The Department for International Development (DFID) is responsible for planning and implementing the United Kingdom’s development co-operation. DFID was created in 1997 by the new Labour government to replace the Overseas Development Administration, which had been a functional wing of the Foreign and Commonwealth Office.

The UK’s development policy has been strengthened significantly since the establishment of DFID. White Papers on international development published in 1997 and 2000 developed innovative poverty reduction strategies that set new standards for the international donor community. The ultimate and overarching goal of poverty reduction was adopted as legislation with the 2002 Development Co-operation Act. In 2001, the UK was one of the first countries to only provide ‘untied’ aid that is not conditional on the purchase of goods and services from the donor country.

In 2000, DFID acknowledged the crucial role of the Millennium Development Goals (MDGs) in reducing poverty and improving the health and living conditions of people in developing countries. Today, all of DFID’s activities are strategically oriented towards achieving the MDGs.

Public Service Agreements (PSAs) set out specific interim targets towards realising the MDGs, against which DFID can be held accountable by the public. The current 2003–2006 PSA targets are:

• progress towards the MDGs in 16 key countries in sub-Saharan Africa and nine key Asian countries (see ‘Bilateral Aid’);
• improved effectiveness of the international system;
• agreement on a significant reduction of trade barriers;
• an increase in the proportion of DFID’s bilateral programme funding going to low-income countries from 78% to 90%; and
• a sustained increase in the number of DFID’s bilateral projects evaluated as successful.

During the Group of Eight (G8) and European Union (EU) Presidencies in 2005, the UK government launched significant initiatives that target an increase in Official Development Assistance (ODA) spending, debt relief and a new development partnership with Africa.

A new White Paper on international development was published in July 2006. It sets out DFID’s priorities and actions over the next five years. The new White Paper puts governance at the centre of DFID’s work, focusing on building effective and responsible states and tackling corruption. The provision of public services and social protection will form a major new area of co-operation, with 50% of the UK’s future bilateral aid committed towards these issues.

ODA spending has increased significantly over the past years, making the UK the third largest donor of development aid. According to OECD figures, the UK government spent US$ 10.7 billion in 2005, representing 0.48% of gross national income (GNI) and an increase of 35% compared to 2004. The new White Paper commits the government to further increase its ODA to 0.7% of GNI by 2013.

DFID supports projects in more than 150 countries worldwide, either directly or through multilateral agencies. In order to reach the overarching goal of poverty reduction, DFID concentrates the bulk of its aid on Least Developed Countries (LDCs).

Country Assistance Plans (CAPs) set out how the UK government aims to contribute to the achievement of the MDGs through bilateral co-operation with various countries. The developing country’s own Poverty Reduction Strategy is taken into account in the drafting of CAPs, which then lay down in detail how DFID will support the country’s strategy for reducing poverty. CAPs also include a framework for annual assessment of DFID's performance in implementing the plan. Major reviews of CAPs are to be undertaken every three to four years. As good governance and the fight against corruption form basic elements of the UK’s development policy, implementation of bilateral co-operation programmes will be suspended if there are concerns about these issues in a particular partner country. 

According to the current PSA, the UK will focus its development efforts on the following countries over the next years: 

• Africa: DR Congo, Ethiopia, Ghana, Kenya, Lesotho, Malawi, Mozambique, Nigeria, Rwanda, Sierra Leone, South Africa, Sudan, Tanzania, Uganda, Zambia, Zimbabwe
• Asia: Afghanistan, Bangladesh, Cambodia, China, India, Indonesia, Nepal, Pakistan and Vietnam

These countries will receive around 90% of DFID’s total funds. In 2004/5, India, Bangladesh and Tanzania received the largest amounts of bilateral aid from the UK government.

Multilateral assistance has always been a prominent feature of UK development co-operation. Consequently, a large share of DFID’s development funding is channelled through multilateral agencies for assistance (39% in 2004/5). DFID’s co-operation with multilateral organisations and agencies (e.g. the World Bank, UNDP) is based on multi-annual Institutional Strategy Papers which set out DFID's objectives and approach in working with these institutions. The 2006 White Paper emphasises United Nations (UN) reform, more effective and responsive financial institutions such as the IMF and World Bank, and closer relationships with other EU Member States and the European Commission (EC) to ensure more effective EU aid as UK’s main priorities within the international development community. In 2004/5, the EC’s development programmes received the largest amount of multilateral assistance from DFID (£ 898 million), followed by the World Bank (£ 206 million) and the UN (£ 194 million).

The UK government is a strong supporter of the ICPD agenda and has pointed out that the MDGs cannot be achieved without significant progress on sexual and reproductive health and rights (SRHR). DFID follows a rights-based approach to realise better access to SRHR as a basic human right. According to its 2004 position paper on SRHR, DFID prioritises the following actions in order to accelerate progress towards achieving the ICPD goals:

• advocacy and partnership;
• support to strengthen sexual and reproductive health services;
• support to address social, cultural, and economic barriers to access; and
• generation and application of knowledge.

Moreover, the UK government views gender mainstreaming and increased investment in education for girls and women as critical to contributing to better SRHR, maternal health and lower fertility rates.

DFID’s strategy to fight HIV/AIDS (‘Taking Action’, published in 2004) focuses on the following issues:

• narrowing the funding gap;
• improving the international response;
• strengthening political leadership in the North and South;
• providing better programmes, giving more support to women, young people and orphans; and
• minimising the impact of HIV/AIDS in the long term.

The UK also supports new and innovative approaches to HIV/AIDS, such as research into and the development of microbicides and HIV vaccines.

During the UK G8 Presidency in 2005, the heads of state agreed to tackle the pandemic by developing and implementing a package for HIV prevention, treatment and care, with the goal of securing universal access to treatment by 2010. In 2006, the UK government also sponsored a high-level meeting on HIV/AIDS, bringing together developing countries, civil society, G8 members, UN agencies and the World Bank. Civil society members have criticised the outcome of this meeting, however, as neither their views nor the issue of treatment were sufficiently considered.

According to projections by the Resource Flows Project, the UK government is the second largest donor of funds for population and AIDS activities, spending approximately US$ 589 million in 2003. In 2004, the government pledged to provide £ 1.5 billion for HIV/AIDS actions by 2008, including £150 million for orphans and vulnerable children.

With a payment of US$ 36.7 million in 2004, the UK currently is the fourth largest contributor to the UNFPA budget. DFID’s support to international organisations working in the area of SRHR also includes the World Health rganization (WHO), UNAIDS, IPAS, and IPPF.

Moreover, the UK government views gender mainstreaming and increased investment in education for girls and women as critical to contributing to better SRHR, maternal health and lower fertility rates.DFID’s strategy to fight HIV/AIDS (‘Taking Action’, published in 2004) focuses on the following issues:

Non-government organisations (NGOs) are recognised by the UK government as an important force in bringing about social change, empowerment and raising the capacities of poor and vulnerable populations. DFID views the role of NGOs as complementary to development activities of governments and the private sector, especially in the fields of building voice and accountability, promoting awareness and understanding of development, and providing services and humanitarian assistance. 

Over the last 40 years, DFID’s support for civil society has grown into a complex co-operation that today takes the form of policy dialogue and consultation on development issues as well as funding through various support schemes. In 2004/5, £ 233 million of DFID’s bilateral assistance was channelled through UK civil society organisations.

DFID has established long-term Partnership Programme Agreements (PPA) with a number of large UK-based NGOs, such as OXFAM, ActionAid and Save the Children UK, which represent the majority of DFID’s funding for NGOs. Under these agreements, funding is provided over three to five years on the basis of mutually agreed outcomes. Within the framework, various DFID departments and country programmes can negotiate separate collaboration agreements and financial support for specific activities. NGOs taking part in the PPA scheme usually implement their projects in close co-operation with local civil society partners. NGOs form the South interested in collaborating with UK-based NGOs that have signed a PPA with DFID should contact them directly to explore the potential for future co-operation. A list of the organisations taking part in the PPA scheme can be found on the DFID website.

Another significant channel of funds to NGOs, albeit limited to conflict prevention measures and activities responding to humanitarian emergencies only, is the Conflict and Humanitarian Fund (CHF). The CHF does not fund country-specific projects or organisations but provides programmatic funding to NGOs specialised in the field of conflict and humanitarian affairs. For more information please refer to the CHF website.

 

The UK Foreign and Commonwealth Office (FCO) is offering a Small Grant Scheme (SGS) which provides funds to local NGOs in developing and eastern European countries. Guidelines for this scheme are currently under revision. Interested organisations should contact the local British embassy or high commission directly. Contact details can be found on the FCO website.

DFID is also funding the promotion of public knowledge and understanding of development issues through its Development Awareness Fund (DAF). This funding instrument is available to any UK-based organisation committed to raising awareness on poverty reduction and development co-operation. As guidelines and criteria for this fund are currently under revision, interested organisations should regularly check the DAF website for updates.

Detailed information on the Civil Society Challenge Fund (CSCF), which is available to UK civil society organisations not covered by PPAs, can be found on the following pages.

pdf download

DFID: Civil Society and Development. How DFID works in partnership with civil society to deliver the Millennium Development Goals (2006).

DFID: Departmental Report 2006.

DFID: Making Governance Work for the Poor. A White Paper on International Development (2006).

DFID: Sexual and reproductive health an rights. A position paper (2004).

DFID: Tacking Action. The UK’s strategy for tackling HIV and AIDS in the developing world (2004).

HM Government: International Development Act 2002.

HM Government: G8 Gleneagles: One Year On. Turning Talk into Action (2006).

OECD DAC: Net Official Development Assistance in 2005 (preliminary data).

UNFPA: Donor payments and pledges for 2004

UNFPA/UNAIDS/NIDI: Projections of Funds for Population and AIDS Activities, 2004-2006

Department for International Development (DFID)

OECD Development Assistance Committee