Last night's federal budget announcements contained some good news for the world's poor. There was a welcome increase in the total of overseas aid keeping us on track to reach the Government's current commitment to reach 0.5% GNI by 2015. Closer analysis of how the money is being spent, however, is cause for concern: a decrease in the proportion going to health which is an urgent priority; and no new money allocated to help poor countries cope with climate change in the 2010/11 financial year. Read further and take action with us to ensure our nation's leaders know that Australian citizens want Australia's aid dollars to benefit the poor.
The 2010/2011 Federal Budget in a nutshell:Health: $57 billionSocial security and welfare: $115 billionDefence: $25.7 billionOverseas aid: $4.3 billion
The 2010/2011 Federal Budget in a nutshell:
Health: $57 billion
Social security and welfare: $115 billion
Defence: $25.7 billion
Overseas aid: $4.3 billion
Welcome news:
The Government announced that overseas aid would increase from 0.31% Gross National Income (GNI) to 0.33% GNI for 2010/11, on track to achieve the Rudd Government's commitment to reach 0.5% GNI by 2015. This is welcome news, representing an extra $530 million, or a 9.2% real increase to overseas aid, bringing the total of overseas aid to $4.3 billion.The Australian Government has also adopted the OECD's new methods for calculating GNI, which increases Australia's GNI by 4%. This means that the aid budget, committed as a percentage of GNI, will get a slice of a bigger pie. This will mean an extra $2.9 billion between now an 2015 for overseas aid as a result of the new GNI calculations.
But still falling short...
However, this still leaves Australia far short of the current average country effort of 0.48% GNI for rich countries, and Australia remains one of just a handful of rich countries not yet committed to a timetable to reach the internationally agreed aid target of 0.7% GNI.
Aid Quality - Where is the money going?
Good News:
The Government will be reviewing Technical Assistance which includes the use of contractors and consultants, and reviewing salary rates and the benefits of this approach. Aid and development organisations have critiqued this area for many years, and this is a positive step forward.
An investment in restructuring AusAID, developing its capacity to effectively deliver a growing aid budget, which will more than double in dollar amounts between 2010-2015.
Disappointing news:
Funding for health has gone down as a percentage of the aid budget. Last year's aid budget saw spending on health increase to 17% of the aid budget, but this year's budget sees just 14% of aid going to tackle health. Micah Challenge and Make Poverty History have been campaigning for health aid to increase to around 20% of the aid budget, with a particular emphasis on basic health and child and maternal health as urgent priorities. 18 of 29 developing countries are off-track to achieve MDGs 4 and 5 - reduce child mortality and improve maternal health.
A disappointingly low increase in water and sanitation aid of only $15 million (new money) for 2010/11, keeping Australia well off-track to giving its fair share in this area.
While an increase in education in the aid budget is welcome, a disproportionate amount is allocated to scholarships and tertiary education. Basic education must remain a focus, with its impacts across other areas such as health.
A small increase in total funding through NGOs, which are well-reputed to deliver aid effectively through local communities.
Governance funding receives the biggest slice of the pie, with 21% of the aid budget allocated to this. It is unclear how much of this is allocated to civil soicety groups and human rights.
It appears that a range of items are included in the aid budget that should not be there, such as funding for the Australian Federal Police.
Climate Change - Lagging behind
The Government has committed around $350m in the financial years 2011/2012 and 2012/2013 to assist developing countries mitigate the impacts of, and adapt to, climate change.
This falls short of the $450-$600m of 'new and additional' contribution the Government has promised under the Copenhagen Accord.
There is no clear commitment to support UN funding mechanisms, such as the Adaptation Fund. The Adaptation Fund is supported by the Least Developed Countries, as it incorporates the principals of transparency, equity and direct access.
There is no new funding in this financial year, which may erode much needed trust for the November climate negotiations in Cancun, Mexico.
This funding will come from existing aid commitments, competing with funding needed for critical areas such as maternal and child health.
Whilst the announced funding represents an important step, this is far from the leadership position we have asked our Government to take. Climate change will increase the vulnerability of millions of people around the globe and threatens progress on all the Millennium Development Goals. Our Government needs to do more to take a leading role in greenhouse gas mitigation efforts and support adaptation to climate change for the most vulnerable.
Read more: http://www.tear.org.au/states/news/budget-2010-how-will-the-poor-fare/
Ministries
Budget 2010 - How will the poor fare?
Tear Australia
Monday, 17 May 2010, 12:29 (EST)
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