The Australian Agency for International Development introduced the Adviser Remuneration Framework in February 2011. The framework sets internationally competitive pay rates and a restricted set of allowances to the agency’s commercially contracted international advisers.
AusAID’s Adviser Stocktake: Report 2 reveals that since the introduction of ARF, the fees the agency pays for international advisers have dropped significantly. The average daily fee for short-term advisers fell 41.1 percent, while the average monthly rate for long-term advisers decreased 34.1 percent compared with pre-ARF charges.
The agency’s adviser expenditure for 2011-2012 was only $176.5 million or 4.32 percent of the aid program’s $4.087 billion total budget. There were fears lower fees could result to a reduction in the number of advisers. The report showed, however, that between June and December 2011, the number of advisers actually increased compared with the previous corresponding period.
AusAID estimates the aid program will be able to save up to $30 million over the next two years because of ARF. If this goes as expected, money saved could be used to fund other aid projects such as those in the health or education sectors.
The report says AusAID will continue to monitor its adviser reforms, including ARF, to ensure the aid program’s advisers continue to provide value for money and achieve development results. Adviser Stocktake Reports are published twice a year.
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