AusAID-Myanmar Partnership

One of the poorest countries in the world, Myanmar has among the lowest social development indicators in Southeast Asia. One-fourth of the country’s estimated 62 million people live in poverty — as much as 73 percent in some minority ethnic areas — and 10 percent of its citizens lack sufficient food. As such, the country has one of the highest incidences of death from preventable illness and disease in the region, with roughly one in 10 children dying before the age of 5. Myanmar is not expected to meet key Millennium Development Goals, and ranks 149th of 186 countries in the United Nations’ 2013 Human Development Index. Due to Myanmar’s repressive policies and overall isolation, the country has not traditionally received high levels of international assistance. Foreign assistance to the Asian country averaged $8 per person in 2011, compared with $68 for Laos, $49 for Cambodia and $39 for Vietnam. Donor support, mostly for capacity building and humanitarian interventions, has accelerated since the current government started implementing political and economic reforms in 2011, even as conflict in parts of the country threatens stability and development. Australia has promised deeper engagement with Myanmar, targeting to provide 100 million Australian dollars ($103.73 million) in annual aid by 2015. In its 2012-2014 country strategy for Myanmar, Australia aims to focus aid on long-term poverty reduction efforts, including capacity building and assistance in delivering basic services such as education, health and livelihoods. Australia is also supporting wider economic, political and social reforms, and the peace process in conflict-affected areas. Further, Australia is among donors leading efforts to coordinate foreign assistance to ensure effective and efficient aid delivery to Myanmar. The Australian Agency for International Development manages Australia’s entire aid budget for Myanmar for fiscal year 2012-2013. Funding levels Australian aid to Myanmar jumped 37 percent from AU$33.07 million in fiscal year 2009-2010 to AU$52.45 million in fiscal year 2010-2011. For fiscal year 2012-2013, Australia initially committed AU$63.8 million in development assistance, but that figure dropped to AU$58.2 million following Australia’s decision to reprioritize a portion of its aid budget to support asylum seekers within its borders. Click on image to view table in large size. Among the programs affected by the aid reprioritization are: - A rural productivity program managed by the Australian Centre for International Agricultural Research, where payments worth AU$3 million will be deferred. - Agricultural sector activities through the Livelihoods and Food Security Trust Fund, where payments worth AU$2.58 million will be deferred. Despite these reductions, ODA to Myanmar is expected to increase significantly in the coming years following Australian Foreign Minister Bob Carr’s promise to double annual assistance to Myanmar by 2015. The Australian government has drafted a comprehensive aid policy framework to 2015-2016, which notes that a substantial aid increase is needed to reduce poverty and advance reform efforts. Funding priorities In line with Australia’s long-term objective of reducing poverty in Myanmar, AusAID is focusing assistance on meeting four goals: 1. Better delivery of basic education and health services 2. Increased rural livelihoods 3. Address the needs of conflict and disaster-affected people 4. Effective governance and reforms Toward this end, funding for fiscal year 2012-2013 is allocated as follows: Click on image to view table in large size. To minimize duplication of efforts and wasted funds, Australia is actively working with Myanmar’s other development partners to ensure effective aid delivery. It is presently contributing to and assisting in various U.N. programs in Myanmar, and partnering with various local and international nongovernmental organizations. Among such projects and initiatives are: - Three Millennium Development Goals Fund: A $100 million fund that supports Myanmar’s efforts to meet MDGs on reducing child mortality, improving maternal health, and combating HIV and AIDS, malaria and other diseases. Managed by the U.N. Office for Project Services, the fund also receives contributions from the United Kingdom, the European Union, Sweden, Denmark, the Netherlands and Norway. - Myanmar Education Consortium: A $15 million initiative that aims to fund the nongovernment education sector. This is a partnership with Save the Children, World Vision, the Burnet Institute and various local civil society organizations. AusAID’s contribution to the consortium for 2012-2013 is $5 million. - Livelihoods and Food Security Trust Fund: Another UNOPS-managed initiative, the $19 million multidonor trust fund aims to improve farm productivity, food supply and incomes for up to 2 million people in Myanmar. AusAID funding for 2012-2013 is $2.7 million; other donors are the European Commission, the United Kingdom, Sweden and Switzerland. Australia is also committed to strengthening the Myanmar government’s capacity to deliver basic services, and crucial to this goal is to improve the Asian country’s internal financial management systems. Devex analysis Understanding that the development context may be vastly different by 2014, Australia limited its current program strategy for Myanmar to just two years. Australia expects key sectors and channels of support will be re-assessed over time, as development priorities and policies of the Myanmar government become more apparent. Toward this end, both governments will sign a memorandum of understanding on development cooperation in 2013. The memorandum will set roles and responsibilities of each government for effective aid delivery, and open discussions on development results and strategic direction. In addition, it will pave the way for greater country ownership of aid programs in Myanmar. The Australian government expects the next partnership strategy for Myanmar will closely align with the Asian country’s national development plans, provided reforms continue and are implemented at a reasonable pace. Myanmar is still finalizing its national development plans, which include goals and strategies for the education and health sectors. Australia presently channels assistance to Myanmar through multilateral organizations, international NGOs and local partners. While this is not likely to change in the immediate future, Australia is committed to boosting government capacity so that support can be given directly to Myanmar. Contact Australian Embassy, Myanmar 88 Strand Road, Yangon, Myanmar Tel: (95-1) 251-810, 251-809, 246-462, 246-463 Fax: (95-1) 246-159 Email: austembassy.yangon@dfat.gov.au Read more: - A road less traveled Find AusAID projects and tenders in, and read more development aid news on Myanmar. Join the Devex community and access more in-depth analysis, breaking news and business advice — and a host of other services — on international development, humanitarian aid and global health.