Madam, - Last Tuesday's report on Niall Mellon's presentation to the new Foreign Affairs Subcommittee on Overseas Development raised three important issues: the rapid expansion of the aid sector in Ireland; the role of the private sector in aid; and accountability of funds. His comments, however, raised more questions than they answered.
There has been rapid expansion within the aid sector in recent years. This is a reality that well-established Irish charities have to get used to. The sector should be open to a diverse range of charities, but should rightly be wary of private companies, Irish or otherwise, seeking to profit from the expansion in Irish Aid. Mr Mellon's work, however, as I understand it, is not a private sector initiative.
Whilst being backed by the private sector, it is a charity like other aid agencies. It is not a profit-making initiative, but rather a charity run by an entrepreneur. There is a big difference. As with all charities, it should be judged on the results achieved for poor people on the ground, according to the best practice within the sector. Within the development sector, principles such as partnership, ownership and long-term sustainability are accepted as good practice.
The bigger issue of accountability and who is best placed to deliver large sums of government aid is an entirely different issue. There are occasions, such as the current emergency in Burma, when the UN agencies are best placed to act. They have the logistical scale and capacity to co-ordinate international actors at such times. In other instances, governments have a responsibility to provide funding to other states to foster a spirit of partnership and ownership. Of course there is an onus to ensure such monies are well spent. There are certain economies of scale in the delivery of aid that can be achieved only through government and multilateral action.
The issue of where and how the private (i.e. profit-making) sector fits into this is a contentious one. Business at all levels clearly has an important role to play in promoting economic growth in developing countries. Unscrupulous business practices, however, can also have a very negative impact on development.
The current Ruggie Process at the UN on business and human rights highlights the most shocking abuses stemming from business interests in the developing world. Within the aid sector, too, business is involved in delivering services and providing technical assistance. But there is a fine line between delivering aid efficiently and tying it to corporate interests.
Clearly this is not what Mr Mellon had in mind in calling for greater involvement of the private sector, but the issue of what exactly is meant by "private sector involvement" is key. The presence of innovative NGOs with entrepreneurial backing adds richness to the sector and there is much scope for mutual learning.
Tying our aid to Irish businesses seeking to expand into developing countries is an entirely different issue. Until now, Ireland's aid has been 100 per cent untied and this track record should be protected. - Yours, etc,
JUSTIN KILCULLEN, Director, Trócaire, Maynooth, Co Kildare.