Program 1.7: ODA East Asia

Objective
To assist developing countries in the East Asia region to reduce poverty and achieve sustainable development.

Deliverable	2013–14 result	Reporting
To assist developing countries in the East Asia region to reduce poverty and achieve sustainable development.	met	below & App. 5

Key performance indicators	2013–14 result	Reporting
Achievement of significant development results.*	met	below & App. 5
Demonstrated organisational effectiveness.*	met	below & App. 5

* Program 1.7 KPIs were revised over the course of the 2013–14 reporting period. In the Portfolio Budget Statements 2013–2014, the KPIs of then AusAID program 1.2 included a reference to tier 2 and tier 3 headline results under the Comprehensive Aid Policy Framework (CAPF). The Portfolio Additional Estimates Statements 2013–2014 subsequently indicated that a revised set of KPIs for the Australian Aid Program was under development. Revised performance information was published in the Portfolio Budget Statements 2014–2015. A new aid policy and performance framework was launched on 18 June (see Aid overview). In line with the Requirements for Annual Reports, the department has reported against the former and current performance information for the entirety of the reporting period. Aggregate reporting of performance over the year against tier 2 and tier 3 CAPF headline results is at App. 5.

Figure 22: Estimated department ODA to East Asia, 2013–14

Indonesia

Country statistics*

*data sources for statistics used in this section: HDI–UNDP; GDP–World Bank; Australian ODA–OECD/DAC

Item	Measure
HDI rank (2013)	108
GDP per capita, PPP (current int’l $) (2013)	9559
Australian ODA as a % of total ODA (2012)	26.3%

In 2013–14, the department managed bilateral aid of $488.2 million. Other assistance through regional and global programs brought total ODA to an estimated $521.1 million, in addition to $39.5 million in funding provided under the Australia–Indonesia Partnership for Reconstruction and Development (see 1.8).

It is in Australia’s national interest that Indonesia remains a stable, democratic and prosperous nation and the aid program supports activities which promote this. Australia is Indonesia’s largest bilateral grant donor and remains a donor of choice for key Indonesian government agencies. We used Australian skills and knowledge to leverage local capabilities and improve policy decisions in key sectors.

The department promoted reducing poverty and lifting living standards through economic growth by helping to build a more robust regulatory and policy environment for economic activity. We supported policy formulation and implementation in areas such as financial sector sustainability, tax administration, trade policy and public financial management. The department’s funding for the annual tax census enabled Indonesia to add more than 443,000 businesses and individuals to the tax system resulting in additional government revenue.

The department assisted with infrastructure development to stimulate economic activity. Under the Provincial Road Improvement and Maintenance Program, we used performance incentives to promote good governance and improve maintenance of provincial roads. Our support to Indonesia’s National Program for Community Empowerment contributed to the building of bridges and rural roads.

We provided assistance to the Vice President’s National Team for Accelerating Poverty Reduction, which enabled it to reduce costly fuel subsidies and prevent six million people from falling into poverty after fuel price rises.

We invested in universal education in Indonesia, supporting the rollout of a national system to train teachers and school staff and improve education programs and policies.

The department contributed to a review of the Indonesian health sector to help determine priorities for the coming five years. Our funding helped reduce the number of maternal deaths in some of the poorest regions of the country, address HIV prevalence among specific groups and increase HIV testing and treatment across Indonesia, particularly in Papua and West Papua provinces.

Ensuring women’s access to economic opportunity and enhancing their capacity to participate fully in their community free of discrimination and violence was a priority. We funded the Empowering Indonesian Women for Poverty Reduction program which focused on increasing women’s access to jobs and removing workplace discrimination. We continued our support for the establishment of women’s microcredit groups. (See also 1.1(2).)

Philippines

Item	Measure
HDI rank (2013)	117
GDP per capita, PPP (current int’l $) (2013)	6533
Australian ODA as a % of total ODA (2012)	17.2%

The department managed bilateral aid of $119.8 million to the Philippines. Other assistance through regional and global programs and our humanitarian response efforts brought our total ODA to an estimated $171.4 million.

Humanitarian assistance was an important feature of our aid program. We provided $38.8 million following Typhoon Haiyan and continue to support recovery and reconstruction efforts through our development program (see also 1.10). We also delivered fast and effective humanitarian assistance following conflict in Zamboanga and the 7.3 magnitude earthquake in Bohol. The department worked with the Government of the Philippines to prepare for, and help reduce the impact of disasters.

We used aid funding to support nationwide education reforms. In February 2014, the Foreign Minister launched a $150 million, five-year program to assist the Government of the Philippines to extend basic education from kindergarten to grade 12. This will benefit eight million boys and girls across 19 000 schools.

We also focused on sustainable economic growth and infrastructure, supporting the Public Private Partnership Program to mobilise technical support for critical infrastructure development.

Our work to promote the conditions for peace and security in Mindanao supported the development of the Comprehensive Agreement on the Bangsamoro and was welcomed by President Aquino. We agreed to provide a further $6 million in funding to help build more capable and responsive institutions, expand economic opportunities, and strengthen foundations for peace and long term stability in conflict-affected areas. (See also 1.1(2).)

The department promoted women’s decision making, leadership and peacebuilding in Mindanao. Our support facilitated participation by a wide network of women leaders into peacebuilding efforts in the region. We assisted teachers undertake gender-responsive school planning and introduced support and referral systems for students and teachers affected by gender-based violence.

Vietnam

Item	Measure
HDI rank (2013)	121
GDP per capita, PPP (current int’l $) (2013)	5293
Australian ODA as a % of total ODA (2012)	3.0%

Australia is the fourth largest bilateral aid donor to Vietnam and the largest grant donor. The department managed bilateral aid of $95 million, with other assistance through regional and global programs bringing our total ODA to an estimated $121.9 million.

Inefficient infrastructure limits the private sector’s ability to drive development in Vietnam. We continued our funding for construction of the Cao Lanh Bridge over the Mekong River and, in partnership with the World Bank, supported public–private partnerships in infrastructure. We used policy development, technical cooperation and capacity building to help Vietnam engage in the global trading system.

Vietnam needs a skilled and competitive workforce to transition to an industrialised economy. Vietnam was the third largest recipient of Australia Awards in 2013–14. The department provided Vietnam with 238 Australia Awards Scholarships for postgraduate study and 161 Fellowships for short-term training and work attachments with Australian organisations.

We were a lead donor supporting the Government of Vietnam’s rural water supply and sanitation program. Our contribution assisted 109,031 people access safe water and 177,000 people access basic sanitation.

The department worked with partners, including NGOs and the Vietnam Women’s Union, to protect vulnerable communities through improved planning for environmental change and natural disasters. Our support helped over 115 000 people protect their livelihoods by adopting innovative rice farming methods, improved ways of managing coastal forests and aquaculture, and assisted small farmers to get high-value products to market.

We continued Australia’s support for gender equality in Vietnam. Under a regional partnership with UN Women, we commissioned a national assessment of women’s economic livelihoods to inform the development of Vietnam’s National Programme on Gender Equality.

Timor-Leste

Item	Measure
HDI rank (2013)	128
GDP per capita, PPP (current int’l $) (2013)	2242
Australian ODA as a % of total ODA (2012)	38.1%

Australia is the largest bilateral aid donor to Timor-Leste. The department managed bilateral aid of $71 million. Other assistance through regional and global programs brought our total ODA to an estimated $79.4 million.

Our aid investments complemented the efforts of the Government of Timor-Leste and supported economic and social reform to deliver effective and equitable development.

We assisted with the delivery of programs in health, education, agriculture and infrastructure. Our contribution provided increased access to safe water for an additional 28,000 people, the rehabilitation and maintenance of 96 kilometres of rural roads, and helped 10,000 additional farmers access high yielding seed varieties.

Through the Market Development Facility we supported small business to increase production, stimulate markets and create jobs. Timor-Leste’s first enterprise to source, process and pack local rice for retailing in supermarkets was funded through the aid program.

The department helped strengthen public financial management and economic policy reform. In June 2014, we signed an innovative Direct Budget Support Agreement with the Ministry of Finance, linking the provision of funding to achievement of the Ministry’s own key performance indicators.

In April 2014, we launched a program to address violence against women. We worked with the Timorese Government and local organisations to deliver violence prevention strategies. We used grants, capacity building and research to provide improved support services and access to justice for survivors of violence. (See also 1.1(2) and 1.13.)

Cambodia

Item	Measure
HDI rank (2013)	136
GDP per capita, PPP (current int’l $) (2013)	3042
Australian ODA as a % of total ODA (2012)	11.8%

In 2013–14 the department managed bilateral aid of $56.1 million. Other assistance through regional and global programs brought our total ODA to an estimated $74.1 million. These aid investments targeted areas that improved economic opportunities—agriculture and rural development, health, infrastructure and effective governance. (See also 1.1(2).)

We focused on increasing agricultural production and reducing rural poverty by expanding irrigation systems and providing farmers with access to quality seeds, fertilisers and training. Seven irrigation schemes were constructed, enabling 4221 families to grow more than one rice crop per year.

Approximately 17.33 square kilometres of land in three target provinces was cleared of landmines and unexploded ordnance, reducing casualties in those provinces by 50 per cent and making the land available for farming and other activity. (See also 1.1(11).)

We contributed to the second Health Sector Support Program, delivered through the World Bank. This enabled health centres and hospitals to provide better quality health care, with subsidised treatment packages for approximately 2.5 million of the poorest Cambodians. Our support ensured over 10 000 women could give birth with the assistance of a skilled attendant.

We invested in key economic infrastructure and repaired roads, bridges and other facilities damaged by the floods in 2013. Rehabilitation of the Cambodian Railway southern line, between the seaport of Sihanoukville and the capital Phnom Penh, was completed with our support, helping to alleviate the over-extended road network.

We supported over 20 000 villagers to participate in crime prevention and community safety projects, focusing on violence against women, youth crime and drugs. We funded legal aid services in 84 per cent of Cambodian courts and helped Transparency International Cambodia develop a high school anti-corruption curriculum.

The year marked the 20th anniversary of scholarships programs in Cambodia. The 55 Australia Awards Scholarships offered in 2013–14 took the total number of awards to more than 500 since 1994.

Burma

Item	Measure
HDI rank (2013)	150
GDP per capita, PPP (current int’l $) (2013)	n.a.*
Australian ODA as a % of total ODA (2012)	11.2%

* n.a. not available

The department managed bilateral aid of $67.6 million to Burma. Other assistance through regional and global programs brought our total ODA to an estimated $85.5 million.

In-country reforms presented the opportunity to promote economic growth, strengthen peace and improve education and health.

Our aid assisted the Government of Myanmar to maintain a positive reform path, including through strengthened public financial management systems. (See also 1.1(2).)

The department worked with the International Finance Corporation and the Government of Myanmar to strengthen the enabling environment for private sector growth. Our aid investments improved democratic systems and parliamentary processes, including women’s access to justice and rule of law. We supported the first national census in three decades.

We played a key role in promoting the rights of women and girls and protecting those affected by conflict. We distributed 44 000 hygiene kits and lights for internally displaced women and provided training to increase female representation in community dialogues and peace negotiations.

Our assistance enrolled an additional 24 000 children at government, monastic and community schools, and trained more than 11 000 teachers and caregivers; provided health services to women and children ensuring skilled birth delivery assistance to 5438 women and vaccinations to 8822 children; allowed 3300 people to gain access to agricultural technologies, 3500 to increase their incomes, and 6300 to increase access to financial services; and benefited 140 000 people in conflict and crisis situations in Rakhine and Kachin states, as well as on the Thai border.

Laos

Item	Measure
HDI rank (2013)	139
GDP per capita, PPP (current int’l $) (2013)	4812
Australian ODA as a % of total ODA (2012)	11.6%

The department managed bilateral aid of $33.4 million to Laos. Other assistance through regional and global programs brought our total ODA to an estimated $48 million.

Our aid to Laos focused on trade, education, rural development, rural infrastructure and human resource development.

The department assisted Laos to increase economic integration with the regional and global economy. We helped Laos meet reform commitments and maximise the benefits from trade and economic frameworks such as the ASEAN–Australia–New Zealand Free Trade Area. We funded two assessments of non-tariff measures and services trade, with a view to simplifying the trading environment, and established a business assistance facility to help increase exports. (See also 1.1(2).)

We worked to improve education quality and the skill level of the workforce. We funded programs to bring education to disadvantaged children in remote communities, girls, ethnic minorities and children with disabilities. Our aid investment helped build 393 classrooms, train 2526 teacher and 532 principals, improve school access for 9235 children with disabilities and provide school meals to 66,000 children to encourage school attendance.

The department promoted rural development programs to generate incomes, improve livelihoods and build resilience. Our aid contribution helped establish 61 new village banks and micro-finance institutions providing financial services to more than 10,000 people from poor rural communities; clear 877 hectares of unexploded ordnance benefiting more than 70,000 people; provide community-based water supplies and roads, benefiting 27,620 people; improve livelihoods for 9500 people through rice-bank and irrigation systems; and mobilise a rural social protection demonstration program which will reach 35,000 people.

Ambassador to Laos, John Williams (right), and Vice Minister of Education and Sports, Mr Lytou Bouapao, open an Australian aid-funded, UNICEF project, providing new water, sanitation and hygiene facilities, Viengkeo Primary School, Vientiane, 3 June 2014. [DFAT]

Mongolia

Item	Measure
HDI rank (2013)	103
GDP per capita, PPP (current int’l $) (2013)	9433
Australian ODA as a % of total ODA (2012)	2.7%

Australia is one of the largest grant donors to Mongolia. The department managed bilateral aid of $9.5 million in 2013–14 with other assistance through regional and global programs bringing our total ODA to an estimated $15.3 million.

The department designed a new flagship extractives program to help Mongolia progress towards equitable and sustainable economic growth. The program will support governance in the mining sector and better use of mining revenues for improved service delivery. It will also address the social and environmental impacts of mining. (See also 1.1(1).)

Our aid investment helped Mongolia manage scarce groundwater resources better in the southern Gobi region, a key mining area that is also home to communities of pastoral nomads, and improve water and sanitation facilities in schools and kindergartens, benefiting 2629 children in Khuvsgul province. We enhanced skills through the provision of 43 Australia Award scholarships; improved the capacity of government to undertake resource sector regulatory tasks through targeted training courses; and promoted transparency and accountability in the minerals sector by supporting civil society organisations such as Revenue Watch.

East Asia regional programs

The department managed $75.7 million in regional aid in East Asia, which focused on addressing trans-boundary development challenges that were not readily addressed through country-level interventions.

The program complemented the department’s activities in Vietnam, Laos, Cambodia, Burma, Mongolia, the Philippines, Timor-Leste and Indonesia—fostering economic growth; enabling economic integration and increasing regional trade; strengthening regional approaches to managing water resources; preparing for and managing disaster responses; tackling human security and health issues, including human trafficking and labour protection for migrant workers, and preventing the spread of communicable diseases.

Through the ASEAN–Australia Development Cooperation Program Phase II, we built the capacity of the ASEAN Secretariat, supporting it to implement 53 activities around the liberalisation of goods, services and investment.

The department used the Economic Cooperation Support Program to assist developing ASEAN countries implement and access the benefits of the ASEAN–Australia–New Zealand Free Trade Agreement (see 1.1(8)).

Under the Mekong Water Resources Program, we promoted a collaborative, equitable and sustainable approach to Mekong water resource management. We helped strengthen water-related institutions, including the Mekong River Commission, facilitating regional consultation and supporting high-quality local research to underpin decision-making.

The department worked to improve disaster response and preparedness in Southeast Asia, including through support for the establishment of the ASEAN Coordinating Centre for Humanitarian Assistance. We continued our work in the East Asia Summit to build the region’s capacity to respond to natural disasters.

With China, we moved forward on the first pilot project under the Memorandum of Understanding on Development Cooperation, signed by Australia and China in April 2013—an anti-malaria project in Papua New Guinea. We also worked with Chinese counterparts and the Cambodian Government to explore the feasibility of jointly assisting Cambodia’s water and irrigation management.