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According to the Commitment
to Development Index 2007 (CDI) published by the Center
for Global Development, Australia
ranked fifth overall in 2007 among 21 of the world’s richest
countries:
Australia’s
score is driven by its leading role in peacekeeping efforts,
low trade barriers against developing country exports, and relatively
open migration policies. On the negative side, Australia
gives only a small share of its income in foreign aid [rank:
thirteenth], [and] has the highest greenhouse gas emissions
rate per person [rank: nineteenth].
In terms of volume of aid, the CDI ranks
Australia thirteenth.
Australia’s
Official Development Assistance (ODA) is estimated to amount
to $3.2 billion in 2007–08. It represents a real increase
of 3 per cent over the expected outcome of about $3 billion
in 2006–07. The ratio of Australia’s
ODA to gross national income (ODA/GNI) is estimated to remain
at 0.3 per cent, the same as for the previous year.
To put the 2007–08 aid budget into context,
measures arising from two Howard Government decisions are of
significance:
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In September 2005, then Prime Minister John
Howard announced that Australia’s
ODA would double to about $4 billion a year by 2010.
As a result, ODA is expected to increase to $3.5 billion
in 2008–09, $3.8 billion in 2009–10 and $4.3 billion
in 2010–11.
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In April 2006, then Minister for Foreign Affairs Alexander
Downer launched the aid White Paper, Australian
Aid: Promoting Growth and Stability. The White Paper
provides the strategic framework that will guide the direction
of Australia’s
aid program over the next ten years.
As part of the process of implementing the
White Paper, the aid program has now been structured around
four key themes:
- accelerating economic growth
- fostering functioning and effective states
- investing in people, and
- promoting regional stability and cooperation.
An Office of Development Effectiveness (ODE)
was established in 2006–07 to monitor the quality and effectiveness
of the aid program, and an enhanced performance effectiveness
framework was developed. This was trialled across seven countries
(Papua New Guinea,
Indonesia, Solomon
Islands, Vietnam,
the Philippines, Vanuatu
and Fiji), which represent
about two-thirds of all Australia’s
aid allocated by country. A refined version of the effectiveness
framework is being rolled out across the aid program in 2007–08.
The ODE is expected to produce an Annual
Review of Development Effectiveness (ARDE). The first ARDE was
scheduled to be released in late 2007, but was delayed because
of the federal election.
During 2006–07, AusAID also began a three-year
program to revise all country and regional strategies. These
are expected to provide a better basis for assessing the impact
of aid efforts.
In February 2007, AusAID 2010—Director
General’s blueprint was launched. This document builds on
the directions set out in the White Paper and provides an indication
of how AusAID will deliver an effective and increased aid program
by 2010.
The Howard Government undertook to provide
$22.6 million over four years (2007–10) for the implementation
of issues arising from the White Paper.
Besides providing forward estimates for the
overall aid budget up to 2010–11, the 2007–08 aid budget gives,
for the first time, details of future outlays on new multi-year
initiatives. These include:
- Infrastructure for Growth: $505.8 million over four years.
- Better Governance and Leadership: $41 million over two
years.
- Performance Initiatives to promote improved reform: $115.6
million over two years.
- Delivering Better Health: $585.2 million over four years.
- Delivering Better Education: $540.3 million over four years.
- Enhanced Australian Emergency and Humanitarian Response
Capacity: $93.2 million over four years.
- Global Initiative on Forests and Climate: $164.4 million
over five years.
New initiatives for 2007–08 include:
- Climate Change Partnerships Initiative in the Asia-Pacific:
$32.5 million.
- Anti-Corruption for Development to strengthen oversight
institutions: $16.7 million in 2007–08.
The incoming Rudd Government has committed
itself to increase the aid budget to 0.5 per cent of gross
national income by 2015. The Department of Finance and Administration
has estimated the cost at $6.2 billion between 2011 and
2015, making it the new government’s most
expensive pledge after the proposed tax cuts.
Documentation
Minister for Foreign Affairs Alexander Downer, Australia’s
Overseas Aid Program 2007–08, Budget statement, 8 May
2007.
Australian Agency for International Development, Annual report
2006–07, AusAID, Canberra, 2007.
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