The UK Department for International Development Michael Howells 7 March 2006

History (1)  UK aid has origins in colonialism  1929 – British government accepted legal responsibility for financial assistance to Colonies Limited funding by Colonial Development Advisory Committee - to promote industry and trade, allocated Limited funding by Colonial Development Advisory Committee - to promote industry and trade, allocated  But, pre WW2 unrest in colonies - linked to low wages, poor welfare  Colonial Development and Welfare Act (1940) increased aid to £5m - could now be spent on welfare

History (2)  Post-war: break up of colonies + success of Marshall Plan - realisation that economic and technical assistance could transform economies in short time  Colonial Office began to work under guiding principle of ‘paramountcy of the colonial peoples’

History (3)  Ministry of Overseas Development ( & ) vs  Overseas Development Administration ( & )  But contrary to stereotype – ODA tying decreased under Thatcher govmt from circa 50% in 1980s t0 15% by 1996  Three decades of Cold War influence – strategic interests influenced which countries to support and how

1997 – DFID established  What changed? Cabinet level Minister Cabinet level Minister Aid and development policy housed under one roof - including funding to multilaterals Aid and development policy housed under one roof - including funding to multilaterals Poverty reduction – overarching objective Poverty reduction – overarching objective Policy Coherence – development policy more than just about aid – e.g. trade, foreign policy Policy Coherence – development policy more than just about aid – e.g. trade, foreign policy

What is DFID? 1) “Development Ministry” 2) “Bilateral” Development Agency 3) International Organisation – offices around the globe

(1) Development Ministry  All development policy and aid budget managed by DFID – contrast with USA, Germany etc. More coherent.  Cabinet level Minister = at the centre of Government, but independent mandate  Spend UK tax payer’s money  Accountable to parliament and the UK public  Public Service Agreement with Treasury

(2) Bilateral Development Agency  “Bilateral” = DFID is an agency which manages the development relationship between two countries: UK + other (Emily)  Operate in a multi-donor, multi-agency environment e.g. UN agencies, World Bank, EC, other bilaterals, INGOs.  Oversee funding of multilateral organisations both at HQ and country level

The Policy Framework  2 White Papers (1997 & 2000): 1) Refocused UK aid on poverty reduction 2) Emphasised that globalisation (and trade) could be forces for good in development  Millennium Development Goals  Currently drafting a third White Paper

New White Paper  Why? Deliver on the commitments made in Address new challenges.  Impact of DFID’s rising aid budget, but shrinking headcount.  What? “Delivering” development “Delivering” development Policies “beyond aid” Policies “beyond aid” Reform of the international system Reform of the international system

How can you feed into the new White Paper?  Speeches Speeches Consultation document Consultation document 