Increase to Australia’s Pacific aid

Sector welcomes federal government’s increase to aid funding in the Pacific.

Australia will step up its aid commitment to the Pacific, with the government announcing a boost in funding for the region.

Ahead of Labor’s first budget, Foreign Minister Penny Wong announced the federal government will increase its total Overseas Development Assistance Budget by $1.4 billion over the next four years, including $900 million of additional development assistance to Pacific nations.

It adds up to an additional $375 million in aid funding for the Pacific.

Announcing the increase in French Polynesia, Wong said the funding would “directly support action in the region to strengthen climate resilience, including on climate science and renewable energy”.

“It will ensure we continue to provide direct budget support to reduce fiscal distress, ensuring critical government services such as health and education continue to be delivered,” she continued.

The aid is also earmarked for aviation links throughout the region.

The government will also restore the target for 80 per cent of all of Australia’s developmental aid to address gender-based issues, Wong announced.

The announcement was welcomed by the Australian Council for International Development.

CEO Marc Purcell called it “a strong step” towards “revitalising” the nation’s international development program.

The organisation has been calling for an increase in Overseas Development Assistance to meet the needs of developing countries in the Pacific. Those needs have gotten more pressing since the onset of COVID-19 and as the climate crisis worsens.

“Human development went backwards due to the pandemic, and Australia should be providing more support. In challenging economic and geostrategic times, an increase to ODA is critical,” said Purcell. 

“The needs of our regional partners are clear: investment in health systems strengthening, climate change adaptation, gender equality, economic livelihoods and social protections.”