Foreign aid chases UN goals

from The Australian

FOREIGN aid gets a substantive boost to $3.7 billion in 2008-09 fast tracking progress to meet the UN's so called Millennium Development Goals while notching a $500m increase in aid on the previous year.

The aid budget provides $1.3 billion of new initiatives over four years.

The main focus will fall on poverty alleviation and regional security building efforts and sees a recommitment by the Rudd Government to the United Nations left in the cold by the former coalition but a pledge now backed by a $200m partnership investment with UN agencies over four years.

The aid increase compares with last year's total of $3.2b and is in line with the Rudd Government's key pre-election pledge to increase Overseas Development Assistance (ODA) to 0.5 percent of Gross National Income (GNI) by 2015.

It is expected the ratio of Australia's ODA to GNI will be 0.35 percent in 2009/10, a year earlier than targeted. The MDGs are a set of global development objectives ranging from action to eradicate poverty and hunger to initiatives to boost environmental sustainability and education measured by progress against 18 targets.

The federal Government's decision to withdraw its 550-strong Overwatch Battle Group has been softened by a $140 million aid package spread over three years targeting the war-ravaged country's immediate humanitarian needs.

New funding of $300 million aims to improve clean water and sanitation in impoverished countries in the Asia Pacific region while a $45 million fund over two years should help eliminate blindness with a new pilot eye and vision care program.

The scourge of HIV/AIDS in the region will be tackled by a swag of programs totalling $130 million in 2008/09. These include support for an ongoing $100m program in Indonesia to prevent the spread of HIV, the virus that leads to AIDS.

As part of its new approach to dealing with Papua New Guinea - assistance guided by the so-called Port Moresby Declaration signed by Mr Rudd in March - PNG has been allocated a total of $389m in ODA for 2008-09 out of a total ODA of $1billion earmarked for PNG and the Pacific.

PNG's aid will focus on the “four pillars'' strategy, measures designed to improve governance, nation building, sustainable economic growth and lift productivity.

The budget aims to help improve the Pacific's dilapidated state of infrastructure with a $127 million fund over four years to improve basic infrastructure - $5.5m allocated for 2008-09.

The facility will provide performance -linked support for basic infrastructure services in Pacific Island countries in combination with multilateral development banks and potentially other donors.

It should also help marginalise Taiwanese largesse in the Pacific.

“Support will be country specific, targeted to address local constraints to growth and challenges to nation building and stability,'' the budget statement said.

Troubled East Timor will get $58 million in Country Program aid bringing its ODA total to $96.3m with a priority on improving the country's dismal security record but also aiming to lift policing standards, rule of law and help with parliamentary development.

Humanitarian assistance to the long-suffering people of Burma will total $16.1 million focusing on support for public health, safe water and sanitation - measures that are an immediate priority given the devastating impact of Cyclone Nargis.

Aid under the Pacific Regional Program amounts to $219m designed to improve public health, but also tackling malaria, climate change and governance through a Pacific Leadership initiative.