“Why Two in Five Australian Aid Investments are Rated Unsatisfactory on Completion: Investigating Trends in Australian Aid Performance Assessments”

According to a recent report by Devpol, two in five Australian aid investments managed by DFAT are rated unsatisfactory upon completion. DFAT rates ongoing and completed investments on a scale of 1 to 6, with scores of 4 or higher regarded as satisfactory. However, in 2021 and 2022, only three in five completed investments were rated satisfactory or better on both effectiveness and efficiency, compared to nine in ten ongoing investments. The report attributes this trend to a shift in 2019 towards a more independent rating system for completed investments, which has reduced the “optimism bias” present in self-awarded ratings. The report recommends that DFAT takes their own performance assessments more seriously, guards against grade inflation, and establishes a communication effort to explain unsatisfactory projects. The report also advocates for the reintroduction of the Office of Development Effectiveness and the Independent Evaluation Committee as DFAT’s aid effectiveness champion and watchdog. Download the full report for more details and recommendations.