Promoting regional stability and cooperation

Stability is a critical pre-determinant for growth and poverty reduction. New challenges to stability are emerging, most notably transboundary threats. These include avian influenza and other emerging infectious diseases, competition for resources and intensifying environmental impacts, and natural disasters. These threats deter investment, diminish legitimate and stable employment prospects, and have spill-over impacts on neighbouring countries. While ensuring stability is a core function of an effective government, the nature of transboundary threats is such that they can only be managed effectively through regional networks and cooperation.

At the same time, opportunities exist to enhance growth and streamline the costs of government through greater regional cooperation and integration. In Asia and the Pacific, the next ten years will see significant opportunities to boost trade and investment, and to pool resources for governance through regional cooperation. In the Pacific, Australia will continue practical support for Pacific Plan implementation, as well as support for key regional institutions including the Pacific Islands Forum and the Secretariat of the Pacific Community.

APEC 2007

Australia, including through AusAID, has provided significant assistance to regional organisations such as the Asia-Pacific Economic Cooperation forum (APEC) that promote regional integration and cooperation. As host of APEC 2007, Australia has a unique opportunity to make APEC a more effective instrument for regional cooperation, to advance economic integration and manage threats to human security.

The aid program will continue in 2007-08 to support Australia's agenda for APEC 2007 including through:

technical assistance and funding for capacity building projects, workshops and seminars with APEC developing member countries.
$10 million (over 2006-10) for activities specifically targeting avian influenza and pandemic preparedness and response.

East Asia Summit

Implementation of a $10.5 million package of support for East Asia Summit economic and trade priorities is underway. From 2007, a $5 million East Asia Summit Research Initiative will commission high-level research on East Asia Summit priorities including regional economic and financial integration. A $2.7 million East ASEAN Initiative will develop and implement pilot activities in the East ASEAN sub-region to promote private sector investment, infrastructure and security.

Regional trade negotiations

The aid program will also continue to assist developing countries to participate in regional and multilateral trading systems. As negotiations to conclude an ASEAN-Australia-New Zealand Free Trade Agreement intensify, Australia will also continue to support developing country participation in the negotiations through a Free Trade Agreement Capacity Building Facility ($1.5 million). Australia will also continue to provide trade-related technical assistance through the Trade Analysis and Reform Project ($5.6 million over 2002-2008), which helps Cambodia, Laos, Vietnam and Thailand participate in global trade liberalisation and regional economic integration.