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Aid budget to be refocused to deliver better results for world’s poorest

News Release issued by the COI News Distribution Service on 16 June 2010

Britain will in future focus its aid on fewer countries in a move designed to increase the impact of UK funding on the world’s poorest people, International Development Secretary Andrew Mitchell announced today.

A review will scrutinise the countries which currently share around £2.9bn in UK bilateral aid.

The Government has made clear that the international development budget will increase – to 0.7% of Gross National Income from 2013 - but it will be better targeted to where it can do most good.

The redirected money will be channelled to priority countries and used for poverty reduction measures including programmes to improve maternal health, women’s right to family planning and protection against deadly diseases like malaria.

Andrew Mitchell has said that countries such as China, which recently hosted the Olympics, and Russia, a G8 member, will see a phasing out of UK development assistance as soon as practical and responsible.

The 'Bilateral Aid Review' will analyse the Department for International Development’s programme in each country to look at results, delivery and value for money. Around 90 countries will be included in the review.

The Review, which will report after the Comprehensive Spending Review in the Autumn, will herald a new focus for DFID’s bilateral programme.

International Development Secretary Andrew Mitchell said:
"For some countries aid is a vital safety net that saves lives every day. UK money should be spent helping the poorest people in the poorest countries, with every penny making a real difference by giving families the chance of a better future.

"It is not justifiable to continue to give aid money to China and Russia. Other country programmes which are less effective will be closed or reduced and the savings will be redirected towards those countries where they can make the most difference.

"I am determined to get value for money across my Department’s work and focus on the big issues such as maternal health, fighting malaria, and extending choice to women over whether and when they have children."

The Bilateral Aid Review follows the announcements of a new independent aid watchdog; a transparency guarantee to publish all details of DFID spending; and a review of how the UK spends money through multilateral agencies, like the World Bank and UN.

Notes to Editors

1. The Government has pledged that it will honour its commitment to spend 0.7% of GNI on overseas aid from 2013.

2. Written Ministerial Statement (No.1 16.06.10) The Secretary of State for International Development (Mr. Andrew Mitchell):

The Government will honour the commitment to spend 0.7% of GNI on overseas aid from 2013. We are determined to ensure that this vital and important aid budget is used effectively and delivers value for money for the world’s poorest people. In this context I would like to inform the House that I have commissioned a review of the DFID Bilateral Aid Programme to ensure that we target UK aid where it is needed most and will make the most significant impact on poverty reduction.

The Review will consider which countries should receive British aid, how much they should receive and which countries should stop receiving British aid. It will also consider which aid instruments are most effective at delivering poverty reduction in different contexts. Any savings generated will be redirected to more effective programmes in other poor countries.

I look forward to sharing the full results of the Review with the House when it is completed.

Contacts:

Department for International Development
Phone: 020 7023 0504
nds.dfid@coi.gsi.gov.uk