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New Approaches to Aid DeliveryAustralia's aid program has changed significantly in the way it supports the delivery of basic services in Papua New Guinea. Australian experience has found that stand-alone projects often bypassed government systems and did not address the larger institutional constraints that prevent effective service delivery, such as setting budget priorities and allocating resources. Australia now works more closely within PNG government systems through sector-wide approaches and other initiatives such as co-locating officers in PNG National and Provincial Government. This enables Australia to better support PNG's own development objectives and strengthen PNG's capacity to plan, implement and monitor affordable services. HealthAustralia is placing greater emphasis on using a sector-wide approach to improve health services in PNG. The Health Sector Improvement Program brings together the PNG Government and major donors who have agreed to monitor collectively a single set of priorities. The program works through PNG service delivery mechanisms and government systems and uses these, where they are suitably accountable, to manage donor funds. In addition, this approach integrates technical advisers into the PNG health system rather than have them outside government. It is also considering ways to introduce incentives to encourage provincial and national governments to improve the delivery of health services. Law and JusticeThe Law and Justice Sector Program supports PNG's National Law and Justice Policy and Plan of Action, the Sector Strategic Framework and its Medium Term Development Strategy 2005-2010. The program adopts a sector-wide approach to law and justice in PNG, recognising that a weakness in one agency will impact on others. Agencies such as police, courts and jails must coordinate with each other to deliver effective results. The program provides a flexible mechanism to support PNG law and justice priorities at the national and provincial levels of government and through civil society. The approach builds on successful interventions from recent projects and focuses on building agency and individual capacity in planning, management and operations. The sector-wide approach includes:
EducationIn 2004 Australia mobilised a major new program of support for the PNG national education system. The Education Capacity Building Program (ECBP) is a long-term partnership of over 10 years between the Governments of PNG and Australia. The ECBP adopts a program-based approach that supports agreed education priorities consistent with the PNG Public Expenditure Review and Rationalization objectives, PNG's National Education Plan 2005-2014 and the 2006 Australian White Paper and Development Cooperation strategy. In 2007 major steps forward were made in identifying priorities for joint funding, such as the Millennium Goal of universal primary education. Australia will increase funding for education in PNG over the next four years. The program works within existing PNG systems wherever possible and is improving the capacity of national education systems such as teacher training, the inspectorate system and school materials distribution. The program has provided a framework for improved policy discussions with the PNG government on education policy issues such as workforce planning, budget coordination, spending priorities and accountability. PNG's National Department of Education, in partnership with AusAID, leads and implements the program, now in Phase 2. The program engages with donors like UNICEF, the European Union, NZAid and various PNG education providers and stakeholders such as Provincial governments, Churches and civil society organisations. The Sub-National StrategyThe serious decline of service delivery in PNG is one of the country's most significant challenges. Responsibility for the delivery of many services rests with provincial and local administrations, but public administration and service delivery at these levels needs strengthening. Australia has developed a Sub-National Strategy (SNS) which provides a framework for improved engagement at the sub-national level. It provides coordinated support to Provincial, District and Local Level Governments to help them fulfil their service delivery roles. The overall objective of the Sub-National Strategy is to strengthen service delivery by supporting improved public administration and governance at the sub-national level in PNG. Recognising the link between different levels of the PNG Government, Australia's assistance through the Sub-National Strategy also supports National level initiatives aimed at improving intergovernmental financing systems. As well the strategy aims to improve legal structures addressing the roles and responsibilities of the different levels of government, and co-ordination and monitoring systems related to Provincial performance. The Sub-National Strategy includes three major components:
To enable effective engagement with National and sub-National Government, AusAID co-located officers with their PNG counterparts in the PNG Department of Provincial and Local Government Affairs. AusAID has also co-located officers with three Provincial Administrations (Central Province, East New Britain and Eastern Highlands Province) and in the Autonomous Bougainville Government. Expansion of support into more provinces, with a roll-out of the Provincial Performance Improvement Initiative will continue during 2007-2008. Incentive FundThe Incentive Fund began in August 2000 as a mechanism to increase aid program contestability by directly funding PNG private and public sector organisations. The fund operates as a competitive funding facility that directs aid to PNG development-oriented organisations with a record of excellence. The Incentive Fund has two components:
The Policy Stream aims to encourage and reward the effective implementation of PNG Government development policy in both the public and private sectors. The policies selected for reward reflect the longer-term development goals of PNG and the priorities of the Australian aid program. The Program Stream promotes contestability among service providers by funding those that make program proposals in priority development areas and have a record of good program management. Phase 1 of the program was originally to end in July 2005 but was extended to July 2007. Some projects with a lifespan beyond July 2007 will continue. In April 2006 PNG and Australia agreed to a review of the program. Australia will base new funding on the outcomes of the review. July 2007
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