World Vision: more ambitious approach to aid required

Wednesday, May 14, 2008

International aid agency World Vision has described the Federal Government’s aid budget as ‘safe’, but said a more ambitious approach would be needed to make serious inroads into alleviating global poverty. 

The 2008-09 budget increased overseas aid to $3.7 billion, or 32 cents in every $100 of Gross National Income (GNI). 

“The government has been a bit sluggish out of the starting blocks, but we think they are heading in the right direction and can make significant gains in coming years,” said World Vision Head of Government Relations Amy Stockwell. “The government must be more bold in coming years if it is to reach its stated goal of spending .5% of GNI on overseas aid by 2015,” said Ms Stockwell. 

“More importantly, the internationally agreed aid level of .7% by 2015 will become increasingly difficult to attain.” 

Health and education – both focus areas for the government – suffered in the new aid budget. According to the budget papers spending on health in developing countries grew only .9% in real terms, while education spending actually fell by .5%. 

“We know it is the government’s first budget, but we would have expected increased spending in these areas in line with its stated commitment to align its aid with the Millennium Development Goals,” said Ms Stockwell. 

According to World Vision, spending on climate change adaptation – funding for people in developing countries to respond to the impact of dangerous climate change – was also underfunded. 

“It’s good to see the government delivering on their election commitment to include money for climate change adaptation in the budget. Sadly, they have underestimated the scale of the problem.” The budget allocated just $35 million for the 2008-09 financial year, far short of the funding recommended by World Vision. 

“Climate change adaptation and mitigation in developing countries is both a moral obligation and a financial investment,” said Stockwell. “Failure to increase funding for climate change adaptation now will lead to a far greater financial and human burden later.” 

However, there were welcome additions to aid expenditure too, with water and sanitation receiving a $300 million boost over three years. 

“It was pleasing to see increased funding for water and sanitation,” said Ms Stockwell. “Addressing these two areas has such a dramatic impact. For every dollar spent on water and sanitation, eight dollars is returned in increased productivity and reduced health costs.” 

Amy Stockwell is available for interview – 0431 738 996. 

Media contact: 
Dominic McInerney: 03 9287 2257 or 0403 163 125.

Media Releases, Poverty, Asia and the Pacific, Australian Government, Foreign Aid, Millennium Development Goals, United Nations

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