AUSTRALIA'S OVERSEAS AID PROGRAM
2002-03
STATEMENT BY
THE HONOURABLE ALEXANDER DOWNER MP
MINISTER FOR FOREIGN AFFAIRS
14 MAY 2002
© Commonwealth of Australia 2002
ISBN 0 642 76308 9
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Contents
Chapter One: Focus of the aid program
Key sectors of the aid program
Agriculture and Rural Development
Chapter Two: Papua New Guinea and the Pacific
Chapter Three: Asia and Africa
Emergency, humanitarian and refugee programs
Communication, education and information
Chapter Five: Australian Centre for International Agricultural Research
Chapter Six: Aid administration and management
Methodology of AusAID estimates
Diagrams
Diagram 1: Total Australian aid by region in 2002-03
Diagram 2: Trends in total Australian aid by region
Diagram 3: ODA/GNI ratio of Australia and DAC weighted average
Diagram 4: Estimated breakdown of the aid program by sector in 2002-03
Diagram 5: Estimated expenditure by key sector in 2002-03
Diagram 6: Estimated Australian assistance to the governance sector in 2002-03
Diagram 7: Estimated Australian assistance to the health sector in 2002-03
Diagram 8: Estimated Australian assistance to the education sector in 2002-03
Diagram 9: Estimated breakdown of bilateral program to PNG by sector in 2002-03
Diagram 10: Estimated total aid flows to the Pacific by country in 2002-03
Diagram 11: Estimated total aid flows to East Asia by country 2002-03
Diagram 12: Estimated total aid flows to South Asia by country in 2002-03
Diagram 13: Estimated bilateral research expenditure by region in 2002-03
Diagram 14: DAC member countries' ODA/GNI ratios 2000
Diagram 15: DAC member countries' net ODA 2000
Diagram 16: Total net resource flows to aid recipient countries
Tables
Table 1: Total flows to partner countries
Table 2: Australia's ODA 1971-72 to 2002-03
Table 3: Total aid flows to aid recipients not detailed in Table 1
Table 4: Country programs expenditure estimates and outcomes
Table 5: Global programs expenditure estimates and outcomes
Table 6: Total ODA by subprograms
Table 7: Official aid through Australian and non-Australian NGOs
Table 8: Developing country students supported in Australia
Abbreviations and Acronyms
ACIAR Australian Centre for International Agricultural Research
ADRP AusAID Development Research Program
ADF Asian Development Fund
AMS Activity Management System
ANCP AusAID/NGO Cooperation Program
APEC Asia-Pacific Economic Cooperation
ASEAN Association of South-East Asian Nations
AusAID Australian Agency for International Development
AYAD Australian Youth Ambassadors for Development
CHOGM Commonwealth Heads of Government Meeting
DAC Development Assistance Committee (of the OECD)
DAP Direct Assistance Program
GDP Gross Domestic Product
GEF Global Environment Facility
GEF3 Third Global Environment Facility Replenishment
GNI Gross National Income
GNP Gross National Product
HIPC Heavily Indebted Poor Countries
HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome
ICTs Information and Communication Technologies
IDA International Development Association
IMF International Monetary Fund
IM&T Information Management and Technology
ITTO International Tropical Timber Organisation
MDB Multilateral Development Bank
MPMF Montreal Protocol Multilateral Fund
NGO Non-Government Organisation
OA Official Assistance
ODA Official Development Assistance
OECD Organisation for Economic Cooperation and Development
OGD Other Government Departments
PNG Papua New Guinea
QAG Quality Assurance Group
STD Sexually Transmitted Disease
TB Tuberculosis
UN United Nations
UNAIDS Joint United Nations Programme on HIV/AIDS
UNDP United Nations Development Programme
UNHCR United Nations High Commissioner for Refugees
UNICEF United Nations Children's Fund
UNRWA United National Relief and Works Agency
USP University of the South Pacific
WFP World Food Programme
WHO World Health Organisation
WTO World Trade Organisation
Foreword
The aim of the Australian aid program is to advance our national interest by assisting developing countries to reduce poverty and achieve sustainable development. Australia's development assistance has a strong emphasis on economic growth and good governance in helping countries to develop more effective, transparent and accountable institutions. It will assist the most vulnerable and help the poor to increase their productivity.
In 2002-03, the Australian Government will provide $1.815 billion as official development assistance (ODA). This is an increase of nearly $90 million over the 2001-02 budget figure of $1.725 billion, and represents a three per cent rise in real terms. The ratio of Australia's ODA to Gross National Income (GNI) for 2002-03 is estimated at 0.25 per cent, placing Australia consistently above the donor average which in the latest year available (2001) was 0.22 per cent.
Peace and Stability in the Asia-Pacific Region
Australia's aid program in 2002-03 will retain its strong focus on the Asia-Pacific region where it makes an important contribution to regional peace and stability as well as to poverty reduction. Never before have the links between poverty and conflict been more apparent. Violent conflicts reverse development gains and cause poverty, while high levels of poverty increase the risk of violent conflict. Programs that promote sustainable development and reduce poverty help create an environment for peace. Development assistance can also play a direct and practical role in promoting peace and overcoming conflict, as has been demonstrated through Australia's contribution to peace in Bougainville over the past few years.
In 2002, the Government will adopt a new policy on peace, conflict and development cooperation. Delivering an aid program that adopts a comprehensive approach to conflict prevention and working for peace, conflict reduction and management, and recovery in the aftermath of conflict will be a priority for 2002-03 and the coming years.
Key features of Australia's aid to the Asia-Pacific region in 2002-03 include:
- increasing total aid flows to the Pacific to $165 million
- increasing Australian programmed assistance to the Solomon Islands to $25 million within a total program of $36.2 million to help deal with the serious economic, social and law and order problems arising from the country's turmoil
- resuming a full bilateral aid program to Fiji with total aid expected to reach $19.7 million. The program will promote stability, through strengthening basic services and increasing confidence in the law and justice sector
- increasing total aid to Vanuatu to $22.1 million. The program will support the Vanuatu Government's efforts to address the risks to prosperity and stability including through strengthening the police and judicial sector
- continuing to provide substantial support to Papua New Guinea (PNG) to help sustain the momentum for reform
- providing total aid program funding of $36 million as part of Australia's continuing commitment to East Timor's nation building in its first year of independence
- maintaining Australia's aid commitment to Indonesia with total funding of $121.6 million. The program will assist Indonesia to implement its reform agenda. This will include support for improving economic and financial management, decentralised planning and service delivery
- increasing total aid to Burma to $6.2 million. The program will focus initially on improving basic health services, given the humanitarian crisis that is engulfing the country
- continuing to provide assistance to Afghanistan as part of the $40.3 million humanitarian and reconstruction package announced in January 2002.
Late last year I hosted a successful gathering of Ministers from the region to discuss the broader implications of HIV/AIDS and development. The meeting recognised the need to establish an Asia-Pacific Leadership Forum on HIV/AIDS and Development, to continue active political leadership in responding to the epidemic. In 2002-03 Australia will support the forum through a $350,000 contribution, continue to raise awareness of the urgency for action with regard to HIV/AIDS and focus on implementing the $200 million, six-year HIV/AIDS program I announced in June 2000. Approximately $38.5 million worth of bilateral and regional HIV/AIDS activities will be supported in 2002-03.
Assistance for Refugees and Emergencies
A special $15 million international refugee allocation will be made in 2002-03 to support programs of international agencies to assist refugees and internally displaced people. The Government will also increase funding for emergencies by $15 million to $52.4 million. This will strengthen the aid program's capacity to respond to the human suffering caused by natural disasters, armed conflict and economic and political crises both in our region and more broadly. This is provided alongside the $49 million earmarked for humanitarian programs in 2002-03. The increased funding for emergency, humanitarian and refugee programs in 2002-03 will enable Australia to continue its strong support for the Afghanistan crisis. The Middle East will also remain a priority with Australia's aid commitment to the Middle East expected to increase to $11.9 million in 2002-03.
The Challenge of Globalisation
Globalisation presents both opportunities and challenges for developing countries. Through technical cooperation and policy dialogue, Australia is helping developing countries strengthen their capacity to participate in global and regional trading arrangements and take advantage of new trade opportunities. Since 1996-97, aid program funding for direct trade-related technical assistance and capacity building has increased by more than 36 per cent, to nearly $25 million in 2002-03.
The launch of a new round of multilateral trade negotiations in Doha late last year makes this assistance even more critical. Australia has responded to the Doha Development Agenda with a number of major initiatives. As announced by the Prime Minister at the Commonwealth Heads of Government Meeting (CHOGM) 2002, we have pledged $460,000 to the Global Trust Fund that was set up to support World Trade Organisation (WTO) technical assistance activities in developing countries and agreed to provide $500,000 to support representation and information services in Geneva for small states. A training program for trade negotiators from African countries was run in May this year and will be followed with further trade policy training in other parts of Africa and the Asia-Pacific region. Other activities to build trade capacity in support of the Doha agenda are being developed through both bilateral and regional programs.
Developing countries will need to increase access to information and communication technologies (ICTs) if they are to take full advantage of the opportunities presented by globalisation. The 2002-03 financial year will see the momentum increase for the Virtual Colombo Plan, a $200 million, five-year initiative between the World Bank and the Australian Government that promotes access to education and information in developing countries through the use of ICTs. In 2002-03 Australia will spend $31 million on the Virtual Colombo Plan.
Debt Relief
Australia is a strong supporter of the enhanced Heavily Indebted Poor Countries (HIPC) Initiative, which is a comprehensive international strategy to provide debt relief to the world's poorest countries with sound policy, institutional and poverty reduction frameworks. It also strengthens the links between debt relief and poverty reduction. Australia has made an additional commitment of $18 million over three years to support the HIPC initiative, bringing Australia's total support for HIPC to $77 million.
Volunteers
The Government's strong support for the vital role that volunteers bring to development will be further enhanced in 2002-03. Volunteers return to Australia with a greater appreciation of the cultures, economies and development needs in our region. The Australian Youth Ambassadors for Development program has been particularly successful and remains very popular with neighbouring countries, providing them with access to the skills of young Australian professionals. The Youth Ambassadors program is also benefiting Australia by providing young Australians with the opportunity to develop their adaptability, resourcefulness and leadership skills in an international setting. In 2002-03, funding for volunteers, including the Youth Ambassadors Scheme, Australian Volunteers International and AESOP Business Volunteers, will increase by $1.9 million to reach a total of $20.5 million, the highest level yet.
Conclusion
A high priority for the aid program is continuous improvement in the impact of our aid. This requires focusing the aid budget on programs that have the greatest impact on reducing poverty and achieving sustainable development. It also requires strengthening the planning, design and implementation of projects to achieve better aid outcomes.
The 2002-03 aid budget, through its commitment to the Asia-Pacific region and its focus on good governance, building developing country capacity and promoting peace and stability, will make a practical contribution to sustainable development and poverty reduction.
Alexander Downer
Table 1: Total flows to partner countries
Notes to Table 1
1 Shows total expenses, minus expenses related to new multi-year liabilities (for example, to the Global Environment Facility (GEF)), plus cash payments for ongoing liabilities. See Technical notes for more detail.
2 Total aid flow estimates for 1999-2000 onwards are not strictly comparable to historical expenditure figures (which are based on figures published in the Statistical Summary 1999-2000: Australia's Overseas Aid Program). Historical figures do not apportion regional program expenditure by country. Refer to Table 4 for a direct comparison between historical and estimated country program allocations.
3 Shows total aid flows for the estimated Budget Figure as at May 2001 of $1,725 million and estimated Expected Outcome as at May 2002 of $1,808 million.
4 PNG increase due to expenditure by Other Government Departments (OGDs) on Bougainville peacekeeping efforts and funding available to meet possible emergencies.
5 Fiji and Solomon Islands allocation and total flows for the 2001-02 Budget Figure were determined within the overall Pacific allocation.
6 Nauru Additional represents additional funding appropriated under 2001-02 Additional Estimates and a new measure for 2002-03 to meet the $10 million pledge of assistance agreed between the Nauru and Australian Governments in December 2001.
7 Shows East Timor aid program flows only, as OGD East Timor expenditure is included in OGD unallocated.
8 OGD unallocated includes ODA eligible expenditure by other government departments which has not been allocated to a particular country or region.
9 Core contributions to multilateral organisations, other ODA expenditure includes, for example, expense payments which cannot be attributed to a particular country such as payments to some UN and Commonwealth organisations, and Departmental expenditure. The ODA eligible components of cash payments to IDA, ADF, IFAD, GEF, HIPC and the MPMF are included in this line item.
10 See Technical notes for an explanation of the relationship between expenses and cash.
11 Real per cent change over 2001-02 Budget Figure of $1,725.0 million.
12 See Technical notes for an explanation of the change in terminology from GNP to GNI.
