The International Development Committee is to question the UK Government’s Development Finance Institution, British International Investment, about its work. Development Finance Institutions generally invest capital in businesses either directly (by investing equity or providing loans and other finance) or indirectly (by investing through commercial funds). Financial returns are then recycled into new investments.
As a greater proportion of the UK’s aid budget is being delivered through British International Investment (BII), the Committee has been examining the effectiveness of aid spending in this way and whether it is best placed to deliver impact and value for the British taxpayer.
Development Finance Institutions have the primary aim of creating jobs and increasing economic opportunity, thereby contributing to poverty reduction. It is intended to be a major part of Government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025.
Meeting details
Likely topics for discussion include:
- How and where BII targets its investments;
- BII’s relationship with the Foreign, Commonwealth and Development Office, including oversight;
- Monitoring and reporting; and
- The opportunities and challenges of this approach to Development.
BII has released a five-year strategy and investment policy with three priorities: productive development (for example, job creation), sustainable development (helping countries respond to climate change) and inclusive development (promoting gender equality and alleviated poverty).