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HOW TO CONTACT US
DFID’s Public Enquiry Point is dedicated to answering your questionsContact:
By telephone: By post:UK local rate call: 0845 3004100 Public Enquiry PointFrom outside the UK: +44 1355 84 3132 DFID
Abercrombie HouseBy fax: Eaglesham RoadFrom the UK: 01355 843632 East KilbrideFrom outside the UK: +44 1355 84 3632 Glasgow
G75 8ELBy e-mail: [email protected]
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, DFIDHilary Benn picture: News InternationalChapter 1: Female farmer contemplating land loss in Western China/Panos PicturesChapter 2: Woman participating in mangrove rehabilitation project in Kenya/Panos PicturesChapter 3: Mother pouring water from newly installed water pump in Tamil Nadu, India/Panos PicturesChapter 4: Favelas, shanty town on the outskirts of Salvador da Bahia, Brazil/Panos PicturesChapter 5: Female workers in one of the biggest clothing manufacturers in China/Panos PicturesChapter 6: Farmer with palm fruits in Sierra Leone/Matthew Lessar/DFIDChapter 7: Girl with baby in the ruin of a town on the Ethiopian–Eritrean border/Panos PicturesAnnexes: 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 2004is 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 Report2004
Presented to Parliament by theSecretary of State for International Development
and theChief Secretary to the Treasuryby 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 inany format or medium providing that it is reproduced accurately and not used in a misleading context. The materialmust 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: [email protected]
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
About this report
Foreword by the Secretary of State 8
Summary 11
Chapter OneThe Responsibilities of the Department for International Development 15
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
Chapter TwoPoverty Reduction in Africa 23
Public Service Agreement Objective I 27
Progress against Public Service Agreement Target 1 28
Regional Issues 29
Commission for Africa 30
New Partnership for Africa’s Development 31
Conflict Reduction and Peace Building 31
Budget Support 33
Strategic Partnership for Africa 34
Focus Country Programmes 35
2
Contents
Chapter ThreePoverty Reduction in Asia 47
Public Service Agreement Objective II 50
Progress against Public Service Agreement Target 2 51
Focus Country Programmes 53
Other Country Programmes 59
Focus: Afghanistan 64
Chapter FourPoverty Reduction in Europe, Central Asia, Latin America,the Caribbean, the Middle East and North Africa 67
Public Service Agreement Objective III 71
Middle-Income Countries Strategy 71
Europe and Central Asia 72
Middle East and North Africa 74
Latin America and the Caribbean 76
Overseas Territories 79
Focus: Iraq 80
Chapter FiveWorking with Multilateral Agencies and Responding Effectively to Conflict and Humanitarian Crises 85
Public Service Agreement Objective IV 86
Progress against Public Service Agreement Targets 3 and 4 88
Improved Effectiveness of the International System 89
Trade and Investment 90
Debt 92
International Finance Facility 93
Poverty Reduction Strategies 94
Working with Key Partners 96
World Bank and International Monetary Fund 96
European Community 98
United Nations 100
Regional Development Banks 101
Commonwealth 102
Working with Other Bilateral Donors 103
Civil Society 104
Development Awareness 105
Conflict and Humanitarian Assistance 108
Humanitarian Assistance in Iran 110
3
Contents
Chapter SixDeveloping evidence-based, innovative approaches to international development 113
Public Service Agreement Objective V 114
Aid Effectiveness 116
Budget Support 117
Pursuing Partnerships at Country Level 119
Economic Growth in Favour of Poor People 120
Agriculture 122
Access to Medicines 124
HIV/AIDS 124
Education 127
Sexual and Reproductive Health and Rights 129
Gender 131
Child and Maternal Health 132
Poverty Reduction in Difficult Environments 133
Migration 134
Climate Change 135
Water and Sanitation 136
Knowledge and Research 137
Chapter SevenOrganisation and management of delivery 139
Organisation and Structure 141
Corporate Strategy Framework 144
Public Service Agreement 144
Joint Targets 145
Performance Measurement 147
Progress against Public Service Agreement Target 5 150
Quality Assurance 150
Risk Management 151
Financial Resources 153
Business Change 156
Learning Lessons 158
Human Resources 159
Diversity 159
Human Resource Management 161
Training and Development 163
Infrastructure and Procurement 165
Overseas Pensions 166
4
Departmental Report 2004
Annexes 167
Annexe 1Analysis of Departmental Expenditure 168
Table 1: DFID public spending 168
Table 2: DFID resource budget 169
Table 3: DFID capital budget 169
Table 4: DFID allocation by programme 170
Table 5: DFID capital employed 174
Table 6: DFID administration costs 175
Table 7: DFID staff numbers 175
Table 8: DFID liabilities 176
Annexe 2Progress against DFID 2001-04 Public Service Agreement 177
Annexe 3Progress against DFID 2003-06 Public Service Agreement 181
Annexe 4The Millennium Development Goals 194
Annexe 5DFID Organisational Chart 196
Annexe 6Publications 198
Annexe 7Glossary and Abbreviations 202
Annexe 8Index 209
5
Contents
List of Boxes
Chapter 1
Box 1a The Millennium Development Goals 17
Box 1b Share of people living on less than $1 a day 18
Box 1c Public Service Agreement Objectives 21
Box 1d Progress is possible 22
Chapter 2
Box 2a Guide to ‘traffic light’ assessment in this report 27
Box 2b Progress against Public Service Target 1 28
Box 2c Working to improve performance in Africa 29
Box 2d Strategic Partnership for Africa 34
Box 2e HIV/AIDS in sub-Saharan Africa 42
Chapter 3
Box 3a Guide to ‘traffic light’ assessment in this report 50
Box 3b Progress against Public Service Agreement Target 2 51
Box 3c Working to improve performance in Asia 52
Box 3d Indian focus states 54
Box 3e Development assistance in conflict area in Nepal 60
Box 3f Achievements in Afghanistan in 2003/04 66
Chapter 4
Box 4a Population living on less than $1 a day 69
Box 4b Baku-Tbilisi-Ceyhan pipeline 74
Box 4c World Bank and Regional Development Banks 77
Box 4d Making Bolivian markets work better for the poor 79
Box 4e Humanitarian and reconstruction assistance in Iraq 82
Box 4f Achievements in Iraq 2003/04 83
Chapter 5
Box 5a Guide to ‘traffic light’ assessment in this report 87
Box 5b Progress against Public Service Agreement Targets 3 and 4 88
Box 5c Working to improve performance of the international system 89
Box 5d Trade, growth and poverty conference 91
Box 5e Poverty Reduction Strategy indicators 94
Box 5f DFID engagement with Poverty Reduction Strategies 95
Box 5g Enhancing the ‘voice’ of developing countries 97
Box 5h Planned EC development expenditure for 2003 98
Box 5i Development of a new European Union Treaty 99
Box 5j African Development Bank 101
6
Departmental Report 2004
Box 5k ENLACE – Social Inclusion Fund partnership 102
Box 5l Zambia: Harmonisation in Practice Initiative 104
Box 5m Working with UK civil society 105
Box 5n Conflict and humanitarian assistance studies 108
Box 5o Rapid response to humanitarian crises 110
Chapter 6
Box 6a New Policy Division groups of teams 115
Box 6b Advantages of budget support 118
Box 6c Creating economic opportunities 120
Box 6d CDC and the private sector in poorer countries 121
Box 6e Global summary of the HIV/AIDS epidemic 2003 125
Box 6f UK’s Call for Action on HIV/AIDS 126
Box 6g Universal primary education in Kenya 127
Box 6h Education Global Monitoring Report 128
Box 6i DFID support to Safer Motherhood in Nepal 130
Box 6j Sexual and reproductive health services in Bolivia 131
Box 6k Improving women’s rights 132
Box 6l Service delivery in difficult environments 134
Box 6m Climate change in Bangladesh 136
Box 6n Examples of impact from research 138
Chapter 7
Box 7a DFID core values 140
Box 7b Ministerial team 141
Box 7c Management Board 142
Box 7d DFID strategy and performance management – how it fits together 144
Box 7e Joint target on conflict 146
Box 7f Appearance versus reality: health care in Uganda 147
Box 7g Value for Money 149
Box 7h Guide to ‘traffic light’ assessment in this report 149
Box 7i Progress against Public Service Agreement Target 5 150
Box 7j Summary of DFID resource plans 154
Box 7k Reprioritisation of financial resources 155
Box 7l Catalyst logo 156
Box 7m Video conferencing 157
Box 7n Numbers of DFID staff by location and gender December 2003 159
Box 7o Progress against diversity strategy 159
Box 7p Diversity monitoring January 2004 160
Box 7q Permanent UK-based staff appointments filled in 2003 161
Box 7r Benefits of the new posting and promotion system 162
Box 7s Progress against the Service Delivery Agreement Targets 162
Box 7t Staff salaries 163
Box 7u Performance against pension service standards 166
7
Contents
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
Forewordby the Rt Hon Hilary Benn MPSecretary of State for International Development
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
Foreword
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PolandBelarus
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Key
Bilateral Countries Bilateral (Focus) Countries M
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DFID Overseas O
ffices
DFID
’s work around the w
orld
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
Summary of DepartmentalReport 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
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
Summary of 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 Department-
wide 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
Departmental Report 2004
1The Responsibilities of
the Department forInternationalDevelopment
The Importance of Aid 16
The Millennium Development Goals 17
DFID’s Commitment to PovertyReduction 20
DFID’s Public Service Agreement2003-06 21
Aims of the Departmental Report 21
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
1 The Responsibilities of theDepartment for InternationalDevelopment
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 8
A global partnership for development
➧
Goal 7
Ensuring environmental sustainability
➧
Goal 6
Combating HIV/AIDS, malaria and other diseases
➧
Goal 5
Improved maternal health
➧
Goal 4
Reduced child mortality
➧Goal 3
Promotion of gender equality and empowerment of women
➧Goal 2
Achievement of universal primary education
➧
Goal 1
Eradication of extreme poverty and hunger
17
The Responsibilities of the Department for International Development
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
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
Poverty rate at $1 a dayGoal
1990 2000 2015 Actual Projected Path to goal
Source: World Bank
East Asia & Pacific50
40
30
20
10
01990 1995 2000
29.4
1.4
2.1
41.5
31.9
16.4
47.442.349.0
2.8 1.21.1
11.07.6
10.8
5.5
1.30.7
4.22.3
14.5
2005 2010 2015
14.7
Middle East & North America50
40
30
20
10
01990 1995 2000 2005 2010 2015
South Asia50
40
30
20
10
01990 1995 2000 2005 2010 2015
Sub-Saharan Africa50
40
30
20
10
01990 1995 2000 2005 2010 2015
Europe & Central Asia50
40
30
20
10
01990 1995 2000 2005 2010 2015
Latin America & the Caribbean50
40
30
20
10
01990 1995 2000 2005 2010 2015
20.8 23.7
18
Departmental Report 2004
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
negotiations.
Slum shanty housing in front of an affluent high-rise suburb in Bombay. DFID is working to improvethe 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.
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The Responsibilities of the Department for International Development
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
improvement of welfare of poor people.
An Ethiopian farmer with his meagreharvest after just two days of rain allyear. DFID supplied £27 million ofhumanitarian assistance to Ethiopia in2002/03
1.11 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.
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Departmental Report 2004
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
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.
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
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The Responsibilities of the Department for International Development
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
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
■ 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.
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Departmental Report 2004