By Barrie Ireton (auth.)
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Extra info for Britain’s International Development Policies: A History of DFID and Overseas Aid
Concessional rates of interest on its long-term aid loans were reduced, including zero for the poorest countries. The importance of the work of the CDC was acknowledged. In order to help the CDC provide more equity in agricultural enterprises and local development finance companies the Department persuaded the Treasury that new Exchequer Advances to the CDC for such purposes should be free of interest during the ‘fructification’ period. Previously, interest during this period was rolled up and added to CDC debt to government.
However, for political reasons all policy matters bearing on HMOCS would be determined by, and emanate from, the Colonial Office. Finally the DTC took over responsibility for the central UN technical co-operation schemes, but not the work of the UN Specialized Agencies which remained with the home departments because of their wider international regulatory role. Thus the DTC came into being in July 1961, staffed largely by civil servants drawn from the CO. It was essentially to be a service department for the three overseas departments which would retain responsibility for broad policy issues.
By the criteria we have discussed more foreign countries could make a claim on our aid . . but [there are] obvious limits in our present economic circumstances to what we can do (para 5). 36 The Department’s Mission: 1964–2013 37 Aid will be most effective where it forms part of a coherent and co-operative effort to implement a well prepared development plan. Our contribution [is] best where it is big enough to play an effective part or where [there are] arrangements for the co-ordination of all donors’ aid (para 6).