Foreign Aid

Foreign Aid
“Australia in Its Regional and Global Context”
By Alara Berisha
Table of Contents:
1.) Australia and its foreign aid links
2.) The types of foreign aid
3.) The roles of government organisations
4.) The importance of non-government organisations
5.) Treaties and agreements
6.) Economic, social and geopolitical advantage and disadvantages
7.) Impact on social justice and equity

1. Australia and its foreign aid links
Australia is a developed, English speaking country, located in the Asia-Pacific region. It itself is a continent, surrounded by smaller nations, whom we continue to make links with.
One of Australia’s most positive links with the world, and significantly the Asia-Pacific region, is foreign aid. Foreign aid is the transfer of money and resources which is lent or given to help with the development of a country or to respond to international emergencies and disasters.
Australia’s strongest aid link is with the Asia-Pacific region, with countries like Samoa, Tonga, Kiribati, Laos, Thailand and India. The table below shows the top 12 recipients of Australian aid in 2006-07:
Country Amount (AU$ millions)
Indonesia 345
Papua New Guinea 332
Solomon Islands 223
Vietnam 82
Philippines 69
Cambodia 49
Timor-Leste 44
China 42
Bangladesh 36
Vanuatu 35
Fiji 34
Sri Lanka 31

Although Australia’s aid program primarily focuses on the Asia-Pacific region, Australia also contributes to other countries in Africa, the Middle East and Asia in smaller amounts.
2. The types of foreign aid
Bilateral aid is when the government of the donor country gives financial aid to the government of the recipient country. E.g. the agreement between the Australian and the Papua New Guinean governments.
Multilateral aid is when financial assistance is given by governments through international development banks or organisations. E.g. The Australian government contributes multilateral aid through the G8 Multilateral Debt Relief Initiative, the... [continues]

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