Submission to the Aid Review

In November 2010 the Federal Labor Government announced a long overdue review of the Australian aid program; the first in over a decade.

The review comes at a critical juncture. The aid budget has more than doubled since 2005. Over the next five years this is set to double again to hit an estimated figure of $8-9 billion by 2015, in line with the Government’s commitment to increase aid spending to 0.5% of GNI. To put the scale of this increase in perspective, by 2015 AusAid’s budget will be eight times the size of that of the Department of Foreign Affairs and Trade. In fact, foreign aid will soon become one of the top ten areas of government spending.

Given the scale of this increase and the climate of global economic uncertainty, it is absolutely vital that delivery of the aid program is subject to the highest levels of transparency, accountability, efficiency and effectiveness. Most Australians are more than happy to give their tax dollars to those less fortunate than themselves. But, as with all areas of government spending, they need to be reassured that money meant for aid is being spent appropriately and that waste is minimised at all costs. Failure to provide such reassurance may overtime lead to the erosion of public confidence in the aid budget – an almost certain death sentence for any further increase in the foreseeable future.

That’s why this review is so important. It provides an opportunity to ensure that the aid program is managed well and to decide where the growth will go. In setting the future direction and vision of Australia’s aid program, the review will consider a number of key questions: how much of the increase should be sent in bilateral aid? Should we increase the amount in multilateral aid to such organisations as the Global Fund to fight HIV/AIDs, Malaria and Tuberculosis? Should the amount given to the NGOs need to be increased?

Recognising the importance of public consultation and engagement, between November and early February the Government called for submissions to its Review. Over the summer, a small team prepared a submission on behalf of Oaktree, which was formally sent to the review’s panel last week. In coming weeks, we’ll be sending copies to all of our political supporters and relevant parliamentary committee chairs, putting our viewpoint across and arguing our case. Then in April, when the Review releases its report and recommendations, we’ll follow up with an aggressive lobbying campaign to ensure its implementation and make sure the Government is held to account. Stay tuned as we provide updates on our campaign for a world class aid program.

In summary, Oaktree submitted in its review that:

• Government projections to increase Australia‟s official development assistance (ODA) to the promised 0.5% of GNI by 2015 need to be accompanied with an evenly weighted timeline.
• The Australian Government should separate its commitment to climate financing from the existing commitment to increase ODA to 0.5% of GNI by 2015.
• The Australian Government should remove “national interest‟ from the objectives of Australia’s aid program. AusAID’s mission could be changed to “to assist developing countries to reduce poverty and achieve sustainable development‟ thereby allowing for greater alignment of foreign aid with the actual needs of low and middle-income countries.
• Consideration should be given to the creation of an “Australia Fund”, an innovative financing mechanism designed to accelerate progress on achieving education for all in our immediate region.
• Australia should demonstrate a real commitment to the Pacific in PACER-plus trade negotiations and place developmentgoals ahead of any economic gains for Australian exporters.
• A greater portion of the aid budget should be given to effective multilateral organisations like the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria as well as non-government organisations.
• Consideration should be given to the benefits of separating AusAID from the Department of Foreign Affairs and placing a Minister in charge of International Development.
• Consideration should be given to the role that a number of mechanisms, such as parliamentary committees, can play in ensuring accountability of AusAID.

To view a copy of Oaktree’s submission to the Aid Review click here.