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Overseas Aid

Strategic Framework for Australia's Aid Program

The strategic framework for Australia's aid program consists of an overarching objective, four program themes around which the government organises its aid implementation and four strategies to ensure greater effectiveness of Australian aid.

Objective

The objective of Australia's aid program is to assist developing countries reduce poverty and achieve sustainable development, in line with Australia's national interest.

Aid themes

The Australian aid program is organised around four interlinked themes:

  • accelerating economic growth
  • fostering functioning and effective states
  • investing in people
  • promoting regional stability and cooperation.

Generating shared and sustainable economic growth is the single most important objective for the Asia-Pacific region over the next ten years. The Australian aid program encourages economic growth by:

  • Improving the policy environment for growth
  • Promoting trade
  • Infrastructure development, rural development and building skilled workforces
  • Addressing the environmental challenges to growth including management of fresh water resources.

Fostering functioning states is essential because appropriate and effective machinery of government is the basis for prosperity. Sound policies and institutions are essential for growth and development.

Investing in people (health and education) provides the opportunity for all citizens, especially the poor, to participate in the economy. Health and education enable the poor to participate in growth, make the workforce more productive, and lead to a better informed citizenry able to demand better government performance.

Regional stability and cooperation is becoming increasingly important in a world in which cooperation between nation states is needed to address trans-boundary threats such as pandemics, disasters and transnational crime. Stability is also needed for countries to benefit from the opportunities offered by economic integration.

Australia's aid program remains selective in order to maximise its impact. It cannot be all things to all countries, or even to one country. The development of whole-of-government country strategies, coordinated by AusAID, will be the critical means for determining the focus of Australia's support to particular countries under the four themes, taking into account individual country circumstances, priorities and other donor programs.

Strengthening the aid program

Four strategies will further strengthen the aid program's accountability, performance and evaluation. These are:

  • strengthening the performance orientation of the aid program
  • combating corruption in partner countries
  • increasing Australia's engagement with the Asia-Pacific region
  • working in partnership with regional governments and other donors.

This strategic framework is based on Australia's development experience and analysis, and represents a distinctly Australian approach to aid policy and implementation.

Australia believes that this approach will maximise our aid contribution and accelerate the progress of partner countries towards achieving the Millennium Development Goals.

Working with developing country partners

Australian assistance is jointly agreed to and implemented with Australia's developing country partners.

Australian and international experience demonstrates that aid programs are more likely to be sustainable and effective when they are aligned with partner government priorities, supported by local people, involve beneficiaries in design and implementation, and are aligned with partner government budgets and systems.

This requires more inclusive ways of working and different implementation arrangements, both of which the aid program has adopted over recent years.

Gender equality

Gender equality is integral to growth, governance and stability. While gains have been made, gender inequalities in health and education are still striking. Two-thirds of the 800 million people in the world who lack basic literacy skills are female. Girls are twice as likely as boys to die from malnutrition and preventable diseases, and half a million women die each year from complications during pregnancy - 99 per cent of them in developing countries.

Investments in women's and girls' education and health yield some of the highest returns of all development investments, including reduced rates of maternal mortality, better educated and healthier children, and increased household incomes.

Gender equality extends beyond improving female health and education. It includes access to economic resources, participation and leadership in decision making, the human rights of women and efforts to eliminate discrimination against women. Achieving gender equality requires a focus on both men's and women's roles.

Gender equality is a consideration that will apply across all aspects of the strategic framework.

Untied aid

Removing restrictions on countries to allow organisations based there to bid for contracts to supply goods and services to the aid program, is widely accepted as a way of improving aid effectiveness and efficiency.

It increases partnerships between donor and partner governments, strengthens partner country ownership and achieves greater value for money through better competition. Untying Australia's aid is consistent with the Australian Government's emphasis on improved effectiveness, efficiency, accountability and value for money. It will expand the pool of expertise that Australia can access in delivering the aid program.

Untying Australian aid is also consistent with the Government's longstanding commitment to openness in trade and competition.

It also removes the current inconsistency between aid program procurement and the Commonwealth Procurement Guidelines.

Untying Australia's aid program will give Australian firms and individuals access to the massive European Union aid procurement market of about A$12.7 billion per year. Many Australian companies that focus on development assistance activities have already benefited from international untying.

Further information

For further information on the strategic framework for Australia's aid program see on this website:

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