Background
In 2000, Australia, along with 188 other countries, adopted the Millenium Development Goals (MDGs). The MDG project aims to take a massive step in ending extreme poverty by the year 2015 by co-ordinating aid programmes all around the world to create sustainable, targeted and effective development. Great progress has been made, however, based on the current trajectory, it is unlikely that the goals will be achieved by the deadline in 2015.
How is Australia doing?
Australia is highly regarded for the effectiveness of our development programmes. By focusing on regions in our vicinity and targeting our aid to areas, in which we have expertise, Australia has achieved some major successes in areas such as education, governance and trade infrastructure. The AusAid agency focuses on initiatives that lead to long term development, not short term 'bandaid measures'.
However, although AusAid is able to deliver very effective aid programmes, it is ultimately limited by the size of its budget. Foreign development aid is currently budgeted at 0.34% of Gross National Income (GNI), a paltry figure compared to countries such as Norway and Sweden which devote close to 1% of GNI per year. This is in stark contrast to the generosity of individual Australians, who collective give 0.7% of GDP in private donations (private donations are, however, not a substitute for effective governmental development aid).
What should be done?
At the time of the signing of the MDGs, a consensus figure was reached that to achieve the MDGs, signatory nations would have to spend 0.7% of GNI on development aid. Other governments, notably the UK in recent months, have followed through with their commitment and raised spending. Australia is lagging behind, agreeing only to increase development aid to 0.5% of GNI by 2015.
To play its part in achieving the MDGs, Australia needs to meet this benchmark. Without this extra spending, the gains that have already been made will not be extended to the point where 'developing' nations can be known as 'developed'.
What will 0.7% achieve?
Increasing our development aid budget to 0.7% of GNI will allow AusAid to improve and expand upon its current efforts. More money would allow important initiatives to be developed such as rolling out universal education up to year ten level (widely recognised as being a pre-requisite for sustainable economic growth); and developing port infrastructure so that farmers in developing nations can export their produce and 'trade their way out of poverty'.
What's in it for us?
Development aid can be considered an investment rather than a donation. By putting helping our neighbours to climb out of poverty, we will create entire new markets for Australian firms. AusAid's governance and policing programmes may also assist in improving regional stability, reducing the need for Australia to have a large defense force.
Can we afford it?
Australia is about to experience an enormous resources boom driven by huge natural gas and mining projects in Queensland and Western Australia. The federal and state governments will receive billions of dollars in additional royalties and private wealth is expected to increase dramatically. This new age of prosperity gives us a chance to do the right thing by our neighbours and help them to shift themselves onto the track of long term economic development.
How can I help?
Make your voice heard! The government is waiting for the people to drive this issue. The easiest and simple action you can take is to sign the petition for the parliament to pass the Act to End Poverty. Make it an election issue. Write to your MP and tell them you care about foreign aid. Talk about it with your friends and colleagues.
Just don't sit back. You can make a difference.
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