Media Release
AA 03 023 - 13 May 2003
Australia's Aid Budget: Promoting Regional Stability, Security and Economic Growth
I am pleased to announce that Australia will provide $1.894 billion as Official Development Assistance (ODA) in 2003-04, an increase of $79 million over the 2002-03 Budget figure ($1.815 billion) and a real increase of over 2 per cent. This results in an ODA/GNI ratio of 0.25 per cent, again placing Australia above the donor average which, in the latest year available (2002), is 0.23 per cent.
Conflict and instability, including the threat of terrorism, impact directly on the development prospects of countries in our region, and therefore Australia’s national interest. The aid program, through support for conflict resolution and peace building, helps lay the foundations for sustainable development and poverty reduction.
The Australian Government’s aid program will continue to place a high priority on promoting development in the Asia Pacific region, with a focus on good governance and enhancing the capacity of partner governments to promote peace and manage non-military threats to security such as people trafficking and trade in illegal drugs.
AID BUDGET HIGHLIGHTS
A continuing commitment to supporting good governance, peace building and delivery of basic services to communities in the nations of the Pacific is demonstrated by an increase in total aid flows to $176 million – a real increase of over 4 per cent on the 2002-03 Budget.
A $7.5 million Peace and Security Fund will be established to provide flexible and targeted assistance to directly address needs in post-conflict societies such as the Solomon Islands. The Fund will also address the threat of terrorism and other aspects of trans-national crime that are of concern in the Pacific.
Total funding to Indonesia will increase by $30 million to $152 million to support improved governance, counter-terrorism and more effective delivery of basic services. Australia will assist Indonesia to improve the quality and accessibility of its mainstream education services, and improve health services as a practical memorial to the victims of the Bali bombing. Australia will also provide substantial support for Indonesia’s elections in April 2004.
Regional counter-terrorism measures in East Asia will receive additional funding from Australia. This includes activities in support of an APEC Leaders' initiative to halt terrorist financing, promote cyber security, and protect cargo, ships, aviation and people through improved border and customs controls.
Continuing substantial support will be provided to Papua New Guinea to improve economic and public sector management and maintain government services.
Funding of $132 million will be provided for international humanitarian, emergency and refugee programs, a significant increase on the 2002-03 aid Budget figure of $116 million. This will further enhance the aid program’s ability to respond quickly, flexibly and effectively to a range of humanitarian needs, within our region and around the world, especially those resulting from disasters and conflict.
With $100 million already committed, Australia will continue to play a significant role in humanitarian relief and reconstruction in Iraq, particularly in the area of agriculture.
Australia will also continue to respond to food needs in Africa during the current severe famine.
OTHER FEATURES
As part of its commitment to supporting developing countries take advantage of the opportunities offered by the Doha round of trade negotiations, Australia will increase trade-related assistance to developing countries by approximately 10 per cent.
Recognising that some 800 million people in the developing world are undernourished, Australia will pledge $1 billion over five years to programs and initiatives that enhance food security.
As part of this, in 2003-04 Australia will join with other key bilateral donors in making a multi-year commitment of $16.5 million to the Global Conservation Trust, to provide secure funding for flora gene banks to support food security and agricultural resources in developing countries.
To coincide with the International Year of Freshwater, an estimated $94 million will be provided in 2003-04 towards programs that enhance the sustainable management of water resources and services, with a focus on strengthening water planning and policy reform and improving access to water and sanitation services for the poor.
Media inquiries: Chris Kenny (Ministerial) +61 02 6277 7500 / Jo Elsom (AusAID) +61 02 6206 4960