Australia’s 2014-15 Aid Budget

Australian Aid Policy

Key Points

On Tuesday, the Australian Government not only cut the aid budget, but it also further redirected aid away from the majority of the world’s poor.

  • Australia spends less than $1 in aid per person in the developing world each year. This makes it incredibly important where the aid is spent.
  • Australia’s largest aid partners in the Pacific receive up to almost a $1 per person every day. This is more than 1,500 times the amount of aid Australia provides per person to Sub-Saharan Africa.
  • While reducing the overall aid budget, the Government increased aid to the Pacific and more than halved aid to Sub-Saharan Africa.

Background

On Tuesday, the Australian Government cut the aid budget for the sixth time in two years and it further redirected aid away from the majority of the world’s poor. As outlined in this post here, the Australian aid program does not focus on the majority of the world’s poor, and disappointingly, the new Government is exasperating this. The magnitude of the bias towards Australia’s neighbourhood is shown in the chart below.

 Aid per person

While cutting overall aid spending, the new Government increased aid to the Pacific and East Asia, by reducing aid from South Asia and Sub-Saharan Africa. The chart below shows how regional aid allocations have changed under the new Government in terms of aid per person living in extreme poverty.

Aid per person living in extreme poverty

In the pursuit of budget savings, the new Government has not only, targeted the aid budget, but also disproportionately targeted people living in poverty outside of Australia’s neighbourhood. Given that the cuts to the aid budget make up over 20% of the total cuts to the budget, the Australian Government is trying to balance the books on the backs of the poor, in the poorest regions in the world.

Sources:

DFAT 2014 <http://aid.dfat.gov.au/Pages/home.aspx>

World Bank 2014A <http://iresearch.worldbank.org/PovcalNet/index.htm>

World Bank 2014B <http://data.worldbank.org/data-catalog/world-development-indicators>

 

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