April 2011
Thank you for writing to us about the bilateral and multilateral aid reviews. As I will now explain, your letter is a little 'over the top'.
The UK Government is committed to significant increases in UK aid. However, increasing our expenditure is not enough if we are to make significant progress in reducing poverty and achieving the Millennium Development Goals. We also need to ensure that this money is spent where it can have most impact. The rationale of the bilateral and multilateral aid reviews was to identify the countries and organisations where UK aid could have the most impact, to provide better value for money for taxpayers and the best possible outcomes for poor people.
Under no circumstances will aid be redefined; the law states that aid is for poverty reduction, not economic or commercial interests, and the Government has stated throughout the past ten months that this will remain the case.
Both reviews were conducted through a consultative process. In July 2010, I wrote to the heads of major civil society organisations, including the organisation of UK development non-governmental organisations (BOND), of which World Development Movement (WDM) is a member, inviting them to submit comments and evidence for the multilateral aid review. This was followed up by a roundtable consultation meeting in September, attended by representatives of over 30 civil society organisations, including WDM. NGO representatives were invited to regular update meetings during the process of the bilateral aid review.
As you will be aware, we have in parallel set up the Independent Commission for Aid Impact (ICAI), established the UK Aid Transparency Guarantee and become the first country in the world to publish information on the International Aid Transparency (IATI) standards.
Reducing poverty amongst girls and women is at the heart of DFID's policy and programmes. We will invest more in girls and women, who will in turn invest more in their families and communities. Our new strategy on women is focused on four priorities where we aim to have a big impact: later marriage and safer childbirth; getting more girls through secondary school; economic empowerment; and tackling violence. We are also seeking to improve the focus on girls and women among the international organisations with which we work.
I agree that support to agriculture and food security is of vital importance. We will work with our partners to help reduce the impact of high food prices around the world, and prevent food shortages before they take hold. We will also work with governments, charities, UN and the business sector to make the worldwide response to malnutrition much more coordinated, targeted and hard-hitting.
The UK is supportive of the Responsible Agricultural Investment initiative (RAI). The RAI seeks to enhance the transparency of international investment in agriculture and land. The RAI is a set of principles among host countries for international agricultural investment (e.g. Principle 1: 'Existing rights to land and associated natural resources are recognised and respected'). There is a consultative process underway to turn the principles into actions for investors, governments, donors and international agencies.
On climate finance, the UK Government is supportive of the Adaptation Fund. We are active members of its Board and welcome the progress made in establishing the Fund. The Adaptation Fund has recently signed a Memorandum of Understanding for its first project, on coastal erosion in Senegal. I welcome this progress towards supporting concrete adaptation projects on the ground. I will be keeping the fund’s progress under review.
DFID's Multilateral Aid Review found that the Climate Investment Funds meet a critical gap in delivering low carbon, climate resilient development outcomes, delivering finance at scale and learning lessons for future climate change architecture. They are innovative, with effective and equitable governance structures, and have a strong commitment to transparency. We will continue to press the importance of lesson learning and making improvements based on this, for example on country leadership and engagement of developing country stakeholders beyond government.
The UK Government believes that an effective Green Climate Fund will be a key part of global cooperation to tackle climate change. We worked hard to secure agreement in Cancun, and have identified a team of senior officials to participate in the design process that will be taking place over the coming year.
We are aiming for a fund that will deliver real and lasting results. This means a fund that can add value beyond existing funds. It should support transformational change towards low carbon development, reduce emissions from deforestation and land degradation, and help countries build resilience to climate impacts. Good design will be crucial to ensuring that the Green Climate Fund can secure meaningful funding and lever significant private sector investment.
Finally, I would like to thank you for your interest in DFID's work, and for your commitment to helping to ensure that the UK meets its international obligations and does what it can to help poor people throughout the world.
Andrew Mitchell
Secretary of State