Department for International Development (DFID)
Department for International Development (DFID)
May 2002
Executive Summary
A team comprising Kate McKee of USAID, Leila Webster of the World Bank Group, and Brigi Helms and Alexia Latortue of CGAP conducted a Donor Peer Review of DFID in London from 13 17 May, 2002. The review is part of a 21-agency initiative launched by UK Secretary of State Clare Short and CGAP to concretely tackle aid effectiveness by using microfinance as a test case.
The Peer Review team focused on the internal procedures, practices and processes of DFID to identify the success factors and constraints that influence the effectiveness of the agency’s microfinance operations. EDD provided the team with an orientation to DFID and organized meetings with over 50 staff members, including extensive consultation with field- level staff and a field visit to Uganda. The team briefed Director General Richard Manning, several department heads and staff on its initial findings on May 17.
The Peer Review team found its visit to be timely given the reorganization and new priorities at DFID that present some potential trade-offs for effective pro-poor finance. The team hopes that this management letter will enrich the internal discussions and provide specific ideas of how DFID can maintain its successful pro-poor finance practice within the move towards large programs, PRSPs, upstream work, and the increasing program budget.
This letter outlines DFID’s strengths and challenges, and presents a number of specific recommendations for change. A matrix at the end of the letter provides a summary of the key findings and recommendations organized around six strategic areas.
The recommendations address the risk that pro-poor finance will become increasingly marginalized within DFID. The Peer Review team’s suggested actions for change fall into four main categories:
- Achieve Strategic Clarity. DFID should clarify internally the contribution of pro-poor finance to the Millennium Development Goals and how best to support it.
- Adopt a Pluralistic Approach to Support Modalities—PRSP Plus. DFID should adopt a pluralistic approach and work both within the PRS process (budget support, SWAPs) and outside, including investments in the sector globally, as well as at wholesale and retail levels, to deepen the financial sector.
- Maintain Technical Skill in Pro-poor Finance. DFID should maintain its key comparative advantage vis-à-vis other donors in pro-poor finance—the quality of its technical staff.
- Clarify Role of London-based Technical Advisors. DFID should house EDD with private sector and/or and financial sector development departments. DFID should also clarify the role of London-based staff as a service center for other advisory, regional and policy departments, with responsibilities for internal mainstreaming and engaging internationally.
|
 |
|
