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

The Growing Demand for Durable Plastic Packaging Supplies Across Australia

Why Do Australian Businesses Need Reliable Plastic Packaging Supplies? Businesses need packaging that can withstand everyday handling, storage, and distribution without creating avoidable delays. Pla...

Daily Bulletin - avatar Daily Bulletin

Office Cleaning Melbourne: Choosing the Right Scope for Your Office

A well-planned office cleaning Melbourne arrangement starts with a clear understanding of the premises and the people who use it. An office may include private work areas, shared desks, reception, mee...

Daily Bulletin - avatar Daily Bulletin

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

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

The Daily Magazine

What Australian Entrepreneurs Should Know About Streamlining Their Financial Processes

Running a small business in Australia demands much more than just delivering a great product or serv...

Supporting Joint Health in Young and Growing Horses

Anyone who has raised a foal through to a rising three-year-old knows how deceptively fast the gro...

Why Is My Switchboard Buzzing? What a Humming Breaker Is Telling You

Most people never hear their switchboard. It sits quietly in a cupboard, a hallway or a meter box ou...

Solar Panels Geelong: Key Factors to Consider Before Installation

Solar power can help households and businesses generate electricity on site, but the value of a syst...

How Rats and Mice Get Into Homes Through Gaps Most People Miss

Rats and mice do not need an open door to get inside a home. They can squeeze through small openings...

Why a Safety Certified I/O Module Matters in Machine Design

Understanding Safety-Related I/O A safety certified I/O module is designed for use within an arch...

How to Compare Ceiling Fans online before Buying

Comparing ceiling fans online before making a purchase helps you understand how each model will su...

How Does a Portable Power Station for Carvan Adventures Support Smarter Camping?

Why Does Off-Grid Camping Need a Reliable Portable Power Station for Carvan Travel?  People often...

How Ecommerce Order Retail Fulfillment Services Improve Order Accuracy?

Why Order Accuracy Matters in Ecommerce Order Retail Fulfillment Services?  Order accuracy is one...