Australian High Commission
Fiji

FY07-08 Budget

AUSTRALIAN AID: INCREASING SUPPORT FOR THE PEOPLE OF THE PACIFIC


09 May 2007

Australian official development assistance (ODA) to Pacific island countries in 2007-08 will be an estimated A$516.6 million. This represents an increase of around A$82 million (or almost 20 percent) on current funding levels. These figures were revealed as part of the Australian Government’s 2007-08 budget, which was delivered on 8 May.

In Fiji, Australia will continue to support aid initiatives helping to improve the welfare and economic opportunities of the ordinary people of Fiji. There has been a reduction in total funding to Fiji (A$28.7 million, down from A$33.8 million) to reflect that the actions of the military have compromised the integrity and effectiveness of our assistance in key areas such as the law and justice sector (police and courts). There is scope to provide additional funding to Fiji through global initiatives in later years, and to increase our engagement in governance related activities, including electoral assistance, if it is clear that the interim government is taking concrete steps to restore democracy in Fiji.

Australian assistance will continue to be provided in support of improved quality and accessibility of health and education services in Fiji. Australia will continue to provide training support to Fiji’s textiles, clothing and footwear industry to improve its productivity and market reach. Support to Fiji’s justice sector will continue, but with an emphasis on community justice activities. Australia will work with civil society organisations to promote enterprise development. We will also fund commercially-viable business projects that support pro-poor growth through the planned Asia Pacific Enterprise Challenge Fund. The best way to reduce poverty in Fiji is to generate strong and sustained levels of investment and economic growth – central to achieving this is a return to democracy and long-term political stability in the country.

Overall, Australian ODA to the Asia-Pacific region will increase to an estimated $3.155 billion in 2007-08, and reflects the Australian Government’s commitment towards increasing ODA levels to $4 billion by 2010. It includes a $2.588 billion package of new multi-year initiatives to improve the lives, security and well-being of neighbours in the Asia-Pacific region, including:
• Aiming to increase by 10 million the number of boys and girls in school by 2010 and to assist with improving the quality of education for another 50 million children
• Aiming for a reduction by three quarters in the maternal mortality ratio, and two thirds in the mortality rate of children under five
• Addressing crucial gaps in infrastructure maintenance and investment to spur economic growth
• Addressing climate change by tackling deforestation, improving freshwater catchment management, and promoting better management of energy
• Improving the quality of leadership in the region and increasing incentives for improved governance

More detailed information on the Australia Government’s 2007-08 aid budget can be found at www.ausaid.gov.au/budget07/default.cfm