The Australian Federal Government is to be commended for increasing spending on aid in the 2010-11 Budget. In line with previous commitments, the government increased overseas aid by $530 million, which is a real increase of 9% , to a total of $4.349 billion. This equates to 0.33% of Gross National Income (GNI) or 33 cents in every $100 of national income.
The percentage increase is smaller than predicted, meaning progress towards the government’s committed target of 0.5% of GNI by 2015 will involve a steeper increases in future years. However, Australia is very well placed to fulfil this, given the now predicted faster return to budget surplus, and Australia’s very strong economic position in comparison to other donor countries.
The Government has significantly increased funding to AusAID, the body that administers the aid budget. This investment and the announcement reviews of AusAID’s frameworks and structures will be crucial in preparing AusAID to manage overseas development aid as it increases more rapidly in coming years.
World Vision Australia regards investment in maternal and child health as a key priority in the aid budget. It is disappointing that in the 2010-11 budget, spending on health decreased from 16% to 14% of total aid – which means a drop of $40 million in 2010-11 alone. This is well below the allocations given by other OECD nations to health, including the United Kingdom, Ireland and the United States.
Investing in maternal health clearly works. An increased global focus on maternal and child health has resulted in a 30% drop in child mortality between 1990 and 2009. In April this year, new maternal mortality figures were released that show preventable maternal deaths have decreased from over 500,000 per year to at least 340,000.
World Vision Australia maintains that spending on health should be increased to 20% of overseas development aid.
World Vision Australia welcomes the Government's commitment to the Copenhagen Accord and recognises that the government announced some climate finance funds. However, the announcements are unclear on what proportion of these funds is "new and additional", as laid down in the Copenhagen Accord.
It is crucial that long-term funding for climate change is not diverted from existing aid needs. Diverting funds could endanger the progress already made in tackling the Millennium Development Goals (MDGs). Developing countries must not be forced to choose between adapting to climate change and investing in other critical initiatives, such as stronger health systems.