The Australian Government's aid program aims 'to advance Australia's national interest by assisting developing countries to reduce poverty and achieve sustainable development'. Australia gives aid as a humanitarian response to help those in the region suffering extreme poverty. Australian aid focuses on strengthening governance and the delivery of basic services to all citizens in order to improve regional security. It also promotes economic growth in developing countries, which helps foster economic and political stability and expands trade and investment opportunities for Australia. Partnerships developed between Australia and aid recipient countries in the region help to improve friendships and solidarity.
Australian government aid is focused on the Asia Pacific region. Over 80% of Australia's aid activities are conducted through bilateral aid partnerships with 47 countries in the Asia Pacific. It provides selective assistance to Africa and the Middle East through international and non-government organisations. The top six countries that recieve the most aid are Papua New Guinea, Solomon Islands, Indonesia, Vietnam, Phillipines and China.
Aid is provided by government and by non-government agencies. The official form of government aid is Overseas Development Assistance (ODA), which can be in the form of loans or grants. The ODA pays an estimated 0.25% of the Gross National Income. Non-government aid comes in two forms: from voluntary and religious organisations and non government organisations. Financial insitutions also provide loans and grants to developing countries, but only to make a profit. Non government agencies such as the Red Cross and World Vision provide humanitarian aid and protection of human rights. Red Cross and World Vision work to help improve the lives of children, families, and communities living in poverty by providing food, water, education, technology and a natural and sustainable environment.
Australian overseas aid is distributed in a number of forms. However the two main forms are bilateral aid and multilateral aid.Bilateral aid is given in a partnership between governments of two countries, in this case, Australia and a developing country. In designing an aid program for an individual country, Australia works closely with the country's government and its communities. Multilateral aid is given by governments of many countries and is commonly distributed through international organisations such as the United Nations. Multilateral aid is used to fund emergency relief, transboundary issues and large scale development projects such as the building of railways and roads.
Australian aid is making a difference to the lives of many people in developing countries by helping to raise living standards. It plays an important role in regional stability and security. It also encourages economic growth at home because Australian companies are employed to manage and deliver most of our development projects. As a result, about 80% of our aid budget is spent buying Australian goods and services for developing countries, which means more jobs for Australians.
