International aid shake up
The Conservatives have announced plans to shake up the way the Britain gives overseas aid. Good.
It's right that rich countries look to foster development in poorer nations. But too much of our aid budget gets spent on big 4x4's and never-to-be-implemented strategy documents.
Worse, in some countries where Britain has given direct budget support, UK taxpayers have been subsidising kleptocracy. Recipient governments are able to spend money on the things that they want (big 'planes and Mercedes Benzs) because they are able to beg for the things that their people need (education and health care).
Sitting on the Public Accounts Committee, I recently quizzed some DfID officials about the way that budget support is being spent. Deeply unconvincing.
Budget support also undermines democratic development in Africa. With such a large slice of government revenue coming from the donor community, ministers and officials in recipient countries answer to outsiders, rather than to the communities that elected them.
Recalibrating the way we target aid give us an opportunity to use our aid budget to protect the natural environment. For example, in Uganda, where Britain spends £billions, we should be looking to help establish fishing conservation areas on overfished Lake Victoria. Doing so would mean fewer 4x4's, but it might just help local people and preserve the environment.
Posted on 1 January 2010 by Douglas Carswell