Asia-Pacific aid boost makes sense

Wednesday, November 30, 2011

By co-chairs of Make Poverty History:
Tim Costello, CEO World Vision Australia &
Andrew Hewett, Executive Director Oxfam Australia

Published in The Australian on Wednesday 30 November, 2011

It took the international ‘summit season’, a visit by President Obama and the prospect of a reversal on our ban on sales of uranium to India to finally put foreign affairs on the national political landscape. 

And when it did come into the spotlight the focus was squarely on the importance of the Asia Pacific region.  ‘The Asian Century’, ‘The China Century’ or ‘America’s pivot to the Asia Pacific’ dominated debate. 

The focus on our region is belated but welcome. Yet it is short-sighted if we just limit such a debate to issues of diplomacy and defence. In absolute numbers, there are more people living in poverty in the Asia Pacific region than in any other region of our planet.  Any approach to the region, must not only tackle issues of trade and security but it must also contribute to regional efforts to combat poverty. 

It is fair to say that foreign policy hasn’t dominated the Australian political landscape over recent months. It is also true that neither leader has attempted to forge their leadership credentials upon foreign affairs issues.

Yet in terms of the bipartisan approach to overseas aid that has survived the often toxic political environment, they have struck the right political chord. Australia is committed to increasing aid spending from its current low level of just 35 cents in every $100 of Australia’s national wealth. 

This places Australia at 15th on the league ladder of aid donors. We still spend a smaller proportion of our national wealth on aid than countries like Spain and Ireland that are mired in debt.

Both the Government and opposition are committed to increase spending to 50 cents in every $100 by 2015/16 (just 0.5 per cent of GNI).  Mr Rudd reaffirmed this target in the parliament this week (Ed note: Wednesday) which he admits is a ‘modest target’ and would place us midway on the list of OECD donors.
 
Deputy Opposition leader Julie Bishop has strongly endorsed this target. She told aid agencies last year “the Coalition believes that the aid budget should be quarantined from what is often called euphemistically called ‘fiscal consolidation’. In other words, no cut to the aid budget.”

In his ministerial statement, Rudd also announced new measures to improve the transparency of the aid program, steps that have been welcomed by the Opposition."

This bipartisan leadership reflects some important international developments, most clearly in the United Kingdom where the Conservatives are legislating to increase their aid spending  to 0.7 per cent by 2013 – a move supported by Labour and the Liberal Democrats.

For Australia contributing to fighting poverty and disease in the Asia Pacific region is not only the right thing to do, it is in our national  interest and it also promotes stability and economic growth.  

It is every bit as important as efforts to tackle the European debt crisis that have dominated the efforts of world leaders.  What happens in our region and how issues of inequality, hunger, disease, education and gender equity are tackled, will profoundly impact Australia’s future.

Opinion Pieces, Poverty, Asia and the Pacific, Andrew Hewett, Australian Government, Foreign Aid, Kevin Rudd, Oxfam, President Obama, Tim Costello

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