Australian Government, 2010‑11 Budget

Country and Regional Programs

Papua New Guinea and the Pacific

Estimated ODA to Papua New Guinea and the Pacific in 2010‑11 $1,085.4 million

The Pacific region's progress in achieving the MDGs by 2015 is mixed. Good progress has been made in some countries, but the region as a whole is significantly off-track to meet the MDGs.

Australia will continue to support Pacific Island Countries and Papua New Guinea to deal with their development challenges. This requires resources to be well-targeted and effectively coordinated. At the 2009 Pacific Islands Forum, Pacific Leaders and key donors committed to improving the coordination of aid, through the Cairns Compact on Strengthening Development Coordination. The Cairns Compact aims to drive more effective use of all development funds from the Pacific Island Countries themselves and their development partners including Australia. For further details on the Cairns Compact, see the box below.

Australia has established Pacific Partnerships for Development with Papua New Guinea, Samoa, Solomon Islands, Kiribati, Vanuatu, Tonga, Nauru and Tuvalu. Partnerships with the Federated States of Micronesia, Marshall Islands and Palau will be finalised during 2010. All of these partnerships have an overriding objective of achieving better development outcomes, including faster progress towards the MDGs. The partnerships focus on how the partner country will strengthen its own efforts to achieve agreed development outcomes and on how Australia can better target its support. This approach is based on principles of international best practice for effective aid — mutual respect and mutual responsibility.

Key development indicators for Papua New Guinea and the Pacific

Country GNI per capita ($US) Access to water (% of population) Life expectancy (years) Adult literacy rates (% of population)

Papua New Guinea

1,010 40 61 58

Solomon Islands

1,180 70 66 77


2,330 59 70 78


3,930 47 69 n/a


2,560 100 72 99


2,780 88 71 99


2,000 65 61 n/a

Federated States of Micronesia

2,340 94 68 n/a

Sources: Human Development Indices 2009, UNDP; and for GNI per capita - World Development Indicators Online, World Bank, 2009.

2010‑11 will see Australia and Papua New Guinea respond jointly to recommendations from two recent reviews, one of the PNG University system and the other of the Australia — PNG Treaty on Development Cooperation.

Cairns Compact on Strengthening Development Coordination

The Government will invest $1.4 million over two years in the Pacific Islands Forum Secretariat to lead the implementation of the Cairns Compact on Strengthening Development Coordination in the Pacific. The Cairns Compact, agreed by Forum Leaders and endorsed by development partners at the Leader's meeting in Cairns in August 2009, brings new determination and an invigorated commitment to lift the economic and development performance of the Pacific region.

The objective of the Cairns Compact is to drive more effective coordination of available development resources from both Forum developing country partners and all donors to increase progress towards the MDGs. The Cairns Compact introduces new reporting and review mechanisms which aim to better guide budget and partner government support, strengthen delivery systems and enhance development data to improve decision making.

The Cairns Compact draws on international development best-practice as outlined in the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action and will help to ensure the best use of Australia's development resources. The Forum Secretariat has ongoing responsibility for implementing the Cairns Compact and will report on its progress to leaders and partners annually.

Table 3: Assistance to Papua New Guinea and the Pacific in 2010‑11

Estimate 2010‑11 ($m)

Papua New Guinea

Country Program: 415.0

Total ODA: 457.2

Assistance to PNG is guided by the initial five priority areas under the PNG-Au stralia Partnership for Development and will:

Provide better access to markets and services through improving transport infrastructure by supporting the implementation of PNG's National Transport Development Plan and National Transport Strategy 2010-2030 to improve key national roads, ports and airports.

Promote faster progress towards universal basic education by supporting PNG's Universal Basic Education Plan, targeting increasing primary and elementary enrolment rates and achieving a net enrolment rate of 70 per cent by 2015. Support will also focus on increasing the percentage of female students and improve the quality of education by training teachers.

Improve health outcomes by supporting the Government of PNG's national health strategy, including reducing the prevalence of malaria and tuberculosis, achieving targets relating to immunisation and increasing the percentage of supervised births by skilled staff.

Strengthen the PNG public service by improving public administration through enhanced governance and service delivery assistance at national, provincial and district levels, including strengthening public financial management and improving public accountability.

Improve statistical data by supporting the development of a PNG national statistics development strategy, household surveys and the PNG census that was launched in February 2010.

Assistance in the following areas will:

Provide a strengthened, coordinated and effective response to the HIV crisis through a program to prevent the spread of HIV and provide treatment and care for those most affected. Australia will also support the implementation of the PNG government's new national HIV/AIDS strategy.

Provide support to PNG's law and justice sector by continuing to assist the ability of PNG agencies to improve the application of the rule of law.

Provide support to the higher education sector by providing assistance to PNG universities and technical and vocational training institutions and providing development awards to Papua New Guineans.

Other assistance to PNG will:

Improve governance and community development by engaging with civil society, communities, the private sector and all levels of government to support enhanced governance, civic education and local development.

Promote sustainable broad based economic growth and increased productivity through continued support for macroeconomic management, enhanced private sector development and improved agricultural productivity in rural areas.

Improve service delivery and public administration and governance at the sub-national level through the Provincial Performance Improvement Initiative, which covers 18 provinces and Bougainville.

Improve security and stability including through an AFP-managed policing partnership.

Develop PNG's border management capabilities though the PNG-Australia Customs Border Security Project.

Solomon Islands

Country Program: 114.0

Total ODA: 225.7

Under the Solomon Islands-Australia Partnership for Development assistance to the Solomon Islands will:

Improve service delivery by strengthening public health functions that respond to community health needs and improve progress towards MDG targets for health facility access, reducing the incidence of malaria, reducing maternal and infant mortality rates and increasing access to clean water and proper sanitation.

Improve economic livelihoods by working to create long-term economic opportunities and livelihood security, particularly in rural areas. The focus will be on supporting more productive and sustainable utilisation of agricultural land, forests and marine resources, and the improved operation of markets for rural households.

Improve economic infrastructure by improving access to transport, energy and telecommunication services. Assistance will focus on rehabilitating and maintaining priority transport infrastructure, improving the Government's capacity to manage the transport network and enhancing the capability of the local private sector to implement contracted works. Support will also improve access to and reduce the costs of energy supply by expanding the use of renewable energy technologies and improving access to and the affordability of telecommunications, including in remote areas.

Address economic and fiscal challenges by encouraging economic and fiscal reforms aimed at ensuring an affordable and sustainable budget that improves Government decision-making processes. Progressing structural reforms that promote economic growth and make Solomon Islands an attractive and reliable place for investment. This work will be complementary to RAMSI capacity building efforts.

Development assistance delivered through the Regional Assistance Mission to Solomon Islands (RAMSI) will:

Contribute to a safer and more secure Solomon Islands by strengthening the law and justice system to improve access to justice. Programs will provide assistance including prosecution and defence lawyers to build capacity of the justice agencies, support to the corrections system, and provide assistance for upgrading court and prison infrastructure.

Contribute to a better functioning government to improve accountability and service delivery. This will include initiatives to improve the public service and provincial governments, improve electoral processes, strengthen Parliament's representative, oversight and law-making functions, and increase women's participation in government.

Contribute to improved standards of living for Solomon Islanders by building Government capacity to implement and maintain policies which support sustainable economic growth. Efforts will focus on enhancing the Government's public financial management capacity, including budget development and expenditure processes, managing Government debt at sustainable levels, and reforming state-owned enterprises.


Country Program: 49.3

Total ODA: 66.4

Under the Australia-Vanuatu Partnership for Development, assistance to Vanuatu will:

Increase access to and quality of education through reducing the cost of sending children to primary school, improving teacher training, providing new learning materials and renovating school facilities.

Enhance health care by training nurses and doctors, strengthening budget management capacity and improving the distribution of pharmaceutical supplies. Support will also be provided to reduce and progressively eliminate malaria through the distribution of bed nets, improved treatments and rapid diagnostic tests.

Develop infrastructure to improve transport links and create job opportunities through the maintenance of Vanuatu's road network and to enhance export opportunities through improved wharf facilities in Port Vila.

Assist with economic governance reforms by enhancing the transparency and accountability of the Government of Vanuatu's budget systems, improved collection of statistics to track progress towards the MDGs, and microeconomic reform to encourage investment in agriculture.


Country Program: 18.0

Total ODA: 37.2

Ahead of progress towards a return to democratic governance, assistance to Fiji will:

Improve essential health and education services by supporting community‑based interventions, especially for vulnerable communities.

Support human rights by partnering with civil society and regional organisations, enhancing community dialogue and income generation and eliminating violence against women.

Support rural enterprise development by enhancing social protection, financial inclusion measures and improving access to financial services.


Country Program: 17.0

Total ODA: 27.8

Under the Tonga-Australia Partnership for Development, assistance to Tonga will:

Build a more efficient public sector by strengthening policy formulation and implementation and improving public financial and economic management.

Improve health by reducing the prevalence of non-communicable disease risk factors, including obesity and tobacco use, and strengthening the Government of Tonga's focus on primary health care.

Improve technical and vocational skills in areas of industry demand both domestically and abroad, through improving the management and teaching capabilities of technical and vocational education and training institutions in Tonga and promoting access to training and employment opportunities in the region.

Develop infrastructure by increasing the public's access to reliable and affordable transport links to markets and services, increasing private sector involvement and ensuring budgetary provision for infrastructure maintenance.


Country Program: 26.4

Total ODA: 39.8

Under the Samoa‑Australia Partnership for Development, assistance to Samoa will:

Promote private sector growth and employment with an emphasis on agriculture and fisheries, regional economic integration and trade liberalisation, economic infrastructure and lowering costs of doing business.

Improve education through supporting equitable access to schools, including for people with disability, and reducing student and teacher retention rates.

Improve health by supporting the reduction of non-communicable diseases through a program of health promotion and prevention at community and institutional levels; and workforce development by strengthening training institutions and governance.

Improve governance through enhancing public financial management and strengthening statistics and data on development and governance indicators.

Strengthen law and justice by supporting an integrated approach to policing, law and justice sector reform.

Provide climate change assistance by supporting Samoa's National Adaptation Programme of Action that will monitor the impacts of climate change, provide adaptation measures for vulnerable communities and develop viable options for renewable energy.

Additional support will be provided in the short to medium term to assist with tsunami recovery and reconstruction activities in Samoa, in accordance with the Government of Samoa Tsunami Recovery Plan 2009‑12.


Country Program: 16.9

Total ODA: 23.9

Under the Kiribati-Australia Partnership for Development, assistance to Kiribati will:

Improve basic education through supporting improved access to primary and junior secondary schools, and improving the quality of education delivered in these institutions.

Develop workforce skills in areas of industry demand both domestically and abroad to decrease youth unemployment in Tarawa and the outer islands.

Improve growth and economic management by supporting reforms that improve public financial management, increase the Government of Kiribati's revenues, reduce the cost of public enterprises, and improve service delivery.


Country Program: 6.1

Total ODA: 8.9

Under the Tuvalu-Australia Partnership for Development, assistance to Tuvalu will:

Support long-term revenue through contributions to the Tuvalu Trust Fund.

Enhance education and health care services through performance-linked budget support to the Consolidated Investment Fund linked to reform and expenditure commitments.


Country Program: 17.4

Total ODA: 26.6

Under the Nauru-Australia Partnership for Development, assistance to Nauru will:

Improve public sector management by enhancing its efficiency and accountability.

Improve health outcomes and education services including technical and vocational education and training.

Support essential infrastructure services by increasing opportunities for private sector growth and improving cost effectiveness.

Micronesia (Federated States of Micronesia, Marshall Islands and Palau)

Country Program: 4.2

Total ODA: 10.4

Assistance to each of the three North Pacific/Micronesian states will be delivered through separate Pacific Partnerships for Development. Each partnership will focus on mutually-agreed, targeted priority development sectors.

Improve governance, public financial management and energy policy through the provision of advisory services and regional development awards.

Support community organisations and government agencies through a small grants scheme.

Cook Islands

Country Program: 2.2

Total ODA: 5.0

Assistance to Cook Islands will be provided through a delegated cooperation program with New Zealand. It will focus on the outer islands. Assistance will be provided for economic growth, infrastructure, service delivery, and governance.

Niue and Tokelau

Country Program: 2.2

Total ODA: 4.4

Assistance to Niue and Tokelau will be implemented in close consultation with New Zealand and will:

Promote social and economic development through support to the Niue and Tokelau International Trust Funds.

Support human resource development through the provision of development awards and assistance to strengthen capacity for management and policy development.

Pacific Regional

Regional Program: 152.0

Major Pacific regional assistance programs will:

Strengthen health systems through health workforce development and services to provide significant investment in health workforce planning and training, as well as coordination of specialist surgical and training visits in the Pacific region.

Address HIV and other sexually transmitted infections through the Pacific Island HIV and STI Response Fund. This initiative, in partnership with other donors, will improve the focus on prevention and continues support for testing, treatment and research.

Combat malaria in the Solomon Islands, Vanuatu and regionally.

Tackle non-communicable diseases in Pacific Island Countries by supporting prevention, workforce training in clinical management, surveillance and research on disease burden and supporting lifestyle and nutrition improvements in schools and communities.

Improve education through the Pacific education program to increase access to and the quality of basic education and vocational skills training through both regional and bilateral programs. Continuing support will be provided for the Australia-Pacific Technical College to promote skills development in the Pacific. The College aims to graduate 3,000 students over four years.

Promote adaptation to climate change by helping developing partner countries meet high priority climate adaptation needs. It includes a region-wide community-based adaptation program, as well as assistance to Pacific Island Countries to implement priority adaptation actions.

Build public sector capacity by working with the University of the South Pacific to establish the Pacific Islands Centre for Public Administration to improve the performance of public service organisations and the capacity of public servants in the Pacific.

Enhance engagement with and support for Pacific regional organisations which play an important role in coordinating and developing regional solutions to shared development challenges.

Promote private sector development by partnering with International Financial Institutions to improve the regulatory framework for business and broaden access to finance.

Strengthen the capacity of Pacific Island Countries to benefit from global trade and economic opportunities including through the Pacific Regional Agricultural Market Access program and ongoing support for Forum Island country engagement in the Pacific Agreement on Closer Economic Relations Plus.

Improve infrastructure services through the Pacific Region Infrastructure Facility to support much needed infrastructure for improved domestic and international connectivity such as in the telecommunications and transport sectors and reliable access to services such as health and education. Addressing water security, particularly in the vulnerable atoll countries of the Pacific, will be an increasing focus of aid assistance.

Improve law and justice through the AFP managed Pacific Police Development Program by building national level capacity through the provision of bilateral assistance and enhanced regional collaboration.

Indonesia and East Asia

Estimated ODA to Indonesia and East Asia in 2010‑11 $1,092.3 million

Australia will further enhance its development relationships in Indonesia and East Asia. In Indonesia, Australia will provide assistance to strengthen economic management, improve natural resource management, and support infrastructure initiatives such as roads and household water connections. In 2010‑11, Australia will support provincial and district governments in Eastern Indonesia (including Papua and West Papua) to improve service delivery in the health, education and infrastructure sectors. Australia will support the Government of Indonesia's National Program for Community Empowerment, to help Indonesia distribute grants for small scale infrastructure and other community services.

In 2010‑11, Australia will support East Timor to use its resources to improve its service delivery to districts including in the areas of health and water and sanitation. Support will also assist East Timor expand employment and training opportunities.

Australia will provide support for East Asia in key areas such as education, health, economic growth and sustainable development. Australia will support infrastructure initiatives in the Philippines, Vietnam, Cambodia and Laos by improving transport links to enhance regional trade and drive economic growth. Australia will work to enhance disaster response capabilities in the Philippines and support agricultural productivity and food security initiatives in Cambodia, Laos and Burma.

Key development indicators for partner countries in East Asia

Country GNI per capita
Access to water
(% of population)
Life expectancy
Adult literacy rate
(% of population)


2,010 80 71 92


890 92 74 90


600 65 61 76


740 60 65 73

East Timor

2,460 62 61 50


n/a 80 61 90


1,890 93 72 93


2,940 88 73 93


1,680 72 66 97

Sources: Human Development Indices 2009, UNDP; and for GNI per capita - World Development Indicators Online, World Bank, 2009.

Table 4: Assistance to Indonesia and East Asia in 2010‑11

Estimate 2010‑11 ($m)


Country Program: 325.4

AIPRD: 73.7

Total ODA: 458.7

Assistance to Indonesia will:

Promote sustainable growth and economic management by improving economic policy and strengthening economic management at a national level.

Support climate change mitigation and natural resource management by developing the capacity of key economic agencies to implement pilot projects in Kalimantan and Jambi to reduce emissions from deforestation and degradation.

Improve service delivery and infrastructure through reducing infrastructure constraints and supporting Indonesia's national poverty alleviation program to help Indonesia distribute grants across the country to build small-scale infrastructure and deliver local services. Support will also construct national road systems in Bali, Sulawesi and Nusa Tenggara Barat in eastern Indonesia.

Support health services by improving Indonesia's public health system, including developing a universal insurance scheme to complement existing programs.

Improve water and sanitation facilities by supporting a new national program to improve access to clean drinking water for people across Indonesia from 2009 to 2011.

Improve access to education by continuing the construction and rehabilitation of additional junior secondary schools and training of principals and district managers. In 2010‑11, approximately 300 development awards will be offered and a new program will help build social and economic research capacity.

Improve democracy, justice and governance by enhancing the capacity, accountability and responsiveness of legal, democratic and oversight institutions. Support will be provided to improve the capacity of Indonesia's courts, prosecutors and human rights institutions to supply quality legal information and services to all people. Work with the electoral commission will help enhance the management of elections.

Improve safety and peace through enhancing the response to humanitarian needs, improving capacity to ensure transport safety and security and developing capability to counter threats from transnational crime. The Australia-Indonesia Facility for Disaster Reduction will provide support to further enhance disaster response management.


Country Program: 105.0

Total ODA: 118.1

Assistance to the Philippines will:

Improve basic education by supporting improved access to and the quality of education for Filipino girls and boys including Muslim and Indigenous children, those living in disadvantaged and conflict affected areas of the Autonomous Region of Muslim Mindanao, and children with disabilities. Support for education reforms at the national level will assist the Philippines to make progress towards achieving its MDG target for universal primary education. Assistance will support decision-making at the school level, provide more effective allocation of teachers to needy regions including remote schools, provide teaching and learning materials and support school classroom construction.

Promote national stability and human security in conflict-affected areas. This includes support for community based peace building, increased opportunities for women and small-scale infrastructure development to conflict-affected communities. Assistance will also focus on the delivery of maternal and newborn health services through a joint United Nation's program implemented by UNFPA, WHO, and UNICEF.

Enhance disaster response capabilities by working with the Government of the Philippines and the public to provide better protection from natural disasters, climate change and emergencies. Australia will support reconstruction efforts, early warning systems and disaster preparedness in response to the devastation caused by Typhoons Ketsana and Parma in late 2009.

Support economic growth and infrastructure by supporting improvements to national level budgeting, public financial management and governance capacity of key service delivery institutions. The program will rehabilitate rural roads in poorer provinces to ensure Filipinos have better access to jobs, markets, health services and schools.


Country Program: 96.0

Total ODA: 119.8

Assistance to Vietnam will:

Improve access to markets for the rural poor by supporting the construction of around 60km of feeder roads and canals in the Mekong Delta that will connect through to major transport corridors that are also being built with Australian support.

Stimulate regional trade by supporting major infrastructure projects like the Cao Lanh Bridge in the Central Mekong Delta.

Strengthen access to water and sanitation services by supporting the Government of Vietnam's own program to bring basic water and sanitation services to support approximately 7.4 million people, build more than 10,000 school latrines, and provide 1.3 million households with hygienic latrines.

Help mitigate climate change challenges by improving the Government of Vietnam's capacity to manage the impacts of natural disasters, understand future impacts and possible solutions in the Mekong Delta and rehabilitate mangrove forests to protect coastlines.

Strengthen Vietnam's human resource foundation by further increasing the number of development awards for study in Australia in 2010‑11 to 225 per year.


Country Program: 50.1

Total ODA: 64.2

Assistance to Cambodia will:

Reduce rural poverty and increase farmer income through stronger linkages between farmers and markets, rehabilitating irrigation infrastructure and improving agricultural productivity to increase the value of agriculture in Cambodia, especially rice production. School meal programs and other food assistance will increase food security for the rural poor. Assistance will also be provided for landmine clearance.

Improve the health of Cambodians by supporting the health sector and reform of the Cambodian health system. Assistance will also be provided for the physical rehabilitation and reintegration of people with disability into their communities.

Improve infrastructure through upgrading key transport routes, including Cambodia's national railways and major road networks to help drive economic growth and improve access to regional and global markets. Improve and expand the coverage of electricity in rural Cambodia.

Strengthen law and justice by supporting the rule of law and access to justice, especially for juveniles, women and other vulnerable groups. Strengthen crime prevention and community safety organisations.

Build government and private sector capacity by providing approximately 25 development awards for study in Australia.


Country Program: 32.5

Total ODA: 41.0

Assistance to Laos will:

Increase access to quality basic education by contributing to the construction of up to 325 schools, training over 7,000 teachers, improving curriculum materials and providing school meals to over 113,000 school children in poor and remote areas. This support will directly assist the Government of Laos to implement its Education Sector Development Framework.

Support growth through trade and investment facilitation focusing on goods and services which have the potential to create significant employment and reduce poverty. Support will improve the capacity of ministries to engage in reforms, improve regulatory frameworks and increase the competitiveness of products and services.

Integrate livelihood development in remote and poor rural areas through community based programs addressing food security and income generation. Assistance will also support reduced vulnerability to unexploded ordnance and disasters.

Improve access to electricity and road infrastructure in rural areas.

Build government and private sector human resource capacity through the provision of up to 40 development awards for study in Australia and ongoing support for provincial students to undertake tertiary studies within Laos.

East Timor

Country Program: 69.0

Total ODA: 102.7

Assistance to East Timor will:

Strengthen basic health and education service delivery by improving the Government of East Timor's ability to deliver services, particularly for maternal and child health, in the districts of East Timor.

Expand employment and training opportunities by increasing agricultural productivity, improving infrastructure, promoting vocational education, and promoting private sector development.

Improve government accountability, transparency and integrity by building the capacity of local government in public financial management and improving transparency of government and parliamentary processes.

Build the foundations of a safer community by establishing a more effective and accountable police service through an AFP managed program.


Country Program: 32.0

Total ODA: 48.6

Assistance to Burma will:

Provide assistance to highly vulnerable populations across Burma including in the border regions.

Improve food security and reduce the number of people living in acute poverty in rural communities through the provision of food assistance and livelihood development activities including access to microfinance and agricultural and fishing assets. The Australian funded Livelihoods and Food Security Trust Fund aims to assist at least 50,000 households affected by Cyclone Nargis to meet basic needs including adequate food.

Improve health outcomes with a continued focus on HIV/AIDS and maternal and child health. The Australian funded Three Diseases Multi‑Donor Fund implements activities focused on the prevention, treatment and care for people affected by HIV/AIDS, tuberculosis and malaria, including expanding access to anti-retroviral treatment for people living with HIV from 7,000 to 9,000.

Improve access to quality basic education by providing books, pens, paper and other basic school supplies to reduce the cost to families and by building the capacity of community teachers.

Continue to assist communities affected by Cyclone Nargis which struck in May 2008. Australian support will continue to target assistance to the most vulnerable Cyclone Nargis survivors, including women, and orphaned and displaced children in order to address recovery needs.

Australia will continue to work closely with key donor partners to support the people of Burma with assistance provided through UN agencies and international NGOs, including UNICEF, CARE Australia and Save the Children.

East Asia Regional

Regional Program: 88.5

Assistance through the East Asia Regional Program will:

Strengthen regional economic integration through assistance to achieve an ASEAN Economic Community by 2015; implementing the ASEAN Australia New Zealand Free Trade Agreement; and continuing support for the East Asia Summit economic and trade priorities and APEC's capacity building initiatives for developing economies.

Strengthen capacities of key regional institutions to tackle transboundary challenges in health and human security, including:

  • combating the threat of pandemics and emerging infectious diseases by enhancing surveillance, prevention and response systems for animal and human health; preventing the spread of HIV and reducing HIV-related harm associated with drug use in the region; and
  • reducing the commercial sexual exploitation of children; addressing people trafficking by improving coordinated responses within and across criminal justice systems in Southeast Asia; and reducing labour exploitation and trafficking by increasing labour rights protection and decent work opportunities for migrant workers.


Country Program: 22.0

Total ODA: 36.8

Assistance to China will focus on :

Policy engagement on global and regional development, partnerships and skills enhancement in governance (economic reform), environment (water and climate change) and health (strengthening health systems and improving the response to HIV) sectors by promoting shared knowledge and expertise.


Country Program: 4.0

Total ODA: 7.4

Assistance to Mongolia will:

Provide around 28 development awards for study in Australia to assist the Mongolian Government achieve its human resource development goals, in line with Mongolia's priority sectors, including mining and mineral resources.

North Korea

Assistance to the Democratic People's Republic of Korea will:

Respond to the protracted humanitarian emergency through funding to the UN and international agencies providing assistance in areas such as food aid, water and sanitation and disaster response and preparedness. The provision of other development assistance will depend on progress on denuclearisation.

New Initiative: Development Partnership with Indonesia

The Government will invest $323.0 million over four years to expand our development partnership with Indonesia. This initiative will support the newly elected Indonesian Government's priorities and expand the current Australia- Indonesia Partnership bilateral program. The focus areas of the new partnership will be education, health and governance.

The first component of the initiative will increase education and development awards funding and assist Indonesia in meeting its Education for All targets which are ensuring 90 per cent of districts in Indonesia achieve a gross enrolment rate of 90 per cent of junior secondary aged children. The initiative will improve the quality of education and increase the number of development awards offered each year.

The second component will help Indonesia to improve its ability to meet its health MDGs by halting the spread of HIV/AIDS and improving access to anti-retroviral treatment.

The third component will deliver a complementary program of governance and decentralisation support with a focus on economic and public sector reforms, supporting the roll out of the National Program for Community Empowerment to strengthen the electoral system, law and justice reform and promote a more effective district level planning and budgeting system.

Africa, South and Central Asia, Middle East and the Caribbean and Latin America


Estimated ODA to Africa in 2010‑11 $200.9 million

The Australian Government is expanding its engagement in Africa through increased humanitarian and development assistance, enhanced trade and commercial linkages and strengthened diplomatic relations. Australia will provide increased development assistance by working closely with African Governments, regional and multilateral organisations and NGOs, aligning activities with the priorities of African countries in support of long-term development.

Africa lags behind other regions in its progress towards achieving the MDGs, with the majority of sub-Saharan African countries not on track to meet the MDGs by 2015. The goals focused on eradicating poverty and hunger (MDG 1), health (MDGs 4, 5 and 6) and environmental sustainability (MDG 7) are particularly off track.

Australia's assistance will support Africa in areas of real need and where Australia can make a difference, including food security, maternal and child health, water and sanitation and human resource capacity building. Australia will continue providing humanitarian assistance in response to emergencies and protracted crises, including those resulting from conflict and long‑term droughts. Australia will also support peace building efforts of the African Union and the UN.

Australia will provide assistance to build Africa's human resource capacity through an expanded development awards program, delivering up to 1,000 development awards each year by 2012‑13. Through the Australia — Africa Partnerships Facility, Australia responds to African requests for assistance in areas they have identified as priorities including trade policy, economic governance, public sector reform, agriculture and mineral resource management.

The Government will also support recovery efforts in priority areas of Zimbabwe, in particular in the water and sanitation, agriculture, health and education sectors.

Key development indicators for sub-Saharan Africa


GDP per capita
Access to water
(% of population)
Life expectancy
Literacy rate
(% of population aged 15-24 years)
Sub-Saharan Africa 2,031 60 52 62

Source: Millennium Development Goals Report 2009; UN Human Development Report 2009.

Table 5: Assistance to Africa in 2010‑11

Estimate 2010‑11 ($m)

Regional Program: 139.2

Total ODA: 200.9

Assistance to Africa will:

Improve water and sanitation services, maternal and child health and food security to help progress towards the MDGs. Assistance will be delivered through regional and multilateral institutions and NGOs.

Enhance natural resource management, governance, trade policy and private sector development by providing timely and flexible responses to capacity building needs identified as priorities by African governments.

Enhance education through providing around 250 development awards for study in over 19 countries.

Restore basic health and education services and promote economic recovery by supporting Zimbabwe's 'Humanitarian plus' program for the provision of extended emergency relief.

Build capacity of African governments and institutions to respond to natural disasters, conflicts or droughts through the provision of humanitarian assistance to displaced communities.

New Initiative: Africa — Increased Development Assistance

Australia will continue its development assistance to African nations in areas such as water and sanitation, maternal and child health and food security and will provide humanitarian assistance to support African nations respond to emergencies and crises. In 2010‑11, the Government will invest $346.9 million over four years in Africa. The initiative will support capacity building and address key development challenges. Australia will scale up the number of development award opportunities in Africa. This will include the provision of up to 1,000 long and short-term awards annually throughout Africa by 2012‑13. The awards will be responsive to partner government priorities and will assist in strengthening Africa's leadership capacity.

South Asia

Estimated ODA to South Asia in 2010‑11 $171.3 million

Australia is committed to strengthening links with South Asia. In 2008, Australia became an observer to the South Asian Association for Regional Cooperation to forge closer relationships with the region.

Australia is committed to progressing South Asia's achievement of the MDGs and gives high priority to addressing health, education and improving the livelihoods of the poor by providing assistance for food security and rural development, especially in Bangladesh. An expanding engagement in water and sanitation programs will extend the reach of Australian assistance to the urban and rural poor. Australia will assist recovery and reconstruction efforts in Sri Lanka following natural disasters or conflict.

A critical challenge for Australia is responding to the impacts of climate change on water resources and food security in South Asia. Australia recognises the urgency of improving water resource management in South Asia in light of climate change induced variations. Engaging in water resource management, expanding the use of renewable energy resources and assisting climate change adaptation are priorities for Australia's international development assistance in South Asia.

Key development indicators for partner countries in South Asia


GNI per capita
Access to water
(% of population)
Life expectancy
Adult literacy rates
(% of population)

Sri Lanka

1,780 82 74 91


400 89 66 57


520 80 66 54


1,070 89 63 66


3,630 83 71 97


1,900 81 66 53

Sources: Human Development Indices 2009, UNDP; and for GNI per capita - World Development Indicators Online, World Bank, 2009.

Table 6: Assistance to South Asia in 2010‑11

Estimate 2010‑11 ($m)


Country Program: 57.0

Total ODA: 70.0

Assistance to Bangladesh will:

Improve livelihoods of the rural poor through supporting programs with the Bangladesh Rural Advancement Committee (BRAC) and a partnership with the UK aid agency (DFID) by supporting communities in need through the provision of humanitarian assistance.

Increase support for health services through new and expanded partnerships to enhance the capacity for health service delivery by government and NGO providers and by supporting human resources, particularly midwifery.

Reduce maternal, neonatal and child deaths in rural areas by improving the skills of health providers, improve referral linkages between public and private health facilities, increasing demand for obstetric services and provide improved emergency obstetric care.

Increase support for education through expanded programs with UNICEF and BRAC to enhance teacher education and local-level planning for government primary schools. Assistance will reach a nationwide non‑government network of around 33,750 primary schools serving a total of approximately 989,000 children (65 per cent of whom are girls). These BRAC managed schools also seek to address the multiple disadvantages faced by poor children with disability.

Improve water and sanitation services for the urban and rural poor through a partnership with Denmark's aid agency (DANIDA) to deliver sustainable hygiene, sanitation and water supply services to 400,000 people in 40 local government areas.

Enhance community resilience to climate change through support for the joint UNDP and Government of Bangladesh Comprehensive Disaster Management Program to reduce the impacts of floods and cyclones.

Sri Lanka

Country Program: 37.0

Total ODA: 46.0

Assistance to Sri Lanka will:

Provide humanitarian and resettlement support for conflict affected communities in northern Sri Lanka including food, shelter, water and sanitation, agriculture, housing and demining, delivered through the UN, NGOs and Development Banks.

Promote community rehabilitation, livelihood development and peace building, delivered primarily through UN and international NGOs in conjunction with local NGOs and community business organisations.

Improve the quality of and access to basic education for the most vulnerable and marginalised children affected by conflict and support the Government of Sri Lanka to plan, manage and assess schooling at provincial and local levels.

Continue support for improved natural resource management, including through a community and forestry management program.

Continue support for education through the provision of up to 20 development awards.


Country Program: 9.9

Total ODA: 22.2

Assistance to India will:

Address energy security and climate change impacts on water resources and agriculture through partnerships with Indian partners.

Support water and sanitation and water resource management through the World Bank and the South Asia Water Initiative (SAWI) to build capacity of the recently established Ganges River Basin Authority.

Continue support for fostering agricultural research.

Improve health measures targeted towards reducing the risk and impact of HIV/AIDS, particularly among high risk groups in the northeast region of India.


Country Program: 13.0

Total ODA: 18.4

Assistance to Nepal will :

Improve access to health care services, reduce maternal mortality, enable participation in a multi-donor program to build the capacity of the Government of Nepal and fund UNICEF child health programs.

Strengthen governance and democracy by promoting democratic practices and increasing the inclusion of marginalised communities through AusAID's continuing partnership with the UK's aid agency DFID.

Improve access to and the quality of education through participating in a multi donor program that works with the Government of Nepal to improve its education system. Net enrolment rates are expected to increase from 73 per cent in 2008‑09 to 77 per cent in 2010‑11 and the number of appropriately trained and qualified teachers is expected to increase from 66 per cent to 74 per cent over the same period.

Contribute to poverty alleviation through a partnership with UNDP to help develop up to 7,250 micro-enterprises creating up to 9,425 jobs for the poor and disadvantaged.

Improve access to water and sanitation through governance programs and constructing water and sanitation schemes in four rural districts benefitting up to 15,500 people in partnership with WaterAid Australia.


Country Program: 3.0

Total ODA: 4.4

Assistance to the Maldives will:

Support post-tsunami reconstruction, governance activities and education through the provision of approximately 14 development awards and around 5 volunteer program awards.


Country Program: 3.0

Total ODA: 5.4

Continue education support delivered through the provision of development awards and small scale environment and education activities through partnerships with Australian universities.

South Asia Regional

Regional Program: 4.9

Continue support to address priority regional development issues including adaptation for climate change, water and sanitation, HIV/AIDS, health, education and regional integration, delivered through key regional partners including UNAIDS, the World Bank and the Asian Development Bank.

Support improved governance and economic management through the public sector linkages program which enables Australian public sector agencies to provide training to their counterparts in the region.

Central Asia and the Middle East

Estimated ODA to Central Asia and the Middle East in 2010‑11 $273.8 million

The Australian Government is committed to international efforts to reduce conflict and improve humanitarian conditions in Central Asia and the Middle East. Australia is increasing its development assistance programs in Afghanistan and Pakistan and will provide ongoing support to Iraq and the Palestinian Territories.

In Afghanistan, our increased civilian support will focus on health, education, agriculture, rural economic development and humanitarian assistance. Australia will work to improve the capacity of the Oruzgan provincial government to deliver services to its people. Assistance will be devoted to strengthen and sustain Government of Afghanistan connections between Kabul and provinces, particularly Oruzgan. Australia will continue to provide strong support through the World Bank Afghanistan Reconstruction Trust Fund and other key multilateral partners. Increased bilateral assistance will be provided through AusAID's Development Assistance Facility for Afghanistan including capacity building, reconstruction and development activities.

In Pakistan, Australia's assistance will be strengthened through a multi-year Australia‑Pakistan Development Partnership. Programs will focus on supporting service delivery in health and education, improving rural livelihoods, and strengthening democratic governance. Ongoing humanitarian and reconstruction assistance will be provided to vulnerable and conflict-affected populations.

In Iraq, Australia's assistance will continue to focus on strengthening agriculture, improving basic services, improving governance, and supporting vulnerable populations. In the Middle East, our support aims to strengthen essential services for Palestinians while promoting democracy and good governance.

Key development indicators for Central Asia and the Middle East


GNI per capita
Access to water
(% of population)
Life expectancy (years) Adult literacy rate
(% of population)


980 90 66 54


n/a 22 44 28


n/a 77 68 74

Sources: Human Development Indices 2009, UNDP; and for GNI per capita - World Development Indicators Online, World Bank, 2009.

Table 7: Assistance to Central Asia and the Middle East in 2010‑11

Estimate 2010‑11 ($m)


Country Program: 55.4

Total ODA: 66.5

Assistance to Pakistan will:

Improve maternal and child health, including through the Government of Pakistan's National Maternal, Neonatal and Child Health Program.

Improve basic education by increasing the quality of and access to early childhood education and education sector reform in the North West Frontier Province and Baluchistan.

Support rural development through developing agricultural linkages between Pakistani and Australian institutions, improving rural livelihoods and providing postgraduate, undergraduate and short-term agricultural development awards.

Provide humanitarian relief and reconstruction assistance through support towards the reconstruction and rehabilitation of the conflict-affected Malakand Division and ongoing assistance for the reconstruction of schools destroyed during the 2005 earthquake.

Promote democratic governance by improving the capacity of civil society groups to demand better governance and service delivery and improving access to social services.


Country Program: 106.0

Total ODA: 123.1

Assistance to Afghanistan will:

Support basic service delivery in education and health by providing assistance to effective national government programs and targeted health and education activities in Oruzgan Province. Support will also focus on building service delivery capacity of the Afghan education, health, agriculture and rural development ministries through the provision of teacher training programs, development awards and technical assistance.

Build the capacity of the Afghan state at both the national and provincial level through the provision of experts to key ministries in Kabul and support for national programs in health, education, agriculture and rural development. In Oruzgan Province, support will drive the economic development of Afghanistan, build the capacity of the provincial government and deliver services to the local population and improve governance.

Improve agriculture and rural development through programs supporting improved agricultural production, food security, rural livelihoods and microfinance that create jobs and economic opportunities for rural workers.

Assist vulnerable populations by supporting delivery of emergency relief and humanitarian assistance to vulnerable communities. The program will also support human rights and mine action programs.


Country Program: 39.4

Total ODA: 46.5

Assistance to Iraq will:

Enhance agricultural productivity and food security through the provision of development awards, specialist short courses, in-country research and implementation of best-practice farming and soil management techniques and supporting the creation of rural businesses through microfinance.

Support improved governance and public sector capacity through short courses in public financial management, trade, human rights, public sector reform and training in quarantine and border control.

Assist the Government of Iraq to restore basic services by building emergency medical capacity, reducing the threat of landmines, improving water and sanitation and addressing gender based violence.

Support vulnerable populations particularly Iraqi refugees, returnees and Internally Displaced Persons through multilateral organisations.

Strengthen Australia's bilateral relationship with Iraq by supporting six Memoranda of Understanding with the Government of Iraq with the following ministries: Agriculture, Resources and Energy, Trade Cooperation, Education, Research and Training, Public Health, and Security and Border Control.

Palestinian Territories

Country Program: 27.5

Total ODA: 35.8

Assistance to the Palestinian Territories will:

Provide humanitarian and emergency assistance to Palestinian refugees and vulnerable people.

Improve food security, water and sanitation and income-generating opportunities for vulnerable populations through programs undertaken by Australian NGOs and UN agencies.

Strengthen service delivery particularly in the health and education sectors by supporting the Palestinian Authority's Reform and Development Plan.

The Caribbean and Latin America

Estimated ODA to the Caribbean and Latin America in 2010‑11 $39.8 million

The Caribbean

The new relationship between Australia and the 15 members of Caribbean Community (CARICOM) is based on building regional resilience and supporting small island states address the threats of natural disasters and climate change, to which many are vulnerable. It will also help improve the links between small island states in the Caribbean and the Pacific which face similar development challenges.

The centrepiece of the Memorandum of Understanding signed with CARICOM members by the Prime Minister in November 2009 is the new development assistance partnership which will provide $60 million over four years. This provides the framework for cooperation on climate change adaptation, renewable energy, disaster risk reduction, natural disaster management, food security, education, and other agreed areas. It will also help strengthen the people to people links between small island states in the Caribbean and the Pacific.

Latin America

In 2010‑11, Australia will expand its development cooperation program with Latin America. Australia will join the efforts of other donors to help Latin American countries progress towards achieving the MDGs and help address key development issues in the region.

Australia will work to develop the microfinance sector and support will be provided for sustainable agricultural development. Development assistance will help to build professional and institutional capacity in Latin American countries and strengthen people to people links. Over the next four years, up to 200 short and long term development awards will be made available to people from Latin American countries and we will begin to place Australian volunteers in Latin American countries from 2010‑11.

Table 9: Assistance to the Caribbean and Latin America in 2010‑11

Country/Program Focus

The Caribbean

Assistance to the Caribbean will:

Enhance cooperation on climate change adaptation and disaster management through support to the Caribbean Community Climate Change Centre and the Caribbean Disaster Emergency Management Agency in the areas of climate change adaptation for small island states, disaster risk reduction and natural disaster management.

Support regional economic development by promoting regional integration including support for renewable energy, trade facilitation food security and agriculture. Support will also promote the capacity and governance of microfinance and micro-enterprise activities.

Strengthen people to people and institutional linkages by promoting relationships and linkages between the Caribbean, Australia and the Pacific through the provision of development awards; the expansion of the Trinidad and Tobago Alliance for Sports and Physical Education development program; diplomatic training; placement of Australian volunteers and experts; and establishing education linkages between Australian institutions and the University of the West Indies and University of the South Pacific.

Latin America

Assistance to Latin America will:

Support inclusive and sustainable development to help Latin American countries progress towards achieving the MDGs.

Support microfinance, agriculture and capacity building by working in partnership with Latin American countries, multilateral organisations and other donors to support initiatives that reduce poverty.

Support development award opportunities for study at Australian institutions through Australian Leadership Awards and the volunteer program. The Direct Aid Program and the Human Rights Small Grants Scheme will also expand.

Cross Regional Programs

Cross regional programs include funding allocations for health and HIV, education and development awards, gender, infrastructure, environment and rural development, governance and for measures to improve overall development assistance effectiveness.

Table 10: Cross regional programs in 2010‑11

Estimate 2010‑11 ($m)

Cross regional programs 325.6

Includes funding allocations for sectoral, thematic, development awards and aid effectiveness program expenditure, predominately for activities across geographic regions.

Direct Aid Program 8.0

Advancing developmental objectives and addressing humanitarian hardship in developing countries administered through 54 overseas diplomatic posts to over 80 developing partner countries.

Human Rights Fund 6.5

Supporting a Human Rights Small Grants Scheme, the UN, Office of the High Commissioner for Human Rights, the Asia Pacific Forum of National Human Rights Institutions, and emerging human rights issues.

Enterprise Challenge Fund 4.0

Supporting business projects that demonstrate results benefiting the poor and future commercial viability, through grants awarded under open competition.

Australian Leadership Awards

Supporting social and economic growth through the development of leadership, partnerships and linkages for current and emerging leaders in the Asia Pacific region through development awards and fellowship placements with Australian host organisations.

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