MEDIA RELEASE
Released By:
Downer
AID BUDGET
HIGHLIGHTS
- $50 million increase over 1997-98 aid budget of
$1,430 million - an increase of 0.5 per cent in real terms - Gives effect to Better Aid for a Better Future the
Government's response to the Simon's Aid Review - New $10 million two year Youth Ambassadors for
Development program - Responds to the East Asian financial crisis and El
Nio - establishes a new $6 million Asia Crisis Fund and triples emergency
funds to $34 million - $14 million or 18 per cent increase in governance
and human rights- including a five-fold increase in funding for practical
human rights activities through the Human Rights Fund - $2 million or 13 per cent increase in funding for
core NGO program
In 1998-99 Australia's aid budget will total $1,480
million. This is a $50 million increase over the 1997-98 budget figure of $1,430
million. This represents a real increase of 0.5 per cent.
Australia's estimated ODA/GNP ratio will be
maintained at 0.27 per cent, well ahead of the latest average of donor countries
of 0.25 per cent. The aid budget is expected to represent 1 per cent of total
Federal Government expenditure in 1998-99. This compares favourably with other
developed nations, where the average, based on latest available figures, is only
0.88 per cent.
The 1998-99 Australian aid budget gives effect to the
new objective and direction set for the aid program in Better Aid for a Better
Future, the Government's response to the Simons Aid Review. The 1998-99 aid
budget will respond to urgent development needs, build strategic partnerships
and focus on five priority sectors of governance, health, education, agriculture
and rural development, and infrastructure. Australia's aid program will continue
to focus on our neighbours in the Asia Pacific region. The 1998-99 aid budget
will increase support for economic governance, financial sector reform and
employment generation - priorities identified by Better Aid for a Better Future
and highlighted by the East Asian financial crisis. The aid program will also
respond to the social impact of the crisis and provide relief to countries
affected by El Nio. Helping our neighbours resume sustainable growth and
improving the living standards of their people will benefit Australia by
creating a more stable region which will expand Australian trade and investment
opportunities, create jobs and improve the living standards of Australians.
Youth Ambassadors for Development
A new youth volunteer program, totalling $10 million
over two years, the Youth Ambassadors for Development program will be
established. This Program will enable around 500 young Australians to live and
work in the Asia Pacific, transferring valuable skills to host communities and
organisations.
Responding to the East Asian Financial
Crisis and El Nio
The current East Asian financial crisis is impacting
on social and economic development across the region. In addition, the current
El Nio has wreaked havoc on countries throughout Asia, the Pacific and Africa.
In 1998-99 the Australian Government will respond to these crises through:
- A new $6 million Asia Crisis Fund to provide
technical assistance to affected countries. Particular emphasis will be given
to assisting with economic governance and financial sector reform as well as
employment generation; - Funding for emergencies has tripled to $34 million
to enable Australia to respond quickly to alleviate the suffering of victims
of disasters such as droughts, cyclones and floods; - $20 million of the $30 million humanitarian
assistance package for Indonesia (announced earlier in May) will be provided
in 1998-99. This package will include food aid, medical assistance, drought
relief and support for employment generation activities; - Provide an additional $10.2 million to Thailand
over the next two years and continue aid past 2000-01 when Australia's aid was
due to cease; - New four year pledges of $236 million and $56
million for Vietnam and Laos respectively; and - All other East Asian countries' programs have been
maintained.
Governance and Human Rights
Funding for governance and human rights activities
will increase by $14 million or 18 per cent, to $82 million in 1998-99. This
includes a five-fold increase in the Human Rights Fund. The Fund provides
practical support for small, community-based projects in developing countries
that promote and protect human rights.
NGOs
Assistance to NGOs through the AusAID-NGO Cooperation
Program (ANCP) will increase by $2 million or 13 per cent. This takes the
increase in ANCP funding since the Coalition came to power to 47 per cent. These
increases reflect the important work carried out by NGOs and the Government's
commitment to a genuine partnership with NGOs.
PNG and the South Pacific
In 1998-99, $298.5 million will be provided to Papua
New Guinea in line with the Treaty on Development Cooperation. Programmed aid,
with a particular focus on education, health, law and order, infrastructure,
rural development and reconstruction in Bougainville will be $227.5 million. $71
million will be provided as budget support.
An additional $1.75 million will be provided to the
South Pacific on top of continuing bilateral and regional programs - key
features include:
- $0.75 million for the new South Pacific Regional
Environment Program (SPREP) headquarters, fulfilling the Prime Minister's
commitment at the South Pacific Forum in September 1997; - building back of the Solomon Islands program to
support the current Government's reform efforts; and - increased funding for policy and management reform
across the Pacific.
Africa and South Asia
Funding for Africa and South Asia will be maintained
in real terms in 1998-99. To maximise its impact, Australia's assistance to
Africa will be concentrated on the Southern African Development (SADC) countries
of South Africa, Mozambique, and Zimbabwe.
Commonwealth
Funding for Commonwealth organisations will increase
by $0.65 million to support the Trade and Investment Facilitation and Caribbean
Sports initiatives announced by the Prime Minister on 25 October 1997 at CHOGM.
Media contacts:
Innes Willox (Minister's office) 02 6277 7500 / 0411 414 695
Michelle Hardy (AusAID) 02 6206 4968 / 0417 680 590