At a jointly hosted Global Economic Governance Programme - Blavatnik School of Government seminar on 1 February 2013, Sir Tim Lankester gave a fascinating account of the Pergau dam affair, the most controversial project in 50 years of British aid. Fallout from the Pergau scandal led to an unprecedented overhaul of British foreign aid. Sir Tim, Permanent Secretary of Britain’s aid agency at the time of the Pergau project, had a ringside seat. With remarkable honesty and humility, he shared personal and academic reflections about the project and how the personalities involved shaped the affair. He drew lessons and candidly discussed the broader questions about whistle-blowing and accountability raised by the affair.
Professor John Toye and Sir Ivor Crewe, his discussants, both complimented Sir Tim for a dispassionate, balanced, and detailed account about a very bad piece of government. Professor Toye noted that in his work on the Pergau affair for the National Audit Office, it was clear that firms had been ruthless in their lobbying. Regulatory capture is still a serious concern today; transparency and limits on the ‘revolving door’ between the civil service and industry are crucial.
Sir Ivor distinguished policy failure from bad governance, and argued that Pergau was certainly bad governance, but was it a policy failure? Not entirely. It was a failure for the ODA and possibly for the Foreign and Commonwealth Office. It was not, however, a failure for the Defence Secretary or the Prime Minister. For Sir Ivor, it was the steps taken to limit the damage – or limit the appearance of wrongdoing – that are most troubling, as they illuminate how easily the culture of a ministry can lead ministers and civil servants to become too cavalier. Former senior officials from the ODA and the Department for International Development were in the audience and contributed to a lively question and answer period on civil service, foreign aid, and how best to protect against ‘regulatory capture’ and cavalier ‘culture’ in a ministry.
For further information, visit the GEG website.
Sir Tim Lankester is former President of Corpus Christi College and former Permanent Secretary of the Overseas Development Administration (now the Department for International Development). He is the author of 'The Politics and Economics of Britain’s Foreign Aid: The Pergau Dam Affair'. Sir Ivor Crewe is Master of University College. Professor John Toye is Chair of the Advisory Council in the Department of International Development.
