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| 'Steady progress' at UN agencies criticised in 2011 multilateral aid review | |
| (about 1 hour later) | |
| Three UN agencies have made "steady progress" since a 2011 UK government review of multilateral aid organisations judged them poor value for money and placed them in special measures, demanding urgent improvements if they are to continue receiving UK aid money. | Three UN agencies have made "steady progress" since a 2011 UK government review of multilateral aid organisations judged them poor value for money and placed them in special measures, demanding urgent improvements if they are to continue receiving UK aid money. |
| In an update to the 2011 multilateral aid review (MAR), published on Thursday, the Department for International Development (DfID) said the Food and Agriculture Organisation, the International Organisation for Migration, and Unesco are making steady progress towards emerging from special measures. | In an update to the 2011 multilateral aid review (MAR), published on Thursday, the Department for International Development (DfID) said the Food and Agriculture Organisation, the International Organisation for Migration, and Unesco are making steady progress towards emerging from special measures. |
| The 2011 review, which was billed as the most extensive shakeup of UK aid, assessed 43 multilateral development banks, UN agencies, development finance institutions and humanitarian organisations in terms of value for money and how critical they were to meeting the UK's objectives. Almost half of UK aid goes through multilateral organisations. | The 2011 review, which was billed as the most extensive shakeup of UK aid, assessed 43 multilateral development banks, UN agencies, development finance institutions and humanitarian organisations in terms of value for money and how critical they were to meeting the UK's objectives. Almost half of UK aid goes through multilateral organisations. |
| As a result of the review, DfID withdrew core funding to four organisations – the International Labour Organisation, the UN Human Settlements Programme, UN Industrial Development Organisation, and UN International Strategy for Disaster Prevention. A further four were put in special measures. | As a result of the review, DfID withdrew core funding to four organisations – the International Labour Organisation, the UN Human Settlements Programme, UN Industrial Development Organisation, and UN International Strategy for Disaster Prevention. A further four were put in special measures. |
| "The MAR confirmed that the multilateral system is a critical complement to what the UK government can do alone. But it also found evidence of significant weaknesses," said Thursday's report, which reviews the first 24 agencies. "The updated assessments will inform DfID decisions on funding through multilateral organisations" – though they will not make specific recommendations, it added. "All DfID funding through multilateral organisations is related to performance." | "The MAR confirmed that the multilateral system is a critical complement to what the UK government can do alone. But it also found evidence of significant weaknesses," said Thursday's report, which reviews the first 24 agencies. "The updated assessments will inform DfID decisions on funding through multilateral organisations" – though they will not make specific recommendations, it added. "All DfID funding through multilateral organisations is related to performance." |
| The update said the International Organisation for Migration "has demonstrated a strong commitment to address reforms, driven by its senior leadership". In 2011, DfID said the organisation delivered poor value for money as it had limited financial flexibility, mixed performance, and neither a development nor humanitarian mandate, filling only a "marginal gap" in the international system. | The update said the International Organisation for Migration "has demonstrated a strong commitment to address reforms, driven by its senior leadership". In 2011, DfID said the organisation delivered poor value for money as it had limited financial flexibility, mixed performance, and neither a development nor humanitarian mandate, filling only a "marginal gap" in the international system. |
| The Food and Agriculture Organisation's new leadership was credited with introducing a greater sense of value for money. The DfID update warned, however, that human resource reform remains a priority and noted there have been delays in improving transparency and accountability. | The Food and Agriculture Organisation's new leadership was credited with introducing a greater sense of value for money. The DfID update warned, however, that human resource reform remains a priority and noted there have been delays in improving transparency and accountability. |
| Unesco, meanwhile, "is demonstrating an improved evidence- and performance-based approach to programme management", according to Thursday's update. | Unesco, meanwhile, "is demonstrating an improved evidence- and performance-based approach to programme management", according to Thursday's update. |
| The Commonwealth secretariat, also placed in special measures in 2011, was not judged to have made comparable progress. DfID said: "The secretariat has made reasonable progress in financial management … some progress in results, strategic and performance management, and cost and value consciousness, but little or no progress in its contribution to development objectives." | The Commonwealth secretariat, also placed in special measures in 2011, was not judged to have made comparable progress. DfID said: "The secretariat has made reasonable progress in financial management … some progress in results, strategic and performance management, and cost and value consciousness, but little or no progress in its contribution to development objectives." |
| In response, the secretariat, the Commonwealth's main intergovernmental agency, said the MAR and its 2013 update "give insufficient weight to the fact that the secretariat's work is fundamentally oriented towards advancing both democracy and development, which from a Commonwealth perspective are interrelated, mutually supporting and most effectively advanced together rather than in isolation. The secretariat, in particular, works to set and improve the political context in which development can occur." | In response, the secretariat, the Commonwealth's main intergovernmental agency, said the MAR and its 2013 update "give insufficient weight to the fact that the secretariat's work is fundamentally oriented towards advancing both democracy and development, which from a Commonwealth perspective are interrelated, mutually supporting and most effectively advanced together rather than in isolation. The secretariat, in particular, works to set and improve the political context in which development can occur." |
| The MAR outlined reform priorities for each agency; the 2013 update assesses progress made. The update says, for example, that the International Finance Corporation, the private-sector arm of the World Bank, has been slow to increase its focus on fragile states and low-income countries. | The MAR outlined reform priorities for each agency; the 2013 update assesses progress made. The update says, for example, that the International Finance Corporation, the private-sector arm of the World Bank, has been slow to increase its focus on fragile states and low-income countries. |
| "There is still limited evidence on efficiency gains and value for money" at the Caribbean Development Bank. "Further work is needed for the bank to demonstrate real improvements in the areas of results management, value for money and gender mainstreaming," DfID says. | "There is still limited evidence on efficiency gains and value for money" at the Caribbean Development Bank. "Further work is needed for the bank to demonstrate real improvements in the areas of results management, value for money and gender mainstreaming," DfID says. |
| The UN's central emergency response fund has taken reforms seriously but it has not yet been able to ensure the running costs of its secretariat represent value for money, according to the update. | The UN's central emergency response fund has taken reforms seriously but it has not yet been able to ensure the running costs of its secretariat represent value for money, according to the update. |
| At least two organisations – the International Federation of the Red Cross and Unitaid, a UN global health scheme – have made "little to no progress" on transparency and accountability. The Inter-American Development Bank has made some progress in this area, though DfID says its access to information policy could be improved and its independent consultation and investigation mechanism "has been ineffective and needs thorough redesign". | At least two organisations – the International Federation of the Red Cross and Unitaid, a UN global health scheme – have made "little to no progress" on transparency and accountability. The Inter-American Development Bank has made some progress in this area, though DfID says its access to information policy could be improved and its independent consultation and investigation mechanism "has been ineffective and needs thorough redesign". |
| The MAR update is being undertaken in several stages and will be completed by the end of this year with a final report. A full refresh is planned for 2015. | The MAR update is being undertaken in several stages and will be completed by the end of this year with a final report. A full refresh is planned for 2015. |