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HOW TO CONTACT US DFID’s Public Enquiry Point is dedicated to answering your questions Contact: By telephone: UK local rate call: 0845 3004100 From outside the UK: +44 1355 84 3132 By fax: From the UK: 01355 843632 From outside the UK: +44 1355 84 3632 By e-mail: enquiry@dfid.gov.uk By post: Public Enquiry Point DFID Abercrombie House Eaglesham Road East Kilbride Glasgow G75 8EL UK Alternatively, you can access our website: www.dfid.gov.uk Front cover picture: Children at a Forum for Street Children in Ethiopia’s tutorial class in Nazareth, Ethiopia. Tim Unwin for Imfundo, DFID Hilary Benn picture: News International Chapter 1: Female farmer contemplating land loss in Western China/Panos Pictures Chapter 2: Woman participating in mangrove rehabilitation project in Kenya/Panos Pictures Chapter 3: Mother pouring water from newly installed water pump in Tamil Nadu, India/Panos Pictures Chapter 4: Favelas, shanty town on the outskirts of Salvador da Bahia, Brazil/Panos Pictures Chapter 5: Female workers in one of the biggest clothing manufacturers in China/Panos Pictures Chapter 6: Farmer with palm fruits in Sierra Leone/Matthew Lessar/DFID Chapter 7: Girl with baby in the ruin of a town on the Ethiopian–Eritrean border/Panos Pictures Annexes: Schoolgirl in Nigeria/Panos Pictures This document is part of a series of Departmental Reports (Cm 6201 to 6231) which, along with the Main Estimates 2004-05, the document Public Expenditure Statistical Analyses 2004, and the Supply Estimates 2004-05: Supplementary Budgetary Information, present the Government’s expenditure plans for 2003-2006. The complete series of Departmental Reports and Public Expenditure Statistical Analyses 2004 is also available as a set at a discounted price. Text and Cover printed on material containing 75% post consumer waste and 25% TCF pulp Department for International Development Departmental Report 2004 Presented to Parliament by the Secretary of State for International Development and the Chief Secretary to the Treasury by Command of Her Majesty April 2004 CM 6214 £27.00 © Crown Copyright 2004 The text in this document (excluding the Royal Arms and departmental logos) may be reproduced free of charge in any format or medium providing that 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. Any enquiries relating to the copyright in this document should be addressed to The Licensing Division, HMSO, St Clements House, 2-16 Colegate, Norwich, NR3 1BQ. Fax: 01603 723000 or e-mail: licensing@cabinet-office.x.gsi.gov.uk About this report The Departmental Report is intended to provide Parliament, members of the public, our development partners and others interested in development issues with a comprehensive account of how we have been spending, and plan to spend, public funds. The report focuses primarily on DFID’s work and key developments from April 2003 to March 2004. It does not repeat information about policy that is already set out in other DFID publications. See Annexe 6. Summary The summary is intended to give an overview of the Department’s work over the last year. It includes key achievements relating to each Public Service Agreement objective. Chapters 1 to 7 Chapter 1 summarises DFID’s role and responsibilities. Chapters 2 to 6 are structured around DFID’s Public Service Agreement. Chapter 2 covers sub-Saharan Africa. Chapter 3 details our work in Asia. Chapter 4 examines Europe, Central Asia, Latin America, the Caribbean, the Middle East and North Africa. Chapter 5 looks at the multilateral agencies and conflict and humanitarian crises. Chapter 6 considers evidence-based, innovative approaches to international development. Chapter 7 explains how the Department is organised and managed. Annexes 1 to 8 Annexe 1 sets out DFID’s current and planned financial allocations. Annexes 2 and 3 provide details of DFID’s progress against its 2001-04 and 2003-06 Public Service Agreements. Annexe 4 sets out the Millennium Development Goals, including targets and indicators. Annexe 5 shows the DFID Organisational Chart. All publications mentioned are followed by a number in brackets, which indicates where to find them in the list of publications, at Annexe 6. Where possible, abbreviations, acronyms and development jargon have been avoided. A list of the most commonly used acronyms, abbreviations and development terms is given in Annexe 7. Annexe 8 provides a comprehensive index. 1 Contents Foreword by the Secretary of State Summary 11 Chapter One The Responsibilities of the Department for International Development 15 The Importance of Aid The Millennium Development Goals DFID’s Commitment to Poverty Reduction DFID’s Public Service Agreement 2003-06 Aims of the Departmental Report Chapter Two Poverty Reduction in Africa Public Service Agreement Objective I Progress against Public Service Agreement Target 1 Regional Issues Commission for Africa New Partnership for Africa’s Development Conflict Reduction and Peace Building Budget Support Strategic Partnership for Africa Focus Country Programmes 2 8 16 17 20 21 21 23 27 28 29 30 31 31 33 34 35 Contents Chapter Three Poverty Reduction in Asia Public Service Agreement Objective II Progress against Public Service Agreement Target 2 Focus Country Programmes Other Country Programmes Focus: Afghanistan Chapter Four Poverty Reduction in Europe, Central Asia, Latin America, the Caribbean, the Middle East and North Africa Public Service Agreement Objective III Middle-Income Countries Strategy Europe and Central Asia Middle East and North Africa Latin America and the Caribbean Overseas Territories Focus: Iraq Chapter Five Working with Multilateral Agencies and Responding Effectively to Conflict and Humanitarian Crises Public Service Agreement Objective IV Progress against Public Service Agreement Targets 3 and 4 Improved Effectiveness of the International System Trade and Investment Debt International Finance Facility Poverty Reduction Strategies Working with Key Partners World Bank and International Monetary Fund European Community United Nations Regional Development Banks Commonwealth Working with Other Bilateral Donors Civil Society Development Awareness Conflict and Humanitarian Assistance Humanitarian Assistance in Iran 47 50 51 53 59 64 67 71 71 72 74 76 79 80 85 86 88 89 90 92 93 94 96 96 98 100 101 102 103 104 105 108 110 3 Departmental Report 2004 Chapter Six Developing evidence-based, innovative approaches to international development Public Service Agreement Objective V Aid Effectiveness Budget Support Pursuing Partnerships at Country Level Economic Growth in Favour of Poor People Agriculture Access to Medicines HIV/AIDS Education Sexual and Reproductive Health and Rights Gender Child and Maternal Health Poverty Reduction in Difficult Environments Migration Climate Change Water and Sanitation Knowledge and Research Chapter Seven Organisation and management of delivery Organisation and Structure Corporate Strategy Framework Public Service Agreement Joint Targets Performance Measurement Progress against Public Service Agreement Target 5 Quality Assurance Risk Management Financial Resources Business Change Learning Lessons Human Resources Diversity Human Resource Management Training and Development Infrastructure and Procurement Overseas Pensions 4 113 114 116 117 119 120 122 124 124 127 129 131 132 133 134 135 136 137 139 141 144 144 145 147 150 150 151 153 156 158 159 159 161 163 165 166 Contents Annexes 167 Annexe 1 Analysis of Departmental Expenditure 168 Table 1: DFID public spending Table 2: DFID resource budget Table 3: DFID capital budget Table 4: DFID allocation by programme Table 5: DFID capital employed Table 6: DFID administration costs Table 7: DFID staff numbers Table 8: DFID liabilities 168 169 169 170 174 175 175 176 Annexe 2 Progress against DFID 2001-04 Public Service Agreement 177 Annexe 3 Progress against DFID 2003-06 Public Service Agreement 181 Annexe 4 The Millennium Development Goals 194 Annexe 5 DFID Organisational Chart 196 Annexe 6 Publications 198 Annexe 7 Glossary and Abbreviations 202 Annexe 8 Index 209 5 Departmental Report 2004 List of Boxes Chapter 1 Box 1a Box 1b Box 1c Box 1d The Millennium Development Goals Share of people living on less than $1 a day Public Service Agreement Objectives Progress is possible 17 18 21 22 Guide to ‘traffic light’ assessment in this report Progress against Public Service Target 1 Working to improve performance in Africa Strategic Partnership for Africa HIV/AIDS in sub-Saharan Africa 27 28 29 34 42 Guide to ‘traffic light’ assessment in this report Progress against Public Service Agreement Target 2 Working to improve performance in Asia Indian focus states Development assistance in conflict area in Nepal Achievements in Afghanistan in 2003/04 50 51 52 54 60 66 Population living on less than $1 a day Baku-Tbilisi-Ceyhan pipeline World Bank and Regional Development Banks Making Bolivian markets work better for the poor Humanitarian and reconstruction assistance in Iraq Achievements in Iraq 2003/04 69 74 77 79 82 83 Chapter 2 Box 2a Box 2b Box 2c Box 2d Box 2e Chapter 3 Box 3a Box 3b Box 3c Box 3d Box 3e Box 3f Chapter 4 Box 4a Box 4b Box 4c Box 4d Box 4e Box 4f Chapter 5 Box 5a Box 5b Box 5c Box 5d Box 5e Box 5f Box 5g Box 5h Box 5i Box 5j 6 Guide to ‘traffic light’ assessment in this report Progress against Public Service Agreement Targets 3 and 4 Working to improve performance of the international system Trade, growth and poverty conference Poverty Reduction Strategy indicators DFID engagement with Poverty Reduction Strategies Enhancing the ‘voice’ of developing countries Planned EC development expenditure for 2003 Development of a new European Union Treaty African Development Bank 87 88 89 91 94 95 97 98 99 101 Contents Box 5k Box 5l Box 5m Box 5n Box 5o ENLACE – Social Inclusion Fund partnership Zambia: Harmonisation in Practice Initiative Working with UK civil society Conflict and humanitarian assistance studies Rapid response to humanitarian crises 102 104 105 108 110 New Policy Division groups of teams Advantages of budget support Creating economic opportunities CDC and the private sector in poorer countries Global summary of the HIV/AIDS epidemic 2003 UK’s Call for Action on HIV/AIDS Universal primary education in Kenya Education Global Monitoring Report DFID support to Safer Motherhood in Nepal Sexual and reproductive health services in Bolivia Improving women’s rights Service delivery in difficult environments Climate change in Bangladesh Examples of impact from research 115 118 120 121 125 126 127 128 130 131 132 134 136 138 DFID core values Ministerial team Management Board DFID strategy and performance management – how it fits together Joint target on conflict Appearance versus reality: health care in Uganda Value for Money Guide to ‘traffic light’ assessment in this report Progress against Public Service Agreement Target 5 Summary of DFID resource plans Reprioritisation of financial resources Catalyst logo Video conferencing Numbers of DFID staff by location and gender December 2003 Progress against diversity strategy Diversity monitoring January 2004 Permanent UK-based staff appointments filled in 2003 Benefits of the new posting and promotion system Progress against the Service Delivery Agreement Targets Staff salaries Performance against pension service standards 140 141 142 144 146 147 149 149 150 154 155 156 157 159 159 160 161 162 162 163 166 Chapter 6 Box 6a Box 6b Box 6c Box 6d Box 6e Box 6f Box 6g Box 6h Box 6i Box 6j Box 6k Box 6l Box 6m Box 6n Chapter 7 Box 7a Box 7b Box 7c Box 7d Box 7e Box 7f Box 7g Box 7h Box 7i Box 7j Box 7k Box 7l Box 7m Box 7n Box 7o Box 7p Box 7q Box 7r Box 7s Box 7t Box 7u 7 Foreword by the Rt Hon Hilary Benn MP Secretary of State for International Development Aid works. In the last four decades life expectancy has risen in developing countries, adult literacy has increased, the number of children enrolled in primary education has doubled and we are now close to eradicating polio. As you will see in this report, there are success stories, attributable in some measure at least, to the increasing effectiveness of the development assistance provided by the richer nations to the poorer. However progress towards the internationally agreed Millennium Development Goals is far too slow in many critical areas. Too many mothers are still dying in childbirth and too many children are dying before they reach their fifth birthdays. 104 million children worldwide still do not go to primary school and 1.1 billion of our fellow human beings still lack access to clean water. This is, quite simply, unacceptable. To change this we need to provide additional finance for development and ensure that aid is spent where it will be most effective in reducing poverty. We must ensure that our decisions reflect good policy and that we monitor the difference we make. As required by the International Development Act of 2002, UK taxpayers’ money must be used to reduce poverty and improve the welfare of poor people. We estimate that our aid lifts 2 million people permanently out of poverty each year. Our Public Service Agreement sets us clear objectives to meet by 2006, based on the Millennium Development Goals and the commitments set out in our two White Papers. This involves improving access to education, health and clean water. It means tackling infant and maternal death rates and the major diseases – tuberculosis, malaria and HIV/AIDS, where the UK Call for Action on HIV/AIDS has highlighted the need for us all to do more. We also need to tackle the most fundamental obstacle of all to development – conflict – and help those afflicted to rebuild their lives. If we are to enable poor people and poor nations to gain a strong voice, economic independence and self-reliance for the future, we have to ensure that their basic needs are met and that the building blocks are in place for a strong civil society and effective and transparent government. We cannot achieve these aims alone, however. That’s why we work as part of the international development community to build effective relations with others: multilateral agencies such as 8 Foreword the United Nations, the European Union, the World Bank and the International Monetary Fund; other bilateral donors through the work of the OECD; non-governmental organisations and, last but most importantly, developing countries themselves. Alongside others, we increasingly work in partnership with developing country governments and civil society groups, not least because building effective states and good governance is central to success. The UK aid budget is set to increase to over £4.5 billion a year by 2005/06. This is almost double the aid we gave in 1997 and it will help move us further towards the United Nations target of 0.7% of gross national income spent on international aid. We are committed to spending 90% of our budget in the world’s poorest countries by 2005/06, and this includes £1 billion per year in sub-Saharan Africa. The Commission for Africa will provide an opportunity to bring together new ideas in support of a better future for this continent. This report sets out what we have done over the last year and our plans for the future. It explains how we have spent taxpayers’ money and what has been achieved. It acknowledges difficulties that have arisen and what we have done to try and deal with them. It covers progress made in Afghanistan and Iraq. And it sets out the challenges that still face us. Looking ahead, 2005 will be an important year. There will only be a decade to go to 2015 – the deadline for the achievement of the Millennium Development Goals. It will also be the year in which the UK has the chance to provide international leadership as Chair of both the G8 and the expanded European Union. It is our moral duty – as well as common sense – to tackle poverty, injustice and inequality to seek to improve the lives of others. If the political will is there, it can be done. Hilary Benn April 2004 9 Pitcairn (UK) Mexico Belize Cuba Bridgetown Barbados Trinidad Tobago Guyana Surinam French Guiana (FR) Cape Verde Is. Western Sahara Estonia Kiev Latvia Poland Belarus Slovakia Lithuania Rus Czech Republic Cyprus Lebanon Israel Sudan Kuwait Bahrain Qatar U.A.E Oman Seychelles Thailand Burma Mongolia China Beijing Hainan Hanoi Java Singapore Borneo Malaysia Cambodia Bangkok Laos Vietnam Bangladesh Bhutan Russian Federation Nepal Kyrgyzstan Delhi Tajikistan Kazakhstan an Afghanistan Pakistan Sri Lanka Dhaka Kathmandu India Maldives tr ma Mauritius Su Burundi Nairobi Malawi Iran Uzb Azerbaijan Turkmenistan Moscow Syria Jordan Saudi Arabia Yemen Djibouti Ethiopia Eritrea Tanzania Kenya Kampala Addis Ababa Zambia a Maputo biq Dar es Salaam Lilongwe Kigali Iraq Ukraine Hungary Moldova Slovenia Serbia Romania Croatia Georgia Pristina Bosnia Bulgaria Armenia Montenegro Albania Turkey Macedonia Malta Angola Congo Dem. Rep. of Congo Central African Rep. Uganda Rwanda Chad West Bank & Gaza Libya Egypt Tunisia Niger Abuja Nigeria Benin Algeria Mali Burkina Faso Morocco Mauritania Senegal The Gambia Guinea Bissau Guinea Sierra Leone Togo Liberia Accra Ivory Ghana Cameroon Coast Sao Tomé Cabinda (Angola) Equatorial Guinea Gabon St. Helena (UK) Lusaka Harare Zimbabwe Namibia Botswana Swaziland Lesotho Pretoria South Africa t Venezuela British Virgin Islands Anguilla (UK) St Kitts & Nevis Antigua Montserrat Dominican Republic Turks & Caicos (UK) The Bahamas Haiti Jamaica Honduras Nicaragua Panama Colombia Brazil Brasilia Tristan da Cunha (UK) is ek Guatemala El Salvador Costa Rica Managua Ecuador La Paz gua y Uruguay li a ma So Madag asc ar Peru Lima Bolivia ra Chile Pa Argentina ue DFID’s work around the world Bilateral Countries Key Bilateral (Focus) Countries Multilateral Countries DFID Overseas Offices Moza m N. Korea S. Korea Taiwan Philippines Brunei East Timor Indonesia Irian Jaya Papua New Guinea Nauru Solomon Islands Vanuatu Fiji Suva Summary of Departmental Report 2004 The Department for International Development aims to eliminate poverty in poorer countries, in particular through achievement by 2015 of the Millennium Development Goals (MDGs). Our Public Service Agreement (PSA) 2003-06 contains objectives and targets by which we measure our progress. The world map on the opposite page and the maps at the starts of Chapters 2, 3 and 4 show where DFID works around the world. The bilateral countries receive bilateral funding from DFID and these include the focus countries – 16 in Africa and four in Asia – which are used to measure progress against the Public Service Agreement. The multilateral countries receive DFID funding through multilateral agencies. We currently have 27 overseas offices with full responsibility for running the DFID programme in a particular country or region. Africa Progress is possible in Africa, despite limited movement towards the MDGs. It will depend upon an increase in the volume and effectiveness of aid and greater African management of poverty reduction strategies. Constraints to progress include: HIV/AIDS, poor governance, weak health services and barriers to trade. ■ 48% of DFID’s bilateral assistance was spent in sub-Saharan Africa in 2002/03 – up from 42% in 2001/02; by 2005/06 we will have increased our annual bilateral assistance to sub-Saharan Africa to £1 billion. ■ On-going conflicts have fallen from 19 in 2000 to 2 in 2004 – in northern Uganda and Somalia; the UK has worked through the Africa Conflict Prevention Pool to help establish peace. ■ In 2001 23 African countries had economic growth rates above 5% – this needs to rise to 7% across the continent. ■ HIV/AIDS rates have levelled off in DR Congo, Kenya, Malawi, Zambia and Zimbabwe and fallen in Ethiopia, Rwanda and Uganda. 11 Departmental Report 2004 ■ Enrolment rates in primary education have increased greatly since the abolition of school fees; in Kenya a DFID grant helped an additional 1.2 million children enrol. ■ The Commission for Africa was launched in February 2004. Asia Progress varies greatly across the region and the MDGs will be met in some countries but not in others. Constraints to progress include: inequality and exclusion, HIV/AIDS and weak governance. Progress will continue to be made by working more closely with partner governments, understanding their motivations and focusing increased resources on the poorest people. ■ DFID funding for Asia will increase by 45% over the next 2 years. ■ Through sustained support, DFID has helped India to increase primary school enrolment to over 90%. ■ New DFID offices opened in Vietnam and China in 2003, which will help build more effective relations with partners. ■ DFID collaborated with the World Bank to loan $100 million to China to provide schooling for 2.4 million children. ■ DFID is the largest co-financer of the $21 million Fund for HIV/AIDS in Burma. ■ In Afghanistan, economic growth is up 30%, 4 million children have returned to school and 30,000 children’s lives have been saved through wide-scale immunisation programmes. Europe, Middle East and Americas Patterns of poverty vary hugely across these regions. Current trends suggest that only some of the MDGs will be met by 2015. Constraints to progress include inequality, HIV/AIDS, governance problems and human rights abuses. Iraq is a challenge. However significant progress has been made over the last year. ■ The Coalition Provisional Authority has launched over 17,000 reconstruction projects in Iraq; 30 million doses of vaccines have been provided and 76,000 new jobs created. ■ The UK has pledged a total of £544 million up to March 2006 for reconstruction and humanitarian assistance. ■ We worked with the EC on the technical assistance for the Commonwealth of Independent States regulation to ensure a greater poverty focus. ■ DFID convinced key institutions in Bolivia to revise their Poverty Reduction Strategy to promote economic growth to benefit the poor. 12 Summary of Departmental Report 2004 ■ DFID has allocated an additional £15 million to the Palestinians to support the Roadmap to peace. ■ Support to Yemen doubled in 2003/04 with an increased focus on education for girls. International Achieving the MDGs will depend upon a greatly enhanced and coherent international approach with agreed policies and effective collaboration between nations and institutions. The international community is also critical in responding to conflict and humanitarian crises, both of which can halt or reverse development progress. Considerable progress has been made. ■ The UK has written off 100% of the debt owed to us by the most Heavily Indebted Poor Countries (HIPC). The HIPC initiative has released $1.7 billion for social expenditure and poverty reduction in 27 countries since 2001. ■ DFID donated £950,000 to Iran immediately after the Bam earthquake in December 2003 and £2 million to support victims further since then; joint international rescue efforts saved 1000 lives. ■ Despite the failure of the Cancún trade negotiations, developing countries found a more confident voice within the G20+ group, which comprised mostly more advanced and industrialised developing countries. ■ The UK has proposed an International Finance Facility to bridge the $50 billion gap between global development funds currently allocated and those estimated to be necessary to meet the MDGs by 2015. ■ 33 countries now have full Poverty Reduction Strategies and 46 have interim Strategies. ■ Around a quarter of UK development expenditure goes through EC programmes and we are seeing more progress in terms of the poverty focus and effectiveness of this aid. ■ In 2002/03 DFID channelled £223 million through UK civil society organisations. Policy Improving the effectiveness of aid depends upon well-informed policy. DFID is working to strengthen its policies through greater research and improved analytical methods to support progress towards the MDGs. 2003/04 has seen the reorganisation of Policy Division. ■ The new Policy Division has created 25 teams and a Central Research Team. ■ UK’s Call for Action on HIV/AIDS was launched, December 2003. ■ A new agriculture paper, Agriculture and poverty reduction: unlocking the potential, was published January 2004. 13 Departmental Report 2004 ■ Since 1997 the UK has committed over £1.5 billion to support health systems in poorer countries and the supply of safe and reasonably priced drugs. ■ In 2002/03 the UK invested £270 million in bilateral HIV/AIDS and sexual and reproductive health programmes. ■ We collaborated closely with other Government Departments on failing states, access to medicines and urban regeneration. ■ We have adopted a new and co-ordinated approach to research with a clear Departmentwide strategy. Finance and Corporate Performance DFID has undertaken major changes to corporate delivery systems to ensure we are fit for purpose. We aim to ensure that the vast majority of our funding goes to the poorest people in the poorest countries and that the efficiency of our corporate procedures supports this. ■ DFID works with less than 1% of UK taxes and aims to spend less than 6% on administration. ■ We are working to ensure that over 90% of our bilateral programme funding, excluding humanitarian assistance, goes to low-income countries by 2005/06. ■ 96% of regional projects have been scored to assess their success. ■ CDC – formerly the Commonwealth Development Corporation – has invested over £1 billion of UK public funds in developing countries. ■ £22 million have been saved through efficient procurement as reported to the Office of Government Commerce. ■ We secured a 3-year Investors in People re-accreditation – one of very few decentralised international operations to achieve such recognition. 14 1 The Responsibilities of the Department for International Development The Importance of Aid 16 The Millennium Development Goals 17 DFID’s Commitment to Poverty Reduction 20 DFID’s Public Service Agreement 2003-06 21 Aims of the Departmental Report 21 1 The Responsibilities of the Department for International Development We will spare no effort to free our fellow men, women and children from the abject and dehumanising conditions of extreme poverty, to which more than a billion of them are currently subjected United Nations Millennium Declaration – September 2000 The Importance of Aid 1.1 Over the past generation, significant progress has been made towards the elimination of world poverty. Although the world’s population has risen by 2 billion in the last thirty years, basic living standards for many of the very poor have improved. Child mortality rates have halved, illiteracy rates among adults have fallen from 46% to 24% and twice as many people have access to safe drinking water and basic sanitation. 1.2 However, 1.1 billion people – one in five of the world’s population – are still living on less than $1 a day. 1.1 billion people still lack access to safe drinking water and 2 billion lack adequate sanitation. 104 million children are not enrolled in school and some 10 million children die each year before their fifth birthday, largely from preventable diseases. With a rising world population and the HIV/AIDS epidemic continuing unabated in parts of the world, the fight against poverty remains a moral imperative. 1.3 Extreme poverty is not an isolated issue, relevant only to those in developing countries. As goods and services, information and people move between countries at unprecedented levels, awareness of the global impact of poverty is inescapable. Growing recognition of the link between deprivation in some parts of the world and wider insecurity for all of us has led to increased international commitment to the elimination of poverty. In order to address the causes of conflict, environmental degradation, illegal migration and drug trafficking we have to improve the living standards of the very poor. 16 The Responsibilities of the Department for International Development The Millennium Development Goals 1.4 The Millennium Development Goals were established at the United Nations Millennium Summit in 2000. They represent a global commitment by 189 countries to the elimination of poverty by 2015 and a means of measuring progress towards this aim. Box 1a The Millennium Development Goals Goal 1 Eradication of extreme poverty and hunger ➧ Goal 2 Achievement of universal primary education ➧ Goal 3 Promotion of gender equality and empowerment of women ➧ Goal 4 Reduced child mortality ➧ Goal 5 Improved maternal health ➧ Goal 6 Combating HIV/AIDS, malaria and other diseases ➧ Goal 7 Ensuring environmental sustainability ➧ Goal 8 A global partnership for development 17 Departmental Report 2004 1.5 Achieving the 2015 goals is one of the greatest challenges we face at the start of the 21st century. While we are making progress in many regions and in many countries, we will fail in sub-Saharan Africa unless extraordinary efforts are made. We have the capacity to change this. We need to increase the volume of assistance going to developing countries, target assistance at the poorest countries and do much more to increase its effectiveness. The following graphs demonstrate the current variations in progress towards the Millennium Development Goal relating to income poverty. Box 1b Share of people living on less than $1 a day East Asia & Pacific Europe & Central Asia 50 50 40 30 40 29.4 30 20 14.7 14.5 10 20 10 2.3 0 1.4 4.2 1.3 0.7 0 1990 1995 2000 2005 2010 2015 1990 1995 2000 2005 2010 2015 Middle East & North America Latin America & the Caribbean 50 50 40 40 30 30 20 20 11.0 10.8 7.6 10 5.5 0 1990 1995 2000 2005 10 2.1 1990 1995 2000 2010 2015 South Asia 1.11.2 2005 2010 2015 Sub-Saharan Africa 50 50 41.5 40 47.4 40 30 2.8 0 20.8 31.9 20 42.3 49.0 30 23.7 20 16.4 10 0 10 0 1990 1995 2000 2005 2010 2015 1990 1995 2000 Goal 1990 2000 2005 2010 2015 Poverty rate at $1 a day 2015 Actual Projected Path to goal Source: World Bank 1.6 A series of international conferences has taken place since 2000, at which both donors and partner governments have renewed their financial and political commitment to the Millennium Development Goals. In March 2002 the Financing for Development meeting took place in Monterrey where donors pledged around $16 billion a year in additional aid by 2006. Then in August/September 2002, the World Summit for Sustainable Development was held in 18 The Responsibilities of the Department for International Development Johannesburg and again countries reiterated their commitment to work towards meeting the United Nations target of 0.7% of gross national income given to official development assistance. 1.7 The World Trade Organisation has also focused on development in the Doha Round, which began in Qatar in November 2001. More than 50 nations grew poorer over the last decade – open trade has a vital role to play in helping countries reduce poverty. To maximise these benefits, poor countries need a rules-based international trading system, with continuing reductions in barriers to trade in both developed and developing countries. The latest Ministerial Conference took place in Cancún in September 2003, and although agreement was not reached at that stage, the UK Government remains committed to resuming Panos Pictures negotiations. Slum shanty housing in front of an affluent high-rise suburb in Bombay. DFID is working to improve the living conditions of the very poor in India 1.8 While broad-ranging international commitment exists towards achieving the Millennium Development Goals, major challenges remain. The donor community must harmonise its different approaches and ensure the efficient delivery of aid. We must raise public awareness of the problems facing us all and work in partnership with other international bodies. Increasing the volume of aid is also critical to success. The international community has estimated that if global aid were increased from $50 billion to at least $100 billion a year the Millennium Development Goals could be met by 2015. We now need to live up to our commitments and ensure that by working in partnership with governments in developing countries we achieve the Millennium Development Goals. 19 Departmental Report 2004 DFID’s Commitment to Poverty Reduction 1.9 The Department for International Development (DFID) is responsible for leading the UK Government’s contribution to the international effort to reduce poverty. In 1997, the first White Paper on International Development, Eliminating World Poverty:A Challenge for the 21st Century (1), committed the UK Government to contributing towards the achievement of the International Development Targets by 2015. The second White Paper in 2000, Making Globalisation Work for the Poor (2), confirmed the UK’s commitment and also set out the new challenges and opportunities for those working to reduce global poverty. 1.10 The International Development Act, which came into force in June 2002, established legally acceptable objectives for UK development assistance. The Secretary of State for International Development has to be satisfied that the assistance provided under the Act is likely to contribute to poverty reduction. Under the main power of the Act, the sole purpose for which development assistance can be provided is to promote sustainable development or improve the welfare of poor people. The restrictions in the Act over how funds voted by Parliament can be used mean, for example, that aid cannot be tied to the purchase of British goods or services. Such tying could not have as its purpose the promotion of sustainable development or the Panos Pictures improvement of welfare of poor people. 1.11 An Ethiopian farmer with his meagre harvest after just two days of rain all year. DFID supplied £27 million of humanitarian assistance to Ethiopia in 2002/03 UK official development assistance is set to rise by £1.5 billion from £3.4 billion to £4.9 billion following the 2002 Spending Review, representing 0.40% of gross national income. DFID’s budget will reach more than £4.5 billion by 2005/06. 20 The Responsibilities of the Department for International Development DFID’s Public Service Agreement 2003-06 1.12 The Public Service Agreement 2003-06, agreed as part of the 2002 Spending Review, helps DFID to improve its performance by focusing on what has already been achieved and what remains to be done. It tracks progress and allows for reassessment of policy decisions and financial commitments in the light of successes and underperformance. In addition, it allows each division, department, team and individual to set targets which relate directly to the overall achievement of the Public Service Agreement objectives – and ultimately of the Millennium Development Goals. Box 1c Public Service Agreement Objectives Objective 1 Reduce poverty in sub-Saharan Africa Objective 2 Reduce poverty in Asia Objective 3 Reduce poverty in Europe, Central Asia, Latin America, the Caribbean, the Middle East and North Africa Objective 4 Increase the impact of key multilateral agencies in reducing poverty and effective response to conflict and humanitarian crises Objective 5 Develop evidence-based, innovative approaches to international development Value for money Aims of the Departmental Report 1.13 This report sets out what DFID has done in the year April 2003 to March 2004. It explains our approach to working as part of a wider international effort, collaborating with many organisations, including: other UK Government Departments, international development agencies, governments of developing and transition countries, civil society, business and academia. 1.14 The report explains what we have done to increase the impact of development assistance on poverty. We have retained our focus on helping the poorest countries and agreed longer-term financial commitments, which will mean beneficiaries will be able to predict their income. We have continued to move away from stand-alone projects – where the donors decide the agenda – towards support for poverty reduction strategies led by developing countries themselves. The report also describes our efforts to improve the work of the main multilateral agencies through which we channel funding. 1.15 It explains what we are doing to ensure that international policies on trade, debt, investment, the environment and conflict increase, rather than limit, opportunities for poor countries. Economic prosperity is vital for providing basic services, such as education and health care and for building capacity in developing countries. If trade barriers prevent farmers from selling their produce or if debt repayments erode any financial gain, no amount of aid will compensate. 21 Departmental Report 2004 1.16 DFID also has a responsibility to help victims of natural or man-made disasters. The report explains how our humanitarian assistance has been used to save lives, relieve suffering and improve access to basic services when emergencies have arisen. 1.17 The report is structured around DFID’s Public Service Agreement (PSA). Chapters 2 to 6 focus on the five Public Service Agreement objectives, and indicate where targets have been met and where they are off track. Chapter 7 explains how the Department is organised to deliver. The report sets out plans for tackling underperformance and for responding to changing needs and for modifying planned spending accordingly. We have maintained a clear focus throughout on ensuring value for money and achieving the Millennium Development Goals. 1.18 Much has already been achieved, although much remains to be done. Some of the progress made by developing countries is set out in Box 1d. International development assistance can help these countries further and DFID has an important role to play. This report explains how we contribute. Box 1d Progress is possible ■ Life expectancy in developing countries has increased from 44 years in 1960 to 64 years in 2001. ■ More than 3 million children survive each year due to the extension of basic immunisation. ■ Since 1990, 800 million people have gained access to safer water and 750 million to improved sanitation. ■ Aid is significant – in 2001 there were 34 countries in which aid represented more than 8% of national income. ■ Adult literacy in developing countries has increased from 47% in 1970 to 76% in 2001. ■ Brazil has controlled its HIV/AIDS infection rate at around 0.5% – half that projected; Uganda cut its prevalence rate from around 15% in 1991 to 5% in 2001; Thailand reduced infections among commercial sex workers in cities from 9.7% in 1990 to 6.7% in 2000. For more information On DFID’s work See the Quick Guide to the Department for International Development Annexe 6 has details of how to obtain this (37) and other DFID publications 22
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