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• Secretary-General Sounds Alarm Bells in Appeal for Contributions to the Commonwealth Fund for Technical Co-operation

Secretary-General Sounds Alarm Bells in Appeal for Contributions to the Commonwealth Fund for Technical Co-operation

19 September 2005

Commonwealth Secretary-General Don McKinnon in a statement on 19 September 2005 warned the Commonwealth's 53 Finance Ministers and Ministries that the Commonwealth Fund for Technical Co-operation (CFTC) is in danger of losing credibility and relevance in the international development assistance community.

"The CFTC has been one of the most successful development assistance vehicles in the world over the last three decades."

The Secretary-General was speaking at the annual meeting of Commonwealth Finance Ministers in Barbados where annual pledges are made to the CFTC.

"The CFTC has been one of the most successful development assistance vehicles in the world over the last three decades. It has trained thousands of Commonwealth citizens in developing countries, building sustained local capacity, and also provided high quality and highly relevant technical advice to those most in need. The CFTC has operated as a genuine partnership between developed and developing countries, and was doing so before the concept even became recognised as best international practice. Most importantly, the CFTC has focused on delivering 'south-south' development assistance solutions," Mr McKinnon said.

"If a developing Commonwealth country invests £1 in the CFTC, it is virtually assured of receiving at least £5 in return. Some countries receive 12 or 13 times more than they contribute. Governments that have audited the CFTC in recent years have given the Fund high commendations for its effectiveness and efficiency. The CFTC is an extremely good investment for all Commonwealth members.

"My concern is that the CFTC is projected to spend £24 million in 2004/05 which is little different to the amount in the CFTC's spending plan of 1995. In fact, if investment in the CFTC had kept track with inflation in the last decade, the Fund this year would be delivering almost £43 million in capacity-building skills and advice to developing Commonwealth countries."

The Secretary-General concluded: "What is required over the next few years is not an incremental but a sizeable increase in contributions to the CFTC to ensure the Fund remains viable, credible, and effective in tackling developing country needs in the Commonwealth. I have asked Governments for an increase of 6% per annum in real terms over the next five years, and am encouraged that some member countries have already pledged considerable increases in line with that target."