Australia’s development aid increases after years of cuts

Australia’s official development assistance (ODA) will stand at AU$4.211 billion (over US$3.2 billion) in 2020-2021, rising by 9% above the budget for 2019-2020. This is the first increase in the country’s development aid budget since 2013.

However, officially, the government announced that ODA would stand at AU$4 billion, that is, less than the 4.044 billion provided in 2019-2020. The increase to 4.211 billion resulted from a supplementary COVID-19 response package for the Pacific and Timor-Leste that the government has recently announced. For reasons that remain unclear, the package will not be treated as ODA.

Commenting on the move, Stephen Howes, the director of Australia’s independent think-tank Development Policy Center, said the government presented the supplementary aid package separately from the ODA budget in order “not to be attacked for increasing aid at this time of domestic economic need” although he noted that “given the needs in our region it’s a good thing we have increased aid”.

Although the government has not as yet announced how this supplementary package will be distributed, it has made it clear that it will be channeled via the Department of Foreign Affairs and Trade in the form of grants to be offered to Australia’s ODA beneficiaries.

Concerning the announced AU$4 billion budget, the Pacific region will receive the highest amount of funds ever – AU$1.44 billion. The largest amount, AU$491 million, will be allocated to Papua New Guinea although this is a decrease from the AU$512.3 million it received in 2019-20. At the same time, small island developing countries in the Pacific such as Kiribati, Nauru, and Tonga will see their development aid increasing. Regional Pacific projects also increased to AU$43.2 million compared to the previous budget of AU$274.7.

On the other hand, aid for Southeast and East Asia will remain virtually at the same level as 2020, whereas South and West Asia will see a 27% decrease in Australia’s ODA. Meanwhile, the Middle East and Africa will see ODA decreasing by 48%.

This distribution reflects the priorities of Australia’s foreign policy goals and seeks to undermine China’s growing influence in the Pacific according to Philip Citowicki, a former advisor and aide on foreign affairs to the Australian Government.

See also: Australia’s development aid focused on health, education, poverty

Australia’s development aid has fallen from AU$5.5 billion in 2013, when the incumbent coalition came to power, to AU$4 billion in 2019-2020. The trend is said to be in tune with the will of the Australian population. A 2018 government survey showed that 80% of respondents were against an increase in foreign aid and apparently this stance has not since changed. Australia fails to meet the target for healthy countries of 70 cents of foreign aid for every $100 earned, with Australia having spent some 21 cents.