An independent review of Irish Aid's operations in Mozambique has recommended a provisional increase in "budget support" to the Mozambique government, despite admitting that "corruption" is endemic in the country.
The report, which has been welcomed by the Minister of State for Overseas Development, Michael Kitt, says Irish Aid, the overseas development arm of the Department of Foreign Affairs, should continue its engagement with Mozambique, but should strengthen its monitoring, evaluation and lesson-learning capacity. The report notes that levels of corruption in the country "remain high".
Nonetheless, it recommends that the share of Irish Aid support in the form of "general budget support" to the government be increased - so long as progress is made on a specific set of performance indicators.
Despite this, Mr Kitt said he did not intend to increase the level of budget support to Mozambique, as he believed the current level was "sufficient".
"I believe that, in general, we must use a mix of channels, including budget support, but that we should also continue to work with local government, non-governmental organisations and missionaries", Mr Kitt said.
John O'Shea, director of the aid agency Goal, who has been a fierce critic of government-to-government funding, said it was "positive" that Mr Kitt was not signalling an increase in such funding. However, he renewed his call for an end to budget support, which he claimed was tantamount to providing corrupt regimes with a "blank cheque".
"Maybe at long last the Irish Government is becoming aware that corruption is the single biggest impediment to delivery of aid," he said. "But what Mr Kitt is still saying here is that he wants to hedge his bets."
The evaluation of the Mozambique Country Programmes between 2001 and 2006 says Irish Aid should consider reducing the number of sectors in which it is involved in the country. Ireland has increased its bilateral aid budget to Mozambique from €20 million in 2001 to €31 million in 2005, with other Irish Aid funding to the country up from €2.4 million in 2003 to €8 million in 2005.