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Australian Regional and Global Foreign Aid Links

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Sophia Turano

on 14 September 2013

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Transcript of Australian Regional and Global Foreign Aid Links

Introduction to Foreign Aid
Australian Regional and Global Foreign Aid Links
Australia and its Global Links
Advantages and Disadvantages of Australian Aid
Treaties, Agreements and Policies
A treaty is an agreement between nations which is binding at international law. In some cases international organisations can be parties to treaties. Australia shares treaties and agreements with nations that reflect its government and non-government commitments to economic, social and humanitarian aid.
Roles of Australian Aid Organisations and the Impacts Australia has on Social Justice and Equity
The term 'aid' refers to help, assistance or support provided by one to another with the aim of achieving their purpose.

To conclude, foreign aid affects Australia and the recipients of Australian aid predominantly effectively by not only assisting the country in need but also establishing alliances between Australia and the recipient nations, providing employment to both Australia and recipient countries, the provision of emergency aid which saves lives, eradicating fatal diseases such as smallpox and polio, the reduction of poverty and boosting Australia's overall economic status; however, Australian Aid can be wasted due to corrupt political leaders, trying to 'glorify' Australian organisations and is short-term and will not last, creating dependency on Australia resulting in an endless cycle of poverty for the recipient nations.
Foreign Aid, also commonly known as international aid, is the process in which economic, technical or military assistance and support such as money, food, goods, services and other resources are given or lent by one nation to another for relief and rehabilitation, economic stabilisation or mutual defence purposes.
The Australian Agency for International Development or AusAID, is an organisation established and provided by the Australian Government. Their aim is "to assist developing countries to reduce poverty and achieve sustainable development, in line with Australia's national interest". Since 2001, Australia has provided counter-terrorism training and support to countries in the Asia-Pacific region. In 2004, more than 80% of Australia's Aid went to countries in the Asia-Pacific. Around the globe, Australia provides aid to approximately 58 million people per year, nearly three times the equivalent of Australia's population. A portion of this aid is in the form of food. Other aid includes agricultural assistance such as equipment, machinery and agricultural experts.
Types of Aid
There are various types of aid which are commonly used by the Australian Government. These include:

Bilateral Aid - aid provided from one country to another
Emergency Aid - urgent assistance provided after a severe incident
Food Aid - providing basic goods and needs
Monetary Aid - assistance in the form of funds
Multilateral Aid - assistance provided from numerous countries or through an international organisation such as the United Nations
Technical Aid - assistance through the provision of experts
"Tied" Aid - aid given with conditions such as the necessity that the recipient nation imports specific products from the donor nation
"Untied" Aid - aid given, without conditions
Source: AusAID and DFAT sites
Non-Government Organisations play a crucial role in development. There are over 100 NGO's working towards development in Australia and overseas. Non-Government Organisations often co-operate with AusAID to benefit from community partnerships and specialised knowledge. The Australian Government isn't the only donor of foreign aid in Australia. There are numerous Non-Government organisations such as World Vision Australia, Caritas Australia and Oxfam Australia distributing international aid also.
Australian Aid in the Pacific
Article Analysis - Australian Aid: it's just not working
The article written by Antony Loewenstein on Thursday the 29th of August 2013, 14.59 AEST on the online newspaper website heguardian.com, focuses on an issue regarding Australian Aid.

Loewenstein highly suggests and questions that the efficiency, priorities and key aims of Australian Aid should be reconsidered as corrupt businesses and politicians are following the lead of other industrialised nations by "intimately tying aid to business outcomes". He believes the constant alternation and failure of Australian aid development plans is damaging to Australia's image.

"The results can only be exploitation in the name of helping impoverished nations", is an opinionated statement proposing that the result of the corruption in Australian aid organisations can only end unfavourably for the country receiving aid as Australia is unethical and fraudulent and will deviously take advantage of vulnerable people if they get the chance.

Alternatively, Antony also acknowledges Australia's immense distributions and contributions of aid to needy third-world recipient nations and global programs, despite the immoral reasoning behind those decisions.

Overall, the overlying issue concerning the authenticity of vast Australian Government and Non-Government Aid Organisations still remains unresolved, although, the history of specific Australian Aid Organisations has shown significant efforts and attempts to assist under-developed nations out of free-will which may count for credibility as future plans for Australian Overseas Aid Development seem dim.

http://www.ausaid.gov.au/Pages/home.aspx, The Australian Government - Commonwealth of Australia, 4 April 2012
Bilateral Aid
Bilateral Aid concerns assistance given by a government directly to the government of another nation. AusAID aims to assist neighbouring second and third-world nations, predominantly around the Asia-Pacific region. The main recipients of Australian Government Bilateral Aid (AusAID) in the Asian-Pacific region include: Papua New Guinea, Indonesia and the Solomon Islands. In 2007-2008, the overall Australian Aid budget donated to the Asian-Pacific was over $8 725 000, with Papua New Guinea having been given $3 550 000 and the Solomon Islands, just over a quarter of the total budget, $2 239 000.
Multilateral Aid
Multilateral aid regards assistance provided by governments to international organisations such as the World Bank and the United Nations. A significant amount of Australian Government aid donated to Africa is directed through these multilateral organisations.
Australian Aid projects, strategies and programs
Non-Government Organisation Aid
World Vision Australia, one of many Australian Non-Government Organisations, assists the Asia-Pacific and miscellaneous regions comprised of second and third-world countries through the implementation of events such as the '40 Hour Famine' and child sponsorship programs. In 2006, World Vision Australia funded projects worth $3 500 000 in Papua New Guinea, Vanuatu and the Solomon Islands. During the same year, it invested in programs worth $113 000 000 in Africa, $93 000 000 in Asia and $24 000 000 in South America. However, Non-Government organisations also receive a small amount of funding from the government.
Australian Aid is chiefly distributed to the Asia-Pacific region in order to strengthen their link, encourage and establish business and for moral reasons.
Australian Aid Distribution
Distribution as in 2006-2007
Main areas of Australian Aid
The sector graph above depicts the most popular areas of aid used and provided by the Australian Agency for International Development known as AusAID in the Asia-Pacific region.
http://www.dfat.gov.au/, The Australian Government - Commonwealth of Australia, April 2008
Source: AusAID Annual Report 2006-2007
Source: World Vision Annual Report 2006-2007
Source: AusAID and DFAT websites
http://aidwatch.org.au/, AID/WATCH, 2013
https://www.oxfam.org.au/, Oxfam International Confederation
http://www.worldvision.com.au/Home.aspx, World Vision Australia, 2013
Proposed distribution
by 2015-2016
They both focalise their aid distribution on the Asia-Pacific and multilaterals and global programs which include the world bank, the Asian Development Bank, United Nations agencies and global financing mechanisms such as the global fund to fight AIDS, tuberculosis and malaria.
The sector chart above portrayed the countries, continents and regions in which Australia donated aid in 2006 until 2007. It illustrates that Multilaterals, East Asia, Papua New Guinea and the Pacific and the Middle-East and Central Asia were the most common recipients of Australian Aid.
Australia's Aid Program
The world map above conveys the areas in which Australia donates and is yet to donate aid across the globe. The legend shows us that
Global Programs, East Asia and the Pacific
and Africa and the Middle East are and
will become the major recipients of
Australian Aid.
Advantages for Australia
Disadvantages for Australia
Advantages for Recipient
Disadvantages for Recipient
Where Australia gives aid and what AusAID does
http://au.answers.yahoo.com/question/index?qid=20100910190518AASuObF, Yahoo, 2013
http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_of_foreign_aid, Answers Corporation, 2013
Socio-Cultural and Environmental
As a result of Australia's beneficial support towards mainly third-world countries such as Afghanistan and Malawi, we in return are supported by numerous nations and the Commonwealth Government, which has signed bilateral and multilateral agreements to ensure that Australia will be provided assistance if there is an emergency.
Helps establish and preserve Australia's cultural, historical and social ties with other countries.
Aid workers and employees feel accomplished and satisfied with providing moral support and assisting those in need.
Improves and boosts Australia's reputation.
Australian companies can advance from programs in other countries which promote ecologically sustainable development. These programs are a source of employment and business for Australian firms.
Australian aid helps form links and build relationships with countries in a wide range of regions and around the globe, this crucial for interactions in the future and mitigating risk of war. They are also vital when Australian government officials need to discuss diplomatic, trade, defence and other issues.
Aid improves border security due to national ties.
Australian Aid helps make the Asia-Pacific region more stable and tolerable not just for Australia but other countries also.
Australian aid provided to recipient nations is not always a gift. Recipient countries and regions such as Papua New Guinea and the Middle-East at one stage need to repay Australia for their work. If the recipient nation is unable to repay back Australia through monetary funds, they may be able to offer defence options or trade agreements.
Australian aid develops global trade and stimulates economic co-operation.
It also establishes more jobs in aid agencies.
It successes growth of a particular country if it is used with sound economic policies.
As the average income improves, Australian businesses can gain new opportunities and new customers for their goods and services.
Australian Aid allows economic growth for both the donor and the recipient.
Australia is able to maintain the funds that they donate to the nations by asking for certain gains in return such as use of military bases and other resources the nation is in need of. The gains in return secure a sustainable economical, cultural and political bond between recipient and donor nations.
http://www.ask.com/question/advantages-and-disadvantages-of-foreign-aid, Ask.com, 2013
Socio-Cultural and Environmental
Many cases of aid such as the Copper Mine ordeal in Papua New Guinea (1993) occur when the people most affected and the intended recipients for the aid have not been included in the decision-making. Companies such as BHP which create issues such as the Copper Mine case will affect Australia's reputation overseas. As a result, there is a risk that aid can be given to companies more interested in making money out of the aid projects than improving the quality of life for the people affected.
Australian aid can be wasted on 'glorifying' the aid organisation rather than its intended purpose.
Australian aid can also help support authoritarian regimes - a type of government that concentrates political power in an authority not responsible to the people, a dictatorship.
Aid results in an increase in dependency and often reliance on it from recipient nations which will eventually lead to the country not being able to sustain itself without long-term aid being provided. Australia is the main source of income for Papua New Guinea which means the nation relies on Australian aid to support the country.
Australia may also use the recipient's land in negative ways. When giving aid, Australia is often granted use of the recipient land, in which they use to dump toxic waste onto, harming the wildlife and polluting the recipient country.
Donating aid will lead to loss of money, resources and economy.
Corruption is a major disadvantage of Australian aid. Aid money that is being given to government officials is often being taken by the officials for themselves rather than being rightfully given to the country to help solve its problems. Mobutu Sese Seko, who was the president of Zaire (now known as the Democratic Republic of the Congo after its name change in 1997) from 1965 – 1997 is thought to have stolen $5 000 000 000 from the nation's aid supply.
Australian aid can discourage development and lessen foreign investment as the recipient's country rises in value and exports become more expensive to foreign nations; foreign aid may undermine foreign investment.
An issue regarding aid programs arises when they are more concerned with providing opportunities for Australian businesses than in meeting the needs of communities.
Goods are often more expensive than if provided by local firms.
Australian aid may also prevent the development of an entrepreneurial class.
Socio-Cultural and Environmental
Australian aid helps many countries recover from crisis.
Emergency Aid given in times of disaster saves lives as recipients are provided with instant help when in need. Disaster relief after a natural disaster such as a tsunami includes clean water and sanitation, pharmaceutical drugs or medicines, food, shelter, power supplies, Australian aid workers required to rebuild homes, doctors and teachers and if administered after a major incident, can lead to improved health and living standards.
Australian aid workers assist in eradicating diseases such as small pox.
A recipient nation's status may rise as they are working with Australia, a first-world country.
Receiving Australian aid also helps to form alliances between nations. This immensely benefits the recipient country as if they are at war or have limited defence, multiple countries will be inclined to assist.
Australian aid strengthens links between Australia and recipient nations and also gives both nations more power.
Australian aid can also help countries develop natural resources and power supplies.
Economic growth is a main advantage of Australian aid. Nations that receive money invest it into their economy which helps to establish more jobs, improve infrastructure, and stabilise their economy. For example, China's gross domestic product growth rate increased 9.65% from the investment of the foreign aid into their nation’s economy.
The encouragement of industrial development can also create jobs and improve transport infrastructure.
Provision of medical training, equipment and medicines to doctors and nurses ensures they know the correct way to deal with a patient’s health. This results in a higher population, more people being employed, a higher national income and a more efficient and successful economy.
Australian aid for agriculture can help increase food production and as a result, improves the quality and quantity of food available.
Australian aid helps the recipient nation's currency rise in value.
Aid allows growth of a nation if it is used with sound economic policies.
The aid of practised teachers not only assists the education sector of a nation, but the economic sector as the higher the quantity of educated individuals, the more goods, services and assets available which contributes to constructing a better economy.
The main disadvantage of Australian aid is the endless cycle of poverty - the country receiving the aid becomes reliant on aid and is unable to sustain itself without long-term aid being provided, such as Papua New Guinea for example.
Australian aid may not be able to reach the people who need it most due to corruption which may lead to local politicians using aid for their own means or for political gain.
Aid can also be used to put political or economic pressure on the recipient nation. The country may end up owing Australia a favour.
Australian aid can increase the dependency of less economically developed countries (LEDC) on donor nations. Sometimes aid is not a gift, but a loan, and poorer countries may struggle to repay it. These recipient nations will continue to attempt to pay back the donor but most likely be unsuccessful and have to offer investment in other ways.
Infrastructure projects may end up benefiting employers more than employees.
It may be a condition of investments provided by Australia that the projects are run by Australian companies or that a proportion of the resources or profits will be annexed by the Australia.
Some development programs may lead to food and water costing more.
Social-cultural and Environmental
Often agricultural projects are not an advantage to smaller farmers and are usually 'large-scale'.
Australia may just be providing aid to recipients in order to gain interest, credit and attention.
Donated aid is usually short-term and lasts temporarily.
Australian aid workers using a recipient's land may contaminate or emit harmful toxins and waste which may result in damaged and disturbed flora and fauna.
Australia - New Zealand
Partnership For Development Co-operation in the Pacific
Australia and New Zealand commit to a new Partnership for Development Co-operation to further integrate the delivery of our development co-operation in the Pacific and make a real difference to the lives of the 2.7 million people living in poverty by promoting sustainable economic development and achievement of the Millennium Development Goals in the region. The Partnership marks a significant first step in implementing the Cairns Compact on Strengthening Development Coordination, which regional leaders endorsed at last week’s Pacific Islands Forum.

The Partnership is founded on common values including as neighbours in the Pacific, and members of the Pacific Islands Forum. Through this Partnership, Australia and New Zealand reaffirm their commitment to working with our neighbours to build a more secure, equitable and prosperous Pacific region. The Partnership is founded on a shared vision, including the achievement of real progress against the Millennium; Development Goals through implementation of the Cairns Compact; A common strategic direction, based on core aspirations such as promoting broad-based, private sector-led growth to achieve faster development progress; Agreed principles, including the use of partnerships based on mutual respect and mutual agreement; and practical action to integrate our efforts through expanded joint sector programs, combined assessments and monitoring work; and delegated delivery of assistance to each other.

This partnership is beneficial to Australia, New Zealand and the Asia-Pacific as it establishes a link between nations and allows neighbouring countries to co-operate and assist in development of the poorer areas of the Asia-Pacific.
Australia-Indonesia Partnership for Reconstruction and Development (AIPRD)
The Australia-Indonesia Partnership for Reconstruction and Development (AIPRD) is a treaty between Australia and Indonesia that supports Indonesia's reconstruction and development efforts of areas affected by the 2004 Indian Ocean earthquake and tsunami. AIPRD is Australia's second-largest bilateral agreement after Australia's aid treaty with Papua New Guinea.

The AIPRD was announced by Australian Former Prime Minister John Howard on 5 January 2005. It was inaugurated to address the Indian Ocean disaster, but also aims to assist extensive efforts to raise living standards through sustainable development and economic growth. It is a long-term program of sustained cooperation and is the single largest aid package in Australia's history. Its total aid commitment to Indonesia is almost $2 billion over five years.

The partnership promotes security and stability in disadvantaged provinces with eligibility for assistance in all areas of Indonesia. The priorities of Australia's partnership are health, education and local government services in Aceh ($50 million), rehabilitation assistance to other areas ($5 million), natural disaster management ($10 million) and to the Government Partnerships Fund ($50 million) to support exchange of skills and expertise between Australian government and Indonesian agencies. Scholarships enabling Indonesian postgraduate students to study in Australia are included in the fund with 600 available scholarships ($78 million), doubling the number of scholarships currently funded for Indonesia. More than $280 million of this funding has been allocated to specific projects such as the Aceh Rehabilitation Program ($80 million).

This benefits Australia as Indonesia has signed an agreement to ensure they will defend Australia, support Australia, trade with Australia and maintain peace with Australia. They will work together through regional and international fora on security matters to contribute to the maintenance of international peace and security. The treaty ensures equality, mutual benefit and recognition of enduring interests each Party has in the stability, security and prosperity of the other. Mutual respect and support for the sovereignty, territorial integrity, national unity and political independence of each other, and also non-interference in the internal affairs of one another is promised.

PNG-Australia Partnership for Development
Papua New Guinea (PNG) and Australia signed the PNG–Australia Partnership for Development in Niue on 20 August 2008. The Partnership introduces a new era of development cooperation that aims to increase progress towards the Millennium Development Goals (MDGs) and other PNG development priorities.

The Partnership provides a framework that allows Australia and Papua New Guinea to work together in close co-operation to meet common challenges and to achieve improved development outcomes and sustainable improvements in the quality of life of all Papua New Guineans. Revised Partnership schedules were agreed at the 2011 Australia-PNG Ministerial Forum.

These commit Australian and PNG support for the priority outcomes of the Partnership for Development, which include: Faster progress towards universal basic education and improved access to quality education at basic, secondary, technical and tertiary education levels, improving health outcomes by providing assistance for PNG to vaccinate more children, increase the percentage of births supervised by skilled staff, increase the availability of essential medical supplies and improve access to treatment for HIV/AIDS,
improved transport infrastructure to facilitate social development and economic growth by maintaining priority national roads and boosting airport safety and improved safety and justice by supporting PNG’s law and justice agencies in the areas of policing, security, access to justice, reconciliation and reduced corruption.

This agreement is essential in order to establish an alliance between the two nations, more trading rights, defence and labour programs and the use of Papua New Guinea's land.
Impacts on social justice and equity
Social Justice defines as the fair and proper administration of laws conforming to the natural law that all persons, irrespective of ethnic origin, gender, possessions, race, religion, etc., are to be treated equally and without prejudice (human rights). The term 'equity' refers to the quality of being fair and impartial, to be treated just and equal.

Australian Aid targets third-world countries and regions such as the Asia-Pacific, South Africa and the Middle-East. Aid isn't just provided in the form of monetary funds but often emergency food, water and services after the occurrence of a natural disaster. The aim of Australian Aid is to provide assistance and support to nations in need in order to decrease poverty-stricken areas and to increase social justice and equity.

As Aid is expected to be repaid, lower income countries cannot afford to pay back large sums of money in which were given to them so as an alternative, the recipient nation agrees to either export specific goods to Australia, agrees to provide defence to Australia when in need or to work for Australia.

Social Injustice and inequity become evident when Australia takes advantage of the recipient nation, in regards to labour for example, the conditions are poor, the available jobs are unskilled and the materials used are often from overseas so the workers are unable to make any money selling what they have produced, therefore the recipient nation remains socially unjust and inequity continues, leaving the issue unresolved.
Non-Government Organisations
Government Organisations
The Australian Government's role in regards to their overseas aid program is to improve the lives of millions of people in developing countries. Australia works with the governments and people of developing countries to deliver aid where it is most needed and most effective.

AusAID has helped Australia's neighbours and countries around the world to develop. For example, Australian aid has wiped out polio from the Pacific. Australian aid has seen more than 1.5 million children immunised against measles and polio in Papua New Guinea. AusAID also helped build the first bridge across the Mekong River in East Asia, boosting economic opportunities for millions of people living in the region. The Australian Government's water supply and sanitation programs are providing clean water for nearly 500,000 people in Tanzania, South Africa, Mozambique and Zimbabwe.
Oxfam Australia
Oxfam’s vision is a just world without poverty. They aim to create a world in which people can influence decisions which affect their lives, enjoy their rights, and assume their responsibilities as full citizens of a world in which all human beings are valued and treated equally. Over the past year, their work reached 8 million people in 30 countries. This was made possible through the support of more than 320,000 donors and campaigners.

Oxfam Australia's roles include Active citizenship — helping people in poverty to achieve their rights as full citizens, demand justice, and change beliefs, policies and practices to improve people’s lives; Accountability — supporting people to hold governments, corporations and international organisations, including Oxfam, to account for their responsibilities; Economic justice — to support people to make a decent living, leading dignified lives free from poverty and hunger; Essential services — to help people to access clean water, healthcare, education and sanitation and Rights in crisis— to support people to live safe from war, violence and natural disaster.
World Vision Australia
World Vision is a worldwide community development organisation that provides short-term and long-term assistance to 100 million people worldwide (including 2.4 million children). They have 22,500 staff members working in 96 countries and their aim is to work towards eliminating poverty and its causes. World Vision has an annual budget in excess of US$1.5 billion and with the support of more than 400,000 Australians, World Vision helps more than 20 million people every year.

World Vision is committed to the poor as their organisation is Christian. World Vision work with people of all cultures, faiths and genders to achieve transformation. They do this through relief and development, policy advocacy and change, collaboration, education about poverty, and emphasis on personal growth, social justice and spiritual values.

World Vision act through transformational development by recognising people's physical, social, spiritual, economic and political needs; emergency relief – following the International Code of Conduct for disaster relief organisations, the promotion of justice – we advocate for victims of injustice and poverty and strategic initiatives - such as programs promoting community leadership public awareness.
Caritas Australia
The Catholic Agency for Aid and Development, Caritas began in Australia in 1964. For over 110 years, Caritas has worked towards the creation of a just world. A Catholic Agency for International Aid and Development, Caritas is Latin for love and compassion – two qualities which are central to their work. Caritas Australia supports long-term development programs in impoverished communities in Africa, Asia, East Timor, Latin America, Indigenous Australia and the Pacific, helping oppressed people to rediscover their dignity by taking greater control over their lives and overcoming poverty.

Caritas Australia assists those in need to break free from the cycle of poverty, regardless of their ethnicity, political beliefs, gender or religion; can help them become self-sufficient so they don’t need to rely on charity; can help them go to school and learn better ways to farm using sustainable agriculture techniques; and can help them support their family and community.

Their work includes responding to emergencies such as the food crisis in East Africa; Implementing Disaster Risk Reduction strategies, particularly in the Pacific Islands, where villagers are experiencing rising sea levels; Helping farmers with sustainable agricultural practices, such as the Farmer Field School in Nepal; Building water catchments in regions like Ethiopia, so communities have access to fresh, clean water and are able to grow crops;
Providing access to education and workshops in regions of South-East Asia, so vulnerable people can learn new skills and training rural midwives in quality antenatal, delivery and postnatal care for women in rural areas.

Article Analysis - Australian Aid: it's just not working
Source: http://www.theguardian.com/commentisfree/2013/aug/29/australia-aid-not-working
Australia's aid program focuses on the Asia Pacific region. AusAID is internationally recognised for its leading role in the region, particularly in Papua New Guinea (PNG) and the Pacific. Their aid is even more important given two-thirds of the world’s poor—some 800 million people—live in the Asia Pacific, yet they receive less than one third of global aid. Australia also provides assistance to Africa, the Middle East, Latin America and the Caribbean. Australian aid to Africa has increased significantly in recent years and now represents around five per cent of the aid program.

Despite a rapidly growing global population, the world has made steady progress in the fight against poverty. Over the past 40 years a woman’s chance of dying during or after childbirth has dropped by 50 per cent, the chance of an adult not being able to read has halved and the average life expectancy in developing countries has increased by 20 years. Australian aid has contributed to these achievements, making a major difference to the lives of our neighbours and boosting growth and stability in our region.

Australian aid also improves our regional security. It helps partner governments improve law and order. It helps them to prevent and recover from conflict. Australia also helps them to manage threats such as people trafficking, illicit drugs, HIV/AIDS and other diseases. Australia's economic and security interests are better protected because AusAID is helping to build stronger communities and economies, and more stable governments.

Poverty remains a global challenge, however, with 1.4 billion people still living on less than $1.47 a day. A lack of clean water, food, housing, health care, education and economic opportunities remain obstacles for large numbers of people in neighbouring countries and in Africa, Latin America and the Caribbean.
The Australian Agency for International Development (AusAID) manages the majority of Australia’s aid program. Other government agencies, such as the Australian Federal Police, help deliver the aid program too.
The term 'Development assistance' refers to official development assistance (ODA), which is another name for aid.
The cost of Australia's aid program is around one per cent of Australian Government expenditure, compared to the 33 per cent spent on social security and welfare.

In 2013–14, Australia will provide around $5.7 billion worth of official development assistance. The Australian Government continues to increase aid and is committed to reaching 0.5 per cent of Gross National Income by 2017–18.
Australia works with the governments of neighbouring countries to help them improve the way they deliver economic and community services.

Australian aid is delivered through an array of methods: through the delivery of goods and services (e.g. humanitarian relief, building health clinics and schools, immunising children); building local institutions through training of staff, improving management systems and institutional cultures and policy dialogue and reform through ongoing discussions between Australian development advisers in the field and their local counterparts in government civil society and business.

Increasingly, Australia is using partner government systems. This way Australia's aid helps to strengthen those systems and eventually they won’t need Australia's support. Australia also funds not–for–profit organisations, also called non–government organisations, such as World Vision and Oxfam, to deliver aid programs directly to people in need. Some projects are extensive and complex and need to be managed by Australian or international companies. These companies are selected through a rigorous and competitive process. Some aid is delivered by Australian–funded advisers in developing countries, who share their knowledge and skills with local counterparts.

In disaster emergencies—when communities are devastated by cyclones and earthquakes or are recovering from conflict—AusAID staff travel to affected areas to provide immediate support. AusAID also contributes funding to Australian and international organisations that help people in emergencies, such as the International Federation of Red Cross and Red Crescent Societies. Australia also provides funding to United Nations organisations, including UNICEF and the World Food Program, and other international organisations such as the World Bank. Australia's funding, along with contributions from other countries, helps these organisations to operate and run projects in developing countries.

Australia’s whole-of-government approach to aid delivery has been praised internationally and its strength forged through a decade of co-operative work in Timor-Leste, Solomon Islands, Papua New Guinea, in the aftermath of the Indian Ocean tsunami, and more recently in Pakistan and Afghanistan.

Just over 10 per cent of the aid program is delivered by federal agencies other than AusAID. A further 4 per cent is delivered through joint partnerships with AusAID. In 2011–12, the aid expenditure of other federal agencies is forecast to be more than half a billion dollars, compared to less than $200 million 10 years ago. By 2015–16, this share is forecast to increase to closer to 12 per cent or up to $900 million per year.
Source: AusAid website
The Millennium Development Goals (MDGs) are eight international development goals that were officially established following the Millennium Summit of the United Nations in 2000, following the adoption of the United Nations Millennium Declaration. All 189 United Nations member states and at least 23 international organizations have agreed to achieve these goals by the year 2015. The goals are:
Eradicating extreme poverty and hunger
Achieving universal primary education
Promoting gender equality and empowering women
Reducing child mortality rates
Improving maternal health
Combating HIV/AIDS, malaria, and other diseases
Ensuring environmental sustainability
Developing a global partnership for development
Halve by 2015 the proportion of people without sustainable access to safe drinking water
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