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Development on the Record DFID Annual Report 2007 HC Development on the Record DFID Annual Report 2007 Department for International Development Annual Report 2007 Presented to Parliament by the Secretary of State for International Development pursuant to Section 1 of the International Development (Reporting and Transparency) Act 2006. May 2007 Ordered by the House of Commons to be printed on 15th May 2007. HC 514 London: The Stationery Office £40.00 © Crown Copyright 2007 The text in this document (excluding any Royal Arms and departmental logos) may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not used in a misleading context.The material must be acknowledged as Crown copyright and the title of the document specified. Any queries relating to the copyright in this document should be addressed to The Licensing Division, HMSO, St Clements House, 2-16 Colegate, Norwich, NR3 1BQ. Fax: 01603 723000 or e-mail: [email protected]. About this report DFID’s Annual Report is intended to provide Parliament, members of the public, our development partners and others interested in development issues with a comprehensive account of how we have been spending, and plan to spend, public funds.The report focuses primarily on DFID’s work and key developments from April 2006 to March 2007. It explains our approach to working as part of a wider international effort to tackle poverty in poor countries, collaborating with many organisations, including other UK government departments, other donors, multilateral development agencies, the governments of developing and transition countries, civil society,business and academia. It does not contain information about policy that is already set out in other DFID publications. The report is structured around DFID’s Public Service Agreement (PSA) for the period 2005–08. Chapter 1 provides an introduction to DFID’s work to reduce poverty in developing countries, outlines the significance of the year 2006 to the international effort to achieve the Millennium Development Goals (MDGs) and describes how and where in the Report we are responding to the requirements of the International Development (Reporting and Transparency) Act 2006. Chapters 2 to 9 focus on DFID’s six PSA objectives: our work to reduce poverty in Africa, in Asia, and in Europe and Central Asia, the Middle East and the Americas (Chapters 2, 3 and 4 respectively); our efforts to make our bilateral aid more effective (Chapter 5) and improve the effectiveness of the multilateral system (including our work with the European Union, the World Bank and United Nations agencies – Chapter 6); what we are doing on conflict prevention, post-conflict reconstruction, humanitarian crises and our focus on Fragile States (Chapter 7); how we are addressing climate change issues and environmental and natural resource management (Chapter 8); and how we address debt relief and international trade and our involvement with civil society (Chapter 9). Chapter 10 explains how DFID is organised and structured to deliver its objectives efficiently. Annex 1 responds to the statistical reporting requirements of the International Development (Reporting and Transparency) Act 2006. Annex 2 sets out DFID’s current and planned financial allocations. Annex 3 sets out the Millennium Development Goals, including targets and indicators. Annex 4 provides details of DFID’s achievements against both the 2003–06 and 2005–08 Public Service Agreements (PSAs). Annex 5 outlines progress on the off track PSA targets and Annex 6 explains the limitations of the available data in measuring progress against our PSA and the efforts which DFID is making to address these limitations. Annex 7 outlines DFID’s efficiency programme and shows the progress which has been made to date. Annex 8 shows the Organisational Chart. Annex 9 lists the reports, policy papers, country and regional assistance plans and other documents that DFID has published in 2006/07 and Annex 10 contains some useful websites and sources of information.A glossary of the most commonly used acronyms, abbreviations and development terms is given in Annex 11. Annex 12 provides a comprehensive index. i Contents Foreword ix Summary of DFID’s Annual Report 2007 xii Chapter 1 Introduction 1 A brief introduction to DFID 3 DFID’s policy: the 2006 White Paper 3 The International Development (Reporting and Transparency) Act 2006 5 Progress towards the Millennium Development Goals 7 DFID’s Public Service Agreement 2005-08 11 DFID’s budget 13 Developing policy which makes a difference 14 Sustainable development 18 Chapter 2 Reducing poverty in Africa 23 Africa Rising 27 Progress towards the Millennium Development Goals 31 Progress towards Public Service Agreement Objective 1 – Reduce poverty in sub-Saharan Africa 34 Challenges for 2007/08 36 The effectiveness of UK aid in making progress towards the MDGs in Africa 36 Chapter 3 Reducing poverty in Asia 63 Progress towards the Millennium Development Goals 66 Progress towards Public Service Agreement Target 2: Progress towards the Millennium Development Goals in nine key countries in Asia 68 The effectiveness of UK aid in making progress towards the MDGs in Asia 71 Progress in non-PSA countries 91 ii Contents Chapter 4 Reducing poverty in Europe, Central Asia, Latin America, the Caribbean and the Middle East 93 Progress towards the Millennium Development Goals 96 Progress towards Public Service Agreement Objective III – Reduce poverty in Europe, Central Asia, Latin America, the Caribbean, the Middle East and North Africa 97 Challenges for 2007/08 99 Chapter 5 Making bilateral aid more effective 117 Untying aid 121 Improving transparency 122 Implementing DFID’s conditionality policy 122 Specifying future allocations of aid 124 Delivering aid predictably 128 Defining objectives 130 Improving aid management 131 Tackling corruption 132 Monitoring performance against objectives 132 Improving performance of DFID’s projects and programmes 133 Evaluation 134 Undergoing a peer review 136 Chapter 6 Making the multilateral system more effective 139 The World Bank and the International Monetary Fund 141 The case for reform of the UN 143 The United Nations 144 The European Community 147 The Asian Development Bank 148 The African Development Bank 149 Global Funds and Partnerships 150 Assessing the effectiveness of the multilateral agencies 151 Chapter 7 Fragile states, conflict and crises 155 Fragile states 157 Conflict prevention 159 Post conflict reconstruction 161 Rapid response to humanitarian crises 163 Disaster Risk Reduction (DRR) 164 Partnerships with humanitarian agencies 166 iii DFID Annual Report 2007 Progress with reform of the international humanitarian system 167 Good humanitarian donorship 168 Security and development 168 Chapter 8 Environment, climate change and natural resources 171 Climate change and energy 174 Environment and natural resource management 180 Water and sanitation 181 Water resources 183 Forestry and biodiversity 184 Fisheries 184 Mining and minerals 186 Chapter 9 Working with others on policies beyond aid 189 Part I: Policy coherence for development 192 Policy coherence internationally 192 Trade and development 194 Migration and development 196 Technology and research 197 International financial architecture 199 Investment and development 201 Part II. Working with civil society and building support for development 205 Working with civil society 205 Consulting civil society 205 Funding civil society 205 Building support for development 207 Chapter 10 Building an effective organisation 209 Getting our structure right 211 Managing business change 213 Delivering results 215 Allocating resources to objectives 217 Increasing efficiency 219 Risk and control 220 Developing our staff 221 Diversity 223 Ensuring effective procurement 226 Making DFID greener 227 Paying overseas pensions 228 Future priorities 228 iv Contents Annex 1: Annual reporting statistical information 230 Annex 2: Analysis of Departmental Expenditure 265 Annex 3: Progress towards the Millennium Development Goals 275 Annex 4: Progress towards the Public Service Agreement 284 Annex 5: Progress on off track Public Service Agreement targets 323 Annex 6: Explanatory note: Measuring progress towards the PSA targets in Africa and Asia and assessing ‘value for money’ – methodological and data quality issues 333 Annex 7: DFID’s efficiency programme 337 Annex 8: Organisation chart 344 Annex 9: Publications in 2006/07 347 Annex 10: Useful websites and sources of information 350 Annex 11: Glossary and abbreviations 353 Annex 12: Index 362 v DFID Annual Report 2007 List of Boxes Chapter 1 Box 1.1 White Paper commitments 4 Box 1.2 Response to the 2006 Act 6 Box 1.3 What are the Millennium Development Goals (MDGs)? 7 Box 1.4 Gender equality 8 Box 1.5 MDG status and the UK’s contribution to the MDGs 9 Box 1.6 DFID’s Public Service Agreement 2005-08 11 Chapter 2 Box 2.1 China in Africa 26 Box 2.2 Promoting gender equality and women’s rights in Africa 33 Box 2.3 Rights and voice in Ghana 40 Box 2.4 Education in Kenya 42 Box 2.5 Debt relief savings update 47 Box 2.6 Girls’ education in Nigeria 48 Box 2.7 Bringing financial services to Uganda’s villagers 58 Box 2.8 Tackling HIV and AIDS in Zimbabwe 61 Chapter 3 Box 3.1 Addressing gender discrimination in South Asia 67 Box 3.2 Helping communities meet their needs 73 Box 3.3 Empowering women in Afghanistan 74 Box 3.4 Reducing child mortality in Cambodia 78 Box 3.5 Improving governance and tackling corruption in Cambodia 80 Box 3.6 Women in local government in Pakistan
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