Where to now? Implications of Changing Relations between DFID, Recipient Governments and NGOs in Malawi, Tanzania and Uganda
This report brings together research conducted jointly by CARE International and ActionAid International in Malawi, Tanzania and Uganda in early 2006. It explores the implications for NGOs of the major changes in donor policies and aid delivery since the late 1990s from both a policy and funding perspective, with particular reference to DFID and the introduction of direct budget support. Key findings include:
- Donors are emphasising the role of civil society in formulating policy, monitoring government expenditure and holding national governments to account. As a result, the shift to direct budget support has not perceptibly changed levels of donor funding to NGOs, but has meant changes in the types of activity funded.
- The space for civil society to engage in national policy dialogue is increasing. Yet, in all three countries, there remains a gap between rhetoric and practice. There is continued mutual suspicion and mistrust between NGOs and governments, while donors remain reluctant to acknowledge the power that they have in domestic policy making.
- CARE and ActionAid argue that dialogue between government and donors over the use and allocation of aid must be opened up for public scrutiny. To improve downward accountability, they also advocate for the establishment of tripartite forums for government, donor and CSO discussions. The report also recommends that all three actors – national governments, NGOs and donor agencies – must support parliaments to fulfil their role in promoting domestic accountability.
- There is also a very clear lack of strategic engagement between the donor community and NGOs and wider civil society. Donor strategies and operations remain largely opaque to all but a few international NGOs.
- The changes in the types of activity being funded bring particular challenges for local NGOs that have traditionally worked in service delivery. NGOs’ capacity is often not yet sufficient to be seen as credible in many government and donor policy forums. Attempts to build capacity and support innovation through various mechanisms, including local funds managed by INGOs, have had some success although critical challenges in design and sustainability should not be underestimated.
- Funding for service delivery is decreasing which has significant implications for local level organisations that have traditionally filled this niche. In Uganda, fiscal decentralisation through local government has supported NGOs to continue these services. But poor people may be at risk if civil society service delivery is not replaced by effective local and central government services.
