MEDIA RELEASE
Released By:
Downer
$12 million and increasing country program assistance to Indonesia by
$6 million
Continuing to give effect to the Government's policy on the aid program as stated in Better Aid for a Better Future
In 1999-2000 the Australian aid budget will be $1,502 million. This is an increase of $22 million over the 1998-99 budget figure of $1,480 million maintaining the level of the aid program in real terms. Australia's ODA/GNP ratio for 1999-2000 will be 0.25 per cent[*], well above the latest (1997) average of donor countries of 0.22 per cent.
The 1998-99 aid budget responded to urgent development needs, particularly those resulting from the East Asian financial crisis and El Nino. We demonstrated that the Australian aid program is responsive to changing development needs and challenges, and that we are willing and able to assist our neighbours.
As we enter the new millennium our region is still one in crisis. In the 1999-2000 aid budget, the East Asia financial crisis response continues to be critical, but so too are long-term development projects and programs that address the priority needs of our aid partners.
The principles and directions set out in my statement, Better Aid for a Better Future, will continue to be the basis of the aid program in 1999-2000. Our aid program demonstrates the commitment of the Government, on behalf of all Australians, to the well-being of our neighbours. This is clearly in our national interest.
Continuing to Respond to the East Asian Financial Crisis
In 1999-2000 responding to the East Asian financial crisis, particularly needs in Indonesia, continues to be a priority. Aid to East Asia and the Pacific will increase to assist our aid partners respond to the East Asian financial crisis and support their longer-term development needs. Total assistance to East Asia and the Pacific in 1999-2000 is expected to be almost $890 million. The increase to East Asia includes:
Poverty Alleviation and Sustainable Development Assistance at the Grassroots
Our development assistance program also assists our aid partners address broader development needs by directly assisting communities. Key initiatives in the 1999-2000 Budget include:
East Timor
The Government has made clear that Australia will provide substantial assistance to an autonomous or independent East Timor. Decisions on the level and nature of that assistance will be taken once the outcome is clearer. In the meantime, Australia's aid to East Timor will continue to be delivered as part of our overall aid program to Indonesia. Australia is the largest bilateral donor to East Timor, providing $7 million in 1998-99. Australia has also pledged $20 million (additional funding in 1998-99) to assist the UN Consultation process planned for August 1999. This process will allow the East Timorese people to determine their future.
PNG and the Pacific
In 1999-2000 $264.8 million in country program assistance and $35.5 million in budget support will be provided to Papua New Guinea, in line with our commitment in the Treaty on Development Cooperation. 1999-2000 is the last year that Australia will provide direct budget support to PNG. The majority of our aid is provided as projects, in the priority sectors of education and training, health and infrastructure.
In 1998 Australia and PNG reached in-principle agreement on a new Development Cooperation Treaty that will come into effect on 1 July 2000.
Australia's aid program to the Pacific will increase by $2 million. The additional funds are for the Solomon Islands. The increase recognises and gives further support to the Solomon Island Government's economic reform program.
Africa, the Middle East and South Asia
In 1999-2000 the bilateral aid budget for Africa and South Asia will be maintained in real terms. Assistance to the Palestinian Territories will be increased in 1999-2000 by $900,000. Further assistance is also provided to these regions through NGO, emergency and humanitarian programs.
[*] This figure actually compares ODA to Gross National Income (GNI), not GNP, but the two measures are very similar. The Australian Bureau of Statistics changed the method of calculating GNI in late 1998, resulting in all historical measures of GNI, GNP and GDP being revised upwards and (consequently) ODA/GNP ratios revised downwards.
Media contacts:
Innes Willox (Mr Downer's Office) - (02) 6277 7500 or 0419 206 890
Matt Francis (AusAID) - (02) 6206 4960 or 0417 683 126