Better Together Promoting sustainable prosperity and growth for all PwC’s 11th International Development Conference summary report #PwCIDC2019 2 PwC’s 11th International Development Conference summary report PwC’s 11th International Development Conference summary report 3 Foreword We are delighted to share with you our summary of PwC’s 11th International Development Conference, held in London on 6th of March 2019. The conference attracted over 250 international development practitioners from the UK and elsewhere, from a range of professional backgrounds including public sector, academia, civil society and the private sector. Under the overall theme of “Better Together: promoting sustainable prosperity and growth for all” we examined a number of key issues for international development including: the dynamic between trade and aid, aid post- Brexit, the new skills drive, technology- driven innovation and large-scale programme management. This report summarises the key messages that emerged from our discussions on the day. We would like to extend our sincere thanks to all of the speakers, panel members and attendees for ensuring this was such an engaging and thought provoking event. We hope you enjoy our report, and we look forward to continuing an ongoing conversation with you on topics that most matter to us in international development. If you have any queries, please don’t hesitate to get in touch with us directly. Dr David Armstrong PwC UK Partner, International Development Industry Leader 4 PwC’s 11th International Development Conference summary report PwC’s 11th International Development Conference summary report 5 6 PwC’s 11th International Development Conference summary report Contents The case for aid 8 The skills drive 10 Seizing the opportunity 12 Smartphones and smart cities 16 Billions to trillions 18 Friends or foes? 20 Technology-enabled healthcare 22 The problem with major programmes 24 Combatting modern slavery 26 Aid post-Brexit 28 Closing remarks 30 PwC’s 11th International Development Conference summary report 7 The case for aid Essential building blocks of a credible and effective international policy Speaker A case for investing in driving sustainable development. Since 2015, the UK has become one of development the only five donor countries (the others being Denmark, Luxembourg, Norway, “Our latest inquiry provides a Sweden) meeting the internationally pertinent reminder of the increasing agreed commitment to spend 0.7% global humanitarian challenges of Gross National Income (GNI) on Stephen Twigg that we face. There are over 20 overseas aid. This commitment was Former MP and former Chair of the million internally displaced persons applauded internationally and built trust Commons Select Committee for among the UK’s international peers. International Development and refugees in Africa, half of which are children. Globally more DFID’s track record people are displaced today than While throughout its history DFID has Host at any time in the last 70 years. By 2030, 80% of the poorest people faced scrunity, through its vision and commitment it has improved the lives in the world will live in fragile and of many of the world’s poorest people. conflict affected countries; and It has played a vital role in lifting more climate change exacerbates further than a billion people out of extreme that fragility. If we are to tackle poverty over the last 22 years and DFID these challenges and meet the is recognised as a global leader in Prof. Myles Wickstead CBE Sustainable Development Goals international development. Visiting Professor, NED Development Initiatives, Kings College (SDGs), DFID must maintain a vision Importantly, DFID is recognised as London that is rooted in poverty reduction. a world leader on aid quality and All Official Development Assistance ranks highly on lists measuring donor (ODA) spending departments should performance. Yet despite progress, conform with the primacy of poverty the number of people living in extreme reduction.” poverty globally remains stubbornly Stephen Twigg, Former MP and former Chair of high in low income countries where the Commons Select Committee for Interna- poverty, hunger, gender and income tional Development inequality, poor health, environmental degradation and many other problems The session was opened with remain enormous challenges. Aid alone a powerful case for investing in will not be able to drive progress to development and considering the meet the 17 SDG goals by 2020. essential building blocks of a credible and effective aid policy for the UK. Further, the changing political environment, impact of Brexit, attacks The participants were reminded of on the 0.7% commitment and the the journey that the Department for breakdown of cross-party consensus International Development (DFID) has on foreign aid means we are facing made since it was set up in 1997 with its more challenges. core purpose of reducing poverty and 8 PwC’s 11th International Development Conference summary report The UK’s position in a The conclusion of a recent International The IDC works with the Independent changing world Development Committee (IDC) report on Commission for Aid Impact to oversee Rather than renouncing its current aid ODA, noted that “unilateral action by the UK aid. In the IDC’s inquiries a spotlight commitments, the UK should use its UK to develop and use its own definition is shone on the programmes that global weight to press other donors to would be an own goal”. The UK’s contribute to the reduction of poverty, meet them too. The UK’s commitment reputation as a leading development including the difference which the UK’s to 0.7% contributes significantly to the actor stems from its expertise and international development work makes UK’s global influence and ’soft power’. professionalism, its commitment to around the world. multilateralism and the international DFID’s strong multilateral partnerships system and its commitment to, and In a recent inquiry, it was revealed help expand the reach of UK delivery against, the 0.7% target, Twigg that there are over 20 million internally development to mobilise significant said. All three of these assets would be displaced people, including refugees resources and expertise to tackle damaged by trying to manipulate the in Africa – half of them are children. global challenges. The UK’s multilateral shared understanding of what aid is. By 2030, 80% of the poorest people in partnerships ensure that UK aid reaches the world will live in fragile and conflict more people, saves more lives and lifts Dealing with public affected countries; and climate change more countries out of poverty. attitudes to aid will only exacerbate There is evidence, however, that this situation. For many states, development is their the public is not convinced by the If these challenges are to be tackled top priority within the United Nations arguments for maintaining the and the SDGs met, the UK must (UN). Former UK Ambassador to the commitment to 0.7%. In a recent Aid maintain a vision that is rooted in UN, Sir Mark Lyall Grant, was cited on Attitudes Tracker (AAT) survey, 34% of poverty reduction. All ODA spending how crucial the foreign aid commitment respondents agreed that government departments should conform with the is for the UK to demonstrate “evidence should give aid “to help people in poor primacy of poverty reduction, with DFID of real intent to be a global power”. countries most in need”, with a further overseeing all ODA spending. Reducing the UK’s commitment to 24% agreeing that government should To row back on its commitments to international development would give aid “based on our own interests 0.7% and mutilateralism, DFID would therefore diminish the UK’s international and others’ needs equally.’’ Only 11% risk undoing years of experience and status, at a time when it is going agreed that government should give expertise. It would also harm the through its biggest post-war foreign aid “to promote the UK’s business and UK’s global standing and let down policy challenge. strategic interests.” UK taxpayers who rightly expect aid The 0.7% commitment helps to create At a time when the UK needs all the spending to be determined by evidence the conditions necessary for the private more to satisfy the public that its of effectiveness. But most importantly, sector to invest the kind of sums expenditure represents good value for it would let down the world’s poorest needed to achieve the SDGs. Billions money and is effective, decisions about people who we have pledged not to in investments from donor countries how to spend aid through multilaterals, leave behind. are necessary to pull in the trillions that DFID or other government departments, are required to meet the huge global should be based on evidence of their challenges that we face. relative effectiveness. With the aid budget divided among This requires a continued commitment various government departments – with to transparency, openness to scrutiny DFID spending approximately 70% and a responsiveness to criticism of the total – it is important to uphold across all parts of government that the highest standards when it comes spend ODA. It is absolutely right that to ODA. Failure to pay attention to the UK government should be held this might create risks in three areas: accountable for its aid spending. As coherence, transparency and the focus in all areas of public expenditure, the on poverty reduction. British people are right to expect value for money. Keeping DFID as an independent department is key to ensuring that all More myth-busting is required and work UK aid is poverty-focused, effective and needs to be done to articulate the value transparent. The attempt to change the of the money that’s spent on aid. For current definition of ODA as determined every £100 made in the UK, only 70p by the Organisation for Economic Co- goes towards foreign aid.