State's overseas aid programme is 'cutting-edge' model, says OECD

THE OECD has praised Ireland’s overseas development programme as a “cutting-edge” model for others to follow, but urged the Government not to make further cuts to its aid budget.

In its latest review of Irish Aid, the OECD’s Development Assistance Committee (DAC) commended the Government for the “impressive” growth of 90 per cent in its aid spending since 2003 and its “intensive, wide-ranging and long lasting” programmes in some of the world’s poorest countries.

However, the report also queried whether the relocation of the overseas development division to Limerick would lead to a loss of expertise and “institutional memory”.

It also advised the Government to ensure greater consistency between its aid work and its policies in areas such as trade and agriculture, which could also affect developing countries.

The OECD’s expert panel noted that “significant growth” in aid spending in recent years meant that by 2007 Ireland was ranked as the OECD’s sixth most generous donor per head of population.

“The Irish Government is committed to meeting the United Nations [aid] target of 0.7 per cent of GNI by 2012,” the report stated.

“The challenge for the Government is to reach these targets despite severe economic downturn and increased budgetary pressure . . . The DAC urges the Government to refrain from further budgetary action that would undermine this commitment.”

The Government has cut funding for overseas development aid by €195 million, or almost 22 per cent of the total, since last summer.

Elsewhere, the report praised Ireland for making untied grants and for “leading the way” among EU states in the proportion of overseas aid spent on combating HIV/Aids.

Having carried out an on-the-ground assessment of the Government’s work in Uganda – the largest recipient of Ireland’s bilateral aid since 2000 – the review team concluded that Ireland was a respected and influential donor with a strong reputation in the field.

Speaking at the launch of the report in Dublin yesterday, Karen Jorgenson of the OECD praised the Government for placing the fight against poverty at the centre of a “tightly focused” aid programme with nine partner countries in sub-Saharan Africa and Asia.

“We regard it as a very good review, and we think that the aid programme has made significant advances over the past four years. In a number of areas, we feel Ireland could be a model for other donors,” Ms Jorgenson said.

She added that while the financial crisis had hit Ireland hard, the OECD hoped the Government would keep its international commitments on aid. “We look forward to seeing Ireland’s development level grow back on track as the economy develops,” she said.

Minister of State for Overseas Development Peter Power said the findings were “enormously positive” for Irish Aid.

“This thorough review of Ireland’s aid programme by our peers in the international development community shows that Ireland is a world leader in tackling hunger, poverty and HIV/Aids in a way that is principled and sustainable,” Mr Power said.

He also said careful consideration would be given to the report’s recommendations on how the programme could be improved, including more support for agriculture and rural development and better communication to the public of what was being achieved.

While Irish Aid’s move to Limerick had resulted in the loss of some institutional memory, this was being addressed by the recruitment of new specialists, staff training and measures to further integrate the division into the Department of Foreign Affairs.

The OECD report is part of a series of assessments of members’ aid policies and programmes.

Aid Report: the main points

- Ireland "leads the way" among EU states in the proportion of aid it allocates to the fight against HIV/Aids.

- Irish Aid's focus on a small number of poor, mainly sub-Saharan African countries is one of the main strengths of Ireland's development programme.

- The Government is committed to meeting the UN aid target of 0.7 per cent of GNI by 2012. The OECD urges it to "refrain from further budgetary action that would undermine this commitment".

- Ireland is "an active advocate of gender equality" in the developing world.

- In Uganda, the largest recipient of bilateral aid from the Government since 2002, Ireland "stands out as a very good development co-operation partner" with a reputation built on "the excellence of its staff as well as its genuine and effective partnerships".

- Ireland should invest more in agriculture, rural development and private sector initiatives.

- The Government should improve the way it communicates the results of its aid efforts to the public.

- Efforts to ensure better policy coherence on development across government should be stepped up. This would ensure that trade, agriculture or migration policies do not undermine the work being done by Irish Aid.

- The full impact of Irish Aid's relocation to Limerick cannot yet be assessed, but this should be closely monitored.