The Australian government has promised to increase Australia’s foreign aid spending to $3.7 billion, which would be around 0.4% of last year’s gross national income. Over a period of several years the government hopes to increase the figure to 0.5% of GNI, but that is still well short of the UN target of 0.7%. Most of Australia’s foreign aid spending goes on long-term development; for example, around $2.5 billion is due to be spent on long term development in Indonesia over the next 5 years.
While Africa is recognised as being the continent with the greatest needs, Australia’s spending is focused much closer to home. Australia’s contribution to Africa is only around $100 million out of the $3.7 billion. A significant proportion of people in Papua New Guinea, Fiji and Vanuatu live on less than $1 per day, and they are seen as a greater priority for Australia than people in similar economic circumstances in Africa.
One of the goals of Australia’s foreign aid program is the improvement of our regional security by improving law and order and preventing conflict in neighbouring nations. Australia takes a leading role in providing aid in the Asia Pacific region, the home of some 800 million of the 1.2 billion people in the world living on less than $1 per day.