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International Development Act 2002

Ways Of Delivering Development Assistance

Can we still give assistance in the form of direct budget support?

Yes. The Secretary of State can give assistance in any form or of any nature (Section 5), so long as it meets the purpose test. Therefore, she can provide direct budget support if she is satisfied that a country’s poverty reduction strategy is credible and that the funds will be used in support of this strategy.

Can we start providing loans?

The 2002 Act makes no difference to our power to make loans. This existed under the 1980 Act. The reason why it has rarely been exercised reflects Government policy on debt.

Can we still award scholarships?

Yes provided the purpose test and poverty reduction requirement are met. Section 5 explicitly includes scholarships in its definition of technical assistance. Sections 13 and 14 provide for the continuation of the Commonwealth Scholarships Commission.

Does the 2002 Act affect our ability to appoint permanent and fixed term staff?

No. There is no material effect on our ability to appoint staff. DFID policy is now to appoint staff (permanent and fixed term) as Home Civil Servants or Staff Appointed in Country. We no longer appoint Technical Co-operation Officers, who were covered by the 1980 Act (Part III). Home Civil Servants are appointed in accordance with the Civil Service Order in Council 1995.

Can we still make personnel available for service elsewhere?

Yes. The provision of technical assistance, including personnel, is explicitly allowed in Section 5.

Can we still fund research?

Yes. The funding of research is included as an activity that facilitates or prepares for development assistance (Section 4(1)(b)). The results of research are also included within the definition of technical assistance in section 5.

Does the Act affect the Small Grants Scheme?

The Scheme has already been revised to ensure that its use is limited to activities that are likely to contribute to the reduction of poverty. The Act merely enshrines this in legislation. Separate guidance is being issued to Heads of Posts to ensure that they are aware of this.

Can we still contract with consultants including single person consultants?

Yes, the ability to contract for the services of consultants is unaffected.

Can we still work through Civil Society?

Yes. We can continue to channel funds through civil society organisations in the same ways as before. The main difference in the 2002 Act is that there is now a proper authority to promote development awareness (section 4(2)c). (The powers to fund civil society arise from Section 4 and through Sections 5 and 8).