MEDIA RELEASE
Released By:
Downer
I am pleased to announce that Australia will provide $1.6 billion as official
development assistance (ODA) in 2000-01 - an increase of nearly $100 million
over the 1999-2000 Budget figure and a real increase of 4 per cent.
This is a clear demonstration of the importance the Government places on advancing
Australia's national interest by helping developing countries to reduce poverty
and achieve sustainable development.
The 2000-01 aid budget will continue to give effect to the directions and principles
of the Government's 1997 policy statement, Better Aid for a Better Future.
Australia's progress in implementing this policy framework received high praise
when reviewed recently by the OECD Development Assistance Committee. The review
concluded that since 1996, Australia's aid program has undergone an impressive
process of restructuring and renewal, putting Australia in the vanguard of DAC
members' aid management practices.
AID BUDGET HIGHLIGHTS
- A commitment of $150 million over the next 4 years ($100 million of which
is additional aid budget funding) will help build the foundations of a viable
and stable East Timor. - An Asia Recovery and Reform Fund ($6 million), which will complement the
support provided through bilateral country programs to assist countries most
affected by the aftermath of the financial crisis. - Maintaining Australia's commitment to help Indonesia in meeting the enormous
challenge of implementing political and economic reform, with total flows
in 2000-01 of around $120 million. - The new Treaty on Development Cooperation with Papua New Guinea reflects
our joint commitment to transparency and accountability in ensuring Australia's
aid effectively meets PNG's development needs. Funding for PNG in 2000-01
is estimated at $300 million. - As part of our three year $35 million commitment, $11.5 million in 2000-01
towards the IMF/World Bank Heavily Indebted Poor Countries Initiative. Australia's
total contribution to HIPC will be $55 million in nominal terms. - A continuing commitment to helping nations in the Pacific achieve the highest
possible level of self-reliance, including with an increase of $1 million
to help the Government of the Solomon Islands in its continuing economic reforms
and an additional $940,000 (to a total of $15 million) for the Policy and
Management Reform program in the Pacific. - A 3.6 per cent increase for non-government organisations through the AusAID
NGO Cooperation Program, taking Australia's contribution to community-based
NGO projects in developing countries to $25.2 million in 2000-01.
RESPONDING TO DEVELOPMENT NEEDS
The overseas aid program will maintain its emphasis on the development needs
of Australia's neighbours in Asia and the Pacific and continue to respond to
the historic political, economic and social changes occurring in the region.
East Asia
The aid program will continue to focus on assisting regional countries affected
by the financial crisis to return to sustained growth and on addressing their
long-term needs for poverty reduction and sustainable development. Improved
governance will be key to achieving development gains. Assistance provided through
bilateral country programs will be complemented by the Asia Recovery and Reform
Fund, to help strengthen economic governance and social protection mechanisms.
Total flows to East Asia will be $487.6 million.
East Timor
Aid to East Timor will focus on restoring essential services, supporting the
establishment of government and administrative structures, rebuilding livelihoods,
promoting reconciliation and supporting the development efforts of multilateral
organisations such as the United Nations and the World Bank. Funding of $150
million, over the next 4 years, will be phased at $40 million per annum in 2000-01
and 2001-02 and $35 million per annum in 2002-03 and 2003-04.
Indonesia
Indonesia is undergoing a political, economic and social transformation. With
total aid flows of around $120 million, Australia will work with Indonesia to
help restore welfare gains eroded by the crisis, strengthen poverty alleviation
and implement its extensive reform program.
Papua New Guinea
Australia will continue to play a key role in helping PNG address its considerable
development needs. This assistance is focussed on the jointly agreed sectors
of governance, education, health, infrastructure, renewable resources and assisting
the peace process in Bougainville.
Pacific
In the Pacific, Australian aid will focus on helping nations develop the maximum
possible degree of self-reliance. Total assistance to Pacific Island nations
will increase from $137 million to $145 million, with particular emphasis being
placed on supporting economic and public sector reform programs.
Africa, the Middle East and South Asia
Outside Australia's immediate region, the overseas aid program will focus where
appropriate on development needs in southern Africa and the Middle East. In
South Asia, the program will concentrate on the needs of the most vulnerable
poor. In 2000-01 bilateral aid for Africa and South Asia will be maintained
in real terms. $2.1 million will be provided to the Palestinian Territories
- maintaining last year's commitment. Further assistance is also provided to
these regions through NGO, emergency and humanitarian programs.
Humanitarian and Emergency Response
In 1999-2000, Australia's overseas aid program responded promptly to natural
disasters and man-made tragedies in a number of countries, including the floods
in Mozambique, the earthquake in Turkey and humanitarian crises in North Korea,
the Balkans and the Solomon Islands. Australia will continue to respond generously
to such crises as they arise.
Other features of the 2000-01 budget
- $5 million to continue the highly successful Australian Youth Ambassadors
for Development Program and establish it as an ongoing feature of Australia's
overseas development assistance - An additional $700,000 to volunteer organisations in recognition of the
contribution of Australian volunteers - An additional $300,000 for the Direct Aid Program, taking it to $3.3 million,
and expanding the ability of Australia's overseas missions to respond quickly
to local, small-scale development needs - A 30 per cent increase to $1.3 million in the Human Rights Fund to expand
the capacity of community-based human rights activities - An increase of $490,000 for outreach activities, bringing total funding
to
$2.3 million and enabling further outreach activities in rural and regional
areas.
Media contacts:
Matt Francis (Ministerial)
02 6277 7500 / 0419 206 890
Fionna Douglas (AusAID)
02 6206 4960 / 0412 804 489
Note:The way that the GST affects Budget estimates, accounting statements and
appropriations is described in Budget Paper No.4.