Australian Budget shows Increased Aid Commitment to the Pacific
14 May 2008
Total Australian aid to the Pacific in 2008-09 is estimated at A$610.1 million, an increase of A$80 million from last financial year. This was revealed in Australia’s 2008-09 national Budget, which was introduced into the Australian Parliament last night by Treasurer Wayne Swan.
The substantial increase in funding is seen as a first step towards implementing the new Pacific Partnerships for Development as set out in Australian Prime Minister Kevin Rudd’s March 2008 Port Moresby Declaration. The partnerships will provide a new framework for Australia and the Pacific island nations to commit jointly to achieving improved development outcomes, on the basis of mutual respect and mutual responsibility. Work under the Partnerships will help Pacific nations make faster progress towards achieving the Millennium Development Goals (MDGs) by addressing key impediments to poverty reduction.
Pacific - Estimates by country
Total Australian aid to Solomon Islands in 2008-09 is estimated at A$236.4 million, a slight increase on assistance provided through RAMSI and bilateral channels in 2007-08. Additional funding to implement global and sectoral initiatives identified in the budget in areas such as infrastructure, health, governance and land will be made available where this funding can be effectively used, taking into account the development needs of the people of the Solomon Islands and the policies and performance of the Solomon Islands government.
Australia’s id to Vanuatu will increase in 2008-09 to A$51.8 million in recognition of continued progress in promoting reform and sound economic management. Vanuatu will also receive funding for global and sectoral initiatives in health, infrastructure, governance, education and land.
Aid to Fiji will be A$26.9 million for 2008-09, maintained at near level compared to 2007-08, consistent with Australian Government policy. While other countries in the region will see increases in aid through regional programs including Pacific Partnerships for Development, additional assistance to Fiji is subject to an early return to democratic rule.
Australian aid to Samoa will increase in 2008-09 to A$28.3 million reflecting its strong economic management and ongoing reform efforts.
Australia’s aid to Nauru will be A$26.6 million, broadly equivalent to 2007-08 funding.
Other estimates for Pacific countries are as follows: Kiribati (A$18.4 million); Micronesia (A$6.5 million); Niue and Tokelau (A$2.7 million); Tonga (A$19.3 million); and Tuvalu (A$6.3 million).
New initiatives to benefit the region as a whole
The budget revealed a number of new initiatives for the Pacific in infrastructure, land management and public sector administration, which will all get underway in 2008-09.
Through the Pacific Regional Infrastructure Facility, Australia will invest A$127 million over four years, with $5.5 million in 2008-09, to improve basic infrastructure services in the Pacific Australian funding will support improved infrastructure services in both rural and urban areas including transport, water, sanitation, waste management, energy and communications.
A new Pacific Public Sector Capacity program will commit A$107 million over four years, with $6 million in 2008-09, to strengthen public sector administration in the Pacific. It is aimed at improving public sector performance by supporting management and policy reform, while also providing immediate assistance to improve individual and institutional capacity in priority areas as identified by partner governments in the region.
Australia, through the Pacific Land Program, will invest A$54 million over four years, with A$6.5 million in 2008-09, to protect customary land rights, promote economic and social development and reduce the potential for instability through land-related conflict in the Pacific. Funding for this program will help address the challenges to land use and ownership from urbanisation. It will also assist improve the skills of professionals and semi-professionals in areas such as planning, surveying and valuing.
The 2008-09 aid budget also reflects the Australian Government’s commitment to address climate change adaptation needs, establish Australian leadership on disability and eliminating avoidable blindness, and improve access to clean water and sanitation, in the Asia-Pacific region. A new A$150 million, three-year program to meet high priority climate change adaptation needs will commence in 2008-09. The primary geographic emphasis will be on Pacific Island countries and East Timor.
Funding of A$45 million over two years has been allocated to lead efforts to eliminate avoidable blindness and develop practical ways to help people with disabilities. This includes a pilot eye and vision care program that will address primary and secondary eye care needs. Australia will also invest A$300 million over three years, with A$8 million in 2008-09, to improve access for the poor to clean water and effective sanitation in urban, peri-urban and rural areas and provide more predictable water supply by protecting fresh water sources.
ENDS