To promote sustainable development in designated countries by assisting their governments and regional organisations through delivering the highest quality program of development cooperation.
Most of Australia’s bilateral aid is provided within a country programming framework and is planned and delivered on a government-to-government basis. Country programming aims to match recipient country interests and needs with Australia’s interests and capacity to assist. Strategies for significant individual country programs are developed in consultation with recipient countries, and other donors, and detailed country papers are published by AIDAB. Additional assistance flows to individual countries through multi-country and regional programs, and through a range of multilateral organisations to which Australia contributes.
Australian aid is predominantly focused on Asia and the Pacific, reflecting Australia’s aid commitment to the region as well as broader economic and political interests. The regional focus of the program also ensures that bilateral assistance can be appropriately targeted to meet the identified needs of recipient governments, and that it can be effectively delivered. Australia did, however, provide significant assistance for economic and social development, as well as emergency assistance, to countries outside the immediate region.
Indicators of the effectiveness of the Country Program sub-program are the extent to which:
Consultation with development partners has yielded positive outcomes;
The sub-program matches Australia’s interests and expertise;
The sub-program has improved the living conditions of people in partner countries, including vulnerable groups such as women and children;
Australia’s foreign policy interests have been achieved through fostering a positive Australian identity in the region and a secure and prosperous regional environment well-disposed towards Australia; and
Australia’s trade and commercial interests have been improved through returns flowing to Australia from program activities and offering opportunities for demonstrating Australian know-how.
Papua New Guinea (PNG) continued to be the single largest recipient of Australian aid in 1993-94. PNG received $316 million, just under one quarter of the entire Australian aid program. This reflects the significance Australia attaches to its relationship with PNG. Program and budget support totalled $300 million, of which $244 million was provided as untied budget support and $56 million as jointly programmed aid. A further $16 million was provided as retirement benefits for officials who were employed by the Australian Government prior to PNG’s independence.
Following a number of bilateral discussions during 1991-92, the Australian and PNG Governments approved in principle a seven-year straight line reduction of budget support to zero from 1994-95 to 2000-01 and a corresponding increase in jointly programmed aid to a target expenditure level of $300 million in 2000-01. The increase in programmed aid is in keeping with the maturing of Australia’s relationship with PNG, and will sharpen the focus and improve the impact of the development cooperation program.
The immediate challenge is to prepare activities for implementation in later years as programmed aid expands. To this end, a series of six sector studies have been undertaken by sector working groups, chaired by PNG and comprising representatives from PNG central and line agencies, AIDAB, the AIDAB Centre for Pacific Development and Training (ACPAC) and Australian consultants. Studies on the education and training, health, renewable resources (which includes agriculture, forestry, fisheries and the environment), infrastructure, and law and order sectors were completed in 1993-94, and a study of the private sector is expected to be completed during 1994-95. The completed sector studies were endorsed by the PNG Government in June 1994. These will provide the basis for long-term program development.
Program expenditure during 1993-94 was focused particularly on the education, law and order and rural sectors. Some 800 students were supported to study in Australia during 1993-94. Activities in the law and order sector included institutional strengthening programs for the Royal PNG Constabulary and corrective services institutions.
Health is becoming an increasingly important sector. A major population and family planning project, co- financed with the World Bank and the Asian Development Bank, commenced during 1993-94. Australia also provided $1.6 million to support the Child Survival Program, a major initiative seeking to revitalise maternal and child health programs including, in particular, immunisation programs in rural areas of Papua New Guinea.
In early 1994, the Government offered PNG an additional $10 million to be provided during 1994 and 1995 for assistance for restoration of services and infrastructure in Bougainville. During 1993-94, Australia provided $5.5 million (of which $1.5 million was from the $10 million package) for a number of programs in the health, education and infrastructure sectors in support of the PNG Government’s Bougainville Restoration Program.
PNG Prime Minister Wingti visited Australia in early February for bilateral consultations and emphasised PNG’s priorities for Australian assistance in infrastructure and education. In April AIDAB Director General Philip Flood visited PNG to discuss progress in meeting these priorities. An implementation workshop involving PNG and Australian officials was held in June in Port Moresby, at which activities and delivery mechanisms for Australian assistance over the coming two to three years were considered.
The PNG program is managed by the Papua New Guinea Branch, drawing where necessary on technical advice and support from ACPAC in Sydney. In line with the increasingly important role of the Port Moresby post as the level of jointly programmed aid increases, a new position of Minister-Counsellor for Development Cooperation was created during 1993-94.
Australia is committed to working with the Pacific island countries to ensure a secure and prosperous future for the region. The South Pacific continues to be an important priority for Australia’s aid program. Australia is consistently the largest donor to the Pacific island countries. In 1993-94, Australian assistance to the South Pacific through country and regional programs grew in real terms to $99.0 million. A further $24.6 million in other forms of aid, such as emergency assistance, was also provided to the South Pacific in 1993-94-taking total Australian aid to the region to $123.6 million, or almost 9 per cent of the aid program.
Australia’s aid program to the South Pacific has helped many of these countries deal with problems such as geographical isolation, tiny resource bases, fragile ecosystems and recurring natural disasters that are common to many small island states. However, despite relatively high levels of aid, the overall economic performance of many of the Pacific Island countries has been disappointing. Slow economic development, combined with the over-exploitation of natural resources, unsustainable population growth rates and rapidly rising community expectations has led to a range of social and economic problems in the South Pacific. Already, in some areas of the region, there has been permanent environmental degradation and an apparent decline in health and general living standards. The problems confronting many of the Pacific island countries are being compounded by declining international interest in the region with the end of the Cold War.
Change is essential if the South Pacific region is to realise its potential. The need for Australia and the Island governments alike to adopt policies that will encourage the efficient and sustainable use of resources was a key theme running through a policy speech by Mr Bilney on 15 June 1994 that was broadcast to the region. The Global Conference on Sustainable Development in Small Island States in April 1994 also helped focus international attention on the need for change if island countries, such as those in the South Pacific, are to achieve a sustainable development path.
While Australia does not seek to impose its own solutions to the urgent challenges facing the region, our aid program plays a key role in assisting countries of the region to themselves take greater responsibility for putting into place policies and programs needed to achieve sustainable economic development. This is required to attract foreign investment and capitalise on the opportunities presented by the rapid growth of the Pacific rim economies and the successful conclusion of the GATT Round.
Australia’s aid program is increasingly encouraging economic reform in the Pacific island countries. Regular policy dialogue conducted at ministerial level, and through high-level aid consultation with partner governments and regional organisations such as the South Pacific Forum Secretariat and the South Pacific Commission, has reinforced this theme. Australia’s policy dialogue with the South Pacific countries was underpinned by substantially revised aid strategies, published during the year, for Fiji, Kiribati, Solomon Islands, Tonga, Tuvalu, Vanuatu and Western Samoa. Economic and sector reports by AIDAB and multilateral agencies make an important contribution to informing policy development.
Institutional strengthening, private sector initiatives and training and education also continued to be emphasised as a means to build the capacities necessary to implement the policy reforms that will be required. This included both in-Australia training and support for the University of the South Pacific and other regional training.
Unsustainable population increases in many of the Pacific island countries will have serious implications if left unaddressed. On current rates of growth, for instance, populations in many of these countries could double by the year 2010. Reflecting this, Australian support for family planning and population programs in the South Pacific trebled to almost $4 million in 1993-94. These reflect an integrated approach which takes into account the need to increase the status of women. Reproductive and maternal and child health issues also continue to be a priority.
Environmental issues continued to be a central concern of Australia’s aid program to the South Pacific in 1993-94. Australia has emphasised that the adoption of solutions to economic problems based on expediency rather than sustainability has led to the over-exploitation of forests and fisheries by outside parties. Through our aid program, we have been active in supporting cooperative regional approaches that have helped to ensure the islands gain greater returns from the sustainable harvesting of their resources. There have been several notable success stories in this regard. One example, for instance, is Australian assistance to the South Pacific Forum Fisheries Agency. This has helped that organisation to renegotiate a multilateral fisheries agreement with the United States in 1993-94. By ensuring a fair price for access to their fisheries resources, this agreement will return at least $20 million per year to the countries of the region. Funding to the South Pacific Regional Environment Program continued.
Australia introduced a new development cooperation program with Nauru in 1993-94. This will assist in rehabilitating and restoring mined-out phosphate land. Under the terms of the Compact of Settlement of the International Court of Justice case, Australia will provide Nauru with $2.5 million per annum, indexed for inflation, for each of the next 20 years. AIDAB Director General Philip Flood, visited Nauru, as well as the Solomon Islands and Vanuatu, in April 1994.
AIDAB Centre for Pacific Development and Training
In managing aid to the Pacific region, AIDAB receives technical advice and support from the AIDAB Centre for Pacific Development and Training (ACPAC), based at Middle Head in Sydney. ACPAC provides specialist support for AIDAB’s development cooperation program through:
the provision of technical advice for projects and programs in the Pacific (including PNG); and
the delivery of short course training in-country and at Middle Head.
These program support activities are provided by two teams: the Pacific Regional Team (PRT) and the Development Training Group (DTG).
The Pacific Regional Team advises AIDAB country program managers on the design and appraisal of aid program activities in Papua New Guinea and the small island states of the South-West Pacific. The team has expanded, with the recruitment of additional advisers for Papua New Guinea, to assist with the transition to jointly programmed aid in Australia’s PNG program. The PRT manages a number of contracted experts who contribute to the technical design of Australian aid projects through feasibility and appraisal studies. During the year contracts for 101 consultancies were managed by PRT.
The Development Training Group continues to offer a range of training programs, both in-country and in Australia, to recipients of Australian aid in the Pacific, Asia, Africa and the Indian Ocean. These programs are primarily designed to improve public sector management in recipient countries but trainees are also sometimes drawn from the private sector and from local non-government organisations. The number of courses delivered during the year, both in-country and in Australia, increased slightly compared with the 1992-93 period. In 1993-94, the DTG managed nine courses at Middle Head and 34 in developing countries throughout the Pacific. DTG courses complement training available through other bilateral programs. Core courses delivered included Program Planning and Management for Women in Development, Community Strategies for Mental Health, and Project Management for Environmental and Wildlife Conservation. The DTG also manages training and management experts who conduct sessions within courses. Last year, contracts for 66 consultants were let and managed by the group.
ACPAC continued its involvement with the Zoological Parks Board of New South Wales in an innovative joint program, the Australian Conservation Training Initiative (ACTI). As one element of ACTI, ACPAC managed a six week wildlife management course during the year for AIDAB-sponsored students from the Pacific, South-East Asia, Africa and the Indian Ocean region.
ACPAC is regularly used by AIDAB as a venue for high-level consultations with recipient countries from South-East Asia and the Pacific.
Country program assistance to South-East Asia totalled $224.9 million in 1993-94. Further assistance flowed to the region through the Development Import Finance Facility (DIFF), the Australian Centre for International Agricultural Research, the Australian Sponsored Training Scholarships, the Australian Development Cooperation Scholarships, AIDAB funding of Australian non-government organisations and other minor programs.
Sustained economic growth in many countries of South-East Asia has led to changes in the nature of Australia’s aid relationship with these countries. South-East Asian country programs increasingly emphasise the development of closer economic relations and the pursuit of mutual benefits, at the same time as promoting social and economic development.
Indonesia
Country program assistance to Indonesia in 1993-94 totalled $61.9 million. The program focused on five main sectors: education and training, agriculture and rural development, infrastructure, environmental management and health. Special consideration is given to Eastern Indonesia, where the pace of development has been slower than in most of the rest of the country.
In the environmental management sector, a pollution control project which aims to assist Indonesia to improve its environmental protection capability commenced in 1993-94. AIDAB is also developing sizeable activities in Indonesia in the population and family planning sector, including a major (around $15-20 million) family planning and safe motherhood project in eastern Indonesia and expansion of family planning activities in Lombok funded under the regional program.
In East Timor, Australia is funding an aid program of around $30 million over the five years 1991-92 to 1995-96. Expenditure during 1993-94 was approximately $3.7 million. Projects in water supply and sanitation, veterinary services and agricultural and regional planning continued during 1993-94. A rural development project will commence in 1994-95.
The Philippines
Country program assistance to the Philippines totalled $38.0 million in 1993-94. The sectoral focus of the program is on human resource development, agriculture and natural resource management, energy, social infrastructure and community development.
Since 1989-90, the Australian bilateral program has been based on a five year commitment under the Philippines Assistance Program (PAP) to maintain allocations at real levels with an additional $20 million over four years, conditional on improvements in Philippine aid policy and management. The PAP was established by the international donor community in 1989 to support the former Aquino administration’s development activities and was the major donor coordination forum for the Philippines. While Australia’s commitment to the PAP was completed in 1993-94, additional funding for health activities and the Private Sector Linkages Program will ensure that previous funding levels for the Philippines country program are increased by 6 per cent in real terms during 1994-95. The planned health activities include a women’s health and safe motherhood project to be cofinanced with the World Bank, the Asian Development Bank and other donors.
Thailand
Country program assistance to Thailand totalled $25.3 million in 1993-94. The nature of Australia’s development cooperation program with Thailand is evolving in the light of Thailand’s rapid economic growth and considerable development achievements. A key focus of the Thailand program in 1993-94 was the development of economic linkages between Australia and Thailand. Particular emphasis was given to activities in the energy, education and training, agriculture and rural development, natural resource management, transport and construction sectors.
The Mekong River Friendship Bridge, a $42 million joint project between Australia, Thailand and Laos, was opened on 8 April 1994. The opening ceremony was attended by Australia’s Prime Minister, the King of Thailand, the President of Laos, and the Prime Ministers of Thailand and Laos. The bridge is the first road link between Thailand and Laos across the Mekong River and is expected to yield significant economic benefits to both Laos and Thailand. Completed ahead of schedule and under budget, it is also a showcase in the region for Australian capabilities in major infrastructure design and technology transfer.
The country program with Thailand also focuses on meeting the basic human needs of the Thai people. A new four-year community assistance program commenced in 1993-94, providing direct assistance to Thai NGOs for community-based development projects aimed at raising the living standards of poorer sections of Thai society, particularly in rural areas.
HIV/AIDS is recognised as a key factor affecting Thailand’s social and economic development. AIDAB provides assistance to Thailand to support community-based approaches to the prevention and control of HIV/AIDS, and the care of those already infected. During 1993-94, a new AIDS prevention and care program commenced in Chiang Mai to support initiatives in a range of areas including education, counselling, acute care and research.
Vietnam
Country program assistance to Vietnam totalled $36.4 million in 1993-94. During the Prime Minister’s visit to the region in April 1994 he announced that Australia would provide development assistance to Vietnam of $200 million over the period 1994-95 to 1997-98. This represented a doubling of the previous pledge of $100 million over the period 1991-92 to 1994-95. The strategy for the Vietnam country program emphasises mutually beneficial long-term economic and commercial linkages while also promoting social and economic development. Major sectors are education and training, infrastructure, health and natural resource development.
The first intake of Vietnamese students supported by the bilateral aid program arrived in Australia during the year. A program of short courses was also established in areas such as economics and management, targeting key people involved in managing Vietnam’s transition to a market economy. An ‘Australia Centre’ providing English language training was planned, and will be established during the next financial year.
Australia provided technical assistance for the design and construction of the 500 KV North-South Transmission Line Project, Vietnam’s highest priority infrastructure project.
Projects in the health sector focused on improving provincial health services, malaria control, and prevention of iodine deficiency disorders.
Australia also fulfilled a long standing commitment to contribute $5 million to Vietnam’s International Monetary Fund (IMF) arrears, following the United States’s decision in July 1993 to withdraw its veto on Vietnam’s access to the IMF.
Laos
Country program assistance to Laos totalled $14.5 million in 1993-94 and centred on the Mekong River Friendship Bridge, which was opened in April. The associated border, customs and immigration control facilities on the Lao side of the Mekong bridge were also completed prior to the opening ceremony.
During his visit to Laos in April for the opening of the Mekong Bridge, the Prime Minister announced a four-year $47.5 million commitment to Laos to commence in 1994-95. This was the first time a multi-year pledge has been made to Laos, a longstanding development cooperation partner of Australia.
Future assistance will focus on land titling, physical infrastructure, education and health. Assistance in agriculture and community-based development will also continue.
Cambodia
Country program assistance to Cambodia totalled $16.8 million in 1993-94. Following the elections of May 1993, the program is shifting its focus from humanitarian assistance delivered through NGOs to government-to-government development cooperation. Senator Evans announced in April during his visit to the region that Australia would provide $92 million in development assistance to Cambodia over the period 1994-95 to 1997-98 which almost doubled the previous commitment of $49 million announced in 1991.
Australia is an active participant in the International Committee on the Reconstruction of Cambodia (ICORC), the donor group which arose out of the Paris Peace Accords with the sponsorship of the Japanese government. AIDAB Director General, Philip Flood, attended the ICORC meeting held in Paris in September 1993 and the Minister for Development Cooperation and Pacific Island Affairs, Mr Gordon Bilney, attended the ICORC meeting held in Tokyo in March 1994.
Through the United Nations, Australia provided budget support of $1.5 million to assist the new administration through its early months. Australia also provided $2.5 million towards the payment of Cambodia’s arrears to the IMF.
Australia provided $2 million in 1993-94 in support of the Cambodian Mine Action Centre, the Cambodian Government Statutory Authority responsible for the de-mining effort. Assistance continued to be provided through Australian NGOs under the Special Assistance Program for reintegration of returnees from the Thai border.
Malaysia
Reflecting the success of Malaysia’s development, Australia’s development cooperation with Malaysia is being scaled down significantly, prior to being phased out altogether. The Malaysia bilateral program is placing increasing emphasis on strengthening economic links between Australian and Malaysia through the Private Sector Linkages Program. The size of the bilateral program was $5.1 million in 1993-94 although total Australian development assistance is estimated at $25.2 million including DIFF expenditure of $9.3 million. Due to changes in the international rules relating to mixed credits, Malaysia is expected to be no longer eligible for DIFF in the near future.
Two of the three bilateral projects were completed during 1993-94 and the third will be completed by 1995. The last intake of students under the Malaysia-Australia Scholarship Scheme was in January 1994. It is expected that a large number of full fee-paying Malaysian private students will continue to study in Australia.
Burma
Australian bilateral assistance to Burma remained suspended, because of concerns over the lack of progress towards the restoration of human rights. Ten displaced Burmese students who were in Thailand are currently funded by AIDAB to study in Australia. Under an agreement reached with the Thai Government, the students were chosen from those Burmese who left Rangoon post-1988. A second intake of students will commence in 1994-95. A small indirect humanitarian HIV/AIDS program delivered through international NGOs commenced within Burma during the year. This will be continued in 1994- 95 and a program for maternal and child health will also commence.
South-East Asia regional programs promote both regional cooperation in development and a closer working relationship between Australia and our neighbours in South-East Asia. Expenditure under these programs in 1993-94 was $19.4 million. Of this amount, $16.0 million was provided to support initiatives mainly in the areas of environment, health (including HIV/AIDS), population, narcotics control and support for regional institutions delivered through UN agencies, Australian NGOs in partnership with local NGOs, the World Bank and the Asian Development Bank.
Expenditure on the ASEAN-Australia Economic Cooperation Program (AAECP) was $7.2 million in 1993-94. The current program aims to facilitate cooperation between Australia and ASEAN in sectors such as science and technology. ASEAN and Australia have agreed on a program for AAECP Phase III, which will commence in July 1994.
Country programs outside the South-East Asian and South Pacific regions tend to be narrower in the range of activities supported. However, additional assistance goes to these countries through global programs such as DIFF, student programs such as the Australian Development Cooperation Scholarship scheme (ADCOS), and agricultural research activities. Bilateral aid provided through country programs to these countries totalled $100.3 million in 1993-94.
China
Bilateral assistance channelled through the Australia-China Technical Cooperation Program totalled $19 million in 1993-94. This program balances mutual benefit objectives appropriate to China’s level of development (e.g. management development, environmental management and human resources development projects in key sectors) with agricultural and community development activities, particularly in the poorer western provinces.
In 1993-94, AIDAB played an important role in the Government’s broader strategy to position Australian companies to win contracts under a $1 billion China-World Bank project to upgrade grain handling and distribution facilities. In October 1993, AIDAB Director General, Philip Flood, visited Beijing and Shanghai to view current, and discuss future development cooperation programs
In 1994 a regional wool initiative commenced, initially targeted on the wool processing industry in China. The project will improve the ability of the Chinese industry to process Australian wool through technical consultancies to Chinese mills and improvement of training in wool technology in Chinese textile training institutes.
Mongolia
Australia’s development cooperation program with Mongolia commenced in 1992-93. Expenditure in 1993-94 totalled $750 000 and covered components of a management development project sponsored by the United Nations Development Programme, awards under the Australian Sponsored Training Assistance Scholarships (ASTAS), funding under the Small Activities Scheme and a training course on sources of external assistance and finance.
Country program assistance to South Asian countries totalled $37 million in 1993-94. Bangladesh received the largest single allocation, at $14.6 million. India and Pakistan received a combined total of $15 million. Smaller amounts were allocated to Nepal, Sri Lanka, and Bhutan. Indian Ocean Island countries received $4.2 million and $3.9 million was provided to Palestinians in the Occupied Territories in support of the peace process.
Assistance to Bangladesh comprised food aid for food-for-work and vulnerable groups (mainly women and children) development projects which Australia cofinances with the World Food Programme and other bilateral donors. Support for the Population and Health Project which Australia cofinances with the World Bank and other donors was continued. A new addition to the Bangladesh program was a project on wheat research which is intended to further food security.
The India program has been designed with the original objective of undertaking developmental activities of high priority and in which Australia has internationally competitive technologies. Accordingly, it has provided training to the steel industry and has prepared projects such as coal washery techniques, coal mining, smelting of copper and related metals, telecommunications and fish processing to commence in 1994-95 for implementation over the next few years.
The Pakistan program includes assistance in geological surveys, particularly for gold in the northern areas and North West Frontier Province, and in dairy technology. Projects are being prepared in fibre optics training, and in institutional strengthening for the Punjab Environmental Protection Agency, for implementation in 1994-95. Assistance is also being offered to Pakistan through a food-for-work project for watershed management in the north-east.
Country program assistance to other South Asian countries totalled $10.7 million. Assistance to island states of the Indian Ocean totalled $4.3 million.
In October 1993, Ministers Evans and Bilney jointly announced a $15 million development cooperation program over three years for assistance to Palestinians. The aim of this contribution is to help secure peace in the Middle East following the agreement between Israel and the Palestine Liberation Organisation. Australia’s assistance is being provided as part of the international community’s supportive response to the peace process. Expenditure under this program was $7.5 million in 1993-94.
Africa
Australian aid to Africa was $101.4 million in 1993-94. This included $36.3 million in direct development assistance, for food security, community development, agriculture, health, human resource development and good governance. Highlights of the program were activities designed to help meet the special needs of women and children and those affected by HIV/AIDS. The Australian Government relied on Australian NGOs and multilateral agencies including the Commonwealth Secretariat and UN organisations such as UNICEF to deliver this assistance.
Mozambique continued to be Australia’s largest aid recipient in Africa. Australian development assistance to the Horn countries of Ethiopia and Eritrea was increased in 1993-94 in recognition of the need to assist these governments to rebuild their countries after decades of war and devastation.
Under the Special Assistance Program for South Africans disadvantaged by apartheid, Australia provided approximately $7 million in 1993-94. The main objective of the 1993-94 program was to assist the transition to democracy. This included support for South Africa’s first democratic elections, assistance in economic policy and planning, and media training. The Government announced in the May 1994 Budget that Australian assistance to South Africa would increase to $30 million over three years.
Education and training programs
Human resources development remained an important priority in Australia’s development cooperation program during 1993-94. With around 20 per cent of the overseas aid budget, or around $280 million being devoted to this sector, Australia’s high level of commitment to education and training reflects a belief that human resources development is a critical factor in sustainable development.
Expenditure on bilateral and cross-regional training programs in 1993-94 amounted to $141.2 million, with the bulk being provided for in-Australia training. Of this amount, cross-regional education and training programs received $66.1 million. This comprised $62.2 million for student scholarships, $2.6 million for student subsidies and $1.3 million for training support. A significant amount of in-country, in- region and Australia-based training is also provided in connection with bilateral projects. Project aid for institution-strengthening and capacity building in the education and training sector within developing countries, provided as a component of bilateral country programs, is becoming increasingly important.
The names of AIDAB’s two major in-Australia scholarship schemes were changed in October 1993 to identify them more clearly with Australia. The Sponsored Training Program (STP) was changed to the Australian Sponsored Training Scholarships (ASTAS) and the John Crawford Scholarship Scheme (JCSS) was changed to the Australian Development Cooperation Scholarships (ADCOS). The principal difference between the two programs is that ASTAS awardees are nominated by the governments of recipient countries, while nominations for ADCOS scholarships are received from individuals and awarded on a competitive basis within the framework of country-specific selection criteria agreed with recipient governments.
In-Australia scholarships provided under the aid program have primarily been given to students from the Asia-Pacific region. This has helped to pave the way for expansion and innovation in the export of Australia’s education services to the Asia-Pacific region. International student numbers in Australia have increased rapidly. In 1986 about 22 000 international students studied in Australia, most of whom were aid-sponsored in some form or other. In 1993 the number had increased to over 60 000, only 8250 or 14 per cent of whom were aid funded. Nonetheless, aid-sponsored student programs continue to make an important contribution to the internationalisation of Australian education services which now generate $1 billion annually for Australia.
The government-to-government ASTAS continues to be the major aid training program. ASTAS scholarships, like most ADCOS scholarships, cover the full cost of studying in Australia. Awards under this program are drawn from bilateral country program allocations and reflect the priority human resource development of recipient countries. About 1700 sponsored students commence their studies under the two schemes each year.
AIDAB has administrative responsibility for the Australian Program of Training for Eurasia (APTEA), which provides training, both in-country and in Australia, for middle-level managers from Central and Eastern Europe and the former Soviet Union to help their countries make the transition from command to market-oriented economies. Funding for APTEA totalled $3.6 million in 1993-94. Some 170 APTEA Fellowships were awarded in 1993 and 1994, and a range of activities were supported through APTEA Head of Mission funds. A review conducted during the year found that APTEA had been successful in furthering its training objectives, and had also played a significant role in trade facilitation. As a consequence APTEA now focuses on regions and sectors of potential commercial interest to Australia. An extension of APTEA until 1997-98 was announced in the 1994-95 Budget. As a number of the countries in the target region have now been classified as developing countries by the OECD, funding for APTEA will include a contribution of $0.7 million from the global aid budget for the first time in 1994-95.
Other cross-regional programs
Expenditure under the Direct Assistance Program was $3.3 million in 1993-94. This program enables Australian diplomatic missions in developing countries to assist local small-scale development activities. Activities that receive funding include self-help activities, income generation, micro-credit schemes, and support for disadvantaged groups.
The World Bank Cooperation fund, which received $600 000 in 1993-94, was established to strengthen Australia’s links with the World Bank. Contributions to the training arm of the World Bank, the Economic Development Institute, are drawn from this fund.
The Program Coordination, Review and Support cross-regional program, which was allocated $2.6 million in 1993-94, finances a range of activities such as internal audit and evaluation programs, sectoral studies and environmental advising. It also includes funding for activities designed to increase the effectiveness of Women In Development (WID) policy implementation in AIDAB.