Interactive: Investigating DFID and FCO funding priorities

The merger of the Department for International Development and the Foreign & Commonwealth Office into the new Foreign, Commonwealth & Development Office, announced mid-June, has created a range of questions as to what will change with the new aid project — especially in light of impending budget cuts. DFID is the primary U.K. department responsible for the delivery of official development assistance — and FCO is also an implementing department. By analyzing the aid programs in implementation phase on DevTracker, Devex Analytics analyzed the differences between the two departments — in implementing partners, as well as differences in sector and geographic focus for over 1,700 programs — to identify potential shifts and predict how the two could merge. Implementing partners According to DevTracker, DFID is responsible for 827 programs classified in the implementation phase, valued at £63.7 billion ($80.3 billion). FCO is responsible for 918 development programs in implementation but the value is significantly smaller, at £2.5 billion, averaging £2.8 million per program. The difference in value means a difference in who is required to support the programs. To deliver development assistance, DFID collaborates with a range of partners representing the government, private sector, NGOs, CSOs, research institutes and multilateral organizations. In the delivery of the 827 programs listed as being implemented, 729 organizations are participating in the delivery — including through funding and as implementing partners. The International Bank for Reconstruction and Development is listed as a participating organization for 131 programs. The largest is a £524.2 million program supporting the Private Infrastructure Development Group to encourage private sector participation in funding sustainable infrastructure projects. Social protection and primary education are also leading sectoral focuses of this partnership, with initiatives including a £387.2 million program supporting literacy and numeracy programs in primary and secondary schools of Punjab province in Pakistan. Oxford Policy Management, a development consulting company, is a participating organization in 116 programs supporting the delivery of programs across 94 focus sectors. Humanitarian Reform of the United Nations through Core Funding, a £684 million investment that provides core funding to seven U.N. agencies to support humanitarian crises, is the largest program it is supporting. A £315 million Women's Integrated Sexual Health program is another key program it is helping deliver, with the aim of increasing access to family planning and reducing maternal deaths. <div class='tableauPlaceholder' id='viz1594207630319' style='position: relative'><noscript><a href='#'><img alt=' ' src='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;Df&#47;DfID_FCO_comparison&#47;DFID-FCP&#47;1_rss.png' style='border: none' /></a></noscript><object class='tableauViz' style='display:none;'><param name='host_url' value='https%3A%2F%2Fpublic.tableau.com%2F' /> <param name='embed_code_version' value='3' /> <param name='site_root' value='' /><param name='name' value='DfID_FCO_comparison&#47;DFID-FCP' /><param name='tabs' value='no' /><param name='toolbar' value='no' /><param name='static_image' value='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;Df&#47;DfID_FCO_comparison&#47;DFID-FCP&#47;1.png' /> <param name='animate_transition' value='yes' /><param name='display_static_image' value='yes' /><param name='display_spinner' value='yes' /><param name='display_overlay' value='yes' /><param name='display_count' value='yes' /></object></div> <script type='text/javascript'> var divElement = document.getElementById('viz1594207630319'); var vizElement = divElement.getElementsByTagName('object')[0]; if ( divElement.offsetWidth > 800 ) { vizElement.style.width='600px';vizElement.style.height='1669px';} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width='600px';vizElement.style.height='1669px';} else { vizElement.style.width='100%';vizElement.style.height='1900px';} var scriptElement = document.createElement('script'); scriptElement.src = 'https://public.tableau.com/javascripts/api/viz_v1.js'; vizElement.parentNode.insertBefore(scriptElement, vizElement); </script> DAI Europe, a development consulting company, is the third leading implementing partner, supporting 90 programs across 105 sectors and focusing on Africa and Southeast Asia. The Khyber Pukhtunkhwa Education Sector Programme, based in Pakistan, is one of the largest programs supported through this collaboration, valued at £283.2 million, with a focus on improving primary and secondary education in the region. In comparison, FCO has just 13 partner organizations listed, with the core focus on funding programs. The Prosperity Fund, a cross-government program supporting growth and stability in low- and middle-income countries, is the funding partner for 204 FCO-implemented programs. The largest, a global trade program for middle-income countries, is valued at £14.2 million. Expected to conclude in 2022, these funds are supporting the delivery of technical assistance and support to facilitate free trade and open markets — both to benefit recipient countries as well as to open trade markets to U.K. business post-Brexit. Trade policy is being supported in 12 other programs, with energy policy, anticorruption, health policy, construction policy, and financial policy also leading priorities in partnership with the Prosperity Fund. The British Council, a U.K. government-funded NGO focusing on education and culture, is the second leading participating organization in FCO development programs, supporting 68 programs — all focused on education and training. The British Council India program is the largest ongoing program valued at £55.5 million. Through this investment, it aims to strengthen the skill sets of young people joining the workforce — including English language teaching and learning, as well as collaborative higher education and research. The Conflict, Stability and Security Fund, another U.K. cross-government fund, is partnering with FCO on 65 programs, with a large proportion focused on defense and security related issues. The Afghan National Army Trust Fund is the largest program being implemented through this collaboration, with £45.7 million ODA eligible. This program, through its ODA component, will provide training to the Afghan police on explosive devices and improve women’s facilities. Afghanistan is the focus for four collaborative programs. The U.K.-based focus of the FCO partnership model versus a collaborative partnership required by DFID programs is a challenge the new FCDO will be required to respond to. By reigning in the spending of the aid program, partners are likely to decrease. Sectoral priorities Again, the sectoral focus of DFID programs in the implementation phase is significantly larger than that of FCO. In the delivery of development assistance, DFID supports 124 specific sectors. Financial policy and administrative management is the largest sectoral focus of its budget, accounting for £3.4 billion of ODA, followed by material relief assistance and services at £3 billion, and small- and medium-sized enterprises development at £1.9 billion. At the lower end of the scale: fishery development at £1.6 million, nonagricultural alternative development at £882,000, and air transport at £501,464. In comparison, FCO has 44 sectoral focuses, the largest nonsector allocable is administrative costs at £591.2 million. Where sectors can be allocated, multisector education and training accounts for £563.4 million of the budget, followed by media and free flow of information at £244.8 million, and multisector aid at £240.7 million. Education, infrastructure, security, and economic sectors are a focus in FCO programming. As the budget reduces, FCDO is likely to look at the sectors to determine which deliver better outcomes. FCO priorities are likely to remain, as they are supported by cross-government funding and deliver on expanding the U.K. trade market. Geographic focus While DFID seeks diversity in participating organizations and sectoral focus, the geographic focus of FCO’s development programs is larger. One hundred and twenty eight countries are supported by FCO — where the data is available — compared to 62 programs by DFID. China is the focus of 48 FCO programs including a nearly £40 million British Council program, a £4 million energy and low carbon program, and a £3.9 million program supporting sustainable business development. Indonesia is being supported across 21 programs including a £12.1 million British Council program, a £2.1 million scholarships program, and a £642,000 renewable energy program. India, Colombia, Mexico, and Brazil are also leading countries being supported. For DFID implemented programs, both African and Southeast Asian nations are a geographic focus. Nigeria is supported across 31 programs including the £413.7 million North East Nigeria Transition to Development program, while Pakistan is supported by 25 programs including a £300.3 million national cash transfer program. Nepal, Tanzania, Ethiopia, Bangladesh, and Mozambique are also priority countries, but many of their programs are regionally focused. In the merger, there may be a shift toward country specific focus — especially if trade partnerships and economic development become a higher priority. Challenges with transparency What is consistent in the analysis of development programs for both DFID and FCO is the data gaps that exist — creating challenges for transparency. By sector, 70 DFID programs have “unspecified” sectors — and this accounts for £25 billion of the total program budget in implementation. FCO lists 199 programs that supporting unspecified sectors, accounting for £8.2 million. By geography, FCO has 186 programs with no listed country or regions, compared to just 6 for DFID. The 124 different sectors for DFID programs may also suggest mismanagement of data or staff not being clear on how to classify programs. As systems and reporting requirements are merged, these data gaps are likely to increase to support the minimum requirements of the two agencies. The merger may create less visibility on how the new aid program operates, where it operates, and with who. Update, July 9: This story was amended to clarify information about cuts to the aid budget. For access to in-depth analysis, insights, and funding opportunities from over 850+ sources — combined with Devex Pro news content — sign up to a Pro Funding subscription online today or get in touch to learn about our Pro Funding group options.