South Asia

Estimated ODA 2008-2009: $113.5 million

South Asia is in transition as it strives to set up effective economic, political, social, and legal structures to support sustained growth.

Despite rapid growth in recent years, it is still one of the world's most disadvantaged regions. Nations in the region have among the lowest per capita incomes in the world. Around 40 per cent of the region's 1.4 billion people live on less than US$1 a day.

Promoting good governance is an important strategy for poverty alleviation in the region. Better governance is fundamental to sustainable economic growth and a more equitable distribution of the benefits of development. There is a strong correlation between per capita incomes and the quality of governance across countries in the region.

Conflict and political instability in the region continue to affect populations in South Asia who are displaced, disadvantaged and harmed. People smuggling and HIV/AIDS are increasing problems within and beyond South Asia. The impact of HIV/AIDS has the potential to reverse decades of economic progress, posing a major threat to human and national security.

Australian aid to South Asia

The South Asia Framework for 2003-2007 provides the basis for Australia's development cooperation program in the region. The framework dedicates aid assistance to promoting good governance, contributing to improved basic service delivery, and responding to humanitarian needs and emerging issues of concern to the Governments of South Asia and Australia. A new Framework for 2008-2013 will be published in 2008.

In addition, new budget measures give greater attention to South Asia, including in the education and health sectors.

Governance is a cross-cutting issue within key sectors. The program has the capacity, through the South Asia Governance Fund and the Public Sector Linkage Program, to respond to emerging issues of concern to the governments of Australia and South Asia.

The program's focus on improving basic service delivery covers the following sectors:

Basic education: activities include basic education programs in Pakistan, Bangladesh and India
Health and nutrition: activities include food aid to Bangladesh Vitamin A in Nepal, HIV/AIDS in South Asia, and Maternal and Child Health in South Asia.
Natural resource management: forestry and livelihood activities in Nepal and Sri Lanka
Human resource development: The Australian Development Scholarships (ADS) scheme operates in all South Asian countries with the exception of India and Nepal. ADS constitutes virtually the entire bilateral program to the Maldives and Bhutan. In addition, some small-scale capacity building activities have been undertaken. These have been funded largely through the South Asia Governance Fund.

Humanitarian activities are a feature of the program, particularly in Sri Lanka where humanitarian funding is used to complement bilateral programming. Activities range from mine clearance and child soldier rehabilitation to sustainable livelihood development and disaster preparation, and increasingly focus on peace building. Following the December 2004 Indian Ocean disaster, Australia committed $25 million to help countries in South Asia including Sri Lanka, the Maldives and India. Australia's prompt and targeted assistance helped meet the unprecedented post-disaster needs.

A Regional Approach

Australia, a relatively modest donor in South Asia with limited resources, focuses on the delivery of programs through regional mechanisms and working with major multilateral partners, other donors and NGOs.

In June 2005, Australia and UNAIDS signed a sub-regional framework agreement on thematic support to priority areas in South Asia. The agreement will facilitate joint programming of regionally-based or country-specific HIV/AIDS programs and activities in South Asia, using the comparative advantages of the UNAIDS co-sponsors under the general coordination of UNAIDS.

Australia also engages in joint programs with the Asian Development Bank, the World Bank and the International Monetary Fund to increase sustainable economic growth and promote improved service delivery in South Asia.

See Australia's Development Cooperation with South Asia: Framework for 2003-2007

May 2008