Partnerships for Poverty Reduction: Rethinking Conditionality

This 26-page paper seeks to show how donors from the United Kingdom can support policy leadership in developing countries without imposing their own views. The paper presents the United Kingdom (UK) Government's position on effective aid partnerships and outlines the principles that should be applied in building partnerships. It explores the relationship donors should have with the policy-making process in developing countries as well as reviews the circumstances behind modifying or withdrawing existing aid commitments. As stated in the paper "it signals a significant change in our thinking." This publication was produced jointly by the Department for International Development (DFID), Her Majesty's Treasury, and the Foreign and Commonwealth Office.

The paper alludes to the more recent approach to providing aid as being based on mutual commitment, transparency, and accountability. It recognises that while financial stability and growth are essential for lasting poverty reduction this criteria must coincide with social, cultural, economic, civil and political rights of all men, women and children.

The paper offers four sections:

• What do we mean by conditionality?
• What impact has conditionality had?
• The UK Government’s approach to aid partnerships
• The way forward

According to this paper, the UK Government believes that an effective aid partnership should be based on a shared commitment to three objectives:

• Reducing poverty and achieving the Millennium Development Goals;
• Respecting human rights and other international obligations; and
• Strengthening financial management and accountability, and reducing the risk of funds being misused through weak administration or corruption.

Within a partnership, both donors and developing country governments need to agree on the purpose for which aid is given. This ensures that both parties have a shared understanding of how aid will contribute to reducing poverty, and how they can be held publicly accountable for delivering on their commitments.