South Asia

Estimated ODA 2009-10: $149.9 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 per 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 2009-2013 will be published in 2009.

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

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

Basic education: activities include basic education programs in Pakistan, Bangladesh, Nepal and Sri Lanka
Health and nutrition: activities include Maternal and Child Health in Bangladesh, Pakistan and Nepal, food security and livelihoods for the ultra poor in Bangladesh, Vitamin A in Nepal, and HIV/AIDS and health research in South Asia.
Natural resource management: forestry and livelihood activities in Nepal and Sri Lanka
Human resource development: Australian Scholarships are provided in all South Asian countries. The Australian Development Scholarships (ADS) scheme constitutes virtually the entire bilateral program to the Maldives and Bhutan.

The program has strong humanitarian focus, particularly in Sri Lanka where the aid program is helping meet the basic humanitarian needs of people displaced by civil conflict, including health, nutrition and children’s education needs. In Sri Lanka the program also has a focus on peace building. In Bangladesh we have assisted victims of Cyclone Sidr, in India and Nepal we have assisted communities affected by the Bihar/Koshi floods, and in Bangladesh and Nepal the program has assisted refugee communities.

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. Australia engages in joint programs with UNAIDS on HIV/AIDS, with UNICEF and BRAC on children’s education, and with the World Bank on water and sanitation. It also supports 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

June 2009