Aid under Pressure : Support for development assistance in a global economic downturn, fourth report of session 2008-09, Vol. 2: Oral and written Evidence

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In 1970 the UN General Assembly called on the economically advanced countries to provide 0.7% of their income as Official Development Assistance (ODA) by the middle of the decade. In 2004 the UK committed to meet the target by 2013. The Government proposes to enshrine in law its commitment to meet the target in 2010 and each subsequent year. Whilst the legislation is widely welcomed the Committee remains uncertain that it will have the wider impact claimed. The accountability measures contained in the draft Bill weaken the commitment and provide the Government with an easy excuse for not meeting the target. The 2002 International Development Act stipulates that DFID's expenditure on ODA should have poverty reduction as its primary objective. With increasing pressure to find additional finance for responding to climate change or to new types of security threats, there is a danger that increased amounts of UK ODA will be used for purposes only marginally related to poverty reduction. The Government must take appropriate steps to guard against this whether or not the Bill becomes law. Ultimately the Committee supports the 0.7% goal and feels the UK should maintain and build on its reputation as a donor.

Climate change threatens to destroy gains made in poverty reduction in many developing countries. Substantial funding will be needed to help poor countries tackle climate change. This funding must be additional to pledges already made for development assistance because developing countries are not responsible for the emissions which have caused climate change and the estimated costs cannot be met from existing development assistance or national budgets. The current economic crisis could derail efforts to tackle climate change or it could provide an opportunity to chart a new "greener" growth strategy in developing. Climate change should be central to the Department for International Development's (DFID's) work in developing countries and it needs to start establishing comprehensive climate change programmes. Sustainable management of the natural resource base is vital. DFID has focussed on water resources management and it should now consider the creation of marine and forestry management strategies to ensure that these sectors can continue to contribute to economic growth, in a sustainable manner. Developed countries should ensure that actions taken to reduce emissions do not impact negatively on developing countries. Tourism and export horticulture are important contributors to poverty reduction in many poor countries and these sectors should be supported to increase their pro-poor benefits and reduce their climate change impact. There is a need for more research into low carbon options which are appropriate for poor countries and for mechanisms to facilitate knowledge and technology transfer. The Copenhagen Conference to decide the successor to the Kyoto Agreement must agree stringent emission reduction targets or increase the risk of more severe climate change impacts.

On cover and title page: House, committees of the whole House, general committees and select committees

work of the Committee in Session 2008-09 : Second report of session 2009-10, report, together with formal Minutes