AusAID Home | Annual Reports | 2006-07 Index | Contents
| Indicator |
Result |
| 75 per cent of activities receive a quality rating of satisfactory or higher; significant activity outputs within guiding themes. |
The aggregated quality ratings for country and regional programs in 2006-07 met the 75 per cent quality performance target. Significant achievements by individual programs are reported below. |
2006-07 was the first year of implementation for the joint Papua New Guinea—Australia Development Cooperation Strategy 2006-2010. The strategy was developed in collaboration with the government of Papua New Guinea (PNG), and informed by Australian whole-of-government engagement. It supports a different way of operating in PNG, with mutual commitments to focus more on development outcomes, plan within total PNG government domestic and aid resources, push further alignment with PNG's plans, use PNG systems more extensively, and encourage a wider range of partnerships.
PNG's macroeconomic performance and stability continued to improve during
the year, significantly assisted by record mineral revenue inflows. The
near-term macroeconomic outlook remains favourable. PNG is contributing
more development spending and some aspects of public financial management
have improved markedly. But others remain weak and public administration
reform has stalled. PNG is making a more concerted effort to track progress
against its development objectives, but the story is not encouraging. Progress
in the macro-economy, fiscal management and resource allocation is yet to
translate to widespread improvement in service delivery or economic opportunity.
PNG
is a long way from meeting most of its development targets.
The Australian aid program in PNG is pitched at fundamental development challenges facing the country including improving governance, generating broad-based growth, improving service delivery and tackling HIV/AIDS.
In 2006-07, Australia helped improve PNG's macroeconomic and financial management, as well as the performance of the institutions of accountability. We have strengthened the performance of provincial administrations, promoted the beginnings of reform of sub-national government finances, improved and helped rationalise resource allocation in the transport and law and justice sectors, and driven the creation of a single PNG-led national fight against HIV and AIDS. International partnerships have facilitated PNG access to Global Fund and Clinton Foundation expertise and finances. Without Australian aid, advances in primary school enrolment would not have taken place and basic medical supplies would be scarcer than they are, although overall education and health services have not met demands. The sub-national program has demonstrated the potential development impact of improved governance at the provincial level. Australia's churches partnership and community development programs have been successful in building the capacity of PNG civil society.
The fact that PNG is not developing on the ground—even in an environment of macroeconomic stability and modest economic growth—means that we must constantly review our strategy for reversing stagnant or declining development indicators. One of PNG's central development challenges is to convert resource revenues into development outcomes across the country through the budget and national and sub-national public administrations. While Australia does important work with churches and other civil society organisations, PNG's public sector is critical. We will continue to work closely with the new PNG government, to be formed following July 2007 elections, to address its capacity and reform challenges, including helping the government to articulate a monitored public sector reform plan we can support.
In 2006-07, AusAID country program aid totalled $309.2 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $334.8 million.
FIGURE 8: ESTIMATED TOTAL AUSTRALIAN ODA TO PNG BY SECTOR 2006-07
Text description ESTIMATED TOTAL AUSTRALIAN ODA TO PNG BY SECTOR 2006-07
Improving governance is vital to PNG's development prospects. Good governance involves sound democratic and state institutions and a participative and vibrant civil society with confidence in the state. Australian support focuses on public sector reform as being central to improving governance, with a specific focus on public financial management, public administration reform and adherence to the rule of law, including improved accountability and anti-corruption enforcement. Support for strengthened democratic governance involves addressing both state and civil society capacity, and promoting partnerships. While continuing strong support for national level government, Australia's sub-national program in PNG is increasing support for improved governance and service delivery at the level of provinces and districts.
Strengthening public financial management has been a priority area for the public sector reform efforts of both the PNG and Australian governments in 2006-07. Technical assistance, including through the Enhanced Cooperation Program, has contributed to the governments improved fiscal performance, especially with respect to budget processes, expenditure management and audit capacity.
Key achievements in 2006-07 included:
Improved accountability and anti-corruption efforts were also promoted. The program helped the auditor-generals office clear a backlog of audits of public accounts, including for provincial governments, from 2004 and 2005, and paved the way for the active operation of the parliamentary public accounts committee. Support for state accountability contributed to a steady increase in leaders being referred to leadership tribunals by the ombudsman commission over the last three years, with 60 per cent convicted in 2006 compared to 17 per cent in 2005, as well as the recruitment of additional officers to the commission as a result of a 17 per cent increase in its recurrent budget. The re-established National Anti-Corruption Alliance, supported by AusAID, launched its first investigation in 2006 into the Southern Highlands Provincial Administration leading to 18 arrests.
Australia is supporting important policy, strategy and capacity improvements across a range of sectors and for provincial governments. A key challenge for strengthening democratic governance in PNG in 2006 has been to prepare for the 2007 national and local-level elections. Support to the PNG electoral commission enabled the first ever government interdepartmental electoral committee to be established for the 2007 election and helped increase the commissions influence within the government, a consequence of which was full funding of its election management and coordination budget request. Australia also supported civil society involvement in an extensive pre-election awareness program across PNG. As a result the government was better prepared for the 2007 elections than was the case in 2002.
With officers collocated in four provinces in 2006-07, AusAID helped to improve budgeting, planning and program implementation as part of its role of delivering services to the countrys largely rural population. Modest budget support for the provinces is tied to progress in implementing corporate plans. The incentive effect provided by this support has encouraged a further six provinces to prepare corporate plans and to commit to the PNG governments provincial performance improvement initiative for 2007.
Australia is supporting an enhanced community and civil society role in PNG's development. The Churches Partnership Program has significantly boosted the institutional governance of PNG church agencies. This support has allowed the seven participating churches to better manage health, HIV/AIDS and education services and brought credibility to influence government. Similarly, an internal evaluation of the Community Development Scheme found that organisational development processes led to effective management of 25 civil society organisations. Australian support has also been instrumental in promoting a range of successful community engagement responses to PNG's law and justice challenges.
The Law and Justice Sector Program in PNG is providing support for a community policing initiative to address the high levels of crime and violence perpetrated at Barola Hill.
Barola Hill is on the Highlands Highway, the main transport and trade route between the highlands provinces of PNG and the port of Lae. The highway is the economic artery of the nation, making it attractive to criminals and raskol gangs. Criminal activity along the highway, including armed robbery and rape, is common. Barola Hill was renowned as a hotspot for many years as its location and geography made it easy for gangs to watch unsuspecting vehicles climb slowly up the hill before launching surprise attacks. The area had become increasingly unsafe for local villagers and those driving through. Police reported that there were, on average, five armed hold-ups occurring every day at Barola Hill.
Years of hard-hitting police crackdowns in the local area had not worked and the lack of a police presence on the hill was also an obstacle. There was a high level of distrust between the local Barola community and the police.
Senior Sergeant Dick Thambua, a local traffic officer with 33 years highway patrol experience, decided to change strategies and use a community policing approach of working with, rather than against, the community to address the problem. He began to visit the community regularly, establish strong relationships and hear the villagers perspectives on ways to make the highway safer.
Sergeant Thambua initiated community policing highway patrols and organised for local non-government organisations and businesses to provide training programs for local youths on farming skills, mediation, conflict resolution and leadership to work. Through these programs, raskol gang members began to see a viable alternative to a life of crime. A shipping container was placed at a key location in Barola as a makeshift police station. There are now proposals to enhance community interaction around the police post with a community centre, coffee shop and market stalls. Since the program was initiated, police report that Barola Hills five hold-ups a day were reduced to zero.
PNG's medium term development strategy identifies broad-based economic growth as a key priority. Australia provides targeted support for this objective including:
In 2006-07 Australian successes have been mainly in supporting a conducive macroeconomic environment for growth, transport infrastructure and through targeted support for agricultural development.
Australia has helped foster the environment for growth through Enhanced Cooperation Program support for sound macroeconomic policy, for example, by helping to significantly reduce PNG's public sector debt. However, PNG has a substantial agenda of microeconomic and regulatory reform still to undertake.
Serviceable roads, wharves and air-strips, as well as regular transport services, are crucial to PNG's growth prospects given its rural population, reliance on agriculture and fisheries for rural livelihoods, and difficult terrain. Australia's decade-long involvement in the transport sector and continued dialogue on resource allocation issues contributed to increased budgets for road maintenance, and to policy coherence across the sector. Australia helped develop PNG's national transport development plan 2006-2010 and supported the establishment of a PNG government coordination committee to implement the plan. Australian funds in the sector supported maintenance of a 340 kilometre section of the Highlands Highway and 620 kilometres of the Bougainville road network. An additional 200 kilometres of the national road network has also been maintained with Australian assistance, providing income opportunities and contributing to the recommencement of economic activity.
In addition to improved road access, AusAID support for the rehabilitation of the cocoa industry in Bougainville helped the province to resume its status as PNG's largest cocoa-producing province for the first time since conflict erupted in 1988. An independent review showed improved income opportunities for women and producers from disadvantaged areas arising from the AusAID project. Rural women in the highlands are also benefiting from Australian funding for the redevelopment and expansion of the Mount Hagen market.
The Mount Hagen market redevelopment was funded to improve the livelihood and income-earning opportunities for PNG's largely rural western highlands population. The project was proposed by local authorities and businesses and supported by Australia under the Australia-PNG Incentive Fund. It cost approximately $3 million and was opened on 6 December 2006.
The marketplace has room for 1800 sellers and specialises in produce, livestock and handicrafts. A police station and a health clinic have been built on the site to provide a safe environment and basic health care, including HIV/AIDS awareness. Public phones, toilets and running water are also available, features found in no other PNG market. Capacity has also been significantly expanded for both buyers and sellers.
The new market has created formal employment opportunities for 49 western highlanders and countless informal income earning opportunities for growers and sellers in the province. Improved security conditions have encouraged more women to earn an income as retailers. Initial reports indicate a substantial increase in the volume of rural produce traded in the province and expanded trade to other parts of PNG.
The opening of the redeveloped Mt Hagen market, Western Highlands Province Photo: Belinda Conn
Australia has been supporting agricultural research in PNG over the past decade. An independent assessment of finance provided for the National Agriculture Research Institute concluded that the support had been essential to the institute becoming a competent organisation capable of contributing to PNG's development objectives.
Efficient and effective service delivery to the bulk of the population remains a central development challenge on which PNG's performance is highly variable. Both PNG's medium-term development strategy and the joint development cooperation strategy highlight dysfunction and confusion over functional and financial responsibilities, as well as inequity of funding across the three levels of government as key constraints to service delivery. Australia is supporting PNG to tackle these constraints by increasing support for service delivery systems at provincial and district levels and retaining long-standing support for traditional sector programs through national agencies. Australia is also committed to supporting special-case provinces such as Bougainville, and to supporting partnerships between state and non-state service providers, especially churches.
AusAID support for the work of PNG's National Economic and Fiscal Commission is targeted directly at tackling the dysfunction and funding inequities across the three levels of government. Studies on the costs of, and responsibilities for, service delivery and a review of inter-governmental financing arrangements led to tabling in parliament key changes to provincial financing arrangements. The changes, when enacted, will better match funds to responsibilities based on the actual cost of service delivery to different localities.
AusAID support for PNG's education system aims to address significant access and quality challenges. In support of improved education quality, a major achievement during the year has been to complete PNG's first ever standardised national curriculum. Eight-hundred primary schools also benefited from funding for better schools. Australia also supported significant strengthening and reform of education administration and the adoption of a sector program approach to delivering education services.
PNG has introduced its first national school curriculum in 60 years with Australian support over six years valued at over $43 million. The new curriculum has been implemented in all elementary, primary and lower secondary schools across all provinces.
AusAID support for the education system aims to address both access and quality. The national curriculum has been a major achievement with supporting materials of international standard developed for all PNG elementary, primary and lower secondary schools. Materials were distributed to 8000 schools, and a teacher in-service plan was delivered to equip teachers to implement the new curriculum from 2007.
Australia will continue to support PNG's department of education to develop and implement upper secondary curriculum and monitor and evaluate the curriculum reforms.
Grade 8 students at Ororo Primary School (National Capital District) completing an exercise from the high school text book Making a living—part of a series of curriculum materials produced through AusAID's Curriculum Reform Implementation Project Photo: Anna Awasa
PNG's health sector is making insufficient progress to meet targets on almost all 20 national health indicators. AusAID continues to work at the long-term foundations of an effective public health service however, and has financed an increase in outreach clinics which has resulted in higher rates of immunisation. AusAID also continued to ensure an emergency supply of health centre kits country-wide, back-stopping and filling gaps in PNG's pharmaceutical procurement program. A key success has been Australia's support for increased international health system presence in PNG. AusAID also facilitated:
The law and justice program has helped increase access to justice for PNG's people. Better management of court cases for example has led to a significant reduction in case backlogs. During the year, PNG's main national court complex, the Waigani National Court, reduced its backlog of criminal cases by 73 per cent. Technical assistance also facilitated targeted training for 65 police, prosecutors and judges for amended sexual offence laws, and increased the criminal justice systems ability to appropriately treat victims of gender-based violence. New integrated juvenile and adult court and lock-up facilities were opened in Sandaun province.
Put down the gun, pick up the shovel is the motto for the Yumi Lukautim Mosbi project, a partnership between the PNG government, communities and other stakeholders, and supported by AusAID's Law and Justice Sector Program, to address crime and safety.
Australian rock singer Jimmy Barnes visited Baruni Village in Port Moresby to get first hand accounts from young people about their experiences relating to crime, substance abuse and unemployment, and the difference the activity has made in terms of personal development and safer and better communities.
Australian rock singer, Jimmy Barnes visiting Baruni Village in Port Moresby Photo: AusAID
PNG has a generalised HIV epidemic with an estimated prevalence of 1 to 2 per cent and rates of infection increasing faster in rural areas than in urban centres. HIV/AIDS presents a potentially serious threat to PNG's development prospects. Australia is working with government, civil society and the private sector in PNG to support the national HIV response.
At December 2006, the cumulative total of reported cases of HIV stood at 17
568. Increasing numbers of HIV cases do not necessarily indicate an escalating
epidemic. As prevention and treatment services are increased, it is expected
that more people
will come forward for testing and be identified as HIV positive.
Australia, supported by the donor community, helped the PNG government develop a single annual plan and budget for 2007 resulting in a 300 per cent increase in PNG's allocation for HIV/AIDS prevention in the 2007 budget. This process was instrumental in strengthening partnerships between government, donors and civil society. AusAID co-financing agreements with the Asian Development Bank and the Clinton Foundation have further strengthened the coordination of the HIV response.
Australia's HIV/AIDS support project, which was completed in December 2006, provided a practical foundation for a new, expanded program approach. Among other achievements, the project supported the establishment of 30 voluntary counselling and testing centres and trained 10 000 people in testing, counselling and home-based care. The project also supported condom distribution, production of education materials and provincial prevention programs.
HIV mainstreaming across the PNG program also made significant progress during the year.
Key achievements in 2006-07 included:
Australia's commitment to the Pacific is long-term. Accelerating economic growth, fostering functioning and effective states, investing in people, and promoting regional stability and cooperation are at the heart of our aid approach.
Success in achieving growth in the Pacific, which is necessary for reducing poverty and encouraging sustainable development, has been mixed. Pacific countries that have fared best in encouraging growth are those that have stability and good governance, and have capitalised on economic opportunities as well as the skills and talents of their citizens.
Making the best use of regional approaches such as those under the Pacific Plan, while tailoring these partnerships to the specific needs of individual countries through their own national development frameworks, is key to success. Encouraging greater donor coordination in-line with these regional and national strategies has been a focus of our efforts in 2006-07, and will continue to be so.
In 2006-07, AusAID's country and regional program aid to the Pacific totaled $275.8 million. Other Australian assistance through AusAID's global programs and through other government departments brought total ODA to an estimated $440.9 million.
FIGURE 9: ESTIMATED TOTAL AUSTRALIAN ODA TO THE PACIFIC BY COUNTRY 2006-07
Text description ESTIMATED TOTAL AUSTRALIAN ODA TO THE PACIFIC BY COUNTRY 2006-07
The Australia-Pacific Technical College
Training skilled workers from Pacific Island Forum member countries in targeted industry sectors, and improving their local, regional and international employment opportunities, will directly contribute to accelerating economic growth in the Pacific.
The Australia-Pacific Technical College was announced by Prime Minister John Howard and welcomed by leaders at the Pacific Island Forum in October 2006. Australia will provide almost $150 million in funding for the college through to 2011.
The college will deliver internationally recognised, Australian-standard, vocational education and training in four central locations—Vanuatu, Samoa, Fiji and Papua New Guinea. Courses are designed to meet national and regional skills needs, and increase job opportunities and economic growth in the region.
A major milestone was met in 2006-07, with the preliminary phase of planning completed to allow the college to commence operations in July 2007. Training is being provided in automotive, construction, electrical and manufacturing trades, hospitality and tourism. Training in health and community services is expected to commence in 2008.
Pacific 2020
Following the launch of the Pacific 2020 report by the Minister for Foreign Affairs, Alexander Downer in May 2006, a series of events were held in the region to disseminate key findings. Pacific 2020 forums were held in Papua New Guinea and the Solomon Islands in July 2006, and in conjunction with the Australian National University in Fiji and Vanuatu.
Key outcomes of Pacific 2020 in 2006-07 have included a number of Pacific governments planning and implementing some of the reforms discussed in the report. AusAID also increased its strategic focus on a number of the growth sectors, particularly land, fisheries and private sector development.
To build on the learning from Pacific 2020, AusAID will produce an annual Pacific survey to spread knowledge and contribute to dialogue on economic reforms. The first survey will be released in early 2008.
Land
The Australian Governments White Paper on the overseas aid program notes that land is fundamental to economic growth in the Pacific and directs AusAID to undertake a two-stage Pacific land program. AusAID has almost completed the research phase of the program, which involves preparing 17 case studies on innovative practices in land tenure and administration in the region.
The case studies aim to inform Pacific governments, officials, land holders and the private sector on how other countries in the region have addressed similar issues. In 2008-09 Australia will look at providing support for Pacific countries that wish to strengthen their land tenure and administration systems.
Fisheries
Maintenance of ecologically-sustainable coastal and oceanic fisheries in the Pacific is a matter of regional strategic importance with implications for food security, regional economic growth and regional stability.
AusAID has developed a new framework that recognises the importance of fisheries in Pacific island economies and the need for a more cohesive and strategic approach to its engagement in fisheries. The framework will:
Australian support of $7.5 million in 2006-07 helped improve the strategic focus and performance of the two key regional organisations working in fisheries: the Secretariat of the Pacific Community and the Forum Fisheries Agency. It has also contributed to fisheries training and development of community-based management in the Haapai area through the Tonga fisheries project, now in its final phase.
Pacific environment program
The Pacific faces increased environmental pressures, including those associated with climate change, energy and water security. Australia's regional environmental program continued to assist the Pacific to monitor, predict and adapt to impacts of climate change, including sea level rise and climate variability.
Key achievements in 2006-07 included:
Governance
AusAID's governance approach has five main cross-cutting areas: enhancing economic management, strengthening the rule of law, promoting public sector reform, strengthening democratic institutions and processes, and strengthening civil society. Australia is also promoting regional solutions to shared governance concerns, particularly through the Pacific Islands Forum.
Regionally, the Pacific Governance Support Program funds activities that link Australian Government agencies directly with Pacific counterparts and that support regional governance approaches. This whole-of-government approach uses existing expertise within the Australian Public Service and fosters officer-to-officer links throughout the Pacific. Total expenditure for this program in 2006-07 was approximately $5.7 million.
Key achievements in 2006-07 included:
Key achievements in 2006-07 included:
Pacific health
The pattern of illness in Pacific island countries is changing with non-communicable diseases predicted to reach 60 per cent of the disease burden by 2020. At the same time infectious and vector borne diseases, including malaria and dengue, remain a serious problem. There is also a relatively high rate of sexually transmitted infections, and the prevalence of HIV/AIDS, although still relatively low, is increasing.Australia is a major donor in the health sector in the Pacific working closely with Pacific island governments and other donors, primarily through bilateral programs in alignment with national health plans.Key achievements in 2006-07 included:Security and transboundary
Regional security, human security and transboundary threats are increasing challenges in the Pacific because of its growing populations, weak governance and capacity, and environmental challenges. These threats encompass transnational crime, maritime security, illegal fishing and forestry, infectious diseases and pandemics, and severe natural disasters.Australia is implementing a whole-of-government, long-term response in coordination with partner governments and regional communities through national and transnational networks to assist security and transboundary threats in the Pacific region.Key achievements in 2006-07 included:Solomon Islands
The goal of Australia's development assistance is to foster a peaceful, well-governed and prosperous Solomon Islands. Through its bilateral program and the Regional Assistance Mission to Solomon Islands (RAMSI) Australia's aid program is aimed at:Law and justice
The Solomon Islands government was able to:
Health services
An earthquake and tsunami hit western Solomon Islands on 2 April 2007 affecting 36 500 people, with 52 confirmed dead. About 6300 houses were damaged or destroyed across 304 communities.
Australia responded quickly to this disaster by deploying Defence and civilian medical teams and relief supplies, which prevented large scale outbreaks of diseases such as diarrhoea and malaria. Australia's $7 million emergency response and recovery assistance included:
An AusAID-funded Solomon Islands Health Ministry assessment of affected infrastructure provided accurate information to the government during the first week of the disaster and allowed health teams to be deployed strategically to the most affected areas ensuring the immediate loss of life remained relatively low.
Australia continues to support the National Disaster Management Office to improve its capacity to manage risk and disasters, as well as the Solomon Islands Red Cross through a project aimed at strengthening capacity to respond to disasters. With Red Cross assistance, Australia has funded the pre-positioning of relief supplies in Honiara, Gizo, Auki and Lata, trained emergency response teams and supported communities to undertake vulnerability assessments.
Unloading AusAID relief supplies from an RAAF C-130 in Munda, western Solomon Islands, two days after the tsunami Photo: Stefan Knollmayer
Vanuatu
Australia is the largest donor country to Vanuatu, and all other major donors have increased their support in recent years partly in acknowledgement of the positive environment for reform. Australian aid is focused on improving governance, service delivery and generating broad-based growth.
In 2006-07, AusAID country program aid to Vanuatu totalled $22.1 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $31.1 million.
Over the last year, Vanuatus macroeconomic performance continued to improve. Growth in gross domestic product was estimated at 5.5 per cent in 2006, keeping well ahead of the estimated population growth of 2.7 per cent a year. This growth is due to increased tourism, fortuitous commodity prices, construction and land sales, and is influenced by macroeconomic stability. While the economic environment provides a sound backdrop for reform, this is also contingent on stable and positive political leadership.
Key achievements in 2006-07 included:
Fiji
Fiji faces an uncertain future after the military takeover of the civilian government in December 2006. Fijis already fragile economy is expected to contract more than 2.5 per cent over the coming year, causing severe hardship for the third of the population living in poverty, particularly women, those in rural areas and on the outer islands. Fiji has experienced four coups in the last 20 years. Each time, the effects of serious and social upheaval have reverberated for years, manifested in deteriorating physical infrastructure, rising poverty, and unemployment and squatter settlements.
Before the coup, AusAID's country program was contributing to stronger national institutions in the law and justice, health and education sectors. Significant public sector reform and infrastructure initiatives were about to get underway.
Key achievements in 2006-07 included:
The coup, broadly condemned by the international donor community, has resulted in discouraging reversals in governance, respect for human rights and the rule of law. The Australian aid program suspended those initiatives that were compromised or rendered ineffective by the military, including public sector reform and support for the courts, police and prisons, while seeking, where possible, to retain programs supporting the people of Fiji. AusAID maintained its support for health, education, community development, the garment industry and scholarships programs.
In 2006-07, AusAID country program aid to Fiji totalled $17.8 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $31.2 million.
Samoa
Australian aid contributes directly to the government of Samoas strategy for development supporting sector planning in partnership with other donors, particularly New Zealand, the Asian Development Bank and the World Bank. Our key focus is on improving governance and strengthening the governments capacity to deliver services in education and health.
In 2006-07, AusAID country program aid to Samoa totalled $12.9 million. Other Australian assistance through regional and global programs and other government departments brought total ODA to an estimated $19.6 million.
Key achievements in 2006-07 included:
Tonga
The year has seen continuing political and economic challenges in Tonga. 2006 was marked by the death of King Taufaahau Tupou IV, the downsizing of the public service by one third and the riots of November, which destroyed 80 per cent of the central business district. Tonga is now heavily focused on business recovery, the challenge of stabilising the economy, restarting the political reform process and reconstructing the capital of Nukualofa.
Australia is assisting Tonga to meet its political, economic and governance challenges by funding a business recovery facility that will provide assistance for reconciliation, public service reform, legal assistance, customs and revenue assistance, and better management of health and waste services.
In 2006-07, AusAID's country program aid to Tonga totalled $9.1 million. Other Australian assistance, through AusAID's regional and global programs and through other government departments, brought total ODA to an estimated $13.9 million.
Key achievements in 2006-07 included:
Waste collection services now cover the whole island of Tongatapu for the first timethis village of Kolomotua benefits from the new waste service Photo: Cathy Reid
Nauru
Nauru continues to face significant economic, social and developmental challenges. Over the last decade, the economy has shrunk due to declining phosphate production and few revenue options. Limited management, administrative and policy capacity has hampered growth, and service delivery has declined such that power and water distribution systems are unreliable, and health and education services require considerable support. However, over the last few years there have been significant advances toward improved financial and economic management, stronger policy development and public sector reform. In 2006-07, Australian assistance focused on economic and governance reforms, strengthening law and justice, fostering more sustainable resource and infrastructure management, and improving education and health outcomes.
In 2006-07, AusAID country program aid for Nauru totalled $19.4 million. Assistance through AusAID's regional programs and other government departments brought total ODA to an estimated $29.4 million.
Key achievements in 2006-07 included:
Kiribati
In 2006-07, AusAID country program aid to Kiribati totalled $6.5 million. Other assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $12.9 million.
Key achievements in 2006-07 included:
Small island states
Australia provided support to a number of other Pacific island nations in 2006-07 to a total of $7.6 million. AusAID's country programs included the Cook Islands, Tuvalu, Federated States of Micronesia, Republic of Marshall Islands, Republic of Palau, Niue and Tokelau. Assistance targeted human resource development, governance reforms, outer islands infrastructure, education, small grants schemes for community organisations and contributions to International Trust Funds.
Indonesia's economy is continuing to gain momentum and the macroeconomic environment is generally improving. Economic growth reached almost 6 per cent during the last half of 2006 and this achievement is expected to continue in 2007 with a projected growth rate between 6 and 6.5 per cent. However serious challenges remain that AusAID is working with the Indonesian government to address, including high levels of poverty and unemployment, poor infrastructure, persistent corruption and lack of access to basic services.
Despite steady growth, the proportion of the population living in poverty increased from 16 per cent in 2005 to 17.8 per cent in 2006, and the open unemployment rate is above 9 per cent. Indonesians lack access to quality health and education services, and the countrys investment in human capital and infrastructure is inadequate to maintain growth levels. Conflict still affects a number of regions and despite effective action by the Indonesian police, the threat of terrorism remains.
Decentralisation began in earnest in 2001 and sub-national governments now manage around 40 per cent of total public funds each year. While this has strengthened the demand for better governance and services in the regions, there is a wide disparity in the capacity of local government officials to plan, implement and manage the delivery of these services.
Indonesia is located in a region of seismic and geothermic instability which means it is also vulnerable to earthquakes, volcanic eruptions and tsunamis. Aceh and Nias are continuing work to recover from the destruction caused by the December 2004 tsunami and earthquake. On 27 May 2006, Java was hit by an earthquake in Yogyakarta killing 6000 people. Two days later a gas well exploded in East Java causing subsequent hot mudflows. Total damage and losses from these two incidents is estimated at up to $7 billion.
HIV/AIDS is an increasing concern, with an estimated 3300 to 8300 deaths from AIDS each year. Indonesia is also thought to have the highest avian influenza risk in the world and one of the lowest capacities to respond.
Development cooperation with Indonesia is of significant importance to Australia, and Indonesia became the largest recipient of Australian development assistance in 2006-07. The aid program covers all major development sectors in Indonesia and the breath of Australian engagement reflects the range of bilateral and diplomatic priorities that are addressed. These priorities include areas as diverse as avian influenza, counter radicalisation, regional economic integration and illegal fishing. The increasing involvement of a range of Australian Government agencies in the aid program has resulted in stronger relationships with our Indonesian counterparts and greater understanding between governments.
During the year, AusAID delivered $294.2 million in aid to Indonesia, including $125.2 million through the Australia-Indonesia Development Cooperation Program and $169 million through the Australia-Indonesia Partnership for Reconstruction and Development. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $328.2 million.
Australia's aid program to Indonesia is in the process of developing a new five-year country strategy. Over 2006-07, the program continued to focus on four main areas:
Output 2.1 provides details on major achievements in Aceh and on the Australia-Indonesia Partnership for Reconstruction and Development.
FIGURE 10: ESTIMATED TOTAL AUSTRALIAN ODA TO INDONESIA BY SECTOR 2006-07
Text description ESTIMATED TOTAL AUSTRALIAN ODA TO INDONESIA BY SECTOR 2006-07
Australia is improving opportunities for economic growth in Indonesia by addressing market, regulatory and infrastructure constraints in key areas and with targeted groups. A focus has been on improving infrastructure and economic production in eastern Indonesia to enhance opportunities for economic growth. A public works official announced in early 2007 that 40 per cent of all Indonesian national roads were in a state of disrepair. AusAID has developed arrangements for road improvements in eastern Indonesia through the use of loan instruments using government systems that are closely harmonised with those of the World Bank.
Provision of water and sanitation is key to achieving good development outcomes in Indonesia. Australia has helped set the agenda for this sector by leveraging the involvement of other donors and has played an important role in donor harmonisation and effective implementation. Australian assistance also focuses on the acute need to increase agricultural productivity, the most serious challenge for eastern Indonesia, and critical to reducing poverty and inequality.
Key achievements in 2006-07 included:
Improved governance facilitates increased foreign investment and more effective delivery of government services. Australia has positioned itself to support reform by identifying and supporting key figures and areas of government, and establishing strong government-to-government links. Support for the Indonesian governments efforts to strengthen economic and financial management, further develop robust democratic, legal and judicial institutions and increase participation and demand for good governance at the local level continues to be the focus of Australia's governance engagement.
Key achievements in 2006-07 included:
Indonesia experienced one major and a string of small to medium scale disasters over 2006-07. Australia responded to seven of these in a timely and effective way, including an ongoing response to the May 2006 Yogyakarta earthquake and emergency response to the Jakarta floods in February 2007. AusAID has begun implementing innovative programs at the community level to build local capacities to address disaster risk and vulnerability, which in the longer-term will provide highly sustainable outcomes. Australia has become a lead donor and a reliable partner in the emergency and humanitarian sector. The size, effectiveness and appropriateness of Australia's support, and our strong collaboration with key Indonesian and international partners, continued to strengthen this role.
Key achievements in 2006-07 included:
Australia's health programs target the poorest performing provinces. AusAID has two major initiatives which focus on strengthening the delivery of health services by district centres, and on increasing demand for quality health care. They work in close collaboration with district governments in provinces with the highest rates of maternal and child mortality, Nusa Tenggara Timur and Papua. Through these initiatives, pilots of innovative designs for strengthening the supply side of maternal and neonatal health care have been undertaken. Most successful has been the pilot of an adolescent reproductive health care service module, which has become the basis for Indonesian national policy in this field. Both activities work closely with key health donors in the target areas.
Australia is also working to address Indonesia's growing HIV epidemic, and to improve the countrys capacity to implement avian influenza surveillance and control programs. The aid program has focused on improving the ability of communities, as well as state and civil institutions, to manage these health issues.
Australia's HIV/AIDS prevention and care initiative is interconnected with the Indonesian governments HIV policies and national strategies. It works at both the strategic and policy level as well as with on-the-ground implementation. The program draws on areas of the Australian Governments comparative advantage, particularly focusing on its work to address injecting drug use and HIV, and to integrate this work into Indonesian systems.
Key achievements in 2006-07 included:
Australia's Prime Minister John Howard committed a $10.5 million memorial package to Bali after the 12 October 2002 bombing, $7 million of which went to construct and equip the Australia-Bali Memorial Eye Centre, train more than 120 personnel and establish two mobile outreach eye clinics.
The centre was opened on 27 July 2007 by Mr Howard and Indonesian President
Susilo Bangbang Yudhoyono. It is a stand-alone facility providing patients
with world-class sight restoration services and instructing staff in its high
quality ophthalmic training facilities. The centre consists of three operating
theatres and
a lens laboratory, and provides pathology, diagnostic and pharmacology services.
The Australia-Bali Memorial Eye Centre will focus on reducing the high rate
of blindness amongst the poor, with around 70 per cent of patients receiving
free treatment. Cataracts are the leading cause of blindness in Bali and the
centre is expected to double the number of cataract surgeries performed from
3000 a year
to over 6000 by 2010.
Prime Minister John Howard at the opening of the Australia-Bali Memorial Eye Centre, July 2007 Photo: Joe Rosarius
Australian assistance has been significantly scaled up within the education sector to establish a program with a strong strategic focus that is closely aligned with AusAID's education policy and the Indonesian governments education goals.
Australia's approach is articulated in the Indonesia Education Program Strategy
2007-2012. Australia has partnered with the Indonesian government to improve
the quality and accessibility of schooling by strengthening education systems
and by building and expanding schools in the poorest parts of the country
to create places for new students. Australian technical assistance helped
the government review and develop strategies for teacher quality assurance
and to progress the development of national education standards. This will
help district governments implement national education standards and assist
schools to improve school planning and management. The program is being delivered
substantially through Indonesian government systems.
During the year, scholarships were provided to more than 600 Indonesians
to study in Australia, a substantial increase over previous years. Targets
for the selection of candidates were largely met and most alumni successfully
completed their courses
and returned to their home organisations. Alumni surveys have regularly indicated
that most returned scholars have had a positive experience studying in Australia,
which meets the initiatives aim of building positive and constructive relationships
between Indonesia and Australia. A successful collaboration with the Australian
Government Department
of Education, Science and Training ensured all Australian scholarships were
managed using a whole-of-government approach.
Key achievements in 2006-07 included:
Indonesia has committed to a universal standard of nine years schooling to be established by 2009. To reach this goal, the government has developed strategic plans that accord top priority to increasing access to basic education, improving quality and standards, and strengthening education governance and accountability mechanisms.
The Australia-Indonesia Basic Education Program, which commenced in 2006, will provide $355 million of Australian loan and grant funds to help Indonesia meet its target of universal basic education. The program will fund the construction of about 2000 new or expanded schools across 20 provinces, and create at least 330 000 new formal junior secondary school places and a significant number of additional non-formal places. Support will focus on the poorest and most under served provinces and districts, and help communities build schools using locally supplied materials. Oversight and safeguard mechanisms will be contracted by AusAID.
The program is also helping Indonesia improve the quality and governance of its education system through enhanced performance management standards and systems, and strengthened financial management and monitoring.
Soon after the community completed building work at Al Fauzan school in East Java (pictured under construction), it hosted an important ceremony to mark the construction of 46 Islamic schools that opened in time for the July start of the Indonesian school year Photo: AusAID
On 7 March 2007, Garuda Flight 200 crashed at Yogyakarta airport killing 21 onboard, including Australians Allison Sudradjat, Morgan Mellish, Liz O'Neill, Mark Scott and Brice Steele. Allison Sudradjat was AusAID's Minister Counsellor in Indonesia and was travelling to Yogyakarta as part of an official Australian Government visit.
Allison was one of AusAID's most capable and dedicated officers. During her 18 years with the agency, her intelligent and practical approach to the challenges of development was truly extraordinary. Allison led Australia's humanitarian response to some of the region's worst disasters in recent years. She was also a bold, passionate advocate for attacking poverty at its roots, working for better schools, better health and better government.
Allison had an extraordinary impact on her colleagues both in Canberra and at the two Australian missions in Indonesia and Papua New Guinea where she had spent 10 years working to improve the lives of people. She was an inspirational leader and regarded with great respect, admiration and fondness. Through her charisma, natural warmth and keen sense of humour she provided great leadership for AusAID in Jakarta through a succession of challenges. She is greatly missed.
AusAID has established a prestigious scholarship program in Allison's memory. Allison Sudradjat Awards will be given annually to four leading scholars from Indonesia and two from Papua New Guinea for post graduate study in Australia.
Allison Sudradjat visiting a school construction site in Manuju, South Sulawesi, Indonesia where part of the AusAID-funded Basic Education Program is being implemented Photo: Adi Rahmatullah
Ten years on from the 1997 financial crisis, East Asia is wealthier, poverty rates are lower and growth is faster than ever before. According to the World Bank, developing economies in East Asia grew by an average of 9.5 per cent in 2006. Although dominated by strong growth in China (at some 10.7 per cent for 2006), low income countries such as Cambodia, Laos, Vietnam and Mongolia also grew at an impressive 8 to 10 per cent. Over the last five years, this growth has been accompanied by significant reductions in poverty. According to World Bank estimates, in 2006 the number of people in East Asia living on less than US$2 a day fell to around 550 million or 29 per cent of the population.
Despite this impressive record, East Asia continues to face a number of challenges. Some parts of the region, including the southern Philippines and eastern Indonesia, lack economic opportunities and suffer continuing high poverty rates. The spread of infectious diseases, including HIV/AIDS, and potential pandemics such as avian influenza, are major threats to the good progress in the region over recent years. Corruption, environmental issues, inequalities caused by poor governance, and peace and security continue to pose significant challenges.
In 2006-07, AusAID continued to work cooperatively with countries in East Asia to address these challenges. Assistance to the region focused on improving government service delivery, supporting peace, justice and security, promoting regional and international economic integration, rural development, clean water and sanitation, and addressing transboundary threats.
In 2006-07, AusAID country and regional program aid to East Asia totalled $608.2 million. Other Australian assistance through AusAID's global programs and through other government departments brought total ODA to an estimated $729.1 million.
FIGURE 11: ESTIMATED TOTAL AUSTRALIAN ODA TO EAST ASIA BY COUNTRY 2006-07
Text description ESTIMATED TOTAL AUSTRALIAN ODA TO EAST ASIA BY COUNTRY 2006-07
In 2006-07, Australia provided $10.5 million in support of Association of South East Asian Nations-Australia cooperation and $4.3 million for a range of Asia-Pacific Cooperation related initiatives.
Support for Association of South East Asian Nations (ASEAN) continued to be a key feature of Australia's aid to the region. As the primary vehicle for advancing ASEAN economic integration, the $45 million six-year ASEAN-Australia Development Cooperation Program is supporting economic policy research, partnerships with ASEAN institutions and specific liberalisation and harmonisation projects. Assistance is also being provided through the ASEAN-Australia Development Cooperation Program (AADCP) to strengthen the capacity of the ASEAN Secretariat to meet its regional integration goals.
Australia participated in the second East Asia Summit in Cebu in January 2007. Implementation of a $10.5 million package of support for summit economic and trade priorities is underway. A $5 million East Asia Summit research initiative will support high-level research on summit priorities, including regional economic and financial integration. A $2.7 million East ASEAN initiative will promote economic growth and security in the sub-region. A series of five pilot activities, developed with regional partners, will focus on private investment, infrastructure and security. Australia is also supporting ASEANs capacity to participate in free trade agreements through a $1.3 million capacity building facility.
During 2006-07, Australia strengthened the Asia-Pacific Economic Cooperation (APEC) Secretariat's program management capacity with the secondment of two program management specialists. Australia contributed $3 million from 2004 to 2007 to the APEC Support Fund and an additional $4 million for pandemic influenza projects. The APEC Support Fund promoted economic growth and built public sector capacity in several key AusAID development partners, including Vietnam, Philippines, Papua New Guinea, Indonesia and China. Areas covered include agricultural productivity and trade, energy security and clean energy solutions, education, environment, anti-corruption, capacity building for small and medium enterprises, and tsunami preparedness.
Australia continued to provide trade-related technical assistance through the Trade Analysis and Reform Project ($5.6 million, 20022008), which helps Cambodia, Laos, Vietnam and Thailand participate in global trade liberalisation and regional economic integration. Through a contribution of $500 000 to the World Trade Organization (WTO) Global Trust Fund, Australia provided trade-related technical assistance to Asia-Pacific developing country members of WTO to participate in the Doha Round of multilateral trade negotiations.
Key achievements in 2006-07 included:
Context and strategy objectives for 2006-07
The aid program is committed to promoting stability and cooperation in East Asia. Transboundary programs aim to improve regional responses to transboundary development challenges in the region. In 2006-07, the aid program provided $52.0 million for regional programs addressing threats to human security in East Asia, including emerging infectious diseases, HIV/AIDS, terrorism, trafficking in people and illicit drugs.
Emerging infectious diseases include new or resurging disease strains, many of which are capable of being transmitted from animals to humans. Accordingly, the aid program aims to strengthen planning, prevention response and underlying systems for animal and human health in the region.
Emerging infectious diseases pose enormous potential threats to the regions stability. For example, from 2003 to mid-July 2007 there had been 318 confirmed human cases of H5NI avian influenza, of whom 192 had died. The majority of victims were infected in Asia, with the most in Indonesia. Neighbouring countries such as Indonesia, East Timor and Papua New Guinea are at significant risk and are considered the highest priority in our strategic approach.
In November 2005, the Prime Minister announced an additional Australian commitment of $100 million over four years from July 2006 to combat the threat of pandemics and emerging infectious diseases in the Asia-Pacific region. This commitment supports the goal of the Australian Governments White Paper on the overseas aid program to minimise the impact of emerging infectious diseases, including possible pandemics, on the human health and economic development of the Asia-Pacific region, in-line with Australia's national interest.
In accordance with this goal, the Pandemics and Emerging Infectious Diseases Strategy 2006-2010 was launched in November 2006 with four key objectives:
Regional achievements against these four key objectives include:
Key achievements in 2006-07 included:
Vietnam
Vietnam is an acknowledged performer with impressive average annual economic growth accompanied by significant rates of poverty reduction. Much of Vietnams growth has been built on job creation by the private sector and through openness to trade. While the nature and structure of Vietnams economy continues to change as the private sector grows, the majority of Vietnams population, and the largest number of poor people, live in rural areas. Australia's aid program in Vietnam supports Vietnams Five Year Socio-Economic Development Plan 2006-2010 through two strategic objectives:
In 2006-07, AusAID country aid program to Vietnam totalled $62 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $81.2 million.
Australian-funded scholarships for Vietnamese to study in Australia are one of the highest profile Australian aid activities in Vietnam. Over 150 scholarships are provided each year at the masters or doctorate level and at any one time over 500 scholars are on award in Australia.
There is an impressive alumni who are rising to positions of influence, including Vietnams Deputy Prime Minister and the Vice Minister for Trade. Australia has targeted a growing number of scholarship holders from key Vietnamese government agencies and other priority institutions so that the scholarships program is more closely aligned with Vietnams development needs, and to ensure that graduates are able to fully apply their new skills on return.
Parliamentary Secretary to the Minister for Foreign Affairs, Greg Hunt meets the 2007 Australian Leadership Awards (ALA) scholars at the inaugural ALA Leadership Conference, August 2007 Photo: Sophie Jin
The government of Vietnam has provided a strong lead on applying the Paris Declaration on Aid Effectiveness and Harmonisation. This has led to a significant change in Australia's approach to aid delivery over the last 12 months. Australia has pursued opportunities to align closely with other donors and work through the governments own national programs in rural water, natural disaster risk management, ethnic minority poverty reduction and governance.
Key achievements in 2006-07 included:
The Vietnam Australia Monitoring and Evaluation Strengthening Project has established a single framework for monitoring and reporting on the impact of official development assistance to improve donor coordination and reduce the administrative burden on the government of Vietnam. This approach has been adopted by five development banks who between them deliver 80 per cent of total official development assistance in Vietnam.
Philippines
Economic growth was 5 per cent in 2006 marking three successive years of growth over this figure, a record in recent Philippines history. At the same time, tax reform introduced in 2005 allowed the government to significantly improve its fiscal position in 2006. This led to a reduction in public debt and the start of a turnaround in the chronic under-funding of public resources. Despite these promising developments, growth remains concentrated in a few sectors and while poverty rates have improved modestly, they remain high.
A new Australia-Philippines Development Assistance Strategy 2007-2011 became operational in April 2007. This document outlines a strategic and selective approach to focusing Australia's aid to maximise impact on delivering the White Paper on the overseas aid program policy of expanded aid to the Philippines in partnership with other donors, particularly the multilateral development banks. The three pillars of the strategy, aligned to Philippine development objectives, are economic growth, education and national stability/human security.
In 2006-07, AusAID country program aid to the Philippines totaled $58.5 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $69.9 million.
Key achievements in 2006-07 included:
China
Recognising China's strategic importance to Australia and its increasing influence on development in East Asia, Australia's aid program in China focuses on core shared priorities in health, environment and governance. HIV/AIDS, emerging infectious diseases, environmental degradation and economic governance challenges threaten to undermine China's balanced development. AusAID is working with Australian whole-of-government partners to address these key mutual priorities in China and, more broadly, with China in the region.
In 2006-07, AusAID country program aid to China totalled $34.2 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $46.1 million.
Key achievements in 2006-07 included:
The Fred Hollows Foundation is one of 40 Australian non-government organisations accredited with AusAID and has received AusAID funding through the AusAID NGO Cooperation Program (ANCP) since 1997. The foundations efforts to reduce the prevalence of avoidable blindness in Jiangxi Province China have been supported with funding from the ANCP.
Under the program, the foundation has established a sound and collaborative working relationship with the Provincial Bureau of Health and county-level hospitals in Jianxi Province. The program has provided training and mentoring and raised the profile of both eye care and health administration at the county level. As a result of the increase in capacity and technical skills of the nurses and surgeons in Jiangxis county hospitals, 865 people in rural areas accessed cost effective sight restoring cataract surgery in 2006-07.
A key outcome from the relationship between the foundation and Jianxi Province was an invitation for the foundation to participate as a member of the Jiangxi Prevention of Blindness Committee. Its involvement has assisted with the development of a Vision 2020 plan for the province, one of the poorest in China. It is now one of the few provinces which have put such a plan in place.
Through the opportunities provided by ANCP, the foundation is now working closely with the Jiangxi Provincial Bureau of Health and Jiangxi provincial authorities on a project to develop an eye care centre in the province. This would provide avoidable blindness prevention and treatment to the economically disadvantaged who have limited access to eye health care services.
Joanne Margaret Thomson, AusAID engaged evaluator, and Dr Xiao Boxiang, Fred Hollows Foundation China Office, speaking with a beneficiary of the work of the Fred Hollows Foundation in Gaoan County, Jiangxi Province, P.R. China, May 2007 Photo: Wang Jun
East Timor
As a close neighbour, Australia is strongly committed to East Timors development and continues to support East Timors transition to a stable and democratic nation. Establishing its own democracy, public sector and security has been a major challenge for a country that had most of its infrastructure destroyed by the events of 1999. Since independence, Australia has helped East Timor achieve important gains in areas such as economic and public sector management, law and justice, and delivery of basic services in health, water supply and sanitation. East Timor is now receiving substantial revenues into its internationally acclaimed petroleum fund. Australian aid focuses on building the governments own systems and processes to help East Timor spend these revenues effectively and deliver steady improvements in governance and service delivery.
The tensions in East Timor from April 2006 have highlighted how deep poverty and lack of political stability and basic security can constitute major threats to development. AusAID moved quickly to provide over $14 million in humanitarian assistance after the outbreak of unrest, including shelter, food, water and medical supplies. Support was also provided through non-government organisations and United Nations agencies to assist the 150 000 people displaced from their homes. This support will continue under the leadership of the government of East Timor and the United Nations until the situation is conducive to people returning to their homes.
In 2006-07, AusAID country program aid to East Timor totalled $40.6 million. Other Australian assistance through AusAID's regional and global programs and through other government departments (most notably the Australian Federal Police) brought total ODA to an estimated $74.8 million.
Key achievements in 2006-07 included:
Cambodia
Over the last decade, Cambodia has achieved high rates of economic growth, which has led to good rates of poverty reduction. However, poverty remains high in rural areas, particularly among households where agriculture is the primary source of income. For this reason, under the Australia-Cambodia Development Cooperation Strategy 2003-2007, Australia worked with Cambodian authorities and development partners to increase the productivity and incomes of the rural poor, strengthen the rule of law and reduce the vulnerability of the poor to natural disasters, contributing to poverty reduction and sustainable economic growth.
In 2006-07, AusAID country program aid to Cambodia totalled $25.6 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $44.8 million.
An independent review of the Cambodia-Australia country strategy for the period 2003-2007 was undertaken during May to assess strategy performance and identify any lessons that could be applied to the development of the new country strategy for the next five years. The review found that Australia had made strong contributions in agriculture and mine action.
Key achievements in 2006-07 included:
Laos
While Laos faces many development challenges, slow but steady progress in economic reform and poverty reduction is being made and the overall outlook is positive.
In 2006-07, AusAID country program aid to Laos totalled $12.6 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $23.9 million.
Australia's development objectives in Laos for 2006-07 were:
Key achievements in 2006-07 included:
Greater Mekong sub-region
The Australian Governments White Paper on the overseas aid program emphasises the importance of promoting regional integration and cooperation and identifies the greater Mekong sub-region countries of Vietnam, Cambodia and Laos as a priority area.
All countries in the Mekong sub-region have made inroads into the incidence of poverty as a result of sustained strong economic growth. This has been facilitated by increases in investment and export growth achieved through openness to trade, integration and reform. However, there are many development challenges facing the region. Continued growth could be limited unless sustainable sources of energy and power generation are identified. Future trade and investment will be reliant on public administration and financial sector reform, and overcoming physical infrastructure deficiencies.
A new Australian development assistance strategy has been prepared to support sustainable economic growth in the greater Mekong sub-region. The strategy aims to:
The strategy targets priorities that greater Mekong sub-region countries have agreed to pursue through established sub-regional mechanisms.
In 2006-07, AusAID assisted the Mekong River Commission to develop a new strategic plan that provides a clear role for it in serving the joint interests of its member governments to promote sustainable development in the Mekong River Basin.
AusAID is also working with the Asian Development Bank to develop a pilot program to implement the Mekong Cross Border Transport Agreement. The agreement aims to reduce the non-physical barriers to cross border movement of goods, people and transport and to improve the management of customs, immigration and quarantine inspection at key border crossings. Planning work also commenced on HIV/AIDS awareness and prevention to focus on border crossings and proposed infrastructure development projects.
Burma
Burma is the one of the poorest countries in the Asia-Pacific with one of the worlds lowest levels of public sector expenditure. Ongoing internal conflict, forced confiscation of land, violence and discrimination have resulted in up to one million people being internally displaced and has produced large refugee populations in neighbouring countries. The political outlook remains poor, with key leaders such as Aung San Suu Kyi still being held in detention.
Australia's assistance to Burma is primarily humanitarian. Guided by a new Framework for Humanitarian Assistance to Burma 20072010, continued support through United Nations agencies and international non-government organisations will focus on meeting the basic health, livelihood and protection needs of vulnerable populations inside Burma and on the Thai-Burma border.
Assistance is also provided to address significant transboundary development issues such as HIV/AIDS, avian influenza, people and drug trafficking.
In 2006-07, AusAID country program aid to Burma totalled $2.6 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $11.3 million.
Key achievements in 2006-07 included:
Mongolia
In 2006-07, AusAID country program aid to Mongolia totalled $2.4 million. Other Australian assistance through AusAID's regional and global program and through other government departments brought total ODA to an estimated $3.4 million.
The centre-piece of the AusAID country program is the Mongolia-Australia Targeted Capacity Building and Small Activity Facility, which began in 2003 and finishes in 2008. This includes Australian Development Scholarships, capacity building activities for government agencies and the Small Activity Scheme for non-government organisations.
Key achievements in 2006-07 included:
Thailand
Australian bilateral assistance to Thailand is being phased out in accordance with Thailands economic development and in response to the Thai governments desire to move from being an aid recipient to aid donor. In 2006-07, AusAID country program aid to Thailand totaled $1.6 million. This assistance focused on strengthening linkages between Australian and Thai public sector organisations. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $6.3 million.
The South Asian region has been characterised by strong economic growth in recent years. For most South Asian countries, growth has exceeded 5 per cent over nearly a decade, with India and Pakistan growing at 7 per cent in the last two years. Nepals growth has lagged behind the rest of the region but is projected to reach 3 per cent in 2007 and improve further in 2008. Rapid economic growth provides the region with an opportunity to end mass poverty within one generation and to attain the Millennium Development Goals in health and education. It has created the political and fiscal space for much-needed policy and institutional reforms to accelerate and sustain growth, and to tackle South Asias problems of social and economic exclusion, illiteracy, ill-health, conflict and corruption. If the region fails to seize this opportunity, some 400 million people will continue to live in abject poverty in South Asia in 2020.
Villagers near Bogra, North-West Bangladesh. With AusAID support, the Bangladesh Rural Advancement Committee, a local non-government organisation, has developed innovative micro-finance approaches to reduce extreme poverty Photo: Peter Duncan-Jones
To end poverty, economic growth needs to be accelerated, sustained and broad-based. This will require significant upgrades to the region's inadequate infrastructure, helping to create much-needed employment opportunities. The rise in inequality, which has accompanied recent economic growth, will need to be stemmed. Unless growth is broad-based, large pockets of poverty will persist, exacerbating instability and conflict. Much higher investment in human development is needed to reduce very high child mortality, malnutrition and illiteracy. Measures to strengthen institutions, tackle corruption and promote peace and security will be particularly important.
FIGURE 12: ESTIMATED TOTAL AUSTRALIAN ODA TO SOUTH ASIA BY COUNTRY 2006-07
Text description ESTIMATED TOTAL AUSTRALIAN ODA TO SOUTH ASIA BY COUNTRY 2006-07
In 2006-07, AusAID's country and regional program aid to South Asia totalled $65.6 million. Other Australian assistance through AusAID's global programs and through other government departments brought total ODA to an estimated $114.9 million.
Bangladesh
Over the past decade, Bangladesh has made significant progress across a range of social indicators. Rising primary school enrolment and improving food security have led to a sharp decline in both infant and child mortality. However, development continues to be constrained by poor governance, political fragility and natural disasters. Almost a third of Bangladeshs 145 million people still live in absolute poverty. Australia's aid program supports basic education and human resource capacity development, as well as programs to eradicate poverty and improve food security.
In 2006-07, AusAID country program aid to Bangladesh totalled $21.3 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $33.9 million.
Key achievements in 2006-07 included:
Students with Ross Muir, Director of AusAID's North and South Asia Section, at a government primary school in Rangpur, North-West Bangladesh. With AusAID support, the United Nations Childrens Fund has improved the number of girls accessing education to achieve gender parity Photo: Eugene Rodrigues
Pakistan
While there has been some slowing in Pakistans economy, real gross domestic product growth in 2006 exceeded 6 per cent for the third consecutive year. However, social indicators and living standards in Pakistan remain well below those of countries with similar incomes and growth rates. Health and education outcomes lag behind other South Asian countries. Significant gender disparities remain and are linked to high illiteracy and maternal mortality rates. With one third of Pakistans population of 156 million people living below the poverty line, most in rural areas, the provision of basic services remains a fundamental challenge. Australia's aid program seeks to build Pakistans human capital by improving health and education outcomes and providing scholarships, and to promote agricultural linkages between Pakistan and Australia. Continued Australian assistance for reconstruction and rehabilitation in northern Pakistan after the October 2005 earthquake remains a key priority.
In 2006-07, AusAID country program aid to Pakistan totalled $14.8 million. This included $10 million for ongoing post-earthquake reconstruction activities in Azad Jammu and Kashmir. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $20.8 million.
Key achievements in 2006-07 included:
Sri Lanka
In 2006-07, Sri Lanka witnessed an escalation in the conflict in the north and eastern regions. According to United Nations reports, heavy fighting between the Sri Lankan armed forces and the Liberation Tigers of Tamil Eelam brought the death toll to over 4000 since the renewal of open conflict in August 2006. Civilians continue to suffer from the violent actions on both sides with over 234 000 people displaced as a result. Added to those previously displaced due to conflict and natural disasters, the total number of internally displaced people in Sri Lanka stands at 484 000, or 2.5 per cent of the population.
Australia's assistance focuses on meeting essential humanitarian needs of those affected by the conflict, supporting peace-building initiatives and strengthening natural resource management.
In 2006-07, AusAID country program aid to Sri Lanka totalled $9 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $28.8 million.
Key achievements in 2006-07 included:
Nepal
Nepal remains one of the poorest and least developed countries in the world, with over 30 per cent of its 28 million people living below the national poverty line. After a decade of internal conflict, political developments give hope that the country is moving towards a lasting peace. Key development challenges include addressing issues of governance, social exclusion and environmental sustainability. Australia's assistance focuses on improving access to safe water resources and sanitation, promoting better governance, strengthening community forestry management and supporting child health.
In 2006-07, AusAID country program aid to Nepal totalled $3.4 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $6.6 million.
Key achievements in 2006-07 included:
The longest project in the history of Australian overseas development aid wound up in late 2006: the Nepal-Australia Community Forestry Partnership. When Australian forestry assistance to Nepal commenced in 1966, the hill country of Nepal was in crisis, with rapidly growing populations leading to degradation and loss of the ancient forests.
Four decades of cooperation between Australia and Nepal in community forestry has yielded an astonishing harvest. A vast sweep of degraded mountain country has been re-planted with native chir pines and sal trees and the forested area continues to expand and flourish. Over a million hectares of forest are being managed by 14 000 community user groups representing eight million people. The high grazing land is improving. New sawmills are buzzing. The livelihoods and economic fortunes of villagers in one of the worlds poorest countries are growing as a result of effective, sustainable management of this important renewable resource.
For the first time a generation of hill girls is in school. Nepali people have become skilful forest managers, guardians of their natural resources, and internationally eminent scientists and development leaders. And a pattern for successful aid delivery has been established worldwide thanks to a remarkable partnership between Australia and Nepal. All this has been achieved with a relatively modest investment of $40 million over 40 years.
A community forest established with project support Photo: James Giambrone
Other South Asian nations
Australia provided support to other South Asian nations in 2006-07. Country program aid to these nations, including Bhutan, India and the Maldives, totalled $5.6 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $14.7 million.
Assistance targeted human resource capacity development, basic education, and HIV/AIDS prevention and care.
Key achievements in 2006-07 included:
In 2006-07, AusAID provided $34 million in program aid primarily to southern and eastern Africa. Other Australian assistance through AusAID's global programs and other government departments brought total ODA to Africa to an estimated $84.9 million. Australia's contributions to multilateral debt relief and to the development programs of the United Nations and the World Bank also significantly contributed to development in Africa.
Australia provided more than $30 million in humanitarian relief during the year to help address food shortages in southern Africa and to alleviate suffering from crises in the Democratic Republic of Congo, Somalia, Sudan, Uganda and Zimbabwe. In Zimbabwe, the government established the Australian Fund for Zimbabwe, providing a total of $6 million in humanitarian aid and assistance to civil society groups promoting democracy and human rights.
In 2006-07, the African Governance Facility continued to support democratic systems, trade liberalisation and other issues of mutual concern to Australian and African governments. The aid program supported six Australian non-government organisations to provide improved basic services in health, particularly HIV/AIDS, water and sanitation, and food security across seven countries in east and southern Africa. Key partnerships were also continued with the United Nations Childrens Fund to provide better health and education for AIDS orphans and with the United Kingdoms Department for International Development to enhance food security in southern Africa. Australia contributed to the Water and Sanitation Program of the World Bank to help improve access to clean water.
Australia responded to the continuing crises in Sudan with humanitarian assistance of more than $15 million in 2006-07, including nearly $5 million to address the spill-over effects in neighbouring Chad, the Central African Republic and Kenya. This brought Australia's total humanitarian aid for the Sudan region to $62 million since May 2004.
Key achievements in 2006-07 included:
Promoting effective governance by:
Improving health and basic services by:
Responding to humanitarian needs by:
In Iraq, Australian reconstruction activities continued to support international efforts to establish stability. Australia's approach reflects the four priorities of the Iraq National Development strategy:
Australia's activities have strengthened governance and built the capacity of national authorities. Activities have also helped train civil servants and police, supported key economic reforms and continued support through multilateral agencies. Since 2003, Australia has provided over $173 million in humanitarian and reconstruction assistance to Iraq.
A particular effort was made this year to assist with the humanitarian needs of displaced Iraqis with assistance provided to the Office of the United Nations High Commissioner for Refugees ($3 million), the International Organization for Migration ($3 million) and the International Federation of the Red Cross ($2 million).
The agriculture sector is a strong focus for Australia's assistance. Since 2004, in-Australia training has been provided for over 180 senior Iraqi officials in modern agricultural practices.
Key achievements in 2006-07 included:
To assist Afghanistan meet its significant development challenges, Australia has provided $245 million in official development assistance since 2001. Australia's assistance is directed toward the progression to a secure, stable and self sustaining Afghan state and is aligned with the targets of the Compact, Afghanistans development blueprint for 2006-2010.
In 2006-07, AusAID humanitarian aid expenditure totaled $20.3 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $127.4 million.
The focus of Australia's program to Afghanistan in 2006-07 was to continue
building the Afghanistan governments ability to better provide security and
deliver essential services, including health and education. Australia also
assisted victims of mines and improved human rights conditions through support
to the Afghanistan Independent Human Rights Commission. Humanitarian assistance
was provided in response to a drought across southern Afghanistan and for
the continuing reintegration of refugees from Pakistan
and Iran.
Key achievements in 2006-07 included:
Australia provided support to the Palestinian territories and Palestinian refugees in the surrounding region in 2006-07. Assistance was delivered primarily through multilateral agencies and non-government organisations to provide humanitarian relief and help reduce the vulnerability of Palestinians to poverty and conflict.
In 2006-07, AusAID country program aid totalled $15.2 million. Other Australian assistance through AusAID's regional and global programs and through other government departments brought total ODA to an estimated $15.4 million.
Key achievements in 2006-07 included: