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More and Better Aid

Poverty will not be eradicated without an immediate increase in international aid and an improvement to how that aid is directed. More and better aid is needed to:

  • Help end extreme poverty
  • Enable every child to attend primary school
  • Reduce child mortality rates
  • Improve maternal health
  • Create decent jobs
  • Begin to reverse the spread of HIV/AIDS.

Despite welcome commitments to increase aid, Australia can and should do more. In 2000, Australia ranked 13 out of 22 rich countries for the amount of aid given as a proportion of national income. By 2010 Australia will rank 18th place, giving just 0.35 per cent of our wealth to aid – considerably lower than other nations. We can and should do more.

The Australian Government should join other rich countries by committing to a timetable for overseas aid as a proportion of Gross National Income (GNI) of 0.5% by 2010 and 0.7% by 2015.

Does aid work?
How more and better aid can help
More Aid
Better Aid
What about corruption?
Case study: Maura’s Story
Related links
Does aid work?

There is no doubt that overseas aid plays a major role in alleviating global poverty.

Examples of success include:

  • Every dollar invested in HIV/AIDS programs has a $40 return and increased access to anti-retro viral drugs has saved between 250,000 and 300,000 lives in recent years.
  • Overseas aid has also played a major role in global initiatives such as the eradication of small pox.
  • Global vaccination coverage for diseases such as measles, tuberculosis, tetanus and yellow fever has also saved millions of people each year with coverage increasing from five per cent in the 1970s to currently more than 70 per cent.

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How more and better aid can help

Our aid should be focused on reducing poverty, and bringing hope and opportunity to poor communities. If Australia adopted a greater focus on health and education in our region we could achieve:

  • an average decrease of more than 150,000 child deaths per year by 2015;
  • an average decrease of 4,800 maternal deaths a year by 2015;
  • at least 16,000 fewer AIDS deaths each year;
  • an average of 32,000 less deaths from tuberculosis each year by 2015;
  • 20 million more people with access to safe drinking water
  • about 110,000 more children receiving basic education

Our aid should be focused on the poorest countries in our region. Despite the fact that two-thirds of the world’s poor live in Asia, more than 50 per cent of Australia’s country-allocated aid is directed towards the Pacific, where only 0.4 per cent of the region’s poor live.

Throughout the developing world eight million lives could be saved annually if basic healthcare was available.

Just $10 billion a year in aid would provide a quality primary school education for every child in the world. The world spends that amount on weapons and soldiers every three days. Young people who have completed primary education are less than half as likely to contract HIV/AIDS.

An immediate annual injection of at least $50 billion is needed to allow countries to make progress towards the Millennium Development Goals. As much as $94 billion extra may be required if countries are to meet the targets in full. Without proper funding, 30,000 children will continue to die needlessly every day from causes associated with extreme poverty.

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More Aid

Which countries have honoured their foreign aid commitments or have established a binding timetable to do so by 2015? The list includes Sweden, Norway, Netherlands, Denmark, Luxembourg, France, the United Kingdom, Finland, Spain and Belgium.

Australia is not on this list. Although Australian aid is growing in volume, in historical terms it is not keeping pace with the increases in Australian wealth. We are richer as a nation than ever before, but we give a smaller proportion of our national wealth than we did, for instance in 1984, when over 0.47% of our Gross National Income was used for development assistance.

In 2005 the Australian Government committed to increasing the amount of aid we give to $4 billion by 2010 (which will only be around 0.35% of our Gross National Income). However, this figure is still significantly lower than that pledged by other wealthy nations, which have committed to give 0.5 per cent of GNI by the end of the decade in line with meeting a 0.7 per cent target by 2015.

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Better Aid

Australia’s aid budget has risen every year since 2002 (after having been cut in the late 1990s and in 2001). For the first time, there is a multi-year commitment to increase aid to $4.3 billion by 2010. This commitment is very welcome, but it is just a first step if we are serious about “sparing no effort” to help achieve the Millennium Development Goals.

As well as promising to increase aid, the Australian Government has also promised to increase the focus on basic poverty issues. This includes doubling the funding to basic health and tripling funding to basic education. This is great news because support for basic health, education and water and sanitation currently remains at less than 20% of the aid budget, while funding for law and justice and governance programs has been around one-third of the budget over recent years.

While improving governance is important, unless these basic needs and rights – education, health, clean water and sanitation – are met, then people will remain trapped in poverty.

However, even with this increased funding and renewed focus on health and education, we still won’t be doing our fair share in the global effort to achieve the Millennium Development Goals.

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What about corruption?

Corruption is a serious and widespread problem in many developing countries – it reduces economic development and minimises domestic resources, diverts aid and hurts the poor most. The causes of corruption are complex and there is no “one size fits all” approach to dealing with corruption.

However, concerns about corruption should not stop the fight against poverty. Corruption should change how we give our aid, it shouldn’t determine whether we give aid.

Because corruption is both a cause and effect of poverty, giving aid to improve health, education and public administration will help to reduce corruption. As people become healthier, better educated, and more empowered to address their own community’s issues, they will be better able to hold their own governments to account and work to reduce corruption. Make Poverty History’s partner campaigns in developing countries (through the Global Call to Action Against Poverty) are united in working to hold governments accountable for delivering basic services and protecting the human rights of the poor.

Suspending aid would only increase the suffering of the poor and increase the risks of global problems such as infectious diseases and terrorism impacting on Australia.

Even in corrupt environments, aid has contributed to the eradication of smallpox and the virtual elimination of polio, while debt relief has boosted spending on education and health.

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Maura’s Story

Maura Hassan lives in Tabata, a poor area of Dar es Salaam in Tanzania. Although she has water pipes connected to her home, she is unable to get any water through them. Since the water supply to the area has been privatised, she has been receiving bills for water she hasn’t used. Her last bill was for $400.

Maura is forced to buy water from a well dug by a private individual. Although this is much more expensive than piped water and she has no guarantee that it is safe to drink, she has no choice since the water connection to her house doesn’t work. Other local families can’t afford to buy any kind of water and are forced to use the local shallow wells. People who bathe in them start to itch and those who drink from them need expensive medicines to treat their subsequent illnesses.

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Related links

Resources from Make Poverty History members:

AID/WATCH

http://www.aidwatch.org.au/index.php?current=16

AusAID – regional distribution of aid

http://www.acfid.asn.au/resources/facts-and-figures/regional-distribution-of-aid-funds

World Vision – “Does aid work?”

http://www.worldvision.com.au/learn/policyandreports/files/DoesAidWork_2006_low.pdf

Resources by other international organisations:

Australian Government – AusAID

http://www.ausaid.gov.au/

Make Poverty History UK – Aid

http://www.makepovertyhistory.org/whatwewant/aid.shtml

ONE Campaign – Aid fact sheet

http://www.one.org/better_aid

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