MEDIA RELEASE
Released By:
Downer
Governance is to be added to the present four priority sectors of Australia's overseas aid program.
Effective governance is immensely important to a country's development. It enables the management of resources to be open, transparent, accountable, equitable and responsive to people's needs.
Giving governance activities a priority is a key initiative in the revitalisation of our aid program, announced by the Minister for Foreign Affairs today. Mr Downer made the announcement when he gave the Government's response to the report of the committee he commissioned to review Australia's aid program, which was chaired by Mr Paul Simons AM.
AusAID's development cooperation work in this sector will feature projects to ensure the establishment of sound fiscal, monetary and trade policies. Emphasis will also be given to strengthening public sector and human rights institutions.
Governance joins the four other priority sectors in which the program has been operating effectively for many years: health, education, infrastructure and rural development. Development in each of these sectors is vitally important to poverty reduction and sustainable development.
However, unless countries get the fundamentals of governance right - the administration of their health and education systems, their legal institutions, their fiscal and monetary policies - development is hampered and aid projects are not sustainable. When these fundamentals are in place, conditions are favourable for private sector investment - the driving force of economic growth.
Australia is in a good position to deliver effective programs in the governance sector.
Current AusAID governance projects are valued at approximately $285 million. They include activities supporting Papua New Guinea's economic reform program, projects supporting the rebuilding of institutions in South Africa, assistance with the forthcoming Cambodian elections, and a range of projects under the Pacific Policy and Management Reform program.
Elevating governance to a priority sector will ensure that Australia's aid program remains at the cutting edge of effective international development assistance.
Media contacts:
Geoff Adlide (AusAID) (02) 6206 4967/ 0417 683 126
Judi Nixon (Parliamentary Secretary's office) (02) 6277 4381