Amid the COVID-19 pandemic, Australia continues its foreign aid efforts, especially with investments in sustainability and infrastructure. This demonstrates Australia’s deep commitment to altruistic sustainable solutions. The total Australian development assistance was still four billion AUD (Australian dollar) in the 2019-2020 year, even though the nation is in the depths of its first recession in 29 years and is affected by the global pandemic. This four billion AUD makes up 0.21% of Australia’s total budget as seen in recent years, highlighting foreign aid as a prerogative for Australia despite economic shortcomings, including budget cuts and a global pandemic.

The Pacific

Australia’s foreign aid used $1.4 billion to finance developmental assistance in the Pacific. There are significant infrastructure needs in the region, so developmental assistance includes infrastructure. The Australian Infrastructure Financing Facility in the Pacific became operational on July 1, 2020. This funding supports efforts such as roads, buildings and power. Australia’s foreign aid works with governments and institutions on education and health programs in the region. This was done in recognition of the notable infrastructure needs in the region and the important role infrastructure plays in sanctioning growth. This demonstrates the depth of Australia’s commitment to the growth and development of the Pacific region.

The Australian Infrastructure Financing Facility for the Pacific aims to transform Australia’s international assistance and be a pillar of sustainable, principles-backed foundational investments in the Pacific and the nation of Timor-Leste. It permits Australia to work directly with partner governments, and also the private sector, to manage essential infrastructure gaps while unsustainable debt is avoided. This highlights Australia’s commitment to sustainability.

Australia’s foreign aid budget poured $500 million into financing infrastructure in the Pacific since 2017. The amount of $450 million went to humanitarian and protracted crises, which saves lives, alleviates suffering and strengthens human dignity.

The Coral Sea Cable System

From 2017-2020, the foreign aid budget spent up to $200 million on improving access to the internet, dubbed the “Coral Sea Cable System”, in the Solomon Islands and Papua New Guinea. This has many beneficial aspects, such as improved access to resources for rural populations.

In 2019-2020, Australia’s foreign aid budget also spent $145 million contributing to strong, inclusive and sustainable economic growth in Indonesia. Australia’s aid to Indonesia is important because about 26.42 million Indonesians live in poverty, and roughly 5.5 to 8 million Indonesians are estimated to have fallen into poverty due to COVID-19. According to the World Bank’s Human Capital Index, the next generation of Indonesian citizens would be 54% as productive as they could have been if they had a complete education or full health. Therefore, Australia’s foreign aid is very important at this time.

Labor mobility describes how easy it is to move from one occupation to another. Countries like Papua New Guinea, Solomon Islands and Vanuatu face challenges such as a large percentage of their population living in remote regions. Thus, these populations have low labor mobility. Expanding labor mobility is necessary for the future of these regions.

Conclusion

Despite being in the middle of a recession and amid a global pandemic, Australia was able to give four billion AUD, or 0.21% of its total budget, in developmental assistance toward the Pacific region, especially investing in sustainability and infrastructure. The Australian Infrastructure Financing Facility in the Pacific aims to be sustainable, functional investments by allowing Australia to work directly with partner governments to manage infrastructure gaps while avoiding unsustainable debt. Since 2017, Australia has invested $500 million into infrastructure in the Pacific.

– Madi Drayna
Photo: Flickr