03 June 2010
The government is to set up a new body to ensure money spent on overseas aid represents good value for the British taxpayer, the international development secretary has announced.
In a major speech delivered today, Andrew Mitchell said the watchdog would allow taxpayers to see exactly where and how UK money was being spent.
A new UK Aid Transparency Guarantee will ensure that full information on the Department for International Development’s spending is published on its website, for the use of both UK taxpayers and communities in the developing world that receive aid.
Mitchell said a fundamental change of direction was required. ‘We need to focus on results and outcomes, not just inputs,’ he said.
‘Aid spending decisions should be made on the basis of evidence, not guesswork. That is why we have taken the first steps towards creating a new independent aid watchdog.’
He went on to say that well-spent aid represented ‘tremendous value for money’ and was ‘the best return on investment that you’ll find anywhere in government’.
He added: ‘British aid pays for 5 million children in developing countries to go to primary school every day. That’s roughly the same number as go to primary school in Britain yet it costs only 2.5% of what we spend here.’
Oxfam chief executive Barbara Stocking said the announcement of an independent watchdog was welcome and something the development charity had wanted for years.
But she said it ‘must be truly independent of government if it is to achieve the best results for the British taxpayer and poor people alike’. It was vital to ensure that aid was poverty-focused, not politically driven, and strengthened the public services that poor people relied on. These factors would ensure funding made the ‘biggest possible difference to the lives of the world’s poorest’, she added. ‘We look forward to working with the new government on these issues.’
Richard Miller, UK director of ActionAid, said he was ‘delighted’ with the announcement. ‘It will hopefully establish a new standard of openness and encourage scrutiny by citizens in countries receiving UK aid, as well as assuring UK taxpayers that aid is reaching the poorest,’ he said.
