> Australia's Aid Budget: Promoting Growth and Stability in the Asia Pacific Region
> I am pleased to announce that Australia will provide $1.815 billion as official development assistance (ODA) in 2002-03, an increase of $90 million over the 2001-02 budget figure ($1.725 billion) and a real increase of 3 per cent. This is an ODA/GNI ratio of 0.25 per cent, placing Australia consistently above the donor average which in the latest year available (2001) was 0.22 per cent.
> The Australian aid programme will continue to advance our national interest by assisting de-veloping countries to reduce poverty and achieve sustainable development. In 2002-03, Australia's aid programme will retain its strong focus on the Asia-Pacific region where it makes an important contribution to regional peace and stability as well as to poverty reduction. By promoting economic growth and good governance, the aid programme will assist in combating poverty in our region and ensure effective delivery of aid through encouraging in-stitutions which are transparent and accountable.
> AID BUDGET HIGHLIGHTS
> * Our strong continuing commitment to the nations of the Pacific is demonstrated by an increase in total aid flows to $165 million.
> * Australia's aid to the Solomon Islands will rise to $36.2 million to help deal with the country's serious economic, social and law and order problems
> * A full bilateral aid programme to Fiji will be resumed with total aid expected to reach $19.7 million. The programme will promote stability, through strengthening basic services and increasing confidence in the law and justice sector
> * Aid to Vanuatu will increase to $22.1 million. The programme will support the Vanuatu Government's efforts to address the risks to prosperity and stability including through strengthening the police and judicial sector
> * Substantial bilateral support to Papua New Guinea of $300 million will continue to be provided to help sustain the momentum for reform
> * As part of Australia's continuing commitment to East Timor's nation building in its first year of independence, aid programme funding of $36 million will be provided
> * Australia's aid commitment to Indonesia will be maintained with total funding of $121.6 million. The programme will assist Indonesia to implement its reform agenda including through assistance aimed at improving economic and financial management and decentralised planning and service delivery
> * The bilateral programme in Burma will increase to bring total aid flows to $6.2 million. The programme will focus initially on improving basic health services, given the humanitarian crisis that is engulfing the country
> * As part of the $200 million, six-year HIV/AIDS programme announced in June 2000, approximately $38.5 million worth of bilateral and regional HIV/AIDS activities will be supported in 2002-03
> * A special $15 million international refugee allocation will be available to support programmes of international agencies to assist refugees and internally displaced people
> * To strengthen the aid programme's capacity to alleviate the human impact of conflict, natural disasters and economic and political crises in our region, funding for emergencies will increase by $15 million to $52.4 million. This is provided in addition to the $49 million allocated for humanitarian programmes in 2002-03
> * Further funding will be provided in continued support for the reconstruction of Afghanistan
> * Australia's aid commitment to the Middle East is expected to be $11.9 million.
> OTHER FEATURES
> To enable developing countries to meet the challenge of globalisation, through strengthening their capacity to participate in global and regional trading arrangements and take advantage of new trade opportunities, aid programme funding for direct trade-related assistance will increase to nearly $25 million.>
> In 2002-03, the second year of the Virtual Colombo Plan, a $200 million, five-year initiative between the World Bank and the Australian Government, Australia will provide $31 million to promote access to education and information in developing countries.
> Australia has made an additional commitment of $18 million over three years to support debt relief in the poorest countries through the World Bank's Heavily Indebted Poor Countries (HIPC) Initiative. This brings Australia's total support for HIPC to $77 million.
> Funding for volunteers, including the Youth Ambassadors for Development Scheme, Austra-lian Volunteers International and AESOP Business Volunteers, will increase by $1.9 million to reach a total of $20.5 million, the highest level achieved.
> Media inquiries:
> Chris Kenny (Ministerial) 02 6277 7500
> Jo Elsom (AusAID) 02 6206 4960
> http://www.ausaid.gov.au/media/release.cfm?BC=Media&Id=4083_5406_2814_8179_2389
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