

Millennium Development Goals A set of eight international development goals for 2015, adopted by the international community in the UN Millennium Declaration in September 2000, and endorsed by IMF,World Bank and OECD. These are set out in full in Annex three. Multilateral aid Aid channelled through international bodies for use in or on behalf of aid recipient countries. Aid channelled through multilateral agencies is regarded as bilateral where DFID specifies the use and destination of the funds. Non-governmental organisations Private non-profit making bodies, which are active in development work.To qualify for official support, UK non-governmental organisations must be registered charities. Official aid This refers to countries on the DAC Part II list of countries which ceased to exist from 2005.To qualify as official aid, resource flows should have had the same concessional and qualitative features as ODA. Official development assistance Official development assistance is defined as those flows to developing countries and multilateral institutions provided by official agencies or by their executive agencies, which meet the following tests: a. It is administered with the promotion of the economic development and welfare of developing countries as its main objective. b. It is concessional in character and conveys a grant element of at least 25%. From 2005 only aid to countries on the DAC List of Recipients of Official Development Assistance is eligible to be recorded as ODA.

Organisation for Economic Co-operation and Development (OECD) A group of major industrial countries promoting growth and high employment among its members, fostering international trade and contributing to global economic development. Ownership Partner countries exercise effective leadership over their development policies and strategies and co-ordinate development actions. Paris Declaration The Paris Declaration is an international agreement in which over one hundred countries and organisations committed to continue to increase efforts in harmonisation, alignment and managing aid for results with a set of monitorable actions and indicators. Source: www.oecd.org.

Glossary and abbreviations

75

Paris Declaration baseline survey The Paris Declaration is an ambitious set of 56 commitments group under 5 principles of ownership, alignment, harmonisation, management for development results and mutual accountability. The Declaration includes 12 indicators with targets to monitor progress, these were assessed in a baseline survey in 2006 and 2008. Poverty reduction budget support Poverty reduction budget support is a form of financial aid in which funds are provided directly to a partner government’s central exchequer to support that government’s programmes. This can be in the form of general budget support (not directed at particular sectors) or sector budget support. Poverty Reduction Strategies (PRSs) PRSs are prepared by partner country governments, often in collaboration with development partners. They describe the country’s macroeconomic, structural and social policies and programmes to promote growth and reduce poverty. Predictability A measure of how predictable flows of aid to developing partner countries are. This includes the extent to which aid promised within a given year is delivered and how many years in the future donors provide information about aid to be provided. Programme aid Programme aid is financial assistance specifically to fund (i) a range of general imports, or (ii) an integrated programme of support for a particular sector, or (iii) discrete elements of a recipient’s budgetary expenditure. In most cases, support is provided as part of a World Bank/International Monetary Fund co-ordinated structural adjustment programme. Programme-based approaches Programme-based approaches are funds provided to a sector to deliver a single programme, led by the partner country, with a single budget and a formal process for donor co-ordination, and that make efforts to increase the use of developing partner countries’ systems. Public financial management A PFM system has three key objectives: to maintain fiscal discipline (securing stewardship), keeping spending within limits created by the ability to raise revenue and keeping debt within levels that are not prohibitively expensive to service; to promote strategic priorities (enabling transformation) – allocating and spending resources in those areas that make the greatest contribution to the government’s objectives; and to deliver value for money (supporting performance) – efficient and effective use of resources in the implementation of strategic priorities. Public/private partnership A public/private partnership brings public and private sectors together in partnership for mutual benefit. The term public/private partnership covers a wide range of different partnerships, including the introduction of private sector ownership into businesses that are currently state-owned, the Private Finance Initiative, and selling government services into wider markets.

76

Department for International Development: Annual Report 2009: Volume 1

Public Service Agreement A set of measurable targets for DFID’s work, as required by the White Paper Public Services for the Future: Modernisation, Reform,Accountability (CM4181). See Annex four for DFID’s Public Service Agreement 2005-08.

Regional development banks International development banks, which serve particular regions, for example the African Development Bank or the European Bank for Reconstruction and Development. Remittances Remittances are monies sent from one individual or household to another. International remittances are those sent by migrant workers who left their home country. Domestic remittances are those sent by migrant workers who left their home village or town to work elsewhere in their home country (e.g. rural-urban migration; sometimes also referred to as national remittances). Communal or collective remittances are monies sent by migrant associations or church groups to their home communities.Typically remittances are in cash rather than goods. Imports or goods purchased on location are, however, also common. Scaling up Identifying the most effective ways to channel additional resources in order to maximise impact on the MDGs. Sector One of the areas of recipient countries’ economic or social structures that aid is intended to support. DFID categorises its aid into eight broad sectors: Economic, Education, Health, Governance, Social, Rural Livelihoods, Environment and Humanitarian Assistance. Sector wide approaches or sector investment programmes A sector wide approach is a process that entails all significant donor funding for a sector supporting a single, comprehensive sector policy and expenditure programme, consistent with a sound macroeconomic framework, under government leadership. Donor support for a sector wide approach can take any form – project aid, technical assistance or budgetary support – although there should be a commitment to progressive reliance on government procedures to disburse and account for all funds as these procedures are strengthened. Security sector The security sector is defined as those who are, or should be, responsible for protecting the state and communities within the state. This includes military, paramilitary, intelligence and police services as well as those civilian structures responsible for oversight and control of the security forces and for the administration of justice.

Spending review A fundamental re-evaluation of priorities, objectives and targets by the UK government, which establishes a three-year planning cycle including spending plans, for all Departments. The 2007 Comprehensive Spending Review runs from 2008/09 to 20010/11. Technical co-operation/technical assistance Technical co-operation is the provision of advice and/or skills, in the form of specialist personnel, training and scholarship, grants for research and associated costs.

Glossary and abbreviations

77

Untied aid See Aid untying. World Bank The term World Bank is commonly used to refer to the International Bank for Reconstruction and Development and the International Development Association. Three other agencies are also part of the World Bank, the International Finance Corporation, the Multilateral Investment Guarantee Agency and the International Centre for Settlement of Investment Disputes.Together these organisations are referred to as the World Bank Group. World Trade Organisation The World Trade Organisation exists to ensure that trade between nations flows as smoothly, predictably and freely as possible.To achieve this, the World Trade Organisation provides and regulates the legal framework that governs world trade. Decisions in the World Trade Organisation are typically taken by consensus among the 146 member countries and are ratified by members’ parliaments.

78

Department for International Development: Annual Report 2009: Volume 1

Abbreviations 3EI International Initiative on Impact Evaluation A4T Aid for Trade ACP Africa, Caribbean and the Pacific ACPP Africa Conflict Prevention Pool ADB Asian Development Bank AECF Africa Enterprise Development Fund AfDB African Development Bank AIDS Acquired Immune Deficiency Syndrome AMC Advance Market Commitments APF African Partnership Forum APRM African Peer Review Mechanism ART Anti-retroviral treatment ARTF Afghanistan Reconstruction Trust Fund ARIES Activities Reporting Information E-System AsDB Asian Development Bank AsDF Asian Development Fund ATP Aid and trade provision AU African Union BAP Bali Action Plan BBSRC Biotechnology and Biological Sciences Research Council CAP Country Assistance Plan CDC CDC Group plc formerly Commonwealth Development Corporation CDM Clean Development Mechanism CEIF Clean Energy Investment Framework CERF Central Emergency Response Fund CHAP Common Humanitarian Action Plan CHF Common Humanitarian Fund CHOGM Commonwealth Heads of Government Meeting CfA Commission for Africa CHAI Clinton Foundation for HIV & AIDS Initiative CIPFA Chartered Institute of Public Finance and Accountancy CIS Commonwealth Independent States COMESA Common market for Eastern and Southern Africa CPEs Country Programme Evaluations CSCF Civil Society Challenge Fund CSOs Civil Society Organisations Glossary and abbreviations

79

CSR Comprehensive Spending Review DAC Development Assistance Committee of the Organisation for Economic Co-operation and Development DBIS Department for Business, Innovation and Skills (Formerly known as the Department for Business, Enterprise and Regulatory Reform) DECC Department for Energy and Climate Change DEFRA Department for Environment, Food and Rural Affairs DDA Doha Development Agenda DFI Development Finance Institutions DFID Department for International Development DoC Drivers of change DOTS Directly Observed Treatment Short-course for tuberculosis DPA Development Partnership Agreement DPF Divisional Performance Frameworks DRF Debt Reduction Facility DRR Disaster Risk Reduction Policy DSF Debt Sustainability Framework DSOs Departmental Strategic Objectives EAIF Emerging Africa Infrastructure Facility EBRD European Bank for Reconstruction and Development EC European Commission ECA Export Credit Agency ECDG Export Credit Guarantees Department EDF European Development Fund EEAS Energy Efficiency Accreditation Scheme EIB European Investment Bank EIF Enhanced Integrated Framework for Trade Related Technical Assistance EITI Extractive Industries Transparency Initiative EPAs Economic Partnership Agreements ESPA Ecosystem Services and Poverty Alleviation ETF-IW The international window of the Environmental Transformation Fund EU European Union EvD Evaluation Department FAO Food and Agriculture Organisation of the United Nations FCO Foreign and Commonwealth Office FCPF Forest Carbon Partnership Facility FLEGT EU Forest Law Enforcement FRA Fiduciary Risk Assessment 80

Department for International Development: Annual Report 2009: Volume 1

FTI Fast Track Initiative G7/8 Group of seven/eight leading industrialised nations G20 Group of twenty leading industrialised nations G90 Group of ninety nations G110 Group of one hundred and ten nations GAVI Global Alliance for Vaccines and Immunisation GBS General Budget Support GCPF Global Conflict Prevention Pool GDP Gross domestic product GEF Global Environment Facility GFATM Global Fund to Fight AIDS, TB and Malaria GFP Global Funds and Partnerships GHGs Greenhouse Gases GNI Gross national income GPOBA Global Partnership for Output Based Aid GSIF Global Science and Innovation Forum GTF Governance and Transparency Fund GTZ Gesellschaft für Technische Zusammenarbeit (international cooperation enterprise mainly engaged on German Technical Co-operation). HIPC Heavily Indebted Poor Countries HIV Human Immunodeficiency Virus HLF High Level Forum Meeting HMT Her Majesty’s Treasury IACDI Independent Advisory Committee on Development Effectiveness IADB Inter-American Development Bank IATI International Aid Transparency Initiative ICF Investment Climate Facility for Africa ICPD International Conference on Population and Development ICRD Canada’s International Development Research Centre ICSU International Campaigns and Strategy Unit IDA International Development Assistance IDC International Development Committee IDP Internally displaced person IEA International Energy Agency IFAP International Federation of Agricultural Producers IFAD International Fund for Agricultural Development IFC International Finance Corporation

Glossary and abbreviations

81

IFF International Finance Facility IFFIm International Finance Facility for Immunisation IFI International financial institution IFRC International Federation of Red Cross and Red Crescent Societies IHP International Health Partnerships IiP Investors in People ILO International Labour Organisation IMF International Monetary Fund IS Institutional Strategy JAS Joint Assistance Strategy KPCS Kimberley Process Certification Scheme LDC Least developed countries LIC Low income country MDB Multilateral Development Banks MDES Multilateral Development Effectiveness Summaries MDG Millennium Development Goal MDRI Multilateral Debt Relief Initiative MENA Middle East and North Africa MIC Middle income country MOD Ministry of Defence MSU Mediation Support Unit NAO National Audit Office NATO North Atlantic Treaty Organisation NCP National Contact Point for OECD’s Multinational Enterprise Guidelines NDPB Non-departmental public body NEPAD New Partnership for Africa’s Development NGO Non-governmental organisation NONIE Network of Networks on Impact Evaluation OCC Office of Climate Change OCHA United Nations Office for the Co-ordination of Humanitarian Affairs ODA Official development assistance OECD Organisation for Economic Co-operation and Development OFT Office of Fair Trading OGC Office of Government Commerce OPD Overseas Pensions Department PBC United Nation’s Peace Building Commission PCD Policy Coherence for Development

82

Department for International Development: Annual Report 2009: Volume 1

PCRU Post Conflict and Reconstruction Unit PD Paris Declaration PDPs Product Development Public-Private Partnerships PEFA Public expenditure and financial accountability PERT Programme for the Enhancement of Research Information PIAF Public Infrastructure Advisory Facility PIDG Private Infrastructure Development Group PPA Partnership Programme Agreements PRBS Poverty Reduction Budget Support PRS Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper PSA Public Service Agreement RAM Resource Allocation Model RAP Results Action Plan RBM Roll back malaria REDD Reduced Emissions from Deforestation in Developing Countries RRI Rights and Resource Initiative RTA Regional Trade Agreements SADC South African Development Community SAIC Staff appointed in country SARID Sustainable Agriculture Research for International Development SBS Sector Budget Support SCS Senior Civil Service SDAP Sustainable Development Action Plan SDC Sustainable Development Commission SDD Sustainable Development Dialogue SDIG Sustainable Development in Government SME Small to Medium Enterprises SOGE Sustainable Operations on the Government Estate SPA Strategic Partnership for Africa SRH Sexual and reproductive heath SRSA Strategy for Research on Sustainable Agriculture SSA sub-Saharan Africa SSR Security Sector Reform TACIS Technical Assistance for Commonwealth of Independent States TB Tuberculosis TPU Joint Trade Policy Unit

Glossary and abbreviations

83

UK United Kingdom of Great Britain and Northern Ireland UKCDS UK Collaborative for Development Sciences UN United Nations UNAIDS Joint United Nations Programme on HIV & AIDS UNCAC United Nations Convention Against Corruption UNCCD United Nations Convention to Combat Desertification UNDP United Nations Development Programme UNEP United Nations Environment Programme UNESCO United Nations Educational, Scientific and Cultural Organisation UNFCCC United Nations Framework Convention on Climate Change UNFPA United Nations Population Fund UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund UNIFEM United Nations Development Fund for Women UNITAID United Nations International Drug Purchasing Facility UNGEI United Nations Girls’ Education Initiative USAID United States of America Agency for International Development UNSG United Nations Secretary General VFM Value for Money VPA Voluntary Partnership Agreements VSO Voluntary Service Overseas WASH Water, Sanitation and Hygiene Programme WFP World Food Programme WHO World Health Organization WRI World Resources Institute WTO World Trade Organisation

Printed in the UK for The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID6205425 07/09 Printed on Paper containing 75% recycled fibre content minimum. 84

Department for International Development: Annual Report 2009: Volume 1