Bilateral programs
Solomon Islands
| Country program estimate Estimated other ODA Estimated total ODA |
$98.0 million $148.8 million $246.8 million |
Solomon Islands has endured considerable challenges in the years following the tensions and coup of 2000. By early 2003 the country had many of the characteristics of a failed state — general lawlessness was growing, and effective state functioning was in real decline. In April 2003, the Solomon Islands Government formally sought assistance from Australia and other regional partners.
The Australian-led Regional Assistance Mission to Solomon Islands (RAMSI) highlights the challenges facing our developing country neighbours, as well as the outcomes that can be achieved by working through a whole-of-government partnership with other countries in our region. RAMSI focuses on three key areas: economic governance, rebuilding the machinery of government, and strengthening law and order. RAMSI is a new way of working together to achieve development solutions, through a more hands-on approach by Australia together with its regional partners. Under RAMSI, significant gains have been made in promoting political and economic stability, and returning to rule of law. The challenge for 2005–06 is to bed down these achievements by continuing to promote local leadership and ownership of change and reform, and developing the capacity of key Solomon Islands institutions.
Long-term economic recovery and growth in Solomon Islands will also depend on building sustainable rural livelihoods. Lack of income-earning opportunities for the 85 per cent of the population that live in rural areas has resulted in increased rural‑urban migration, youth unemployment, and broader issues of uneven development and inequitable distribution of resources. These inequities exacerbated the recent tensions. To address some of these issues, AusAID recently funded a rural livelihoods and agriculture assessment with the objective of developing a strategic framework for AusAID’s work in agriculture and rural development in Solomon Islands.
Rural livelihoods will be addressed through a new five-year $32 million package of community-level assistance to Solomon Islands. The Community Support Program will build on the achievements of the current Community Peace and Restoration Fund to strengthen community-level peacebuilding and development.
In the health sector, Australia will provide a further $9 million to help Solomon Islands improve basic health service delivery and tackle key new health issues, including HIV/AIDS. This additional contribution to health services will have a significant impact on the public health program and assist in the fight against diseases such as malaria.
The Regional Assistance Mission to Solomon Islands
In July 2003, the Australian Government initiated a Regional Assistance Mission to Solomon Islands. RAMSI was deployed to restore peace and security, and stabilise government finances, at the invitation of the Solomon Islands Government and under the auspices of the Pacific Islands Forum. It comprises personnel from Australia, New Zealand, Fiji, Tonga, Papua New Guinea, the Cook Islands, Kiribati, Samoa, Vanuatu and Nauru.
Together with Australian personnel drawn from the Australian Federal Police and the Departments of Foreign Affairs and Trade, Finance, Treasury, and Defence, AusAID staff have been helping the Solomon Islands Government restore law and order and rebuild the country’s institutions and economy.
Since the arrival of RAMSI, Australian aid has helped stabilise government finances, revitalised the courts and rebuilt the prison system. Health and education services are being provided. Public servants are being paid on time, and there are signs of economic recovery and the return of confidence and optimism.
Australia’s strengthened assistance program is building on our existing aid activities, which are aimed at:
- strengthening law and justice;
- improving economic management;
- maintaining access to basic services (especially health); and
- supporting peacebuilding, community and civil society development.
An important focus of RAMSI’s activities will be to ensure that development benefits the vast majority of Solomon Islanders who live in rural areas in the provinces. This will occur in cooperation with other donors such as the European Commission.
In 2005–06, RAMSI will focus on helping Solomon Islands implement a comprehensive reform agenda to improve the accountability and affordability of government. In the legal sector, significant assistance will continue to enable Solomon Islands to work through the backlog of pre-tension and tension-related trials.
Vanuatu
| Country program estimate Estimated other ODA Estimated total ODA |
$24.0 million $10.1 million $34.1 million |
Vanuatu faces issues of limited economic growth and policy instability, and rapid population growth continues to undermine real growth and development prospects. It remains one of the poorest countries in the Pacific, with 40 per cent of the population living in poverty.
Following a period of political instability, on 17 December 2004 the new Vanuatu Government of Prime Minister Ham Lini and the Australian Minister for Foreign Affairs signed a joint Good Governance Statement of Principles which reinforced Vanuatu’s commitment to good governance, transparency and democracy — necessary foundations for Vanuatu’s growth and stability.
In March 2005, Australia and Vanuatu agreed on a new joint strategy (2005–10) for development cooperation. The new strategy will support long-term stability for Vanuatu through three objectives: improved governance, in particular strengthening the management, accountability and service delivery roles of central and line Ministries and provincial authorities; raising the productive capacity of ni-Vanuatu, especially young people, to improve economic growth, employment and income generation; and improving the quality and delivery of essential services to populations in greatest hardship, particularly health and education.
To raise productive capacity, a range of activities will be implemented to strengthen the enabling environment for growth in the most productive sectors (agriculture and tourism), facilitate government and private sector partnerships to promote growth, and build more effective and innovative partnerships with communities so that they can better deliver essential services.
The program will be underpinned by whole-of-government engagement through provision of Australian advisers and building of institutional linkages in key governance areas, particularly the law and justice sector. Australian activities will be coordinated with those of other donors, particularly New Zealand and France.
Fiji
| Country program estimate Estimated other ODA Estimated total ODA |
$19.5 million $11.0 million $30.5 million |
Australia is working with Fiji to reduce the threat of social instability arising from poverty and inequality between different social groups, and rebuild confidence for stability and growth, in line with Fiji’s national Strategic Development Plans. In 2004 Australia and Fiji agreed to an updated country strategy, which will focus firstly on governance, including law and order, the rule of law, strengthening civil society, and promoting investment and economic growth; and secondly on the effectiveness, transparency, equity of service delivery, and community participation in government health and education services.
The Fiji program will build the capacity of government, and also seek to deepen its engagement with civil society including NGOs and local communities. It will target the quality and delivery of services to vulnerable groups, particularly in rural areas and, where needed, in urban areas. The program will also build the capacity of NGOs in disaster mitigation, preparedness and response. To further these objectives, a new governance program is expected to commence in 2005–06.
Activities in Fiji will be integrated with Pacific regional programs in the law and justice, governance, health and education sectors. Whole-of-government engagement will be promoted through the building of linkages with relevant Australian government agencies.
Nauru
| Country program estimate 2005–06 additional ODA Estimated other ODA Estimated total ODA |
$0.6 million $12.0 million $4.3 million $16.9 million |
Nauru is grappling with a legacy of mismanaged resources and substantial accumulated debts. It could once rely on its phosphate reserves, but that resource has been largely depleted. With limited revenue, the Nauru Government has struggled to provide basic services. Australia has deepened its aid program in response to the severity of Nauru’s economic problems. Australia is helping Nauru to implement tough but necessary reforms that will enable the Nauru Government to manage Nauru’s long-term expectations and adapt to significantly different livelihoods.
Australia’s assistance is being provided under a February 2004 Memorandum of Understanding. Under this agreement, senior Australian officials from the Department of Finance have helped Nauru progress its economic and financial reforms, assess its assets and liabilities, establish budgets, and introduce fiscal discipline. Advisers from the Australian Federal Police and a Special Police Adviser have worked with the Nauru Police Force to increase skills, accountability and professionalism in the force and reduce the backlog of prosecutions. Australia has also helped Nauru address short-term food security and nutritional issues, refurbished Nauru’s courthouse, helped rebuild schools, provided vital medical equipment, and provided support for essential infrastructure and utilities, including power and water.
In preparation for the expiry of the current Memorandum of Understanding in June 2005, the Australian Government is working with the Nauru Government to identify long-term options for assistance and establish a sustainable long-term development strategy.
Other Pacific countries
Australia’s assistance to Samoa will continue to focus on strengthening public administration, improving education and health standards, and ensuring effective delivery of basic services. Australia will also assist Samoa to improve opportunities for employment and investment in the formal and informal sectors.
Australian assistance to Tonga will help build national economic and financial capacity. It will stimulate opportunities in the financially important fisheries sector and work to improve conditions among at-risk groups at national and community levels. The construction of the Nuku’alofa solid waste disposal facility will contribute to improved health and environmental conditions.
In Kiribati, Australia will continue to focus on better educational outcomes through improving the quality, relevance and efficiency of basic education services. Australian assistance will also help to improve governance through better public sector management, particularly in financial management, public sector reform and community policing.
A trust fund for Niue, which Australia is supporting, is in place. In Tuvalu, Australia will continue to support the operation of a successful trust fund, in addition to funding activities in the education sector. Australia will assist the Federated States of Micronesia with border security as well as tertiary scholarships for study in Australia and the Pacific region. Scholarships will also be offered to the Marshall Islands, Palau and Tokelau.
Australia will work to harmonise approaches and funding mechanisms with other key donors in the Pacific region, in particular New Zealand. In the Cook Islands, a pilot of a joint Australia–New Zealand development cooperation program (through which Australia has devolved responsibility to New Zealand) is being implemented.