International Development Select Committee

Extreme poverty and the Sustainable Development Goals

Written submission made on behalf of the Bond SDG Group, February 2022

1.       About the Bond SDG Group

1.1.   Bond is the UK network of over 400 UK organisations working in international development. The Bond SDG group has over 150 of these organisations as members and is advocating for the full implementation of the SDGs with a strong focus on their global impact. We focus on the implementation of the SDGs by the UK International Development Sector and the UK Government.

1.2.   The current co-chairs of the SDG Group are Lilei Chow (Save the Children) and Andrew Griffiths (Sightsavers).

2. The link between extreme poverty and SDGs

2.1.   The 2030 Agenda recognises the inextricable link between extreme poverty and inequality, climate change and conflict. Even before the pandemic, the world was not on track to meet the Sustainable Development Goals (SDGs), with progress stalling or reversing in some areas. While there are challenges in tracking the impact of COVID-19, there is now sufficient evidence that the global pandemic has disrupted progress on the SDGs significantly, in some cases undermining decades of development efforts. This is particularly evident on SDG 1, which focuses on ending poverty, and the SDG 1.1 target to eradicate extreme poverty for all people everywhere, which is currently measured as people living on less than $1.25 a day[1].

2.2.   In 2020, the World Bank estimate that the number of people living in extreme poverty rose for the first time in a generation from 8.4% in 2019 to 9.5% in 2020[2]. An additional 119-124 million people were pushed back into poverty in 2020 alone.[3] Eight out of 10 ‘new poor’ are in middle-income countries. It is projected that around 600 million people will still live in extreme poverty by 2030, significantly off track from the SDG target[4]. Certain groups of people are more vulnerable to rising poverty and inequality caused by the pandemic, including children and youth, informal workers, people with disabilities and migrants. For example, it is projected that the number of children now living in monetary-poor households is now 60 million higher than before the pandemic.[5] The climate crisis is projected to push more than 100 million people in low- and middle-income countries below the poverty line by 2030.[6] As recognised within the United Nations (UN) Secretary-General’s latest annual SDG report, ‘the triple threat of COVID-19, conflict and climate change makes the global goal of ending poverty by 2030 beyond reach unless immediate and substantial policy actions are implemented.’[7]

2.3.   It is important to underscore that poverty is a multidimensional experience, with income being just one measure. Poverty is a result of systemic failures and is highly driven by inequalities and other forms of marginalisation and discrimination. The World Bank reports that income inequality has risen as a result of the pandemic, partly wiping out the progress in reducing levels from the last two decades, with early evidence that within-country inequality will hit the poorest and most marginalised the hardest.[8]

2.4.   The projected impact of the COVID-19 pandemic on extreme poverty (SDG 1: No Poverty) will have serious knock-on effects across the SDGs, including but not limited to SDG 2 (Zero Hunger), SDG 3 (Good Health & Well-being), SDG 4 (Quality Education), SDG 5 (Gender Equality), SDG 8 (Decent Work & Economic Growth), SDG 10 (Reduced Inequalities) and SDG 16 (Peace, Justice & Strong Institutions). Likewise, the lack of progress across the SDGs as a whole will further exacerbate current trends on extreme poverty. 

3. The role of Official Development Assistance (ODA)

3.1.   The International Development Act (2002), as amended by The Transfer of Functions (International Development) Order 2017 and the International Development (Gender Equality) Act 2014, outline the legal basis for ODA. These are: that the Secretary of State or Treasury are satisfied that it will contribute towards the reduction in poverty; that it will reduce inequality between persons of different genders; and that it will further sustainable development or improving welfare of people living in countries outside the UK.[9] UK ODA is not intended to simply progress development per se, but to meet specific objectives on extreme poverty, gender equality and sustainable development - these need to be the core of the UK’s international development strategy.

3.2.   The cuts the Government has made to the ODA budget have had a significant impact on the UK’s ability to support the implementation of the SDGs in other countries.[10] In addition to cutting the aid budget, the UK has also made the political decision to include Covid-19 vaccine donations, debt relief and recycled SDRs (special drawing rights) within the 0.5% aid budget. While these are welcome initiatives, counting them within the 0.5% aid budgets means there are fewer resources available for critical interventions to fight poverty.

3.3.   ODA continues to play an important role in supporting low- and middle-income countries to implement the SDGs. The new International Development Strategy offers the Government an opportunity to articulate this and outline how the UK, as a significant donor, can support the process of SDG implementation in line with SDG target 17.2.

3.4.   UK ODA reporting is currently not aligned to the SDGs, and so it is not currently possible to assess the contribution of UK ODA to SDG implementation. The OECD Development Assistance Committee (DAC) Creditor Reporting System (CRS) SDG field offers the opportunity to align programme reporting with SDGs, and the Foreign, Commonwealth and Development Office (FCDO) should make this mandatory across all ODA programmes, and use this data in reporting.[11]

3.5.   The FCDO should use its international influence to promote justice in the wake of the global pandemic, including measures that will enable poorer countries to mobilise more domestic resources for public expenditures and allow them policy space to finance measures that are effective in tackling extreme poverty, reducing inequalities, and promoting sustainable development. It should do this by supporting comprehensive debt cancellation, tax reform through a UN process, reform in World Bank and IMF policies and their approaches to crisis and recovery and taking action to accelerate progress towards universal health coverage and universal social protection.[12]

3.6.   Recommendations

• The upcoming International Development Strategy should be clearly aligned to the SDGs and support the process of SDG implementation in low- and middle-income countries.
• The UK should return to spending 0.7% GNI on ODA.
• The UK should report the contribution of its ODA to achieving the SDGs through use of the OECD DAC CRS SDG field.

4. UK policy on the SDGs

4.1.   The Government presented its first Voluntary National Review (VNR) of the SDGs to the UN High-Level Political Forum (HLPF) in July 2019. Despite the UK being at the forefront of the negotiation of the SDGs, we are yet to see any meaningful progress on the commitments made in 2019 or the recommendations made by the IDC in 2019[13], and the UK Government has not committed to producing a second VNR.

4.2.   To date, 177 countries have now presented VNRs to the UN, with the vast majority of countries report on the SDGs every 3-4 years. In 2021 alone, out of 42 countries, 24 countries presented a VNR for the second time, and 10 presented a VNR for the third time. The majority of G7 nations have now either presented or have committed to presenting a second VNR by 2023.[14] Out of those countries who also presented a VNR at the 2019 HLPF, 15 have either presented or committed to presenting a second.[15] While a recent ‘lessons learned’ report on VNRs praised the UK for its collaboration with the Office for National Statistics (ONS)[16] and support for GAVI, it is clear that many other countries have shown more leadership and high-level commitment to regular reporting.

4.3.   Recommendation

• The UK government should commit to publishing a second VNR in 2023, providing an update and action plan for the delivery of commitments made in 2019, and commit to a regular schedule of reporting and follow-up on progress and challenges using disaggregated data.

5. Leave No One Behind promise

5.1.   In 2019 the UK made its promise to Leave No One Behind, committing the Government to ‘prioritise the interests of the world’s most vulnerable and disadvantaged people; the poorest of the poor and those people who are most excluded and at risk of violence and discrimination.’[17] The VNR said that in line with ‘the promise to Leave No One Behind, between 0.15- 0.2% of GNI is targeted at Least Developed Countries. Relevant Ministerial and official groups, including those overseeing Official Development Assistance, will continue to support the implementation of the Goals through the UK’s international work’.[18] However, since the VNR in 2019, we have seen a concerning lack of attention paid to delivering on the promise to leave no one behind.

5.2.   In its work to promote women’s economic empowerment, FCDO could do more to address underlying structural inequalities which are a barrier to inclusive economic development and decent work for women, including the unequal distribution of unpaid care and domestic work.  ODA directed to women’s economic empowerment should support action for normative change, for example, to end gender discrimination and sexual harassment in the workplace, as well as macroeconomic measures that respond to the needs of women and girls, such fiscal policies for better social protection and public services such health and childcare.  As we have seen, underinvestment in health services and structural gender inequalities have combined in the pandemic to increase the burdens of unpaid care and domestic work for women and girls, in many cases setting back progress towards women’s economic empowerment, girls’ education, and inequality reduction overall.

5.3.   Previously DFID, mostly through the Inclusive Societies team, sought to bring clarity to UK’s development programming on the Pledge to Leave No One Behind by publishing a number of Inclusion Strategies, such as the Disability Inclusion Strategy[19] and the Strategic Vision for Gender Equality.[20] However, it is not clear how well these strategies have increased inclusion across the whole of the portfolio, nor how well these have been mainstreamed across programming. It is also unclear how the FCDO has since sought to ensure that all programme design includes an analysis of the impact on at-risk groups, through a leave no one behind lens, across the SDGs, and involves people affected in the design.

5.4.   Recommendation

• The government should recommit to the Leave No One Behind promise and use the opportunity of the International Development Strategy to outline how they will implement policies and programmes in line with the promise.

6. Data to empower change

6.1.   Data availability remains a serious constraint holding back progress on ending extreme poverty, reducing inequalities and promoting sustainable development. The 2019 VNR recognised the important role the UK plays in supporting other ‘countries in strengthening and modernising their national statistical systems to enable them to gather and analyse good quality disaggregated data’, as well as pressing for a coherent and aligned global monitoring system.[21] 

6.2.   Extreme poverty, especially where discrimination and social exclusion are factors, is often invisible. People who face discrimination on the basis of characteristics such as migration status, race, caste, ethnicity, gender identity and sexual orientation and expression may be isolated or marginalised, denied rights and recognition, be unable to access employment or social protection or be prevented from claiming entitlements, a situation which may further increase their invisibility to policymakers and contribute to a cycle of poverty and exclusion.[22] Intersectionality needs to be better understood and addressed, including through gathering more inclusive data, to reveal the multidimensional nature of poverty (which should not be measured by income alone).[23] While the ONS has published its Action Plan to implement the Inclusive Data Charter, the UK government, as one of the Charter’s earliest champions, has yet to publish a whole-of-government action plan with clear guidelines of how it will monitor progress on the Charter.[24] The 2019 VNR recognised the importance of data and committed the UK, amongst other things, to: promoting inclusive, disaggregated data; innovative data collection; and the use of non-official data.[25] Yet, the UK Government does not publish data on cross-Government ODA spending on the SDGs, appropriately disaggregated.

6.3.   Recommendations

• The UK government should outline a comprehensive action plan on the Inclusive Data Charter with measurable targets.
• The UK should articulate how it will support countries report meaningfully on the Pledge to Leave No One Behind.
• The FCDO should outline how it is supporting other countries to strengthen capacity to collect, analyse and modernise their national statistical systems to enable them to gather and analyse good quality disaggregated data.
• The FCDO should publish cross-Government ODA spending on the SDGs, appropriately disaggregated.

7. Domestic and international policy coherence

7.1.   SDG target 17.14, to ‘enhance policy coherence for sustainable development’, is recognised as essential to the delivery of the whole framework –sustainable development is interlinked, and without a coherent approach, opportunities are missed, and other areas of implementation are undermined. This is critical for areas where UK domestic policy influence the implementation of the SDGs in other countries, especially where these policies could impact on extreme poverty – such as trade or defence policy. The VNR said that ‘The UK government’s planning and performance framework will continue to be refined to increase the level of detail on reporting of government activity in relation to the Goals’.[26]

7.2.   The new Outcome Delivery Plans (ODPs) improve the level of detail with regards to SDG reporting, however, the public plans are very top-level and only provided information on which SDG targets were being implemented by the Government’s priority outcomes. We found that the plans were also very inconsistent, with some departments not mapping any SDG targets at all, and a total of 58 targets have not been addressed at all in the ODPs. There is also a lack of critical analysis about how the ODPs impact on one another, including on policy coherence for development in other countries.

7.3.   The UK is playing an important role globally on many aspects of the 2030 Agenda, including around biodiversity (such as the Dasgupta Review[27]) and climate leadership (as host of COP26)[28]. Given the vital importance of respecting planetary boundaries for reducing poverty, there is the opportunity for the UK to do more to ensure whole-government co-ordination on this agenda and commitment to the SDGs. It is important that all government departments take ownership of their role in sustainable development in the UK and internationally. 

7.4.   Recommendations

• The government should further increase the level of detail and encourage departments to follow the good practice of departments such as the Department for Environment, Food and Rural Affairs (DEFRA) which have mapped their projects and programmes to SDG targets.
• The government should outline a process to engage with stakeholders to evaluate and identify gaps in the ODPs, adapt policies, and target areas where further progress is needed, to ensure no one is left behind.
• The government should conduct and publish analysis of UK policy on sustainable development in other countries, especially in relation to tackling extreme poverty.
• In light of the approach outlined in the Integrated Review, the government should outline practical steps to link diplomatic, development, and defence objectives, particularly in achieving SDG 16 and in fragile and conflict-affected states.

8. Conclusion

8.1.   While the COVID-19 pandemic has reversed the hard-won gains in eradicating poverty around the world, it has also exposed and exacerbated systemic frailties and inequalities within the international order that predated it, and the urgent need for global cooperation and solidarity. The SDGs within the 2030 Agenda remain the most comprehensive international agreement to date to address the multiple economic, social and environmental challenges facing the global community. 

8.2.   If the UK is to succeed in its role in fighting extreme poverty, it needs, first and foremost, an international development policy framed around the SDGs and anchored in the central principle within the 2030 Agenda to Leave No One Behind. This will require a focus to ensure that ODA is directed towards the countries where poverty levels are concentrated, but also towards specific segments of the population that are vulnerable and most impacted by inequality and discrimination. Emerging evidence from sources such as the World Bank indicate that inequality will not only rise around the world, but that new patterns of inequality, for example, how income inequality intersects with climate change, conflict and other factors, need to be understood and the UK’s international development policy needs to reflect these complexities. 

8.3.   A strong international development policy centred around the SDGs will also promote much-needed policy coherence within FCDO’s programming, ensuring that its development priorities on important issues such as gender equality, climate adaptation and mitigation, and social protection are not undermined by its foreign, trade and defence policies. In addition, it is important the FCDO explore how it can make most use of the international development budget to pursue long-term, sustainable and inclusive programmes around the world that unlock progress across the SDGs and break programmatic silos. As highlighted above, extreme poverty is often a result of systemic failures and a lack of progress across other SDGs will ultimately adversely impact the UK’s contribution to SDG 1. 

8.4.   The means of implementation and governance structures are crucial to ensure a cross-government approach to SDG implementation. The SDGs are a universal agenda and require, notwithstanding the context of the UK as a significant donor country, a focus on both domestic and international delivery. In Bond’s 2019 report, the UK’s Global Contribution to the SDGs, we highlight the need for a whole-of-government institutional set up with clear channels of accountability and communication to deliver on the SDGs[29]. Leadership on the SDGs around the world now most commonly resides with the heads of states (Progressing 6th Edition forthcoming 2022), with other countries setting up committees, councils or specialised offices dedicated to tracking progress and implementing the SDGs. Finally, this needs to be supported by meaningful and robust multi-stakeholder engagement and participation, involving both domestic and international partners from civil society, academic, private sector and citizens. 

8.5.   As we reach the mid-point deadline to meet the SDGs, these recommendations are necessary not only to ensure that the UK is effective in its approach to eradicating extreme poverty, but to deliver on its promise of sustainable development both domestically as well as internationally.