Australia welcomes new era for aid

Australia’s new prime minister, Anthony Albanese, was sworn in Monday after the country elected its first Labor government in nearly a decade. Albanese and new Foreign Affairs Minister Penny Wong have immediately put Australian aid on the agenda as they head to the Quadrilateral Security Dialogue summit in Tokyo, announcing an investment of 470 million Australian dollars ($330 million) for Southeast Asia, along with a new office within the Department of Foreign Affairs and Trade to prioritize program delivery and engagement with the region. In the lead-up to the election, Wong and Pat Conroy, then shadow minister for international development and the Pacific, announced other planned changes to Australia’s aid program, including a funding increase of AU$525 million for the Pacific region over the next four years. With the country’s overall aid budget currently standing at about AU$4.5 billion a year, Conroy told the 2022 election policy forum on aid and development that Labor would also be announcing further funding for “the rest of the world and multilateral institutions.” This new funding is in addition to the slightly increased Australian aid budget that was already announced in March and will become an important part of Wong’s vision to rebuild Australia’s diplomatic capability and relationships with Southeast Asia and the Pacific. That includes rebuilding some of the development expertise within DFAT that has been lost in recent years through outsourcing and the merger of the aid agency with the foreign affairs department. Despite Labor moving ahead with its plans, it could also be constrained by the new makeup of Parliament, which is likely to push for more climate spending and green programming. Here’s what we know so far about the new era of Australian aid: Labor’s aid focus According to Conroy, development assistance under Labor will be focusing on: • Poverty reduction. • Equitable access to quality health and education services. • Economic development and infrastructure investment. • Climate change and environmental sustainability, sustainable agriculture, forest and fisheries management, and food security. • Water, sanitation, and hygiene. • Good governance. • Global humanitarian crises and the root causes of crisis, conflict, instability, and insecurity. • Empowerment of people with disabilities. • Gender equality and empowerment of women and girls. A target for 80% of Australia’s aid to address gender issues will be maintained. Pacific programs will also continue to be a priority. Australia will be “listening and acting on Pacific island warnings of the existential threat of climate change,” Conroy said. A Pacific Climate Infrastructure Financing Partnership will be established. With diplomacy a key part of the new government’s approach to aid, he also hopes to broadcast more Australian media in the Pacific region and to reinstate regular bipartisan Parliamentary Pacific visits to increase Australia’s political presence in the region. The defense focus to aid, a priority for former Prime Minister Scott Morrison’s government, will continue with Labor through the establishment of a new Australia-Pacific Defence School and increased funding for the Pacific Maritime Security Program. Economic support will be enhanced through an expansion of the Pacific Labor Scheme. The Indigenous to Indigenous approach is also likely to be expanded through a First Nations foreign policy announced by Wong to expand Indigenous cultural exchange in the region. Multilateral institutions are also expected to receive a boost, but the details of that are not yet known. So what’s new? Despite criticisms of the AusAID merger that took place under the Liberal government, Australian aid is expected to remain within DFAT as a foreign policy tool. No mention has been made of reinstating the Office of Development Effectiveness to improve the transparency and accountability of Australian aid after its recent demise, either. But there is likely to be a shift in direction, capability, and even leadership for DFAT to address issues identified by Wong, particularly the lack of knowledge and capability that exists in DFAT, a result of high levels of outsourcing, including in aid the program. Kathryn Campbell’s position as DFAT’s secretary is under a cloud, with Wong possibly seeking to choose someone with long diplomatic experience. “Our foreign service has many talented, skilled people, but they have been hampered by a lack of leadership, degraded resources, and a lack of clarity of how they are expected to deliver for Australia in these changing times,” Wong explained in a speech last November. “DFAT needs clearer political leadership and a sharper understanding of its role, responsibilities, and its potential in these times. And it needs the tools to deliver this, including a rebuilding of our development assistance program.” That will mean bringing more capability into DFAT rather than relying on contractors to do the work. Despite Labor’s big plans, other voices may influence Australian aid. While votes are still being counted to finalize the makeup of the new parliament, Albanese is set to face pressures with his policies and priorities. Both the Labor Party and the Liberal-led coalition recorded their lowest primary vote on record as Australians turned against the major parties, in part due to dissatisfaction with the pace of climate action. At the moment, Labor does not have a strong climate policy. While the party is projected to have a slim majority in the lower house, Albanese could potentially be the leader of a minority government requiring him to negotiate with independents and Greens in both houses of parliament. This will require a stronger 2030 emissions reduction target, a faster transition away from fossil fuels, and the climate leadership that Pacific nations have been calling on Australia to show. For Australia’s aid program this may also mean rethinking programs with a greater green lens — including private sector partnerships or program areas including support for extractive industries which may be in opposition to new domestic policies. There may also be a push for transparency to be put back on the agenda, to ensure proper scrutiny of climate programs.