Page Banner - Budget 2000-2001
Home | Search | Site Map | Help

Previous PageTable Of ContentsNext Page

Australia's Overseas Aid Program 2000-01

Horizontal Line

Chapter Four: Asia and Africa

East Asia

Regional development indicators8

Country

GNP per capita
($A)

Access to safe water
(% of population)

Life expectancy (years)

Adult literacy
(% of population)

         

Indonesia

1,083

65

65

85

East Timor

514

<50

57

47

Viet Nam

525

38

68

83

Philippines

1,672

83

68

95

China

1,194

83

70

83

Mongolia

637

54

66

83

Cambodia

446

13

54

-

Thailand

3,502

89

69

95

Laos

525

51

53

59

Burma

-

-

-

-

         

Regional Overview

In the aftermath of the economic crisis of the late 1990s, regional programs are addressing immediate needs and underpinning long-term recovery in East Asia. While economic and social conditions have significantly improved in most affected countries, much needs to be done to strengthen the resilience of the region to future shocks and to reduce the vulnerability of poor people. This is being achieved through a focus on strengthening economic governance and social protection.

Regional Program

Australia's regional program activities target high priority development needs that require a regional response. In addition to governance activities, Australia will provide assistance in the key transboundary areas of health, environment and the movement of people.

Australia's strategy for assisting regional development is strongly based on joint work with ASEAN and APEC countries in the crucial areas of increased trade and investment. Australia is working with partner governments and regional organisations to help countries manage the impacts of globalisation and to establish a firmer basis for poverty-reducing growth through trade.

The Mekong Basin Sub-regional Program (MBSRP) addresses the shared development needs of Cambodia, Laos, Thailand and Viet Nam. Activities target natural resource management and capacity building complementary to the World Bank, the IFC, the ADB, the Mekong River Commission and the ASEAN Mekong Basin Cooperation Initiative. The program also includes a small grants-based program to address HIV/AIDS.

Box 7: Responding to the East Asian Financial Crisis

Despite welcome signs of economic recovery in the region, East Asia still faces major economic reform challenges and many countries in the region remain vulnerable to external shocks. The social impacts of the crisis are still unfolding and millions of people do not have access to basic services like health and education.

The allocation of $6 million to the Asia Recovery and Reform Fund will assist countries in the region to undertake economic restructuring in the immediate post-crisis period, with a view to achieving sustained recovery and stronger social protection systems. This will reduce the risk of future crises and help ensure long-term economic and social gains from future development.

Bilateral Programs

Diagram 13: Estimated total aid flows to East Asia by country

Diagram 13: Estimated total aid flows to East Asia by country

Indonesia

Indonesia has started out on the path to recovery from the East Asian financial crisis. Implementing the new Government's extensive reform program is a major challenge and will require continued commitment by Indonesia and support from the international community. Australia remains committed to assisting Indonesia meet this challenge through expanded aid flows that remain more than 15 per cent higher than pre-crisis levels.

Australia will work with Indonesia to help restore welfare gains eroded during the crisis, strengthen poverty alleviation and implement reforms needed to sustain growth and development. New activities in health, water and sanitation will be developed to deliver direct poverty alleviation outcomes for vulnerable groups, especially women and children. These activities will include efforts to improve public health management at central and regional levels, expand health education services, develop community-managed water supply and sanitation facilities, and extend work in HIV/AIDS and STD prevention. A new basic education project will also be developed to improve education opportunities for children. It will complement Australia's support for efforts during the crisis to help children to stay in school.

Australia will continue to expand its program of activities in support of economic and civil reform in Indonesia, especially through implementation of a new medium-term governance strategy developed in 1999-2000. This program will support the new Indonesian Government's broad-ranging economic and political reform agenda. Core areas will include economic and financial management, legal reform, improved local governance, gender equity and development of civil society. Reform-related activities will also include institutional strengthening to assist Indonesia to implement its plans to decentralise fiscal responsibility and delivery of public services as well as enhance border control capabilities. A program which provides a total of approximately 800 tertiary education scholarships per year will be maintained to help build Indonesia's pool of professional expertise and skills. Australia will also assist the relief and reconciliation work in areas affected by civil unrest.

Box 8: Indonesia after the crisis-assisting recovery and reform

  • Now that recovery from the regional financial crisis is underway, Australia's focus is turning to the tasks of assisting Indonesia to address legacies of the crisis and to build stronger economic and social frameworks.

  • To help Indonesia restore its strong record of poverty alleviation, Australia will implement a range of major programs to extend health and education services. This will include implementation of large-scale welfare-protection activities, such as a $20 million Women's Health and Family Welfare project and a major international collaborative project to deliver water supply and sanitation services to low-income communities.

  • Economic strengthening activities will include increased technical assistance to supplement technical skills in key Indonesian agencies and facilitate implementation of reforms. In particular, an expanded Technical Assistance Management Facility will be developed to coordinate provision of Australian expertise to Indonesian government bodies involved in key reform processes. Australia will engage in greater collaboration with multilateral institutions to maximise impacts and improve coordination of international reform-related assistance.

  • Australia will also give emphasis to measures that help strengthen Indonesia's legal system to encourage efficient and fair application of the rule of law in commercial and public life.

East Timor

The East Timorese are one of the world's poorest people. Violence following the August 1999 ballot left most of the territory's infrastructure destroyed and nearly three quarters of the population displaced. A massive international humanitarian relief effort is addressing immediate needs in areas such as food, health and shelter, and has helped the return of many displaced people.

As the focus moves from relief to reconstruction and development, the challenges facing East Timor remain enormous. Building the capacity of the East Timorese to govern a stable and democratic independent East Timor will underpin the aid program. Bilateral assistance in 2000-01 will complement the UN Transitional Administration (UNTAET) operations and the programs of other aid donors by focusing on:

Box 9: Reconstruction and development of East Timor

With security now established and the need for emergency relief abating, East Timor is entering a phase of construction and rebuilding of a viable nation. Consistent with Australia's capacity to assist and East Timor's development needs, the Australian Government has committed $150 million over the next 4 years towards the reconstruction of East Timor. This funding will be phased as follows:

  • $40 million in 2000-01 to assist with international reconstruction efforts and to build an ongoing bilateral program with East Timor

  • $40 million in 2001-02, $35 million in 2002-03, and $35 million in 2003-04 for a continuing program of assistance.

Viet Nam

Viet Nam has made significant progress towards poverty alleviation in recent years. Its ability to maintain and increase these achievements will depend on strengthening economic growth which in turn will depend on a deeper commitment to economic policy, management reforms and other key governance issues.

The Australian aid program to Viet Nam has three key strategies: improve the capacity for medium to long-term development through human resource development; improve the livelihoods of the poor; and support the Government of Viet Nam in its program of reform. Australia's assistance is concentrated in four areas: education and training, rural development, health and governance.

In 2000-01 assistance will focus on the design and commencement of a new rural development program and new governance activities in the areas of economic and financial management, public sector reform and legal and judicial development.

Box 10: Rural development in Viet Nam

A feature of Australia's assistance to Viet Nam in 2000-01 is the design and commencement of a new rural development program estimated at $95 million over four years. This program will include:

  • projects focused on improving the situation of water supply and sanitation in the Mekong Delta

  • improving management of water resources at the national level and in the Mekong Delta

  • improving rural infrastructure and services in poor provinces of Central Viet Nam

  • increasing Viet Nam's capacity for agricultural development.

Philippines

Australia's assistance to the Philippines is focused on the southern Philippines, particularly Mindanao, where rural poverty is pervasive and where about one third of the nation's rural poor live. Australian aid is supporting Philippine efforts to sustain the momentum of reform and manage the social effects of the East Asian financial crisis through assistance in governance and to social safety net programs. Australia's aid targets the four key areas of rural incomes, the environment, education and health to improve the living standards of men, women and children living in poverty in the Philippines.

In 2000-01 the aid program will focus on consolidating the implementation of the current five-year Country Program Strategy through the development of new assistance programs for rural incomes, the environment and health. In education, Australia will continue to support Philippine efforts to improve the quality and relevance of education, through the development of a new basic education project for Mindanao.

Box 11: Helping vulnerable groups in the Philippines

The $30 million Philippines Australia Vulnerable Groups Facility began in November 1999 and is helping to expand the provision of essential social services to the poor through providing funding towards well-targeted and successful Philippine Government programs.

For example, the Street and Urban Working Children Project ($9.5 million over three years) is assisting street and urban working children to obtain rice to feed themselves and their families and also to access education materials and school services. An estimated 40,000 children will be assisted through this program.

The Integrated Delivery of Social Services Program ($15.5 million over three years) is helping over 500 poor village districts, or barangays, to fund local community development projects driven by grassroots initiatives. These initiatives include small projects such as a community footbridge for local transport, a supplementary feeding program for malnourished children and local micro-enterprise activities.

China

Australia's aid to China targets poverty alleviation and sustainable development particularly in the poorer central and western provinces. Australian aid focuses on four key sectors: governance, health, education, and the broad area of natural resource management and rural development. Governance is a particular priority with the aim of improving public policy and supporting China's reforms and transition to a market economy.

Key activities include:

Australia will continue to help China manage chronic environmental problems associated with water and land degradation. New activities will address flood control and management, irrigation and water supply, reforestation and environmental rehabilitation.

Box 12: Helping to halt environmental degradation in Inner Mongolia

Alxa League is located in the western part of the Inner Mongolia Autonomous Region. Environmental degradation is in an advanced state because of long-standing droughts, destruction of grasslands, and desertification. Approximately 30 per cent of the total area is desert, and desertification advances at some 20 metres per year, destroying farmlands.

The Alxa Environmental Rehabilitation project will improve living standards of the rural poor, both men and women, in desert fringe areas where poverty leads to over-exploitation of natural resources. The aim is to halt desertification, and eventually restore ecological balance to degraded land areas through improved environmental management measures.

Mongolia

Australia's aid objectives in Mongolia are to strengthen the capacity of local institutions and human resources to deliver long-term sustainable development and poverty reduction. Very high levels of poverty make Mongolia's transition to a market economy difficult.

An example of Australia's aid program in Mongolia is the planned funding for a program of training and technical assistance to the National Statistics Office to improve its capability to evaluate, analyse and disseminate data from the 2000 Census. The production of reliable demographic, health, and other socio-economic indicators will assist the Government of Mongolia to better target health and other services.

Cambodia

Australia's aid program to Cambodia is helping to reduce poverty and support the country's transition towards sustainable development. Australia's aid focuses on improving productivity and profitability in the agriculture sector, meeting basic human development needs, institutional strengthening and support for demining.

Eighty five per cent of Cambodians live in rural areas and most earn their living from agriculture. But agriculture continues to operate at a subsistence level and rural poverty is widespread. Australia's aid will promote economic growth and food security through a major new Agriculture Quality Improvement Project (AQIP) commencing in 2000. This assistance will bring real productivity gains to rural people through help with rice seed production, rice-related post harvest technology and fruit and vegetable marketing.

Several small but high profile governance activities are currently being funded through regional programs. Australia will continue to contribute to the stability of Cambodia through involvement in donor monitoring of the Government of Cambodia's reform agenda and by participating in the donor working group for public administration reform.

Throughout 1999-2000, Australia played an active role in joint donor efforts to reform the Cambodia Mine Action Centre (CMAC). These reforms will enhance CMAC's capacity to address the problem of landmines and unexploded ordinance. Australia will continue to work alongside other donors to help maintain reform momentum in 2000-01.

Thailand

Australia is continuing to help Thailand to recover from the economic and social impacts of the East Asian financial crisis. Australia's assistance focuses on developing good governance, contributing to the rehabilitation of the banking and financial sector, and helping to mitigate the impact of the crisis on the poor.

Over 2000-01 Australia will continue to target key capacity-building needs for better governance and civil society. Australia's support for good governance will include a capacity-building facility, with an allocation of $10 million over 3 years, to provide short-term technical assistance and training. Australia's aid will help to improve the formulation of public policy and delivery of services, and increase accountability and responsiveness. It will also support democratic governance through assistance to the counter corruption agency, parliamentary ombudsman, alternative dispute resolution training, and the electoral commission.

Laos

Reducing poverty and improving the quality of life for the population are the major challenges facing Laos. Australia is helping Laos to meet its basic needs by supporting primary health care, rural development, broader access to education and strategic efforts to strengthen policy reform.

Primary health care projects implemented by Australian non government organisations have been very successful. Australian aid will build on this success to support the development of a sustainable and high quality national health service.

Australia is providing basic education to girls from ethnic minorities in conjunction with the Asian Development Bank. This has received strong local support and been instrumental in the establishment of a Gender and Ethnic Minorities Unit within the Lao Ministry of Education. Australia is supporting Laos' reform agenda, building on previous support in the areas of land tenure policy and Laos' accession to the World Trade Organisation.

Burma

Australia's small program of humanitarian assistance remains targeted to grassroots poverty in Burma, focusing on basic health and HIV/AIDS control. Australian assistance is channeled mainly through Australian NGOs and multilateral organisations (including UN agencies).

In 2000-01 Australia will consider a new round of NGO projects for primary health care and other small scale activities related to poverty reduction and basic human needs. Australian aid will continue to help reintegrate displaced persons returning from refugee camps in Bangladesh.

Australia will encourage the establishment of a national human rights institution in Burma through the initial provision of short-term training in international human rights law and practices to targeted groups of Burmese civil servants. Further activities of this nature may be undertaken if pilot projects are considered successful. Outside Burma, Australia provides humanitarian health, shelter and food assistance to refugees in camps on the Thailand/Burma border, and is part funding a Distance Education Project delivering Community Management and English language courses for Burmese refugees in Thailand.

South Asia

Regional Development Indicators9

Country

GNP per capita
($A)

Access to safe water
(% of population)

Life expectancy (years)

Adult literacy
(% of population)

         

Bangladesh

557

84

61

53

India

685

81

63

52

Sri Lanka

1,290

70

73

91

Nepal

334

59

57

38

Pakistan

764

62

62

41

Maldives

1,958

-

67

96

Bhutan

716

64

66

54

         

Diagram 14: Estimated total aid flows to South Asia by country

Diagram 14: Estimated total aid flows to South Asia by country

Regional Overview of South Asia

South Asia contains nearly 40 per cent of the world's poor and has some of the world's worst social indicators. Productivity is low and the region generates only 1.3 per cent of the world's wealth. South Asia is diverse in terms of size, population concentration, culture, socio-economic conditions and political characteristics.

Regional Strategy

Australia's strategy for aid to South Asia for 1999-2002 concentrates on the needs of vulnerable people in defined geographic areas. The program emphasises the poor, people affected by conflicts and the education of girls. The strategy focuses the program on four priority areas:

Bangladesh

Australia will continue to support Bangladesh's efforts to achieve food security. Support for peace-building activities will continue in the Chittagong Hill Tracts, where there has been a history of internal conflict causing severe hardships for the poorest people. Australian aid will continue to improve access to basic services for vulnerable groups through projects addressing primary and secondary education for girls and the expansion of the Intensive District Education for All Project. Australian aid will also help to mitigate arsenic poisoning in rural water supplies by strengthening local capacity in removal technologies, providing alternative sources of water and improving health and community activities for safe drinking water.

India

In view of the developments in Australia's relationship with India, the Government has decided it is appropriate to lift the suspension of non-humanitarian aid to India, imposed in May 1998 as a result of nuclear testing. Australia will continue assisting India to address its considerable development needs through a targeted program focusing on primary education, basic health care, governance, rural development and environmental management.

Australia will work in partnership with the Indian Government and UNICEF to provide higher quality primary education to over a million vulnerable children in Delhi, Bihar and Maharashtra states. Australia's aid will improve the delivery of water and environmental sanitation to the urban and rural poor, including help with watershed management in the hill states of north west India and Madhya Pradesh.

The new five year $18.5 million India-Australia HIV/AIDS Prevention and Care Project will help combat the spread of HIV/AIDS in India, where the virus has already infected more than four million people.

The India-Australia Training and Capacity Building project will be extended. New activities will address capacity building and governance issues in the urban water and environmental sanitation sector.

Sri Lanka

The ongoing civil conflict in the north of Sri Lanka is a major cause of entrenched poverty. Australian aid is providing support for peace-building activities through the Community Resettlement Program. Australian assistance will help resettled families who have been affected by civil strife, including through a mine action program being implemented by UNDP.

Australia is supporting the capacity of the Sri Lankan Government to deliver services, particularly in environmental management and health. The program also includes a Nutrition Improvement Project in south Sri Lanka which will reduce the incidence of low birth weight babies and combat child and maternal malnutrition.

Nepal

Australian assistance to Nepal seeks to alleviate poverty and address environmental degradation by supporting community management of natural resources. Through the scholarships program, Australia is assisting Nepal tackle its considerable development constraints.

The Community Resource Management Project will continue in 2000-01. This project is increasing literacy, providing access to water and developing community forestry management skills among forest user groups. A Vitamin A project is reducing infant mortality by as much as 30 per cent in some districts.

Pakistan

Australia's program to Pakistan concentrates on basic education for girls and improving the management of environmentally degraded agricultural lands. Access by the poor to education will be increased though the Balochistan Girls' Education Project. The Agro-salinity Project will mitigate the impact of environmental degradation on poor rural communities in the Punjab, using biological solutions to waterlogging. Community implemented reforestation of degraded lands using salt resistant trees and grasses will increase farming returns.

Maldives

Australian assistance to the Maldives aims to alleviate poverty in its isolated outer atolls. Australia's aid is assisting the Government of the Maldives to manage the country's limited environmental resources and deliver health and education services. Efforts to halt environmental degradation in the Maldives are being bolstered by the Protected Areas System project. The project will establish a replicable and sustainable system for protected area management. A new health initiative will ensure the most isolated populations have access to basic health care.

Bhutan

Australia will continue to support human resource development through a scholarship program to help the government of Bhutan to better address poverty in its isolated and culturally unique society. Primary health care will continue to be addressed in selected areas.

Africa and the Middle East

Regional Overview of Africa & the Middle East

  Africa Middle East
Program allocation $35.8 million $2.1 million
Estimated other flows $38.2 million $6.7 million
Estimated total aid flows $74.0 million $8.8 million

 

The economic and social development challenges facing Africa are enormous. Instituting and maintaining effective government policy and program frameworks are a vital part of creating a positive climate for development. Australia provides support to improve the capacity of governments to develop and implement appropriate policies. The challenge of the HIV/AIDS epidemic is greatest in Africa. More than 13 million Africans have already died of AIDS, 23 million are now living with HIV/AIDS, and 10 million African children have been orphaned by AIDS. Australia is helping to address the HIV/AIDS epidemic in partnership with Australian NGOs.

For the Middle East, Australia supports the peace process through continuing assistance for the humanitarian needs of over 3.5 million Palestinian refugees in the region.

Africa

The objective of Australia's aid to Africa is to reduce poverty and achieve sustainable development through strong partnerships between Australia and selected African countries and communities. This objective will be achieved through a number of integrated strategies, including:

Australia will promote improved governance by providing small grants to organisations in selected African countries through the second round of the three-year, $3 million Africa Governance Fund.

South Africa

Country program funding in 2000-01 will be $10.1 million. A review of the Capacity Building Program in 1999 found it to be valued by the recipients and that it had made a significant development impact. A new phase of the Program will commence in 2000-01, concentrating on four sectors and broadening its scope to include non government organisations. Another program is being designed to focus on improved capacity at local government level, to support the policy of devolution of many government services and the amalgamation of local councils. South Africa has embarked on a major program of change in technical and vocational education. Australia will support this transformation program.

South Africa has the highest statistics for violence against women in the world for a country not at war. A Gender Violence Fund for indigenous NGOs will continue in South Africa and provide $500,000 per year.

Mozambique

The Australian program in Mozambique has focused on capacity building, demining, agriculture and non government organisation activities. Following the devastating floods in Mozambique in early 2000, this focus will continue and programs will incorporate activities to specifically address rehabilitation needs. Country program funding in 2000-01 will be $10.1 million. The massive effort to rid the country of landmines has been set back because of the floods, and the demining effort will need continued support for some time. Capacity building for the public sector will assist Mozambique's impressive reform efforts, while ongoing support for projects implemented by Australian non government organisations will focus on HIV/AIDS, water supply and sanitation, and food security.

Middle East

The Australian Government's development assistance program to the Middle East supports the social and economic advancement of Palestinians in the West Bank and Gaza and the humanitarian needs of Palestinian refugee camp communities throughout the region. Following the signing of the Wye River Memorandum on 23 October 1998, the Government committed $16 million over three years in support of the Middle East Peace Process (MEPP).

The 2000-01 phase of the Wye Pledge includes:

8 Figures from World Bank Country At-a-glance tables (1998)

9 Figures from World Bank Country At-a-glance tables (1998)

Horizontal Line

Previous PageTable Of ContentsNext Page