United Kingdom overhauls its development spending - Interview with Stephen O’Brien, the UK’s Under-Secretary for International Development

Stephen O’ Brien has been the United Kingdom’s Under-Secretary of State for International Development since May 2011. He has direct responsibility for policy with Europe in the Department of International Development headed by Secretary of State for International Development, Andrew Mitchell. A vigorous global campaigner against malaria, he previously held posts in the former Conservative opposition’s shadow cabinet. In an interview with the Courier, he gives his backing for the changes voiced by EU Development Commissioner Andris Piebalgs for more high-impact and value-for-money EU aid spending. These are targets that the UK is already pursuing in its bi-lateral development aid programmes.  

In brief, what are the UK's current overseas development priorities?

We are transforming our aid budget to ensure maximum impact on the ground and full accountability to British taxpayers that their money is well-spent and focusing our efforts on a smaller number of countries and agencies to ensure that British aid makes an even bigger impact. This will include detailed plans and tough safeguards to ensure we can track where the money has been spent and be sure it is making a difference. We will also change the way we give aid, where money is only handed over if results have actually been achieved. These reforms will get 11 million kids into school, vaccinate more children against preventable diseases and stop 250,000 newborn babies dying needlessly.

Are you on target to reach the proportion of GNI to development by 2015?

Britain has kept its promise to the worlds poor. Last year’s spending review set out how we will meet our pledge to spend 0.7 per cent of Gross National Income on aid from 2013. We are the first G8 country to set out how we will meet this target.

The UK has recently revised its development policy, stopping bi-lateral programmes for several developing countries and also to some inter-governmental bodies - Why?

Our aid reviews have made our work more focussed and effective, setting out how our aid can be best directed towards the poorest. Britain will end bilateral programmes in countries such as China, Vietnam and Serbia, which are now no longer in need of British aid. We will shift our bilateral support to countries where British taxpayers’ money can have the most positive impact for poor people. Our bilateral focus will be 27 of the poorest countries, which between them account for three out of four global deaths during pregnancy and nearly three out four deaths from malaria worldwide. Nearly two-thirds of programmes will be in conflict and fragile countries, many of which are furthest from reaching internationally agreed poverty targets.  

We have also reviewed our support to major multilateral aid agencies, stopping funding to four agencies which were rated as providing poor value for money and increasing support for the most effective agencies. All multilateral agencies – including the EU – are expected to prove that their aid programmes are delivering real value for money

There’s a lot of talk in development circles about using innovative aid instruments. Has the British government introduced any such methods?  

We have pioneered new and innovative ways to get more aid and investment into the poorest countries. For example, the International Finance Facility for Immunisation has already prevented 1.4 million deaths from yellow fever, polio and measles, while the UK-backed Private Infrastructure Development Group has helped secure $US14.5bn of private investment in telecoms, energy and transport infrastructure to serve nearly 100 million people in the poorer developing countries. But this cannot replace our official aid budget. A recent G8 report showed that there is still a $US19bn shortfall in the eight richest nation’s aid pledges.

However, this cannot replace our official aid budget. A recent G8 report showed that there is still a $US19bn shortfall in the eight richest nation’s aid pledges.

It is vital that other European nations live up to their commitments as the UK has done. My fellow Ministers and I will continue to press EU leaders at the European Council to make good their pledges and at least maintain the proportion of aid in the next long term EU budget. This is the only way to achieve the internationally agreed targets to reduce global poverty.

At the same time, in the Horn of Africa we are seeing the most catastrophic situation in a generation. Britain is leading the way. We have provided over £90M (€102M) of aid which will help over two million people in the region, providing them with much needed food, drinking water and shelter.

Commissioner Piebalgs is expected put two sets of proposals on the table in autumn 2011 on changes to budget support programmes  and development policy in general  , to be debated by EU Ministers. What sort of recommendations would you like to see?

It is the way budget support is delivered which is important. When providing budget support, the EU must ensure it has rigorous political, economic and financial risk assessments for each country to ensure that aid reaches its intended recipients.

The EU’s aid must be more firmly focussed at helping the poorest escape from poverty. At the same time - as the second largest aid donor in the world - it should also use its muscle to drive up economic growth and harness the private sector in developing countries which will ultimately pull countries out of poverty. It is vital that EU aid is more transparent, results-focussed and that it continues to target the most off-track poverty goals, not least in fragile states.

Do you feel that the introduction of the European External Action Service (EEAS) will change the shape of EU development policies?

The External Action Service has the chance to improve the way the EU delivers aid, greatly improving coordination across the EU’s foreign and development policies, and minimising wasteful duplication. The EU’s Development Commissioner, Andris Piebalgs will continue to have clear financial responsibility for aid spending and is working closely with the EEAS to ensure a more joined up approach. We are working with the Development Commissioner and the EEAS closely to maximise the benefits they deliver by better linking up EU policies on trade, conflict, climate change and humanitarian support to help the poorest.

Debra Percival

Find out more about the UK’s development policies: www.dfid.gov.uk/changinglives.