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Australian Federal Budget Increases Aid Allocations

By Pacific Magazine
Tuesday: May 13, 2008

The Australian government will spend A$54 (US$50) million over four years on what it’s calling the “Pacific Land Program”—an effort to “protect customary land rights, promote economic and social development, and reduce the potential for instability through land-related conflict in the Pacific.”

In the Federal Budget delivered tonight, the Australian government has said A$6.5 (US$6.1)million will be allocated in 2008/09, to “support partner government-led improvements in land administration. Australian funding will help address the challenges to land use and ownership from urbanization. Clarification of land title is a key prerequisite for private investment. Funding will also improve the skills of professionals and semi-professionals in areas such as planning, surveying and valuing.”

The Australian government will also expand its assistance to Papua New Guinea and Australia in 2008/09, with particular focus on the Millennium Development Goals.

“New programs focusing on infrastructure development, land administration and public sector capacity building will contribute to the Pacific Partnerships for Development outlined in the Prime Minister's March 2008 Port Moresby Declaration. The partnerships will provide a new framework for Australia and the Pacific island nations to commit jointly to achieving improved development outcomes, on the basis of mutual respect and mutual responsibility,” the government says in a statement.

Australia will also invest A$127 (US$119)million over four years, with A$5.5 (US$5.18)million in 2008-09, to improve basic infrastructure services in the Pacific—including transport, sanitation, waste management, energy and communications.

The so-called Pacific Public Sector Capacity project will also see Australia allocate A$107 (US$100) million over four years, with A$6 (US$5.6)million in 2008-09, to strengthen public sector administration in the Pacific including management and policy reform.

Overall, the government of Prime Minister Kevin Rudd will provide an estimated A$3.7 (US$3.4) billion in ODA in 2008-09, increasing Australia's ratio of ODA to GNI from 0.30 per cent in 2007-08 to 0.32 per cent in 2008-09.

The Australian government has committed to increasing Australia's Official Development Assistance (ODA) to 0.5 per cent of Gross National Income (GNI) by 2015-16.