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Australia’s aid volume was USD 2.67 billion in 2007, representing 0.32% of its gross national income (GNI). It has committed to contributing 0.5% of its GNI to official development assistance (ODA) by 2015/16.
Australia has made substantial, positive changes to its aid programme since 2004, reinforcing its focus on reducing poverty, on promoting the MDGs, and completely untying its aid programme. OECD’s Development Assistance Committee (DAC) welcomes Australia’s concentration on the Asia Pacific region and its continued engagement in states in fragile situations. The DAC recommends that Australia draw up a new policy statement setting out its strategic development assistance framework. Partnerships, like the Pacific Partnerships for Development, are a new key feature of the Australian programme. Australia’s rigorous whole-of-government approach facilitates policy coherence. AusAID, Australia’s anchor agency for development, has implemented comprehensive corporate reform. This includes devolving authority to the field and fostering a results-based and learning culture, assisted by the independent Office of Development Effectiveness.
Despite this progress, Australia still faces a number of challenges. It should work increasingly through developing country government systems. All Australian government stakeholders need to share the same development perspective when implementing the aid programme. While increasing its aid, Australia should stay focused and pursue effective approaches, including working with and through other donors. Australia successfully integrated gender equality into its aid programme and could now use the same approach to integrate environmental concerns.