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| Julie Bishop overhauls foreign aid program with 'aid-for-trade' plan | Julie Bishop overhauls foreign aid program with 'aid-for-trade' plan |
| (35 minutes later) | |
| Julie Bishop has signalled an overhaul of Australia's foreign aid program, including a larger role for the private sector and the devotion of at least one-fifth of the budget to increase economic growth in developing countries through "aid for trade". | Julie Bishop has signalled an overhaul of Australia's foreign aid program, including a larger role for the private sector and the devotion of at least one-fifth of the budget to increase economic growth in developing countries through "aid for trade". |
| The foreign affairs minister also outlined a plan to impose stricter rules to ensure recipient countries and projects delivered "value for money", along with a greater focus on projects to boost women's engagement. | The foreign affairs minister also outlined a plan to impose stricter rules to ensure recipient countries and projects delivered "value for money", along with a greater focus on projects to boost women's engagement. |
| Charities and the non-government sector welcomed elements of Bishop's proposals, such as the focus on female involvement and performance benchmarks, but raised concern over the need to ensure benefits from "aid for trade" flowed to the people in greatest need and reduced poverty. | Charities and the non-government sector welcomed elements of Bishop's proposals, such as the focus on female involvement and performance benchmarks, but raised concern over the need to ensure benefits from "aid for trade" flowed to the people in greatest need and reduced poverty. |
| "Unless businesses operate ethically, sustainably and with respect for human rights these benefits will not flow to the people in society who need them most," said Archie Law, executive director of ActionAid Australia, an international development organisation. | "Unless businesses operate ethically, sustainably and with respect for human rights these benefits will not flow to the people in society who need them most," said Archie Law, executive director of ActionAid Australia, an international development organisation. |
| Labor and the Greens said the announcements could not distract from the government's "devastating" cuts to previously budgeted overseas development assistance. | Labor and the Greens said the announcements could not distract from the government's "devastating" cuts to previously budgeted overseas development assistance. |
| Last month's budget confirmed savings of $7.6bn over five years by maintaining official development assistance at $5bn for the next two financial years and then applying increases in line with the consumer price index. | Last month's budget confirmed savings of $7.6bn over five years by maintaining official development assistance at $5bn for the next two financial years and then applying increases in line with the consumer price index. |
| During an address to the National Press Club in Canberra, Bishop said it was wrong to label them "savage cuts". | During an address to the National Press Club in Canberra, Bishop said it was wrong to label them "savage cuts". |
| "We are not going to embrace Labor's trajectory of spending," she said. | "We are not going to embrace Labor's trajectory of spending," she said. |
| "We have stabilised the aid budget." | "We have stabilised the aid budget." |
| Outlining her plans for how that money would be spent, Bishop said the government would pursue innovative ways to engage the private sector. She said a strong private sector would deliver higher growth, more jobs and poverty reduction. | Outlining her plans for how that money would be spent, Bishop said the government would pursue innovative ways to engage the private sector. She said a strong private sector would deliver higher growth, more jobs and poverty reduction. |
| The government would increase “aid for trade”, a scheme introduced by the Howard government with an aim of helping developing countries improve their capacity to trade. | The government would increase “aid for trade”, a scheme introduced by the Howard government with an aim of helping developing countries improve their capacity to trade. |
| The proportion of the overseas development assistance budget devoted to "aid for trade" would increase from 12.5% now to 20% by 2020, according to government documents explaining the new aid policies. | The proportion of the overseas development assistance budget devoted to "aid for trade" would increase from 12.5% now to 20% by 2020, according to government documents explaining the new aid policies. |
| The government would focus on governance and regulatory impediments, trade facilitation, infrastructure, water, private sector development, agri-food, fisheries and services, and empowering women to engage in economic activities. | The government would focus on governance and regulatory impediments, trade facilitation, infrastructure, water, private sector development, agri-food, fisheries and services, and empowering women to engage in economic activities. |
| "The private sector, multilateral development banks and other donors will be important partners in the delivery of aid for trade outcomes," the policy document said. | "The private sector, multilateral development banks and other donors will be important partners in the delivery of aid for trade outcomes," the policy document said. |
| Asked how the government would ensure the benefits of "aid for trade" flowed to those in greater need, Bishop said the government was realistic about the role of the private sector. | Asked how the government would ensure the benefits of "aid for trade" flowed to those in greater need, Bishop said the government was realistic about the role of the private sector. |
| "International evidence reinforces that private sector-led growth is the primary driver of poverty reduction and so we will ensure, by our incremental process of embracing aid for trade initiatives, that we do make a difference to the lives of those who need it most," she said. | "International evidence reinforces that private sector-led growth is the primary driver of poverty reduction and so we will ensure, by our incremental process of embracing aid for trade initiatives, that we do make a difference to the lives of those who need it most," she said. |
| The policy documents said the government would look to involve the private sector in designing and delivering investments, project financing, public-private partnerships, improved regulatory environment, and address other constraints to economic growth. | The policy documents said the government would look to involve the private sector in designing and delivering investments, project financing, public-private partnerships, improved regulatory environment, and address other constraints to economic growth. |
| The Greens leader, Christine Milne, characterised this as an attempt to "corporatise" the aid program, while the opposition's foreign affairs spokeswoman, Tanya Plibersek, she was concerned by the cuts to the aid budget and the "suggestion that Australia's overseas aid can be outsourced to the private sector". | The Greens leader, Christine Milne, characterised this as an attempt to "corporatise" the aid program, while the opposition's foreign affairs spokeswoman, Tanya Plibersek, she was concerned by the cuts to the aid budget and the "suggestion that Australia's overseas aid can be outsourced to the private sector". |
| Other elements of the government's plan include ensuring that 80% of investments, regardless of their objectives, must "effectively address gender issues in their implementation". This could include involving women in decision making, identifying opportunities for women to gain employment, and addressing violence and social norms that harmed women. | Other elements of the government's plan include ensuring that 80% of investments, regardless of their objectives, must "effectively address gender issues in their implementation". This could include involving women in decision making, identifying opportunities for women to gain employment, and addressing violence and social norms that harmed women. |
| The proportion of country program aid spent in the Indo-Pacific region would increase to at least 90% next financial year, while the government would insist on strong "mutual obligations" with partner governments and organisations. | The proportion of country program aid spent in the Indo-Pacific region would increase to at least 90% next financial year, while the government would insist on strong "mutual obligations" with partner governments and organisations. |
| The government would set a goal of achieving "value for money" in at least 85% of aid investments. Investments not achieving this would be given a year to improve or face cancellation. | The government would set a goal of achieving "value for money" in at least 85% of aid investments. Investments not achieving this would be given a year to improve or face cancellation. |
| Bishop also flagged new fraud control and anti-corruption strategies to ensure money was not siphoned off. | Bishop also flagged new fraud control and anti-corruption strategies to ensure money was not siphoned off. |
| Bishop said she had spoken “frankly” with ministers in Papua New Guinea – “one of our dearest, closest friends” – about how the two countries could ensure Australia's substantial aid contributions were spent effectively. | Bishop said she had spoken “frankly” with ministers in Papua New Guinea – “one of our dearest, closest friends” – about how the two countries could ensure Australia's substantial aid contributions were spent effectively. |
| She did not directly answer a question about her confidence in the PNG prime minister, Peter O'Neill, who is taking action to halt an arrest warrant in relation to an alleged illegal payment of $30m by the government to a Port Moresby law firm and sacked the attorney general on Tuesday night. | She did not directly answer a question about her confidence in the PNG prime minister, Peter O'Neill, who is taking action to halt an arrest warrant in relation to an alleged illegal payment of $30m by the government to a Port Moresby law firm and sacked the attorney general on Tuesday night. |
| “I have made it clear to the PNG government, and they agree, that we can't continue to go on as we have in past, spending billions and billions in PNG when they won't meet any of the millennium development goals in 2015, indeed are going backwards,” Bishop said. | “I have made it clear to the PNG government, and they agree, that we can't continue to go on as we have in past, spending billions and billions in PNG when they won't meet any of the millennium development goals in 2015, indeed are going backwards,” Bishop said. |
| The chief executive of the international aid organisation Care Australia, Julia Newton-Howes, said PNG had one of the worst maternal mortality rates in the world despite having experienced more than 10 years of uninterrupted economic growth. | The chief executive of the international aid organisation Care Australia, Julia Newton-Howes, said PNG had one of the worst maternal mortality rates in the world despite having experienced more than 10 years of uninterrupted economic growth. |
| She said economic development could be central to creating opportunities, yet “all too often” the world’s poorest people missed out. | She said economic development could be central to creating opportunities, yet “all too often” the world’s poorest people missed out. |
| Plan International Australia’s chief executive officer, Ian Wishart, said he would be "disappointed if the big economic and trade push overlooks the poorest 20%". | Plan International Australia’s chief executive officer, Ian Wishart, said he would be "disappointed if the big economic and trade push overlooks the poorest 20%". |
| "Plan [International] hopes that this agenda will be inclusive of the poor and provide real jobs for disadvantaged young people – not just opportunities that benefit the elite in the hope that benefits will eventually trickle down," he said. | |
| World Vision Australia's chief executive, Tim Costello, said he wanted to ensure that “the benefits of investment in ‘aid for trade' really do reach poor farmers and struggling labourers’ pockets”. | World Vision Australia's chief executive, Tim Costello, said he wanted to ensure that “the benefits of investment in ‘aid for trade' really do reach poor farmers and struggling labourers’ pockets”. |
| The Australian Council for International Development welcomed the “clear framework” but said the ultimate test would be whether it would have a strong, sustainable impact in helping the poorest overcome poverty. | The Australian Council for International Development welcomed the “clear framework” but said the ultimate test would be whether it would have a strong, sustainable impact in helping the poorest overcome poverty. |
| Helen Szoke, chief executive of Oxfam Australia, said her organisation "would have put the reduction of poverty as the first benchmark" in the revamped aid program and was "cautious" about the role of the private sector. | Helen Szoke, chief executive of Oxfam Australia, said her organisation "would have put the reduction of poverty as the first benchmark" in the revamped aid program and was "cautious" about the role of the private sector. |
| "We remain disappointed with the past government and this government with the erosions in the aid budget," she said. "Australia had signed up to a commitment to actually having 0.7% of gross national income as a target by 2016. That's now pushed out. For every year that's pushed out that's a year longer that it will take to make a real difference for people across the world." | "We remain disappointed with the past government and this government with the erosions in the aid budget," she said. "Australia had signed up to a commitment to actually having 0.7% of gross national income as a target by 2016. That's now pushed out. For every year that's pushed out that's a year longer that it will take to make a real difference for people across the world." |
| Fadlullah Wilmot, head of international programs at Islamic Relief Australia, said he supported benchmarks and hoped the government would ensure the government “achieve the goal of lifting the poorest of the poor out of poverty, especially targeting women the disabled and other vulnerable and marginalised communities”. | Fadlullah Wilmot, head of international programs at Islamic Relief Australia, said he supported benchmarks and hoped the government would ensure the government “achieve the goal of lifting the poorest of the poor out of poverty, especially targeting women the disabled and other vulnerable and marginalised communities”. |