In the 2015 Strategic Defence and Security Review (SDSR) the Prime Minister announced the creation of a new £1.3 billion Cross-Government Prosperity Fund. I am pleased to announce the publication on www.gov.uk of a short paper that details how the fund is operating. This paper can be found at: www.gov.uk/government/publications/cross-government-prosperity-fund-programme/cross-government-prosperity-fund-update.
The Prosperity Fund is a key part of our aid strategy. Using primarily Official Development Assistance (ODA) resources the fund will promote economic reform in developing countries contributing to a reduction in poverty.
The fund supports global and UK prosperity by removing barriers to trade, building prosperity partnerships, and supporting UK business in seizing new opportunities. It enables the UK to deepen relationships in countries across the globe.
Thematic, country and regional priorities for the Prosperity Fund are determined by a careful design and economic diagnosis process. Project design, management and evaluation ensures a strong focus on results and value for money. The fund is investing in areas with the highest potential for inclusive growth, strengthening the golden thread of robust institutions, good governance and reduced corruption.
The fund is accountable to the National Security Council (NSC) and to a ministerial board made up of relevant UK Government Departments. The fund supports a fully joined-up approach to prosperity delivery across Departments and through the Government’s overseas network.
All ODA projects and programmes under the Prosperity Fund comply with the International Development Act, meet the OECD Development Assistance Committee (DAC) ODA criteria, are untied, and meet the UK Government transparency commitments on ODA spend.
The Prosperity Fund is one of two cross-Government funding instruments overseen by the National Security Advisor, Sir Mark Lyall Grant. An update to Parliament on the Conflict, Stability and Security Fund (CSSF) will be provided in parallel.