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20 April 2006

OVERSEAS AID - ITS TOO LITTLE, BUT WHERE IS IT GOING ANYWAY? 

If Australia was to increase its aid level to 0.5% of GNI by 2010, it could save the lives of 100,000 children, deliver drinking water to 20 million people and prevent 33, 000 deaths from AIDS and TB each year according to a report released this week by World Vision Australia

Instead, even with the doubling of aid levels promised by the present government, Australia is expected to reach just 0.38% of GNI by 2010, well short of the target of 0.7% required to reach the Millenium Development Goals set by the UN.

Also of concern to World Vision is how Australia’s aid is directed. The report found that funding for law and justice has increased by 930% in the last five years. In contrast, spending in overseas aid has only increased marginally for basic health (4%) and basic education (18%).

"While impoverished nations may need funding to help their police or their bureaucrats - it will do little if we don't also help desperately poor people feed or educate their children or stop them dying from preventable diseases or dirty drinking water," World Vision chief executive Tim Costello said.

Concerns were also expressed at the level of what is termed ‘boomerang aid’ – whereby most of the aid money provided ultimately ends up in the pockets of Australian consultants and companies that deliver aid projects. (The current enquiry into the Australian Wheat Board bribery scandal for example revealed that discredited AWB employee Trevor Flugge was paid almost $700,000 from Australia’s Aid budget to pursue the sale of Australian wheat to Iraq) See AID/WATCH for more information.

"At least 80% of Australia's bilateral aid budget is spent on Australian sourced goods and services - the cost of an Australian consultant can run as high as A$600,000 a year. There are better ways to use this money to help impoverished communities" Mr Costello said.

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