The use of UK aid to enhance mutual prosperity

Our approach

This information note looks at the use of the aid budget to enhance mutual prosperity, covering the period since the publication of the UK aid strategy in November 2015. It

• provides factual information on key trends and highlights risks that warrant future scrutiny
• surveys the different ways in which UK aid is being used to promote secondary economic benefits for the UK, and explores the resulting changes to country and sector allocation, delivery channels and aid instruments
• reviews the rules, systems and processes used by the responsible departments to ensure compliance with the international official development assistance (ODA) definition, the International Development Act and the UK’s commitment to untying aid.

The information note reviews evidence as to whether the pursuit of mutual prosperity through secondary benefits is detracting from the primary purpose of promoting the economic development and welfare of developing countries. It focuses on the portfolios of the activities of the Department for International Development (DFID), the Foreign and Commonwealth Office (FCO) and the Department for International Trade (DIT). Other areas of mutual benefit, for instance national security, public health threats or global public goods such as climate change, are not within scope.

The note provides information and analysis but does not reach evaluative judgments on any specific aid programmes nor does it score the work of any government departments or provide recommendations.

We  used a combination of research methods, providing a sufficient level of triangulation to ensure robust findings. They consist of:

• A rapid survey of the literature, in the form of an annotated bibliography (see below).
• A review of five Prosperity Fund business cases.
• A documentary review of government policy documents and guidance, as well as findings from previous ICAI reviews.
• Interviews and focus group discussions with key government stakeholders, civil society, businesses and academia.