The United Kingdom’s aid spending on the World Bank’s International Development Association is “good value for money” and is aligned with the country’s development objectives, according to a new report by the Independent Commission for Aid Impact, which monitors aid policy.
ICAI’s review came just two weeks after the Foreign, Commonwealth & Development Office announced it would be “substantially” reducing its multilateral spending in favor of bilateral spending.
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U.K. funding to the IDA was cut by around 55% — an estimated $1.8 billion — during Britain’s deep aid cuts. For 10 years previously, the U.K. was the largest donor to the institution, which is the world’s largest provider of finance for low-income countries, providing $30 billion a year.
But the U.K.’s ability to influence the IDA may not have been seriously affected by the cut, as long as the government “providing the UK’s intellectual and political leadership skills were kept up, and its funding slide did not continue much further,” ICAI was told by its interviewees from the World Bank and other donors.
“The World Bank’s International Development Association is an important source of concessional finance for low-income countries, whose ability to move at scale has proved itself in times of crisis. Our review found that the UK’s significant contributions to it provides good value for money,” said ICAI Chief Commissioner Tamsyn Barton.
Amy Dodd, global policy director at ONE Campaign, said: "This review shows that multilateral organisations are an important way to deliver UK priorities while also getting great value for money … As we see multiple crises converging … the importance of global collaboration to respond at a genuinely global level to global challenges is mission critical.”
About the author
William Worley@willrworley
Will Worley is the Climate Correspondent for Devex, covering the intersection of development and climate change. He previously worked as UK Correspondent, reporting on the FCDO and British aid policy during a time of seismic reforms. Will’s extensive reporting on the UK aid cuts saw him shortlisted for ‘Specialist Journalist of the Year’ in 2021 by the British Journalism Awards. He can be reached at william.worley@devex.com.
