Here’s a little graph showing the trend for Australia’s aid budget as a proportion of our Gross National Income (Australia, along with all other developed country donors, has repeatedly committed to increasing its aid budget to 0.7% of GNI)

- The solid blue line shows the actual budgeted amounts during the last term of the Keating Government, the Howard years, and now the first aid budget for the Rudd Labor Government.
- The dotted blue line shows the expenditure the Government projects over the next three budgets (bringing aid to 0.38% GNI in the 2010/11 budget)
- The dotted red line shows the trajectory that would have to be followed by whoever is elected in 2010 or 2011 in order to meet Rudd’s commitment to reach 0.5% GNI by 2015
- The dotted green line shows a straight line trajectory to reach 0.7% GNI by 2015, with increases kicking in next budget
A few things I notice:
Backloading
The forward estimates to 2010 propose a tailing off in the rate of increase for the aid budget. This is simply because the new Government decided to make no new aid commitments in the life of this Parliament and simply match Howard’s plan to get to roughly $4.3 billion by 2010. They may do a bit better than this, but they are clearly not pushing the envelope.
This has consequences for whoever is elected after 2010, and consequences for our development partners and the poor in our region. By “backloading” most of the aid increase for the period 2010–2015, this Government is leaving most of the heavy lifting for a new Goverment – whether a returned Labor Government, or a newly elected Coalition one. The trend they are establishing will not reach 0.5% GNI by 2015 if it is continued, so a more rapid scale-up will be required after 2010. But the later these new investments are left the more room there is for the Government to find them politically or financially too difficult.
Backloading also reduces the contribution these planned increases can make to Millennium Development Goal progress by 2015. Money invested in 2011, 2012 and beyond will still have a positive development outcome if it is used well, but it will have little influence on progress against the 2015 MDG timeline. Although the Rudd Government has promised major new focus on the MDGs, and 2008 has been nominated as the critical year for action to accelerate progress, there is no new investment beyond that planned by the previous Government until after 2010.
Global leadership?
With European donor commitments to lift their aid budgets to 0.51% GNI by 2010 and 0.7% by 2015, the Government’s own timetable will still leave Australia 15th of 22 OECD donors, measuring aid as a proportion of GNI. Even the planned increase leaves us in the bottom third of donors. The 0.7% trajectory I’ve mapped in is ambitious can be achieved and the money used effectively if we have more substantial engagement within our region and beyond (particularly increasing our commitment to Mekong and South Asian countries) and with multilateral bodies such as UNAIDS, the Global Fund to Fight AIDS, TB and Malaria and the Education For All Fast Track Initiative, for example.






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