Future directions
In 2005–06, the Australian Government will table a white paper that will examine the future directions of Australia’s aid engagement in our key development partnerships, namely Papua New Guinea, the Pacific, Indonesia and Asia, and provide a medium-term strategic blueprint for the aid program.
As a platform for the white paper, Australia’s aid will be guided by the strategic framework set out in the March 2005 Ministerial Statement Australian Aid: An Integrated Approach. Australia’s aid will focus on the Asia–Pacific region, particularly our immediate neighbours — a focus strongly supported by the Development Assistance Committee’s peer review of Australia’s aid program in December 2004. Drawing upon the skills and expertise of a wide range of Australian government agencies, and through long-term partnerships with regional neighbours, the aid program will develop integrated, practical solutions to development challenges.
The aid program will continue to be guided by five themes, which promote broad-based economic growth and further the objectives of the Australian aid program’s poverty reduction strategy:
- promoting improved governance across all areas of partner governments and strengthening democratic processes;
- assisting developing countries to access and maximise the benefits from trade and new information technologies;
- supporting stability and legitimacy through improved delivery of basic services;
- strengthening regional security by enhancing partner governments’ capacity to prevent conflict, enhance stability and manage transboundary challenges; and
- promoting sustainable resource and environmental management.
AusAID will continue to implement changes to its management of human and corporate resources. Further devolution of staff and programs to the field will enhance the responsiveness of the aid program. There will be a further opening up of the range of mechanisms and institutions used to implement the aid program. When it is judged most appropriate to use contractors, continued improvements to tendering and contracting including partnering approaches, new approaches to tender assessment, streamlining of contractual processes and further untying of aid, will increase partner country involvement in aid activities and further enhance aid effectiveness.
Over the next three years, Australia will pursue a number of priorities that will further enhance the focus, effectiveness and relevance of the aid program.
Build a closer partnership with Indonesia
Australia will deepen its already extensive relationships with Indonesia, to assist the rebuilding process after the Indian Ocean disaster and to meet long-term development challenges. Through the Australia–Indonesia Partnership for Reconstruction and Development, Australia will commit an additional $1 billion to Indonesia over five years. Under the ongoing program with Indonesia, Australia will expand its assistance in key areas, particularly economic and financial management, legal and judicial reforms, and education. Expanded people-to-people linkages will promote and sustain the aid program and build broader understanding and cooperation between the two countries.
Adopt a long-term and innovative approach to engagement with fragile states
Australia will continue to implement innovative approaches with development partners in our region, including Papua New Guinea, Solomon Islands, East Timor, Vanuatu, Fiji, Nauru, and other Pacific Island countries. Mechanisms such as the PNG Enhanced Cooperation Program and the Regional Assistance Mission to Solomon Islands will be continued. Through a new Fragile States Initiative, the aid program will synthesise whole-of-government contributions to research, evaluation and analysis, and boost Australia’s capacity to engage with fragile states at strategic and operational levels. In the Pacific, Australia will work closely with regional organisations and other donors to coordinate assistance and maximise impact. Australia will address long-term development challenges through persistent, robust, and sustained engagement.
Stimulate broad-based economic growth
Sustained and broad-based economic growth lies at the heart of the region’s and Australia’s prosperity and stability. A new Stimulating Growth Initiative, to be implemented through existing programs, will accelerate new approaches to growth. It will focus on improving market access, increasing participation of the poor in the formal economy, encouraging rural development and agricultural productivity, and improving the investment environment. To underpin the initiative Australia will work with key international institutions and organisations such as the International Finance Corporation, APEC, and ASEAN, and place a renewed emphasis on helping countries benefit from trade liberalisation.
Strengthen political governance and tackle corruption
Australia will expand its assistance to strengthen political governance and accountability in partner countries. Support for parliamentary and electoral programs will be consolidated. Anti-corruption activities will be expanded, and new partnerships will be built with relevant international and regional organisations such as Transparency International, the UN Office on Drugs and Crime, APEC and ASEAN. Through the promotion and protection of human rights, Australia will further build political governance and accountability in the region.
Supporting the Millennium Development Goals
In September 2005, the United Nations will review progress towards the Millennium Declaration, adopted by representatives from 189 countries at the Millennium Summit in 2000. The Millennium Declaration included a set of ambitious goals which focus on the major challenges facing developing countries — poverty and hunger, education, gender equality, child and maternal mortality, health, and the environment. These goals are what have come to be known as the Millennium Development Goals, or MDGs. The Declaration also included wide-ranging proposals on UN reform, global security, human rights and good governance.
In the Asia–Pacific region, significant progress has been made against key poverty indicators. The success of some countries such as Vietnam, a low-income country that reduced poverty by 37 per cent in 12 years, illustrates what can be achieved. However, progress has not been uniform. Serious challenges remain for some goals, for example, health and education in Melanesia.
Australia’s aid program is playing its part to support developing countries’ progress towards the MDGs by providing well‑targeted and effective aid. The aid program focuses on the essential building blocks for achieving progress towards the MDGs, namely governance, growth and stability, as well as providing direct assistance for health and education, water and sanitation, environment, and HIV/AIDS. Australia is also producing an MDG report in the lead up to the UN Summit, outlining how a partnership approach focused on improvements in economic policy, good governance, trade, debt, and aid effectiveness helps progress towards the goals.
Address transnational threats, particularly HIV/AIDS
The aid program will address, as a matter of priority, transnational threats such as HIV/AIDS, communicable zoonotic diseases such as Avian Influenza, illicit drugs, and transnational crime. This will include implementation of the $600 million HIV/AIDS strategy launched in July 2004; a further contribution of $50 million over three years to the Global Fund to Fight AIDS, Tuberculosis and Malaria; a new $2 million, three-year Asian anti-drug initiative; and a new $5 million, three-year program to strengthen the capacity of East Asian developing countries to respond to Avian Influenza and related diseases.
Contribute to stability and security
Australia will continue to work closely with key partner countries, including the Philippines, Iraq, and Afghanistan, to address issues of security and stability, mitigate the impacts of conflict, and assist in post-conflict recovery. In the Asia–Pacific, Australia will work with regional organisations such as ASEAN and APEC to strengthen economic integration and security. Additional funding of $45 million will enable Australia to provide further assistance to Iraq in 2005–06 and 2006–07.
Meeting the HIV/AIDS challenge
The incidence of HIV/AIDS in the Asia–Pacific is growing, with potentially grave social and economic impacts on the region’s developing countries. Currently, almost 40 million people globally are living with HIV/AIDS. Over eight million of these people live in the Asia–Pacific.
Australia is taking a central role in addressing this pandemic. At the Second Asia–Pacific Ministerial Meeting in Bangkok on 7 July 2004, the Minister for Foreign Affairs launched Australia’s international HIV/AIDS strategy, Meeting the Challenge. The strategy builds upon the $200 million HIV/AIDS initiative announced in 2001, and increases Australia’s commitment to $600 million by 2010. It aims to both reduce the spread of HIV/AIDS and mitigate the effects of HIV/AIDS, on people living with the disease and their communities.
Under the strategy, Australia will support multilateral action against HIV/AIDS through an additional contribution of $50 million over three years to the Global Fund to Fight AIDS, Tuberculosis and Malaria, and $4 million to UNAIDS in 2005–06, including $1 million to the Asia–Pacific Leadership Forum.
Bilaterally, Australia is implementing major HIV/AIDS activities in Indonesia ($35 million), PNG ($60 million), and China ($15 million), with a new activity planned for PNG later in 2005.
At a regional level, initiatives include:
- $10 million over four years for the Asia Regional HIV/AIDS Project and $12 million over four years for the Pacific Regional HIV/AIDS project.
- A sub-regional HIV/AIDS initiative, announced in December 2004, with Australia initiating collaborative studies on the epidemiological, social, economic and security risks posed by HIV/AIDS in PNG, Indonesia and East Timor.
- The AusAID HIV/AIDS Partnership Initiative ($5 million over three years), which will build the capacity of civil society organisations and professional associations in the Asia–Pacific through supporting partnerships with like-minded Australian organisations.
A number of NGO activities are also supported in Africa ($10 million) and Burma ($3 million).