The way the UK handles international development took a big turn in 2020 when the Department for International Development (DFID) and the Foreign & Commonwealth Office (FCO) merged to become the Foreign, Commonwealth & Development Office (FCDO). At first glance, the merging of DFID and FCO may seem like a simple rebranding exercise. However, it's much more than that. The two departments had distinct roles and approaches to international development - one focusing on poverty alleviation and humanitarian aid, while the other focused on promoting Britain's geopolitical and trade goals. For my USAID stans, think about the potential implications of USAID merging with the State Department. This big change is really shaking things up for folks who work in global dev, making it super important to understand what's different and what's stayed the same.
A lot of US-based international NGOs are really keeping an eye on the FCDO, seeing it as a cool opportunity to mix up where they get their funding from. INGOs get that working with the FCDO's goals could really open up their funding options and amp up their impact. But be wary - there is no such thing as jumping on a bandwagon when it comes to competitive procurement in sustainable development and humanitarian aid. Business development staff - especially our USAID stans - need to understand how bidding on FCDO procurements is different than it would be with our OG bae.
We're breaking it all down for you today with the top five must-know factors about the FCDO that'll not only demystify its workings but also prepare you for a nuanced understanding of international development in the UK.
1. The FCDO's Fluid Geopolitical Influence
As we said - the merger between DFID and FCO is akin to the fusion of USAID and the State Department, yet with its own distinctive British accent. This means that the FCDO's approach to international development is now influenced by both humanitarian and diplomatic priorities. While this may seem like a win-win situation, it also brings about complexities in decision-making and resource allocation. The FCDO will have to balance between addressing immediate needs of vulnerable populations and pursuing long-term strategic goals for Britain.
The political climate has a direct impact on where and how the FCDO directs its international development efforts. The so-called "Daily Mail Test" exemplifies how political ideologies can shape foreign aid decisions. This test essentially asks whether the average British taxpayer would support how the UK's aid budget is being spent, based on media coverage and public opinion. Therefore, staying updated on current events and understanding political dynamics is crucial for any organization or individual seeking to work with the FCDO.
The White Paper of November 20, 2023, provides an indication that FCDO may be evolving further in it's strategic and funding directions. Some are lauding this as a return to poverty alleviation and focus on the least developed countries (LDCs). But critics are still skeptical that FCDO can main simultaneous attention on broader national interests as well as humanitarian aims.
2. The Intersection of Aid and Trade
After all that we've said about FCDO being a heavily scrutinized office, emmeshed in the UK's global priorities, it may come as a surprise that achieving geopolitical goals isn't as much of a focus as trade is for FCDO! While we see geopolitical priorities driving aspects of USAID investments (I mean, do we really think that pouring $450 million into Central America was purely altruism? Even USAID says it was aimed at addressing root causes of migration, a highly political issue.), FCDO's approach is often more tied to trade strategy and national economic interests.
Does this mean that aid isn't genuinely about poverty alleviation, but is rather a tool for global influence and economic gain? Not necessarily. Critics are (rightfully) concerned that a focus on national interests will lead to greater investment in middle income countries, leaving humanitarian aid and development assistance for LDCs behind. This close association necessitates a comprehensive awareness of how development investments play into broader trade negotiations and post-Brexit economic assertions, with international aid often poised as a forerunner to trade relationships or market entry.
3. Strategy Driven by the CDPS
Did you just read CDPS and immediately think "oh, that must be like a CDCS?" Well, thank you for illustrating why we believe that USAID proposal pros need to not make assumptions! While USAID's Country Development Cooperation Strategies are definitely the closest parallel to the UK's Country Development Partnership Summary (CDPS), they are not the same beast at all.
Y'all will know that the CDCS is a long-term, typically five year, strategy document which lays out high level sectoral and geographic priorities of USAID. Understanding the CDCS is important to grasp USAID priorities and how to align your proposal with USAID's larger objectives. You'll usually have to write about how your strategy aligns to the CDCS in the proposal itself. How does this line up with the UK's CDPS?
For one, the CDPS operates on a swifter timescale. This means that you may not be able to capture high level priorities, but you will find a central repository for information on bilateral aid allocations, sector spending, program details, and the allocation forecast. The CDPS will identify key country-level development issues and opportunities which will inform programming decisions. All that being said, just like with the CDCS, ensuring close alignment with the CDPS of the countries of interest is a tactical maneuver for securing funding and creating impactful projects that resonate with the UK's development agenda, providing a solid roadmap for future interventions.
4. The Strategic Art of Creating Business Cases
Unless you are already a USAID implementing partner, the early stages of their program design cycle are often a bit shrouded in mystery. We know that there are briefs written and approvals made and sometimes Congress gets involved and things go sideways. But FCDO? The process welcomes more involvement. The internal strategy document that FCDO staff prepare to seek internal approval for global development investments is called the 'business case.'
Somewhat akin to an internal concept note or a request for proposal, the 'business case' underpins the FCDO's investment decisions in a specific set of interventions. It functions as a strategic document, elaborating on the program's necessity, the relevance to UK's broad strategy, and the economic merit, including a cost-benefit analysis. Business cases also offer transparency on procurement routes (often called "route to market"), shedding light on how stakeholders can engage with the bidding process.
As a development practitioner, understanding what FCDO needs to create a compelling business case can offer opportunities to provide valuable input, deliver feedback at strategic moments, and understand where FCDO may be in the procurement timeline.
5. Early Market Engagement with FCDO
The FCDO's approach to stakeholder engagement is markedly different from that of USAID, emphasizing an open-door policy that fosters early dialogue between the office and potential project partners. This 'early market engagement' phase, often preceding the formal approval of a business case, serves as an opportunity for stakeholders to offer insights, shape project designs, and ascertain FCDO's intent and expectations. As such, it can be a valuable space for development practitioners to engage in meaningful dialogue and contribute their expertise.
During this stage, the FCDO may hold information sessions or market engagement events to provide context and details on upcoming projects. These events may include presentations from FCDO staff, as well as opportunities for networking and one-on-one meetings. It is essential for interested stakeholders to
For professionals accustomed to the tight lipped culture necessitated by USAID's procurement regulations, FCDO's collaborative approach to pre-solicitation collaboration can feel a bit alien. Like you might be breaking the rules? But no, that's just how it is!
Understanding the key differences between the FCDO and USAID is more than just checking a box; it's crucial for everyone involved in your organization's efforts to diversify international development funding and bid on competitive procurements. Learning everything you can will helps avoid misunderstandings and encourages a forward-thinking and creative way to develop compelling partnerships and proposals to make lasting changes worldwide. Whether you're after FCDO funding, planning development partnerships, or just keeping up with global development trends, these insights are your guide to confidently and smartly navigating the FCDO world.
To further support your journey into the realm of FCDO engagements and ensure your organization is well-equipped to thrive within this unique collaborative environment, we highly encourage you to download our comprehensive Early Market Engagement Meeting Guide. This guide is designed to provide you with deeper insights, strategies, and actionable steps to maximize your engagement opportunities and foster impactful partnerships. Our dedicated team has distilled essential tips and practices to help you confidently approach FCDO opportunities.
Download the Early Market Engagement Guide today and move closer to transforming your international development aspirations into reality.
