In 2006 the UK Department for International Development (DFID) published a White Paper on International Development, Eliminating world poverty: making governance work for the poor,
which set out UK government plans on global poverty elimination through 2011.
The report focused on what FAN members know from direct experience – that governance (the capability, accountability and responsiveness of the state)* is a key component of (or obstacle to) poverty reduction.
The report recognized that effective, well governed states protect people's rights and provide services and further articulated that such governance is not merely about the state alone, it includes the engagement between governments, civil society organizations and service providers. Building such governing relationships, the report concludes, takes time and has to come from within countries.
The report led DFID to make an innovative investment of £130 million over five years with their new initiative - the Governance and Transparency Fund (GTF).
Nearly 40 NGOs and networks (including FAN and WaterAid) working in various development and advocacy areas will share this funding. The most exciting innovation of GTF is that 85% of the funding is required to go directly to local partners in developing countries.