Read The Times Australia

Daily Bulletin

A fair budget? Not for the poor losing Australian aid in record cuts

  • Written by: The Conversation
imageAustralian aid can make a difference to the lives of millions -- but there are few votes and little media interest in it, so it's an easy target for budget cuts.John Bransby/Department of Foreign Affairs, CC BY-SA

As Australians, we pride ourselves on our generous nature. Talking about foreign aid back in 1997, then foreign minister Alexander Downer remarked on “the generosity of Australians and our commitment to giving others, much worse off than ourselves, a fair go".

Generosity can only be judged relative to capacity. Our national economy will be some 30% bigger in 2016 than it was in 2006. Yet by next year our aid will be back at the level it was a decade earlier (adjusted for inflation) and our aid effort – aid relative to the size of the economy – will be at its lowest level ever.

This is one of the very few times (perhaps the only one) when we have advance knowledge of the likely size of the aid budget ahead of the federal budget being handed down. That’s thanks to last December’s Mid-Year Economic and Fiscal Outlook (MYEFO), which announced the latest round of aid cuts.

The Coalition came to power promising that aid would increase in line with inflation. Instead, the government is now cutting aid by one-third after inflation. This financial year alone the aid budget will tumble from A$5.0 billion to A$4.0 billion, which is a cut of exactly A$1 billion, the biggest cut to the aid program ever.

Further cuts are promised for 2016-17. When it is all done, our aid-to-GNI ratio, or generosity index, will plummet to 0.22%. That puts us in the bottom half of the league of OECD donors and well below the average.

imagehttp://devpolicy.org/biggest-aid-cuts-ever-produce-our-least-generous-aid-budget-ever-20141215-2/, Author provided

How bad things have got is indicated by a comparison with the aid policies of the competing parties in the recent UK election. If the policies of all bar one of the major UK parties were adopted here, Australia’s aid next year would be A$11 billion (or more) rather than A$4 billion. Only the far-right UKIP has a policy that supports an aid-GNI ratio of 0.2%.

Singling out aid

Of course aid is only one small part of the total federal budget. But the way it has been singled out is callous. It would be one thing if the government were on an austerity drive, out to cut all expenditure. But it is not.

Under Labor’s last set of forward estimates, total expenditure was projected to reach A$431 billion in 2015-16, and that figure was left unchanged by the government in its first budget. It is the share of spending on aid that has been slashed. This share will fall to close to 90 cents in every A$100 of spending in this budget, its lowest level ever. We have never given aid a lower priority.

Of course, if you think aid doesn’t work, then you should rejoice in this saving. But there is plenty of evidence that aid provides practical help to millions around the world. No, it won’t make countries rich, and there are many problems it can’t solve, but there are also many problems where we have little but aid to offer. Think natural disasters or ebola, for example. But think also about education in Indonesia.

Aid has never been politically important, but it is surprising how little the government has been called on to defend the cuts. Julie Bishop had one go blaming it on Labor, and every now and then a Coalition MP (or Tasmanian Senator Jacqui Lambie) says we can’t afford to give aid when we are borrowing: a ridiculous claim – and one that implies that no one with a mortgage should give to charity.

Whichever way it is spun, we are turning our back on the world’s poor. But the sad thing is that it hardly has to be spun at all. Aid might be important as a gauge of our national generosity, and might make a difference to the lives of millions, but journalists don’t ask many questions about it. The topic just doesn’t seem to rate in budget debates.

So remember this: if anyone calls the budget fair, think about aid and our biggest aid cuts ever.

* You can read more on Australia’s foreign aid policy at ANU’s Devpolicy blog or read more of The Conversation’s 2015 federal budget coverage.

Stephen Howes is involved in various projects which receive funding from the Australian aid program.

Authors: The Conversation

Read more http://theconversation.com/a-fair-budget-not-for-the-poor-losing-australian-aid-in-record-cuts-41609

Business News

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How Long Does Interstate Freight Take in Australia?

If you have ever arranged for stock, equipment or materials to travel from one Australian state to a...

How AEC Firms Can Scale Faster Without Sacrificing Project Quality

Growth presents a fundamental dilemma for architecture, engineering, and construction firms: expan...

What Makes an Aesthetic Clinic Worth Going Back To?

Trying an aesthetic clinic for the first time can feel like a bit of a gamble. You can read review...

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...

When Should You Speak with Divorce Lawyers in Sydney?

Divorce involves more than completing an online application. It can affect parenting arrangements, p...