The merger of the UK’s Department for International Development into the Foreign and Commonwealth Office: DI’s response

The UK is seen by many as a development superpower because of its focus on poverty and reaching the most marginalised people and places, and commitment to effectiveness and transparency. This is thanks to the priorities and efforts of its Department for International Development (DFID). Merging DFID into the Foreign and Commonwealth Office (FCO), coupled with the Prime Minister’s concerns about UK aid as expressed in his announcement, presents a troubling picture of the UK’s approach to international development at a time of critical need

A likely shift away from global poverty

UK aid spending is administered by a range of government departments, but the largest proportion of the aid budget is held by DFID. Spending by the department is more strongly targeted to fragile countries. According to latest data, 81 per cent of UK aid went to fragile or extremely fragile contexts, much higher than the average 57 per cent by other donors (members of the Development Assistance Committee of the OECD). And while almost two-thirds of DFID bilateral aid spending to countries went to the least developed countries and low-income countries, only 25 per cent of aid spending by other UK departments did. DFID, as the UK’s development agency, has also helped lead a stronger global focus on people who are marginalised, vulnerable and too often left behind, from women and girls to people living with disabilities.

Harpinder Collacott, Executive Director at Development Initiatives said, “Today is a sad day for many of us who are proud of the tremendous change DFID has been instrumental in around the world over the last 22 years. UK Aid administered under DFID has saved lives, increased the incomes of some of the poorest people, increased education for children in remote areas and brought essential support to millions of people impacted by humanitarian crises.

Today’s announcement means international development will no longer have a voice at the centre of government with an independent seat at the cabinet table. At the same time, DFID has been key to facilitating the UK’s soft power around the world, and this move threatens that at a time when the country is most in need of it as it exits the EU.

Development Initiatives, alongside the UK’s development sector, will continue to champion the principles and standards set by DFID - transparency and accountability of taxpayers’ resources, a focus on the poorest people and places, value for money - to ensure aid is impactful and increase global cooperation to build a safe and sustainable world. We will work together with the merged department to ensure it embodies these values with the same pride and focus as DFID.”

A threat to transparent aid spending

While DFID has held high rankings in independent assessments on transparency, the FCO has struggled. In a transparency review by Publish What You Fund in January 2020, we can see that the FCO was classed as ‘poor’ in 2018, rising to ‘fair’ in 2020, but still behind most other aid-spending departments. It does not disclose sufficiently high-quality, granular information about its projects, budgets, procurement and evaluations.

The FCO’s track record on spending aid effectively has been heavily criticised in the past by reviews undertaken by the UK National Audit Office, the UK Independent Commission for Aid Impact and the UK Parliament’s International Development Committee. Looking at programmes or funds administered out of the FCO, such as the Prosperity Fund or the Conflict, Security and Stability Fund, concerns have been raised about the effectiveness, efficiency and value for money of those programmes.

It is crucial that the best practice delivered by DFID is retained in the merger and used to significantly improve on practices by the FCO when it comes to aid spending. Not least, maintaining its commitment to ensuring all UK aid meets International Aid Transparency Initiative standards.