Aid budget 08 - the ups, the downs and the neither-up-nor-downs
Posted by: Ben in Aid, Debt, Environment, Campaigning, Development, PoliticsUp #1
The biggest unambiguous positive in the aid budget for mine was the $300 million over 3 years announced for additional investment in water and sanitation programs. Policy-wise it’s a vital area of development concern that has been largely neglected, and which offers enormous human and economic benefits.
Unsafe drinking water and inadequate sanitation and hygiene causes around 90% of the 1.8 million deaths from diarrhoeal disease that occur in developing countries each year. Missing out on these basic rights causes illness, increases the labour burden for women (who spend much of their time collecting water and caring for sick children), and degrades human dignity for the more than 1.1 billion people who don’t have safe drinking water, and more than 2.5 billion who don’t have even basic sanitation.
Achieving the MDG targets to halve the proportion of people without access to safe drinking water and basic sanitation (MDG 7) would not only save lives and improve public health, but would increase female participation in education (girls are more likely to attend schools where there are adequate and private toilets), and enhance economic productivity. In fact, the World Health Organisation estimates that every $1 invested in the provision of water and sanitation leads to $8 in costs averted and productivity gained.
All the citizen lobbyists who were at Micah Challenge’s Voices for Justice lobbying event in Canberra last year made this a key policy ask, so I’m particularly glad to see the Government acting on this commitment early.
Up #2
The Government announced $200 million over 4 years for “UN partnerships for the Millennium Development Goals”. This amounts to an increase in the core funding provided to 6 UN agencies with key responsibilities for coordinating efforts on gender equality, sustainable human development, HIV/AIDS and other health challenges, and humanitarian emergencies. I’m sure the additional funds will be very welcome ($50 million a year on average, shared between 6 agencies) and it will lift our core funding for some of these agencies from very, very low levels.
Up #3
Pacific partnerships will get some significant new money soon ($268 million over 4 years for land related programs, infrastructure development and public sector administration improvement) though only $18 million is spent in 2008/09.
Down #1
Half of the increase from last year’s budget is accounted for by the third and final tranche of Iraqi debt cancellation. I have no argument with cancelling debt in order to promote development and/or humanitarian reconstruction. In fact, I think we should do more. But this cancellation for the third year makes up close to the bulk of the aid increase, overshadowing development of new programs or greater investment in current programs.
Down #2
The budget announced “increased attention to the global challenge of climate change” which sounds great – though the attention deficit left in this area by the previous Government made that a pretty easy call you would think. However, the $150 million over 3 years for research into vulnerabilities and impacts and implementation of high priority adaptation needs translates into $35 million this year. That’s just a shade above last budget’s $32.5 million for climate partnerships which, at the time, I described as derisory.
I haven’t changed my mind on that with a change of government. I acknowledge that there are not yet clear mechanisms for delivering massively scaled-up adaptation funding. But climate change is already affecting the poorest communities in our region. Subsistence farmers are struggling to cope with changing rainfall patterns, small-island and coastal populations are being displaced, or facing heightened risk of displacement because of rising sea levels, and climate-related disasters have increased in frequency and intensity.
Australia could easily increase this spending by an order of magnitude, and if specific proposals are needed, how about making contributions to the disgracefully underfunded adaptation funds that already exist? Or working with the Least Developed Countries in our region to fund and support the development of their National Adaptation Plans of Action (NAPAs) and the implementation of the highest-priority adaptation responses identified in those plans?
Neither-up-nor-down #1
Overall, the budget didn’t really add any new resources or strong new focus in the fight against global poverty. The sectoral spending increases are fairly minor. Here’s the sectoral breakdown:

When inflation is factored in, this is a slight real decline in education spending (-0.5%), and a very modest real increase in health spending (0.9%) which should surely be two priority areas to accelerate progress on the MDGs.







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