Focus on Australian Foreign Aid - Case Study Example

Introduction Ever since the end of the Second World War and indeed even before that, Australia has played a very important role in the development ofthe Asia pacific region. Being a well developed continent with a bounty of natural resources in the midst of numerous under performing nations, it is almost inevitable that Australia would be endowed with a leading role in the development of the region. Australia’s aid donation to the international community is all set to double by the year 2010 (AusAid, 2006). In this context, it is prudent to question as to where the aid program must be focused so that the resources and time that is being invested is used to yield the maximum benefits and so that the interests of the Australian Nation is best served. This can only begin by a perfunctory analysis of the nature and scope of the diplomatic and humanitarian missions so far which shall reveal to us the natural predisposition of the aid flow to this nation. This should consider not only the geographical distribution of Australian Aid but also the areas in which it was focused. Australia played the major role in the reconstruction of Indonesia and many other Micronesian states after the devastating Indian Ocean Tsunami in 2004. They committed over a billion dollars to Indonesia alone through the Australia Indonesia Partnership for Reconstruction and Development (AIPRD). The Regional Assistance Mission to the Solomon Islands (RAMSI) and the Enhanced Co-operation Program in Papua New Guinea (PNG), though controversial (Bureau of Democracy, Human Rights, and Labor, 2008), have been of enormous benefits to these nations. Australia together with other nations have helped in the establishment of peace, conflict resolution and post-conflict reconstruction in several nations including East Timor and Iraq, helping to build health and education facilities and in training local citizens to undertake leadership positions in the building of their respective nations. The future Aid programs of the Australian Nations must continue to focus on her immediate neighbors particularly the island conglomerates of Indonesia, Micronesia and the Island nations of Papua New Guinea, Solomon Islands, Fiji, East Timor, Vanuatu and other pacific nations. They form the periphery of the Australian Continent and their development or even more significantly, their under-development can have serious consequences for Australia. Conflict ridden nations combined with their high rates of poverty and unemployment can quickly become the breeding ground of transnational terror or the birthplace of the next transboundary pandemic to scourge the globe. In this era of globalization, countries have become so interconnected that mere competitive individual development has to be replaced by cooperative regional development. More important than the amount of aid in real terms is that the aid given must be put to maximum utilization. The requirements of each nation in Asia-Pacific are different and the sectors in which the Australian aid should be focused thus vary from nation to nation. Despite this, a broad policy framework of aid allocation can still be formed. Most of these nations require not only financial aid for their infrastructural and intellectual capital development – in the areas of health, education, transportation etc – but also in the domain of policy development for better functioning non corrupt governments and governance practices. In the succeeding sections of our discussion, we undertake an evaluation of the factors that merit these countries to be the recipient of Australian aid and their optimal sectoral allocation. Where Australian Foreign Aid should be focused? In the course of this argument, we hope to convince ourselves that the Asia-Pacific is indeed the region that most deserves Australian aid. Before we undertake a comprehensive analysis of our position, we find the need to define the exact coverage of the term “Asia-pacific” as well as to understand why any nation needs to contribute to the wellbeing of its neighbors. ‘Asia- Pacific’ in the context of this discussion refers to the region highlighted in the following map: The entire region is not clearly visible nor is completely covered but that is only due to the impossibility of capturing the vastness of the area in a map of sufficient clarity. Richard Casey, the Australian Foreign Minister during the 1950s, noted that "our own special role lies in South East Asia and consequently our foreign policy is largely but not exclusively concerned with that region" (Commonwealth of Australia, 2007). Australia as a nation is committed to the prosperity, safety and well being of her neighbors particularly as we move towards an age where the economic prosperity and safety of one nation is directly dependent on one another. The humanitarian and diplomatic missions of Australia in the past have earned her massive goodwill from her neighboring states and that has undoubtedly contributed to a greater understanding and stronger relationship between them. The region which includes the countries Indonesia, Philippines, Papua New Guinea, East Timor, Solomon Islands, Nauru, Vanuatu, Kiribati and Micronesia among others is also the one which has been deeply afflicted by poverty, low growth rates, unemployment, ill health and regional instability which periodically derails any previous development achieved. Over the past 20 years, more than 500 million people in the Asia–Pacific region have been lifted out of poverty, but another 700 million live on less than $1 a day and 1.9 billion live on less than $2 a day, including over half the population of Indonesia. The populations of all except the small island nations are huge and if we consider the rest of the east pacific, huge numbers of people fall under the purview of poor social indicators (Kilby, 2007). To site a few representative statistics; In East Timor, almost half of all children under the age of five are so malnourished that their growth is permanently stunted; in PNG, life expectancy is only 56 years. Despite this, more than 50% of Australian exports are to these nations and most of the other exports pass through these nations on their way to other nations (AusAid, 2006). What more correlation can we find between the economic prosperity of the Asia-Pacific and the economic well being of Australia? Regional growth benefits Australia economically, through greater security and by providing a larger regional marketplace for Australia to trade and invest in. The region is also becoming vastly interconnected resulting in mass movements of people, environmental degradation and growing crime. However the government institutions in much of the region are weak and nations such as PNG, Fiji, East Timor and Solomon Islands are particularly prone to insecurity. Intra state tensions exist in both Philippines as well as Indonesia. Complementing the absence of a strong and responsible central authority is the presence of a defunct physical infrastructure to tackle social misdemeanor. In such a situation, the illegal migration of people and even the spread of contagious diseases cannot be contained. Urban joblessness is also on the rise in all of these nations causing many of the youth to turn to crime. It is in Australia’s best interests to initiate processes that can lead to the strengthening of the regional governance of the region as much of this crime wave and anarchism will have a direct bearing on Australian society, economy and security. The rapidly growing population of this region is very dense and interconnected so that any new disease is easily propagated. Zoonotic diseases are on the rise and higher environmental degradation is only complicating the situation. HIV Aids is highly prevalent in the region and the Asia- Pacific is expected to account for 40% of the world’s known cases of infections by the year 2010. The impact of such pandemics is clearly illustrated by the economic impact of the SARS outbreak in 2003 (WHO, 2007). It is expected to have caused around $13 billion to $40 billion. Poor health degrades the population which stalls economic growth and eventually leads to rise in crime. Compounding this is the regions’ propensity towards natural disasters. The pacific islands are particularly prone to cyclones and underwater earthquakes (Hamnett, 1995). In the event of a natural disaster, Australian Aid is an absolute requirement. As has been stated before, none of these nations can respond to a disaster management of such a scale on their own and definitely does not have the economic backup to recover from it. Australia, being the nearest, largest and richest neighbor has a definite duty to help. The success of any aid program depends on the efficiency with which the aid is distributed and utilized. For example, it has been generally observed that investing in women and children yields the highest returns in terms of social development. The development effort in the Asia- Pacific must be priority based for the program to be effective but however, the fields of Education, Health and Governance stands out as requiring immediate assistance in all the nations. Papua New Guinea is facing a major AIDS epidemic and all efforts at the strengthening of the country’s politics is marred by its humongous cultural diversity (National AIDS Council (PNG), 2007). Indonesia is a very large nation and the focus should be on the development of a strong economy and on National Health. Countries such as East Timor, Fiji, Solomon Islands etc require extensive support for their all around development beginning from the establishment of sound and responsible political systems. In the following discussion, we prioritize the requirement of each nation with respect to the prior identified development sector of Health, Education and Regional Stability. a. Regional Health The nations in the region suffer from recurring diseases of pandemic proportions, poorly staffed health services and high rates of maternal and child mortality. It has been stated that “In 14 of the region’s countries, a woman’s chance of dying though pregnancy or childbirth is more than 20 times greater than in Australia, and in six countries it is more than 50 times greater. Yet three-quarters of maternal deaths could be averted by the full use of proven, cost-effective interventions” (AusAid, 2006). The poor state of basic health services is mainly responsible for the high maternal mortality rate in Papua New Guinea and East Timor. Solomon Islands has the world’s highest incidence of malaria while Aids is a ravaging epidemic in the region that arches from island to island. Malaria, in particular, affects the young people more; crippling the nation’s workforce. It causes enormous human suffering, retards economic and social development, and places severe strain on weak and under-resourced health systems. Left unchecked, malaria could seriously undermine development in the region. Australian should focus on improving the conditions of basic health care facilities in the region and in particular, must give due consideration to maternal and pediatric health care. Training for health care professionals need to provided, Infrastructure has to be generated. In the tackling of epidemics and pandemics including that of AIDS and Malaria (which is of more direct concern to Australia), social awareness need to be generated. Australia has taken a strong leadership role in the region through the Government’s unprecedented commitment to HIV programs in Asia and the Pacific. For this it would be best to work in tandem with other aid agencies who are already engaged in similar efforts. b. Regional Education Campaign Education alone can lead to sustained growth and development. Investment in much of the Asia-Pacific in education has been below the required amount resulting in the absence of a strong work force or an educated middle class. The demographic asymmetry of this discrepancy is more pronounced as the vast portion of the uneducated belong to the tribal category. Girls have been largely denied education. Combined with the fact that much of the region is about to witness a surge in the proportion of ‘young’ people relative to the population, this puts added strain on a society already struggling with problems of increasing joblessness and rising crime (Australian Population Association, 2004). The population would lack the general skill set required to meet global or even domestic demands. Australia therefore should focus its educational aid program on empowering the youth and removing the gender bias in education. Over the recent years, new sectoral approaches to education have started to take root across much of the Pacific, and are also being prepared in the Philippines, Indonesia and PNG. This new environment offers an opportunity for Australia to scale up its investment in education throughout the region. The recently announced plans for an Australia – Pacific technical college and the establishment of regional scholarship schemes for much of the Asia – Pacific is a very welcome step in this direction (Australia-Pacific Technical College, 2007). The attempt to foster local leadership through scholarship programs as well to increase the number of Australian trained professionals in these nations would greatly increase Australia’s influence in the region (Department of Education, Employment and Workplace Relations, 2008). c. Regional Stability The inability of succeeding governments to establish a strong central authority is the bane of the entire South Pacific. Government after government topple one another in rapid succession with often violent transgressions to anarchy and dictatorship. This region is also widely considered to have a ‘domino effect’ meaning that the instability in one nation can rapidly spill over to the next one causing general unrest (Dobell, 2006). Such an environment is -needless to say - not conducive for national growth and development; much less for attracting foreign investment. Consequently, the nations of the so called ‘arc of instability’ have high rates of human and drug trafficking, smuggling, illegal fishing, money laundering and are growing to be prominent breeding grounds for terrorism. Governments of smaller nations are also more expensive than large nations as the government expenditure borne by each citizen is very high. Also as AusAID states, “Governments in small countries also find it difficult to execute programs impartially because of the problem of familiarity — everyone knows everyone.” To combat these issues, the Australian government has evolved a set of general objectives for the improving governance in the region (AusAid, 2006): To strengthen regional audit arrangements, focusing on training, operational support and the development of common institutional frameworks and standards For the establishment and operation of a regional ombudsman’s office for implementing the Forum’s Principles of Good Leadership and Accountability, with the power to investigate citizens’ complaints against administrative acts and decisions of government To strengthen and upgrade country and regional statistical systems Providing assistance to organizations that promote regional integration and cooperation Australia should continue focus on the perusal of these broader objectives and should work within the framework of the larger goal of regional integration. Conclusion Australia should thus continue to focus on the Asia- Pacific as has been its foreign policy since a very long time (Firth, 2005). We have already seen that the region not only deserves this attention the most but also that it requires the maximum amount of Australian aid. The Asia – Pacific or the Oceania is plagued by problems of high poverty, illiteracy, unemployment, diseases of epidemic proportions and growing crime – all compounded by corrupt and inefficient governments. The emphasis of development ultimately rests on the shoulders of the individual nations’ concerned meaning that the extent to which Australia can provide aid or suggest policy reforms is very limited. Therefore, the Australian aid program should focus on maximizing the efficiency of the aid utilized. For this to be practical, Australia must also make sure that: The aid money is used by indigenous industries themselves, i.e., the aid must be ‘untied’ so that local tenders can be floated for the aids. Corruption is minimized and effectively dealt with. Incentives are provided for regional development. Policy reforms and institutional changes are encouraged and implemented. With the Australian foreign aid proposed to be doubled by 2010, it is only appropriate that Australia’s closest neighbors should be ones to be benefitted the maximum from an endeavor of such good will. Works Cited AAP. (2008, Feb 7). Nauru hit by detention centre closure. The Age . AusAid. (2006). A White Paperon the AUstralian Governments Aid Program. Canberra. Australian Population Association. (2004). population and issues: issues, research, policy. canberra. Australia-Pacific Technical College. (2007, Dec 19). Australia-Pacific Technical College. Retrieved June 03, 2008, from Australia-Pacific Technical College: http://www.aptc.edu.au/legal/copyright.html Bureau of Democracy, Human Rights, and Labor. (2008). Country Reports on Human Rights Practices - Solomon SIlands. Solomon Islands. Burke, A. (2001). In Fear of Security: Australias Invasion Anxiety. Annandale: Pluto Press Australia. Commonwealth of Australia. (2007, Nov 21). Australia and Asia - a New Paradigm for the Relationship, Speech by Richard Casey. Retrieved June 03, 2008, from Foriegnminister: http://www.foreignminister.gov.au/speeches/1999/990416_aust_asia.html Department of Education, Employment and Workplace Relations. (2008). Australian Scholarships. Retrieved June 1, 2008, from Australian Scholarships: http://www.australianscholarships.gov.au/ Dobell, G. (2006). The Pacific arc of instability. Correspondents Report . Firth, S. (2005). Australia in International Politics: An Introduction to Australian Foreign Policy. Sydney: Allen and Unwin. Hamnett, M. P. (1995). Natural Disaster Mitigation in Pacific Island Countries: A Policy Guide for Planners and decision makers. Suva, Fiji: UNDP/UNDHA. Hocking, J. (2003). Counter-Terrorism and the Criminalisation of Politics: Australia’s New Security Powers of Detention, Proscription and Control. Australian Journal of Politics and History Vol 49 . Kilby, P. (2007). The Australian Aid Program: Dealing with Poverty? The Australian Journal of International Affairs (61) . National AIDS Council (PNG). (2007). The 2007 Estimation Report on the HIV Epidemic in PNG . PNG. Roy, E. (2008, Feb 10). Aust, Pacific working on damaged relationship. ABC News . WHO. (2007). SARS: lessons from a new disease. Williams, G. (2003). Australian Values and the War against Terrorism. University of New South Wales Law Journal, vol. 26 . Wright-Neville, D. (2006). THE POLITICS OF FEAR: COUNTER-TERRORISM AND AUSTRALIAN DEMOCRACY. Madrid: Real Instituto Elcano. Read More