When aid relationships change: DFID’s approach to managing exit and transition in its development partnerships

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ICAI examined how well the Department for International Development managed the process of ending bilateral aid, or transitioning to new forms of development partnerships in seven countries.

The review found that in several cases the department had not specified clear objectives for its new development partnership or detail on how that partnership would work, and that the process was not well communicated – within recipient countries or to the UK public.

The review also found examples of poor planning which led to weaknesses in a number of areas including staffing and relationship management.

In each country the end to financial aid did not necessarily mean an end to all forms of aid, with flows including technical assistance, centrally managed programmes and spending by departments other than DFID continuing.

Overall, ICAI awarded DFID’s performance on exiting and transitioning from development partnerships an ‘Amber-Red’ – requiring significant improvement.

Recommendations

Based on its review, ICAI made a series of recommendations for improving DFID’s performance for future transitions and exits:

• DFID should establish a central point of responsibility for exit and transition and redress the lack of central policy, guidance and lesson learning. In future cases, it should articulate clearer objectives at the strategic and operational levels and make more consistent use of implementation plans.
• DFID and other UK government departments should work together to improve relationship management with bilateral government partners through transition. This should include joint risk management and more coordinated communications.
• DFID should report and be accountable to UK taxpayers regarding commitments to end aid or change aid relationships in a transparent manner. It should state clearly which parts of aid spending will end and which will continue, and this information should be readily accessible to the public.
• During exit and transition, DFID should assess the likely consequences for local civil society partners, including both financial and other impacts, and decide whether to support them through the transition process.

Government response

The government publishes a response to all ICAI reviews. You can read the government’s response to ICAI’s review on managing exit and transition in its development partnerships online.

International Development Committee

Parliament’s International Development Committee (IDC), or its ICAI sub-committee, hold hearings on all ICAI reviews. You can watch the IDC hearing on managing exit and transition in its development partnerships online.

ICAI’s follow up

This review will be included in ICAI’s next follow up report, due to be published in summer 2018.