DFID and the African Development Bank: Report, together with formal minutes

DFID and the African Development Bank: Report, together with formal minutes

Author: Great Britain. Parliament. House of Commons. International Development Committee

Publisher: The Stationery Office

Published: 2008

Total Pages: 52

ISBN-13: 9780215515131

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The Department for International Development's (DFID) recent doubling of support to the African Development Bank (AfDB) is an affirmation of early successes in the Bank's reform programme. The Bank's President Donald Kaberuka and his staff are overseeing critical changes-notably the decentralisation and 'results' agendas-that will help the AfDB fulfil its potential as the driver of development in Africa. Record donor support pledged under the eleventh replenishment of the African Development Fund (ADF 11) must be supported by maximising the effectiveness of AfDB strategies. Infrastructure investments must do more to build local industry and capacity. Compliance with global transparency benchmarks must be a pre-requisite for AfDB financing of extractive industry projects. DFID has influenced many of the most significant reforms to the Bank and deserves credit for this. It must now keep a watchful eye on the implementation of these reforms. DFID should argue for a reconfigured Board structure that enables the leverage of DFID and other major donors at the Bank to be commensurate with their increasing contributions to the institution. DFID must help ensure that both the Bank's key performance indicators and the extent to which its own objectives are being met are rigorously assessed. The Bank has the potential to become a regional leader. DFID must continue its worthwhile and highly creditable support to ensure the institution fulfils this promise.


DFID's role in building infrastructure in developing countries

DFID's role in building infrastructure in developing countries

Author: Great Britain: Parliament: House of Commons: International Development Committee

Publisher: The Stationery Office

Published: 2011-10-07

Total Pages: 164

ISBN-13: 9780215561596

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The International Development Committee reports that DFID can be proud of much of the work it does to build infrastructure in developing countries - on which the Department spends £1 billion annually. But it calls on Ministers to improve monitoring of infrastructure spending through multilateral organisations, such as the EU, World Bank and African Development Bank. The UK should also insist on provisions in large multilateral infrastructure projects which require local capacity building in order to boost local employment and the private sector with developing countries. The MPs also raise concerns that infrastructure construction in developing countries is particularly prone to corruption. The report points to DFID's success in helping to establish the Construction Sector Transparency Initiative (CoST) to counter corruption, which has proved effective and is to be transferred to the World Bank. DFID should continue to provide the funding and staff time to ensure that CoST can build on the successes of its pilot phase. DFID should publish a departmental strategy on infrastructure. This would help DFID clearly to convey its rationale and priorities within the sector, emphasising that DFID funding is directed to the Department's key priorities within the sector, including the need to build local capacity, implement road safety measures and ensure the use of technologies appropriate to the needs of developing countries. Far more private money is needed to finance large infrastructure projects, and DFID has done well in helping leverage private funding through initiatives such as the Private Infrastructure Development Group.


DFID's assistance to Zimbabwe

DFID's assistance to Zimbabwe

Author: Great Britain: Parliament: House of Commons: International Development Committee

Publisher: The Stationery Office

Published: 2010-03-26

Total Pages: 70

ISBN-13: 9780215545282

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This report finds that UK aid has helped deliver progress in Zimbabwe since the Government of National Unity was established a year ago, but governance, human rights and provision of basic services are still falling well below the needs of the people. The Department for International Development (DFID) allocated £60 million for humanitarian and development assistance in the country in 2009-10. This support has been effective in reaching poor and vulnerable people. UK aid should continue, given the scale of ongoing need - two million people are estimated to require food aid this year - and should be increased in the sectors where it is making the greatest impact. Aid should continue to be channelled through non-governmental organisations and multilateral agencies. Emergency aid is making a difference but it cannot be turned into sustained development support without a long-term political settlement. The report condemns the electoral manipulation, abuse of state power, land seizures, and violence against political opponents and civil society which President Mugabe's ZANU-PF have inflicted on the country for many years. Many skilled workers left the country, leaving the health and education systems in particular near collapse. The report concludes that the international community's longer-term focus should be on strengthening the capacity of the Government of National Unity so that it is better placed to determine its own development priorities and to deliver them.


The closure of DFID's bilateral aid programme in Burundi

The closure of DFID's bilateral aid programme in Burundi

Author: Great Britain: Parliament: House of Commons: International Development Committee

Publisher: The Stationery Office

Published: 2011-10-28

Total Pages: 86

ISBN-13: 9780215561985

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The Department for International Development (DFID) has decided to close its bilateral aid programme in Burundi in 2012. Burundi is a fragile country which has experienced decades of civil war. It is one of the poorest countries in the world and is unlikely to meet most of the Millennium Development Goals. DFID's states that despite such closure, it will: continue funding Burundi both through a regional programme Trade Mark East Africa (TMEA) and multilateral donors (the EU, the World Bank, African Development Bank) to which DFID is a major contributor; that, other donors will take over bilateral programmes which it has been funding and that the cost of the office in Burundi is too high in relation to the size of the programme. The Committee believes though that the Government should reinstate a bilateral aid programme to Burundi for the following reasons, including: that the UK currently has bilateral programmes with all the countries in the Eastern Africa and Great Lakes Region and that the UK's engagement continues to be critical throughout this region both in perception and reality; that Trade Mark East Africa (TMEA), has already helped to increase Burundi's collection of tax revenues; that there are funding gaps in many sectors in Burundi; that there is a regional dimension to conflicts in the Great Lakes area and Burundi is particularly fragile. The Committee states if DFID does cease bilateral aid to Burundi, a responsible exit strategy is the least it can do to minimise the negative consequences.


Tax in Developing Countries

Tax in Developing Countries

Author: Great Britain: Parliament: House of Commons: International Development Committee

Publisher: The Stationery Office

Published: 2012-08-23

Total Pages: 168

ISBN-13: 9780215047533

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This report highlights the importance of tax collection in developing countries, and recommends that the UK's aid programme should increase its focus on supporting tax authorities. This is equally valid for all forms of taxation, including VAT, personal income taxation and corporate taxation. It is also essential that taxes are paid on a fair and equal basis by all. New tax rules on developing countries, the Controlled Foreign Companies (CFC) rules are designed to discourage UK-owned corporations from using tax havens. Traditionally these rules have applied to all UK-owned corporations - both those operating in the UK and those operating overseas. Under the new rules, however, this will apply only to corporations operating in the UK, making it easier for those operating in developing countries to use tax havens. A number of NGOs have campaigned vigorously against the changes, with ActionAid estimating that developing countries may lose up to £4 billion in tax revenues as a result. The UK Government does not accept this estimate, but does not deny that there will be some cost to developing countries. The Committee recommends that - subject to the outcome of its own analysis - the Government should consider reversing the change as a matter of urgency. The Committee also received evidence which argued that the Government should require UK-owned companies to report their financial information on a country-by-country basis, rather than on an aggregate basis. The Government is reluctant to act unless other EU countries do likewise, but the Committee believes that it should act unilaterally


EU development assistance

EU development assistance

Author: Great Britain: Parliament: House of Commons: International Development Committee

Publisher: The Stationery Office

Published: 2012-04-27

Total Pages: 120

ISBN-13: 9780215043948

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The UK spends approximately £1.23 billion each year on aid through the European Union, approximately 16% of the UK's total aid budget. Only 46% of this aid, however, goes to low income countries - a figure that MPs say is 'unacceptable'. Instead middle income countries bordering Europe are benefiting. Turkey has consistently been in the top five recipients of European Commission aid (223 million euros in 2010) as has Serbia (euros 218 million in 2010). The Committee is calling on the UK Government to press for funding to be diverted, away from higher middle income countries bordering Europe, to give greater help to the poorest people in the world. In order to make this happen, the MPs say Ministers must challenge and change the definition of Official Development Assistance (ODA). It appears to be being used as a way of fudging the figures to help other European countries meet the target for 0.7% of GDP to be given as aid. The Committee recognises that there are a number of advantages to giving aid through the EU but identifies a number of problems with the way EU Development Assistance works. Overall, the European Commission has improved its performance over the last decade and has recently proposed further improvements to development policy in An Agenda for Change. The Committee supports a number of these proposed changes, but it does have concerns that conditionality should not hurt the poor for the sins of their governments


The World Food Programme and Global Food Security

The World Food Programme and Global Food Security

Author: Great Britain. Parliament. House of Commons. International Development Committee

Publisher: The Stationery Office

Published: 2008

Total Pages: 64

ISBN-13: 9780215522108

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Hunger and malnutrition are long-term problems facing the world. Recent food price rises have greatly exacerbated the difficulties poor people face in accessing nourishing food and have dragged up to 100 million people back into poverty. The World Food Programme's (WFP) 'pipeline' of emergency food has never been more important. WFP does crucial work at the frontline of humanitarian emergencies and in building the resilience of communities to deal with long-term hunger. Up to 20 million tonnes of food may be needed to feed new groups of people being pushed into poverty by food price rises. Significant increases to the WFP's budget are likely to be needed in order to secure this additional food supply. The usual annual total of US$3 billion in voluntary contributions may need to double to US$5-6 billion. Malnutrition is responsible for one-third of child deaths, yet it is under-funded and under-emphasised by the international community and the UN system. The Committee is shocked that DFID lacks a specific nutrition policy and measurable targets for assessing progress in reducing malnutrition. The establishment of the UN Taskforce and its Comprehensive Framework for Action on food security are positive steps. Agencies such as DFID and the WFP must look beyond the current crisis and address long-term drivers of food security. DFID should re-focus on agriculture. Reforms to the UN system are another important factor in improving future responses to food insecurity. There is scope for far greater integration of the work done by the three Rome-based UN agencies. Identifying the WFP as the lead UN agency on hunger would contribute to a more coherent international approach.


Trade, Development and Environment

Trade, Development and Environment

Author: Great Britain: Parliament: House of Commons: Environmental Audit Committee

Publisher: The Stationery Office

Published: 2006-08-16

Total Pages: 242

ISBN-13: 0215030540

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This report finds that Department for International Development (DFID) has the potential to take the lead internationally on integrating the environment into development: the structures and links exist but there is still an under-appreciation of the role of the environment in sustainable development. The report sets out the background, covering what poor people want, the Millennium Ecosystem Assessment, and Millennium Development Goals. It then considers development aid and how it is changing. Then the DFID's performance in integrating environment into development is critically examined. Subjects covered include DFID policy, water, climate and energy, agriculture, growth, environmental capacity, environmental screening, and the environment strategy. The Committee notes the failure of the Department to develop a coherent approach on the ground, as a damning review of country programmes has shown. It also highlights many areas where policy is poorly drafted and implemented, and where the Department's environmental expertise has been allowed to wither. The recent White Paper, 'Eliminating world poverty' (2006, Cm. 6876, ISBN 0101687621) is seen as a missed opportunity to make the environment as central to its work as the Department itself has made clear it should be.


DFID's Programme in Zambia

DFID's Programme in Zambia

Author: Great Britain: Parliament: House of Commons: International Development Committee

Publisher: The Stationery Office

Published: 2012-09-06

Total Pages: 66

ISBN-13: 9780215047700

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Although Zambia has enjoyed significant economic growth in the last decade, it remains one of the least-developed countries in the world, ranking 164 out of 187 countries in the 2011 UN Human Development. The country is seriously off track on the poverty Millennium Development Goal (MDG1) and inequality remains very high. Women suffer disproportionately; violence against women is widespread and maternal mortality rates (MDG5) are high. The foremost challenge for the Zambian economy is to spread wealth to rural areas and the Committee welcomes DFID's proposed rural markets development programme, which seeks to increase the productivity of poor smallholder farmers by strengthening markets for inputs and crops. Lack of access to reproductive health services is one of the key reasons maternal mortality is high. The report recommends that DFID encourage the Zambian Government to allow clinicians other than doctors, including nurses and midwives, to be trained to provide Long-Acting and Permanent Method contraception. DFID should focus its efforts on rural areas and young people. Secondary, tertiary and vocational education should also be prioritised in DFID's education expenditure. There is a particular need for business education with a lack of competent middle management across the Zambian economy in the public and private sector. The report also highlights major inefficiencies in Zambia's public expenditure - which, if removed, could free up revenues to improve public services. The biggest of these is the maize subsidy


Aid under pressure

Aid under pressure

Author: Great Britain: Parliament: House of Commons: International Development Committee

Publisher: The Stationery Office

Published: 2009-06-02

Total Pages: 72

ISBN-13: 9780215530509

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In the current economic crisis, poor countries are experiencing significantly reduced income from trade, remittances and foreign investment. As a result, an additional 90 million people are expected to be living in poverty by the end of 2010, and 400,000 more children are likely to die. Progress towards the Millennium Development Goal of eradicating hunger and extreme poverty has been set back three years. At the G20 summit in London in April, agreement was reached to provide billions of dollars of additional resources for the international financial institutions (IFIs), with the majority going to the International Monetary Fund (IMF). This will provide a much needed boost for balance of payments support, yet it remains unclear how much of the funding will benefit developing countries. The huge increase in resources for the IFIs needs to be matched by governance reforms and developing countries need to be given a stronger voice on the boards and in the decision-making processes of the multilateral institutions. The recession should not be used as an excuse to reduce aid flows but developing countries must also be assisted to derive the maximum benefit from their own resources. They lose billions of dollars each year to tax evasion by international companies. The UK has a clear responsibility to address enforcement of international tax standards in relation to those British Overseas Territories which are tax havens. More effort is needed towards securing an agreement in the pro-development Doha round of World Trade Organisation negotiations. Finally, DFID must do more to show the public the many and varied positive outcomes of its work in poor countries.