Independent evaluation lost as DFAT 'adjusts' its structure

CANBERRA — Drawing outcry from Australia’s development sector, the Department of Foreign Affairs and Trade said Wednesday it had restructured the Office of Development Effectiveness so that the watchdog was no longer an independent body. It is a move that means the aid oversight office has essentially been disbanded. Established in 2006 to review and make recommendations on the Australian aid program, ODE operated as an independent monitor, even after the former AusAid merged with DFAT in 2013. The body played a key role in monitoring program effectiveness. But during an inquiry into the implications of the pandemic for Australia’s foreign affairs, defense, and trade. DFAT confirmed on Sept. 16 that its independence had been removed as part of a “refreshed approach” to monitoring and evaluation in response to COVID-19. Kathy Klugman, deputy secretary of the DFAT Global Cooperation, Development and Partnerships Group, told the inquiry the core functions of ODE will “henceforth be carried out through the Office of the Chief Economist” and its aid and contracting division. “That is an adjustment that is happening at the moment, as we move some of the staffing resources structurally into a different configuration,” Klugman said. “The people and the expertise still exist. The Office of Development Effectiveness was a name that was given to one unit of the Department of Foreign Affairs and Trade.” The questions directed at DFAT from Julian Hill, opposition member of parliament, were in response to concerns the aid program could lose an important part of accountability and transparency. The shift had been rumored in Canberra and development circles but had not been confirmed. “The independence and the stand-alone nature of ODE from many years of talking to stakeholders is something that has given it credibility and robustness,” Hill said. “It was perceived that the ODE’s advice could be trusted because it was its own separate branch.” DFAT, however, downplayed the importance of ODE in monitoring and evaluation. “The Office of Development Effectiveness has been one element in a system of monitoring and evaluation to make sure that we are delivering impact through our aid program,” Klugman said. “The Office of Development Effectiveness itself is simply a structure to allow us to achieve that effectiveness.” Under its new aid policy, Klugman said Foreign Minister Marise Payne and Minister for International Development and the Pacific Alex Hawke had announced a “slightly refreshed” approach to monitoring and evaluation that would enable DFAT to pivot faster. With this change the Office of the Chief Economist, under the leadership of Jennifer Gordon, will now combine the assessments of program effectiveness with wider data and analytics integration. But the new structure means that reports and reviews will be internally checked by DFAT and ministers prior to publication, potentially politicizing recommendations. When pushed by Hill to answer whether ministers Payne and Hawke influenced the decision to effectively scrap ODE, Klugman was evasive in her response. “The structure of the department has been undergoing some adjustments,” she said. “The Department itself needs to be agile and flexible and willing to adjust the way it delivers to the clear tasking and prioritisation of the Department [and] of our ministers. The precise details of structure within the Department of Foreign Affairs and Trade are dealt with by the department.” The impact on staff was also unclear under questioning. “The numbers shift and change, but I can assure .. that the core functions formally performed by the Office of Development Effectiveness are still being performed by very good officers of the Department of Foreign Affairs and Trade,” Klugman said. In addition to questions on the future of ODE, the future of the external advisory body shaping ODE's work program is also in doubt with Klugman confirming the role and function of the independent evaluation committee is currently being assessed. The Australian Council for International Development, Australia’s peak body for the international development sector, was quick to express shock at the decision, which it was concerned would reduce the quality and accountability. “The sector is stunned by the decision,” Bridi Rice, director of policy and advocacy at ACFID, said following the revelation. “ODE’s evaluations have repeatedly confirmed that Australia’s development cooperation program is a high impact, value-for-money foreign policy tool. How can the Government assure the public that it is spending taxpayer money effectively if we don’t have independent, robust verification?” Rice said it was crucial to have a “genuine means” by which Australia’s development program can be assessed — with the needs of recipient countries, development partners, and the public a priority of assessment over politics. “Without this, we’re walking away from best practice internationally on transparency, accountability, and performance. From the department’s current explanation, it’s hard to see how the value of the ODE will be retained.”