Britain's foreign aid budget is growing so fast that ministers and officials are 'struggling' to spend it properly
- Extra funds made little difference to struggling countries, report finds
- In some cases sudden increase in cash may have made problems worse
- Government chiefs told to focus on spending well, not spending more
The foreign aid budget has been increased so quickly that ministers and officials are ‘struggling’ to spend it properly, a major report warns today.
It found that they were ‘unprepared’ for the challenge of spending a 30 per cent increase in the budget last year.
The increase followed David Cameron’s controversial pledge to spend 0.7 per cent of the UK’s income on foreign aid.
Since David Cameron pledged to spend 0.7 per cent of Britain's GDP on foreign aid, ministers and officials have struggled to find projects worthy of the cash (file image)
The report says the Department for International Development – or Dfid – responded to the massive funding increase with plans that were ‘over- ambitious’. Its processes for allocating money were also described as ‘not fit for purpose’.
In a devastating conclusion, the Independent Commission for Aid Impact says there is only ‘limited evidence’ that the money made a real difference in the world’s poorest countries. In some cases it may even have made problems worse.
The watchdog says Dfid’s focus should now be on ‘spending well and not just more’.
And it says ministers should focus on ‘the art of the possible, rather than the programming struggling to meet a top-down financial objective to spend a certain amount of money or percentage of budget.’
Jonathan Isaby, chief executive of the Taxpayers’ Alliance, said the report showed the 0.7 per cent spending target was a mistake.
One Department for International Investment (pictured) project involved giving £4million to to an Ethiopian girl band to promote equality
Mr Isaby added: ‘It is deeply depressing that British taxpayers’ money isn’t delivering positive outcomes for the world’s poorest.
‘Ludicrous spending targets are making it almost impossible to target aid in the right places, and clearly the department is only just catching up to its responsibilities.
‘It’s clear from this damning report that we need to drastically rethink our aid policy and ditch arbitrary targets, which do nothing to increase the effectiveness of aid and encourage spending above and beyond what the department is able to monitor.’
Today’s report examines the £3.4billion spent by Dfid in the world’s poorest countries. The cash spent in so-called fragile states has risen by almost 50 per cent in the last three years.
It says that while it has produced encouraging results in some places, the speed at which funding has been increased has been too much for the countries to absorb.
Some projects have made little or no difference, while others may even have made the situation worse. The report said a project to create 29,000 jobs in Sierra Leone by this year had produced just 16, although Dfid insisted it was now ‘on track’.
In Somalia, a project to support local beekeepers had led to ‘heightened tensions’ between those farmers who received grants and those who did not.
Some £4million of funding was handed out to support Ethiopia’s version of the Spice Girls – a band called Yegna – in order to empower women in the country.
Overall spending in fragile states was given an ‘amber-red’ rating – the second worst used by the watchdog, meaning ‘significant improvements’ are needed.
Dfid said: ‘The UK set ambitious targets in 2010 and we are now seeing results.
‘From supporting female provincial councillors in Afghanistan to training government officials in districts liberated from Al Shabaab in Somalia, our work in fragile states is improving millions of lives and creating a safer world.’
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