Sections:

International Development Act 2002

Contributions To International Organisations

Can we still make core contributions to international organisations?

  • Yes
  • Contributions to the European Community (except those to the European Development Fund) are covered by other legislation.
  • Contributions to Multilateral Development Banks and the Commonwealth Scholarship Commission are covered in Part II of the Act.
  • All other core contributions come under Section 4 which allows the Secretary of State to support any organisation or fund which exists to support, or is used, wholly or partly:

For the purposes of furthering sustainable development or promotion of welfare and in the expectation that the support will contribute to the reduction of poverty (See footnote 1), or

For the provision of humanitarian assistance.

  • The organisations we can fund do not have to exist wholly for the purposes in the Act. The 2002 Act permits contributions to funds or subscriptions to organisations that exist only partly for these purposes. So support for bodies such as UNESCO, FAO and the Global Environment Facility is permitted. However, with the exception of humanitarian agencies, DFID support should be given with the primary purpose of furthering sustainable development or promoting welfare and in the expectation that the support will contribute to the reduction of poverty.

Are there any changes to the powers to fund Multilateral Development Banks?

  • No, they are the same. The 2002 Act merely simplifies the 1980 Act. The ability to provide contributions to a Bank’s capital or concessional loan fund, and the process to be followed, remain the same (Section 11).

Why is only the World Bank Group mentioned in section 12 of the Act?

  • The granting of tax exemptions and diplomatic privileges to most IFIs is provided for in separate legislation. Those of the World Bank Group had been provided for under the 1980 Act and when that was repealed it was necessary to recreate the provision in the 2002 Act.

1 The requirement to be likely to contribute to the reduction of poverty would not apply to international organisations or funds for the benefit of UK Overseas Territories.