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Australia’s Foreign Aid Initiatives Amid COVID-19

Australia's Foreign Aid Initiatives Amid the COVID-19 PandemicAmid 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

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The Solomon Islands Develop Telecommunication Technology

Develop telecommunication technology
The Solomon Islands has reached a deal with Australia to help develop telecommunication technology in the country. Only about one-sixth of the country’s 660,000 people are currently connected to the Internet, with most of that population concentrated in the Solomon Islands’ urban areas and relying on satellite connections to use it. The Solomon Islands tech deal with Australia will allow the country to connect to outside servers and develop telecommunication connections within. Australia had also previously helped the Solomon Islands quell civil unrest between various indigenous militias between 2003 to 2017.

The Giant Undersea Cable Project

The Australian communications company Vocus is in charge of the construction of a major underwater cable known as the Coral Sea Cable System. Australia granted it in 2017 with a grant of $137 million, and Australia, the Solomon Islands and Papua New Guinea agreed to the deal to build the cable in 2018. The Coral Sea Cable System is a 4,700 km (2920 mi) underwater cable that will link Sydney to Port Moresby and Honiara, with the latter also connecting to Solomon Islands Domestic Network linking the archipelago. The cable will transfer over 40 TB of data to all three ports in the network, which would allow for 300,000 new jobs and growth of $5 billion in GDP for Pacific countries such as the Solomon Islands by 2040. As noted previously, only a small percentage of the population that uses the Internet use satellite to connect to it. As such, the underwater cable should grant the island nation more reliable and stable connections in part for the Solomon Islands tech deal which has helped to develop telecommunication technology significantly.

Since making the deal official, the project has made much progress in building its undersea cable network. The project installed landing sites at Port Moresby and Honiara in July 2019, symbolized by a golden buoy marking the occasion. In August 2019, it installed the landing site in Sydney and the final splice in September 2019. The Solomon Islands Domestic Network planned to finish in time for the December 2019 activation. Once complete, the Solomon Islands, alongside neighboring Papua New Guinea, can connect to a more reliable broadband connection and reliable Internet access.

Other Developments

Before the Solomon Islands tech deal with Australia, the Solomon Islands’ fisheries brokered a deal with the World Wide Fund for Nature (WWF) for training tech. Beginning in May 2018, the WWF provided funds for new tech such as tablets that allow for training of observers to monitor and observe fishing levels in the Solomon Islands and currently has 85 percent of electronic reporting by satellite commutation with the Ministry of Fisheries and Marine Resources (MFMR). This efficient approach also lets observers electronically report between fishing boats out at sea and stations back on land. While the deal occurred before the Coral Sea Cable system deal, the e-reporting will benefit greatly from the system implementation upon its completion in 2019.

The Solomon Islands tech deal with Australia will build the internal infrastructure and bolster the Internet connection in the country by connecting the Solomon Islands with not only neighboring Papua New Guinea and Australia but the archipelago as well. The project also will bolster existing tech programs with improved infrastructure once completed. The project should complete by the end of 2019. Continuing to develop telecommunication technology is important for the global population.

–  Henry Elliott
Photo: Pixabay