I am an expatriate resident of Vanuatu and was pleased to hear that Kevin Rudd had initiated a review of Australia’s overseas aid and I hope it will be more than a “Yes, Minister” review.
When I lived in Australia, I firmly believed that the overseas aid budget should be significant; a rich country like Australia should help poor countries – simple.
However, it’s not that simple. Providing aid to a country like Vanuatu creates the same problem that has dogged African nations for decades – aid dependency. Vanuatu receives or has received aid from Australia, New Zealand, France, China, USA, Japan, the EU, UK, Canada, Cuba, Israel and India and probably others to the point now where approximately half the GDP of the country is via aid.
If all this aid had been used to improve the lives of average NiVans, then I wouldn’t be writing this letter. The country has the second worst education standard (after Kiribati) in the region; a quarter of the population can’t read or write; the life expectancy of a NiVan male is about 63; the two major hospitals – in Port Vila and Luganville – both recently ran out of drugs and food; almost all businesses are expat-owned; electricity charges are among the highest in the world because a previous government signed a 44 year monopoly deal with a French Company, Unelco; most MP’s have little education and Parliament sits for 2 to 4 weeks a year. MP’s voted themselves an 83% pay increase last year. There are 52 federal MP’s and dozens of provincial councillors for a population of 220,000.
Governments are regularly ousted by no confidence motions as MP’s shift allegiances in their quest for the holy grail – to be a government minister. Being a minister not only provides a chauffeur-driven car and other similar benefits, it provides paid-for overseas medical treatment for the MP and members of his family. This ensures that the MP doesn’t have to seek treatment at the local hospital. The ‘premier’ school in the country, Malapoa College is literally falling apart because no money is spent on maintenance yet almost every day a new G (government) registered car appears on the roads. The Natapei government was ousted late in 2010 during a closed session of parliament. The speaker, George Wells – in breach of the constitution – prevented all access to parliament house, so who voted for whom is not known.
Corruption is rife, especially in the Lands Department; Air Vanuatu is terminally ill (current debt 3 billion vatu, about 32 million AUD) and constantly propped up by government bailouts; public servants are on a 4 and a half day week because there is little for them to do - many are allegedly ‘ghosts’ who only turn up on payday; the government recently installed a Chinese-supplied intranet system which they thought was a gift. It wasn’t, so they now owe China over 30 million USD. Many Chinese workers are here doing jobs theoretically reserved for NiVans.
Slums (laughingly referred to as informal settlements) are found throughout Port Vila but there is no government policy on public housing, water supply or sanitation. In fact there is no government policy on almost anything. This includes requiring the police to do their job. In 2009 a prisoner (who had escaped and been recaptured) was beaten to death by the police while in custody. The coroner, Justice Nevin Dawson from NZ called for proper homicide and assault investigations to be performed; nothing to date has been done or is likely to be done.
Politically I am 180 degrees away from Helen Hughes and the Centre for Independent Studies however I have just re-read her 2003 paper “Aid Has Failed the Pacific” and feel that what she wrote then still applies today. With emphasis on one simple statement – Aid appears to be inversely related to growth. And I would suggest that it has also engendered corruption and cronyism of championship proportions.
Theoretically, carefully targeted aid should work. Practically, it doesn’t because the government here will always plead that their sovereignty is being taken away.
Providing huge amounts of aid to countries like Vanuatu is akin to giving a 10 year old an unlimited supply of money and wondering why it’s not spent very well. Fifty million dollars will supposedly come in this year from Australia alone; about the only good thing that could be said is that it’s only a tenth of the money that will disappear in PNG.
Hi Karina. Thanks for this comment.
Here is a link some may find useful to the community-based rehabilitation (CBR) guidelines mentioned by Karina. Please correct me if you know of a better link or source doc: (http://www.who.int/disabilities/cbr/guidelines/en/index.html).
The aid program must focus on the poorest people in both low and middle income countries. For effective investment in comprehensive programs for low and middle income country under-resourced communities, the aid program should support regional and national community-based rehabilitation initiatives in line with the Community-Based Rehabilitation Guidelines developed by WHO, UNESCO, ILO and IDDC.
Hi Kristy. Thanks very much for your comment and interesting perspectives and notes on two of Australia's principal bilateral aid recipient countries - Indonesia and Papua New Guinea.
What views do people hold about the balance between aid focused to low (or LDC) and middle-income countries? Do you agree with Kristy that aid support for economies like PNG and Indonesia shouldn't be based solely on their income level? What of other considerations that Kristy mentions, like humanitarian and security or economic relations reasons - are there others you would mention?
Perhaps of interest also is a report on 'The new bottom billion' by Andy Sumner (UK's Institute for Development Studies) where he notes that 3/4 of today's 1.3 billion poor people live in what are now classified as middle-income countries. In a podcast he discusses with Claire Melamed (UK's Overseas Development Institute) what this new data tells us, and what it means for aid and development policy.
The report and podcast are available at http://developmentdrums.org/407
Despite PNG and Indonesia not being classified as LDC economies, they are geographically Australia's closest neighours, and although different, both countries have development goals that are in Australia's national interest to support.
PNG faces humanitarian issues such as a high rate of HIV and AIDS and security issues from political tension while Indonesia's development is more focused on improved economic management and the improvement of governance.
Whether for security reasons, or for improving economic relations, aid support for economies (such as PNG and Indonesia) should not be reduced based solely on their status as a non-LDC economy.